1
Q
What are the 4 segmentation strategy ?
A
Concentrated
Differentiated
Undifferentiated
Personalized
2
Q
What are the 2 targeting strategy ?
A
- Mass marketing
- Mass customization
3
Q
What is mass marketing ?
A
a strategy where a company promotes and sells its products or services to a broad and undifferentiated audience.
4
Q
What is mass Customization ?
A
a strategy that combines elements of both customization and mass production. It seeks to deliver personalized products or services to meet the specific needs of individual customers.
5
Q
What is Concentrated marketing ?
A
Company focus on one specific target market group
- Using fewer resources for marketing efforts
- Becoming an expert in your chosen field
- Customizing your branding for your audience
- Analysing the effectiveness of campaigns and strategies
6
Q
What is Undifferentiated marketing ?
A
Mass marketing.
Reach as large an audience as large as possible.
- To communicate the benefits of the products (P/S) by sending the same promotional image to everyone
- Attracting a large numbers of consumers
- The whole marketing process can be much cheaper
- Undifferentiated price (no customization of prices based on different customer groups, geographic locations, or other factors.)
- It’s important to have a marketing information system
7
Q
What is Differentiated marketing ?
A
Understanding the consumers’ needs. Businesses can satisfy the need of various consumers. Marketing campaigns for 2 or more consumers segments.
- Satisfy the needs of a range of consumers
- Creates a strong business presence
- Increases of sales, revenue
- Increase competitive advantage
- Allow business to adapt
8
Q
What is Personalized marketing ?
A
Method of marketing that accounts for a consumers’ personal needs, wants and interests.
AI, algorithm, market research.
Buyer persona!
- Ability to reach audience more efficiently (qualification)
- Increase conversion rates (improving the percentage of visitors to a website or users of an application)
- Shows audience you are paying attention to them
-Improve consumer loyalty and consumer experience - Crate constancy across channels
9
Q
What are the segmentation methods/basis ?
A
Geographical
Sociodemographic
Psychographic
behavioral
10
Q
What are the two market demand ?
A
Heterogenous demand
Homogenous demand
11
Q
What is Heterogenous demand ?
A
- Diverse Preferences: Consumers have diverse preferences and needs for a product.
- Differentiated Products: There is a need for product differentiation to cater to various consumer segments.
- Customized Marketing: Strategies need customization to target specific consumer segments with tailored messages.
- Segment Targeting: Identify and target specific consumer segments based on unique preferences.
Examples: Smartphone market with varied feature preferences, customized travel experiences.
12
Q
What is Homogenous demand ?
A
- Similar Preferences: Consumers have relatively similar or identical preferences for a product.
- Interchangeable Products: Products are viewed as interchangeable or identical.
- Price Sensitivity: Purchasing decisions are often based on factors like price and convenience.
- Cost Emphasis: Marketing strategies focus on cost efficiencies, mass marketing, and price competitiveness.
Examples: Basic commodities, standardized household goods.
13
Q
What is segmentation ?
A
Identify distinct groups of buyers
- select one or more segments to enter
- For each segment- company’s market mix marketing
14
Q
What are the 2 main types of differentiation strategy ?
A
- Broad differentiation
- Focus differentiation
15
Q
What is the Broad differentiation ?
A
Broad differentiation involves creating a unique product or service that appeals to a wide range of customers.
-Wide Market Appeal
- Brand Image:
- Higher Price
ex : apple, It is positioned as a premium, innovative smartphone with distinctive design and features.
16
Q
What is the Focus differentiation ?
A
involves creating a unique product or service that caters to the specific needs and preferences of a narrow, specialized segment of the market.
- Niche Market
- Customization
- Deep Customer Understanding
ex : rolex, Rolex caters to a niche market seeking luxury, precision, and craftsmanship in high-end timepieces.
17
Q
What are the benefit of creating a differentiation strategy ?
