Marketing 17.09.24

Question 1

What is marketing?

Answer 1

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing is meeting needs profitably.

Question 2

4 steps to meet needs of customer

Answer 2

Identifying customer’s needs
–> Understanding a company’s (potential) customer (to do: market research)

Anticipating customer’s needs
–> Analysing the data and drawing conclusions / adjustments

Satisfying customer’s needs
–> Offering a product / services that meets the customer’s needs and expectations

Archiving profitability
–> Adding value to a product, creating
“willingness to buy” (leads to profit)

Question 3

THE 5-STEP MARKETING PROCESS

Answer 3

1. Understand the marketplace and your customers (target group and its preferences, customers interests)
2. Development of a marketing strategy that is focused on customer needs
   and wants
   –> here: “customer centricity “. In this step, a value proposition is defined/implemented.
3. “High value”: This is what customers get for their money.
4. Four different value types: 1) Functional value
   II) Monetary value
   III) Social value
   IV) Psychological value
5. The overall goal is to develop, establish and maintain strong relationships with the customers.
   Long term relationships > one-and- done sales

–> Why? Loyal customers make continued purchases, recommend the products/services and are relevant multipliers

5. Capture value from customers

–> The final step of the marketing process is that companies earn the rewards of
creating superior customer values à companies capture value from costumers in return in the form of sales, profits, and long-term customer equity

Question 4

Value proposition

Answer 4

Value proposition = “whole cluster of benefits that the company promises to deliver” and it can be a differentiator to competitors that boosts motivation to buy something from the seller

–> answers WHY a customer should choose a company’s products/services and HOW a customer is benefitting from these

–> It is a statement on the problem a product/service solves, the advantages it provides and the reason why it is better than competitor’s offerings

Example: The smartest way to get around (Uber)

Question 5

Omni-channel marketing

Answer 5

Seamless cross-channel shopping experience that involves all available shopping channels; in-store, online and mobile in an integrated way (messaging is consistent)

Question 5

Multichannel marketing

Answer 5

Two or more channels are used to reach target audiences, often include a mix of traditional and digital media; channels are often used independently (message/objectives on the channels are not the same)

Question 6

4 Ps or Marketing mix

Answer 6

The Marketing-Mix provides a framework (or “tool box”) that companies can use to successfully market a product or service to consumers.
It is often described as the 4 Ps of Marketing (McCarthy, 1960):
* Product
* Price
* Place
* Promotion

PRODUCT – the good or service that is provided by a company; its packaging and labelling.
PRICE – the amount that must be paid for a product or service. PLACE – the location where a product / service is purchased.
PROMOTION – the different approaches a company uses to promote its product / service to a potential buyer.

Question 7

FROM 4PS TO 7PS:
THE EXTENDED MARKETING MIX

Answer 7

For a long time, the marketing mix was limited to its 4 Ps and mainly focused on products. As more components were needed to describe services in a better way, the extended marketing mix expands the original toolkit by adding three other pillars.

• Physical services (tangible components of service with strategical relevance (e.g. companies headquarter, smell, touch and other senses, service evidence)
• Processes (the processes involved in delivering a product or service to customers (e.g. delivery partners, logistic processes, payment systems / processes, self-service, online / app / mobile services))
• People (importance of in-person customer service (e. g. staff, training))

Question 8

INFLUENCING FORCES & TRENDS IN MARKETING

Answer 8

Technology, globalization, social responsibility, non-profit approaches

Question 9

The marketing environment is comprised of both the external and internal factors…

Answer 9

Some of these factors—internal factors— are
within the control of the organization. Other factors—external factors—are outside the control of the
organization.

Question 10

The 5Ms of marketing

Answer 10

A marketing/management model that
defines the elements of a marketing strategy that must be addressed in order to be successful. The five
elements include minds, minutes, machinery, materials, and money.

