1.

Marketing Definition (Slide 16-20):

o Evolution from "telling/selling" to "satisfying customer needs."
o Social/managerial process creating value through exchanges.
o AMA definition: Discovering needs/wants and satisfying them via exchanges.
2. Core Concepts (Slide 24-30):
o Needs (basic deprivation), Wants (culture-shaped desires), Demands (wants +
buying power).
o Value = Perceived benefits - Costs; Satisfaction = Performance vs. Expectations.
o Relationship Marketing: Building long-term customer/stakeholder bonds.
3. Marketing Mix (4 Ps) (Slide 23):
o Product, Price, Place (distribution), Promotion (communication).
4. Digital Context (Slide 32-37):
o Web enables information search, competitor comparisons, and co-creation (e.g.,
Nike customization).
o 2022 Stats: 4.95B internet users (62.5% global), 6h 58m avg. daily use, 92.1%
mobile access.
o Top online activities: Social connection (58.8%), news (53.1%), product research
(46.8%).
5. Marketing Process (Slide 15):
o Mission → Situation Analysis → Strategy → Marketing Mix →
Implementation/Control.

1. What is marketing?
Marketing is a social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others. It involves
discovering customer needs and wants and satisfying them through value-based exchanges.

2. Contrast the "old sense" vs. "new sense" of marketing.

The old sense of marketing focused on making a sale, often summarized as “telling and selling.”
The new sense emphasizes satisfying customer needs—it’s more about understanding what
people want and delivering it, rather than just pushing a product.

3. Explain the difference between needs, wants, and demands with examples.
• Needs are basic states of felt deprivation (e.g., hunger, safety).
• Wants are how needs are shaped by culture and personality (e.g., wanting pizza instead of
just food).
• Demands are wants backed by purchasing power (e.g., being able to buy the pizza you
want).
4. How do "customer value" and "customer satisfaction" interrelate?
Customer value is the difference between what the customer gains from using a product and what
they give up to get it. Satisfaction measures how well a product’s performance matches the buyer’s
expectations. High value tends to lead to high satisfaction.

5. Describe the 4 Ps of the marketing mix and their role in strategy.

The 4 Ps are:
• Product – What you’re offering.
• Price – What the customer pays.
• Place – How the product reaches the customer.
• Promotion – How you communicate value.
These are controllable factors that marketers use to target and satisfy customers effectively.

6. Why is relationship marketing critical in the digital age?

Relationship marketing builds long-term, value-driven relationships with customers and
stakeholders. In the digital era, it supports continuous, personalized engagement and helps
companies retain customers, especially through tools like emails, social media, and CRM systems.

7. How has the web transformed consumer decision-making?

The web has empowered consumers to:
• Search for information instantly
• Compare competitor offers
• Read reviews and participate in co-creation
This shift gives consumers more control and transparency, influencing how they research
and buy products.

8. Interpret key 2022 digital trends (Slide 34) for marketers.

Digital trends included:
• A growing importance of web-based buying behaviors, especially for services
• Increased use of the web for information searches and comparisons
• Consumer participation in product development (co-creation)
Marketers must adapt by using digital tools for engagement and innovation.

9. What does "omni-channel" mean, and why is it important?

Omni-channel refers to a marketing approach that connects all customer touchpoints—online and
offline—into one seamless experience. It’s important because customers expect consistency and
convenience across all channels, from websites to physical stores.
10. How might a brand use "consumer co-creation" (Slide 32) strategically?
Brands can involve consumers in designing or improving products—for example, letting
customers customize shoes (like Nike) or plan travel experiences. This increases engagement,
loyalty, and product relevance because the customer feels ownership and involvement.

11. Outline the marketing process steps (Slide 15) for launching a new product.
The marketing process involves three key steps:
1. Understand the marketplace and customer needs
o Start with market research to identify customer needs, problems, and desires.
2. Design a customer-driven marketing strategy
o Segment the market, choose target customers, and define your product’s
positioning to serve them better than competitors.
3. Construct an integrated marketing program
o Use the 4 Ps (Product, Price, Place, Promotion) to deliver value and build customer
relationships.
This process helps ensure that the new product is relevant, well-communicated, and positioned for
success in the market.
 1. Digital Marketing Shift (Slide 7-8):
o Transition from static (traditional: print/TV) to dynamic, interactive digital
marketing (websites, social media).
o Web 2.0: User-generated content, collective intelligence, two-way communication
(vs. Web 1.0's read-only).
2. C2C & Value Co-Creation (Slide 2-5):
o C2C interactions: Empower consumers, drive e-WOM (electronic word-of-
mouth).
o Consumer value drivers: Connection, advice, recognition.
o Business value drivers: Revenue, customer sentiment, brand health, share of
voice.
3. Customer Journey (Slide 11-15):
o Funnel stages: Attract → Convert → Close → Delight.
o Touchpoints: Omni-channel integration (social media, email, apps, in-store).
o Key insight: Content drives all journey stages (awareness to advocacy).
4. Environmental Scanning (Slide 18-21):
o 5 Forces Analysis: Social, Economic, Technological, Competitive, Regulatory.
o Examples:
▪ Social: Demand for personalization/authenticity.
▪ Technological: AI, voice assistants, visual search.
▪ Regulatory: GDPR/CCPA impact on data privacy.
5. Demographic/Cultural Forces (Slide 22-29):
o Generational cohorts: Gen Z (1997-2012), Millennials (1981-1996), Gen X
(1965-1980).
o Culture: Transmitted values shaping consumer behavior (e.g., gender role
evolution).

