Marketing plans,Branding,communications

Question 1

Product(custo + org)-definition:

Answer 1

Org s point of view:-what s being sold

Customer s perpective: solution to a problem or package of benefits.

Question 2

On what basis a customer might choose a product?

Answer 2

1. customer value(how far to satisfy their needs)
2. price(value for money)

3. Kotler: a customer must feel they re getting the best deal of any alternatives

Question 3

Product classification

(industrial and consumer goods)

Answer 3

• Consumer goods :
  1. Convenience goods (groceries-staple vs impulse goods-brand awareness important)
  2. Shopping goods-more durable goods(fridge-advanced planning )
  3. Specialty goods-jewellery luxurious items 4.Unsought goods-customer did not realise they needed
• Industrial goods
  1. Installations(factory assembly line)
  2. Accessories
  3. Raw materials(plastic)
  4. Components(intel microchip in most PC s)
  5. Supplies(office stationary)

Question 4

Product levels and attributes (pg 325 nb)

Answer 4

1. Core product -core benefits(car-transport)
2. Actual/basic product(features eg car-airbag,efficiency)
3. Expected product-expected attributes (performance ,reliability and psycological benefits)
4. Augmented product (support core actu product:warranty,delivery,after sales)
5. Potential product:possible changes in the future(better fuel economy)

Question 5

Product issues in the marketing mix will include factors such us:

Answer 5

1. design
2. features
3. quality and reliability
4. after sales service
5. packaging

Question 6

Product range characteristics:

Answer 6

1. Width/breadth(cosmetics,haircare)
2. depth(products per product line)
3. consistency (closeness of relationships in product ranges for the customer s benefit)

Question 7

Marketing mix (extended) -7ps:

Answer 7

1. product
2. price
3. Promotion(ads,pop ups ect)
4. place
5. People(trained to produce and deliver these products)
6. processes
7. physical evidence(letter of guarrantee for building work

Question 8

Product range management-Ways of extending it and how it can be reduced:

Answer 8

• Extension:
  1. Variations in models or style.
  2. Différentiation in quality(price accordingly) 3.Developing associated items.
  4. Developing new products with little technical or mkt relationship to the existing range.
• Reduction-discontinuing a product

Question 9

Issues related to the mgt of a product range:

Answer 9

1. What role should play in the range (Flagship brand,profit provider,niche filler,ect)Should create a balanced range .Cash generating to support cash -using(new market) products.
2. Resource allocation
3. Expectations
4. How far recognizable as part of the brand family

Question 10

Bcg model-define and describe

Answer 10

Classification: market share-growth in the market 1.Star :High market share High growth industry (Potential signif earnings,substantial mkt exp)

2. Question mark(problem child)Low mkt share,high growth ind (Competitors strong position,new mkr mix-funding to gain share,market good and product viable then more acrive mkt)
3. Cash cow:High market sh,low growth ind (established campaign and high loyalty,contribution in profits-if market strong:holding startegy,weakening growth:harvesting by cutting back mkt exp)-
4. Dog :low low divestment unless the cash flow position is strong

Question 11

Product life cycle:

Answer 11

1. Introduction (Few comp,heavy adv,design changed flexibility and capability )
2. Growth (More comp,features important,growing demand,quality standards maintained or impr,cost and price important)
3. Market maturity (Small number of org,design standard.,varieties to extend cycle,productivity improvements)
4. decline (Competition on price,cost target main obj) Also :shakeout after growth

Question 12

Place-it deals with:

Answer 12

1. channel -where are the products sold
2. Logistics: warehouses location and efficiency of distribution

Question 13

Aims of promotion:

Answer 13

AIDA

1. Arouse ATTENTION
2. Generate INTEREST
3. Inspire DESIRE
4. Initiate ACTION

Question 14

All mkt communications

Answer 14

1. Advertising
2. Sales promotion
3. Direct selling
4. PR

Question 15

Lancaster and Withey-elements of successful advertising.

Answer 15

1. well planned and executed
2. effective
3. part of an overall effective mix
4. aligned with values of the company.

Question 16

Range of promotional tools:

Answer 16

1. Above the line -radio tv ect,range has expanded in recent years
2. Below the Line(adv agency): Product integral,negotiated sales incentives(merchandising) ,competitions ect

The second is gaining ground against the first . Below the line (or through the line-Fills) far more common. Fill: shift from intervention-based to permission based

Question 17

Product life cycle(plc) and promotional strategy.

