marketing

Question 1

DEFINTION market research

Answer 1

systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation

Question 2

market research categorised by source

Answer 2

primary

collection of data specifically for the project in hand

secondary

based on data previously collected for purposes other than the research at hand

Question 3

market research catergorised by methodology

Answer 3

qualitative

attitudes, feelings, motivations

cheaper, probes in-depth feelings and used as a precursor to future research

quantitative

choices, frequency, demographics

Question 4

how not to conduct market research

Answer 4

lack of resources

research results not actionable

closed mindset

late timing

vague objectives

Question 5

DEFINITION product

Answer 5

any want-satisfying good or service that is considered together with its perceived tangible and intangible benefits

Question 6

product life cycle graph

Answer 6

Question 7

product life cycle in relation to

sales

profitablity

pricing

competition

Answer 7

Question 8

advantages and disadvantages of using product life cycle

Answer 8

advantages

different stages of a product’s life cycle call for explicity different strategies

framework prepares management for changes of strategy

disadvantages

time spam of curve varies massively

rigid adherence means management can prematurely end the life of a product (self-fulfilling prophecy)

variation exists in shape such as in fashion where the PLC falls much earlier than the traditional PLC

Question 9

rogers adoption/innovaton curve

Answer 9

innovators

technology enthusiasts

appreciate technology for its own sake

make critics

want cheap products

gatekeepers therefore key to high-tech marketing

early adopters

visionary

driven by a dream

tolerance to unproven technologies

low price sensitivity

easy to sell but difficult to please

represent opportunity

early majority

pragmatists

want measurable, predictable progress

view risk as a negative word

loyal once won

long-term agenda requiring patience

late majority

conservatives

believe in tradition rather than progress

fear of high-tech

should offer pre-packaged solutions

laggards

Question 10

product characteristics that influences adoption rate

Answer 10

relative advantages

whether it outperforms

compatibility

complexity

divisibility

extent it can be trialed

communicability

Question 11

geoffrey moore technology adoption cycle

how to cross the chasm

Answer 11

how to cross chasm

must market very differently between early and main market

target niche

force competition out of niche

base for broader operations

eg. palm pilot built a niche with targetting the management teams of high tech enterprises. they simplified the product and lowered the price. the passion carried over to the next segment of consumers
eg. NOT CROSDING sony DAP

Question 12

differences of services compared to products

implication

Answer 12

intangible

tangibalise the product

inseparable

selection and training of service provider’s personnel

variable

strict quality control. develop customer care programme

perishable

manage supply and demand explicitly

no ownership

manage supply and demand explicitly

Question 13

price-theory

dertermines of upper and lower limit

Answer 13

UPPER LIMIT DETERMINED BY DEMAND

(price discrimination)

some people are more price sensitive

identify. charge separately. increase revenue

demand for some products are price sensitive

identify. reduce prices. increase revenue

LOWER LIMIT DETERMINED BY COSTS

Question 14

inputs to pricing decisions

Answer 14

demand

costs

other factors

company and marketing objectives

overall goal

target market

brand image

rest of Ps

competition/market structure

number of firms

degree of differentiation

legal/social constraints

government legislation

regulatory bodies

social/political pressures

Question 15

DEFINTION price

Answer 15

full cost of producing the item (allocated fixed cost + variable cost) + x% profit margin

Question 16

advantages and disadvantages of cost-based pricing

Answer 16

advantages

simple method

explicitly considers costs therefore unlikely to result in loss

fair and transparent

disadvantages

largely arbitrary method depending on how you allocate overhead

prevents full usuage of marketing tools

can lead to a nonsencicle circle

increase in price —> reduced demand —> reduced production —> increased fixed cost per unit

Question 17

popular pricing strategies

Answer 17

skimming

start with a high price for early adopters then reduce the price progressively. good for inelastic demand

penetration

go for maximum market penetration by adopting a low price strategy to attract the largest number of new buyers early on

Question 18

types of promotion

Answer 18

direct marketing

public relations

advertising

sales promotion

personal selling

viral

Question 19

roles of distribution channels

Answer 19

provide information

promote

negotiate

take orders

hold inventory

take risk

assume title

distribute to final customer

Question 20

advantages and disadvantages of intermediaries

Answer 20

advantages

allows manufacturers to stick to job

replaces inefficiency of multiple deliveries

enables consumers to minimise efforts

disadvantages

company loses some control

can add to costs

company loses touch with end users

Question 21

promotion, price, place and profits across product life cycle

Answer 21

Question 22

importance of marketing

Answer 22

‘its purpose is to create a customer, the business has two basic functions: marketing and innovation. marketing and innovation produce results; all the rest are costs’ peter drucker