Exam 2 Flashcards
(140 cards)
1
Q
Functional Brands
A
satisfy functional needs, example: wash clothes, relieve pain
differentiate from other brands by offering superior performance or superior economy.
• Connect with consumers by helping them achieve basic goals related to physical needs, such as food, shelter, health, safety
Relatively low involvement
2
Q
What are consumer products?
A
A product purchased by the final consumers for personal consumption
3
Q
Birkenstock, a German footwear company, manufactures and sells a variety of sandals and shoes noted for their footbed. All of the products offered by Birkenstock represent the company's: Product item Product line Product life cycle Product mix Agumented product
A
Product Mix
4
Q
What are convenience products
A
Relatively inexpensive
5
Q
Functional Brands
A
satisfy functional needs, example: wash clothes, relieve pain
differentiate from other brands by offering superior performance or superior economy.
• Connect with consumers by helping them achieve basic goals related to physical needs, such as food, shelter, health, safety
6
Q
One of the challenges for department stores like Nordstrom is the potential for service variability—services depend on who provides them and when and where they are provided.
The marketing solutions for variability are:
Training and standardized processes
Demand estimation and hiring ahead of demand
Physical evidence and quality
Tangible cues and tangible evidence
Augmented services
A
Training and standardized processes
7
Q
First moment of truth
A
3-7 seconds when the shopper notices an item on a store shelf
8
Q
Perceptual maps show the judgments customers make regarding the performance of a brand’s features and benefits. Gap analysis extends the perceptual maps method by asking customers to make judgments regarding:
- Cultural differences among consumers
- The importance of a brand’s featurers and benefits to the buying decision
- Psychological differences among consumers
- The performance of competitive brands
- The performance of external forces in the environment
A
The importance of a brand’s featurers and benefits to the buying decision
9
Q
Social media marketing may be more effective than traditional marketing communications channels because social media:
A) Offers greater flexibility of content and duration
B) Has credibility similar to word-of-mouth
C) Can build awareness and interest at a much lower cost
D) Both A and B
E) All of the above
A
E) All of the above
9
Q
Which element of the marketing mix has the most profound influence on price? A. Product B. Promotion C. Place D. Presentation E. People
A
C. Place
10
Q
Nestle promotes Kit Kat chocolate treat to the final consumers with the expectation that the final consumers will demand the product from retail stores. Then the retail stores will request Kit Kat from Nestle. This is an example of: Push strategy Pull strategy Physical strategy Preventive strategy Progressive strategy
A
Pull strategy
12
Q
Advertising effectiveness is measured by:
a. The amount of humor and the level of entertainment
b. Brand legacy
c. Recall (remember the ad and the advertiser) and persuasion (remember the benefit)
e. Media buying
f. Push versus pull promotions
A
Recall (remember the ad and the advertiser) and persuasion (remember the benefit)
13
Q
Which sales promotion method is best for building brand loyalty?
a. Value-added promotions
b. Price promotions
c. Trade promotions
d. Coupons
e. Interactive promotions
A
Value-added promotions
14
Q
What is the key driver in engaging and converting potential customers using social media? Multiple media Relevant content Google AdWords Product blogs Short, precise messages
A
Relevant content
15
Q
Facebook, Twitter, YouTube, product blogs, and Google AdWords all play different roles in achieving marketing objectives. For example, \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is better for generating awareness and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is better for making direct sales. Facebook, Google AdWords Google AdWords, Twitter YouTube, Twitter Product blogs, Facebook Google AdWords, YouTube
A
Facebook, Google AdWords
16
Q
Three objectives of advertising
A
Cognitive - build awareness
Affective - gain interest, liking
Behavioral - stimulate action
AIDA Model - attention, interest, desire, action
17
Q
Social media services created a new vocabulary such as cost-per-click (CPC), click-through-rate, and cost-per-action (CPA). Because ads must generate enough interest to get a click and clicks must generate an action leading to a sale, the critical number is: CPM--cost per thousand impressions CPC--cost per click CPA--cost per action CPGW--cost per gross weight CCC--cost, cohort, connection
A
CPA–cost per action
18
Q
A creative brief consists of:
A
Creative brief used to communicate advertising strategy to advertising agencies
- Brand legacy: Background information. Why are we communicating?
