MKTG 3310 FINAL FALL 22

Which product below would best take advantage of Maslow's hierarchy of needs?

A smartphone that promotes personality imagery when it is released but then promotes security and reliability after its been on the market for a while.

According to the elements of value pyramid, the minimum number of benefits a product needs to score well on to have a strongly loyal customers is?

4

What are the levels of Maslow's Hierarchy?

5. Self-Actualization 4. Personal / Prestige 3. Social 2. Safety 1. Physiological

A marketing strategy specifies:

A target market and a related marketing mix

Which of the following is the best example of a sales-related objective?

A 10% increase in market share

What is an argument for why this (Milton Friedman) is the correct view?

A business cannot run without money. Technology will gradually improve due to competition

What is the difference between movement along a demand curve and moving (i.e., shifting) the demand curve?

A change in something other than price that affects demand causes the entire demand curve to shift.

What is the difference between movement along a demand curve and moving/shifting the demand curve?

A change in something other than price that affects demand causes the entire demand curve to shift.

What is a demand curve?

A curve that shows the relationship between the price of a product and the quantity demanded

a distributor is

A downstream partner

What is a target market?

A fairly homogeneous (similar) group of customers to whom a company wishes to appeal to.

What is Stakeholder Orientation (i.e responsibility)?

A firms obligation is to improve the positive effect on the people who have a stake in the company. AKA the needs of a stakeholder come first.

What happens if a firm goes too far and defines itself too broadly?

A lack of focus means the company is all over the place.

What are the generic approaches for segmenting product-markets?

A market with broadly similar needs and sellers offering various often diverse ways of satisfying those needs

What is marketing strategy?

A marketing strategy specifies a target market and a related marketing mix. It is a big picture of what a firm will do in some market

What is a brand?

A name, term, symbol, design, or combination of these items that are intended to identify and differentiate a seller or a seller's product for competitors

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

EDLP

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of _______________ pricing.

EDLP

Which of the following is TRUE about early adopters?

Early adopters sometimes care more about being early than having the product.

What is the benefit of market share? Why?

Economies of scale, Market power, Quality of management, It is NOT because high market share companies can charge higher prices...

Simone bought an expensive luxury vehicle when she hadn't planned on purchasing anything. The next day, Simone experiences cognitive dissonance. Which stage of buyer decision process does Simone's dissonance relate?

purchase decision

What determines is a brand extension works? How can it backfire?

Fit, extent of previous success and power of brand Brand dilution, and negative feedback effects

What is a shareholder orientation?

Focused on maximizing returns to shareholders

What is the relationship between reach and frequency in terms of typical advertising (media) budgets?

More reach means less frequency

Strengths of Direct & Digital marketing

More targeted and interactive Allows for dialogue between marketing and consumers

When burger King creates advertising that tries to get customers to use the Burger king app precisely at 3am, the advertising is likely targeting customers at what stage?

Need recognition

Which of the following is true about Maslow's hierarchy of needs?

Needs at the top of the pyramid need to be met first

How is market share related to customer satisfaction?

Negative relationship

Are all companies now in the marketing era?

No - some companies have remained product oriented; which is associated with the sales era. This line of thinking occurs when a company becomes so proud of their product that they distance themselves from the customer.

Rihanna is a high performing salesperson for Mind Solve, an enterprise resource planning software company software company. She receives sales leads from Mind Solve employees who attend trade shows to identify potential customers in a effort to build long-term profitable relationships. Taking part in the trade shows is which step of the selling process?

Prospecting

Personality, needs, values (HARDEST to collect, LEAST used) 43% used - Variables of Segmentation

Psychographic

If a hair salon was trying to reduce variability, which of the following would best accomplish this goal?

Permit clients to make appointments with pre selected stylist

If a hair salon was trying to reduce variability, which of the following would best accomplish this goal?

Permit clients to make appointments with pre-selected stylist

Unique psychological characteristics that distinguish a person - are ______ influences of buyer behavior

Personal (personality)

Which of the following is NOT a way that personal selling is distinguished from mass marketing promotions?

Personal selling is interactive, two-way communication

which type of advertising would you use in the maturity stage of a product?

Persuasive

______ separates prospective customers into smaller groups based on common needs and/or response to marketing actions.

Segmentation

What would be an argument for why Friedman's view is correct?

Profit is the main goal of a company, and a business can not run without any money.

According to Maslow's Hierarchy of Needs, which product features would someone, who had all of their needs met, care most about?

Self-Actualization

Communication process - the party sending the message to another party (McDonald's)

Sender

What are parts of the communication process?

Sender, encoding, message, media, decoding, receiver, response, feedback, noise

________ branding is achieved by branding different products with different names not associated with the company

Separate Branding

As exemplified by the Amazon Echo commercial with Michael B. Jordan, the Wren clothing commercial, and the do it for Denmark campaign...

Sex appeals can create brand awarness

________ is when the company's main focus is to maximize shareholder value.

Shareholder Orientation

Weakness of sales promotion:

Short-lived, Bad for branding - if constantly discounting brand, then people won't buy unless on sale

What makes up the long tail?

The niche products that are less popular but satisfy the needs/wants of a specific population

What is segmentation?

The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.

Which of the following is NOT a factor that determines whether a consumer is likely to have high involvement with a product (i.e., use extended problem solving)

The product is in a competitive market

Which of the following is TRUE about goods versus services?

The quality of services is generally harder to control than that of goods

Karen's manager was furious. She told Karen "you sold me on the idea that brand communities would be good marketing for our products. Look at these negative comments. You need to fix this right away!" Karen was afraid she might lose her position, but she also knew

The reaction of the brand community would be even worse if she tried to shut down the conversation.

What is the marketing concept?

The responsibility of a business to fulfill the needs, wants, and desires of a customer all while they make a profit.

What is price elasticity?

The responsiveness of demand to a change in price.

What is least likely to happen if a firm chooses to not appropriate the value from value creation?

The value will go away because no one appreciates it.

How is market share related to the marketing concept?

They are related because it shows what the customer values in products during a set period.

Which is the BEST approach for a marketer to follow in regard to brand communities?

They should not attempt to control over govern the communities

What is marketers obsession with young consumers?

They think young consumers are easier to influence

What is the goal of most marketing research?

To uncover unique and actionable customer and market insight

In today's time, is there any company that mass markets?

Yes, there are many companies that run national marketing campaigns

Strengths of personal selling:

observation & adjustments, customer relationships, the need to listen/respond, the most effective tool at certain buying stages

behavioral segmentation variables:

occasion, benefit, user status, usage rate and loyalty status

which of the 4 P's captures value

price

Focusing on superconsumers enable us to reach people at the top of the demand curve, because superconsumers are _______________.

price sensitive

which pricing strategy would you use for a new prescription drug?

price skimming

Facts and figures that are newly collected for a project at hand are referred to as _______________.

primary data

Primary and secondary data sources: Which do companies typically use first?

primary- collecting data yourself secondary- the data already exists Use secondary first

The major problem affecting digital marketing right now is _______________.

privacy

A _______ is anything that can be offered to a market to satisfy a want or need

product

If coca cola partners with Aurora (cannabis company) , what kind of growth strategy would they employ

product development

What is a product, product line, and product mix?

product: anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organizations, information, and ideas product line- group of related products, that perform a similar function, are sold to the same customer group, are marketed through the same outlets or channels, or fall within given price ranges (ex. life insurance) product mix-all the product lines; (i.e. all games by angry birds company)

The idea that "if it can be made, it can be sold" refers to _______________.

production orientation ex. an idea that building a better mousetrap will win the market

which of the 4 P's communicates Value in order to engage customers

promotion

Rihanna is a high performing salesperson for Mind Solve, an enterprise resource planning software company. She receives sales leads from Mind Solve employees who attend trade shows to identify potential customers in an effort to build long-term profitable relationships. Taking part in the trade shows the _______________ step of selling process.

prospecting

in which step of the selling process does a salesperson or company identify qualified potential customers?

prospecting

the boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves...

protecting the privacy of knowing and unknowing customers

The neon yellow bracelet for the Livestrong brand, which could be seen by others who were unfamiliar with the brand, takes advantage of the _______________ part of STEPPS.

public

Building up a good rapport with entities outside the company, building up a good corporate image

public relations

______ is building good relationships with various publics, through favorable publicity, good corporate image, and heading off unfavorable rumors/stories/events

public relations

EDLP Pricing

charging constant, everyday low prices with few sales discounts

unsought product examples

life insurance and Red Cross blood donations

which of the following is a psychographic characteristic of a consumer

lifestyle

Customer _______________ is the amount of spending potentially spent by.

lifetime value ex. Dominoes customer over length of typical customer-company relationship

To stimulate relevance, an appeal MUST...

link to why people buy the brand

The best way to characterize a good salesperson is one who _____.

listens

The reason companies spend on digital is because it is ______ and ______.

low cpm/ targeted because of data avalible

The reason demand for movie theater tickets has traditionally been inelastic in regards to changes in price is probably because the cost is such a _______________ of movie watchers' disposable income.

low percentage

specialty product examples:

luxury goods, such as Rolex watches or fine jewelry

Reminder Advertising

maintaining customer relationships, reminding customer where to buy a product, keeping the brand in customers minds during off seasons

shopping product examples:

major appliances, televisions, furniture and clothing

What should marketing do to a products demand?

make it more elastic to changes in price

customer relationship management (CRM)

managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty. The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction

what kind of growth strategy is Pedialyte using to market its products for Hangovers?

market development

If Toyota had one recall, we would expect consumer attitudes to...

...decrease a tiny bit.

Brand awareness creates brand equity because...

...familiarity breeds liking

If a shop calculates the price elasticity for their main product, and finds the price elasticity coefficient is less than one, that means the shop...

...has flexibility in raising prices

Bai, a new drink brand just hitting the market, created a funny and shareable ad with Christopher Walken and Justin Timberlake in which the humor did not link to why people purchase a brand. This ad would probably...

...help Bai because it would get attention and shared

Spending on advertising tends to stay within 1% to 2% of GDP and has done so for over 80 years. What this tells us about advertising is companies most likely fund advertising based on...

...how well the economy is doing.

If Budweiser was the dominant brand in the beer category but is now losing popularity and awareness among younger generations while other beer brands are gaining in popularity and awareness, Budweiser may...

...need to completely change its brand image

Compared to experts, customers are better at...

...screening functional products

If someone uses a pay what you want pricing strategy is worried about people paying to little or nothing at all and decides to set a small dollar amount for a minimum suggested donation, what is most likely to happen? The overall amount of revenue will?

...stay the same because people do not pay attention to minimum donations

The greater the connection between a brand and brand extension, the greater the likelihood that...

...success of the brand will help the brand extension

The purpose of price discrimination is to...

...take advantage of the entire demand curve.

What is the purpose of price discrimination?

...take advantage of the entire demand curve.

Given there are more problems in social media marketing (SMM) than in traditional communication channels, firms cannot avoid it because...

...the SMM conversation is happening with or without companies.

The lack of profit in the introductory stage of the product life cycle is very often the result of...

...the large investment costs in market development.

If we were to compare the satisfaction of services to the satisfaction of goods in the ASCI, we would likely see that average satisfaction with services is...

...the same as average satisfaction with goods.

If we were to compare the satisfaction of services to the satisfaction of goods in the ASCI, wed would likely see that average satisfaction with services is....

...the same as average satisfaction with goods.

