Chapter - 1

Q1. Describe the interrelationship between consumer behavior and the marketing concept.

A. Consumer behavior is the study of consumers’ actions during searching for, purchasing,
using, evaluating, and disposing of products and services that they expect will satisfy their needs.
The core of marketing is identifying unfilled needs and delivering products and services that
satisfy these needs. Consumer behavior explains how individuals make decisions to spend their
available resources (i.e., time, money, effort) on goods that marketers offer for sale. The study of
consumer behavior describes what products and brands consumers buy, why they buy them,
when they buy them, where they buy them, how often they buy them, how often they use them,
how they evaluate them after the purchase, and whether or not they buy them repeatedly.

Marketing and consumer behavior stem from the marketing concept, which maintains that the
core of marketing consists of satisfying consumers’ needs, creating value, and retaining
customers. It makes sure that companies must produce only those goods that they have already
determined that consumers would buy. Marketing-oriented companies do not try to persuade
consumers to buy what the firm has already produced, but rather to produce only products that
they know they can sell, thereby satisfying consumers’ needs and turning them into loyal
customers.

Q3. Define the societal marketing concept and discuss the importance of integrating
marketing ethics into a company’s philosophy and operations.

A. The societal marketing concept requires marketers to fulfill the needs of the target audience in
ways that improve, preserve, and enhance society’s well-being while simultaneously meeting
their business objectives. It maintains that companies would be better off in a stronger, healthier
society and that marketers that incorporate ethical behavior and social responsibility attract and
maintain loyal consumer support over the long term.

Marketing ethics can be defined as the set of guidelines and the area of applied ethics that acts as
a guiding light behind the operations and regulations of marketing. Some of the areas of
marketing ethics overlap with the ethics of media as they both are co-related. The set of ethical
guidelines needs to be dedicatedly followed by the management and marketing department
whilst working on the various marketing strategies and marketing campaigns to promote the
products and services offered by the firm to the target market. The importance of marketing
ethics are as follows:

 Customer Loyalty- It helps the company to win the trust and loyalty of its customers on the
long-term basis as it is the basic human nature and tendency to go for the brand that is
genuine in its nature, its products and services offered are authentic, and they sell the exact
products and services that are shown during the marketing campaigns and artworks.
 Long-term gains- To gain customer loyalty, high credibility in the market and in the minds of
the customers, increased market share, enhanced brand value, higher sales, and elevated
revenues amongst others with the company able to accomplish its both short term and long
term objectives in a successful manner.
 Leadership- It attains the status of a leader in the market with the competitive brand trying to
benchmark its practices and strategies owing to the company laying and following the rare
path of marketing ethics that results in the various benefits such as loyal base of customers,
higher sales, and increased market share, working as a source of inspiration for one and all in
the market.
 Enhanced brand value- The overall market fraternity, competitors, and the customers, sells
what it displays in its advertisement campaigns, exceed the expectations of the customers,
sell products and services that are high on the realms and objectives of quality, and sets a
new benchmark in the market for the competition to match and follow. All these factors
result in the enhanced brand value of the firm making it the most trustworthy and reliable
brand in the market.

Q4. Describe how technology enhances the exchange between marketers and consumers.

A. Technology has changed the way that global citizens receive, interpret and react to
information. Instead of merely concerning itself with providing products that meet the needs and
wants of consumers, marketing’s role shifted to developing and managing customer
relationships. Today, more than decade after this new role was adopted, marketers are still
engaged in building these relationships.
Through the use of the internet, consumers have gained access to data from around the world.
With just a click of a button, consumers can gain insights about companies and their products.
They can compare products, find lower prices, read reviews/ feedbacks and even communicate
with other users about product quality and buyer satisfaction.

Consumers no longer believe in the words of the marketer, instead they believe in the words of
their communities. Marketing is now forced to listen to customers and find ways to convert
interactions into personalized, value-laden products that are affordable and better than that of
competitors. The reality remains that companies are no longer in charge of the communication
process, their brand message and even their pricing models at times. Technology has given way
to the rise of the conscious consumer.

