2015 A
Section B
Answer B1:
Branding
No matter if the business is small or large, branding is regarded as one of the most significant aspects of a good business. There are products and services associated with every business. These products and services have to be differentiated from those of competitors by providing a unique name, a logo, a slogan which can be simply known as a brand. The brand is basically the identity given to a brand which makes it stand out from similar offerings in the domestic and international market. Customers build their perceptions on brands. The stronger and clearer the perceptions are, the more successful a brand would become.
Service Marketing
Services are intangible whereas products exist in tangible form. The process of marketing a product is different from marketing a service because services cannot be touched or felt. The quality of service can be determined by the customers only after it is consumed. There are four characteristics of services which set up the foundation of service marketing. Services are regarded as intangible, perishable, cannot be stored and they are inseparable. Winning the trust of customers in services marketing is difficult because the physical features of the offering are absent and it is only the credibility and trust of the service provider which can attract customers the first time. If customers find the quality of service to be in line with its marketing campaigns, then customers would exhibit loyalty which in return would make services marketing successful.
Positioning
Positioning is a very significant concept in marketing. Positioning is all about creating an image of the product or service in the mind of customers. Positioning has to be carried out very tactfully because once the brand is positioned in the mind of customers, their perception is very difficult and challenging to change. Every brand has a strong positioning statement which differentiates it from the competitors present in the market. The more valid and effective a brand is positioned, the more it will be able to attract and retain its customers.
Answer B2:
Primary Research
Primary research involves the collection of first-hand data by the researcher. Primary data is collected for the purpose of providing answers to research questions or when solving certain issues of complex nature. Primary research tools can be surveys, questionnaires, and interviews.
Descriptive Research
As the name suggests, descriptive research is a type of research which describes a problem or research in detail. Descriptive research can be both qualitative and quantitative in nature. Researchers who engage into descriptive research know what they are studying and where they would reach.
Experimental Research
In this kind of research, the researcher wishes to look closely at an issue or phenomena during the course of his research. In experimental research, one or more variables are involved in the research such as one is varied and others are kept constant to study the problem in depth.
Focus Group
Focus group is a technique mostly used in qualitative research where a group of people is questioned about their concepts, perceptions, attitudes and beliefs so as to acquire data which helps in carrying out research.
The Decision Tree
The decision tree is a graphical representation of an algorithm. It is designed in the form of a tree where each branch indicates important decisions as well as their respective outcome. The creation of decision tree usually takes place in the manual form.
Quantitative Research
In quantitative research, the data for research is collected in numerical form and then it is analyzed by making use of statistical and computational techniques. The methodology of the quantitative research is different from qualitative research as methods of data collection vary.
SECTION C
QUESTION C 1
Every product comes with a product life cycle which is basically based on its duration of existence in the market. It is necessary to have a product life cycle for every product so that the organization can estimate the life of the product and make plans for introducing better and improved products to replace it. There are four stages of a product lifecycle namely introduction, growth, maturity, and decline. In the introduction stage, the product in launched in the market. Due to marketing efforts, the product starts to gain market share and a generous number of customers which means profits tend to grow. The maturity stage indicates that the product is saturated and there is no further possibility to gain market share. In the decline stage, the decision regarding the harvest or improvement of the product is made. For instance, when Nokia realized that its products have reached maturity, it discontinued the production and distribution of more sets and sold itself into the hands of Microsoft wisely.
There are usually three levels of a product namely core, actual and augmented product. The core product actually refers to the intangible features associated with its physical features. For instance, in the case of a car, the core product could be referred to as convenience. The actual product is the tangible product which is being offered to customers. The augmented product refers to the additional or beneficial features of the product which could be the comfort and style of the car.
C 2:
For setting up the price of the solar powered, small engine based bicycle in New Zealand, the company has to set up its pricing strategies very tactfully. Since the concept is new, so the company would like to charge a premium from the customers, however, the price cannot be set at the high end as it will repel customers instead of attracting them. Firstly, the company will focus on cost-based pricing in which all the costs which are incurred in developing and marketing the product would be accumulated and then the company will set up its profit margin; the difference in the values would result in the price of the bicycle. Another possible way could be valued pricing which is used when there are few or no competitors and the costs cannot be estimated in approximation. So by measuring how much value or benefit the customers can derive from the product, the price of the solar recharged, small engine powered bicycle can be successfully determined.