Who are the main appropriators?

1. Firm 2. Society 3. Competitors

What are the criteria in creating segments, and why is each of them used?

1. Homogeneous within the segment-want the segment to react similarly to things (reacting to humor in commercials) 2. Heterogeneous between segments-want to make them different than our other market segment-if we don't, there could be segment bleed 3. Substantial (profitable) 4. Operational (segmenting variables should be useful)

What would determine if a brand extension would work?

Fit, and the extent of previous success and power of brand

What is an advantage of separate branding?

If the product fails the company has not tied it to its reputation

_______________ can be considered a bundle of benefits.

Products.

Sales Promotion

short-term incentives to encourage the purchase or sale of a product or service

The Geico ad "hump day" which equates the Geico brand with calling Wednesday "hump day" and could possibly link the brand to that commonly used term thereby making it salient on Wednesdays. This takes advantage of the _______________ part of STEPPS.

trigger

True/False ACCURATE about product life cycle: Growth is a period of rapid market acceptance and increasing profits.

true

True/False about adopters: Early adopters often care more about being early than having the product.

true

True/False about brand extensions: Virgin's ongoing success in brand extensions is partly because it has been successful at brand extensions in the past.

true

True/False about goods and services: The quality of services is generally harder to judge than that of goods.

true

True/False about laggards: Laggards are typically older than every other group.

true

True/False considering the negativity bias: Facebook with approximately 72% of the social media market share, starts labeling posts as inaccurate or misleading, which is supported by 50% of its users, this brand would have the most problems from taking a stance on a political issue.

true

True/False of value-based pricing: The targeted value and price drive decisions about what costs can be incurred and the resulting product design.

true

True/False with regard to price: Price is a reflection of all of the decisions made by the firm.

true

True/False: A conceptual difference between outbound and inbound marketing is that outbound marketing tries to find where customers are and interrupt them whereas inbound tries to attract and lure potential customers in based on providing useful and engaging content.

true

True/False: A general rule of thumb among marketing researchers is to use secondary data first and then collect primary data.

true

True/False: A large marketing company uses patents/heavy promotion spending to prevent competition, also known as value appreciation activities.

true

True/False: A perceptual map graphically shows similarities and differences of how customers perceive for brands.

true

True/False: As exemplified by the Oldsmobile and Howard Johnson brands, a powerful brand can be a disadvantage if the brand image is too connected to a certain period of time.

true

According to the elements of value pyramid, a realistic maximum number of benefits a product is likely to provide is _____.

11

According to the elements of the value pyramid, the minimum number of benefits a product needs to score well on to have strongly loyal customers is _______________.

4

What are the three arguments for businesses to engage in other causes, besides just seeking a profit?

1. If they don't then other NGOs and GOs have to expand to achieve these resources and grow. 2. Businesses can make a profit. 3. Consumers want businesses to do it

Major International Marketing Decisions:

1. Looking at the Global Marketing Environment 2. Deciding Whether to Go Global 3. Deciding Which Markets to Enter 4. Deciding How to Enter the Market 5. Deciding on the Global Marketing Program 6. Deciding on the Global Marketing Organization

Given the McKinsey data, we could say that young consumers, as compared to older consumers...

...are less brand loyal

If a segment is not profitable (i.e., substantial), then marketers should...

...avoid the segment entirely

In the hierarchy of the effects model, advertisers have traditionally measured awareness and liking because...

...businesses want those outcomes

Brand awareness...

...can create brand equity by itself

What does perishability mean for Delta? Delta...

...cannot accept returned products after production.

When advertisers worry that an emotional appeal, such as fear, goes too far, they are concerned that the appeal will...

...cause people to misremember the brand

Personal Selling Process

(1) Prospecting and Qualify (2) Pre-approach, (3) Approach, (4) presentation and Demonstration (5) Handling Objections (6) Closing (7) Follow-up.

What is demand-based, cost-based, and competition-based pricing?

(Demand) value based pricing - using buyer's perceptions of value as the key to pricing Cost-based; setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for the company's effort and risk Competition based; Setting prices based on competitor's strategies, costs, prices and market offerings

4 types of markets and how they relate to the firm's pricing power:

(on a scale - price takers' price is set by customers, price setters can charge whatever they want, because they hold market power) Price Takers→ - Pure Competition -- Monopolistic Competition -- Oligopolistic Competition -- Pure Monopoly - ← Price Setters

What are the 4 types of markets we discussed and how do they relate to a firms pricing power?

(on a scale - price takers' price is set by customers, price setters can charge whatever they want, because they hold market power) Price Takers→ - Pure Competition -- Monopolistic Competition -- Oligopolistic Competition -- Pure Monopoly - ← Price Setters

The long tail is enabled by these 3 things:

- Breaking free of the constraints of physical space - Finding ways to talk to market segments - New distribution systems

What are the 5 levels of Maslow's heiarchy?

- Self actualization needs (self fulfillment) : top - Personal needs (status, respect, prestige) - Social needs - safety needs (freedom from harm, financial security) - Physiological needs (food, water, shelter, oxygen) : bottom of pyramid

If a segment is not profitable we would:

- broaden market definition to find more opportunity - try to match the firms resources and objective (the market should be bigger than the firm's present product market but not so big that it couldn't expand and become an important competitor)

What is CPM and how can you calculate it?

- cost per thousand impressions - cost of ad/audience size x 1000

What is the 4 STEP APPROACH to marketing research?

- define the problem - develop the plan - collect and analyze the data -interpret and report

There are FIVE stages in the purchase decision process. What are they and what happens in each stage?

- need recognition: perceive need - info search: look at all alternatives - alternative evaluation: narrow it down to the criteria that are the most influential to your decision, pick out consideration set -Purchase Decision: actually going to buy the product, trying to get people to get up and go buy now! -Post Purchase: where you can find buyer remorse, something gives you dissonance after buying something. You can have marketing that makes customers feel better about having made that purchase (care dealers calling a few days after you buy a car)

Name the generic approaches for segmenting product markets:

- single target market - Multiple target market - combined target market

Market segmentation is separating prospective customers into smaller groups based on...

...common needs and/or response(s) to marketing actions.

A primary benefit of Nike's Write the Future campaign, which advertised around the 2010 World Cup using a variety of promotion tools and media, would have been consumer's increased...

...conceptual fluency for Nike

What does the idea of "touch vs tech" tell us? On average...

...customers don't like kiosks in Olive Garden

What is the customer value hierarchy, and what happens at each level?

-core-benefit: product itself -basic product: product serves intended use (hotel must offer bed, towels, water) -expected product: what is assumed to come with the product (batteries, hotel wifi, clean room) -augmented product: what the product/market offers that differentiates them from the market (free movie channels in hotel) -potential product: the redefining variable that product offers (airbnb, residence inn changing the hotel game)

Which of the following about reach and frequency is FALSE?

.. reach and frequency are easiest to asses for newspapers

From a positioning standpoint, if Yeti owns the position of high-quality cooler, that means...

... Yeti Segmented well

A strong brand image and equity...

... can change how people respond physiologically to the brand

When advertisers worry that an emotional appeal, such a fear, goes too far, they are concerned that the appeal will...

... cause people to misremember the brand

Advertising on streaming TV is...

... has a lot of waste like advertising on the superbowl

For a company that knows what it is doing and uses more of commission structure for salespeople than a high base salary that company is likely to...

... have strong individual salespeople

A reference price is a standard in customer's minds of the fair value/price of a product that...

... is well formed for every product

The hierarchy of effects model suggest that....

... people know and like something before they buy it

If ice cream sales and violent behavior increases and decreases at the same time, then we would say these two phenomenon are...

...Correlational

The best use of IMC would incorporate...

...a sales promotion perfectly timed with direct marketing

Which has the greater impact on profit?

1% variable

We examined two brand images in class. What were the beer brands those maps represented?

1) Budweiser 2) Corona

What are the criteria in creating segments? Be able to name all of the criteria and understand why each criteria is used.

1) homogenous within a segment 2) heterogenous between the segments 3) substantial or profitable 4) operational or useful

What are two important disadvantages of secondary data?

1) it sometimes is not up to date 2) it is not specific enough for project

What are the potential problems with a focus on shareholders?

1. Causes companies to be very short term focused in order to make quarterly earnings. 2. Makes the market volatile in the long run, the average stock holding period has gotten significantly shorter

What are the 3 basic ideas of the marketing concept?

1. Customer satisfaction 2. Total company effort 3. Profit (not just the sales)

What is the purchase decision process? Know each stage and what happens.

1. Need recognition / 2. Information Search / 3. Alternative Evaluation / 4. Purchase Decision / 5. Postpurchase 1. perceive need 2. commercial or personal 3. You compare and contrast the product to its alternatives 4. You make the purchase 5. Everything that happens after you buy the product; recall buyer's remorse (companies can alleviate buyer's remorse, or at least get stats on it, by follow-up w/ customers)

What is marketing not?

1. Selling more things to more people more often for more money 2. The devil 3. Just advertising 4. Unnecessary

What is customer lifetime value and customer equity?

1. Total stream of purchases a customer may contribute over their lifetime (i.e., length of relationship) 2. The expected profitability from a firm's customers over some period of time.

What does marketing look like that tries to influence these stages? identify stage ads target.

1. Usually introduces a product, to show you that you have a need for it. (example in class was of the credit card that holds all your cards) 2. Gives information about the product (ex. infomercials) 3. Compares itself to other products (ex. 'us vs leading brand') 4. Usually involves a call to 'buy now!' 5. Call to see how you like your purchase (think of buying a car)

marketing research process:

1. define the problem and research objectives 2. develop a plan 3. implement plan 4. interpret and report feelings

what percentage of the price of a product goes to packaging materials?

10%

value-added pricing example

AMC's cinema suites are adding amenities and charging more

What is the unique contribution of marketing to a firm?

Acquiring resources from customers

What is a unique contribution of marketing to a firm?

Acquiring resources from customers and engaging in activities designed to increase profits.

Usually, a VMS with Walmart as a member would be

Administered

Why is Sergio Zyman's view of advertising potentially incorrect?

Advertising can be used to build a brand.

Why may the Superbowl be considered a bad buy?

Advertising waste, expensive & clutter

What is marketing not?

Advertising, a necessary tool, the devil, selling more things to more people for more money

What are the 5 main categories of promotion (promotion mix) covered in ch 11?

Advertising: Any paid form of nonpersonal presentation and promotion of ideas goods or services by an identified sponsor. Sales Promotion: Short term incentives to encourage the purchase or sale of a product or a service Personal Selling: Personal presentation by the firm's sales force for engaging customers making sales and building customer relationships. Public relations: Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories and events. Direct and digital marketing:

What are the strengths and weaknesses of each category?

Advertising: Pros - shotgun approach, CPM, repetitive Cons - impersonal, indirect, one way conversation Sales promotion: Pros - coupons, contests, discounts, rewards quick response Cons - short lived, often not as effective Personal selling: Pros - most effective Cons -most expensive, requires long term commitment Public Relations: Pros - reaches people who avoid ads and sales people Cons - can dramatize the company or product Direct and Digital: Pros - more targeted and interactive, creates dialogue

The marketing concept says that a business firm should:

Aim all of its efforts at satisfying its customer, at a profit

It's a substance that we can't live without. It's absolutely essential in our lives. And its usually free! But when it's mixed into products like ice cream, hand soap, and even candy bars, consumer pay more for less. What is this mysterious thing?