• Minds (Staffing): This “M” might well be considered the most important factor because it’s people who
  make sure the rest of the 5Ms are utilized in a productive manner to achieve the goals of the
  organization.
• Minutes (Time): Time is another valuable asset. We’ve all heard the saying that time is money, and this is true within the marketing arena. For example, in formulating and implementing a new strategy, marketing needs to assess factors such as whether existing production processes are as efficient and effective as they can be, the length of time it takes the organization to introduce a new product to the market, and how responsive the organization is to competitive pressures
• Machinery (Equipment): Machinery consists of the equipment and/or physical assets used to process
  materials into finished or semifinished products.
• Materials (Production): Materials consist of the inputs needed to produce goods and services.
• Money (Finance): Perhaps second only to staffing, money is a very critical resource because it’s used to
  acquire and/or hire other resources.

Question 11

EXTERNAL: Microenvironment

Answer 11

There are two elements within the external marketing environment: the microenvironment and the
macroenvironment. Although the factors within these environments are not directly within the marketer’s
control, they still influence the decisions made by marketers. We’ll first examine the factors in the
microenvironment

Suppliers. Suppliers (sometimes also called vendors) are those partners from whom we receive the parts
and products necessary for our business. Let’s assume that your company produces microwave ovens. Some of your suppliers may be providers of transformers, the turntable, control panels, magnetrons, etc.

As long as you have options in terms of the component suppliers, the bargaining power of each supplier is relatively weak. However, if two suppliers merge and decide to raise the price of the component the new entity supplies, that vendor now wields increased power.

• Market Intermediaries. Often, products are distributed by third-party sellers such as retailers,
  wholesalers, and others in the distribution channel. The reputation of these market intermediaries plays
  an important role in the marketing of the product or service, both positive and negative, so companies
  need to select and monitor market intermediaries on an ongoing basis.
• Customers. Understanding who your customers are will enable you to effectively reach them, whether
  online, locally in retail stores, or internationally.
• Competitors. Successful marketing strategies must be implemented after consideration of your
  competition. Knowing who your competition is and what they are and are not offering allows you to find
  the gap in the market. You want to be where the competition is not, at least in the sense of offering
  something unique to a targeted market.
• General Public. Because companies provide their offerings in communities that support them, they have
  an obligation to satisfy those communities.

Question 12

EXTERNAL: Macroenvironment - PESTLE analysis

Answer 12

PESTLE is an acronym
for political, economic, social, technological, legal, and environmental factors that provide marketers with a
comprehensive view of the whole environment from multiple angles.

These macroenvironment factors can
be used to understand current external influences so that marketers can more easily identify what might
change in the future, mitigate the identified risks, and take advantage of competitive opportunities

Question 13

Marketing management

Answer 13

Marketing management includes (1) analysis, (II) planning, (III) implementation, (IV) organization and (V) control / evaluation –> relevant tool for analysis: SWOT

This process needs a strategy = a plan of action designed to achieve a long-term or overall aim.

Marketing strategy is derived from the corporate strategy and the business strategy.

Question 14

Vision statement

Answer 14

–> What is the desired future state?
–> Future-oriented statement (longer term) about the organization
–> Solid understanding of what the organization is trying to create
–> Serves as a guide or a mantra for employees and teams
–> What does the company want to become in the future / next couple of years?
–> Inspirational and aspirational

Question 15

Mission statement

Answer 15

–> What is our mission?
–> What do we do? Whom do we serve? What do we want to accomplish?
–> An action-based statement that gives orientation and guidance à Should be market-oriented
–> Clear, precise, not too broad, not too narrow
–> Review of the mission statement at regular intervals (3-5 years) – strongly recommended in order to adapt it regularly to new circumstances

Question 16

Why to have marketing plan and its main focus areas?

Answer 16

The marketing plan will help determine who the company wants to address, how the target market looks like, and it defines the specific actions that team members need to implement to reach target customers, build awareness for a service / product or brand and generate increased revenue

Question 17

USP

Answer 17

=Unique selling proposition
* “a feature of a product that makes it different from and better than all its
competitors’ products” (Source: Cambridge Dictionary)
* Short, relevant, clear

Question 18

STRATEGIC PLANNING: PRODUCT STRATEGY (PRODUCT)

Answer 18

• What is the product?
• Which features does the product need?
• Which problem does it solve?
• Does it meet a need that is not currently met in the market? Or is it a new experience that is unique and creates demand?
• How does the target group benefit from it?
• How does it differ from other products in the market?