1. Contrast Web 1.0 and Web 2.0, highlighting three key differences

Web 1.0 Web 2.0

Static websites, read-only Dynamic and interactive, read-write
One-way communication (company to
Two-way interaction and user participation
consumer)
Heavy reliance on content co-creation and
Limited user-generated content
sharing (UGC)

Web 2.0 is built around user participation, network effects, and collective intelligence, forming the
basis for modern social media marketing.
2. Explain how C2C interactions create value for businesses beyond traditional marketing
C2C (Consumer-to-Consumer) interactions—especially on social media—help companies in ways
that go beyond traditional ads:
• Empower consumers to share honest opinions
• Enable e-WOM (electronic word of mouth), influencing others' buying behavior
• Allow brands to monitor conversations and validate or adjust their messaging
These dialogues can be shared, stored, and replayed, making them powerful trust-building
tools.

3. Describe the "digital marketing funnel" stages and give one tactic for each
• Awareness – Use SEO or online ads to attract visits
• Consideration – Offer detailed product pages or comparison tools
• Conversion – Optimize checkouts with discounts or free shipping
• Loyalty – Send personalized emails or run loyalty programs
• Advocacy – Encourage reviews and referrals via social sharing buttons.

4. How does "showrooming" (Slide 6) reflect a challenge in omni-channel marketing?

Showrooming happens when consumers visit stores to inspect products but buy online to get better
deals. It challenges omni-channel marketing because:
• Retailers lose in-store sales
• Price transparency pushes consumers to online competitors
• It forces businesses to unify pricing and integrate offline and online experiences.

5. Analyze how environmental forces impacted the coffee industry (Slide 19)
Key trends affecting the coffee market:
• Decrease in total adult coffee drinkers
• Increase in gourmet coffee consumption
• Younger adults drink less coffee than older ones
Implications: Businesses need to adapt by offering premium, health-conscious, or more
personalized coffee options to stay competitive.

6. Why is Web 2.0 the foundation of social media marketing?

Web 2.0 enabled:
• Real-time, two-way communication
• User-generated content and crowdsourcing
• Peer-to-peer engagement and content sharing
These characteristics are exactly what make platforms like Facebook, Instagram, and
YouTube effective for marketing.
7. How might a brand use touchpoints (Slide 15) to enhance customer advocacy?
A brand can boost advocacy by delivering a strong, consistent experience across various
touchpoints such as:
• Website (smooth UX, clear messaging)
• Email (personalized updates)
• Social media (engagement and responsiveness)
• In-store (good service)
A positive experience at every stage helps turn customers into loyal promoters.

8. Discuss a regulatory force (Slide 21) affecting digital marketing strategies today
One key regulatory force is consumer protection—laws that prohibit misleading ads and require
transparency in data use. Examples:
• GDPR in Europe impacts email marketing and cookie tracking
• Companies must ensure clear consent and secure handling of user data
These rules shape how marketers collect and use consumer info.

9. Why do generational cohorts (Slide 25) matter in environmental scanning?

Each cohort (e.g., Millennials, Gen Z, Baby Boomers) has unique values, habits, and tech usage.
Understanding them helps marketers:
• Tailor messages
• Choose the right platforms
• Forecast product preferences
For example, Gen Z prefers video content and authentic engagement.

10. Design a customer journey for buying a book (Slide 16) using digital touchpoints
1. Awareness – Sees a book ad on Instagram
2. Interest – Clicks link to read reviews on Goodreads
3. Consideration – Adds to Amazon cart, compares with other titles
4. Purchase – Buys via Amazon or e-book platform
5. Post-purchase – Shares review on social media, recommends to friends
Each stage uses digital touchpoints like social media, review sites, and e-commerce.
 1. Consumer Behavior Definition (Slide 3):
o Study of how individuals/groups select, buy, use, and dispose of goods/services to
satisfy needs.
2. Purchase Decision Process (5 Stages, Slide 4-10):
o Problem recognition: Gap between ideal/actual state (e.g., outdated clothes).
o Information search: Internal (memory) + External (personal/public/marketer
sources).
o Alternative evaluation: Criteria-based brand comparison (e.g., smartphone
attributes).
o Purchase decision: Seller selection + timing factors (price, atmosphere, finances).
o Postpurchase behavior: Satisfaction/dissonance (e.g., reviews, returns).
3. Involvement Levels (Slide 12-14):
o Extended (high involvement): Extensive research (e.g., car purchase).
o Limited (medium): Moderate information seeking (e.g., cosmetics).
o Routine (low involvement): Habitual purchases (e.g., groceries).
4. Psychological Influences (Slide 19-25):
o Motivation: Maslow's hierarchy (physiological → self-actualization).
o Perception: Selective exposure/comprehension/retention; subliminal messages
(e.g., Amazon/FedEx logos).
o Attitudes/Beliefs: Changed via (1) attribute beliefs, (2) importance shift, (3) new
attributes.
5. Sociocultural Influences (Slide 26-29):
o Personal: Word-of-mouth (most trusted), opinion leaders (e.g., celebrities).
o Reference groups: Associative/aspiration/dissociative groups.
o Culture/Subculture: Shared values transmitted generationally.
o Family/Social Class: Consumer socialization; occupation/income-driven
behaviors.
6. Touchpoints & Journey Mapping (Slide 17-18):
o Contact points pre-/during/post-purchase (e.g., Apple's ads → store → Genius Bar).

