Marketing Management Fundamentals
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Questions and Answers

What are some usual measures of performance that concern all marketers?

  • Customer profitability (correct)
  • Sales growth (correct)
  • Total sales (correct)
  • Awareness (correct)

    • Loyalty always means 100% devotion to one product, service, or retailer.

    False

    What does environmental scanning in marketing refer to?

    close observation of trends in the market

    What is customer analysis in marketing?

    <p>Efforts to understand end-users, buyers, and intermediate buyers/sellers.</p> Signup and view all the answers

    What is the importance of market segmentation?

    <p>All of the above</p> Signup and view all the answers

    SWOT analysis combines strengths and threats for overall business strategy formulation.

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

    The combination of strengths and weaknesses, opportunities and threats in marketing is often referred to as _______ analysis.

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

    What does a marketer refer to?

    <p>The person or team responsible for making various marketing decisions</p> Signup and view all the answers

    Marketers are only concerned with selling and advertising.

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

    Define a marketing plan.

    <p>A document specifying the marketing program an organization intends to undertake, the rationale behind it, the implementation requirements, and the expected results.</p> Signup and view all the answers

    A marketer's job is to understand ______________ and markets.

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

    What is the first step in the 10-step approach to making marketing decisions?

    <p>Define the marketing challenge</p> Signup and view all the answers

    What does Step 3 of the marketing process involve?

    <p>Selecting a primary target market</p> Signup and view all the answers

    What is the purpose of having a primary target market?

    <p>To design marketing offers with a particular audience in mind</p> Signup and view all the answers

    A primary target market means a business will exclusively sell to customers within that target group.

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

    Customers want solutions to their problems and answers to their wants, not just products for the sake of owning them. They pay for a package of benefits with ______________, ______________, and ______________.

    <p>money, time, effort</p> Signup and view all the answers

    What is the term used to refer to the total offering of products and services?

    <p>Product portfolio</p> Signup and view all the answers

    What is distribution in marketing?

    <p>The movement of a product or service to the customer.</p> Signup and view all the answers

    Which of the following are communication methods used by marketers to attract customers? (Select all that apply)

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

    Promotion is a synonym for marketing communications.

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

    __________ refers to the use of media to provide free coverage related to a product or service.

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

    What is the overall trend in marketing communications?

    <p>Dialogue with customers</p> Signup and view all the answers

    What is buzz marketing?

    <p>Buzz marketing refers to a variety of techniques to get people talking about your product or service, especially online.</p> Signup and view all the answers

    Social media presence is not crucial for most marketers.

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

    When developing a marketing communications program, all of these questions must be addressed: ______.

    <p>who will be targeted, what the purpose is, what to say, how to say it, who will convey the message, when it will be done, how much will be spent, and how it will be assessed</p> Signup and view all the answers

    What do some marketers believe customers will use price as an indicator of?

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

    Which type of price endings are often used to indicate value according to the text?

    <p>Odd endings like 7 or 9</p> Signup and view all the answers

    What occurs when competitors change prices back and forth to match or undercut each other?

    <p>Price wars</p> Signup and view all the answers

    In Canada, is it illegal to conspire to fix prices?

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

    The key to customer retention and development is not simply a clever loyalty program but providing more ___ than competitors.

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

    What are some common questions that marketers ask when evaluating communications ideas?

    <p>Is it cost-effective?</p> Signup and view all the answers

    Personal selling requires people to interact directly with __________ and customers.

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

    The sales management task mainly involves selling products to customers directly.

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

    What are the 'conventional wisdom' steps in personal selling?

    <p>Do your homework, approach the customer, ask questions, focus on benefits, ask for the order</p> Signup and view all the answers

    Match the following pricing objectives with their descriptions:

    <p>Quick market penetration = High-volume, low-margin approach Discouraging competitive price cutting = Strategy to prevent price wars Matching demand to capacity = Discounted pricing to regulate customer flow</p> Signup and view all the answers

    Study Notes

    Marketing Management

    • Marketing is about establishing and nurturing relationships with customers, clients, sponsors, or other stakeholders to improve the performance of an organization.

    Role of a Marketer

    • A marketer decides which market opportunities to pursue, which customers to target, what products and services to offer, at what price, how to communicate with prospects and customers, and what distribution systems to use.

    Marketing Program

    • A marketing program is a collection of interrelated decisions that attract, retain, and grow customers.

    Marketing Planning Process

    • Preparing a marketing plan is a disciplined preparation of a marketing strategy.
    • It involves a 10-step approach to making marketing decisions and developing a marketing plan.

    10-Step Approach to Making Marketing Decisions

    • Step 1: Define the Marketing Challenge
      • Identify marketing objectives and activities.
      • Determine whether it's a start-up or ongoing situation.
    • Step 2: Identify Market Opportunities
      • Identify and assess market opportunities.
      • Determine what the organization could do.

