Marketing Strategies

Question 1

Market segmentation

Answer 1

Dividing the mass market into segments based on factors like demographics, behaviours, psychographics or geographics

Question 2

Market segmentation: Demographic, Geographic, Psychographic, Behavioural

Answer 2

Demographic: Age, gender, religion, income
Geographic: Region (urban or rural), climate, city size
Psychographic: Lifestyle, motives, personality, consumer opinions + interests
Behavioural: Purchase occasion, loyalty, price sensitivity, usage rate

Question 3

Product/service differentiation

Answer 3

Having a unique selling point from the competition

Question 4

Positioning

Answer 4

Create an image for the product e.g. luxury, value for money

Question 5

Products: Branding

Answer 5

The use of a name, symbol or logo to distinguish a product

Question 6

Products: Packaging

Answer 6

How products are wrapped and labelled for sale

Question 7

Pricing method: Cost-based

Answer 7

Setting price based on how much it costs to make or buy the product, then adding a margin

Question 8

Pricing method: Market-based

Answer 8

Setting price according to supply and demand

Question 9

Pricing method: Competition-based

Answer 9

Setting price above, below, or at the same as competitors

Question 10

Pricing strategy: Skimming

Answer 10

Setting prices high at launch to recover research and development costs

Question 11

Pricing strategy: Penetration

Answer 11

Setting prices low at launch to undercut the competition

Question 12

Pricing strategy: Loss leaders

Answer 12

Setting price below cost to attract customers who will buy other products

Question 13

Pricing strategy: Price points

Answer 13

Setting prices at fixed psychological intervals to encourage customers to trade up

Question 14

Price and quality interaction

Answer 14

Generally, the higher the price, the higher the quality

Question 15

Promotion:

Answer 15

Methods used to persuade and remind customers to buy products

Question 16

Promotion: Advertising

Answer 16

The use of mass media to promote products e.g. TV, radio, social media

Question 17

Promotion: Personal Selling

Answer 17

The use of sales staff to sell product (normally used where advice needed to choose a product).

Question 18

Promotion: relationship marketing

Answer 18

The development of long-term relationships with customers e.g. loyalty programs

Question 19

Promotion: Sales promotion

Answer 19

The use of incentives to sell products e.g. free trials, discounts, coupons

Question 20

Promotion: Publicity + Public relations

Answer 20

A free news story about a product

Question 21

Promotion: Opinion leaders

Answer 21

Use of an influencer or celebrity to sell products

Question 22

Promotion: Word of mouth

Answer 22

Use of existing customers to sell products e.g. referrals/website reviews

Question 23

Place/distribution: Distribution channels

Answer 23

The use of intermediaries to distribute products e.g. retailers

Question 24

Place/distribution: Channel choice (intensive)

Answer 24

Where products are widely available to consumers

Question 25

Place/distribution: Channel choice (selective)

Answer 25

Where products are available to consumers through select stores/intermediaries

Question 26

Place/distribution: Channel choice (exclusive)

Answer 26

Where products are available to consumers in limited stores only

Question 27

Place/distribution: Physical distribution issues (transport)

Answer 27

The use of trucks, trains, ships, planes to transport goods

Question 28

Place/distribution: Physical distribution issues (warehousing)

Answer 28

The use of storage facilities to store finished goods before they are shipped to customers

Question 29

Place/distribution: Physical distribution issues (inventory)

Answer 29

The holding of stock ready for sale (also inventory management in operations)

Question 30

People:

Answer 30

The staff that customers interact with

Question 31

Processes:

Answer 31

The processes that customers interact with e.g. ordering, queuing, customer service

Question 32

Physical evidence:

Answer 32

What a customer sees when interacting with a business

Question 33

E-marketing:

Answer 33

The use of the internet to promote to consumers e.g. social media, email

Question 34

Global marketing: Global branding

Answer 34

The use of the same brand globally

Question 35

Global marketing: Standardisation

Answer 35

Having the same products and promotion in each country you sell to

Question 36

Global marketing: Customisation

Answer 36

Having different products and promotion in each country you sell to

Question 37

Global marketing: Global pricing

Answer 37

How products are priced in each country whether the same (standardised) or according to conditions in each country (market-customised)

Question 38

Global marketing: Competitive positioning

Answer 38

How the business wants it products to be perceived in each country that it sells to e.g. luxury, value for money and depending on the competition in each market.