1. What is marketing?

What are five core customer and marketplace concepts that are critical to
success? Pick a brand to answer these questions.
- Marketing is the process by which companies create value for customers and build strong customer
relationships in order to capture value from customers in return.
- The core marketplace concepts are:
1. Human needs are the basic requirements and include food, clothing and shelter. Without
these humans cannot survive. Wants are the form taken by human needs when shaped by
culture and individual personality. When backed by buying power, wants become
demands.
2. Market offerings: “Combination of products, services, information or
experiences offered to a market to satisfy a need or want”
3. Value and satisfaction are key building blocks for customer relationships.
4. Exchanges are the acts of obtaining a desired object form someone by offering
something in return. Marketing consists of actions trying to build an exchange
relationship with an audience.
5. A market is the set of all actual and potential buyers of a product or service. Marketing
involves serving a market of final consumers in the face of competitors.
- Pick a brand to answer these questions: Highland coffee.
a) What needs, wants, and/or demands is the brand attempting to fill?
Needs: drink, water

Wants: drink to taste, awake Demands: 30,000 thousand VND

(sweet beverages, coffee, and tea) Vietnamese Coffee.

b) Describe their marketing offers.

- Product: - Drinks: coffee, soft drink, sweet beverage, tea, affordable price
- Service: drink- in, nice place, site seeing, take away, sales
- Experience: Creating the comfortable and exciting atmosphere for customers to enjoy coffee every day.
- Information: Advertisements of new products, events, discount promotions or voucher on website,
Facebook, Instagram frequently.
c) Describe the relationships they have with their customers.
Low-margin customers  Basic relationships.
For example: Highland does not phone or call on all of its consumers to get to know them personally. Instead,
Highland creates relationships through brand-building advertising, public relations, and its website.
d) What are their markets?
According to the products being sold: F&B market
Geographical locations: local market (Vietnam) and international market (Philippines)
Types of buyers involved: consumer market
The quantity of goods transacted between parties: a retail market
2. What is customer-perceived value and what role does it play in customer satisfaction? Use
examples to illustrate your answer.
- Customer – perceived values: evaluation of the differences between all the benefits and all the
cost of a marketing offers compare to other competitors and depend on customer’s classes.
Trung Nguyen Legend Highland
Luxurious place Creative sightseeing
Premium coffee Good coffee but not too excellent
Not too crowed Various beverages, tea
Relaxing and silent Food chain available
Reputation Mix in decoration, architecture
  High price  Affordable prices, more
 Yes to people who already choice
got a social status, middle  Yes to student, youth,
age mostly delightful and chatty
 No with student, youth,  No with people who already
delightful and chatty got a social status, middle
age mostly

- Customer satisfaction: how matching the perceived values and expectation

 Performance under expectations = dissatisfied
 Performance matches expectations = satisfied
 Performance over expectations = highly satisfied

