Principles of Marketing
Value Proposition
A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings
According to the marketing mix, if shampoo is sold through grocery stores or a drugstore, and the type of customer is a discount customer, then the shampoo company is more likely to:
Duda> package the shampoo in low-cost packaging unique visitors, search engine traffic, conversion rate
Marketing orientation
an approach focused on identifying and understanding the customer's needs and wants and addressing them more effectively/efficiently than one's competitors
Sales orientation
an approach focused on selling a product and using promotion techniques to attain the highest sales possible, regardless of what a customer wants
Production orientation
an approach focused primarily on technology, innovation, and low production and distribution costs
There are 100 apartment complexes (worth ~$350K annually in potential contracts), that the Go Green recycling company has identified which don't offer recycling for their tenants. The city just passed a law requiring large apartment complexes to recycle. Go Green has contacted apartment complex owners offering their services with mixed results. Which one of the criteria for defining a potential market is missing from this example?
an organization has the ability to pay for the service
Substitute offerings
are viewed by the user as alternatives. The substitution is not a perfect replication of the offering, which means that it will provide different value to customers.
Jose needs a new mountain bike since his old one was run over by the garbage truck. He has seen the Trek bike company sponsoring races and seen its logos worn by top riders, so he decides to purchase a Trek bike. Jose was influenced by which marketing tool?
branding
The local professional soccer team stadium displays an advertisement for Domino's pizza at halftime. What type of marketing it this?
business to consumer (B2C)
The Geneva Steel company sells its raw steel to WEXCO, an automotive windshield wiper manufacturing company. This transaction is known as a:
business-to-business (B2B) transaction
According to marketers, what happens when a frozen yogurt customer, Radley, goes on social media promoting his preference about a yogurt shop's service and flavor offerings?
he potentially generates new business
The Ladders is a career search site specializing in high income ($80k+) job placement. Their headline, "Your career is our job," indicates to the customer the company will work hard until you are satisfied. The visual layout of its website also indicates organizational clarity to speed you toward your new job. What has this website done a good example of conveying?
value proposition
The Clean Guys office cleaning company has a value proposition of, "America's most trusted janitorial service and commercial cleaning company." Their value proposition statement is:
very specific and compelling to their target
A value proposition should be clear, compelling, and differentiating.
1. Clear: short and direct; immediately identifies both the offering and the value or benefit 2. Compelling: conveys the benefit in a way that motivates the buyer to act 3. Differentiating: sets the offering apart or differentiates it from other offerings
three-step process is most effective:
1. Continuously collect information about customers' needs and competitors' capabilities 2. Share the information across departments, including production and sales 3. Use the information to create a competitive advantage by increasing value for customersTerm
Four C
1. Customer solution: what the customer wants and needs 2. Communication: a two-way dialogue with the customer 3. Convenience: an easy process to act or buy 4. Cost: the customer's cost to satisfy that want or need
Marketing Mix
1. Product: the goods and services offered 2. Promotion: communication and information 3. Place: distribution or delivery 4. Price: ensuring fair value in the transaction
competitive offerings
A competitor is providing the same offering but is accentuating different features and benefits
The Undress company produces a dress that women use to quickly and easily change in public. The company is just over a year old and has been successful through a Kickstarter campaign. The Undress company has identified a customer segment, but if it wants to reach a larger customer segment market outside of the Kickstarter family, what question must it answer?
How can it identify and reach the larger market more effectively?
The BFD International company just adjusted its corporate goals for the year. In order for the company to attain these goals, the marketing team must identify how to market accurately by creating:
Marketing objectives
High lifetime value customers bring more money to a company when managed well. How do you manage these customers to bring more value to your company?
Measure and improve their satisfaction
Henry Ford is credited for famously saying, "Any customer can have a car painted any color that he wants so long as it is black." Which orientation concept is used by Ford's philosophy? product concept marketing concept sales concept
No es "Sales Concept"
Kimball's Vintage Hats is an online-only business selling unique and affordable replicas of vintage designer hats. The business is new, but Kimball worked in Europe for years as a milliner. He sells his wares through an Etsy storefront and has the objective of becoming successful enough to work full time at his passion, this company. What tool or model would most assist Kimball's Vintage Hats to effectively set its marketing objectives and strategies?