    Performance Metrics

    • Total sales
    • Sales per customer
    • Market share
    • Sales growth
    • Total profitability
    • Customer profitability
    • Awareness
    • Satisfaction
    • Loyalty

    Marketing Strategy

    • Marketing strategy is about deciding what to do and for whom.
    • It should lead the firm's strategy by helping the firm make what can be sold, not just sell what can be made.### PEST Analysis and Competitor Analysis
    • PEST analysis: study of Political, Economic, Social, and Technological factors that affect business
    • Importance of PEST analysis:
      • Helps identify opportunities and threats
      • Enables marketers to add value to their organization
      • Weak signals in the environment can be picked up to gain a competitive advantage
    • Competitive analysis:
      • Identifies and understands competitors
      • Analyzes their marketing programs and performance
      • Helps in anticipating and dealing with competition

    Customer Analysis

    • Customer analysis: understanding end-users, buyers, and intermediate buyers/sellers
    • Importance of customer analysis:
      • Helps in identifying customer needs and wants
      • Enables marketers to develop marketing programs that satisfy customer needs
    • Customer care-abouts:
      • What wants and needs are people trying to satisfy?
      • What is particularly important to them?
      • Can customers be influenced to want something different?

    Market Segmentation

    • Market segmentation: dividing people into different groups based on similar characteristics
    • Importance of market segmentation:
      • Enables marketers to focus their efforts on the most promising customer groups
      • Helps in developing targeted marketing programs
    • Types of market segmentation:
      • Product-based segmentation (e.g., bicycle types)
      • Customer-based segmentation (e.g., children, weekend users, enthusiasts, racers)
      • Price-based segmentation (e.g., high, medium, low sensitivity)
      • Shop-based segmentation (e.g., specialty store, mass merchant)

    Self-Analysis and Market Opportunity Assessment

    • Self-analysis: identifying and assessing market opportunities by matching company capabilities with market needs
    • Importance of self-analysis:
      • Enables marketers to understand their strengths and weaknesses
      • Helps in identifying market opportunities that can be pursued
    • Market opportunity assessment:
      • Involves understanding market needs and identifying opportunities that can be pursued
      • Requires analysis of company strengths and weaknesses to exploit opportunities and deal with threats

    Target Market Selection

    • Target market selection: identifying the primary target market to focus on

    • Importance of target market selection:

      • Enables marketers to focus their efforts on a specific group
      • Helps in developing targeted marketing programs

    • Criteria for selecting a target market:

      • Substantial market size and potential growth
      • Accessibility of the target market
      • Differentiation from competitors
      • Actionable guidance for the organization### Marketing and Product/Service Offering

    • Marketing involves understanding customer needs and wants, and making decisions based on that knowledge to offer products or services that satisfy those needs.

    • The product or service offering is a package of benefits or a customer value proposition, focusing on what customers get from the product or service rather than its features.

    • Customers pay for a package of benefits with money, time, and effort, and value is the relationship between the costs paid and the benefits received.

    Product/Service Decisions

    • A marketer must decide what to offer in terms of products and services, including the product portfolio, branding, and packaging.
    • The number of product variations can quickly increase, adding complexity to marketing challenges.
    • Only 5% of new product launches are successful, highlighting the difficulty of matching product/service offerings with customer wants and habits.

    Product Life Cycle

    • Every product and service has a life cycle, which affects marketing decisions.
    • Products and services can have a short life cycle (e.g., fads) or a long life cycle (e.g., the Boeing 747).
    • The product life cycle impacts decisions on production, pricing, and service provided.

    Services Marketing

    • Services are performed and consumed at the same time, making demand management a key challenge.
    • Services are often intangible, making it difficult to communicate their benefits.
    • Marketers can make intangible services more tangible by providing creative ways for customers to experience the service before choosing it.

    Distribution Approach

    • Distribution refers to the movement of a product or service to the customer.
    • Marketers must decide which distribution channels to use, including owning stores, using wholesalers, or selling directly to customers.
    • Distribution tasks include carrying inventory, shipping, and providing after-sales service, and are divided among intermediaries who take a margin of the sales dollar.
    • Deciding on the distribution approach is a major marketing decision with long-term implications.

    Attracting Customers

    • Marketing involves communicating incentives to buy, and can be done through various methods, including advertising, promotion, point-of-purchase displays, direct mail, web marketing, telemarketing, packaging, personal selling, publicity, and guerrilla marketing.
    • The overall trend in marketing communications is towards a dialogue with customers rather than a monologue.
    • Customers have control over whether and when advertising reaches them, and marketing communications must be based on the customer inviting the marketer's message into consideration.

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    Description

    Learn the basics of marketing management, including the role of a marketer and the key components of a marketing program.

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