Q6. Discuss the interrelationships among customer expectations and satisfaction, perceived
value, and customer retention. Why is customer retention essential?

A. Customer value is the ratio between customers’ perceived benefits and the resources they use
to obtain those benefits. When a consumer expects something from a good or service and the
satisfaction is met, the consumer becomes loyal to that product or service to a certain extent.
Customer satisfaction is customers’ perceptions of the performance of the product or service in
relation to their expectations. Customer retention involves turning individual consumer
transactions into long-term customer relationships by making it in the best interests of customers
to stay with the company rather than switch to another firm. It is more expensive to win new
customers than to retain existing ones. Technologies allow marketers to retain more customers,
and collect highly sophisticated data about shoppers’ preferences and post-purchase evaluations.
Consumers who are highly satisfied or delighted keep buying the same products and brands,
provide positive word-of-mouth to others, and often become “customers for life.” Those who are
less satisfied or feel neutral either switch to a competitor immediately or wait until another
marketer offers them a somewhat lower price and then switch. Dissatisfied customers spread
negative and often exaggerated word-of-mouth. Internal marketing is marketing the organization
to its personnel. Perceived value is relative and subjective while customer satisfaction is the
individual’s perception of the performance of the product or service in relation to his or her
expectation. The concept of customer satisfaction is a function of customer expectations.
Customers whose experiences match expectations will be satisfied and customers whose
expectations are exceeded will be very satisfied or delighted.

Customer retention is important as the overall objective of providing value to customers

continuously and more effectively than to competition is to have and to retain highly satisfied
customers. The purpose of customer retention is to make it the best interest of customers to stay
with the company rather than switch to another firm. The reason that customer retention is
essential is that in almost all business situations, it is more expensive to win new customers than
to keep existing ones.

Q7. How can marketers use technology to improve customer retention and enhance their
bonds with customers?

A. Technologies allow marketers to retain more customers, and collect highly sophisticated data
about shoppers’ preferences and post-purchase evaluations. The two interrelated forms of
customer engagement with marketers are “Emotional bonds” that represent a customer’s high
level of personal commitment and attachment to the company. Some of the determinants are:

 Nurturing- Receiving reminders about making purchases; providing relevant information for
one’s purchases; acknowledgment of appreciating one’s business; making an effort to
increase business with the customer; cultivating a relationship with the customer.
 Engagement- The seller’s site is designed in a way that is attractive. Consumers enjoy
shopping at the site, feel comfortable shopping at the site and considers that it’s inviting
comfortable shopping at the site.
 Trust- Consumers count on the traders to complete purchase transactions successfully. They
trust the site’s performance, feeling that the merchant is reliable and honest.

Then there are “Transactional bonds” that refers to the mechanics and structures that facilitate
exchanges between consumers and sellers. Savvy marketers always strive to build emotional
bonds with customers. Technology, mostly in the form of social media, is the most innovative
and versatile tool for engaging customers with companies emotionally and far beyond the selling
act. Some of its determinants are:
 Adaptation- The merchant’s purchase recommendations match one’s needs; one is enabled to
order products that are tailor-made; personalized advertisements and promotions; feeling like
a unique and valued customer.
 Network- Customers sharing experiences about their product purchases on the seller’s
website, and considers this as useful network for sharing experiences; shoppers benefit from
the community of prospects and customers sponsored by the merchant.
 Transaction ease- Merchant’s website can be navigated intuitively; a first-time buyer is able
to make a purchase without much help; site is user-friendly and enables quick transactions.
 Interactivity- Ability to view merchandise offerings from different perspectives; search tool
that enables one to quickly locate products; having tools that make comparisons easy; useful
information.