SWOT analysis
Zeus' Boltz, a bolt manufacturer, pays a large sales staff to focus its efforts primarily on selling its bolts to vehicle manufacturers. They push purchases regardless of the manufacturer's needs, which often causes business relations problems. Zeus' Boltz is an example of a company using which marketing philosophy?
Selling concept
Defining Your Target Market
Step 1: Identify the Business Need You Address Step 2: Segment Your Total Market Step 3: Profile Your Target Customer Segment(s) Step 4: Research and Validate Your Market Opportunity
Customer:
a person or organization who pays to consume a product or service; the customer has needs/wants that the business seeks to address
If a corporation sets a company objective of increasing its net profit this year by 5%, what marketing objectives and strategy are being used to achieve the corporate objective?
add new product features customers asked for and increasing product price point
A lighthouse lantern company objective is to increase its market through entering the international lighthouse market. The marketing department set its strategy of increasing company market share by partnering with a large shopping center developer. In order to align with the corporate objectives and strategy the marketing department needs to:
align with the company objective, abandon the shopping mall development market and focus its efforts on the international community of lighthouses
The purpose of a value proposition is to quickly and easily convey a company or organization's product or service offering to its intended target market. For an organization or business to accomplish this and communicate an effective value proposition message, the value proposition should be:
clear, compelling, differentiating
Listia lets people list their stuff, sell their stuff for credits, then turn around and use those credits to purchase things on its website. Its value proposition is, "Get rid of old stuff. Get new stuff for free." Identify some of the aspects of their value proposition:
compelling and motivating to use website
Two candy bar makers sell a chocolate bar that contains coconut and almonds. One company is a well-known national brand name, while the other is a small local candy company that has been marketing its local roots extensively. A customer who likes to support local businesses and is familiar with the local brand chooses the local company's bar and doesn't mind paying $.50 more for it. This is an example of the local company having a:
competitive advantage
William has been playing a rented saxophone for the last three years. He has now saved up enough money to purchase a new one, so he visits his local music store. The music store sells saxophones from two main companies. One company offers just the saxophone while the other includes reeds, cleaning equipment, and a buffing cloth. The instruments are the same price, so William decides to purchase the second one that includes the extra components. The choice William made was based on the instrument maker's:
competitive offering
The Guardian Express, a community newspaper, has identified a potential new customer segment for its product. What next step should it take to validate that the new market is large enough to pay for the targeted marketing campaign and grow its circulation and revenues?
conduct market research
YouTube channel entertainer Flula Borg identified a potential new viewer segment to increase his popularity and number of subscribers. What is the next step he should take to validate that the new market is large enough to increase his subscribers and increase his YouTube ad sales?
conduct market research
The San Francisco Fun Factory sells kites, toys, and star lanterns. It ran financial reports from the last year which indicate the store has lost 20% of its market share. Before the SF Fun Factory goes through the exercise of analyzing all of the marketing mix areas it should first:
consider and set it business goal
The Great Planes radio-controlled plane company is slowly gaining in its sales. Last year the company increased its presence and share in the R/C airplane model market by 10%. Great Planes set a sales objective for the next year to increase its marketing share 20% more than last year. Before the company focuses on its marketing mix it has first:
consider its goals
Patagonia's mission is to, "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis." To match this mission, they design and sell useful things made to last and ask their customers not to buy what they don't need or can't really use. This statement is an example of a mission statement affecting the company's:
corporate strategy
What two components of a business's product or business unit does the BCG Matrix address?
current market share and the market's growth potential
The value that predicts how much profit is associated with a customer during their lifetime relationship with a company is the definition of:
customer lifetime value
A marketing discipline that combines computer technology and databases with marketing communication and customer service is the definition of:
customer relationship management
In today's competitive landscape, a company like Netflix can be a marketing success if it puts what guideline as its main focus?
customer satisfaction
If a skateboard company allows customers to customize the color, design, and size of wheels on their skateboards, which area of marketing's four Cs is it utilizing?
customer solution
Surf Diva, a surf instruction company, finds an unmet need in teaching teenage girls how to surf. The girls that attend its classes are:
customers
situation analysis
examines both the internal and external factors that might impact the marketing plan.
