Marketing concepts

Question 1

the 4 P’s (McCarthy)

Answer 1

Product, Place, Price, Promotion

Looks at the producer side

Question 2

Four strategies of Ansoff Matrix?

Answer 2

Market penetration (existing product in existing market)
Market development (existing product in a new market)
Product development (new product in exististing market
diversification (new product in new market)
(new more risky than existing)

Question 3

SWOT-analysis.

Answer 3

Strengths & Weaknessses (internal) against Opportunities and Threats (external), allows for internal and external matchmaking. Bird’s eye view analysis (both micro/internal and macro/external)

Question 4

PESTLE-analysis

Answer 4

Political, Economic, Sociological, Technological, Legal and Environmnetal. Focusses only on external issues (pos & neg). Overlaps with the OT part of SWOT. Marketing environment analysis (only external and macro)

Question 5

BCG-matrix

Answer 5

A product can be either a star (high market share, high market growth), cash cow (high market share, low market growth), question mark (low market share, high market growth) or dog (low market share, low market growth). This analysis looks at the growth share across offering (macro)

Question 6

4 levels of competition

Answer 6

product type competition (same exact product) , product class competition (product providing a similar service), generic competition (broad competition that still sort of substitute your product) and budget competition (literally anything because you are limited to a budget/inkome)

Question 7

Porter’s 5 forces

Answer 7

1. threats of new entrants
2. bargaining power of buyer
3. bargaining power of supplier
4. threats of substitution
5. competitive rivalry

The test is used to measure micro-external environment

Question 8

Difference between company and brand?

Answer 8

Company analysis doesn’t take brand into account, and a brand analysis doesn’t look at the parent company or corporate structure. A brand is the image and touch of personality a company gives to its products for recognizability. Brands create recognition, preference and awareness.

Question 9

What can you tell about market intelligence?

tip: marketing research.

Answer 9

All data and information a company has to make (marketing decisions). Marketing research can be done intwo ways, either quantitive (statistical research) or qualitative (opinion-based research). In theory they are complementary to one another, but due to budget restrictions they tend to be substitutes.

Question 10

Different types of decision-making strategies? (Simon, 1977)

Answer 10

Based on two main distinctions:

• traditional versus modern: how much data you have available. Traditional has little data available and is more intuitive and creative, while modern is more data-driven and structural.
• programmed versus non-programmed: the amount of repetition and routine you have in research.

examples:
- traditional programmed: habits, standard operations
- traditional non-programmed: rule of thumb, intuition
- modern programmed: mathematical operation research and analytical models
- modern non-programmed: applying heuristic problem solving

Question 11

Market research process

Answer 11

1) Initiate: What do you need to find out?
2) Locate: How do you find the information?
3) Select: What is relevant?
4) Organize: How can you use the information?
5) Present: How can you communicate research?
6) Feedback/Assess: What can you learn
- -> book doesn’t feature step 6, difference between linear versus circular market research process.

Question 12

difference between primary and secondary data collection?

Answer 12

primary data collection means first-hand experience and involvement. Secondary has neither of these.

Question 13

Undifferentiated marketing

Answer 13

also known as total marketing approach, assumes customers have similar wants and needs and therefore marketing doesn’t need differentiation. Applied for products that are created on mass-scale.

Question 14

Differentiated marketing

Answer 14

Differentiating your marketing strategy for different target audiences to capture a larger market share. Assumes different wants, needs and values. There is a three-step process called STP: Segmenting, Targeting, Positioning.
Segmentation: dividing the population in different segments
Targeting: choosing which segments fit your product
Positioning: designing your marketing mix around the targeted segments
–> customer oriented, looking at the 4C’s

Question 15

Types of segmentation

Answer 15

Geographical: location
Demographic: personal and family characteristics
Psychographic: attitudes and beliefs
Behavioral: (shopping) behavior
Needs-based: (shopping) needs
Business relation: usage or state of purchase characteristics
–> the higher among this list:
- the lower the costs of measurement
- the lower the difficulty of measurment
- the lower the predictive power on consumer behavior

Question 16

Different targeting approaches and when to use them?

Answer 16

Differentiated: different marketing mixes for different segments
concentrated: one marketing mix for one segment
micro marketing / local marketing: one marketing mix for locals only.
undifferentiated: one-size-fits-all

With a new product, try to appeal to more segments, more undifferentiated. With an existing product, no need to appeal to all segments as your product doesn’t either. More differentiated.

Question 17

Positioning map (pros and cons)

Answer 17

compare companies on the basis of pricing and performance in a graph. Gain an understanding in their position as well as potential gaps and what is already saturated. (pros)
Has only two dimensions and thus tends to overgeneralize companies and other components (e.g. no loyalty, customer service)

Question 18

POP & POD

Answer 18

Point of Parity vs Points of Difference. You compare two companies with eachother, highlighting the commonalities (POD) as well as what makes either company unique and gives them an edge over the other (POP). Closely linked to the positioning map.

