Tuck 002 Marketing

What influences the length and intensity of consumer search?

Perceived costs vs benefits and Locus of Control (how much control you have. more = longer search) Also risk

On what 5 things should marketers evaluate a segment's attractiveness? What does each mean?

Profitable, substantial, reachable, responsive, identifiable

What is marketing myopia?

focusing only on existing wants and losing sight of underlying consumer needs

When and why would a firm use "seeds" versus direct from firm consumer actions/messages?

if liklihood of WOM was high

What are the core aspects of marketing?

-helps create value -satisfying the customer's needs and wants -entails an exchange -requires product, price, place and promotion decisions -can be preformed by both individuals and organizations -affects various stakeholders

What is the substitution effect? How does it relate to price elasticity? Given a scenario, identify the effect.

Ability to substitute for a focal product

What are reference groups? What is the difference between aspirational and dissociative reference groups?

Actual or imaginary group used for comparison. Aspirational is the group we want to be a part of and dissociative is the group we want to stay away from.

What is the definition of promotion? What are the three potential objectives of promotions?

Any communication that persuades, reminds, informs, or builds relationships. Clarity, consistency, max communication impact

What is a motive? What is the difference between approach and avoidance motives? Given an example, identify whether motive is approach or avoidance.

Approach is positive, such as looking good. Avoidance is negative, such as wanting to avoid smelling bad

What does the acronym "AIDA" stand for (i.e., what does each letter mean)? Given a scenario, identify where the customer is in the process.

Attention interest desire action.

What is psychographic segmentation (i.e., what is it based on)? Why is it used?

Based on how consumers see themselves. Most effective at predicting consumer behavior.

What is benefit segmentation? What is behavioral segmentation? What are the two different types of behavioral segmentation? Given a scenario, identify the segmentation strategy.

Benefit is segmenting on the product benefits. Behavioral is based on how product is used. Occasion and loyalty are the two types.

What is the difference between a brand extension and a line extension? Given an example, identify the extension type.

Brand extension is different product line, line extension is same product line

What is a perceptual map based on?

Brand image as seen in the eyes of consumers.

What happens with brand dilution? (i.e., what causes it and why is it bad)

Brand loses its value by straying from its core competencies

What is the purpose of social marketing?

Change behaviors and attitudes

What is cross-price elasticity? Given a set of products, identify whether they are complements or substitutes.

Change in demand for one product affects that of another

How does co-branding differ from brand licensing?

Co-branding is putting both logos on package. Licensing is paying to use someone else's brand.

What are the three components of attitudes? Given an example, identify the correct attitude component. (tip: think C-A-B)

Cognitive (beliefs), affective (emotions), behavioral (actions)

What are the five Cs of pricing?

Competition, costs, company objectives, channel members, customers

What is the difference between competitive parity pricing and status quo pricing? Given a scenario, identify the pricing strategy.

Competitive parity is setting same as competitors. Status quo is only changing when competitors change

What does price elasticity suggest about the ease of losing customers? (hint: this relates to loss aversion)

Consumers more sensitive to price up than down

What is experimental research and why is it used? What are the two key elements of experimental research? Given a scenario, identify the IV and the DV.

Controlled manipulation of IV and random assignment

With respect to product complexity, what is the difference between the core product, the actual product, and the augmented product? Given an example, identify whether it is the core, actual, or augmented product.

Core is basic benefit. Actual is physical. Augmented is add-ons like repair, warranty, financing, service.

What is Break Even Analysis? What does it tell you?

Costs (fixed and variable), revenue, and profit

What are pioneering firms? Why do pioneers typically lose to competitors?

Create new to the world products but can easily be overcome.

What are the four types of macro marketing strategies? Given a scenario, identify the macro marketing strategy.

Customer excellence = retaining loyal customers and providing outstanding customer service. Locational excellence = physical, geographic location. Product excellence = high perceived value and effective branding and positioning. Operational excellence = efficient operations and excellent supply chain management.

