MKTG 201 Exam 2
Which of the following is not a common metric relevant to Paid Search? A.Cost-per-click (CPC) B.Cost-per-action (CPA) C.Clicks-per-email (CPE) D.Cost-per-thousand (CPM) E.Click-through-rate (CTR)
Clicks-per-email (CPE)
What makes up the Marketing environment?
Company, Customers, Competitors
Positioning-Gap analysis
Compares hospitality brands based on the importance and performance of differentiating features and benefits.
Augmented Product
Complementary products
The product development process includes a number of important stages. Testing the idea for the first time with customers is the most critical stage. Marketers refer to this stage as: A. Idea screening B. Concept testing C. Idea generation D. Marketing strategy E. Business analysis
Concept testing
Inseparable Marketing Problem
Consumer and provider are part of the service
Brand Image
Consumers have a definite impression about the brand "I like Apple"
Brand Awareness
Consumers know about the brand "Yes, I know what Apple is"
Brand Loyalty
Consumers purchase only their favored brand "I only buy the iPhone"
Which promotion method builds interest in the brand by creating and sharing images, videos, blogs, and social media posts? A. Advertising B. Sales promotions C. Trade promotions D. Content marketing E. Personal selling
Content marketing
Fixed costs
Costs that do not vary with the quantity of output produced
What are the profitability drivers?
Customer Acquisition, Customer Retention, Sales per Customer, Margin
In order for a sales team to achieve full potential, modern day sales organizations assign specialized roles to increase efficiency and productivity of their sales teams. For example, ________________________ are farmers, with the sole responsibility of increasing customer loyalty and retention through additional services so that customers continue to use and expand a firm's product and service offerings. ____________ are hunters who are responsible for finding new clients. A. Market Response Reps; Account Executives (AEs) B. Sales Development Reps (SDRs); Customer Success or Client Development Reps C. Account Executives (AEs); Market Response Reps (MRRs) D. Customer success or client Development Reps; Sales Development Reps E. Sales Managers; VP of Sales
Customer success or client Development Reps; Sales Development Reps
Idea Generation
Customers Employees Distributors Competitors R&D Consultants Other Experts
In the late 1980s J. Crew was an online catalog exclusive, meaning that there were not retail outlets and customers ordered by phone from the catalog. This is an example of which promotional element? A.Advertising B.Personal Selling C.Sales Promotion D.Direct Marketing E.Public Relations
Direct Marketing
Reason to Believe
How effective is the demonstration of the product's problem-solving benefits in capturing the imagination of your target market?
Position
It is the act of designing the company's product offering so that it occupies a distinct and valued place in the target customers' minds.
Until two years ago, Walt believed that cell phones were just a fad and insisted on using payphones. Walt is an example of a(an) _________ in the diffusion process (Adoption Life Cycle). A.Innovator B.Laggard C.Early Majority D.Late Majority E.Early Adaptor
Laggard
Skill Level
Learned proficiencies at performing job activities
Shopping products
More expensive than convenience product, requiring more shopping effort
Aptitude
Native abilities and enduring personal traits relevant to job performance (e.g. mental abilities, personality)
Deborah is the brand manager for a new product that is priced for the whole market. Deborah is using a _____ pricing method. A.Bundling B.Penetration C.Versioning D.Skimming
Penetration
Direct Marketing
Promotional element that uses direct communication with consumers to generate a response in the form of an order, request for information, or visit to a retail outlet or website. (Ex. Direct Mail, Telemarketing)
Extensive, data-driven research demonstrates that the primary determinants of B2B salesperson performance are: A. Appearance, appreciation, promotion, product B. Quotas, competition, compensation, budets C. Assertiveness, charisma, charm, drive D. Role perceptions, skills, motivation, and aptitude E. All of the above
Role perceptions, skills, motivation, and aptitude
contribution analysis
Total contribution is the amount available to the firm to cover (or contribute to) fixed costs and profit after variable cost has been deducted from total revenue.
