Marketing Mix Concepts
24 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary goal of persuasive promotion?

  • To remind customers about an established product
  • To encourage purchases and build brand loyalty (correct)
  • To provide detailed product information
  • To generate brand awareness through mass media
  • Which of the following is a characteristic of reminder promotional techniques?

  • They maintain customer awareness of established products (correct)
  • They are typically used for new product launches
  • They rely on social media for promotion
  • They are suitable for products in the growth stage
  • Which of these marketing strategies is most cost-effective?

  • Television advertising
  • Above the line (ATL) promotion
  • Sponsorships
  • Below the line (BTL) promotion (correct)
  • What is a key advantage of above the line (ATL) promotion?

    <p>It has the potential to reach a large number of customers (D)</p> Signup and view all the answers

    What is a common factor that makes slogans effective?

    <p>They are memorable due to simplicity and catchy tunes (C)</p> Signup and view all the answers

    What role do logos play for a firm?

    <p>They symbolize the company’s products and enhance recognition (A)</p> Signup and view all the answers

    What does 'word-of-mouth promotion' primarily rely on?

    <p>Oral communication between individuals (B)</p> Signup and view all the answers

    Which promotional strategy might firms use when facing liquidity problems?

    <p>Implementing extension strategies for declining products (A)</p> Signup and view all the answers

    What is a disadvantage of using sales promotion as a marketing strategy?

    <p>It may increase marketing costs and reduce profit margins. (C)</p> Signup and view all the answers

    Which of the following is NOT a form of sales promotion?

    <p>Celebrity endorsements (A)</p> Signup and view all the answers

    What is the main purpose of point of sales promotion?

    <p>To promote products while customers are buying. (C)</p> Signup and view all the answers

    Which of the following best describes the process of publicity?

    <p>Media coverage that promotes a firm without direct payment. (B)</p> Signup and view all the answers

    What is the significant drawback of personal selling as a promotional method?

    <p>Sales agents can be expensive to hire. (B)</p> Signup and view all the answers

    Sponsorship primarily involves providing what in exchange for publicity?

    <p>Financial support and resources. (C)</p> Signup and view all the answers

    What are ATL and BTL methods in the context of promotional mix?

    <p>Above the line and below the line marketing methods. (C)</p> Signup and view all the answers

    Which promotion technique is effective in distracting customers from rival firms?

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

    What is the primary aim of informative promotion?

    <p>To influence purchasing decisions by providing sufficient information (C)</p> Signup and view all the answers

    What is a potential disadvantage of penetration pricing?

    <p>It may lead customers to perceive the products as inferior (A)</p> Signup and view all the answers

    Which pricing strategy involves rounding down prices to make them seem lower?

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

    In what scenario is price skimming typically used?

    <p>For high-tech products with recovery costs from research and development (B)</p> Signup and view all the answers

    What strategy is often employed by supermarkets to attract a large number of customers?

    <p>Loss Leader pricing (B)</p> Signup and view all the answers

    Which of the following is NOT a primary objective of a promotional strategy?

    <p>To entertain (A)</p> Signup and view all the answers

    Which of these strategies relies heavily on customer perception and may not be suitable for service providers such as taxi firms?

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

    What is a significant risk of using a cost-plus pricing strategy?

    <p>It focuses too much on the firm’s costs rather than market demand (A)</p> Signup and view all the answers

    Flashcards

    Word-of-Mouth Marketing

    A form of promotion where positive messages about a product or business are spread by customers, without the company paying for it.

    Sales Promotion

    Temporary strategies used to boost sales and attract new customers, such as buy-one-get-one-free deals, discounts, and contests.

    Point of Sale Promotion

    Promoting a product at the place where customers buy it, often used by supermarkets to encourage impulse purchases.

    Publicity

    Promoting a company and its products through media coverage without paying for it, such as celebrity endorsements.

    Signup and view all the flashcards

    Sponsorship

    A company providing financial and other resources to support an event or another company in exchange for publicity and advertising space.

    Signup and view all the flashcards

    Advertising

    Communicating marketing messages in a persuasive or informative way through various channels.

    Signup and view all the flashcards

    Personal Selling

    Sales representatives directly interacting with customers to convince them to buy a product.

    Signup and view all the flashcards

    Promotional Mix

    All the tools companies use to communicate the benefits of their products or services to customers.

    Signup and view all the flashcards

    Cost-plus pricing

    Adding a profit margin to the cost per unit to determine the selling price.

    Signup and view all the flashcards

    Penetration pricing

    Setting a low initial price to gain market share and brand recognition. Prices can be raised later.

    Signup and view all the flashcards

    Price skimming

    Setting a high price for a new, innovative product to recoup development costs and maximize profits.

    Signup and view all the flashcards

    Psychological pricing

    Using rounded numbers to make prices seem lower, like $0.99 instead of $1.00, to create a perception of a bargain.

    Signup and view all the flashcards

    Loss leader

    Selling a product below cost to attract customers and potentially generate sales of other items.

    Signup and view all the flashcards

    Informative promotion

    Providing information to the market about a firm's new or updated products, including features and price.

    Signup and view all the flashcards

    Promotional strategy objective

    Aims to inform, persuade, or remind potential customers.

    Signup and view all the flashcards

    Persuasive promotion

    Using emotional appeals and convincing arguments to encourage customers to buy a product.

