Podcast
Questions and Answers
What is a potential drawback of introducing too many similar products?
What is a potential drawback of introducing too many similar products?
Adding lower-end products through downward stretching can only lead to increased sales.
Adding lower-end products through downward stretching can only lead to increased sales.
False
What does the term 'product mix' refer to?
What does the term 'product mix' refer to?
The complete set of product lines and individual items that a seller offers for sale.
A company that introduces both lower-end and higher-end products is engaging in __________ stretching.
A company that introduces both lower-end and higher-end products is engaging in __________ stretching.
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Match the types of pricing with their definitions:
Match the types of pricing with their definitions:
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Which of the following can be a benefit of store brands for retailers?
Which of the following can be a benefit of store brands for retailers?
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Co-branding can create new market opportunities but does not involve any complexities.
Co-branding can create new market opportunities but does not involve any complexities.
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What is the definition of a licensed brand?
What is the definition of a licensed brand?
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A brand extension that introduces new forms or flavors of existing products is known as a __________.
A brand extension that introduces new forms or flavors of existing products is known as a __________.
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Match the pricing strategy to its description:
Match the pricing strategy to its description:
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What is a potential drawback of co-branding?
What is a potential drawback of co-branding?
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Store brands typically yield lower profit margins compared to national brands.
Store brands typically yield lower profit margins compared to national brands.
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Give one example of a line extension for the iPhone product line.
Give one example of a line extension for the iPhone product line.
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What is a primary reason for implementing a new brand?
What is a primary reason for implementing a new brand?
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Offering too many new brands can strengthen a company's market presence.
Offering too many new brands can strengthen a company's market presence.
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What is a potential risk of creating multiple brands within the same product category?
What is a potential risk of creating multiple brands within the same product category?
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Companies may launch a new brand if their existing brand name is ___.
Companies may launch a new brand if their existing brand name is ___.
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What can be a consequence of spreading resources over many brands?
What can be a consequence of spreading resources over many brands?
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A manifest branding strategy is solely based on intentional branding efforts.
A manifest branding strategy is solely based on intentional branding efforts.
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Name one reason a company might enter a new product category with a new brand.
Name one reason a company might enter a new product category with a new brand.
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What is a potential reason for implementing brand extensions?
What is a potential reason for implementing brand extensions?
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The perception of a brand can manifest from a company's ___.
The perception of a brand can manifest from a company's ___.
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What does psychological pricing aim to influence?
What does psychological pricing aim to influence?
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Brand extensions always enhance the brand reputation of a parent brand.
Brand extensions always enhance the brand reputation of a parent brand.
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Provide an example of a company that has successfully implemented brand extension.
Provide an example of a company that has successfully implemented brand extension.
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The practice of a company creating multiple brands within the same product category is known as ______.
The practice of a company creating multiple brands within the same product category is known as ______.
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Match the following pricing strategies with their descriptions:
Match the following pricing strategies with their descriptions:
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Which of the following is a possible risk associated with brand extensions?
Which of the following is a possible risk associated with brand extensions?
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A brand extension can sometimes fail and negatively affect consumer attitudes toward the parent brand.
A brand extension can sometimes fail and negatively affect consumer attitudes toward the parent brand.
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Name one advantage of using brand extensions compared to creating new brands.
Name one advantage of using brand extensions compared to creating new brands.
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Companies like Procter & Gamble utilize ______ to market different brands for the same product category.
Companies like Procter & Gamble utilize ______ to market different brands for the same product category.
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Which of the following best describes the main purpose of a brand extension?
Which of the following best describes the main purpose of a brand extension?
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What do product qualities ensure about a product?
What do product qualities ensure about a product?
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Branding provides a platform for sellers to tell stories and claim legal protection.
Branding provides a platform for sellers to tell stories and claim legal protection.
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What is the primary purpose of a logo?
What is the primary purpose of a logo?
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The process of adding more items within the existing range of products is called ______.
The process of adding more items within the existing range of products is called ______.
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Which of the following is NOT a key aspect of product features?
Which of the following is NOT a key aspect of product features?
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Innovative packaging does not play a role in attracting customers.
Innovative packaging does not play a role in attracting customers.
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What does product support services contribute to?
What does product support services contribute to?
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Branding encompasses the overall strategy and process of creating a unique ______ for a product.
Branding encompasses the overall strategy and process of creating a unique ______ for a product.
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Which of the following is emphasized in product support services?
Which of the following is emphasized in product support services?
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Study Notes
Marketing
- Definition: Process of creating value for customers and building strong relationships to capture value in return.
- Activities involve creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.
- Organizations that do not need a marketing strategy: monopolies and commodity firms, but specifically some not-for-profit firms, and firms in industries associated with negative externalities like tobacco, alcohol, gambling, or weapons manufacturing
- Organizations that typically benefit from marketing efforts: healthcare, because it affects Public Health and Safety considerations, ethical implications [misinformation and emotional exploitation], and regulatory considerations and legal liability
- Profits are calculated as: π = (p − v) × q where π = Profits, p = Price Per Unit, v = Variable Cost Per Unit, q = Quantity sold in units, and f = Fixed Costs of production (eg. advertising)
Creating and Capturing Customer Value
- Needs: States of deprivation (basic physical needs, social needs for belonging/affection or self-expression)
- Wants: Shaped by culture and individual personality; desires for objects to satisfy needs
- Demands: Wants backed by buying power; desires for products/services with greatest value
- Customer Value and Satisfaction: Expectations about value & satisfaction lead to buying decisions
- Market Offerings: combinations of products, services, information, or experiences offered to a market to satisfy a need or a want.
