Strategic Marketing Finals Reviewer PDF

APPENDICES 37-38 10. A graphical visualization of customers perceptions of product or brand. Answer: Perceptual Maps 1. What is the final step in the (STP) strategy format...

APPENDICES 37-38 10. A graphical visualization of customers perceptions of product or brand. Answer: Perceptual Maps 1. What is the final step in the (STP) strategy formation process? Answer: Positioning SPECIFIC TOOLS FOR POSITIONING 2. What type of maps show the position of products in Semantic scales consumers’ perceptions? Answer: Perceptual maps Customer value maps 3. What is the primary document used to summarize a Perceptual maps brand's position? Answer: Positioning statement Positioning statements 4. What is the name of the tool used for brand positioning that involves asking customers to rate alternatives on TYPES OF RESEARCH specific attributes using bipolar items like "hot vs. cold" Explanatory or "powerful vs. weak"? Answer: Semantic Scales Descriptive 5. What type of research involves less structured Causal methods like focus groups and in- depth interviews to identify issues for further investigation without imposing GIVE AT LEAST 3 QUALITIES A POSITIONING STATEMENT predefined structures or hypotheses? Answer: SHOULD BE Exploratory Relevant 6. What do you call the type of data collected by Distinctive third-party research companies like IRI and ACNielsen, Believable which includes scanner data, panel data, and Communicable single-source data for market analysis? Answer: Sustainable Syndicated Sources 7. What types of data used to understand on how In this type of data, the open-ended response approach and consumers value attributes of the product? Answer: observation are used to collect the data. Conjoint Analysis A. Primary data 8. What statistical techniques are appropriate for B. Quantitative data analyzing different types of data? Answer: Data C. Secondary data Analysis D. Qualitative data 9. What is a powerful tool to fine tuning marketing programs to linking specific actions with specific outcomes? Answer: Experiments The positioning statement must be backed up by superior B. Positioning Statements product attributes or capability. C. Perceptual Maps A. Relevant D. Semantic Scales B. Believable C. Feasible What type of research uses less structured and wide-ranging D. Sustainable methods to identify issues for further research without imposing a priori structure or hypotheses on the data collection What type of research identifies the cause and effects? or the respondent. A. Experimental A. Causal B. Exploratory B. Descriptive C. Causal C. Exploratory D. Descriptive D. Experimental It is a type of research that characterizes the who, what, when, This is a graphical visualizations of customer's perceptions of and where of the market but not the why. products or brands. A. Exploratory A. Positioning Statements B. Descriptive B. Semantic Scales C. Causal C. Customer Value Maps D. Experimental D. Perceptual Maps What data are collected by third parties (not the customers, It is a powerful tool to fine-tuning marketing programs and not the trade (retailers), and not the company itself), usually linking specific actions (causes) with specific outcomes one of a very few large market research companies (effects). (Information Resources Incorporated [IRI] and ACNielsen A. Perceptual Maps dominate the market). B. Syndicated Sources A. Secondary Data C. Experiments B. Syndicated Data D. Conjoint Analysis C. Primary Data D. Quantitative Data A very useful tool for brand positioning is ___________. A. Customer Value Maps The positioning statement must be easy to explain. The external influences that shape a brand's meaning and A. Feasible consumer perceptions, such as culture, trends, and social B. Communicable behaviour. C. Believable A. Measuring Brand D. Sustainable B. Social Phenomena C. Brand Evaluation APPENDICES-39-40 D. Brand Heritage What is the legal term for a brand? To evaluate consumer perceptions, loyalty, and brand strength, A. Branding as well as track brand equity. B. Trademark A. Measuring Brand C. Logo B. Social Phenomena D. Symbol C. Brand Evaluation D. Brand Heritage Which of the following best describes brand heritage? A. A brand's ability to increase its market share through What is Kano's model of employee satisfaction? aggressive advertising campaigns. A. Satisfier B. The history and long-term presence of a brand in B. Dissatisfied the market, contributing to its cultural identity and C. Customer satisfaction consumer loyalty. D. Performance factors C. The current and future financial value of a brand. D. A brand's ability to continuously innovate and create How are the requirements that will impact customer new products to appeal to different market segments. satisfaction proportional to their availability called? A. Either increase What is the assessment of a brand's performance in terms of B. Customer satisfaction proportionally consumer perception, loyalty, and market impact. C. Cost A. Measuring Brand D. Performance requirements B. Social Phenomena C. Brand Evaluation D. Brand Heritage What is the product launch? 