MKTG 445 Midterm
Which phases constitute the A3R3 Funnel?
Awareness, Acquisition, Activation, Retention, Revenue, Referral
... marketing involves a more direct channel of distribution.
B2B
Consumers can buy a specific brand for the following reasons:
Brand facilitates connections with other consumers. Brand can be used to show off. Brand is connected to the consumer's self.
What formats are available for your Facebook ads?
Carousel Slideshow Video Photo Playables Collection Messenger Stories
Marketing strategy and action decisions answer the question:
How do we get there?
What is true about discontinuous innovations?
Require new learning
Brands can be used as identity signals.
True
Some consumers feel a sense of connectedness with a brand and fellow brand users (i.e., they show high communal-brand connection, CBC). For these consumers, is it advisable to combine high advertising tone (AT: e.g., "Our new winter jackets will keep you warm, cozy and in style") and calls to action (CTA: e.g., "Go here to shop for your new winter outfit now") to stimulate engagement?
Yes, in this group the combination of high AT and high CTA results in highest engagement.
The dimensions of brand knowledge are:
brand awareness and image
Vertical marketing systems consist of:
manufacturers that have forward integrated and retailers that have backward integrated.
Customization limits the potential for economies of scale but makes the product more appealing to a larger audience.
True - Economies of scale will be largest if you only produce a single product. This product, however, may not appeal to everyone.
To reduce the uncertainty among consumers that comes with introducing a new product, entrepreneurs can use informational advertising or comparison marketing.
True
How many steps does the Facebook ad creation process involve?
7
You have talked to 150 potential customers of your new product, and these people spend an average of $60 per year on a similar product. Each consumer would also indicate how likely they were to purchase your product. Responses were:Very unlikely: 30Unlikely: 10Neither unlikely nor likely: 20Likely: 55Very likely: 35 If 25,000 families live in trade area, how large is the extent of your opportunity, according to the voice-of-consumer approach?
900,000
Bricolage refers to thinking of a desired outcome and then coming up with a plan to achieve that outcome.
False- Bricolage refers to taking existing resources and experimenting, tinkering, repackaging, and/or reframing them to be used in a way they were not originally designed or conceived.
While marketing is part of business plans, a marketing plan is also meant to stand alone.
True
Using a systematic approach to market segmentation reduces the risk of neglecting segments and making wrong inferences.
True - A cornerstone of strategic management is to work systematically, relying on established theories and frameworks.
Brand experience is a concept that has become an important KPI (key performance metric) for many brand managers.
True - Brand managers are concerned with creating cognitive, affective, sensory, behavioral and relational brand experience.
From the viewpoint of the consumer, new products can be classified depending on how much behavioral change or new learning is required. How are the three classes called?
continuous dynamically continuous discontinuous
The overall purpose of market segmentation and targeting is to answer the question of "who to serve," which at its core:
enables the marketer to effectively and efficiently use resources by developing separate marketing mixes for distinct groups of buyers who have different needs, characteristics or behaviors.
Besides creating brand awareness and favorable brand attitudes, a main objective of digital outbound marketing is to _________.
encourage brand action
If you are unsure about the exact market share estimate, you can modify the typical opportunity assessment approach and create multiple ______________.
market share scenarios
When a marketer attempts at describing market segments based on survey data, it is important that the sample is representative of the larger population of customers (e.g., US citizens).
True- If the sample is biased in a specific direction, segment size estimates might be misleading, potentially resulting in poor marketing decisions.
To improve segmentation outcomes, one can combine two or more variables.
True- It is often advisable to combine two or more segmentation variables to enhance precision.
The uniqueness of a product can be based on different things. Which is not one them?
Uniqueness is in the sales price
Marketers need to optimize the presence of keywords in their online text copy based on:
Value to lead Propensity to convert Competition Search volume
According to the text, SEO is about optimization for which website user?
search engines
You have talked to 100 potential customers of your new product, and these people spend an average of $150 per year on a similar product. Each consumer would also indicate how likely they were to purchase your product. Responses were:Very unlikely: 5Unlikely: 15Neither unlikely nor likely: 50Likely: 25Very likely: 5 If 25,000 families live in trade area, how large is the extent of your opportunity, according to the voice-of-consumer approach?
