TAP preparation Flashcards
What is marketing? (according to chartered institute of marketing)
management process that identifies, anticipates and satisfies customer requirements profitably
What is marketed (6)?
products, services, places, people, ideas, attitudes and beliefs
What is the key idea of marketing oriented philosophy?
focus on satisfying customer’s needs and wants while meeting objectives
What is the key idea of societal oriented philosophy?
focus on satisfying customers need and wants while enhancing individual and societal well being
What is the key idea of sales oriented philosophy?
focus on aggressive sales techniques and believe high sales = high profit
What is the key idea of production oriented philosophy?
focus on efficiency of internal operations
What is transactional marketing?
focus on sale then move on, no attempt to build relationship with customers
What is included in the 7Ps?
product, price, promotion, place, people, process, physical evidence
What are the characteristics that companies with successful marketing shares?(5)
profitable, offensive, integrated, strategic (future oriented), effective
What does SOSTAC stands for?
situation, objective, strategy, tactics, actions, control
What is included in the 7Ss (internal environment) ?
shared values, staff, structure, style, skills, strategy, systems
What are the 4 market positions?
market leader (largest market share) , market challenger, market follower, niche player
What are the advantages of environmental scanning?(6)
enables opportunities to be capitalised upon, provide objective information, increase sensitivity to changing needs, provide intellectual simulation for strategists, improves public image, provide a continuing broad based education for executives
What is environmental scanning?
process of gathering information about events and their relationship within an organisation internal or external environment
What is the basic purpose of environmental scanning?
help management determine the future direction of organisation
What are the tools (or elements) that can be combined to make an organisation marketing communications strategy?(5)
ad, sales promo, personal selling, direct marketing, public relations
What is the difference between media and tools?
media: channel which you deliver your message
tools: thing you use to deliver your message
What is integrated marketing communication (IMC) ?
process of ensuring that all elements of the promotion mix are complementary to avoid mixed message and strengthened the brand
What does DRIP stands for?
Differentiate your product / brand
Remind / reassure your target audience concerning your product or brand
Inform your target audience about your product or brand
Persuade your target audience to act in the way you would like them to
What are the communication strategies?
push, pull, profile
What is a push comm strategy?
aims to keep products in stock even before the customers order them
What is a pull comm strategy?
Focuses on increasing the number of consumers who want to buy a particular product. It often involves convincing a consumer to actively seek a product in order to get retailers to stock it. Brands that use pull marketing will reach out to consumers through a direct marketing campaign.
What is a profile comm strategy?
Intended to fulfill the corporate promotional goals of an organization as to how it wishes to be seen in the eyes of the public. Focuses on satisfying the needs of the stakeholder and sustaining the dialogue with them by closely keeping in touch with them.
What does ATR means?
awareness, trail, reinforcement AKA weak theory, more commonly applied to new products
What is segmentation?
dividing up the market (by age, gender, income, etc)
What is targeting?
selecting the group(s) most likely to want your brand or product (the ‘target audience)
What is positioning?
making your brand as attractive as possible in the eyes of target audience
What are the pros of advertising? (5)
mass coverage, buyer controls content and timing, fulfils a stated obj, can be measured, have creative opportunities
What are the cons of advertising? (4)
expensive, high wastage, impersonal, subject to noise (msg can be lost)
What is frequency in L3 communication?
avg no of times that a member of a target audience will have been exposed to a promotional msg during a specified time period (usually a campaign)
What is reach?