Fixed and Variable Costs equation
Total cost = fixed cost + variable cost
Personal Selling
Two-way communication between a buyer and seller designed to influence a purchase decision
Unit contribution is: A. Unit price minus unit variable cost B. Unit price divided by total contribution C. Contribution multiplied by the total number of units sold. D. Fixed cost divided by price minus unit variable cost E. The break-even volume for a specific product item
Unit price minus unit variable cost
Behavioral
Usage situations, benefits
Business/Industrial Products
a product purchased by individuals and organizations for further processing or for use in conducting business
business analysis
a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
Affiliates
a type of performance based marketing in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliates own marketing efforts
Cost-plus pricing
add a specific amount to the cost
Actual product
bundle of attributes
How is value created?
by meeting customer's functional and emotional needs
CPM
cost per thousand
Variable Costs
costs that vary with the quantity of output produced
content marketing
create relevant content
The Diffusion Process (form of market segmentation)
describes how potential customers learn about new products, try them, and opt or reject them
price lining
different prices for different products in a product line
Direct Traffit
direct links or bookmarks
Responsiveness
helping customers promptly. Returning phone calls quickly, replying to emails promptly, keeping customers informed, and delivering the service on time demonstrate responsiveness.
prestige pricing
high price to signal quality, status
Skimming pricing
high price to skim the market
Tangibles
include appearance of physical facilities, equipment, and personnel. Cleanliness, design, and decor of the premises, appearance of the staff, and appropriate equipment demonstrate tangibles.
Empathy
includes access, communication, and understanding. Listening to customers and seeking to understand customer needs demonstrate empathy.
Assurance
includes competence, courtesy, credibility, and security. Treating customers with respect, providing knowledgeable information and assistance, and creating a relationship of trust with customers demonstrate assurance.
measurable
individuals can be assigned to a segment and counted
accessible
individuals in the segment can be reached through the company's promotion/distribution channels
yield management
match demand and supply for set capacity
What is the criteria for effective segmentation?
measurable, accessible, durable, substantial, unique needs
unique needs
needs are homogeneous within segments and heterogeneous across segments
Unit Margin
price - unit variable cost
Intangible
price, quality, reliability, beauty
the product life cycle
the course of a product's sales and profits over its lifetime
Marketing Strategy
the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
reach
the number of different people or households exposed to an advertisment
Market Testing
the stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy
Social
the systematic application of marketing along with other concepts and techniques, to achieve specific behavioral goals
Bundle pricing
two or more products in a single package
What is Percent Margin?
what percent of the selling price is the unit contribution margin
What is price determined by?
what the consumer is willing to pay
perceived value pricing
what the customer is willing to pay
odd-even pricing
$19.95, $14.99
Advantages of Branding
-Branding allows marketers to distinguish their products from others -Branding is useful when introducing new products -Branding helps consumers identify products they wish to buy again and avoid those we do not -Branding enables consumers to express personalities, lifestyle, and social identities.
Brands and Consumers
-Consumers help shape the brand -Learn from your customers, what's important to them -Brand is more than just a logo. It's a relationship with the customer. -The customer co-creates this relationship with all kinds of rituals
What makes up the Market Channel Performance?
-Customer Reach (volume) -Operating Efficiency (cost to serve) -Service Quality (retention)
Social media Marketing strategy
1. set social media marketing goals 2. Know your buyer perrsonas 3. Determine the social media network 4. Track results, identify insights
Don Hale has a burger restaurant, Hires, his fixed costs are $85,000, variable unit costs are $4, and he is selling his burger combos (burger, fries, and drink) for $9.00. How many units does Don have to sell to breakeven? A.21,250 B.17,000 C.6,538 D.9,444
17,000
HP sells its brand new laptop to Costco for $550 and Costco resells the laptop at $1,000. What is the percent margin on the laptop for Costco? A.45% B.65% C.25% D.40% E.50%
45%
selective distribution
A level of distribution intensity whereby a firm selects a few retail outlets in a specific geographical area. Shopping and specialty goods
Selective Distribution
A level of distribution intensity whereby a firm selects a few retail outlets in a specific geographical area. Manufacturers who produce shopping and specialty goods like carpets, home appliances, and perfumes use selective distribution.
