marketing management 2 mark qa

8/13/2019 Marketing Management 2 Mark QA

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Price skimmingis apricing strategyin which amarketersets a relatively highpricefor aproductorserviceat

first, then lowers the price over time.

Penetration pricingis apricing strategywhere the price of a product is initially set at a price lower than the

eventual market price, to attract new customers.

Old question paperMarketingis the process of communicating the value of a product or service to customers,for selling that productor service.

Conditions to be satisfied for exchange to happen(1) There are at least 2 parties,

(2) each party has something that might be of value to the other party,

(3) each party is capable of communication and delivery,

(4) each party is free to accept or reject the exchange, and

(5) each party believes it is appropriate or desirable to deal with the other party.

The value, or satisfaction, that people derive from the goods and services they consume and the activities they

pursue is calledutility

How production and marketing activities create utilities

Marketing creates utility by being a part of a business system that provides the consumer with what they need.Although marketing inputs may guide the creation of form utility, production activities create it.

What are the elements of marketing mix or 5 P's of marketing

ProductThe products or services offered to your customer:

PriceHow you price your product or service so that your price remains competitive but allows you to make a

good profit.

Place (Also referred to as Distribution)Where your business sells its products or services and how it gets

those products or services to your customers.

4th pPromotionThe methods used to communicate the features and benefits of your products or services to

your target customers.

5th pPeople

When referred to as an element in the marketing mix, this 5th P refers to how your level of service and the

expertise and skills of the people who work for you can be used to set you apart from your competitors.

Strategic marketing concept

Key concept :Product scope: goods, services, experiences, events, persons, places, properties, organizations,

information and ideas.

Strategic Marketing

Strategic Marketing is the management process of instilling the marketing concept, into the heartof an organisation.

Marketing Concept

"Marketing is the management process responsible for identifying, anticipating, and satisfyingcustomers' requirements, profitably."Chartered Institute of Marketing.

Differentiate between research design and experimental design

experimental design

it is the design of any information-gathering exercises where variation is present, whether under the fullcontrol of the experimenter or not.

Human subject vs. object experimentation
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Other DOE Constraints

Time

MoneyVs

Research design

it is a systematic plan to study a scientific problem

Qualitative vs. quantitative

Understanding the relationship between objectives (research question) and variables is critical

Planning in advance is a must

To include how data will be analyzed

Reasons for branding

Recognition:Differentiation:Authority:

Branding helps you look bigger than you are.

Branding increases the quantity of leads that respond to DR offers.

Branding boosts performance across all channels.

Always On branding keeps your brand top of mind during the decision -making process

Influence buying committees with strong branding

what are the special characteristics of services

o Perishability

o Intangibility

o Variability

o Inseparably

o Non-ownership

POP

Point-of-purchase marketing, also known as POP marketing or marketing at retail, uses in-storedisplays and other last minute marketing ploys to influence the customer to choose a specific

brand or to make an impulse buy.

augmented product

A commodity that has both the primary physical attributes and the non-physical attributes that are

added to increase the product's value.

major causes for new product failure

o Marketers assess the marketing climate inadequately.

o The wrong group was targeted.

o A weak positioning strategy was used.

o A less-than-optimal "configuration" of attributes and benefits was selected.

o A questionable pricing strategy was implemented.

o The ad campaign generated an insufficient level of awareness.

o Cannibalization depressed corporate profits.

o Over-optimism about the marketing plan led to a unrealistic forecast.

o Poor implementation of the marketing plan in the real world.

o The new product was pronounced dead and buried too soon.


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Beta Testing

Produce a physical prototype or mock-up

Test the product (and itspackaging)in typical usage situations

Produce an initial run of the product and sell it in a test market area to determine customer acceptance

marketing mixrefers to the set of actions, or tactics, that a company uses to promote its brand or product inthe market.

Micro environment factors are factors close to a business that have a direct impact on its

business operations and success. Before deciding corporate strategy businesses should carry

out a full analysis of their micro environment.

Market segmentationis amarketing strategythat involves dividing a broadtarget marketinto subsetsofconsumerswho have common needs and priorities and then designing and implementing strategies to targetthem.

limitation of personal selling

promotional method is misunderstoodHigh cost-per-action (CPA)Training Costs

Advantages of Personal Selling

Convey More Information -You can express added information with personal selling when compared to any

other types of promotion,

More Impact - Personal selling has a superior impact on consumers than direct mail or other forms of advertising.

Organization buyingis the decision-making process by which formal organizations establish the need for

purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.

different stages of buying decision process

1. Problem/Need recognition

2. Information search

3. Evaluation of alternatives

4. Purchase decision

5. Post-purchase behavior

6. Purchase

Advantages of Secondary data

1. It is economical. It saves efforts and expenses.

2. It is time saving.

3. It helps to make primary data collection more specific since with the help of secondary data, we are able

to make out what are the gaps and deficiencies and what additional information needs to be collected.

4. It helps to improve the understanding of the problem.

5. It provides a basis for comparison for the data that is collected by the researcher.

Disadvantages of Secondary Data

1. Secondary data is something that seldom fits in the framework of the marketing research factors.

Reasons for its non-fitting are:-
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a. Unit of secondary data collection-Suppose you want information on disposable income, but the

data is available on gross income. The information may not be same as we require.

b. Class Boundaries may be different when units are same.

How sample size is determined

Choosing the right sample size is often a balance between surveying enough people to ensure your results are

robust enough to make strategic business decisions, without blowing the budget.