The Indigo Independent bookstore set a goal to increase the foot traffic to its shop and boost book sales by 10% over the next three months. What type of metrics could capture some of the data necessary to give a more accurate reading of how to reach these goals?
first-time shop visitors, how visitors heard about the shop,
Your coworker Zander is looking for a product that helps him plan and record his year effectively. He wants it to also tie in his overall goals with yearly goals. You remember seeing a social media post about a planner by FranklinCovey that meets all of Zander's criteria. You tell Zander and he buys the planner. You just experienced how marketing can:
highlight solutions to problems
You are trying to define your target market for a travel agency service. Identify the correct order of the market targeting steps:
identify business needs, segment total market, profile target customer segment, research and validate marketing opportunity
You are trying to define your target market for a travel agencycompetitive offering service. Identify the correct order of the market targeting steps:
identify business needs, segment total market, profile target customer segment, research and validate marketing opportunity
A business has developed a product, but is unsure where to focus its efforts to sell the product. Marketing can help this company by:
identifying potential customers
The marketing strategy created for a cell phone accessories company was put together after conducting a SWOT analysis which looked at the company's internal strengths and weaknesses and external opportunities and threats that it faced. This process is known as identifying:
inputs
Klozers offers business to business sales training to clients. Look at the website picture above and identify why this is a powerful value proposition
it is compelling and very specific
Bud's Bucket ice cream company produces a chemically enriched ice cream and decides to penetrate the gourmet market by offering its same ice cream at premium prices. What might happen as a result of its market penetration strategy?
it may turn off its current customer base and cause them to purchase a competitor's ice cream
Chobani chose to price its product at close to $1. It based its marketing mix pricing decision by assuming:
it would be successful and have economics scale
When Arm & Hammer Baking Soda company ran ad campaigns highlighting all of the additional uses for its baking soda product besides deodorizing the refrigerator, what market strategy was it using?
market development strategy
In 2001 Chipotle, a fresh Mexican grill, committed to increase its use of naturally raised meat, organic produce, and dairy without added hormones. In 2015, after listening to its customer base, it now offers all organic, non-GMO (non-genetically modified organism) ingredients for its meals. Chipotle is using what type of marketing approach?
market orientation
In 2005 the hamburger restaurant Heart Attack Grill opened its doors and offered its customers food "so bad for you it's shocking." To meet the desires of its customers, they added a new promotion. If a customer finishes a Triple or Quadruple Bypass Burger, they are placed on a wheelchair and wheeled out to their vehicle by their own "personal nurse. " Heart Attack Grill is using what type of marketing approach?
market orientation
The term that best describes the process of identifying, satisfying, and maintaining customer relationships is:
marketing
A company's strategy stems from the ideology that "the customer is king," and the company tries to understand its customer as much as possible. Which concept is the company using to drive its success?
marketing concept
The mix of factors a company or organization uses to bring value to its target customers is the definition for the:
marketing mix
Qing Yuan just stepped out of a meeting with the executives in her import/export company. She presented a plan that described how the corporate goals and objectives would be incorporated into a marketing plan which would move the company towards meeting those goals. What group of measurable targets must be created to drive this plan forward to meet those goals?
marketing objectives
You are asked to create a tool the company you work for can use to focus its customer identification and acquisition strategy, plan strategic moves within the competitive market environment, focus company resources, and use the 4Ps of marketing to achieve the company's goals. You would be smart to create a:
marketing plan
Beatrice's Vintage Dresses is an online-only business selling unique and affordable replicas of vintage designer dresses. Beatrice ran a SWOT analysis and discovered that she has opportunities to partner with other Etsy vintage fashion designer shops for cross-promotions. Her SWOT analysis has a direct effect on her:
marketing strategy
A tax software company aligned its overall corporate objectives with its marketing mix strategy and tactics. When the time came to use its strategy and tactics, the team failed to enforce the new plans and returned to older plans of the 4Ps mix. They spent ⅔ of the allocated total marketing funds to run online advertisements in head-to-head competition with a well established tax software competitor instead of sticking with its original advertising campaign strategy. What areas did this company fail to do well?