3. Explain the role of secondary data in gaining customer insights. Where do marketers obtain
secondary data and what are the potential problems in using it? Provide some sources for secondary
data.
- Secondary data is available information based on proven theories and concepts.
- It provides a proven and established perspective on customer insights.
- Marketers usually obtain secondary data from: the company’s internal database and external information
sources such as commercial data services, government sources or Web sites, so on.
- Potential problems: data analysis can be less useful in marketing research, as data may be outdated or
inaccurate. - Some sources for secondary data: American Economic Association (AEA), EconData from UMD,
The Center for International Data…
4. What is a brand? How does branding help both buyers and sellers? Giving your examples to
depict your answer.
- Brand: a name, term, sign, symbol, or design, or a combination of these, that identifies the product or
services of one seller or group of sellers and differentiates them from those of competitors.
- Branding helps buyers in many ways:
 Brand names help consumers identify products that might benefit them.
 Brands also say something about product quality and consistency – buyers who always buy the
same brand know that they will get the same features, benefits, and quality each time they buy.
- Branding also gives the seller several advantages.
 The seller’s brand name and trademark provide legal protection for unique product features that
otherwise might be copied by competitors.
 Branding helps the seller to segment markets.
For example, rather than offering just one general product to all consumers, Toyota can offer the different
Lexus, Toyota, and Scion brands, each with numerous sub-brands – such as Camry, Corolla, Prius, Matrix,
Yaris, Tundra, and Land Cruiser. Finally, a brand name becomes the basis on which a whole story can be built
about a product’s special qualities.
5. Discuss the three strategies available for products in the mature stage of the product life cycle. For
each strategy, describe an example other than the ones in the chapter of a company using that strategy.
1. In modifying the market, the company tries to increase the consumption of the current product by
finding new users and new markets segments: Johnson & Johnson introduces new shampoo products for
adults.
2. In modifying the product, the company tries changing characteristics such as quality, features, style, or
packaging to attract new users and to inspire more usage: Stuffed animal can record your voice “Tom-The
cat”
3. In modifying the marketing mix, the company tries changing one or more marketing mix elements: Diet
coke, sparkling water - Coca Cola- healthy beverage.
6. Find an example of a company that launched a new consumer product within the last five years.
Develop a presentation showing how the company implemented the 4Ps in launching the product and
report on the product’s success since the launch.
Product
 Product is the term refers to goods or services that firms offer their customers. Products could be tangible
object or intangible services in which associated with other aspects such as features, warranties, options,
packaging
and so on to attract consumers’ intention and drive them to purchase decision.
Ex: In Vietnam, women in modern life these days, many of them are in desperate need to improve their beauties
as well as to
preserve.With high wages and standard of living, they are willing to pay high prices for maintaining
beauty products.
Therefore, they are potential consumers for a kind of milk that is conveniently packaged and used
providing both milky nutrition and beauty-preserving elements. This is how the new product called UHT
Fresh Milk Added Collagen is created by TH true milk
Place:
The “Place” defines the best ways of getting goods to consumers’ hands. Also, this P is used in reference to
methods and channels for effective and efficient products distribution which are crucial for both reducing cost
and maximizing profit for companies.

Ex: From the early stage of cows importing, herd control, veterinary care, disease prevention and treatment to
milking, the fresh milk is transported and stored by cooling tank trucks at 2-4 degrees C in order to best
preserve the nutrients of TH True Milk. In this place, the latest pasteurization (thanh trùng) techniques are
applied to ensure quality, naturalness, flavor, nutrition and safety of the company’s clean, fresh milk. After
production stages, the milk are distributed to TH Stores, TH retail outlet and TH True Marts in best conditions
and bring to families standardized products with preserved essences, flavors and nutrients of nature.For the new
UHT Fresh Milk Added Collagen, like the other kinds of milk coming from the TH True Milk system, they will
be stored and placed in these outlets with a separated section in order to attract customers and using normal
transferring methods of TH True Milk to come to the end-users.

Price
TH also aims to create trust in consumers mind about clean and high quality milk. Since then, the price setting
for UHT Fresh Milk Added Collagen needed to be suitable and reasonable for targeted consumers. It is a
common thought in Vietnamese people’s minds that cheap things equal poor quality and expensive stuffs
deserve their prices. For those reasons, it is suggested for the UHT Fresh Milk Added Collagen to charge the
price in range of 10,000 to 15,000 VND per 180ml bottle, which is suitable for medium-upper class, especially
young, successful ladies. 
Promotion
1. Promotion in exclusive outlets: Directed to women customers, this personal promotion could help in
raising the awareness of the new product among consumers’ minds. Through the system of retail stores TH
True Mart, new product can be promoted through traditional ways like attractive standees and in-store
marketing.
2. Promoting events: The new releasing milk can be used as trial drink for women come to the
events. The events could vary like the previous “TH True Milk and women beauty”, “TH True
Milk accompanying with women’s health and beauty”, etc
3. Mass media and print media: TVC on VTV, VTC, BEAUTY MARGAZIN, WEBPAGE, FACEBOOK
PAGE
4. Beauty centers
7. Compare and contrast market-skimming and market-penetration pricing strategies and discuss
the conditions under which each is appropriate. For each strategy, give an example of a recently
introduced product that used that pricing strategy.
- Market skimming pricing strategy: companies set high prices on their new products to gain the revenue
layer by layer from targeted segments. This strategy works out only at certain conditions, they are:
 Product's quality and image should satisfy the higher prices.
 All the buyers of the targeted segment should be willing for that price.
 Market entry for the competitors should be tough.
 Example: Apple follows this market skimming pricing strategy.
- Market Penetration pricing strategy: companies set the lower prices for the products to attract large
number of buyers and to gain large market share. Again this strategy works at certain conditions, they are:
 Market must be highly price sensitive.
 When the sales volume increase, production and distribution costs should be decreased.
 Market should be out of competition; otherwise low price would be a temporary price advantage
to customers.
 Example: IKEA follows this market penetration pricing strategy.
8. Name and briefly describe the five product mix pricing decisions. Use examples to illustrate your
answer.
five product mix pricing decisions

