Paper 2: Lesson 3 Marketing Mix

Question 1

What are the Macro factors affecting prices?

Answer 1

1. Political Stability
2. Economic Situation
3. Social
4. Technological

Question 2

What are the Micro factors affecting prices?

Answer 2

1. Condition, Layout & Design
2. Location
3. Size, Shape and Frontage
4. Height and View
5. Amenities: MRT/Food Centre etc.

Question 3

What are the 5 Ps in the marketing mix?

Answer 3

1. Product
2. Price
3. Place (distribution)
4. Promotion
5. People

Question 4

What does Market Segmentation mean?

Answer 4

It is the process of defining submarkets within an overall market.

Question 5

What are the 4 categories of Market Segmentation?

Answer 5

1. Profile (Demographics/Life stage)
2. Geography (North/south/east/west)
3. Psychological (Lifestyle - certain race prefers certain town)
4. Behavioral (Past purchase/usage patterns/media channels used)

Question 6

What is Target Segmentation - Differentiated Marketing?

Answer 6

A marketing process that showcases the differences between products.

*Targets multiple distinct segments

Question 7

What is Target Marketing - Concentrated marketing?

Answer 7

A strategy that targets very defined and specific segments (e.g High net worth individuals)

e.g. of Concentrated marketing:
Orchard properties > High net worth clients / CEO, MDs etc.

*Focuses on specific single niche segment

Question 8

What is undifferentiated marketing?

Answer 8

Ignores the differences within a market and attempts to appeal to the whole market with a single basic product line and marketing agency.

Question 9

What are the steps/stages to Consumer buying decision?

Answer 9

1. Problem/Need recognition
   - Consumer identifies a need n think of a product to meet this need.
2. Information Search
   - Searches abt the product which would satisfy the need
3. Evaluation of Alternatives/
   - Evaluates and shortlist products best suited
4. Purchase
   - 2 things that may change purchase decision > what other peers think? > any unforeseen circumstances
5. Post Purchase Behaviours
   - After the purchase, might go through post-purchase dissonance where consumer feels that buying other product would be better.

Question 10

What are the factors of Buyer’s Behavior?

Answer 10

1. Cultural Factors: Culture/Subculture/Social Class
2. Social Factors: Reference groups/family/status
3. Personal Factors: Life cycle stage / occupation/economic/situation/lifestyle/personality
4. Psychological Factors:
   Motivation/perception/learning/beliefs n attitude

Question 11

What are the qualities in prospective lead?

Answer 11

1. Ability to buy/sell/rent a ppty
2. Authority: Is the client the decision maker?
3. Inclination to purchase: Is the client ready/likely to purchase
4. Budget: Ensure that client can meet loan requirements.

Question 12

What is a Listing Contract?

Answer 12

A contract between Estate Agent and Clients (covered in the standard 8 forms by CEA)

• Right and Responsiblities of Estate Agent & Clients
• Commission Payable

Question 13

What are the 3 types of Listing?

Answer 13

1. Exclusive Estate Agency Agreement
   - RES has exclusive rights during specified time
2. Sole Agency Listing
   - Only appointed EA and its RES can conduct the sales. Owner can also conduct sale themselves.
3. Open Listing (Multiple EAs)
   - Successful RES will get the commission.

Question 14

What are the methods of sale?

Answer 14

1. Private Treaty
   - Mutual agreement between parties.
2. Tender (Open - Public / Close - Confidential)
3. Auction
   - Compete in an open setting
   - Can withdraw if Reserve price not met.
   - Gavel knocked, ppty sold and sale contract signed with immediate 10% deposit.

Question 15

What are some reasons for sale?

Answer 15

Upgrade/Downgrade
Bankruptcy
School/Work nearby
Mortgagee/Bank Sale
Proximity to Family
Profits/Cashout/Retirement
Common Properties: Old condition
Divorce
Enbloc

Question 16

What is the Consumer Protection (Fair Trading) Act? (CPFTA)

Answer 16

This is designed to empower consumers to seek civil redress against unfair trade practices in Singapore.

• Claims against RES for service rendered.

Question 17

What is considered UNFAIR practices? (in consumer transaction)

Answer 17

• To do or say anything, or omit to do or say anything, if as a result, a consumer might be reasonably be misled/decieved.
• To make a false claim
• To take advantage of a consumer if the supplier knows or tough to reasonable know that the consumer:
  > is not in the position to protect his interests (e.g. mentally handicap)
  > is not reasonably able to und the character/nature/language or effect of the transaction or any matter related to the transaction
• To commit any of the unfair practices specified in the second schedule of CPFTA.

Question 18

What is the time limit for filing claims under CPFTA? (Contracts entered on or after 15 April 2009)

Answer 18

2 years from
- Occurrence of the last material event on which the claim is based
OR
- Earliest date of discovering the unfair practice, whichever is later.

Question 19

What is the maximum claim under CPFTA?

Answer 19

$30,000.

Question 20

Explain “Product” in the marketing mix.

Answer 20

This refers to the tangible or intangible goods and services offered by a company.

Question 21

Explain “Price” in the marketing mix.

Answer 21

This involves setting the right price for the product, considering factors like cost of production, competitor pricing, and customer perception of value.

Question 22

Explain “Place” in the marketing mix.

Answer 22

(Distribution)
This refers to how the product is made available to customers.

Question 23

Explain “Promotion” in the marketing mix.

Answer 23

This involves communicating the value proposition of the product to the target audience, using various methods like advertising, public relations, sales promotions, and direct marketing.