Marketing Principles Quiz

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Questions and Answers

Which of the following is NOT a factor that determines price?

  • Consumer age (correct)
  • Product quality
  • Costs
  • Demand factors

Promotional push strategies focus on creating consumer demand directly.

False (B)

What type of marketing channel directly deals with customers?

Direct channels

Promotional ______ strategies involve spending on advertising to create demand among consumers.

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

Match the following terms with their definitions:

<p>Direct channels = Deal directly with customers Indirect channels = Network of wholesalers and retailers Push strategy = Persuade trade to promote products Pull strategy = Create demand among consumers</p> Signup and view all the answers

What is a competitive advantage?

<p>Attributes that give a firm an edge over competitors (D)</p> Signup and view all the answers

Market segmentation involves dividing a market into distinct groups with common needs.

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

What factors contribute to competitive advantage?

<p>Better quality products, superior customer service, low production costs, and dominating channels of distribution.</p> Signup and view all the answers

The process of selecting a target market involves ______ and positioning.

<p>evaluating market opportunities</p> Signup and view all the answers

Match the types of market segmentation with their descriptions:

<p>Geographic = Dividing the market based on region or city size Demographic = Dividing the market based on age and family size</p> Signup and view all the answers

Which of the following is NOT a benefit of conducting a competitive analysis?

<p>Increasing production costs (C)</p> Signup and view all the answers

Target market selection has no impact on a firm’s advertising efforts.

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

What is the first step in the target marketing process?

<p>Identifying markets with unfulfilled needs</p> Signup and view all the answers

What is one key role of an integrated marketing program?

<p>Guiding allocation of resources (B)</p> Signup and view all the answers

Market segmentation only involves identifying distinct consumer groups without considering their common needs.

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

What are market opportunities?

<p>Areas where there are favorable demand trends and unmet customer needs.</p> Signup and view all the answers

A __________ marketing plan evolves from an organization’s overall corporate strategy.

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

Match the marketing terms with their correct descriptions:

<p>Target Marketing = Focusing marketing efforts on specific consumer segments Positioning = Creating a distinct image of a product in the consumer's mind Market Segmentation = Dividing a market into distinct groups of buyers Opportunity Analysis = Identifying areas of market growth potential</p> Signup and view all the answers

Which of the following is NOT a step in identifying market opportunities?

<p>Forecast sales for the next year (A)</p> Signup and view all the answers

The main goal of repositioning strategies is to eliminate competition.

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

What is the significance of understanding market segments in an IMC program?

<p>It helps tailor marketing strategies to meet the specific needs of different consumer groups.</p> Signup and view all the answers

Which market segmentation strategy groups consumers based on their personality and lifestyle?

<p>Psychographic segmentation (C)</p> Signup and view all the answers

The 80-20 rule indicates that 80 percent of buyers account for 20 percent of sales volume.

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

Name one factor that can divide markets by buying situations.

<p>Outlet type, benefits sought, usage, awareness, intentions, or behavior.</p> Signup and view all the answers

In _____ marketing, the strategy involves marketing in several segments with separate approaches for each.

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

What is the primary benefit of concentrated marketing?

<p>Focusing resources on a single market segment (B)</p> Signup and view all the answers

Benefit segmentation groups consumers based on the product attributes they seek.

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

What factors should be considered when selecting the most attractive market segment?

<p>Sales potential, opportunities for growth, competition analysis, ability to compete, ability to market.</p> Signup and view all the answers

What is positioning primarily concerned with?

<p>Fitting a product or service to one or more segments of the market (D)</p> Signup and view all the answers

Positioning by product attributes focuses solely on price.

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

What is an example of a brand that focuses on consumer benefits for its positioning strategy?

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

Positioning by _____ associates a brand with a type of person or group that uses a product or service.

<p>product user</p> Signup and view all the answers

Which positioning strategy is focused on competing with other brands?

<p>Positioning by competitor (D)</p> Signup and view all the answers

Match the following positioning strategies with their descriptions:

<p>Positioning by price/quality = Using price as a characteristic of the brand Positioning by product class = Positioning against a product in another category Positioning by use/application = Associating the brand with a specific use Positioning by cultural symbols = Making the brand easily identifiable</p> Signup and view all the answers

Using positioning by cultural symbols can help in differentiating a brand.

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

In positioning by product attributes, what are salient attributes?

<p>Important characteristics that influence consumer purchase decisions.</p> Signup and view all the answers

What is the primary purpose of competitor positioning?

<p>To differentiate a brand from another brand (C)</p> Signup and view all the answers

Repositioning is easy to accomplish because consumers are always open to change.

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

What does product symbolism refer to?

<p>What a product or brand means to consumers</p> Signup and view all the answers

Brand identity is a combination of name, logo, symbols, design, packaging, image, and __________ held by consumers.

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

Match the following branding concepts with their descriptions:

<p>Brand Awareness = Familiarity and recognition of a brand Brand Equity = Intangible asset of added value Brand Attitude = Consumers' feelings about a brand Brand Loyalty = Commitment to repurchase a brand</p> Signup and view all the answers

What is a key factor that has changed the role of packaging in recent years?

