EXAM PREPARATION Question 1 Four Marketing Management philosophies can be identified that influence marketing processes. 1.1 One philosophy is a sales orientation. Assuming this is the philosophy used by Uber, what would this mean for their marketing activities? (2) If Uber were to adopt a sales orientation philosophy, their marketing activities would primarily revolve around aggressive selling and promotional strategies. This approach would entail a strong emphasis on maximizing transaction volumes through various sales tactics such as discounts, limited-time offers, and other promotional incentives. Customer satisfaction might take a secondary role, with the primary focus being on driving immediate sales growth and increasing the frequency of usage among both existing and potential customers. 1.2 Another alternative is that they would use a market orientation. How would this choice impact their marketing activities? (3) Alternatively, if Uber were to opt for a market orientation philosophy, their marketing activities would be centered on understanding and ful lling customer needs and preferences. This approach would involve extensive market research to identify customer demands, leading to the development of tailored products and services that cater to speci c customer requirements. Uber would prioritize building long-term relationships with its customers, emphasizing customer satisfaction and loyalty. Their marketing strategies would focus on creating value for customers, highlighting the unique features and bene ts of their services, and constantly adapting to changing market demands to maintain a competitive edge. This customer-centric approach would likely involve continuous engagement and feedback mechanisms to ensure that their services align with evolving consumer expectations. 1.1 If Uber were to adopt a production orientation philosophy, their marketing activities would prioritize the e cient production and distribution of their services. This approach would likely focus on streamlining internal operations to maximize output and minimize costs, with less emphasis on understanding speci c customer needs and preferences. Uber's marketing strategies would revolve around highlighting the e ciency, reliability, and cost-e ectiveness of their services, emphasizing factors such as quick service delivery and a ordable pricing. The main goal would be to increase production and distribution e ciency to meet the demand for their services while keeping costs as low as possible. Question 2 Uber management has decided that they would be a market-orientated organisation. What would this decision mean for Uber? ff fi fi ff ffi ffi fi ffi fi fi fi Alternatively, if Uber were to opt for a market orientation philosophy, their marketing activities would be centered on understanding and ful lling customer needs and preferences. This approach would involve extensive market research to identify customer demands, leading to the development of tailored products and services that cater to speci c customer requirements. Uber would prioritize building long-term relationships with its customers, emphasizing customer satisfaction and loyalty. Question 4 You have been asked to develop a marketing strategy for Uber. What would be the components of the marketing strategy for Uber? Definition of marketing strategy: A marketing strategy is a detailed plan that outlines how an organization will reach its target customers and achieve competitive advantage. It involves market research, brand positioning, pricing, distribution, and promotional tactics, all geared toward maximizing pro tability and market share. By guiding marketing activities, this strategy helps businesses e ectively connect with their audience, build strong customer relationships, and achieve long-term success. Components: 4Ps (or 7Ps in the case of a service such as Uber) – see detail on class slides. The marketing strategy for Uber would be structured around the 7Ps framework tailored for services. This approach would involve a meticulous de nition and showcasing of Uber's diverse service o erings, including ridesharing, food delivery, and freight services, emphasizing their unique features and bene ts to cater to a wide range of customer needs. A competitive pricing strategy would be implemented, integrating various pricing models, promotional discounts, and packages to maintain pro tability while ensuring customer a ordability. The strategy would also prioritize the establishment of an extensive and e ciently managed service network to ensure broad accessibility and availability of Uber services across diverse geographic locations. Integrated promotional campaigns across digital and traditional advertising channels would be employed to enhance brand visibility and attract a wider customer base, while referral programs and strategic partnerships would be leveraged to incentivize customer retention and acquisition. Furthermore, an emphasis would be placed on maintaining a high standard of professionalism and customer service among drivers and customer support representatives, fostering positive customer experiences at every touchpoint. Seamless and user-friendly processes for booking, payment, and customer support, coupled with a focus on the quality, reliability, and safety of vehicles and a well-designed mobile application interface and website, would contribute to an overall enhanced customer experience and the establishment of a strong brand reputation. Question 6 1. Explain what is meant by a competitive advantage. This refers to the unique strengths or attributes that allow a business to outperform its competitors in the market. It can be achieved through various means such as o ering superior products or services, lower prices, better customer service, or innovative marketing strategies. 2. A cost competitive advantage can be used by an organisation such as Uber based on their SWOT analysis. Explain two ways Uber use this advantage. ff ffi fi fi fi ff ff ff ff fi ffi fi a. Economies of Scale: Uber can leverage its large scale of operations to lower its costs per unit, enabling them to o er competitive pricing to customers. This can be achieved by spreading xed costs over a larger number of rides, leading to more cost-e cient operations and allowing them to provide services at a lower price point compared to smaller competitors. b. Technological E ciency: By continuously investing in and leveraging advanced technologies for their operations, such as sophisticated algorithms for route optimization and demand forecasting, Uber can enhance operational e ciency and reduce costs. This can lead to savings in fuel consumption, optimized driver routes, and improved overall service e ciency, allowing Uber to o er cost-e ective services to its customers. Question 7 The marketing environment at Uber influences the profits of the business but it is important that that they do environmental scanning. 1. What is meant by the term “environmental scanning” Environmental scanning refers to the process of analyzing and monitoring the internal and external factors that can potentially impact an organization's business operations and performance. It involves systematically gathering information about the various elements within the business environment, including market trends, competitors' activities, technological advancements, regulatory changes, and socio-economic factors, among others. This process helps businesses like Uber to identify opportunities and threats, enabling them to make informed strategic decisions and adapt to changes effectively. 