25,000*(30/100)*$150= $1125000
The two main objectives of an entrepreneurial marketing plan are (1) to establish how the entrepreneur will compete and operate in the marketplace and (2) how the entrepreneur can secure funding.
False- The two main objectives of an entrepreneurial marketing plan are (1) to establish how the entrepreneur will compete and operate in the marketplace and (2) to assign costs to each strategy element.
Two perspectives on eWOM are valence and sentiment.
False- The two perspectives are valence and volume.
What attracts customers to similar competitors is irrelevant for entrepreneurs; they should only be concerned with what attracts customers to their product.
False- What attracts customers to similar competitors is very relevant for entrepreneurs.
Despite sharing many similarities, problem inventory analysis is easier for idea generation than focus groups because it is easier to relate known products to suggested problems.
True
Entrepreneurial marketing is challenging because, among other things, the entrepreneur must establish initial price points.
True
Entrepreneurial marketing is challenging because, among other things, the entrepreneur must obtain their "first customer." Correct!
True
Registration and purchase are two examples of conversions.
True
When online display advertising increases both online and offline sales, we can say it exerts:
own and cross effects
Which tool can be used to utilize consumer perceptions of product categories and brands within that category for positioning purposes?
perceptual mapping
For startups, the marketing budget typically is between _____ and ____ % of forecast sales.
12, 20
value-based pricing
1) focus on one specific segment 2) compare your product to the next best alternative 3) determine which feature is unique in your product compared to the next best alternative & put a dollar amount to it 4) add that differentiated worth amount to the price of the next best alternative and you've got your value-based price
Which phase of the A3R3 funnel is not included in the pirate funnel?
Awareness
SEO involves online and social media optimization.
False- SEO involves on-site and off-site optimization.
The McMullen-Shepherd model discusses two stages of entrepreneurial action. Which of the following statements are correct?
E. Stage 1 is the realization an opportunity exists for someone.
Which of the following contents do belong into an entrepreneurial marketing plan?
Executive summary Marketing mix Customer experience design Marketing goals and objectives Situation analysis Budgeting
Vernon Inc. would like to set the best price for a new product. The firm conducts a study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research.
Experimental
Entrepreneurial marketing is challenging because, among other things, the entrepreneur must manage existing channels of distribution.
False
Lily and her marketing team are considering which segment they will target for their marketing mix efforts as a local coffee company. One team member advocates that targeting commuters is the best option, as the company's production and staff are tailored toward quickly and efficiently brewing coffee for their customers - a need which is experienced by the commuter segment. This team member is addressing the criteria of ___________that should be discussed in targeting decisions.
Feasibility of targeting the segment
According to the text (4 Telltale Signs of a Bad Business Opportunity), what are signs of a bad opportunity?
History repeats itself Entrepreneur acts out of desperation Big talk but little action
Essential characteristics of a good opportunity are:
It generates a willingness to pay greater than the costs of production. It fits with capabilities of the entrepreneur.
Please indicate which is not a criterion for selecting target segments:
Lifestyle
What does the acronym PEST stand for?
Political Economic Socio-cultural Technological
What advertising appeals can be differentiated?
Positive emotional Informational Negative emotional
Which is not a digital marketing instrument? Social media marketing Print ad Search engine marketing Email marketing Location-based marketing communication Affiliate marketing Display ad
Print ad
Voice of Customer
Projected revenue= # customers * % likely & very likely to buy * $ willing to spend
To draw a perceptual map, information is needed on:
Purchase criteria deemed important by consumers. What an "ideal" brand would offer. Consumer ratings of existing brands on purchase-relevant criteria.
Indicate which combination of purchase criteria is used in most perceptual maps:
Quality & Price
Marketing goals should be:
SMART
Core audience uses five criteria to define your target audience. Except for "Connections," these criteria should sound familiar. In which context have you seen them before?
Segmentation
A "hook & bait" business model:
Sells a free or cheap basic product but high-margin refill or complementary products.
criterion for selecting target segments
Size of segment Cost of reaching a segment Competitive position growth of segment compatibility of segment w/ offering
Which of the following does not belong in this list? Earned media Owned media Paid media Social media
Social media
Which digital marketing strategies exist? Digital inhouse marketing Social media marketing Shared media marketing B2B marketing Digital inbound marketing Digital outbound marketing
Social media marketing Digital inbound marketing Digital outbound marketing
Which of the following is not a phase of the overarching marketing process?
