Marketing Concepts and Strategy
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Questions and Answers

What is the main purpose of differentiation in marketing?

  • To promote products through advertising
  • To increase the number of products offered
  • To create superior customer value (correct)
  • To reduce the price of products

Which of the following elements is NOT included in the marketing mix?

  • Product
  • Price
  • People (correct)
  • Place

What does the 'promotion' component of the marketing mix involve?

  • Designing the product features
  • Selecting distribution channels
  • Communicating the benefits of the product (correct)
  • Setting the price for products

What is the first step in the marketing management functions?

<p>Marketing analysis (A)</p> Signup and view all the answers

In a SWOT analysis, which factor represents internal capabilities?

<p>Strengths (C)</p> Signup and view all the answers

What is the primary purpose of marketing control?

<p>Evaluating marketing results (C)</p> Signup and view all the answers

What does the return on marketing investment (marketing ROI) measure?

<p>Net return divided by marketing costs (A)</p> Signup and view all the answers

Which of the following best defines the microenvironment in marketing?

<p>Actors close to the company affecting customer service (C)</p> Signup and view all the answers

What does differentiated marketing entail?

<p>Targeting many market segments with unique offers for each (A)</p> Signup and view all the answers

Which targeting strategy focuses on tailoring products to individual customer preferences?

<p>Micromarketing (A)</p> Signup and view all the answers

What is the primary goal of positioning in marketing?

<p>To create a distinctive place for a market offering in consumers' minds (A)</p> Signup and view all the answers

What is meant by competitive advantage in a marketing context?

<p>Offering greater customer value than competitors (B)</p> Signup and view all the answers

What aspect does micromarketing consider more than other marketing strategies?

<p>Specific needs of local customer segments (D)</p> Signup and view all the answers

Which marketing strategy would likely involve favoring an entire market rather than targeting segments?

<p>Undifferentiated marketing (B)</p> Signup and view all the answers

What does a perceptual positioning map illustrate?

<p>Consumer preferences among competing brands (D)</p> Signup and view all the answers

Which factor is NOT typically considered when deciding on a targeting strategy?

<p>Consumer purchasing power (B)</p> Signup and view all the answers

What is a unique selling point (USP) intended to highlight?

<p>A single distinctive benefit of a product (C)</p> Signup and view all the answers

Which of the following describes a value proposition of 'more for less'?

<p>High-quality products at low prices (A)</p> Signup and view all the answers

Which of the following is NOT a characteristic of differences worthy to promote?

<p>Easy to copy (D)</p> Signup and view all the answers

What is the primary focus of a positioning statement?

<p>To summarize company or brand positioning (B)</p> Signup and view all the answers

What is the first level that product planners need to consider when developing services and products?

<p>Core customer value (C)</p> Signup and view all the answers

Which type of product is characterized by frequent, immediate purchases with minimal comparison effort?

<p>Convenience products (B)</p> Signup and view all the answers

Which of the following best describes the concept of 'less for much less'?

<p>Basic performance at an extremely low price (D)</p> Signup and view all the answers

What do 'consumer products' primarily refer to?

<p>Products purchased for personal consumption (D)</p> Signup and view all the answers

What is a mission statement?

<p>A statement of the organisation's purpose (C)</p> Signup and view all the answers

Which of the following describes the purpose of portfolio analysis?

<p>To evaluate the products and businesses within the company (B)</p> Signup and view all the answers

In the BCG growth-share matrix, which type of SBU requires investment due to high growth and high market share?

<p>Stars (B)</p> Signup and view all the answers

What does globalization enable companies to do?

<p>Reach and engage with customers globally (C)</p> Signup and view all the answers

Which of the following is included in the growth-share matrix as a low-growth, high-share unit?

<p>Cash cows (C)</p> Signup and view all the answers

What is involved in designing a business portfolio?

<p>Assessing which units to invest in or divest (C)</p> Signup and view all the answers

Which Web iteration focuses on connecting information with people?

<p>Web 2.0 (B)</p> Signup and view all the answers

What do cultural factors influence in consumer behavior?

<p>Basic values, perceptions, wants, and behaviors (C)</p> Signup and view all the answers

What characterizes a subculture?

<p>It consists of individuals who share basic values based on common life experiences. (D)</p> Signup and view all the answers

What characterizes a 'dog' in the BCG growth-share matrix?

<p>Low growth and low share (B)</p> Signup and view all the answers

What is the role of opinion leaders in consumer behavior?

<p>They exert social influence on others due to their expertise or characteristics. (D)</p> Signup and view all the answers

Which best describes 'buzz marketing'?

<p>A strategy to create opinion leaders as brand ambassadors. (A)</p> Signup and view all the answers

How do social factors influence consumer behavior?

<p>Through interactions in groups and communities. (A)</p> Signup and view all the answers

Which of the following best describes a membership group?

<p>It consists of people who share common values and interests. (B)</p> Signup and view all the answers

Which factor heavily influences buying roles within families?