What is CRM and when can it help a firm?

Customer relationship management that emphasizes building relationships for most valued customers

What is integrated marketing communications (IMC)? What is the goal of IMC? How is it related to the marketing mix? What is the key characteristic of a good IMC program?

Delivering a consistent positive message at each contact. Related to promotion.

What is the difference between product line depth vs. product line breadth? Given an example, identify whether a change was made to line depth or breadth.

Depth = within a product line. Breadth = different product lines.

What are the four types of targeting strategies? Given a scenario, identify the targeting strategy.

Differentiated, mass marketing/undifferentiated, concentrated, micromarketing

How does channel structure impact how difficult it will be for manufacturers to partner with retailers? Is it easier when the channel is independent or vertical?

Easier to partner w retailers when structure is independent.

What is price elasticity? Given an example with context, identify whether it is price elastic or inelastic.

Elastic means that a price change causes a lot of change in quantity demanded whereas inelastic goods are not affected as much by price changes (gas)

What is encoding? What is decoding? When consumers interpret the same ad differently or can't understand the meaning of an ad, is that a primarily a problem with encoding or with decoding?

Encoding is converting the sellers ideas into a message. If consumers interpret the same ad differently that would be a decoding problem

What are evaluative criteria and determinant attributes?

Evaluative criteria is set of important product attributes. Determinant attributes are areas where products differ and distinguish themselves.

What are the 4 e's? Can you recognize them in practice?

Excite, educate, experience, engage

What are the two types of consumer needs? Given an example, identify the primary need driving consumer behavior.

Functional and Psychological

Why are marketers interested in generational cohorts?

Generational attributes

Given a scenario, identify the segmentation strategy.

Geographic, demographic, psychographic, benefit, behavioral, geodemographic

What is the difference between High/Low Pricing and Every Day Low Pricing? Given a scenario, identify the pricing tactic.

High/low changes all the time. Every day low means always low

How does cognitive involvement (high vs. low) influence the strength of consumer attitudes and purchase intentions?

Higher involvement leads to strong attitudes and purchase intentions. Low involvement leads to weak attitudes and an increased use of cues.

What is price fixing? What is the difference between horizontal and vertical price fixing?

Horizontal involves competitors colluding. Vertical involves marketing channel members colluding.

What are the three main advertising objectives? When would you possibly use one strategy over another?

Inform persuade remind

What are the five diffusion-of-innovation groups? What is critical about each group with respect to influencing other adopters?

Innovators, early adopters, early majority, late majority, laggards

What are different sources of ideas for new products/services?

Internal R&D, R&D consortia, licensing, brainstorming, outsourcing, competitors' products, customer input

What are the two types of consumer search? What is the difference between the two?

Internal and external

What are the different product life cycle stages? What defines each stage in terms of sales, profits, and competitors? Given an example, identify the stage.

Intro, growth, maturity, decline

What is puffery? Given a scenario, can you identify it?

Legal inflationary claims "world's best cup of coffee"

How does brand loyalty impact price elasticity? When you are brand loyal are you more or less sensitive to price increases?

Less sensitive

What is loss aversion? (tip: how would you describe it to a stanger?)

Losses hurt more than gains.

What is the difference between a market penetration strategy and a price skimming strategy for pricing new products? What are the benefits and drawbacks of each?

Low initial price to gain traction is market penetration. Price skimming is high initial and lower gradually.

What are the elements of the macroenvironment? What are the elements of the microenvironment (hint 3 C's)?

Macro = Culture, Political/Legal, Economic, Technology, Social , Demographics Micro = Company, Competition, Corporate Partners, all centered around consumers

Given a scenario, identify the growth strategy.

Market penetration (same product, same market) Product Development (new product, same mkt) Market Development (New mkt, old product) Diversification (New mkt, new product)

What is the definition of marketing?

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

What is a brand association?

