Podcast
Questions and Answers
What is the primary focus of product differentiation in marketing?
What is the primary focus of product differentiation in marketing?
Which of the following is a component of the marketing mix known as the 4 P's?
Which of the following is a component of the marketing mix known as the 4 P's?
What does the concept of showrooming involve?
What does the concept of showrooming involve?
Which statement about target markets is accurate?
Which statement about target markets is accurate?
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What does product line depth refer to?
What does product line depth refer to?
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What is a key characteristic of a franchise?
What is a key characteristic of a franchise?
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What does the term 'derived demand' refer to?
What does the term 'derived demand' refer to?
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Which of the following best describes primary data?
Which of the following best describes primary data?
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What is a significant difference between skimming pricing and penetration pricing?
What is a significant difference between skimming pricing and penetration pricing?
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Which is a defining characteristic of services in marketing?
Which is a defining characteristic of services in marketing?
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What best describes behavioral loyalty?
What best describes behavioral loyalty?
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Which marketing approach focuses on building long-term customer relationships through valuable content?
Which marketing approach focuses on building long-term customer relationships through valuable content?
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What role do intermediaries play in marketing?
What role do intermediaries play in marketing?
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Which statement best defines value proposition?
Which statement best defines value proposition?
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What is a common situation indicated by excess supply in a market?
What is a common situation indicated by excess supply in a market?
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What is the primary objective of market segmentation?
What is the primary objective of market segmentation?
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Which type of marketing focuses on customizing offers to meet individual needs?
Which type of marketing focuses on customizing offers to meet individual needs?
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What is a key characteristic of niche marketing?
What is a key characteristic of niche marketing?
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Which stage in the product life cycle focuses on creating customer awareness?
Which stage in the product life cycle focuses on creating customer awareness?
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What approach involves setting a high initial price for a new product to target non-price-sensitive customers?
What approach involves setting a high initial price for a new product to target non-price-sensitive customers?
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Which pricing strategy focuses on covering production costs plus adding a profit margin?
Which pricing strategy focuses on covering production costs plus adding a profit margin?
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Which retailing trend involves blending online and offline shopping experiences?
Which retailing trend involves blending online and offline shopping experiences?
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In a promotional mix, what must businesses balance?
In a promotional mix, what must businesses balance?
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Which tool is commonly used in public relations to communicate with target groups?
Which tool is commonly used in public relations to communicate with target groups?
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What does Customer Experience Management focus on?
What does Customer Experience Management focus on?
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What is typically included in the steps of the organizational buying process?
What is typically included in the steps of the organizational buying process?
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What is the common structure of ownership in the retail industry?
What is the common structure of ownership in the retail industry?
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Which pricing strategy attracts customers to a store with lower prices on select items?
Which pricing strategy attracts customers to a store with lower prices on select items?
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What is NAICS primarily used for?
What is NAICS primarily used for?
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Study Notes
Consumer Decision Making
- Consumer involvement in purchase decisions varies based on decision complexity.
- Internal search: Reviewing stored knowledge and past experiences.
- External search: Using personal and public sources if prior experience is lacking.
- Showrooming: Using mobile devices in-store to compare online prices and reviews.
Product Differentiation
- Positioning products to stand out from competitors.
- Differentiation does not require superiority; it just needs distinctiveness relative to competitors.
Marketing Mix (4 Ps)
- Product, Price, Promotion, Place
- Price is calculated as total revenue minus cost.
Product Line Management
- Product line: Group of related products satisfying similar needs.
- Product line depth: Number of versions within a product line.
- Product line length: Total number of products in a product line.
- Product mix: All products offered by a company.
Target Market & Segmentation
- Target market: Specific consumer group(s) for marketing efforts.
- Two main market segments: Consumer market (personal use) and business market (business use).
- Market segmentation: Grouping prospective buyers with similar needs and responses to marketing.
- Four market segmentation strategies:
- Mass marketing: Broad appeal with no product or marketing differentiation.
- Segment marketing: Targeting various market segments with tailored products and campaigns.
- Niche marketing: Targeting narrow segments of limited interest to large competitors.
- Individualized marketing: Customizing offers to meet individual needs.
- Organizational Buyers: Understanding buying objectives is crucial for B2B marketing (profit increase via lower costs or increased sales).
- Objectives, specifications, and supplier criteria (price, quality, delivery).
- Reverse Marketing: Aligning supplier capabilities with buyer needs.
