MKTG 494 Exam #2
[CASE STUDY] According to Gap Inc.'s competitive landscape, the closest competitor of Banana Republic is _______________.
Lucky Brand
[SIMULATION] What was one of the key principles that James, the CEO of Kelsey-White, emphasized in decision-making meetings?
Making decisions based on data and analyses
[SIMULATION] What was the name of the simulation tool that Kelsey-White used to analyze different forecasting scenarios?
Monte Carlo Simulation
"GreenThumb" specialized in gardening tools & supplies. They recently identified a small segment of urban apartment dwellers who are keen on balcony gardening. This segment is unique & very specific but has shown a rising interest in personalized solutions. If "GreenThumb" wants to cater specifically to this segments unique needs using a single marketing mix, which targeting strategy would they employ?
Niche Marketing Niche marketing involves tailoring a single marketing mix to cater to such a small & specific segment
A company that sells luxury cars wants to target a specific segment of customers who value performance and speed. Which of the following is an example of a targeting strategy for this company?
Niche marketing to customers who value luxury and status symbols
3 Assumptions
1: Consumer preferences are stable across time 2: Consumer preferences are generated by consumers themselves and are resistant to marketers' or other social actors' persuasive efforts 3: Consumer preferences guide their purchase behavior, regardless of changes in context
In our case study, Predicting Consumer Tastes with Big Data at Gap, Peck proposed the Product 3.0 Model to predict customer preferences and trends. In the predictive analysis, several important assumptions are needed. Explain at least three assumptions and evaluate the Product 3.0 Model based on the assumptions.
1: Consumer preferences are stable across time 2: Consumer preferences are generated by consumers themselves and are resistant to marketers' or other social actors' persuasive efforts 3: Consumer preferences guide their purchase behavior, regardless of changes in context
[SIMULATION] What was the focus of Fresh, one of the major brands that competed with Blue?
A focus on a fresh, clean smell for clothes washed in it
Which of the following is a potential advantage of using a "House of Brands" strategy in the event of a product crisis?
A product issue with one brand is less likely to affect the perceptions of other brands under the company. A "House of Brands" strategy can act as a protective mechanism, where an issue with one brand does not immediately spill over to the other brands under the same parent company because the consumer might not associate them directly.
"EcoDrive," an electric car manufacturer, has successfully segmented its market and identified a growing segment of young professionals who are environmentally conscious and prioritize sustainable practices. However, these individuals find electric cars to be slightly out of their budget. Considering the factors for target selection, what should "EcoDrive" critically assess before deciding to target this segment?
Adaption Costs to make the product more affordable
An emerging tech company "TechInno" developed a new AI-powered home assistant targeted primarily at assisting elderly individuals with daily tasks and providing companionship through interactive conversations. In creating a marketing strategy for this product, which segmentation variable may be pivotal in targeting their primary market?
Age
"HealthyMunch", a health food brand, has identified three market segments: fitness enthusiasts, individuals with dietary restriction, & busy professionals looking for quick healthy meals. They've assessed that the busy professionals segment has the highest purchasing power but is also heavily targeted by competitors. Given the principles of Targeting, what should they consider doing?
Assess the attractiveness of each segment before making a decision (when targeting, companies need to determine a segment's attractiveness & decide which segments to focus their marketing efforts on. While the segment of busy professionals has high purchasing power, other factors, like competition, should also be considered)
[CASE STUDY] Why was Art Peck slow to open the tap on traditional advertising?
Because he believed that a discovery process was imperative to Gap's success
[SIMULATION] What was the name of the laundry detergent brand that was the primary product line for Kelsey-White in the U.S.?
Blue
Imagine "BeauCafe", a renowned coffee brand, decides to release a new line of premium leather handbags. Which type of brand strategy is BeauCafe employing?
Brand Extensions BeauCafe is known for coffee but is now venturing into a completely different product category (handbags) using the same brand name.
[CASE STUDY] How did Gap Inc. use big data to predict consumer preferences?
By analyzing social media data and online search behavior
[CASE STUDY] How did Product 3.0 enable Gap Inc. to be more nimble and responsive to consumer purchasing data?
By shortening the development cycle
[CASE STUDY] How did Gap Inc. ensure that each brand's unique image was maintained while incorporating trends?
By using each brand's vision statement as a filter for incorporating trends
[CASE STUDY] What was the main challenge faced by Gap Inc. during the time period covered in this case study?
Competition from online retailers
"GreenBeans," a sustainable clothing brand, is working on its market segmentation. They identified two main variables: consumer buying behavior & age groups. They noticed that younger consumers, aged 18-25, are more influenced by trends, while older consumers, aged 40-55, are influenced by the sustainability factor. Which of the following best describes the link between these segmentation variables?
