Marketing

Question 1

What is marketing according to the American marketing association?

Answer 1

The activity set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Two fold goal:
Attract new customers
Keep and grow current customers

Question 2

Customers in marketing

Answer 2

Customers are at the core of the marketing process
Customers: consumers who purchase products from a seller
Target market: customers in whom an organisation focuses its marketing efforts

Customer at the centre

• product
• price
• distribution
• promotion
• exonomic forces
• political forces
• legal and regulatory forces
• technilogical forces
• socio cultural forces
• competitive forces

Question 3

The marketing process

Answer 3

All about creating value for customers and so for that reason companies must fully understand customers and he market place.

Needs: states of felt deprivation
Wants: the form human needs take as they are shaped by culture and personality
Demands: human wants that are backed by buying power

Question 4

Describe the flow chart for customers in relation to marketing

Answer 4

Understand the marketplace and customer needs and wants ->

design customer value driven marketing strategy ->

construct an integrated marketing program that delivers superior value ->

engage customers, build profitable relationships and create customer delight ->

capture value from customers to create profits and customer equity

Question 5

The marketing mix

Answer 5

Marketing is more than advertising or selling a product, it involves a wide range of factors (eg product development and management)
“The right product is in the right place and at the right price”

The mix: product, price, distribution and promotion

Question 6

What is the expanded marketing mix?

Answer 6

Place

Price

Promotion
-informing and educating customers of the product

People

Physical evidence
-decor

Processes
-timing of service

Partnerships

Product

Question 7

Describe product variable, price variable and place variable in marketing mix

Answer 7

Product variable: can be a good, a service, and idea , and experience or a combination thereof

Price variable: relates to the decisions and actions associated with establishing pricing objectives and policies and determining product prices

Place variable : to satisfy customers products must be available at the right time and in convenient locations

Question 8

Describe promotion, people and physical evidence variable in the marketing mix

Answer 8

Promotion variable: activities used to inform individuals or groups about the organisation and its product

People variable: refers to and includes the people involved with preparing, producing and presenting the product

Physical evidence variable: the elements associated with the product used to demonstrate the product and what it is (eg location, decor, lighting and other physical elements)

Question 9

Describe the processes and partnership variable in marketing

Answer 9

Processes variable: involves things such as automation or use of self service technology

Partnership variable: establishing, maintaining and nurturing partnerships throughout the supply chain

Question 10

Final considerations and conclusions for marketing

Answer 10

Marketing is a multidimensional field of study (eg the marketing iceberg)

Advertising and sales are just one small fraction of marketing as a discipline

“The right product in the right place and the right price”

Oriented towards customer satisfaction

Question 11

Define advertising

Answer 11

A paid non personal communication about an organisation and its products transmitted to a target audience through mass media

Question 12

What’re the key advertising decisions

Answer 12

Four major decisions need to be considered when developing an advertising program

Objectives setting —>budget decisions —>strategy—> message and media—>advertising evaluation

Question 13

Advertising decisions: objectives

Answer 13

A specific communication task to be accomplished with a specific target audience during a specific period of time

Should be based on past decisions about the target market, position, and the marketing mix

Can have different purposes:
Inform
Persuade
Remind

Question 14

What’re the different types of advertising in advertising decisions: objectives

Answer 14

Informative advertising :
Mostly used when introducing a new product. Build demand,

Persuasive:
Important when competition is high. Build selective demand. Become competitive or attack advertising.

Reminding advertising:
Important for mature products because it helps maintain relationships ships and helps keep relationships with consumers.

Question 15

Advertising decisions: budget

Answer 15

The total amount of money allocated for advertising for a specific time period

Key factors:

• geographical size is the market and distribution of buyers
• type of product
• industry norms regarding advertising frequency
• the desired positions of company

Question 16

Advertising decisions: message

Answer 16

Planning of a message and content strategy

• what will be communicated to consumers
• identify customer benefits to engace appeal

Plain, strait forward outlines of benefits and position points to be stressed

Advertising appeals:

• meaningful
• believable
• distinctive

Message execution and execution style
-the approach, style, tone, words and format used for executing an advertising message

Question 17

What’re the executing styles used in advertising decisions: message?

Answer 17

Slice of life 
Lifestyle
Fantasy 
Mood or image 
Musical 
Personality symbol 
Technical expertise 
Scientific evidence 
Testimonial evidence or endorsement

Question 18

Advertising decisions: media

Answer 18

Steps in selecting advertising media

1. Reach, frequency, impact and engagement
2. Choosing the media type (radio, tv etc)
   3, selecting media vehicles
3. Choosing media timing

Question 19

Advertising decisions: evaluation

Answer 19

Advertising effectiveness can be assessed
-before campaign (pre test consumer panel)

During campaign
-inquiries

After campaign
-post test (recognition test, unaided recall test)

Question 20

Final considerations and concluding in advertising

Answer 20

Advertising is just a small fraction of marketing

Developing effective advertisement campaigns involves complex decisions

Question 21

What is a consumer?

Answer 21

A person who buys a product without a commercial reason.

Question 22

What is a client

Answer 22

Consumers who purchase products from a seller.

Question 23

Table of methods about setting advertising budgets: percent of sales approach

Answer 23

Adjust past sales according to expected increase/decrease. Budget will be determined by a proportion of this adjustment.

Flaws: based on a flawed assumption that sales create advertising and not vice versa.

Question 24

Table of methods about setting advertising budgets: objective and task approach.

Answer 24

Determine campaign objectives and list tasks that will achieve these. Total budget determined by total cost of these tasks.

Most logical approach.

Issues: difficult to estimate which tasks will achieve the campaign objectives.

Question 25

Table of methods about setting advertising budgets: competition matching approach

Answer 25

Aim to match the major competitors budgets in absolute dollars or to allocate the same percentage of sales for advertising that competitors do.

Issues:
Simply following the trend is not a route to success. Misses opportunity to “stand out”.

Question 26

Table of methods about setting advertising budgets: arbitrary approach

Answer 26

A high level executive in the company states how much to spend on advertising for a certain period.

Issues:
Often leads to underspending or overspending.