Understanding Market Segmentation, Product and Pricing Strategies, and Online Marketing

Market Segmentation and Targeting

Task:

 

Question 1

The practice of market segmentation and targeting is important for companies because it minimizes the amount of time, money, and effort marketing strategists put in certain campaigns.

a) Distinguish clearly the concepts of market segmentation and market targeting. (4 marks)

b) Identify and explain the FOUR (4) ways market segmentation can be carried out. (12 marks)

c) Identifying the requirements for effective market segmentation allows companies to create marketing campaigns that are essential for their growth and development. Explain any TWO (2) criteria for effective segmentation.

Question 2

As technology gives more and more products a service element (as in customer service, online sales, instruction manuals, communities, etc.), products begin to take on some of the elements of services. But in general, services and products require vastly different marketing approaches. In view of this:

a) Identify and explain FOUR (4) factors one can use to distinctly separate a service from a product. (8 marks)

b) In order to understand a product better, Kotler proposed examining each product as though it were actually three separate products. Together, these three separate products are known as the Three Product Levels. Using an example of a product, explain the THREE (3) levels of a product.

Question 3

In the context of the ongoing COVID crisis, adopting value-based pricing in the middle of a major recession is not an easy proposition. However, at the same time companies using cost-based pricing may not reap sufficient profits to stay afloat. In view of this:

a) Explain clearly how cost-based pricing is different from value-based pricing. Which method of pricing should companies adopt in today’s Covid climate? Provide a suitable justification for your choice.(11 marks)

b) In times of crisis and recession, the market is highly sensitive to pricing. In such markets, low price leads to higher share of the market as customers prefer to use low-priced products. Suggest if market skimming or market penetration pricing strategies correctly depicts the above strategy. Explain how and why this would work. (5 marks)

c) Identify any TWO (2) price adjustment tactics and briefly explain what they entail.  (4 marks)

Question 4

Place factor is crucial in ensuring your product’s competitiveness in the market. The more swiftly the products reach the point of sale, the more likely are the chances of satisfying the customers and increase brand loyalty. In view of this:

a) Explain what is meant by a vertical marketing system and a horizontal marketing system.(6 marks)

b) Provide an example where a horizontal marketing system may be detrimental due to brand incompatibility. (4 marks)Promotion includes all activities that involve communicating with the customer about the product and its benefits and features.

c) Identify and explain FIVE (5) promotional tools, stating how effective they are in today’s society.

Question 5

A strong online marketing strategy will help companies boost business, improve performance and create a concrete internet marketing strategy that will help you bring in more customers and retain new ones. In view of this:

a) Identify and briefly describe the SEVEN (7) main online marketing tools. (14 marks)

b) According to statistics, worldwide e-retail sales are expected to grow to $4.8 trillion by 2022. Despite this, companies must be cautious of the dangers. Explain any THREE (3)  disadvantages associated with online distribution.