Social media include means of interaction among people in which they create, share, and
exchange information and ideas in virtual communities and networks. Social media have
transformed market research. Many companies can easily collect input about customers’
preferences, sometimes without actively questioning consumers.

Q8. Discuss the role of the social and behavioral sciences in developing the consumer
decision-making model.

A. Consumer behavior stems from four disciplines:

1. Psychology is the study of the human mind and the mental factors that affect behavior.
2. Sociology is the study of the development, structure, functioning, and problems of human
society.
3. Anthropology compares human societies’ culture and development.
4. Communication is the process of imparting or exchanging information.

The process of consumer decision-making consists of the input, process, and output stages. The
input stage includes two influencing factors: the firm’s marketing efforts and sociocultural
influences. This stage also includes the methods by which information from firms and
sociocultural sources is transmitted to consumers. The process stage focuses on how consumers
make decisions. Psychological factors affect how the external inputs influence the consumer’s
recognition of a need, pre-purchase search for information, and evaluation of alternatives. The
output stage consists of two post-decision activities: Purchase behavior and post-purchase
evaluation.

Chapter - 2
Q1. What is market segmentation? How is the practice of market segmentation related to
the marketing concept?

A. The philosophy of marketing management is that organizational goals and achievements

depends on knowing the needs and wants of target markets and delivering the desired
satisfactions better than the competitors. It involves focusing on customer needs before
developing the product, aligning all functions of the company to focus on those needs and
realizing a profit by successfully satisfying customer needs over the long term.

This is where segmentation occurs, as the target markets are divided according to their needs or
choice of product/service. Market segmentation is the process of dividing a market into subsets
of consumers with common needs or characteristics. Each subset represents a consumer group
with shared needs that are different from those shared by other groups.

Q2. How are market segmentation, targeting, and positioning interrelated? Illustrate how
these three concepts can be used to develop a marketing strategy for a product of your
choice.

A. Market segmentation is the process of dividing a market into subsets of consumers with
common needs or characteristics. Each subset represents a consumer group with shared needs
that are different from those shared by other groups. Targeting consists of selecting the segments
that the company views as prospective customers and pursuing them. Positioning is the process
by which a company creates a distinct image and identity for its products, services, and brands in
consumers’ minds. The image differentiates the company’s offering from competition by
communicating to the target audience that the product, service, or brand fulfills their needs better
than alternatives. Segmentation, targeting, and positioning are interrelated and implemented
sequentially.
These three concepts are the key elements of marketing consumer goods and services. They
enable producers to avoid head-on competition in the marketplace by differentiating their
products on the basis of such features as price, styling, packaging, promotional appeal, method of
distribution, and level of service. Effectively providing to the distinct needs of consumers by
offering them clearly differentiated products is significantly more profitable than mass
marketing, in spite of the much higher research, production, advertising, and distribution costs
that accompany segmentation and strategic targeting.

For example, if I am to develop marketing strategy for a “Fashion House", the following four
steps must be followed:

1. Segment or separate the market. The segmenting step is essentially a brainstorming a list of
all the potential market segments one wishes to target in a marketing campaign. There are
numerous ways to segment the market:
a) Demographic: By personal attributes such as age, marital status, gender, ethnicity,
sexuality, education, or occupation.
b) Behavioral: By observing how the product is used, whether buyers have tendency to
repeat-purchase etc.
c) Geographic: By country, region, city, or neighborhood.
d) Psychographic: By personality, culture, values, or lifestyle.
2. Target these segments. It can be done by:
a) Criteria Size: The market must be large enough to justify segmenting. If the market is
small, it may make it smaller.
b) Variables: Measurable differences must exist between segments.
c) Funding: Anticipated profits must exceed the costs of additional marketing plans for
all initial segments.
3. Positioning the brand. The goal is to offer something that is bigger, better or more valuable
than what your competitors offer to a particular market segment. The positioning will serve
as the big-picture guide in building the marketing campaign. The key to positioning is to
examine the relationship between values as a company and what is being offered as it relates
to the customer segment that is targeted. A placement map is to be created with the current
competitors for different demographics, such as a scatter graph this should show where there
is a gap in the market and a subsequent easy entrance for the product and service.
4. Implementation of the product and service. After the strategizing process has yielded clear
results, the next stage is to implement marketing tasks in order to achieve the intended goals.

