Marketing Fundamentals Quiz
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Questions and Answers

What is a primary characteristic of a free trade area?

  • Members have no tariffs or quotas among themselves. (correct)
  • Members must follow a unified trade policy.
  • Members adopt a common currency.
  • Members can set their own tariffs towards non-members. (correct)

    • Which trading agreement allows member countries to invest freely in each other's markets?

  • Economic and monetary unions
  • Free trade areas
  • Customs unions
  • Common markets (correct)

    • What distinguishes a customs union from a free trade area?

  • Members do not charge any tariffs at all.
  • Members set quotas for trade.
  • Members can impose different tariffs on imports.
  • Members adopt a common set of trade restrictions with non-members. (correct)

    • Which example is representative of an economic and monetary union?

    <p>Euro-zone countries</p> Signup and view all the answers

    What was the primary motivation for modernizing NAFTA into USMCA?

    <p>To address changes in intellectual property and digital trade.</p> Signup and view all the answers

    What does CRM in marketing primarily focus on?

    <p>Attitudes and aptitudes of the employees</p> Signup and view all the answers

    Which of the following is a characteristic of niche marketing?

    <p>Focuses on a specific and well-defined market segment</p> Signup and view all the answers

    Market segmentation can be based on which of the following criteria?

    <p>Demographics, geography, and psychographics</p> Signup and view all the answers

    What is a primary disadvantage of product differentiation?

    <p>It may lead to increased production costs</p> Signup and view all the answers

    Which of the following describes primary research?

    <p>Original data collected for a specific purpose</p> Signup and view all the answers

    What does the term 'physical evidence' refer to in marketing?

    <p>Tangible and observable features of a business</p> Signup and view all the answers

    Which market segmentation category includes lifestyle and emotional factors?

    <p>Psychographic</p> Signup and view all the answers

    Which distribution strategy involves tailoring a marketing mix to each market segment?

    <p>Multi-segment marketing</p> Signup and view all the answers

    What is the primary focus of market-oriented businesses?

    <p>Making products they can sell based on consumer needs</p> Signup and view all the answers

    How is market share defined?

    <p>The organization's share of total sales within a specific market</p> Signup and view all the answers

    Which of the following is a disadvantage of market orientation?

    <p>Increased spending on market research</p> Signup and view all the answers

    Which of the following is NOT part of the typical marketing planning process?

    <p>Sales forecasting</p> Signup and view all the answers

    What is included in the marketing mix known as the Four P's?

    <p>Product, Price, Place, Promotion</p> Signup and view all the answers

    What does a product line consist of?

    <p>Related products designed to maximize profits</p> Signup and view all the answers

    Which of the following accurately describes product orientation?

    <p>Producing what the company has the ability to make</p> Signup and view all the answers

    What are effective promotion strategies aimed at?

    <p>Attracting customers to products</p> Signup and view all the answers

    What is the main role of e-tailers in the marketplace?

    <p>To sell products over the Internet</p> Signup and view all the answers

    Which method is considered a form of primary market research?

    <p>Focus groups</p> Signup and view all the answers

    What characterizes direct distribution?

    <p>Goods sold from the producer directly to the customer</p> Signup and view all the answers

    Which of the following best describes the term 'intermediaries'?

    <p>Agents who receive a commission for facilitating sales</p> Signup and view all the answers

    What distinguishes secondary market research from primary market research?

    <p>It involves data collected for reasons other than the company's needs.</p> Signup and view all the answers

    Which of the following is a part of the '3 Ps of Marketing Services'?

    <p>Physical Evidence</p> Signup and view all the answers

    In the context of the Push-Pull Concept, what does the 'pull' strategy involve?

    <p>Increasing customer demand through advertising.</p> Signup and view all the answers

    What is the correct definition of market research?

    <p>Techniques to gather and analyze data for selling strategies</p> Signup and view all the answers

    What is the primary goal of the AIDA model in promotional strategies?

    <p>To smoothly transition customers through the sales funnel.</p> Signup and view all the answers

    What does the term 'indirect distribution' signify?

    <p>Products sold with the help of one or more intermediaries</p> Signup and view all the answers

    Which of the following best represents the 'Desire' stage in the AIDA model?

    <p>Fostering a need or want for the product.</p> Signup and view all the answers

    What is the term for supporting events in exchange for advertising space and visibility?

    <p>Sponsorship</p> Signup and view all the answers

    Which aspect of the marketing mix is focused on the physical location where products are sold?

    <p>Place</p> Signup and view all the answers

    Which of the following is NOT a characteristic of brick-and-mortar retailers?

    <p>They utilize online marketing strategies.</p> Signup and view all the answers

    What are the two types of markets described for marketing activities?

    <p>B2B and B2C</p> Signup and view all the answers

    What is a primary function of retailers according to the content provided?

    <p>To sell goods to the final consumer.</p> Signup and view all the answers

    Study Notes

    Marketing Fundamentals

    • Marketing involves addressing needs and wants.
    • Needs are essential necessities for survival.
    • Wants are desires that humans have.

    Market Share

    • Market share represents an organization's portion of total sales within a specific market.
    • It's calculated by expressing a firm's sales as a percentage of the total market value.
    • Example: If a firm's sales revenue is $100 million in an industry worth $400 million, its market share is 25%.

    Market Orientations

    • Market Orientation: Focuses on selling products customers want, rather than focusing only on what the company itself can produce.
      • Advantages: Flexibility, less risk.
      • Disadvantages: Significant costs associated with market research.
    • Product Orientation: Focuses on selling products that the company excels in, believing that demand will arise.
      • Advantages: High quality products.
      • Disadvantages: Could struggle with customer feedback and potential market trends.

