Week 5

Question 1

Marketing, importance and challenges for entrepreneurs

Answer 1

Marketing: a function and a set of process for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders.

Importance: brand awareness, feedback and adaptation, customer base and resources

Challenges: limited resources, distribution networks, brand awareness, customer loyalty, market information, personal bias & beliefs, poorly established relations with multiple audiences

Question 2

Market information

Answer 2

Methods : observation, interviews, questionnaires and database

Data:
- primary:data collected from a particular problem, question or specific purpose in mind (e.g experiments, interview, survey)

• secondary: data published from sources (e.g. google, analytics, census, industry report)

Question 3

Marketing strategies

Answer 3

Should align with resources & capabilities.

Strategic framework:
1) segmentation
2) targeting
3) positioning

Question 4

Segmentation & Targeting

Answer 4

Segmentation:
- Demographic: age, education, gender, income
- Psychographic: (lifestyle) active, individualistic, risk taking & time pressure.
- behaviour: brand loyalty and willingness to adapt new products
*other segments exist as well

Targeting:
Compares the defines segment, and decision is made for which to target should reflect capabilities & long-term goals

Question 5

Positioning

Answer 5

Positions map and where the company fits relative to its competitors

Question 6

Product

Answer 6

Classification of product.

Consumers value = Consumer benefit - Consumer costs

Customer value proposition

Product life cycle: introduction, growth, maturity and decline

Question 7

Pricing strategy

Answer 7

Price skimming
Penetration pricing
Cost-plus
Market value

Question 8

Place

Answer 8

3 types of distribution:
- intensive
- selective
- exclusive

Challenges of distribution:
- no established history
- selecting and convincing distributors
- limited resources

Question 9

Promotion

Answer 9

Integrated marketing communication: process of coordinating and integrating multiple communication methods to find the most effective way to communicate with customers and influence their actions.

Push - taking the product to customer
Pull - getting the customers to come to you

Guerrilla marketing: surprising, unconventional and memorable.

Advertising: largest breath of tools (e.g. mobile, website, buses anywhere) 1) reach 2) frequency