Q3. Apply the criteria for effective targeting to marketing a product of your choice to
college students.

A. To be an effective target, a market segment should be:

 Identifiable- Marketers divide consumers into separate segments on the basis of common or
shared needs by using demographics, lifestyles, and other factors. Some segmentation
factors, such as demographics (e.g., age, gender, and ethnicity), are easy to identify, and
others can be determined through questioning (e.g., education, income, occupation, marital
status). Other features, such as the product benefits buyers seek and customers’ lifestyles, are
difficult to identify and measure.
 Sizable- To be a viable market, a segment must consist of enough consumers to make
targeting it profitable. A segment can be identifiable, but not large enough to be profitable.
For example, athletic and slim men with wide shoulders and narrow waists often have to buy
suits with trousers that are larger than they need (and have them retailored).
 Stable or growing- Most marketers prefer to target consumer segments that are relatively
stable in terms of lifestyles and consumption patterns (and are also likely to grow larger and
more viable in the future) and avoid “changeable” segments that are unpredictable. For
example, teenagers are a sizeable and easily identifiable market segment, eager to buy, able
to spend, and easily reached. Yet, they are also likely to embrace fads, and by the time
marketers produce merchandise for a popular teenage trend, interest in it may have waned.
 Accessible (reachable) - To be targeted, a segment must be accessible, which means that
marketers must be able to communicate with its consumers effectively and economically.
 Congruent with the marketer’s objectives and resources- Not every company is interested in
or has the means to reach every market segment, even if that segment meets the four
preceding criteria. For example, in contrast to the four in-flight options that Qantas provides,
Southwest Airlines offers only one class of service because its business objective is to
provide uniform, inexpensive, no-frills air transportation.
Q4. Discuss the advantages and disadvantages of using demographics as a basis for
segmentation. Can demographics and psychographics be used together to segment
markets? Illustrate your answer with a specific example.

A. Demographic segmentation divides consumers according to age, gender, ethnicity, income

and wealth, occupation, marital status, household type and size, and geographical location. These
variables are objective, empirical, and can be determined easily through questioning or
observation. They enable marketers to classify each consumer into a clearly defined category,
such as an age group or income bracket. There are various advantages as well as some
disadvantages of demographic segmentation, and all will be discussed based on demographic
segmentation of a fashion house named “Orchids”:

The advantages:

 Data is easy to obtain- One way to access demographic information is via government-
maintained census data, which is readily available to the public. The data can be accessed, for
free, online. So, while segmenting, if Orchids needs to find out a specific age group, or
gender in order to target them, they can attain it from the given information.
 Identify potential market- When an organization looks at the demographic segmentation, it
focuses on the people who are most likely to buy a product. This helps in identifying the
target market. This way, by looking at the informations, Orchids will know exactly how
many people have the chance to take their products, hence will get the idea of the potentiality
of the market.
 Easy to measure- Demographic data tends to be easier to assess and measure due to the
availability of the data itself, and the steady flow of updates. Demographic data relies on
simple facts about individuals, and it’s this simplicity that makes it so measurable and
actionable. So, if Orchids needs to figure out the amount of their potential customer, based on
the information related to demography, it is possible.

The disadvantages:
 Based on assumptions- Demographic segmentation is mostly criticized for its one-
dimensional approach. It means that grouping people based on simple demographic
information can lead to brands making extensive statements about consumers.
 Demographic data is too vague- Whilst demographic data can tell a person’s age or how
much they earn in a year, this information doesn’t give insights into the individual’s
character or their consumer wants and values.
 Frequent changes- Demographic data has the ability to change rapidly; age changes every
year, people's' incomes change, their marital status, education level, occupation, the list goes
on. So, in this sense, census data is not as reliable as it once was. Furthermore, it’s hard to
guarantee that the information given by individuals will always be true.

