Models and Theories

Question 1

4P model

Answer 1

Product, Price, Place and Promotion

Question 2

Marketing environment

Answer 2

The Marketing Environment includes the Internal factors (employees, customers, shareholders, retailers & distributors, etc.) and the External factors( political, legal, social, technological, economic) that surround the business and influence its marketing operations.

Question 3

Marketing microenvironment

Answer 3

The Micro Marketing Environment includes all those factors that are closely associated with the operations of the business and influences its functioning. The microenvironment factors include customers, employees, suppliers, retailers & distributors, shareholders, Competitors, Government and General Public. These factors are controllable to some extent.

Question 4

Marketing macroenvironment

Answer 4

The Macro Marketing Environment includes all those factors that exist outside the organization and can not be controlled. These factors majorly include Social, Economic, Technological Forces, Political and Legal Influences.

Question 5

Marketing management concepts

Answer 5

Production concept, Product, Selling concept, Marketing concept, Societal marketing concept

Question 6

Production concept

Answer 6

Production Concept is a belief that states that the customers would always acquire products which are cheaper and more readily available (or widely available).

Question 7

Product concept

Answer 7

This concept works on an assumption that customers prefer products of greater quality and price and availability don’t influence their purchase decision.

Question 8

Selling concept

Answer 8

The selling concept highlights that customers would buy a company’s products only if the company were to sell these products aggressively.

Question 9

Marketing concept

Answer 9

A company that believes in the marketing concept places the consumer at the center of the organization. All activities are geared towards the consumer. A business, aims to understand the needs and wants of a customer.

Question 10

Societal concept

Answer 10

While the societal marketing concept highlights the needs and wants of a target market and the delivery of better value than its competitors, it also emphasizes the importance of the well-being of customers and society as a whole. They must balance and juggle the often conflicting criteria of company profits, consumer want satisfaction, and public interest.

Question 11

Marketing management process

Answer 11

https://www.markodojo.com/wp-content/uploads/2015/12/marketing-management-process-ideas-work-results.png

Question 12

BCG matrix

Answer 12

Star, Dog, Questionmark and Cow

Question 13

STP model

Answer 13

Segmentation, targeting and positioning

Question 14

Positioning chart

Answer 14

A positioning map is a type of visual that allows marketers to compare their product or service with those of their competitors. For example, in Y-axis high quality - low quality and in the X-axis high price - low price.

Question 15

Buying behaviour

Answer 15

The sum total of the attitudes, preferences, beliefs and decisions regarding the consumers behavior when purchasing a product or service in a market.

Question 16

Consumer decision-making process

Answer 16

1. Need Recognition: When a consumer is aware of a need which may arise from internal or external stimulus
2. Information Search: via Public, Personal, Commercial or Experiential process
3. Evaluation of alternatives: Consumers evaluate products and services by combining their brand beliefs and attitudes according to importance using the expectancy value model
4. Purchase decision: Influenced by brand, dealer, quantity, timing, attitude of others, unanticipated situational factors and perceived risks
5. Post-purchase behavior: Related to customer satisfaction, action, usage, and disposal

Question 17

Five Product levels

Answer 17

1. Core Benefit
   The core benefit is the fundamental need or wants that the customer satisfies when they buy the product.

For example, the core benefit of a hotel is to provide somewhere to rest or sleep when away from home.
2. Generic Product
The generic product is a basic version of the product made up of only those features necessary for it to function.
In our hotel example, this could mean a bed, towels, a bathroom, a mirror, and a wardrobe.

3. Expected Product
   The expected product is the set of features that the customers expect when they buy the product.
   In our hotel example, this would include clean sheets, some clean towels, Wi-fi, and a clean bathroom.
4. Augmented Product
   The augmented product refers to any product variations, extra features, or services that help differentiate the product from its competitors.

In our hotel example, this could be the inclusion of a concierge service or a free map of the town in every room.

5. Potential Product
   The potential product includes all augmentations and transformations the product might undergo in the future. In simple language, this means that to continue to surprise and delight customers the product must be augmented.
   In our hotel, this could mean a different gift placed in the room each time a customer stays. For example, it could be some chocolates on one occasion, and some luxury water on another. By continuing to augment its product in this way the hotel will continue to delight and surprise the customer.

Question 18

Consumer Products

Answer 18

Consumer products, also referred to as final goods, are products that are bought by individuals or households for personal use.