Exclusive Distribution
A level of distribution intensity whereby only one retail outlet in a specific geographical area carries the firm's products. Exclusive distribution limits the total sales units of a product but provides the setting, service, and exclusivity needed to support super-premium prices. Examples: Ferrari, Lamborghini, Tiffany & Co.
Consumer Products
A product purchased by the final consumers for personal consumption
Brands should
1. resonate with customers 2. differentiate from competitors 3. motivate employees
What group should you ignore?
Hate
Idea Screening
screening new product ideas to spot good ones and drop poor ones as soon as possible
Target
selecting a segment - WHO SHOULD WE EXCHANGE WITH
Service Quality - Direct Channel
-Manufacturer controls service quality -Manufacturer interfaces with customer at all contact points
3 components of brand positioning
1. Competitive frames of reference -Nature of competition -Target Market 2. Points of difference (PODs) -Desirable to consumer -Differentiating from competitors 3. Points of parity (POPs) -Demonstrate category credentials -Negate competitor poins-of-difference
Inseparable Marketing Solution
-People -Care and quality -Personal attention
Perishable Marketing Solution
-Predict demand fluctuation -Balance supply and demand
Variability Marketing Solution
-Process -Standardization -Training
Operating Efficiency - Direct Channel
-Produces higher margins -Must bear the cost of channel management -Must bear all marketing costs
Operating Efficiency - Indirect Channel
-Produces lower margins -Provides lower channel management costs -Provides lower marketing costs
Service Quality - Indirect Channel
-Removes the manufacturer from the end-user customer -Manufacturer is dependent on channel partners to deliver the desired level of customer service
Intangible Marketing Solution
-Tangible cues -Physical environment
Create value for consumers through four utilities:
-Time (make the product available at a convenient time) -Place (making the product available in a convenient place) -Form (making the product in the form consumers want) -Possession (transferring product ownership to consumer)
Importance of brands
-battle of brands -brands as the company most valuable assets -own market-dominant brands
Promotion
-informing them about product benefits -persuading them to try to continue using the product -reminding them of product benefits to encourage repeat purchases
Person by situation segmentation
-people are not all the same--person variability - people make choices depending on the situation--situation variability
Positioning: Unique Selling Proposition (USP)
1) who is target market? 2) when should the brand be considered? 3) why should the brand be chosen over alternatives?
What Counts Most in Motivating the Sales Force?
1. A clear sales task 2. Need for achievement 3. Incentive compensation and recognition 4. Good leadership
What is the process of Recruiting and Selecting?