5. What is an underappreciated element in brand building A. Planning that can also lead to brand destruction? Distribution B. Analysis C. Product 6. It is the brand in popular art, and affiliated D. Advertising spokespeople all influence brand meaning and brand associations. Social Phenomenon What is the role of a business analysis A. Service 7. One of the overarching organizing principles and B. Information should contribute to building the brand and to claiming C. Need a unique and valued place in consumers’ perceptions. D. Analyze data Promotion/Integrated Marketing Communications What is prototype testing in marketing? 8. It has grown dramatically with technological advances A. Customer Feedback over the past few decades, and today researchers B. Usability test have access to hundreds of terabytes of data. These C. Save money data include scanner data. Syndicated data D. Market 9. Another invaluable class of analyses addresses how 1. It is a summary of brand meaning/associations along customers evaluate and choose across products when with brand awareness, brand loyalty, brand quality, and those products are made up of multiple attributes. other brand assets. Brand equity Conjoint Analysis 2. What terms refer to emotional benefits that consumers 10. A powerful tool for fine-tuning marketing programs and experience from a brand? Hedonic linking specific actions (causes) with specific outcomes (effects). Experiments 3. What is the legal term for a brand? Trademark 4. What do many brands build upon that reflects their history of sustained and consistent market presence? Brand Heritage List down the three types of product attributes. What are the components of brand equity? Basic Factors (must haves) Brand awareness Excitement Factors (delighters) Brand loyalty Performance Factors (the more better) Brand quality Brand assets What are the specific tools for positioning? Semantic scale What are the benefits of a brand community (Harley Customer value maps Davidson)? Perceptual maps Utilitarian Value Hedonic Value List down the types of data? Self-expressive benefits Primary data Social benefits Secondary data Qualitative data What tools can marketers use to build a brand? Quantitative data Product quality Promotion mix List down Types of Research Customer analysis Exploratory Positioning statement Descriptive Casual What should be included in a positioning statement? Target consumers What are the goals of data analysis Frame of reference Identify patterns and trends Point of difference Predict outcomes Reason to believe Inform Decision-making Evaluate Program Effectiveness What are the four aspects of brand identity? Brand as a product Brand as an organization Brand as a person Brand as a symbol APPENDICES 41-43 What strategy is best for "Cash Cows" in the BCG Matrix? A. Heavy reinvestment What does "diffusion of innovations" refer to in B. Divestment marketing? C. Maintain and optimize profits A. Changes in product design over time D. Rapid market expansion B. The spread of new products into markets C. The decline of product life cycles Which attribute of a product affects diffusion by reducing D. The impact of innovation on pricing strategies perceived risks? A. Compatibility What factor is most critical in the adoption of discontinuous B. Trialability innovations? C. Observability A. Price reduction D. Complexity B. Customer education C. Ease of production What is a primary advantage of using the GE/McKinsey Grid D. Market size over the BCG Matrix? A. Simplicity in analysis Which innovation category offers incremental value without B. Granular and customized evaluation significant behavioral changes? C. Focus on pricing strategies A. Discontinuous innovation D. Avoidance of subjective factors B. Continuous innovation C. Adaptive innovation Which adopter segment waits the longest before trying a new D. Revolutionary innovation product? A. Innovators In the diffusion lifecycle, which segment is most socially B. Early adopters connected and influential? C. Laggards A. Laggards D. Late majority B. Early adopters C. Early majority D. Innovators What pricing strategy involves setting a low price to gain What is the critical consideration for "Question Marks" in the market share quickly? BCG Matrix? A. Skimming A. High returns with low investment B. Penetration pricing B. Divestment to reduce losses C. Cost-plus pricing C. Scaling down to become a "Star" D. Dynamic pricing D. Significant investment to increase market share Which factor is least likely to drive compatibility of innovations? Which stage of the product lifecycle is associated with "Stars" A. Supporting equipment availability in the BCG Matrix? B. Consumer behavior changes A. Decline C. Established consumption patterns B. Growth D. High production costs C. Maturity D. Introduction What stage in the adoption process involves developing an attitude toward a product? A. Evaluation List the five segments in the diffusion of innovations B. Awareness framework. C. Trial D. Adoption Innovators Early adopters Which pricing strategy sets high initial prices and lowers them Early majority over time? Late majority A. Penetration Laggards B. Market parity Enumerate the stages in the innovation adoption process. C. Skimming D. Value-based pricing Awareness Interest/Understanding What does "network effects" mean in innovation