Marketing Strategy Concepts Quiz
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Questions and Answers

What are the two main views expressed by pricing policies?

Transactional view and relational view.

What three components are essential in media planning?

Reach, frequency, and impact.

What is the primary purpose of a marketing strategy?

The primary purpose of a marketing strategy is to create customer value and establish profitable relationships.

What are consumer sales promotions primarily aimed at achieving?

<p>Finding new customers or rewarding current customers.</p> Signup and view all the answers

What key questions should be considered when developing new products?

<p>Is it real? Can we win? Is it worth doing?</p> Signup and view all the answers

How does market segmentation assist in marketing strategy?

<p>Market segmentation helps identify which customers to serve by categorizing them into distinct groups.</p> Signup and view all the answers

How should each element of the marketing mix be managed with respect to branding?

<p>It should contribute to branding without neglecting other marketing objectives.</p> Signup and view all the answers

Explain the role of competitive advantage in marketing strategy.

<p>Competitive advantage is essential in marketing strategy as it enables a company to maintain a superior position over its rivals.</p> Signup and view all the answers

According to the brand strategy, how are brands defined beyond mere images?

<p>Brands are multi-sensory prisms built into products.</p> Signup and view all the answers

According to Michael Porter, what does strategy require?

<p>Strategy requires making trade-offs in competing and choosing what not to do.</p> Signup and view all the answers

What did Marshall McLuhan mean by 'The medium is the message' in advertising?

<p>The way a message is transmitted impacts how it is perceived.</p> Signup and view all the answers

What is meant by positioning within marketing strategy?

<p>Positioning refers to how a company wants to be perceived in the minds of its target segments.</p> Signup and view all the answers

What is essential to ensure successful product launches?

<p>Understanding consumer preferences and making accurate sales projections.</p> Signup and view all the answers

Why is urgency emphasized in marketing strategy planning?

<p>Urgency is emphasized because a company’s declining position compared to its competitors can threaten its existence.</p> Signup and view all the answers

What differentiates marketing strategy from operational improvements?

<p>Marketing strategy focuses on altering competitive strength, while operational improvements aim at efficiency and profitability.</p> Signup and view all the answers

How does differentiation factor into a marketing strategy?

<p>Differentiation is crucial as it determines how a company’s offerings stand out in the targeted market segments.</p> Signup and view all the answers

How does thinking of product design as a branding issue enhance brand value?

<p>It allows companies to design products that influence customer perceptions of value rather than just meeting technical specifications.</p> Signup and view all the answers

What role does packaging play in branding?

<p>Packaging conveys stories and images about the product, creating meaning and influencing consumer perception.</p> Signup and view all the answers

In what way can advertising build brand cultures?

<p>Advertising shapes audience perceptions by embedding products in narratives that provoke new ways of thinking about them.</p> Signup and view all the answers

How can customer-facing channels impact brand culture?

<p>They can significantly influence how customers perceive and interact with a brand, shaping their overall experience.</p> Signup and view all the answers

What is the significance of a purpose-driven business according to Keith Weed?

<p>Brands must demonstrate a social purpose to effectively engage with consumers and build loyalty.</p> Signup and view all the answers

According to Larry Fink, what do companies need to show to prosper over time?

<p>They must deliver financial performance while making a positive contribution to society.</p> Signup and view all the answers

What types of internal data are important for marketing information?

<p>Sales transactions, web and social site visits, cash flows, and promotion statistics are key data types.</p> Signup and view all the answers

How can a new narrative about social purpose affect customer loyalty?

<p>It can enhance perceived value and deepen brand loyalty, resulting in increased revenue.</p> Signup and view all the answers

What are customer touchpoints?

<p>Customer touchpoints are points of interaction where customers engage with a business through various channels.</p> Signup and view all the answers

Identify a moment of truth in customer interactions.

<p>A moment of truth occurs when a customer evaluates their experience during an interaction with a brand.</p> Signup and view all the answers

What role does customer engagement play post touchpoint interaction?

