8 Key Questions_Pods 1 & 2 PDF

8 Key Questions_Pods 1 & 2 ❑ Q1. What must companies do to survive in a rapidly changing environment? ❑ Q2. What is marketing, and what are the main goals of marketing? ❑ Q3. What do you understand by a Situation Analysis ? ❑ Q4. Describe the main stages of the Marketing process an...

8 Key Questions_Pods 1 & 2 ❑ Q1. What must companies do to survive in a rapidly changing environment? ❑ Q2. What is marketing, and what are the main goals of marketing? ❑ Q3. What do you understand by a Situation Analysis ? ❑ Q4. Describe the main stages of the Marketing process and the questions each stage corresponds to ❑ Q5. What is a PESTEL analysis, and what does it analyse? ❑ Q6. An essential step of the Pestel is the diagnosis. What does this refer to? ❑ Q7. What are the key pitfalls of a macro analysis? ❑ Q8. What type of information sources should you consult and why?  8 Key Q&A_Pod 1 ❑Q1. What must companies do to survive in a rapidly changing environment? Companies must always evolve, innovate and differentiate to survive in a rapidly changing environment ❑ Q2. What is marketing, and what are the main goals of marketing? Marketing is the science & art of exploring creating and delivering value to satisfy the needs of a target market at a profit (definition) _ identify, satisfy, retain consumers/customers ❑Q3. What do you understand by a Situation Analysis ? A Situation Analysis looks at: ▪ External factors affecting the macro environment of a business → O or/and T ? ▪ Internal capabilities of the company → S or W (facing the environment) ▪ This Situation Analysis is often called a “SWOT“ analysis ❑ Q4. Describe the main stages of the Marketing process and the questions/concerns each stage corresponds to. Marketing process moves from Analysis (where are we now?) to corporate/company strategy (where do we want to go?) to marketing strategy & mix (how are we going to get there?) & evaluation of execution of strategy (does it work?)  8 Key Q&A Pod 2 ❑Q5. What is a PESTEL analysis, and what does it analyse? PESTEL is the tool to conduct a macro analysis ! It structures the analysis of external uncontrollable factors affecting the macro-environment of a given industry/sector: Political, Economic, Social, Technological, Ecological & Legal ones ❑ Q6. An essential step of the Pestel is the diagnosis. What does this refer to? After having identified these external forces, you diagnose each one as either Opportunity or/and Threat for the future development of the industry the company is operating in ❑Q7. What are the key pitfalls of a macro analysis? You must stay at macro level (big picture) – not to be confused with micro analysis ❑ Q8. What type of information sources should you consult and why? You must use reliable sources to increase your expertise, ensure your credibility and give evidence (proof) that your analysis is based on official facts & figures (not on assumptions or opinions!)  8 Key Questions_Pods 5 & 6 ❑ Q1_What do you understand by « Market Intelligence »? ❑ Q2_What is the starting point of « Market Intelligence » in terms of research? ❑ Q3_What is « Secondary Research », its advantages and when do you do it? ❑ Q4_What is « Primary Research », its advantages and when do you do it? ❑ Q5_What do you understand by the « Analysis of the Microenvironment »? ❑ Q6_When studying the « Market Structure » what type of information would you need to collect? ❑ Q7_What are the key Quantitative Indicators of a market? ❑ Q8_What would you do if you can’t find any data on your specific market?  8 Key Q & A_Pod 5: ❑ Q1_What do you understand by « Market Intelligence »? Market Intelligence is the practice of collecting and analysing external data about a specific market a company wishes to enter (also called Market Research) ❑ Q2_What is the starting point of « Market Intelligence » in terms of research? Market Intelligence focuses initially on secondary sources of information = sources already existing and published by other organisations (ex governments’ statistics, reports/data published by observatories, consulting companies…) ❑ Q3_What is « Secondary Research », its advantages and when do you do it? Secondary Research refers to picking up information that already exists. It also called « Desk Research » Quick, easy, cheap to collect But everyone can access to the information (freely or pay for it). Carefull about reliability (need official sources) You do it FIRST (before investing) ❑ Q4_What is « Primary Research », its advantages and when do you do it? Primary research is new research you perform on a specific topic. You design, implement and analyse yourself. (or entrust experts to do so) It is so slower, more expensive But, private (nobody else but you alone have the results/information). You do Primary Research 2nd, once you have done you Desk/Secondary Research  8 Key Q & A_Pod 6: ❑ Q5_What do you understand by the « Analysis of the Microenvironment »? Microenvironment relates to the study of: - The market itself = Key quantitative indicators + Market structure + Market attractiveness/growth potential /trends + Seasonality - The