1. Define the Job 2. Profile the ideal candidate 3. Find and attract pool of applicants 4. Select sales personnel 5. Evaluate the process
Five Dimensions of an Angle
1. Need to Believe 2. Reason to Believe 3. Dominate Situations 4. Quantifiable Support 5. Unique Product Claim
The product life cycle premises
1. Products have limited life 2. Product sales pass through distinct stages, each with different marketing implications 3. Sales and profits from a product vary at different stages in the life cycle 4. Products require different strategies at different life-cycle stages
Steps in setting price
1. Select the pricing objective 2. Determine demand 3. Estimate company costs 4. Know competitors' prices 5. Select pricing method
Demographic
Age, gender, family size and life cycle, race, occupation, income
Break-even analysis provides a useful method for examining the relationship between price, cost, revenue, and profit at various levels of sales. At the break-even point: A. Total revenue equals total cost. B. There are no profits. C. There are no losses. D. A and B E. All of the above
All of the above
Marketing managers use elements of the promotion mix to communicate value to consumers by: A. Informing them about the benefits of the product B. Persuading them to try or continue using the product C. Reminding them of the product benefits D. A and B above E. All of the above
All of the above
Social media marketing may be more effective than traditional marketing communications channels because social media: A. Offers greater flexibility of content and duration B. Has credibility similar to word-of-mouth C. Can build awareness and interest at a much lower cost D. Both A and B E. All of the above
All of the above
Research on marketing services identifies five determinants of service quality--reliability, assurance, tangibles, empathy, and responsiveness. Tangibles include: A. Delivering and performing the service dependably and accurately B. Competence, courtesy, and credibility C. Access, communication, and understanding D. Appearance of physical facilities and personnel E. Helping customers promptly
Appearance of physical facilities and personnel
H&M consciously designs retail space to orchestrate various dimension of the store—layout, color, sounds, and signage—to appeal to consumers' emotions and encourage buying. This is called: A. Sales promotions B. Wheel of retailing C. Location D. Retail control E. Atmospherics
Atmospherics
The possible price range for a product is: A. Above the seller's cost of goods sold B. Below the buyer's perceived value C. Below the seller's cost of goods sold D. Above the buyer's perceived value E. Both A and B are correct F. Both C and D are correct G. All of the above are correct
Both A and B are correct
Dave loves apple products. He is loyal to apple and has bought the iPhone 3, iPhone 4s, iPhone 5, and iPhone 6. Dave recently decided that he would by the new Gold MacBook instead of an HP. Dave's new MacBook purchase is an example of ________. A.Brand Image B.Brand Awareness C.Brand Equity D.Brand Loyalty
Brand Equity
Brand Equity
Brand loyalty is transferred to new products "All my electronics are Apple"
Advertising seeks to achieve one or more objectives--cognitive, affective, and behavioral. The cognitive objective: A. Builds awareness B. Gains interest C. Gains liking D. Stimulates action E. Both B and C are correct
Builds awareness
A sketch or composite picture of the ideal customer who buys or may buy the firm's products is known as a(n) A. Decision maker B. Influencer C. Buyer persona D. Personal shopper E. Gatekeeper
Buyer persona
Social media services created a new vocabulary such as cost-per-click (CPC), click-through-rate, and cost-per-action (CPA). Because ads must generate enough interest to get a click and clicks must generate an action leading to a sale, the critical number is: A. CPM--cost per thousand impressions B. CPC--cost per click C. CPGW--cost per gross weight D. CPA--cost per action E. CPCC--cost per cohort connection
CPA--cost per action
Research suggests that satisfied frontline employees lead to satisfied customers. Nurses represent the frontline in health care. The working situation for nurses may affect job satisfaction. Indeed, a recent study of medicare reimbursements found much higher job dissatisfaction and burnout among nurses who were: A. Older than 45 years old B. Working in the public sector C. Assigned to K-12 schools D. Caring for patients in hospitals and nursing homes E. Working in rural areas
Caring for patients in hospitals and nursing homes
What is NOT one of the four steps for creating a social media marketing strategy? A.Track Success and Improve B.Deliver Viral Content C.Set Social Media Marketing Goals D.Determine the Social Media Network E.Know Your Buyer Personas
Deliver Viral Content
Sally is introducing a new product - bacon and chocolate bubble gum. She discovered a good segment: adults (18-30) in the southern region of Bacon Land. Sally is segmenting using A.Demographic only B.Behavioral and Demographic C.Demographic and Geographic D.Psychographic and Geographic E.Demographic and Behavioral
Demographic and Geographic
Motivation
Desire to expend effort on specific job activities
Image brands
Differentiate from competitors by offering superior performance or superior economy
Specialty products
Extensive search effort; consumer reluctant to accept substitute
Products travel through life cycles starting with introduction stage and finishing with maturity stage. In which stage of the product life cycle do marketing managers seek to build market share by emphasizing product distinctions? A. Introduction B. Growth C. Maturity D. Decline E. Obsolete
Growth
Internal marketing activities, between the company and its employees, are important because: A. Moments of truth create promises for results. B. How employees feel about the company, products, and services correlates highly with employee engagement and service quality. C. The physical environment provide evidence of service quality. D. Services are inseparable and variable. E. Reliability creates assurance.
