Marketing Orientation vs. Production

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Questions and Answers

What is one of the main objectives of marketing communication?

Creating brand loyalty

Position products in consumerś mind (correct)

Maximizing social media presence

Increasing production efficiency

Which of the following is NOT a strategy to enhance consumer attention and break through noise?

Using a 3D effect

Creating physical involvement or interaction

Developing a cost-cutting program (correct)

Being controversial

What tends to make a marketing message resonate with consumers?

Generic content that appeals to all

Focus solely on price discounts

The right combination of relevance and engagement (correct)

High frequency of advertisements

Which of the following tactics helps in breaking through the clutter of noise in marketing?

Creating an emotional connection Signup and view all the answers

In a consumer decision-making process, what is primarily influenced by brand positioning?

The perception of product value Signup and view all the answers

What is a potential risk of extending a product brand?

Cannibalization of the existing product Signup and view all the answers

What does the elasticity of demand primarily measure?

The responsiveness of demand to changes in price or other factors Signup and view all the answers

Which condition typically allows for charging high prices?

High brand loyalty among consumers Signup and view all the answers

What factor should companies consider when selecting media for marketing communication?

The nature of the product and the target audience Signup and view all the answers

What does the consumer decision-making process involve?

Emotional and rational factors in making a choice Signup and view all the answers

What is a key characteristic of high involvement purchases?

They often have significant consequences if the wrong choice is made. Signup and view all the answers

Which factor could cause an increase in perceived risk for a consumer?

Complex technology associated with the product. Signup and view all the answers

How does motivated reasoning affect consumer decision-making?

It results in biased processing to support desired conclusions. Signup and view all the answers

Which of the following is NOT a type of perceived risk?

Emotional risk. Signup and view all the answers

What role does sight play in marketing according to the understanding of consumer behavior?

Visual appeal can impact brand recognition and recall. Signup and view all the answers

Which of the following marketing strategies focuses on creating a strong emotional connection through sensory engagement?

Tactile experiences and product trials. Signup and view all the answers

Which factor contributes to a consumer's perceived risk due to lack of information?

High-priced items that are novel to the consumer. Signup and view all the answers

What is a common outcome of effective sound marketing strategies in retail environments?

Enhanced brand identity and mood creation. Signup and view all the answers

Study Notes

Production vs. Marketing Orientation

Companies adopting a production orientation focus on manufacturing products efficiently, aggressively selling them to customers. This was a common approach in the early 20th century.
Companies with a marketing orientation focus on creating value for the customer, and developing products and services that the customer wants.

Customer Value Generation

Customer value isn't just about the product or service for the buyer, but also about the value for the organization.
Positive customer value is generated through perceived benefits of the product or service, along with factors like product, service, image, and relational aspects.
Negative customer value considers factors like monetary cost, time spent, energy used, and psychological costs.

Marketing Mix

The marketing mix includes product, price, promotion, and place elements.
These elements are about defining a company's offerings, which can highlight what a company's about. A fancy product doesn't always mean success.

Marketing Audit Checklists

Marketing audit checklists are used to evaluate strategies.
They identify improvement areas.
They help with development of sales and marketing.
They include target market analysis, goal setting, SWOT, and content strategies, helping marketing teams and businesses optimize effectiveness.

Micro and Macro Environment Variables

Microenvironment: Factors include the company itself, customers, competitors, suppliers, intermediaries, and publics.
Macroenvironment: Factors include demographic, economic, natural, technological, political, and legal factors, and cultural aspects.

Segmentation

Segmentation involves identifying individuals or groups with similar characteristics.
This has implications for marketing strategy and marketing mix.

Differentiation and Positioning

Differentiation: Creating distinct product offerings, typically through unique features, services, and other characteristics.
Positioning: Creating a distinct image of a product in the minds of customers, reflecting its benefits and features.

