Marketing Fundamentals Quiz
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Questions and Answers

What is a primary advantage of competition-based pricing?

  • Limited complexity
  • Customer-centric approach
  • Market responsiveness (correct)
  • Higher profit margin

Which of the following is a disadvantage of psychological pricing?

  • Consumer skepticism (correct)
  • Lack of differentiation
  • Complex pricing strategy
  • Higher profit margins

What is the role of downstream marketing channel partners?

  • Connecting firms directly to customers (correct)
  • Designing production processes
  • Providing raw materials to manufacturers
  • Offering financial advice to businesses

Which factor could potentially result from competitive pricing strategies?

<p>Price wars among competitors (B)</p> Signup and view all the answers

Which of the following best describes the contemporary term for traditional supply chain?

<p>Value delivery network (A)</p> Signup and view all the answers

What could be a consequence of neglecting the value aspect in competition-based pricing?

<p>Decreased perceived product quality (C)</p> Signup and view all the answers

The primary focus of marketers has traditionally been on which type of partners in the supply chain?

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

What is a common psychological pricing strategy that might be employed?

<p>Price/charm pricing (A)</p> Signup and view all the answers

What is a potential reason for the failure of new products?

<p>Incorrect pricing strategies (C)</p> Signup and view all the answers

Which factors must hospitality companies consider when developing new products?

<p>External environmental factors like recessions and inflation (B)</p> Signup and view all the answers

What is the key purpose of idea screening in the product development process?

<p>To quickly identify which ideas are worth developing further (C)</p> Signup and view all the answers

What does concept development involve in product creation?

<p>Transforming ideas into market-ready products (A)</p> Signup and view all the answers

Which group is identified as a crucial source for generating new product ideas?

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

What often prompts large companies to acquire smaller chains?

<p>The perceived growth potential of the smaller chain (B)</p> Signup and view all the answers

What aspect of product ideas is crucial for companies to ensure they align with?

<p>The company's long-term vision and objectives (D)</p> Signup and view all the answers

What is a common characteristic of distressed chains that attract large companies?

<p>They represent opportunities for strategic recovery (A)</p> Signup and view all the answers

What is the main objective of market skimming?

<p>To maximize immediate profits by charging a high price initially. (D)</p> Signup and view all the answers

What is the relationship between cost and pricing in a business?

<p>Cost establishes the lower limit of pricing while market and demand set the upper limit. (D)</p> Signup and view all the answers

In a cross-sell strategy, what is the primary aim?

<p>To suggest a complementary product to increase the total value of the purchase. (B)</p> Signup and view all the answers

What type of appeals are designed to provoke emotions that motivate a purchase?

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

Which factor typically influences who sets prices in large organizations?

<p>Established guidelines from corporate management. (B)</p> Signup and view all the answers

Which of the following is NOT a factor in message structure decisions?

<p>Use of imagery (B)</p> Signup and view all the answers

How should a message be formatted to attract attention effectively?

<p>Incorporating novelty and contrast (D)</p> Signup and view all the answers

Which pricing strategy aims to maximize market share?

<p>Market share leadership (D)</p> Signup and view all the answers

Which factor does NOT contribute to the credibility of a message source?

<p>Availability (D)</p> Signup and view all the answers

What is a potential reason for effective low-cost producers to achieve savings?

<p>Operational efficiencies rather than price reductions. (B)</p> Signup and view all the answers

What is the primary purpose of measuring the result of communication?

<p>To evaluate the message's effect on the audience (B)</p> Signup and view all the answers

What determines the upper limit of a product's price?

<p>Market demand (D)</p> Signup and view all the answers

According to the content, which method is commonly used to set the total advertising budget?

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

Which of the following best describes upselling?

<p>Suggesting a higher-priced premium version of the considered product. (A)</p> Signup and view all the answers

Which characteristic does NOT relate to social media influencers?

<p>Anonymity (D)</p> Signup and view all the answers

What did John Wanamaker mean by saying, 'I know that half of my advertisement is wasted, but I don’t know which half'?

<p>Measuring ad effectiveness is challenging. (B)</p> Signup and view all the answers

What are the stages that determine communication objectives in order?

<p>Awareness, Knowledge, Liking, Preferences, Conviction, Purchase (B)</p> Signup and view all the answers

Which element in the communication process represents the interpretation of a message?

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

In the AIDA model, which stage follows after capturing Attention?

<p>Interest (D)</p> Signup and view all the answers

What aspect heavily influences the creation of a meaningful message?

<p>Target audience's shared knowledge (C)</p> Signup and view all the answers

What does the 'Noise' in the communication process refer to?

<p>Disturbances that disrupt the message (B)</p> Signup and view all the answers

How must the marketing communicator approach the problems of communication?

<p>Consider what to say, how to say it logically, and symbolically (D)</p> Signup and view all the answers

What is the primary concern when identifying the target audience?

<p>Potential buyers or current users (A)</p> Signup and view all the answers

Which type of feedback is essential for the sender in the communication process?