<p>Evolving consumer lifestyles and adapting habits. (B)</p> Signup and view all the answers

What is a defining characteristic of social classes?

<p>They share similar values, interests, and behaviors. (A)</p> Signup and view all the answers

What is the primary purpose of crowdsourcing in new product innovation?

<p>To bring a broad community into the innovation process (C)</p> Signup and view all the answers

What does the concept of idea screening involve?

<p>Identifying which product ideas to keep or discard (A)</p> Signup and view all the answers

Which part of marketing strategy development focuses on the target market?

<p>Value proposition (C)</p> Signup and view all the answers

What is involved in the business analysis stage of new product development?

<p>Projecting sales, costs, and profits for viability (D)</p> Signup and view all the answers

In the product development process, what does test marketing aim to evaluate?

<p>Realistic market performance of the product and its marketing (C)</p> Signup and view all the answers

What characterizes customer-centered new product development?

<p>Creating experiences that specifically resolve customer issues (A)</p> Signup and view all the answers

Which of the following describes team-based new product development?

<p>Allows overlaps in the development process for efficiency (A)</p> Signup and view all the answers

What does the product life cycle (PLC) illustrate?

<p>Sales and profit trends of a product throughout its existence (A)</p> Signup and view all the answers

Flashcards

Marketing Mix

The set of marketing tools that a company uses to reach its target market, including product, price, place, and promotion.

Differentiation

The process of adapting a product or service to meet the specific needs and preferences of a particular customer segment.

SWOT Analysis

An analysis that assesses a company's internal strengths and weaknesses, as well as its external opportunities and threats.

Marketing Control

The process of measuring and evaluating the results of marketing activities to determine their effectiveness and make necessary adjustments.

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Marketing ROI

The total return from a marketing investment divided by the cost of the investment. Measures the profitability of marketing activities.

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Marketing Environment

The actors and forces outside of a company that affect its ability to connect with customers.

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Microenvironment

The portion of the marketing environment that includes actors close to the company, such as suppliers, customers, and competitors.

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Macroenvironment

The portion of the marketing environment that includes broader factors that affect the company, such as economic, political, and technological forces.

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Strategic planning

The process of developing and maintaining a strategic fit between an organization's goals and capabilities and its changing marketing opportunities.

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Mission statement

A statement of the organization's purpose, outlining its reason for being.

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Business portfolio

The collection of businesses and products that make up a company.

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Portfolio analysis

The process of evaluating the products and businesses that make up a company, to assess their strengths and weaknesses.

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Strategic Business Unit (SBU)

A unit within a company that has its own distinct mission, products, and competitors.

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Growth-share matrix

A tool used to categorize SBUs based on their market growth rate and market share.

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Stars

A high-growth, high-share SBU, requiring significant investment to maintain its growth.

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Cash Cows

A low-growth, high-share SBU, generating cash that can be used to support other SBUs.

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Target Market

A group of customers that share common needs or characteristics that a company decides to serve.

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Undifferentiated Marketing

A marketing strategy where a company ignores market segment differences and focuses on reaching the entire market with a single offering.

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Differentiated Marketing

A marketing strategy where a company targets multiple segments with distinct offerings tailored to each.

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Concentrated Marketing

A marketing strategy where a company concentrates on a large share of one or a few segments or niches.

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Micromarketing

Tailoring products and marketing programs to the specific needs of individual customers.

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Product Position

The way a product is perceived by consumers based on important attributes, its position in the market compared to competitors.

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Positioning

A marketing strategy that involves creating a unique and desirable position for a product in the minds of target consumers, differentiating it from competitors.

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Unique Selling Point (USP)

A key feature or benefit that sets a company or brand apart from competitors.

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Positioning Statement

A summary of a company's or brand's value proposition, outlining its target audience, key benefit, and point of difference.

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Value Proposition

The complete set of benefits a brand offers to customers, including its features, price, and overall experience.

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Consumer Product

A product purchased by consumers for their own use or consumption, such as clothing, food, or electronics.

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Industrial Product

A product purchased by businesses to produce other goods or services, such as machinery, raw materials, or software.

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Convenience Product

A product that consumers typically buy frequently, with minimal effort and little comparison shopping, such as groceries or gasoline.

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Core Customer Value

The core benefit or value that a customer receives from a product or service.

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Actual Product

The tangible form of a product or service that delivers the core customer value.

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Crowdsourcing

The process of inviting a broad community of people, like customers, employees, and even the public, to participate in the development of new products.

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Idea Screening

A process where new product ideas are quickly evaluated to identify promising concepts and eliminate weak ones.

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Product Concept

A detailed description of a new product idea expressed in terms that are meaningful to customers.

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Concept Testing

Testing new product concepts with a group of potential customers to gauge their interest and appeal.

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Marketing Strategy Development

Developing an initial marketing plan for a new product based on its concept, including target market, budget, and long-term marketing strategies.

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Business Analysis

Analyzing the sales, costs, and profits projected for a new product to ensure it meets the company's goals.

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Product Development

Transforming a product concept into a tangible product, ensuring feasibility and market viability.

