Marketing Exam
false
All products and services are intangible.
false
Brands that have developed loyal customers have a higher price elasticity of demand.
skimming
Charging a relatively high price for new and innovative products to those consumers most willing and able to pay the high price is called price
1. Core Goals 2. Context Elements (design & navigation) 3. Content 4. Community 5. Communication 6. Commerce 7. Connection
Describe the components of the 7C online marketing framework.
An organic search is the process of listing web page results based on the RELEVANCY OF KEY TERMS while a paid search is the process of listing web page results based on A PAYMENT FOR THAT WEB PAGE RESULT SPOT
Differentiate between organic and paid search.
The knowledge gap: reflects the difference between customers' expectations and the firm's perception of those customer expectationsThe standards gap: difference between the firm's perceptions of customers' expectations and the service standards it setsThe delivery gap: difference between the firm's service standards and the actual service it provides to customers.The communication gap: difference between the actual service provided to customers and the service that the firm's promotion program promises
Explain the four service gaps identified by the Service Gaps Model
sales orientation
Firms using a ________ to set prices believe that increasing sales will help the firm more than will increasing profits.
competition based
Firms using a(n) ________ pricing method set their prices relative to what other firms are charging.
flow across national borders
Globalization refers to the processes by which goods, services, capital, people, information, and ideas
Value-based methods include approaches to setting prices that focus on the overall value of the product offering as perceived by the consumer. Two key approaches include Improvement Value Method and Cost of Ownership Method.
How can you use value-based methods for setting prices?
They require mutual trust, open communication, common goals, and credible commitments.
How do firms develop strong strategic partnerships with their marketing channel partners?
When measuring IMC success, the firm should examine when and how often consumers have been exposed to various marketing communications. Marketing communications managers usually state their media objectives in terms of GRP, which represents reach multiplied by frequency
How do firms use GRP to evaluate the effectiveness of traditional media?
The supply chain links associated with each information flow step are flow 1 (Customer to Store), flow 2 (Store to Buyer), flow 3 (Buyer to Manufacturer), flow 4 (Store to Manufacturer), flow 5 (Store to Distribution Center), flow 6 (Manufacturer to Distribution Center and Buyer).
How does information flow through the marketing channel?
Manufacturing - Distribution Center (optional) - Store - Customer
How does merchandise flow through a typical marketing channel?
relevance, reach, response, and return
How should firms choose and assess the efficacy of influencers?
Using Google AdWords, a firm can assess the effectiveness of his advertising expenditures by measuring the reach, relevance and return on investment for each of the keywords that were used.
How would a firm evaluate the effectiveness of its Google advertising?
profit orientation, sales orientation, competitor orientation, and customer orientation
Identify the four types of company objectives.
showrooming
In a process called _______, a customer visits a store to touch, feel, and even discuss a product's features with a sales associate, and then instantly compares the prices online to see whether a better deal is available.
think, feel, do
In simple terms, the AIDA model is also known as the ________ model.
true
Integrated marketing communications (IMC) represents the promotion dimension of the six Ps. It encompasses a variety of communication disciplines—advertising, personal selling, sales promotion, public relations, direct marketing, and online marketing including social media.
true
It may take several exposures to marketing communications before consumers are moved to buy.
The standards gap pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets. Firms can set appropriate service standards and measure service performanceThe delivery gap is the difference between the firm's service standards and the actual service it provides to customers. This gap can be closed by getting employees to meet or exceed service standards by providing incentives and support.The communication gap refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises. If firms are more realistic about the services they can provide and manage customer expectations effectively, they generally can close this gap.
List at least two ways to overcome each of the four service gaps.
a social media presence
Manufacturers, retailers, and service providers have created and maintain websites, blogs, and _________ to enable customers to interact with them over the Internet.
true
Rafi wants information about the infrastructure in the countries his company is planning to export to, so he should gather information about the transportation and communications capabilities in each country.
It depends on the retailer as well as the characteristics of the merchandise and nature of the demand. Retailers consider the total cost associated with each alternative and the customer service criterion of having the right merchandise at the store when the customer wants to buy it.
Should retailers use distribution centers or have manufacturers deliver merchandise directly to stores?
false
Tariffs artificially lower prices and make goods more competitive.
false
The BRIC countries are Bolivia, Russia, Italy, and China.
a trade deficit
The United States imports more goods than it exports. This is known as
true
The communication gap can be reduced by managing customer expectations.
true
The focus of social media efforts targeted at customer interaction is building connections.
false
The improvement value method and the cost of ownership method are both cost-based pricing methods.
true
The key to successful pricing is to match the product with the consumer's perception of value.
false
The marketing of services differs from the marketing of products because services are tangible and separable from the service provider.
false
The objectives of the 4E framework for digital marketing are excite, educate, engage, and evaluate.
Seasonal discounts, cash discounts, allowances, quantity discounts, uniform delivered versus zone pricing
What are some B2B-oriented pricing tactics?
-quantity discounts -seasonal discounts -coupons -rebates -leasing -price bundling -leader pricing
What are some consumer-oriented pricing tactics?
Cultural Dimensions include power distance, uncertainty avoidance, individualism, masculinity and time orientation
What are some important cultural dimensions?
1. Lifestyle 2. Social Media 3. Utility 4. Games and Entertainment 5. Productivity 6. News and Information Outlets
What are some of the most popular types of mobile applications?
excitement, education, experience, and engagement
What are the 4 Es?