Air

What is true of reach and frequency with a limited budget?

All of these

What is price discrimination?

Allows you to charge at prices along the demand curve

Warehousing Examples:

Amazon employs teams of super retrievers - day-glo orange Kiva robots - in its state-of-the-art distribution center

Regarding digital privacy, the _______________ company is doing the most to protect user's data.

Apple

How should firms view advertising?

As a potential investment opportunity

In terms of the communication process, explain why the KFC ad on Walking Dead could have been potentially troubling.

As mentioned above the noise involved in that ad was very heavy making the viewers lose sight of the true purpose of the ad. The noise of Zombies eating flesh could be associated with the brand and created a negative result.

What is an attitude? How stable is it and how easy is it to change? Once an attitude is stable, what causes it to change?

Attitudes are very stable, capable of change (usually because of a 'critical incident')

What happens over time to augmented features?

Augmented features become expected. It usually consists of lots of added value for which you may or may not pay a premium.

Know the Brand Resonance Pyramid

Awareness(bottom) -> Meaning -> Response -> resonance(top)

According to our discussion in class, Starbucks, whose products are consumed in front of others, connected to a routine, make people happy, and wake people up, didn't have to advertise for their first 25 years in existence. why?

Because starbucks was well positioned to take advantage of STEPPS

How does focusing on super consumers enable us to reach people at the top of the demand curve?

Because super consumers are price insensitive

How does product orientation exemplify narrow thinking?

Because the managers show little interest in customer's needs.

Usage rate, past purchases, look for tendencies in people "how you behave is usually how you always will" 65% used - Variables of Segmentation

Behavioral

What is stakeholder orientation (i.e., responsibility)?

Being oriented between the stakeholder firms obligation to improve its positive effect on all people who have a stake in the company.

Why is pricing so important?

Benefits/cost, affects value creation idea and attractiveness of the market offering; once you pass a certain price, people hesitate to buy on impulse. price floor - no profits below this price. Price ceiling - no demand above this price. pricing is the reflexion of everything you do as a business. If you're doing well (innovating, creating brand equity) your pricing reflects that.

A _____ is a name, term, symbol, design, or combination of these items that are intended to identify and differentiate a seller or a seller's product for competitors.

Brand

A _______ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

Brand

If a consumer buys Clorox bleach tissue that is the exact same quality as a generic brand only more expensive, Charmin has created ______ with the consumer.

Brand Equity

The diagram is a visual representation of the _______ for Budweiser and Corona.

Brand Image

Swiffer dusters can now be bought with a scent of Febreze. This is an example of which strategy?

Brand Partnership

The willingness to pay more for one brand over another brand is known as?

Brand preference

What is the long tail enabled by?

Breaking free of the constraints of physical space, finding ways to talk to market segments economically, new distribution systems

What do you do if a segment is not profitable?

Broaden market definition to find opportunity- try to match the firm's resources and objective (the market should be bigger than the firm's present product market but not so big that it couldn't expand and become an important competitor)

What are the 3 arguments for businesses to engage in other causes besides seeking a profit?

Businesses have the best talent and resources Consumers want them to do it Problems are too big

In the beginning of a buying process, which member of the buying center is most important to a salesperson?

Buyer

What is an example of the Macro-Micro Dilemma?

Buying bottled water is convenient for one person, but it could have long term effects on increased solution and wasted resources.

How is market share related to customer satisfaction?

By a negative relationship

What are the types of cost-based pricing and value-based pricing?

CBP Markup (cost-plus)- adding a standard increase to the cost of a product Experience Curve- a planned reduction in price for increased production VBP Good-value pricing- the right combination of quality and good service at a fair price Value added- attaching services and features to a product to support higher prices EDLP pricing/ Hi-Low pricing- keeping prices at a standard low rate vs. discounting

What is the sequence of steps for demand-based vs cost-based pricing?

CBP; design a good product→determine products costs→set price based on cost→convince buyers of product's value VBP; assess customer needs and value perceptions→set target price to match customer perceived value→determine costs that can be incurred→design product to deliver desired value at target price

________ (or umbrella branding) companies use their brand as an umbrella brand across their entire range of products

Corporate Branding = Umbrella

What is the sequence of steps for demand-based vs cost-based pricing?

CBP; design a good product→determine products costs→set price based on cost→convince buyers of product's value VBP; assess customer needs and value perceptions→set target price to match customer perceived value→determine costs that can be incurred→design product to deliver desired value at target price

How would marketing influence the "post purchase" stage of the product decision process?

Call to see how you like your purchase (think of buying a car)

what is most price elastic? Cars or Milk

Cars

What step would be "what is causing the problem and then TESTING it" in marketing research?

Casual

Primary and secondary data sources: Which is typically cheaper? Which is typically timelier? Which typically provides more accurate data? Which is typically more time consuming?

Cheaper - secondary Timelier - primary Accurate - primary Time consuming - primary

What are the the TWO things that IMC (integrated marketing communications) help a firm obtain?

Clarity in message (ensuring encoding and and decoding are proper) and Synergy - the communication platform

What are the 2 things that IMC helps a firm obtain?

Clarity in message (ensuring encoding and decoding are proper) and synergy and multiplication

In 2012, Taco Bell introduced Doritos Locos Tacos and sold over 100 million in the first 10 weeks. This is a successful example of which type of branding?

Co-Branding

_____ allow one branded product to feature another brand as a component part or ingredient.

Co-Brands

What is marketing?

Co-creation of Value ...a business philosophy (marketing concept) ...a business discipline (marketing ideas) ...a distinct unit in an organization (marketing department) ...a set of business activities (market research, etc.)

How do the parts of the communication process translate into marketing promotions?

Companies trying to promote a message, need to make sure their message is relevant, clear, persuasive, and, the consumers can decode the intended message

Spending on advertising tends to stay with 1 to 2% of GDP and has done so for over 80 years. What does this tell us about advertising?

Companies use advertising for differentiation from competitors even during recessions

How would marketing influence the "alternative evaluation" stage of the product decision process?

Compares itself to other products (ex. 'us vs leading brand')

____ Sets prices based on competitor's strategies, costs, prices and market offerings

Competition based pricing

what kind of budget would be used for a product like pepsi?

Competitive Parity

What are the aspects we discussed that shift a demand curve?

Consumer income, price of related goods, consumer taste, population and demographics, expectations, marketing

How do consumers feel about companies having their data?

Consumers don't even want their favorite companies to have their data as they believe the data is personal and private

_____ is creating and distributing a broad mix of compelling content that engages customers, builds relationships with and among them, and moves them to action. To feed today's digital and social media machinery, and to sustain "always-on" consumer conversations, brands need a constant supply of fresh content across a breadth of traditional and general platforms.

Content Marketing

Which category of influences represents influences that are unique to a specific customer experience at a specific time?

Contextual

Know the difference between corporate branding, separate branding, and sub-branding strategies.

Corporate - use corporate name and brand on all your products Separate - reduces risk, but costs more. Have to do with every different product Sub - product or service whose character and brand values are distinct from, but related to its parent brand

What is the difference between correlation and causation? What is the benefit of each? What is a downfall of correlation?

Correlation is when things seem to be related because they occur at the same time or in similar ways, whereas causation is when things are directly related and cause each other. It can be helpful to predict market behavior.

What is CPM and how do you calculate it?

Cost per 1000 impressions, calculated by cost by 1000 (cost of ad/audience size x1000)

What is content marketing?

Creating inspiring and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned and shared channels

Nationality, subculture, social class, social groups, family - are ______ influences of buyer behavior

Cultural and Social

_____ is the expected profitability from a firm's customers over a period of time.

Customer Equity

______ is the total stream of purchases a customer may contribute over their lifetime or length of relationship.

Customer Lifetime Value

_____ is the difference between the benefits a customer sees from what the market is offering and the costs of obtaining those benefits.

Customer Value

______ is the differential effect of brand knowledge on consumer responses to marketing

Customer based brand equity

Which of the following is TRUE about brand extensions?

Customers evaluate brand extensions based solely on the amount of connection between the brand and product

How can we characterize the role of customers in the new product development process?

Customers need to be included in the idea generation or a firm is unlikely to be successful

Books-A-Million currently has cashiers sell magazine subscriptions to customers as they check out. Explain the likely result from this practice.

Customers will NOT appreciate the offer because sales gets in the way of service.

Books-a-million currently has cashiers sell magazine subscriptions to customers as they check out. Which of the following explains the likely result from this practice?

Customers will not appreciate the offer because sales gets in the way of service

What is a stakeholder?

Customers, employees, investors and community

_____ is a curve that shows the relationship between the price of a product and the quantity demanded

DEMAND CURVE

Age, race, gender, marital status, (this used to be used a lot more than it is now) 53% used - Variables of Segmentation

Demographic

Which broad category of segments is easy to apply and where relevant information is readily available.

Demographic

Indicators of Marketing Potential

Demographic, geographic, economic, sociocultural, Political and Legal

What step would be "what the audience is focused on/collecting and analyzing data" in marketing research?

Descriptive

In what ways can a product line be stretched?

Down-Market Stretch - lowering in price market Up-Market-Stretch - going up in price market (Kia trying to move into luxury car market) Two Way Stretch - in between high and low price with moderate quality

In what ways can a line be stretched?

Down-market stretch- market satisfies owner end needs and provides a lower price (2in1 shampoo, simple razors) Up-market stretch- upscale the product and improve the quality (toyota→lexus, taco bell→cantina) Two-way stretch- in between high and low price with moderate quality

Know these product classifications and how they affect the marketing mix: Durable, non-durable, and service products Convenience, shopping specialty, and unsought products.

Durable (tangible goods, more expensive, more time used evaluating purchase, bought less frequently ex. electric razor) non-durable (a tangible good that is quickly used up, convenience-based, cheap ex: 5hr energy) and service products (intangible products ex. Auburn University). Convenience (impulse buy no research done ex. Q-tip), shopping (sought out product, based on taste, compared to other products when shopping ex. Tom's Shoes) specialty (not commonly shopped for, smaller market, must go out of way to fine ex. virtual reality headset), and unsought products (you don't want to buy it but you have to; need based not desire based ex. coffin, life insurance)

____ media is social sharing, mentions, comments, likes, reposts, and reviews

EARNED

How does price elasticity affect a demand curve?

Elasticity changes the slope of the demand curve; a more elastic product, has a flatter line because people will generally keep buying the product at a similar rate even if the price changes, a more inelastic product has a more vertical line because people will stop buying the product (bringing the demand way down) if the price increases.

How does price elasticity affect a demand curve?

Elasticity changes the slope of the demand curve; a more elastic product has a flatter line because people will generally keep buying the product at a similar rate even if the price changes, but a more inelastic product has a more vertical line because people will stop buying the product (bringing the demand way down) if the price increases.

The _____ research approach is most suit for casual research:

Experimental Research

What is an example of casual market research?

Experimentation happens here/causation-correlation happens here

What are the 3 types of marketing research?

Exploratory- discover the problem- why?- define the problem Descriptive- What audience is focused on- who?- collect and analyze data Casual- what is causing the problem and TEST it- how?- develop a plan (causation/correlation)

Market Entry Strategies

Exporting, Joint Venturing, Direct Investment

What is the marketing concept?

Extent that a company focuses on a customers needs, wants, desires, and then a profit

What is the purpose of price discrimination?