1. Explain the 5-stage consumer decision process using a smartphone purchase example
1. Problem recognition – You realize your old phone is too slow or outdated.
2. Information search – You look up reviews on YouTube, compare specs on tech blogs.
3. Evaluation of alternatives – You compare options like Samsung vs. iPhone based on
features like battery life, display, and price.
4. Purchase decision – You buy from a trusted seller offering a discount or better return
policy.
5. Post-purchase behavior – You evaluate your satisfaction. If happy, you recommend it; if
not, you might return it or complain.
2. How does consumer involvement affect marketing strategy? Contrast low vs. high
involvement products
• Low involvement (e.g., toothpaste): Focus on wide availability, repetitive advertising,
and maintaining quality.
• High involvement (e.g., laptop): Use comparative ads, detailed info, and personal selling
to help consumers evaluate alternatives.

3. Describe Maslow's hierarchy in marketing. Give product examples for two levels
Maslow's hierarchy moves from basic to advanced needs:
• Safety needs: Insurance products or home security systems.
• Self-actualization: Courses or fitness programs that help people realize their full potential.

4. What ethical concerns arise with subliminal messaging? Use the FedEx logo as an example
Subliminal ads influence people without their awareness, raising ethical concerns. In the FedEx
logo, a hidden arrow between “E” and “X” symbolizes speed and direction. Although subtle, this
can unconsciously shape consumer perception, which is seen as deceptive in some regions like
Italy.

5. How can marketers change consumer attitudes? Apply the three approaches to eco-
friendly products
1. Change beliefs – Convince customers that the eco-product works just as well as regular
options.
2. Change perceived importance – Highlight how sustainability is a top priority.
3. Add new attributes – Introduce features like recyclable packaging or carbon-neutral
production.

6. Why is word-of-mouth (WOM) more influential than ads? Discuss BzzAgent's model
WOM is trusted because it comes from peers. BzzAgent uses over a million everyday people to
promote products authentically. This feels more genuine than ads, making it more persuasive—
especially on social platforms and in daily conversations.

7. Analyze Apple’s consumer journey map (Slide 18). How do touchpoints reduce
postpurchase dissonance?
Apple manages every touchpoint—website, store design, staff interaction, packaging, and post-
sale support—to reassure buyers. This consistency and premium feel reduce doubts after purchase
and build loyalty.
8. How do reference groups impact buying behavior? Give examples for
aspiration/dissociative groups
• Aspiration group: A student may buy Apple products to feel aligned with innovative
professionals.
• Dissociative group: A person might avoid fast fashion brands if they associate them with
poor labor practices.

9. A customer regrets a laptop purchase. Using postpurchase theory, what strategies mitigate
dissatisfaction?
Companies can:
• Offer liberal return/refund policies
• Provide responsive customer service
• Send follow-up emails to confirm the customer made a good choice
These reduce dissonance and can turn a regretful buyer into a loyal one.

10. Compare routine vs. extended problem solving in the vacation example (Slide 11)
• Routine problem solving: Choosing a nearby beach you've visited before, without much
thought.
• Extended problem solving: Researching multiple destinations, comparing prices, reading
reviews, and carefully planning a long vacation abroad.
 1. Environmental Forces (Slide 1-18):
o Cultural: Values transmitted across generations (e.g., Calvin Klein’s gender-
neutral marketing).
o Economic:
▪ Income types: Gross → Disposable → Discretionary (luxury spending).
▪ U.S. income distribution skews toward lower/middle brackets.
o Technological: Blockchain, AI, wearables; lower costs + enable circular economy.
o Regulatory: Laws protecting competition (patents), consumers (truth in
advertising), and self-regulation.
o Competitive:
▪ Market structures: Pure competition → Monopoly.
▪ Porter’s Five Forces: Supplier/buyer power, substitutes, new entrants,
rivalry.
2. Strategic Marketing (Slide 19-28):
o Goal Setting: SMART criteria (Specific, Measurable, Achievable, Relevant, Time-
bound).
o Examples: Ryanair (low-cost focus), Airbnb ("belong anywhere").
o Portfolio Analysis:
▪ BCG Matrix: Stars (high growth/share), Cash Cows (low growth/high
share), Question Marks (high growth/low share), Dogs (low growth/share).
o Growth Strategies (Ansoff Matrix):
▪ Market Penetration (existing products, existing markets).
▪ Market Development (existing products, new markets).
▪ Product Development (new products, existing markets).
▪ Diversification (new products, new markets).

1. Explain how cultural forces influence marketing. Use Bombas or Calvin Klein as an
example.
Cultural forces—shared values, ideas, and attitudes—shape consumer behavior.
• Calvin Klein's CK2 targets evolving gender roles with a unisex perfume.
• Bombas reflects growing social consciousness by donating socks to the homeless, aligning
with consumers who value social action.

2. Contrast disposable income and discretionary income. Why does this matter for luxury
brands?
• Disposable income is what's left after taxes—used for needs like food and shelter.
• Discretionary income is what's left after both taxes and necessities—used for luxuries.
Luxury brands rely on discretionary income, so in economic downturns, their sales often
drop.
3. How do technological forces create customer value? Discuss blockchain or AI.
Technology adds value by improving products and processes.
• Blockchain increases trust and transparency in transactions.
• AI personalizes experiences, speeds up service, and helps recommend products, creating
convenience and efficiency for users.

