Module 1: Flashcards

Question

what is moslows (195) hierarchy of needs?

Answer 1

it is a framework for classifying basic motivations - 5 groups of needs are stacked on top of another and form a progression

Answer 2

physiological,safety, belonging and love,esteem, self actualisation

Answer 3

basic feelings such as hunger and thirst even warmth -this will be easily satisfied but are short term

Answer 4

once life food drink and warmth have been addressed the need for self protection and long term survival is next this covers- housing,personal safety, insurance health, gym membership and the ability to be able to function effectively in social eg- car to get to work.

Answer 5

this is about emotional security wanting ti feel accepted and valued by those closest to you, marketers play on this need through the portrayal of the family in particular this will focus on social needs such as meeting up with friends in a pub or cinema or even finding a life partner

Answer 6

this extends outwards from the previous stage to cover the individuals needs for success, status and good opinion within wider society, this may include professional status and respect standing within social groups such as sports clubs and societies or what the neighbours think.

Answer 7

this is the ultimate goal, the achievement of complete satisfaction through successfully completing ones potential that may mean anything depending on who you are and what you want out of life some will achieve self actualisation through becoming head of multinational organisation while others will find it through the success of raising a happy and healthy family - this is a difficult stage for the marketer to handle because it is so individual and thus the hope is that by fulfilling the other needs discussed above the marketer can help to propel the individual to self actualisation only the individual can tell when this stage is complete.

Answer 8

this influence can come from family values , religion or nationality - food types,alcohol or opening times of a store or willingness to accept new technology.

Answer 9

this is to determine the demographic and the social grade. this will tell the marketer if someone has a lower or higher disposable income.

Answer 10

A- Upper middle class - Higher managerial, administrative or professional. B- Middle class - intermediate managerial. C1-lower middle class- supervisory or clerical, junior managerial administrative, professional. C2-Skilled working class- skilled manual workers D-working class -semi and unskilled manual workers E- those at the lower level of Subsistence - state pensioners, widows (no other earner) casual or lowest grade workers.

Answer 11

social groups will influence your choice or clothes, technology or social activities, family will influence purchases made from programming from a young age like your opinions on certain products or products used in your home growing up. influences may be aspirational as you may want to purchase a product that represents success like an LV bag or BMW.

Answer 12

our personalities lie at the heart of our behaviour as a consumer and marketers try to define the particular personality traits or characteristics among a target group of consumers which can be reflected in the product itself and the marketing effort around it.

Answer 13

perception represents the way in which individuals analyse interpret and make sense of incoming information and if effected by personality experience and mood no two people will interpret the same stimulus in the same way even the same individual might interpret it differently at different times for example seeing an advertisment for food when hungry or relaxing at home on a sunday you are more likely to read through a long article a then if you are in a rush.

Answer 14

an influencer is someone who has the power to affect the purchasing decisions of others because of his/her authority, knowledge position or relationship with his/her audience -a following in a distinct niche,with whom he/she actively engages with. the size of the following depends on the size of his/her topic or niche.

Answer 15

consumers purchase primarily for themselves and their families, for the most part these are relatively low risk, low involvement decisions that are made quickly , although there might be some economic and psychological influences effecting of constraining them. in contrast B2B purchasers are always buying on behalf of other people ie the organisation wich implies certain differences from the consumer situation these differences give rise to much more complexity in the buying process and the marketer must appreciate them when designing strategies for encouraging trial reordering.

Answer 16

B2B consumers often/ usually- Consumer customers often/usually. purchase goods and services thats meet specific business needs/purchase or services that meet individual or family needs need emphasis on economic benefits/need emphasis on psychological benefits use formalised ,lengthy purchasing policies and processes /buy on impulse with minimal processes involve large groups in purchasing decisions /purchase as individuals or a family unit. buy large quantities and buy infrequently / buy small quantities and buy frequently. want a customised product package/ are content with a standardised product package targeted at a specific market segment experience major problems if supply fails/ experience minor irritation if supply fails find switching to another supplier difficult/ find switching to another supplier easy. negotiate price/accept stated price purchase direct from suppliers/purchase from intermediaries. justify an emphasis on personal selling/justify an emphasis on mass media communication.

Answer 17

the macro environment is the context in which organisations and marketers operate it is evolving but as principle the organisation has no influence over this evolution and has to accept it and adjust the organisation marketing strategy , objectives and plans according to the evolution of the marketing environment. for this reason marketers are continuously monitoring the macro environment.

