Level 4 Marketing Executive - Products and Channels

Question 1

What does PESTLE analysis study?

Answer 1

PESTLE analysis studies key external factors influencing an organization.

Question 2

What is the purpose of PESTLE analysis?

Answer 2

It guides professionals and senior managers in strategic decision-making.

Question 3

Name the components of PESTLE analysis.

Answer 3

Political, Economic, Sociological, Technological, Legal, and Environmental factors.

Question 4

What are examples of political factors?

Answer 4

Tax policy, regulations, political stability.

Question 5

What economic factors does PESTLE analysis consider?

Answer 5

Economic growth/decline, interest rates, unemployment.

Question 6

What does sociological analysis involve?

Answer 6

Examining cultural norms, health consciousness, demographics.

Question 7

What is assessed under technological factors?

Answer 7

Emerging technologies and the rate of technological change.

Question 8

What aspects fall under legal factors?

Answer 8

Legislative changes impacting employment, resources, and taxation.

Question 9

What environmental factors are considered?

Answer 9

Global warming, sustainability, and pandemics.

Question 10

What are some advantages of PESTLE analysis?

Answer 10

Simple framework, understanding the wider business environment, encouraging strategic thinking, anticipating threats, exploiting opportunities.

Question 11

What are potential disadvantages of PESTLE analysis?

Answer 11

Risk of oversimplification, data overload, reliance on assumptions, difficulty in anticipating future changes, and need for regular repetition for effectiveness.

Question 12

What is Route-to-Market Strategy?

Answer 12

Strategy for distributing products to target customers and achieving business objectives.

Question 13

Why is Channel Conflict sometimes beneficial?

Answer 13

Maximizes market coverage and sales potential.

Question 14

What are the phases of Route-to-Market development?

Answer 14

Strategy Development, Channel Planning & Design, Implementation.

Question 15

Why is investment in Strategy Development essential?

Answer 15

Crucial for long-term success, typically 6-18 months.

Question 16

Why is Innovation in Route-to-Market important?

Answer 16

Essential for future market success; today’s unique channel is tomorrow’s standard.

Question 17

How can companies create value through unique channels?

Answer 17

Offer ‘out of the box’ solutions to provide added value to customers.

Question 18

What are the benefits of a Diagnostic & Strategic Review?

Answer 18

Identifies efficiency, effectiveness, and improvement opportunities in route-to-market.

Question 19

Key aspects of an Effective Route-to-Market Strategy?

Answer 19

Strong customer focus, aligning strategic goals and capabilities, flexibility to adapt.

Question 20

How should companies manage Customer Channel Satisfaction?

Answer 20

Provide preferred channels, control costs, offer special treatment to best customers.

Question 21

Considerations for Economic Viability of Channels?

Answer 21

Balancing premium channels with profitability, ensuring cost-effectiveness while satisfying customer needs.

Question 22

What is a business model?

Answer 22

A business model is a plan for making profit, involving products, target market, and revenue strategies.

Question 23

Why are business models important?

Answer 23

Business models attract investment, recruit talent, and adapt to market trends.

Question 24

What are the components of a business model?

Answer 24

Components include products, target market, and expenses.

Question 25

What are the key takeaways about business models?

Answer 25

They're vital for companies, used by investors, and need regular updates.

Question 26

Name some types of business models.

Answer 26

Types include retailer, manufacturer, subscription, and marketplace.

Question 27

What are the steps to creating a business model?

Answer 27

Steps involve identifying audience, understanding offerings, finding partners, and testing.

Question 28

What criticism is there of business models?

Answer 28

Criticisms include incoherent narratives and unprofitable numbers.

Question 29

What's the bottom line about business models?

Answer 29

They're crucial for planning and value creation, outlining operations and revenue.

Question 30

What are Dogs in the Boston Matrix?

Answer 30

Dogs are low-market-share products in low-growth markets. They yield little profit and require discounts to sell.

Question 31

Define Cash Cows according to the Boston Matrix.

Answer 31

Cash Cows have high market share in low-growth markets, offering limited growth prospects but consistent profit.

Question 32

What characterizes Stars in the Boston Matrix?

Answer 32

Stars have high market share in high-growth markets, indicating strong growth potential and promising opportunities.

Question 33

Explain Question Marks (Problem Children) in the Boston Matrix.

Answer 33

Question Marks have low market share in high-growth markets. They can evolve into Stars or Cash Cows but may require significant effort for uncertain returns.

Question 34

How is market share defined, and why is it significant in the Boston Matrix?

Answer 34

Market share is the portion of the total market served by a product or business. Higher market share is often linked to higher profitability, a key assumption in the Boston Matrix.

Question 35

What role does market growth play in the Boston Matrix?

Answer 35

Market growth signifies a market's attractiveness. High-growth markets offer profit opportunities even with stable market share, while low-growth markets pose challenges like intense competition and the need for aggressive pricing to maintain share.

Question 36

What is advertising?

Answer 36

Paid communication promoting ideas, goods, services, or sponsors through media like TV, radio, newspapers, and the internet.

Question 37

Advantages and disadvantages of advertising?

Answer 37

Pros: Builds credibility, repeats messages strategically, generates interest, and fosters brand connections. Cons: High costs, difficulty reaching target audiences effectively, limited direct consumer interaction.

Question 38

What is direct marketing?

Answer 38

Personalized communication directly with consumers, bypassing intermediaries, including direct mail, telemarketing, and digital marketing.

Question 39

Advantages and disadvantages of direct marketing?

Answer 39

Pros: Tailored experiences for consumers, insights into customer needs. Cons: Privacy concerns, message saturation, challenges in maintaining updated databases.

Question 40

What is personal selling?

Answer 40

In-person interactions between sales representatives and customers to sell products or services, fostering relationships and gathering feedback.

Question 41

Advantages and disadvantages of personal selling?

Answer 41

Pros: Flexibility in tailoring presentations, addressing customer objections. Cons: High costs, potential message inconsistency.

Question 42

What are sales promotions?

Answer 42

Short-term efforts like special offers, demonstrations, and contests directed at consumers, retailers, or the manufacturer's sales force.

Question 43

Advantages and disadvantages of sales promotions?

Answer 43

Pros: Boosts short-term sales, gains insights into price sensitivity, builds customer loyalty. Cons: Risks of brand dilution, short-term focus, over-reliance on promotions.

Question 44

What is digital marketing?

Answer 44

Using digital tools like email, websites, content marketing, social media, and mobile marketing to promote products, services, or brands.

Question 45

Advantages and disadvantages of digital marketing?

Answer 45

Pros: Global reach, cost-effectiveness, two-way communication. Cons: Initial setup costs, data security concerns, challenges in maintaining engagement and crisis management.

Question 46

What are public relations?

Answer 46

Maintaining a favourable image and building beneficial relationships between an organization and the public through earned attention rather than paid messages.

Question 47

Advantages and disadvantages of public relations?

Answer 47

Pros: Credibility from earned attention. Cons: Less control over messaging, difficulty in measuring effectiveness compared to advertising.

Question 48

GDPR Principles?

Answer 48

The Seven Principles Lawfulness, fairness and transparency. Purpose limitation. Data minimisation. Accuracy. Storage limitation. Integrity and confidentiality (security) Accountability.