Consumer buying behavior varies with age, indicating a potential interaction between these segmentation variables
XYZ Company recently released a dashboard displaying the monthly sales data of their products for the last year. This dashboard allows managers to view the performance of different product categories across various regions. This type of analytics can be best described as:
Descriptive Analytics Descriptive analytics reports on what happened in the past and can be presented in formats like dashboards. This is primarily about understanding past behaviors.
"TechGlow," a tech-gadget company, has decided to target young professionals with their new range of smart wearable gadgets. They've identified that this segment values seamless integration with their other devices & stylish designs. In the context of Positioning, what should "TechGlow" prioritize?
Develop an action plan emphasizing the integration & design of their gadgets For positioning, once the value proposition for a target segment is defined (in this case, seamless integration & stylish design), the next step would be to develop an action plan tailored to these identifies needs & preferences
"SportyGear" is a company producing athletic wear. After conducting market research, they discovered three primary segments: professional athletes, casual gym-goers, and fitness newbies. However, the company has limited resources and wants to ensure they pick a segment that has the most potential for growth and hasn't been saturated by competitors. Based on the material, which criteria should "SportyGear" prioritize in their decision-making? (choose TWO options / no partial points)
Differentiable/Competitive Situation & Growth "SportyGear" needs to identify a segment with potential growth (indicating future profitability) and ensure that they can offer something unique in a segment where competitors haven't already fully met the needs.
Considering the concept of a perceptual map, if "EcoDrive", a car brand, finds theres a gap in the market for affordable cars with high-end luxury features & they introduce a new car model to fill this gap, what strategy have they primarily employed based on the perceptual map's insights?
Differentiation They are creating a unique market position that distinguishes them from competitors
Which of the following is an example of behavioral segmentation?
Dividing a market based on customers' usage behavior
A company that sells organic food wants to segment its market based on customers' purchase behavior. Which of the following is an example of behavioral segmentation for this company?
Dividing the marker based on customers' usage (Behavioral segmentation divides a market based on customers' usage behavior, such as how often they use a product, how loyal they are to a brand, and how they use a product. In this case, the company wants to segment its market based on customers' purchase behavior, which is an example of behavioral segmentation. For example, the company might target customers who frequently buy organic food and promote its products as a way to support their healthy and sustainable lifestyle.)
A company that sells high-end watches wants to segment its market based on customers' lifestyles. Which of the following is an example of psychographic segmentation for this company?
Dividing the market based on customers' attitudes & values
A company that uses an umbrella branding strategy should prioritize which of the following to mitigate the risk of brand contamination?
Ensuring all products maintain consistent high quality and meeting consumer expectations. In umbrella branding, it's crucial that all products under the brand name maintain a consistent level of quality. A failure in one product can lead to brand contamination, negatively affecting the perception of other products sharing the same brand name. By ensuring consistent quality and meeting consumer expectations across all products, the risk of contamination is minimized.
A company wants to understand the primary reason for a sudden drop in sales of one of their most popular products. To get to the root cause, they first aim gather broad information before diving into specific details. What type of marketing research are they initially conducting?
Exploratory Research (conducted to gain insights & ideas about a particular issue, the company wants to explore the broad reasons behind the drop in sales)
To maximize usefulness of your segmentation, the segment must be _____________________.
Identifiable, Substantial, Accessible, Actionable
"GreenHome," a company that sells sustainable home goods, has successfully identified a segment of environmentally conscious consumers. However, they are struggling with their marketing efforts. Which of the following aspects of effective segmentation might "GreenHome" need to reconsider to ensure their marketing strategies are effective?
Identifiable, accessible, differentiable
A food delivery company is conducting a survey to understand the key reasons for customer dissatisfaction. Which question is LEAST likely to yield specific & actionable feedback?
Is our food delivery service good?
[SIMULATION] What was one of the reasons why Blue detergent was still a profitable product for Kelsey-White?
It had a loyal customer base
[CASE STUDY] What was fabric platforming of Product 3.0, and how did it help Gap Inc.?
It was a process of buying large quantities of fabric and holding it in inventory to quickly create designs
A company uses a perceptual map & notices that there's a gap in the market, suggesting no competitors are currently satisfying a particular consumer segment's needs. What should the company be cautious about before launching a product in that gap?
Just because there is a gap doesn't mean there's demand
[SIMULATION] What was the primary product line for Kelsey-White in the U.S.?
Laundry detergent
A company, "HydroTech", produces state-of-the-art water filtration systems. They've developed a new filtration product that provides a fast flow rate than any other product on the market. To introduce this new product, they decided to use the "HydroTech" name but with a unique design & logo different from their primary water systems. What brand development strategy are they using?
Line Extension (HydroTech is introducing a product in a category)
Evaluate the statement & explain why: On a perceptual map, two brands, "Brand A" & "Brand B", appear close together based on price perception. Therefore, in reality, prices of "Brand A" & "Brand B" are very similar
Not true, in reality "Brand 1" is priced significantly higher than 'Brand 8". It's because the map is based on customers perception, which can differ from real market values
FreshFoods, a grocery store chain, decided to place cameras in select stores (with proper permissions & disclosures) to observe how customers shop & which aisles they spend the most time in. This method of gathering primary data can be best described as:
Observation
A tech company wants to improve its new smartwatch's user experience. Which of the following survey questions is most effective for gathering specific feedback about the watch's battery life?
