Marketing Exam - Assessing the Marketplace

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Questions and Answers

What is the evoked set in the context of evaluating alternatives?

The attributes that influence the purchase decision

Brands or stores known prior to consideration

All possible choices within a product category

Brands and stores actively considered for purchase (correct)

Which attributes are classified as determinant attributes?

Price, brand reputation, and service support

Overall customer satisfaction measures

Product features that are crucial for a buyer (correct)

Brands that consumers are already familiar with

Which outcome occurs when a product's performance is less than consumer expectations?

Contentment

Satisfaction

Delight

Disappointment (correct)

What can influence a consumer's purchase decision aside from personal attitudes?

Other people's attitudes Signup and view all the answers

Which of the following strategies is important for ensuring customer post-purchase satisfaction?

Building realistic product expectations Signup and view all the answers

What is a primary objective of marketing in a corporate setting?

To ensure customer orientation at every company level Signup and view all the answers

Which of the following is NOT considered a core marketing activity?

Human resource management Signup and view all the answers

In the evolution of marketing, which phase emphasizes generating value for consumers?

Value-based Marketing phase Signup and view all the answers

Which of the following represents a marketing institution?

Retailers Signup and view all the answers

What is the main differentiator between the marketing phase and the sales phase in the evolution of marketing?

Emphasis on consumer demand rather than persuasion Signup and view all the answers

Which of the following activities is part of the marketing process?

Market analysis Signup and view all the answers

Which marketing activity is primarily concerned with determining customer satisfaction levels?

Consumer research Signup and view all the answers

What is a key benefit of achieving profitable customer relationships through marketing?

Increased customer loyalty and repeat business Signup and view all the answers

What can cause post-purchase cognitive dissonance in consumers?

Infrequent purchases and high product costs Signup and view all the answers

What is the primary purpose of a perceptual map in marketing?

To display the position of products in the consumer's mind Signup and view all the answers

Which characteristic does NOT affect the consumer decision process?

Advertising spend Signup and view all the answers

Which targeting strategy involves focusing on one large segment without differentiation?

Undifferentiated Signup and view all the answers

What is a likely consequence of customer dissatisfaction?

Engagement in negative word of mouth Signup and view all the answers

What are Points-of-Parity in marketing positioning?

Similar attributes shared with competitors' offerings Signup and view all the answers

Which of the following best describes the term 'reference group' in consumer behavior?

Individuals used as a comparison for beliefs and behaviors Signup and view all the answers

Which of the following is NOT one of the original 4 Ps in marketing?

Placement Signup and view all the answers

What does the term 'micromarketing' refer to in targeted marketing strategies?

Targeting many specific segments with tailored marketing efforts Signup and view all the answers

Which of the following describes a 'subculture' in the context of consumer behavior?

Distinct groups sharing a unique value system within a culture Signup and view all the answers

Which marketing mix element requires adjustment when there is a change in one of the other Ps?

Price Signup and view all the answers

What role does customer satisfaction play in a company's relationship with its customers?

Sustains profitable relationships and increases customer lifetime value Signup and view all the answers

What assumption can be made about 'social roles' in the context of purchasing decisions?

They influence how individuals view their purchasing power Signup and view all the answers

What best describes the role of the marketing mix?

A set of tools to implement marketing strategy Signup and view all the answers

Which factor is NOT classified under consumer characteristics affecting decision-making?

Brand loyalty Signup and view all the answers

Which aspect of product strategy is crucial for delivering value to customers?

Active management of product lifecycle Signup and view all the answers

What is the primary focus of sensory marketing?

Engaging consumers' senses to influence their perception and behavior Signup and view all the answers

Which method involves setting the advertising budget based on what management believes the company can afford?

Affordable method Signup and view all the answers

Which metric is commonly used in classical advertising to measure effectiveness?

Gross rating point (GRP) Signup and view all the answers

What does the competitive parity method for setting an advertising budget focus on?

Matching competitors' advertising expenditures Signup and view all the answers

In the context of online marketing, which of the following metrics would most likely measure user engagement?

Average visit duration Signup and view all the answers

Which digital marketing practice relies heavily on data analysis and algorithms for ad placement?

Programmatic advertising Signup and view all the answers

What is a common emotional consequence of intensified digitalization according to the content?

A stronger valuation of physical experiences Signup and view all the answers

Which of the following is NOT considered a traditional metric for online marketing effectiveness?

Cost per thousand (CRT) Signup and view all the answers

What characteristic of services indicates that they cannot be viewed or tasted prior to purchase?

Intangibility Signup and view all the answers

Which of the following best describes the inseparability characteristic of services?

Services cannot be separated from their providers. Signup and view all the answers

In the context of pricing strategy, what is the primary focus of setting a list price?

Establishing a standard price before adjustments. Signup and view all the answers

Which pricing tool involves offering multiple products together at a reduced price?

Price Bundles Signup and view all the answers

What is the distinction made in service marketing regarding the variability of services?

Quality is reliant on who provides them and other variables. Signup and view all the answers

Which of the following is NOT a factor considered under operational parameters for price management?

Strategic Decisions Signup and view all the answers

What best defines perishability in the context of services?

Services must be sold quickly as they cannot be stored. Signup and view all the answers

What is the purpose of price recommendations in price communication?

