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Questions and Answers
What is the first step in the customer purchase decision process?
Which factor describes how personal traits influence shopping behavior?
What is categorized as a psychological influence on consumer behavior?
Which stage involves comparing different options before making a choice?
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What type of problem solving involves little thought during the purchase?
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What stage comes after a consumer has made a purchase?
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Which of the following influences consumer behavior can be described as familial roles in decision-making?
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Which of the following is a key component of marketing research?
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What is a key element of a positioning statement?
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Which form of market segmentation focuses on tailored products for specific groups?
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What characteristic is associated with brand loyalty?
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What does repositioning a brand primarily involve?
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Which of the following is an example of individual marketing?
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Which of these is NOT a form of market segmentation?
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What type of product is defined as non-durable goods?
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Which brand type is typically owned by retail companies?
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What is the primary disadvantage of using secondary data in market research?
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What is the primary focus during the introduction stage of the Product Life Cycle?
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Which step in the market research process involves determining data collection methods?
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Which of the following best defines a support product in the context of business products?
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Which of the following is an example of predictive analytics?
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What are convenience products characterized by?
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What is the primary purpose of taking marketing actions in the research process?
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Which element of the total product concept represents the tangible attributes of a product?
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What is a common strategy to extend the product life cycle?
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Which of the following sales forecasting techniques relies on past sales data?
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Which of the following is not a type of consumer product classification?
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What does market segmentation primarily focus on?
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What is the main purpose of trademarks?
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Which stage of market research directly follows the collection of relevant information?
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Which metric should marketing metrics be easily understood?
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During which stage of the Product Life Cycle do products generally achieve their highest profits?
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What aspect is addressed in the repositioning of a product?
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Which of the following is an example of a radical innovation?
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What is the first step in the New Product Development Process?
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What is a common reason for new product failure?
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What does the value equation indicate?
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In a demand-oriented pricing approach, which strategy involves starting with a high price and then reducing it?
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What does 'barter' refer to?
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Which of the following best describes the effect of price on perceived quality?
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Study Notes
Marketing Research
- Marketing research defines marketing problems and opportunities.
- It systematically collects and analyzes information.
- The goal is to recommend actions to reduce risk and improve marketing decisions.
- Challenges include predicting consumer behavior for new products, obtaining truthful responses from consumers, and ensuring accurate recall of interests and purchases.
Five-Step Market Research Approach
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Define the Problem/Issue/Opportunity:
- Set specific, measurable, and achievable research objectives.
- Identify possible marketing actions and measures of success.
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Develop the Research Plan:
- Identify constraints and data needed.
- Determine data collection methods.
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Collect Relevant Information:
- Secondary Data: Already recorded data (internal and external).
- Primary Data: Newly collected data (observational, asking people).
- Advantages of secondary data include time-saving, low cost, and detailed information.
- Disadvantages of secondary data include outdated information and potential mismatch with the project's needs.
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Analyze the Data:
- Use methods and technologies to analyze big data.
- Focus on transforming data into useful information.
- Data Mining: Finding correlations and patterns.
- Predictive Modeling: Statistical models predicting outcomes.
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Take Marketing Actions:
- Make recommendations based on findings.
- Suggest actions and evaluate results for businesses to improve their marketing strategies.
Key Concepts in Analytics
- Descriptive Analytics: What has happened (e.g., web visits, social media interactions).
- Predictive Analytics: What might happen based on data mining.
Sales Forecasting Techniques
- Judgments of Decision Maker: Decisions made in a company using their knowledge and experiences to estimate future sales.
- Surveys of Knowledgeable Groups: Surveys are conducted with people who know a lot about the market, such as customers or experts, to gather their opinion on future sales.
- Statistical Methods: Uses past sales data to identify patterns or trends, then applying it to predict future sales.
Market Segmentation
- Identify Consumer Needs: Understand common characteristics and needs within the market.
- Group Customers with Similar Trades: Group customers who share similar characteristics or needs.
- Estimate Segment Size: Assess the size of each identified segment.
- Target Segments: Select which segments to focus on for marketing efforts.
- Marketing Actions: Develop and implement marketing programs to reach selected segments.
- Monitor Success: Evaluate the effectiveness of marketing programs against set objectives.
Market Segmentation Importance
- Consumer Diversity: Different needs mean a single product cannot satisfy everyone.
- Resource Efficiency: Companies must allocate resources effectively to target likely buyers.
- Consumer Insights: Understanding target markets is crucial for effective marketing.
- Product Positioning: Creating a specific image of the product in the minds of the targeted group.
Key Elements of Positioning Statements
- Target market and need: Who is the targeted audience and what are their needs?
- Branded product name: The specific name of the brand.
- Product category: What category does the product belong to?
- Unique attributes and benefits: What makes this product different and what are the benefits for the customer?
Positioning Maps
- Identify important product attributes: Determine the key characteristics that customers consider important.
- Assess how target customers rate competing products: Get an understanding of how customers perceive competing products.
- Determine the position of the company’s product relative to competitors: See where the company's product stands in comparison to its competitors.
Forms of Market Segmentation
- Mass Marketing: Broad appeal with no differentiation.
- Segment Marketing: Targeting specific segments with tailored products.
- Niche Marketing: Focusing on a specific product over small groups.
- Individualized Marketing: Customizing offers to individual needs.
Dividing the Markets
- Geographic Segmentation: Location of the target market.
- Demographic Segmentation: Characteristics Information (age, gender, income).
- Psychographic Segmentation: Attitudes, values, and lifestyles.
