Exam written questions

What are some specific research methods to use when developing a new product line?

• market segmentation research

• competitive analysis

• product design and features to research

• pricing strategy research

• distribution channel research

• branding and packaging research

• marketing and promotion effectiveness

market segmentation research

• research method: surveys and focus groups

• target groups: intended customers

• data to collect: demographic information, psychographic characteristics, and buying behavior, as well as interests, usage patterns. this data will help in segmenting the market effectively

competitive analysis

• research method: secondary data analysis

• target group: successful competitors

• data to collect:  pricing, features, marketing strategies of competitors. will provide insights into what is currently successful and how a new product line can differentiate itself

product design and features research

• research method: concept testing and prototyping

• target group: intended targeted customers

  • data to collect: test concepts and prototypes with actual users. gather feedback on design, features, and playability to ensure the product aligns with target customer’s preferences and expectations

pricing strategy research

• research method: conjoint analysis

• target group: buyers

  • data to collect: use conjoint analysis to understand pricing preferences of the target market. this research will help in setting competitive and attractive pricing for product

distribution channel research

• research method: retailer and distributor surveys

• target group: retailers and distributeor in the industry

  • data to collect: understand preferred distribution cannels and partners for product. this will help in selecting the right channels for the new product line and establishing strong partnerships

branding and packaging research

• research method: A/B testing and consumer surveys

• target group: customers

  • data to collect: test different branding and packaging designs to identify which ones resonate most with the target audience. collect feedback on branding and packaging aesthetics and messaging

marketing and promotion effectiveness

• research method: marketing campaign testing and social media analytics

• target group: consumers who have interacted with marketing campaigns

• data to collect: analyze the effectiveness of marketing campaigns by monitoring engagement, click-through rates, and conversion rates. adjust campaigns based on data to maximize impact

Political

factors that encompass the influence of government policies, regulations, stability, and overall political climate on a business. 

e.g. taxation policies, trade restrictions, government stability, and political ideologies

Political effect on marketing

• import/export regulations impact sourcing and pricing strategies

• restriction on advertising or labeling requirements influence marketing of product

• political unstable climate affect investment decisions and market expansion plans

• market entry strategies and international expansion

Economical

factors that relate to the economic situation within which a firm operates

e.g. inflation, exchange or interest rates, GDP growth, consumer income levels

Economical effect on marketing

• direct impact on pricing strategy

• understanding consumer income levels helps in segmenting and targeting specific market segments based on purchasing power

Social

cultural, demographic, and societal trends that shape consumer behavior

e.g. demographics, lifestyle choices, social values, and customer attitudes

Social effect on marketing

• crucial for market segmentation and product positioning

• need to understand target audience and adapt marketing strategy 

Technological

relate to impact of technological advancements and innovation has on a business

e.g. advancements in communication, automation, R&D, and the rate of technological change. has transformed market with digital advertising, e-commerce, and data analytics

Technological effect on marketing

• need to be updated on latest technological trends to remain competitive

• can lead to new marketing channels and strategies (e.g. social media)

• understanding trends help firms adopt right tools and platforms to reach target audience effectively

Environmental

ecological and sustainability concerns that affect a firm’s operations

e.g. pollution, climate change, natural resource availability, environmental regulations

Environmental effect on marketing

• influence market strategy

• consider sustainability and environmental responsibility when designing and promoting products

• non-compliance can lead to reputational damange, legal penalties which necessitates a proactive marketing strategy to adress and rectify such issues

Legal

legislation and regulations that governs business operations.

e.g. consumer protection laws, antitrust legislation, intellectual property rights, product safety laws, competition laws, contract laws

Legal effect on marketing

• shapes a firm’s marketing approach. compliance with laws is non-negotiable

• antitrust laws impact pricing strategies and market competition

• product labeling and advertising must adhere to thruth-in-advertising laws

pros with co-branding

• increase revenue

• buzz marketing and garner attention

• borrow meaning/populatiry from co-brand

• extend original brand

• vauable combination

• access to partner’s customer base, reach new segments and expand target audience

• shared costs and marketing resources

• strenghten brand image/equity (enhance perceived value)

• faster market penetration of new product

• enables creativity and innovation

cons with co-branding

• brand dilution/mismatch (confuse customers)

• limited appeal and product risk

• cannibalization (co-branded product might cannibalize sales)