marketing-mix objectives and tactics implementation and aligning their budget
A new homeless housing nonprofit begins a social media campaign to build general population awareness for its s
meeting and getting acquainted stage
An organization called The Road Home provides people otherwise without a place to stay temporary shelter for a night at no cost to them. This organization is an example of a:
non-profit organization
Skullcrushers makes bodybuilding weights and weight bars. For 2016 they plan to offer a new product line of weight benches to the marketplace. It planned on increasing its market share in the bodybuilding equipment market 5% by rolling out marketing campaigns to extreme athletes and obtain 1000 new leads for its new product line by July 2016. This is an example of a company's:
objectives
After thinking through the marketing mix, if a disposable razor is sold through a drugstore or grocery store to a discount type of customer, the disposable razor company is more likely to:
package the razor at low cost packaging
Randy owns a shoe company and recently retooled his company's marketing mix strategy. His new target market is wealthy, craftsman-quality-seeking younger individuals. He has hired more craftsmen in his factory, purchased premium materials to construct high-quality shoes and will distribute the shoes through Nordstroms, Zappos, and his own website. Shoe prices now begin at $500 and up. What promotion strategy would support the rest of his marketing mix decisions?
partner with a young celebrity to endorse his shoe brand
A customer is deciding between two milk chocolate ice creams that contain peanut butter and bananas. One company is a small local dairy company and the other a well-known national brand. The customer does not like the taste of the national brand ice cream and chooses the local dairy company ice cream, paying $1.50 more for it. This is an example of a:
perceived or added value
A cotton swab manufacturer looked at its abysmal sales figures and conducted an organizational situation analysis. Next, it decided on its marketing goals and began creating its marketing plan. What is a next step for it?
planning effective strategies and specific tactics to accomplish the strategic objectives
Tom has analyzed the competitive landscape of cookbook costs, what a customer is willing to pay for a cookbook, and what the target customer uses to evaluate a cookbook's value. The marketing mix area Tom is focused on is:
price
A GoPro camera is an example of what component of the 4Ps marketing mix
product
The TomTom Bandit camera is an example of which marketing 4Ps component?
product
When the Dove soap company decided it wanted to increase the size of its market, it chose to develop and offer a shampoo product under its Dove brand. Which strategy did Dove use?
product development strategy
The 4Ps of marketing are:
product, price, promotion, place
Apollo Tyres tire company focuses specifically on the technical aspects of their tires. They often have leftover inventory because as great as their tires are, they do not meet many customer's needs. Instead of focusing on their customers, what marketing philosophy does Apollo Tyres use?
production philosophy
A nonprofit raising awareness of post-traumatic stress disorder that is asking questions about its potential clients, such as "Who will use the service? Where are they located geographically? What is their annual income?" is in what part of the target market defining process?
profiling target customer segment
A dog grooming business is walking through the target market defining process and is now asking questions about its potential customers, such as "Who will buy the service? Where are they located geographically? How do they want the service delivered?" What part of the process is the business currently using?
profiling target customer segments
Your company's marketing manager implements the company's new marketing strategy and tactics on the market. What types of information does your marketing manager need to monitor to judge the plan's implementation success and strategic effectiveness?
profits, customer relations, sales information, and competitor reactions
A product is targeted to a risk-averse individual who makes $40k a year, reads Knit Simple magazine, is college educated, belongs to a local book club, and takes a vacation each year to the same place. What type of segmentation was used to market the product?
psychographic segmentation
A local property management company has seen little increase in its revenues over the last year. Its new marketing director, Kim, conducts several segmentation surveys and discovers an improper alignment of company marketing efforts with its actual and potential customer segments. With customers more clearly identified, Kim strategizes the types of marketing campaigns to effectively reach these current and potential customers. Kim used segmentation identification to meet which of her company's objectives? In order for segmentation:
reducing company risk by deciding where, when, how, and to whom a product, service, or brand will be marketed
Reyna is the marketing director at a large accounting firm in New York City. The CEO has asked her to update the company's current marketing plan to reflect changes in technology, competitors, and new customer acquisitions through the marketing mix channels. What additional area of the marketing plan should Reyna be sure to cover?