<p>Information based on the receiver's reaction (A)</p> Signup and view all the answers

Which statement best describes the goal of upselling?

<p>To encourage the purchase of a more expensive item (C)</p> Signup and view all the answers

What is the primary distinction between cross-selling and upselling?

<p>Cross-selling adds extra items, while upselling improves the quality or value of the item (A)</p> Signup and view all the answers

How does consumer perception influence buyer-oriented pricing?

<p>It begins with analyzing consumer needs and price perceptions (D)</p> Signup and view all the answers

What happens to the quantity demanded of most goods when prices decrease?

<p>It increases according to the law of demand (B)</p> Signup and view all the answers

What characterizes the demand curve of prestige goods when the price is dropped too low?

<p>Demand may decrease as lower prices can reduce perceived value (A)</p> Signup and view all the answers

Which factor contributes to the behavior of the demand curve for most goods?

<p>The relationship between price and quantity demanded (D)</p> Signup and view all the answers

What is a common misconception consumers may have about lower prices and demand for luxury goods?

<p>Lower prices will always lead to higher demand (B)</p> Signup and view all the answers

What effect does a price increase have on the quantity demanded of most goods?

<p>Quantity demanded decreases due to higher prices (B)</p> Signup and view all the answers

Flashcards

New Product Development

The process of developing entirely new products or significantly improving existing ones.

External Environment

The external factors that influence the hospitality industry, such as economic trends, environmental changes, and government regulations.

Idea Generation

The systematic search for new ideas that align with the company's goals.

Idea Sources

Different sources that can provide inspiration for new products, such as employees, customers, competitors, and research.

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Idea Screening

The process of carefully evaluating and selecting the most promising new product ideas.

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Concept Development

Developing product ideas into detailed concepts, outlining features, benefits, and target customers.

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Product Acquisition

The process of acquiring an existing company or brand to expand market presence or gain access to new products or services.

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Reasons for New Product Failure

The reasons why new products might fail in the market, such as poor market research, incorrect pricing, or strong competition.

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Market Skimming

A pricing strategy where a company charges a high price initially, then gradually lowers it over time. This is often used for new products or technological advancements, where consumers are willing to pay a premium for early access.

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Market Share Leadership

A pricing strategy where a company focuses on increasing its market share in a specific market. They may offer lower prices or discounts to attract more customers and dominate the market.

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Cost of Production

The cost of producing, distributing, and promoting a product. Companies must set prices that cover these costs to be profitable.

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Cross-selling

Offering a customer a related product or service in addition to their main purchase. This helps increase the overall value of the transaction for the customer.

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Upselling

Encouraging a customer to buy a more expensive or premium version of the product they're considering. This increases the average purchase value for the company.

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Demand Curve

The relationship between the price of a product and the quantity of demand for it. Understanding this relationship is crucial for setting prices effectively.

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Cost Subsidization

Cost subsidization occurs when a company receives financial support from an external source, such as the government, to cover its operating expenses.

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Effective Low-Cost Production

Achieving cost savings through efficiency and process optimization, without compromising the quality of the product.

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Competition-based pricing

A pricing approach where prices are set based on competitor prices, aiming for market responsiveness and simplicity. It focuses on market share but can lead to price wars and neglecting product value.

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Psychological pricing

This strategy uses psychological cues to encourage purchases, employing price points like charm pricing, reference pricing, and prestige pricing.

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Distribution

The process of making products or services available to buyers. It involves relationships with suppliers and resellers in the supply chain, encompassing both upstream and downstream partners.

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Marketing intermediaries

These individuals or organizations act as intermediaries in the distribution channel. They facilitate the flow of goods and services from producers to consumers.

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Distribution channel

A set of independent organizations working together to make a product or service available to consumers or businesses.

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Value delivery network

A network of companies collaborating to streamline the process of delivering value. It goes beyond the traditional supply chain to encompass all partners involved in value creation.

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Upstream partners

These are companies that supply raw materials, components, information, or expertise to a firm.

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Downstream partners

These organizations, such as wholesalers and retailers, connect a company with its customers.

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Buyer-oriented Pricing

A pricing strategy focused on analyzing consumer needs and their perception of value to determine optimal pricing.

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Standard Demand Curve

Represents the typical relationship between price and demand for most goods. As the price decreases, demand increases, and vice versa.

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Prestige Demand Curve

A type of demand curve where demand initially increases with a price drop, but then decreases when the price drops below a certain point.

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Price Perception

A consumer's perception of a product's value based on its price. They may associate higher prices with higher quality.

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Prestige Effect

The tendency for consumers to associate a product's value with status or exclusivity, leading to higher demand for higher-priced items.

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Law of Demand

The basic economic principle that states consumers will buy more of a product when the price is lower, and less when the price is higher.

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Encoding

The process of converting a sender's ideas into a message that can be understood by the receiver.

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Media

The channel through which a message is transmitted, such as email, phone call, or face-to-face conversation.