    Marketing Planning

    • Marketing Planning is a systematic process for setting objectives and strategies to achieve desired goals.
    • Process includes:
      • Marketing Audit
      • Marketing Objectives
      • Marketing Strategies
      • Monitoring & Review
      • Evaluation

    Marketing Mix (4 Ps)

    • The combination of product, price, place, and promotion used to meet customer needs & market goals.
      • Product: Goods or services that satisfy customer needs and wants. Sub-categories include Tangible and Intangible.
      • Price: The amount charged for a product or service. Strategies include skimming/penetration pricing, cost-plus pricing.
      • Place: Distribution channels to deliver the product to the customer. Includes direct and indirect channels, intermediaries such as wholesalers, distributors and agents.
      • Promotion: Attracting customers to a product. This includes branding, above-the-line (e.g., TV ads), and below-the-line (e.g., email marketing) strategies. Different marketing strategies like Pull and Push may be used.

    Product

    • Product Line: Related products to increase profits.
    • Product Mix: Producing multiple product types for variety.

    Promotion

    • Promotion involves strategies used to attract customers.
    • Branding is a strategy to attract customers.
    • Above-the-Line: Mass media (TV, radio, print).
    • Below-the-Line: Packaging, sponsorships, events and direct mail.

    People

    • CRM (Customer Relations) Effective attitudes and aptitudes of employees create favorable customer experiences. This determines word-of-mouth promotion and customer lifetime value.

    Process

    • Process refers to customer service methods to ensure satisfaction.

    Physical Evidence

    • Physical evidence is the image of a business that is portrayed, regarding its tangible and observable features.

    Packaging

    • Packaging is the presentation of the product to the consumer
    • Packaging can create product differentiation.

    Market Segmentation

    • Market Segmentation involves splitting a market into distinct groups based on needs or characteristics (e.g., Demographics, Psychographics, and Geographic).

    Examples of Market Segmentation

    • DINK: Double Income, No Kids
    • SILK: Single Income, Lots of Kids
    • WOOF: Well-Off Older Folks

    Target Marketing

    • Niche: Targeting a specific, well-defined market segment.
    • Mass: Targeting a large number of different market segments.
    • Multi-segment: Tailoring the marketing mix to each segment.

    Market Research

    • Primary research: Original data specific to a purpose (e.g., surveys, focus groups, mystery shopping).
    • Secondary research: Data previously collected for another purpose (e.g., public records, census reports).

    Pricing Decisions

    • Price Makers: Companies are in control of pricing strategies; for example, having monopoly/oligopoly position in market.
    • Price Takers: Companies take the prices that the market offers; for example, firms in highly competitive markets.

    Pricing Strategies

    • Skimming pricing: High initial prices for new products, often lowered later.
    • Penetration pricing: Low initial prices to gain market share and rapidly build awareness.
    • Cost-plus pricing: Adding a percentage markup to production costs to calculate selling price.

    International & Global Marketing

    • International Marketing: Applying marketing principles to multiple countries.
    • Global Marketing: Conceptualizing and conveying products/services worldwide.
    • Intermediaries: Agents (do not take ownership, receive commissions) and distributors handle tasks of getting products to consumers.

    Direct Distribution

    • Sales methods from Producer -> Direct consumer (mail, phone, online).

    Indirect Distribution

    • Involves intermediaries to distribute products.

    Place & Distribution

    • Place describes how a product or service is distributed.
    • Distribution is about getting the right product to the right customer at the correct time, price & place.

    Wholesalers, Distributors

    • Wholesalers obtain goods in bulk, store them, then resell them to retailers.
    • Distributors handle products for one or a small number of manufacturers, selling directly to customers.

    B2B and B2C

    • B2B: Business-to-Business sales
    • B2C: Business-to-Consumer sales
    • E-Tailers: Companies that sell products online.

    3 Ps of Marketing Services

    • People: Employee aptitudes and attitudes determine service quality.
    • Process: Customer service methods (satisfaction)
    • Physical Environment: Image of the service business.

    Promotional Mix (AIDA)

    • AIDA: Attention, Interest, Desire, Action.
    • A framework for promoting a product. A part of a larger marketing mix.

    Traditional Channels of Distribution

    • Zero level, one level, two-level distribution channels outline various methods of selling from producer to customer. These often involve intermediaries (wholesalers, distributors, agents).

    Regional Trade Blocs

    • Free Trade Areas: Countries remove tariffs between each other (but maintain right to set tariffs on non-member countries)
    • Customs Unions: Countries adopt common trade tariffs on non-members.
    • Common Markets: Countries reduce tariffs and other barriers to trade, allowing free movement of goods, services and factors of production.
    • Economic/Monetary Unions: countries adopt a common currency and pursue unified economic policy (e.g., sharing single interest rates, common budgetary policy).

    CMS

    • CMS stands for Content Management System.
    • It's a framework for managing a website.

    Objectives of Promotion

    • Informs the market about products and services.
    • Persuades potential customers to switch to or purchase the product.
    • Reminds customers about the product and the business.

    Product Life Cycle

    • Product Life Cycle: Describes stages in sales from product introduction through maturity and decline.
    • The stages include research and development, introduction, growth, maturity, and decline.
    • Innovators, Early adopters, Early majority, Late majority, and Laggards represent stages in the adoption of a product.

    Promotional Mix (FAB)

    • FAB: Features, Advantages, Benefits (a model for generating attention, interest, desire, and action).

    Additional Concepts:

    • Retailers: Businesses that sell goods to final consumers (Brick and Mortar and E-tailers).

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    Related Documents

    Marketing Test Review Updated 2024 PDF

    Description

    Test your knowledge on the basics of marketing, including key concepts such as needs vs. wants and market share calculations. Dive into market orientations to understand how different strategies impact sales and customer relations.

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