Sorry, you can't trick me. All of the possible answer choices are phases of the overarching marketing process.
Which of the following contents do not belong into an entrepreneurial marketing plan?
Sorry, you can't trick me. All of the possible answer choices belong into a good entrepreneurial marketing plan.
Which of the following statements is correct about targeting?
Targeting is the process of evaluating each market segment's attractiveness & selecting one or more segments to enter
A "less [quality] for more [price]" positioning statement is undesirable for entrepreneurs.
True
A common trend for entrepreneurs is to focus on growth first, followed by re-adjusting their strategy to become more profitable.
True
A perceptual map that is based on more than two dimensions is more complex to analyze but offers a greater potential to identify spots for unique positioning.
True
Trinity is advocating for keeping her company's retail locations open. Part of her arguments centers on the benefits that retail locations provide, which includes facilitating consumers in obtaining immediate gratification and _______________:
allowing the opportunity to touch
Ideally, activities that are rewarded should __________ __________ for the business.
create value
Products with a "high quality" positioning should offer more customization options and have a deep product line.
True
You believe you can reach a market share of six percent in a market that is estimated to be $2,000,000 next year.
$2M * .06 = $120,000
The best method to get an unbiased estimate of consumer willingness to pay for a given product is:
(Choice-based) Conjoint analysis
Pirate Funnel
-Acquisition: getting the users onto the site/app organically or inorganically -Activation: showing them the value of the product and getting them hooked -Retention: getting users to come back and creating return users through things like emails, push notifications, and social media -Referral: getting the users to know your product so well that they tell others about it and to use it (word of mouth) -Revenue: monetizing users and finding out what makes them want to pay to be able to make a profit
The "Product Opportunity Evaluation Matrix" (POEM) is comprised of five forces that drive market opportunity, 1) customer, 2) product, 3) timing, 4) competition, and 5) finance.
True
An entrepreneurial opportunity could stem from
A new product for a new market A new market A new product for an existing market
Which is not a growth hacking strategy?
Ambush marketing
What is growth hacking?
An umbrella term describing strategies focused on growth.
The impact of a marketing instrument on sales over time is called:
Carryover effect
What are the pricing parameters that (typically) determine the range of a sales price for a newly developed product?
Consumer willingness to pay Costs of production Competitors' prices
Important behavioral manifestations toward a brand in social media are:
Content creation Content dissemination
The impact of a marketing instrument on sales in another channel is called:
Cross-effect
Entrepreneurial marketing is easy because, among other things, the entrepreneur has total freedom of selecting their "first customer."
False
Ginny is determining where she will place her product or brand on store shelves so as to grab consumer attention and generate sales. As such, you would say that she is engaged in determining her company and product's positioning.
False
The "product opportunity evaluation matrix" (POEM) is comprised of five forces that drive market opportunity, 1) sales price, 2) size, 3) color, 4) material, and 5) durability.
False
A "more for more" statement is more desirable than a "more for less" statement.
False - A "more for less" statement is more desirable yet extremely difficult to achieve.
A "less for much less" positioning statement is undesirable for entrepreneurs.
False- "Less for much less" will resonate with some market segments.
Observable proxies are perfect substitutes for non-observable segmentation variables.
False- Although observable proxies are good substitutes for non-observable variables, they are by no means perfect.
Offering a product bundle is attractive because your profit margin is always higher, compared to selling products individually.
False- Although profit margins are typically smaller for bundles, you may end up making more profit by either upselling consumers or increasing total demand.
Brainstorming is a written form of brainwriting.
False- Brainwriting is a written form of brainstorming, not the other way around.
A marketing manager suggests that the company use the results of a survey conducted by the company last year to address an emergent problem the organization is facing this year. The manager is therefore suggesting the use of primary data to answer the problem at hand.
False- Data that already exists and was collected for a different purpose is called secondary data, not primary data.
Examples of owned media are display ads and digital signage.
False- Display ads and digital signage are examples of paid media.
Gamification can be described as the marketing of esports.
False- Gamification can be described as the application of typical elements of game playing to make marketplace offerings more engaging.