How employees feel about the company, products, and services correlates highly with employee engagement and service quality.
Unique Product Claim
How is the product distinctly different, better at solving problems, and more memorable than its closest competitor?
Expectancy theory of motivation includes expectancies, instrumentalities, and valence. The valence answers the question: A. How many competitors in the category? B. How will my effort affect my performance? C. How much do I value the reward? D. How much money can I expect to make? E. How will my performance be rewarded?
How much do I value the reward?
The best channel system should achieve
Ideal market exposure
When choosing channel members, Giorgio Armani, an Italian company that offers an exclusive brand of tailored clothing, selects only high-end retailers like Harrods, Neiman Marcus, and Saks Fifth Avenue. Giorgio Armani does this to enhance: A. Product benefits B. Service benefits C. Non-price costs D. Image benefits
Image benefits
Reference price is an important concept in pricing strategy. ______________ is what you think you should pay, given your past experience and the buying situation, and _______________ is what what everyone else is paying for the product. A. External reference price; internal reference price B. Internal reference price; external reference price C. Referral reference price; accepted reference price D. High reference price; low reference price E. Personal reference price; relevant range reference price
Internal reference price; external reference price
Psychographic
Lifestyle, personality, attitudes, values
Each social network platform has unique strengths. Which platform is best for thought leadership? A. LinkedIn B. Facebook C. Pinterest D. YouTube E. Pandora
What group should you understand benefits for?
Love
Segment
Market segmentation is the process of grouping customers into relatively homogeneous sets or groups such that customers within a segment are similar to one another in the way they respond to the marketing effort directed toward them. - WHO COULD WE EXCHANGE WITH
Target Attracrive Segments
Market size, Expected growth, Competitive position, Cost to reach
What is the path to profitability?
Marketing environment, Marketing mix, profitability drivers, profit!
Suppose you are a sales manager for Intel. One of your salespeople is struggling with the presentation step of the sales process. As you coach this salesperson, you begin by explaining that the purpose of the "presentation" step of the sales process is to: A. Qualify the buyer. B. Match the benefits of your product offering to the customer's needs. C. Gather data on the customer. D. Close the sale. E. Create colorful PowerPoint slides to engage the customer.
Match the benefits of your product offering to the customer's needs.
intensive distribution
Maximum market coverage--firm seeks to make the product available in every outlet where customers might want to buy it. Convenience goods
Intensive Distribution
Maximum market coverage--firm seeks to make the product available in every outlet where customers might want to buy it. Convenience goods, such as packaged candy or soda pop, are generally good candidates for intensive distribution.
Considering a product's competitive angle, _______________ is about finding significant pain points that are personally relevant to the target market while _______________ is about demonstrating product-solving benefits. A. Quantifiable Support, Unique Product Claim B. Reason to Believe, Dominate Situations C. Dominate Situations, Quantifiable Support D. Unique Product Claim, Need to Believe E. Need to Believe, Reason to Believe
Need to Believe, Reason to Believe
Supplies and services
Operating supplies, maintenance items, services
Media convergence shows an ad becoming viral at the intersection of...? A.SEO, AdWords and Social Media B.Owned, Purchased and Earned Media C.Facebook, Twitter and YouTube D.Branded, Engaged, Converted Media
Owned, Purchased and Earned Media
Advertising
Paid placement of announcements and persuasive messages to inform, gain liking/interest, and/or stimulate action
The marketing mix for services includes the 4P's of marketing (product, price, place, and promotion), plus: A. Processes, physical environments, and potential customers B. People, process, and physical environment C. Political environment, physical environment, and personal environment D. People, perishability, and personality E. People, politics, and psychology
People, process, and physical environment
Role Perceptions
Perceptions of job demands and the expectations of role partners
Public Relations
Placement of news or media presentations with the deliberate attempt to manage the public's perception
Which pricing strategy is used when marketers set a relatively low price to obtain market share quickly at the expense of not capturing consumer surplus? A. Price skimming B. Price penetration C. Promotional pricing D. Cost-plus pricing E. Competitive pricing
Price penetration
In the produce department, Smith's and Harmon's grocery stores break bulk (offering quantities customers want) and provide assortments or varieties of produce to their customers. In this example, Smith's and Harmon's add value by increasing ______________ benefits. A. Product B. Service C. Image D. Possession E. Time
Product
What are the 7Ps of Service Marketing?