A
- Reduced price competition. (advantage of it is buy reduced price competition)
- Unique products (quality, attributes).
- Better profit margin.
- Customer brand loyalty.
- No perceived substitutes.
18
Q
What are the consumer behavior and purchasing decisions in marketing ?
A
- Assign value to attributes
- Be willing to pay the price
19
Q
What does “Assign value to attributes” for a consumers means ?
A
- Consumers evaluate products or services based on specific attributes or features.
- These attributes could include quality, functionality, design, brand reputation, convenience, and other factors that contribute to the perceived value of the product.
20
Q
What does “ Be willing to pay the price” means to consumers ?
A
- Consumers not only assess the value of the attributes but also consider whether the perceived value justifies the cost or price of the product.
- Willingness to pay reflects the maximum price a consumer is willing to spend to acquire the desired attributes or benefits.
21
Q
How do customers makes choices ?
A
if the offer lives up to their expectations and satisfaction.
if the products or services offers what they are looking for. Then they will likely be more able to use it.
22
Q
What “axes of differentiation” refers to ?
A
the “axes of differentiation” refer to the specific dimensions or criteria along which a product or brand seeks to differentiate itself from competitors.
23
Q
What are the 3 criteria for choosing axes of differentiation ?
A
- Competition positioning – market:
- Competitive advantages of our P/S – offer.
- Customers expectations (buyers and users) – market:
24
Q
What is positioning ?
A
is about shaping how customers perceive a product or brand compared to others, creating a distinctive and favorable identity that influences their buying decisions.
25
The 3 key factors of positioning ?
- Identify the target market
- Identify the competition
- Define the differentiator attributes
26
What is the perception ?
The real perception that the consumer have of the business offer and of the corporate branding.
- if a person have a negative perception of it then, it would be hard to change it
27
What are the 4 quality of positioning ?
- Simplicity
- originality
- credibility
- relevant
28
The 3 steps of positioning strategy ?
- Clearly define the target segment
- Determine the number and nature of the attributes to be valued
- Implement means of communication to promote the attributes
29
What are the Positioning strategy methods ?
- Attribute Positioning: Emphasizing specific product features or attributes.
- Benefit Positioning: Highlighting the benefits or solutions a product provides.
- User Positioning: Focusing on a specific target audience or user.
- Competitor Positioning: Contrasting a product with competitors in the market.
30
What is the perceptual map ?
A diagram mapping out what the customers think about your products or services.
Aside from just the offering, it can also map what they think about other brands even competitors and their products.
Finally, perceptual mapping uses customers data to build a viewpoint on where different brands and their products stand within the overall ecosystem.
31
What are the 5 levels product ? Kotler's model
- core need and benefit
- Generic product
- Expected product
- Augmented product
- Potential product
32
what is core need and benefit ?
- Explanation: This is the fundamental need or want that the product satisfies.
- Enables: Identifying the essential function or purpose of the product.
33
What is Generic product ?
- Explanation: The basic version of the product that includes the core benefit and essential features.
- Enables: Establishing the minimum features required to meet customer expectations.
34
What is Expected product ?
- Explanation: The set of attributes and features that customers expect when they purchase a product in a particular category.
- Enables: Meeting customer expectations and avoiding dissatisfaction.
35
What is Augmented product ?
- Explanation: Additional features, benefits, or services that exceed customer expectations and differentiate the product.
- Enables: Creating a competitive advantage, adding value, and enhancing the overall customer experience.
36
What is potential product ?
- Explanation: The maximum extension of a product, including all possible features, innovations, and future developments.
- Enables: Anticipating future market needs, staying innovative, and positioning the product for long-term success.
37
What are the 4 product classification ?
Current
Thoughtful
Speciality
Unexpected
38
What are the 2 product features ?
- Purchasing habit consumer/product (B2C)
- Products for business/organizations (B2B, B21)
39
What is brand ?
identify a P/S produced by the company and differentiate them from the competition.
all about creating differences between products
40
What is the nature of brand ?