- Copy strategy: What is one thing we want to communicate to target audience? Main pain point? Key benefit? Reason to believe?
- Executional considerations - objective (cognitive, affect, behavioral), execution tone and style
- Key customer groups - who are they? Where are they?
- Key competitors - who are they?
19
Q
Advertising effectiveness is measured by:
The amount of humor and the level of entertainment
Brand legacy
Recall (remember the ad and the advertiser) and persuasion (remember the benefit)
Media buying
Push versus pull promotions
A
Recall (remember the ad and the advertiser) and persuasion (remember the benefit)
20
Q
Which sales promotion method is best for building brand loyalty? Value-added promotions Price promotions Trade promotions Coupons Interactive promotions
A
Value-added promotions
21
Q
Market segmentation is the process of grouping customers into relatively homogeneous sets or segments such that customers within a segment are similar to one another in:
- Age and psychographics
- Family and cultural situations
- Their frequency of purchase
- Geographic location
- The way they respond to the marketing effort directed torward them
A
The way they respond to the marketing effort directed torward them
22
Q
Sociologist Everett Rogers created five categories of product adopters based on time to adopt new products and services. What name (and percent of population) did Rogers use to classify adopters who are the first to try new ideas, usually have more money and education than the general population, as well as a higher-than-average tolerance for risk? Innovators (2.5%) Early adopters (13.5%) Early majority (34%) Late majority (34%) Laggards (16%)
A
Innovators (2.5%)
23
Q
Determinants of salesperson performance
A
Aptitude - native abilities and enduring personal traits relevant to job performance
Personal characteristics - physical traits, family background, education, work and sales exp.
SKILL LEVEL - learned proficiencies at performing job activities
Role perceptions - perceptions of job demands and the expectations of role partners
Motivation - desire to expand effort on specific job activities
Organizational/environmental factors - territory potential, company’s competitive strength
24
Q
Considering a product’s competitive angle, _______________ is about finding significant pain points that are personally relevant to the target audience while _______________ is about demonstrating product-solving benefits.
Need to Believe, Reason to Believe
Reason to Believe, Dominate Situations
Dominate Situations, Quantifiable Support
Quantifiable Support, Unique Product Claim
Unique Product Claim, Need to Believe
A
Need to Believe, Reason to Believe
25
Southwest Airlines faces the service challenge of perishability because the airline cannot save seats from an empty afternoon flight for a full flight in the evening. To overcome this service challenge, Southwest:
Buys more airplanes from Boeing and Airbus
Attempts to manage fluctuating demand or seeks to match supply with changing demand
Provides more training for frontline employees
Hires "Fox" employees to handle problems quickly
Changes the physical environment of the airport gate to provide tangible cues
Attempts to manage fluctuating demand or seeks to match supply with changing demand
26
The marketing mix for services includes the 4P's of marketing (product, price, place, and promotion), plus:
Processes, physical environments, and potential customers
People, perishability, and personality
Political environment, physical environment, and personal environment
People, process, and physical environment
People, politics, and psychology
People, process, and physical environment
27
Compared to product marketing, services marketing poses unique challenges for marketing managers because unlike products, services are:
Intangible, insparable, variable, and perishable
Difficult to price
Unique and engaging
Part of the human resources function of the firm
Both high and low involvement
Intangible, insparable, variable, and perishable
28
Which determinant of service quality shows the strongest influence on customers' perceptions of service quality?
```
Reliability
Assurance
Tangibles
Empathy
Responsiveness
```
Reliability
29
Why dosen't "me too" positioning work as a value positioning strategy?
