Marketing

Question 1

what is marketing

Answer 1

The entire process of creating relationships with customers by offering goods, services, and experiences that they value

The company engages through the customer

Provide goods and services that satisfy customer needs through a coordinated set of activites

Question 2

marketing mix

Answer 2

Coordinates set of activities involving Product, Pricing, Place/Distribution and Promotion

Help convince the customer you are developing a unique product/ service that will solve their problems and create value for them

Question 3

price

Answer 3

revenue streams

Question 4

promotion

Answer 4

Promotion - channels, how you make them aware of your product through marketing – how to build relationships with customers

Question 5

distribution

Answer 5

plays role in channels, where are you selling it, channel in which they get the product delivered to them

Question 6

product

Answer 6

what you are selling

unique/ differentiating factors

Question 7

understand the consumer decision process

Answer 7

Depends on perceived importance of purchase (often connected to price)

Affected by a variety of influences

Question 8

influences that affect the customer decision process

Answer 8

• situational
• psychological
• social

Question 9

situational

Answer 9

• situation

Question 10

psychological

Answer 10

perception

lifestyle you are looking for

Question 11

social

Answer 11

social pressure from friends
family
cultural
how will people react if I do something

Question 12

consumer buying decision process

Answer 12

• recognize problem/ opportunity
• search for information
• Evaluate alternatives
• purchase
• evalutate after purchase

Question 13

STP process

Answer 13

• segment
• target
• position

Question 14

segment

Answer 14

Identify sub-set of customers, learn about their problems, describe them

Question 15

target

Answer 15

Identify the customers to who you wish to direct your product toward (the ones that are not satisfied with existing solution)

Question 16

position

Answer 16

Identify how to best compete in selected target markets
Understand exactly where you need to be perceived in the customers’ mind

Position the product in the midst of the customer when they are going through the problem – make them think it is the right solution

Question 17

Post STP

Answer 17

1. Convince customers you meet their needs and are better than the competition
2. The 4P’s – product, price, promotion, place/distribution

Question 18

STP example

Answer 18

Product – high-end skincare
Pricing – higher than competitors
Promotion – a luxury good
Place – skin wholesale / dollar store – would not align

Must have alignment between 4ps

Question 19

bases for segmentation

Answer 19

• benifit sought
• state of being
• state of mind
• behaviour

Question 20

benefit sought

Answer 20

what they are looking for, benefit they are seeking

Start with benefit sought before looking at other characteristics

Question 21

state of being

Answer 21

• geographic
• demogrphic
• customer type

Question 22

geographic

Answer 22

urban/ suburban/rural, region, climate

Question 23

demographic

Answer 23

age, gender, ethnicity, income, education, family, state, religion

Question 24

customer type

Answer 24

business, customer

Question 25

state of mind

Answer 25

- Lifestyle/ psychographic – values, attitudes beliefs, personality - Busy on the go vs laid back - Fundamental beliefs

Question 26

behaviour

Answer 26

- Media usage, product usage, brand loyalty, price sensitivity - How often are they consuming this product ex - Computers vs lawn mowers

Question 27

selecting target market

Answer 27

Determine which of the segments will be the target market by finding the biggest gap between: - what the customer wants and needs -- preference analysis - how the customer perceives the competition that is currently meeting those needs -- perceptual map

Question 28

what the customer wants / needs

Answer 28

- preference analysis - Talk to potential customers, ranking criteria - Ideal car, what will satisfy their needs and wants

Question 29

how the customer perceives the competition that is currently meeting those needs

Answer 29

- perceptual map - Perception of existing competition - Perceive Toyota, lamborgeni

Question 30

target market selection

Answer 30

Draw axes that represent the relevant dimensions/ criteria by which people perceive and evaluate different product offerings

Question 31

create perceptual map

Answer 31

locate the positions of competing products on the axes/ dimensions according to customer perceptions

Question 32

create preference anaylsis

Answer 32

locate each segment’s ideal product

Question 33

how to find biggest gap in the market

Answer 33

Overlay preference analysis onto perceptual map - Where the biggest gap is segment that we should go after

Question 34

selection of target marketing

Answer 34

X is the average ideal product for the entire segment The biggest gap between the ideal and where the competition currently is Segment 2 - furthest away - needs are not being met, no one is serving this market Look at how big the segment is The viability and feasibility of the segment – is it realistic for you to go after the market

Question 35

positioning

Answer 35

Let them know you are the ideal product Position ourselves in the customer’s mind that we are going to be servicing their needs -- Unique value proposition Value proposition statement How your product is filing the gap The circles represent – what customer segments want

Question 36

marketing concept

Answer 36

shifted from producer orientation --> to consumer orientation

Question 37

producer oriented

Answer 37

- take orders - mass-produce --> get to as many people as possible - distribute goods

Question 38

consumer orientated

Answer 38

- determine customer needs - satisfy needs - use customer feedback to improve - use marketing mix and tailor it around ensuring the product is satisfying the needs of your customers - who is your customer, what is the voice of the customer, how do they want to be spoken to - customers are looking for experiences and customization