4. Identify a regulatory force affecting digital ads. How might GDPR impact Barilla’s EU
marketing?
GDPR regulates how companies collect and use consumer data. For Barilla, this means:
• Getting clear consent before tracking users
• Making data use transparent
• Avoiding personalized ads unless the user opts in
This can limit how precisely Barilla targets its digital campaigns.

5. Apply Porter’s Five Forces to the coffee industry (from Slide 19)
• Threat of new entrants – Moderate: specialty coffee startups are rising.
• Bargaining power of buyers – High: many choices, easy to switch.
• Bargaining power of suppliers – Moderate: coffee bean sourcing affects prices.
• Threat of substitutes – High: tea, energy drinks, water.
• Industry rivalry – Strong: many competitors in a shifting market.

6. Critique Ryanair’s goal using SMART criteria (Slide 23)

If Ryanair's goal is "to be Europe's #1 airline":
• Specific – Yes, it targets a clear outcome.
• Measurable – Needs data (e.g., passengers, revenue).
• Achievable – Debatable; depends on market conditions.
• Relevant – Yes, aligns with business growth.
• Time-bound – Lacks a timeframe; needs one to be fully SMART.

7. Categorize a tech startup in the BCG Matrix. Justify your placement.

A tech startup with high market growth but low market share fits the Question Mark category.
It requires heavy investment to grow and could become a Star or fail, depending on how well it
performs and scales.

8. Which Ansoff strategy fits Apple launching fitness wearables? Explain.

This is a Product Development strategy: Apple is offering new products (wearables) to existing
markets (current Apple users interested in health/fitness).

9. Why is self-regulation critical in marketing? Give an example.

Self-regulation helps companies stay ethical and avoid legal trouble.
Example: Platforms voluntarily adopting ad standards that limit deceptive marketing, especially
when targeting children or handling user data.

10. How might Barilla use PESTEL analysis (Slide 14)? Prioritize one force.
Barilla could use PESTEL to assess:
• Political – import/export laws
• Economic – food prices, inflation
• Social – consumer health trends
• Technological – e-commerce growth
• Environmental – sustainable packaging
• Legal – EU food safety laws
Priority: Environmental factors, due to increasing demand for sustainable food practices.
1. Growth Strategies (Ansoff Matrix) (Slide 1-7):
o Market Penetration: Sell existing products to existing markets (e.g., Coca-Cola
increasing ads).
o Market Development: Existing products in new markets (e.g., Algida ice cream
expanding globally).
o Product Development: New products for existing markets (e.g., Apple Watch for
iPhone users).
o Diversification: New products in new markets (e.g., Virgin Group entering
airlines, banking).
2. Segmentation & Targeting (Slide 8-18):
o Criteria: Geographic, Demographic, Psychographic (VALS framework),
Behavioral.
o Buyer Personas: Fictional profiles (e.g., "Clark Andrews") based on
motivations/goals/frustrations.
o Application: Nike segments by lifestyle (athletes), psychographics (achievement-
seekers), benefits (performance vs. style).
3. Product Strategy (Slide 19-48):
o Definition: Bundle of tangible/intangible attributes satisfying needs
(goods/services).
o Layers:
▪ Core: Fundamental benefit (e.g., car = transportation).
▪ Actual: Physical features (e.g., car design, brand).
▪ Augmented: Supporting services (e.g., warranty, financing).
o Classification:
▪ By User: Consumer (toothpaste) vs. Business (raw materials).
▪ By Tangibility: Nondurable (food), Durable (cars), Services (education).
▪ Consumer Products: Convenience (low effort), Shopping (comparison),
Specialty (luxury), Unsought (insurance).
4. New Product Development (NPD) (Slide 52-59):
o Newness Spectrum:
▪ Continuous Innovation: Minor upgrades (e.g., toothpaste with gum
protection).
▪ Dynamically Continuous: Behavioral tweaks (e.g., Heinz EZ Squirt
ketchup).
▪ Discontinuous Innovation: New behaviors (e.g., wireless routers).
o NPD Process: 7 stages (Strategy → Idea Generation → Screening → Business
Analysis → Development → Testing → Commercialization).
1. Apply the Ansoff Matrix to Unilever’s diversification (Slide 5). What risks/rewards exist?
Unilever’s diversification likely falls under diversification in the Ansoff Matrix—entering new
markets with new products. This is the riskiest strategy because both the market and product are
unfamiliar, which increases uncertainty. However, the reward is access to entirely new revenue
streams and potential market leadership if successful. Unilever can spread risk across multiple
categories and capitalize on emerging trends, but must manage high research, development, and
market entry costs.

2. Contrast convenience, shopping, and specialty products. Use examples from Slide 48.
• Convenience products: Bought frequently with minimal effort. Example: Unilever’s
Dove soap.
• Shopping products: Consumers compare quality, price, and style before buying. Example:
A car or branded clothing.
• Specialty products: Unique characteristics or brand identification make consumers
willing to make a special purchase effort. Example: Luxury watches or designer handbags.

3. How does the core product concept guide marketing? Use a car example (Slide 36).
The core product represents the fundamental benefit a customer is buying. For a car, the core
product isn’t just the physical vehicle but the transportation, freedom, and convenience it provides.
Marketing should emphasize these core benefits to connect with customer needs, beyond features
like color or horsepower.