- Behavioristic Segmentation: Interaction and usage patterns with the product.
Segmentation Analytics
- Uses data to group people based on their lifestyle and shopping behavior, helping companies target specific groups more accurately.
Brand Concepts
- Brand Loyalty: When customers keep buying the same brand's products because they trust and like it, even when there are other options available.
- Brand Personality: The human traits or characteristics associated with a brand, which help to create an emotional connection with customers (e.g., a brand being seen as fun, reliable, etc.)
Brand Name Criteria
- Suggest product benefits: The brand name should communicate the benefits of the product.
- Memorable, distinctive, and positive: The brand name should be easy to remember, stand out, and have a positive connotation.
- Fits company/product image: The brand name should align with the company's identity and the product's characteristics.
- Legally protectable and simple: The brand name should be protected legally and easy to understand.
Types of Brands
- Manufacturer Brands: Owned by manufacturers.
- Private-label Brands: Owned by retailers.
- Generic Brands: Unbranded products.
Product Types
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Goods: Tangible items.
- Non-durable Goods: Consumed once (e.g., food).
- Durable Goods: Lasts for an extended period (e.g., appliances).
- Services: Intangible activities or benefits.
- Hybrid Products: Combination of goods and services.
Total Product Concept
- Core Product: Primary benefit.
- Actual Product: Features, design, branding.
- Augmented Product: Additional services or benefits.
Product Lines and Mixes
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Product Line: Group of similar products targeting the same market.
- Depth: Number of variations within a product line.
- Length: Total number of products in the line.
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Product Mix: All product lines marketed by a company.
- Width: Number of different product lines.
Consumer Product Classifications
- Convenience Products: Frequently purchased, inexpensive.
- Shopping Products: Less frequently purchased, requires comparison.
- Specialty Products: High price, strong brand identity, exclusive distribution.
- Unsought Products: Not actively thought about by consumers, requires significant marketing.
Business Products
- Business products are items companies buy to help them operate or make other products.
- Production Products: Raw materials or parts that become part of the final product, like wood for furniture.
- Support Products: Things that help with production but don't become part of the product, like machines or office supplies.
Branding Elements
- Brand: Name, phrase, symbol, or design that distinguishes a product.
- Brand Equity: Value derived from consumer loyalty and brand associations.
Protecting Brands
- Patents: Protect inventions.
- Copyrights: Protect original works of authorship.
- Trademarks: Protect brand names and logos.
Product Life Cycle (PLC)
- Describes the stages a new product goes through from launch to decline.
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Stages:
- Introduction: Few competitors, focus on awareness, minimal profits.
- Growth: More competitors enter, product differentiation, increased profits.
- Maturity: Many competitors, brand loyalty, maximized profits.
- Decline: Reduced competition, focus on best sellers, decreasing profits.
Length of the Product Life Cycle
- Varies by industry, competition, and marketing strategies.
- Consumer products generally have shorter life cycles.
- Technological changes can shorten life cycles.
- Effective marketing can extend life cycles.
Strategies to Extend Product Life Cycles
- Modifying the Product: Product improvements and line extensions.
- Modifying the Market: Finding new customers, increasing product use, creating new situations for use.
- Repositioning the Product: Adapting to changing consumer needs or competition.
- Introducing New Products: Meeting changing consumer needs or improving value.
Types of New Products
- Minor Innovations: No new learning required (e.g., improved toothpaste).
- Continuous Innovations: Changes routine but requires minimal new learning.
- Radical Innovations: Requires new learning and consumption patterns (e.g., self-driving cars).
New Product Development Process
- New Product Development Strategy: Identify focus that meets company objectives.
- Idea Generation: Gathering ideas from sources outside the company, such as customers, competitors, and industry experts.
- Idea Screening: Retain good ideas; evaluate against company criteria (R-W-W concept).
- Business Analysis: Review sales, costs, and profit projections.
- Development: Create product concept and conduct concept testing.
- Test Marketing: Introduce product in a realistic market for feedback.
Common Reasons for New Product Failure
- Poor execution of the marketing mix (4 Ps).
- Bad timing of product launch.
- Insufficient market attractiveness.
- Insignificant point of difference.
Price
- Money or considerations exchanged for ownership/use of a product.
- Barter: Exchange of goods/services without money.
- Price Equations: Item Price = List Price - Incentives + Extra Fees
Price as an Indicator of Value
- Value Pricing: Enhancing benefits while maintaining the price.
- Value Equation: Value = Perceived Benefits / Price
- Price signals quality; too low may indicate poor quality, too high may suggest low value.
Profit Equation
- Total Revenue - Total Cost
General Pricing Approaches
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Demand-Oriented: Focus on what customers are willing to pay.
- Skimming: Start high, then lower the price.
- Penetration: Start low to attract buyers, then raise the price.
- Prestige: High price for high status.
- Odd-Even: Price just under a round number (e.g., $9.99).
- Bundle: Sell multiple items together at one price.
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Cost-Oriented: Set prices based on how much it costs to make the product.
- Standard Markup: Add a percentage on top of the cost.
- Cost-Plus: Add a fixed amount to the cost.
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Profit-Oriented: Set prices to meet profit goals.
- Target Profit: Set a price to make a certain amount of profit.
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Description
This quiz explores the fundamentals of marketing research, including the definition of marketing problems and the systematic approach to collecting and analyzing information. Test your knowledge on the five-step market research process and the significance of data in decision-making. Dive into both secondary and primary data collection methods, and understand their advantages.
