MBA B716 Unit 4: Marketing

Question 1

What are the elements of the Marketing Mix

Answer 1

1. Product 2. Price 3. Place 4. Promotion 5. People

Question 2

What is an alternative classification to the Marketing Mix

Answer 2

The Four C’s - Lauterborn (1990)

Question 3

What are the Four C’s?

Answer 3

1. Customer needs and wants (product) 2. Cost to the user (price) 3. Convenience (place) 4. Communication (promotion)

Question 4

What is market segmentation?

Answer 4

The creation of target markets through identifying groups of individuals with homogenous needs and preferences

Question 5

Why have market segmentation?

Answer 5

Helps orgs deal with variety in customers. Because people in different groups will vary in terms of their preferences, spending patterns and the nature of their behavour. Customers in a segment will respond differently to the same stimuli to those in a different segment.

Question 6

What is the crucial element of a marketing strategy?

Answer 6

The crucial element of a marketing strategy is the selection of segments, often referred to as ‘target markets’

Question 7

What are the benefits of a segmentation and targeting approach?

Answer 7

1. Increased knowledge and understanding of target audience through tailored research 2. Easier to identify trends and changes in the target audience 3. More efficient use of resources 4. More effective development and tailoring of marketing programmes 5. Increased potential for setting acheivable and realistic objectives and for achieving these, such as, increased sales

Question 8

What are the limitations of a segmentation and targeting approach?

Answer 8

Requires a lot of market research

Question 9

What are the approaches to segmenting CONSUMER markets?

Answer 9

1. Demographic 2. Geographic 3. Psychographic 4. Behavioural

Question 10

What example from own experience is there of segmentation?

Answer 10

The key target market for the Business School is young people choosing a research-intensive university. Overseas students bring in more money in the form of fees but agents can be expensive and numbers are often unpredictable. Concentrating on the UK undergraduate market would allow for greater planning over the 3-4-year life cycle of the student and provide more opportunities to input and create advocates for the institution post-graduation.

Question 11

What are the approaches to segmenting B2B Markets?

Answer 11

1. Geographic 2. Business demographics eg size, age, org form, sector 3. Behavioural characteristics eg value and volume of purchase 4. Decision-making process eg who decides, number of indivs involved, speed of process 5. Personal characteristics of decision-makers eg age, experience, attitudes towards risk and loyalty to supplier, negotiation style

Question 12

What factors influence targeting decsions?

Answer 12

1. Does market provide required level of profitability? 2. Is the market accessible given available resources?

Question 13

What are the quality criteria for potential market segments?

Answer 13

1. Homogeneous 2. Accessible 3. Measurable 4. Actionable 5. Viable/substantial 6. Ethical

Question 14

Dibb & Simkin (2008) suggest two basic questions should be at the heart of targeting decisions. What are these two questions?

Answer 14

1. How many segments should be targeted? 2. Which segments should be targeted?

Question 15

When deciding how many segments should be targeted, what factors will you consider?

Answer 15

Corporate strategy, market developments, competitive advantage, available product portfolio, available resources, stakeholder requirements, current financial perfomrance, brand standing, customer perceptions and expectations, activities of competitors

Question 16

When deciding which segments should be targeted, what factors do you need to consider?

Answer 16

Assess how attractive are the available segment options?

Question 17

What is another term for undifferentiated approach to marketing

Answer 17

Mass marketing

Question 18

Why use mass marketing?

Answer 18

Cheaper If only minor differences in customer needs and behaviours between segments May only have the resources to target whole market Poor understanding of segmentation benefits Useful for necessitities that people will shop for anyway

Question 19

What are the limitations of mass marketing?

Answer 19

Product or service may fail to satisfy customer needs Marketing programme is too broad to appeal

Question 20

Why use a single-segment strategy?

Answer 20

May have limited resources May wish to develop expertise in one area ie specialise

Question 21

What are the limitations of a single-segment strategy?

Answer 21

Risky because segment may decline

Question 22

What is an example of mass marketing?

Answer 22

Necessities soap, detergent, coca cola

Question 23

What is the definition of mass marketing?

Answer 23

Mass marketing is a strategy which is directed towards attracting a huge portion of the audience. It aims to address the highest number of potential customers while ignoring niche demographic differences. The marketing strategy focuses on a higher volume of sales at lower prices so as to obtain maximum exposure for the product.

Question 24

What is an example of single-segment strategy?

Answer 24

Servicing fax machines, one hour photo development

Question 25

What is a multi-segment strategy?

Answer 25

This is where an org targets different products or services at different segments. If one declines the org can reallocate resource elsewhere

Question 26

What do Dibb & Simkin suggest are the factors used by an organisation to assess the attractiveness of segments?

Answer 26

1. Resources 2. Existing market share 3. Production and scale economies 4. Product expertise 5. Customer needs 6. Segment size, structure and growth 7. Competitive environment 8. Market trends and the marketing environment 9. Profitability/returns