% of target audience exposed to a promotional msg at least once during a specified time period
What does AIDA stands for?
awareness, interest, desire, action ; cust. moving thru the steps or stages when they make purchase decisions
What are the pros of sales promotion (4)?
provide a quick uplift in sales, Gain better store presence, forge links with other brands, generate good quality customer data
What are the cons of sales promotion (3)?
if overused, consumers only purchased during promotion, can cause fulfilment problems, promotion led customers - low brand loyalty
What are the pros of public relations (4)?
good coverage, cost effective, significant creditability, good for supporting new products
What is public relations and what does it includes?
planned and sustained effort to establish and maintain goodwill and mutual understanding between an org and its public (including, press relation, media relation, corporate sponsorship, event)
What are the cons of public relations (3)?
hard to control, not long term, evaluation can be hard and expensive
What are the cons of direct mktg (4)?
negative perceptions, can be intrusive, data must be processed, some legal restrictions
What are the pros of direct mktg (3)?
personalised and customisable (precise targeting), interactive, measurable
What are the pros of personal selling (5)?
two way comm, participation in decision making process, immediate feedback, flexible (allows demonstration), relationship building
What are the cons of personal selling (3)?
high cost per contact, reach and frequency low, consistency of comm difficult
What is the purpose of budgeting? (4)
planning + benefits gained from working thru budgetary sales tgt, coordination, motivation, control
What is a relative cost?
how much it cost to touch everybody you reach with your ad campaign
What are the 2 budget setting approaches?
top down methods, bottom up methods
What are the 4 factors included in top down methods?
% of sales and profit, competitive parity, affordable method, consideration of share of voice
What are the 4 factors included in bottom up methods?
obj and task, planning and control, consideration of cost-volume profit, consideration of share of voice
What are the 5 criteria for segmentation?
measurable, homogenous, heterogenous, substantial, accessible
What are the 4 basic ways of segmenting?
demographic, psychographic, socioeconomic, geographic
What are the 6 segmentation by bhv?
purchase occasion, consumption usage, frequency of purchase, product or brand loyalty, media usage, tech usage
What is a perceptual map?
useful way of comparing how consumers ‘see’ your product or brand in comparison to others
What is targeting?
selecting the groups of people most likely to buy your products
What is positioning?
using mktg mix to make your ‘offer’ as attractive as possible to the group of people most likely to buy your products
How to reposition?
use perceptual map to work out if you are in ‘best’ position ; changing your position = changing the way cust see you
When will reposition needed?
if brand goes into decline, popular taste change
What are the 5 stages in consumer decision making?
problem recognition, info search, evaluation of alternative, product choice, outcome
What could start problem recognition?
ad campaign introduce new awareness / new solutions / famous people talking or using it
Info search may be?(4)
internal, external, active, passive
What is passive info search?
start to see things more around you which build your desire to get the thing you think you want
What is active info search?
self explanatory, go out and hunt info
What is internal info search?
search of memory
When evaluating alternative, criteria is likely to be influenced by? (3)
risks (cost, performance, function, physical, social, psychological), personal requirement, all mktg comm
What could product choice be influenced by? (4)
personal selling, point of purchase display, discounts, the people you are with
What are the 3 likely outcomes? (post purchase evaluation)
disappointment, satisfaction, delight
What is the level of involvement affected by? (4)
self image, how much risk you think there is in the product, how you think the product will be perceived (social factors), level of hedonism
What are the 3 types of problem solving?
routine problem solving (low risk)
limited problem solving (greater risk)
extended problem solving (high risk)
What 5 factors can influence consumer level of perceived risk?
monetary, functional, physical, social, psychological
Why is segmentation important?(4)
help understand customer requirements, identifies opportunities for new product development, specific targeting enables an appropriate mktg mix to b develop for each segment, segmentation provide better efficiency and therefore profits
What are the steps of new product development process? (8)
idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, commercialisation
Fast moving consumer goods are generally? (6)
bought frequently
consumed on one occasion
low involvement
available from many purchase
locations (intensive distribution)
comparatively low price
Consumer durables are generally? (5)
bought infrequently
Higher involvement
Higher pricing
Brand values more significant
Traditionally available from fewer purchase location
What could be added to product line? (2)
line stretching: adding higher /power priced product than the existing line
line filling: adding more items within the present price range
What are the difference between features and benefits?