Question 19

competitive advantage model

Answer 19

companies can create a competitive advantage externally - quickly responding to an environmental change - or internally through innovation. The two basic types of innovation are cost advantages and differentiation advantages.

Question 20

Describe the progress of economic value

Answer 20

There are four different customer values: commodities, products, services and experiences. The further along that list, the more customization has taken place and the higher the price will be. Commodities are extracted, from it goods are made, with that services are delivered and with those an experience is staged. If you were to move back along this line, it would be called commoditization. You then get more of a DIY experience.

Question 21

4 C’s (Lausterborn)

Answer 21

Cost, Consumer, Convenience, Communication.

Looks at the consumer side

Question 22

Customer perceived value

Answer 22

How a customer observes and perceives a firm’s offering. Looks at the 4C’s. Customer value is also cocreated with the companies.

Question 23

Different product levels

Answer 23

core product: the (perceived) core benefit of your offering.
actual product: a combination of features and capabilities connected to the core product (e.g. quality, brand, styling)
augmented product: all features that encapsulate the actual product. (e.g. customer service, warranty)

Question 24

difference between brand and product line?

Answer 24

A product line is a collection of products a company clusters together under one line. The brand is the image and recognizeability given to that product line. It is possible to have a product line without a brand. This happens mostly with B2B products.

Question 25

features of intangibility

Answer 25

inseparability (consumption and production cannot be separated), perishability (mass-production not possible, neither is returning or re-using) and heterogeneity (no two services are the same, even from the same service provider. Every interaction sligthly different)

Question 26

Different types of services (Wirtz & Lovelock)

Answer 26

people-processing: tangible actions for people, aimed directly at human bodies (barbers)
possession-processing: tangible actions for possessions (carpenters)
mental stimulus processing: intangible actions for people (psychiatrists)
information processing: intangible actions for possessions (insurers)

Question 27

What is brand equity?

Answer 27

A combination of brand awareness, brand loyalty, brand quality and brand associations. These concepts are tough to measure, but you can use methods such as brand ressonance pyramids or brand identity prisms.

Question 28

Value Proposition Map

Answer 28

matches the 4P’s with the 4C’s, a tool showing how to create value for customers. It tries to fit the value map with the customer profile. The customer profile describes jobs, pains and gains of customers, and the value map describes products and services, pain relievers and gain creators.

Question 29

How is a price determined?

Answer 29

Step 1 : select pricing objectives (survival, profit, ROI, market share, cash flow, status quo, quality)
step 2: assess target market for willingness and ability to pay
step 3 : determine demand (price elasticity)
step 4: analyze demand, cost and profit relationships
step 5: evaluate competitor’s prices
step 6: select a pricing basis (markup, margin, demand-based pricing or competition-based pricing)
step 7: select a pricing strategy
step 8: determine the price

Question 30

Different pricing strategies?

Answer 30

• differential pricing: different prices to different target groups
• dynamic pricing: adjust prices regularly based on demand
• new product, penetration pricing: penetrate market by charging lower than competitors (when good is elastic)
• new product, price skimming: highest possible price that earns back development cost (when good is inelastic)
• psychological pricing: make price seem more attractive
• promotional pricing: using promotions
• professional pricing: better alternative (quality) for higher price
• misleading pricing: add additional costs at checkout

Question 31

Why do we have marketing channels?

Answer 31

Match economic value and customer perceived value without producing too much overhead costs for the supplier. They help facilitate sales. They also lenghten the production chain and increase prices.
Marketing channels create utility by adding convenience, exchange efficiency, alleviate discrepancies, standardize transactions and provide customer service.

Question 32

3 types of distribution channels:

Answer 32

direct: company owned, entrie supply chain is managed by the company
indirect: 3rd party owned, company uses distriubtors, agents and retailers to sell their product
hybrid: not everything is outsourced but some bits are. A company can mix and match what they want to outsource. Distribution channels are often both B2B and B2C together.

Question 33

Three levels of coverage

Answer 33

intensively: large amount of outlets/sellers. Availabiilty is main priority. Almost no influence by producer over retailers. Mostly for convenience goods.
Selective: restricted number of outlets. Some influence can be exerted over retailers. Qualification must be shown by retailer before being allowed to sell.
Exclusive: only one outlet per area. Total influence exerted by company. Exclusivity is main priority.
Owned channels: a fourth type, but not really on the spectrum. They provide expereince-driven goods and services and go a bit beyond exclusive stores.

