MARKETING: strategies

Question 1

Market segmentation

Answer 1

• Closely linked to target market
• Total market is subdivided into groups of people who share one or more common characteristics

Question 2

aim of market segmentation

Answer 2

increase sales, market share, profits

Question 3

what is positioning

Answer 3

• provides the fit between customers in a market segment and the business attempts to meet the needs of customers in that segment.

Question 4

what is differeniation

Answer 4

The process of promoting and developing the differences between a business’s products & their competitors.

Question 5

total product concept

Answer 5

refers to the ‘core product’ - what we are buying to satisfy our want / need as well as the intangible components; the attributes of it

• buy products based on benefits not tangible qualities

Question 6

what does branding do

Answer 6

Branding helps consumers:
- identification of products for consumers
- judgement of quality
- reduction of risk
- psychological rewards

Helps business:
- Gain repeat sales
- Introduce new products
- Promote products
- Encourage customer loyalty

Question 7

brand categories

Answer 7

manufacturer’s brand: owned by manufacturer, well recognised, widely available

Private/house brand: owned by retailer, cheaper but rely on positioning of company

Generics: no real branding, found in supermarkets

Question 8

interdependence of products in marketing and operations

Answer 8

Operations: best determine how to make the product
Marketing: determines appearance and function + communicating with the public.
= drive sales

Question 9

price methods

Answer 9

Cost-Plus: cost of providing good PLUS profit margin
Competition-Based: match competitors pricing
Market: Demand-Based - higher demand = higher price

Question 10

price strategies

Answer 10

• Penetration Pricing: set low price to gain immediate customer group
• Loss Leader: provide some items at below cost to attract into store
• Market Skimming: charge high price to recover high cost
• Price Points: setting different prices for similar products
• Product Deletion Pricing: lower price to clear old stock
• Prestige Pricing: quality, reliability, image justify high price - Psychological pricing: selling at $99.95, not $100

Question 11

product summary

Answer 11

Positioning: image of product/brand in customers mind
Packaging: physical appearance, protect quality, first impression, communicate
Branding: reputation built over time via name/logo = expectations

Question 12

what is price

Answer 12

amount of money charged for a product + amount of money a customer is prepared to offer in exchange for a product

Question 13

promotion mix

Answer 13

Advertising
Personal selling & relationship marketing
Sales promotion
Publicity & PR

Question 14

advertising

Answer 14

convey message and remind market of product existence

Question 15

Personal Selling

Answer 15

take business directly to consumer

Question 16

Relationship Marketing

Answer 16

create satisfaction and value = referrals

Question 17

Sales Promotion

Answer 17

competitions, samples and discounts to increase sales

Question 18

publicity

Answer 18

creating events to increase brand awareness
free

Question 19

opinion leaders

Answer 19

individuals/celebrities to provide hype/reputation/image

Question 20

word of mouth

Answer 20

consumers referring products to each other – more genuine/reliable & uncontrollable

Question 21

place

Answer 21

– Distribution Channels:
Ways good is moved from producer to wholesaler to retailer to consumer
– Channel Choice: - link to perception of products
Intensive (readily available) | Selective (limited stores/locations) | Exclusive (narrow distribution)
– Physical Distribution Issues: Transport, Warehousing and Inventory

Question 22

people

Answer 22

– Hiring right people to support business activities via customer
Service, detailed product knowledge and appropriate manner

Question 23

processes

Answer 23

– Consumers total experience before (searching) and after (post-sale
service) – provide good, enriching and satisfying behaviours

Question 24

physical evidence

Answer 24

Appearance of product and presentation to consumer – packaging,
build quality, sales team, support team (e.g. Apple)

Question 25

e marketing

Answer 25

Opportunity to provide personalised medium via social media, 24/7
social media advertising

Question 26

global marketing

Answer 26

Standardised global brand (Coke) vs Differentiation approach
Requires uniquely modified product, price, promotion and place to suit each new market

Question 27

what does promotion do ?

Answer 27

attract new customers
increase brand loyalty
encourage existing customers to purchase more
provide information
encourage customers to purchase new products

Question 28

channels

Answer 28

Producer to customer, generally service based
P > Wholesaler > R > C, most common for consumer goods

Question 29

global marketing

Answer 29

Adapting marketing plans to suit overseas markets

Global branding - is worldwide use of name, terms, symbols & logos to identify a business

standardisation: Assumes use of product and needs of consumers are the same around the world
- Achieve economies of scale

cus

Question 30

global markeing: standardisaion

Answer 30

Assumes use of product and needs of consumers are the same around the world
- Achieve economies of scale

Question 31

global marketing: customisation

Answer 31

Assumes use of product and needs of consumers are different around the world
Adopt plans according to social, political, economic characteristics of a market

Question 32

global marketing: global pricing

Answer 32

Customised pricing - differing prices for the same product in different locations
Market-customised pricing - allows business to set price according to local market, matching or beating domestic competitors, allows variance of price according to demand.
Standardised pricing - Same price around the world, difficult approach due to changes in external influences