diffusion? Evaluation/Attitude A. Higher costs with widespread adoption Trial/Purchase B. Increased value as more people adopt the product Adoption/Loyalty C. Reduced trialability due to complexity D. More observability for niche markets What are the attributes that influence the rate of diffusion of a Identify the factors that affect pricing decisions. product? Costs (fixed and variable) Relative advantage Customer willingness to pay Trialability Competitors’ pricing strategies Complexity Legal and ethical constraints Observability Compatibility Enumerate the common attributes of "Early Adopters." Risk perception Network effects Younger age Better educated List the quadrants of the BCG Matrix. More affluent Socially connected Stars Higher product category involvement Question Marks Cash Cows What are the components of the GE/McKinsey Grid evaluation Dogs process? What are the strategic implications for each segment in the Define market attractiveness markers diffusion lifecycle? Define business strength markers Evaluate each product or unit Innovators: Generate new ideas and provide Compute weighted scores feedback Position units in the grid Early adopters: Influence other segments, Derive strategic implications especially the early majority Early majority: Adopt after proven value List the pricing objectives in strategic marketing. Late majority: Risk-averse and follow trends Laggards: Resist adoption and prefer traditional Survival methods Maximum current profit Market share growth Market penetration Product positioning What are the steps in the cost-volume-profit analysis process? List the major pricing strategies used in the market. Identify fixed and variable costs Cost-plus pricing Calculate contribution margin Competitive pricing Determine breakeven volume Value-based pricing Analyze effects of price changes on demand Dynamic pricing Evaluate target profit goals Penetration pricing List the key elements of innovation marketing. Identify the factors influencing market attractiveness in the GE/McKinsey Grid. Understanding customer value Managing consumption pattern changes Market size Creating trialability opportunities Market growth Enhancing product observability Profit margins Reducing perceived risks Competitive intensity Entry barriers Enumerate examples of dynamic pricing strategies. APPENDICES 44-45 Time-based pricing Peak pricing What is the main goal of integrated marketing communications Surge pricing (IMC)? Segment-specific pricing A. Increase short-term profits Competitor-responsive pricing B. Provide a unified voice across all media and customer touchpoints What are the limitations of the BCG Matrix? C. Increase product prices D. Focus solely on advertising Simplifies complex variables Ignores market and product synergies Which element of the communication mix is most effective for Treats data as static snapshots creating awareness? Relies on arbitrary axis thresholds A. Advertising B. Personal selling C. Point-of-purchase promotions D. Public relations What is a key disadvantage of price promotions? D. Reduced transparency A. They generate immediate sales B. They harm brand image and equity over time Which is an example of hybrid channels of distribution? C. They are difficult to implement A. Direct selling via a website D. They are not measurable B. Exclusively physical store purchases C. Selling through internet platforms and traditional What does the FCB grid emphasize in communication stores strategies? D. Manufacturing and selling directly A. Short-term sales focus B. Differences in consumer motivations for thinking What is one of the core challenges with public relations in and feeling products marketing? C. Exclusively high-involvement products A. Gaining credibility D. Product commoditization B. Ensuring paid-for media coverage C. Loss of control in mediated publicity Which function of channels involves transporting and storing D. Short-term sales impact products? A. Transactional The most effective way to measure the success of a B. Logistical communication campaign is: C. Facilitating A. Comparing competitor performance D. Financial B. Establishing a baseline and evaluating ROI C. Relying on historical sales data What kind of promotions did AXE use in its campaigns for D. Monitoring internal employee satisfaction experiential marketing? A. Guerrilla promotions on campuses 1. The process of conveying consistent and synergistic B. Exclusive TV advertising messages to reinforce a brand. Integrated Marketing C. Point-of-purchase discounts Communications (IMC) D. Direct selling events 2. A promotional strategy aimed at creating a memorable A significant impact of internet distribution on airlines is: customer experience. Experiential Marketing A. Increase in ticket prices B. Reduced booking costs by $10–$15 C. Limited access to customers  3. The act of providing warranties and customer service in Direct Marketing distribution. Facilitating Functions Enumerate three types of functions performed by distribution 4. The term for setting communication budgets based on channels. specific tasks and objectives. Task-Based Budgeting Transactional Functions Logistical Functions 5. Tools used to influence brand building rather than Facilitating Functions immediate sales. Advertising and Public Relations Enumerate the disadvantages of price-based promotions. Lost revenue and margins 6. A type of customer interaction where recommendations Erosion of brand equity come from peers. Word-of-Mouth Marketing Training customers to expect discounts 7. The act of bringing different products together to meet Enumerate four logistical functions of distribution channels. customer needs. Assorting Transporting Storing 8. Reducing product purchase costs while increasing Sorting (Breaking Bulk) price transparency is often attributed to what channel? Assorting Internet Distribution Enumerate tools used in direct marketing. 