MARK FINAL EXAM

Question 1

Marketing Mix

Answer 1

set of decisions that the firm uses to respond to the wants of its consumers

Question 2

Products: Creating Value

Answer 2

Markets create value by developing a variety of offerings including goods, services, and ideas to satisfy customers needs

Question 3

Price: Capturing Value

Answer 3

Price is everything a buyer gives up, including money, in exchange for the product or service

Money, Time and Effort, Comfort

Question 4

Place: Delvering Value

Answer 4

Marketing processes necessary to get the product to the right customer at the right time

Question 5

Promotion: Communicating Value

Answer 5

Communication that informs, persuades, and reminds potential buyers about a product or service to influence their buying

Question 6

Strategies to create and maintain SCA

Answer 6

build value in the mind of consumer

Question 7

Customer Excellence

Answer 7

firm has strategies for retaining loyal customers and provides outstanding customer service

Question 8

Operational Excellence

Answer 8

efficient operations, excellent supply chain management and strong relationships with supplies
ex: Walmart

Question 9

Product Excellence

Answer 9

higher perceived value through effective branding and positioning ex: Apple

Question 10

Locational Excellence

Answer 10

strong physical and/or Internet presence
ex: Starbucks

Question 11

Situational Analysis (SWOT)

Answer 11

Situation analysis using SWOT framework assesses:
– Internal environment in regard to its strength and weakness

– External environment is terms of its opportunities and threats

Question 12

Strengths

Answer 12

characteristics of a business that give is advantages over its competitors

Question 13

Weakness

Answer 13

characteristics of a business that put it at a disadvantage relative to its competitors

Question 14

Opportunties

Answer 14

Elements in a company’s external environment that allow it to formulate and implement strategies to improve performance

Question 15

Threats

Answer 15

Elements in a company’s external environment that could endanger the business, its profitability or its competitive advantage(s)

Question 16

Company Capabilities

Answer 16

Successful marketing firms lean into their core competencies:
– A defining capability or advantage that distinguishes an enterprise from its competitors
– Something they are uniquely good at
These are similar to sustainable competitive advantages, but more specific to the product or offering itself

Question 17

Portfolio Analysis (BCG)

Answer 17

Classify products/services based on market share and growth rate to determine how much we should invest in them

Question 18

Stars

Answer 18

high growth, high market share
ex: Apple Watch

Heavy resource investment in promotions and new production facilities to fuel their rapid growth

Question 19

Cash Cows

Answer 19

low growth, high market share
ex: Ipad

Already received heavy investments to develop market share
Have excess resources that can be spun off to those products that need it more

Question 20

Question Marks

Answer 20

high growth, low market share
ex: Iphone

Most resource intensive
Most managerially intensive products that require significant resources to manina and/or increase market share

Question 21

Dogs

Answer 21

low growth, low market share

Should be phased out unless they need to complement another product

Question 22

Market Penetration Strategy

Answer 22

– Existing product or service in current markets
– Encourages current users to consumer more of the current product mix

leverages : coupons, loyalty programs

Question 23

Market Development Strategy

Answer 23

– Existing product or service in new markets
Target different consumers in the home market or seeking global expansion

Ex: Pedialyte expanding beyond target of parents and advertising its benefits to endurance athletes, or Starbucks opening stores in Japan

Question 24

Product Development Strategy

Answer 24

– New product or service in current markets
Involves innovative products and service offerings to meet changing needs of existing consumers

Ex: Dove’s expansion into deodorants, shampoos, and body washes

Question 25

Diversification Strategy

Answer 25

New product or service in new markets Riskiest Requires extensive research into emerging markets

Question 26

Consumer Decision Process

Answer 26

steps that consumers go through before, during, and after making purchasing decisions Need Recognition Information Search Alternative Evaluation Purchase & Consumption Post Purchase

Question 27

Need Recognition

Answer 27

Decision making process begins when consumers recognize they have an unsatisfied need, and they would like to go from their actual, needy state to a different, desired state The greater the discrepancy between these two states, the greater the need recognition will be

Question 28

Information Search

Answer 28

after a consumer recognizes a need, they search for information, both internally and externally, about the various options that exist to satisfy that need

Question 29

Factors affecting consumer search

Answer 29

Perceived benefits vs. costs Locus of control Actual or perceived risk

Question 30

Perceive benefits vs. costs

Answer 30

Worth time and effort to search for info about a product or service? High cost or long term(house) → Yes

Question 31

Locus of control

Answer 31

-- Consumers w internal locus of control believe you directly affect the outcomes in your life -- Consumers w external locus of control believe that fate or other external factors control all outcomes

Question 32

Actual or perceived risk

Answer 32

Performance Risk “This might not work how I want it” Financial risk “Can I really afford this?” Social Risk “Are people going to make fun of me” Psychological (safety)risk “Am i going to get hurt” Psychological risk (self-image) “How will I feel about myself?”