    Signup and view all the flashcards

    Reminder Promotion

    Marketing tactics used to keep customers aware of and interested in a product that's already established in the market. Often used for mature products.

    Signup and view all the flashcards

    Above the Line (ATL) Promotion

    Paid promotional methods using mass media like TV, radio, and print advertising. Reaches a large audience.

    Signup and view all the flashcards

    Below the Line (BTL) Promotion

    Non-mass media promotional activities like direct marketing, events, and sponsorships. Firms have more control over the message.

    Signup and view all the flashcards

    Branding

    The creation of a unique and memorable identity for a company or its products. Involves building a strong brand image and reputation.

    Signup and view all the flashcards

    Slogan

    A memorable phrase or catchphrase that captures the essence of a brand or product. Should be easy to remember and convey benefits.

    Signup and view all the flashcards

    Logo

    A visual symbol that represents a company, its products, or brands. Often designed to be distinctive and eye-catching.

    Signup and view all the flashcards

    Word-of-Mouth Promotion

    Spreading information about a product or service through personal conversations and recommendations. Can be very influential in shaping opinions.

    Signup and view all the flashcards

    Study Notes

    Marketing Mix

    • Marketing is the process of anticipating, identifying, and fulfilling customer needs profitably.
    • Market leadership is characterized by the highest market share in a given market.
    • Market orientation focuses on producing sellable products, rather than selling products that can be made.
    • Market share is the percentage a firm's sales revenue holds in an industry's total revenue.
    • Market size is the magnitude of an industry's value, typically measured in revenue over a specific time period.
    • Product orientation concentrates on production, prioritizing what can be made over what customers want.
    • Consumer profiles encompass demographic and psychographic traits of consumers in diverse markets.
    • Differentiation is the act of distinguishing a product or service from competitors in the market.
    • Market segmentation is the grouping of similar customer types based on shared characteristics for targeted marketing strategies.
    • Convenience sampling involves selecting readily available subjects, often relying on volunteers.
    • Focus groups comprise small discussion groups to gain insights into customer attitudes and behaviors.
    • Interviews are in-depth discussions between an interviewer and interviewee, used to explore perceptions, attitudes, beliefs, and underlying circumstances.

    Market Analysis & Research

    • Market analysis identifies the characteristics and trends of a specific product or industry.
    • Market research gathers data on customer opinions, beliefs, and preferences to understand and anticipate needs.
    • Observation assesses customer behaviors in real-world situations or controlled settings.
    • The target population comprises all potential customers in a particular market.
    • Primary research collects new, original data to solve a specific problem.
    • Qualitative research uses non-numerical data for insights into customer attitudes, beliefs, and preferences.
    • Quantitative research utilizes numerical data to understand market behavior.
    • Random sampling ensures every member of a population has an equal chance of selection.
    • Sample represents a portion of the broader population, chosen for research purposes.
    • The marketing mix is a combination of components used to successfully market a product, including product, price, place, and promotion.

    Pricing Strategies

    • Cost-plus pricing involves adding a profit margin to the cost of production per unit.
    • Penetration pricing sets low initial prices to gain market share.
    • Price skimming sets high initial prices for new products to maximize early revenue.
    • Psychological pricing utilizes numbers ending in .99 to make prices seem lower.
    • Loss leader pricing sets prices below cost to attract customers to purchase additional products.

    Distribution Channels

    • Distribution channels are the pathways a product takes from manufacturer to consumer.
    • Distributors are independent businesses that handle product distribution in the market.
    • Retailers directly sell goods or services to consumers.
    • Wholesalers purchase goods in bulk from producers to sell to retailers.

    Promotion Strategies

    • Informative promotion provides knowledge about a product to influence customer decisions.
    • Persuasive promotion aims to convince customers to buy a particular product over competitors.
    • Informative and persuasive strategies target various stages of the customer journey.
    • Reminder promotion keeps the brand in consumers' minds to encourage repeat purchases, especially for mature products.
    • Above-the-line promotion involves mass media advertising, while below-the-line promotion uses non-mass media.
    • Public relations aims to build and maintain a positive image for the firm, rather than specific product promotion.
    • Sales promotion activities aim at boosting sales temporarily, featuring incentives such as discounts.

    Key Terms

    • Segmentation is the process of dividing a diverse market into smaller, homogeneous groups based on common traits.
    • Market research, both primary and secondary, is crucial for understanding the market, informing strategic decisions, and maximizing opportunities.

    Types of Research

    • Primary market research involves collecting original data directly through surveys, interviews, focus groups, and observations.
    • Secondary market research analyzes existing data from external sources like government reports, market reports, and academic studies.

    Brand Development

    • Brand awareness is the extent to which consumers recognize and remember a brand.
    • Brand development involves enhancing and boosting brand image and reputation for increased consumer loyalty.
    • Brand value measures the worth added by a brand beyond a product's basic functional properties.
    • Packaging significantly impacts customer perceptions regarding a product.
    • Brand loyalty reflects consumers' preference for a particular brand over others.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Description

    This quiz explores fundamental concepts of the marketing mix, including market orientation, market share, and differentiation. Test your understanding of essential marketing principles that drive business success. Ideal for students and professionals looking to enhance their marketing knowledge.

    More Like This

    Use Quizgecko on...
    Browser
    Browser