131 Questions
What does the mission statement do?
It's the organization's purpose and explains what it wants to accomplish in the larger environment
(Best answer) Companies must set ________________
Objectives and goals
Business objectives include everything except
Setting wages
In regards to the last question, the one concept not mentioned in what a business objective includes is _______________
Marketing objectives include everything except
Making advertisements for the public
Analyzing the current business portfolio includes identifying strategic business units, assessing the attractiveness of these SBUs, and deciding how much support each SBU deserves
True
Product form competition involves
Products or services of the same product type
Product class/category competition involves
Products that have similar features and provide the same basic function
Need level competition involves
Products and services that the consumer views as fulfilling the same need
Budget competition involves
Products and services that are purchased from the same general budget
Competition is best defined primarily through _________________
A customer's perspective
In some markets, whoever enters first gains ________________________
Significant advantages over those who arrive later
All of these are steps of the market research process, except
Use existing data to produce a conclusion
In regards to the previous question, what is a vital step to the marketing research process that was not included?
Interpreting and reporting the findings
The primary data types include what (STFOE)
Surveys, test markets, focus groups, observation, experimentation
Some secondary data types include (TBUMG)
Transaction data, browsing/clickstream data, user generated content, mobile, and government or 3rd party data
Primary data must be ____________, and is most helpful for ______________.
Secondary data _____________. It is most helpful for ___________ and can be _______________ to the company.
These are all characteristics of social media data except for
Informative
What are attributes of good market research? (Best answer)
Reliability, validity, and generalizability
Probability sampling involves ________ _____________ who are drawn at ____________. Ideally they will have _______ ________ _______ in __________ compared to the population.
Non- Probability sampling involves __________ _____________ who are ______ _________ ___ ________ and may have ________ __________ __ ____________.
Convenience sampling and judgment sampling are two examples of probability sampling
False
These are all characteristics of observation research except
Intervening and affecting people's behavior
These are characteristics of interviews and focus groups (a method of primary data) except for
Usually structured
Issues in survey design are list framing effects, order effects, double-barreled questions, and demand effects.
True
Which answer best describes list framing?
Portraying a question in a positive or negative frame
Which answer best describes the issue of order effects?
Answers tend to be influenced by previous questions
Which answer best describes the cause of memory effects?
Asking the respondent to remember their behavioral frequency
Which answer best describes social desirability effects?
Respondents are biased to answer in a way that is socially desirable/acceptable
Demand effects occur when respondents feel ____________ to answer questions in a way they ______ _____ _________ wants to _________.
The most useful tool for generating surveys is NPS
True
These are all definitions/descriptions of NPS, except
Asks respondents to produce a short answer
These are all characteristics of experimentation except for
All of these are characteristics
Mass marketing is appropriate when goods are a ________, consumers have (virtually) _____ _______ needs, and there is _______ ___ _____ competition
Targeted marketing is when you _________ ______ everyone, when needs are _______, and competitors can _______ serve _________ ________
These are the steps to targeted marketing, except for
Avoid separating the market into different groups with different needs
STP (segmentation, targeting, and positioning) increases __________ for the firm and provides ___________ ________ for the customer
Segmentation is grouping customers who will respond differently to a marketing action. It involves finding subsets of consumers who have different needs and cannot be addressed as a group
False
How can we divide the marketplace?
Demographic, psychographic, behavioral, and geographic
Good segmentation separates prospective buyers into groups where ____________ is high and _________ are common. Segmenting variables are _______ and _______.
Failure to identify trends and update your targeting strategy can lead to oversegmentation
True
These are all attributes of an ideal target segment, except for
Leaving out information from trends
What are the three steps to choosing your target segment?
- Customer value analysis
- Competitive benchmarking
- Evaluating fit of offerings
Positioning is a strategy for envisioning what you want your ________ to look like in the _________ of consumers. Here you can consider your _________ _______ and define your ______ _________ ______.
offering, minds, competitive advantage(s), unique value proposition
What are the two ways of establishing uniqueness? (best answer)
Vertical and horizontal differentiation
Vertical differentiation is competing _______ with competitors based on what's a __________ or ________ offering.
Horizontal differentiation is finding a different _______ or _________ based on customers' different _______ and perspectives.
A key tool for positioning is perceptual maps
True
What do perceptual maps do?
A and B are correct
Positioning statements do all of these, except
Mentions price, place, promotion
What should be included in the parentheses? (This is to help you remember how to set up a positioning statement):
"For (______ + ), (our _______) is the () that (______ _______ ________)"
A product is anything that can be offered to a market for ________, ________, _________, or ________ that might satisfy a _____ or a ______.