<p>Self-service emphases at stores (C)</p> Signup and view all the answers

Cultural symbols are used in branding to help differentiate products.

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

What functional benefits has packaging traditionally provided?

<p>Economy, protection, and storage</p> Signup and view all the answers

Flashcards

Strategic Marketing Plan

A comprehensive plan that guides an organization's resource allocation, defines specific marketing programs and policies, and aligns with the company's overall strategy.

Market Segments

Distinct groups of consumers within a market who share common needs and preferences.

Market Opportunities

Areas in the market where there's high demand, unsatisfied customer needs, and a good chance for a company to succeed.

Identifying Market Opportunities

The process of identifying market opportunities involves examining the market landscape, observing trends and competition, and pinpointing specific market segments where the company can thrive.

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Competitive Analysis

Analyzing competitors to find a competitive edge, which is an advantage over rivals.

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Competitive Advantage

Attributes that make a company stand out from its competitors.

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Target Market Selection

Creating a strategy for reaching a specific group of customers who share similar needs and wants.

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Market Segmentation

Dividing a market into smaller groups with similar needs and preferences.

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Geographic Segmentation

Dividing a market based on where people live, such as city size or region.

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Demographic Segmentation

Dividing a market based on characteristics like age, gender, income, or family size.

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The Target Marketing Process

The process of identifying market needs, segmenting groups, and selecting a specific target market to focus on.

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Socioeconomic Segmentation

Dividing the market based on factors like income, education level, and profession. Think of it as categorizing people based on their financial and career standing.

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Psychographic Segmentation

Categorizing the market based on personality traits, lifestyles, and life stages. For example, a segment focused on young, adventurous travelers or a segment focused on family-oriented consumers.

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Behavioristic Segmentation

Classifying customers based on how they use a product or service. Think about how people shop, how often they make purchases, and what their motivations are.

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Benefit Segmentation

Focusing on specific benefits that consumers seek from a product. For example, a segment looking for environmentally-friendly products or a segment looking for premium features.

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Undifferentiated Marketing

A marketing strategy where a company ignores segment differences and offers a single product or service to the entire market.

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Differentiated Marketing

A marketing strategy where a company targets multiple market segments with distinct marketing strategies tailored to each segment's unique needs.

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Concentrated Marketing

A marketing strategy where a company selects a specific segment and strives to capture a large share of its market. Think of focusing all efforts on one specific group.

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Selecting the Most Attractive Segment

Assessing the attractiveness of a market segment by considering its sales potential, opportunity for growth, competitive landscape, company's competitive advantage, and ability to effectively market to the segment.

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Market Positioning

Identifying a unique position for your product or service in the market, making it stand out from the competition.

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Positioning by Attributes and Benefits

A strategy that focuses on positioning a product based on its unique features or benefits that are important to consumers.

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Positioning by Price/Quality

A strategy where the price of a product becomes a defining characteristic, signaling its quality or value.

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Positioning by Use or Application

Positioning a product based on specific uses or applications, expanding its potential market.

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Positioning by Product Class

Positioning a product against a product in a different category, rather than against a direct competitor.

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Positioning by Product User

Associating a brand with a particular type of person or group that uses the product or service.

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Positioning by Cultural Symbols

Positioning a product based on its connection to cultural symbols or associations, making it easily recognizable and distinctive.

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Positioning by Competitor

A strategy that positions a product directly against a competitor, highlighting their strengths and weaknesses.

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Price variable

The value customers pay for a product or service.

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Factors determining price

Different factors affecting the cost of a product.

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Marketing channels

A network of organizations involved in making a product or service available to consumers.

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Promotional push strategies

Strategies focusing on persuading retailers and wholesalers to stock and promote a manufacturer's products.

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Promotional pull strategies

Strategies aiming to directly create demand among consumers, encouraging them to request products from retailers.

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Competitor Strategy

Positioning a brand against a competitor. Often uses another form of positioning to set the brand apart.

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Cultural Symbol Strategy

Using a cultural symbol to differentiate a product. Examples include Keebler elves or Tony the Tiger.

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Repositioning

Changing a product's or brand's positioning in response to declining sales, new opportunities, or changing consumer perceptions.

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Product Symbolism

What a product or brand signifies to consumers and the experience they have when buying and using it.

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Branding

Building and maintaining a positive identity for a company and its products.

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Packaging

Provides functional benefits such as protection and storage. Has become increasingly important in a self-service retail environment.

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Branding Goals

Developing brand awareness, enhancing consumer attitudes toward the product or company, and building relationships between the consumer and the brand.

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Brand Identity

A combination of the brand's name, logo, symbols, design, packaging, image, and associations held by consumers. It is the unique identity of a brand.

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Study Notes

Chapter 2: The Role of IMC in the Marketing Process

  • Learning objectives include describing the role of advertising and promotion in integrated marketing programs, defining target marketing, discussing market segmentation in IMC programs, describing positioning and repositioning strategies, and identifying marketing-mix decisions influencing advertising and promotional strategy.