Good storytelling should leave little room for interpretation such that consumers will get all brand facts as intended.
False- Good storytelling leaves room for consumers' fantasies such they can co-create the story. This will improve narrative processing, thereby linking the brand closer to the self.
Marketing research is the function that links the consumer, customer, and public to the marketer through segmentation.
False- Marketing research is the function that links the consumer, customer, and public to the marketer through information - not segmentation.
Positioning is concerned with the position a product occupies on a retail shelf.
False- Positioning is concerned with the place the product occupies in consumers' minds relative to competing products.
Primary data is of primary importance to entrepreneurs as it exists already and is thus readily available.
False- Primary data does not yet exist; data that exists already and is thus readily available is called secondary data.
The goal of segmentation is to reduce uncertainty among consumers that comes with a new brand and product.
False- Segmentation is about dividing a market into distinct groups of buyers who have different needs, characteristics or behaviors and who might require separate marketing strategies or mixes; it's not about reducing consumer uncertainty.
When demographic, psychographic, and other variables ares used to describe market segments, statistical analyses are of little value.
False- Statistical analyses can tell us whether observed differences among segments are 'true' (i.e., significant).
Halo Top ice cream, a recent start-up business with more limited financial resources than the competition, is determining which targeting strategy they will use for their organization. From their research, it appears that consumer wants greatly vary in relation to ice cream and that there is, indeed, a diverse range of potential ice cream varieties that can be produced. Given this information, Halo's best choice of targeting strategy is to select no more than two market segments in order to be successful.
False- With many different tastes and production options, Halo Top should target many segments, since there is a good chance they manage to satisfy multiple consumer groups.
The difference between reach and impressions is that impressions only count unique visitors.
False-The difference between reach and impressions is that reach only counts unique visitors.
Which of the following is true of focus group discussions?
Focus group discussions are typically lead by a moderator, who should provide unbiased questions to the group to guide their discussion.
Typically, which resources are scarce when entrepreneurs form a new venture?
Money Time Personnel
When advertising for their new product, entrepreneurs need to decide how their ad should appeal to consumers. For new products, which advertising appeal will likely fail to get the most favorable response?
Negative emotional
Some consumers do not feel a sense of connectedness with a brand and fellow brand users (i.e., they show low communal-brand connection, CBC). For these consumers, is it advisable to combine high advertising tone (AT: e.g., "Our new winter jackets will keep you warm, cozy and in style") and calls to action (CTA: e.g., "Go here to shop for your new winter outfit now") to stimulate engagement?
No, in this group the combination of high AT and high CTA results in lowest engagement.
What can - and often does - go wrong when entrepreneurs segment the market?
Not all market segments are identified. Overreliance on ease of identifying segments.
Which is not an imitation strategy?
Not me
What type of innovation occurs most frequently?
Ordinary innovations
The impact of a marketing instrument on sales in the native channel is called:
Own-effect
Understanding consumers and competitors is important for:
Positioning
The impact of a marketing instrument on the responsiveness to another marketing instrument is called:
Spillover effect
McMullen-Shepherd model
Stage 1: realization an opportunity exists for someone Stage 2: determining whether it's an opportunity for you or for someone else
Facebook Ad Steps
Step 1: Choose Your Objective Step 2: Selecting the Audience Step 3: Decide Where to Run the Ad Step 4: Set a Budget Step 5: Pick a Format Step 6: Place the Order Step 7: Measure and Manage Ads
Which of the following variables does influence the degree of direct distribution?
Strategy-related variables Transaction cost variables Product-related variables
According to VentureChoice.com, what is the difference between an idea and an opportunity?
There aren't too many competitors You can make a profit from it Customers will buy it You can build it and get into the market
Forming opportunity beliefs often requires creative mental leaps based on superficial similarities and structural similarities between the source (such as the market) and the destination (such as the technology).
True
Marketing research can be used to examine if consumers accept the product but also what is the most appropriate distribution strategy or what price should be charged.
True
If the first mover is seen as a "founder," imitation is not advisable.
True- First movers have an advantage over imitators if they are seen as "founders."
Narrative processing, the process whereby consumers think about the brand using vivid imagery, sequential plots and characters, can help the brand connect with the consumers' self.