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Noise

Anything that disrupts the communication process, such as background noise, distractions, or misunderstandings.

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Decoding

The interpretation of the message by the receiver.

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Receiver

The individual or group who is intended to receive the message.

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Response

The reaction of the receiver to the received message. This can be verbal, nonverbal, or both.

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Feedback

The information sent back to the sender based on the receiver's response, allowing for adjustments to the communication process.

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Sender's and Receiver's Fields of Experience

The shared knowledge and experiences that both the sender and receiver possess, which influences their understanding of the message.

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Rational Appeals

Appeals that focus on the audience's self-interest, emphasizing benefits and advantages.

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Emotional Appeals

Appeals that evoke emotions, aiming to create a sense of urgency or desire, often using humor, fear, or nostalgia.

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Moral Appeals

Appeals to the audience's sense of morality and ethics, emphasizing what's right and proper.

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Message Source

The source of a message's credibility, including expertise, trustworthiness, and likability.

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Measuring Communication Results

The process of evaluating the effectiveness of a communication campaign by measuring its impact on the audience and their behavior.

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Communication Channel

A communication channel involving two or more people, either personal (face-to-face) or non-personal (mass media).

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Affordable Method

A method of setting the advertising budget based on what the company can afford, often leading to under-investment.

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Social Media Influencers

The practice of using influencers on social media to promote products or services, leveraging their reach and credibility.

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Study Notes

Introduction and Review

  • Marketing is the process by which companies create value for customers, building strong relationships to capture value in return.
  • Marketing is the art and science of finding, retaining, and growing profitable customers.
  • Need: A state of felt deprivation.
  • Want: A need shaped by culture and personality.
  • Demand: A want backed by buying power.

Different Types of Demands

  • Negative demand: Consumers dislike the product and avoid it.
  • Non-existent demand: Consumers are unaware of, or uninterested in, the product.
  • Latent demand: A strong, unmet need exists for a product that does not exist yet.
  • Declining demand: Market demand for a product is in decline.
  • Irregular demand: Consumer purchase varies based on time.
  • Full demand: Demand is at a satisfactory level.
  • Overful demand: Demand exceeds the company's ability to supply.
  • Unwholesome demand: Consumers are attracted to products with undesirable qualities.

Marketing Channels

  • Communication channels: Company communication through physical stores and websites.
  • Distribution channels: Display, selling, and delivering physical products or services to the customer.
    • Direct: Internet, mail, or phone.

The Four Ps of the Marketing Mix

  • Product (variety, quality, design, features, brand, packaging, sizes, services, warranties)
  • Price (list price, discounts, allowances, payment period, credit terms)
  • Place (channels, coverage, assortments, locations, inventory, transportation)
  • Promotion (sales promotion, advertising, sales force, public relations, direct marketing)

Marketing and Strategy

  • Ansoff Matrix (a tool for analyzing and planning growth strategies)
    • Market penetration: Increase sales of existing products in existing markets.
    • Market development: Introduce existing products into new markets.
    • Product development: Introduce new products into existing markets.
    • Diversification: Introduce new products into new markets.

Market Segmentation, Targeting, and Positioning

  • Segmentation considers the diverse needs of consumers to create tailored appeals.
  • Categorizing consumers is essential for efficient marketing.
  • Segmentation by age, life-cycle, gender, income, geographic, psychographic, and behavioural factors.

Product Development

  • A company must generate new ideas and manage them amidst changing trends.
  • New products are acquired or developed through innovation & creativity.

Pricing Products

  • Price is the amount of money charged for a good or service.
  • Pricing should cover costs of production, distribution, and marketing.

Distribution Channels

  • Distribution is the process of making a product or service available to consumers.
  • Two types: upstream and downstream marketing channel partners.
  • Types of conflict include vertical and horizontal channel conflict.

Promotion

  • Promotion Mix:
    • Advertising, Sales Promotion, Public Relations, Direct Marketing, Personal Selling.
  • Focus on raising awareness of a product (or service).
  • Communication takes place across different sales stages.
  • Mass media are often used to reach consumers.

Media

  • Media vehicles carry messages (e.g. newspapers, TV, digital).
  • Effective media selection considers how to make the right impact on the target audience.

Public Relations

  • Public Relations (PR) builds a positive image for products or brands.
  • PR focuses on managing stakeholder perceptions.

Sales in Tourism

  • Revenue generation through package and product sales (flights, hotel rooms, tours, cruises).
  • Direct interaction with consumers (travel agents, hotel staff, online platforms)

Online and Mobile Marketing

  • Web sites, email marketing, online advertising, social media marketing, mobile marketing.
  • Online marketing is a diverse digital space with multiple avenues.

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Marketing II PDF

Description

Test your knowledge on the basics of marketing, including the various types of demands and the concepts of needs, wants, and demand. This quiz will cover the process of creating value for customers and building relationships in marketing. Perfect for anyone looking to refresh their understanding of marketing principles.

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