Q5. For each of the following products, identify the segmentation base that you consider to
be the best for targeting consumers: (a) biscuits, (b) shampoo, (c) wireless broadband, and
(d) holidays. Explain your choices.

A. Segmentation base of products depend on various things. It is not possible for companies to
design a marketing mix that will suit every consumer needs. For example, the segmentation
requires to target consumers for biscuits will not be same as that of consumers of shampoo,
internet services, or tourism.

a) Biscuits- Biscuits are not a necessity. People with different income level would but different
quality biscuits and people with very lower income may not even buy it. Take a rickshaw
puller, for example. They will but biscuits, but the ones with the lowest price, maybe rusks,
that are available on the roadside small stall-like shops. They may just have it as their
breakfast. But consider a standard family. They will have a wider range of options to choose
from. Therefore its segmentation base is “demographic (income) segmentation”
b) Shampoo- Shampoos usually come in various type. Most commonly it is seen that they are
divided between genders. For example, while “dove shampoo” is targeted at female
consumers, now another range can be found as “dove men”. So one of the segmentation may
be demographic (gender) segmentation. Again, we may find a wide range beyond just men
and women. The companies often aim at hair solutions for specific problems like hair fall or
oil controls, etc. in this case it shall be segmented as psychographic segmented.
c) Wireless broadband- Although internet is widely used everywhere, the wireless broadband
connection is mainly targeted at users who tend to hold advanced lifestyles and always needs
to be connected to internet. For example, the smartphone users or portable computer users,
because if the device doesn’t support the wireless connection then it is useless.
Psychographic segmentation include consumers’ activities, interests, and opinions. Therefore
this segmentation is best for targeting consumers.
d) Holidays- geographic

Q6. Some marketers consider benefit segmentation to be the segmentation approach most
consistent with the marketing concept. Do you agree or disagree with this view? Why?

A. Benefit segmentation is built upon the premise that consumers are basically purchasing needs,
wants, and satisfactions. Thus, it is entirely consistent with the marketing concept. Benefit
segmentation allows marketers to position various brands within the same product category by
stressing those benefits/desired satisfactions appropriate to each segment served. For example, in
the toothpaste market, Close-up is marketed by using a social appeal that stresses bright teeth and
is targeted to young people; Aim is targeted to parents as a good tasting toothpaste that will
encourage children to brush longer; Viadent is targeted to adults as a means to remove tartar
(cosmetic benefit) and plaque (health benefit).

Q8. Mobile service providers segment their customers based on several variables. What are
some of these variables? Identify five benefits that mobile users might seek that could be
used for targeting this group.

A. Mobile service providers segment their customers based on several variables. Some of those
variables are:

1. Demographic- Demographic segmentation divides consumers according to age, gender,

ethnicity, income and wealth, occupation, marital status, household type and size, and
geographical location. These variables are objective, empirical, and can be determined easily
through questioning or observation. Through demographic segmentation, consumers might
 seek benefit such as focusing on specific age group or for different services for students and
professionals.
2. Geographic- Geographic segmentation is the simplest type of market segmentation. It
categorizes customers based on geographic borders. Geographic segmentation can refer to a
defined geographic boundary (such as a city or ZIP code) or type of area (such as the size of
city or type of climate). So consumers living in remote areas may seek for better network,
hence geographic segmentation is required to focus on this group.
3. Behavioral Segmentation- Behavioral segmentation focuses on how the customer acts. It
requires to know about customer’s actions. These activities may relate to how a customer
interacts with the brand or to other activities that happen away from the brand.
4. Usage Rate Segmentation- Usage rate segmentation reflects the differences among heavy,
medium, and light users, and nonusers of a specific product, service, or brand.