C 3:
There are several elements of marketing communication embedded in the concept of the integrated promotional campaign. I will tell my friend that there are seven steps of integrated promotional campaign. The first step starts with having a very clear understanding of the target market and its audience; the second step is based on choosing the channels which are identified on the basis of the characteristics of that target market. The third and fourth steps are based on the idea that consistent and clear content must be included in the promotional message such that no deviations could occur in future. The next step allows the complete integration of all marketing channels such that all channels promote the same message and at the same time so as to cater the target audience with equal intensity. It is also significant to ensure that the agents internal and external to the advertising campaign work in collaboration with each other such that the right message is created and delivered to the target market. The last step calls for the monitoring and evaluation of the promotional campaign such that all the deficiencies are identified and corrective measures are taken where required.
C 4:
Maslow presented his hierarchy of motivation quite a long time ago and the idea is still used and practiced at present. There are five levels of hierarchy which are based on five types of human needs. The first pyramid in the hierarchy is based on psychological needs for food, shelter and clothing. The second level of the hierarchy is based on the safety needs such as protection and security from any possible external dangers. The next level in the hierarchy is occupied by the social needs for love and affection. The fourth level in Maslow’s hierarchy is known as self-esteem where the individual fulfills his need for self respect and attaining approval in his own eyes. The final need of Maslow’s hierarchy is known as the self-realization. This is where an individual realizes his potential and believes that he has acquired what he has been capable of. Marketers ensure that all the levels of needs are met before the individual achieves the highest rank.
New product development is a very important concept in the domain of marketing which is very risky too. However, the risks associated with the new product development can be minimized if the idea for the new product of generated after carrying out SWOT and analyzing the ROI (Triantis, 2013). Screening and testing are carried out to ensure that the concept is valid and that target market will be welcoming the new product. Evaluation will also be carried out to ensure that the new product will generate profits for the company and also pull in customers.
2015 B
Section B
B1
Segmentation
In order to understand the characteristics of the market, what social groups exist, their preferences and their buying pattern. The process of segmentation allows the marketers to identify which particular segment they believe can be served by their product or service. In simple words, the target market is derived from market segments.
SWOT Analysis
SWOT analysis is a technique used by companies to identify their strengths and weakness and keep an eye on the opportunities in the external market so as to increase their market share and improve profitability. The purpose of SWOT analysis is also to reduce the threats which are present in the external environment. SWOT analysis is essential to carry out before making a new launch or re-shaping the strategic structure of the firm so that it knows when and where to utilize its strong points and grab opportunities so as to overcome its weaknesses and minimize strengths.
Maslow’s Hierarchy of Needs
There are five levels of hierarchy in Maslow’s theory of needs. The first level is based on psychological needs such as the basic human needs of food, water, and shelter. The second level in the hierarchy is occupied by safety needs which are followed by social needs. The fourth level in the Maslow’s hierarchy is the self-esteem needs which is the stage where the individual needs to earn self-respect. The fifth and top level of the hierarchy is self-actualization. At this stage, the individual’s potential is realized and he can achieve what he is capable of achieving in personal and professional life.
B 2
Secondary Research
In secondary research, the researcher makes use of the existing data to carry out his research. Secondary research makes use of existing theories and concepts present in books, journals, reports and other form of print media. Secondary research helps in the identification of gaps in the existing research such that in future, research can be carried out in these areas.
Causal Research
In causal research, the cause and effect relationship of certain issues is studied. There are several phenomena where one aspect has a certain effect on another and causal research not only identifies cause and effect relationships but also present a complete understanding of it.
Quantitative Research
In quantitative research, the data for research is collected in numerical form and then it is analyzed by making use of statistical and computational techniques. The methodology of the quantitative research is different from qualitative research as methods of data collection vary.
Surveys
Surveys are regarded as significant research tools. Surveys help in gathering primary data for the purpose of fulfilling the objectives of the research. Surveys can be conducted online as well as offline depending upon the convenience of the researcher as well as the requirement of the research.
Qualitative Research
In qualitative research, the data is collected is analyzed through the formulation of hypotheses. It is useful in carrying out in-depth research about topics in social and natural sciences. It has been observed that the nature of qualitative research is descriptive and does not preferably deal with an exploratory or predictive form of research.
In-depth Interviews
In-depth interview is a technique mostly employed in qualitative research. In this method, a small number of interviewees are gathered and a detailed discussion is conducted with them regarding the topic of research. The interviewees provide their valuable insights, perceptions, and recommendations suitable for the research area.
Section C
C1
Branding is an activity which differentiates one brand from another in terms of its unique identity, benefits and features. Every product and service have to associate itself with a brand name so as to attract customers and gain a definite market share. Just like humans have names, religion, and castes which place them in a category and set them apart from the rest of the race, products and services also have an identity which is in the form of a logo, symbol, slogan etc. In the absence of brands, all products and services will look alike and customers would never know which of the offering provides quality and fulfill their needs and wants. The branding decisions such as the development of logo or slogan are carried out very carefully because these elements represent the brand personality. If the logo design and color scheme does not go with the image of the brand then the customers perception of the brand and its reputation would undergo distortion and ultimately have a negative effect on its profits and market share.