• operational complexity and limited control

• reputation risk

• short-term novelty, may not sustain long-term interest

name some brand expansion strategies for a company who seeks to remain n the same products category

• line extension

• co-branding

• private label manufacturing

• brand licensing

line extension

existing brand, existing market

• introduce new flavors and product variants under the same brand

• allows for firm to capitalize on the existing brand’s equity and customer loyalty

• minimizes risk associated with launching new brands

• may require product innovation and marketing research

• pricings can be adjusted based on added value for new variations

• can leverage existing relationships with suppliers and distributors

Brand licensing

license brand to other manufacturers/companies for product diversification

• can expand into complementary product categories produced by other firms

• allows to earn royalties without significant operational investment

• maintains focus on core product category

• should ensure strict quality control and protect brand’s reputation

• pricing and profit-sharing agreements with licensees must be negotiated

Private label manufacturing

products are manufactured to be sold under another company’s brand

• can utilize production expertise to manufacture product for private label retailers in different countries

• generates additional revenue without need for substantial marketing or brand-building efforts

• pricing structure needs to be competitive, balancing profitability and desire to attract retailers

• may require establishing or expanding production facilities in international markets potentially through partnerships or acquisitions

Describe briefly good-service continuum and explain how the two extremes – pure products and pure services– differ from each other from marketing perspective

The good-service continuum is a scale/framwork that categorizes products, which can range from tangible to intangible, with pure products being physical products which changes ownership. and pure services are not physical, with no ownership being transferred.

Describe the key elements of the model of communication process

• Sender: the party who sends the message, oftentimes a firm/marketing operation

  • Intended message: the message that the sender wants to communicate to the receiver

  • Encoding: formulate and putting message into symbolic form

• Medium: the communication channel in which the message is conveyed

  • Encoded message: The content (symbols) that the sender transmits

• Receiver: the one who sees/gets the message

  • Decoding: decoding the message and understanding it. The receiver assigns meaning to the symbols

  • Interpreted message: , the message is understood and interpreted by the receiver

• Back to the sender:

  • Response: receiver’s response to the message, feelings, thoughts etc.

  • Feedback: the receiver’s feedback to the message, was it conveyed successfully? Did it lead to a purchase etc? the part of the receiver’s response that is communicated back to the sender

• Noise: things that may disturb the message and lead to miscommunication during the process, unplanned static or distortion during communication process e.g. cultural differences, typos etc.

How is the model of communication process relevant for international marketing?

• Encode culturally appropriate messages

• Choose effective medium/media channels

• Receive and interpret feedback accurately

• Overcome cultural and linguistic noise

• Build stronger, clearer connections with diverse audiences

Explain briefly the traditional functions of the distribution channel:

• Physical distribution: The distribution of physical goods, through wholesalers or/and retailers so that the manufacturer’s products reach consumers through the distribution channel. Transporting and storing goods

• Financing: acquiring and using funds to cover costs related to distribution, financing transportation and storage costs

• Risk-taking: assuming the risks associated with carrying out channel work

• Information: gathering information about distribution, customers. Gathering and distributing marketing reasearch

• Promotion: developing and spreading persuasive promotions and communications about an offer

• Contact: finding and communicating with prospective buyers

• Matching: shaping and fitting the offer to the buyer’s needs

• Negotiation: reaching an agreement on price and other terms of the offer

Describe the product/market expansion matrix

• Market penetration: existing market and existing product

  • increase marketing and sell more existing (or slightly improved) products to the same customer base

  • increase product usage through promotion (e.g. new applications of product, changed pricing, seasonal promotions), increase usage among customers (frequency of use, quantity used)

• Market development: new market, existing product

  • Geographic extension

  • Target new segments

• Product development: existing market, new product

  • Product improvement

  • Product line extensions

• Diversification: new market, new product

  • Vertical integration

  • Diversification into related/unrelated markets

What are the main differences between cost-based (kostnadbaserad) and value-based pricing (värdebaserad prissättning)?

Cost-based: pricing is based on production, marketing and other related costs. Price should cover the cost of the product and add a profit. E.g. IKEA

Value-based: pricing is based on the customers perceived value of the product, capturing the value customers see in the product. E.g. apple is pricier because of the brand and based on how much the customers perceive the Iphone is worth. E.g. other luxury products

The buyer decision process (köpbeslutsprocessen) describes the typical phases consumers go through when making purchases. Describe this process and its phases.

