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McDonalds provides three sizes for soft drinks (small, medium, and large) and customers often opt for the medium size. What is this an example of?
McDonalds provides three sizes for soft drinks (small, medium, and large) and customers often opt for the medium size. What is this an example of?
Considering your market only has two competitors and both of them drop out of the market, evolving towards a monopoly. How does the price elasticity of your market evolve?
Considering your market only has two competitors and both of them drop out of the market, evolving towards a monopoly. How does the price elasticity of your market evolve?
Which of the following is NOT an example of Brand Extension?
Which of the following is NOT an example of Brand Extension?
To save time and money, a marketing research team uses data that have already been gathered for some other purpose. Which type of data is the team using?
To save time and money, a marketing research team uses data that have already been gathered for some other purpose. Which type of data is the team using?
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Your recently founded fashion company plans its first communication campaign. Therefore, you and your team want to determine communication objectives. Which of the following objectives would be most relevant at this stage?
Your recently founded fashion company plans its first communication campaign. Therefore, you and your team want to determine communication objectives. Which of the following objectives would be most relevant at this stage?
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When thinking about the vertical structure of your distribution system, which of the following alternatives include no 'intermediary'?
When thinking about the vertical structure of your distribution system, which of the following alternatives include no 'intermediary'?
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You are about to book a tennis court for next week in the morning. You are surprised about the rate of the tennis court in the morning being significantly cheaper than in the late afternoon. Which concept is the tennis court operator using?
You are about to book a tennis court for next week in the morning. You are surprised about the rate of the tennis court in the morning being significantly cheaper than in the late afternoon. Which concept is the tennis court operator using?
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In a sampling plan, the question 'Whom should we survey?' is part of the
In a sampling plan, the question 'Whom should we survey?' is part of the
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A brand ________ is a specialized group of consumers and employees whose identification and activities focus around the brand.
A brand ________ is a specialized group of consumers and employees whose identification and activities focus around the brand.
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A Swiss watch manufacturer has two major brands. One offers ruggedness, reliability, and durability to active sports enthusiasts. The other offers elegance and stylishness to fashion-conscious consumers. Which of the following segmentation approaches is this firm using?
A Swiss watch manufacturer has two major brands. One offers ruggedness, reliability, and durability to active sports enthusiasts. The other offers elegance and stylishness to fashion-conscious consumers. Which of the following segmentation approaches is this firm using?
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The primary purpose of market segmentation is to
The primary purpose of market segmentation is to
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When the MOMA museum separated its consumers by whether they were above 50 years or below 50 years for its new exhibit on art that used natural materials, they were using ________ segmentation.
When the MOMA museum separated its consumers by whether they were above 50 years or below 50 years for its new exhibit on art that used natural materials, they were using ________ segmentation.
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Please read the following press release (March 2018) on RIMOWA’s new dealer strategy. Suitcase brand Rimowa, part of luxury group LVMH since 2016, has stopped all of its dealer contracts. It wants to initiate a new procedure soon and only a fraction of the current dealers will get a new contract. The luxury suitcase brand made the decision after LVMH decided to restructure Rimowa’s sales: dealers will have to meet higher standards and in order to start with a clean slate, it decided to halt every contract. The goal is to end up with fewer dealers, but maintain closer ties to them. LVMH may want to give Rimowa a more exclusive image this way.
The German trade organization for leatherwear entrepreneurs has already investigated whether the termination of these contracts is in fact legal, but experts say it will be hard to fight, considering everyone is being treated equally: LVMH has found a loophole to only work with dealers it has chosen itself.
Several dealers in Belgium and the Netherlands will also lose their Rimowa deal. Van Beek Lederwaren feels lost after working with the brand for 45 years: “We hope we can come to a deal regarding a new contract”, Maarten van Beek told Dutch Couturekrant. “We will have to wait and see however.” 27 Dutch and 16 Belgian entrepreneurs have been hit by Rimowa’s actions. The brand also has its own stores in Antwerp and Amsterdam.”
Then choose among the given options, which distribution strategy RIMOWA wants to apply.