Marketing and Promotions Process Model

  • The model outlines a process from marketing strategy and analysis to target marketing process to marketing planning, program development, and finally, to reaching the target market and purchase.
  • Various aspects like opportunity analysis, competitive analysis, target marketing, market segmentation, pricing, product decisions, channel of distribution decisions, positioning, and promotional decisions, are included.
  • Ultimate consumers and businesses are targeted, as well as wholesalers and retailers.

Marketing Strategy and Analysis

  • A strategic marketing plan guides resource allocation, specific marketing programs, and policies.
  • This plan is derived from the overall corporate strategy.
  • It helps understand market opportunities, competition, and segments.
  • Market segments are distinct consumer groups with shared needs within a larger market.

Opportunity Analysis

  • Market opportunities are areas where favorable demand trends exist, and customers' needs are not met.
  • Firms identify these opportunities by examining the marketplace and observing trends and competition in different segments.

Competitive Analysis

  • Understanding the competition in the marketplace is key to identifying competitive advantages.
  • Competitive advantages can include high-quality products, excellent customer service, lower costs and prices, dominating distribution channels, strong advertising (e.g., Samsung vs. Apple).

Target Market Selection

  • Target market selection follows market opportunity and competitive analysis.
  • It directly impacts advertising and promotional efforts.
  • The process involves determining which segment(s) to target and the best strategy for that target market.

The Target Marketing Process

  • The target marketing process proceeds from identifying markets with unfulfilled needs to determining market segmentation to selecting a target market and finally to positioning through marketing strategies.

Identifying Markets

  • Marketers identify specific needs within a group or segment.
  • They then select one or more of these segments to target, focusing on consumers with similar lifestyles, needs, and other relevant characteristics.

Market Segmentation

  • Markets are broken down into distinct groups based on shared needs and similar responses to marketing situations.
  • Customer characteristics are used to segment the market, such as geographic, demographic, socioeconomic, and psychographic factors (e.g., region, age, income, lifestyle).

Buying Situations

  • Markets can be segmented based on customer buying situations, including outlet type, benefits sought, usage, awareness, and behavioural characteristics.

Basis for Market Segmentation

  • Behavioral segmentation includes dividing consumers based on usage, loyalty, or their buying responses to a product; the 80-20 rule highlights a significant portion of sales volume accounted for by a small portion of buyers.
  • Benefit segmentation targets consumers based on product attributes and features they seek.

Selecting Target Market

  • Businesses decide how many segments to enter, using market coverage alternatives, to focus on segments offering the most potential and select the most attractive segment.

Market Coverage Alternatives

  • Undifferentiated marketing targets the entire market without segmenting.
  • Differentiated marketing involves individual strategies across different segments.
  • Concentrated marketing focuses on one segment to achieve high market share.

Selecting the Most Attractive Segment

  • Factors for evaluating market segment attractiveness include sales potential, growth opportunities, competition, ability to compete, and ability to market to the targeted group.

Market Positioning

  • Positioning involves fitting a product or service into a specific segment within a broad market, making it distinctive.
  • Approaches involve focusing on consumer benefits or comparing a product's benefits to competitors'.

Positioning Strategies

  • Positioning strategies rely on product attributes and benefits (differentiating the product from the competition), price and quality (perceived value), and use or application, the product class, the product user, the competitor, and cultural symbols.

Repositioning

  • Repositioning alters a product or brand's position in the market due to declining or stagnant sales or anticipated opportunities.
  • It's challenging due to existing perceptions and attitudes towards the product or brand.

Product Decisions

  • Product symbolism refers to what a product or brand represents for consumers, including their purchasing and use experiences.
  • Branding builds and maintains a favorable identity for a company and its products.
  • Packaging offers functional benefits like economy, protection, and storage.

Branding

  • Branding builds brand awareness, interest, and favorable attitudes towards the company's products.
  • Brand identity includes factors like name, logo, design, packaging and associations held by consumers.
  • Brand equity is an intangible asset that adds value.

Packaging

  • Packaging traditionally has a functional role in economy, protection, and storage.
  • Its role has expanded due to self-service in stores, and its impact on buying decisions at the point of purchase.

Price Decisions

  • Price is the consumer's exchange for a product or service.
  • Cost, demand, competition, perceived value, product quality, and advertising are key factors in determining price.

Marketing Channels

  • Marketing channels involve interdependent organizations making a product or service accessible for use.
  • Direct channels deal directly with customers (e.g., Internet marketing, direct-response ads).
  • Indirect channels use wholesalers and retailers.

Promotional Push Strategies

  • Push strategies persuade trade to stock and promote products.
  • The goal is to push the product through channels of distribution.
  • Trade advertising motivates wholesalers and retailers to purchase for resale.

Promotional Pull Strategies

  • Pull strategies focus on advertising and sales promotions directed towards ultimate consumers to encourage demand and direct consumers to request the product from retailers.

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