Level 3 Digital Marketing KM2 Exam
Revision Questions with Correct
Answers
Maturity - ANSWER-Sales tend to slow or even stop - signaling a largely saturated
market. At this point, sales can even start to drop. Pricing at this stage can tend to
get competitive, signaling margin shrinking as prices begin falling due to the weight
of outside pressures like competition or lower demand. Marketing at this point is
targeted at fending off competition, and companies will often develop new or altered
products to reach different market segments. In this stage, saturation is reached and
sales volume is maxed out. Companies often begin innovating to maintain or
increase their market share, changing or developing their product to meet with new
demographics or developing technologies.
Decline - ANSWER-Product sales drop significantly and consumer behavior changes
as there is less demand for the product. The company's product loses more and
more market share, and competition tends to cause sales to deteriorate. Marketing in
this stage stage is often minimal or targeted at already loyal customers, and prices
are reduced. Eventually, the product will be retired out of the market unless it is able
to redesign itself to remain relevant or in-demand.
Relationship Marketing - ANSWER-A strategy designed to foster customer loyalty,
interaction and long-term engagement. It is designed to develop strong connections
with customers by providing them with information directly suited to their needs and
interests and by promoting open communication.
Benefits of Relationship Marketing - ANSWER-- Returning customers often purchase
more than first-time customers.
- Many customers who have a relationship with a brand will purchase upcoming
products because of the past values experienced in previous purchases.
- People leave reviews for brands and businesses when an experience goes beyond
their expectations.
- Creates personal connections.
- Brands and businesses receive honest insights from invested people.
- Gives an organization an out to be able to keep a customer. This is because
customer contacts are at the forefront of this marketing effort.
- Multiple avenues of relationship building available today: social media, in-person
contacts, direct mail contacts, etc
Cons of Relationship Marketing - ANSWER-- New customers are treated as a
secondary commodity.
- Negative information can ruin a relationship marketing campaign.
- Takes time to be effective
- Value propositions change over time, so the marketing efforts need to change too.
- Can require a culture change.
, Market Research - ANSWER-The action or activity of gathering information about
consumers' needs and preferences.
Competitor SWOT Analysis - ANSWER-Identifies competitors and evaluates their
strategies to determine strengths and weaknesses relative to your brand.
SWOT - ANSWER-Strengths, Weaknesses, Opportunities, Threats
Smart Objectives and Goals - ANSWER-Specific (specific goal), measurable
(KPIs?), attainable, relevant, time-bound (deadlines)
Audience Setting - ANSWER-Identifying target audience:
- Look at current customer base.
- Check out competition.
- Analyse product/service.
- Choose specific demographics to target.
- Consider the psychographics of target.
- Evaluate decision.
Value Proposition - ANSWER-The value a company promises to deliver to
customers should they choose to buy their product. It can be presented as a
business or marketing statement that a company uses to summarize why a
consumer should buy a product or use a service.
Channel Strategy - ANSWER-The plan for moving a product or a service through the
chain of commerce to the end customer.
Implementation - ANSWER-The process of putting a decision or plan into effect;
execution.
Budgeting - ANSWER-The process of creating a plan to spend money (on a
marketing plan).
Digital Content - ANSWER-Pictures, videos, infographics, presentations, polls, e-
books, animations, live streaming.
Acquisition Channels - ANSWER-Website, email, social media, events, print,
recommendation, display, Pay Per Click, natural search.
Market Segmentation Strategies - ANSWER-Geographic, Demographic,
Behavioural, Psychographic.
Demographic Segmentation - ANSWER-The WHO:
Looks at identifiable non-character traits such as:
Age
Gender
Ethnicity
Income
Level of education
Revision Questions with Correct
Answers
Maturity - ANSWER-Sales tend to slow or even stop - signaling a largely saturated
market. At this point, sales can even start to drop. Pricing at this stage can tend to
get competitive, signaling margin shrinking as prices begin falling due to the weight
of outside pressures like competition or lower demand. Marketing at this point is
targeted at fending off competition, and companies will often develop new or altered
products to reach different market segments. In this stage, saturation is reached and
sales volume is maxed out. Companies often begin innovating to maintain or
increase their market share, changing or developing their product to meet with new
demographics or developing technologies.
Decline - ANSWER-Product sales drop significantly and consumer behavior changes
as there is less demand for the product. The company's product loses more and
more market share, and competition tends to cause sales to deteriorate. Marketing in
this stage stage is often minimal or targeted at already loyal customers, and prices
are reduced. Eventually, the product will be retired out of the market unless it is able
to redesign itself to remain relevant or in-demand.
Relationship Marketing - ANSWER-A strategy designed to foster customer loyalty,
interaction and long-term engagement. It is designed to develop strong connections
with customers by providing them with information directly suited to their needs and
interests and by promoting open communication.
Benefits of Relationship Marketing - ANSWER-- Returning customers often purchase
more than first-time customers.
- Many customers who have a relationship with a brand will purchase upcoming
products because of the past values experienced in previous purchases.
- People leave reviews for brands and businesses when an experience goes beyond
their expectations.
- Creates personal connections.
- Brands and businesses receive honest insights from invested people.
- Gives an organization an out to be able to keep a customer. This is because
customer contacts are at the forefront of this marketing effort.
- Multiple avenues of relationship building available today: social media, in-person
contacts, direct mail contacts, etc
Cons of Relationship Marketing - ANSWER-- New customers are treated as a
secondary commodity.
- Negative information can ruin a relationship marketing campaign.
- Takes time to be effective
- Value propositions change over time, so the marketing efforts need to change too.
- Can require a culture change.
, Market Research - ANSWER-The action or activity of gathering information about
consumers' needs and preferences.
Competitor SWOT Analysis - ANSWER-Identifies competitors and evaluates their
strategies to determine strengths and weaknesses relative to your brand.
SWOT - ANSWER-Strengths, Weaknesses, Opportunities, Threats
Smart Objectives and Goals - ANSWER-Specific (specific goal), measurable
(KPIs?), attainable, relevant, time-bound (deadlines)
Audience Setting - ANSWER-Identifying target audience:
- Look at current customer base.
- Check out competition.
- Analyse product/service.
- Choose specific demographics to target.
- Consider the psychographics of target.
- Evaluate decision.
Value Proposition - ANSWER-The value a company promises to deliver to
customers should they choose to buy their product. It can be presented as a
business or marketing statement that a company uses to summarize why a
consumer should buy a product or use a service.
Channel Strategy - ANSWER-The plan for moving a product or a service through the
chain of commerce to the end customer.
Implementation - ANSWER-The process of putting a decision or plan into effect;
execution.
Budgeting - ANSWER-The process of creating a plan to spend money (on a
marketing plan).
Digital Content - ANSWER-Pictures, videos, infographics, presentations, polls, e-
books, animations, live streaming.
Acquisition Channels - ANSWER-Website, email, social media, events, print,
recommendation, display, Pay Per Click, natural search.
Market Segmentation Strategies - ANSWER-Geographic, Demographic,
Behavioural, Psychographic.
Demographic Segmentation - ANSWER-The WHO:
Looks at identifiable non-character traits such as:
Age
Gender
Ethnicity
Income
Level of education