4. Why do services require different marketing than goods? Discuss perishability and
heterogeneity.
• Perishability: Services can’t be stored. If a hotel room or flight seat is unsold for a night,
that revenue is lost forever, so marketing must manage demand and capacity carefully.
• Heterogeneity: Services vary with each delivery because they depend on people. This
variability means marketing must focus on consistency and quality management to build
trust.

5. Design a buyer persona for Nike running shoes using the VALS framework (Slide 14).
Buyer persona:
• Type: Achiever (values success, seeks products reflecting status and performance)
• Age: 25-40
• Lifestyle: Fitness-focused, career-driven, tech-savvy
• Motivations: Wants high-quality, durable, and stylish shoes that enhance running
performance and social image
• Buying behavior: Researches products, influenced by endorsements and innovation in
shoe technology.
6. Why might discontinuous innovations fail? Use the wireless router example (Slide 57).
Discontinuous innovations often fail because they require consumers to change behaviors or learn
new skills. The wireless router initially faced resistance because users were unfamiliar with
wireless networks, feared security issues, and had no immediate perceived need. Lack of
infrastructure and high costs also contributed to slow adoption.

7. How does derived demand impact business products (Slide 49)? Use Ford’s paint
equipment.
Derived demand means the demand for business products depends on the demand for consumer
products. Ford’s paint equipment demand depends on the number of cars Ford plans to produce.
If consumer car demand drops, Ford reduces production, decreasing demand for paint equipment
suppliers.

8. What stage of the NPD process is most critical? Justify your choice (Slide 59).
The idea screening stage is most critical because it filters out unfeasible or unprofitable ideas
early, saving time and resources. Choosing the right ideas sets the foundation for successful
development and market launch.

9. Segment the market for augmented reality glasses using behavioral criteria.
• Usage rate: Heavy users (gamers, professionals), light users (casual users)
• Benefits sought: Enhanced productivity, entertainment, social interaction, health
monitoring
• Loyalty status: Brand loyal customers vs. new adopters
• Occasions: Everyday use vs. specific events (e.g., training, conferences)

10. How should Heinz market EZ Squirt (dynamically continuous innovation) to parents?
Heinz should highlight the new product’s fun and convenience—different colors that make
mealtime enjoyable for kids without changing the core ketchup experience. Marketing should
reassure parents about safety and quality, using family-oriented messaging and demonstrations to
encourage trial.
1. Price Fundamentals (Slide 3-4):
o Price = Monetary value exchanged for ownership/use of product/service
o Price Equation: Final Price = (List Price - Incentives/Allowances) + Extra Fees
o Barter = Non-monetary exchange of goods/services
2. Value-Based Pricing (Slide 5-7):
o Value Perception: Benefits ÷ Price
o Value-Pricing Strategy: Increase benefits while maintaining/lowering price
o McDonald's Example: €7 worth of items bundled for €6 → Higher perceived value
3. 6-Step Pricing Process (Slide 8):
1. Identify objectives/constraints
2. Estimate demand/revenue
3. Determine cost-volume-profit relationships
4. Select price level
5. Adjust list price
6. (Implied) Implement and monitor
2. Pricing Objectives (Slide 9-10):
o Profit maximization
o Market share growth
o Unit volume targets
o Survival (short-term)
o Social responsibility
3. Pricing Constraints (Slide 11-15):
o Demand (product class/type/brand)
o Product lifecycle stage
o Product line interactions
o Marketing costs
o Competitor pricing
o Market structure (pure competition → monopoly)
4. Demand Analysis (Slide 16-19):
o Demand Curve: Inverse price-quantity relationship
o Price Elasticity (E):
▪ Elastic (E>1): Small price change → Large demand change (luxuries)
▪ Inelastic (E<1): Price changes → Minimal demand shift (necessities)
5. Cost Analysis (Slide 20-22):
o Fixed vs. Variable Costs
o Break-Even Point (BEP):
▪ Formula: BEP Quantity = Fixed Cost ÷ (Unit Price - Unit Variable Cost)
▪ Critical for profit planning
1. Define value-pricing and explain McDonald's combo meal strategy.
• Value-pricing means setting prices based on the perceived value to the customer rather
than just cost.
• McDonald’s combo meals bundle items together at a lower price than buying each
separately, giving customers a feeling of getting more value, which encourages purchase
and boosts sales.

2. Calculate BEP for a product with €10,000 fixed costs, €50 unit price, and €30 unit variable
cost.
• Break-even point (units) = Fixed Costs ÷ (Price per unit – Variable cost per unit)
• BEP = €10,000 ÷ (€50 – €30) = €10,000 ÷ €20 = 500 units

3. Why is insulin demand inelastic? How would a 10% price hike affect revenue?
• Insulin is essential for diabetics with no close substitutes, so demand doesn’t drop much if
prices rise—this makes it inelastic.
• A 10% price increase would likely lead to only a small drop in quantity demanded, so total
revenue would increase.

4. Contrast skim pricing vs. penetration pricing using product lifecycle stages.
• Skim pricing: High price at introduction to maximize early profits from less price-
sensitive customers; often used in the launch stage.
• Penetration pricing: Low price to quickly gain market share and discourage competition;
common in the growth stage or for new mass-market products.

