Business SL

IB Business Management: Chapter 4 (Marketing) SOLUTIONS/ANSWERS

  1. Outline the key features of a marketing mix of a product that you have recently purchased.

  • Product
    • McDonald’s Food
  • Price
    • Price is quite expensive but still affordable (~Rp,50,000)
  • Promotion
    • Free glass for every purchase of a package of food.
  • Place
    • McDonald’s Shop, they also offer drive through and delivery service.

 

  1. Why is ‘people’ one of the important marketing mix factors for consumer services?

In consumer services, people is one of the most important marketing mix factors because people are the main target that wants to be reached because the consumer is the person who is going to purchase the product for their use.

 

  1. Explain why some people consider direct advertising of toys to young children is unethical.

People consider direct advertising of toys to young children as unethical because young children are not able to control themselves therefore it is exploiting children’s underdeveloped education to force parents to buy toys and at the end give the business profit.

 

  1. Explain two benefits of a marketing audit.

Since a marketing audit is often used by a company reviewing its business strategy, the first benefit would be that it allows the business to review what has worked in their strategy and what hasn’t. By doing this the company can maximize the business in the future because they will know how to be more effective. Second would be that it allows a company to compare against its competitors so that the company can find out ways to win against the competition.

 

  1. State two possible marketing objectives for the Starbucks Coffee Company in Indonesia.

The first possible marketing objectives for the Starbucks Coffee Company in Indonesia is to open as many stores as possible so that it can reach as much customer as possible and grow its market share. Another possible marketing objective would be to increase brand awareness and reputation since Starbucks is pretty expensive for Indonesians.

 

  1. Differentiate between primary and secondary market research.

Primary market research is usually conducted by the business itself. The research is tailored to the company itself and is usually more relevant, up to date, and unique however it could be time consuming, and costly for the business. Examples of primary market research are surveys, interviews, observations and more.

 

Secondary market research is also known as desk research since it is a collection of second hand data and information that has already existed from previous researches done by government agencies and other organizations. It is cheaper and faster for a company to do this however the information might be outdated and the data might not be adequate for the company to use.

 

  1. Differentiate between quota and random sampling.

Quota is a sampling method where it gathers representative data of individuals of a subgroup from a larger population by segmenting it into a number of group that share a certain characteristic. Random sampling is a sampling method where all the members of the group have an equal chance of being selected.

 

  1. Explain two ways in which a producer of TV programs might use market segmentation.

The first way in which a producer of TV programs might use market segmentation would be to distinguish the age group of the viewers. If the age group of the viewers are children that means the program would be tailored to be family friendly and entertaining for children. Another way a producer might use marketing segmentation is by using geographic segmentation to distinguish which program to air and censor in certain locations. In certain countries and places there are different restrictions and censoring policies, therefore the producer would know where to show the program or censor the program to avoid legal issues.

 

  1. What would the benefits be of using a targeted marketing strategy for a clothing retailer?

The benefits of using a targeted marketing strategy for a clothing retailer would be that the company can focus on getting the desired target customer by allocating the resources so it will help drive the target customer to shop in the retailer. The business using this strategy can market their products more efficiently and effectively by targeting consumers it can serve best and most profitably.

 

  1. Explain the USP of any company of your choice. (Xiaomi)

Despite the company being one of the newest and youngest technology company, it has risen to the world’s fifth largest smartphone maker in the world. Compared to its competitors, Xiaomi’s unique selling point which makes them successful comes from the company’s quality products at reasonable and affordable prices. Xiaomi prioritizes on making products with a price-performance ratio which makes the company’s sales reach billions of dollars every year.

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