1. Identify Strategy & Goals 2. Identify Target Audience 3. Develop Budget 4. Campaign: Experiment & Engage 5. Monitor & Change
What are the components of a digital marketing strategy?
Determining the target markets to pursue and developing a marketing mix that will sustain a competitive advantage over time.
What are the components of a global marketing strategy?
Advertising, sales promotion, public relations and personal selling, electronic media, direct marketing
What are the different elements of an IMC program?
sender (firm), transmitter encodes message, communications channel (media), and receiver (consumer) decodes message The sender, the transmitter, encoding, the communication channel, the receiver, noise, feedback loop
What are the different steps in the communication process?
income effect, cross-price elasticity, and substitution effect
What are the factors influencing price elasticity?
cost, customers, channel members, competition, and company objectives
What are the five Cs of pricing?
1. Information 2. Connected 3. Network 4. Dynamic 5. Timeliness
What are the five drivers of social media engagement described in the Wheel of Social Media Engagement?
monopoly, oligopolistic competition, monopolistic competition, and pure competition
What are the four different types of competitive environments?
Services are intangible, inseparable, variable, and perishable.
What are the four marketing elements that distinguish services from products?
1. Ad-Supported Apps 2. Freemium Apps 3. Paid Apps 4. Paid Apps with In-App Purchases
What are the four options for pricing mobile apps?
Several options exist for getting merchandise to customers including shipping merchandise to the store, customer store pickup, and delivering merchandise directly to customers from a fulfillment center.
What are the options for getting merchandise to customers?
1. "Me Time" 2. Socializing 3. Shopping 4. Accomplishing 5. Preparation 6. Discovery 7. Self-Expression
What are the seven types of customer motivations for using mobile apps?
1. reward power 2.coercive power 3.referent power 4. expertise power 5.information power 6.legitimate power.
What are the six types of power that onechannel member can have over another?
cost-based, competition-based, and value-based
What are the three different considerations for setting prices?
Sell the same product or service in both the home country market and the host country. Sell a product or service similar to that sold in home country but include minor adaptations. Sell totally new products or services.
What are the three global product strategies?
distributive and procedural fairness
What can companies do to recover from a service failure?
Deceptive reference prices, loss leader pricing, bait and switch
What common pricing practices are considered to be illegal or unethical?
A common model of the series of mental stages through which consumers move as a result of marketing communications: Awareness leads to Interests, which lead to Desire, which leads to Action.
What is the AIDA model?
In indirect marketing channels, one or more intermediaries work with manufacturers to provide goods and services to customers.
What is the difference between an indirect and a direct marketing channel?
Elastic (price sensitive) Inelastic (price insensitive) Elastic demand is when relatively small changes in price will generate fairly large changes in the quantity demanded, so if a firm is trying to increase its sales, it can do so by lowering prices. The market for a product is generally viewed as inelastic when lowering prices will not appreciably increase demand; customers just don't notice or care about the lower price.
What is the difference between elastic demand and inelastic demand?
Fixed costs are those costs that remain essentially at the same level, regardless of any changes in the volume of production. While variable costs are those costs, primarily labor and materials, that vary with production volume.
What is the difference between fixed costs and variable costs?
Vertical conflict: a conflict between two or more members of the channel at different levels, such as a buyer and a seller. horizontal conflict: horizontal conflict comes from conflict between two or more channel members at the same level, such as two buyers or two sellers.
What is the difference between vertical and horizontal channel conflict?
The general economic environment, the market size and population growth rate, and real income.
What metrics can help analyze the economic environment of a country?
Excite: Mobile Apps and Games, Facebook, Pinterest Educate: Hashtags Experience: YouTube Reviews Engage: Blogging and Microblogging
What social media elements work best for each of the 4 Es?
Tariffs, quotas, boycotts, exchange controls, and trade agreements
What types of governmental actions should we be concerned about as we evaluate a country?
true
When a retail store rarely sells deeply discounted or sale products, it is known as "everyday low pricing."
true
When two competing retailers have a disagreement, it is an example of a horizontal channel conflict.
Place
Which element of the marketing mix specifically deals with supply chain management?
Exporting has the least risk because it requires the least financial risk but also allows for only a limited return to the exporting firm. Global expansion often begins when a firm receives an order for its product or service from another country, in which case it faces little risk because it has no investment in people, capital equipment, buildings, on infrastructure
Which global entry strategy has the least risk and why?
Direct investment has the most risk because it requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through the formation of wholly owned subsidiaries. This entry strategy requires the highest level of investment and exposes the firm to significant risks, including the loss of its operating and/or initial investments
Which global entry strategy has the most riskand why?26
direct investment
Which of the following is one of the global entry strategies?
Happiness vs. Sadness
Which one is not one of Hofstede's cultural dimensions?
true
Wholesalers are often used in an indirect marketing channel.
Great potential for growth in the global community
Why are each of the BRIC countries viewed as potential candidates for global expansion?
Many of them are a blend and fall within the product-service continuum.
Why can't we separate firms into just service or just product sellers?
Despite a firm's best efforts, sometimes service providers fail to meet customer expectations. Effective service recovery efforts can significantly increase customer satisfaction, purchase intentions, and positive word of mouth, though customers' post recovery satisfaction levels usually fall lower than their satisfaction level prior to the service failure.
Why is service recovery so important to companies?
The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives.
Why is the objective-and-task method of setting an IMC budget better than the rule-of-thumb methods?
customers
________ is/are one of the five Cs of pricing.
