Basic Marketing Concepts and Strategies
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Questions and Answers

Which stage of the product life cycle (PLC) is characterized by rapid market acceptance and increasing profits?

  • Maturity
  • Growth (correct)
  • Introduction
  • Decline

    • What is a 'fad' in the context of product cycles?

  • A period of temporarily high sales due to intense consumer enthusiasm. (correct)
  • A widely accepted style in a particular field.
  • A long-lasting trend in the market.
  • A basic and distinctive mode of expression.

    • In the maturity stage of the PLC, what is a common strategy that companies might use to extend the product's life?

  • Finding new consumer segments or modifying the product. (correct)
  • Increase pricing substantially to maximize profits.
  • Reduce marketing efforts and allow sales to decline naturally.
  • Drop the product from their line.

    • What is the primary focus of customer value-based pricing?

    <p>The consumer’s perception of the product's value.</p> Signup and view all the answers

    During which stage of the product life cycle are profits typically the lowest?

    <p>Introduction stage</p> Signup and view all the answers

    Which of the following represents a 'style' according to the text?

    <p>A basic and distinctive mode of expression</p> Signup and view all the answers

    What is the role of price within the marketing mix?

    <p>It is the only element which generates revenue.</p> Signup and view all the answers

    In the context of international product introductions, what does the passage suggest is important besides ensuring correct translation on packaging?

    <p>Understanding subtle differences for logos and symbols.</p> Signup and view all the answers

    What is the primary goal of differentiating a market offering?

    <p>To create superior customer value</p> Signup and view all the answers

    Which element of the marketing mix refers to activities that communicate the benefits of a product?

    <p>Promotion</p> Signup and view all the answers

    In a SWOT analysis, what do 'weaknesses' refer to?

    <p>Internal limitations of the company</p> Signup and view all the answers

    What is the purpose of marketing implementation?

    <p>To turn marketing strategies into marketing actions</p> Signup and view all the answers

    What does 'operating control' primarily focus on within marketing control?

    <p>Checking performance against the annual plan</p> Signup and view all the answers

    What is the formula for calculating the return on marketing investment (marketing ROI)?

    <p>Net return from marketing investment divided by the cost of investment</p> Signup and view all the answers

    Which of the following is NOT a component of the microenvironment?

    <p>Large scale economic forces affecting the entire economy</p> Signup and view all the answers

    Which phrase best describes the marketing environment?

    <p>The actors and forces that affect the company's marketing ability</p> Signup and view all the answers

    Which of the following best describes the concept of 'consumer buyer behavior'?

    <p>The buying actions of final consumers for personal consumption.</p> Signup and view all the answers

    What does the term 'consumer market' represent?

    <p>All individuals and households that purchase or acquire goods and services for personal use.</p> Signup and view all the answers

    Which of the following is the best definition of 'culture' in the context of consumer behavior?

    <p>The basic values, perceptions, wants, and behaviors learned from society.</p> Signup and view all the answers

    What are 'subcultures' characterized by?

    <p>Groups with similar values and behaviors, based on shared experiences.</p> Signup and view all the answers

    How are 'social classes' best described in relation to consumer behavior?

    <p>Relatively permanent and ordered societal divisions with similar values.</p> Signup and view all the answers

    What is the main purpose of 'buzz marketing'?

    <p>To create opinion leaders and act as brand ambassadors.</p> Signup and view all the answers

    What distinguishes a 'membership group' from a 'reference group'?

    <p>Membership groups are places a person belongs to, while reference groups act as comparison points.</p> Signup and view all the answers

    Why do marketers try to identify 'opinion leaders'?

    <p>Because they tend to have strong social influence on others.</p> Signup and view all the answers

    What is the primary goal of 'idea screening' in the new product development process?

    <p>To filter out non-viable product ideas efficiently to save resources.</p> Signup and view all the answers

    Which of the following best describes 'concept testing'?

    <p>Presenting a group of target consumers with detailed versions of the product idea to gauge their interest.</p> Signup and view all the answers

    Which of these is NOT a component of 'marketing strategy development'?

    <p>Creating a physical prototype of the product.</p> Signup and view all the answers

    What does 'business analysis' primarily seek to determine?

    <p>If the estimated sales, costs, and profits align with the company’s goals.</p> Signup and view all the answers

    What is the crucial outcome of 'product development' in the new product process?

    <p>A physical product that is ready to be sold in test markets.</p> Signup and view all the answers

    What is the primary purpose of 'test marketing' in new product development?

    <p>To evaluate the product's initial marketability and performance in realistic conditions.</p> Signup and view all the answers

    What is a key characteristic of 'customer-centred new product development'?

    <p>Focusing on finding new ways to solve customer problems.</p> Signup and view all the answers

    In the context of new product development, what does a 'team-based approach' emphasize?

    <p>Close collaboration and overlapping steps across company departments to speed up development.</p> Signup and view all the answers

    What is the primary function of a company's mission statement?

    <p>To define the organization's purpose.</p> Signup and view all the answers

    In the context of the Boston Consulting Group (BCG) matrix, what characterizes a 'cash cow'?

    <p>Low growth but high market share, producing cash.</p> Signup and view all the answers

    Which of the following best describes the core concept of strategic planning?

    <p>Ensuring alignment between the organization's goals and its evolving marketing opportunities.</p> Signup and view all the answers

    How does the Internet primarily impact marketing, according to the text?

    <p>It provides new ways to track customers and create products based on their needs.</p> Signup and view all the answers

    What is the main purpose of portfolio analysis in a business?

