Exam Preparation
MCD 2050 Marketing
Hafizhah Chandra
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Exam Preparation
Table of Contents
Section A – Long Essay (4o marks) …………………………………………………………………………………………….. 3
Section B – Long Answer Questions …………………………………………………………………………………………… 5
1. List and explain micro/macro factors……………………………………………………………………………………………………………………………….. 5
2. Briefly explain …………………………..……………………………………………………………………………………………………………………………………………… 6
3. Describe the 5 stages in buyer decision making process ………………………………………………………………………………………………. 6
4. Explain the 4 steps of market research, applying to low sales of new game control …………………………………………….. 8
5. Explain in detail: …………………………………………………………………………………………………………………………………………………………………….. 9
Section C – Short Answer Questions ………………………………………………………………………………………… 14
6. List and describe 1 in detail: ……………………………………………………………………………………………………………………………………………… 14
7. Briefly explain the following:…………………………………………………………………………………………………………………………………………….. 14
8. Explain: …………………………..………………………………………………………………………………………………………………………………………………………. 15
9. Briefly describe: ……………………………………………………………………………………………………………………………………………………………………. 17
10. Describe the following: …………………………………………………………………………………………………………………………………………………….. 17
11. Explain the following: ………………………………………………………………………………………………………………………………………………………. 18
12. Describe Ansott’s expansion grid …………………………………………………………………………………………………………………………………… 20
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Section A – Long Essay (4o marks)
It will have a quite from Phillip Kotler – don’t even read the friggin’ quote
Read the bit below the quote, it will have something like this:
A. What customer value is (3.5 marks) – page 7 in the textbook
B. How marketing creates and deliver values (3o marks)
• Start with market research → the idea of giving data about consumer behavior
o Why do we need marketing research
o 3 main sources of information
o 3 methods of collecting data
• Continue with consumer behavior
o Why do we study consumer behavior (why relevant, why important)
o Influences (internal, external + examples each)
• Then move on to STP → the idea of when we know about consumer behavior, we can decide the
STP + introduction to 4Ps
o Why do we segment
o Brief description of 4 bases
o Explain what is targeting the bases
o Idea of able to have more than 1 targeting
o Explain position – related to creating image
o Then continue to 4Ps
• Start 4Ps with Product
o What is product
o What is branding
• Price
o Idea that price is the cost for customer and revenue for business
o
• Place
o What is included in logistics, why do you call it bi-directional
o Where does value come from
o What is the choice faced by firms
o What services can be supplied by intermediaries
• Promotion – do not write too much
o Why is the term IMC used?
o 2 types of communication
o Briefly explain:
▪ Characteristics and objectives of advertising
▪ Purpose of public relation + how to achieve it
▪ Sales promotion + when is it used + examples of tools
• Idea of planning and control → includes definition + benefits of planning, then link it to developing
strategies for 4Ps
o Control process (the 3 processes) + corrective actions taken linked to 4Ps
C. How marketing build relationship/value – organization – page 12 and 13 in the textbook
Use key marketing vocabularies!!!!
Answer:
A:
Consumers make buying choices based on their perceptions of the value that various market offerings will deliver.
Customer value is the difference between the benefits the customer gains from having access to or owning and
using an offering and the costs of obtaining it. Benefits for customers can be
B:
To deliver value, business must first understand what customers consider as good products. The answer for this is
through marketing research. Marketing research is essential for every business. Successful businesses conduct
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research on a continual basis to keep up with market trends and to maintain a competitive edge. Information can
come from internal data, marketing intelligence and market research. Internal data are data from within the
organization, such as sales report. Marketing intelligence is the systematic collection and analysis of publicly
available information about consumers, competitors and developments in the marketplace, such as magazines,
newspapers, and company reports. Market research is the information that we go out and collect ourselves instead
of relying to people. To collect the data, we can do observational research – by observing relevant people, actions
and situations; survey research – asking people questions about their knowledge, attitude, preferences and buying
behavior; or experimental research – selecting matching groups of subject, giving them treatments, controlling
related factors, and checking for different responses. Through market research, we can now collect data on
consumer behavior.
We need the data about consumer behavior, as we want to know why consumers buy our products to improve our
marketing mix. We’re trying to understand the way they think, behave and what influences them. Influences on
consumer choice can be separated into 2 areas: internal and external. Internal influences include personal and
psychological. For example, as a kid customers would probably buy a toy, but when they grow up into young adults
they would probably want proper and stylish clothing. External influences, on the other hand, include culture and
social factors. For example, Muslims are not allowed to drink alcoholic drink and thus they cannot buy beer brand
such as Heineken.
