Mock exam Flashcards
Discuss why integration between digital (online) and traditional (offline) media will make a campaign more effective overall. [25 Marks]
Offline media often superior in generating attention, stimulating attention and building reliability while online media is better at personalisation, interaction and word of mouth.
Advantages
Infinite reproduction and sharing (copied and shared repeatedly)
Modularity of content: content can be produced by more participants, provide pp w exactly what they want without extraneous content.
Consumer network: easier to understand the subjective norms that influence a person’s behaviour as the Internet can help find the social grapth of a consumer
User control production: Users act as gatekeepers to control which content they receive
Customized content produced by users or by advertiser but be highly customized to meet the high demand of customers
Information streams:
Advantages and disadvantages of using offline communications to support ecommerce
Advantages:
Cumulative reinforcement effect of integrated marketing commnucations: 4Cs (Pickton and Broderick, 2001)
Coherence – different communications are logically connected.
Consistency – multiple messages support and reinforce, and are not contradictory.
Continuity – communications are connected and consistent through time.
Complementary – synergistic, or the sum of the parts is greater than the whole!
Disadvantages:
Higher cost: as ROI tends to be higher for online communications such as SEO, Pay per click marketing or affiliate marketing
Higher wastage: online marketing can be easier to build right tracking process => easy to waste money on traditional marketing
Poorer targeting
Poorer accountability: straighforward to track response online
LEss detalied information
Less personalised
Less interactive experience
Difference between traditional communications and digital commnucations
- Audiences r connected w the organizations
- Audiences r connected w each other.
- Audiences have access to other information (any information provided will be discussed, challenged within hours of published)
- Audiences pull information
=> main differences for management:
- Harder to control (huge number of media)
- Easier to monitor: management tool of google, easier to find where a brand is discussed online
- Need of faster response:
Internal marketing (oft-neglected aspect of marketing communications)
- A shift from push (the advertiser places a message in order to influence audiences) to pull (audiences pull the message themselves - googling
- User generated advertising (UGA) - Youtube, beauty bloggers (developed by members of the public isolated from advertisers)
- conversation platform
- traditional media as a means to point pp towards websites
Why PPC is predictable in comparison w SEO?
With PPC, users can set budget limits to control the amount of traffic they receive and how much they spend. They can also track history of clicks
The PEST(LE) framework is one of the most common frameworks of analysing an organisation’s macro-environment. Using relevant literature discuss the importance of the framework in developing a marketing strategy.
- Even in the same area, each country has its own view on the roles of business. JP & China, contribute to national development. HK & Thailand: contribute to the benefir of shareholders. Especially important for companies who want to enter a foreign market or multinational companies (transfer pricing)
- The business world is changing every day in an unpredictable way, digital world => companies have to keep themselves updated of the change of the external factors to adapt their business and marketing strategy
- The information available may be biased => need to know the model in order to effectively collect the information and analyse them to remain competitive.
PESTLE is comprehensive. After pestle n internal analysis => SWOT
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Using relevant literature discuss key pricing considerations that a marketing manager has to make when considering Pricing as integral element of their Marketing Strategy. Illustrate your answer with examples. [50 Marks]
The question relates to material covered in Lecture 9; Chapter 10 West, Ford and Ibrahim (2015); Oliva, and Kallenberg, (2003); Niels, Fleischmann, and Van Nunen, (2008)
Students need to at least define Price as one an important part of Marketing Strategy. Students need to at least note that Price is the only element that generates revenue. Students may refer to the different external and internal influences on Pricing, the need for pricing objectives to be consistent with the organisation’s overall strategic marketing orientation and objectives, the different pricing considerations / decisions that need to be made on a strategic and tactical level. Excellent students may mention the pricing considerations when offering a new product, the problem with competitive interactions in pricing, issues of fairness in pricing, price cartels, and price wars.
Pricing is one of the 4Ps in marketing strategy. Price is the only thing that create revenue and just a small increase or decrease can have a disproportionate impact on the revenue.
Elements of Pricing
- Value: consumers perceive price in the context of value
- Variable: can be changed in a number of ways from the absolute number, such as by time form or terms of payment.
- Variety: Price can be set at different levels across multiple products and services (unilever decrease size of shampoo n set lower price)
- Visible/Invisible
- Virtual: the decision to lower or increase the price is quite straightforward, easy and quick to make.