Features: factual statement about attributes of a product
Benefits: what product does for u (its consumer)
What does the product onion do?
regularly check what cust think bout your product and ur supporting service
Why is having a strong brand important?(8)
salable assets contribute to corporate value
generate comp adv
high (er)consumer awareness
strong brand loyalty
easier new product introduction (sony playstation)
less susceptible to price comp (pp/more willing to pay higher price for brand they know
easier distribution
licensing opportunities
Brands are: (3)
represented by all employees, shld be regularly audited, intangible (but valuable) assets
What are the 5 factors mentioned for packaging?
hold and protect product
attract cust. attention
desc the prod
Help make a sale
CORE way a carrying a brand/brand msg
According to Boston’s consulting group growth (share matrix), what does stars stands for?
products which have a high market share in a growing market
According to Boston’s consulting group growth (share matrix), what does question mark stands for?
products in a growing market, which do not have a high market share yet
According to Boston’s consulting group growth (share matrix), what does cash cow stands for?
products with high market share in a mature market
According to Boston’s consulting group growth (share matrix), what does dogs stands for?
products with low market share in a static or declining market
What are some approaches when creating a message?
rational appeal, emotional, moral
What are the 4 internal factors that affect pricing process?
market positioning
Brand image
Costs
other (survival, profit requirement, market share requirement, product quality leadership)
What are the 6 steps of pricing policy process?
Select pricing obj
Determine demand
Estimate cost
Analyse competitors costs, prices, offers
Select pricing method, strategy& framework
Select final price
What are the 6 external factors that affect pricing process?
Economic conditions affect production costs and perceptions of value
Reseller reaction to prices
Gov may restrict/influence pricing options
Social conditions (eg. social conscience)
Type of market (monopoly, oligopoly, etc)
Price elasticity of demand
What is VC?
variable cost, cost that vary with production level
What is the 2 common pricing error?
- reducing P too quickly to drive sales
- pricing based on cost (as opposed to cust value)
What’s the 5 steps to find the right price?
price and availability of substitutes, characteristics relative to competitors, income, price / strength of demand for related product, Market environment
What is competitive based pricing?
price is heavily influenced by competitors, may price at lower / higher / same level
What is cost based pricing?
- FC & VC ➗ output gives each P to which profit can be added
- ignore market conditions and comp (ez to end up with P above market P)
- fails to consider cust perceived value, therefore opp for higher P may be missed if perceived value high
What is value based pricing?(4)
- uses buyer’s perception of value
- measuring perceived value can be difficult
- consumer attitude toward P and quality have shifted during the last decade
- Value pricing at a retail lvl
What are the 4 basic pricing strategies?
price skimming, penetration pricing, economy pricing, premium pricing
What is price skimming?
- Producer sets high price for new/uniquely differentiated product to maximise revenue b4 substitute appear
- Price is subsequently lower to capture low end buyers and thwart copycat competitors
What is penetration pricing?
- Low P to attract new cust (often away from competitors)
- Assumes: cust will be attracted by price (both for awareness and purchase)
What is premium pricing?
high P to donate status throughout product life where there’s unique brand value
What is economy pricing?
- No frills low P
- Mktg and promotion kept to min
What does psychological pricing stimulate?
emotional rather than rational responses from consumer
What is cost plus pricing?
Combine the VC associated with the goods with a portion of FC of operating the business and add the required profit
What is loss leader pricing?
set lower P than competitors to achieve non-profit related obj
What is product line pricing?
pricing reflects the benefits of parts of a range of products
What is optional product pricing?
attempts to increase the amount cust. spend once they start to buy
What is product bundle pricing?
combine several product in same package (To clear stocks)
What is value pricing?
When external factors affect companies (eg. recession), ↑ comp (value meal at mcd )
What actions can be taken when competitor cut price? (4)
reduce price, raise perceived quality, improve quality and increase price, launch low price ‘fighting brand’
What does pricing on services depends on?(3)
seasonality, perishability, availability
What does distribution channel means?
Set of independent org involved in process of making a product/service available for use / consumption by consumer / business user
Why is marketing channel decision the most important decision that management face?
directly affect every other mktg decisions (other 7Ps)
What does strong and weak distributive system each leads to?
strong: comp adv
weak: disastrous
What are the 5 factors to be aware of in multichannel distribution?