Product Price Place Promotion People Process Physical Environment
Honda is a Japanese public multinational conglomerate corporation primarily known as a manufacturer of automobiles, aircraft, motorcycles, scooters, generators, water pumps, lawn and garden equipment, rotary tillers, outboard motors, robotics, and small engines. All products offered by Honda represent the company's: A. Product item B. Product line C. Product mix D. Product life cycle E. Production promotion
Product mix
Capital items
Products that aid in production or operations
Materials and parts
Products used in the manufacturing process that become part of the final product
Profit Equation
Profit = Total Revenue - Total Cost
Image brands like Range Rover, Ralph Lauren, Louis Vuitton, and Mercedez-Benz connect with customers through emotional images, symbols, and associations. Which marketing mix element is emphasized the most with image brands? A.Product B.Price C.Place D.Promotion E.All of the above
Promotion
Marty McFly Inc. sells hoverboards to the general population. Recently a news channel picked up the story saying how much better the hoverboards are than regular skateboards. This free promotion would be be represented as? A.Advertising B.Direct Selling C.Sales Promotion D.Direct Marketing E.Public Relations
Public Relations
Pillsbury has developed a new toaster strudel. It is far superior to Pop Tarts but the retailers don't know that. As a result Pillsbury sends sales people out to the retailers to convince them to sell the toaster strudels. By promoting to the retailers to ultimately reach the consumers Pillsbury is utilizing which strategy? A.Push Strategy B.Pull Strategy C.Economic Strategy D.Price Skimming Strategy
Push Strategy
Pfizer, a multinational pharmaceutical company, deploys sales representatives to encourage physicians to prescribe Pfizer products, such as Prevnar, LYRICA, LIPITOR, and Xeljanz, to their patients. This is an example of: A. Preventive strategy B. Pull strategy C. Physical strategy D. Push strategy E. Progressive strategy
Push strategy
TRP (target rating points)
Reach (percentage of the target market) X Frequency
Advertising effectiveness is measured by: A. Push versus pull promotions B. Media buying--CPM, GRP, TRP C. Brand legacy D. Recall (remember the ad and the advertiser) and persuasion (remember the benefit) E. The amount of humor and the level of entertainment
Recall (remember the ad and the advertiser) and persuasion (remember the benefit)
Channel members (intermediaries) make the selling of products more efficient by: A. Maximizing the number of contacts necessary between producers and consumers B. Eliminating inventory costs C. Reducing manufacturing costs D. Identifying target markets E. Reducing the number of contacts between producers and consumers
Reducing the number of contacts between producers and consumers
Geographic
Region, city or metro size, density, climate
Convenience Products
Relatively inexpensive products that merit little shopping effort
What is a critical driver for engaging and converting potential customers using social media? A. Multiple media outlets and avenues B. Relevant, inspiring, and engaging content C. Google AdWords D. Product blogs and service sermons E. Short, precise, and promising messages
Relevant, inspiring, and engaging content
The five determinants of service quality are:
Reliability Assurance Tangibles Empathy Responsiveness
Programmed costs
Result from attempts to generate sales volume (advertising, sales salaries)
Functional Brands
Satisfy functional needs -Wash clothes -Relieve pain -Close shave
Nike launched Legend Tights. These tights are marketed to active women ages 18-35 who value performance and style. In deciding whom they shouldexchange with, Nike is: A.Selecting the Target Market B.Segmenting the Market C.Positioning a Product D.All of the above
Selecting the Target Market