A brand is the visual, auditory, and conceptual identity of a product, service, or company.
It includes elements such as logos, taglines, and design, creating a distinctive image that customers can recognize.
41
What are the Brand Strategies ?
- Name or logo : Apple with its eaten apple
- Generic Name : Honda which is associated with automobiles
- Generic Name for product range : Ski-Doo (snowmobiles)
- Company trademark : Ipad (associated with Ipad and Iphone)
42
What is the product life cycle ?
Introduction
Growth
Maturity
Decline
= guide overall business strategy, including how products are positioned, priced, promoted, and distributed.
43
What is Law of Diffusion and Innovation ?
describes how new products or ideas spread in a population. It includes categories like innovators, early adopters, early majority, late majority, and laggards.
=helps businesses understand the adoption process for innovations and can influence marketing and communication strategies.
44
What is Customer Service ?
- Customer experience
- The what know-how
- The how know-be
High tech (technology) / High touch (human interactions) DILEMMA = about finding the right mix between using advanced technology for efficiency and maintaining personal, human interactions for a better customer experience.
45
Marketing objectives ?
- Create product awareness and trial
- Maximize market share
- Maximize profit while defending market share
- Reduce expenditure and harvest the market
45
Innovation imperative ?
- in an economy characterized by rapid change, continuous innovation is a necessary.
- Changing customer needs and tastes
- shortened product life cycles
- Competitive analysis: competitor’s reaction, new entrance, substitutes
- Search for new attributes to differentiate and position the company’s offer.
46
Marketing mix, 4 strategic ?
- Product
- Price
- Distribution
- Communication
47
What is price ?
- communicates the company’s intented value positioning of its product or brand
48
We should set the price according to ?
- Economic and cost accounting aspect.
- Psychological aspect.
- Utility value
- emotional value
- Purchasing situation
49
What are the common mistakes in pricing ?
- Many companies do not handle pricing well and fall back on strategies.
- Not revising prices often enough to capitalize on market changes.
- Not being concerned about: SWOT analysis, economic growth, cost of money, discretionary revenue, branding (image pricing), etc. (need to do our own SWOT)
50
What are the 5 factors/ determinants of pricing policy ?
1 – General objectives of the marketing strategy:
2 – Cost structure:
3 – pricing policy of competitors and intermediaries:
4 – Price elasticity of demand:
51
1 – General objectives of the marketing strategy:
-Profitability:
Increase overall profitability.
Define minimum, satisfactory, and reasonable profit margins.
Align profit goals with societal expectations and industry standards.
- Sales Volume:
Determine desired unit sales volume.
Establish target market share.
Define the type and rate of sales growth.
- Branding (Positioning):
Decide whether the brand will be positioned as high-end or low-end.
Define the desired brand image in the market.
- Product Range Strategies:
Loss Leader:
Use select products as loss leaders for customer attraction.
Sacrifice short-term profit for long-term gains.
- Cross Elasticity:
Understand the impact of price changes on product demand.
Optimize pricing based on cross-elasticity.
- Complementary Products:
Identify and promote products that complement each other.
Encourage cross-selling for an enhanced customer experience.
52
2 – Cost structure: ?
Fixed costs / variables costs
Total costs / Average costs / Marginal costs.
Directs costs / Indirect costs.
Relationship between production costs and sales volume.
Experience curve effects.
53
3 – pricing policy of competitors and intermediaries ?
Competitors: (which means that competitors have) technological innovation, substitutes. (how are we going to react)
Distribution: manufacturer, wholesaler, agents, retailer
54
4 – Price elasticity of demand ?
The law of demand (class 6) .
One of the most fundamental concepts in economy.
The law of demand states that the quantity varies inversely with price.
Price elasticity.
- Positive demand elasticity: price increase = increase in demande volume. (even if the price went up people were still buying so this caused inflation)
- 0 demande elasticity: price increase = no impact on demand volume.