Question 34

Marketing funnel

Answer 34

1) awareness: bring product under attention of customer (mass-communication)
2) interest: spark interest with customer (mass-communication)
3) evaluation: customer gets a more personal reason to try product (personal communcation)
4) trial: consumer tries out product (personal communication)
5) adoption: consumer adapts to product (mass & personal communication)

Question 35

the promotional mix

Answer 35

• personal selling: going directly to someone (door-to-door) to offer them a product
• publicity & PR: word-of-mouth around your product
• sales promotions: lower price to increase sales
• sponsorship: give away money to increase brand awareness
• direct mail/cold calling: directly but not personally contacting someone offering them a product
• advertising: all promotion material to market your product
• the internet and digital: promoting your product on social media and web-advertisements (not necessarily paid for)

Question 36

Difference between push and pull policies?

Answer 36

Push policies only market the product to the next institution down the marketing channel, while pull policies apply when a producer appeals to the consumer directly, skipping over the other sections in the marketing channel.

Question 37

steps to creating an advertisement campaign?

Answer 37

1) identify and analyse target audience
2) define ad objectives
3) choose platform to advertise on
4) determine budget
5) develop media plan
6) create message conveyed in ad
7) execute campaign
8) Feedback

Question 38

Traditional marketing versus digital marketing

Answer 38

traditional marketing is impactful, permanent and memorable. However, it is also hard to measure, expensive and without direct interaction. Digital marketing is measurable, targeted and has higher engagement. However, it is often seen as annoying, is less permanent and constantly evolving.

Question 39

RACE approach

Answer 39

used for digital marketing:
Reach: acquire strategy to build off-site awareness
Act & Convert: Convert strategy to achieve marketing goals
Engage: retention and growth strategy to build customer advocacy

Question 40

Difference SEM and SEO

Answer 40

SEM = Search Engine Marketing, strategy to gain listings in the results of major search engines.
SEO = Search Engine Optimization. Every company needs this
Difference: SEM describes the implementation of SEO and how to run them.

Question 41

Traditional media is determined how?

Answer 41

Gross rating points = net reach percentage * opportunity to see

Question 42

What is media planning

Answer 42

The art & science of ensuring advertisers appear at the right place and right time, to reach the correct target group

Question 43

What is customer experience?

Answer 43

The process of putting the customer first. You aim to improve their value and build your product around customer value. 4C’s are central. Customer experience is also dynamic, envolving multiple phases, channels and touch points. Customer experience is non-deliberate and spontaneous. It is tough to measure because it is subjective, there is a large scale, people’s experieneces change, there are lots of (sub)elements and frameworks and methods are not unified.

Question 44

Two perspectives in customer experience

Answer 44

Phenomenology: what actually happens with consumer during experience in their head? Influenced through cognition, emotions, bounded rationality. Subjective. Customer-centric approach.
Socioeconomic: What are the touchpoints you encounter during the customer journey? Influenced through service-scape, product design and branding. Collective view (non-individual). Service-centric approach.

Question 45

SERVQUAL

Answer 45

Service quality. A more hollistic approach to measure customer experience. It consists of the dimensions Reliability, Assurance, Tangibility, Empathy and Responsiveness. Satisfied customers score high on this test. Each of those 5 has its own sub-categories.

Question 46

5 steps to customer journey

Answer 46

1) Awareness
2) Consideration
3) Evaluation and choice
4) Purchase and usage
5) satisfaction/loyalty

It can also be simplified in 3 steps

1. pre-purchase stage (1+2)
2. purcasing stage (3)
3. post-encounter (4+5)

Question 47

Servuction model

Answer 47

a model highlighting customer expererience from services. There is an important distinction between front stage and backstage (backstage are all activities a customer doesn’t see). Other customerss and the environment also play a role in customer experience.

Question 48

What are blueprints?

Answer 48

They identify the options to increase/decrease complexity and/or divergence. They link STP of service organizations, stimulate discussions about improvments, review efficiency, highlith invisible support needed and failure points and design recoveries, and identify contact between customer and service providers. There are 4 levels to them, seperated by 3 lines.

• customer actions: all actions a customer undertakes. Marked by the line of interaction, no further customer actions needed
• onstage: what a customer sees the personnel do. Marked by line of visibility, the rest a customer doesn’t see
• backstage: the invisible contact between employee and customer. Marked by line of internal interaction, furhter contributions are only happening via systems and not staff members directly
• support processes: final step, all required systems for a smooth proces of service provision.

Question 49

SROI model

Answer 49

Social Return on Investment model, a model built around health, economy and society. They look at different drivers and outcomes for the participation of football. Introduced by Ian McRory

Question 50

Conduit role

Answer 50

The role Richard Clarke thiks a football club should play. Football players don’t associate themselves with supporting a brand, so the football brand mustn’t act that way either. Instead, they should play the conduit role. Here, they look for inspiration within the community and apply that in their marketing strategy.