Marketing Essentials Overview

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Questions and Answers

Which of the following accurately describes 'High Involvement' buying behavior?

Involves low-cost items and high switching cost

Involves daily life purchases with few choices

Involves expensive items and high loyalty (correct)

Involves fast purchases with low loyalty

What is a key characteristic of 'Low Involvement' products?

They require extensive information search.

They are rarely purchased.

They tend to have low brand loyalty. (correct)

They have high switching costs.

In the Consumer Decision Processes, what stage directly follows 'Information Search'?

Need Recognition

Post-Purchase Behavior

Evaluation of Alternatives (correct)

Problem Recognition

What do 'Activate', 'Interest', and 'Share' stages relate to in consumer engagement?

Dual AISAS Model Signup and view all the answers

Which of the following best distinguishes 'High Involvement' from 'Low Involvement' decision processes?

Low Involvement choices often have fewer consequences. Signup and view all the answers

What is the first step in the target marketing process?

Segmentation Signup and view all the answers

What is the primary purpose of market research?

To determine the viability of a product or service Signup and view all the answers

Which method of data collection involves in-depth discussions and interactions?

Group interviews Signup and view all the answers

What is a disadvantage of telephone surveys?

They may lead to resistance when collecting certain information. Signup and view all the answers

Which of the following is NOT one of the Five Ps of the Research Process?

Preparation of financial analysis Signup and view all the answers

What advantage does mail surveys offer?

Cost-effectiveness per completed response Signup and view all the answers

Which aspect of marketing does the STP model represent?

Segmentation, Targeting, Positioning Signup and view all the answers

What is a limitation of using group interviews for market research?

Need for a skilled moderator Signup and view all the answers

What is the primary objective during the introduction phase of the product life cycle?

Build market awareness to the product leading to trial purchase Signup and view all the answers

Which phase of the product life cycle is characterized by low sales and high failure rates?

Introduction Phase Signup and view all the answers

During which phase does a product typically have many competitors?

Growth Phase Signup and view all the answers

What characterizes profitability in the maturity phase of the product life cycle?

Sales grow at a decreasing rate Signup and view all the answers

In which phase should companies consider whether to invent further in the product or allocate funding to new products?

Decline Phase Signup and view all the answers

Which consumer group is targeted during the growth phase of the product life cycle?

Early adopters Signup and view all the answers

What strategy is typically emphasized during the decline phase of the product life cycle?

Cost minimization Signup and view all the answers

What is a common characteristic of competitors in the maturity phase?

Many competitors actively competing Signup and view all the answers

What is the initial step in the personal selling process?

Prospecting Signup and view all the answers

Which of the following is considered a type of sales promotion?

Coupons Signup and view all the answers

What is the main purpose of personal selling?

To persuade prospects to make a purchase Signup and view all the answers

Which of the following is NOT a step in the 7 Steps Selling Process?

Market analysis Signup and view all the answers

What can be included within product samples for promotional purposes?

Corporate giveaway items Signup and view all the answers

What does the perfect order rate measure?

The number of orders delivered without errors. Signup and view all the answers

Which of the following is included in the Promotion Mix?

Advertising Signup and view all the answers

What is a characteristic of a Pull strategy in promotion?

It motivates customers to actively seek out the brand. Signup and view all the answers

How is inventory turnover defined?

The time taken to sell the total inventory in dollars. Signup and view all the answers

Which question is NOT relevant for creating a balanced blend of promotional tools?

What are the current market trends? Signup and view all the answers

Study Notes

Marketing Process Overview

Effective marketing management involves target setting, market research, consumer behavior analysis, and the marketing mix (4Ps).
The STP framework (Segmentation, Targeting, Positioning) is crucial for discovering target markets and tailoring marketing strategies.

Market Research Essentials

Market research determines the viability of a new product by directly interacting with potential customers.
Key elements of the research process include defining research purposes, planning, execution, performing analysis, and final report creation.

Data Collection Methods

Group Interviews: Provide in-depth information and flexibility but may introduce bias and have small sample sizes.
Telephone Surveys: Offer centralized data control and cost-effectiveness but face limitations in response depth and demographic reach.
Mail Surveys: Cost-effective for responses with broad geographic reach, though responses may lack depth.

Consumer Decision Processes

The buyer decision process involves need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior.

Buying Behavior Types

High Involvement: Associated with expensive purchases (e.g., houses, cars) and typically demonstrates high brand loyalty.
Low Involvement: Involves less expensive, frequently purchased items (e.g., clothing) with lower customer loyalty and rapid purchase behavior.

Product Life Cycle Phases

Introduction Phase: Focus on building market awareness and trials with an emphasis on innovators and early adopters.
Growth Phase: Differentiation from competitors while promoting rapid sales expansion.
Maturity Phase: Striving for profitability amid increasing competition, targeting the early majority.
Decline Phase: Evaluating product viability and deciding whether to innovate or discontinue.

Promotion Strategies

The Promotion Mix integrates multiple promotional tools like advertising, personal selling, and public relations to drive demand.
Questions guiding the Promotion Mix include the effectiveness of customer information methods, budget allocation, and target audience identification.

Pull vs. Push Promotion

Pull Strategy: Involves motivating customers to seek out a product through methods like mass media promotion and word-of-mouth referrals.
Push Strategy: Focuses on driving products directly to customers at the point of purchase through personal selling and promotions.

Personal Selling and Sales Promotion

Personal selling involves persuading prospects to purchase through oral presentations and can include various methods such as sales meetings and telemarketing.
Sales promotions utilize limited-time marketing communications (coupons, contests) to stimulate demand and encourage product availability.

Steps in the Personal Selling Process

Includes prospecting, preparation, customer approach, presentation, overcoming objections, closing the sale, and follow-up.

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Description

This quiz covers the essential components of effective marketing management, including target setting, market research, and consumer behavior. It also delves into data collection methods and the importance of the STP framework in tailoring marketing strategies to different audiences.