Through consumer behavior, we now understand the customers’ preferences and different groups they are in. Then
we can decide which groups of customers to target with the help of STP. Segmentation helps to differentiate the
many groups of customers. Each company has different capabilities to serve customers, and different customers
react differently to different marketing strategies. Thus companies are encouraged to focus on one or more groups of
customers who will really buy their products; they become more efficient and effective. Segmentation can be based on
geographic – segmenting based on location of the customers, climatic condition and population density (ex:
seasonal, desert, nation region); demographic – segmenting based on population values such as gender, age, family
and ethnics; psychographic – segmenting based on social class, lifestyle or personality characteristics; and
behavioral – segmenting based on the behavior towards the product. Companies can choose one or more
distinguished target market and then create the proper positioning – what kind of image does the company wants
customers to see our product as. Once this is established, we can create our marketing mix.
We start with the product. A product can be anything: a person, place, good, service, idea or even experience. Most
products these days are combination of tangible and intangible elements. It becomes the center of marketing mix,
as without product there will be no need for price, place and promotion. The product will then be branded, which is
the combination of name, term, sign, symbol or design to identify the product and differentiate it from competitors’. It
is about getting the prospects to see the company as the only one that provides solution to their problem.
Then we move onto price. For customers, price is considered as the costs of obtaining the product while from
business’s point of view it is their source of revenue. The minimum price given is called price floor – below which will
have no revenue, and the maximum price given is called price ceiling – above which no demand for product. For a
newly introduced product, companies can use either price skimming – setting a high initial price to skim the revenue,
or penetration – setting high price initially to penetrate the market.
And then we decide where to place the product, the distribution process through marketing logistics. Marketing
logistics start with raw materials, to production, transportation, retailing and finally customers. It is the most
complicated, most difficult to change and most important but at the same time most likely to be neglected. Firms
are faced with choice to either do the marketing logistics themselves or outsource it. Firms can outsource almost
everything, starting from information, promotion, contact, matching, negotiating, and physical distribution until
financing.
After this, we move on to promotion. In promotion, we usually use the term Integrated Marketing Communication
as we use different method of communications with our customers, instead of just one. Communication can be divided
into verbal – spoken use of words, discussions, speeches, and areas of interpersonal communication; and nonverbal
– body language, facial expression and gestures. The promotion mix includes advertising, sales promotion, public
relations and direct marketing. Advertising is often paid for, one-way (no feedback) and sponsor identified (name of
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company is clearly stated). It can be informative, persuasive, reminder and reinforcing. Public relation is used to
create positive image of your company and can be achieved through publicity. Sales promotion is often used to get
customers to buy the product now. Examples include samples, coupons, and point-of-purchase promotion.
The company then needs to do planning and controlling relative to the marketing activities. Planning is the process
of setting goals – proximal and distal – and developing strategic plans to give direction and standards for the
marketing activities. The company needs to control the whole marketing process by measuring results, evaluate the
results by comparing actual performance to goals and if there are deviances, take corrective actions to change the
marketing mix. For example, if the product packaging makes the product too heavy, marketing management need
to revise the packaging planning and change it accordingly.
C:
1. Repeat sales
2. Less price sensitive
3. Positive word of mouth
4. Create noise for competitors
5. Easier to launch new product
Section B – Long Answer Questions
1. List and explain micro/macro factors
Microenvironment refers to the forces close to the organization that affect its ability to serve customers – the
organization, marketing channel firms, customer markets, its competitors and publics
• Marketing organization
Other departments within the organization other than marketing that also have to contribute towards
giving customer value and satisfaction, such as Board of Directors, Accounting Department, HRD, R&D,
etc. Suppose that BOD cuts marketing budget. The marketing department now has to adjust its
marketing strategies to meet the lower budget. This could pose as a threat.
• Intermediaries
Groups outside the organization that contribute help in services, such as reseller, wholesaler and
retailer. These groups are interdependent. Suppose that resellers demand more of our products. This
becomes an opportunity for us to sell more.
• Customers
Customers are our buyers; potential and existing customers. They are individuals or groups who
purchase our products. Suppose that they prefer more of mints then gums. It becomes a threat for gum
sellers but at the same time an opportunity for mint sellers.
• Competitors
Other organizations that sell similar/substitute products. Suppose that Mondelez’s competitor, MARS’s
Wrigley launched a new kind of gum which is more attractive to teens than Mondelez’s iD gum. iD gum
faces a threat of losing its customers to Wrigley.