Please read the following press release (March 2018) on RIMOWA’s new dealer strategy. Suitcase brand Rimowa, part of luxury group LVMH since 2016, has stopped all of its dealer contracts. It wants to initiate a new procedure soon and only a fraction of the current dealers will get a new contract. The luxury suitcase brand made the decision after LVMH decided to restructure Rimowa’s sales: dealers will have to meet higher standards and in order to start with a clean slate, it decided to halt every contract. The goal is to end up with fewer dealers, but maintain closer ties to them. LVMH may want to give Rimowa a more exclusive image this way. The German trade organization for leatherwear entrepreneurs has already investigated whether the termination of these contracts is in fact legal, but experts say it will be hard to fight, considering everyone is being treated equally: LVMH has found a loophole to only work with dealers it has chosen itself. Several dealers in Belgium and the Netherlands will also lose their Rimowa deal. Van Beek Lederwaren feels lost after working with the brand for 45 years: “We hope we can come to a deal regarding a new contract”, Maarten van Beek told Dutch Couturekrant. “We will have to wait and see however.” 27 Dutch and 16 Belgian entrepreneurs have been hit by Rimowa’s actions. The brand also has its own stores in Antwerp and Amsterdam.” Then choose among the given options, which distribution strategy RIMOWA wants to apply.
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You recently founded an online marketplace for used books. A few months after the launch of your marketplace, you launched an online magazine named 'Book Review' which publishes articles featuring your newly founded marketplace. What kind of media is this?
You recently founded an online marketplace for used books. A few months after the launch of your marketplace, you launched an online magazine named 'Book Review' which publishes articles featuring your newly founded marketplace. What kind of media is this?
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When companies want to reduce the number of customer interactions in the selling situation, they rather should focus on having ....
When companies want to reduce the number of customer interactions in the selling situation, they rather should focus on having ....
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You and your friends recently founded a sustainable fashion company in southern Germany. As you have the responsibility over marketing, you have to set the price for your first product launch (socks). You have decided to make use of a target-return pricing approach with the objective to earn a 45 percent ROI. The company’s investment accounts for €130,000. Your expected unit sale is 60,000. Variable costs are €5.70 per unit; fixed costs account for €150,000. Which price will lead to a ROI of 45 percent (please round the price accordingly)?
You and your friends recently founded a sustainable fashion company in southern Germany. As you have the responsibility over marketing, you have to set the price for your first product launch (socks). You have decided to make use of a target-return pricing approach with the objective to earn a 45 percent ROI. The company’s investment accounts for €130,000. Your expected unit sale is 60,000. Variable costs are €5.70 per unit; fixed costs account for €150,000. Which price will lead to a ROI of 45 percent (please round the price accordingly)?
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The trend of reducing the number of intermediaries is called...
The trend of reducing the number of intermediaries is called...
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Joe goes out with his friends for pizza. Unbeknownst to him, he is coming down with a stomach virus. When the nausea associated with the virus kicks in, he has to throw up. Now, Joe cannot even look at a pizza without feeling nauseous.
In this example, the conditioned stimulus is _____.
Joe goes out with his friends for pizza. Unbeknownst to him, he is coming down with a stomach virus. When the nausea associated with the virus kicks in, he has to throw up. Now, Joe cannot even look at a pizza without feeling nauseous. In this example, the conditioned stimulus is _____.
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A company would like to study the impact of advertising expenditure on sales and sales revenue. This is an example of ________ research.
A company would like to study the impact of advertising expenditure on sales and sales revenue. This is an example of ________ research.
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The brand architecture of the company is a _______ approach.
The brand architecture of the company is a _______ approach.
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In communication, which of the following statements about 'earned media' is correct?
In communication, which of the following statements about 'earned media' is correct?
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Behavioral research generally indicates that consumers’ attitudes...
Behavioral research generally indicates that consumers’ attitudes...
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What is the marketing term for a relatively small, well-defined and very focused target market?
What is the marketing term for a relatively small, well-defined and very focused target market?
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The committee of the Oktoberfest has decided to abandon price fixing for all beer tents. This means the owners of a tent can set their own prices for one “Mass” of beer. What effect does the decision have on the price elasticity of demand?
The committee of the Oktoberfest has decided to abandon price fixing for all beer tents. This means the owners of a tent can set their own prices for one “Mass” of beer. What effect does the decision have on the price elasticity of demand?
