Essentials of Marketing
Which stage of the product life cycle consists of decreased demand as well as cost and price cutting?
Decline
What is the first step in the market research process?
Define the problem or opportunity
Price Elastic
Demand for an offering is elastic when consumers are highly sensitive to price changes
Price Inelastic
Demand for an offering is inelastic and remains the same when consumers are not sensitive to price changes
Objective
End Results Desired
Which section of the marketing plan is a compilation of all of the sections?
Executive Summary
True or false? No matter the number of target markets for your offering, only one marketing channel will be effective.
False
True or false? When deciding on pricing, only one pricing strategy should be selected.
False
Marketing potential and sales potential are key numbers when doing what?
Forecasting sales
The Boston Consulting Group Matrix helps companies with:
Portfolio Planning
Which of the four Ps is the only one that generates money, while the others cost money?
Price
A quantity discount is a type of what?
Price Adjustment
Which process aids companies in making pricing decisions?
Pricing Framework
Which parties make up the simplest marketing channel?
Producer and Consumer
Marketing Mix
Product, price, place, and promotion, which are the factors a company must address to meet the needs of a target market
Break-even point
Total costs equal total revenue, meaning there is no profit or loss
Magazines, newspaper, and television are examples of what type of media?
Traditional
What do companies study to understand consumer behavior and create marketing efficiencies?
Trends
True or False? Marketing plans are often developed by a team with various specialties.
True
True or false? All of the following can use marketing: for-profit organizations, nonprofit organizations, government entities, and individuals. - True - False
True
True or false? Companies may have more than one value proposition to better reach each of their target markets.
True
True or false? The current trend is disintermediation, or cutting out the middlemen.
True
What are the major types of consumer offerings?
Convenience, shopping, specialty, unsought
In which four ways can a company deliver value to a consumer? - Creating, communicating, delivering, exchanging - Product, price, place, promotion - Creating, price, delivering, promotion - Product, communicating, place, exchanging
Creating, communicating, delivering, exchanging
Companies encode messages, and consumers decode messages. During this process, what can distort the message in between?
Interference
Which stage of the product life cycle consists of high marketing costs and low profits?
Introduction
One-to-One marketing
Marketing a product or service directly to one consumer and meeting their specific needs, the opposite of mass marketing
Professional selling
Marketing a product through the selling of its offerings to buyers (wholesalers and consumers), including creating value for the consumer, managing relationships, and gathering information
Pull Strategy
Marketing an offering directly to consumers to create the demand
Providing a service, versus a product, can be a challenge due to
Perishability
Marketing information
Systems that aid in the collection, storage, and analysis of internal company data, market intelligence, and market research, all for the benefit of better decision making.
The trend in today's market is to utilize which type of marketing?
Targeted
Promotion Budget
The budget for marketing can offering that can be calculated using a variety of methods
Channel members
The businesses a company partners with throughout the marketing channel to sell or promote the offering to consumers, also known as intermediaries or middlemen
Unique selling proposition
The communication of an offerings specific benefit(s)
Positioning
The consumer perception of a product or service in relation to competitors
Price Elasticity
The degree to which demand changes in response to changes in prices
Pricing objectives
The end goal a company desires by pricing their products a certain way (e.g. maximize profits, sales, or market share)
Product life cycle
The four stages a product may go through from introduction, to growth, then to maturity, and finally decline.
Objectives
The goals, which should be achievable and measurable, that a company wants to accomplish within a specific time value
Communication process
The manner in which messages are sent by a a company and received by consumers, which can involve interference and feedback
Price
The monetary amount a consumer pays in exchange for an offering's benefit
Supply chain
The network of firms and business processes for procuring materials, transforming raw materials into products, and distributing to customers
Reach
The number of consumers that are exposed to a marketing message
Frequency
The number of times consumers are exposed to a marketing message
Marketing Plan
The outline of expectations and responsibilities for an offering, including the business challenge, the market conditions, the strategy, and the budget requirements
Sales potential
The percentage of the market potential a company plans to capture with an offering during a specific time period
Market segmentation
The process of dividing a market into segments, based on behavior, demographics, geography, and psychographics, in order to provide better value to consumers.