Q12. What is umbrella positioning? Illustrate its pros and cons with the help of an
example.

A. Umbrella positioning refers to the practice of bringing an entire line of products under one
brand for marketing and messaging purposes. The approach emphasizes the brand and employs
uniform visual elements and a single brand message, such as Apple’s branding on innovation and
minimalist design. In some cases, such as General Electric, every product a company produces
falls under the umbrella brand regardless of its relationship to other products.

Advantages:

 Economical Strategy- The biggest advantage of umbrella strategy is that as far as company is
concerned it is very economical for the company to market its products because when
company has one brand but many products under that brand than company has to spend
money on marketing of only one brand and not multiple products which is the case when
company uses different brand for different products.
 Easier Management- Another benefit of umbrella branding is that since many products are
marketed under one brand it is very easy for the company to manage. Hence for example, if
 the company has 10 brands instead of 1 brand than the company will have to spend time,
resources and money to manage all the brands and when the company is managing 10 brands
chances of mismanagement is more because the attention of company is divided between 10
brands.
 New Products Get Instant Recognition- When a company has an established brand than new
product launches by the company get instant recognition from the customers because when
the company launches a product under new brand than product will take its own time in
establishing itself as a brand in the minds of the people. In simple words as far as new
product is concerned umbrella branding proves to be more beneficial than another form of
marketing.

Disadvantages:

 Spillover Risk- The biggest disadvantage of umbrella branding is that chances of

spillover risk of one product on other products are more in this strategy. Hence for
example suppose a company is selling soaps, deodorants, shampoo, and other products
under one brand and suppose the company’s soaps are not that good then customers who
use company soap will not buy the company’s other products also because it is human
nature that once we have a bad experience with one thing than we tend to avoid all things
associated with that thing.
 All Products get Equal Weight- Another problem with this strategy is that all products get
equal weight which in a way is an injustice to those products which are better than other
products within the umbrella brand. Hence for example suppose there are 10 students in a
class while 3 students score 90 percent in the exam while other students score only 50
percent and if school sees overall percentage of the class then it will be lower which will
be injustice to those 3 students who have scored 90 percent in examination, similar is the
case with umbrella branding where good as well as bad products get equal weight in
branding.
 No Diversification- If company has 5 products and company has different brand for
different product than company in a way is diversified because if one brand fails than
another brand will make sure that company does not suffer loss but in case of umbrella
 branding since there is only one brand and if that brand fails than the existence of the
company will be in jeopardy. In simple words, due to the company selling all products
under one brand there is no diversification and hence can prove to be a risky strategy as
far as the company is concerned.

Q14. What is the relationship between benefit segmentation and positioning?

A. Benefit segmentation is an effective strategic approach for cluttering the market, which would
reduce the threat of new competitive products, as there are less obvious product gaps. This is
especially true if the product/brand becomes well-known by consumers for providing that
specific benefit.

Positioning is the process by which a company creates a distinct image and identity for its
products, services, or brands in consumers’ minds. The image and unique identity are called a
“position.” The position, which is intangible and exists only in the consumer’s mind, represents
how marketers want consumers to perceive products and brands. The result of effective
positioning is a unique perception of the product in consumers’ minds relative to competing
offerings. Most new products fail because consumers perceive them as “me-too” offers that do
not provide any advantages or unique benefits over competitive products because they are not
positioned effectively.

The result of effective positioning is a unique perception of the product in consumers' minds
relative to competing offerings. If that unique position is based on an ability to deliver benefits
sought in a superior way, the product is likely to have greater success.

Q15. Why do marketers have to reposition their brands? Illustrate with examples.

