Questions Flashcards
(7 cards)
How would you define the four levels of a product in the purchase of a mobile phone?
The core product compromises the fundamental benefit of the product that makes it valuable. For a mobile phone, the core benefit is reliable, accessible communications.
The expected product describes those attributes that actually deliver the benefit that forms the core product. For a mobile phone, an expected product could be a conveniently sized phone with easy-to read screen and keypad.
The augmented product includes a bundle of benefits that the buyer may not require as part of their basic fulfilment of their needs. For a mobile phone, the augmented product may include access to a variety of downloadable apps, GPS maps, camera/video etc.
The potential product compromises all possibilities that could become part of the expected or augmented product. For a mobile phone, the potential product could include digital television.
A product can be tangible, intangible or a combination of both.
A tangible product is a good that is physical, you can see, touch, taste and smell. For example, toothpaste. Intangible offerings are usually services, they cannot be touched or tasted and does not involve ownership like a tangible product does. For example, haircuts are a tangible service because you experience them.
Describe the factors in the marketing environment.
The marketing environment refers to all internal and external forces that affect a marketer’s ability to create, communicate, deliver and exchange offerings of value. The internal environment refers to the organisation itself and the factors that are directly controllable by the organisation. The micro environment comprises the forces and factors at play inside the industry in which the marketer operates. Micro-environmental factors affect all parties in the industry, including suppliers, distributors, customers and competitors. The macro 44environment comprises the larger-scale societal forces that influence not only the industry in which the marketer operates, but all industries. Macro-environmental factors include political forces, economic forces, sociocultural forces, technological forces, environmental forces and legal forces.
What aspects of competitors operations must an organisation understand as a part of its micro-environmental analysis.
To succeed, marketers must ensure their offerings provide their target market with greater value than their competitor’s offerings. Marketer’s seek to understand their competitor’s marketing mix, sales volumes, sales trends, market share, staffing, sales per employee and employment trends. An organisation must understand what type of market competition they are competing again e.g. pure competition, monopolistic competition, oligopoly, monopoly and monopsony. The marketer also needs to identify and understand which level of competition they are facing such as total budget competition, generic competition, product competition or brand competition. A better description of competition can place marketers in a better position to create, communicate, deliver and exchange offerings.
Explain the key differences between quantitative data and qualitative research.
Quantitative research generates data that can be represented numerically. It is often collects data by asking questions about ‘how many’, and ‘how often’ data via online, telephone, mail or in person surveys.
Qualitative data is not usually represented numerically. Indeed, the whole purpose of qualitative research is to gain richer and deeper information than can be obtained by quantitative techniques. Qualitative data will usually be in the form of interview transcripts, video recordings, observation record sheets and lengthy narrative responses to questions and focus groups. Subjective views.
It is used to gain an understanding of underlying reasons, opinions, and motivations. It provides insights into the problem or helps to develop ideas or hypotheses for potential quantitative research.
What are 3 types of reference groups?
Membership reference groups - groups to which the individual belongs individuals will commonly identify strongly with membership reference groups and take on the values, attitudes and behaviours that define members of the group. E.g. my favourite artist is Rihanna, therefore I’d consider myself to belong to that group of people who listen to her music. Also, I have a strong interest in festivals, thus i adopt the music, and clothing of that group.
Aspirational reference groups - groups of which the individual wish to be considered a member.
Dissociative reference groups - groups with which an individual does not wish to be associated or which the individual may wish to leave.
Use an example to demonstrate your understanding of a differentiated targeting strategy.
A marketing approach that involves developing a different marketing mix for each target market segment. For example, Westpac offers a complete range of financial services designed to meet the needs of all consumer and business and government market segments. Or, Clarins’ sells different products targeted at different age groups. At the same time, it should be recognised that a differentiation strategy also entails higher costs. Achieving high profits through this strategy generally requires a combination of higher retail prices, high volume sales, strong market share and strong customer loyalty.
