MKTG 120 Final

Question 1

What is a product?

Answer 1

A product includes goods, services, or ideas and consists of tangible and intangible attributes.

Question 2

What are the categories of products?

Answer 2

Non-durable goods: Consumed once or for a limited number of times (e.g., food).
Durable goods: Last for an extended period (e.g., appliances).
Services: Intangible activities, benefits, or satisfactions (e.g., banking).

Question 3

What the the unique elements of services?

Answer 3

Four I’s of Services:
Intangibility
Inconsistency
Inseparability
Inventory

Question 4

What is the explanation of service elements?

Answer 4

Services are intangible, inconsistent due to human involvement, inseparable from the provider, and have complex inventory issues.

Question 5

What are the levels of value in products?

Answer 5

Core, Actual, and Augmented Product

Question 6

Provide an explanation of what Core, Actual and Augmented levels are:

Answer 6

Core: Basic benefits.
Actual: Physical attributes.
Augmented: Additional features or services.

Question 7

What is a brand?

Answer 7

Name, symbol, or design uniquely identifying a product.

Question 8

What is the importance of branding?

Answer 8

Builds brand equity, associations, and consumer loyalty.

Question 9

What is brand personality and influential brands?

Answer 9

Traits, emotions, quality associated with brands.

Question 10

What are examples of influential brands?

Answer 10

Google, Amazon, YouTube, Apple, etc.

Question 11

What is the classification of brands?

Answer 11

Manufacturer’s, Private-label, Generic brands.

Question 12

What is the explanation of brand types?

Answer 12

Ownership and branding distinctions among various types of brands.

Question 13

What are the stages of a product life cycle?

Answer 13

Introduction, Growth, Maturity, Decline.

Question 14

Provide a description of each stage of the product life cycle:

Answer 14

Sales and profitability trends at different stages.

Question 15

What are marketing mix strategies?

Answer 15

Product, Pricing, Place, Promotion.

Question 16

What are the strategies to extend the life cycle?

Answer 16

Modifying product, market, or repositioning.

Question 17

What are ways to prolong product life?

Answer 17

Altering product features, targeting new markets, or changing perception.

Question 18

What equation defines a firm’s profit?

Answer 18

Profit = Total revenue – Total cost = (unit price x quantity sold) – Total costs

Question 19

What are the primary strategies under demand-oriented pricing?

Answer 19

Skimming Pricing
Penetration Pricing
Prestige Pricing
Price Lining
Odd-Even Pricing
Target Pricing
Bundle Pricing
Yield Management Pricing

Question 20

Define Pricing and its approach:

Answer 20

Setting the highest initial price for early adopters, gradually reducing to attract price-sensitive customers.

Question 21

Define penetration pricing and its purpose:

Answer 21

Setting a lower initial price to attract mass market immediately; discourages competition and builds market share.

Question 22

What is the objective of prestige pricing?

Answer 22

Setting a high price to attract status-conscious consumers; associates higher price with higher quality/status.

Question 23

Explain Odd-Even Pricing with examples:

Answer 23

Pricing products just under a round number ($399.99) for psychological effect; potential impact on demand.

Question 24

Describe Target Pricing and its methodology:

Answer 24

Estimating consumer’s willingness to pay; adjusting product features to achieve the target price.

Question 25

Define Bundle Pricing and provide examples:

Answer 25

Marketing multiple products at a single package price; e.g., vacation packages by airlines.

Question 26

What does Yield Management Pricing involve?

Answer 26

Varying prices based on time, day, or season to match demand and supply; used by airlines, hotels, etc.

Question 27

What factors influence cost-oriented pricing?

Answer 27

Standard Markup Pricing Cost-Plus Pricing

Question 28

Define Standard Markup Pricing:

Answer 28

Selling products above cost to cover expenses; expressed as a percentage.

Question 29

Describe Cost-Plus Pricing and its application:

Answer 29

Determining price by adding a specific amount to total unit costs; commonly used in various sectors.

Question 30

Define Marketing Channels and provide the analogy:

Answer 30

Definition: Marketing channels consist of individuals and firms involved in making a product or service available to consumers. Analogy: Comparable to a pipeline, facilitating the flow of goods from producers to buyers.

Question 31

What are the roles and functions of intermediaries in Marketing Channels?

Answer 31

Role: Facilitate the flow of products; examples include middlemen, agents, wholesalers, retailers, distributors, and dealers. Function: Act on behalf of producers, purchase, store, and resell products, or bring sellers and buyers together.

Question 32

What are the Intermediaries' Functions?

Answer 32

Transactional Function: Involves buying, selling, and assuming risks in inventory ownership. Logistical Function: Includes selection, storage, sorting, and transportation of products. Facilitating Function: Provides financing, marketing information, and makes transactions easier for buyers.

Question 33

What are Intermediaries' Value Creation?

Answer 33

Consumer Benefit: Offers time, place, form, information, and possession utilities to consumers. Value Addition: Enhances convenience and accessibility for consumers through various channels.

Question 34

What are the types of Marketing Channels?

Answer 34

Direct Channels: Direct transaction between producer and consumer. Indirect Channels: Involve intermediaries between the producer and consumer, increasing complexity.

Question 35

What are Electronic Marketing Channels? Provide an example.

Answer 35

Definition: Channels using the internet for product availability, leading to disintermediation in some cases. Example: Booking flights directly from airlines online or using agents like Expedia.

Question 36

What is Multichannel Marketing? Provide an example.

Answer 36

Definition: Utilizes multiple routes to reach consumers, enhancing sales opportunities. Example: Cross-channel shopping—e.g., buying from both online and retail stores.

Question 37

What are the considerations in Channel Design?