<p>Customer engagement reflects the level of participation and emotional connection a customer has after interacting at a touchpoint.</p> Signup and view all the answers

Name one of the four dimensions used to measure customer engagement.

<p>One dimension to measure customer engagement is cognitive.</p> Signup and view all the answers

How can businesses measure the emotional engagement of their customers?

<p>Businesses can measure emotional engagement by assessing how much customers like their experiences and whether they prefer their offerings over competitors.</p> Signup and view all the answers

Describe what behavioral engagement entails.

<p>Behavioral engagement involves tracking customer actions, such as website visits and time spent on different pages.</p> Signup and view all the answers

What does social engagement refer to in the context of customer interaction?

<p>Social engagement refers to customers recommending the brand, participating in social media interactions, and commenting on content.</p> Signup and view all the answers

How many customer touchpoints does the National Australia Bank have?

<p>The National Australia Bank has ten customer touchpoints.</p> Signup and view all the answers

How do personal values impact consumer behavior?

<p>Personal values significantly influence consumer behavior by guiding preferences and choices in the marketplace.</p> Signup and view all the answers

What are the five competitive forces that define an industry’s structure?

<p>The five competitive forces are direct competitors, customers, suppliers, potential entrants, and substitute products.</p> Signup and view all the answers

What challenges arose in marketing strategy due to the Covid-19 pandemic?

<p>Marketers faced uncertainty regarding demand spikes and supply shocks, requiring a reevaluation of pre-pandemic strategies.</p> Signup and view all the answers

Why is the study of consumer values becoming a significant area of research?

<p>The study of consumer values is significant as it may explain and influence consumer behavior more powerfully than other constructs.</p> Signup and view all the answers

How has the relevance of existing strategies changed since January 2020?

<p>Strategies in place before January 2020 have become irrelevant due to the rapid changes and challenges presented by the pandemic.</p> Signup and view all the answers

What is one key priority for businesses in responding to the post-pandemic market?

<p>A key priority for businesses is to protect employees while navigating the uncertainties of the new market environment.</p> Signup and view all the answers

In what way can values surpass attitudes in explaining consumer actions?

<p>Values can surpass attitudes by more deeply influencing underlying motivations that drive consumer decisions.</p> Signup and view all the answers

What does understanding competitive forces allow businesses to do?

<p>Understanding competitive forces allows businesses to navigate their industry effectively and identify strategic opportunities.</p> Signup and view all the answers

What is a product's position in relation to competitors?

<p>A product's position is the place it occupies relative to competitors' products in the minds of consumers.</p> Signup and view all the answers

What criteria should a differentiator satisfy to be considered valuable?

<p>A differentiator should be important, distinctive, superior, communicable, pre-emptive, affordable, and profitable.</p> Signup and view all the answers

What does a brand’s value proposition encompass?

<p>A brand's value proposition encompasses the full mix of benefits on which a brand is differentiated and positioned.</p> Signup and view all the answers

List the five marketing management functions involved in the marketing process.

<p>The five functions are analysis, planning, implementation, organization, and control.</p> Signup and view all the answers

What does the threats and opportunities analysis in a marketing plan assess?

<p>It assesses major threats and opportunities the brand may face, anticipating both positive and negative developments.</p> Signup and view all the answers

What is the role of marketing strategy within a marketing plan?

<p>The marketing strategy outlines the broad logic to engage customers, create value, and build relationships.</p> Signup and view all the answers

What are marketing actions in the context of a marketing plan?

<p>Marketing actions spell out how the marketing strategy will be turned into specific programs.</p> Signup and view all the answers

Why is the controls and measurement section important in a marketing plan?

<p>It outlines controls to monitor the process and measures the return on marketing investment.</p> Signup and view all the answers

How can pricing have a powerful branding effect beyond economic calculations?

<p>Pricing can influence consumer perception of value, quality, and brand image, impacting overall brand identity.</p> Signup and view all the answers

What does the objectives and issues section of a marketing plan state?