• Need recognition: the consumer realizes a need or problem

• Information search: customer searches for information about product that is needed/possible solutions, which brand/stores/online/asking friends, noticing ads

• Alternative evaluation: customer evaluates alternative products, prices, design, use, quality, brand etc.

• Purchase decision: customer chooses a product and makes the purchase. Factors like availability, promotions and brand loyalty can affect decision

• Post-purchase behavior: customer reflects on their satisfaction. do I get value from this product? Evaluation, was this worth purchasing or not?

Describe in terms of the marketing mix (product, price, place, promotion) the options available for a firm to adapt its marketing strategy to local conditions. Also explain why firms need to make these adaptations.

Product: adapt product to country/local preferences. Modify product features to suit local tastes, climate or usage habits and adjust packaging, sizing or ingredients and localize branding elements such as colors, symbols or naming. E.g. change name, taste to something familiar.

• Why: consumer preferences, cultural norms and functional needs vary across regions

Describe in terms of the marketing mix (product, price, place, promotion) the options available for a firm to adapt its marketing strategy to local conditions. Also explain why firms need to make these adaptations.

Price: adapt price to local economy, exchange rates etc. Adjust pricing to reflect local purchasing power and competitive landscape, use tiered pricing or bundle offers to match local value perceptions, consider currency fluctuations, taxes and import duties.

• Geographical, willingness to pay, taxation, differences in positioning

• why: do we want to have the same branding or change our position to be more pricy/budget? The buying power differs depending on the economy. Able to pay? Taxation

• Why: price sensitivity differs across markets

Describe in terms of the marketing mix (product, price, place, promotion) the options available for a firm to adapt its marketing strategy to local conditions. Also explain why firms need to make these adaptations.

Choose distribution channels that match local shopping habits, partner with local retailers or platforms, adapt logistics to local infrastructure and regulations. how it is distributed, in country with less access to e-commerce and delivery not suitable for this kind of distribution. Has to make sure that product can reach target segment. E.g. whole channel approach, which retailers are available?

• whole channel approach, control of foreign channels more difficult, internet as a channel

•  Why: accessibility is key

Describe in terms of the marketing mix (product, price, place, promotion) the options available for a firm to adapt its marketing strategy to local conditions. Also explain why firms need to make these adaptations.

Tailor messaging to local language, values and humor. Use regionally relevant media channels and influences, align campaigns with local holidays, events or social issues. cultural differences, local regulations, must adapt to not be criticized and succeed. Adapt branding?

 

• Why: promotional content must resonate emotionally and culturally. Misaligned messaging can lead to misunderstanding or backlash

What are the pros (fördelar) of choosing to adapt a firm’s marketing mix in international markets?

• cultural relevance (increase resonance and consumer acceptance)

• competitive advantage (differentiate brand from global/domestic competitors)

• improved customer satisfaction (result of meeting local needs precisely)

• regulatory compliance

• market penetration (customized strategies can improve access, visibility and conversion in diverse markets)

What are the cons (nackdelar) of choosing to adapt a firm’s marketing mix in international markets?

• Higher costs

• Complexity in management (coordinating multiple localized strategies)

• Risk of brand fragmentation (dilute brand identity and confuse global consumers)

• Slower implementation (delay market entry due to research, testing, approvals)

• Inconsistent performance (misjudging local preferences etc. adaptation not always successful)

Describe each level in maslows hiearchy of needs

• Physiological Needs: These are the most basic human needs for survival, such as food, water, shelter, and sleep. They are the foundation of the hierarchy because they are essential for maintaining life.

• Safety Needs: Once physiological needs are met, safety becomes the priority. These needs encompass personal and financial security, health, and protection from harm or threats, such as stable employment or safe shelter.

• Social Needs: Also known as love and belonging needs, these include the desire for interpersonal relationships, social connections, love, and a sense of belonging within a community or group.

• Esteem Needs: At this level, individuals seek respect, self-esteem, recognition, and a sense of accomplishment. It involves both self-respect and the respect or admiration of others.

• Self-Actualization Needs: The highest level involves realizing one’s potential, personal growth, creativity, and the pursuit of goals that bring a sense of fulfillment and self-accomplishment.