- The positioning approach does not give consumers a reason to change
- Competitors are just too difficult to copy
- Competitors may have lower cost structures
- Imitation is the sincerest form of flattery
- Customers want consistency among competitors
The positioning approach does not give consumers a reason to change
30
With cost-plus pricing, the firm knows its costs, but not much about customers and competitors. So marketing managers simply add a margin to the cost of the product to determine price. The added amount is generally the margin needed to make the return demanded by upper management or investors. The trouble with cost-plus pricing is that:
A. Competitors may copy the price
B. Product costs are irrelevant to buyers
C. Substitute products may have the same price
D. Promotion strategies may alter the outcome
E. The break-even volume is difficult to calculate
B. Product costs are irrelevant to buyers
31
Product positioning is:
- A careful analysis of cross tabulations
- Shelf size and location in major retail chains--grocery and department stores
- Geographic segmentation, often within major metropolitan and suburban areas
- The place a product occupies in the target customers' minds
- What marketers do to a product
The place a product occupies in the target customers' minds
32
The range of possible prices, where sellers have incentive to sell and buyers have incentive to purchase, is:
A. The average of all reference prices, competitor prices, and substitute prices
B. Based on marketing efforts minus reference and competitor prices
C. Where demand equals profit
D. Above the buyer's perceived value and bellow the seller's cost of goods sold
E. Above the seller's cost of goods sold and below the buyer's perceived value
E. Above the Seller's cost of goods sold and below the buyer's perceived value
33
Reference price is an important concept in pricing strategy. ______________ is what everyone else is paying for the product and _______________ is what you think you should pay, given your past experience and the buying situation.
A. Internal reference price; external reference price
B. External reference price; internal reference price
C. Referral reference price; accepted reference price
D. High reference price; low reference price
E. Personal reference price; relevant range reference price
B. External reference price; internal reference price
34
```
Which pricing strategy is used when marketers set a relatively high price to obtain high margins at the expense of sales quantity, then lower the price over time?
Price skimming
Price penetration
Promotional pricing
Cost-plus pricing
Competitive pricing
```
Price Skimming
35
Channel members (intermediaries) make the selling of products more efficient by:
a. Maximizing the number of contacts necessary between producers and consumers
b. Identifying target markets
c. Reducing manufacturing costs
d. Reducing the number of contacts between producers and consumers
e. Eliminating inventory costs
Reducing the number of contacts between producers and consumers
36
Candy bars such as "Snickers" are best sold using which type of distribution?
a. Intensive distribution
b. Selective distribution
c. Exclusive distribution
d. Dual distribution
e. Minimized distribution
intensive distribution
37
Cabela’s consciously designs retail space to orchestrate various dimension of the store—layout, color, sounds, and signage—to appeal to consumers’ emotions and encourage buying. This is called:
a. Atmospherics
b. Wheel of retailing
c. Location, location, location
d. Retail control
e. Sales promotion
Atmospherics
38
Second moment of truth
- when consumers use the product
| - every usage experience is a change to delight customers
39
Retail positioning (product line breadth and line depth)
Product assortment: the breadth and depth of the product line
- product line breadth: number of different product lines
- product line depth: number of products within a line
40
Why do companies promote?
Companies promote to communicate value to their chosen customers
- increase demand (shift to the right) - more ppl want the product
- make demand more inelastic - consumers become less price sensitive
41
Promotion mix importance
Consumer goods
- Advertising
- Sales promotion
- Personal selling
- Direct marketing
- public relations
Business goods
- Personal selling
- Sales promotion
- Direct marketing
- Advertising
- Public relations
42
Push vs. pull strategy
Push:
Producer - Intermediaries - end users
Pull:
Producer - end users - intermediaries
43
Advertising
Paid placement of announcements and persuasive messages to inform, gain liking/interest, and/or stimulate action
44
Three objectives of advertising
Cognitive - build awareness
Affective - gain interest, liking
Behavioral - stimulate action
AIDA Model - attention, interest, desire, action
45
What is the question we are asking when we consider segmentation?
Who could we exchange with?
46
What is market segmentation?
The process of grouping customers into relatively
homogeneous sets such that customers within a
segment are similar to one another in the way they
respond to the marketing effort directed at them.
47
What is the criteria for effective segmentation?
Measurable-Individuals can be assigned to a segment and counted.
Accessible-Individuals in the segment can be reached through the company’s promotion/distribution channels.
Durable-Segment membership is relatively constant.
Substantial-Segment is large enough to make products profitable.
Unique Needs-Needs are homogeneous within segments and heterogeneous across segments.
48
What are the different ways to segment in order from most used to most useful?