<p>It states the marketing objectives and key issues that will affect the results.</p> Signup and view all the answers

Study Notes

Introduction to Marketing Final Review

  • Final Assessment: In-class on December 3rd, 8:00-9:40 AM. Review of Marketplace Simulation learning.

From Mission to Marketing Strategy

  • Marketing Strategy & Mix: A diagram illustrating the connection between a firm's mission and its marketing strategy. The diagram shows inputs, outputs, and the "marketing mix" of place, product, price, and promotion, along with other factors like marketing intermediaries and competitors.

Market Segmentation

  • Select Customers to Serve: Segmentation involves dividing the total market into smaller segments.
  • Targeting: Selecting specific segments to enter.
  • Create Value for Targeted Customers: The process of establishing a meaningful value proposition to target customers.
  • Differentiation: Differentiate a market offering to create superior customer value.
  • Positioning: Position the market offering in the minds of target customers.

Segmentation Variables

  • Geographic: Nations, regions, states, climate, population density
  • Demographic: Age, gender, income, occupation, education, family life cycle, religion, social class
  • Psychographic: Lifestyle, personality, values
  • Behavioral: Occasions, benefits sought, user status, usage rate, loyalty status

Marketing Strategy

  • Definition: Marketing strategy is the logic by which a company creates customer value and establishes profitable relationships.
  • Components: The strategy comprises which customers to target (segmentation and targeting) and how to differentiate and position them (differentiation and positioning).

Why Strategy?

  • Competitive Advantage: Strategy is essential to gain a sustainable edge over competitors, a concept absent in a non-competitive market.
  • Strategic Planning Purpose: Strategic planning enables companies to gain a competitive edge efficiently, leading to sustainability and a stronger position in market relative to any competitors

Why Marketing Strategy?

  • Strategic Actions: Distinguishes these strategic actions from operational improvements, profitability enhancements, organizational streamlining, or procedure/training improvements.
  • Urgency and Deterioration: Strategy is urgent because company position deterioration relative to competitors may endanger the firm's continued existence.

Porter/What is Strategy?

  • Unique Value Proposition: Create a unique and valuable position that encompasses a different set of activities than competitors.

Michael Porter

  • Trade-offs: Strategy demands trade-offs, choosing what not to do in competing.
  • Fit Among Activities: Create a "fit" among a company's various activities to generate synergy.

Market Differentiation and Positioning

  • Segment-Specific Differentiation: After selecting market segments, firms decide how to differentiate their offerings and occupy specific positions within a given segment.

The Right Competitive Advantage

  • Meaningful Differentiation: Not all differentiators are always desirable or consequential to customers. Some can even create costs for companies as well as benefits for consumers.
  • Criteria for Worthwhile Differentiation: Criteria—importance, distinctiveness, superior, communicable, pre-emptive, affordable, and profitable—help assess the value and desirability of a differentiator

Selecting an Overall Positioning Strategy

  • Value Proposition: The full mix of benefits that differentiate and position a brand.
  • Customer Question: Answers the customer's question, "Why should I choose this brand?"

Managing Marketing Efforts

  • Marketing Process: Five functions—analysis, planning, implementation, organization, and control—compose the marketing process.

Contents of a Marketing Plan

  • Executive Summary: A concise overview of the plan, goals, and recommendations.
  • Market Situation: Description of the target market, company position, market analysis, customer needs, competitors, product review, current distribution, and sales trends.
  • Threats and Opportunities Analysis: Assessment of major threats, opportunities, and potential future developments.
  • Objectives and Issues: Stating marketing objectives and key issues that affect outcomes.
  • Marketing Strategy: The fundamental logic for engaging customers, creating value, and building relationships—details on the target market, positioning, and the budget.
  • Marketing Actions: How the marketing strategy turns into the specific plans of action; the who, what, how, and when, along with the cost projections.
  • Budget: Detailed budget outlining profit and loss projections.
  • Controls and Measurement: Monitoring and measuring the process and return on marketing investment using set protocols/metrics.