So Choosing the number of respondents you need depends on the level of accuracy you require in

your data.

whenever possible, use random sampling procedures with controls in place to insure our targetmarket is properly represented.

web based marketing: Internet marketing, or online marketing, refers to advertising and marketing efforts

that use theWeb andemail to drive direct sales viaelectronic commerce,in addition to sales leads from Web

sitesor emails.

Advantages: One of the most important advantages is the fast availability of the information. The clients/users can

easily get information, by navigating the internet, about the products that they wish to purchase, and

besides that, they can check the information at anytime of the day.

It allows the companies to save money, an aspect that is really taken into account by the companies since

the online marketing campaigns dont require a large amount of investment.

The previous mentioned aspect, gives less importance to the differences between large and small

companies in some way, thus increasing the competition and giving that way advantages to the customers.

Presence on the Internet can help the expansion of the company from a local market to national and

international markets at the same time, offering almost infinite expanding possibilities.
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On the internet everything can be measured, thus its easier for the companies to know almost instantly if

their campaign is working or not, what company or user is interested in their products, from what cities or

countries are they, etc.

Disadvantages: Slow internet connections can cause difficulties. If the companies build too complex or too large

websites, it will take too long for users to check them or download them and they will get bored

eventually..

The e-commerce doesnt allow the user totouch the merchandise before purchasing it. Because of this,

some salesmen are starting to guarantee the possibility of returning the product. In Germany, where a law

that regulates e-commerce and guarantees the customers the total refund of the money exists since 2000,

the electronic commerce is very popular.

Other factor is the payment: many users still dont trust in the electronic methods of paying and give up

buying online because of this.

One of the major disadvantages may be the lack of trust of the users because of the constant virtual

promotions that appear to be frauds. This is an aspect that deteriorates the image and reputation of quality

and honest companies.

Other disadvantage is the cash on delivery system, since it doesnt guarantee the 1 00% purchase of the

product. This is also the case of thousands of users that dedicate themselves to daily mock big companies

by ordering on the internet using false identities.

Features of marketing

Marketing is a science as well as art:

Exchange is essence of marketing

Marketing is Goal Oriented:

Marketing is a continuous process:

Marketing is Consumer Oriented:

Marketing starts with consumer and ends with consumer:

What is promotional mix (IMC) ? MENTION ITS COMPONENTS

A specificcombination of promotionalmethods used for one product or afamily ofproducts.

Advert is ing

Personal sel l ing

Sales prom ot ion

Publ ic relations

Direct Marketing

DEF : IMC integrated marketing communications :A concept of marketing communications planning

that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of

communication disciplines and combines these discipline to provide clarity consistency and maximum

communications impact

Brandis the "name, term, design, symbol, or any other feature that identifies one seller's product distinct

from those of other sellers.
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types of buying behavior

Complex Buying Behaviour:

Dissonance

Habitual Buying Behaviour:

Variety seeking Buying Behaviour :

Marketing Information System (MIS)collects, analyses, and supplies a lot of relevant information to the

marketing managers. It is a valuable tool for planning, implementing and controlling themarketingactivities.

Components of maketing information system

Internal Records,

Marketing Intelligence,

Marketing Research (MR), and

Marketing Decision Support System.

Applications of Market Research

Pricing Research

Product Research Concept Testing

Positioning Research

Marketing Due Diligence

Customer Satisfaction Research

Branding Research

Brand Equity Research

Advertising Research

Market Segmentation

Sales Analysis

steps involved in marketing research process

Formulating the Marketing Research Problem Method of Inquiry

Research Method

Research Design

Data Collection Techniques

Sample Design

Data Collection

Analysis and Interpretation

The Marketing Research Report

four types of demand states

1. Negative demand: consumers dislike the product and may even pay a price to avoid it.

2. Nonexistent demand: consumers may be unaware or uninterested in the product.

3. Latent demand: consumersmay share a strong need that cannot be satisfied by an existing product.

4. Declining demand: consumers begin to buy the product less frequently or not at all.

5. Irregular demand: consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis.

6. Full demand: consumers are adequately buying all products put into the marketplace.

7. Overfull demand: more consumers would like to buy the product than can be satisfied.

8. Unwholesome demand: consumers may be attracted to products that have undesirable social consequences.

E.g. Cigarettes are harmful to society but attract more and more consumers to use.
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Needs :- A human need is a state of felt deprivation of some basic satisfaction.

Wants :- wants are desires for specific satisfies of these deeper needs.

Demands :- demands are wants for specific products that are backed by an ability and willingness to buy

them.

behavioural basis for segmentation

Behavioural segmentation involves dividing potential buyers into groups which define their usage rate, their brand familiarityand consumers whose buying patterns are determined by some occasions.

Brand equityis aphraseused in themarketingindustry which describes the value of having a well-knownbrand

name,based on the idea that the owner of a well-known brand name can generate more money from products

with that brand name than from products with a less well known name, as consumers believe that a product with a

well-known name is better than products with less well-known names.

Brandis the "name, term, design, symbol, or any other feature that identifies one seller's product distinct from

those of other sellers.

Customer delightis surprising a customer by exceeding his/her expectations and thus creating a positive

emotional reaction.

Customer satisfactionis giving the customer something they expect and it makes them happy.

Vs

Customer delightis giving the customer something they never expected but they value it highly once they have

it

service marketing mixis also known as an extended marketing mix and is an integral part of a

service blueprint design.

Its consist of product ,place ,promotion ,pricing ,people ,process ,physical evidence

Qualitative measures in marketing research

Qualitative market research means "quality.

they offer a way to measure the market, again, in terms of depth and range of buyer perceptions and needs

rather than quantity.

The purpose of qualitative research is to plumb the depths and range of buyer attitudes and beliefs, not

quantity.
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marketing management 2 mark qa

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