Geographic, Demographic, Psychographic, Behavioral
49
Procter & Gamble (makers of Crest and Covergirl) focuses on winning the first moment-of-truth in retail stores, that is, the first three to seven seconds it takes shoppers to make up their minds which product to take from the retailer’s shelf. To do this, P&G marketing managers focus on:
a. CPM--cost per thousand impressions
b. Discount stores
c. Big box stores
d. Intensive distribution
e. In-store advertising and packaging
In-store advertising and packaging
50
```
Channel members can affect customer value by:
Reducing non-price costs
a. Improving image
b. Delivering service
c. Enhancing the product
d. All of the above
e. None of the above
```
All of the above
51
```
Apple’s stores are clean, offer multiple displays, and there are a multitude of helpful employees available. These attributes are examples of.
Presentation and Personnel
Promotion and Presentation
Price and Promotion
Price and Personnel
Promotion and Personnel
```
Presentation and Personnel
52
What are the two important points in the Person by Situation Segmentation Matrix?
1. People are not all the same--person variability
| 2. People make choices depending on the situation--situation variability
53
Judging good ads from bad ads
Three rules:
| product obvious, advertiser obvious, benefit obvious
54
A creative brief consists of:
Creative brief used to communicate advertising strategy to advertising agencies
1. Brand legacy: Background information. Why are we communicating?
2. Copy strategy: What is one thing we want to communicate to target audience? Main pain point? Key benefit? Reason to believe?
3. Executional considerations - objective (cognitive, affect, behavioral), execution tone and style
4. Key customer groups - who are they? Where are they?
5. Key competitors - who are they?
55
```
Professor Swenson just published a new book, “Guest Speaker Etiquette.” He plans to sell this book through Barnes and Noble. This is an example of
Direct to Consumer Strategy
Push and Pull Strategy
Mixed Marketing Strategy
Indirect Intermediary Strategy
Manufacturer Strategy
```
Indirect Intermediary Strategy
56
Nestle promotes Kit Kat chocolate treat to the final consumers with the expectation that the final consumers will demand the product from retail stores. Then the retail stores will request Kit Kat from Nestle. This is an example of:
a. Push strategy
b. Pull strategy
c. Physical strategy
d. Preventive strategy
e. Progressive strategy
Pull strategy
57
```
Media convergence shows an ad becoming viral at the intersection of…?
SEO, AdWords and Social Media
Owned, Purchased and Earned Media
Facebook, Twitter and YouTube
Branded, Engaged, Converted Media
```
Owned, Purchased, and Earned Media
58
```
Which of the following is not a common metric relevant to Paid Search?
Cost-per-click (CPC)
Cost-per-action (CPA)
Clicks-per-email (CPE)
Cost-per-thousand (CPM)
Click-through-rate (CTR)
```
Clicks Per Email (CPE)
59
Products that are more expensive than convenience product, requiring more shopping effort.
Shopping products
60
Specialty products
Extensive search effort; consumer reluctant to accept substitute
61
Unsought Products
Products that the buyer does not actively seek
62
Product Item
A specific version of a product
63
Product Line
A group of closely related product items
64
Product Mix
All products an organization sells
65
What part of the product life cycle gains awareness and promotes to inform and encourage trial
Introduction
66
What happens during the growth stage of the product life cycle?
Maximize market share, add features and improves quality, and add channels and markets
67
You maximize profit and modify market and marketing mix during what stage of the product life cycle?
Maturity
68
What happens during the decline stage of the Product Life Cycle?
Reduce expenditures, milk the brand, maintain, harvest, or drop
69
Five Dimensions of an Angle
1. Need to believe
2. Reason to Believe
3. Blows-Away Expectations
4. Quantifiable Support
5. Unique Product Claim
70
In the New Product Development Process, in which stage does it break down most often?
Concept Testing
71
Market Testing
Place the product in several test markets
72
Define Brand
A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers
73
4 steps of developing brand equity
1. Brand Awareness- consumers know about the brand
2. Brand Image- Consumers have a definite impression about the brand
3. Brand Loyalty- Consumers purchase only their favored brand
4. Brand Equity- Brand loyalty is transferred to new products
74
Three levels of a product
1. Core product
2. Actual product
3. Augmented Product
75
Direct Marketing
Promotional element that uses direct communication with consumers to generate a response in the form of an order, request for information, or visit to a retail outlet or website.