Answer 18

P-political E-economic S-socio-cultural T-technological L-legal E-environmental E-ecological

Answer 19

the political environment covers the external forces at work, national governments and local authorities and assemblies sometimes even through trans-national organisations such as the EU. The political environment controls the activities of a domain under the government's control and guides the principles and laws that control business activities.

Answer 20

the legal environment covers not only the external forces controlled by governments, but also the constraints imposed by other trade or activity oriented regulatory bodies. Some of the rules and regulations developed and implemented by bodies under this heading have the force of law while other are voluntary such as advertising codes of practise these include what can be bought and sold or even what is allowed to be included in a product such as levels of salt and sugar.

Answer 21

the economic environment affects the economic conditions that an organisation has to operate under including the structure of competition in a market, the cost and availability of money for marketing investment in stock and new products for example, and the economic conditions affecting a customers propensity to buy, the global recession of the late 2000s for instance, caused a significant increase in unemployment at all social levels and thus affected consumers willingness and ability to buy many kinds of products.

Answer 22

the sociocultural environment is of particular concern to marketers as it has a direct affect on there understanding of customers and what drives them. Not only does it address the demographic structure of markets but it also looks at the way in which it attitudes and opinions are being formed and how they are evolving . a general increase in health consciousness, for instance, has stimulated the launch of a wide variety of products with low levels of sugar, fewer artificial ingredients and no additives.

Answer 23

technological innovation and technological improvements have had a profound effect in all areas of marketing, computer technology , for instance has revolutionised product design , quality control,materials and inventory management, the production of advertising and other promotional materials and the management and analysis of customer information . The rise in direct marketing as communication technique and relationship building through the brand presence on facebook, twitter and other social media owes alot of cheap availability of powerful computerised database management and internet technology.

Answer 24

changes in ethical environment will impact on issues such as fair trade, working conditions of labour and minimum wage. these will relate not only to the general principle of business but also to what are acceptable products and components.

Answer 25

these factors relate to the environmental impact of the production,use and disposal of products so the influence of such factors will influence purchases on how green a product is. so companies such as lush will use these influences as a reason to purchase their products in preference to those that are perceived to be less environmentally friendly. marketers will use strategies to emphasise the favourable elements relating to their products.

Answer 26

Markets are a collection of customers, marketers aim to attract customers to purchase products in preference to their competitors offering Marketers will have a clear idea about who their customers are and also as a consequence who their competitors are Marketers will have a criteria to identify their customer base this is based of of factors such as social psychological, democratic for example Ferraris target audience would be the same as porsche.

Answer 27

an organisation may define the market its in either by the type of products they produce eg; mobile phones computers or family cars others may define their market by who they are competing against so BMW will be identifying their markets as competing against mercedes and jaguar. many strategies uses by marketers are called competitive strategies as they compete for customers.

Answer 28

these are organisations that provide either components or finish products to assist the marketing efforts so intel will provide computer chips to dell they would be the supplier. there may be suppliers who provide products that do not directly contribute to a product but are important for marketing ie a company car for sales reps or an advertising company. for a supermarket they will have a wide range of suppliers and the ability of organisations such as tesco/sains to be competitive and making a profit will depend on the relationships with the suppliers. elements such as cost of supplies, supplying innovative and original products or components and advising on future developments is critical to an organisations success.

Answer 29

these are distributors such as such as shops and supermarkets and even online stores that make these products available to the final customers in addition they may provide support through promotions, after sales service or even credit facilities so intermediaries are like suppliers - a critical element in the success of an organisation to encourage their target customers to by their products.

Answer 30

publics are sometimes called stakeholders and have an interest in the organisation either directly or such as employees and stakeholders or indirectly as the local community , media, trade unions or even governments therefor consideration of these groups is important to ensure that the organisation develops a cooperative relationship that facilitates a favourable marketing environment ie positive stories in the news or good review or new products.

Answer 31

resources, employee skills and mix, capabilities and core competencies.

Answer 32

simply resources are things that an organisation has and can use. resources is a broad term that refers to what the organisation has. in marketing terms we are particularly interested in products, brands, financial position, loyal customers, retailer relationships, supplier relationships, access to technology, manufacturing skills and innovation.

Answer 33

this is related to resources but has a closer focus on human resources it is particularly valuable for in- service firms that rely on customer employee interaction and in organisations that reply on innovation and improved operations being delivered by key staff.