Products involve goods only
False
Which is NOT included in product line characteristics? (PLCs)
Product line consistency
Product line length is how many ______________________.
Product line length is how many items it includes
Product line range is how ________________________.
Product line range is how far the line stretches (top to bottom)
Product line density is how _________________________. (in other words, how / they are to each other)
Product line density is how close together items in the product line are. (in other words, how similar/different they are to each other)
What is a line extension?
Adding a new product to an existing line
What is a brand extension?
Adding new product(s) outside existing line(s)
Upward stretching (in brand extension) is focused on all of these, except for
Repositioning and finding a new target segment
Promising brand extensions have four features or "fits." Promising brand extensions fit _________ capabilities, fit current , fit _______ occasion (), and fit brand ___________.
Promising brand extensions have four features or "fits." Promising brand extensions fit firm capabilities, fit current customers, fit usage occasion (complementary), and fit brand associations.
Match the four product mix dimensions (WLDC) to their definitions/purpose
Width = Number of product lines Length = Number of products in each line Depth = Number of versions offered of each product in each product line Consistency = How closely related the products are in their target segments and firm capabilities
There are four steps of Strategic Portfolio Management. Match each step to the order that they are in this process.
First step = Add new product lines (brand extension) Second Step = Lengthen existing product lines (line extension) Third step = Add more versions of each product (increase depth) Fourth step = Trim/streamline portfolio (for consistency and efficiency)
What are the stages of the Product Life Cycle?
Introduction, growth, maturity, decline
Which stage of the product life cycle is when the product peaks?
Maturity
Customers can be segmented based on when they adopt new products
True
What are the five categories pertaining to when customers adopt new products?
Innovators, early adopters, early majority, late majority, laggards
During the introduction stage of the product life cycle, sales are _______, profits are _______, typical consumers are _________, there are ______ ___ _____ competitors, and the advertising objective(s) are _________ and _______.
During the growth stage of the product life cycle, sales are _______, profits are _______, typical consumers are ______ _________ and _________ _______, there are ______ but _______ numbers of competitors and competitive products, and the advertising objectives are to __________ and __/.
During the maturity phrase of the product life cycle, sales are ______ ___ ______, profits are ________ ___ _______, typical consumers are ______ ________, there are _______ _________ of competitors and competitive products, and advertising objectives are ________ and _________.
In the decline phase of the product life cycle, sales are __________, profits are ___________, typical consumers are ___________, there are ______ __________ of competitors and competitive products, and the advertising objectives are ______ ________, if any.
A brand is a _______, ________, _______, ________, _______, or combination of these that identifies the maker or seller of a product.
Brand representations include
All of these are brand representations
Brand associations should do everything except what
cater to competition's positioning
Brand associations include quality, symbolism, and status
True
Brand equity expresses consumer __________ of a product (______--____) due to brand name _____ and _____ other aspects of the product offering.
Match which characteristics/brands are associated with either Manufacturer Brands (aka National Brands) or Private-label Brands (aka Store Brands)
Manufacturer brands (aka national brands) = Apple (company) Manufacturer brands (aka national brands) = Levi's Private-label brands (aka store brands) = Amazon Basics and Great Value Private-label brands (aka store brands) = generic, often limitations of national brands
What are three reasons why people pay for brands?
Informational value, symbolic value, performance value
Information value includes...
Information value of a brand includes quality, reputation, and ethics.
Symbolic value of a brand includes...
Symbolic value of a brand includes identity, self-expression, and history.
Performance value of a brand includes consumers using _______ ___________ effort, and ___________ ________ is not required
Performance value of a brand includes consumers using less decision effort, and information search is not required.
Brands are valuable to firms due to _______ premium, ________ to _______, _________ power, and more support from _________ and _________.
You assess brand strength by looking at brand equity, awareness, and specialty research firms.
True
These are all rules for producing effective brand names, except for
Longer is better
Co-branding contains many benefits, such as connecting you to a ________ _________, ________, and ___________. It draws on capabilities of ________ _______.
Co-branding contains many benefits such as connecting you to a partner's customers, reputation, and associations. It draws on capabilities of both firms.
Co-branding requires (best answer)...
Trust, coordination, complex contracts
What are multi-brands?
Competing brands in a category with the same owner
What are sub brands?
