Development and role of selling in marketing - Implementing the marketing concept
20 important questions on Development and role of selling in marketing - Implementing the marketing concept
What are the limitations of the PLC?
○ Some products have hardly any PLC (new unsuccessful products)
● Sales growth can end abruptly due to newer, more competitive products
● PLC vary in length for each product
What are the most important benefits of effective segmentation and targeting?
▪ Clearer identification of market opportunities and particularly analysis of gaps
in a market
▪ Design of product and market appeals that are more finely tuned to the needs
of the market
▪ Focusing of marketing and sales efforts on those segments with the greatest
potential
What are frequently used bases for segmentation of 1. Consumer products/markets?
● Sex
● Income
● Social class
● Geographical location
● Type of residence
● Personality
● Benefits sought
● Usage rate
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
What are frequently used bases for segmentation of 2. Industrial products/markets?
● Benefits sought
● Company size
● Geographical location
● Usage rate
What is a product?
How to apply segmentation?
- Based on demographics: Promotion, advertising and presentation of products are tailored to differences (e.g. male and female shaver requirements)
- Based on usage: Applicability to usage types (e.g. BIC - known for its pocket lighters - introduced ‘BIC Megalighter’ for BBQs and its ‘Surestart’ candle lighter (growing market)
- Based on behavior/ needs of consumers: BIC conducted research and distinguished three distinct types of writing instrument shoppers
- a. Seeking specific benefits
- b. Best value for money
- c. Impulse buy
Name the 4 p's of the marketing mix (McCarthy)?
○ Product: features, packaging, quality, range
○ Promotion: advertising, publicity, sales promotion, personal selling, sponsorship
○ Place: inventory, distribution channels, number of intermediaries
Describe the 'introduction' phase?
- Sales growth is slow → Need to persuade and promote the product
- Often financial deficit due to little profits and heavy launch costs
Describe the 'growth' phase?
- Sales begin to escalate relatively rapidly ■ ‘Snowball effect’ → Word of mouth communication and advertising start to take effect
- Profits begin to be made, especially if the newly introduced product can command high initial prices (known as market skimming)
Describe the 'maturity' phase?
- Sales growth slows down, market becomes saturated ■ Few new buyers, high proportion of repeat purchases
- Competitors have entered the market
- Causes profit growth to decline
Describe the 'decline' phase?
- Sales fall, profits decrease even further ■ Customers are bored or pay attention to other, newer and improved products ■ Dealers reduce stock
What are the implications of the PLC for Sales and Marketing?
● Competition and rapid technological changes contribute to shorter lifecycles
● Emphasis on improving and developing new products
● Salespeople need to react to first signs by the consumer that products are about to embark to the period of decline
○ Salespeople as valuable source for new product ideas
2. Different marketing and sales strategies can be appropriate to each stage
● Stages
○ Introduction: Focus on locating prospects
○ Growth: Rationing products to their customer as demand increases
○ Maturity and decline: Rely on competitive pricing and special offers
What are the factors to determine the rate of adoption of innovations?
○ Compatibility with customer needs
○ Complexity of understanding and usage
○ Divisibility: Trying out the product before purchase
○ Communicability: Description or demonstration of product before purchase
What are the charasterics of product adoption and diffusion (Rogers)
● Describes innovative behaviour → Product characteristics
can affect adoption rate
● 5 adopter categories among consumers
○ Each stage contains a percentage of first-time buyers (i.e. not repeat buyers)
■ What attracts first-time buyers and the length of adoption process depends on the product itself
- E.g. fashion vs. technological products
○ Many potential consumers will never adopt a product for personal reasons
What are the factors when it comes to the determination of price levels?
2. Marketing objectives
3. Demand considerations
4. Cost considerations
5. Competitor considerations
Elaborate on the company objectives (pricing levels)?
● What should the pricing achieve in terms of overall company objectives?
○ E.g. specific target rate of return on capital employment, early cash recovery or specific payback period for the investment
Elaborate on the marketing objectives (pricing levels)?
● What marketing objectives should the pricing achieve?
○ E.g. large market share through market penetration
■ Low prices + heavy promotion
○ E.g. market skimming
■ High initial prices + high levels of promotion, will eventually lower the price causing more price sensitive consumers to enter the market
○ Objectives need to be communicated to the sales team
Elaborate on the demand considerations (pricing levels)?
● Most markets: Upper price limit to be charged depends on market demand → charge what the market can bear
○ Demand curve = At lower prices, higher quantities are demanded
■ Estimation on relationship between price and demand should be made in advance → Salesforce supplies info
■ Slope: Conventional curve (see pic) but not always the case! Prices can be too low with a decrease in demand as effect
Elaborate on the cost considerations (pricing levels)?
● Most markets: Lower price limit to be charged, beginning of pricing decision process
○ Variable vs fixed costs, break-even analysis
Elaborate on the competitor considerations (pricing levels)?
● Short-term pricing changes are often a direct response to competitor behavior
○ Once prices are lowered, very difficult to raise them again
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