- Product line pricing: For example, when you look at a car brand such as Audi, you will see a relation
between the different series and their prices. The entry model, the Audi A1, does cost you less than the top-range
car A8.
- Optional product pricing:For instance, when you order your new Audi car, you may choose to order a
GPS system and an advanced Entertainment system
- Captive product pricing: Ink with pen, razor with shaver, washing machine and laundry detergent
- By-product pricing: Extra 5,000VND to have vanilla jelly for Highland’s lotus tea.
- Product bundle pricing: Combo: The best example is probably a menu at McDonald’s: you get a bundle
consisting of a burger, fries and a soft drink at a reduced price
9. Describe multichannel distribution systems and the advantages and disadvantages of using them.
Use examples to illustrate your answer.
- A multi-channel distribution system is a distribution system in which a single firm sets up two or more
marketing channels to reach one or more customer segments..
- Benefits of Multi-channel Distribution:
 Allows more target market segments to be reached.
  Customers increasingly expect products to be available via more than one channel.
 Enables higher revenues – e.g. if retail outlets have no stock, but customer can buy online.
- Drawbacks of Multi-channel Distribution:
 Potential for channel “conflict” – e.g. competing with retailers by also selling direct.
 Can be complex to manage.
 Danger that pricing strategy becomes confused (in the eyes of customers).
- For example, Starbucks uses a multichannel distribution system by selling in their own-stores,
grocery stores, and their own online site.
- Another example would be a manufacturer. A manufacturer can sell their products to
distributors to sell to customers. They also can have their own eCommerce site to sell directly
to customers
10. The most common type of contractual vertical marketing system is the franchise organization.
Write a report describing an example of a franchise. Identify what type of franchise it represents and
research the market opportunities for that product or service.
McDonald’s, on the other hand, only directly owns a minority of its 36,000 outlets. Most of them are franchises.
What that means is that someone else owns and operates each McDonald’s restaurant. McDonald’s gives those
people the right to use its famous brand, logo, menu, etc., so they can probably attract far more customers than
they would if they opened up a new hamburger restaurant in their own name. They also get to use a proven
business model rather than trying to invent their own.
In return for all that, the people who run each restaurant pay fees to McDonald’s, usually calculated
as a percentage of sales.

 Manufacturer-sponsored retailer franchise systems

  A franchise store such as McDonald's can help business owners to achieve financial
independence by getting on board with an international powerhouse that can almost
guarantee a certain degree of success.
 The brand can expand themselves to different market attract more customers