Mental/emotional link a consumer makes between a brand and its perceived value

What are the four types of competition? How do they influence pricing? Given an example, identify the type of competition.

Monopolistic comp, oligopoly, monopoly, pure comp

What are some possible challenges in effectively implementing omnichannel retailing?

Need centralized CRM, consistent brand image, tough pricing decisions, and supply chain management

How does the typical consumer make decisions?

Need recognition, info search, alternative evaluation, purchase, post-purchase

What are medium types and when planning to show ads...why use various strategies/mediums?

Niche =smaller more targeted vs mass = larger but anonymized

In the Expectancy Disconfirmation Model, what are the two factors that influence consumer satisfaction?

Perception minus expectations

What is deceptive reference pricing?

Prices that have been inflated then said to be on sale

What is primary data? What is secondary data? What is the distinction between internal and external secondary data? Given a scenario, identify the data type.

Primary is conducting your own survey. Secondary is other pre-existing data.

What is this model? What is sentiment analysis? What type of metrics are relevant in social media?

Process of identifying and categorizing comments expressed in text to understand consumers' attitudes.

What are the four elements of the marketing mix? How does each element relate to value? Given a scenario, identify the marketing mix element.

Product creates value. Price captures value. Place delivers value. Promotion communicates value.

What are the four types of company orientations that influence pricing strategies? Given a scenario, identify the orientation.

Profit, sales, customer, competitor

What is a push advertising strategy? What is a pull advertising strategy? Who stimulates the demand in each strategy?

Pull is when the company markets the product to consumers then consumers create demand. Push is when the company sells the product to resellers who sell it to consumers.

What type of situational factors influence consumers (and how)?

Purchase situation, shopping situation, temporal state

What is the difference between primary and secondary packaging?

Secondary is bag/box. Primary is what the consumer uses

What is predatory pricing? How does it differ from bait-and-switch pricing?

Setting low prices in order to put competitors out of business. Bait and switch uses low pricing to lure customers in and switches on them with higher priced goods offered too.

What are the links and differences between marketing/business ethics and CSR?

Social responsibility has to do with giving back to the community. CSR has to do with treating employees well and operating ethically within the firm.

What are the four types of consumer products? Given an example, identify the type of product.

Specialty: Unique and consumers will take considerable effort to obtain. Shopping: Consumers spend a fair amount of time comparing Convenience: Unwilling to evaluate alternatives Unsought: Little awareness/interest (insurance)

What type of product (in terms of growth and market share) is a star, a cash cow, a question mark, and a dog?

Star is high growth, high mkt share. Cash cow = low growth, high mkt share. Question mark = high growth, low market share. Dog is low market share low growth.

What are the four elements of a SWOT analysis? Which are internal to the firm and which are external? Which are positive and which are negative? Given a scenario, identify the element of the SWOT analysis.

Strengths and weaknesses are internal. Threats and opportunities are external.

What is survey research primarily used for? What is experimental research primarily used for?

Survey for descriptive knowledge. Experimental for cause and effect

What is the compromise effect and how would it work in practice?

Tendency to choose the middle option

What are the three attribute sets? Which one relates to remembered items? Which one relates to considered items? Given examples, identify the attribute set. (tip: think R-R. "remember" = "retrieval")

Universal, retrieval, evoked.

What are the four different types of positioning strategies? Given a scenario, identify the positioning strategy.

Value (costs to benefits), salient attributes, symbols, competition

What is the difference between a vertical marketing system and independent marketing channel? Which is more likely to have conflict?

Vertical is everything under the same roof. More conflict in independent

What is brand loyalty? What is the relationship between attribute sets and brand loyalty?

Want consumers to always evoke the brand.

What is social proof and when/where do you see it? When it is more or less impactful?

Works best in uncertain situations and when you can trust the other people.

What are some concerns with entering a global market? (hint: consider distribution, culture, communication)

some global distrib channels are long/complex. language differences, culture differences (having your groceries bagged), local brands

What is perception?

the process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events