76
Fixed Costs
Costs that do not vary with output.
77
Variable Costs
Those costs that vary with output level
78
Suppose the manufacturer plans to sell the hammer for $7.50.
Variable costs: $4 per unit
Fixed costs: $85,000
Industry volume: 172,000
How many units must be sold to break even (BEV)?
What is market share?
BEV: 85,000/3.50 = 24,286
MARKET SHARE: 24,286 / 172,000 = 14%
79
External reference price
What everyone else is paying for the product.
80
Internal reference price
What you think you should pay given your past experience and the buying situation.
81
Price is determined by
what the consumer is willing to pay
82
Survival price setting
Price that covers all variable costs
83
Skimming Pricing
Selling at a high price before reducing to next price level and repeat.
84
Penetration Pricing
Whole Market price (Same price for the whole market).
85
Cost-plus pricing
Add a specific amount to the cost
86
Target return pricing
profit, sales, ROI
87
Skimming pricing
High price to “skim” the market
88
Penetration pricing
low price to “penetrate” the market
89
Prestige pricing
high price to signal quality, status
90
Price lining
Different prices for different products in a product line
91
Odd-even pricing
$19.99
92
Bundle pricing
two or more products in a single package
93
Yield management
match demand and supply for set capacity
94
Going rate pricing
follow the competition
95
Perceived value pricing
What the customer is willing to pay
96
How does Facebook market online? (Promotion objective)
Cognitive--Generate awareness
97
How does Google market online? (Promotion objective)
Behavioral--Making direct sales
98
Rather than asking yourself, “How do I optimize my website to better rank with search engines?” ask
“How can I optimize my brand so that it’s a sought-after participant in relevant conversations?”
99
```
Which of the following is a method internet marketers use to reach customers?
A. Affiliates
B. Email
C. Paid Search
D. Both B and C
E. All of the above
```
E. All of the above
100
Media Buying (reach and frequency)
Reach - the number of different people or households exposed to an advertisement
Frequency - the average number of times a person in the target audience is exposed to an advertisement
GRP (gross rating points) -
Reach (percentage of the total market) X frequency
TRP (target rating points)
CPM (cost per thousand impressions) - cost of reaching 1,000 individuals or households
101
Sales promotion
Short-term incentives to encourage trial or increase purchase
-coupons, rebates, samples, contests, premiums, price packs
102
Personal selling
Two-way communication btwn a buyer and seller designed to influence a purchase decision
103
Determinants of salesperson performance
Aptitude - native abilities and enduring personal traits relevant to job performance
Personal characteristics - physical traits, family background, education, work and sales exp.
SKILL LEVEL - learned proficiencies at performing job activities
Role perceptions - perceptions of job demands and the expectations of role partners
Motivation - desire to expand effort on specific job activities
Organizational/environmental factors - territory potential, company's competitive strength
104
Image Brands
* Image brands create value by projecting a distinct and admired image
* Differentiate from competitors by offering a unique set of associations or images
• Connect with consumers through emotional images, symbols, and associations
Moderate to high involvement
105
Experiential Brands
* on what the product represents, experiential brands focus on how consumers feel when interacting with the brand
* Products, environments, and services are combined to create temporary multisensory encounters with the brand
• Connect with consumers through experiences that are co-created by the brand and the consumer at the time of consumption
Moderate to high involvement
106
Public relations
Placement of news or media presentations with the deliberate attempt to manage the public's perception
107
Of the three generic segments, which one do we sell to and how?
Sell to the swing group through the eyes of the love group
108
What is the objective of selecting segments?
The objective is to select segments...that maximize profits.
109
What is the question we ask when targeting?
Who should we exchange with?
110
What is the question we ask when positioning?
How do we position the product in the customer’s mind?
111
What are the ways to position from most used to most useful?
1. How you are just as good as the competition
2. How you beat all the competition
3. How you are loved by popular people
4. How you fit consumers’ lifestyles
5. How you deliver what is most valued
112
What is perceptual mapping?