11. List and briefly describe the five major promotion mix tools. Use your examples to illustrate your
answer.
 Advertising: Any paid form of nonpersonal presentation and promotion of ideas,
 goods, or services by an identifed sponsor.
 Sales promotion: Short-term incentives to encourage the purchase or sale of a product or service.
 Personal selling: Personal presentation by the frm’s sales force for the purpose of
 making sales and building customer relationships.
 Public relations: Building good relations with the company’s various publics by obtaining
favorable publicity, building up a good corporate image, and handling or heading off unfavorable
rumors, stories, and events.
 Direct marketing: Direct connections with carefully targeted individual consumers to
 both obtain an immediate response and cultivate lasting customer relationships.
For example, advertising includes broadcast, print, Internet, mobile, outdoor, and
other forms. Sales promotion includes discounts, coupons, displays, and demonstrations. Personal selling
includes sales presentations, trade shows, and incentive programs. Public relations (PR) includes press
releases, sponsorships, events, and Web pages. And direct marketing includes catalogs, direct-response TV,
kiosks, the Internet, mobile marketing, and more.
12. Discuss the external factors that impact an organization’s the marketing communication function.
Will traditional mass media advertising soon be dead as some have predicted? Use examples to depict
your answer.
First, consumers are changing: they are better informed and more empowered. Also, marketing strategies are
shifting away from traditional mass marketing. Finally, communications technology is changing the way
companies and customers communicate with each other.
Despite the shift toward new digital media, however, traditional mass media still capture a lion’s share of the
promotion budgets of most major marketing firms, a fact that probably won’t change quickly. For example,
P&G, a leading proponent of digital media, still spends the majority of its huge advertising budget on mass
 media. Although P&G’s digital outlay more than doubled last year to $169 million, digital still accounts for
less than
5 percent of the company’s annual global advertising budget.
13. Name and briefly describe the nine elements of the communications process. Why do marketers
need to understand these elements? Use examples to address your answer.
 Sender: The party sending the message to another party—here, McDonald’s.
 Encoding: The process of putting thought into symbolic form—for example, McDonald’s
 ad agency assembles words, sounds, and illustrations into a TV advertisement that will
 convey the intended message.
 Message: The set of symbols that the sender transmits—the actual McDonald’s ad.
 Media: The communication channels through which the message moves from the sender
 to the receiver—in this case, television and the specifc television programs that
 McDonald’s selects.
 Decoding: The process by which the receiver assigns meaning to the symbols encoded by
the sender—a consumer watches the McDonald’s commercial and interprets the words
and images it contains.
 Receiver: The party receiving the message sent by another party—the customer who
watches the McDonald’s ad.
 Response: The reactions of the receiver after being exposed to the message—any of
hundreds of possible responses, such as the consumer likes McDonald’s better, is more likely to
eat at McDonald’s next time, hums the “I’m lovin’ it” jingle, or does
nothing.
 Feedback: The part of the receiver’s response communicated back to the sender—
McDonald’s research shows that consumers are either struck by and remember the ad or
they write or call McDonald’s, praising or criticizing the ad or its products.
 Noise: The unplanned static or distortion during the communication process, which
results in the receiver getting a different message than the one the sender sent—the
consumer is distracted while watching the commercial and misses its key points.
The marketer needs to assess what influence each communication experience will have at different
stages of the buying process.
This understanding helps marketers allocate their communication dollars more effciently
and effectively.
14. Discuss the tools used by public relations professionals. Is public relations free promotion for a
company? Use examples to depict your answer.
According to our text on page 451, Kolter and Armstrong explain how companies use public relations to
communicate with the public. Some tools include news, special events, written materials, audiovisual materials,
public service activities and of course, the world wide web. In an effort to ensure a proper setting, companies
should choose wisely when to use public relations for promotions. “The firms PR should be blended smoothly
with other promotion activities within the company’s overall integrated marketing communications effort”
(Kolter and Armstrong, 2014)
15. Discuss the characteristics advertising appeals should possess to be effective. Use examples to
depict your answer.
Advertising appeals should have three characteristics. First, they should be
meaningful, pointing out benefts that make the product more desirable or interesting to
consumers. Second, appeals must be believable. Consumers must believe that the product or
service will deliver the promised benefts.
However, the most meaningful and believable benefts may not be the best ones to feature. Appeals should also
be distinctive. They should tell how the product is better than competing brands. For example, the most
meaningful benefit of owning a wristwatch is that it keeps accurate time, yet few watch ads feature this beneft.
Instead, based on the distinctive benefits they offer, watch advertisers might select any of a number of
advertising themes. For years, Timex has been the affordable watch that “takes a licking and keeps on ticking.”