5. How does monopolistic competition (e.g., sneakers) limit pricing freedom vs. monopoly?
• In monopolistic competition, many similar but differentiated products exist, so companies
must keep prices competitive and can’t raise prices too much without losing customers.
• In a monopoly, the firm is the sole provider and can set higher prices since no direct
substitutes exist.

6. Identify three demand factors affecting foldable phone pricing (Slide 11).
• Consumer income levels (affordability)
• Perceived innovation/novelty value
• Availability of substitutes or alternatives

7. Why might a company prioritize market share over profit objectives?

• To build long-term customer base, achieve economies of scale, deter competitors, or gain
bargaining power with suppliers and retailers.
8. How do social responsibility objectives influence pricing? Give an example.
• Companies may price products to promote accessibility or sustainability even at lower
profit margins. For example, a firm might offer affordable renewable energy products to
support environmental goals.

9. Explain how a €1,000 designer bag can have inelastic demand despite being non-essential.
• The bag is a status symbol; buyers value exclusivity and brand prestige, so demand doesn’t
change much with price changes—making demand inelastic.

10. Draw a demand curve for gasoline. Label elastic vs. inelastic zones and justify.
• The demand curve slopes downward.
• Inelastic zone is the steep upper part where price increases don’t reduce quantity
demanded much (short-term, essential need).
• Elastic zone is the flatter lower part where consumers reduce consumption more as price
rises (long-term adjustments like switching cars or reducing travel).
 1. Promotion Mix (Slide 3-7):
o Advertising: Paid, non-personal mass communication (e.g., TV ads).
o Sales Promotion: Short-term incentives (e.g., coupons, BOGO).
o Personal Selling: Customized face-to-face persuasion (e.g., sales reps).
o Public Relations (PR): Unpaid image-building (e.g., press releases).
2. Promotion Planning Process (Slide 5):
o Plan: Target audience → Objectives → Budget → Tool selection.
o Implement: Pretest → Execute campaigns.
o Evaluate: Post-test → Corrective actions.
3. Advertising Insights (Slide 9-12):
o S-Shaped Response Curve (Slide 10):
▪ Low spending = Minimal impact
▪ Moderate spending = High returns
▪ Overspending = Diminishing returns
o Objectives: Inform, Persuade, Remind.
4. Sales Promotion & PR (Slide 13-18):
o Sales Promotion: Tactical urgency (e.g., "50% OFF").
o PR: Credibility through earned media (e.g., positive news coverage).
5. Starbucks Case Integration (Slide 19-21):
o Price hike (€4.00 → €4.50) with inelastic demand → Higher profit margin.
o BEP Reduction: 4,000 → 3,333 units.
o Promotion Solution: Use PR to justify price via "premium quality" messaging.

1. Contrast advertising and PR using strengths/weaknesses (Slide 4).

• Advertising:
o Strengths: Controlled message, wide reach, quick impact.
o Weaknesses: Expensive, can be ignored or distrusted by consumers.
• Public Relations (PR):
o Strengths: Builds credibility, cost-effective, influences public perception.
o Weaknesses: Less control over message, results can be unpredictable and slower.

2. When should a brand use sales promotion vs. personal selling?

• Sales promotion is best for short-term boosts in sales, attracting attention, and encouraging
immediate purchase (e.g., discounts, coupons).
• Personal selling works well for complex products needing explanation, relationship-
building, or negotiation (e.g., B2B sales, high-value items).

3. Explain the S-shaped advertising curve (Slide 10). Why does spending beyond saturation
waste budget?
 • The S-curve shows initial slow impact of ads, then a rapid increase in effectiveness,
followed by a plateau where additional spending yields little to no extra sales.
• Spending beyond saturation wastes budget because it doesn’t increase sales and could
cause diminishing returns or audience fatigue.

4. How might Starbucks use PR to justify a price increase (Slide 21)?

Starbucks could use PR to highlight improvements like better coffee sourcing, sustainability
efforts, or enhanced customer experience, making customers feel the higher price supports these
values.

5. Calculate BEP for a product with €15,000 fixed costs, €10 unit price, and €4 unit variable
cost.
• BEP = Fixed Costs ÷ (Price – Variable Cost)
• BEP = €15,000 ÷ (€10 – €4) = €15,000 ÷ €6 = 2,500 units

6. Why is personal selling ideal for "persuasion" objectives (Slide 11)?

Personal selling allows tailored, two-way communication where the salesperson can address
objections, build trust, and convince customers, making it perfect for persuading hesitant buyers.

7. Identify a promotion tool for each stage of the customer journey:

• Awareness: Advertising
• Consideration: Content marketing or personal selling
• Purchase: Sales promotion (discounts, coupons)
• Loyalty: Loyalty programs or email marketing
• Advocacy: Social media engagement or referral programs

8. What metric would you track to evaluate a "reminder" ad campaign (Slide 11)?
Track brand recall or ad awareness through surveys or metrics like repeated website visits or
engagement rates.

9. Why choose influencer marketing over traditional ads for Gen Z?

Gen Z values authenticity and peer recommendations. Influencers provide relatable, trusted voices,
while traditional ads feel impersonal and can be easily ignored.