• Publics
Any group that has an actual potential interest in, or impact on, an organization’s ability to achieve its
objectives. Suppose that pressure group demand lesser use of animals in fashion industry. For fashion
industry it poses as a threat for not being able to launch another clothing using animal skin.
Macro environment on the other hand consists of the larger societal forces that affect the whole
microenvironment demographically, economically, naturally, technologically, politically and culturally.
• Demographic
The study of human populations in terms of size, density, location, age, gender, race, occupation and
other statistics.
• Economic
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Exam Preparation
Factors that affect consumer buying powers and patterns. For example, Australia is facing a recession,
causing people to have lesser disposable income and thus lead to lesser consumption. This is a threat
for businesses.
• Natural
Natural resources that are needed as inputs by marketers or that are affected by marketing activities,
such as water, forests, oil, coal, minerals. As resources become more scarce, costs increase, posing as
threats for companies.
• Technological
Forces that create new technologies, create new product and marketing opportunities and change the
way we market and communicate with customers.
• Political
Laws, governments, agencies and pressure groups that influence and limit various organizations and
individuals in a given society. For example, government sets laws and regulations that limit business for
the good of society, resulting in a threat for businesses.
• Cultural
Consists of institutions and other forces that affect a society’s basic values, perceptions and behaviours.
2. Briefly explain
a) 4 major bases in segmenting market
1. Geographic: Segmenting based on location of the customers (geographical unit), climatic conditions
and population density. Example includes; seasonal, desert, nation region. (ex: hotel, food store)
2. Demographic: Segmenting based on population values such as gender, age, family and ethnics (ex:
toys)
3. Psychographic: Segmenting based on social class, lifestyle or personality characteristics; activities,
interest, opinion and lifestyle (ex; magazine)
4. Behavioral: Segmenting based on the behavior towards the product, the way they use it and their
response to it; usage rate, usage timing, loyalty, skills, etc.
b) 5 criteria for effective segmentation
1. Measurable: can you collect data? Can u measure the no. of customers in the group?
a. Must be measurable in terms of size and purchasing power
b. If not measurable → hard to assess the profitability
c. Ex; smart phone sales grow rapidly, but which exact market?
2. Accessible: communicating to customer and able to deliver things to them
a. Ex: interest, TV, radio
b. If customers don’t use these, its difficult to communicate with them
c. Distribution – shop in Jakarta targets people in Jakarta, not NY
3. Substantial: large and profitable enough to sell
4. Differentiable: clearly defined & distinguishable to avoid doubt about which part is that
a. Cause there’s a risk marketing action will ‘spill over’
b. Ex; married and unmarried men behave similarly in buying behavior
5. Actionable: enough resource, right skills to go after the market
c) 3 methods for evaluating segmentation
• Segment size and growth
• Segment structural attractiveness
• Company objectives and resources
3. Describe the 5 stages in buyer decision making process
will include the role of marketing at each stage
• Problem recognition – product or promotion
• Information search – promotion (advertisement, website)
• Evaluation – provide superior value
• Actual purchase – place, distribution, making sure that the product can be gained easily
• Post-purchase – before and after sales service
1. Problem Recognition (other word, ‘Need Recognition’)
Buyer’s decision starts with the buyer him/herself recognizing what he/she needs. How do you recognize a
need? How do you know when to go out and buy something? One way to do this is by sensing a difference
between actual state and desire state. When you are bored you got to be entertained, so there is a difference
between what we feel like now and what we want to feel like. This difference tells buyers to go out and buy
something, as they need to stop the ‘bored’ feeling.
Now from where does the need comes from? Sometimes the need can come from inside you, like when you are
shivering it means you need something warm because you’re cold. Your stomach will grumble when you need
to eat and your throat will go dry when you need to drink. These are called internal stimuli. Other examples are
external stimuli. You’re flipping through a magazine and see an ad of a new cellphone and you go ‘I want to
buy this cellphone’. This is external because the ad from magazine caused you to start thinking ‘my cellphone is
no longer attractive, I need a new one’.
That is step one, the problem recognition phase when you start feeling a tension of having something missing.
You solve this by realizing that you need to buy something.
2. Information Search
This is the phase when buyers start searching for details and particulars about the products they need to buy.
There are 4 main sources of information: commercial, personal, public and experiential source.
A commercial source has something to do with wanting to sell you something. Relevant example would be an
advert, say Cadbury Chocolate advert. The sole purpose of the advert is to sell you the Cadbury chocolates,
nothing else. Personal source, on the other hand, are sources close to us and does not have any intention of
selling the product to us, such as family and friends. These people don’t intend to sell the products to us but