Similarly, Rolex ads never talk about keeping time. Instead, they talk about the brand’s “obsession with
 perfection” and the fact that “Rolex has been the preeminent symbol of performance and prestige for more than
a century.”
16. Why is it important that the advertising media and creative departments work closely together?
Use examples to depict your answer.
It is important that the advertising media and creative department work closely together to decreases friction
between the two and promotes a more innovative ad for the organization. If the two lack in communication,
there is a high possibility that they will spend more time creating the product (Kotler)
17. Describe the decisions marketing managers must make when developing an advertising program.
Use examples to depict your answer.
Product Components
Marketing managers must make a decision regarding the elements that make up the product. A company cannot
simply place its product on a shelf in a retail store and expect customers to purchase the item. The product must
have packaging that catches the eye of a potential customer, information regarding its contents and a name that
is memorable. For example, laundry detergent makers do not place their detergent in a clear plastic on grocery
store aisles. The detergent typically has a name like "Zest Xtreme!," and promises to "fight clothing stains
without fading clothing colors." Marketing managers decide on these product factors before starting advertising
campaigns.
Price Point
The price point is critical to the success of the product and the profit of the company. If marketing managers set
the price of the product too high, potential customers will buy a similar product from a competitor that is priced
lower. If the price is too low, the company's profit margin on the item will be too low to justify the cost of
production. Marketing managers look at the price of similar items in the market as well as the cost of the item to
the company. Managers select a price and use that number for the advertising campaign for consistency.
Placement
Marketing managers choose the method of placement for an item when developing an advertising program so
that all dollars are not wasted on useless markets. There are three types of placement distribution: intensive,
selective and exclusive
1. Intensive placement involves placing the product in as many markets and stores as possible for a
widespread reach among consumers.
2. Selective placement is when the company has a specific consumer in mind. For example, if you sell
high-end luxury goods, you should place the goods in cities with high disposable incomes.
3. Exclusive placement is used when you supply only one customer, such as a niche shop, with your items.
Promotion
The promotional aspect of an advertising program is the message marketing managers want their consumers to
take from the product. The message may be a value proposition, a testament of quality or some other feature of
the product. For example, if your product is the lowest priced item in its product category, your job as a
marketing manager is to create a statement that touts this fact in a clear, concise way.
18. Name and describe the types of consumer promotions. Use examples to depict your answer.
Samples are offers of a trial amount of a product. Sampling is the most effective but most expensive-way to
introduce a new product or create new excitement for an existing one. Some samples are free; for others, the
company charges a small amount to offset its cost. The sample might be sent by mail, handed out in a store or at
a kiosk, attaded to another product, or featured in an ad or an e-mail. Samples are sometimes combined into
sample packs, which can then be used to promote other products and services. Sampling can be a powerful
promotional tool.
Coupons are certificates that save buyers money when they purchase specified products. Most consumers love
coupons- U.S. consumer packaged-goods companies distributed 305 billion coupons with an average face value
of $1 .55 last year, a 26 percent increase since 2007. Consumers redeemed more than 3.5 billion of them for a
total savings of about $4.6 billion, 58.6 percent higher than five years ago." Coupons can promote early trial of
a new brand or stimulate sales of a mature brand. However, to combat the increase in coupon clutter, most
major consumer-goods companies are issuing fewer coupons and targeting them more carefully.
Rebates (or money refunds) are like coupons except that the price reduction occurs after
the purchase rather than at the retail outlet. The customer sends proof of purchase to the
manufacture, which then "funds part of the purchase price by mail. For example, Toro ran
a clever preseason promotion on some of its snowblower models, offering a abate if the
snowfall in the buyer's market area turned out to be below average. Competitors were not
 able to match this offer on such short notice, and the promotion was very successful.
Price frocks (also called cents-off deals) offer consumers savings off the regular price of
a product. The producer marks the reduced prices directly on the label or package. Price
packs can be single packages sold at a reduced price (such as two for the price of one) or
two elated products banded together (such as a toothbrush and toothpaste). Price packs
are very effective even more so than coupons in stimulating short-temp sales.
Premium are goods offered either free or at low cost as an incentive to buy a product,
ranging from toys included with kids' products to phone cards and DVDS. A premium
may come inside the package (in-pack), outside the package (on-pack), or through the mail.
For example, over the years, McDonald’s has offered a variety of premiums in its Happy
Meals-from Madagascar characters to Beattie Babies and Palmas toy figures. Customers
can visit www.happymeal.com to play games and watch commercials associated with the
current Happy Meal sponsor.