A compromise between pure brand extension and an all new brand
Match each example to whether they are a Multi-Brand or Sub-Brand example
Multi-Brand = Pepsico Sub-Brand = Uber Eats Multi-Brand = Nestle Sub-Brand = Mac Cosmetics
If there is a general trend of decline for the current brand and its products, or if there is a need to adapt to new trends and promote a brand refresh then you should ________ a brand
Reposition
Variable costs vary with ________ _________
Fixed costs are affected by production volume.
False
Cost plus pricing involves calculating your total _________ ___ _______ and adding a ______ _______ (% or $ amount) to set your price. This is cost plus pricing or ______ pricing.
Cost plus pricing can be determined by the __________ point. This is _________ analysis.
Target return analysis is just like _________ analysis, but goes beyond making up for costs and aims for a ________ ______ of ______.
Value based pricing is when a company imagines the ______________________________ the product creates for the customer
Value based pricing contains a ___________ for potential price
Maximum (ceiling)
To produce value based pricing, a company has to measure willingness to pay
True
What is the formula for price elasticity of demand?
% change in quantity demanded / % change in price
List the factors that affect price elasticity (remember the acronym- UIAPE)
Uniqueness and switching costs, importance and price, ability to stockpile, price quality inferences, ease of searching products/prices
Price skimming involves setting a ________ ______ _____ and (possibly) _________ it over time.
Price skimming involves setting a high initial price and (possibly) lowering it over time.
Penetration pricing involves setting a ______ ______ ______ and (possibly) ________ it over time.
Penetration pricing involves setting a low initial price and (possibly) raising it over time.
These are all instances indicating that you should partake in price skimming, except for
High switching costs and customer lock in
You should partake in price skimming because (BCF)
you get bigger profit margins at first, costs tend to be higher at first, and there are very few competitors at first
These are all instances indicating that you should partake in penetration pricing, except for
Limited economies of scale
You should partake in penetration pricing because you can (BCD)
you can build customer relationships, you can capture market share and economies of scale quickly, and you can discourage competitors
Uniform pricing is charging the _________ to every customer, regardless of differences in willingness-to-pay, costs, or other factors.
same price
Personalized pricing is charging ______________________
Charging a unique price for each customer
Segmented pricing is charging ______________________________.
Different pricing for different groups or types of customers
There is no issue with personalized pricing or segmented pricing. These approaches do not appear to be unfair.
False
Location based pricing is charging __________ prices for ________ stores or locations
Time based pricing is charging ___________ prices for _________ days or times
Product versioning is charging ________ ______ for versions that different _________ _______ self-select.
Promotional pricing is offering _____ ______ based on ______ and _____ events, coupons, or rebates
Left digit bias is when people tend to pay more attention to the left digits of a price and subconsciously round up.
False
Round numbers signal /. Non round numbers seem more _____ and potentially _________.
Round numbers signal prestige/luxury. Non round numbers seem more precise and potentially fair
When other information is limited and unknown regarding a product's quality, price is still not used as an indicator of quality.
False
Write out the formula for Customer Lifetime Value (CLV)
(Price per unit - Cost per unit) x Quantity purchased x Time
Customer lifetime value has two positive side effects which are cross selling and promoting word of mouth. Cross selling is when you sell additional products to the same customer, and word of mouth is when customers talk about your product.
True
Customer lifetime value is a metric that represents the total net profit a company can expect to generate from customer throughout their entire relationship. It measures how valuable the customer is to your company
True
Integrating marketing communications (IMC) involves carefully ________ and ________ the company's many ___________ _____ to deliver a clear, ________, and _________ message about the organization and its products.
Match each step of developing effective marketing communication with the order in which they should appear
First Step = Identify the target audience Second Step = Determine the communication objectives Third Step = Design the message Fourth Step = Choose the media to send the message
In the previous question, we did not cover the last step of developing effective marketing communication. What is the fifth and last step of this process?
Select the message source and collect feedback
A rational appeal relates to the audience's ________ ________
A rational appeal relates to the audience's self interest
An emotional appeal is an attempt to...
An emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase
A moral appeal is directed to...
A moral appeal is directed to an audience's sense of what is right and proper
Formula for PLV (prospective lifetime value)
CLV (customer lifetime value) - AC (average customer acquisition cost) = PLV (prospective lifetime value)
Breakeven Analysis Formula
Q = (Fixed Costs) / (P - variable cost per unit)
Target Analysis Formula
Q = (Fixed Costs + Target Return) / (P - Variable cost per unit)
Value based pricing formula
E = (% change in quantity demanded) / (% change in price)
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