On a scale of 1 to 10, how would you rate the battery life of our smartwatch?
Data Typology
PRIMARY = Non-Experimental (qualitative/quantitative) = Experimental (field/laboratory) SECONDARY = internal or external
[SIMULATION] What was one of the formulations in which Blue detergent was sold?
Powder
John, a market analyst, uses previous years' data on clothing sales to predict the likely sales for the upcoming winter season. He factors in variables such as past trends, economic conditions, and other relevant external factors. What kind of analytics is John employing?
Predictive Analytics Predictive analytics use past data and statistical models to make predictions about the future. In this case, John is predicting future sales based on past data.
Data Typology: You & your department conduct the survey investigating customer satisfaction
Primary --> non-experimental --> quantitative (survey)
Jenna is a researcher who wants to gather data on the impact of a new teaching method in an actual school setting. She aims to measure the performance of student taught under this new method compared to a control group under the conventional method. Which type of data collection methodology is Jenna using?
Primary, Experimental, Field She's collecting the data firsthand (Primary), she's setting up an experiment with a control group (Experimental), & she's doing it in a real world setting (Field)
Which of the following is NOT a common way to segment a market?
Product Segmentation
"BookMates" is an online bookstore looking to expand its market share. They've identified three segments in their market: avid readers who buy books frequently, occasional readers who purchase only best-sellers, and students who need academic books. Based on STP strategy, which of the following steps should "BookMates" take next?
Profile each of the identified segments to understand their specific needs. After dividing the market into distinct groups, the next step in Segmenting is to profile each segment to get insights into their specific needs and preferences.
A company named "SnackHeaven" sells a variety of snack items and wants to implement market segmentation for its new line of vegan snacks. Which type of segmentation might be most relevant for them to focus on, considering the specific nature of the new product line?
Psychographic Segmentation
Data Typology: You & your department compare the competitor's price offered by a reliable public report
Secondary --> external
Data Typology: You & your department set the marketing campaign objective according to the past sales revenue from the sales department
Secondary --> internal
"ReadNow", a book publishing company, traditionally catered to the mass market with generic novels. However, with an influx of specialized reader segments emerging, such as young adult fantasy enthusiasts or historical fiction aficionados, "ReadNow" is contemplating a change in strategy. What type of targeting strategy would best allow them to cater to these specific reader interests without alienating the broader market?
Segment Marketing
A company that sells skincare products wants to target a specific segment of customers who are concerned about aging. Which of the following is an example of a targeting strategy for this company?
Segment marketing to customers based on their age and income
[SIMULATION] What was the format in which Blue detergent was sold that had slow sales compared to other competitors?
Single-use pods
A firm preparing to introduce a new deodorant has learned that more competitors are offering products formulated for women than men. This finding most likely emerged during the ______ step of the firm's STP process.
Targeting
[SIMULATION] What was the average age of Blue's customers, and how did this affect the product's market share?
The average age was increasing, which caused the product's market share to decrease.
[SIMULATION] What was one of the main challenges faced by Kelsey-White in managing their Blue detergent product line?
The product faced competition from other major brands
[CASE STUDY] What was the role of creative directors at Gap Inc. before Art Peck's changes?
They were responsible for providing taste inspiration and ideas for each brand
[CASE STUDY] What was the main goal of Product 3.0 at Gap?
To improve the company's supply chain responsiveness and inventory management processes
Given the understanding of a perceptual map, which of the following best describes its primary purpose?
To visualize a brand's position in the market relative to competitors based on certain attributes
[CASE STUDY] What was the main question that Gap Inc. faced regarding its distribution model?
Whether to partner with Amazon and allow it to sell Gap's branded products through its online platform
Line Extension
existing brand name, existing product category Ex: Different Oreo flavors (berry, fruit punch), POrsche 911 models
Brand Extension
existing brand name, new product category Ex: Oreo ice cream, Porsche SUV
Types of Segmentation
geographic, psychographic, behavioral, sociodemographic volume & profitability, variables specific to a market
House of Brands
home to numerous brands, each independent of each other, with its own audience, look, & feel Ex: Unilever = Dove, Lipton, Axe. Gap = Old Navy, Banana Republic, Athleta
Predictive Analytics
make use of statistical models on past data to make future predictions
Prescriptive Analytics
models or analyses that inform people how best to perform a specific task at their job (reccomendation)
Multi-Brand Approach
new brand name, existing product category Ex: a cookie brand (that's not Oreo), Porsche owns BUgati
Descriptive Analytics
report on what happened in the past,
Umbrella Brand
the brand stands for all the samevalues across the category or range of products & have same emotional link Ex: Amazon, Nivea