    <p>To evaluate the different products and businesses that make up a company.</p> Signup and view all the answers

    According to the provided content, what is a key difference between Web 1.0 and Web 2.0?

    <p>Web 1.0 was primarily about information, while Web 2.0 facilitated connections between people.</p> Signup and view all the answers

    In a growth-share matrix, what investment strategy should be considered for 'question mark' SBUs?

    <p>To build share through strategic investment as these could be profitable.</p> Signup and view all the answers

    Which units are classified as 'dogs' in the growth-share matrix?

    <p>Units with low growth and low market share.</p> Signup and view all the answers

    What does managing service productivity entail?

    <p>Guaranteeing employees are skilled while harnessing the potential of technology.</p> Signup and view all the answers

    Which of the following defines brand equity?

    <p>The differential impact of brand recognition on a customer's buying decision.</p> Signup and view all the answers

    What is the main purpose of brand valuation?

    <p>To determine the overall financial worth of a brand in monetary terms.</p> Signup and view all the answers

    Which of these is NOT a critical factor in choosing a brand name?

    <p>The name should be commonly used to ensure easy translation.</p> Signup and view all the answers

    What are 'store brands' primarily associated with?

    <p>Brands that are exclusively created and owned by retail sellers.</p> Signup and view all the answers

    What is the essence of 'co-branding'?

    <p>The joint use of two different brand names on a single product.</p> Signup and view all the answers

    What does 'line extension' involve in the context of branding?

    <p>Introducing variations of an existing product, using the same brand.</p> Signup and view all the answers

    What is the primary aim of 'new product development'?

    <p>To create novel items, updates to existing products, and new brands.</p> Signup and view all the answers

    Study Notes

    Basic Marketing Concepts

    • Marketing is managing profitable relationships by attracting new customers and keeping current ones satisfied. It's about satisfying customer needs, creating value for customers, and building strong relationships.
    • Customer needs, wants, and demands: Human needs are states of deprivation, wants are the form needs take in a given culture, and demands represent wants backed by buying power.
    • Market offerings are combinations of products, services, and experiences offered to satisfy needs or wants; may include tangible and intangible components; market myopia is focusing on products instead of customer needs.
    • Value and satisfaction build customer relationships. Exchanges are obtaining desired items through reciprocation. A market comprises potential and actual buyers of a product or service. Marketing involves serving target customers in a competitive environment.

    Designing a Customer-Driven Marketing Strategy

    • Marketing management is choosing target markets and building profitable customer relationships.
    • A value proposition is the set of benefits a company promises to deliver. Five popular marketing concepts are production, product, selling, marketing, and societal.

    Constructing an Integrated Marketing Plan

    • A marketing strategy includes targeting desired customers and how to deliver value. Integrated marketing plans provide tools for implementing these strategies; these tools include the four Ps: product, price, place (distribution), and promotion.
    • CRM (Customer Relationship Management) is the process of building and maintaining profitable relationships with customers through superior value and satisfaction. Customer-perceived value is a key measure.
    • Customer relationships vary from basic to full partnerships. Today's marketing embraces two-way communications and consumer-generated content. Companies work with various partners to develop relationships.

    Capturing Customer Value

    • Customer lifetime value is the cumulative value of future purchases. Customer equity is the combined customer lifetime values for all customers. Building relationships should involve targeting the right customers.
    • Different customer types are described in a matrix (e.g., butterflies, true friends, barnacles, and strangers).

    The Marketing Environment

    • Factors outside the company that affect marketing management's ability to build and maintain successful customer relationships.
    • The microenvironment includes the company, suppliers, distributors, marketing intermediaries (like resellers, marketing service agencies, and financial intermediaries), competitors, and publics. The macroenvironment includes demographic, economic, natural, technological, political, and cultural forces.
    • Key forces in the macroenvironment include demographics (population trends), economic conditions (consumer spending), and cultural factors (values and beliefs).

    Consumer Buyer Behavior

    • Consumer buyer behavior is the buying behavior of individuals and households that buy goods and services for personal consumption. Various factors influence buying behavior (cultural, social, personal and psychological).
    • Cultural factors include culture (basic values, perceptions and behaviors), subculture, and social class.
    • Social factors include groups (membership and reference), word-of-mouth influence, and opinion leaders.
    • Personal factors include age and life cycle stage, occupation, economic situation, lifestyle, and personality.
    • Psychological factors include motivation (needs), perception, learning, and beliefs and attitudes.

    The Product Life Cycle

    • New product development involves a multi-step process: idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, and commercialization. The product life cycle (PLC) has five distinct stages: development, introduction, growth, maturity, and decline.

    Marketing Strategies

    • Market segmentation divides a market into distinct groups of buyers. Common segmentation bases include geographic, demographic, psychographic, and behavioral.
    • Target market selection focuses on choosing segments to serve.
    • Positioning involves placing a product in the minds of consumers relative to competing products. Differentiation is creating superior customer value. Companies use different value propositions (e.g., more for more, more for the same, less for much less, etc).
    • Pricing strategies include cost-based, competition-based, and value-based pricing; pricing strategies also take into account pricing and cost for various product mix situations

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    Cap 1-3, 5, 7-11: Marketing Concepts PDF

    Description

    Explore fundamental concepts of marketing, including the importance of managing customer relationships and understanding needs, wants, and demands. This quiz covers how to design customer-driven marketing strategies and the significance of value and satisfaction in building strong customer connections.

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