2. How would the technological and economic factors impact how Uber operates and markets their business? a. Technological Factors: Technological advancements significantly influence Uber's operations and marketing strategies. Innovations in transportation technology, such as the development of autonomous vehicles and advancements in app-based functionalities, can enhance Uber's service offerings and improve overall customer experience. On the other hand, the rapid evolution of technology necessitates continuous updates and investments in their platform to remain competitive. Integrating new technologies also enables Uber to improve operational efficiency, expand service capabilities, and introduce innovative marketing campaigns to reach and engage a broader customer base. b. Economic Factors: Economic conditions, such as uctuations in fuel prices, in ation rates, and overall consumer spending, can impact Uber's operations and market dynamics. During periods of economic downturn, consumers may opt for more coste ective transportation options, leading to a potential increase in demand for Uber's services. Conversely, during economic upturns, consumers may be more inclined to spend on premium services, allowing Uber to introduce premium service tiers. Understanding these economic trends enables Uber to adjust pricing strategies, tailor promotional activities, and develop targeted marketing campaigns to e ectively cater to evolving consumer preferences and maximize pro tability. Question 8 fl ff ffi fl fi ff ff ffi ffi ff Sven is travelling to Sydney, Australia for the first time in the summer and needs to decide on transport alternatives for getting around the city. One alternative is the use4 of Uber. Explain how he would move through the consumer decision-making process. (Hint: explain each step and give an example as it relates to Sven.) • • • • • Problem Recognition: Sven recognizes the need for convenient and reliable transportation options to navigate through Sydney during his trip. He realizes that relying solely on public transportation might limit his mobility, especially if he wants to visit multiple destinations in a short period. Information Search: Sven starts gathering information about various transportation options in Sydney. He may seek recommendations from friends or use online resources to compare the convenience, cost, and availability of di erent options, such as taxis, rental cars, public transport, and ride-sharing services like Uber. Evaluation of Alternatives: After considering di erent transportation alternatives, Sven compares the advantages and disadvantages of each option. He assesses factors like cost, ease of access, exibility, and the convenience of not having to navigate unfamiliar roads or rely on unfamiliar public transportation routes. He weighs these factors against his preferences for a hassle-free and e cient mode of transportation. Purchase Decision: Sven, after careful evaluation, decides to use Uber for his transportation needs in Sydney. He makes the decision based on the convenience of booking rides through the Uber app, the availability of various vehicle options depending on his needs, and the assurance of a reliable and safe transportation service throughout his trip. Post-Purchase Behavior: As Sven begins using Uber during his stay in Sydney, he assesses his experience based on factors such as the quality of service, the e ciency of the rides, and the overall convenience o ered by Uber in comparison to other modes of transportation. If he nds the experience to be positive, it is likely that he will continue using Uber for the remainder of his trip and may even recommend it to others. However, if he encounters any issues or challenges, his post-purchase behavior might involve providing feedback or seeking alternative transportation options for the remainder of his stay. Question 9 Culture influences whether we buy, what we buy, where we buy and how often we buy. This is also true for Sven, a Swede who lives in Jönköping. Explain three cultural factors could influence his decision whether or not to use Uber. NOTE: the same question can be posed for the other influences (social (pp.114-117) (Section 6-7), individual (pp.117-119) (Section 6-8) and psychological (pp.119-123) (Section 6-9) that are discussed. Cultural factors play a signi cant role in shaping consumer behavior and decision-making. In the case of Sven, a Swede from Jönköping, several cultural factors might in uence his decision whether or not to use Uber: fl fl ff ffi ff ff fi fl fi ffi 1. **Cultural Values and Norms:** Swedish culture emphasizes egalitarianism and a strong sense of social responsibility. Sven might consider how Uber aligns with these values. If he perceives Uber as a company that promotes fair treatment of its drivers and contributes positively to the community, he might be more inclined to use the service. On the other hand, if there are concerns about Uber's business practices con icting with Swedish values, he might choose an alternative transportation option that better aligns with his cultural beliefs. 2. **Language and Communication:** The Swedish language and communication style could in uence Sven's decision regarding the use of Uber. If the Uber app and service are available in Swedish and e ectively communicate relevant information in a culturally appropriate manner, Sven might nd it more accessible and user-friendly. On the contrary, if there are language barriers or communication issues that make it di cult for him to understand or use the service, he might opt for a transportation alternative that provides a more seamless communication experience in his native language. 3. **Perception of Privacy and Trust:** Swedish culture places a high value on privacy and trust. Sven might consider how Uber handles customer data, privacy concerns, and the overall trustworthiness of the service. If Uber is perceived as respecting user privacy and maintaining high data security standards, Sven might feel more comfortable using the service. Conversely, if there are widespread concerns or negative perceptions regarding Uber's data handling practices, it might deter Sven from using the service, leading him to choose a transportation option that prioritizes data privacy and security in line with his cultural expectations. Question 10 1. How does the demand differ between consumer and business markets? How would these factors impact a stationery chain like Staples? Di erences in Demand between Consumer and Business Markets and Impact on Staples: The demand in consumer markets is often in uenced by individual preferences, personal needs, and purchasing power. Consumers are typically driven by emotional and personal factors when making buying decisions. In contrast, demand in business markets is driven by factors such as the need for operational e ciency, cost-e ectiveness, and the ability to enhance business productivity. For a stationery chain like Staples, understanding these di erences is crucial. They would need to tailor their product o erings and marketing strategies to cater to the speci c needs of both consumer and business markets. For consumers, Staples might focus on o ering a diverse range of attractive and a ordable stationery products that appeal to personal preferences and aesthetics. For businesses, they might emphasize bulk purchase options, competitive pricing, and the provision of specialized o ce supplies that contribute to enhancing organizational e ciency and productivity. 