Extracting profit from the entire demand curve

cold-calling is the best source of new prospects for a salesperson

FALSE

True/False: of the following, should never be used for a brand image... adjectives, political issues, products, and/or rivalries.

FALSE; all of the above can be used for brand image... adjectives, political issues, products, AND rivalries.

Considering the negativity bias, which of the following brands would have the most problems from taking a stance on a political issue, if that issue was supported by about 50% of consumers.

Facebook, with approximately 72% of the social media market share, starts labeling posts as inaccurate or misleading.

Good SMM requires:

Fast content and response Methods: Content creation Customer interaction Advertising

What does good social media marketing require?

Fast content and response-flattening the organization and stripping the layers of quality control. Methods: content creation, customer interaction, and advertising

Panera Bread is handing out samples of a new sandwich prototype for their menu and asking for feedback. What kind of research is this?

Field Study

How do these translate into marketing promotions?

Field experience, whoever is on the marketing team and the extent that they understand the target market..

What is an example of descriptive marketing research?

Figured out that hipsters are the ones that are driving sales, but now we need to figure out "What is a hipster" - brings numbers into the equation

Who are the main appropriators?

Firm, society, competitors.

Which of the following is TRUE about advertising on the Super Bowl?

From a CPM perspective, advertising during the super bowl is a good value

Which of the following is most likely to result in greater anxiety for a salesperson?

Full commission

_______________ commission is most likely to result in greater anxiety for a salesperson.

Full commission

Based on the elements of the value pyramid, the _______ category is the one that is most likely to be copied,

Functional

What does advertising spending fluctuate with?

GDP (gross domestic product) - spending on advertising goes up, **companies will have more money so they will have more to spend on advertising

What does advertising spending fluctuate with?

GDP - spending on advertising goes up- companies will have more money so they will have more to spend on advertising.

Economic Factors (indicators of marketing potential)

GPD size and growth, income distribution, industrial infrastructure, natural resources, financial and human resources

What 3 characteristics of a firm are needed to be market oriented?

Generate info about the market Disseminate info through the company Incentivize use of the info

Region, city size (EASY to collect, MOST used) 88% used - Variables of Segmentation

Geographic

Which variables of segmentation are the most used by companies?

Geographic & Behavioral

What is the difference in using geographic, demographic, behavioral, or psychographic variables for segmentation?

Geographic- region, city size (Easiest to collect, Most used) Demographic- age, race, gender, marital status (Most used) Psychographic- personality needs, values (Hardest to collect, Least used) Behavioral- usage rate, past purchases (Most used)

How would marketing influence the "information search" stage of the product decision process?

Gives information about the product (ex. infomercials)

What are some examples of the generic approaches to the segmented product markets?

GoPro example: Single - extreme athletes Multiple - athletes and family Combined - both groups get the same use out of it

Customer Value Based Pricing:

Good value and value-added pricing

Types of Value based pricing:

Good-value pricing- the right combination of quality and good service at a fair price Value added- attaching services and features to a product to support higher prices EDLP pricing/ Hi-Low pricing- keeping prices at a standard low rate vs. discounting

Which of the following statements is ACCURATE about the product life cycle?

Growth is a period of rapid market acceptance and increasing profits.

Would the superbowl ad be considered a good buy if looking at the CPM?

Has a large audience base if you can afford it. SB com CPM : cost=3,000,000 audience=110,000,000 $27 per 1000 So yes, it is a good buy

The majority of DEMAND falls within the head or tail?

Head

When there is a price decoy, customers are more likely to pick the ____ priced offering, without a price decoy, customers are more likely to pick the _____ priced offering.

Higher/Lower

Which of the following is TRUE with regard to price?

Historically, price has little impact on buyer choice

What is a market orientation?

How integrated the concept has become(< Not sure this is accurate) The primary responsibility of a business is to fulfill the needs, wants, and desires of customers......while making a profit. From the book: "Instead of just trying to get customers to buy what therm has produced, a marketing-oriented firm tries to offer customers what they need."

Because gender identity cannot be easily observed, a segmentation strategy based on gender identity may have problems in terms of being ______.

Identifiable

Match the segmentation criteria to its description

Identifiable: The ability to know how Measurable: The ability to reach a Substantial: The profitability of a se Accessible: The ability to reach a Responsive: The tendency for a se

If Auburn university were to start using dynamic pricing for their football tickets, when would customers start to think the prices were unfair?

If customers did not understand the reason for the price changes

Which of the following is LEAST likely to make it so that an Auburn student thinks in terms of being an Auburn Student (and has their purchases influenced)?

If the student belonged to a fraternity group and with their fraternity group.

What does Chevrolet, Levis, and Coca-Cola tell us about creating a powerful brand?

If you are all over the place with your brand meaning it will not work

What happens if a firm goes too far and defines itself too broadly?

If you define yourself too broadly you can get messy and lose money. Ex: amazon. too many markets and lost money

Weakness of advertising:

Impersonal, lacks direct persuasion, audience disconnect from one-way communication, cost on budgets

____ marketing earns customer attention before they become a customer

Inbound marketing

Types of Advertising

Informative, Persuasive, Reminder

Carefully integrating and coordinating the company's communication channels to deliver a clear, consistent and compelling message about the organization and its products.....is called what?

Integrated Marketing Communications

someone who is IN BETWEEN a customer and producer is called

Intermediary

Identify Primary, Secondary, Internal, and External data

Internal - membership cards External - surveys and data wear

Product Life Cycle (PLC):

Introduction, growth, maturity, and decline

What is the purpose of CPM as a promotion metric?

It can determine the value of the impressions the product receives

What is a benefit of correlation/causation?

It helps predict market behavior

As exemplified by the amusement park experiment using ride photos, what does combining social responsibility (such as by offering giving 50% of profit to charity) with pay what you want pricing do?

It increases the amount of profit

Why can't firms avoid SMM?

It is already happening around them.

Which of the following is a shortcoming of advertising?

It only provides one-way communication with customers.

What happens over time as products gain more expected and augmented features?

It opens a space for a basic product (Gillett and Harry's)

Stating that a "good" product market segment should be substantial means:

It should be large enough to be profitable

What does the Pepsi Taste Challenge tell us about the power of branding?

It shows us that a person will associate the better product with the brand that they like or more familiar with. Brand love is just as important as taste

Market Share and the Marketing Concept are related because:

It shows what the customer values in products during a set period

What happens if fear, humor and sex appeals do not have a link with why someone buys a product?

It won't encourage purchase within a short time frame afterward

Why is pricing so important when considering profitability?

It's the most important factor from those we discussed; it has a more direct effect on profit; 1% change in price results in a lot more in profit

Why is pricing so important when considering profitability?

It's the most important factor from those we discussed; it has a more direct effect on profit; 1% change in price results in a lot more in profit

Which of the following is a major problem in casual research?

Its nature makes it difficult to obtain accurate and reliable information

What is a production orientation and how does this exemplify narrow thinking?

Just focused on the product, can lead to marketing myopia

Using the diffusion of innovation adopter categories and considering that 53% of Alabama citizens fully vaccinated against Covid-19, those who are NOT vaccinated for Covid-19 as compared to those are vaccinated, are probably ____.

Less educated

What the benefit of market share? Why?

Links to profitability Economies of scale Market power Quality of management It is NOT because high market share companies can charge higher prices...

What is the difference between Mass Marketing and Target Marketing?

MM - is a shotgun approach aiming in no particular direction, trying to hit as much as possible. TM - varying some element of the mix for a target market (rifle approach)

What MUST marketers understand to communicate with customers effectively?

MUST UNDERSTAND CUSTOMERS FIELD OF EXPERIENCE, Too often marketing communication is focused on immediate preference, image, or awareness, goals in the target market.

The _______ determines that what is "good" for some firms and consumers may NOT be good for society as a whole.

Macro-Micro Dilemma

Trying to balance the interests of people who want to drink beer and the damages of drunk driving is an example of:

Macro-Micro Dilemma

What are the types of ways we collect data for Primary research approaches?

Mail (small response), telephone, personal (expensive), online

Based on the theory, where does the majority of potential revenue fall, in the head or the tail? Where are the products with the majority of demand?

Majority of revenue in the tail, majority of demand in the head

What should marketing do to a products demand?

Make it more elastic to changes in price.

What is the Milton Friedman view of businesses role in the world?

Make money as long as it is legal and not fraudulent; no matter what the cost to society "There is one and only one social responsibility of business -- to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or "fraud."

What are potential problems with a focus on shareholders?

Makes people have a short term focus and you can mine profit by undermining the long term viability

Which of the following is NOT a form of customer engagement?

Making a purchase through an app

People with both the DESIRE and ABILITY to buy a specific offering define a ___________

Market

_______________ is the implementation of the marketing concept throughout an organization.

Market Orientation

Instead of just trying to get customers to buy what the firm as produced, a _______________ firm tries to offer customers what they need.

Market Oriented

Which term best covers external research investigating one of the three components of the market-customers, competitors, or the company?

Market Research

_____ is the portion of a market controlled by a particular company or product.

Market Share

When did a customer's view become the view of the entire company? (Customer = most important thing)

Marketing Company Era

During the ________________ all marketing activities were brought under control under one department to improve policy planning and try to integrate the firms activities. (Began to focus on the customer)

Marketing Department Era

_______ is the controllable variables the company puts together to satisfy its target market.

Marketing Mix

______ suggests that businesses will do better in the end if the concentrate on meeting customer's needs rather than on selling products.

Marketing Myopia

What best describes the modern view of marketing?

Marketing helps anticipate a customers needs

Types of Cost based pricing:

Markup (cost-plus)- adding a standard increase to the cost of a product Experience Curve- a planned reduction in price for increased production

What is the difference between mass-marketing and target marketing?

Mass marketing is a shotgun approach aiming in no particular direction, just trying to hit as much as possible. Target marketing is varying some element of the mix for a target market

What are the two things that are stressed in segmentation?

Meaningful groups and customized marketing mix

What are two things that are stressed re: segmentation?

Meaningful groups and customized marketing mix

Why is it dangerous to evaluate media solely based on CPM?

Media differs vastly in their abilities to communicate information

From which NAFTA country does IO import jewelry?

Mexico

What is the macro-micro dilemma?

Micro decisions aren't unethical create a macro problem. What may be beneficial to some companies or customer may be harmful to others or the environment.

Who said "There is one and only one social responsibility of business -- to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud?"

Milton Friedman; believed business' only concern should be profit, no matter what cost to society.

What is integrated marketing communications?

More direct marketing and less mass marketing.

CP - the unplanned static or distortion during the communication process, which results in the receiver getting a different message than the one the sender sent (consumer is distracted while watching the commercial and misses key points)

Noise

What are the parts of the communication process?

Noise can completely change the interpretation of the message (Walking Dead/KFC example of noise)

Which of the following is the best example of behavioral market segmentation?

Nycole's Spas advertise with stylish, female customers in mind

____ media is website, social media channel

OWNED

Typically, each data collection method matches to which research type?

Observation: Qualitative Ethnography: Qualitative Focus groups: Qualitative Personal Interviews: Qualitative Surveys: Quantitative Experiments: Quantitative Field Studies: Quantitative Technological Scanning: Quantitative

"back to school" sales are an example of...

Occasion Segmentation

Indirect Marketing Channel

One or more intermediary channels

With the rise in technology, ________________ began to take shape by building relationships with their clients at a larger scale.

One-to-one Marketing Era

What are the conceptual differences between inbound and outbound marketing?

