Sem 1 pt 2

Question 1

What is a marketing decision in terms of the law?

Answer 1

The Fair Trading Act (1986) - ensures consumer rights.

Question 2

What is a marketing decision in terms of ethics?

Answer 2

Advertising Standards Code
1) Social responsibility
2) Truthful presentation

Question 3

Define marketing ethics.

Answer 3

A framework for good practise in marketing, regardless of the product or market sector.

Question 4

What is the framework for understanding ethical behaviour?

Answer 4

Societal culture and norms, business culture and industry practise, corporate culture and expectations -> personal, moral, philosophical and ethical behaviour.

Question 5

Describe some of the criticisms of marketing.

Answer 5

• Increasing obesity (marketing of fast food)
• Marketing to children
• Environmental damage (greenhouse gases)
• Pushes up prices
• Deceptive practises (i.e. artificially increasing price to then ‘decrease’ it for sales)
• High-pressure selling (eg. Cold calls targeting the elderly)
• Shoddy or unsafe products
• Planned obsolescence (eg. iPhone upgrades)
• Poor service to disadvantaged consumers

Question 6

Define ethical marketing.

Answer 6

An approach to marketing in which companies set high ethical standards and communicate those positively.

Question 7

What are the different levels of responsibility within a company?

Answer 7

Profit responsibility (owners/stockholders) -> Stakeholder responsibility (suppliers/distributors, employees, consumers) -> Societal responsibility (public interest groups, ecological environment, general public).

Question 8

What are the social responsibilities of organisations?

Answer 8

• Triple bottom line (people, planet, profit)
• Sustainable marketing
• Green marketing
• Cause marketing

Question 9

Define the code of ethics.

Answer 9

A formal statement of rules of conduct.

Question 10

Define corporate culture.

Answer 10

Values, ideas and attitudes shared among an organisation.

Question 11

Define services.

Answer 11

Intangible activities or benefits that an organisation provides to meet a certain customer need in exchange for money or some other value eg. a doctor.

Question 12

What are the characteristics of services?

Answer 12

The four I’s.
1) Intangibility.
2) Inconsistency (quality varies as service provider varies with respect to attitudes).
3) Inseparability (production and consumption are simultaneous eg. haircut).
4) Inventory (cannot be stored for use in the future - must have idle production capacity eg. empty seats on an airplane once its taken off).

Question 13

Describe the seven P’s of services marketing.

Answer 13

1) Product
Core product eg. Apple ipad + supplementary services eg. Apple TV+ + supporting services eg. Apple support.
2) Price
3) Place
Distribution.
4) Promotion
Internal marketing eg. selling Apple TV+ to Apple TV members.
5) Physical environment
Such as kids playgrounds in McDonalds.
6) People - as people define a service.
Think, Air NZ flight attendants.
7) Process

Question 14

What is personal selling?

Answer 14

A face-to-face selling technique by which a salesperson uses his or her interpersonal skills to persuade a customer in buying a good or service. Can be on the individual or organisational level.

Question 15

What is the process of personal selling?

Answer 15

1. Prospecting (finding new customers)
2. Preapproach (researching the customer in order to make a pitch)
3. Approach
4. Presentation
5. Close
6. Follow-up

Question 16

Define sports marketing.

Answer 16

The specific application of marketing principles and processes to sport products and to the marketing of non-sports products through association with sport.

Question 17

Where does sports marketing happen?

Answer 17

• of sport
• in sport
• with sport

Question 18

Describe the consumer-supplier relationship in the sports industry.

Answer 18

Consumers (spectators, participants, corporate businesses).

Products (events, sporting goods, coaching).

Producers and intermediaries (ownership, sanctioning bodies, sponsors, media, agents, equipment manufacturers).

Question 19

What feeds into sport participants decision making process?

Answer 19

Internal factors (i.e. individual or team, social or competitive).

External factors (the things you’re interested in due to culture, social class, family and reference groups).

Situation factors (i.e. the weather, equipment availability, is it easily accessible?).

Question 20

What are the types of sport consumers?

Answer 20

Active (participants) and passive (spectators).

Question 21

What are the main differences of digital marketing compared to non-digital marketing?

Answer 21

• It provides a targeted two-way communication between a business and consumers.
• It has the ability to directly measure what is and isn’t working (i.e. adopts a more scientific approach).
• It has a larger scale, and lower cost of reaching a global audience.

Question 22

Describe the types of digital test marketing.

Answer 22

• A/B testing of display ads and web pages.
• Multivariate testing of display ads.

Question 23

What are types of promotion in digital marketing?

Answer 23

• PPC (pay per click).
• SEO: Search Engine Optimisation.
• Social media and influencer marketing.
• Email marketing.
• Content marketing (i.e. without the use of ads).

Question 24

How is success measured in digital marketing?

Answer 24

Pageviews
Visit duration
Return visits
Bounce rate
Unique visitors
Social shares
Leads and conversions
Recurring revenue

Question 25

Define social media marketing.

Answer 25

The use of social media websites and social networks to market a company’s products and services. It provides companies with a way to reach new customers, engage with existing customers and promote its desired culture, mission or tone.

Question 26

Why is social media used as a form of marketing?

Answer 26

• It provides a large consumer base.
• It promotes value, personality and brand awareness.
• It is cost efficient.
• It is immediate and versatile (i.e. video, static image, comment etc).
• It is two-way (customers can interact through commenting which in turn helps to build brand relationship).
• It provides helpful data/analytics.
• Can hyper-target advertising.
• Can increase online traffic (i.e. putting link to store in bio).

Question 27

What are the advantages and disadvantages of social media?

Answer 27

Advantages:
- Large reach.
- Direct connection.
- Cost effective.
- Builds brand awareness and loyalty.
- Increased sales.
- Can track performance.
- Can create viral content.
- Social listening.

Disadvantages:
- Negative feedback (can’t prevent negative interactions with consumers).
- Open to embarrassment/backlash.
- Time consuming (especially with changes in trends).
- Results are not immediate.
- Not all views will convert to sales (conversion rate).
- Need to be constantly creative with your content.

Question 28

Give the types of social media marketing.

Answer 28

1) Influencer marketing.
(nano -> micro -> mid -> macro -> mega)
2) User generated content (UGC) eg. GoPro.
3) Content marketing.
4) Mobile marketing eg. SMS messages.
5) Targeted marketing (but this creates questions around user privacy and ethics).