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For a high school student, Tim is highly concerned about environmental issues. He is a strong supporter of garbage recycling and afforestation campaigns taken up by environmental activists in his neighborhood. He wants to become a volunteer for their upcoming wildlife protection program and has even saved money to contribute to the cause. This group of environmental activists can be categorized under which of the following reference groups?
For a high school student, Tim is highly concerned about environmental issues. He is a strong supporter of garbage recycling and afforestation campaigns taken up by environmental activists in his neighborhood. He wants to become a volunteer for their upcoming wildlife protection program and has even saved money to contribute to the cause. This group of environmental activists can be categorized under which of the following reference groups?
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Which of the following statement regarding the product life cycle is TRUE?
Which of the following statement regarding the product life cycle is TRUE?
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If two brands move closer to each other on a perceptual (positioning) map, it means that they have become:
If two brands move closer to each other on a perceptual (positioning) map, it means that they have become:
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Which heuristic is in line with choosing the best brand based on its perceived most important attribute?
Which heuristic is in line with choosing the best brand based on its perceived most important attribute?
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What strategy is the printer company pursuing by selling at a cheap price but charging high for ink cartridges?
What strategy is the printer company pursuing by selling at a cheap price but charging high for ink cartridges?
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In the choice of target segments, which variables does a company need to consider?
In the choice of target segments, which variables does a company need to consider?
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What kind of sample is obtained when students get other students to fill in questionnaires for their university projects?
What kind of sample is obtained when students get other students to fill in questionnaires for their university projects?
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The advertisement appeals to which need in Maslow’s hierarchy?
The advertisement appeals to which need in Maslow’s hierarchy?
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If a company decides to allocate more resources to personal selling and sales promotion by its resellers, which of the following strategies is it using?
If a company decides to allocate more resources to personal selling and sales promotion by its resellers, which of the following strategies is it using?
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As part of a university project, Karen stood outside a store and counted the people going in. She recorded men, women and children separately and noted how many were in each group. Which research technique was she using?
As part of a university project, Karen stood outside a store and counted the people going in. She recorded men, women and children separately and noted how many were in each group. Which research technique was she using?
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Imagine a price change from 7 to 7.20 Euro for a box of cigarettes. We expect a decrease of demand by 10%. Which of the following statements is true?
Imagine a price change from 7 to 7.20 Euro for a box of cigarettes. We expect a decrease of demand by 10%. Which of the following statements is true?
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A marketing expert said that he could have advertised a brand of soap as a detergent bar for men with dirty hands, but instead chose to advertise it as a moisturizing bar for women with dry skin.
This illustrates the marketing principle known as:
A marketing expert said that he could have advertised a brand of soap as a detergent bar for men with dirty hands, but instead chose to advertise it as a moisturizing bar for women with dry skin. This illustrates the marketing principle known as:
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Which of the following elements of the marketing communications mix involves a variety of short-term incentives?
Which of the following elements of the marketing communications mix involves a variety of short-term incentives?
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What are the steps in developing effective communications?
What are the steps in developing effective communications?
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When choosing brand awareness as a communication objective, which is unaided?
When choosing brand awareness as a communication objective, which is unaided?
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The company Tupperware sells household devices directly to the customers. This can be called a _____.
The company Tupperware sells household devices directly to the customers. This can be called a _____.
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Study Notes
Marketing Concepts and Theories
- Disintermediation: Refers to the reduction or elimination of intermediaries in a supply chain, allowing direct selling to consumers.
- Conditioned Stimulus: In a marketing context, a consumer can develop negative associations, as seen with Joe's nausea linked to pizza after experiencing a stomach virus.
- Causal Research: Examining the relationship between variables, such as advertising expenditure and sales revenue.
- Brand Architecture: The "House of Brands" approach allows individual brands with unique identities that do not trace back to the parent corporation.
Advertising and Media
- Earned Media: Media coverage gained without payment, unlike paid advertisements or owned media.
- Advertising Appeals: An advertisement showing students pursuing college education appeals to the need for self-actualization in Maslow's hierarchy.
- Sales Promotions: These are short-term incentives aimed at encouraging trial or purchase of products.