2. The nature of buying influence and type of consumers also differs in the case of business markets. How would these factors impact a stationery chain like Staples? ffi fi fl ffi ffi ffi fl ff ff fi ff ff fl fl ff ff ff ff Impact of Buying In uence and Consumer Types on Staples: In business markets, buying decisions are often more complex and involve multiple decision-makers or stakeholders within the organization. These decision-makers might include procurement managers, department heads, or executives, each with varying priorities and requirements. Understanding this intricate buying in uence is crucial for Staples to tailor their marketing and sales strategies accordingly. They would need to provide comprehensive product information, competitive pricing, and reliable customer service to address the diverse needs and preferences of di erent decision-makers within the business. Additionally, Staples would need to build strong relationships with corporate clients, o ering customized solutions, bulk discounts, and e cient delivery options to maintain long-term partnerships. In the consumer market, the buying in uence is more straightforward, often driven by individual preferences and personal needs. Staples would focus on providing an appealing and user-friendly shopping experience, o ering a wide variety of stationery products that cater to di erent consumer preferences and tastes. They might also emphasize the importance of quality, a ordability, and convenience to attract and retain individual customers. Question 11 When making a decision, a buying centre (for example) will consider a number of different evaluative criteria, specifically quality, service and price. How would these three criteria differ between the three buying situations within an organisation? E.g., would price (or quality) be equally important in all buying situations? • • • • • • Routine Purchase Situations: In routine purchase situations, the emphasis is often on operational e ciency and coste ectiveness. Here, price tends to be a critical factor, as organizations aim to minimize costs and ensure the continuity of operations. While quality remains important, it might not be the top priority, especially for standardized or frequently used products. Service might also be valued, but e cient and timely delivery might be more signi cant than personalized or specialized customer service. Limited Decision-Making Situations: In limited decision-making situations, organizations might seek a balance between cost savings and quality. While price remains a signi cant consideration, organizations might be willing to invest slightly more for better quality to ensure product reliability and longevity. Service becomes more important in terms of after-sales support, warranty, and assistance with any technical or functional issues that may arise. Extensive Decision-Making Situations: In extensive decision-making situations, organizations are often making high-stakes or strategic purchases. Here, quality takes precedence, as the focus is on long-term performance, durability, and the overall value that the product or service can provide. While price remains a consideration, organizations might be more willing to invest in higher-priced o erings that demonstrate superior quality and reliability. Service becomes a crucial di erentiator, with an emphasis on personalized support, customization, and ongoing collaboration to ensure that the product or service aligns perfectly with the organization's speci c needs and goals. Question 12 Uber has identified a possible market segment in the north of Sweden. 1. What would characterise a “market segment”? Characteristics of a Market Segment: A market segment is a group of potential customers who share speci c characteristics, needs, preferences, or behaviors that distinguish them from the broader market. Market segmentation involves dividing a larger, heterogeneous market into smaller, more homogenous segments, allowing companies like Uber to tailor their products, services, and marketing e orts to better meet the unique requirements of each group. ffi fi fi ff ff ff fi ff fl ffi ffi ff fi ff ff ff 2. It could be said that a segment needs to be substantial as well as being identifiable and measurable. Explain what this means for Uber in their market segmentation. Substantial, Identi able, and Measurable Segments for Uber: • Substantial: A substantial market segment implies that it is large enough to warrant investment in terms of resources and marketing e orts. For Uber in the north of Sweden, this means they should assess whether there is a signi cant number of potential customers in this region who have a demand for their services. If the segment is too small, it may not justify a dedicated marketing strategy. • Identi able: Identi ability refers to the ability to distinguish and recognize the characteristics that de ne a particular segment. Uber needs to ascertain whether they can clearly identify the individuals or groups within the north of Sweden who t their desired segment. For instance, they might look for common demographic or psychographic traits that unite this segment. • Measurable: Measurability implies that Uber can quantify and assess the size and potential of the identi ed segment. Uber must be able to collect data and metrics to determine the segment's size, purchasing power, and potential for growth. This measurement helps in evaluating the segment's attractiveness and pro tability. Question 13 Segmenting a market can be an important activity for an organisation like Uber. 1. What is meant by the term segmentation? Segmentation refers to the process of dividing a heterogeneous market into smaller, more homogeneous groups or segments based on speci c criteria. These criteria can include various factors such as demographics, psychographics, geographic location, and behavioral patterns. The aim of segmentation is to enable organizations like Uber to better understand and target distinct customer groups with tailored marketing strategies and o erings that e ectively meet their unique needs and preferences. 2. Uber could use psychographic and demographic variables to segment their market. Explain how Uber would carry this out. Psychographic Segmentation: Uber can use psychographic variables such as lifestyle, values, interests, and attitudes to segment their market. For instance, they might identify segments of customers in the north of Sweden who prefer environmentally friendly transportation options or those who value convenience and comfort. By understanding these psychographic traits, Uber can customize their services and marketing communications to resonate with the speci c preferences and lifestyles of these customer segments. Demographic Segmentation: Uber can utilize demographic variables such as age, gender, income, and occupation to segment their market. They might identify segments of working professionals who require e cient and reliable transportation for their daily commute or segments of younger individuals who prioritize a ordability and exibility in their transportation options. By analyzing these demographic factors, Uber can tailor their service o erings, pricing strategies, and promotional activities to e ectively target and cater to the needs of each demographic segment in the north of Sweden. • • fi ff fi fi fi fi ff ffi ff fi fi fi fi ff fi fl ff ff • NOTE: the other variables or bases of segmentation (e.g., geographic could also be asked in the question. Question 14 Uber wants to research customer satisfaction among their Stockholm customers, and this is defined as their research problem. 1. Explain the components of the research design you would recommend they use to answer this research problem. a. Purpose Statement: Clearly de ne the purpose of the research, emphasizing the speci c objectives and expected outcomes related to understanding customer satisfaction among Uber's Stockholm customers. This statement should guide the entire research process and ensure that the ndings directly address the research problem. b. Data Collection Method: Utilize a combination of quantitative and qualitative methods, such as surveys, interviews, and focus groups, to gather comprehensive data on customer satisfaction. This approach allows for the collection of both numerical ratings and in-depth insights into customer experiences and preferences, providing a holistic understanding of the factors in uencing customer satisfaction in Stockholm. c. Sampling Plan: Develop a detailed sampling plan that de nes the target population, sampling frame, and sampling techniques to be employed. Ensure that the sample size is adequate and representative of the diverse customer segments in Stockholm, allowing for meaningful analysis and generalization of ndings to the broader customer base. 2. What sampling procedures would you recommend they use in their research? Motivate your answer. Considering the research goal of understanding customer satisfaction among Uber's Stockholm customers, a combination of probability and strati ed sampling procedures would be appropriate. This approach would ensure that the sample selected is representative of the diverse customer segments in Stockholm, allowing for reliable and valid insights into customer satisfaction levels. Probability sampling methods, such as simple