Answer 34

these are things the organisation can do and do well, like apple launching products or red bull creating a high public profile but also designing and producing products like louis vuitton.

Answer 35

this is considered a resource as a corporate culture can have a big impact on the performance of an organisation , so an accountancy practice will have a corporate culture that is based on accuracy and probability whereas a tech startup may be based on innovation and creativity.

Answer 36

when analysing the environment will summarise the internal aspects eg :resources and capabilities in relation to the macro and micro environment by creating a swot analysis the external create opportunities and threats whilst the internal analysis identifies the organisations strengths and weaknesses.

Answer 37

macro trends are the broad environmental factors that affect activity in markets. and usually lie beyond the control of marketing managers. research activity is needed to asses the impact on consumers and business markets - this would include key variables like economic downturn and major market trends that impact purchasing decisions.

Answer 38

micro trends can be managed and effect customer purchasing preferences and include factors such as changing lifestyle, customer needs and purchase activity.

Answer 39

have a good understanding of the eviromnent they operate within.

Answer 40

Marketers are able to identify the best way to take advantage of the opportunities present in the market place and how to best minimise threats.

Answer 41

attributes,characteristics and factors that give competitive advantage to the business. eg; successful brands and efficient production facilities.

Answer 42

attributes, characteristics and factors that give competitive advantage to the business. eg: a history of defective products, poor brand reputation.

Answer 43

favourable situations that can strengthen the competitive advantage of the business or provide the business with new sources of competitive advantage. eg; new product development, finding new customer segments for existing products and opportunities for further cost reduction thanks to creativity and technological innovations and others.

Answer 44

unfavourable situations and factors that could create problems for the business, compromising its competitive advantage to a certain extent. eg: loss of key members of the workforce, an increase in prices of raw resources, patent infringement and other law suits.

Answer 45

Marketers identify and build on strengths and discover new opportunities and work to eliminate or minimise threats to the business.

Answer 46

primary research is field research and is conducted for a specific research when the information does not already exist or available in any form and has to be undertaken from scratch. the advantage to this is that it can be tailored to the problem or can be used fro product testing or campaign evaluation but it can also be expensive and time consuming.

Answer 47

Desk research and consists of data and information that already exists and can be accessed by an organisation this would include public government statistics and published market research reports organisations will subscribe to data produced by research companies like nielson who provide retail statistics normally an organisation will have its own secondary research that is information that is collected for general use. Sales figures are an obvious example but there may be other information such as competitor activity collected by the sales tea or feedback from customers. these can be used by marketers to form strategies. clearly if secondary research is available that answers the question or solves the problem then that is the quickest and most effective way to gather the data but in many cases secondary data can not be directly applied or only gives half the picture.

Answer 48

this type of research involves numbers and is often called data research, it involves a larger number of surveys and is based of of factual data that allows sats based analysis. The success of this research depends on being able to get enough research so that it can be used against the general public. This research can be taken my telephone interviews, face to face interviews , mail or online questionnaires. This research is analysed through programmes such as SPSS or Oracle to provide statistical analysis that creates the ability to take a sample and using this sample extract information about target customers. secondary research can also be Qualitative such as sales figures census figures or even research from market research companies and again this can be analysed using stats techniques.

Answer 49

This research is about opinions and feelings which is interpreted. This type of research is especially useful for investigating motivation,attitudes, beliefs and intentions rather then utilising probability based samples. It is often based of off very small scale samples and as a result can not be generalised in numerical terms. although the results are often subjective and impressionistic, they can reflect the complexity underlies customer decision making capturing the richness and depth of how and why customers act the way they do.

Answer 50

Quantitative methods: * Face-to-face * Telephone/mobile * Postal * Online – searching the internet for information or for ideas and opinions * Omnibus - conducting a number of interviews with a specific target group on a regular basis.

Answer 51

Quantitative explains the how many and Qualitative explains the why.

Answer 52

Qualitative methods: * Individual depth interviews * Panels – this is a group of experts who advise on specialist subjects. Also called Delphi technique * Focus groups – interviews in groups rather than individually * Online group discussions * Chat rooms * Social media research – searching online communities such as Facebook.

Answer 53

The principle of the marketing mix was first proposed by McCarthy (1960). The four elements of the marketing mix are product, price, place (distribution) and promotion. In the 1990s this was expanded to 7Ps to include specific services (Boom and Bitner,1990). The extra 3 Ps are physical evidence, people, process.The marketing mix is issued by marketers to create a unique offering to customers that is attractive to the customers that the marketer is targeting. The marketing mix is the toolbox that the marketer uses to facilitate the relationship between the producer and the customer.