Answer 17

1.Introduction-strong push then pull for awareness

(pr ,adv,personal selling,sales promotion)

2. Growth-pull to differentiate (Adv,direct mkt,personal sell)
3. maturity-pull and push to sustain loyalty and exposure through reassurance (Pr,adv,dorect,personal sell,sales promo)
4. Decline-some pull to remind core users

Question 18

3 main types of influence on price setting in practice:

Answer 18

1. Cost
2. Competition
3. Demand

Question 19

Issue with cost plus (eg mark up) approach to pricing:

Answer 19

1. Price stability,reactive mkt strategy rather than proactive.
2. Limited consideration of demand

Question 20

Competition-pricing

Answer 20

Going rate pricing:average level becomes the norm

In some markets price competition may be avoided (informally) leading to a concentration on non price competition(cigarettes,petrol)

Question 21

Demand-pricing:cases where discriminating prices can be set?

Answer 21

1. By market segmet (cross channel ferry-country),cinemas (by age)
2. By product version
3. By place: theater seats
4. By time

Question 22

Competitors actions and reaction.Options when a rival cuts prices:

Answer 22

1. maintain existing prices if only a small share is expected to be lost.
2. maintain prices and respond with a non price counter attack(secure justify current prices)
3. Reduce its prices:secure market share ,consumer wins
4. raise prices and respond with a non price counter attack.Campaign on quality difference.

Question 23

Multiple products-pricing-Loss leaders

Answer 23

Very low price for one product makes consumers buy other products in the range with higher profit margins.

Question 24

Price setting strategies

Answer 24

1.Market penetration(low price to stimulate growth or obtain share).Appropriate when

• economies of scale
• price sensitive
• low prices discourage new competitors

2.Market skimming(higher price for new product-advantage of buyers who want to pay a premium) .Then price falls down.Appropriate:

• insufficient production capacity/competitors cannot increase capacity.
• some buyers relatively insensitive
• high price equals high quality

3.Early cash recovery(recover investment in a new product asap)

• -business high risk
• -rapid changes in fashion or tech expected -innovator short of cash

4.product line promotion(profit from range).Looks at the whole range from 2 points if view:

• -interaction of the Mkt mix -
• monitoring returns
• -net contribution worthwhile

5. Cost plus pricing
6. Target pricing(specified rate of return for a given output)
7. Price discrimination/selective pricing (Category/consumer group/peak) (Exaples:Clearly defined segments,own branding,bulk buying discounts)
8. Going rate/competitive prices-set with reference to competitor s pricing
9. Price leadership/predatory pricing(efficient producer with reputation for technical competence-dominates price levels)
10. Quantum pricing (99 p not 1)

Question 25

Characteristics of **services**

Answer 25

1. Intangibility 2. Inseparability 3. heterogeity 4. Perishability 5. ownership

Question 26

Characteristics of services-**intagibility**

Answer 26

Lack of **subtance**-consumers not sure what they receive . **Dealing with intangibility:** * increasing level of tangibility-physical or conceptual **representations** * focus on **benefits**(images or testimonies from previous users) * **differentiating** the service and **reputation** building (enhancing perceptions/excellence in delivery)

Question 27

Characteristics of services-**inseparability**

Answer 27

Cannot be separated from the **provider**: All at the same time: 1. made **abailable** 2. **produced** 3. **sold** 4. **consumed** Increasing importance to generate a **service ethic .**

Question 28

Services-**heterogeneity**: In terms of Mkt policy ,heterogeneity **highlights** the **need** to develop and maintain **processes** for :

Answer 28

1. Clear and objective quality measures,consistent **quality control .** 2. Consistent **customer care,**standardise 3. Effective staff **selection**,**training** and **motivation**. 4. Monitoring **service** **levels** and **customers perceptions**

Question 29

**Perishability** of services:

Answer 29

**Cannot be stored** **key planning priority**: Anticipating and responding to demand (minimize unnecessary expenditure on wages) Policies to **smooth out fluctuations:** * price variations * off peak -promotions * off peak -flexible staffing methods(parr time,temp ,outsourcing)

Question 30

**Ownership** -services:

Answer 30

**Do not result in transfer of service:** (Issue when it doesn t accrue until some time in the future) * 2 basic **approaches**: 1. promote **advantages** of **non ownership**(periodic upgrading) 2. make **available** a **tangible** symbol or representation of ownership(merchandise item,receipt,certificate)

Question 31

**Extended** mkt mix-**people:**

Answer 31

**Front line staff** must be trained and motivated with particular attention to customer care and PR. **Physical presence** is important. (Inseparability)