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Test Marketing

Testing a new product and its marketing plan in real-world market conditions, using controlled test markets or simulations.

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Consumer Buyer Behaviour

The way consumers make decisions when buying goods and services for their personal use. It's about understanding what drives people to choose one product over another.

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Social Classes

Groups of people who share similar values, interests, and behaviors. They're often seen as distinct from other groups within society.

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Culture

The overall set of beliefs, values, and customs that a society shares, learned from family and other influences. It guides how people behave.

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Subculture

Groups of people who share similar values and experiences based on their backgrounds. They can differ from the main culture, but still belong within it.

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Groups

Groups of people who interact to achieve common or individual goals. They influence a person's buying decisions.

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Opinion Leader

A person within a group who influences others because of their knowledge, skills, or personality.

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Buzz Marketing

A type of marketing that aims to create buzz and excitement around a product or brand by engaging opinion leaders.

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Online Social Networks

Groups of people who connect online to discuss their interests or exchange information.

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Study Notes

Marketing Concepts

  • Marketing is managing profitable relationships with customers, attracting new customers and retaining existing ones by delivering satisfaction.
  • Customer needs, wants, and demands are fundamental to marketing.
  • Human needs are states of felt deprivation (physical, social, individual).
  • Wants are the form human needs take as they are shaped by culture and personality.
  • Demands are human wants backed by buying power.
  • Market offerings are combinations of products, services, and experiences offered to satisfy needs and wants.
  • Value and satisfaction are critical for building customer relationships.
  • Exchanges are the act of obtaining a desired object from someone by offering something in return.
  • The market is all actual and potential buyers of a given product or service.
  • Marketing involves serving a market of final consumers while competing with other businesses.

Customer-driven Marketing Strategy

  • Marketing management is choosing target markets and building profitable relationships with them
  • Five core concepts businesses use: Production, Product, Selling, Marketing and Societal Marketing
  • The production concept assumes customers favour offerings that are readily available and cheaply priced
  • The product concept assumes customers favour offerings with superior quality and features
  • The selling concept assumes customers will not buy enough of the company's product unless the company engages in large-scale promotion and selling
  • The marketing concept holds that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the promised satisfaction better than competitors.
  • The societal marketing concept states that marketing decisions should consider consumers' wants, the company's requirements, the consumers long-term interests and society's long-term interests.

Integrated Marketing Plan

  • A marketing strategy outlines which customers a company will serve and how.
  • The marketing mix, including the four Ps (product, price, place, promotion) implement the strategy.

Building Customer Relationships

  • Customer relationship management (CRM) is building profitable customer relationships by delivering superior customer value.
  • Customer perceived value is the difference consumers perceive between the benefits and costs of a product or service.
  • Customer delight occurs when a product's performance exceeds customer expectations.
  • Relationships can vary from basic to full partnerships
  • Modern companies employ customer managed relationships and consumer-generated marketing.

Capturing Customer Value

  • Customer lifetime value (CLTV) is the total stream of purchases that a customer makes over a lifetime of relationship
  • Customer equity is the combined CLTV of all of the company's customers.
  • Building customer relationships includes recognizing high- and low-profit customers, and those with short- and long-term orientations.

The Marketing Environment

  • The marketing environment encompasses factors external to marketing that affect the company's ability to build and maintain customer relationships.
  • Includes the microenvironment (factors close to the company, such as the company itself, suppliers, intermediaries, competitors, and publics) and the macroenvironment (larger societal forces, such as demographic, economic, natural, technological, political, and cultural forces).

Consumer Buyer Behaviour

  • Consumer buyer behaviour is the buying behaviour of final consumers, individual households, and individuals.
  • Key factors influence consumer behaviour, including cultural, social, personal, and psychological factors.

Chapter 7 - Customer-Driven Strategy

  • Market segmentation involves dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.

  • Ways to segment the market: geographic, demographic, psychographic, behavioural.

  • Target marketing involves evaluating segments' attractiveness and selecting one or more segments to enter.

  • Several target marketing strategies: undifferentiated (mass), differentiated (segmented), concentrated (niche), and micromarketing

Chapter 8 - Building Customer Value

  • A product is anything offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
  • Consumer products are bought by final consumers for personal consumption. (Convenience, shopping, specialty, and unsought)

Chapter 9 - Product Life Cycle

  • The product life cycle (PLC) describes the stages a new product goes through from introduction to decline.

Chapter 10 - Pricing Strategies

  • Pricing is the amount of money charged for a product or service.
  • Includes good-value, value-added, cost-plus (or markup), break-even (or target return), and competition-based pricing.
  • Price elasticity of demand measures how responsive demand is to changes in price.

Chapter 11 - Pricing Considerations

  • Pricing strategies, including market skimming (high initial price) and market penetration (low initial price), can affect market response.

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

Description

This quiz covers essential marketing concepts, including customer needs, wants, and demands. It also explores customer-driven marketing strategies and emphasizes the importance of value and satisfaction in building relationships. Test your understanding of these foundational marketing principles!

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