Because DuPont marketing managers positioned STAINMASTER as a premium carpet, they selected a distribution type that would make price premiums possible, encourage the use of marketing support tools such as carpet-comparisons and in-store kiosks, and provide adequate national coverage through a limited number of qualified retailers in each geographic area. This distribution type is: A. Intensive distribution B. Selective distribution C. Exclusive distribution D. Competitive distribution E. Dual distribution
Selective distribution
What is generally the best strategy? A. Sell to the swing group through the eyes of the love group B. Sell to the love group through the eyes of the love group C. Sell to the hate group through the eyes of the swing group D. Sell to the swing group through the eyes of the swing group E. Sell to the hate group through the eyes of the love group
Sell to the swing group through the eyes of the love group
Perishable Marketing Problem
Services cannot be stored
Intangible Marketing Problem
Services cannot easily be displayed or communicated
Variability Marketing Problem
Services depend on who provides them and when and where they are provided
Sales Promotion
Short-term incentives to encourage trial or increase purchase (Ex. Coupons, Rebates, Samples, Contests, Premiums, Price packs)
Landyachtz recently launched a new Slide Glove for longboarders--Ly Leather Slide Gloves. The local market segment consists of a few longboarders in Provo Canyon. Retailers in the Utah market are worried that the segment size is not large enough to make this product profitable. Which characteristic of effective segmentation is lacking? A. Accessible B. Durable C. Measureable D. Substantial E. Unique needs
Substantial
What group is your biggest opportunity?
Swing
Perceptual maps show the judgments customers make regarding the performance of a brand's features and benefits. Gap analysis extends the perceptual maps method by asking customers to make judgments regarding: A. Cultural differences among consumers B. The performance of competitive brands C. Psychological differences among consumers D. The importance of a brand's features and benefits to the buying decision E. The performance of external forces in the environment
The importance of a brand's features and benefits to the buying decision
Net Promoter Score (NPS) enables businesses to measure progress of their brand. NPS is the difference between: A. Competitor brands and company brands B. National brands and store brands C. The percentage of brand promoters and the percentage of brand detractors D. The percentage of swing group members and the percentage of swing group non-members E. Introduction stage and growth stage in the product life cycle
The percentage of brand promoters and the percentage of brand detractors
Product positioning is: A. The place a product occupies in the target customers' minds B. Shelf size and location in major retail chains--grocery and department stores C. Geographic segmentation, often within major metropolitan and suburban areas D. A careful analysis of cross tabulationsE. What marketers do to a product3
The place a product occupies in the target customers' minds
Why dosen't "me too" positioning work as a value positioning strategy? A. The positioning approach does not give consumers a reason to change B. Competitors are just too difficult to copy C. Competitors may have lower cost structures D. Imitation is the sincerest form of flattery E. Customers want consistency among competitors
The positioning approach does not give consumers a reason to change
Paid Search (aka PPC)
The process of bidding on key words or terms to improve results ranking when those terms are used in search. Common metrics include cost-per-click (CPC), cost-per-action (CPA), cost-per-thousand (CPM), and click-through-rate (CTR)
Market Segmentation
The process of grouping customers into relatively homogenous sets such that customers within a segment are similar to one another in the way they respond to the marketing effort directed at them.
