Marketing Strategies and Promotion Mix

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Questions and Answers

What type of learning requires human intervention to train the machine?

Neural Networks

Fuzzy Logic

Deep Learning

Machine Learning (correct)

Which method begins with qualitative data to narrow down the research question?

Explanatory Method

Triangulation

Embedded Method

Exploratory Method (correct)

What is the typical starting salary for a career in market research with a PhD?

$99,000

$200,000 (correct)

$151,000

$214,000+

What characterizes deep learning as opposed to traditional machine learning?

Utilizes large, unstructured datasets Signup and view all the answers

Which of the following methods analyzes both qualitative and quantitative data simultaneously?

Triangulation Signup and view all the answers

What is the primary purpose of market research in marketing?

To add value to consumer needs Signup and view all the answers

Which of the following best describes a value proposition?

The combination of benefits received by buyers Signup and view all the answers

Which element is NOT part of the marketing mix (4Ps)?

People Signup and view all the answers

Which concept is associated with the practical use of a product?

Utilitarian Signup and view all the answers

What type of advertising involves paid content that resembles traditional media?

Native ads Signup and view all the answers

What does the term 'imbedded marketing' refer to?

Brand mentions embedded within media Signup and view all the answers

Which of the following is a disadvantage of out of home advertising?

Decreased audience attention span Signup and view all the answers

What is the main challenge faced by public relations efforts?

Controlling the message Signup and view all the answers

What is the primary aim of predatory pricing?

To create a monopoly by driving out competition Signup and view all the answers

Which utility is enhanced by the effort to provide customer service in marketing channels?

Information utility Signup and view all the answers

What distinguishes a wholesaler from a broker in a distribution channel?

Wholesalers take title and possession of the products. Signup and view all the answers

Which type of channel is represented by having a retailer sell directly to consumers?

Direct channel Signup and view all the answers

In the context of logistics, outbound logistics primarily focuses on:

Marketing channels Signup and view all the answers

Which of the following is NOT a benefit to the producer from marketing channels?

Consumer protection Signup and view all the answers

What type of retailer typically provides the highest level of service to consumers?

Full service retailers Signup and view all the answers

Which type of model represents an independent selling arm for a producer?

Agent model Signup and view all the answers

What is a key feature of deceptive pricing?

Offering a more expensive option only Signup and view all the answers

Which type of marketing channel typically consists of more intermediaries?

Consumer channels Signup and view all the answers

What is a defining characteristic of ethnography in research?

It requires the researcher to immerse themselves in the environment. Signup and view all the answers

Which method of collecting data involves explaining the relationship between variables?

Correlational methods Signup and view all the answers

Which of the following is considered a quantitative research method?

Surveys Signup and view all the answers

What is a crucial ethical consideration for researchers when conducting studies involving vulnerable populations?

Obtaining informed consent from participants. Signup and view all the answers

What was a unique contribution of Ernest Dicher to market research?

Introducing the idea of focus groups. Signup and view all the answers

What type of data does primary research primarily focus on?

Numerical data that is easier to measure. Signup and view all the answers

What is one of the challenges of observational research methods?

They may influence the behavior of the participants. Signup and view all the answers

Which of the following best describes the role of artificial intelligence in primary research?

It mimics human problem-solving and decision-making capabilities. Signup and view all the answers

Which phase of the product lifecycle typically involves slow sales growth and high marketing expenses?

Introduction Signup and view all the answers

What pricing strategy involves setting a high initial price before gradually lowering it?

Skimming Signup and view all the answers

What is the correct profit equation as described?

P = R - C Signup and view all the answers

Which of the following is an example of a demand-oriented pricing strategy?

Prestige pricing Signup and view all the answers

What happens during the maturity phase of the product lifecycle?

Sales begin to slow down significantly. Signup and view all the answers

Which pricing strategy involves offering lower prices initially to enter the market?

Penetration pricing Signup and view all the answers

What is a significant characteristic of trademark protection?

It covers products only in a specific market or region. Signup and view all the answers

Which of the following is NOT a price discount type?

Bundling discount Signup and view all the answers

What is the term for a marketing strategy that sets prices based on what consumers are willing to pay?

Market-oriented pricing Signup and view all the answers

Which equation describes the relationship between final price, list price, allowances, and extra fees?

F = L - A + E Signup and view all the answers

A marketing strategy that involves setting different prices for the same product based on external factors is known as?

Price discrimination Signup and view all the answers

During which product lifecycle phase might a company adjust its marketing strategy to maintain brand loyalty?

Maturity Signup and view all the answers

What is often true during the decline phase of a product lifecycle?

Production ceases for that product. Signup and view all the answers

What characterizes yield management as a pricing strategy?

Charging different prices based on consumer demand at various times. Signup and view all the answers

Study Notes

Marketing

Marketing is more than just advertising, it involves planning, managing, and manipulating the marketing mix to meet customer needs and wants.
Market research is essential to understand customer needs and add value to their experience.
Value proposition is the combination of benefits received by buyers, including: quality, price, convenience, delivery, and pre/post sales service.
Products, services, and ideas can all be marketed.
The marketing process involves discovering needs and satisfying them with the 4 Ps: product, price, place, and promotion.
Marketing strategy outlines the overall gameplan for turning potential customers into loyal buyers.
The marketing mix (4Ps) represents the key tools used to reach and engage customers.