Question 33

Alternative Evaluation

Answer 33

takes place as the consumer sifts through their various options from the information search phase 2 types of criteria that consumers use (consciously or subconsciously) to choose between alternatives:

Question 34

Compensatory Decision rules

Answer 34

assume the consumer, when evaluating alternatives, weighs characteristics against each other, such that good characteristics compensate for bad

Question 35

Non-compensatory decision rules

Answer 35

​​consumers choose a product or service based on one characteristic, regardless of the values of other attributes Stop at the next gas station

Question 36

Consumer Segmentation

Answer 36

The second step is to employ a method or combination of methods to segment the market into relevant consumer groups, for example Geographic → Europe, Africa Demographic → Age, Gender, Income, Education Psychographic → Lifestyles, self-concept, self-values Benefit → convenience, economy, Behavioral → loyalty

Question 37

Secondary Data

Answer 37

-- Collected prior to the start of the research project -- Sourced both internally and externally --Gaps identified can be addressed with primary data -- Secondary data might come from free or low-cost external sources such as the Census or from reports generated by the firm such as sales reports Pro: Readily accessible Con: May not be specific or timely enough to meet the firm’s research objectives

Question 38

Primary Data

Answer 38

Collected to address specific research needs through methods such as focus groups, in-depth interviews, surveys, etc. Sample chosen to represent target customer Quantitiative and Qualitative

Question 39

Quantitative Data

Answer 39

Involves structured responses that can be statistically tested Provides information needed to confirm insights and hypotheses

Question 40

Qualitative Data

Answer 40

Uses broad, open-ended questions to understand a phenomenon More informal than quantitative research methods and includes observation, in-depth interviews, and focus group

Question 41

Product Complexity

Answer 41

Products consist of more than their physical properties or basic functionality Actual Product --> Quality, Packaging Associated Services --> warrnety

Question 42

Product Mix Decisions

Answer 42

The product mix refers to the complete set of all products and services offered by a firm and reflects the breadth and depth off the company's product lines

Question 43

Product Mix Breadth

Answer 43

to the number of product lines offered by the firm Haagen Dazs : different types of offerings like ice crea, sorbet, bars, cones

Question 44

Product Line Depth

Answer 44

to the number of products within the product line Haagen Dazs: number of different offering within a line, 39 flavors of ice cream

Question 45

Why are brands valuable to firms?

Answer 45

-- Brand equity, or value derived from the brands itself, can: -- Facilitate purchases through awareness and associations -- Establish loyalty from consumers -- Protect from price competition through perceived value -- Serve as assets to the firm -- Impact the market value of the firm

Question 46

National Brands

Answer 46

Owned and managed by manufacturers, who can maintain control over the quality of their products and brand image Majority of consumer brands in the U.S. Ex: Kraft

Question 47

Private Label Brand

Answer 47

Also known as store brands, these products developed by and sold by retailers In most cases private label products are produced by the manufacturers of national brand products Ex: Good & Gather

Question 48

Line Extension

Answer 48

a company adds new products under an existing brand name within the same product category -- Original: Coca-Cola -- Line Extensions: Diet Coke, Coke Zero Sugar, Cherry Coke, Vanilla Coke

Question 49

Brand Extension

Answer 49

New product under the brand name but in different product line (different category) Starbucks → Ready-to-Drink Beverages Starbucks partnered with PepsiCo to launch bottled Frappuccinos in grocery stores

Question 50

Spectrum of Innovation

Answer 50

Incremental --> small improvements to existing offerings line extentions Breakthrough --> significant impact in either altering or creating a market ex: new product categieis

Question 51

Diffusion of Innovation

Answer 51

refers to the process by which the use of an innovation spreads throughout a market group

Question 52

Innovators

Answer 52

2.5% -- first to adopt a new product -- willing to take a risk, young in age, high social standing

Question 53

Early Adopters

Answer 53

13.5% -- second fastest -- opinion leaders and trend setters -- younger in age, high social standing, and more finaicla resources than late adopters

Question 54

Early Majority

Answer 54

34% -- not considered opinion leaders -- average social status and close contact with early adopters

Question 55

Late Majority

Answer 55

34% -- very little opinion leadership -- social contact w member of early majority -- high degree of sketicim regarding new products

Question 56

Laggards

Answer 56

16% -- value tradition and lower levels of social status -- older in age -- last to adopt