Every product comes with a product life cycle which is basically based on its duration of existence in the market. It is necessary to have a product life cycle for every product so that the organization can estimate the life of the product and make plans for introducing better and improved products to replace it. There are four stages of a product lifecycle namely introduction, growth, maturity, and decline. In the introduction stage, the product in launched in the market. Due to marketing efforts, the product starts to gain market share and a generous number of customers which means profits tend to grow. The maturity stage indicates that the product is saturated and there is no further possibility to gain market share. In the decline stage, the decision regarding the harvest or improvement of the product is made. For instance, when Nokia realized that its products have reached maturity, it discontinued the production and distribution of more sets and sold itself into the hands of Microsoft wisely.
C 2:
The selection of a suitable distribution strategy is very important for the newly introduced solar-powered bicycle. Distribution strategy is devised by keeping into mind the characteristics of the target market and how they would want to make their purchase. The target market for the solar powered, rechargeable bicycle is the young and enthusiastic campers or passionate bicyclers. The target market wishes to purchase the product at nearby bicycle stores, superstores as well as online on most visited and authentic websites such as eBay and Amazon. The distribution would be carried out selectively and not inclusively or extensively. The reason for choosing selective distribution is that unlike the requirement of inclusive distribution, we are not aware of the cost structure completely as the product idea is novel to the target market and not everyone can be passionate about owning it. Unlike exclusive distribution, the target market is not really composed of a special class. In fact, anyone who is interested in biking on roads and mountains or camping can make the most of our product.
C 3:
There are several elements of marketing communication embedded in the concept of the integrated promotional campaign.I will tell my friend that there are seven steps of integrated promotional campaign. The first step starts with having a very clear understanding of the target market and its audience; the second step is based on choosing the channels which are identified on the basis of the characteristics of that target market. The third and fourth step are based on the idea that consistent and clear content must be included in the promotional message such that no deviations could occur in future. The next step allows the complete integration of all marketing channels such that all channels promote the same message and at the same time so as to cater the target audience with equal intensity. It is also significant to ensure that the agents internal and external to the advertising campaign work in collaboration with each other such that the right message is created and delivered to the target market. The last step calls for the monitoring and evaluation of the promotional campaign such that all the deficiencies are identified and corrective measures are taken where required.
C 4:
There are five stages in a consumer buying process which assists the marketer in understanding the characteristics of customers and the approach they prefer to use while making their purchases. The first step is called need recognition. This is where the customer is able to identify a gap between what he does not have and what he wants to buy. There are several factors which help in the need recognition such as the latest fashion trends, changing lifestyles or opinions of influential people within a group setting. The second step allows the customer to seek information about the products or services he is looking for from both internal and external sources. In the third step, the customer makes an evaluation of all the products and features he came across in the second step by assigning them weight. The fourth step is based on the actual purchase decision of the customer. The customer purchases the product with the highest preference score. Finally comes the post purchase behavior of the customer which is either based on his levels of satisfaction or dissatisfaction towards the purchase.
The service marketing mix is almost similar to that of the marketing mix of a product. In service marketing mix, there is an addition of Ps apart from the traditional product, pricing, placement and promotion. The extended P’s are known as physical evidence, people, and processes. The psychical evidence refers to the building or physical setting in which the service would be provided. The attitude, behavior and overall knowledge of the employees of service organizations if found appealing and polite would attract more customers. The processes refer to the ways and rules which are strictly followed while offering services to the customers.
PESTLE Analysis
PESTLE analysis is used by organizations when they want to analyze their external business environment. Political, economic, social, technological, legal and environmental factors make up the external environment for any organization. When businesses wish to expand beyond international borders, the first step they perform is the carrying out of PESTEL analysis. If the political situation in the chosen region is stable and no turbulence exists then the organization can be sure that its operations would be facing no harm from political aspect. The global economy is changing and the organization must carry out an extensive study to find out how the economy of the chosen country is being affected and what are it’s future prospects are. Social preferences vary from region to region which must be taken into consideration on a serious basis. Technology is one factor which constantly keeps on undergoing change and improvement. So ensuring that the latest technology is adopted can guarantee success. Legal regulations vary so a sound knowledge of business laws is mandatory so that the organization can operate without violating legal terms. The concern for environment protection is on the rise which means that the organization must operate in an environment friendly manner and encourage the production and distribution of green products and services.
Reference
Triantis, J. E. (2013). Navigating Strategic Decisions: The Power of Sound Analysis and Forecasting. CRC Press.
