THE STRATEGIC FOCUS ON CRM, 3) THE EXPANDING ROLE OF DATABASE MARKE...
2) the strategic focus on CRM, 3) the
expanding role of database marketing 4) the sudden and dramatic impact of the In
ternet and other communications
technologies and 5) greater demand for efficiency and accountability.
Discuss the key requirements of business markets and how they buy differently than consumer markets.Answer Given
Business markets demand quality (consistent quality on every order), service
(reputable suppliers with prompt
service), continuity of supply (a steady source of supply) and price (buyers evaluat
e price in conjunction with other
criteria). To ensure that the right buying decision is made, organizations employ a
formal (buying committee) or informal (buying centre) approach.
Discuss the difference between consumer sales promotion and trade sales promotion and give an example of each.Consumer sales promotions are targeted to the final consumer and include coupo
ns, free samples and contests. Trade
sales promotions involve offering price discounts to distributors for purchasing goo
ds in large quantities or for
performing some kind of marketing or merchandising task.
According to the self-concept theory, the self has four components. Name and describe them.Real self, self image, looking-glass self and ideal self
What is psychographic segmentation? Give an example.Psychographic segmentation is the identification of a target market according to lif
estyle characteristics such as
activities, interests, and opinions. An example is McDonald s
ʹ
targeting consumers
trying to practice a healthy lifestyle with their new healthy alternatives.
Describe the assumptions behind Maslow sʹ Hierarchy of Needs.Maslow s
ʹ
theory is based on two assumptions - a) when lower-
level needs are satisfied, a person moves up to higher-
level needs and b) satisfied needs do not motivate. Instead, behaviour is influenc
ed by needs yet to be satisfied.
What is the difference between needs and motives?A need is the perception of the absence of something useful. A motive is a conditi
on that prompts the individual to take action to satisfy the need.
List the five levels of Maslow sʹ Hierarchy of Needs and give an example of each.Physiological needs (hunger, thirst), safety needs (security, protection), Social nee
ds (belonging), Esteem needs (recognition, achievement), Self-
actualization (fulfillment)
What is CRM? Describe a company that demonstrates CRM.CRM is a practice that is designed to attract, cultivate, and maximize the return fro
m individual customers.
Describe the key roles in a buying center for business to business markets.Users, influencers, buyers, deciders, gatekeepers.
Discuss customer relationship management. What does it involve and how is it impacting communications?Customer Relationship Management programs are concerned with establishing, m
aintaining and enhancing long -term
relationships; they involve collecting information about customers that can be used
to develop and sustain those
relationships. These programs call for marketing and marketing communications
programs that are designed to
approach customer groups (targets) collectively and each customer individually. C
RM has resulted in the shift from
more traditional forms of communications to other forms of communication such a
s direct response or interactive marketing.
Explain the difference between product advertising and promotional advertising and give an example of each.Product advertising provides information that helps build an image for the product.
Promotional advertising is
advertising that communicates a specific offer to encourage an immediate respons
e from the target audience.
What is market segmentation?The division of a large market into smaller homogeneous markets based on comm
on needs and characteristics. It is a
three step process: identifying market segments by profiling the primary user, sele
cting the segments that offer the
greatest profit potential and positioning the product so it appeals to the target mark
et.
Define public relations and give an example of public relations.Public relations is a form of communications designed to gain public understandin
g and acceptance. An example is a press release.
Identify and briefly explain the components of integrated marketing communications.Advertising, public relations, sales promotion, personal selling, event marketing, s
ponsorship, direct response, interactive communications.
Discuss how consumer behaviour knowledge is applied to the development of marketing communication strategies.Consumer behaviour knowledge in the areas of needs and motives, personality an
d self concept, attitudes and
perceptions, reference groups and families are considered when an organization p
lans its marketing communications strategies.
Describe the three levels of selectivity.Selective Exposure (our eyes and minds notice only information that interests us,
Selective Perception (we screen out
messages that conflict with our attitudes), Selective Retention (we remember only
what we want to remembe