Question 57

Services

Answer 57

is any intangible offering that involves a deed, performance, or effort that cannot be physically possessed Customer service specifically refers to human or automated activities firms perform to satisfy customer needs By providing high quality services, firms can enhance the value of existing products

Question 58

Defining Service Attributes 4 key factors that differentiate service form goods:

Answer 58

Intangible Services cannot be touched, tasted, or seen like a pure product can Inseparable After service has been performed, it can’t be returned Heterogeneous → inherent variability in the service’s quality as a result of that service being performed by humans More humans are integral to the delivery of a service, more likely there is to be heterogeneity Perishable Cannot be stored or stockpiled for use in the future

Question 59

Distributive fairness

Answer 59

refers to a customer’s perception of the benefits he or she received compared with the costs or loss This refers to the customer's perception of the outcome they receive from the recovery process. It answers the question: “Did I get what I deserve in return for the inconvenience or loss I experienced?”

Question 60

Procedural fairness

Answer 60

refers to the perceived fairness of the process used to resolve them

Question 61

Demand Curve

Answer 61

The demand curve is a visual depiction of the relationship between price and demand Demand curves assume that everything else remains unchanged (i.e., no increase in advertising expenditures)

Question 62

Plastic Elasticity of Demand

Answer 62

Measures how change in a price affect the quantity of the product demanded

Question 63

If demand is elastic, it will move with changes in price, meaning demand is

Answer 63

price sensitive

Question 64

If demand is inelastic, it does not move with changes in price, meaning demand is

Answer 64

price insensitive

Question 65

Cross Price elasticity

Answer 65

Percent change in the demand for Product A compared with the percent change in demand for Product B If Product A’s price increases, demand for Product B’s will decrease if the products are complementary and increase if the products are substitute Complementary product add value to each other Demand is positively correlated Hot dogs and hot dog buns

Question 66

Variable Costs

Answer 66

Vary based on the volume of goods or services being produced Common variable costs are labor and materials

Question 67

Fixed Costs

Answer 67

Remain at a consistent level regardless of the volume of goods or services being produced Common fixed costs are rent, utilities, and equipment

Question 68

Sender

Answer 68

origin of the message (the firm)

Question 69

Transmitter

Answer 69

Marketing department of agency partnerCh

Question 70

Channel

Answer 70

Medium transmitting the message ESPN

Question 71

Receiver

Answer 71

Consumer target who see or hears message

Question 72

Encoding (transmitter)

Answer 72

conversion of the firm’s goals and objectives into the marketing message

Question 73

AIDA: AWARENESS

Answer 73

Aided recall → consumers recognition of a brand after name is presented to them Ex: "Are you familiar with the store Publix?" Top-of-mind awareness → indicates a higher level of awareness in which a consumer mentions a specific brand of product or service before all others Ex: “ Name a grocery store” “Public”

Question 74

AIDA: Interest

Answer 74

Once the consumer is aware that the product exists, marketing communication must work to increase the consumer’s interest

Question 75

AIDA: Desire

Answer 75

After the firm has piqued the interest of its target market, the goal of subsequent messages should move the consumer from “I like it” to “I want it”

Question 76

AIDA: Action

Answer 76

Ultimate goal → drive the receiver to action Purchase is one type of potential action, but further research into the product is a common follow-up action that leads to purchase

Question 77

Informative Advertising

Answer 77

relies on facts, stats, and product features rather than emotion Used to create and build brand awareness and to push the consumer through the buying cycle to the point of purchase

Question 78

Persuasive Advertising

Answer 78

relies more on emotional appeals

Question 79

Reminder Advertising

Answer 79

used to remind consumers about a product. Rather than using informational or emotional appeals

Question 80

Product-Focused Advertisements

Answer 80

inform, persuade, or remind consumers about a product or service

Question 81

Insistutional Advertisements

Answer 81

promote a company, corporation, business, or institution Improve and enhance the public perception of a firm or organization

Question 82

Public Service Advertisements (PSAs)

Answer 82

designed to raise awareness of public welfare issues

Question 83

Informational appeals

Answer 83

more cognitive and persuade using rational throughs Helps consumers make purchase decisions by offering factual informations

Question 84

Emotional Appeals

Answer 84

persuade by triggering an emotional response rather than offering rational arguments

Question 85

Key to successful emotional appeal

Answer 85

use of emotion to create a bond between the consumer and the brand

Question 86

Sales Lift

Answer 86

refers to an incremental increase in sales during the time of the campaign

Question 87

Public Relations

Answer 87

involves managing communications and relationships to achieve various objectives such as: -- Building and maintain a positive image of the firm -- Handling unfavorable stories or events -- Maintaining positive relationships with the media