Sales Forecast
The process of estimating the revenue an offering will generate through the use of various forecasting methods
Percentage of sales, affordable method, competitive parity, and objective and task are all different ways in which to set?
The promotion budget
Product Benefit
The result of a product feature meeting a need or want
Consumer Insight
The result of gathering both quantitative and qualitative data on consumers
Pricing framework
The seven-step process designed to help decide on an offerings price, beginning with setting the pricing objectives and ending with offering and making price adjustments as needed
Consumer purchasing process
The six stages a consumer goes through in the purchasing process, from recognizing they have a need to disposing of the product
Tactics
The specific tasks used in a strategy
Branding
The steps to create a symbol, image, logo, and language that differentiates the company and establishes a positive impression
Promotion mix
The strategies involved in communication and persuading customers including advertising, publicity, personal selling, promotion, and social media
Consumer behavior
The study of the internal and external factors that affect the purchasing behavior of consumers
Product Mix
The sum of all of a company's products and product lines
Total cost
The sum of fixed costs, which do not change with production or sales levels, and variable costs, which change with production levels or sales levels.
Total cost of ownership
The total cost of purchasing, using, and disposing of a product
Market potential
The total revenue estimation for an industry during a specific time period
Integrated marketing communications
The use of many forms of marketing communications, unified with one message
Social media
The use of technology and mobility to connect people and companies in an interactive way
What is the primary reason executives read a marketing plan?
To gain information for making budgeting decisions
How many sections are there in a marketing plan?
6
Porter's Five Forces Model
A business strategy framework that is used to analyze the competitive environment of an industry
Product and market-entry strategies
A combination of existing markets and products or new markets and products: market penetration, market development, product development, market penetration
Sales Promotions
A form of marketing that encourages quick and larger purchases through the use of coupons, samples, contests, etc.
Direct Marketing
A form of marketing that is personalized for target consumers
Public relations
A form of marketing that is used to create a positive image of a company and its offerings, e.g., press releases, sponsorships, and product placements
Perceptual map
A grid that utilizes factors important to consumers to map a brand against its competitors
Product Line
A group of related offerings that allow for streamlined marketing
Indirect channel
A marketing channel that involves the producer, one or more intermediaries, and the consumer.
Direct Channel
A marketing channel that only involves the producer and the consumer
Strategic channel alliances
A mutually beneficial partnership, based on consumer preferences, created by linking the sale of their complimentary offerings
Advertising
A paid form of marketing that reaches many people
Tagline
A phrase designed to represent a brand
Boston Consulting Group - Matrix
A portfolio planning approach that uses market growth and market share data to evaluate the business units with the following four categories: stars, dogs, cash, cows, and question marks.
Skimming pricing
A pricing strategy by which a firm prices its goods or services high so as to generate extra profits until competition forces a lower price.
Penetration pricing
A pricing strategy by which a firm prices its goods or services lower than the market price in order to gain market share
Strategic Planning
A process that begins with assessing the current situation and then planning for the future through the creation of a mission statement, objectives, value proposition, and strategies.
Product Feature
A product characteristic
Offering
A product or service, along with its price, offered by a company to consumers
Market research
A seven step process that begins with defining a problem or opportunity and ends with writing a research report and presenting the findings
New offering development
A seven-step process that begins with generating an idea and end with evaluating whether or not it is creating value for the company and its consumers
Mission Statement
A statement describing the purpose of a company
Value Proposition
A summary of an offering focusing on the benefits and the reasoning for why the offering should be purchased over other available options
Product
A tangible offering (e.g. a car)
Maslow's Hierarchy of Needs
A theory developed by Abraham Maslow that describes the human need to fulfill lower level needs, such as food, before being able to fulfill high-level needs, such as realizing one's full potential
Skimming pricing, penetration pricing, and everyday low prices are all examples of what type of pricing?