Consumer Behavior
- Attitude Development: Consumer attitudes are difficult to change and develop primarily through actual product experiences.
- Market Segmentation: A "niche market" is a focused and well-defined segment targeted by a company.
- Reference Groups: Tim's environmental activist group represents an aspirational reference group, influencing his behavior and beliefs.
Economic Principles
- Price Elasticity of Demand: Abandoning price fixing can lead to increased price elasticity due to rising competition among beer tents, impacting consumer choices.
- Perceptual Maps: When brands are perceived as more similar by consumers, they may be less likely to be direct competitors.
- Pricing Strategies: A company employing a complementary pricing strategy often sells a product at a low price but charges high prices for necessary refills or accessories.
Product Life Cycle and Strategy
- Product Life Cycle: It includes distinct stages such as introduction, growth, maturity, and decline, affecting sales and profit dynamics.
- Target Segment Selection: Evaluating segment attractiveness and the compatibility of segments with company strategy is essential for successful market targeting.
- Brand Awareness: Differentiating between aided and unaided brand awareness helps in assessing brand recognition levels among consumers.
Research Techniques
- Observation Method: As demonstrated by Karen recording store entrance demographics, observation is a qualitative research method valuable in understanding consumer behavior.
- Sample Types: Gathering data from classmates for a project constitutes a convenience sample, characterized by ease of access.
Marketing Strategies
- Push Strategy: Allocating resources to promote products through resellers is part of a push strategy focused on driving product availability at retail locations.
- Perceptual Positioning: Movement of brands closer on a perceptual map indicates they are becoming similarly perceived by consumers.
Behavioral Economics and Heuristics
- Choice Heuristics: The lexicographic heuristic dictates choosing brands based on the most important attribute, guiding consumer decisions.
- Compromise Effect: Consumers often choose a medium option when presented with three size choices, highlighting behavioral decision-making strategies.
These notes provide key concepts and insights from the topics related to marketing and innovation, focusing on the understanding and applications of essential theories and strategies in the field.### Marketing Research and Data Types
- Use of secondary data involves utilizing previously gathered data for new research purposes to save time and costs.
- Primary data is acquired specifically for the current research project, whereas secondary data is repurposed from previous uses.
Communication Objectives in Marketing
- The first communication campaign should focus on increasing brand awareness as a key objective to establish the brand presence in the market.
Distribution Systems
- A direct channel of distribution does not include intermediaries, allowing a brand to sell products directly to consumers.
- Indirect channels involve third parties, while cross-functional and omnichannel strategies utilize multiple platforms.
Pricing Strategies
- Temporal price differentiation adjusts prices based on the time of day or demand periods, such as lower rates for morning bookings.
- Quantitative and qualitative price differentiation cater to consumers based on the amount and quality of the product.
Sampling Plans and Survey Procedure
- The sampling scheme defines 'whom to survey' within a research study, determining the target population.
Brand Community
- A brand community comprises a specialized group of consumers and employees focused on identity and shared experiences surrounding the brand.
Market Segmentation Techniques
- Swiss watch manufacturers utilize a benefits sought segmentation strategy to differentiate brands targeting active sports enthusiasts versus fashion-conscious consumers.
- Demographic segmentation categorizes consumers based on age, gender, income, etc., as exemplified by the MOMA museum's age division for exhibit marketing.
Market Segmentation Purpose
- The primary purpose of market segmentation is to allocate marketing resources effectively to meet the distinct needs of specific customer groups.
Distribution Strategies
- Rimowa's strategy to terminate dealer contracts aligns with selective distribution, aiming for higher-quality and exclusive partnerships.
Media Types in Marketing
- Owned media refers to content created and managed by the brand itself, such as an online magazine that promotes its own marketplace.
Customer Interaction in Sales
- Reducing customer interactions can be achieved by lowering the number of intermediaries in the sales process, streamlining the customer experience.
Pricing Strategies for Products
- In target-return pricing, a desired ROI of 45% on an investment, with specific costs and sales projections, can guide the setting of product prices, accounting for variable and fixed costs meticulously.
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Description
Test your knowledge on Marketing and Innovation concepts with this exam. Prepare for challenges concerning key topics and strategies discussed in the course. This quiz is designed for students at the Technical University of Munich.
