a)Examine and review critically the four areas of marketing communication. Provide examples where necessary.(10 marks)
b)Explain in detail the basic pricing strategies. Give examples to support your answers.(10 marks) Question 2
Identify and describe the most often used sources of differentiation. Give examples to support your answers.(20 marks)
Ursula is a marketing manager for a bathroom tile company. She is trying to figure out if her firm needs to utilize a push or pull strategy. What are the differences between a push and pull strategy.(20 marks)
Jessica has just been hired as a manager for a new retail store. She is working on creating an effective retail strategy, but has forgotten some of the steps. Walk Jessica through steps of creating an effective retail strategy.(20 marks)
Discuss the seven key success factors in personal selling. Provide examples where necessary.(20 marks)
Question 1 (a)
The four areas of marketing communication are as follows;
Advertising is bringing a product or service to the attention of potential and current customers. Advertising is focused on one particular product or service. Thus, an advertising plan for one product might be very different than that for another product. Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, for example New Media Advertising (Internet), TV, radio, newspaper and magazine. ii)Personal Selling
Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the sale". Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service). iii)Public Relations
Public relations include ongoing activities to ensure the overall company has a strong public image. Public relations activities include helping the public to understand the company and its products. Often, public relations are conducted through the media that is, newspapers, television, magazines, etc. As noted above, public relation is often considered as one of the primary activities included in promotions. iv)Sales Promotion
Sales promotion is any initiative undertaken by an organisation to promote an increase in sales, usage or trial of a product or service. Sales promotions are varied, and the examples are as follows; a)Buy-One-Get-One-Free (BOGOF) - which is an example of a self- liquidating promotion. This is known as a premium sales promotion tactic. b)Customer Relationship Management (CRM) - incentives such as bonus points or money off coupons. There are many examples of CRM, from banks to supermarkets. c)New media - Websites and mobile phones that support a sales promotion. For example, in the United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a consumer would enter the code into a dynamic website to see if they had won a prize. Consumers could also text codes via their mobile phones to the same effect. d)Merchandising - additions such as dump bins, point-of-sale materials and product demonstrations.
Question 1 (b)
Price plays an important economic function when it becomes a monetary exchange of value. Price is the amount that consumers are willing to pay for the value that they receive. Companies face a great challenge in determining an appropriate pricing structure for all items they have in their product line and product mix. As products progresses throughout their lifecycle, their characteristics such as customers,...