random sampling or systematic sampling, would enable the selection of respondents from the entire population of Uber customers in Stockholm, ensuring equal opportunities for every customer to be included in the research. Additionally, employing strati ed sampling techniques would allow for the division of the population into meaningful segments, such as frequent users, occasional users, and new users, ensuring that each segment is adequately represented in the sample, thus providing a comprehensive understanding of the various customer experiences and perspectives. Question 15 The marketing research process shows a number of steps that Uber would implement when collecting data. Explain each of these steps and show how they would be done by Uber. fi fi fi fi fi fi fi fi fl fi fi fi fl fi De ning the Problem and Research Objectives: Uber would clearly de ne the research problem, such as understanding customer preferences for speci c services or identifying factors in uencing customer satisfaction. They would establish speci c research objectives to guide the entire research process, ensuring that the data collected directly addresses the identi ed problem. • Developing the Research Plan: Uber would develop a comprehensive research plan outlining the research approach, data collection methods, sampling procedures, and the timeframe for data collection. They would determine whether to use surveys, interviews, focus groups, or a combination of these methods to gather relevant data from their customers in Stockholm. Collecting Information: Uber would execute the research plan by collecting data from their Stockholm customers. They may use various data collection methods, such as online surveys, in-person interviews, or analyzing customer feedback from their app, to gather information on customer preferences, experiences, and satisfaction levels. Analyzing the Information: Uber would analyze the collected data using various analytical techniques to identify patterns, trends, and correlations within the data. They might employ statistical analysis, sentiment analysis, or thematic analysis to extract meaningful insights from the collected information, allowing them to understand customer behavior and preferences more comprehensively. Presenting the Findings: Uber would present the research ndings in a clear and concise manner, utilizing visual aids such as graphs, charts, and reports to communicate the insights e ectively. They would highlight key ndings related to customer satisfaction, preferences, and any actionable recommendations derived from the research. Making Decisions: Based on the research ndings, Uber would make informed decisions and develop strategies to enhance customer satisfaction, improve service o erings, and address any identi ed issues or concerns. They would use the research insights to tailor their marketing e orts and re ne their business operations to better meet the needs and expectations of their customers in Stockholm. • • • • • Question 16 Organisations like Uber and ICA sell a wide range of products. 1. What is meant the by the term “product”? In marketing, a product refers to a tangible or intangible o ering that is created and marketed to ful ll the needs or wants of a consumer. This can include physical goods, services, experiences, or a combination of these elements that are designed to satisfy a speci c demand in the market. 2. Four types of consumer products can be identified. Explain these 4 types, giving examples of each. fi ff fi fi fi ff fi fi ff ff fi ff fi fi ff fi ff a. Convenience Products: These are products that are inexpensive, widely available, and require minimal e ort for purchase. Examples include everyday items like bread, milk, newspapers, and household supplies. b. Shopping Products: Shopping products are those that consumers generally purchase after comparing quality, price, and style from various brands or retailers. Examples include clothing, furniture, and electronic goods. c. Specialty Products: Specialty products are unique or high-end items that possess speci c characteristics, brand identi cation, or unique attributes for which a signi cant group of buyers is willing to make a special purchasing e ort. Examples include luxury goods like designer handbags, luxury cars, and high-end watches. d. Unsought Products: Unsought products are those that consumers do not actively seek out or may not be aware of. These products typically require aggressive marketing or sales e orts to generate consumer interest. Examples include life insurance, funeral services, and emergency products like roadside assistance kits. Question 17 Head and Shoulders have decided to introduce a new range of hair treatment products using the name “Head and Shoulders” to launch this new range. 1. It could be suggested that Head and Shoulders are using family branding. What is meant by this term? Family branding, also known as umbrella branding or corporate branding, is a marketing strategy in which a company uses its established brand name to promote and sell multiple related products or product lines. In this case, Head and Shoulders is using the existing brand name to introduce a new range of hair treatment products, indicating the use of family branding. 2. Explain two benefits that could be associated from having a strong brand for an organisation like Head and Shoulders. a. Brand Recognition and Loyalty: A strong brand like Head and Shoulders enjoys high brand recognition among consumers. This recognition leads to customer loyalty, as people are more likely to trust and choose products from a brand they are familiar with. It can also help in customer retention, as existing customers are more likely to try new products under the same trusted brand. b. Cost E ciency: Maintaining a strong brand can lead to cost e ciencies in marketing and advertising. When a brand is well-established, it often requires less marketing expenditure to promote new products or product lines. Additionally, a strong brand can command premium pricing, which can be advantageous for an organization like Head and Shoulders. Customers are often willing to pay more for products associated with a reputable and trusted brand, which can result in higher pro tability for the company. Question 18 There are different brand strategies that an organisation takes when managing their brands. A company that produces skincare products for women, has decided to launch a new range of products for men. They have decided to use a manufacturer branding strategy. What benefits would this provide for the organisation? ff ffi ff fi fi ffi ffi ffi • Enhanced Credibility and Trust: The use of a manufacturer's established reputation and credibility can help instill trust among consumers for the new product line. If the manufacturer is well-known for producing high-quality and e ective skincare products, this positive association can transfer to the new range for men, potentially encouraging trust and con dence in the new products among consumers. Cost E ciency in Marketing: Leveraging the manufacturer's brand recognition can lead to cost e ciencies in marketing and promotional e orts. Since the manufacturer's brand is already established, the need for extensive marketing campaigns solely for the new product line can be minimized. This can result in cost savings and a more e cient allocation of resources, allowing the company to focus on product development and other crucial aspects of the new product launch. ffi • Note: this could be asked asking about a private brand, an individual, a family brand or a co-branding strategy. Examples of these must be related to the case in mention. Question 19 New products are critical to the development of organisations and Uber continually introduces new products and services like Uber Eats and UScoot (a fictitious innovation) 1. What is meant by a “new product” A new product refers to a product or service that is introduced to the market for the rst time by an organization. This can include innovations, improvements, or modi cations to existing products, or entirely new o erings that meet a speci c consumer need or demand. 