marketing strategies

Question 1

What is market segmentation?

Answer 1

Occurs when the total market is subdivided into groups of people who share one or more characteristics.

Question 2

What are the four main types of market segmentation?

Answer 2

• Demographic
• Geographic
• Psychographic
• Behavioural

Question 3

What does demographic segmentation consider?

Answer 3

Particular features of a population including size, age, sex, income, gender, and family size.

Question 4

What is geographic segmentation?

Answer 4

Dividing total market according to geography.

Question 5

What is psychographic segmentation?

Answer 5

Dividing total market according to personality characteristics, motives, opinions, socioeconomic groups, and lifestyles.

Question 6

What does behavioural segmentation focus on?

Answer 6

Customer’s relationship with the product, such as knowledge of, attitude towards, and benefits from the product.

Question 7

What is product/service differentiation?

Answer 7

Developing and promoting differences between products and services of competitors.

Question 8

List four main ways to distinguish products from competitors.

Answer 8

• Customer service
• Environmental concerns
• Convenience
• Social and ethical issues

Question 9

What is positioning in marketing?

Answer 9

Creating an image or identity for a product compared to the image of competitors.

Question 10

What are the three types of products?

Answer 10

• Core product
• Actual product
• Augmented product

Question 11

Define branding.

Answer 11

Name, term, symbol, design or combination of those that identifies a product and distinguishes it from competitors.

Question 12

What is a trademark?

Answer 12

Signifies that the brand name or symbol is registered and that the business has exclusive right of use.

Question 13

List benefits of branding for consumers.

Answer 13

• Identifies the products they like
• Reduces perceived risk
• Psychological reward from status goods
• Encourages customer loyalty
• Easier to introduce new products

Question 14

What is a manufacturer or national brand?

Answer 14

Brands owned by the manufacturer that are recognized across the country.

Question 15

What distinguishes a private or house brand?

Answer 15

Brands owned by a retailer or wholesaler, usually cheaper due to lower purchasing costs.

Question 16

Define generic brand.

Answer 16

Products with no brand name.

Question 17

What is packaging in marketing?

Answer 17

The way in which a product is presented, including the development of container and graphic design.

Question 18

What are the main benefits of packaging?

Answer 18

• Preserving product
• Protecting product from damage
• Attracting customer attention
• Assisting with display
• Making transportation and storage easier

Question 19

What is labeling?

Answer 19

The presentation of information on a product or its package.

Question 20

What are the three pricing methods?

Answer 20

• Cost-based pricing
• Market-based pricing
• Competition-based pricing

Question 21

What is cost-based pricing?

Answer 21

Adds a standard mark-up to the cost of production.

Question 22

Define market-based pricing.

Answer 22

Sets price according to supply and demand.

Question 23

What is competition-based pricing?

Answer 23

Determining price based on prices set by competitors.

Question 24

What is price skimming?

Answer 24

Charging the highest price possible for innovative products early in the introduction of the life cycle.

Question 25

What is price penetration?

Answer 25

Charging the lowest possible price to achieve a large market share in a short term.

Question 26

Define loss leaders.

Answer 26

Products sold below cost price to attract customers.

Question 27

What are price points?

Answer 27

Selling products only at a predetermined price.

Question 28

What is the perceived price-quality relationship?

Answer 28

Helps determine the image customers have for products.

Question 29

What is the promotion mix?

Answer 29

Various promotion methods a business uses in its promotional campaign.

Question 30

List elements of the promotion mix.

Answer 30

* Advertising * Personal selling * Relationship marketing * Sales promotions * Publicity and public relations

Question 31

What is advertising?

Answer 31

Paid non-personal message communicated through a mass medium.

Question 32

Define personal selling.

Answer 32

Activities of a sales representative directed to a customer in attempt to make a sale.

Question 33

What is relationship marketing?

Answer 33

Development of long-term, cost-effective relationships with individual customers.

Question 34

What is publicity?

Answer 34

Free news story about a business’ products to highlight favorable features.

Question 35

What is public relations?

Answer 35

Activities aimed at creating and maintaining favorable relations between a business and its customers.

Question 36

Define distribution.

Answer 36

Activities that make the products available to customers when and where they want to purchase.

Question 37

What are distribution channels?

Answer 37

Routes taken to get the product from the factory to the market.

Question 38

What is a direct channel in distribution?

Answer 38

Producer distributes directly to consumer.

Question 39

What is an indirect channel in distribution?

Answer 39

Producer uses intermediaries to serve the market.

Question 40

What is intensive distribution?

Answer 40

Making products available in every possible outlet.

Question 41

What is selective distribution?

Answer 41

Using only a moderate proportion of all possible outlets.

Question 42

What is exclusive distribution?

Answer 42

Using only one retail outlet for products in a large geographic area.

Question 43

What are physical distribution issues?

Answer 43

Activities concerned with the efficient movement of products from producer to consumer.

Question 44

What is transport in physical distribution?

Answer 44

Transportation method depends on type of product and level of service.

Question 45

Define warehousing.

Answer 45

Activities involved with receiving, storing, and dispatching goods.

Question 46

What is inventory cost?

Answer 46

System that maintains quantities and varieties of products.

Question 47

What is the importance of people in marketing?

Answer 47

Quality of interaction between the customer and business staff.

Question 48

What are processes in marketing?

Answer 48

Flow of activities that a business follows in service delivery.

Question 49

Define physical evidence in marketing.

Answer 49

Environment in which the service is delivered.

Question 50

What is e-marketing?

Answer 50

Use of the internet to perform marketing activities.

Question 51

What is global branding?

Answer 51

Worldwide use of a name, term, symbol, or logo to identify a seller.

Question 52

What is standardization in global marketing?

Answer 52

Assumes that the way the product is used and the needs it satisfies are the same all over the world.

Question 53

What is customization in global marketing?

Answer 53

Assumes that the way the product is used and the needs it satisfies are different between countries.

Question 54

What is global pricing?

Answer 54

How businesses coordinate their pricing policies across different countries.

Question 55

What is competitive positioning?

Answer 55

How a business will differentiate its products to ensure higher quality compared to competitors.