Question 19

STRATEGIC PLANNING: COMMUNICATION STRATEGY (PROMOTION)

Answer 19

• How can the company capture the customer’s attention and get them interested in its products?
• What channels do they want to use? What fits best with their media usage? What is the most efficient way to reach the target audience? Is advertising the way to go? Or social media marketing? TV commercials? Radio spots?
• Determining the mix of marketing communications channels & defining the message to be sent

Question 20

MARKETING COMMUNICATIONS MIX (or promotion mix)

Answer 20

• ads (“Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.”)
• sales promotion like discounts or “buy one get one free” etc (“Short-term incentives to encourage the purchase or sale of a product or service.”)
• personal selling like sells presentations (“Personal customer interactions by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships.”)
• direct and digital marketing like direct mail, SMM, etc (“Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.”)
• PR - events, press releases, press tours, etc (“Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories and events.”)

Question 21

KPI’S

Answer 21

• Sales growth=itestimatestherateatwhichacompanyhasbeenincreasing its revenue from sales over a particular period.
• ROI=return of invest
• Conversion rate=measures the percentage of users who have achieved your desired action, such as making your e-mail subscribers click on a link in your e-mail
• Open rate=the percentage of your audience that opens the emails you are sending them
• Time on page = the time your audience is spending on your webpage
• Leads=a potential customer (“prospect”) who is showing interest in buying your products
• Reach= number of people in the target market being exposed to an advertisement in a defined time period
• Subscriptions=new registrations for email communication
• Social Media Engagement=likes, comments (and their sentiments), shares, visibility, saves (on platforms like Instagram and TikTok)

Question 22

“marketing communications”

Answer 22

• Term “marketing communications” is relatively new and used for what was previously “promotion”
• Term “marketing communications” developed because a wider range of tools and media evolved and the understanding and tasks in communication departments changed
• First: focus on one-way promotion, rather short time oriented, mass communication
• Now: long-time focus, more tools and channels to be used, personalization & engagement, focus on integrated activities

Question 23

AIDA

Answer 23

!!! Awareness leads to –> interest, which leads to –> desire, which leads to –> action.

1) Create awareness and grab the audience’s attention
2) Generate interest by providing information about the benefits / advantages / issues etc.
3) Create a desire to use / click / subscribe / buy / watch etc. by convincing the audience that their needs are met
4) Make it as easy as possible for the audience to take the action that was intended by the sender

AIDA is a:
- Proven tool
- Easy to use;
- Helps to structure and plan marketing activities
- Flexible in its use

Question 24

DRIP model

Answer 24

* Marketing Communication delivers different kind of messages through tools and media * Model to support marketing communication planning: DRIP Model * DRIP stands for Differentiate, Reinforce, Inform and Persuade --> 4 main tasks that can be used to engage audiences; * Tasks can be combined --> campaigns often include two or three of them, matching the individual needs of the campaign and the target audience * Because: --> product launch campaign aims at different tasks than a campaign for an offering that already exists in the market

Question 25

integrated marketing communication message

Answer 25

* A combination of promotion mix methods leads to an integrated marketing communication message that reaches the customer in many different ways * Means: Wherever (channel / method of promotion) the customer receives a message from the company, the message is always the same! * Consistent messaging, unified look and feel and experience

Question 26

Marketing communications - classification + POEM

Answer 26

1. Paid... 2. Earned... 3. Owned... media (POEM) Paid -- Any other form of advertising where you pay an amount of money in order to get ad spaces Owned -- Media types you have almost absolute control over since you are the owner Earned -- Something you can’t buy; it is comparable to 'word of mouth‘ marketing and describes content about a company that is shared by others --> media that a company has ‘earned’ from its consumers/audience

Question 27

4Cs

Answer 27

Focus on aspects important for effective marketing strategies. 1. Communications: This involves creating clear and effective messages to engage with the target audience. It emphasizes the importance of two-way communication, where businesses not only convey their messages but also listen to and understand customer feedback. 2. Credibility: This focuses on building trust and a positive reputation with customers. 3. Costs: This aspect looks at the financial implications for both the business and the customer. It involves evaluating how the costs of producing and marketing a product affect pricing strategies and how these costs are perceived by customers. 4. Control: This refers to managing and overseeing marketing activities to ensure they align with strategic goals.