2. Explain any 4 categories of new products that Uber can develop and introduce into the market. a. Product Line Extension: Uber can introduce variations or extensions of their existing services, such as new types of ridesharing options, upgraded vehicle models, or premium service tiers, catering to di erent customer segments and enhancing the overall user experience. b. Brand Extension: Uber can leverage its brand name and customer trust to enter new related markets. For example, they can introduce new services in the transportation sector, such as bikesharing programs, scooter rentals, or electric vehicle charging stations, to expand their reach and provide a comprehensive range of mobility solutions. c. Radical Innovation: Uber can engage in groundbreaking innovations, such as the development of self-driving cars or the implementation of advanced arti cial intelligence technology to improve their service e ciency, safety standards, and overall customer experience, thus revolutionizing the transportation industry. d. Continuous Improvements and Upgrades: Uber can focus on making incremental improvements to their existing services and technology, introducing updates to their mobile application interface, enhancing driver-partner support systems, and implementing advanced safety features to ensure the continuous enhancement and optimization of their services for both drivers and customers. Question 20 To develop a new product, organisations follow a new-product strategy, which is the first step they consider. Uber has decided to expand its services into providing scooters (UScoot) that customers can hire. Explain the 5 steps they would go through to get the service to the market. fi fi fi fi ffi ff • • Idea Generation: Uber would begin by generating ideas and concepts for the new scooter service. This might involve brainstorming sessions, market research, and analyzing consumer trends and preferences in the transportation industry to identify the potential demand for such a service. They might also assess the success of similar services in other regions or markets to gauge the feasibility and potential adoption of the new product. Idea Screening: In this stage, Uber would evaluate the generated ideas and screen them to select the most viable concept for the UScoot service. They would assess the potential market size, ff • • • • • • • • pro tability, and alignment with the company's overall goals and objectives. Factors such as technological feasibility, consumer demand, and potential competition would be considered to ensure that the selected idea aligns with Uber's capabilities and resources. Concept Development and Testing: Uber would then develop a detailed concept for the UScoot service, outlining its key features, pricing strategies, target market, and operational logistics. They might create prototypes or conduct focus groups and surveys to gather feedback from potential customers and stakeholders. This testing phase helps in re ning the concept, identifying potential challenges, and ensuring that the UScoot service meets the speci c needs and expectations of the target market. Marketing Strategy Development: Once the concept is validated, Uber would develop a comprehensive marketing strategy for the UScoot service. This strategy would include de ning the target market segments, identifying key competitive advantages, and outlining the promotional activities and distribution channels to e ectively reach and engage the target customers. Pricing strategies, branding initiatives, and a detailed launch plan would also be developed to create a strong market presence for the new service. Product Development and Commercialization: Uber would proceed with the actual development of the UScoot service, including the design and manufacturing of the scooters, the development of the necessary mobile application interface, and the establishment of the operational infrastructure to support the service. They would conduct rigorous testing and quality assurance processes to ensure that the service meets the required standards and complies with all regulatory and safety guidelines. Finally, a well-planned commercialization strategy would be implemented, involving a strategic launch, customer outreach, and ongoing monitoring and adjustments to ensure the successful integration of the UScoot service into the market. Question 21 “The product life cycle concept is a value concept that explains the life of a product”. 1. What is meant the “product life cycle”? The product life cycle refers to the stages that a product goes through from its introduction to the market until its eventual decline and removal from the market. It is a concept that illustrates the di erent phases of a product's existence and the corresponding sales and pro t levels during each phase. 2. Explain the 4 phases of the PLC for the new range for UScoot ff fi ffi fi fi fi fi fi ff ff ff fi ff a. Introduction Phase: During the introduction phase, UScoot would be launched into the market, with initial promotional activities and marketing campaigns to create awareness and generate interest among potential customers. Sales would be relatively low initially as the product is introduced to the target market, and there might be signi cant investment in research and development and marketing to establish the product's position and build brand recognition. b. Growth Phase: As UScoot gains traction and consumer acceptance, the product would enter the growth phase, characterized by a rapid increase in sales and market share. Uber would continue to invest in expanding the service's reach, improving operational e ciency, and enhancing customer satisfaction. Competition might intensify during this phase, leading to pricing strategies and product di erentiation to maintain and expand the customer base. c. Maturity Phase: In the maturity phase, UScoot would reach its peak level of market penetration, with sales stabilizing and reaching a saturation point. Competitors would have introduced similar services, leading to price stabilization and intense marketing e orts to retain market share. Uber would focus on product di erentiation, customer loyalty programs, and service enhancements to extend the product's life cycle and maximize pro tability during this phase. d. Decline Phase: Eventually, UScoot would enter the decline phase, characterized by a decline in sales and market share due to changing consumer preferences, technological advancements, or the emergence of alternative transportation solutions. Uber would need to make critical decisions during this phase, such as whether to invest in product modi cations, diversi cation, or the gradual phasing out of the product from the market to focus on more pro table opportunities. Question 22 Services are critically important for any economy. 1. What is meant by the term “service”? In the context of business and economics, a service refers to an intangible o ering provided to customers or clients in exchange for payment. Services can include a wide range of activities, such as professional assistance, advice, expertise, or the performance of speci c tasks to meet the needs or demands of consumers. 