Pricing

  • Marketing Mix: The four Ps of marketing—product, price, place, and promotion.
  • Pricing Policies: Transactional (maximizing profits from individual transactions) or relational (treating customers as long-term partners)
  • Pricing Strategies: Figure 9.1—Considerations in setting prices include product costs, competition, and consumer perceptions of value, creating the price “floor and ceiling”

Pricing Strategies - Value-Based vs Cost-Based Pricing

  • Cost-Based Pricing: Designing a product, determining product cost, setting the price based on cost, and convincing buyers of value.
  • Value-Based Pricing: Assessing customer needs and value perception, establishing target prices to match with perceived value, and determining acceptable incurred costs.

Selecting Advertising Media

  • Media Planning Terms: Reach (percentage of the targeted audience), frequency (how many times exposed to the message), impact (qualitative value), and engagement (how the consumer responds to the message as well as its memorability)

Always Remember What Marshall McLuhan Said

  • Medium is the Message: The medium itself shapes the communication and its consequences—each communication medium transforms the way individuals communicate as well.

Consumer Sales Promotions

  • Definition: Tactics employed to secure new customers or reward current customers; consumer promotions aim to enhance value.
  • Enhance Value: Enhance the product's value
  • Other Objectives: Aimed at achieving other objectives as well.

Sales Promotions - Benefits

  • Product Awareness Boost: Increase product awareness, promote new products or refresh existing ones
  • Growing Sales and Volume: Increase sales volume
  • Engage and Activate Customers: Keep audience engaged and invigorate dormant customers
  • Additional Customer Acquisition: Target new customers
  • Customer Loyalty and Satisfaction: Build customer satisfaction
  • Competitive Advantage: Gain audience insights, stand out from competitors
  • Positive Brand Recognition: Maintain and foster a better brand reputation.

Developing New Products

  • Product Development Stages: A process involving idea generation, screening, concept development, testing, marketing strategy, business analysis, product development, test marketing, and commercialization.
  • Customer Feedback and Projections: Trial run phases to test market reception (test marketing) with target consumers, evaluate data based on market performance data, costs, and profit projections.

Brand Strategy

  • Firm Activity as Branding Tool: Every action of a firm engaging prospective customers is a potential branding opportunity.
  • Holistic Branding: Branding isn't restricted to communication

Brand Strategy

  • Marketing Mix Contribution: All elements of the marketing mix contribute to the brand; their improper management may undermine its value.
  • Other Marketing Objectives: Each marketing mix element must accomplish purposes beyond branding, like sales targets in a specified quarter.
  • Balancing Objectives: Managing marketing and branding objectives to balance brand goals against other marketing targets.

Brand Strategy

  • Multi-Sensory Identity: Brands transcend simple images, functioning as multi-sensory prisms.
  • Product Design for Brand Value: The important product design role in optimizing a brand's value.

Brand Strategy

  • Product Design as Branding: Thinking of product design (especially crucial in design-intensive industries) as a branding issue, emphasizing the role of product design to enhance brand value
  • Reverse Engineering for Value: Approach product design from a customer perspective and how a design influences consumers to determine the most effective designs to best serve customers.

Brand Consistency

  • Visual Identity Alignment: Brand consistency means maintaining uniform designs across various products such as iPhones, iPads, or wearables.

Branding: Packaging

  • Meaningful Packaging: Packaging conveys a product's image, stories, and associations, impacting consumer perception.

Branding: Advertising

  • Storytelling Power: Advertising communicates product narratives and meaning via storytelling and using imaginative metaphors to transform consumers' perspectives on a product.

Branding: Channel

  • Channel Partner Impact: Customer-facing components within the market channel strongly influence brand perception.

Connecting to the Customer

  • Narrative and Social Purpose: Connecting to customers using a narrative around a compelling social purpose may lead to increased perceived value, brand loyalty, and enhanced revenue.

'The New Brand Purpose'

  • Purpose-Driven Business: The key to engaging customers in the future is for brands to present themselves as purpose-driven businesses.

Larry Fink's Letter to CEOs

  • Social Purpose for Business Success: Businesses require a social purpose to flourish. It suggests that companies must promote positive societal contributions as well as generate financial returns to continue thriving in the long run.

