Marketing strategies

Question 1

What is market segmentation?

Answer 1

“the division of the market into homogeneous groups of potential customers who may be treated similarly for marketing purposes.”

Question 2

What are the two types of segmentation?

Answer 2

• Industrial - B2B

- Consumer - B2C

Question 3

What four sections can industrial segmentation be split into?

Answer 3

• Geographical
• Company size
• Company type
• Purchasing characteristics

Question 4

What four sections can consumer segmentation be split into?

Answer 4

• Geographical
• Demographic
• Purchasing motivation
• Purchasing characteristics

Question 5

What is the marketing mix?

Answer 5

controllable marketing variables that a firm blends to produce the response it wants in the target market

Question 6

What are the 4Ps for a product?

Answer 6

 Product
 Promotion
 Place
 Price

Question 7

What are the additional 3Ps for services?

Answer 7

 People
 Process
 Physical evidence

Question 8

What should be talked about when discussing the features of the product?

Answer 8

• Brand - exisiting/new?
• Quality
• Unique selling points

Question 9

What are practical methods for promoting the product?

Answer 9

• Advertising
• Sales promotion
• Public relations
• Personal selling

Question 10

What to consider when discussing place?

Answer 10

Organisation’s place in the supply chain - direct or indirect selling?

Direct - retail, mail order, internet sales, personal selling
Indirect - wholesale, distributor, agent, franchisee

Question 11

What issues are there to consider when pricing the product?

Answer 11

4Cs - cost, competitors, customers, corporate objectives

Pricing strategies

• penetration pricing
• price skimming
• going rate
• premium pricing
• price discrimination

Question 12

With a service, what should be briefly discussed about people, processes and physical evidence?

Answer 12

• staff appearance, training, knowledge
• efficiency of service/professional
• tangible aspects of service

Question 13

What are the problems when trying to come up with a useful figure for market share?

Answer 13

• can be determined in terms of sales vol or price, depends on the purpose of the calc
• defining the market
• level of appropriate sub analysis depends on numerous factors

Question 14

Define branding

Answer 14

• Brands add value to the product by making them recognisable and attractive to customers
• A brand’s ability to create future value is known as brand equity

Question 15

What is the demand curve?

Answer 15

Curve that compares the price of a product with its perceived quality
Used to assess value for money from a product

Question 16

What is the brand matrix and what are the 4 sections?

Answer 16

Matrix comparing price and quality:
H price L qual = cowboy brand
H price H qual = premium brand
L price H qual = bargain brand
L price L qual = economy brand