actors of Supply (competitors/distribution channels) - The actors of Demand (the consumer/end user of the product but also the one who decides, who buys/pays and influences) ❑ Q6_When studying the « Market Structure » what type of information would you need to collect? Market Structure : Level & form of competition + Accessibility/ease of entry + Type of business (B2B, B2C, C2C?) + Size & scope (mass or niche market?) + Dispersion of consumers (fragmented or concentrated?) + Types of distribution channels (physical stores? Ecommerce?) ❑ Q7_What are the key « Quantitative Indicators » of a market? Quantitative indicators: Sales (volume & value) and growth trends + Categories of products making up the market + Market share & evolution of competitors + Actual & potential demand + Penetration rate Note: detailed analysis of competitors is to be developed in the « Actors of Supply » Step, not at this stage. ❑ Q8_What would you do if you can’t find any data on your specific market? You will need to make you own predictions by combining several sets of data/different perspectives  8 Key Q & A_Pod 6: ❑ Q8_What would you do if you can’t find any data on your specific market? You will need to make you own predictions by combining several sets of data/different perspectives  8 Key questions_Pods 7 & 8 ❑ Q1_Is competition a threat? What are the pros & cons? ❑ Q2_Define Direct & Indirect competitors? ❑ Q3_What is competitor analysis? What do you include? ❑ Q4_What is the role of distributors & why do you need to understand them? ❑ Q5_Define actual and potential demand ❑ Q6_What roles can an individual play in a buying situation? ❑ Q7_What is an influencer? ❑ Q8_How do they exert their influence on social media?  8 Key Q & A_Pod 7 ❑ Q1_Is competition a threat? What are the pros & cons? Tough competition is a normal, healthy aspect of a market, & can push you to do better, but you must keep ahead, know who you are up against, & how they react ❑ Q2_Define Direct & Indirect competitors? Direct competitors are inter-product (same need served in same way); indirect competitors serve same need but in a different way (inter-segment) ❑ Q3_What is competitor analysis? What do you include? Competitors’ analysis looks at their key Strengths & Weaknesses relative to your own position. Typical criteria used to carry out this analysis are: Turnover, position on the market (leader, challenger, follower), market share, profit, resources (belonging to a large group?), geographical coverage, positioning (how they differentiate on the market), marketing mix (Product, Price, Place & Promotion which we will study 2nd sem)… ❑ Q4_What is the role of distributors & why do you need to understand them? Distributors get the products to the final consumers. It is essential to understand what channels exist and where customers would be expecting to find the product.  8 Key Q & A_Pod 8 ❑ Q5_Define actual and potential demand Demand is composed of Actual + Potential demand. Actual = existing customers; Potential = relative non consumers you need to prospect and persuade ❑ Q6_What roles can an individual play in a buying situation? Consumers may adopt different roles in a buying decision. Decider, buyer, end-user, influencer These may be the same or different individuals ❑ Q7_What is an influencer? Influencer = Any person who, by his reputation, image, social status, profession or life style, is able to recommend a company/brand/product ❑ Q8_How do they exert their influence on social media? Influencers often develop CONTENT which they publish on social media. This develops proximity to the consumers who turn to their « peers » for advice  8 Key questions_Pods 9 & 10 ❑ Q1_What are the main types of market research you know? ❑ Q2_Explain the Market research process ❑ Q3_Describe the main characteristics of Quantitative research ❑ Q4_Describe the main types of questions you would use in a quantitative questionnaire ❑ Q5_ Describe the main characteristics of Qualitative research ❑ Q6_ Describe the role of the animator/interviewer in qualitative research ❑ Q7_Name the main methods of Qualitative research and give a brief description of each ❑ Q8_How do you analyse qualitative data? What do you obtain?  8 Key Q & A_Pods 9 & 10 ❑ Q1_What are the main types of market research you know? Research can be primary or secondary, Then Qualitative or quantitative Then Ad hoc (i.e., one-off, tailored made to a specific research) or Continuous (repeatedly for the same variables, thus giving longitudinal results) Example: consumers or distributors via panel data) ❑ Q2_Explain the Market research process  8 Key Q & A_Pods 9 & 10 ❑ Q3_Describe the main characteristics of Quantitative research Quantitative = numerical, measure statistics, data to quantify; uses questionnaires, polls, surveys, needs sample size representative of total population, attention to respondents ❑ Q4_Describe the main types of questions you would use in a quantitative questionnaire Types of question: mostly closed questions, pre-determined answers (Dichotomous, MCQ (single/multiple) Likert scales, semantic scales Must include demographic questions & filter question ❑ Q5_ Describe the main characteristics of Qualitative research Qualitative = words, attitudes, verbatim, used to understand, explain, provide insights  8 Key Q & A_Pods 9 & 10 ❑ Q6_ Describe the role of the animator/interviewer in qualitative research Be neutral but probe, be encouraging, active listening, reformulating Needs preparation and direction ❑ Q7_Name the main methods of Qualitative research and give a brief description of each In-depth interviews (1 to 1) until saturation (structured or semi-structured); Focus group (6_10 people, animator, structure; direct observation and discussion ❑ Q8_How do you analyse qualitative data? What do you obtain? Looking for repetition of themes, words, verbatims  8 Key Q & A_Pods 9 & 10 Example of a word cloud. Links to create your own: http://tagcrowd.com/ https://www.nuagesdemots.fr/  8 Key Q & A_Pods 9 & 10 Example of verbatims related to a research on sugared cookies Verbatims are 'word for word' statements from your research participants which are significant of their feedback.  8 Key Q & A_Pods 11 & 12 ❑ Q1_What is Consumer behavior? What social sciences does it include? ❑ Q2_Why is it important to understand « Consumer behaviour »? ❑ Q3_What do you understand by « social factors »? (external factors) ❑ Q4_What do you understand by « situational factors »? (external factors) ❑ Q5_What do you understand by « personal factors »? (internal factors) ❑ Q6_What do you understand by « personality »? (internal factors) ❑ Q7_What do you understand by "psychological factors » (internal factors) ❑ Q8_ What are « attitudes » and how are they formed (internal) EXTERNAL & INTERNAL FACTORS INFLUENCING CONSUMER DECISIONS External Internal External  8 Key Q & A_Pods 11 & 12 ❑ Q1_What is “Consumer behavior”? What social sciences does it include? Consumer behavior : inter-disciplinary social science that blends elements from psychology, sociology, social anthropology, marketing & behavioural economics. ❑ Q2_Why is it important to understand « Consumer behaviour »? Understand, explain, anticipate/ predict consumer behaviour Brands must adapt their marketing activities to: Stand out of the crowd at every stage of the purchasing process to be the “lucky winner” at decision stage Use influencing factors to their advantage ❑ Q3_What do you understand by « social factors »? (external factors) Social factors include Culture (national identity, symbols, typical foods, sometimes typical religions), subculture (regional identities, ethnic origin) + Primary & secondary reference groups ❑ Q4_What do you understand by « situational factors »? (external factors) Situational factors are external stimuli – buying task and the marketing environment which influence the consumer during purchase  8 Key Q & A_Pods 11 & 12 ❑ Q5_What do you understand by « personal factors »? (internal factors) Personal factors: age, family lifecycle stage, income, status, lifestyle and values, personality ❑ Q6_What do you understand by « personality »? (internal factors) Personality= the ∑ of an individual’s enduring internal psychological traits that make him or her unique (Big 5=openness, agreeableness, neutroticism, extroversion, conscientiousness) ❑ Q7_What do you understand by « psychological factors » (internal factors) Psychological factors = relate to the workings of the mind or psyche on how we analyse information, perceive, learn and form attitudes ❑ Q8_ What are « attitudes » and how are they formed (internal) Attitudes result from 3 components/phases: o I think that (cognition) o I feel that (affect) o I will take action/buyor not (conation) They are good predictors of future behaviours (how far is the customer from buying our product/taking action in favor of a cause) Attitudes are slow to evolve  8 Key Q & A_Pods 11 & 12 ❑ Q6_What do you understand by « personality »? (internal factors) Empathy, altruism, Anxiety, worry, kindness, cooperation envy, jealousy  8 Key Q & A_Pods 13 & 14 ❑ Q1_What is a « need »? ❑ Q2_What is a « want »? ❑ Q4_How can marketers build on the idea of needs to define products? ❑ Q5_Name the different types of purchases and what characterises them ❑ Q6_What do you understand by « motivations and barriers »? ❑ Q7_What are the stages of the « consumers’s decision-making process »? What happens in case of a « routine » purchase? ❑ Q8_What is the « knowledge set » and the « consideration set »? Why does for a brand/product be part of both sets?  8 Key Q & A_Pods 13 & 14 ❑ Q1_What is a « need »? A need is a basic defficiency of something essential which drives the consumer to fill the need by purchasing a product. It is the driver / motivator ❑ Q2_What is a « want »? A want places specific, personal criteria on how a need must be fulfilled To illustrate: when we are hungry, food is a need. When we have a specific food item in mind, that item is a want.  8 Key Q & A_Pods 13 & 14 Q3_What is « Maslow’s hierarchy of needs » pyramid? Reach our full potential, accomplish all we can with our talents and abilities. Self-fulfilment may be expressed in different ways: artistic pursuits, parenting, athletics, professional