PAPER 3- Bullet Point 3

Question 1

Define promotion

Answer 1

The use of methods to communicate with existing and potential customers to buy your product

Question 2

Types of promotion

Answer 2

• advertising- tv, radio
• personal selling- sales people, telemarketing
• publicity- speeches, PR stunts
• sales promotion- vouchers, deals, BOGOF
• sponsorship- business sponsor and Individual or event

Question 3

define above the line promotion

examples

Answer 3

focus is on mass media promotion to reach a large audience

e.g. tv advertising, newspaper, billboard

Question 4

define through the line

examples

Answer 4

use an integrated approach of both above and below the line methods to reach their target customer base

e.g. social media, targeted video ads on mass videos

Question 5

define below the line

examples

Answer 5

focus on directed marketing to reach a small, targeted audience.

e.g. 
word of mouth
direct selling
sponsorship
celebrity endorsement
sales promotion
personal selling
public relations stunt
product placement

Question 6

define marketing

Answer 6

management process of identifying, understanding and meeting customer needs and wants: providing products or services to meet those and creating profitability

• through promotion and selling

Question 7

Define marketing mix

Answer 7

combination of factors (4 p’s) to help the business take into account the customers needs when selling a product

Question 8

define marketing strategy

Answer 8

• a plan of medium - long term actions to achieve the company’s marketing goals

Question 9

describe the marketing strategy appropriate for mass markets

Answer 9

• heavy promotion (mainstream media)
• product should be differentiated but not niche
• lower costs as mass produced (EoS)

Question 10

describe the marketing strategy appropriate for niche markets

Answer 10

• direct advertisement at target market segment (e.g. Ferrari advertise in sports car mag)
• develop relationship with consumer so they build brand loyalty
• focus the marketing on reinforcing the distinctive characteristics of each product

Question 11

describe the marketing strategy appropriate for business to business markets

Answer 11

•when a businesses main customers is another business or org.

• business don’t buy with emotion they just want most reliable service for lowest price
• advertising must be informative and clear
• focus on understanding and meeting the businesses needs (most reliable but cheapest service)

Question 12

describe the marketing strategy appropriate for business to consumer markets

Answer 12

• emotional connection built with customer by advertising emotionally
• must maintain good relations with customers (build brand loyalty)
• high need to research customers and adjust every aspect of product or service to fit their needs (as their loyalty builds is essential)

Question 13

impact of Ronaldo’s actions at Euro 2020, where he snubbed Coca Cola for water instead

Answer 13

market value dropped by $4 billion

Question 14

how much do red bull spend on sporting sponsors

Answer 14

161.87 million in 2021

Question 15

define emotional branding

name the 3 powerful tools in emotional branding

Answer 15

• process of forming a relationship between a consumer and a product or brand by provoking emotions in them
• e.g. Nike using adverts with famous sportsmen to show how products can enhance happiness and self esteem
  e. g. ethos (credibility), pathos (imagination), logos (logic)

Question 16

benefits of emotional branding

Answer 16

• differentiation from compeition
• generate brand loyalty –> greater retention and consumer lifetime value
• positive brand recognition and human connection

Question 17

define global marketing

Answer 17

the worldwide marketing strategy that aims to find a fit between between worldwide or localised focuses, in order to reach global objectives

Question 18

define a global marketing strategy

Answer 18

applying the same marketing strategy to target all markets on a global scale

e.g. Coca Cola, Tiffany

Question 19

define global localisation (glocalisation)

Answer 19

adapting your global marketing strategy to meet the requirements of the tastes and cultures in local geographic markets

Question 20

describe the 3 different marketing approaches, in the EPG model

Answer 20

• ethnocentric - (domestic)

• – promotion of product of based on the beliefs of the home nation
• decision making and production, centralised in domestic

• geocentric - (mixed)

• promotion of products is focused on overall world’s point of view
• marketing focus on the getting the greatest possible benefit (where it’s marketed, or how, is flexible based on what would bring about most success)
• aim to build global brand
• –> try to manage global matters ethnocentrically and local needs polycentrically

• polycentric - (local)

• promotion of product based on beliefs of host nation where business is operating/ selling
• marketing based on local culture, religion and values of host nation are deemed important
• decisions making de-centralised, key personnel are recruited locally

Question 21

pros and cons of a global marketing strategy

Answer 21

PROS:
• marketing and distribution economies of scale
• spread risk as may not work in one country but will in another
• conistent message, builds brand identity and power in market

CONS:
• marketing message may be translated wrong or misinterpreted
• nature of market may not suit this strategy (e.g. food tastes are not same all over world)
• product may not align with legal requirements

Question 22

pros and cons of a glocalisation marketing strategy

Answer 22

PROS:
• tailor product to customer’s needs, optimise market share
• cultural respect from customers

CONS:
• more layers of communication
• may be hard to enter new markets and overcome strong local brand loyalty
• R&D and market research is spenny

Question 23

pros and cons of ethnocentric approach to marketing

Answer 23

pros:
• create more highly perceived brand image
• standardisation creates significant EoS
• low market research cost

cons
• may lose out on sales, as not market orientated
• marketing may not be understood or be misinterpeted

Question 24

pros and cons of geocentric appeal approach to marketing

Answer 24

pros
• able to be agile in decision making
• better appeal to locals or nations behind athletes

cons
• may not be clear what the best strategy for different markets is best (ethnocentric/ polycentric)

Question 25

pros and cons for polycentric approach to marketing

Answer 25

pros
• more sales and brand loyalty as product more suited
• marketing will be culturally appropriate and get clear message across

cons
• reduction In EoS
• increase in market research and product development costs
• communication may be difficult across the globe

Question 26

How does the marketing mix apply to global markets

Answer 26

PRICE
- lower prices in less economically developed countries

PLACE

• in technologically advanced economies, many methods are available, in less advanced distribution is more traditional (e.g. grocery bought from independent retailers)
• need to continually provide new distribution methods as part of marketing mix

PROMOTION

• consider sophistication technology and prefences
  e. g. in Germany, TV channels are preferred to social media for promoting, unlikely to use social media in Congo, likely to use social media in China as e_commerce is rapidly growing

PRODUCT
- geocentric, polycentric or ethnocentric