10. Fix this plan using the promotion process (Slide 5):
"A startup spent €50K on Instagram ads but saw no sales."
• They likely skipped critical steps:
o Set clear objectives: What action should ads prompt?
o Know the target audience: Was the ad relevant?
o Create compelling content: Did the ads communicate a clear value?
o Measure and adjust: Track performance and optimize based on data.
• The startup should reassess the message, targeting, and calls to action before spending
more.
 1. Interactive Marketing:
o Creates customer value through real-time engagement, personalization, and co-
creation (e.g., Seven Cycles' bike customization).
o Tools: Choiceboards (M&M Configurator), collaborative filtering (Amazon
recommendations), opt-in/opt-out consent.
2. Digital vs. Traditional Marketspace:
o Digital: 24/7 access, broader reach (e.g., 35% of REI orders at night).
o Traditional: Physical touchpoints (e.g., luxury fashion stores).
3. Online Consumer Behavior:
o Who: Affluent, educated 20s-30s (20% of users drive 69% of sales).
o Why (6Cs):
▪ Convenience (anytime access)
▪ Choice (endless aisle: Zalando)
▪ Customization (Nike By You)
▪ Cost (dynamic pricing)
▪ Communication (social media, blogs)
▪ Control (cookies, behavioral targeting)
o What: Apparel (23%), electronics (18%), auto parts (12%)—
standardized/digital/niche products.
4. Cross-Channel Consumers:
o Showrooming: Research offline → buy online (price-sensitive).
o Webrooming: Research online → buy offline (quality assurance).
o Multichannel Strategy:
1. Track cross-channel behavior.
2. Unified messaging (online + offline).
3. Monitor performance (e.g., Pizza Hut's app-to-store integration).
2. Online Experience (7Cs Framework):
Context (design) + Content (media) + Customization + Connection (links) +
Communication (dialogue) + Community (forums) + Commerce (transactions).
3. Privacy/Security:
o 76% of consumers worry; CAN-SPAM laws regulate email. Shared brand/user
responsibility.

1. Define interactive marketing using Seven Cycles as an example.

Interactive marketing is a two-way communication approach where businesses engage with
customers to tailor products or experiences.
At Seven Cycles, customers co-design bikes by selecting frame geometry, color, and materials
creating a personalized product through direct interaction.
2. Why do standardized products (e.g., books) dominate online sales?
Standardized products are easy to compare, require no trial or physical inspection, and have
predictable quality—making them ideal for online shopping where customers can confidently
order without needing to see or touch them.

3. Contrast showrooming and webrooming. How should retailers respond?

• Showrooming: Customer checks a product in-store but buys it online (often cheaper).
• Webrooming: Customer researches online but buys in-store.
Retailers should:
• Embrace omnichannel strategies, match online prices, and offer in-store pickup or
exclusive in-store deals to capture both behaviors.

4. Explain dynamic pricing in e-commerce. Give an example.

Dynamic pricing adjusts prices in real-time based on demand, competition, or user behavior.
Example: Amazon frequently changes prices on products based on inventory, competitor pricing,
and browsing history.

5. How does customization create value online? Use Nike.

Customization builds emotional connection and perceived value.
At Nike By You, customers personalize shoes by choosing colors, materials, and even adding
names—creating a sense of ownership and uniqueness.

6. What are the 7Cs of online experience? Apply two to improve Škoda’s configurator.
The 7Cs: Context, Content, Community, Customization, Communication, Connection,
Commerce.
• Customization: Let users save builds or see real-time price updates.
• Context: Simplify layout and navigation so users don’t get overwhelmed during car
configuration.

7. Why is privacy critical in online marketing? Cite one regulation.

Online marketing often collects user data for targeting. Misuse erodes trust and invites legal issues.
GDPR (EU) enforces strict rules on data collection and gives users control over their personal
data.

8. Analyze Pizza Hut’s multichannel success. What tactics increased sales?

Pizza Hut boosted sales by integrating mobile, app, web, and in-store channels.
• Tactics: Loyalty programs across platforms, personalized offers via app, and easy online
ordering with local deals helped attract and retain customers.
9. Which promotion tool suits webrooming consumers? Justify.
In-store promotions (e.g., coupons or instant discounts) are effective.
These consumers already did research online—offering them a good deal in-store encourages them
to complete the purchase physically.

10. How does collaborative filtering drive sales? Use Amazon.

Collaborative filtering recommends products based on similar users’ behavior.
Example: On Amazon, “Customers who bought this also bought…” shows relevant suggestions
that boost cross-selling and increase average order value.
 1. Social Media Fundamentals (Slide 14-17):
o Definition: Technology-enabled social interaction creating shared experiences.
o UGC Dominance: 80% of content is user-generated (non-professional).
o Classification: Based on Media Richness (text → animation) and Self-
Disclosure (impersonal → intimate).
2. Platform Strategies (Slide 19):
o Facebook: Broad reach (25-55+), community building.
o Instagram: Visual storytelling (18-35), influencers.
o LinkedIn: B2B networking, recruitment.
o TikTok: Viral content for Gen Z (13-30).
3. Measurement & Metrics (Slide 20-21, 25-26):
o Engagement: CER = (Interactions ÷ Audience) × 100
▪ Facebook: (Likes + Comments + Shares) ÷ Followers
▪ Twitter: (Likes + Replies + Retweets) ÷ Impressions
o Cost Models:
▪ CPM (awareness), CPC (clicks), CPA (sales-driven).
4. Content Strategy (Slide 22-23):
o 7 Content Types: Educational, Inspirational, Interactive, etc.
o Hashtag Power: #PetsAtWork drove 34% traffic increase for Purina.
5. Future Trends (Slide 28-30):
o AR Convergence: Snapchat’s Michael Jordan AR try-on → sold out in 23 mins.
o Mobile Marketing: Location-based offers, app loyalty programs.
o Algorithmic Targeting: Facebook/Google use behavior data for hyper-
personalization.
6. Body Glove Case Study (Slide 31-36):
o 360° Strategy: Platform-specific content (Twitter = customer service, Instagram =
visuals).
o Success Metrics: CTR, impressions, mobile traffic (67%).
o Future: Wellness/environmental storytelling (e.g., #PaddleForPeace).