goals… Need to feel good about oneself, to be respected and valued by others, to have a positive self-image Personal relationships with friends, family, human intimacy, interaction with groups (religious, sports teams… ) Financial security, heath and wellness, safety against physical harm (accidents and injury) Basic drives such as nutrition, shelter, clothing, temperature regulation ➔ Individuals fulfill the lower-ranked needs first and move up to higher ones  8 Key Q & A_Pods 13 & 14 ❑ Q4_How can marketers build on the idea of needs to define products? A need is a consumer’s desire for a product’s specific benefit, whether that be functional or emotional (e.g. dryness or sexiness for an anti perspirant) = Solution! ➔ A need is a problem to solve! ➔ From a company’s perspective = an opportunity to make business ! ❑ Q5_Name the different types of purchases and what characterises them Low involvement = simple/low risks & routine purchase High involvement = complex/high risks purchase Impulse purchase = unplanned Level of perceived risks for the consumer depends on: o The value/price of the product o The budget available o The level of experience o The frequency of purchase (linked to the previous point)  8 Key Q & A_Pods 13 & 14 ❑ Q6_What do you understand by « motivations and barriers »? Motivations = push to consume (emotional, rational, physical, psychological) Barriers = stop you from buying. Marketers need to fuel/support the motivations and remove the barriers  8 Key Q & A_Pods 13 & 14 ❑ Q7_What are the stages of the consumers’s decision-making process? What happens in case of a « routine » purchase?  8 Key Q & A_Pods 13 & 14 ❑ Q8_What is the « knowledge set » and the « consideration set »? Why does for a brand/product be part of both sets? Knowledge set = all the brands of the category I know/ I am aware of Consideration set = the ones I consider buying. Brands/products need to be « top of mind and top of heart » in order to be short-listed in the consideration set (also called the selection set)  8 Key Q & A_Pods 15 & 16 ❑ Q1_What do you understand by Segmentation? ❑ Q2_Why segment? ❑ Q3_What are the 4 main segmentation variables (briefly explain what they refer to) ❑ Q4_What is a segmentation table, and why establish one? ❑ Q5_What is targeting and why do it? What is the link to segmentation and positioning? What is a Persona? ❑ Q6_What are the 4 targeting strategies that can be adopted? ❑ Q7_What are the main characteristics of each? ❑ Q8_How do you choose between them?  8 Key Q & A_Pods 15 & 16 ❑ Q1_ What do you understand by segmentation? Market segmentation is about dividing a “total” market into smaller homogeneous groups of consumers (= segments) who share the same need and have similar characteristics/profiles ❑ Q2_Why segment? There are too many kinds of consumers with too many kinds of needs. We must make choices! We must select one segment we wish to address (one or more if you we can afford it) = our target(s)! We must focus our resources on this target, to set up a strategy to efficiently and effectively serve its need and design the appropriate offer and marketing program = Marketing Mix (The 4 Ps = Product, Price, Place, Promotion) → 2nd semester  8 Key Q & A_Pods 15 & 16 ❑ Q3_What do you understand by Segmentation variables/criteria? (briefly explain what they refer to) ▪ Geographic ▪ Demographic + Socio-economics ▪ Pyschographic ▪ Behavioural  8 Key Q & A_Pods 15 & 16 ❑ Q4_What is a « segmentation table », and why establish one? It is a table which summarises the different segments’ profiles of the market, and describes their needs and characteristics. It helps you to determine a target…or more if you can afford it !  8 Key Q & A_Pods 15 & 16 ❑ Q5_What is targeting and why do it? What is the link to segmentation and positioning? What is a Persona? Targeting is about: Evaluating the attractiveness of the segments identified on the market…and potential new ones Evaluation criteria: size/commercial value, growth, potential long term opportunities & risks, costs, benefits to enter the segment Link to segmentation: Targeting is about choosing one consumer segment (or more if you can afford it) = your target(s) Link to positioning (next session) : you will have to work out how you can serve your target consumer needs in a unique/superior way from the existing offers of competitors A “Persona” is a sample individual (a personification) representative of your typical target consumer. It summarizes its profile based on salient segmentation variables. Create a Persona which represents your typical target! Source: https://xtensio.com/how-to-create-a-persona/  8 Key Q & A_Pods 15 & 16 ❑ Q6_What are the 4 targeting strategies that can be adopted? ❑ Q7_What are the main characteristics of each? Undifferentiated /Mass = No segmentation! Mass population, identical needs, No/low differentiation products, one strategy, product suits all customers; Differentiated /Multi-segment: Large population but distinct needs leading to distinct marketing strategies and product offerings Concentrated / Niche marketing Focus on a small part of a segment with a very