Outbound - mail, telemarketing, reaching out to customers Inbound - customers find the business

_____ marketing tries to find customers and grab their attention in a specific moment

Outbound marketing - tiger transit ad

Which of the following is a conceptual difference between outbound and inbound marketing?

Outbound marketing tries to find where customers are.........

____ media is pay per click, display ads, social media ads

PAID MEDIA

What would an example of exploratory research be?

PBR hipster ex: had to figure out what was driving sales up (even though it was a good thing, they wanted to know why)

____ is the money charged for a product, or the sum of all the values that customers exchange for the benefits of having or using the product

PRICE

Whats the difference in paid, owned, and earned media?

Paid: Pay per click, Display ads, Paid Social Media Ads Owned: Website, social media channel Earned: Social sharing, mentions, comments, likes, reposts, reviews.

_______________ commission with _______________ salary is most likely to result in greater revenue for a company because salespeople are likely to take more risks.

Partial commission with base salary

3 methods of price discrimination are:

Pay what you want (least commonly used) Allowing people to pay less (any discount, rebate, contests) - reaches the bottom of the market Increasing the price and giving them a reason (Value added or Freemium); dynamic pricing (change in price based on situational factors) - reaches the top of the market

Know the 3 methods of price discrimination well.

Pay what you want (least commonly used) Allowing people to pay less (any discount, rebate, contests) - reaches the bottom of the market Increasing the price and giving them a reason (Value added or Freemium); dynamic pricing (change in price based on situational factors) - reaches the top of the market

In the wall street journal, Bjorn Lumborg claimed that people would buy electric cars if they were a good value. All of the following are reasons he may be incorrect, except which one?

People have selective perception

Which stage of the purchase decision process (i.e., General Model of Customer Experience) matches the activity or decision to be made?

Perceive a need : Need Recognition Decide who to talk to : Purchase Decision Form a consideration set : Information Search Choose an evaluative criteria: Evaluation of Alt. Decide when and where to buy: Purchase Decision Complain: Postpurchase

Which of the following budgeting methods is easiest?

Percentage of sales method

Which of following should never be used for a brand image?

Political issues

_____ consists of arranging for a market offering to occupy a specific perception relative to competing products in the minds of target consumers.

Positioning

_______________ consists of arranging for a market offering to occupy a specific perception relative to competing products in minds of target consumers.

Positioning

What are the positive and negative outcomes of brand extensions?

Positive - improved odds of new product success, positive feedback effects Negative - Brand dilution, negative feedback effects

What are the positive and negative outcomes of brand extensions?

Positive = new product will make your brand look even better Negative = damage your brand in the long run

______ allows you to charge at prices along the demand curve

Price discrimination (Different buyers, different prices to maximize profits.)

_____ is the responsiveness of demand to a change in PRICE

Price elasticity

Collecting data yourself is an example of a ____ data source?

Primary

Observational, survey, panels, experiments, IT and data mining - are all research approaches for ______ data collection?

Primary

What data source is typically more accurate?

Primary - you are doing your own research so you control everything you need

What data source is typically timelier?

Primary - you can really narrow down your search focus on exactly what you need instead of sifting through lots of data that is already there

Facts and figures that are newly collected for a project at hand are referred to as...

Primary Data

The major problem affecting digital marketing right now is ______.

Privacy

Making whatever products are easy to produce, and THEN trying to sell them to consumers (Narrow thinking)

Product Orientation

A ______ is a group of related products, that perform a similar function, are sold to the same customer group, are marketed through the same outlets or channels, or fall within given price ranges.

Product line

____ consists of all the product lines!

Product mix - all of the games by the angry birds company, including the croods

The 4 P's of Marketing

Product, Price, Place, Promotion

_____ is a market with broadly similar needs and sellers offering diverse ways of satisfying those needs

Product-Market

What era was focused more on making products to sell? (if we make it, we can sell it)

Production Era

______ can be considered a bundle of benefits.

Products

The neon yellow bracelet for the Livestrong brand, which could be seen by others who were unfamiliar with the brand, takes advantage of which part of STEPPS?

Public

What is a societal orientation (i.e., responsibility?)

Putting human welfare on the top of the priority list even before profits. This concept suggests that in order to sustain long term success

According to the elements of value pyramid, a problem with _____ will undermine other benefits.

Quality

Marketing _______________ measures profits generated by investments in marketing activities.

ROI (return on investment)

Different types of advertising appeals:

Rational - self interest Moral - right vs wrong Emotional - fear, humor Sex appeal Bandwagon appeal

What are the different types of advertising appeals?

Rational, Moral, Emotional , Sex

___ is the number of different people exposed to an ad

Reach

What is reach and frequency?

Reach is audience, frequency is how many times will the same person see it over and over

Match the variable___ to its category

Region: Geographic Zip code: Geographic Gender: Demographic Age: Demographic Marital Status: demographic Personality: Psychographic Values: Psychographic Usage rate: Behavioral Share of wallet: Behavioral

During the ________________ companies began to think about building relationships with their customers, so that those customers would continue to buy their products more than one time.

Relationship Marketing Era

Primary and secondary data sources: Which research approach is more common? Which is most suited for causal research?

Research approaches- observational, survey, panels and experiments, IT and data mining. Data collection- mail (small amount of response) telephone, personal (expensive), online Answer: surveys

Paramount decided to change their targeted market segment for the Bumblebee movie to families and young children as compared to the teen & young adult segments of the Transformers movies. Both segments could be profiled, located, and reached, and both have significant discretionary income. in addition, both tend to like different types of movies. However, the Bumblebee movie did not do that well, possibly because it did not appeal to the new segment, which means there may have been problems with which segment criteria?

Responsive.

According to our discussion in class, Starbucks, whose products are consumed in front of others, connected to a routine, make people happy, and wake people up, didn't have to advertise for their first 25 years in existence. This is because Starbucks was well positioned to take advantage of _______________.

STEPPS

_______ branding is combining TWO or more corporate brands, family brands, or individual brands

SUB branding

During the ____________ companies emphasized selling due to increased competition. (This is where we get the traditional depiction of sales men)

Sales Era

What can sales promotions accomplish?

Sales promotions can create short term sales and long term engagement

How should subway's sales promotions be designed?

Sales promotions should be infrequent and designed around cultural moments that bring the brand meaning alive.

Finding data that already exists is an example of a _____ data source?

Secondary

What data source is typically cheaper?

Secondary - data is already there so you don't have to use your own resources to find your own data

What data source to companies typically use first and why?

Secondary - time saving

What era did families trade or sell their access goods to local distributors? (Pre-industrial Revolution: Blacksmiths, tradesmen, etc)

Simple Trade Era

What are the eras of different orientations in the history of American business?

Simple Trade Era - families traded with each other Production Era (1860-1920) - Company focused on production of a few goods Sales Era (1920-1950) - Company emphasizes selling because of increased competition. Marketing Era - when all marketing activities are brought under one department. (marketing dept era, marketing company era, relationship marketing era, 1 to 1 era

Sharing a post from Wendy's, in which the brand is snarky with a customer, so that a sharer feels like s/he has inside information and is seen as "in the know", takes advantage of which part of STEPPS?

Social Currency

The Geico ad "hump day" which equates the Geico brand with calling Wednesday "hump day", could possibly link the brand to that commonly used term thereby making it salient of Wednesdays. This takes advantage of which part of STEPPS?

Social currency

What is STEPPS?

Social currency - people care about how they look to others, strong ties have access to valuable info and makes you look like an outsider (ex: live-strong bracelet) Triggers - the extent your message gets tied to something periodically, in a routine, are more likely to share (ex: Hump Day Geico commercial) Emotions - extent that it produces some kind of emotion other than sadness Public - people have a public piece to it and catch on Practical value - extent that it will solve problems Stories - anecdotes

STEPPS stands for:

Social currency: people care about what they look to others. They want to seem smart, cool, and in-the-know EX: Live strong bracelet Triggers: top-of-mind means tip of tongue. So, consider the context and grow your habitat so that people are frequently triggered to think about your product or idea EX: Hump day geico commercial Emotion: when we care, we share. Emotional content often goes viral. Focus on feelings rather than function Public: built to show, built to grow. The more public something is, the more likely people will imitate it Practical value: news you can use. Useful things get shared. Highlight incredible value and package knowledge and expertise so that people can easily pass it on Stories: information travels under what seems like idle chatter. Stories are vessels. Create a story that people want to tell

The view that organizations have an obligation to the general public and to also help preserve the environment, falls under _________

Societal Orientation

Types of Retailing

Specialty store: carries a narrow product line with a deep assortment. Department store: carries several product lines, each line operated as a separate department. Supermarket: large, low cost, low margin, high volume, self-service operation. Convenience store: carries a limited line of high turnover convenience products at slightly higher prices. Discount store: sells goods at lower prices with lower margins and higher volumes. Off-price retailer: sells merchandise bought at less than regular wholesale prices and sold at less than retail

As of 2021, what best characterizes the relationship between spending on traditional and digital advertising?

Spending on digital is equal to spending on traditional and it is likely to continue to increase.

What is an example of Societal Orientation?

Spicer's Music - Every decision made in the store is based off of two criteria: "How are we putting our customers first, and how are we positively affecting the world through music?"

Anyone who has interest/holds a stake in the company (employers, managers, stockholders, owners, customers) would be considered what?

Stakeholder

What factors influence price elasticity?

Substitutes - if people can buy another similar product, the demand is more inelastic (ex. if sharpies start to cost twice as much we can go buy an off-brand, so our demand for name-brand sharpies goes down [that's a bad example, but you get it right?]) Necessities - things you need are more elastic, because you'll have to keep buying them even if price changes % of disposable income - if the product makes up a larger % of disposable income, it is more inelastic

_____ are the most common research approach:

Surveys

The majority of REVENUE falls within the head or tail?

Tail

_______________ marketing states incremental benefit obtained from customer responding to marketing mix must be greater than incremental cost from targeting.

Target

_____ is a fairly homogeneous (similar) group of customers to whom a company wants to appeal to.

Target Market

International Trade System- Trade Barriers:

Tariffs/duties, Quotas and exchange controls, Non-tariff trade barriers

Rather than showing how to make a call, if an Apple Watch ad used recorded 911 calls of people using their Apple Watch to be rescued from harm, it would be an example of?

Testimonial

What does a demand curve tell us?

That there are different people willing to pay different amounts for the same product.

The "Nature of Each Promotional Tool" from the book refers to what?

The 5 main categories of promotion (promotion mix) covered in Ch. 11

What is marketing?

The art and science of co-creating value, .............a business philosophy (marketing concept) .............a business discipline (marketing ideas) .............a distinct unit in an organization (mktg dept) .............a set of business activities (market research)

Who usually wins in a price war?

The consumer who buys the product

What is the marketing mix?

The controllable variables the company puts together to satisfy this target

What is customer-based brand equity?

The differential effect of brand knowledge on consumer responses to marketing

Which of the following best represents the idea of customer-based brand equity?

The extent someone can recall a brand

What do customer lifetime value and customer equity allow a firm to do?

The firm can focus on attracting new customers as well as retaining and growing their current customers.

How is the market orientation represented?

The generation, dissemination, and user of the customer information across an organization

For which does the theory of the long tail predict?

The head has the products with the most demand. However, there is more overall revenue potential in the tail as compared to the head.

What idea stems from Shareholder Orientation?