Question 19

Convenience products

Answer 19

Convenience products are bought the most frequently by consumers. They are bought immediately and without great comparison between other options. Convenience products are typically low-priced, not-differentiated among other products, and placed in locations where consumers can easily purchase them.
Sugar, laundry detergent, pencils, pens, and paper are all examples of convenience products.

Question 20

Shopping products

Answer 20

Shopping products are bought less frequently by consumers. Consumers usually compare attributes of shopping products such as quality, price, and style between other products. Therefore, shopping products are more carefully compared against, and consumers spend considerably more time, as opposed to convenience products, comparing alternatives. Shopping products require personal selling and advertising and are located in fewer outlets (compared to convenience products) and selectively distributed.

Airline tickets, furniture, electronics, clothing, and phones are all examples of shopping products.

Question 21

Specialty Products

Answer 21

Specialty products are products with unique characteristics or brand identification. Consumers of such products are willing to exert special effort to purchase specialty products. Specialty products are typically high priced, and buyers do not use much time to compare against other products. Rather, buyers typically spend more effort in buying specialty products compared to other types of products.
Sports cars, designer clothing, exotic perfumes, luxury watches, and famous paintings are all examples of specialty products.

Question 22

Unsought products

Answer 22

Unsought products are products that consumers do not normally buy or would not consider buying under normal circumstances. Consumers of unsought products typically do not think about these products until they need them. The price of unsought products varies. As unsought products are not conventionally thought of by consumers, they require aggressive advertising and personal selling.
Diamond rings, pre-planned funeral services, and life insurance are all examples of unsought products.

Question 23

Product life cycle

Answer 23

Products, like people, have life cycles. The product life cycle is broken into four stages: introduction, growth, maturity, and decline.

Question 24

Pricing approaches

Answer 24

A pricing strategy is a model or method used to establish the best price for a product or service. Pricing strategies help you choose prices that maximize profits and shareholder value while considering consumer and market demand.

Question 25

Cost-based pricing

Answer 25

Cost-based pricing is one of the pricing methods of determining the selling price of a product by the company, wherein the price of a product is determined by adding a profit element (percentage) in addition to the cost of making the product.

Question 26

Competition-based pricing

Answer 26

This pricing strategy focuses on the existing market rate (or going rate) for a company’s product or service; it doesn’t take into account the cost of their product or consumer demand.

Question 27

Value-based pricing

Answer 27

A value-based pricing strategy is when companies price their products or services based on what the customer is willing to pay. Even if they can charge more for a product, they decide to set their prices based on customer interest and data.

Question 28

Importance of distributor

Answer 28

Distributors play a vital role in smoothly connecting manufacturers and customers. They can expedite response times, enhance a company’s reach, and even create value-added packages that complement a company’s product offering or scope. Without distributors, either the buyer or seller would have to perform these functions, adversely affecting the bottom line.

Question 29

Consumer distribution channels

Answer 29

1. Manufacturer to consumer
2. Manufacturer to retailer to consumer
3. Manufacturer to wholesaler to retailer to consumer
4. Manufacturer to agent to wholesaler to retailer to consumers

Question 30

Distribution strategies

Answer 30

Distribution Strategy is a strategy or a plan to make a product or a service available to the target customers through its supply chain.

Question 31

Promotion mix

Answer 31

In marketing, the promotional mix describes a blend of promotional variables chosen by marketers to help a firm reach its goals. It has been identified as a subset of the marketing mix.

1. Advertising
2. Public relations or publicity
3. Sales promotion
4. Direct marketing
5. Personal selling

Question 32

Linear communication process

Answer 32

A one-way street in which no feedback is received after the message is sent or there is a significant delay in receiving a response. Examples include letters, emails, blogs or vlogs.

Question 33

Push strategy

Answer 33

A push strategy is to push a product at a customer. For example Facebook ads and boosted posts.

Question 34

Pull strategy

Answer 34

A pull strategy pulls a customer towards a product. For example search engine optimization.

Question 35

Brand position chart

Answer 35

A chart with for example High - Low price on Y-axis and High - Low quality on X-axis with brands placed accordingly. (Think about how you would place car manufacturers on this kind of chart)

Question 36

Brand strategies

Answer 36

A brand strategy is your long-term brand, which helps to identify what kind of image you want to build for your customers.

1. Brand positioning
2. Brand name selection
3. Brand sponsorship
4. Brand development