2. What are the unique characteristics of a service? Intangibility: Services are intangible and cannot be seen, touched, or stored. They often involve experiences, performances, or actions that are not physical in nature, making it challenging for customers to assess their quality before consumption. Inseparability: Services are often produced and consumed simultaneously. The production and delivery of the service are inseparable from the service provider, requiring direct interaction between the service provider and the customer during the service delivery process. Variability: Services can be variable in quality and consistency due to their dependence on human interaction and performance. Factors such as the skills and attitudes of service providers, as well as the speci c circumstances during service delivery, can lead to variations in the quality and customer experience. Perishability: Services are often perishable and cannot be stored for future use. Unused service capacity at a particular time is lost forever, making it crucial for service providers to manage demand and capacity e ectively to avoid revenue loss and maintain service quality. Question 23 Any service, such as a bank anticipates delivering service quality to their clients. Research suggests that there are five dimensions of service quality that riders (customers) would use to evaluate their Uber trip. Explain how each of these dimensions could be used to evaluate Uber. fi fi ff fi ffi fi ff • fi • ff • Reliability: This dimension refers to the ability of the service provider to deliver the service accurately and dependably. For Uber, riders would evaluate the reliability based on the timely arrival of drivers, accurate ETAs, and consistent adherence to the scheduled pick-up and drop-o times. Reliability also encompasses safe and e cient transportation, ensuring that drivers follow optimal routes and provide a secure and smooth ride experience. Assurance: Assurance entails building trust and con dence in the service provider. For Uber, riders would assess assurance based on the professionalism and competence of the drivers, as well as the overall safety measures implemented by the company. This includes ensuring that drivers are licensed, background-checked, and trained to provide a secure and reliable transportation service. Additionally, clear communication, transparent pricing, and responsive customer support contribute to the assurance dimension. Tangibles: Tangibles refer to the physical and observable aspects of the service. In the context of Uber, riders would evaluate tangibles based on the condition of the vehicles, cleanliness, and overall comfort provided during the trip. This includes factors such as the cleanliness of the car's interior, the functionality of the app interface, and the overall userfriendliness of the booking and payment processes. Empathy: Empathy involves understanding and addressing the individual needs of customers. Uber can demonstrate empathy by providing personalized services, fi • accommodating special requests or preferences, and o ering a supportive and customercentric approach to addressing any issues or concerns that riders may have during their trip. This can include attentive and courteous communication from drivers, as well as responsive customer service support for any inquiries or complaints. Responsiveness: Responsiveness refers to the willingness and readiness of the service provider to assist customers promptly. For Uber, this dimension encompasses the timely response to customer inquiries or complaints, e cient handling of any issues during the trip, and the overall ability to address customer needs and concerns e ectively. This also includes the ability to adapt to dynamic circumstances, such as tra c conditions, to ensure a seamless and timely transportation service for riders. • Question 24 The Gap model suggests 5 gaps that can be used to explain the service issues within organisations. Explain these 5 gaps, indicating how they influence what service organisations like airlines implement. ff fl ff fi fi ff fi ff fl ff fi ffi ff ff fi ff fi fi ff fl ff ffi • • ffi • • ffi • • fi • • fl Gap 1: Customer Expectations versus Management Perceptions: This gap represents the disparity between customer expectations and management's understanding of these expectations. In the context of airlines, Gap 1 can arise when management fails to accurately comprehend the speci c needs and preferences of their target customers, leading to a misalignment between the services o ered and the customers' actual expectations. To bridge this gap, airlines need to conduct comprehensive market research and gather customer feedback to gain a deeper understanding of customer expectations and preferences. Gap 2: Management Perceptions versus Service Quality Speci cations: Gap 2 refers to the discrepancy between management's perceptions of customer expectations and the actual service quality speci cations developed by the organization. Within the airline industry, Gap 2 can arise when there is a lack of e ective communication and translation of customer expectations into speci c service quality standards and protocols. To address this gap, airlines need to ensure e ective communication channels between management and service delivery teams, along with clearly de ned service quality standards and protocols that re ect customer expectations accurately. Gap 3: Service Quality Speci cations versus Service Delivery: This gap re ects the disconnect between the service quality speci cations outlined by the airline and the actual service delivery experienced by customers. In the context of airlines, Gap 3 can occur due to issues such as inconsistencies in service delivery, inadequate employee training, or operational ine ciencies that a ect the overall customer experience. To minimize this gap, airlines need to focus on comprehensive training programs for sta , e cient operational processes, and regular performance evaluations to ensure that service delivery aligns closely with the established service quality speci cations. Gap 4: Service Delivery versus External Communications: Gap 4 highlights the disparity between the service delivered to customers and the external communications or marketing promises made by the airline. Within the airline industry, Gap 4 can emerge when marketing messages or advertisements create in ated expectations that are not met during the actual service delivery, leading to customer dissatisfaction. To bridge this gap, airlines must ensure that their marketing communications accurately re ect the actual service o erings and customer experience, thus managing customer expectations more e ectively. Gap 5: Expected Service versus Perceived Service: Gap 5 represents the gap between the service customers expect to receive and the service they perceive they have received. In the context of airlines, Gap 5 can occur due to various factors such as customer biases, individual experiences, or discrepancies between actual service delivery and customer perceptions. To address this gap, airlines need to focus on enhancing customer engagement, soliciting feedback, and implementing e ective complaint • • resolution mechanisms to ensure that customers' perceived service aligns closely with their expected service. Question 25 Even if an organisation has a good product, it is important that the consumer is able to buy the product. This is where an efficient and integrated supply chain plays an important part. 1. What is meant by an “integrated supply chain”? An integrated supply chain refers to a coordinated and interconnected system of processes, activities, resources, and technologies that facilitate the seamless ow of goods, services, and information from the initial production stage to the nal delivery of products to the end consumer. It involves the integration of various stakeholders, including suppliers, manufacturers, distributors, and retailers, to ensure a streamlined and e cient ow of products or services through the entire supply chain network. 2. This integration can be internal or external, or both. Explain what is meant by these, and how an organisation like Uber can implement them to their advantage. Internal Integration: Internal integration in the supply chain involves the alignment and coordination of various internal functions and departments within an organization. For Uber, this could entail the synchronization of di erent operational units such as marketing, product development, and logistics, to ensure a smooth and cohesive ow of services. By integrating internal processes, Uber can enhance e ciency, reduce operational redundancies, and improve overall service delivery, ultimately leading to a more seamless and customer-centric experience. b. External Integration: External integration in the supply chain refers to the collaboration and coordination with external partners, including suppliers, manufacturers, distributors, and other service providers, to optimize the ow of materials, information, and services across the supply chain network. For Uber, external integration could involve strategic partnerships with vehicle manufacturers, technology companies, and local transportation authorities to enhance the availability of resources, improve operational capabilities, and ensure a reliable and e cient transportation service. By fostering strong relationships and collaboration with external partners, Uber can e ectively manage costs, enhance service quality, and expand its market reach, thereby gaining a competitive edge in the transportation industry. Question 26 fl fi fl ff fl ff ffi fl ffi ffi You have been appointed as a supply chain manager at Uber. The task requires you to implement a number of business processes to increase customer satisfaction and profitability. 