Answer 54

The product is at the heart of the marketing exchange. Remember that customers buy products to solve problems or to enhance their lives and thus the marketer has to ensure that the product can fully satisfy the customer, not just in functional terms, but also in psychological terms. The product is important, therefore, because it is the ultimate test of whether the organisation has understood its customer's needs. Normally the term is used to represent a physical good, but also can be a service.

Answer 55

Services represent intangible products comprising activities, benefits or satisfactions that are not embodied in physical products. Items such as financial services, holidays, travel and personal services create problems for marketers, because of their intangibility and inherent perishability. Service providers have to find ways of either bringing the service to the consumer or persuading the consumer to come to the service delivery point. Communication has to develop both functional and psychological benefit themes as well as reassuring the potential customer of the quality and consistency of the service offered.

Answer 56

“Product refers to what the business offers for sale and may include products or services. Product decisions include the "quality, features, benefits, style, design, branding, packaging, services, warranties, guarantees, life cycles, investments and returns” (Blythe, 2009).

Answer 57

Price is the value that is placed on something. Price is measured in money, as a convenient medium of exchange that allows prices to be set quite precisely. This is not necessarily always the case, however. Goods and services may be bartered (‘I will help you with the marketing plan for your car repair business if you service my car for me’), or there may be circumstances where monetary exchange is not appropriate, for example at election time when politicians make promises in return for your vote. Price is any common currency of value to both buyer and seller. Even money-based pricing comes under many names, depending on the circumstances of its use: solicitors charge fees; landlords charge rent; bankers charge interest; railways charge fares; hotels charge a room rate; consultants charge retainers; agents charge commission; insurance companies charge premiums; and over bridges or through tunnels, tolls may be charged. Whatever the label, it is still a price for a good or a service, and the same principles apply.

Answer 58

Promotion refers to marketing communications and comprises elements such as: advertising, public relations, direct marketing, personal selling and sales promotion, social media. The purpose of promotion is to encourage a customer to enter into an exchange relationship with the producer of the product or service

Answer 59

Place or distribution provides access to a product for a customer. There are a variety of ways that a customer can access a product. The marketer’s role is to ensure that not only the product is available to the customer but that the distribution of the product is appropriate to the type of product. So, a Ferrari is distributed in a different way to a soft drink.

Answer 60

Services depend on people and interaction between people, including the service provider's staff, the customer and other customers. As the customer is often a participant in the creation and delivery of the service product, there are implications for service product quality, productivity and staff training. The ability of staff to cope with customers, to deliver the service reliably to the required standard and to present an image consistent with what the organisation would want is of vital concern to the service provider.

Answer 61

Physical evidence comprises the tangible elements that support the service delivery and offer clues about the positioning of the service product or give the customer something solid to take away with them to symbolise the intangible benefits they have received. Shostack (1977) differentiates between essential evidence and peripheral evidence. Essential evidence is central to the service and is an important contributor to the customer's purchase decision. Examples of this might be the type and newness of aircraft operated by an airline or the car fleet belonging to a car hire firm, the layout and facilities offered by a supermarket or a university's lecture theatres and their equipment as well as IT and library provision.

Answer 62

Because the creation and consumption of a service are usually simultaneous, the production of the service is an important part of its marketing as the customer either witnesses it or is directly involved in it. The service provider needs smooth, efficient customer-friendly procedures. Some processes work behind the scenes, for example administrative and data processing systems, processing paperwork and information relating to the service delivery and keeping track of customers.

Answer 63

The marketing mix is central to the delivery of a marketing strategy. The management of the marketing mix is referred to as the marketing programme. The benefit of having a marketing mix that is linked to a strategy is that it provides a context that makes the marketing mix more effective. Synergy is created this way by marketers ensuring that all the elements of the marketing mix whether it is 4 or 7Ps are working in harmony, to the same purpose. This is emphasised by the way that the marketing strategy is linked to the overall organisational strategy and objectives. So, there is a central focus of the marketing mix as it is coordinated with the overall organisational strategy. The elements that are used will ensure that the resources at a marketer’s disposal such as branding is used effectively to develop a proposition that is more favourable than a competitor’s. So, create what is known as competitive advantage through the marketing mix. In addition, it will use traditional elements in the marketing mix such as TV advertising, poster campaigns and ‘money-off’ incentives alongside newer tools such as those found on social media, for example, Twitter, Facebook, mobile apps and influencers. These synergies not only produce highly effective marketing mixes but ones that are cost effective.

