Unit 7- Marketing Management

Question 1

What does marketing refer to?

Answer 1

Marketing refers to all activities the organisation does to promote & sell products & services

Question 2

What does the marketing environment consist of?

Answer 2

The marketing environment consists of actors and forces that affect a company’s capability to operate efficiently in providing products & services to its customers. It includes 3 levels: Macro-environment, Micro-environment & Internal/Company Level

Question 3

What does the macro-environment consist of?

Answer 3

Economic, Socio-cultural, Technological, Political Legal & Environmental Ecological Physical

Question 4

What is environmental scanning?

Answer 4

Environmental scanning is the process of monitoring & analysing the marketing environment of a company & creates fit between company strategy, operations & environment

Question 5

What does the micro-environment consist of?

Answer 5

Suppliers, Distributors, Customers, Competitors & Strategic Partners

Question 6

What do companies have most influence & control over?

Answer 6

Companies have most influence and control over their micro-environment

Question 7

What does the microenvironment also include?

Answer 7

The microenvironment includes the actors in the firm’s immediate environment that influence its capabilities to operate efficiently in its chosen market

Question 8

What are the key actors in a market?

Answer 8

competitors, customers, suppliers, distributors, potential entrants & potential strategic partners

Question 9

What is the final level of marketing environment?

Answer 9

Final level of marketing environment is the Internal level which entails employees, materials, infrastructure, company policy, company assets & cash flow

Question 10

What is the key structure of internal level?

Answer 10

Key structure of internal level: accounts & finance, HRM, operations & marketing

Question 11

What are Porter’s 5 forces?

Answer 11

rivalry among existing competitors, threat of new entrants, bargaining power of buyers, threat of substitute products & bargaining power of suppliers

Question 12

What is SWOT analysis?

Answer 12

SWOT Analysis evaluates the strategic position of a business by identifying its strengths & weaknesses (internal), opportunities & threats (external).

Question 13

What are conversion & marketing strategies?

Answer 13

converting strengths to weaknesses, converting threats to opportunities & transforming strengths to opportunities

Question 14

What is consumer behaviour?

Answer 14

Consumer behaviour is the study of the processes involved when individuals purchase, use services etc. to satisfy needs & desires.

Question 15

What are the dimensions of buyer behaviour?

Answer 15

why do they buy (needs, desires), how do they buy (distribution channels etc.), when do they buy (frequency, seasonal) & what is their choice criteria (consumer decision-making)

Question 16

What is a buyer centre (decision-making unit)?

Answer 16

a group involved in the buying decision: initiator (considers a purchase), influencer (persuades others to buy ), decider (power & financial authority to make ultimate choice), buyer (conducts transaction) & user (consumer of the product)

Question 17

What is reverse-socialisation?

Answer 17

children influence parents clothing consumption. Parents act as gatekeepers for inappropriate choices

Question 18

What is the decision making process for consumers?

Answer 18

1. problem recognition, 2.information search, 3.evaluation of alternatives, 4.purchase & 5.post-purchase evaluation of alternatives

Question 19

What are the choice criteria/determinant attributes for consumers?

Answer 19

technical (reliability, durability, performance), economic (price, residual value, lifestyle costs), social (status, social belonging, fashion) & personal (self-image, ethics, emotions)

Question 20

What are factors influencing consumer behaviour?

Answer 20

buying situation, social influences, personal influences & shopping environment

Question 21

What are low-involvement products?

Answer 21

repeat purchases, passive receiver of information, decision based on habits etc.) (low risk)

Question 22

What are high-involvement products?

Answer 22

beliefs measured against others perceived attitudes, active information seeker, decision based on well-reasoned decision (high risk)

Question 23

What is cognitive dissonance?

Answer 23

post-purchase concerns

Question 24

What is segmentation?

Answer 24

Segmentation is the identification of individuals or organisations with similar characteristics that have significant implications for the determination of marketing strategy by dividing a diverse market into a number of smaller, more similar sub-markets that better serve each sub-market effectively & profitably

Question 25

What are the benefits of segmentation?

Answer 25

differentiation, target market, tailored marketing mix (meeting specific customer needs more effectively) and identify opportunities & threats

Question 26

What is the process of segmentation?

Answer 26

the disaggregated market, the segmented market & the target market

Question 27

What are the 4 methods of segmentation?

Answer 27

demographic (age-based, gender, education, occupation, relationship-status, household size, income, nationality, race, religion), geographic (location, urbanicity, size, density, climate, language), psychographic (personality, lifestyle, activities, interests, hobbies, habits, opinions, cultural values & norms) & behavioural (benefits sought, product use, decision process)

Question 28

What are the 4 p's of the marketing mix controlled by managers?

Answer 28

4 p's of marketing mix controlled by managers: product, price, promotion & place to satisfy target market's needs (extended marketing mix: physical, process & people 7p's)

Question 29

What is a brand?

Answer 29

a brand is a name, term, sign, symbol or design, intended to identify the goods or services of one seller from their competitors

Question 30

What do brands give products?

Answer 30

Brands give a product a distinctive identity through the creation of a name & design & can generate positive or negative associations and brand name meaning is built over time through communications

Question 31

What are brand types?

Answer 31

manufacturer brands (created by producers) & own-label brands (created & owned by distributors aka distributor brands and low-price supermarket own brands are called "fighter brands")

Question 32

What is brand equity?

Answer 32

Brand equity is a measure of the overall strength of a brand in the marketplace by adding tangible value to a company through resulting in sales & profits

Question 33

What is customer-based brand equity?

Answer 33

Customer-based brand equity resides in the minds of consumers & consists of brand awareness, associations, brand image, quality & loyalty

Question 34

What is proprietary-based equity?

Answer 34

Proprietary-based brand equity: company attributes that deliver value to the brand & consists of patents & channel relationships (with suppliers etc)

Question 35

What is brand positioning?

Answer 35

Brand positioning is the process of creating a unique marketplace and position involves selecting the right target market & creating differential advantage

Question 36

What does brand positioning include?

Answer 36

brand domain, brand reflection, brand personality, brand values, brand assets & brand heritage

Question 37

What is the criteria of corporate social performance?

Answer 37

economic (making profit), legal (obey the law), societal (do what is right) & philanthropic (contribute to community)

Question 38

What is a simple model of ethical decision making?

Answer 38

individuals factors (stages of moral development, ego strength, locus of control) & contextual factors (work-group norms, incentives, rules & regulations) - Feedback Loop