- Steps in the organizational buying process: problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior.
Product Life Cycle
- Stages a new product goes through: introduction, growth, maturity, decline.
- Introduction: Creating customer awareness.
- Growth: Product differentiation.
- Maturity: Focusing on market share.
- Decline: Deleting, reinvesting, or harvesting (reduced marketing for minimal profit).
Pricing Strategies
- Four approaches for pricing:
- Demand-oriented:
- Skimming: High initial price for new products.
- Penetration: Low initial price to attract customers.
- Prestige: High price to attract status-conscious consumers.
- Cost-oriented: Setting price based on production costs plus additional margins.
- Markup: Difference between selling price and cost, often expressed as a percentage of cost.
- Profit-oriented: Setting prices to achieve a target profit volume or percentage.
- Competition-oriented: Setting prices based on competitors' prices.
- Customary pricing, above/at/below market pricing, loss-leader pricing.
- Demand-oriented:
Retail Strategy
- Retailing: Selling goods and services to end consumers.
- Key trends for Canadian retailers: technological disruption, experiential retail, hybridization, changing shopping habits, and relationship-focused customer service.
Promotional Mix
- Promotional mix includes advertising, personal selling, sales promotion, public relations, event sponsorship, and direct marketing.
- Balance and coordination of promotional elements are crucial.
Advertising & Public Relations
- Advertising: Paid media for promoting products, services, or ideas.
- Public relations (PR): Influencing opinions through unpaid media exposure.
- PR tools: Press releases, press conferences, events, company reports, social media.
Customer Experience Management
- Managing customer interactions (touchpoints) to build brand equity and boost profitability.
- Key touchpoints: human interaction, interactive channels (e.g., websites), and static channels (e.g., ads).
- Loyalty programs: Provide valuable customer data. (e.g., Canadian Tire Money).
Indirect Marketing Channels
- Using wholesalers or retailers to reach consumers.
- Middlemen (distributors, agents, retailers).
NAICS (North American Industry Classification System)
- Used by government and businesses to categorize and analyze economic data.
Retail Ownership
- Independent retailers, chain stores, franchises, department stores, and cooperatives.
Strategic Business Unit (SBU)
- Profit center focusing on a specific product and market segment with a dedicated marketing plan (e.g., different printing offerings).
Micro/Transactional Websites
- Small, focused websites for specific products or campaigns.
Personal/Situational Influences
- Consumer involvement level and available market offerings impact purchasing decisions.
- Personal characteristics (age, life stage, economic situation, personality).
Franchising
- Joint venture between franchisor and franchisee, granting rights to operate under a name or concept. (e.g., McDonald's.)
Intermediaries
- Independent firms facilitating product/service movement between producers and consumers.
Demand/Excess Supply
- Situations when quantity exceeds or falls short of consumer demand.
Primary/Secondary Data
- Primary data: Collected firsthand for research.
- Secondary data: Existing data collected for other purposes.
Skimming vs. Penetration Pricing
- Skimming: High initial price, gradually lowered.
- Penetration: Low initial price to gain market share.
Business-to-Business (B2B) Marketing
- Selling products or services to other businesses.
- Understanding buying objectives is essential.
Routine Problem Solving
- Simple and straightforward decisions for recurrent problems.
Value & Value Proposition
- Value: Customer benefits relative to cost.
- Value proposition: Statement communicating product/service value to customers.
Marketing Research
- Gathering, analyzing, and interpreting data to understand the market, customers, and competitors.
Inbound Marketing
- Creating valuable content to attract and build long-term customer relationships.
Generational Cohorts (GenX, GenY, Boomers)
Probability Sampling
- Randomly select sample from population.
Loyalty vs. Behavior
- Behavioral loyalty: Regular purchase; no competitor response.
- Attitudinal loyalty: Brand preference.
Derived Demand
- Demand for one good/service stemming from demand for a related good/service.
Organizational Competencies
- Capabilities enabling value delivery, market competition, and adaptation.
Nature of Services
- Services have unique characteristics: intangibility, inseparability, variability, and perishability.
Customer Perceptions
- Customer opinions, feelings, and beliefs about a brand.
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Description
This quiz covers essential marketing concepts including consumer decision-making, product differentiation, the marketing mix, and product line management. Test your understanding of how these elements interact to influence consumer behavior and company strategy. Perfect for students in marketing courses or professionals looking to sharpen their knowledge.