A. Repositioning enables companies to change the way customers associate with their brands and
products. It provides a revised brand promise and sometimes even personality. If developed
effectively and implemented successfully, the result is a renewed customer perception by helping
brands to compete more effectively through distinction.
1. Sales are declining – This is one of the top reasons Marlboro decided to reposition the brand
in the early 1950s. If the sales are dropping, it’s important to take a step back and figure out
why this is happening. It could be that the brand needs to be refreshed.
2. The target audience is no longer the best target – Marlboro had been targeting women from
the 1920s to the early 1950s, but when they saw that women weren’t the most profitable
target, they made the switch and went after the manliest of men. It was a total 180, but it
worked wonders.
3. The products and services have evolved significantly – Over time, companies change. New
products are being added, refined old products, expand the business, and so on. This helps to
stay relevant, fresh. But after adding and changing the offerings up over a long stretch of
time, it’s very likely that the branding strategy that was started with no longer reflects what
the brand really is. It’s out of sync, and it needs to be changed.
4. New competitors have a better value proposition – Rest assured, the competition will
eventually render the initial position ineffectual. They’ll either do this by making it seem
ordinary over time, or new competitors will flat out blow the position out of the water with
something way better. In that case, it’s keep up or get left behind.
5. Customers think you’re outdated instead of established – There is something to be said for
being an established brand that customers can trust. But just because the brand is old doesn’t
mean it’s good. Customers may see them as outdated, out of touch, and irrelevant.

Q16. How might retailers reevaluate the segmentation base of social class during a
recession? What kinds of tactics might they use, and how might this help the customer and
the retailer?

A. Social class is a hierarchy in which individuals in the same class generally have the same
degree of status, whereas members of other classes have either higher or lower status. Studies
have shown that consumers in different social classes vary in terms of values, product
preferences, and buying habits. Looking at the other aspect of recessionary times, during the
financial crisis very affluent people avoided being seen leaving expensive stores and carrying
shopping bags bearing the stores’ logos. After the financial markets recovered, the same
consumers resumed buying extraordinarily expensive products.
During downturns, marketers must balance efforts to pare costs and shore up short-term sales
against investments in long-term brand health. Streamlining product portfolios, improving
affordability, and bolstering trust are three effective ways of meeting these goals.

 Streamline product portfolios- In the comparatively mild recession of 2001, marketers were
able to get by with temporary, minor adjustments to production quantities and avoid wholesale
revisions of prices or product lines. In a deeper recession, marketers can benefit by cleaning up
their product lines and so should seize the initiative early rather than waiting to be forced into
making changes.
 Improve affordability- Slam-on-the-brakes and pained-but-patient customers in particular will
be shopping around for the best deals. All businesses will increasingly compete on price.
 Bolster trust- Worried consumers, even in the comfortably well-off and live-for-today
segments—see familiar, trusted brands and products as a safe and comforting choice in trying
times. Reassuring messages that reinforce an emotional connection with the brand and
demonstrate empathy (for example, by conveying a sense that “we’re going to get through this
together”) are vital.

Q17. Describe the relationship between behavioral targeting and predictive analytics.

A. Behavioral targeting is a technique used in online advertising and publishing, where data from
visitor browsing habits (e.g., search terms, sites visited, and purchases) is used to display
relevant ads and offers and improve campaign effectiveness.

Behavioral targeting allows advertisers and publishers to target customers based on their
behaviors across different websites. For example, if someone browses a certain website for
cooking knives without making a purchase, the site’s advertising network can show this visitor
more ads for knives on other websites, increasing the eventual likelihood of a purchase.

Predictive analytics uses historical data to predict future events. Typically, historical data is used
to build a mathematical model that captures important trends. That predictive model is then used
on current data to predict what will happen next, or to suggest actions to take for optimal
outcomes. With predictive analytics algorithms, visitors are targeted with very specific content.
Unique profiles based on individual data are created by complex mathematical algorithms that
monitor a visitor’s behavior, and then deliver relevant content and ads to that visitor. These
systems have the ability to mine data across sites and in some cases across networks, predicting
what the individual visitor is interested in with near pin point precision. For content rich sites, a
well-built predictive analytics solution is detrimental.