Objective of price: In long-term: strategic - Consistent w the marketing strategy - Generate revenue - Signaling quality Short-term: Tactics - Response to market condition - Competitor behaviour
Different pricing strategy:
- Cost-based
- Competitor based
- Value-based
Factors affect pricing External Factors • Customers • Supply/demand • Price elasticity • Legal (regulations) • Distribution channels • Competitors Internal Factors • Organisational objectives – incl. marketing objectives • Costs
Implementing pricing strategy
- Human capital
- System capital
- Social capital
Other Price Consideration
Price sensitivity: based upon one’s overall price elasticity. on the level of importance consumer place on price
Price war: when offering a new product, if the product offers any small enhancement, it should be priced a little bit higher to avoid price war
Price discrimination:
Considering the value of long-term relationships with customers as opposed to discrete transactions has a fundamental impact on marketing strategy. Discuss using relevant literature and illustrate your answer with examples. [50 Marks]
The question relates to material covered in Lecture 6; Chapter 7 West, Ford and Ibrahim (2015); Chapter 6 Chaffey and Ellis-Chadwick (2012); Anderson, Håkansson, and Johanson, (1994); Ritter, Wilkinson and Wesley (2004); Roberts and Liu (2001); Perks, Gruber and Edvardsson (2012).
Students might introduce the idea of relationship marketing by offering some background history and by highlighting the situations in which it is considered particularly appropriate, e.g. industrial marketing and high-contact services marketing, which rely heavily on inter-personal relationships/interaction with customers. Students may compare the transaction marketing paradigm with relationship marketing and the impact on customer interactions, e.g.
Students may consider relationship marketing from the perspective of ‘Servitisation’ and refer to the fact that ‘Servitisation’ of a lot of industrial sectors and therefore the hybridisation of products and services to form complex offerings has increased the need for relationships and relationship building. Students may highlight a number of benefits including increased customer knowledge, loyalty, retention, and profits. Students may also highlight a number of internal issues in terms of: front-line staff as part-time marketers, service customisation and staff empowerment, and that implementing a strategy focused on long-term relationships requires an internal culture/strategy that reflects these changes. Students may also discuss the fact that the relationship marketing paradigm is based in a move from competition to co-operation, the fact that businesses operate within their environment, not in a closed system, and therefore rely on relationships and networks to succeed.
Repeat purchase is the key to success. five times more costly to bring in a new customer than to keep one existing Reichheld, 1996)
The Interaction and Network Approach to Industrial
Marketing
The interaction/network approach to industrial marketing was originated in Sweden at Uppsala University during the 1960s[74] and has since spread to a large number of countries. The marketing mix management paradigm with its Four Ps, on the other hand, is a much more clinical approach, which makes the seller the active part and the buyer and consumer passive. No personalized relationship with the producer and marketer of a product is supposed to exist, other than with professional sales representatives in some cases. Obviously, this latter view of marketing does not fit the reality of industrial marketing and the marketing of services very well. (customers often seek highly customised solutions, services are inherently variable in quality and substance. Implications of variability: Service quality is difficult to manage; fewer opportunities to standardise service delivery.)
Relationship marketing is the development of long-term and intimate relationship between buyers and sellers.
One-to-many to one-to-some and one-to-one marketing strategy (mass customisation and personalisation) => relationships r managed on a individual basis
TRANSACTION MARKETING (Gronroos, 1994)
- Short-term focus
- Marketing-mix led
- Customer more price sensitive
- Technical quality dominating
- Indirectly by monitoring market share
- Ad hoc customer satisfaction survey (difference between satisfaction and loyalty)
- Interface of no/little strategic importance
- Internal marketing of no/little importance
RELATIONSHIP MARKETING
- Long-term focus
- Interactive marketing led
- Customer less price sensitive
- Functional quality important
- Directly by monitoring customer database
- REal time customer feedback system (Real-time customer feedback is a type of qualitative data collection, in which you receive live feedback from visitors on your website or mobile app.)
