Questions and Answers
What is the primary purpose of promotion in the marketing mix?
To inform, persuade, and remind potential buyers of a product to elicit a response.
According to the AIDA concept, what are the four stages of the promotional goal?
Define a non-durable good.
Non-durable goods are tangible goods that are consumed fast and purchased regularly.
Explain the classification of products based on buyer behavior.
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What is the main purpose of branding?
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Packaging serves a practical function to hold the content together and to protect goods as they move through the distribution _____.
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New product development process is separate from an organization's overall marketing strategy.
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What is CRM an abbreviation for?
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What are QR codes used for?
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Which devices are included in the social media and mobile technology platforms?
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Web widgets are software applications that run outside existing online platforms.
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What is the purpose of concept testing in a new product strategy?
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What is the main objective of test marketing?
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Price is considered as the key factor for generating revenues.
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Markup pricing uses the cost of buying the product from the producer, plus amount for profit and expenses not otherwise, to calculate the final __________ price.
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Match the price strategy with its description:
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What is the primary focus of customer relationship management (CRM)?
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Which of the following are tools for consumer sales promotion?
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Social media has changed how marketers can communicate with their audience.
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______ is any form of impersonal paid communication sponsored by a company.
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Match the following promotional tools with their descriptions:
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Study Notes
Chapter 4: Product
- A product is everything both favorable and unfavorable that a person receives in an exchange.
- There are two categories of products:
- Homogeneous goods: similar in quality but different in price.
- Heterogeneous goods: product's features are more important than price.
- Classification of products:
- Non-durable goods: tangible goods that are consumed quickly and purchased regularly.
- Durable goods: tangible goods that are used over a long period and require service.
- Services: intangible goods that require quality control and supplier credibility.
- Types of consumer products:
- Convenience products: inexpensive items with little shopping effort.
- Shopping products: medium-priced items with moderate shopping effort.
- Specialty products: unique and special products with high shopping effort.
- Unsought products: unknown products or products not sought by consumers.
Branding
- Three main purposes of branding:
- Product identification
- Repeat sales
- New product
- Benefits of branding:
- Product identification
- Repeat sales
- High brand equity
- Branding strategies:
- Manufacturer's brand vs private brand
- Individual brand vs family brand
- Trademarks:
- Exclusive right to use a brand or part of a brand
- Protects brand name, shape, color, or design
Packaging
- Functions of packaging:
- Containing and protecting products
- Promoting products
- Facilitating storage, use, and convenience
- Importance of packaging:
- Increases sales through longer sales life
- Increases margins
- Increases product loyalty
- More resale opportunities
- Greater market responsiveness
New Product Development
- New product development process:
- Idea generation
- Idea screening
- Business analysis
- Test marketing
- Commercialization
- Importance of new product development:
- Increases sales and profits
- Increases market share
- Improves competitive position
Chapter 5: Price
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Definition of price:
- The amount given up in an exchange to acquire a good or service
-
Roles of price:
- The sacrifice effect of price
- The information effect of price
-
Importance of price to marketing managers:
- Key to revenues
- Determinant of profit
- Affects customer satisfaction and loyalty
-
Price objectives:
- Profit maximization
- Target ROI
- Satisfactory profits
-
Pricing strategies:
- Markup pricing
- Break-even pricing
- Price skimming
- Penetration pricing
- Status quo pricing
-
Fine-tuning techniques:
- Guaranteed price matching
- Allow the firm to adjust for competition
- Meet ever-changing market conditions### Marketing Channels
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A marketing channel is a business structure of interdependence, where organizations are involved in the process of making a product or service available for consumption by end customers.
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Channel members include resellers, intermediaries, and middlemen, such as retailers, merchant wholesalers, agents, and brokers.
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Channel functions performed by intermediaries:
- Transactional function: contracting, promoting, negotiating, and risk-taking.
- Logistical function: physical distribution, storing, and sorting.
- Facilitating function: researching, financing, and facilitating the sale of a product.
Channel Intermediaries and their Functions
- Retailers:
- Buy mainly from wholesalers and sell to end customers.