Answer 64

A coordinated marketing mix ensures that the organisation is able to use its resources in an efficient way, which cuts costs and increases revenue. As a consequence, the over profitability of the organisation increases.

Answer 65

Budgets are economies through efficiency of a more effective marketing mix and stops both cannibalisation by different products chasing the same customer and ensures that products can leverage the marketing activities of the sister products

Answer 66

By coordinating marketing mixes, a company with a large number of brands will ensure that there is no overlap between brands. For example, a company like Volkswagen will have clear market positions for Skoda, SEAT, VW and Audi.

Answer 67

By being more efficient, more co-ordinated and focused in the way the marketing mix is presented, it will ensure that the marketing of the company is more competitive, creating competitive advantage over their rivals. A company like Volkswagen is able to challenge their competitors in many different markets with many different products and brands

Answer 68

A coordinated marketing mix will ensure that customers, whether they purchase online or in a traditional way (or both) are integrated into the marketing mix decisions that are made by the marketing mix, and that these different modes of purchase are coordinated themselves.

Answer 69

A product exists at several levels. The importance of this is that even physical products such as a chair or a car, will have services that are attached to it. Some of these are complementary like a warranty for a new car, or others are additional to attract customers to purchase such as interest-free credit. What this shows is that in all marketing strategies marketers need to understand the importance of services to the marketing of a product

Answer 70

The core product represents the heart of the product, the main reason for its existence and purchase. The core benefit of any product may be functional or psychological and its definition must provide something for the marketer to work on to develop a differential advantage.

Answer 71

The tangible product is essentially the means by which the marketer puts flesh on the core product, making it a real product that clearly represents and communicates the offer of the core benefit. The tools used to create the product include design specification, product features, quality level, branding and packaging.

Answer 72

The augmented product represents add-on extras that do not themselves form an intrinsic element of the product but may be used by producers or retailers to increase the product's benefits or attractiveness.

Answer 73

Services are not a homogeneous group of products. There is wide variety within the services category, in terms of both the degree of service involved and the type of service product offered. Nevertheless, there are some general characteristics, common to many service products, that differentiate them as a genre from physical goods. There are few pure services. In reality, many product ‘packages’ involve a greater or lesser level of service. Products can be placed along a spectrum, with virtually pure personal services involving few, if any, props at one end, and pure products that involves little or no service at the other.

Answer 74

A product-based classification groups together products that have similar characteristics, although they may serve very different purposes and markets. There are three main categories: durable products, non-durable products and service products

Answer 75

Durable products last for many uses and over a long period before having to be replaced. Products such as domestic electrical goods, cars and machinery fall into this group. A durable product is likely to be an infrequently purchased, relatively expensive good.

Answer 76

Non-durable products can only be used once or a few times before they have to be replaced. Food and other FMCG (Fast Moving Consumer Goods) fall into this category, as do office consumables such as stationery and computer printer cartridges. A non-durable is likely to be a frequently purchased, relatively low-priced item requiring mass distribution through as wide a variety of outlets as possible and mass communication based on psychological benefits. Another way of looking at this is how products are purchased.

Answer 77

Convenience goods correspond to the routine response buying situation. They are relatively inexpensive, frequent purchases. The buyer puts little effort into the purchasing decision and convenience often takes priority over brand loyalty. If the desired brand of breakfast cereal is inexplicably unavailable within the store that the shopper is visiting, they will probably buy an alternative brand or do without rather than take the trouble to go to another shop

Answer 78

Linked with limited problem-solving behaviour, shopping goods represent something more of a risk and an adventure to consumers, who are thus more willing to shop around and plan their purchases and even to enjoy the shopping process. Comparison through websites, advertisements and visits to retail outlets may be supplemented by information from easily accessible sources, such as consumer organisations published reports, word of mouth from family and friends and brochures, as well as advice from sales assistants in the retail setting

Answer 79

Speciality goods equate with the consumer's extensive problem-solving situation. The high-risk, expensive, very infrequently purchased products in this category evoke the most rational decision making but not always. Jewellery and sports cars fall into this category, which can be decisions based on emotions rather than rationality.

Answer 80

What is the difference between a customer and a consumer? Put simply, a customer pays for a product and a consumer uses it. Normally they are the same person. Sometimes they are not, like a parent buying clothes for their child.

