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MM > Marketing Strategy (4) > Flashcards

Marketing Strategy (4) Flashcards

1
Q

The marketing functions that are universally recognised are as follows?

A
  • Buying
  • Selling
  • Transporting
  • Storing
  • Standardisation
  • Grading
  • Risk-taking
  • Market information
  • Buying: The purchasing of raw materials or goods for sale
  • Selling: The merchandising and promotion of products and services to offer to the customer
  • Transporting: Moving the product from the producer to the wholesaler, retailer or the market
  • Storing: Goods are often produced ahead of time and need to be stored
  • Standardisation: Meeting specifications and ensuring that each customer receives what is expected
  • Grading: Checking quality aspects at set standards
  • Risk-taking: Investing in resources with no guaranteed return
  • Market information: Obtaining data about the company and the market to assist in making decisions
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2
Q

Define Buying?

A

The purchasing of raw materials or goods for sale

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3
Q

Define Selling?

A

The merchandising and promotion of products and services to offer to the customer

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4
Q

Define Transporting?

A

Moving the product from the producer to the wholesaler, retailer or the market

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5
Q

Define Storing?

A

Goods are often produced ahead of time and need to be stored

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6
Q

Define Standardisation?

A

Meeting specifications and ensuring that each customer receives what is expected

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7
Q

Define Grading?

A

Checking quality aspects at set standards

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8
Q

Define Risk-taking?

A

Investing in resources with no guaranteed return

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9
Q

Define Market information?

A

Obtaining data about the company and the market to assist in making decisions

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10
Q

What are the steps to use to get a good marketing strategy?

A
  1. Situation analysis
  2. Market segmentation
  3. Market evaluation
  4. Product positioning
  5. The marketing mix
  6. Situation analysis (Identify the organisation’s current position, capabilities, objectives and constraints.)
  7. Market segmentation: (Identify the segmentation variables and segment the markets.) Develop profiles of each segment.
  8. Market evaluation: (Evaluate the potential and attractiveness of each segment.) Select the target segment(s).
  9. Product positioning (Identify the positioning concept within each segment.) Select and develop the appropriate positioning concepts.
  10. The marketing mix (Develop the marketing mix strategy.)
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11
Q

Define Target market?

A

A similar group of customers taken from a larger group known as a segment

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12
Q

Define Marketing objectives?

A

The desired outcomes of the marketing strategy that will be used to measure the success & effectiveness of the strategy over time

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13
Q

Define Branding?

A

is the process where a business makes itself known to the public and differentiates itself from competitors. Branding typically includes a phrase, design or idea that makes it easily identifiable to the public.

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14
Q

Define Positioning?

A

The way marketers communicate with the target market to create a perception of the offering

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15
Q

Define Value?

A

The benefits the customer perceives in relation to the cost that must be given up

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16
Q

Define Marketing strategy?

A

The total effort of the four controllable variables (marketing mix), branding and positioning converted into resources and effort to engage with the market

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17
Q

Good marketing research will include the following steps?

A
  • Define the problem or opportunity that exists
  • Do a preliminary investigation
  • Develop a hypothesis
  • Identify the specific information that is required
  • Develop tools to collect the information
  • Identify sources of information
  • Collect the information (now called data)
  • Analyse and evaluate the data
  • Prepare a report for management
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18
Q

Explain Step 1: Situation analysis with regards to forming a marketing strategy?

A

During the situational analysis, both the external environment as well as the micro-environment must be analysed.

During the situational analysis, both the external environment (which consists of the macro-environment and the market environment) as well as the micro-environment (which consists of the internal business and its marketing strategy) must be analysed.

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19
Q

A business must analyse its competitors?

A
  • Strengths,
  • Weaknesses,
  • Strategies,
  • Vulnerabilities.
    (SWSV)
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20
Q

The benefits of internal marketing include the following?

A
  • The commitment of employees to the marketing strategy is obtained
  • Employees become customer-conscious
  • It leads to the integration of the organisational functions and avoids departmental isolation
  • Inter-functional conflict is overcome and inter-functional friction is reduced
  • Better internal communication is achieved
  • It can be used as a general tool to implement other organisational strategies
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21
Q

A sustainable competitive advantage (SCA) is the key to achieving?