To inform sellers of suggested retail prices. Signup and view all the answers

Study Notes

Marketing Klausur - Assessing the Marketplace

Marketing Definition: The set of institutions and processes for creating, communicating, exchanging, and delivering offerings with value for customers, marketers, and society. Part of corporate strategy ensuring customer orientation at all company levels.
Core Marketing Activities: Consumer research, targeting, product development, communication, distribution, pricing, service.
Marketing Activities: All tasks and actions a company takes to promote products and services; including product, price, communication, and distribution management.
Marketing Institutions: Producers, wholesalers, retailers, advertising agencies, market research firms, trade show firms.
Marketing Processes: New product development, order management, price negotiations, campaign management, market analysis, competitor intelligence.
Evolution of Marketing:
- Production: "Good products will always be sold."
- Sales: "With good salespeople, we can sell everything."
- Marketing: "We produce what consumers want."
- Value-based Marketing: "We produce what consumers want and generate value for them."
Markets: The set of actual and potential buyers of products and services. Managing markets creates profitable customer relationships.
Sales vs. Marketing Concepts:
- Selling concept: Starting point: factory; Focus: existing products; Means: selling and promoting; Ends: profits through sales volume.
- Marketing concept: Starting point: market; Focus: customer needs; Means: integrated marketing; Ends: profits through customer satisfaction.
Marketing Objectives: Revenue maximization (total amount of money), rapid market penetration, profit maximization (after subtracting all expenses).
Understanding the Marketplace & Customer Needs: Essential for achieving targets.
Main Tasks of Marketing:
- Strategic Level: Market segmentation (homogeneous target groups), supply of customized products, operational level = implementation
- Operational Level: Implementation of strategic level tools/Marketing Mix/Customer and supplier Relationship Management (implementation through marketing instruments).

Marketing - Value

Marketing = Creating Value: An organization's subjective perception (evaluation) of the degree to which an offering fulfills one or several needs.
Value Propositions: Composed of various value building blocks, including system value (e.g., Apple's AirDrop), service value (e.g., Amazon), information value (e.g., Google), brand value (e.g., Apple, Calvin Klein), relationship value (e.g., Nespresso, trust programs), and ethical/ecological value (e.g., Seventh Generation, Patagonia, Pela).

Marketing Process: Marketing in a Nutshell

Create value for customers and build relationships. Capture value from customers in return.
Understand the marketplace and customer needs and wants.
Design a customer-value-driven marketing strategy.
Select customers to serve, implement market segmentation and targeting.
Decide on a value proposition, differentiation and positioning.
Construct an integrated marketing program (that delivers superior value).
Build profitable relationships and create customer delight.
Build customer relationship management (CRM): engagement and strong relationships with chosen customers.

Marketing Process & Consumer Behavior

Exchange: Result of perceived fairness. (Perceived benefits – perceived costs = value of exchange)
Customer Satisfaction: How well a product's performance meets customer expectations.
Different Forms of Consumer Benefits: Functional, Emotional, Self-Expressive, Social.
Customer Lifetime Value (CLTV): Stream of purchases over a customer's lifetime. Keeping an existing customer is five times cheaper than acquiring a new one.

Targeting the Marketplace

Market Segmentation: Dividing the market into small segments.
Target Marketing: Selecting which segments a company will pursue.
Value Proposition: Set of benefits or values a company promises to deliver to customers.
Integrated Marketing Program: Delivers value through a combination of marketing tools used on various channels. (like the 4Ps)

Buyer Personas

Researched based profile of the ideal target customer.

Targeting - Selecting Segments

Evaluate segment attractiveness (considering strengths, weaknesses, threats, and opportunities).
Consider if segments are identifiable, if enough people are in the segment, if the company can reach the segment, if the people within a segment would react similarly to a marketing message, if they can afford the product.
Consider profitability, and how similar the segments are.
Various marketing strategies like undifferentiated, differentiated, concentrated, and micromarketing.

Positioning

Define the marketing mix variables to give customers a clear, distinctive, and desirable understanding of a product or service in comparison to competitors.
Include various strategies like points-of-parity or points-of-difference.

Specific Positioning Strategies

Based on target group, strategic focus, and company strengths (assets).
Various strategies such as low price, superior quality, rapid innovation, superior service, and tailored offerings.

Perceptual Map

Displays the position of products or brands in the consumer's mind using two or more dimensions.
Understand how products are perceived in the market.

Product Management

Growth Strategies (e.g. Ansoff Matrix) - exploring market penetration, market development, product development, and diversification.

4Ps & 4Cs

Traditional 4Ps: Product, Price, Place, Promotion
4 Cs: Customer solution, Customer cost, Convenience, Communication

Product Decisions

Breadth & Depth of Product Lines: The number of product lines (breadth) and number of products in the line (depth)
Product Design: A product's physical characteristics & aesthetic aspects affecting functionality, ease of entry, fuel consumption, and aesthetics.
Brand Value & Ethical / Ecological Value: Brand value; relationship with consumers, ethical aspects like fair trade and local communities, ethical / ecological considerations.

Place / Distribution

Distribution Policies: Intense Distribution (many outlets), Selective Distribution (fewer outlets), Exclusive Distribution (only a few outlets).
Distribution structure (e.g. retailers, wholesale, direct distribution)
Customer Journey

Communication Process & IMC

Communication Process (Encoding & Decoding): Information transfer from sender to receiver.
IMC (Integrated Marketing Communication): Strategically coordinating messaging across various communication channels.
Interactive Channels:* (e.g. face2face, online, video, sales promotions, direct & digital marketing)
Passive Channels: (e.g., advertising, announcements/persuasive messagings).

6 Steps in Developing Effective Marketing Communications

Identifying the target audience.
Determining communication objectives.
Designing the message.
Choosing channels & media.
Selecting message sources.
Collecting feedback

Extending Marketing

Sensory Marketing: Focusing on engaging the senses of customers for a better overall sensory experience when purchasing a product.
Digital offerings: e-books, streaming services, etc

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Description

This quiz covers key concepts in marketing, including definitions, core activities, institutions, and processes. Explore the evolution of marketing strategies and the role they play in corporate strategy. Perfect for understanding customer orientation and marketing fundamentals.