115.116 Exam Prep

Q10: B) Research Approaches

> Casual Research - Test hypothesis about cause and effect relationships > Descriptive Research- Describe market potential or demographics and attitudes > Exploratory Research - Gather preliminary info that will help define problems and suggest hypothesis.

Q5: A) Four Major Characteristics that Influence Consumer Behaviour

1. Culture - culture, religion 2. Social - membership groups, family, reference groups 3. Personal - age, economic, lifestyle, personality, occupation 4. Phycological - motivation, attitude

Q3: B) Eight Steps in the Product Development Process

1. Idea Generation - Identify Ideas via Internal idea sources (employees), External Idea Sources (Suppliers, Competitors, Consultants, Customer feedback) and Crowdsourcing 2. Idea Screening - Evaluate and choose most promising (Real? Win? Worth it?) 3. Concept Development and Testing - Written up detailed version of product idea - Tested with sample target audience 4. Marking Strategy Development - Design marketing strategy 5. Business Analysis - Analyse Sales, Costs and Profit (Financial Attractiveness) 6. Product Development - Research & Development - Turn into a workable product 7. Test Marketing - Introduce product to realistic setting 8. Commercialization - Introduce product to the Market.

Q1: C) Three Levels of Service

1: Core Customer Value - The core, problem solving benefits or services the consumer seeks. 2: Actual Product - Product & Service Features, Design, Quality, Brand and Packaging 3: Augmented Product - Additional Services and Benefits around the actual product

Q10: A) Four Steps in the Marketing Research Process

1: Defining the Problem and Research Objectives 2: Developing a Research Plan for Collecting Information - determine info needed and collect primary and secondary data 3: Implementing the Research Plan - Collect and Analyse the Data 4: Interpret and Report the Findings

Q4: C) Advantage and Disadvantage of IMC Tools

> Advertising: Advantage - can reach large audiences, shows wealth and so people are more trusting. Disadvantage - Expensive, Impersonal, one way communication >Personal Selling: Advantage - Personal interaction, relationships Disadvantage - Costly > Sales Promotion: Advantage - sales attract attention, quick response Disadvantage - short lived, not as affective in building relationships > Public Relations: Advantage - Trustworthy in the minds of consumers, dramatization Disadvantage - > Direct and Digital Marketing: Advantage - normally directed to specific person, Immediate and customized, quick and interactive, relationships

Q6: B) Five Sustainable Marketing Principles

> Consumer Orientated Marketing - View and organize its marketing activities from its consumers point of view. (sense, serve and satisfy) > Customer Value Marketing - Put most of its resources into customer value building marketing investments (build long term relationships) > Innovative Marketing - Seek real product and marketing improvements > Sense of Mission Marketing - define its mission in social terms rather than product terms (core product) > Societal Marketing - Make marketing decisions by considering customer wants, the organisations requirements and long term interests of consumers and society (Deficient, Pleasing, Salutary & Desirable Products)

Q6: A) Consumerism and Environmentalism

> Consumerism: A movement for the protection of the consumer against useless, inferior, dangerous and misleading goods. eg misleading ads with photoshopped products > Environmentalism: A movement to control pollution and protect the environment, plants and animals. eg plastics

Q8: B) Other Pricing Methods

> Customer Value Pricing - Buyers perceptions of value > Competition Based Pricing - Sets prices based on competitors pricing, strategy, costs and marketing efforts

Q7: C) Main Types of Segmentation Variables

> Geographical - Region, City Size, Climate > Demographic - Age, Income, Occupation, Life Cycle, Religion, Nationality > Psychographic - Status, Values, Personality >Behavioral - Loyalty Status, Purchase Occasion, Benefits Sought, Usage Rate, Readiness Stage

Q1: A & B) Four Key Characteristics of Services

> Intangibility - Cannot be seen, touched, heard or smelt before purchase > Inseparability - Cannot be separated from its providers > Variability - Service quality varies, depends on who provides them and where, when and how. > Perishability - Cannot be stored for later us

Q9: A) Growth Strategies: Product/Market Expansion Grid

> Market Penetration - Growth by increasing sales of current product without changing the product > Market Development - Identifying and developing new market segments for current products > Product Development - Growth by offering modified or new products to current market segments > Diversification - Growth by starting up or acquiring businesses outside the companies current products and markets.

Q7: A) Market Segmentation, Market Targeting and Positioning

> Market Segmentation - Grouping Customers into groups of buyers based on their needs, characteristics and behaviours > Market Targeting - Evaluates the market segments to determine the most profit and capture the greatest customer value > Market Positioning - Sets the product apart from competitors in the minds of consumers

Q8: C: Internal and External Factors that Affect Pricing Decisions

> Marketing Strategy, Objectives and Mix - Price only one part of the marketing mix > Organisational Considerations - management must decide who makes pricing decisions (management, pricing departments) > The Market and Demand - Economics. > Other - Government, social concerns

Q10: C) Primary Data Collection Methods

> Observational - Observing relevant people > Survey - asking people questions about their knowledge, attitudes, preferences and buying behavior > Experiment - Selecting groups - different treatments and controlling factors - check for difference in responses. Contact methods: > Mail, phone and personal interviewing > Online marketing research > Sampling Plan Instruments: > Questionnaires > Mechanical Instruments

Q2: C) Unethical and Annoying Direct or Digital Marketing Practices

> Outbound Telemarketing > Spam > Pop-up Ads > Cold Calling

Q2: A) Methods of Interacting with Consumers Online

> Social Media > Search Engine Optimisation > Website > Email

Q8: A) Cost Based Pricing

Sets pricing based on costs for producing, distributing, and selling the product plus a fair rate of return for its efforts and risk

Q4: A) IMC Tools

Ties together all the companies messages (same look, feel and message in all types of communication) > Personal Selling > Public Relations > Direct and Digital Marketing > Sales Promotion > Advertising

Q3: A) Crowdsourcing

When a company invites a specific group of people or general public to participate in the product development process. Such as surveys, idea and design participation, competitions etc