This collates all the exam questions I have answered with the points + analysis I mentioned in them summarised with teacher feedback in mind.
Some of the answers are in context! But students can reuse the same format when approaching other questions :))
GOOD LUCK WITH EXAMS!!
- leads to competitive advantage as a result of market orientation
- consumer needs met
- lowered PED
- understanding competitors
- time-consuming
- secondary market research can be outdated/unreliable -- primary is expensive
product orientation importance
definition: the business concentrates on the production process and designing the product
rather than trying to “meet customer preferences”
- reduces the need to carry out market research
- builds exclusivity
in terms of Rolex…
- Rolex focuses on quality in marketing
- products made by skilled craftspeople
- Rolex has built a global reputation for luxury
important because…
- customer purchase on basis on quality and brand image, rather than Rolex adapting
to customers’ needs
1.1.3 Market positioning
market positioning: an effort to influence consumer perception of a brand/product, relative
to the perception of competing brands/products -- this is achieved through product
differentiation and adding value
importance
- allows the company to take advantage of premium pricing
- business can achieve differentiation through adding value by..(insert context)
- e.g. ‘fantastic business class experience’ and ‘exceptional customer
service’
- increases competitiveness with Qatar and British Airways
- travellers will be willing to pay a higher pricing due to that reputational
advantage
- they need to have analysts constantly reviewing their pricing
, - PESTLE/economic conditions
- families are more likely to forgo the premium service
- enables an increase in market share
- positioning at the higher price/quality end of the market means company
understands exactly how much to invest in customer service/employees to
achieve exceptional customer satisfaction
- increases market share as a result of higher sales which is significant
because … (use context)
- positioning in the luxury market leads to vulnerabilities to external shocks such as a
recession
- consumers who normally travel out of the country may opt for a staycation
which avoids air travel (airline market)
- company must ensure their service is so premium/high end that customers
who are not affected by economic downturn will continue to be loyal
- the negotiations of flights could be more important
- emirates need to negotiate around the world to ensure they have the right
flights for their customers, especially when working with business travellers --
logistics
- negotiations of costs of fuel
- they should have a fixed agreement of cost of fuel with their providers
who is travelling? (conclusion)
- families or business people?
- are the businesses price-driven? no -- good for the airline
- they want employees to have a comfortable journey so they can work
straight away
1.3.1 Product/service design
ways to change design mix to meet consumer needs
(restaurants)
- adding self-service kiosks
- covid has changed consumer preferences -- demand for efficiency
- tech staff must be employed -- who will recruit?
- customisation service
- appeals to all dietary preferences
- costs of raw materials -- new ingredients -- products are often more expensive
which cater to dietary requirements
, 1.3.4 Distribution
importance of distribution in marketing mix
distribution is concerned with getting products to the right place for customers and at the
right time
- gives consumers choice
- can buy direct from manufacturers or through an intermediary such as an
authorised stockist
- increases competitivity if company uses a range of channels to compete with other
brands that have been expanding rapidly into online sales
- higher sales -- sale isn’t lost if out of stock in-store
- product design more important due to Rolex being associated with quality --
customers must be willing to pay the higher price because of the design
- pricing is more important -- higher pricing suggests higher quality
- promotion is more important -- built on company reputation
1.3.5 Marketing strategy
product portfolio + boston matrix
spreading risk through greater market share
- operating in a range of segments means avoidance of relying on performance of one
market
- the current economic crisis means customers may choose to buy a cheaper product
and not the luxury product as they previously may have done
- this means the company still maintains its market share albeit in a different market
segment
- this spread of risk enables the company to remain competitive which would allow the
cash cow of one market to support the development of a rising star in a different
market -- leads to maintained revenues even if one market is underperforming
- the company should ensure they focus their understanding of the markets they are
operating as marketing mixes can vary between brands -- they need to employ
enough teams to facilitate this with experience in the niche/mass areas
- can lead to expensive recruitment and advertising and placement costs as each
brand is different which could impact revenues and profits negatively
- some brands could be in competition with one another -- company must manage this
carefully so that they don’t take market share away from one another, rather work
together to increase the market through innovation
economies of scale
- higher buying power means negotiation with suppliers for greater volume purchases
can decrease unit prices of raw materials
- lower cost = added value from lower pricing = potential profit = satisfied shareholders
= greater opportunity for investment
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