MGT301 Quiz Set 2

MGT 301 Short Notes: · 4 P’s of Marketing · Product, Price, Place, Promotion · 4 C’s

Customer satisfaction, Customer Cost, Convenience, Communication

Topic 7 Customer Driven Marketing Strategy: · Four pillars of organization strategies: · Select customers to serve

1. Segmentation
2. Targeting

Decide owner value proposition

3. Differentiation
4. Positioning

Segmentation: Geographic Segmentation: Geographic segmentation divides the market into different geographical units such as nations, regions, states, provinces, or cities. Demographic Segmentation: Demographic segmentation is a process of dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. Psychographic Segmentation: Psychographic segmentation is a process of dividing a market into different segments based on social class, lifestyle, or personality characteristics. Behavioral segmentation: Behavioral segmentation is a process of dividing the market into groups based on their knowledge, attitudes, uses, or responses to a product, occasions, benefits sought, user status, usage rate and loyalty status.

There are some types of target market strategies which are:

Undifferentiated/Mass Marketing: Target the whole market with one offer and focuses on common needs rather than what’s different. You can say this strategy as “one-size-fits-all”. Differentiated/Segmented Marketing: Targeting several different market segments and designing separate offer for each and goal is to achieve higher sales and stronger position. Concentrated/Niche Marketing: In niche marketing a firm focuses on one specialized part of a segment. Micro Marketing: Tailoring products and marketing programs to suit the needs and wants of specific individuals and local customers, also called tailor made marketing. Local Marketing: Design different offering for different localities such as a brand has different offering/assortment in posh area and same branch has different offering/assortment in low income level area. The place that organization wishes to have in the mind of customers, distinct and better than the competitors is known as product position. The process by which such position is attained is known as positioning.

Competitive advantage:

is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

Some options for differentiation are given below;

1. Product Differentiation (Functionally different from others)
2. Service Differentiation (After sales services are different from others)
3. Channel Differentiation (Online sale/purchase of products)
4. People Differentiation (Staff/employee’s style of dealing with customers is different from others)
5. Image Differentiation

Value proposition is the full mix of benefits upon which a brand is positioned. It is the answer to the customer's question " Why should I buy your brand?"

Topic 8 Product, Brand & Services:

Consumption of a product creates an experience. Product experience is the overall value of a product or service to customers.

There are three levels of products.

1. Core customer value. (Core Benefit or Use)
2. Actual Product. (Product)
3. Augmented product. (Additional services)

Two types of products:

Consumer Products & Industrial Products

Types of Consumer Products:

The products used for personal consumption are known as consumer products.

Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort. Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style. Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

Unsought products: are consumer products that the consumer does not know about or knows about but does not normally think of buying.

Types of Industrial Products:

Products purchased for further processing or for use in conducting business are known as industrial products.

1 The Capital items are industrial products that aid in the buyer’s production or operations. 2Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users 3Supplies and services include operating supplies, repair and maintenance items, and business services

Organizational marketing: It consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization.

Person marketing: and it consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people. Place marketing: which consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places. Social marketing: which consists of the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society

There are three levels of product decisions.

1 Individual product decisions include five types of decisions which are product attributes, branding, packaging, labeling and support Services. 2 Product line decisions include product length which indicates the number of items in the product line. Line stretching is another concept of product line decision in which an expanding strategy by a company where new products are launched in the same product line but beyond the current product range with some additional or different features. Line filling is a business strategy in which we increase the numbers of products in an existing product line to take advantage of marketplace gaps and reduce competition. 3 Product mix decisions: consist of all the products and items that a particular seller offers for sale. Width is the number of different product lines carries by the company. Length is the total number of items in the product line.