Question 1. Consider businesses within the context of the market oriented philosophy.
Market-oriented businesses are performed through the organizations, whose actions are based on the marketing concept, namely:
- Market intelligence is the one that describes knowledge about the market. Marketing of intelligence in the broad sense includes not only knowledge about the customers, but also about all the exogenous factors (for example, competition, market regulation) that affect consumers.
- Exchange of information. Market orientation is not only the sphere of responsibility of the marketing department. The flow of information about the market should come not only from the marketing department, but from other departments as well (Deshpande, 1999).
- Response involves the translation of knowledge about the market in the active steps to develop and improve products and services, the introduction of market innovation.
Question 2. Managing the product and the importance of packaging.
Product management is one of the areas of marketing activities, the essence of which lies in the planning of products (including the release of the new products and the withdrawal from the market of the old ones), as well as in marketing support of the individual products at all stages of their life cycle. The purpose of product management is to create a balanced portfolio of products from the point of view of maximizing sales in kind or in cash (income or profit) in terms of the maximum term. Product management should be subordinated to the overall marketing strategy of the company (Annacchino, 2003). Importance of packaging can be seen in the following factors: further development of self-service in the retail industry; the huge amount of unplanned purchases consumers (60-70%); changing lifestyle of consumers; the increase in the number of fakes of branded goods; increased competition between producers; innovative activity of commodity-packers and development of their new technology and engineering solutions to impart additional packaging benefits.
Question 3. How do services differ from the physical good? Why are they so important?
Service is a commodity that cannot be dropped on the foot. Here are a few key differences between goods and services: intangibility, inhomogeneity, simultaneity of production and consumption, it is not possible to save (Klopper, 2006). From a marketing perspective, a service production, as compared to the product, features the large involvement of the client into the creation process. A consumer has an opportunity to participate in the creation of a product and to influence the outcome. Services may not be legally patented. It is necessary to note the impossibility of storage, warehousing, re-sale, or return of services. It is difficult to set the standards and to monitor the quality of services. Quality of service is not static, it is constantly changing, and one of the tasks involved in making a profit of the companies in the service sector is a constant maintenance level. Services have special pricing strategy, because to assess services in terms of money is sometimes quite difficult.
Question 4. What are the steps in developing your pricing strategy?
Development of the pricing strategy includes a number of works and settlements. First of all, the optimum value of the cost of production and distribution is determined by the companies in order to make profit at that price level in the market that the company can achieve for its products. Secondly, the usefulness of enterprise products to potential buyers establishes specific measures to validate compliance with the level of prices of the consumer properties. Third, the value of sales of products or market share for the company, in which production will be the most profitable, has to be determined (Nagle, Hogan, 2006). Development of the pricing strategy of the company is carried out in three stages: the collection of background information, strategic analysis, and strategy formation. The implementation of these development phases of the pricing strategy of the company consists of the following activities: assessment of the costs of production and marketing; clarification of the financial goals of the company; identification of the potential competitors of an enterprise; financial analysis of the company; market segment analysis; analysis of enterprise competition in a particular market; estimation impact of government regulation on pricing; determination of the final price strategy.
Question 5. What is the number of pricing tactics
The tactics of pricing are a set of concrete practical measures to manage the prices of products of the company for solving the problems of the specialists. Such measures typically include discounts and price premiums. Pricing tactics are the ongoing efforts to implement the pricing policy, in particular, the maintenance of installations of a strategic nature, performance of contracts, efforts to prevent and eliminate distortions in the pricing policy, to correct the negative effects of price changes, etc (Waldman, 2007). There is a number of pricing tactics; some of them are as following: changing or flexible prices; prices of consumer segments; psychologically attractive prices; step-tiered pricing; the redistribution of costs across the range; a single line prices on the trading floor; falling unprofitable leader; and organization of pre-season, theme, and holiday sales that can help to get rid of the unsold goods in the season, to free warehouses, and to extract money “frozen” in the unused products.
Question 6. What are the many functions a channel member can perform?
Channel members have a number of very important functions: research – gathering the information necessary to plan and facilitate the exchange; sales promotion – the creation and dissemination of persuasive communication on this product; making contact – establishing and maintaining contacts with potential buyers; the adaptation of goods – making sure that goods fit the requirements of the buyers; the negotiation – attempts to harmonize prices and other conditions for the subsequent implementation of the act of transfer of ownership or possession; the organization of movement of the goods – transportation and warehousing of goods; funding – seek and use of funds to cover the costs of the operation of the channel; risk acceptance – acceptance of responsibility for the operation of the channel; the manufacturer may eliminate or replace the organization’s channel system, but none of the functions can be eliminated (Rosenbloom, 2004).
Question 7. Explore the possibilities and the challenges of the Internet as a channel.
Using the Internet as a channel of distribution of products, services, or information technology is realized through e-commerce. Manufacturers and direct service providers have an option of using the new distribution channels in order to expand goods and services markets, as well as to get rid of the middlemen, who flooded the road to the retailer and the consumer (Keillor, 2007). The usage of the Internet gives an opportunity to avoid the use of intermediary organizations in order to automate the processes for collecting orders, making payments, and maintaining the database of buyers. This allows the retailer to execute the following functions: to investigate the prevailing trends in the commodity market, to determine the supply and demand for the specific types of goods, to liaise with consumers, etc. Customers also receive far more choices. However, internet as a channel has the inherent disadvantages, such as poor market development, lack of infrastructure, problems of communication (telecommunications environment), the problem of customers level of education, higher technological risks, the low level of management, distractions among the members (the threat of fraud), and so on.
Question 8. Discuss the eight modes of communication.
Marketing communications signify methods and forms of transmission of information about various products and services to the target audience, like a group of people, who are able to act on this information. Marketing communications designed to deliver information about the products and conditions of their sale to the potential customers, as well as the beliefs of the consumers to buy that product or purchase services in the certain stores (Varey, 2002). Marketing communications are of the several kinds. The most common form of marketing communication has always been advertising. The next type of marketing communications is sales promotion, consisting of the holding of shares, lotteries, providing seasonal discounts, bonuses and prizes for presentation of the packaging of certain goods. Other types of marketing communications are public relations, direct marketing, personal selling, the stimulation of demand, packaging, branded souvenirs, sponsorship, and maintenance and provision of the licenses for use of the product by the company or its characters.