Advertising specialities, also called promotional products, are useful articles imprinted with
an advertiser's name, logo, or message that a~ given as gifts to consumers. Typical items
include T-shirts and other apparel, pens, coffee mugs, calendars, key rings, mouse pads,
tote bags, coolers, golf balls, and caps. US. marketers spent nearly $18 billion on advertising speciality last
year. Such items can be very effective. The "best of them stick around for months, subtly burning a brand name
into a user's brain," notes a promotional products expert

19. Discuss the different types of trade sales promotions and distinguish these types of promotions
from business promotions. Use examples to depict your answer.\

These are the Consumer Promotions used as Trade Promotions:

1.Contest, Sweepstakes, and Games: Give consumers the chance to win something, such as cash, trips, or goods
by luck or through extra effort.
2.Premiums: Goods offered either free or low cost as an incentive to buy a product.
3.Point-of-Purchase (POP) Promotions: Displays and demonstrations that take place at the point of sale.
These are the main Trade Promotions:
1.Discount: Off the list price on each case purchased during a stated period of time.
2.Allowance: Usually so much off the case.
3.Free Goods: Extra cases of merchandise, to resellers who buy a certain quantity or who feature a certain flavor
or size.
4.Push Money: Cash or gifts to dealers or their sales forces to “push” the manufacturer’s goods.
5.Specialty Advertising Items: Carry the company’s name, such as pens, calendars, memo pads, flashlights, and
tote bags.
20. Discuss factors used to classify retail establishments and list the types within each classification. Use
examples to depict your answer.

a. Amount of service: different types of customers and products require different amounts of service. To meet
these varying service needs, retailers may offer one of three service labels: self-service, limited service, and full
service. (Co-op mart, lotte, Vinmart )
b.Product line: Retailers can also be classified by the length and breadth of their product assortments. Some
retailers, such as specialty stores, department stores, supermarkets, convenience stores, superstores, category
killers, and service retailers.
c.Relative Prices: Retailers can also be classified according to the prices they charge. Most retailers charge
regular prices and offer normal-quality goods and customer service. Others offer higher-quality goods and
service at higher prices. Retailers that feature low prices are discount stores and “off-price” retailers.
d.Organizational approach: Although many retail stores are independently owned, others band together under
some form of corporate or contractual organization. The major types of retail organizations- corporate chains,
voluntary chains, retailer cooperatives, and franchise organizations.
21.How should marketers respond to the changing environment? Use examples to illustrate your answer.
- Reactive (not recommended): watching and adapt to the change of environment
- Proactive: (recommended): take action to change/select environment, (blogger,
celebrity,….) , adjust customer needs, wants, perception
- Examples: The CEO’s head was spinning. So much had changed so fast that he
hardly knew how to respond. Many of the old rules didn’t seem to apply anymore.
What was the right move in this bewildering new environment?
Reactive Proactive
 Become more fearful and rigid and  Channel fear into action rather than
“baton down the hatches” inaction
 Focus on “not losing” rather than  Become more flexible and adaptive
“winning”  Scan the environment to understand
 Employ cost-cutting strategies to what drives the “new normal”
reduce overhead only  Employ both cost-cutting and
 Wait for the storm to pass and the growth strategies
return to the “good old days”  Increase revenue and create
competitive advantage

22. Discuss global demographic trends. What are the implications of those trends and
how should marketers respond to them?

- There are some important demographic trends in today’s world, such as: the world
population growth and the changing age structure of the world population, where
some parts of the world are aging and others have younger populations.
Baby boomers 78 million people born during the years
= The most powerful forces shaping the following the Second World War and
marketing environment and wealthiest. lasting until 1964
Generation X  45 million people born between 1965 and
=Less materialistic than the other groups 1976 in the “birth death” following the
and tend to research products heavily baby boom
before they consider a purchase, prefer
quality over quantity.
Generation Y or the Millennials 83 million children of the baby boomers
= Make up a huge and attractive market, born between 1977 and 2000. They are
now and in the future and engage with characterized by a high comfort in
brands in an entirely new way, such as technology.
mobile or social media.
Generation Z people born after 2000
 = make up the kids, teens and teens
markets, represent tomorrow's markets
through forming brand relationships
and have short attention spans.
=> Marketers should divide customers by their lifestyle, life stage or the common
values they seek in the products they buy.
- Changes can also be found in the family structure. The traditional western
household (husband, wife and children) is no longer typical. People marry later
and divorce more. => Marketers must increasingly consider the special needs of
non-traditional households because they are now growing more rapidly than
traditional households
- There is an increased number of working women and youngsters tend to stay at
home longer.
- The workforce is also aging, because the later retirement age
- There are also geographic shifts, such as migration, urbanization. These movements
in population lead to opportunities for marketing niche products and services.
=>Marketers should base on different regions to meet customers’ needs and
actively develop the lucrative telecommuting market.
- A Better-Educated, More White-Collar More Professional Population=> Marketers
should capture not only what people buy but also how they buy to create diverse of
marketing programs.
- More diversified: Brands in a wide range of industries target the LGBT community
with gay specific ads marketing efforts. Another attractive diversity segment is adults
with disabilities.
23..Name and describe the types of consumer products and give an example of each.
How does the marketing differ for each product type?