- simultaneous use of diff channel
- types to reach target market
- vv careful bout messaging
- Vv close eye on pricing, low cost
- On top, 越下面越贵
What is intensive distribution?
available everywhere
What is selective distribution?
available at selected outlet
What is exclusive distribution?
available at few exclusive outlet
What are the 6 main takeaways from channel design?
Likely to be multi faceted
Working with partner companies who: also work with ur competitors, hav differences in goal, may want diff product line, may feel threatened by other distribution channel, may not be up for the job
How is fast moving consumer goods being distributed?
- analyse cust service needs
- select channel obj and constraints
- identity major alter
- select distribution strategy (intensive/Selective /exclusive)
Why is marketing communications important? (4)
motivating intermediaries
managing intermediaries
dealing with conflict
building trust between channel members
What is disintermedian?
Eliminating a layer of intermediaries from mktg channel/displacement of traditional resellers by new types of intermediaries (eg, internet)
What are the advantages of franchise? (5)
Buying into a proven system
Limited capital enquired
Benefit of centralised purchasing power
Instant expertise available
Shared mktg cost -economies of scale
What does retailing includes?
all activities involved in selling goods services to their final consumer for their personal, non-business use
What are the 3 retailer service levels?
Self service, limited service, full service
How does the environment of self service stores looks like?
store envir designed to reflect low Price
What is usually included when considering transport? (5)
a balance of:
speed
dependability
capability
availability
cost
What is a supply chain?
a network of businesses and org thru which goods pass on the way to the final destination
What is the difference between supply chain upstream and downstream?
Upstream: firm supply raw materials, components, parts
downstream: firms r mktg channel members (eg· retailers and wholesalers)
What are the 3 factors included in the generic strategies?
Cost leadership: competing thru production at low cost
Differentiation: company decide to differentiate (eg, -brand/service offering
Focus: focus on special segment as opposed to mass market (variants of focus strategy)
What is the difference between cost focus and differentiation focus?
Cost focus: firm seeks cost adv in its target segment
Differentiation focus: firm seeks differentiation in its target segment
According to Ansoff’s Matrix, what are the 4 opportunities for growth from?
market penetration: increases sales volume in current market is by more aggressive mktg
mktg development: cld be a new segment in an existing geo/new geo
product development: sell completely new/improved product into existing market
diversification: sell new product in new market (or integrate your ops in new way)
What is a service?
any activities or benefit offered by one party to another which is essentially intangible and doesn’t result in ownership of anything
Service encounter may be?
High contact: entire service is produced and consumed during course of encounter
Low contact: just one element of the total production consumption process
What does high level of customer service requires?
Strategy: Corporate strategy & comp positioning comm thru org, clear demonstration or company commitment;
Staff: Recognition of imp, recruitment, training and empowerment
Systems: Measurement of perf, feedback, support for delivery
What are the 5 characteristics of services?
intangibility, perishability, heterogeneity, inseparability, lack of ownership
What are the 6 ways of managing service supply and demand?
Differential pricing (way in delivering Service)
Non peak demand
Complementary services
part time staff
peaktime efficiency
Shared services
What are the 3 ways of managing differentiation?
Offer
delivery
Image
How to improve and manage service quality? (3)
- identify target market expectation
- identity the key criteria cust/consumer used to judge:
- quality of their experience
- Outcome of a service encounter - identify how cust rate the firm’s service in relation to these criteria against what they expected
What are the 5 service quality?
reliability, assurance, tangible, empathy, responsiveness
What is a tangible service?
appearance of physical facilities, equipment, personnel & comm materials
How to achieve differentiation in service quality? (2)
- don’t have to be ‘best’ service
- do have to ensure how highly ur cust. value what you offer and ensure performance matches value cust expect
What does the important part of service involves?
Using mktg techniques to train and effectively motivate employees (particularly cust. contact staff)
What are the 4 points that define corporate strategy?
