Marketing Concepts and Branding Strategies

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Questions and Answers

What is a key characteristic of services that distinguishes them from goods?

Services can be stored for future use.

Services do not require customer interaction.

Services are always consistent.

Services involve inseparable production and consumption. (correct)

Which branding strategy involves using the same brand name for new products introduced in the same or new markets?

Family branding

Cobranding

Individual branding

Brand extension (correct)

What is a common method used to reduce the inconsistency of service delivery?

Offering more customizable services

Implementing training and standardization (correct)

Increasing advertising budgets

Incorporating more human interaction

What do legal requirements for labeling typically entail?

Including essential information to aid purchase decisions Signup and view all the answers

Which type of branding strategy combines marketing efforts of two or more brands?

Cobranding Signup and view all the answers

What does product mix refer to?

The complete set of products offered by a firm Signup and view all the answers

Which factor does NOT affect product mix breadth?

Number of product categories in existing lines Signup and view all the answers

What is a consequence of increasing product line depth?

Addressing changing consumer preferences Signup and view all the answers

Which of the following is NOT a value of branding?

Increasing production costs Signup and view all the answers

Which of the following best describes brand loyalty?

Repeated purchase of the same brand's product Signup and view all the answers

What does brand equity encompass?

The perceived value and associations related to the brand Signup and view all the answers

In branding, what is meant by brand awareness?

The extent to which consumers recognize a brand and understand its meaning Signup and view all the answers

What is a characteristic of generic brand ownership strategies?

No brand names sold in commodity markets Signup and view all the answers

Which stage of the product life cycle is characterized by rising sales, rapidly rising profits, and an increasing number of competitors?

Growth Stage Signup and view all the answers

What is the primary focus during the evaluation of results after a product launch?

Review customer feedback and sales performance Signup and view all the answers

Which type of product requires customers to expend considerable effort in the search for the best supplier?

Specialty Product Signup and view all the answers

What does test marketing allow a company to assess before a national launch?

Potential sales in a limited area Signup and view all the answers

What is a common attribute of products during the decline stage of the product life cycle?

Declining sales and profits Signup and view all the answers

What are 'Stars' in the BCG matrix characterized by?

High growth markets with high market share Signup and view all the answers

Which strategy focuses on the existing marketing mix to increase sales among current customers?

Market Penetration Signup and view all the answers

What characterizes a 'Cash Cow' in the BCG matrix?

Products in low-growth markets with high market share that can be reallocated Signup and view all the answers

Which option is NOT a characteristic of 'Question Marks' in the BCG matrix?

Generate high profits with minimal investment Signup and view all the answers

What does diversification imply in market strategies?

Targeting a new segment with a completely unrelated product Signup and view all the answers

What is the definition of 'metrics' in performance evaluation?

A measuring system that quantifies a trend or characteristic Signup and view all the answers

Which of the following best describes 'Dogs' in the BCG matrix?

Low market share in low-growth markets with sufficient resources to maintain operations Signup and view all the answers

What is the goal of market development in business strategies?

To sell existing products to new customer segments Signup and view all the answers

What is the primary function of the transmitter in marketing communications?

To develop marketing communications with the creative department Signup and view all the answers

Which of the following best describes the concept of encoding in the communication process?

The conversion of ideas into a message format Signup and view all the answers

In the context of an Integrated Marketing Communications campaign, what is the first step in planning?

Identify target audience Signup and view all the answers

Which type of appeal focuses on satisfying emotional desires rather than utilitarian needs?

Emotional appeal Signup and view all the answers

What role does 'noise' play in the communication process?

It acts as interference in message delivery Signup and view all the answers

What budget determination method allocates spending based on a fixed percentage of forecasted sales?

Percentage of sales Signup and view all the answers

Which of the following is NOT a part of the feedback loop in communication?

Interference from external noise Signup and view all the answers

Which of the following statements about setting objectives for an IMC campaign is accurate?

Objectives are derived from the marketing program’s overall aims Signup and view all the answers

What is the primary purpose of the RFP process?

To invite suppliers to bid for providing goods or services Signup and view all the answers

Which role in the buying center is responsible for making the final decision on a purchase?

Decider Signup and view all the answers

What type of buying situation involves a first-time purchase that requires thorough evaluation?

New Buy Signup and view all the answers

Which organizational culture type involves making decisions quickly without consulting others?

Autocratic Signup and view all the answers

In the proposal analysis stage of the RFP process, what is primarily evaluated?

Proposals from all invited suppliers Signup and view all the answers

Which of the following best describes the role of a gatekeeper in the buying center?

They control the flow of information to and from decision makers. Signup and view all the answers

Which buying situation is characterized by purchasing additional units of a previously bought product?

Straight Rebuy Signup and view all the answers

In the STP process, what is the first step that aligns with a firm's SWOT analysis?

Strategy or Objectives Signup and view all the answers

Study Notes

Marketing

Strategy is a plan to achieve long-term goals and objectives.
Understand the environment for informed decisions and advantage.
Utilize resources for competitive advantage; 4Ps (product, place, price, promotion) are key.
Sustainable competitive advantage is crucial and not easily copied.

Customer Value

Value = Benefit - Cost
Four main strategies are:
- Customer excellence: retaining loyal customers & providing good customer service.
- Value-based strategies: establishing emotional connections & loyalty programs.
- Operational excellence: efficiency in operations & supply chain management.
- Product excellence: high perceived value & effective branding & positioning.
- Locational excellence: having strong physical locations.