o Convenience products: A convenience product is a consumer product or service that

customers normally buy frequently, immediately and without great comparison or buying
effort.
 Shopping products: Shopping products are a consumer product that the customer
usually compares on attributes such as quality, price and style in the process of selecting
and purchasing.
 Specialty products: Specialty products are consumer products and services with
unique characteristics or brand identification for which a significant group of consumers
is willing to make a special purchase effort.
 Unsought products: Unsought products are those consumer products that a consumer
either does not know about or knows about but does not consider buying under normal
conditions.
24. Name and describe the levels at which market targeting can be carried out. Give an example of a company
using each
Market targeting
- Market targeting is the process of evaluating each market segment’s attractiveness
and selecting one or more segments to enter.
- Targeted market consists of a set of buyers sharing common needs or characteristics
that the company decides to serve. There are several forms of market targeting.
=> Undifferentiated (mass) marketing: whole market, little difference (Cola, Omo)
=> Differentiated marketing: common features ( Unilever’s Product Portfolio )

LYNX DOVE
SURE RADOX

=>   Concentrated marketing (niche): concentrate on very specific qualities ( Whole Foods

Market & the Organic Niche). Micromarketing is tailoring products and marketing
programmes to the needs and wants of specific individuals and local customer segments,
includes 
* local marketing: tailoring brands and promotions to the need and wants of local customer
segments; cities, neighbourhoods and even specific stores.
* individual marketing: tailoring products and marketing programmes to the needs and
preferences of individual customers, also called one-to-one marketing, customized marketing
and markets-of-one marketing.
25.Explain how a company differentiates its products from competitors’ products.
Provide examples to illustrate your answer.
A company can differentiate along the lines of products, services, channels, people, or
image:
 - Product differentiation: brands can be differentiated on features, performance,
or style and design.
- Services differentiation: a firm can differentiate the services that accompany the
product through speedy, convenient, or careful delivery.
- Channel differentiation: The company can gain competitive advantage through
the way it designs their channel’s coverage, expertise, and performance.
- People differentiation: hiring and training better people than competitors do.
- Image differentiation: A company or brand image should convey a product’s
distinctive benefits and positioning.

26. In the context of marketing, “what is a product’s position”? How do marketers know what it is? Use
examples to illustrate your answer
- A product position is the way the product is defined by consumers on important attributes: the
place the product occupies in the consumers’ minds relative to competing products. Perceptual
positioning maps show consumer perceptions of brands versus competing products

 
 Create a competitive advantage 
Perceptual positioning maps show consumer perceptions of brands versus competing products.
27. Name and describe the types
of buying decision
behaviour and describe a
personal example for each

 Complex buying behaviour is characterized by high consumer involvement

in a purchase and significant perceived differences among brands.
 Dissonance-reducing buying behaviour is consumer buying behaviour
characterised by high involvement, but few perceived differences among
brands.
 Habitual buying behaviour is consumer buying behaviour characterized by
low consumer involvement and few significantly perceived differences
 Variety-seeking buying behaviour is consumer buying behaviour
characterised by low consumer involvement, but significant perceived
brand differences.
 Warning:
High consumer involvement: a product that a consumer buys only after carefully
considering the choices
Low consumer involvement: a common product that consumers buy without
thinking about it much, often because it is cheap, or the one they usually buy
28. What is value-based pricing? Discuss factors marketers must consider when setting
price. Give examples to illustrate your answer.
- Customer value-based pricing: setting price based on buyer’s perceptions of value rather than
on the seller’s cost.
- Factors marketers must consider when setting price are customer perception of the product,
product costs, customer value, customer needs and customer satisfaction.