A

profitability, based on outperforming the direct competitors in the marketplace.

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22
Q

A competitive advantage can be described as the?

A

collective integration of unique capabilities, competencies and resources that allow an organisation to build and shape its marketing strategies.

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23
Q

The term ‘sustainable’ simply means?

A

a competitive advantage in the long term.

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24
Q

Marketing objectives should be set with these considerations in mind?

A
  • They should keep the customer in mind
  • They should consider how the activity adds value
  • They should be in line with the company’s objectives
  • They should be formulated by all marketing staff
  • They should be understandable and focused
  • They should match the resources available
  • They should be committed to the entire company and other internal stakeholder
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25
Q

Organisations need a hierarchy of objectives moving from?

A

Company objectives to marketing department objectives.

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26
Q

What are the different types of markets:

A
  • The consumer market
  • The industrial market
  • The government market
  • The consumer market: People who buy products for their own consumption
  • The industrial market: People, groups or organisations who buy materials and products for the production process or to resell to consumers
  • The government market: State institutions and departments that buy products in order to provide the public with various services
27
Q

The total marketing approach to marketing management assumes that consumers?

A

have the same needs.

28
Q

Explain the market segmentation approach?

A

divides the total heterogeneous market into smaller, relatively homogeneous groups of consumers with similar characteristics and needs. Marketers then work on different market offerings to meet the different needs of these groups

29
Q

To be useful, a segment must have the following characteristics?

A
  • Identifiable and measurable
  • Substantial
  • Accessible
  • Responsive
  • Identifiable and measurable: Marketers need to be able to identify the segment and measure its size.
  • Substantial: The segment must be large enough for it to be profitable to target that segment alone.
  • Accessible: Marketers need to be able to reach the segment. For example, if most of the people in the segment do not have access to magazines or television, how can they be reached?
  • Responsive: The segment must be receptive to a separate approach in order for it to be worth offering different products to different segments.
30
Q

Explain the Demographic criteria?

A

describe consumers according to factors such as gender, age, marital status, occupation, family size, income level, ethnic origin and level of education.

31
Q

Explain Geographic criteria?

A

divide the market according to where consumers are located.

32
Q

Explain Psychographic criteria?

A

Psychographic criteria divide the market according to consumers’ activities, interests and opinions (this is known as the AIO classification). To use these criteria, marketers must ask the following questions:

  • What activities do prospective customers engage in?
  • What are their interests?
  • How do they view the world around them?
33
Q

Explain Behavioural criteria?

A

The market is divided according to how customers behave toward the product. This involves asking the following questions about the product and the customer:
- When do customers buy the product?
- What benefit do customers seek?
- How much of the product do customers use?

34
Q

If you are aiming your product at organisations, the key drivers of business segmentation are as follows?

A
  • Geographic: Region, location
  • Demographic: Number of employees, annual sales
  • Organisational type: Type of organisation, type of goods
  • Usage rate: Heavy, medium or light user
35
Q

Once the segmentation has been done, it is time to evaluate the potential of each segment according to the following criteria?

A
  • The segment should be big enough to provide sufficient return for all the marketing effort put into it.
  • The segment should be separate from other segments as clearly and as much as possible.
  • The segment should be easily accessible and with the product and communication.
36
Q

Which criteria divides the market according to consumer interests, activities and opinions?

A

Psychographic

(Psychographics is a qualitative methodology used to describe traits of humans on psychological attributes. Psychographics have been applied to the study of personality, values, opinions, attitudes, interests, and lifestyles.)

37
Q

What is the market segmentation approach?

A
  • It divides the market into smaller groups with similar characteristics and needs
  • It divides the market into segments that represent the ideal consumer
38
Q

Why do marketers using the total market approach direct their marketing at the market as a whole?

A

They assume that consumers have the same needs and want certain products for the same reasons

39
Q

How can the consumer market be classified and, therefore, subdivided?

A

According to their needs

40
Q

What does segmenting the consumer market according to geographic and demographic criteria usually give an indication of?