Question 32

Extended mkt mix-**processes**

Answer 32

Can become a mkt advantage on their own right (order processing) * Issues to be considered: 1. P**olicies** with regard to **ethical** dealings 2. P**rocedures**(efficiency and standardisation) 3. A**utomation** and **computerization** of processes 4. Q**ueuing** and waiting times 5. **Info** gathering,**processing** and communication **times**. 6. C**apacity** mgt(D and S match,timely -cost effective way) 7. **Accessibility** of services,premises,personnel and services

Question 33

Extended mkt mix-Physical evidence

Answer 33

**Intangibility** and **ownership** :tackled by making available a physical symbol or representation of the service and the benefits it confers. Eg **certificates** of attainment in training **Physical evidence** of service may be incorporated in the **design** and specification of the service environment by designing **premises** that reflect this **quality**.

Question 34

**Brand**-definition

Answer 34

1. **Name** 2. **Term** 3. **Sign** 4. **Symbol** 5. **Design** **Identify** a the **product** of a seller and **differentiate** it from competitors'. * Key element of **corporate** **strategy** * Generates **revenue**

Question 35

Brand **equity**

Answer 35

The **premium** the customers are prepared to pay for the branded product to a **non branded** product

Question 36

Brand **identity**

Answer 36

Begins with a **name** but extends to a range of physical features such as: 1. **Typography** 2. **Colour** 3. **Package** **design** 4. **Slogan**

Question 37

Objectives of bradnding

Answer 37

1. Aids product **differentiation**-helps loyalty and increase/maintain sales 2. Max **impact** of **adv** for product **recognition** 3. Readier **acceptance** by wholesalers /**retailers** 4. Reduces **price** di**fferentials** 5. Supports market **segmentation** 6. Supports brand **extension** or Stretching 7. Eases the task of **personal** **selling**

Question 38

Branding strategies -**Kotler**:

Answer 38

1. **Line** **extension** (applied to a variant of a product within the same product category-car manufacturers same class of car) 2. **Brand** **extension**(new flavours,sizes ect to capitalise on existing brand loyalty) 3. M**ulti branding** (number of brands that satisfy similar product characteristics eg detergents-littele or no brabd loyalty/family branding 4. **New brand**s (when new product or market created to avoid risking reputation/existin brands not compatible with product or market) 5. **Co-brands**(Nike shoes compatible with Apple's ipod)

Question 39

Brand value :

Answer 39

Source of competitive advantage: 3 approaches to valuing a brand: 1. **Market approach** (estimation of value based on similar market transactions (e.g. similar license agreements) of comparable brand rights.) Royalty relief method – Assume theoretically a company does not own the brand it operates under, but instead licenses the use from another. The royalty relief method uses available data of similar arrangements in the industry and assigns the value of the brand as the present value of future royalty payments. 2. **Cost approach** (patents,promotional activities) 3. **Income approach(** based on NPV .Expected future earnings overall economic benefit it ll generate -expenditure for brand awareness over its life=net income figure discounted at an interest rate (risk profile and characteristics).

Question 40

**Promotional** tools:

Answer 40

1. PR 2. Merchandising 3. Direct Mkt 4. Exhibitions 5. The internet 6. Coorporate image 7. packaging 8. Sponsorship 9. Advertising 10. Personal selling 11. Branding 12. Word of mouth

Question 41

Approaches to promotion-promotion mix:

Answer 41

1. **Mass media** (whole segment -same communication) 2. **Personal and interactive (**two way communic) 3. **Personal and direct** (one way )

Question 42

B2C /B2B promotion tools (pg 344 nb)

Answer 42

* B2C :advertising -sales promotion,no personal selling * B2B:More personal selling ,mass adv wasteful,Pr

Question 43

Types of marketing:

Answer 43

1. Consumer Mkt (4 ps) 2. Services mkt (+3ps ) 3. Direct/Indirect mkt 4. Guerilla mkt 5. Viral mkt 6. Interactive mkt 7. Experiential mkt 8. E-mkt 9. Relationships mkt 10. Post modern mkt

Question 44

Integrated marketing communication process: pg 345 nb

Answer 44

Product maker-4 ps (promotion -\>adv,pr,sales promo,personal mkt)--\>\>advertising---\>\>\>customer

Question 45

Direct Mkt-key words:

Answer 45

1. **Response** 2. **Interactive** 3. **Relationship** 4. **Recorsing** and analysis(response data) 5. **Strategy** Zero level channel (no intermediaries)