Answer 37

Factors: Market, product, and company-related aspects influence channel decisions. Coverage Types: Intensive, exclusive, and selective distribution strategies to cover the target market.

Question 38

What is Channel Conflict and what are the types of conflicts?

Answer 38

Definition: Conflicts arising between channel members over goals, roles, or rewards. Types: Vertical (between different levels) and horizontal (between intermediaries at the same level) conflicts.

Question 39

What are logistics and supply chain management?

Answer 39

Logistics: Focuses on efficient product delivery at the right time and cost. Supply Chain Management: Includes suppliers before product manufacture; part of the longer marketing channel process.

Question 40

What are Marketing Communication Tools? What is the Selection Process? What is the checklist for older generation?

Answer 40

Definition: Methods utilized by companies to communicate messages to customers. Selection Process: Consideration of each tool's strengths, weaknesses, and audience appropriateness. Checklist for Older Generation: Assessing effective tools for an older audience.

Question 41

What are Integrated Marketing Communications (IMC)? What is the consistency? Provide an example.

Answer 41

Definition: Strategies involving multiple target audiences using different tools for each audience. Consistency: Importance of maintaining a consistent message across all communication channels. Case Example: Domino's "AnyWare" campaign demonstrating the use of various tools to promote a unified message.

Question 42

What are evolving marketing communications?

Answer 42

Impact of Internet: Altered business and marketing, increasing consumer online interactions. Shift to Digital: Companies reallocating advertising budgets from traditional media to online platforms. Need for Innovation: Demand for unique digital strategies to stand out in the crowded digital space.

Question 43

What are advertising communication tools? What are the challenges associated with them?

Answer 43

Definition: Paid non-personal communication through various media. Popular Mediums: Television, internet, and direct mail as prevalent advertising methods. Challenges: High cost and low credibility, leading to distrust among consumers.

Question 44

What are Public Relations communications tools and their benefits?

Answer 44

Definition: Unpaid media exposure influencing target market opinions. Tools Used: Press releases, social media, company reports, special events. Benefits: Credibility due to third-party endorsement, cost-effective but challenging to control.

Question 45

What are sales promotion communication tools?

Answer 45

Definition: Short-term incentives to encourage purchases. Types: Consumer and trade promotions, easily measurable results but easily replicable by competitors.

Question 46

What are Direct Response Marketing tools?

Answer 46

Characteristics: Personalized and requiring an excellent customer database. Delivery Methods: Mail, email, social media, but often received negatively by consumers.

Question 47

What are event marketing and sponsorship communication tools and their benefits?

Answer 47

Strategies: Hosting events for brand experiences or sponsoring existing events. Benefits: Creates buzz and positive associations but challenging to measure and costly.

Question 48

What are product placement and branded entertainment communication tools and their benefits?

Answer 48

Strategies: Integrating products into shows or creating content around a brand. Benefits: Generates positive brand associations but can be expensive.

Question 49

What are personal selling communication tools and their importance?

Answer 49

Definition: One-on-one communication with customers. Importance: Expensive but crucial for building relationships, especially for high-value products.

Question 50

What are Online, Social Media, and Mobile Marketing communication tools and their advantages?

Answer 50

Types: Paid advertising, owned media (websites), and earned media (word-of-mouth). Advantages: Relatively inexpensive with two-way communication but dependent on technology.

Question 51

What are the opportunities and challenges related to mobile devices and marketing?

Answer 51

Opportunity: Tapping into personalized one-to-one communication via mobile devices. Challenge: Consumer caution due to privacy concerns, requiring permission for marketing access.

Question 52

What is the Customer Advocacy Funnel?

Answer 52

Usage: Moving consumers strategically through various stages using communication tools.

Question 53

What is the Push vs. Pull Strategy and its integration in companies?

Answer 53

Strategies: Push (manufacturer pushing products through the channel) vs Pull (consumer-focused marketing). Integration: Most companies combine both strategies in their marketing plans.

Question 54

What is the marketing communications process?

Answer 54

Steps: IMC objectives, identifying target audiences, budget allocation, program design, scheduling, evaluation, and improvements.

Question 55

What are the levels of strategy in Strategic Planning and Organizational Structure?

Answer 55

Corporate Level: Top management directs strategy for the entire organization. Strategic Business Unit Level: Separation based on similar products or markets. Functional Level: Specialized departments create detailed plans for each unit.

Question 56

What is a mission statement? Provide an example.

Answer 56

Communicates organization's purpose and direction. Example: Disney's storytelling, Tesla's sustainable energy mission, Amazon's customer-centric principles.

Question 57

What are SMART goals? Provide an example.

Answer 57

Specific, Measurable, Achievable, Relevant, Time-bound. Examples: Profit increase, sales volume growth, market share control, quality improvement, customer satisfaction, employee welfare, social responsibility.

Question 57

What is a SWOT Analysis?

Answer 57

Internal Analysis (Strengths and Weaknesses): Focus on manufacturing, technology, market share, reputation, etc. External Analysis (Opportunities and Threats): Exploration of market opportunities and threats in the external environment.

Question 58

What is a Business Portfolio Analysis: BCG Matrix?

Answer 58

BCG Matrix: Uses market growth rate and relative market share to categorize strategic business units. Applicable at product line or individual product levels.

Question 59

What is a Market-Product Analysis?

Answer 59

Market Strategies: Market Penetration: Increase sales to existing markets. Market Development: Identify new markets for existing products. Product Development: Create new products for existing markets. Diversification: Develop completely new products for new markets.

Question 60

How would you set up a marketing program?

Answer 60

Objective Setting: Define objectives for market, product, target markets, and positioning. Marketing Mix (4Ps): Details specific aspects of product, price, place, and promotion within the marketing plan.