A

The potential of particular market segments

41
Q

When you need to find new customers, you can make use of consumer and business lists, provide examples of these?

A
  • consumer lifestyle lists;
  • magazine subscriber lists;
  • business lists;
  • catalogue customers; and
  • event attendees lists.
42
Q

The product or service must be differentiated from those of the competitors. This differentiation can be achieved through the following?

A
  • Product differentiation
  • Services differentiation
  • Personnel differentiation
  • Image differentiation
  • Product differentiation: Additional features and benefits
  • Services differentiation: Better support or after-sale service
  • Personnel differentiation: More knowledgeable intermediaries
  • Image differentiation: The perception of quality is created
43
Q

What is positioning?

A

How products or services are placed in the market
compared to competitor offerings

44
Q

How can product differentiation be achieved?

A

Through having additional features and benefits

45
Q

Which of the following sets of information is included in the target profile?

A

The chosen market segment, their value, their status as a customer or prospect, their life stage etc.

46
Q

How does personalised targeting differ from broadscale targeting?

A
  • Personalised targeting requires prospective customers’ names and address records, while
  • Broadscale targeting is aimed at a mass audience in a non-personal way
47
Q

What does market targeting refer to?

A

Reaching the right consumers with a compelling message at the right time, and in an appropriate place

48
Q

The traditional variables refer to?

A
  • the product,
  • price,
  • place (logistics), and
  • promotion (communications)
49
Q

The following questions help to guide product strategies?

A
  • Who is the product aimed at?
  • What benefit do they expect?
  • How do we position the product within the market?
  • What differential advantage will the product offer over competitors’ products?
50
Q

Why is pricing a crucial part of the marketing mix?

A

it is the only element that generates a turnover for the organisation, and incorrect pricing could lead to a loss for the business.

51
Q

The following aspects must be considered when pricing products?

A
  • Fixed and variable costs
  • Competitor prices
  • The organisation’s objectives
  • Proposed positioning strategies
  • The target market and their willingness to spend money
52
Q

Place strategies determine the way in which the organisation?

A

distributes the product to the consumer.

53
Q

The place strategies help the organisation to meet its overall marketing objectives, and must therefore be?

A

carefully considered and effectively carried out

54
Q

An organisation’s promotional strategy can consist of which elements?

A
  • Advertising
  • Public relations
  • Sales promotions
  • Personal selling
  • Direct mail
  • Advertising: Paid communication using mass media
  • Public relations: Managing the organisation’s relationship with the public
  • Sales promotions: Discounts used to increase sales in the short term
  • Personal selling: Selling a product or service face-to-face
  • Direct mail: Sending publicity material to a specific individual
55
Q

A product’s life cycle may last only a few months or many years. Although it was a successful product, Kellogg’s recognised the opportunity to stretch the brand by investments that would?

A
  • revitalise it;
  • extend and further develop its growth phase; and
  • help to delay the onset of the maturity phase.
56
Q

Public Relations includes activities like?

A
  • speaking at conferences;
  • winning industry awards;
  • working with the press; and
  • communicating with employees.
57
Q

Why is direct distribution advantageous?

A

It assists the manufacturer to retain control over the
product, and makes the product more affordable

58
Q

What is the purpose of a business’s promotional strategies?

A

They ensure that the product’s benefits are communicated to the target market

59
Q

What is the role of public relations?

A

It creates a perception of the business in the customers minds, and controls the flow of information between the company and the public minds.

60
Q

Why is pricing a crucial part of the marketing mix?

A

It generates a turnover for the business

61
Q

Which traditional variables comprise the marketing mix?

A
  • product,
  • price,
  • place,
  • promotion
62
Q

What are the four controllable variables a marketer uses to form a marketing strategy?

A
  • product,
  • price,
  • promotion,
  • place
63
Q

Internal stakeholders are all those who have invested resources in the business; these include the following?

A
  • Shareholders: Owners of the business
  • Management: Leaders and managers at all levels
  • Staff: Not only marketing but all permanent as well as casual staff

MM (10 decks)

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