Question 46

Direct mkt-Telemarketing-charachteristics

Answer 46

1. Targeted 2. Personal 3. Interactive 4. Immediate 5. Flexible

Question 47

Indirect mkt

Answer 47

* Mkt of a products as result of **another** **activity** /action * **No push activity**(recipies with specific products,word of mouth adv) * Resent dvts :**Guerilla** and **viral** mkt

Question 48

Guerilla mkt:

Answer 48

1. Taking people by surprise and creating a buzz in unexpected places -it relies more on imagination than large sum of money. 2. Jay Conrad Levinson

Question 49

Principles of Guerrilla mkt:

Answer 49

1. **Small** org and entrepreneurs 2. Based on **psychology** rather than experience ,judgement,guesswork 3. Based on **time** ,**energy**,**imagination** rathere than money 4. Orgs should be judged on **sales** rather than profit. 5. Focus on the number of **relationships** created each period 6. Focus on creating a standard of **excellence** rather than diversifying. 7. Focus on increasing **numbers of customer** referals and size of tr**ansactions** rather tahn attracting new customers 8. **Cooperation** with competitors 9. A **combination of mkt methods** to be used 10. Campaign should make use of **technology**.

Question 50

**Viral marketing**

Answer 50

* Use of pre existing social networks * to spread brand awareness or otehr mkt objectives * successful when customer receives the mkt message ,copies it and sends it to friends or posts it on social networking sites

Question 51

**Forms** of viral mkt:

Answer 51

* Video clips * Novelty ,quircky computer games * ebooks * text messages * music * mobile phones ringtones High SNP -indiv who pass on viral mkt Efective -short time span

Question 52

Six **principles** of effective viral mkt:

Answer 52

Ralph Wilson 1. **Free** **items** to attract attention 2. Form of message should be **easy** to pass on 3. **Transmission** **method** must be scalable from small to large very quickly 4. Must exploit **common** **motivations** and **behaviours** 5. Use **existing** **communication** **networks** 6. Take **advantage** of other people's **resources**.

Question 53

Deighton interactive mkt

Answer 53

Ability to adress the customer ,**remember what the customers says** and adress rge custoer again in a way that illustrates that we remember what the customer has told us. **E commerce** -customer info stored in databases and electronic communications with teh customer occuer very quickly.

Question 54

Experential mkt

Answer 54

* Providing an experience that an emotional cinnection between a person and a brand,product,idea. * engage with the personality of the brand through experiencing it. * combination of in store promotion-field mkt

Question 55

Successful websites

Answer 55

1. **Attract** visitors 2. Enable **participation** 3. Encourage **return** visits 4. Allow for **two way communication** systems 5. Integrate with **back office** systems(to process orders and dispatch products denerated by the website) 6. **Security** (protect privacy and security)

Question 56

Benefits of an **effective** website:

Answer 56

1. **Market** size 2. **Loyalty** (offers and features) 3. **Productivity**(better mgt of supply chain) 4. **Reputation** (real costumer benefits) 5. **Costs**(lower than retail outlets) 6. **Communication** 7. **Convenient** 8. **Opportunity** (smaller orgs compete with large established ones) 9. **Information**(enhances market segmentation).

Question 57

Potential problems with web sites:

Answer 57

1. Viruses 2. Hackers 3. Credit card fraud 4. Confidential customer info 5. Set up and running costs 6. searche engine optimisation

Question 58

Web site promotion

Answer 58

* Banner advertising(affiliate scheemes ,pay per click adv) * Email mkt(cheap,easily targeted,mass)

Question 59

Relationship mgt :

Answer 59

Aim:maximise customer retention adn satisfaction 1. Make teh most out of every customer **interaction** 2. Ensure offers and and **promotions** are relevant to customers 3. Value customers and treat them with **respect** 4. **Listen** to customer comments and **complaints** 5. **Act** on customer comments and **complaints** 6. **Reward** customers for **loyalty**

Question 60

**Post modern** mkt:

Answer 60

Attributed to **Stephen Brown :** * **Traditional** ,broad mkt theory and generilisations may **no longer apply** * Focus on giving the customer an **experience** that is **customised** to them. * **Mass** mkt should be replaced by a **multi dimensional approach w**here the marketer communicates with individual customers **New** **media** such as tablets -generate an interactive or immersive experience rather than a static one.

Question 61

Big data analytics

Answer 61

* **Forecasting demand:**data (website traffic,trends,feedback,promo and micro economic factors-accurate model of future demand * **Identifying customer's preferences**(customers happy to share infor once trust is built) -past transactions,cookies,responses toemails,online promo,ads,data on social networks. * **Customer experience:**online product pages to the customer most relevant and desirable offers and promotions at teh most appropriate time.