Understanding Living Standards Measure (LSM)

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Questions and Answers

What is the powerful marketing tool highlighted in the text?

Marketing Buzz

What is the likelihood of making a sale when a new customer enters a business?

5-20%

How much more does it cost to acquire a new customer compared to retaining an existing one?

6-7 times more

How many people will a satisfied customer typically share their positive experience with?

4-6 people Signup and view all the answers

How many people will an unhappy customer typically share their negative experience with?

9-15 people Signup and view all the answers

What is the first step in formulating a marketing strategy as outlined in the text?

Conduct an environmental scan Signup and view all the answers

What role does strategic planning play in the overall performance of a business?

It drives the overall performance by formulating a vision and translating it into a mission. Signup and view all the answers

How does the perception of a brand affect customers' view of the business?

It creates their perception of the business. Signup and view all the answers

What is the strategic role of marketing according to the text?

Creating and supporting a strong and positive brand identity through a well-planned marketing strategy. Signup and view all the answers

What are the key components of a marketing strategy according to the text?

Vision, Mission, Formulating the Strategy, Marketing the product, Evaluating the strategy. Signup and view all the answers

What are the approaches to a marketing strategy mentioned in the text?

Focus on marketing the overall brand, Focus on marketing the product/service offering. Signup and view all the answers

Why is it important to determine the USP (Unique Selling Proposition) in a marketing strategy?

To differentiate the product/service offering from competitors and highlight its unique benefits. Signup and view all the answers

Define the 7P's of Marketing briefly.

Product, Price, Place, Promotion, People, Process, Physical Evidence Signup and view all the answers

What is the importance of conducting Market Research in relation to Product?

Identify customer needs/wants, add value to the customer, monitor consumer behavior, keep up with changes/trends in society. Signup and view all the answers

Explain the significance of Price in the 7P's of Marketing.

Pricing must be competitive, reflect the value of the product/service, and consider profit margins. Signup and view all the answers

How does Place play a role in the marketing strategy?

Determining where and how the product/service will be available to customers, considering convenience and accessibility. Signup and view all the answers

Why is Promotion important in marketing?

Promotion helps in creating awareness, communicating benefits, and persuading customers to make a purchase. Signup and view all the answers

Explain the significance of People in the 7P's of Marketing.

Focus on understanding and meeting customer needs, providing excellent customer service, and building relationships. Signup and view all the answers

What must be avoided at all times in advertising?

Incorrect information Signup and view all the answers

Why is it important for marketing to be seen as an investment rather than an expense?

Marketing must be seen as an investment because it contributes to the future success of the business. Signup and view all the answers

What type of message is advertising according to the text?

Impersonal message aimed at a mass audience Signup and view all the answers

What is one advantage of sales promotion mentioned in the text?

Instant appeal persuades consumer to make an impulsive purchase Signup and view all the answers

What is a potential disadvantage of too many sales promotions?

Customers may perceive it as desperation by business to make a sale Signup and view all the answers

What is crucial for a marketing campaign to be memorable according to the text?

Unique and memorable signs such as catchy phrases, slogans, jingles, and themes Signup and view all the answers

Why do retailers and consumers prefer direct distribution from the manufacturer?

The products will be cheaper. Signup and view all the answers

What are some of the auxiliary services that intermediaries are not providing in direct distribution?

Transport, insurance, storage, resorting of products, or financing. Signup and view all the answers

What is one advantage for the manufacturer in indirect distribution?

Manufacturer can use the capital saved by not acting as a distributor. Signup and view all the answers

What is a key aspect that advertising concepts should be evaluated on?

Is it ENGAGING? Is it CREDIBLE? Does it create a LASTING impression? Lead to ACTION… Is the message RELEVANT to the consumer? Is their INTEGRATION with other promotional activities? Is it in line with the BRANDING of the business? Signup and view all the answers

Why might a geographically scattered target market make distribution expensive?

Geographically scattered target markets can make distribution expensive due to the need for wider reach and logistics. Signup and view all the answers

What are some examples of promotion methods mentioned in the text?

Branding, advertising, public relations, personal sales, special offerings, exhibitions, publicity. Signup and view all the answers

Study Notes

Marketing Strategy

Word-of-mouth is a powerful marketing tool
There is a 15% likelihood of making a sale when a new customer enters a business
It costs 5-7 times more to acquire a new customer compared to retaining an existing one

Customer Experience

A satisfied customer typically shares their positive experience with 5-6 people
An unhappy customer typically shares their negative experience with 9-10 people

Formulating a Marketing Strategy

The first step in formulating a marketing strategy is to identify the target market
Strategic planning plays a crucial role in the overall performance of a business

Brand Perception

The perception of a brand affects customers' view of the business

Marketing Role

The strategic role of marketing is to identify and meet customer needs profitably

Marketing Strategy Components

Key components of a marketing strategy include the target market, marketing mix, and budget

Marketing Approaches

Marketing approaches include segmentation, targeting, and positioning (STP)

Unique Selling Proposition (USP)

Determining the USP is crucial to differentiate a product from competitors

7P's of Marketing

The 7P's of Marketing are Product, Price, Place, Promotion, People, Process, and Physical Evidence

Market Research

Conducting Market Research is crucial to understand customer needs and preferences in relation to Product

Pricing Strategy

The significance of Price in the 7P's of Marketing is that it affects customers' perceptions of value and quality

Distribution Strategy

Place plays a crucial role in the marketing strategy by making products accessible to customers
Direct distribution from the manufacturer is preferred by retailers and consumers as it reduces costs and increases efficiency
Intermediaries do not provide auxiliary services such as after-sales service and maintenance in direct distribution
Indirect distribution is advantageous for the manufacturer as it increases market reach and reduces logistics costs

Promotion Strategy

Promotion is important in marketing as it informs and persuades customers
Advertising is a form of Promotion that sends a message to customers
One advantage of sales promotion is that it increases sales volume
A potential disadvantage of too many sales promotions is that it can lead to customer fatigue
Consistency is crucial for a marketing campaign to be memorable

Advertising

Advertising should be seen as an investment rather than an expense
Effective advertising sends a clear and concise message
One approach to evaluate advertising concepts is to assess their ability to differentiate the product from competitors
Promotional messages should be creative and attention-grabbing to avoid being ignored

Distribution Challenges

A geographically scattered target market can make distribution expensive due to increased logistics costs

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Description

Explore the unique selling proposition and marketing strategies associated with LSM, along with its link to various retail brands and loyalty programmes. Learn about the importance of utilising technology to enhance product or service quality.