30 Questions
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
How many people will an unhappy customer typically share their negative experience with?
9-15 people
What is the first step in formulating a marketing strategy as outlined in the text?
Conduct an environmental scan
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.
How does the perception of a brand affect customers' view of the business?
It creates their perception of the business.
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.
What are the key components of a marketing strategy according to the text?
Vision, Mission, Formulating the Strategy, Marketing the product, Evaluating the strategy.
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.
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.
Define the 7P's of Marketing briefly.
Product, Price, Place, Promotion, People, Process, Physical Evidence
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.
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.
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.
Why is Promotion important in marketing?
Promotion helps in creating awareness, communicating benefits, and persuading customers to make a purchase.
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.
What must be avoided at all times in advertising?
Incorrect information
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.
What type of message is advertising according to the text?
Impersonal message aimed at a mass audience
What is one advantage of sales promotion mentioned in the text?
Instant appeal persuades consumer to make an impulsive purchase
What is a potential disadvantage of too many sales promotions?
Customers may perceive it as desperation by business to make a sale
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
Why do retailers and consumers prefer direct distribution from the manufacturer?
The products will be cheaper.
What are some of the auxiliary services that intermediaries are not providing in direct distribution?
Transport, insurance, storage, resorting of products, or financing.
What is one advantage for the manufacturer in indirect distribution?
Manufacturer can use the capital saved by not acting as a distributor.
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?
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.
What are some examples of promotion methods mentioned in the text?
Branding, advertising, public relations, personal sales, special offerings, exhibitions, publicity.
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
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.
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