specific need, and become an expertof this niche Micro /personalization Tailoring products (or certain parts of it) to suit the specific tastes of individuals (one product per consumer) « Mass customization » (e.g: Coca-cola or M&Ms)  8 Key Q & A_Pods 15 & 16 ❑ Q8_How to choose between the different targeting strategy? Depends on: Company resources (startups vs large or multinational companies) → If your resources are limited, it’s better to concentrate on one target Degree of product or market variability: → If product vary a lot (e.g.: in design), you may need to sub-segment and differentiate your offer Product life cycle: → At launch stage, focus on one version of product for your target → As the market grows you can introduce different versions of products catering for sub-segments needs  8 Key Q & A_Pods 17 & 18 ❑ Q1_What do you understand by positioning? ❑ Q2_What is a « positioning statement »? ❑ Q3_What are the 4 constituent parts of the positioning statement? ❑ Q4_What is the link between positioning and the marketing mix? ❑ Q5_What are the steps to determine your positioning? ❑ Q6_What are the 3 key types of value you can offer (other than price value) ❑ Q7_What is a positioning or perceptual map? What do you put on it? How do you decide on the positions? ❑ Q8_What is a « me-too » product strategy? Why use it?  8 Key Q & A_Pods 17 & 18 ❑ Q1_ What do you understand by « Positioning »? Positioning is the act of designing a company’s offering and image to occupy a distinctive place in the hearts & minds of the targeted consumers Underlying key question: what makes your product different & better? Your positioning should communicate why your targeted consumers should select your offering over the competitors and how you will deliver the benefits/value you promise ❑ Q2_What is a « Positioning Statement »? A Positioning Statement is one sentence that concisely identifies the market you compete in and what you want your targeted consumers to think about your brand. The positioning statement formalizes/spells out your positioning  8 Key Q & A_Pods 17 & 18 ❑ Q3_ What are the 4 constituent parts of the « Positioning Statement »? Target = the segment of consumers the brand has chosen), Frame of Reference = the market or the product category in which the brand competes), Benefits = the points of differentiation versus competitors Reason to believe = the proof that the brand can deliver its promises A ”Positioning Statement” is one sentence that formalizes your positioning, based on the 4 pillars/constituents mentioned above and is written as follows: For (target audience), (brand name) is the (frame of reference) that delivers the most (benefits/points of difference) because only (brand name) is (reason to believe) Example It is not an advertising slogan, it is not designed to be read by the consumer, it is an internal tool ❑ Q4_ What is the link between Positioning and the Marketing Mix? Positioning is a roadmap for everyone in the company to design a coherent & consistent “Marketing Mix” The Positioning is created through /concretized by the “Marketing Mix” (also known as the “4 Ps”): The Product, the Price, the Place (= where = the distribution channels in which the product will be sold) and the Promotion (= the communication activities that will support the offer). → 2nd semester module  8 Key Q & A_Pods 17 & 18 ❑ Q5_ What are the steps to determine your positioning? 1. Analyze what your target consumers want and determine the distinctive value/benefits you can deliver to address their needs in a superior/unique way; 2. Analyze the competitors’ positioning (How they are distinctive); 3. Find an empty territory/differentiate from your competitors; 4. Summarize your offering in 3 adjectives which best describe the foundation of your positioning 5. Formalize your positioning in a compelling Position Statement Q6_ What are the 3 key types of Value you can offer (other than price value) Positioning goes hand in hand with differentiation How are you different and why are you superior? Think in terms of consumer benefits ! Price does not need to be low! If the benefits are worth the price, the consumer will pay for getting the product!  8 Key Q & A_Pods 17 & 18 ❑ Q7_ What is a « Perceptual Map »? What do you put on it? How do you decide on the positions? It is a graphic representation of how the competitors are positioned, along 2 axes with determinant attributes It enables you to identify the gaps/empty territory.ies ➔ Choose useful/determinant axes according to the types of position occupied ➔ Position all your competitors according to the axes you have identified ➔ Observe the spread and identify gaps which could be your territory ➔ Position yourself differently! Example of restaurants Do not use Price & Quality attributes in the same map as they are highly correlated, and the map’s outcome will be poor as shown here →  8 Key Q & A_Pods 17 & 18 ❑ Q8_ What is a « me-too » product strategy? Why use it? Deliberately copying the market leader to make use of their power/dominance to « piggyback » or be pulled along by them. A practice often used by some Private Labels