9. A program combining advertising, public relations, and Direct Mail personal selling into one effort. Integrated Telemarketing Communication Program Email Contacts 10. The term for providing consumer-oriented promotions Enumerate objectives for an integrated communication at the point of sale. Point-of-Purchase Promotions campaign. Increase awareness Boost sales Enumerate the components of the communications mix. Generate leads Advertising Personal Selling Sales Promotions Public Relations Enumerate three roles within a B2B buying center. 3. This approach does not consider the causal Users relationship between the marketing budget and the Gatekeepers target sales or profits. Target Costing Buyers 4. This approach derives the required marketing budget Enumerate types of hybrid promotional tools. from the objectives of the business unit. Bottom-up Experiential Promotions Budgeting Brand Ambassador Programs Online Influencer Campaigns 5. This approach is problematic as it does not explicitly consider marketing objectives or adjustments to the Enumerate three measurable metrics for campaign success. competition. Extrapolation Return on Investment (ROI) Change in customer awareness 6. It is based on information from accounting. When Long-term sales increase employed in comparison to rivals, past periods, industry norms, and previously defined plans or Enumerate three customer needs addressed in distribution budgets, the majority of them have significance. systems. Financial ratios Availability Assortment 7. It is the number of customers that buy more than one Customer Service product category from a specific supplier. Cross-Buying Rate APPENDICES 46-47 8. It is the number of customers that bought the product. Purchase Rate 1. It estimates future sales for the entire market or industry. Market forecast 9. It is the maximum of all customers who could possibly purchase in the product category; Market Potential 2. It estimates the sales and the market share of the particular company and its products. Sales forecast 10. It is the number of customers who actually buy the product category. Actual Market Four ways to determine the marketing budget: 2. This approach is problematic as it does not explicitly Extrapolation consider marketing objectives, changes in strategies, Percentage of Sales/Profits costs, or adjustments to the competition or to evolving Target Costing opportunities. Bottom-up Budgeting A. Extrapolation B. Percentage of Sales/Profits Give the four areas of metrics C. Target Costing Market metrics D. Bottom-up Budgeting Competitive metrics Marketing profitability metrics 3. It is a number of customers that buy more than one product Customer Metrics category from a specific supplier. A. Brand Awareness Five major groups of financial ratios. B. Brand Image Liquidity ratios C. Purchase Rate Debt ratios D. Cross-Buying Rate Activity ratios Profitability ratios 4. Which of the following best define in “Repurchase Rate” Market-related and dividend ratios A. The number of customers that actually bought the product 1. It determines all marketing activities that are needed, B. The percentage of customers that know the brand and calculates the costs for each and the total marketing also find it attractive budget is computed. C. The company’s share of the customer’s annual A. Extrapolation purchase volume B. Percentage of Sales/Profits D. The number of customers who buy again C. Target Costing D. Bottom-up Budgeting 5. It is the maximum of all customers who could possibly purchase in the product category? A. Market Potential B. Actual Market C. Purchase Rate D. Cross-Buying Rate 6. Which financial ratio is most commonly used to assess a 10. An organization assumes that the price of raw materials company's profitability? will remain stable over the next year. What type of control A. Current Ratio would be used to monitor this assumption? B. Debt-to-Equity Ratio Strategic control C. Return on Equity (ROE) Financial control D. Inventory Turnover Premise control Operational control 7. Which ratio is best for evaluating a company's liquidity position? A. Gross Margin Ratio B. Current Ratio C. Earnings Per Share (EPS) D. Price-to-Earnings (P/E) Ratio 8. What is the primary goal of the Net Promoter Score (NPS)? A. To track marketing expenses. B. To measure customer satisfaction and loyalty. C. To assess website traffic. D. To evaluate product pricing strategies. 9. Which of the following marketing metrics is a key indicator of brand awareness? A. Market Share B. Organic Traffic C. Social Media Engagement Rate D. Churn Rate