The idea that if you are taking care of your shareholders you are taking care of the company.

The lac of profit in the introductory stage of the product life cycle is very often the result of _______.

The large investment cost in market development

The lack of profit in the introductory stage of the product life cycle is very often the result of____.

The large investment cost in market development.

Which of the following does the theory of the long tail predict?

The long tail represents niche markets that are not feasibly reached by major companies

What is a price?

The money charged for a product, or the sum of all the values that customers exchange for the benefits of having or using the product

What does this tell us about firm's advertising spending? Most likely, how do firms probably see advertising?

The more they spend on advertising the better the GDP does

What is the long tail?

The niche products that are less popular but satisfy the needs/wants of a specific population

What must marketers understand to communicate with customers?

Too often marketing communication is focused on immediate awareness, image or preference goals in the target market. Today, marketers are moving toward viewing communication as managing ongoing customer engagement and relationships with the company and its brand. Communication programs need to be developed for specific segments niches and even individuals.

Credit monitoring is high in intangibility whereas education is high in variability. What does this mean for the difference in marketing these services?

Universities can more easily take advantage of economies of scale.

How would marketing influence the "need recognition" stage of the product decision process?

Usually introduces a product, to show you that you have a need for it. (example in class was of the credit card that holds all your cards)

How would marketing influence the "purchase decision" stage of the product decision process?

Usually involves a call to 'buy now!'

What are the considerations in setting the price between a cost-based pricing versus a value-based pricing?

VBP - assess customers needs/value, determine costs that can happen, design product last to deliver value at target price CBP - design product, determine cost, set price based on cost, convince buyers of product value

Invalid argument for importance of pricing: A 1% change in price has a greater impact on profit than a 1% increase in brand equity.

Valid arguments: a) decrease in fixed cost, b) decrease in variable costs, or c) increase in sales

_________ influences the amount of the advantage the firm is able to capture and the length of time the advantage persists

Value Appropriation

Which of the following is TRUE of value-based pricing?

Value Based pricing is mostly product driven

________ influences the potential magnitude of the advantage.

Value Creation

What is the idea of value creation and appropriation?

Value Creation influences the potential magnitude of the advantage while value appropriation influences the amount of the advantage the firm is able to capture and the length of time the advantage persists.

What country has the highest rate of inflation in the world?

Venezuela

Which of the following is an example of a market research issue?

What image customers have of tesla automobiles

What is value?

What you get / What you give

Considering a person who lives in the country in which they were born, which situation is LEAST likely to make their nationality influential on what they buy?

When the nation scores poorly on international education scores.

When would this pricing format be best suited?

When the seller is trying to reduce the pain of payment.

What is marketing myopia?

When you define yourself too narrowly (railroad industry) - define yourself by the benefit

Manjoq Bhargava, the creator of 5 hour energy , happened upon the idea for his product at a trade show where he decided to replicate a large energy drink in a short-size drink. Which of the following is TRUE about this example?

Without a good product development process. Manjoq Bhargava is unlikely to come up with additional innovative and new products.

Are attitudes stable?

Yes

Would a product line have its own marketing strategy and what would an example be?

Yes - the angry birds line of games

Is the Superbowl considered a good buy?

Yes by Cost per impression

Carl's Jr. who has high brand awareness, ran a ad for one of its burgers with a sex appeal through a barely clothed model. Considering either of the two goals of advertising, would this ad be successful?

Yes the ad would be successful because it would generate attention

Branded Community

a community formed on the basis of attachment to a product or brand. ex. playstation community (sony)

What would cause an attitude to change?

a critical incident

life cycle stage segmentation

a demographic segmentation strategy in which product-market is grouped into segments based on the basis of age

beliefs

a descriptive thought that a person hold about something

Sustainable Marketing Concept

a development that meets the needs of the present without compromising the ability of the future generations to meet their own needs

psychographic segmentation

a form of market segmentation which divides customers into sub-groups based on shared psychological characteristics

"Too broad" definition

a lack of focus lead to problems such as product failure ex. Amazon

Targeting

a marketing strategy that involves segmenting the market, choosing which segments of the market are appropriate and determining which products that will be offered in each segment

motivation/motive

a need that is sufficiently pressing to direct the person to seek satisfaction

attitudes

a persons relatively consistent favorable or unfavorable evaluations, feelings, and tendencies toward and object or idea

marketing concept

a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors

Societal Marketing Concept

a principle that emphasizes that an organization must make strategic marketing decisions keeping in mind the consumer wants, the organizational needs and most important the long-term interests of the society

Tariff

a tax or duty to be paid on a particular class of imports and exports

What are the two characteristics that define a market?

ability and desire to purchase

Differentiating

actually differentiating the market offering to create superior customer value

cost-plus (markup) pricing

adding a standard markup to the cost of the product

_____ is any paid form of non-personal presentation/promotion of ideas, goods, or services, by an identified sponsor

advertising

Why would the super bowl ad be considered a bad buy?

advertising waste expensive

demographic segmentation variables

age, life cycle stage, gender, income, occupation, education, religion, ethnicity and generation

Intermediary Examples:

agents, wholesalers, distributors, and retailers

What is depth in relation to the product mix?

amount of variance in lines

service

an activity, benefit, or satisfaction offered for sale, it is intangible and does not result in ownership of anything

The _______________ bias is likely to lead individual to latch onto first piece of advice received.

anchoring ex. consider SPENT

Advertising

any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor

Product

anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need

positioning

arranging for a product to occupy a clear, distinctive, and desirable place to competing products in the minds of target consumers

Direct Investment

assembly facilities, manufacturing facilities

Warehousing

assumption of responsibility for the storage of goods

A _____ is a person's relatively consistent evaluations, feelings, and tendencies toward an object or an idea

attitude

A(n) _______ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

attitude

A(n) _______________ describes a person's relatively consistent evaluations, feelings, and tendencies toward an object or idea.

attitude

Over time ______ features become expected.

augmented features

"Free Shipping and Returns" is an example of

augmented product

What are the steps to the Brand Resonance Pyramid?

awareness - bottom meaning response resonance - top

What do customer lifetime value and customer equity allow a firm to do?

can focus on attracting new customers as well as retaining and growing current customers

What does inseparability mean for Chipotle, the quick service restaurant that serves a reduced menu consisting mostly of burritos and a reduced number of ingredients? Chipotle has to deal with _______________.

capacity issues

The unique role of firms is acquiring _______________ from customers

cash flow

The book " Principles of marketing through social media" suggests that brands should...

be simple and visual

Why was the Cambridge Analytica scandal not as problematic as one might think?

because the targeted ads did not affect voter behavior

What would be a downfall of correlation?

before you jump to the conclusion that one is calling the other - you need to consider a compound (third variable) that could be causing both

Non-tariff trade barriers

biases against bids, restrictive product standards, excessive host-country regulations and enforcement

A _______________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the market or seller of a product or service.

brand

Considering our class discussion, Greg Glassman may be worried about extending the CrossFit brand to protein shakes, wearable technology, and snack bars due to _______________.

brand dilution

The font used to spell iPhone is a

brand mark

Persuasive Advertising

building brand preference, encouraging switching to a brand, persuading customers to purchase now, creating customer engagement

Macy's rolls out a new function on their app that its customers can see inventory in local stores, but this function is only given to customers in special test markets so that store sales can be compared to other stores not in test markets. What type of research goal is this describing?

causal research

Weakness of PR:

can dramatize the company or product

_____ is when things are directly related and cause each other.

causation

High Low Pricing

charging higher prices on an everyday basis couples with frequent sales and other price promotions to increase sales traffic, create a low price image, or attract customers who will buy other goods at full prices

Target Marketing

choosing a particular segment and developing a marketing mix that will satisfy their wants and needs

The benefits of IMC are _______________ and _______________.

clarity and synergy

Geographic characteristics (indicators of marketing potential)

climate, country size, population density (urban or rural), transportation structure and market accessibility

Carly and Diane had worked out a thoughtful behavioral segmentation approach for their consulting business, and when they were looking at the specific individuals in the segments, they found a significant group of customers that appeared in more than one segment. They should...

combine the segments

multimodal transportation

combining two or more modes of transportation

introducing a new product into the market is called

commercialization

what is the variable amount in a salesperson's compensation?

commission

Informative Advertising

communicating customer value, building a brand and company image, telling the market about a product, informing the market of a price change

What does the current move by society (e.g.., regulators) mean for consumer privacy and data?

companies must start approaching consumer data as a privilege.

Impact of Culture on Marketing Strategy

companies that understand cultural nuances (differences) can: avoid expensive and embarrassing mistakes, take advantage of cross- cultural opportunities

Corporate Social Responsibility (CSR)

companies use cause-related marketing to exercise their social responsibility and build more positive images

sources of secondary data

company's internal databases, purchased from outside suppliers, commercial online databases, internet search engines

political environment

consists of political factors and government activities in a foreign market that can either facilitate or hinder a business' ability to conduct business activities in the foreign market

Vertical Marketing System (VMS)

consists of producers, wholesalers, and retailers acting as a unified system

Integrated Marketing Communications

consists of the specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools that the company uses to engage customers, persuasively communicate customer value, and build customer relationships

What is a shopping product and how does it affect the marketing mix?

consumer characteristically compares on such bases as sustainability, quality, price, and style ex: TOMS

The factors that shift a DEMAND CURVE:

consumer income price of related goods consumer taste: LEFT Shift - population and demographics expectations marketing

which of the following sets the upper limit for a product's pricing

consumer perceptions of value

Which of the following best represents the idea of conceptual fluency?

consumers ability to process brand meaning

Which of the following represents the idea of conceptual fluency?

consumers ability to process brand meaning

loyalty status

consumers can be loyal to brands, stores, and companies

Sociocultural Factors (indicators of marketing potential)

consumers lifestyles, beliefs and values, business norms and approaches, cultural and social norms, languages

what is the primary difference between advertising and public relations?

control over the message

Types of Products

convenience, shopping, specialty, and unsought

What is the customer-value hierarchy? What happens at each level of the hierarchy?

core-benefit- product itself basic product-product serves intended use expected product-what is assumed to come with the product (batteries, hotel wifi) augmented product-what the product/market offers that differentiates them from the market (free movie channels in hotel) potential product - the redefining variable that product offers (airbnb, residence inn changing the hotel game)

3 types of Vertical Marketing System (VMS)

corporate, contractual, and administered

______ is when things seems to be related because they occur at the same time or in similar ways

correlation

If ice cream sales and violent behavior increase and decrease at the same time, we would say these two phenomenon are _______________.

correlational

_____ setting prices based on costs of producing, distributing, and selling the product plus a fair rate of return for the company's effort and risk

cost based pricing

CPM is _______________.

cost per thousand impressions

What is CPM?

cost per thousand impressions

Cost-Based Pricing

cost-plus (markup) pricing and breakeven (target return) pricing

omnichannel retailing

creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping

Cultural Pollution

critics contend that the constant exposure to ads assaults our senses

convenience products

customer buying behaviors- frequent purchase, little planning, low customer involvement. Price- low. Distribution- widespread, convenient locations. Promotion- mass promotion by producer

shopping products

customer buying behaviors- less frequent purchase, much planning and shopping effort, comparison of brands on quality, price and style. Price- higher. Distribution- selective in fewer outlets. Promotion- advertising and personal selling by producer and resllers

unsought products

customer buying behaviors- little product awareness or knowledge. Price- varies. Distribution- varies. Promotion- aggressive advertising and personal selling by producer and resellers

specialty products

customer buying behaviors- strong brand preference and loyalty, special purchase effort. Price- high. Distribution- exclusive distribution in only one or a few outlets per market area. Promotion- more carefully targeted promotion by both producer and resellers.