Sustainable Marketing Practices
- Increasing trend companies spending more on sustainability or climate issues
- Companies use marketing elements to address climate issues (i.e. changing products or services, partners, marketing promotions, distribution, and market selection).
- Calls for socially and environmentally responsible actions.
Relationship Building
- Create customer loyalty and retention to capture customer lifetime value
- Grow share of customer (getting a larger portion of customer's purchasing)
- Build customer equity (total combined lifetime values of all customers)
Customer Value-Driven Marketing Strategy
- Ask yourself: What customers will we serve (target market)?
- How can we best serve them (value proposition)?
- Differentiation and Positioning
- Brand's value proposition: set of benefits or values promised to satisfy needs
- Value proposition: Solving the "Why should I buy from you than other competitors?"
Selling Vs. Marketing Concepts
- Selling concept: focuses on creating sales volume through promoting existing products
- Marketing concept: focuses on satisfying customer needs & wants via integrated marketing
The Social Marketing Concept
- This concept is based on long-term welfare rather than just short-term wants for customers.
Role of Marketing in Strategic Planing
- Developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
- Defining company's mission
- Setting company objectives and goals
- Designing the business portfolio
- Planning marketing and other functional strategies
- Product Orientation emphasizes "What's in it for you", and customers' needs- Market Orientation emphasizes "What do we want in return?"
Customer Value-Driven Marketing Strategy and the Marketing Mix
- Product: Variety, Quality, Design, Features, Brand Name, Packaging, Services
- Price: List price, Discounts, Allowances, Payment Period
- Place: Channels, Coverage, Locations
- Promotion: Advertising, Personal Selling, Sales Promotion, Public Relations, Direct and Digital
The Marketing Mix and Marketing Strategy
- Effective marketing: creates customer value and profitable customer relationships
- Marketing Strategy: the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.
- Key questions: what customers will we serve (target market)? How we can best serve them (value proposition)?
- Difference between Product vs. Market Orientation:
- Product: emphasizes customer wants not customer needs. Market: emphasizes making products meet customer needs
- Strategies:
- Production Concept: consumers want available and affordable products
- Product Concept: products have high quality, performance, and innovative features
Ethics in Marketing
- Do no harm: consciously avoiding harmful actions or omissions
- Foster trust: fair dealing, ethical communication & proper product/service delivery
- Embrace ethical values: honesty, responsibility, fairness, respect, transparency, and citizenship
Sustainable Marketing Practices
- Increased spending on sustainability/climate-related issues
- Companies apply strategies to address issues relating to climate (changing products/services, etc)
- Actions that benefit present consumer needs while still positively impacting future generations.
Marketing Strategy and the Market Analysis
- Microenvironment: actors close to the company impacting service delivery (company, suppliers, marketing intermediaries, competitors, publics)
- Macroenvironment: larger social forces affecting the microenvironment (demographic, economic, natural, technological, political, cultural forces)
Company and Marketing Strategy
- Role of marketing in strategy planning: aligning the company's goals, capabilities with changing marketing opportunities.
- Key elements: Defining the company's mission, setting company objectives and goals, designing the business portfolio, planning marketing and other functional strategies.
Consumer Analysis and Buying Behavior
- Consumer Markets: buyers for personal use, often with elastic & variable demand
- Business Markets: organizations buying for use in production, often with inelastic & derived demand
- Buyer behaviors are driven by: Cultural factors, Social factors, Personal factors, Psychological factors
- Buying Process stages: Need recognition; Information search, evaluation of alternatives, purchase decisions, and post-purchase behavior
- Types of decisions: Routine, Extensive, Limited, or Complex
Market Research
- Big data: massive, complex datasets
- Customer insights: fresh, deep understanding of customers' needs and wants
- Difficulties accessing, maintaining, interpreting, and analyzing big data (lack of skills, resources)
- Importance of customer insights (understanding, improving offerings, & effective campaigns)
- Importance of customer insight teams: holistic view, analyzing data from multiple sources, and customer satisfaction and loyalty
- Methodologies: Exploratory, descriptive, and causal.
The Marketing Mix
- Product: a good, service or idea offered to the market for exchange
- Price: the amount of money charged for the product or service
- Place: the activities to make the product or service accessible to the target customer
- Promotion: the process to communicate the value proposition to the target customer
- Understanding product and service life cycles
- Applying concepts relating to product, brand, and customer segments
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Description
Test your knowledge on marketing concepts such as product mix, co-branding, and pricing strategies. This quiz evaluates your understanding of brand extensions, store brands, and the implications of introducing various product types. Challenge yourself with questions related to everyday marketing practices and theories.
