8. Strategies for products and markets

Question 1

What is market research?

Answer 1

The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services

Question 2

What are examples of field research?

Answer 2

Questionnaires
Internet surveys
Interviews
Observations
Trial testing

Question 3

Issues to consider with field research?

Answer 3

Costly
Honesty of responses
Closed questions do not provide the why

Question 4

What are examples of desk research?

Answer 4

Existing company records
General economic data

Question 5

What is market positioning map?

Answer 5

Giving a product a place relative to its competitors on factors such as quality, price, image

Question 6

What is the marketing mix?

Answer 6

Set of controllable marketing variables that a firm blends to produce its response to target the market

Question 7

What are the 7ps? (for services)

Answer 7

Product
Promotion
Place
Price
People
Process
Physical evidence

Question 8

Brand positioning

Answer 8

Economy brands
Bargain brands
Premium brands
Cowboy brands

Question 9

Cowboy brands

Answer 9

Over-priced for quality of product

Question 10

Economy brands

Answer 10

Low price and acceptable quality

Question 11

Premium brands

Answer 11

High price for high quality

Question 12

Bargain brands

Answer 12

Low price yet good quality

Question 13

Push promotion

Answer 13

Ensuring products are available to purchase where and when the customer requires

Question 14

Pull promotion

Answer 14

Marketing variables to persuade customer to purchase

Question 15

What are the key factors to be considered when selecting a pricing strategy?

Answer 15

Costs
Customers
Competition
Corporate objectives

Question 16

What are the different pricing strategies?

Answer 16

Price skimming
Penetration
Price discrimination
Perceived quality
Going rate
Cost plus pricing

Question 17

What is price elasticity of demand?

Answer 17

Degree to which demand is affected by changes in the selling price

% of demand / % of price

Question 18

Inelastic means?

Answer 18

Little change in demand when price changes

Question 19

Elastic means?

Answer 19

Bigger change in demand when price changes

Question 20

Perfectly inelastic?

Answer 20

Demand does not change when price does

Question 21

Perfectly elastic?

Answer 21

If price changes above a certain amount all demand evaporates

Question 22

Unitary elasticity?

Answer 22

% in price increases whilst % in volume decreases

Question 23

Giffen goods model

Answer 23

Looks at income effect of price changes in staple products

Question 24

Veblen goods model?

Answer 24

Veblen goods are bought to show off so higher price makes them more desirable

Question 25

What does an overall marketing strategy consist of?

Answer 25

Analysis - market research (field or desk)

Choice - use market segmentation to identify customers to supply

Implementation - develop marketing mix (using 4ps for products, or 7ps for services)

Question 26

What are the 4 p’s for products?

Answer 26

Cost
Competitors
Customers
Corporate objectives

Question 27

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