Promotion

The promotion mix includes advertising, sales promotions, personal selling, public relations, events and experiences, and digital marketing.
Advertising is a paid form of non-interactive media purchased from third-party vendors, including: TV, radio, print media, product placement (embedded marketing), and native ads.
Native ads are paid content that resemble traditional media but are actually sponsored.
Out-of-home advertising is one example of a growing trend away from traditional advertising.
Advertising trends indicate that companies are still spending a lot of money on TV advertising, despite the growth of online media.
Personal selling focuses on building relationships and nurturing customer loyalty.
Public relations is a form of unpaid media exposure, where companies have limited control over what is said about them.

Product Lifecycle

The product lifecycle curve varies based on the product, category, and marketing strategy.
The product lifecycle consists of five phases:
- Product development: focus on building hype and establishing first or late mover advantage.
- Introduction: characterized by slow sales growth, high product development costs, and high marketing budgets for awareness.
- Growth: marked by rapid sales growth, the entry of competitors, product feature additions, price adjustments, and distribution changes.
- Maturity: the longest stage for most products, with slow sales growth, tightening costs, and marketing focused on maintaining brand loyalty.
- Decline: characterized by declining product sales and obsolescence.
Strategies to adjust product lifecycle include modifying the product, modifying the market, increasing product use, and repositioning the product.

Price

Price represents the money or other consideration exchanged for the ownership or use of a product, including both goods and services.
Price objectives can vary from survival to profit maximization, sales volume, market share growth, and social responsibility.
The price equation is: Final Price = List Price - Allowances + Extra Fees
The profit equation is: Profit = Total Revenue - Total Costs
Price signals value, which is perceived benefits divided by price.
Pricing strategies include:
- Demand oriented:
  - Skimming: Initially set a high price, then lower it over time to attract more customers.
  - Penetration: Lower price to quickly penetrate the market.
  - Prestige: Set a high price based on quality or status.
  - Lining: Offer a line of similar products with different price points.
  - Odd-even: Price items at $10.99 to make them feel cheaper.
  - Target pricing: Estimate a desired price and adjust costs accordingly.
  - Bundle: Sell several products together in a package for greater customer appeal.
  - Yield management: Charge different prices for a product based on time, availability, or other factors.
- Cost oriented:
  - Markup: Calculate a percentage markup on manufacturing costs.
  - Cost-Plus: Estimate costs and add a standard markup, often used for services like legal fees.
- Profit oriented:
  - Profit: Set a desired annual profit target.
  - Return on sales: Set prices to achieve a desired percentage of profit.
  - Return on investment: Set prices to reach a specific ROI target.
- Competition oriented:
  - Customary: Prices established by long-standing customer expectations.
  - Market: Set prices based on competitors' prices.
  - Loss Leader: Price one product below cost to attract customers for other sales.
Price discounts include volume, seasonal, trade, cash, allowances, and promotions.
Market constraints on pricing include demand, newness, costs, and competition.
Legal constraints on pricing include:
- Price fixing: Competitors colluding to set prices.
- Price discrimination: Charging different prices to different consumers for the same products.
- Predatory pricing: Lowering prices to drive out competition, then raising them.
- Deceptive pricing: Misleading consumers about price offers.
Google Trends is useful for understanding current search trends and exploring customer interest.
Machine learning algorithms can be trained to analyze and label large datasets.
Neural networks consist of layers that process data using "fuzzy logic."
Deep learning uses large, unstructured datasets that are too complex for human analysis.

Marketing Channels
A marketing channel is a set of intermediaries involved in making products available to consumers.
Benefits for producers include logistical efficiency, transactional ease, and facilitation of sales.
Benefits for consumers include time utility, place utility, form utility, information utility, and payment utility.
Logistics involve both inbound (sourcing raw materials) and outbound (marketing channels) processes.
Channel structure can be direct (producer to consumer) or indirect (using retailers, wholesalers, or agents).
Intermediaries include:
- Agents: represent companies in transactions.
- Brokers: facilitate transactions between buyers and sellers.
- Wholesalers: take title and possession of products, selling in bulk.
- Distributors: act as points of contact with exclusive territories.
- Retailers: sell directly to consumers and can be categorized by service level and store type.

Primary Research: Mixed Methods

Mixed methods research combines qualitative and quantitative approaches for a more comprehensive understanding.
Types of mixed methods research include:
- Triangulation: Analyzing data from both qualitative and quantitative sources to validate findings.
- Exploratory: Using qualitative methods to refine research questions, followed by quantitative analysis.
- Explanatory: Using quantitative data first and then applying qualitative methods for deeper understanding.
- Embedded: Using one method within another.

Primary Research: Quantitative

Quantitative research deals with numerical data and aims for objective evidence.
Types of quantitative research include:
- Surveys: Gathering data through structured questionnaires.
- Descriptive: Observing and measuring variables without manipulation.
- Correlational: Manipulating data to understand relationships between variables.
- Quasi/Experimental: Manipulating data to investigate cause-and-effect relationships.
Market Research: Experiments
Perceptual bias is important to consider in packaging and presentation.
Products with an unquantifiable amount should be packaged vertically rather than horizontally, as vertical packaging gives the illusion of more product.

Primary Research: Data Science

Data science combines multiple disciplines to extract insights from large data sets.
AI (artificial intelligence) uses machine learning and neural networks to mimic human problem-solving capabilities.

Research Ethics

Ensure informed consent from research participants, especially with vulnerable populations.
Use fairness and inclusion when selecting participants.
Protect participant privacy and anonymity.
Be mindful of conflicts of interest.

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Description

This quiz covers essential marketing concepts, focusing on the marketing mix, market research, and value propositions. It delves into the promotion mix, including various methods such as advertising and digital marketing to engage customers effectively. Test your knowledge on the strategies for turning potential customers into loyal buyers.