Marketing Information

  • Internal Data: Sales transactions, website and social media traffic, cash flows, and promotion results.
  • External Data: Field observations and market information.

Touchpoints

  • Consumer Contact Points: The concept of contact with a firm or its products, ranging from virtual interactions to real-world encounters.
  • TouchPoint Examples: Includes digital and physical interaction interfaces from Instagram or YouTube to service centers, call centres, retail and/ or warehouse sites.

Touchpoints

  • National Australia Bank Touchpoints: Includes branches, email, corporate website, social media, ATMs, financial planners, online banking facilities (Internet banking), personal bankers, and customer contact centers to illustrate the many touchpoints.

Moments of Truth

  • Customer Interactions: Moments of customer interactions during touchpoints when they form positive or negative experiences

Customer Engagement

  • Customer Engagement Stages: A customer typically has a touchpoint; during the interaction with the firm, the customer has a moment of "truth", and the outcome of this interaction results in the customer's engagement with the firm.
  • Higher Participation in Engagement: Customers actively participate with the firm and connect with the brand or business. This usually stems from a strong sense of identification with the firm, based on their experiences.

How to Measure Customer Engagement

  • Cognitive Dimensions: Customer familiarity with brand values, local sales reps, business locations, and sustainability efforts.
  • Emotional Dimensions: Customer likes or dislikes regarding the provided experiences, a preference for the business's offerings to competitors', and/or any excitement elicited by product launches
  • Behavioral Dimensions: Frequency and duration of customer website visits; navigation patterns like visiting product pages, blog sites, or downloading resources.
  • Social Dimensions: Whether customers recommend the product, like/share it on social media, post on the brand's Twitter feed, and/or contribute to any associated blog discussions.

Discerning Pain Points

  • Customer Dissatisfaction: An analysis of consumer concerns regarding unsatisfactory aspects of businesses or product categories.
  • Issues Identified: High prices, limited availability, and poor service are frequently cited as critical consumer issues.

Marketing Information

  • Competitive Marketing Intelligence: Monitoring, collecting, and analyzing data from competitors and the marketplace to base strategy.
  • Importance of Competitor Knowledge: Awareness of competitor strengths and vulnerabilities is a cornerstone of sound strategy.

Consumer Buyer Behavior

  • End Consumers: The final consumers who drive a brand's consumer market.
  • Markers' Responsibilities: A marketer's core task is to understand end consumers and the factors impacting their behaviour.
  • How Consumers Respond: Determining how consumers respond to a brand's marketing efforts requires understanding consumer responses and why. Is there a pattern?

Consumer Buyer Behavior

  • Individual Differences: Consumers as individuals with their personal traits. Marketers cannot control every consumer choice but need to respect existing consumer behaviours.
  • Control-able Factors: Product, price, place, promotion (4Ps) and experience, engagement, exchange, evangelism (4Es) are controllable factors for marketers.
  • Uncontrollable Factors: Major forces and events such as economic, technological, social, and cultural situations.

Consumer Buyer Behavior

  • Cultural Influences: Culture, subculture, and social class are powerful cultural influences.
  • Social Influences: Reference groups, family, social roles, and status influence behaviour.
  • Personal Influences: Age, life-cycle stage, occupation, economic situation, lifestyle, personality, and self-concept are critical factors.
  • Psychological Influences: Motivation, perception, learning, beliefs, and attitudes affect consumer behaviour.

Consumer Buyer Behavior - Culture

  • Learned Behaviour: Consumer behaviour is typically learned.
  • Value Systems: Every group of people exhibits cultural distinctions with shared values.
  • Subcultural Groups: Subcultural differences can distinguish within a given group of people and shared value systems for particular groups.

Competitive Benchmarking

  • Variety of Tools: Competitor analysis tools are widely available and can offer insights into particular niches.
  • Specificity in Competitor Selection: Marketers must choose which parts of a competitor's business to analyze and learn.