Allocation of resources across the whole org
Portfolio of activities for the rog
Specifying the org’s mission
Defining org’s goals
What are the 3 points that define marketing strategy?
Competing in a product market
Selecting markets and segments
Determining the mktg mix
What is strategy? (2)
Skill of employing forces to overcome opposition and to create a unified system of global governance
Pattern or plan that integrates an org’s major goals, policies and action sequences into a cohesive whole
Organisationally, what is strategy?
Way you are going to do smtg, What you hope to do is expressed in your obj
What does SMART stands for?
Specific
Measurable
Achievable
Realistic
Timebound
What is strategy subject to?
Historical org influences and organisation’s culture
What does paradigm stands for?
assumptions held by most employees and taken for granted in an org (likely to be: basic but fundamental assumptions
What does cultural web shows? (6)
Stories, symbols, Power structure, Structure, Control systems, Rituals and routines
What is SBU?
strategic business unit, supplies goods or services for a distinct area of activity (so a small business has just one SBU, large may hv multiples), may be called as ‘divisions’ or ‘profit centres’
What are the 4 key drivers that drive cost leadership?
Lower input costs
Economies of scale
Experience
product/process design
What does differentiation strategies involve?
Uniqueness along some dimension that is sufficiently valued by cust to allow a price premium
What are the 3 key factors that successful focus strategies need to depend on at least one of them?
Distinct segment needs
Distinct segment value chains
Viable segment economics
What are the 2 ways of combining strategies?
Create separate strategic business units each pursuing diff generic strategies with different cost structures
Tech or managerial innovations might occur where both cost efficiency and quality are improved
What are the 4 factors that define hyper competition?
Desc markets with continuous change (eg, popular music or consumer electronics)
May be impossible to plan for long term sustainable comp adv
Planning may actually destroy comp adv by slowing down responses
Successful hyper comp demands speed and initiative rather than defensiveness
What are the 4 key principles of hyper competition?
Cannibalise bases of success
Series of small moves rather than big moves
Unpredictability
Mislead the competition
What are the 4 lessons learned from game theory?
Ensure clarity of msg by repetition
Signalling
Deterrence (or ‘be a threat’ )
Commitment
What happens in Phase 3 of strategic drift?
flux, organisation doesn’t know what they are doing
What are the 4 most frequently used scale in quantitative research?
Likert scale
Semantic differential scale
Bhv intention scale
Rank order scale
How can quantitative research be carried out?
Observation
Experimentation
Surveys
Questionnaires
Why are surveys pre tested?
ensure validity and reliability
What are the 4 advantages of secondary data?
Can be obtained cheaply and quickly
May prov a solution to the research prob (eliminate need for primary research)
May help clarify and or refine the obj of primary study
May prov ideas for the methods to be used and difficulties that are likely to occur in the full scale study
What are the 4 disadvantages of secondary data?
Info may be categorised in units that r diff from those that the researcher seeks
Data may not be accurate
Data may ben collected in a biassed fashion to support a particular pov
Data may be outdated or refer to the wrong geography
What is quantitative research?
Descriptive , Helps people to understand the effects of smtg
What is qualitative research?
About feelings and act of consumption, View consumer bhv as a subset of human bhv
How may qualitative research be conducted?
In depth interviews
Focus groups
What are the 2 reasons for generating a research?
advance knowledge, make a point
What are the 6 steps of a research process?
Define the research obj
Collect and evaluate secondary data
Design ur research
Collect primary data
analyse data
Prepare report and circulate findings
What is sampling?
Sample is a subset of the population which rep the whole population
What is non probability sampling?
Specific elements from the population have been pre determined in a non random fashion on the basis of the researcher’s judgement
How to word questionnaires? (5)
Avoid leading ques
Avoid compound ques
Ensure ques r clear
Use words that cust routinely use
Participants must be able & willing to ans the ques
What does behaviour intention scale measures?
The likelihood that consumers will act in a certain way in the future
What is projective techniques?
Procedures designed to identify customer’s subconscious feelings and motivation