1. What is meant by a “business process” within the context of supply chain management? In the context of supply chain management, a business process refers to a series of interconnected activities, tasks, or steps that are undertaken within an organization to facilitate the e cient and e ective ow of goods, services, and information throughout the supply chain network. These processes are designed to optimize operational e ciency, enhance productivity, and ensure the timely delivery of products or services to meet customer demands and expectations. 2. Explain two processes that you will focus on in your task. Demand Forecasting and Planning: Implementing a robust demand forecasting and planning process would be crucial for Uber. By utilizing advanced analytics and data-driven techniques, the company can accurately predict and anticipate customer demand patterns for di erent transportation services in various regions. This process would enable Uber to optimize its resource allocation, improve service availability, and enhance customer satisfaction by ensuring that the right number of drivers and vehicles are available to meet the uctuating demand e ciently. b. Supplier Relationship Management (SRM): Focusing on e ective supplier relationship management is essential for Uber to ensure the timely and reliable availability of resources, such as vehicles, maintenance services, and technological infrastructure. By establishing strong partnerships and collaborative frameworks with key suppliers, Uber can streamline its procurement processes, negotiate favorable pricing terms, and ensure a consistent supply of high-quality resources. This process would contribute to cost savings, improved service quality, and enhanced operational resilience, ultimately leading to increased customer satisfaction and long-term pro tability for the organization. Question 27 The communication process is integral to Uber when they want to communicate with their target market. Explain the elements in the communication process, showing how Uber can use each of them when communicating their customers? ffi ff ff fi ff fl ff fl ff fi ffi • ff • ff • Sender: Uber, as the sender, initiates the communication process by crafting and delivering the intended messages to its target customers. It is crucial for Uber to ensure that the messages are clear, consistent, and aligned with the company's brand image and values. Encoding: Uber encodes its messages by choosing appropriate language, content, and visual elements to e ectively convey its o erings and value propositions to its customers. This involves tailoring the communication to resonate with the preferences, needs, and demographics of the target market, ensuring that the messages are engaging and relevant. Message: The message is the content that Uber intends to communicate to its customers. This includes information about its services, promotions, bene ts, and any other relevant details that would appeal to the target audience. Uber must ensure that the message is concise, compelling, and highlights the unique selling points of its services to capture the attention and interest of its customers. Channel: Uber utilizes various communication channels, such as its mobile application, social media platforms, email newsletters, and advertising campaigns, to disseminate its messages to the target market. By strategically selecting the most e ective communication channels, Uber can reach its customers at the right time and in the right context, maximizing the impact and engagement of its communication e orts. ffi • • • • Decoding: Customers decode the messages received from Uber based on their understanding, perceptions, and interpretations. Uber must anticipate how its customers will interpret the messages and ensure that the communication is designed to be easily understandable and resonates with the target audience's preferences and values. Receiver: The receiver in the communication process is the target market or the customers of Uber. Uber focuses on understanding its customers' needs, preferences, and behaviors to tailor its communication strategies and messages to e ectively engage and resonate with the target audience. Feedback: Uber encourages feedback from its customers to gauge the e ectiveness of its communication e orts. By actively seeking and analyzing customer feedback, Uber can gain valuable insights into the customers' perceptions, preferences, and satisfaction levels, allowing the company to re ne its communication strategies and improve customer engagement over time. Question 28 The promotional mix uses a number of ingredients, components or strategies to communicate with the target market. Explain the various components that Uber can consider using to communicate with their target market in Jönköping. Show clearly how Uber would use them. fi ff ffl ff fi fi ff ff ff fi • fi • fi • ff • Advertising: Uber can use advertising strategies such as online and o ine advertisements, including social media ads, digital banners, billboards, and local print media, to create awareness about their services, special promotions, and bene ts for customers in Jönköping. They can highlight the convenience, safety, and reliability of their transportation services to attract and retain customers in the region. Sales Promotion: Uber can o er sales promotions such as discounts, referral bonuses, and special o ers for rst-time users or frequent riders in Jönköping. By providing promotional codes, limited-time o ers, and exclusive deals, Uber can encourage more people to use their services, thereby increasing customer engagement and loyalty within the local market. Public Relations (PR): Uber can engage in PR activities such as participating in community events, sponsoring local initiatives, and partnering with local organizations to demonstrate their commitment to the community and build a positive brand image in Jönköping. By fostering positive relationships with the local community, Uber can enhance its reputation and credibility, leading to increased customer trust and loyalty. Direct Marketing: Uber can implement direct marketing strategies, including targeted email campaigns, personalized messages, and in-app noti cations, to communicate directly with customers in Jönköping. By customizing their marketing messages based on user preferences, trip history, and location-speci c o ers, Uber can deliver tailored and relevant communication that resonates with the speci c needs and interests of their target market in Jönköping. Personal Selling: Uber can focus on personal selling by training their drivers to provide exceptional customer service, ensure safe and comfortable rides, and act as brand ambassadors for Uber in Jönköping. By emphasizing the importance of customer satisfaction and fostering positive interactions between drivers and riders, Uber can build strong customer relationships and encourage word-of-mouth referrals, thereby expanding their customer base and market presence in the region. ff • Question 29 There are a number of factors that affect the promotional mix, and the various promotional tools used by the organisation. Comment on three of these factors, showing how they would be used by Uber Stockholm. Target Audience Preferences and Behavior: Understanding the preferences, behaviors, and characteristics of the target audience in Stockholm is crucial for Uber. By analyzing the demographic, psychographic, and