- Take title to goods and sell to final customers.
- Merchant Wholesalers:
- Buy goods from manufacturers, take title, and resell to retailers.
- Facilitate the movement of products and services from manufacturers to retailers.
- Agents and Brokers:
- Facilitate the sale of a product by representing channel members.
- Do not take title to goods.
Channel Structures
- Direct channel: producer – consumer.
- Retailer channel: producer – retailer – consumer.
- Wholesaler channel: producer – wholesaler – retailer – consumer.
- Agent/Broker channel: producer – agent – wholesaler – retailer – consumer.
Levels of Channel Distribution Intensity
- Intensive: many intermediaries, convenience goods available everywhere.
- Selective: fewer intermediaries, typically used for shopping goods.
- Exclusive: special resources, used for major industrial equipment or specialty goods.
Retailing
- Retailing: all activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use.
- Types of retailers:
- Department stores: carry a wide variety of shopping and specialty goods.
- Specialty stores: specialize in a given type of product, allowing for refined segmentation strategies.
- Discount stores: compete on the basis of low prices, high turnover, and high volume.
- Convenience stores: carry limited lines of high-turnover goods, often located near residential areas.
- Supermarket: large, self-service retailer specializing in food and nonfood items.
Promotions
- The role of promotion in marketing mix: informs, persuades, and reminds potential buyers of a product.
- Promotional goals: to inform, persuade, and remind.
- The AIDA concept: attention, interest, desire, and action.
Promotional Mix
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The combination of promotional tools, including advertising, public relations, personal selling, and sales promotion.
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Advertising: impersonal, one-way communication about a product that is paid for by a marketer.
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Personal selling: planned presentation to one or more prospective buyers.
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Sales promotion: short-term incentives to encourage purchase or sales of a product or service.### Public Relations
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Public relation is the process of making evaluation public to earn public understanding
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Tools:
- Free sample
- Contest
- Premium
- Trade show
- Vacation gateway
- Coupon organization's mission, vision, and goals
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Function:
- Evaluates public attitudes
- Identifies areas of public interest
- Executes programs to win public favor
Promotional Mix
- Factors affecting promotional mix:
- Available funds
- Type of buying decision
- Competitive climate
- Push and pull strategies
- Types of advertising:
- Pioneering advertising
- Competitive advertising
- Comparative advertising
- Product advertising:
- To stimulate primary demand for a new product or product category
- Heavily used during the introductory stage of the product life cycle
Sales Promotion
- Consists of all marketing activities other than personal selling, advertising, and public relations that stimulate consumer purchasing and dealer effectiveness
- Tools:
- Coupons and rebates
- Premium
- Loyalty marketing program
- Contest and sweepstakes
- Sampling
- Point of purchase (P-O-P) promotion
- Online sales promotions
- Aimed at end consumers, trade customers, or company employees
Personal Selling
- Advantages:
- Provide a detailed explanation or demonstration of the product
- Sales message can be varied according to the motivations and interest of each prospective customer
- Directed only to qualified prospects
- Cost can be controlled by adjusting the size of the sales force
Customer Relationship Management (CRM)
- Focuses on understanding customers as individuals instead of as part of a group
- Makes communications more customer-specific, like personalized marketing efforts
- Initially popularized as one-to-one marketing, but has become a broader approach to understanding and serving customer needs
- Accomplished by:
- Organizing the company around customer segments
- Establishing and tracking customer interactions with the company
- Fostering customer-satisfying behaviors and linking all processes of the company from its customers through its suppliers
Social Media and Marketing
- Has changed the way marketers communicate with their brands
- Marketers must remember that social media is meant to be a social experience, not a marketing experience
- Platforms include:
- Smartphones (e.g. iPhone, BlackBerry)
- Netbooks and iPads
- QR codes
- Web widgets, also known as gadgets and badges
Ethics and Social Responsibility
- Corporate social responsibility (CSR)
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Description
This quiz covers the fundamentals of marketing, specifically chapters 4-8, for Universiti Teknologi MARA's MKT243 course.