True- Narrative processing links a brand closer to the self.
Primary data is of primary importance to entrepreneurs as it can be precisely tailored to their needs and requirements.
True- Surveys, experiments and other forms of collecting primary data can be designed up to the entrepreneurs standards.
Marketers can frame their product as a bundle simply by putting a price tag on (some of) its components (e.g., selling all songs of a music album separately). If the 'component prices' are deliberately chosen to be high, bundling can be effective already because it makes the sales price for the entire product look more favorable.
True- This effect is based on the psychology of pricing as it changes consumers' reference points to what they save from purchasing 'in bulk' and away from how much money they have to give away. A loss is framed as a gain.
In a "freemium" business model, a company develops a free product version for one segment, and a (typically subscription based) payable, superior product version catered to another segment.
True- think Spotify
Which of the following questions can be impossible to answer for new ventures?
Where have we been?
Tom Haverford is an aspiring entrepreneur living in Pawnee, Indiana. He has generated a number of potential business and product ideas, but needs input from consumers before moving forward with his ideas. He is therefore currently in the process of presenting his product ideas physically and/or symbolically to groups of target consumers, which means he is engaged in the _________ stage as part of the new product development process.
concept testing
TechUp is engaged in conducting marketing research and you are their marketing research director. The startup has identified that they want to know how to attract a new target market. You and your team of marketing researchers have therefore defined your marketing research problem, which you have defined by searching for existing sources of information and research in journals and publications, and your own previous research data, to be that they want to know what current consumer attitudes are towards their product. Thus, you would suggest the next step they should engage in is ____________
designing primary research
If men and women exhibit different attitudes and purchase intentions when surveyed about a new hard seltzer, they would be considered ________ market segments.
differentiable
Two Guys and a Bowtie have established their own website and retail stores through which they sell their products. This indicates that Two Guys and a Bowtie are utilizing a(n) __________ channel structure.
direct
Enjoyment and aesthetic appeal are examples of:
hedonic benefits
Google's tool for finding new keyword ideas is called _________________
keyword planner
Cresta, a Swiss manufacturer of electric bikes, charges a higher price for its products than its competitors. Despite the high prices, the brand is popular among customers for its quality and service in comparison to cheaper alternatives available in the market. In this case, Cresta offers a(n) ________ value proposition.
more-for-more
Sarah's marketing team was beginning the process of developing a new product to expand their current product line and/or mix. At her very first meeting, she had the team write on the board their objectives within the marketing department, the business unit, and corporation, the characteristics they'd like their new product to have its role within the current marketing offerings, and the target market they would be targeting. This indicates that Sarah and her team were at the ___________ stage of the new product development process.
new-product strategy
Entrepreneurial opportunities are those situations in which ______, ______, or ______ can be introduced and sold at greater than their cost of production.
organizing methods new goods raw materials
When traditional advertising increases offline sales but also reduces click-through rates for paid search advertising, we can say it exerts:
own and spillover effects
Christina advocates that for her company's products - gourmet, organic, all natural and gluten-free trail mix - to stand out on the shelves, convey quality and environmental awareness, and generate value for single, variety-seeking adults, they should (1) sell the trail mix in individual portioned bags made from recycled materials, (2) group four of the different trail mix flavor packs together to create a variety pack by using recycled cardboard, and (3) have the logo, required nutritional information, and words such as "all natural" and "gourmet quality" featured on the recycled cardboard. Christina has therefore developed her product's __________, ___________, and __________.
primary packaging, secondary packaging, and labeling
Exposure to (un)favorable eWOM can alter consumer preferences for a product. Which are the three eWOM factors that have been linked with increased sales?
review valence critics' reviews third-party sources
In the article, it is mentioned that gamified elements should be inherently _______________.
social
Status and esteem are examples of:
social benefits
Positioning based on (consumption) benefits can refer to ________.
social benefits altruistic benefits hedonic benefits economic benefits
Which four criteria do market segmentation variables fall into?
socio-demographic geographic psychographic behavioral
Electronic word of mouth is:
the act of consumers providing information about products and brands to other consumers through the internet.
customer-based brand equity
the differential effect of brand knowledge on consumer response to the marketing of the brand
Ultimately, market segments represent _____________.
the levels of segmentation variables