Marketing Plan Strategic Framework

Business Mission and Objective: define the business type and objectives.
Situation Analysis (SWOT): assess the marketplace and external forces (CDSTEP).
Opportunities & Implementation: Segmentation, Targeting, Positioning, create a clear understanding of the product.
Implementation is Marketing Mix (4Ps) through an integrated approach to product, price, promotion.
Performance Evaluation involves measures; explain why these things happen (metrics).

BCG Product and Portfolio Analysis

Portfolio Analysis allocates resources according to which products are profitable.
Performed at strategic business units (SBU) or product line level.
Products are categorized based on relative market share and market growth rate (stars, cash cows, question marks, and dogs).

Market/Product and Service Strategies

Market Penetration: Existing products, existing market. Employ existing marketing mix & focus efforts on existing customers.
Market Development: Existing products, new market. Use existing marketing offering to reach new segments.
Product Development: New products, existing market. Offer new product or service to existing market.
Diversification: New products, new markets. Introduce a new product to a segment currently not served.
Downsizing: exiting or reducing products.

Macro Environmental Factors

Company Capabilities: firm's strengths & weaknesses; target market, products.
Competition: Direct & Indirect competitor analysis; competitive strategy.
Corporate Partners: alliances with suppliers, manufacturers, unions, and other partners.

Micro Environmental Factors

Culture: shared meanings, beliefs, morals, values, and customs (transmitted).
Country Culture: influences behavior, visible nuances.
Demographics: Age, race, gender, income, ethnicity.
Generational Cohorts: similar purchase behavior due to shared experiences.
Baby Boomers, Gen X, Gen Y, and Gen Z have different characteristics.

Consumer Behavior

Need Recognition: when consumers recognize an unsatisfied need.
Information Search: internal (memory) and external (outside resources) search.
Alternative Evaluation: evaluating available alternatives.
Purchase Decision: converting intent into a purchase.
Post-Purchase: customer loyalty and satisfaction.

Chapter 3 Analyzing the Marketing Environment

Macro Environment: political, legal, cultural, demographic, economic, and technological forces.
Technology: new products, new forms of communication, new retail channels.

Business-to-Business (B2B) Buying Process (6 steps)

Needs Recognition: buying organization recognizes unmet needs.
Product Specification: a list of potential vendors is created.
RFP Process: buying organizations invite alternative suppliers to bid on supplying needs.
Proposal Analysis & Supplier Selection (Purchase): selection of the preferred supplier.
Order Specification (order): supplier confirmation of the order receipt
Vendor Performance Assessment (using metrics): evaluating supplier performance.

Buying Center

Initiator: starts the buying process.
Influencer: influences the process.
Decider: makes the final decision.
Buyer: handles the transaction.
Gatekeeper: controls information access.
Organizational culture: values, traditions, and customs of an organization.

Global Marketing

Globalization: increased flow of goods, services, capital, information, and ideas.
Political: tariffs (taxes), quotas (limits), boycotts (refusal to deal), and exchange controls.
Economic: GDP, PPP, market size, and population growth rates.
Socio-Cultural: power distance (tolerance for inequality), uncertainty avoidance (need for structure), individualism (individual needs), masculinity (importance of achievement), time orientation (short or long term focus), and indulgence (willingness to enjoy life).

Product Life Cycle

Introduction stage: low sales, negative or low profits, innovators, few competitors.
Growth stage: rising sales, rapidly increasing profits, early adopters and early majority.
Maturity stage: peak sales, peak/declining profits, late majority, high competitors.
Decline stage: declining sales and profits, laggards, low competitors.

Product, Branding, Packaging

Product Mix: complete set of products offered by a firm
Product Line: groups of associated items, linked by consumers.
Product category: assortments of items viewed as alternatives.
Product mix breadth: number of product lines offered.
Product line depth: number of products in each line. Brand Equity: value of the brand.

Brand Strategies

Brand extension: using the same brand name for new products.
Brand licensing: a firm using another firm’s brand name.
Co-branding: two or more brands together in marketing.

Packaging and Labelling

Labeling: providing consumer information needed for decisions.
Packaging: offering tangible benefits for consumer attraction.

Service

Core Differences Between Services and Goods
Inseparable Production and Consumption: the impact of the service provider on the customer's perception of the service outcome, consistency issues.
Intangible: services cannot be stored
Variable: services are more variable in performance, inconsistent outcomes.
Perishable: services cannot be inventoried; time crucial.
Knowledge Gap
Standard/Delivery Gap
Communication Gap
Overall Service Gap

Pricing Strategies

Company objectives (sales, profit, status quo, competitive).
Customer/Cost/Competition/Channel
Dynamic Pricing.
Pricing methods (cost-based, competitor-based, value-based).
Pricing strategies (everyday low pricing, high/low pricing).

Integrated Marketing Communications

Sender & Transmitter (converting sender's idea to message).
Encoding (converting sender's idea to message).
Communication Channel (medium).
The Receiver (receiving and processing).
Decoding (interpreting the message).
Noise (Disturbances).
Important steps in creating an IMC campaign.

Market Research

Define Research Problem and Objectives: establish what needs to be solved.
Design Research Plan: identify the type of data needed and determine the required research.
Collect Data: secondary (prior) and primary (current) data collection methods.
Analyze Data and Develop Insights: convert raw data into usable information.
Determine Action Plan- present the conclusions/insights to decision-makers and take relevant actions.
Types of data (Internal and external secondary and primary data collection).

Legal and ethical in advertising

Puffery: legal exaggeration of praise, stopping just short of deception.
Deceptive advertising: misleading or false representation, omission, or practice in advertising.
Sales Promotions using marketing metrics (realized margin, costs).

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Description

This quiz covers key concepts in marketing, focusing on branding strategies, product mix, and the characteristics that distinguish services from goods. Test your knowledge on essential marketing terminology and the implications of different branding approaches.