Brands located close together are in direct competition and brands closest to your ideal brand probably get your business.
113
```
The Lego Group recently mailed out thousands of brochures directly to customer’s inviting them to go online and order the new Professor Swenson Lego Kit based off his best-selling book “Guest Speaker Etiquette.” The Lego Group is utilizing which aspect of the promotion mix?
A. Advertising
B. Direct Selling
C. Sales Promotion
D. Direct Marketing
E. Public Relations
```
D. Direct Marketing
114
Points of Parity (POPs)
* Negate competitor points-of-difference
| * Demonstrate category credentials
115
```
Marty McFly Inc. sells hoverboards to the general population. Recently a news channel picked up the story saying how much better the hoverboards are than regular skateboards. This free promotion would be be represented as?
A. Advertising
B. Direct Selling
C. Sales Promotion
D. Direct Marketing
E. Public Relations
```
E. Public Relations
116
What is generally the best strategy? (Who do you sell to?)
Sell to the swing group through the eyes of the love group
117
Sally is introducing a new product – bacon and chocolate bubble gum. She discovered a good segment: adults in the country of Bacon Land. Sally is segmenting using
Demographic and Geographic
118
Until two years ago, Walt believed that computers were just a fad and insisted on using a typewriter. Walt is an example of a(an) _________ in the diffusion process (Adoption Life Cycle).
Laggard
119
The goal(s) of a brand are to
Build Awareness
Encourage Trust
Encourage Repeat Purchases
Make an Emotional Connection
120
What is the process for developing brand equity?
Brand Awareness, Brand Image, Brand Loyalty, Brand Equity
121
Which of the following sets a service business apart from its competitors?
The service provider’s personal behavior
122
Sven received very negative feedback from his manager, at the Blue Line Deli, in front of co-workers and customers for his low productivity and low quality of service. Though the experience was hurtful, he felt he deserved the critical feedback. Sven needed a job to help him get through school and decided he should continue working at the Blue Line Deli instead of quitting. Sven is an example of which type of frontline service employees?
Kitten
123
The five determinants of service quality are:
(RATER) Reliability, Assurance, Tangibles, Empathy, Responsiveness
124
Don has a burger restaurant, his fixed costs are $85,000, variable unit costs are $4, and he is selling his burgers for $9.00. How many units does Don have to sell to breakeven?
17,000
125
HP sells its brand new laptop to Costco for $550 and Costco resells the laptop at $1,000. What is the percent margin on the laptop for Costco?
45%
126
```
Deborah is the brand manager for a new product that is priced for the whole market. Deborah is using a _____ pricing method.
A. Bundling
B. Penetration
C. Cost Plus
D. Skimming
```
B. Penetration
127
Points of difference (Pods)
* Desirable to consumer
* Deliverable by the brand
* Differentiating from competitors
128
Points of Parity (POPs)
* Negate competitor points-of-difference
| * Demonstrate category credentials
129
Intangible Products
Marketing Problem=
Services cannot easily be displayed or communicated
Marketing Solution=
Tangible Cues
130
Inseparable Products
Marketing Problem=Consumer and provider are part of the service
Marketing Solution=
Care and quality, personal attention, Training
131
Variability Products
Marketing Problem= Services depend on who provides them and when and where they are provided
Marketing Solution=Standardization, Training
132
Perishable Products
Marketing Problem=Services cannot be stored
| Marketing Solution=Predict demand fluctuation, balance supply and demand
133
Time Utility
making the product available at a convenient time
134
Place utility
making the product available at a convenient place
135
Form Utility
making the product in the form consumers want
136
Intensive Distribution
Maximum market coverage--firm seeks to make the product available in every outlet where customers might want to buy it.
Convenience goods
137
Exclusive Distribution
A level of distribution intensity whereby only one retail outlet in a specific geographical area carries the firm’s products.
Specialty goods
138
Selective Distribution
A level of distribution intensity whereby a firm selects a few retail outlets in a specific geographical area.
Shopping and specialty goods
139
Channel Misbehavior
A primary cause of conflict is the distribution of profits among channel members.
140
Retail Positioning: Atmospheric
Elements in the store’s design that appeal to consumers’ emotions and encourage buying.