Question 28

PR

Answer 28

Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. - PR is all about relations! - PR experts maintain good relations with the media, consumers, shareholders etc. - PR activities are impersonal and non-paid - Result of PR=publicity Two dimensions of PR: I. Sharing positive stories / news II. Damage control and crisis management

Question 29

Brand!

Answer 29

Brands represent how consumers feel and think about its products and performance = what the product/service means to the consumer, added value above its functions High impact on loyalty and preference as strong brands maintain deep connections and relationships with its customers; Brand value=total financial value of a brand Brands must be carefully developed and managed; All touchpoints must support the brand positioning and it must be communicated continuously to consumers. Brand comes to life by brand experiences and engagements with brands not by advertising (only).

Question 30

Today, personalisation of communication is key

Answer 30

Furthermore, Marketing professionals now focus on engagement and long-lasting relationships with the audience. The role of the audience has changed rapidly: they now play a more active role in the communication process than in the past due to the massive use of digital channels.

Question 31

One-way communication process

Answer 31

Message can be seen / understood by the receiver, but the receiver can’t answer immediately in a way that is understood/heard by the sender = no receiver response (e.g. advertisement in a print magazine)

Question 32

Two-way communication process

Answer 32

Message can be seen / understood by the receiver, and the receiver can answer/share feedback immediately in a way that is understood/heard by the sender (e. g. social media)

Question 33

Advantages of PR

Answer 33

High credibility = Authentic content; third-party endorsement; as PR is unpaid and comes from news media as an objective source it is perceived as much more credible than paid advertising Ability to catch buyers off guard = Prospects, who do avoid salespeople & advertisements, can be addressed and reached Dramatization = A company / product can be manifested in a minds by storytelling

Question 34

Search Engine Marketing

Answer 34

SEM stands for the promotion of websites and online content by increasing their visibility in search engine results pages.

Question 35

Google Ads – KPI‘s

Answer 35

--> Impressions = Number of times your ad was displayed --> Clicks = Number of clicks your ad generated --> Click Through Rate = Relation between clicks to impressions --> CPC = Costs per click / CPM = Costs per mille --> Conversion Rate = Relation between conversions to clicks

Question 36

Viral marketing

Answer 36

A method with the intent to encourage consumers to share a company’s (unconventional) message via the internet

Question 37

Why marketing relevant to media?

Answer 37

- DIALOGUE & FEEDBACK - DIFFERENTIATION FROM COMPETITORS - COMMUNITY BUILDING & MAINTAINING RELATIONSHIPS WITH AUDIENCE & FOSTER ENGAGEMENT -ADRESSING TARGET AUDIENCE -MAKING PROFIT

Question 38

Advantages of Public Relations

Answer 38

From a business perspective, the greatest advantage to public relations is that of cost; public relations is not a paid form of promotion. Because public relations are unpaid and come from an objective source—news media—they are perceived as much more credible than paid forms of advertising. In fact, it is the most credible and persuasive form of promotion. Public relations has the distinct opportunity to provide a positive brand image to audiences.

Question 39

Disadvantages of Public Relations

Answer 39

Unlike other tools in the promotion mix, marketers have no direct control over public relations. In other words, the media controls how the organization is portrayed, when—or if—the coverage will appear, and where it will be placed. This is why press relations is such an integral part of the public relations strategy. It is ultimately the decision of the media if it will publish a story. A story that is buried deep in a newspaper’s pages or a blur during a news program may not create the results marketers intended. Public relation activities can be difficult to measure.

Question 40

Promotion mix

Answer 40

The set of strategies marketers use to communicate with their customers. The full set of strategies that combine to make up the promotion mix include advertising, sales promotion, personal selling, public relations, direct marketing, and Internet/digital marketing. Each of these methods is intended to produce different results when used. Combining the elements creates an overall integrated message designed to reach consumers at various points in their path to purchase. Marketers call this integrated messaging integrated marketing communications.