Answer 81

B2B marketing and purchasing is a complex and risky business. An organisation may buy many thousands of products and services, costing anything from a few pennies to many millions of pounds per item. The risks are high in these markets where a bad decision, even on a minor component, can bring manufacturing to a halt or cause entire production runs to be scrapped as substandard.As a consequence, purchasing in a B2B context is likely to be more complex and will take longer. Also, the decision to purchase will not be taken by an individual but a team called a decision-making unit (DMU).

Answer 82

User - Machine breaks down; the operator reports it, thus initiating the process. May also be asked to help with specs for replacement. Influencer-User may influence; may also involve R&D staff, accountants, suppliers, sales reps, external consultants. Decider-May be a senior manager with either an active or a passive role in the whole process. May also be the buyer and/or influencer. Buyer-Handles the search for and negotiates with suppliers. Gatekeeper-Secretarial staff preventing influencers reaching the decision maker; R&D staff withholding information.

Answer 83

Non-profit marketing is an increasingly important aspect of marketing. Charities such as MIND and NSPCC use marketing techniques to generate income and provide services for their consumers and customers. Such activity uses traditional marketing techniques such as branding, retailing i.e., Oxfam, Services, such as NSPCC. They attempt to attract customers or donors who provide the funds for their consumers i.e., the beneficiaries of their services such as famine relief. There is an emphasis on public relations presenting the important work that the charity does such as provide food banks. Publicity can also be an invaluable tool for the non-profit organisation, not only because of its cost-effectiveness, but also because of its ability to reach a wide range of audiences. Publicity might encourage fund raising, help to educate people or generate clients or customers. Association with high-profile commercial sponsors can similarly help to spread the message, through publicity sponsored fund-raising events or joint or sponsored promotions. Marketing techniques are also used to change peoples’ opinions and behaviour, such as campaigns during the COVID-19 pandemic encouraging people to wash their hands and wear a facemask. Non-profit marketing has different aims and contexts, particularly encouraging people to pay for a service for someone else, but uses the same principles of service provision, retailing, branding and mass communication.

Answer 84

New technology for marketing has revealed hundreds of ways to understand businesses and consumers, and even more ways to reach them. However, with all this new information available, it becomes difficult to organise and analyse everything. Marketing research is now easier than ever. Virtually all businesses and clients have access to the internet. Tools like customer relationship management systems are also becoming more popular. There has been a significant rise in social media marketing as well as marketing on web pages. These marketing channels need to be monitored, analysed, and customised. Other businesses do this for every product and client.

Answer 85

* Banner ads * Sponsored online content * Blog posts * Online reviews * Mobile ad formats

Answer 86

Because of how powerful database technology has become, it is easier to market to an individual than a target group. Information is collected through things like surveys and polls. The most useful development for marketer’s is permission marketing. Permission marketing allows businesses to collect information about consumers for direct marketing. Many tools are available to personalise direct mails and track and target their marketing information. More accurate information, collected and organised in databases, is the key to good customer relations. Digital technologies in marketing allow consumers to find and research products from their homes. Direct marketing is now encouraging consumers to do just that. Businesses often include enticing offers to take advantage of while you're drinking your coffee.

Answer 87

Social media and the internet allowed for innovations in marketing and business. Location-independent companies rely on social media tools for advertising. Many entrepreneurs have started creating businesses that don't have physical stores or offices. Online businesses are the dream for various groups of people. Working for these businesses is advertised as "working from your phone on an exotic beach," but there is a lot more to it. Businesses need to engage with their clients, and one way they do that is through social media marketers and influencers. These people are paid to promote and advertise products on social media and direct website traffic to certain areas. Social media is used to monitor and respond to complaints and comments. Companies also use it to analyse the business's advertising reach and engagement.

Answer 88

The opportunity cost is the benefit from an option not chosen. For example, if you have enough money to buy a Samsung, you can’t buy an iPhone. The opportunity costs is the benefit you give up by not buying the iPhone. The principle for a marketer is simply recognising that you can’t buy a similar product twice. You only have one choice there for the opportunity cost, but this is the reason why a customer will compare different products to see which is better. It also goes to explain why some customers will not keep to budget but are willing to pay a little bit more for extra benefits but forgo other things. For example, giving up going to a restaurant each week to save up for an expensive holiday.

Answer 89

These are simply channels that a producer uses to sell directly to a customer without an intermediary such as a retailer. Sometime companies will use a third-party marketplace to sell through, such as eBay.