Sources of Competitive Advantage

Competitive advantages come from relational, legal, organizational, and human resource advantages. These advantages, along with product advantages, lead to advantages in the market.

Pricing Advantages/Methods

Pricing advantages are methods that can lead to a better price. Different pricing methods, such as cost-oriented, competitor-oriented, marketing-oriented, and value pricing can have different implications for the market.

4Cs and repositioning

To succeed in repositioning, a company needs to ensure that clarity, consistency, credibility, and competitiveness are present in their marketing strategy.

Country-of-Origin Effects

Consumers' perceptions of a product are affected by the country of origin.
The product's origin can positively or negatively affect consumer demand.

Product and Brand Differences

A product is anything that satisfies consumer needs.
A brand is a distinctive identity created through names, designs, etc. that contribute to the product's overall identity.

Principles for Creating a Brand

Brand assets are essential to a brand's identity and contribute to customer loyalty, awareness, trust, and a positive perception.

Brand Extensions

New product categories must have a logical connection to the original product category to be successful.
Brand associations, product usages, and the danger of cannibalization all need to be factored into the strategy.

Boston Consulting Group Matrix

The matrix classifies products as Stars, Cash cows, Problem Children, and Dogs based on market share and market growth rate.
It is used to analyze and guide business decisions in different product categories.

Elasticity of Demand

Elasticity describes how a change in one factor (price, income, etc.) affects demand for a good or service.
This understanding helps businesses and policymakers in making strategic decisions.

Pricing Methods and Their Use Cases

Different pricing strategies, like penetration pricing, market skimming, or value pricing are detailed to help companies choose the best option. Understanding whether demand for your product is inelastic or elastic is important.

High & Low Price Market Segments

High-priced market segments value the product and have the financial ability to purchase it.
Low-priced market segments, however, often seek value and reasonable pricing.

Areas of Marketing Communication

Functional areas like personal communication, public relations, advertising, and other methods exist to reach a market. Each has different objectives.
The choice of area depends on the specific company, its products or services available, and what the company wants to achieve.

Marketing Media of Communication

Different media like television, radio, newspapers, outdoors, and online channels are all available for brands and companies to reach their intended market.

Communication Process and Noise

The communication process involves various steps, starting with the source, encoding the message, transmission, decoding the message, and ending at the receiver. Noise is any irrelevant information that can interfere with successful communication.

Ways to Enhance Consumer Attention

Brand relevance, engagement, emotional connection, and innovation are all crucial factors that help cut through the market noise to ensure the target audience is reached.

Decision-Making Units/Process

Key participants (initiators, influencers, deciders, buyers, users) in buying decisions are identified, as well as the process of high vs. low involvement decisions.

High vs. Low Involvement Purchases

High-involvement purchases are characterized by careful consideration. This is most often related to higher cost items. Low-involvement purchases are more spontaneous.
Differences exist in the buyer process and marketing strategies based on this involvement.

Perceived Risk in Purchasing

Perceived risk represents consumer uncertainty regarding purchasing decisions. The more uncertainty, the greater the perceived risk.

Marketing Implications of the Five Senses

Leveraging marketing through sight, sound, touch, taste, and smell can create experiences for consumers through sensory inputs.

Guerrilla Marketing

Guerrilla marketing relies on novel and affordable approaches to achieve immediate marketing results.

Event Marketing

Event marketing is designed to attract target audiences and involve them in experiences

Sponsorship

Sponsorship, which requires financial support of an organization or person, is used for brand development and publicity.

Marketing Mix for International Markets

When selling in a foreign market, marketing strategies can standardize or customize elements of the marketing mix for different markets.

Social/Critical Marketing

This form of marketing acknowledges the potential negative effects and focuses on benefiting all stakeholders in a more balanced, socially responsible method

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Description

Explore the differences between production and marketing orientation in business. This quiz evaluates your understanding of customer value generation and the marketing mix. Test your knowledge on how these concepts shape a company's strategy.