The pleasure of fulfillment to consumption is _______________.

customer satisfaction ex. McDonald's = higher satisfaction because of speed despite poor service

Given the marketing concept and CLV, how should they see advertising?

good, but not personal enough.

Milton Friedman said that business should focus on profit without _______________ or _______________.

deception or fraud

CP - process by which receiver assigns meaning to the symbols encoded by the sender (consumer watches McDonald's commercial and interprets words and images it contains)

decoding

____ is using buyer's perceptions of value as the key to pricing

demand (value) based pricing

Sect. 1.1 b) Spiro ex.

demand influenced by salesperson

Of the promotion tools, _______________ is considered a two-way communication channel.

digital

which kind of marketing involves sending an offer, announcement, reminder, or other item to a person at a particular postal address?

direct-mail marketing

Segmentation is...

dividing the market into groups of people who have similar needs and wants

segmentation

dividing the market into groups of people who have similar needs and wants

cause-related marketing

does not help company more than case; they do the customer spending, represent < 1% of advertisement spending, and consumers have favorable attitudes toward cause-related marketing programs

Compared to brand image, brand awareness is ______.

easier to build

Compared to brand image, brand awareness is...

easier to build

economic environment

economic factors that affect consumer purchasing power and spending patterns

Demographic characteristics (indicators of marketing potential)

education, population size and growth, population age composition

If a product has many substitutes, is not a necessity, and is a low percentage of consumers' disposable income, it is likely that the price elasticity of demand is _____.

elastic

The pricing format - $850,000 on the right side of a house for sale - would be the best suited when house buying is an _______________.

emotional process

Communication process - the process of putting thought into symbolic form (McDonald's ad agency assembles words, sounds, and illustrations into a TV advertisement that will convey the intended message)

encoding

Customer _______________ does not encourage short-term focus.

equity

Daybreaker is a pre-work, early morning, and drug-free rave that represents an innovation that created new market space and changed consumption habits. Daybreaker was created by health-conscious ravers who had previously hosted raves. As discussed in class, we would say that Daybreaker was created by _______________.

experts

The objective of _______________ research is to gather preliminary information that will help define/identify the problem and suggest a hypothesis.

exploratory

What step would be "exploring what your problem is" in marketing research?

exploratory

Kevin Ozan, McDonald's chief finance officer, said that the "golden arches have to find a way to boost traffic" despite recent growth in same store sales. For this purpose, McDonald's may conduct focus groups with people who recently stopped going to McDonald's and then conduct a survey to identify the size of any trend that arises from the focus group research. Why type of research has McDonald's employed in this case?

exploratory research followed by descriptive

What is the purpose of price discrimination?

extracting a profit from the entire demand curve

Global Firm Disadvantages

faces increasing problems: highly unstable government and currencies, restrictive government policies and regulations, high trade barriers and corruption

Marketing's Impact on Society as a Whole

false wants and too much materialism, too few social goods, cultural pollution

CP - part of receiver's response communicated back to the sender (McDonald's research praising or criticizing the ad or its products)

feedback

product concept

focus on making the very best product possible, consumers favor products that offer the most quality, performance and features

production concept

focus on the production process, manufacturing efficiency ability to produce large quantities, consumers favor products that are available and highly affordable

_____ is the avg number of times a person is exposed to an ad

frequency

The Framework for Brand Community Development suggests that brands should _______________ to the community.

give up control

There are more problems in social media marketing (from mistakes, subversion, etc.) as compared to traditional advertising because companies are not _______________ to _______________ and _______________.

giving up control to employees and customers

If someone using a "pay what you want" strategy is worried about people paying too little or nothing at all and decides to set a small dollar amount for a minimum suggested donation, what is most likely to happen? The overall revenue will _______________, because people will _______________.

go down; only pay the minimum

When a company has a _______________, it represents a situation in which customers are likely to have a positive view of price discrimination.

good reputation

The pricing format - $1,799.99 on the right side of the listed product - would be best suited when the seller is worried about people _______________ the price.

haggling or negotiating

What is a specialty product and how does it affect the marketing mix?

have unique characteristics or brand identification for which enough buyers are willing to make special purchasing efforts ex: virtual reality headset

Marketing's Impact on Individual Consumers:

high prices, deceptive practices, high-pressure selling, harmful and unsafe products

societal marketing concept

holds the idea that a company's marketing decisions should consider consumer wants, the company's requirements, consumer long run interests, and society's long run interests

the new product development process usually begins with...

idea generation

New Product Development Process:

idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, commercialization

Prospecting

identifying qualified potential customers

Promotion

includes advertising, public relations, and promotional strategy

The lack of profit in the maturity stage of the product life cycle is often the result of _______________.

increased competition.

As exemplified by the amusement park experiment using ride photos, what does combining social responsibility (such as by offering giving 50% of profit to charity) with "pay what you want" pricing do? It _______________ the amount of profit.

increases

Social Media Marketing

independent and commercial online communication where people congregate to socialize and share messages, opinions, pictures, videos, and other content

Intermediary

independent groups or organizations within the channel that make the product available for consumption

exporting

indirect and direct

Exporting

indirect, direct

a 30 minute or longer advertising program on television that markets a single product is called

infomercial

secondary data

information that already exists, collected for another purpose

An advertisement which explains all benefits of a GoPro camera would probably be most useful for targeting consumers at the _______________ stage of the purchase decision process.

informative search (General Model of Customer Experience)

Josephine and her friends wait in line for three days outside a store to be first to get the latest Xbox. They are....

innovators

A doctor performing hip surgery on a patient illustrates how a service can be produced and consumed simultaneously. This is an example of _______________ service characteristic.

inseparability

A doctor performing hip surgery on a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic?

inseparability

cultural environment

institutions and other forces that affect society's basic values, perceptions, preferences and behaviors

What would a service product be?

intangible, inseparable, variable, and perishable products that normally require more quality control, supplier credibility and adaptability ex: auburn university, lawyer, haircut

in which of the following of the adoption process does a consumer seek information about a new product?

interest

crowdsourcing

inviting broad communities of people into the new product innovation process

competition based pricing

is a pricing method that makes use of competitors prices for the same or similar product as basis in setting a price

primary data

is an original data source, information collected for the specific purpose at hand

which of the following is true about customer relationship management (CRM)?

it consists of sophisticated software and analytical tools

A brand extension would backfire when:

it had brand dilution and negative feedback

As products gain more expected and augmented features, what happens?

it opens space for a basic product ex: gillett and harry's razors

Generally, price discrimination is _______________.

lawful

What is length, width, and depth in relation to a product mix?

length- number of products in each product line (down- P&G has lots of detergents in line) width- number of different product lines (across- detergents, toothpaste, diapers) depth- amount of variance in lines

Using the diffusion of innovation adopter categories and considering that 53% of Alabama citizens have gotten at least one dose of the vaccine, those who have not gotten the vaccine for the Covid-19, as compared to those who have, are probably _______________ educated.

less

Joint venturing

licensing, contract manufacturing, management contracting, joint ownership

joint venturing

licensing, contract manufacturing, management contracting, joint ownership

Managing exchanges with customers is called _______________.

marketing

Catalogs and Retail stores represent

marketing channels

usage rate

markets can be segmented into light, medium, and heavy product users

user status

markets can be segmented into nonusers, ex-users, potential users, first-time users, and regular users

Strengths of advertising:

massive reach at low cost per exposure, message repetition/expression, positive success signals,

when a product is the ______ stage, profits level off or decline because of increased marketing outlays to defend the product against competition

maturity

value-added pricing

means attached value-added features and services to differentiate the product and charge higher prices

CP - the communication channels through which the message moves from the sender to the receiver (television and specific television programs that McDonald's selects)

media outlets

Internal data collection example:

membership cards

Communication process - the set of symbols that the reader transmits (the actual McDonald's ad)

message

which generation do you think is the largest in the US?

millennials

sally bought copy paper from Staples last time. She now looking around for a better deal on recycled paper. This is an example of

modified rebuy

Strengths of sales promotion:

more attention/ engagement/ quick response, incentives to purchase,

Marketing should make a product's demand _______________ to changes in price.

more inelastic

The relationship between reach and frequency in terms of typical advertising (media) budgets is more _______________ means less _______________.

more reach means less frequency

According to the idea of feature fatigue, if a product has a lot of features then customers will be ________ interested in it before purchase and _________ satisfied after purchase.

more/ less

According to the idea of feature fatigue, if a product has a lot of features then customers will be _______________ interested in it before purchase and _______________ satisfied after purchase.

more; less

Political and Legal Factors (indicators of marketing potential)

national priorities, political stability, government attitudes toward global trade, government bureaucracy, monetary and trade regulations

technological environment

new technologies create new markets and opportunities

Are all companies now in the marketing era?

no

Can appeals such as fear humor or sex go too far?

no

Sect. 1.1 a) Conner ex.

no demand, cannot afford coat

Direct Marketing Channel

no intermediary channels

What is width in relation to the product mix?

number of different product lines (across- detergents, toothpaste, diapers all under P&G brand)

What is length in relation to the product mix?

number of products in each product line (down- P&G has lots of detergents in line)

Pricing is so important because:

o Benefits/cost o affects value creation idea & attractiveness of the market offering; once you pass a certain price, people hesitant to buy on impulse; price floor-no profits below this price; price ceiling - no demand above this price o Pricing is the reflection of everything you do as a business •If you're doing well (innovating, creating brand equity), your pricing reflects that

Which of the following about attitudes is false?

one advertising campaign about Kia being very high quality is likely to result in attitude change in most people.

