MBA B716 Unit 4: Marketing Flashcards
End of year exam
What are the elements of the Marketing Mix
- Product 2. Price 3. Place 4. Promotion 5. People
What is an alternative classification to the Marketing Mix
The Four C’s - Lauterborn (1990)
What are the Four C’s?
- Customer needs and wants (product) 2. Cost to the user (price) 3. Convenience (place) 4. Communication (promotion)
What is market segmentation?
The creation of target markets through identifying groups of individuals with homogenous needs and preferences
Why have market segmentation?
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.
What is the crucial element of a marketing strategy?
The crucial element of a marketing strategy is the selection of segments, often referred to as ‘target markets’
What are the benefits of a segmentation and targeting approach?
- 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
What are the limitations of a segmentation and targeting approach?
Requires a lot of market research
What are the approaches to segmenting CONSUMER markets?
- Demographic 2. Geographic 3. Psychographic 4. Behavioural
What example from own experience is there of segmentation?
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.
What are the approaches to segmenting B2B Markets?
- 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
What factors influence targeting decsions?
- Does market provide required level of profitability? 2. Is the market accessible given available resources?
What are the quality criteria for potential market segments?
- Homogeneous 2. Accessible 3. Measurable 4. Actionable 5. Viable/substantial 6. Ethical
Dibb & Simkin (2008) suggest two basic questions should be at the heart of targeting decisions. What are these two questions?
- How many segments should be targeted? 2. Which segments should be targeted?
When deciding how many segments should be targeted, what factors will you consider?
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
When deciding which segments should be targeted, what factors do you need to consider?
Assess how attractive are the available segment options?
What is another term for undifferentiated approach to marketing
Mass marketing
Why use mass marketing?
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
What are the limitations of mass marketing?
Product or service may fail to satisfy customer needs Marketing programme is too broad to appeal
Why use a single-segment strategy?
May have limited resources May wish to develop expertise in one area ie specialise
What are the limitations of a single-segment strategy?
Risky because segment may decline
What is an example of mass marketing?
Necessities soap, detergent, coca cola
What is the definition of mass marketing?
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.
What is an example of single-segment strategy?
Servicing fax machines, one hour photo development
What is a multi-segment strategy?
This is where an org targets different products or services at different segments. If one declines the org can reallocate resource elsewhere
What do Dibb & Simkin suggest are the factors used by an organisation to assess the attractiveness of segments?
- 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