- Interface of great importance
- Internal marketing of great importance
Identify types of customers:
The suspect: not yet interested in the product/service. determine whether the suspect is worth spending time with. How to decide: customer equity: customer equity is the present value of the anticipated lifetime revenue the company’s customers will generate, minus their acquisition and retention costs. If a company embraces increasing customer equity as its performance goal, it’s acknowledging that a marketing tactic that boosts sales in the short term can have a negative effect on customer lifetime value. When forced to choose between one goal and the other, it favours the latter. (Hanssens et al., 2008)
The prospect who has interest in the product but not yet make a purchase
The customer who buy, not all r good customers. deal w mixed different types of customers
Difference between B2C n B2B market
Most B2B companies use customer satisfaction to measure customer loyalty
“Privacy is the most important concern in the digital economy”. Discuss using relevant literature and illustrate your answer with examples. [50 Marks]
The question relates mainly to material covered in Lecture 2, 6 and 7; Chapters 3, 7 and 13 West, Ford and Ibrahim (2015); Chapters 2, 3 and 6 Chaffey and Ellis-Chadwick (2012); Sheehan and Hoy (2000); Bélanger and Crossler (2011) and Milne (2000).
Privacy is a multifaceted concept. Students need to at least identify Privacy as a concern for digital marketing as an external macro-environment factor, and/or an important factor for relationship marketing, and/or a factor that companies need to address in the premises of their ethical and sustainable approaches in marketing. Weak students will be overly descriptive. Good students will note that that privacy is related to the external legal environment. Good students will also note that privacy is particularly problematic when considering relationship marketing online especially when considering the personal data use from companies. Students may mention that there are technologies that can ensure the safety and security of customers’ personal data such as firewalls, backing up data, and the importance of strong login/passwords. Students may mention that Permission marketing and opting in rather than opting out in direct marketing databases and lists. Students may also mention the need for options to opt-out of direct emails upon receipt of such emails as well as the thorny issue of selling customer data to third party companies. Students may also mention that customers are allowed access to their data according to the Data Protection Act; that companies should inform their customer why the customer data is collected and how that would benefit the customer as well as that the use of cookies and other data gathering techniques needs to be transparent on a website.
Excellent students will mention the importance of following the legal developments regarding spam and direct email marketing, and the use of cookies. Excellent students may relate the issue of privacy with managing customer relationships especially when managing relationships is related with more data being held by the company. Excellent students may also mention how the concepts of sustainability and ethics put a big weight in the need for transparent use of data and for explicitly addressing privacy issues online.
a
Imagine you are a marketing consultant for a small medium UK based Bed and Breakfast chain who wants to grow both nationally as well as internationally. Using your knowledge of marketing communications provide concrete recommendations on the right media mix (i.e. which online / offline media should they choose) for reaching their national customers and how this may differ when reaching international customers. [25 Marks]
The students answering this part of the question should not focus in the theory of communications and IMC but instead use their knowledge of marketing communications and the different type of media that exist in order to provide an answer to the scenario provided above. Students are asked to focus on the media mix both online and offline. Weaker students will either be too descriptive in their discussion of which media to use (they will not justify the media choice) and not use the analysis to drive strategic insights or not differentiate between the national and international options. Good students will provide different potential ways to communicate separately the national and the international markets. Excellent students will drive particular insights directly related to media choice in order to drive the growth of the company offered in the scenario.
- Electronic/ Digital Media (Internet, kiosks) - Social media, google adwords, email marketing, SEO)
- Display Media (Billboards, Neon signs, wall graphics)
- Cinema
- POP (Service-scapes, Retail showrooms)
- Events
Using relevant literature discuss the concept of Customer Relationship Management in the digital economy. Illustrate your answer with examples.
Customer relationship management is the procsss of gathering customer wants and needs to adjust its offering to best fit these needs. This involves build large customer storehouse of data
Answer the following question
- a) The PEST(LE) framework is one of the most common frameworks of analysing an organisation’s macro-environment. Using relevant literature discuss the importance of the framework in developing a marketing strategy. [25 Marks]
b) Imagine you are a marketing consultant for a small medium chain of UK based Cafés who want to grow both nationally as well as internationally. Using the PEST(LE) framework discuss how the macro-environment may impact the growth of the company on a national level and the additional factors when expanding internationally. [25 Marks]
SECTION B
Answer ONE question only
2. Using relevant literature discuss the merits of market segmentation in formulating marketing strategy. Illustrate your discussion with examples. [50 Marks]
3. Using relevant literature discuss the importance of the Implementation stage of Marketing Strategy. Illustrate your answer using examples. [50 Marks]
4. Using relevant literature discuss the concept of Customer Relationship Management in the digital economy. Illustrate your answer with examples. [50 Marks]
5. Using relevant literature discuss the importance and the ways in which companies can build Brand Advocates in the digital economy. Illustrate your answer with examples.
[50 Marks]
a