Natural Search (aka SEO)
The process of making a site and its content highly relevant for both search engines and searchers
Today's salespeople face highly informed customers and unprecedented pressure to sell more and sell faster. To boost performance, sales organizations rely on technology and sales tools. Combined, these technologies and sales productivity tools are called: A. Firm resources B. Productivity enhancers C. Automatic enhancers D. The sales technology stack E. Tech boosters
The sales technology stack
Which of the following sets a service business apart from its competitors? A.The service provider's personal behavior B.The service provider's ability to manage perishability C.The ability to do the job D.Better pricing strategies
The service provider's personal behavior
Market segmentation is the process of grouping customers into relatively homogeneous sets or segments such that customers within a segment are similar to one another in: A. Age and psychographics B. Family and cultural situations C. Their frequency of purchase D. Geographic location E. The way they respond to the marketing effort directed torward them
The way they respond to the marketing effort directed torward them
Create value for consumers through 4 utilities
Time Place Form Possession
Lufthansa (the German airline) faces the service challenge of perishability because the company cannot save seats from the 7:40 am flight from Munich to Stockholm for the 5:25 pm flight from Frankfurt to Rome. What can Lufthansa do to address this service challenge? A. Use pricing to manage fluctuating demand or match supply with changing demand B. Change the physical environment of the aircraft to provide tangible cues C. Diversify into other forms of transportation D. Hire more employees to handle problems quickly E. Provide more training for frontline employees
Use pricing to manage fluctuating demand or match supply with changing demand
Megan recently visited Bumble and Bumble to get her hair cut. The person who cut Megan's hair did and excellent job. In fact, Megan was so pleased that she recommended Bumble and Bumble to her friend Rebecca. The person who cut Rebecca's hair was a different employee. Rebecca was disappointed in the outcome. What characteristic of services helps explain this situation? A.Intangibility B.Variability C.Inseparability Perishability
Variability
If a company is in survival mode, at the very least they should cover _____ costs. A.Fixed and variable B.Fixed C.Variable D.Employee Salaries
Variable
Lower price for more benefits
Very difficult to sustain in the long run Offering more usually costs more, making it difficult to deliver on the "for-less" promise May lose out to more focused competitors
Quantifiable Support
What are the relevant facts and figures that you use to support or enhance the product claims?
Need to Believe
Which significant pain point does the product address that is personally relevant to your target audience?
Dominate Situations
Which usage situations or buying situations does the product dominate in a way that delivers superior value?
Product
a bundle of attributes that satisfies consumers' wants or needs
a form of direct marketing which uses electronic mail as a means of communicating
Exclusive distribution
a level of distribution density whereby only one retailer in a specific geographical area carries the firm's products
Costs of goods sold
a measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale
From most used to most useful, how would you list the ways to segment the market?
geographic, demographic, psychographic, behavioral
Marketing creates value for the firm's ----
chosen customers
strong positioning helps ------, what the brand helps the customer achieve, and how it is unique in doing so.
clarify the brand's essence
Product Development
company growth by offering modified or new products to current market segments
Experiential brands
connect with consumers by helping them achieve basic goals related to physical needs, such as food, shelter, health, safety
3 levels of a product
core, actual, augmented
What is the fastest and most effective way for a company to realize its maximum profit?
get its pricing right
going rate pricing
follow the competition
penetration pricing
low price to penetrate the market
Core Product
personal benefit
Unsought products
products that the buyer does not actively seek
Target return pricing
profit, sales, ROI
substantial
segment is large enough to make products profitable
durable
segment membership is relatively constant
GRP (gross rating points)
reach x frequency
Geographic segmentation variables
region, city/metro size, density, climate
Committed costs
required to maintain the organization (rent, administration, clerical salaries)
Tangible
size, weight, volume, color, ingredients, quantity, etc.
Sell to the ----- group through the eyes of the ----- group
swing, love
Social media marketing
tell the world through social media
Concept testing
testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal
Reliability
the ability to perform the promised service dependably and accurately. Delivering and performing the right service the first time demonstrates reliability.
Positioning
the act of designing a company's offering and image to occupy a distinctive place in the minds of the target market. (The heart of the marketing strategy)
What is Unit Contribution?
the amount of profit each unit sold brings to the table
frequency
the average number of times a person in the target audience is exposed to an advertisment