Adjustment
Strategic planning does not involve the development of: - Mission Statement - Objectives - Value Proposition and strategies - all of the above
All of the above
SWOT analysis
An analysis of the external and internal environment of a business by looking at its strengths, weaknesses, opportunities, and threats.
Price fixing
An illegal practice where companies join together to all charge the same price, often a high price
Service
An intangible offering (e.g. a car wash)
Repositioning
Changing consumers' perception of a product or serve, resulting in a new placement on the perceptual map
Wholesalers, merchant wholesalers, brokers, and retailers are all categories of what?
Channel Partners
Which stage of the product life cycle consists of increasing sales, more competitors, and higher profits?
Growth
Strategies
How a company plans to accomplish its objectives
What is the first step in the new offering development process?
Idea generation
Advertising, direct marketing, and public relations are all types of what?
Integrated marketing communications
Which of these is a reason to study marketing? - It does little to benefit society. - Career opportunities are sparse. - The benefits never outweigh the costs. -
It delivers value to the company and consumer.
Which of the following is not a characteristic of an attractive target market?
It is stagnant
What type of process is strategic planning?
Long-term
There are levels of involvement required of a consumer when they decide to purchase a product. _________-Involvement products are on the cheap end and pose little risk if the purchasing decision is poor; ________-involvement products are more expensive and very risky.
Low; High
Bait and switch
Luring customers into buying a low-priced product, but then encouraging the purchase of alternate products at a high cost
Strategic plans may be developed at all of these levels, except:
Market
Market penetration, market development, product development, and diversification are types of:
Market Strategies
Portfolio Planning
Market strategic plans based on a group of similar business units
If market intelligence, internal company data, and analytical software do not provide enough information to a company, it can utilize what other process to find answers?
Marketing research
Push Strategy
Marketing to wholesalers who then market an offering to consumers
Mass marketing
Marking a product or service to everyone in the same manner, also known as undifferentiated marketing
In the early days of the automobile industry, Ford and GM practiced which types of marketing, respectively?
Mass marketing and targeted marketing
Which stage of the product life cycle consists of level sales, intense competition, and repeat customers?
Maturity
Strategies
Means
Marketing
Meeting a need by creating, communicating, delivering and exchanging a product or service that is of value to consumers
Product category, product line, technology platform, and product are types of?
Offering levels
The marketing mix is made up of the 4 Ps. Which mix is the combination of marketing communications a company uses?
Promotion
Low-involvment decisions
Purchasing decisions that are made with not much thought or research (e.g. impulse buying)
High-Involvement decisions
Purchasing decisions that require some amount of research and problem solving to feel comfortable about making the purchase (e.g. car or home)
Limited-involvement decisions
Purchasing decisions that require some research, but not extensive, perhaps an opinion from a friend
Mission
Purpose
There are two types of strategies businesses use to generate demand for their products. The first focuses on convincing the reseller to purchase the product; the second focuses on convincing the consumer to purchase the product. What are the names of these strategies, respectively?
Push; pull
The following buyer characteristics are used for what purpose: behavioral, demographic, geographic, psychographic?
Segmentation
Target Marketing
Selecting a specific group of people to market a product or service to, also known as differentiated marketing
A product-dominant approach to marketing and a service-dominant approach to marketing differ because they view a set of products, services, and prices in which ways, respectively?
Separated; integrated
Predatory Pricing
Setting very low prices in order to lessen the competition
What does a company perform to begin the process of strategic planning?
Situational Analysis
Which of the following groupings represents all of the factors that can affect consumer behavior?
Situational, personal, psychological, societal
What are the two most common criteria for testing the soundness of a research study?
Validity and reliability
Which term fulfills this equation "benefits received - (price + hassle) = _____"? - Product - Features - Value - Marketing
Value
Which of the following is not considered one of the four Ps? - Promotion - Preparation - Place - Price
preparation