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