Values in Consumer Behavior

  • Personal Values: Understanding personal values is inherently crucial in consumer behaviour analysis.
  • Primary Influence: Consumer values are significant influences in consumer decisions. They can be stronger influences than other factors, such as attitudes, product attributes, degrees of deliberation, and aspects of life-styles.

Five Competitive Forces

  • Industry Structure: Direct competitors, customers, suppliers, potential entrants, and substitute products shape an industry's structure.
  • Competitive Dynamics: Define an industry and affect the way competitors interact.

Strategy in a Post-Pandemic World

  • Impact: COVID-19 significantly altered the business landscape.
  • Uncertainty: The long-term implications remain uncertain, and businesses must comprehend these full ramifications to adapt effectively.

Strategy in a Post-Pandemic World

  • Prioritized Actions: Protecting employees and getting back to work were initial priorities during the pandemic.
  • New Market Conditions: The emergence of new approaches is contingent on the changing circumstances emerging from the pandemic.

Strategy in a Post-Pandemic World

  • No Longer Relevant: Strategies implemented before the pandemic may no longer be appropriate.
  • Adaptability Challenges: Market shifts demand a strategic response; consumers, competitors, and markets necessitate a reassessment of strategy's basic assumptions.

Strategy in a Post-Pandemic World

  • Digital Accessibility Limitations: The assumption that the pandemic extended business a longer timeframe to embrace digital channels might no longer be valid.
  • Global Market Reliance Issues: Relying solely on global markets for revenue and/or supply poses heightened risk; recent events exposed this.

Strategy in a Post-Pandemic World

  • Regulating Business: Government interventions, new regulations, and evolving world-realities will redefine business boundaries.
  • Competitor Response: Moving promptly to improve market position is essential, or competitors will quickly take advantage.

Strategy in a Post-Pandemic World

  • Agile Recovery: Flexibility is essential; businesses must adapt to changes and seize new possibilities.
  • Lessons from Crisis: History shows that crises shape winners/losers, companies needing clear plans for pursuing opportunities via resilience and agility.
  • Post-Crisis Declines: Significant percentage of businesses experience setbacks after crises.

Strategy in a Post-Pandemic World

  • Retooling Strategies: Businesses need to adapt their strategies to reflect current and future uncertainties.
  • Adaptability, Prediction, Resilience: Companies must prioritize adaptability to the changing business climate, predict future trends, and cultivate resilience to anticipate unforeseen events.

Prediction: Marketer's Tool

  • Industry Change Anticipation: Employ six lenses to predict industry changes, detect key uncertainties, and anticipate tipping points.
  • Lenses: Future customers, technology advances, social and sustainability issues, macroeconomic trends, and evolving business boundaries and competitor behaviour.

Prediction: Marketer's Questions

  • People-First Priorities: Disaster scenarios pose the need to proactively address people's demands during crisis occurrences.
  • Planning for Societal Disruptions: Considering supply chains during disruption.
  • Adapting Sales Channels: Identify and adapt to changing sales channels.
  • Customer Reactions: How customers will react to changes; planning is needed for each market and situation.

You, Today and in the Future

  • Improved Marketing Skills: The pandemic improves the skills of marketers/managers.
  • Proactive Strategy: Learn from and use past crises to be more efficient.

The Future

  • Unique Challenges/Opportunities: The future will bring unexpected challenges and opportunities—business as usual will no longer suffice.
  • Adaptability: Responding to uncertain times.

Final Thoughts for Review

  • Review Focus: The discussion of marketing considerations through a series of slides.

Why Marketing

  • Human-Centered Focus: Marketing considers human beings, their language, and their ability to make meaning.
  • Meaning Making: The need and application of storytelling as a foundational element in marketing to shape a consumers' perspective of a product or service, as well as the brand.
  • Language and Culture: Meaning is learned through language itself, within culture.

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Introduction to Marketing Fall 2024 Final Review PDF

Description

Test your knowledge on key concepts in marketing strategy, including pricing policies, media planning, and competitive advantage. This quiz covers essential elements such as branding, product launches, and market segmentation. Perfect for students and professionals looking to enhance their understanding of marketing principles.

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