Global Firm:

operates in more than one country, gains research and development, production, marketing, and financial advantages that are not available to purely domestic competitors

Which of the following is defined as introducing a new product at a relatively low price with the intention of establishing a large market share before competitors can establish themselves?

penetration pricing

What does the Pepsi Taste Challenge tell us about the power of branding?

people like coke better because of the brand quality

walking off the airplane at the end of a flight is an example of

perishability

Personal Selling

personal customer interactions by the firms sales force for the purpose of making sales and building customer relationships

________ is personal customer interactions, by company sales force, for the purpose of engaging customers, making sales, and building customer relationships; includes: sales presentations, trade shows, incentive programs

personal selling

making individual presentations to consumers for the purpose of promoting sales and building customer relationships

personal selling

Which of the following is NOT a way that personal selling is distinguished from mass marketing promotions?

personal selling is proven to be the most persuasive technique

Direct Marketing

personalized, customized and requests an immediate response

natural environment

physical environment and natural resources needed as inputs by marketers or affected by marketing activities

multimodal transportation examples:

piggyback, fishyback, trainship, and airtruck

Good value pricing example

planet fitness offers great exercise for an affordable price and no contracts

what kind of macro-environmental force would be most important to this venture in the US (coca cola-aurora)

political/legal

sally posted a selfie on instagram wearing her new Tom Ford sunglasses. What stage of the purchase decision process is she in?

post purchase behavior

Simone bought an expensive luxury vehicle when she hadn't planned on purchasing anything. the next day, Simone experiences cognitive dissonance. Which stage of the buyer decision process (i.e., General Model of Customer Experience) does Simone's dissonance relate?

post-purchase

Firms should view advertising as a _______________.

potential investment opportunity

Sharing information about the Yeti cup because it is so good at keeping drinks cold takes advantage of _______________ in STEPPS.

practical value

In the _______________ step of the selling process, a salesperson learns as much as possible about a prospective customer before making a sales call.

preparation

In which step of the selling process does a salesperson learn as much as possible about a prospective customers before making a sales call?

preparation

Sales promotions can accomplish or create _______________ and _______________.

short-term sales and long-term engagement

Car dealership commercials, which focus on sales promotions to incentivize people to purchase a car right now, would probably be most useful for targeting consumers at the _______________ stage of the purchase decision process.

purchase decision (General Model of Customer Experience)

The _____ is how customers go through stages of decision making and purchasing:

purchase decision process

What is a convenience product and how does it affect the marketing mix?

purchase frequently, immediately, and with minimal effort ex: Q-tips

market share

ratio of sales revenue of firm to total sales revenue of all firms in industry; has a negative relationship with customer satisfaction; increases ROI through economies of sales, market power, better employee talent, but not the ability to charge more (higher profits)

Demonstrations, testimonials, and slice-of-life commercials all represent which kind of appeal?

rational

Strengths of public relations:

reaches the people who avoid ads and sales people

CP -the party receiving the message sent by another party (customer who watches McDonald's ad)

receiver

good value pricing

refers to offering the right combination of quality and good service at a fair price

As exemplified by Chevrolet, Levi's, and Coca-Cola, brand image needs to be _______________.

relatively consistent over time

CP - reactions of the receiver after being exposed to the message (reaction to commercial..eat at McDonald's next time or hum the "I'm lovin it" song)

response

A strong brand image and equity can _______________.

rewire your brain

weakness of personal selling:

sales force size, long-term commitment, the most expensive tool - 3 times advertising expenses

_____ are short-term incentives to encourage purchase; includes: discounts, coupons, displays, demonstrations, contests

sales promotions

What do constant sales promotions do for brand value (meaning)?

sales promotions decrease the value of a brand

decline stage of product life cycle

sales- declining, costs- low, profits- declining, customers- laggards, competitors- declining number, marketing objectives- reduce expenditures and milk the brand

Introduction stage of product life cycle (PLC)

sales- low, costs- high, profits- negative, customers- innovators, competitors- few, marketing objectives- create product awareness and trial

maturity stage of product life cycle

sales- peak, costs- low, profits- high, customers- middle majority, competitors- stable but beginning to decline, marketing objectives- maximize profit while defending market share

growth stage of product life cycle

sales- rapidly rising, costs- average, profits- rising, customers- early adopters, competitors- growing number, marketing objectives- maximize market share

benefit segmentation

segments divided according to different benefits that consumers seek from the product

Occasion segmentation

segments divided according to occasions, when the buyers: get the idea to buy, make their purchase, use the purchased item

As discussed in class, _______________ is likely to cause consumers to incorrectly interpret numbers if the correct answer goes against performed beliefs.

selective interpretation

Consumers are likely to remember good points made about a brand they favor and forget the good points about competing brands refers to _______________.

selective retention

_______ means that consumers are likely to remember good points made about a brand they favor and forget the good points made about competing brands.

selective retention

Mazlow's Hierarchy of Needs

self-actualization needs: self-development and realization. Esteem Needs: self-esteem, recognition, status. Social Needs: sense of belonging, love. Safety Needs: security, protection. Physiological Needs: hunger, thirst

Types of Service Levels

self-service: serve customers who are willing to perform their own locate-compare-select process. limited-service: carries more shopping goods about which customers need information, provides more sales assistance. full-service: carries more specialty goods, assist customers in every phase of the shopping process

The _______________ concept is that consumers will not buy enough of a firm's products unless they (the firm) undertake large-scale persuasion/promotion efforts.

selling ex. Star Wars = customers determine/define the product's value

Downstream partners

serve as distribution channels that link the firm and its customers

market-skimming (price skimming) pricing

setting a high price to skim maximum revenues from the segments willing to pay the high price, company makes fewer but more profitable sales

market-penetration pricing

setting a low price to attract a large number of buyers and a large market share

break-even (target return) pricing

setting a price to break even on the costs of making and marketing a product, or setting a price to make a target return

Which appeal in advertising can possibly go too far?

sex

Which variable would tell us whether a low spender with our company is a high spender with someone else?

share of wallet

For most people a new car is an example of

shopping product

According to the theory of the long tail, what is the best path to pursue for band serving a niche market who is trying to reach their chosen market segment.

sign on with a web-based music streaming service such as Spotify

According to the theory of the long tail, what is the best path to pursue for band serving a niche market who is trying to reach their chosen market segment?

sign on with a web-based music streaming service such as Spotify

The book's "Principles of Marketing through Social Media" suggests that brands should be _______________ and _______________.

simple and visual

A reference price is a standard in customers' minds of the fair value/price of a product that is influenced by _______________ such as a small or large number nearby.

situational factors

Sometimes people don't make a purchase, even when they intend to do so. Which of the following was a reason we discussed for why the intention-purchase link might be disrupted?

situational factors

Sometimes people don't make purchases when they intend to, why is a reason we discussed for why the intention purchase link might be disrupted?

situational factors

A _____ strategy is defined as setting an initially high price and using gradual, timed price drops to make as much profits as possible over time by maximizing how much is made from each sale.

skimming

A _____ strategy is defined as setting as initially high price and using gradual, timed price drops, to make as much profit as possible over time by maximizing how much is made from each sale.

skimming

Which product would best take advantage of Maslow's Hierarchy of needs?

smartphone that promotes security and reliability when it's released but then uses personality imagery after it's been on the market a while

psychographic segmentation variables

social class, lifestyle, personality

Sharing a post from Wendy's, in which the brand is snarky with a customer, so that a sharer feels like he/she has inside information and is seen as "in the know," takes advantage of _______________ in STEPPS.

social currency

which of the following is most likely an advantage of social media marketing?

social media are targeted and personal

Gillette's advertisement is an example of _______________.

social orientation

As exemplified by Donald Trump's brand, brand extensions that all use the original brand will do what in the face of ongoing problems?

some of the brand extensions will suffer from the problems

The greater the connection between a brand and brand extension, the greater the likelihood that...

success of the brand will help the brand extension

a company's external source of new product ideas includes its

suppliers

External data collection:

surveys or data wear

The _______________ bias is likely to only talk to people successful at multi-level marketing ventures when wanting to start a multi-level company.

survivor

Price wars are usually harmful to firms because non-loyal customers will switch to whichever product has a lower price, and loyal customers

take advantage of lower prices which usually diminishes profit.

What is a durable good and how does it affect the marketing mix?

tangible good that normally survives many uses-normally require more personal selling and service, command higher margin and require more seller guarantees ex: cell phones, clothing, refrigerator

What is a non durable good and how does it affect the marketing mix?

tangible goods that are normally consumed in one or few uses lower margins, convenienced based, needs to be available in many locations, advertised heavily ex: 5 Hour Energy, paper towels

a company that sells only one product line to one industry with customers in many locations would typically use a:

territorial sales force

Price

the amount of money charged for a product or service, or the sum of the value that customers exchange for the benefits of having or using the product or service

Frequency differs from reach in that it is

the average number of times an audience sees an advertisement

Place

the company's decisions on where a company sells the product and how it delivers the product to the market

what is the most important consumer buying organization in society?

the family

In the beginning of the buying process, which member of the buying center is most important to the salesperson?

the gatekeeper

Inbound marketing is usually measured by:

the number of people that talk about the product after the business explains a product to people that are not new to the business.

What is market share?

the portion of a market controlled by a particular company or product.

perception

the process by which people select, organize, and interpret information to form a meaningful picture of the world

Behavioral segmentation

the process of dividing the total market into smaller homogenous groups based on customer buying behavior

Qualify

the process of identifying leads and screening out poor ones

According to our class discussion, what is the best description of the overall goal of market research and that demonstrates value of a company's market research?

the quality of market insights it provides

According to our discussion in class, which of the following is the best description of the overall goal of market research and demonstrates the value of a company's market research?

the quality of the market insight it provides

Follow up

the sales step in which a salesperson follows up after the sale to ensure customer satisfaction and repeat business

Handling Objections

the sales step in which a salesperson seeks out, clarifies, and over comes any customer objections to buying

Closing

the sales step in which the salesperson asks the customer for an order

Preapproach

the sales step in which the salesperson learns as much about a prospective customer before making a sales call

Approach

the sales step in which the salesperson meets the customer for the first time

Presentation and Demonstration

the sales step in which the salesperson tells the "value story" to the buyer, showing how the company's offer solves the customers problems

Airlines use dynamic pricing, which means that customers are charged different amounts for...

the same product

which of the following is a disadvantage of using social media for marketing?

they are largely user controlled

which is true of salespeople?

they represent a company to its customers by communicating and selling

What is an unsought product and how does it affect the marketing mix?

things you buy because you absolutely have to-you don't want to buy-distribution is going to be limited ex: coffins, life insurance

How many types of marketing research are there?

three

With regard to "pay what you want" pricing, the product to least likely to work would be _______________.

tickets to a movie theatre (ex. of those that would work = coffee at a coffee shop, dinner at a restaurant, or tickets to a museum)

convenience product examples:

toothpaste, magazines and laundry detergent

True/False: If a grocery store looks at their data and finds that an increase in consumer spending on berries happens when days are more windy, we can safely deduce based on data alone that the amount of wind on a given day predicts the amount of berries demanded, at least for now.

true

True/False: Manof Bhargava, the creator of 5-Hour Energy, happened upon the idea for his product at a trade show where he decided to replicated a large energy drink in a shot-size drink. Without a good product development process, Manoj Bhargava is unlikely to come up with additional innovative and new products.

true

True/False: Of the marketing mix, processes is not one of the P's.

true

True/False: Regarding high involvement (extensive problem solving), a product can create high involvement when it represents a customer's social identity.

true

True/False: SWOT analysis requires critical thinking because it pertains to trends.

true

True/False: Setting lower prices is typically not a good way to create competitive advantage.

true

True/False: The amount someone is willing to spend for a blue shirt with an Apple logo as compared to a plain blue shirt best represents the idea of customer-based brand equity.

true

True/False: We can characterize the role of customers in the new product development process as, "relying too much on customers for new ideas can hurt a firm."

true

True/False: With regard to Maslow's Hierarchy of needs, any product can be positioned to incorporate any need across the pyramid.

true

True/False: With regard to Maslow's Hierarchy of needs, people with low self-esteem prefer ideal self-concept representations.

true

True/False: Not only one company can have true competitive advantage in a category.

true; customers in markets want many different things

The goal of most marketing research is to:

uncover unique and actionable customer and market insight

Which of the following is NOT a potential problem of advertising during the Super bowl?

underexposure

targeting strategies

undifferentiated (mass) marketing, differentiated (segmented) marketing, concentrated (niche) marketing, micro-marketing (local and individual marketing)

Since covid, zoom would be considered an _______________ competitor.

unexpected competitor

supply chain

upstream partners supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service

Can you identify an appeal based on seeing an ad?

usually

a brand's ______ is the set of benefits that it promises to deliver to consumers to satisfy their needs

value proposition

The Cambridge Analytica scandal was not as bad as one might expect, because the targeted ads did not affect _______________.

voter behavior