resource allocation to reach targeted customers
Easy Walk, a pet leash company, doesn't conduct customer surveys. If it had it would discover that one of its main leash lines frequently snags and breaks, and customers are dissatisfied. The product defect is not addressed and nothing changes for the customer, so the customer leaves. Because the company did not have good marketing, it failed to
retain customers
A balloon manufacturer is trying to grow its sales by better addressing the needs of its customers. Besides party stores, the company doesn't really know who purchases balloons from it. What should the company do to understand its customers better?
run a segmentation analysis of current customers
As a company owner, you are trying to grow your party supply sales by reaching new customers. You know most of your customers are college students in their early 20s, but you conduct more research of your sales and discover customers who are business with events. This market is located within a 25 mile radius, they are mid- to small-sized companies with main holiday events and smaller birthday and retirement parties. You have just conducted customer:
segmentation
Zeus' Boltz, a bolt manufacturer, pays a large sales staff to focus its efforts primarily on selling its bolts to vehicle manufacturers. They push purchases regardless of the manufacturer's needs, which often causes business relations problems. Zeus' Boltz is an example of a company using which marketing philosophy?
selling concept
Better Mudder, the three-year-old mud race organization, has a goal of increasing its racing market share by 20% over the next year. It looks into how to accomplish this and discovers a low repeat runner rate. As it digs further it finds that three more mudding race organizations have started in the area this year. With increased competition, Better Mudder must change its new runner offerings and generate higher loyalty in current mudding participants. To identify this information, Better Mudder conducted a:
situation analysis
Chobani was able to grow demand for its product by leveraging what "Promotion" strategy?
social media
Beverly just finished her five-mile run and is now at the drugstore deciding on a beverage. She enjoys cola soda but feels like something lighter today. In the soda aisle she considers Sprite or 7-Up. To her they taste about the same, but she notices that Sprite is having a sale and she can get two for the price of one 7-Up can. She purchases the two Sprite cans and happily goes on her way. Beverly has just experienced a:
substitute offering situation
The company BarkBuddy decided to pursue a product allowing customers to use its phone app to find a dog for adoption. The app lets a potential owner swipe through profiles of nearby dogs needing a home with a simple Yes or No. Its users tell BarkBuddy what they are looking for in a dog and fill out a form for a pre-screening. BarkBuddy's details indicate that it has decided on its:
tactics
Zingerman's Deli in Michigan is deciding which new sandwich to add to their menu. There was a month of customer voting, employee voting, and corporate feedback as well to consider. Each segment chose different sandwiches. If the company follows the marketing mix smartly, which sandwich choice should be added to their menu?
target customer's sandwich choice
Gabrielle is a marketer with a non-profit organization building schools in Ecuador. She is given the task to evaluate the organization's new value proposition. To best evaluate the value proposition, she should come from the perspective of the:
target market
Kayden is a marketer with a business that sells office supplies to other businesses. The company has a new proposed value proposition from the executives and it is his task to evaluate the new value proposition for effectiveness. The best way for him to evaluate the value proposition is to think from the perspective of the:
target market
Chuck E. Cheese's focuses their resources and marketing messages to specifically address their desired customers: families. Chuck E. Cheese's marketing focus is known as:
targeting
An example of the 4Ps Promotion area of the marketing mix is a:
text announcing a year-end sale to customers
Exchange process
the act of obtaining a desired object from someone by offering something of value in return
Candice is an advertising intern evaluating value propositions for effectiveness. She has looked through five potential value propositions for the company and found none of them compelling enough. What elements did she most likely identify as the reasons for their ineffectiveness?
they were generic, and they had no unique value
Over the last two years the consumer foods market has shifted toward a desire for healthier foods. The product manager of a breakfast cereal company designed a new healthier cereal but was uncertain how it would be received by the market. Josh, the plant's marketing director, conducted a focus group of existing and potential customers to observe their responses to the new cereal. In order for the information from the focus group to be most beneficial for the company, what must Josh discover about the customers' feedback?
what holds the greatest value for them
A marketer conducted a target customer feedback survey that captured many points of information from customers. For a marketer to understand value, they must discover:
what the target customer value as greatest