behavioral traits of their customers in Stockholm, Uber can tailor their promotional mix to resonate with the speci c needs and preferences of the local market. This could involve customizing promotional messages and o ers to match the preferred communication channels, language preferences, and cultural nuances of the target audience in Stockholm, thereby enhancing the e ectiveness of their promotional campaigns and increasing customer engagement and retention. Competitive Landscape and Market Trends: Keeping a close eye on the competitive landscape and market trends in Stockholm is essential for Uber to stay ahead in the highly competitive transportation industry. By monitoring the strategies and promotional activities of competitors in the region, Uber can identify unique selling points, di erentiation opportunities, and areas for improvement within their promotional mix. They can adjust their promotional tools to highlight their competitive advantages, di erentiate their services, and emphasize their commitment to innovation, safety, and customer satisfaction, thereby positioning themselves strategically in the market and gaining a competitive edge over other transportation providers in Stockholm. Regulatory Environment and Technological Advancements: Uber needs to stay informed about the regulatory environment and technological advancements in the transportation sector in Stockholm. Compliance with local regulations, adherence to safety standards, and the integration of innovative technologies are essential for maintaining a positive brand image and building trust among customers and stakeholders in the region. By aligning their promotional mix with the evolving regulatory requirements and technological advancements, Uber can emphasize their commitment to providing safe, reliable, and technologically advanced transportation solutions in Stockholm, thereby enhancing their credibility and fostering long-term customer loyalty and trust. • • • • • • Question 30 Most organisations like Uber are involved in social media. 1. Explain three (3) implications that social media has for marketers in Uber and how they impact their business. Enhanced Brand Visibility and Engagement: Social media boosts brand visibility and fosters direct engagement with a wider audience, enabling Uber to share updates and promotions, while also encouraging feedback and participation from users. b. Customer Feedback and Relationship Management: Social media facilitates prompt customer feedback and enables e ective management of customer relationships, allowing Uber to address concerns transparently and build trust and loyalty. c. Data-Driven Marketing Insights and Targeting: Social media analytics provide valuable customer insights, aiding Uber in targeted marketing by tailoring strategies and messages to speci c demographics and locations, thus enhancing campaign e ciency and relevance. 2. Comment on two (2) ways consumers use social media. ffi ff ff ff ff fi ff fi Information and Product Research: Consumers use social media to research products and services, relying on reviews and user-generated content to evaluate quality and user experiences, including those related to Uber. b. Communication and Engagement: Social media serves as a communication platform for consumers to share experiences, seek recommendations, and engage with brands and peers, allowing them to express opinions and seek support regarding their interactions with companies like Uber. Question 31 There are a number of pricing objectives that Uber could consider. 1. Assuming that Uber has decided to follow a profit-orientated pricing objective, what would this mean for the pricing of their service. If Uber adopts a pro t-oriented pricing objective, it would prioritize setting prices that maximize pro tability. This would entail carefully analyzing the costs associated with providing their transportation services, including fuel, maintenance, and operational expenses, and then establishing pricing structures that not only cover these costs but also generate a substantial pro t margin. Uber would focus on setting competitive yet pro table fares that re ect the value of their services while remaining attractive to their customer base in various locations. They would continually monitor market demand, competitor pricing strategies, and customer preferences to adjust pricing accordingly and ensure that their pro t objectives are met. 2. It could be said that Uber uses dynamic pricing. How is this implemented by the company. Uber implements dynamic pricing, also known as surge pricing, using an algorithm that adjusts fares in response to uctuations in demand and supply for their services. During periods of high demand, such as rush hours or in busy locations, the fares increase to incentivize more drivers to be available, thus ensuring that customers can quickly secure rides despite the heightened demand. This pricing strategy helps balance supply and demand dynamically, enabling Uber to e ciently manage service availability and meet customer needs during peak hours or in areas with limited vehicle availability. The dynamic pricing model is communicated to customers through the app, ensuring transparency and providing them with the option to accept or decline the higher fares based on their willingness to pay for the convenience and immediacy of the service. Question 32 It is critical that the price of a product or service is correctly determined if the organisation wants to make a profit. Uber will be launching a new scooter service. How would they go about setting the right price for this service? fi ff ffi fl fi fi fi fl fl fi fi • fi • fi Cost Analysis: Uber would conduct a comprehensive analysis of the costs associated with launching and operating the scooter service. This would include assessing the costs of acquiring the scooters, maintenance, operational expenses, insurance, storage, and any other relevant overhead costs. By accurately determining the total cost per scooter, Uber can establish a baseline cost that must be covered to ensure pro tability. Market Research: Uber would conduct market research to understand the demand for scooter services in the target area, as well as the pricing strategies of competitors o ering similar services. This analysis would provide insights into customer preferences, willingness to pay, and price sensitivity, helping Uber to position its pricing competitively and attractively in the market. Value Proposition: Uber would evaluate the unique value proposition of its scooter service, considering factors such as convenience, accessibility, environmental bene ts, and time-saving advantages over other transportation options. By understanding the perceived value of the service from the customer's perspective, Uber can align the pricing with the perceived bene ts and overall value proposition, ensuring that the price re ects the utility and convenience of the scooter service. • fi fi ff ff fi fi • Target Market Segmentation: Uber would segment its target market based on factors such as demographics, geographic location, and consumer preferences. This segmentation would allow Uber to tailor pricing strategies to speci c customer segments, considering factors like income levels, mobility needs, and lifestyle preferences. Di erent pricing tiers or options could be introduced to cater to various customer segments e ectively. Pricing Strategy and Testing: Based on the cost analysis, market research, value proposition, and target market segmentation, Uber would develop a comprehensive pricing strategy for its scooter service. This might involve implementing competitive pricing, valuebased pricing, or penetration pricing strategies, depending on the speci c market dynamics and business objectives. To ensure the e ectiveness of the pricing strategy, Uber could conduct pricing tests or pilot programs to gauge customer response and ne-tune the pricing structure before the full-scale launch of the scooter service. This iterative process would allow Uber to optimize the pricing to maximize pro tability while remaining competitive and appealing to its target customers. ff •