1. Q: Define UGC and explain its dominance in social media.

UGC (User-Generated Content) refers to content created by users—not brands—including
reviews, photos, videos, and posts.
It dominates because it’s seen as authentic, relatable, and trusted. People trust peers more than
ads, and platforms like TikTok and Instagram naturally amplify this content through shares and
engagement.
2. Q: How should a B2B company allocate efforts between LinkedIn and TikTok? Justify.
• Focus on LinkedIn: It’s the go-to for professional networking, lead generation, and
industry credibility.
• Use TikTok selectively: If targeting younger decision-makers or showcasing innovation
through behind-the-scenes or explainer content, TikTok can build brand awareness.
Justification: LinkedIn delivers qualified B2B leads; TikTok supports visibility and
storytelling.

3. Q: Calculate CER for Instagram: 15K followers, 1,200 likes, 150 comments.
CER (Content Engagement Rate) = (Likes + Comments) ÷ Followers × 100
= (1,200 + 150) ÷ 15,000 × 100 = 9%

4. Q: When should a marketer choose CPA over CPM pricing?

Choose CPA (Cost Per Acquisition) when you want to pay only for results—like purchases,
signups, or downloads. Use it when your goal is conversion, not just visibility.
Example: A startup with a limited budget aiming for app installs would benefit more from CPA.

5. Q: Design an AR campaign for a sneaker brand using Snapchat’s Michael Jordan case as
inspiration.
• Create a Snap Lens where users can virtually try on limited-edition sneakers.
• Add a slam dunk animation when the user jumps or taps.
• Use geo-targeting around urban sneaker stores.
• Include a “Shop Now” button linked to a drop countdown or exclusive preorder.

6. Q: Why did Body Glove use Twitter for customer service instead of Instagram?
Twitter allows real-time public conversation and is ideal for fast issue resolution.
It supports text-based support, is searchable, and lets the brand respond quickly and visibly,
showing transparency and responsiveness.

7. Q: Propose a wellness-themed campaign for Body Glove paddleboards using the 7 content
types.
1. Educational: “How paddleboarding boosts mental health” reels.
2. Inspirational: Sunrise paddleboarding quotes + stories.
3. Entertaining: POV videos of peaceful lake rides with relaxing music.
4. Conversational: “What’s your favorite paddleboarding memory?” polls.
5. User-generated: Repost customer photos tagging #BodyGloveZen.
6. Promotional: Bundle deals on boards + fitness gear.
7. Behind-the-scenes: Design story of the wellness collection.
8. Q: Explain how algorithms enable hyper-targeting. Use Facebook’s ad system.
Facebook tracks behavior, interests, and demographics to group users into segments.
Marketers can hyper-target by setting specific criteria (e.g., 25–35-year-old yoga enthusiasts in
Berlin).
The algorithm delivers ads to those most likely to engage, improving ROI.

9. Q: What made Carmex’s "Half-Court Hero" go viral?

• Emotional hook: Surprise half-court shot + big prize = feel-good moment.
• Brand tie-in: Partnered with LeBron James, giving credibility and reach.
• Social proof: Viral shareability due to crowd reaction, genuine excitement, and wide media
coverage.

10. Q: Fix this scenario: "A brand’s Twitter CER is 0.08% (below 0.12% benchmark)."
• Diagnose: Low engagement suggests poor content relevance or posting strategy.
• Fix:
o Post at peak times
o Use more interactive formats (polls, questions)
o Share UGC or trending topics
o Collaborate with micro-influencers
o Analyze what content previously performed best and build on it
"This work has a weakness, which one?"
The most likely weakness in the research study (Pages 17–25) is:
Limited Generalizability
1. Small/Non-Representative Sample:
o The study analyzed only 28 out of 48 eligible Italian municipalities (those with
>99k inhabitants and active Twitter accounts).
o Major cities (e.g., Rome, Milan) dominated the dataset, while smaller cities were
underrepresented.
2. Platform Bias:
o Data came exclusively from Twitter, ignoring other social media (e.g., Facebook,
Instagram) where citizen engagement may differ.
3. Methodological Constraints:
o Engagement metrics (likes, retweets) may not capture qualitative sentiment (e.g.,
sarcasm, nuanced opinions).
o The content categorization (e.g., "Environment" listed twice in pie charts) appears
inconsistent, risking misclassification.
4. Contextual Factors Ignored:
o No control for external variables (e.g., local events, political climate) affecting
online engagement.

Supporting Evidence from the Slides:

• Page 20: Only 28 municipalities met scraping criteria (from 48 eligible).
• Page 22: Extreme skew in activity/followers (e.g., Rome: 468k followers vs. Arezzo:
2,220).
• Page 23: Low engagement metrics (e.g., average "Commitment" metric C3 = 0.0098).
• Page 25: Ambiguous content categories (e.g., "Environment" appears in two sections).