- Negative demand elasticity : price increase = decrease in demand volume.
55
5 – Regulatory framework - Laws:
Illicit agreement.
Price discrimination.
Selling at lost (dumping).
Retail price (manufacturer’s suggested retail price MSRP).
Price imposition:
Price approval by government agencies (transport, electricity, milk, drugs).
56
2 Main pricing method ?
Internal price approach (I):
External price approach :
57
Internal price approach (I) ?
Set the price based on the production cost of the product or service, then add a desired profit margin
58
External price approach :
Setting prices by considering competition, market demand, and external factors.
Adjusting prices based on what competitors are doing and what customers are willing to pay
59
5 Steps of main pricing methods ?
1 - Setting and prioritizing goals
2 - Setting a price range
3 - Evaluation of scenarios within the price range
4 - Choosing the optimal price
5 -Evaluation and adjustment of final price
60
What is a distribution Channel ?
Distribution channels are sets of independent organizations participating in the process of making a P/S available for use and consumption
61
Why use intermediaries?
To add value to our proposition.
To reduce the number of transactions between manufacturers and buyers, consumers or organizations.
62
Intermediaries might be more efficient, because of their
- Contacts. (list of customers, easy to introduce a new product)
- Experience and specialization.
- Scale of operation.
63
Main functions of distribution
Transactional:
Logistic:
Facilitation:
63
Transactional ?
Buying from manufacturers, selling to consumers and risk taking.
64
Buying from manufacturers, selling to consumers and risk taking.
Transactional
65
Logistic ?
Order desk and customer service.
Order assortment, storage, sorting and transportation.
66
Order desk and customer service.
Order assortment, storage, sorting and transportation.
Logistic
67
Facilitation:
Financing, classification and information collection (Big Data).
68
Financing, classification and information collection (Big Data).
Facilitation:
69
How useful are distribution channels?
Time: make the P/S accessible in a timely manner.
Place: where the consumer will find the P/S.
Possession: different ways or forms of making the P/S accessible.
70
Market coverage (distribution channel)
- Exclusive distribution: Rolex watch, Ferrari cars.
- Selective distribution: Honda products, La Pinte.
- Intensive distribution: Procter & Gamble body soap, and other commodities
71
- Exclusive distribution ?
Agreement between a supplier and a intermediary grading a distributor or retailer exclusive rights within a specific geographical area to carry the supplier's product
72
Agreement between a supplier and a intermediary grading a distributor or retailer exclusive rights within a specific geographical area to carry the supplier's product
Exclusive distribution
73
Selective distribution
Is a situation in which a company makes a product available only in a limited number of intermediaries or a particular type of store
74
Is a situation in which a company makes a product available only in a limited number of intermediaries or a particular type of store
- Selective distribution
75
Intensive distribution
Is a method of marketing where a company sells a P/S in as many places as possible, so consumers see the P/S where they go
76
Is a method of marketing where a company sells a P/S in as many places as possible, so consumers see the P/S where they go
Intensive distribution
77
3 basic types of channel ?
- Conventional marketing channels
(Independent producer, wholesalers and retailers.
No channel member has complete or substantial control over the members.)
- Vertical marketing systems:
(By contrast, include producer, wholesalers and retailers acting as a unified system.
They all cooperate.)
- Horizontal marketing systems:
( Involve 2 or more unrelated companies putting together resources and programs to exploit an emerging marketing opportunity. Each companies lack resources.)
78
Channel objectives
Optimize distribution channels for expanded market access, cost efficiency, and heightened customer satisfaction to gain a competitive advantage and maximize overall profitability.
79
Logistic ?
- Supply chain managenent
Planning the infrastructure
- Logistic management
Acquisition sotrage, transportatoon
- Market logistic decisions : the one that support how I facilitate the different aspects of it
Order processing
wharehousing
Inventory
Transportation
80
What is integrated marketing about ?
External communication mix
Internal communication mix
