StraMa Final Exam PDF

CBEA-19-706A STRAMA FINAL EXAM APPENDIX: 37-47 IDENTIFICATION: EXPLORATORY RESEARCH 1. Type of research that uses less structured and wide-ranging methods to identify issues for further research without imposing a priori structure or hypotheses on the...

CBEA-19-706A STRAMA FINAL EXAM APPENDIX: 37-47 IDENTIFICATION: EXPLORATORY RESEARCH 1. Type of research that uses less structured and wide-ranging methods to identify issues for further research without imposing a priori structure or hypotheses on the data collection or the respondent. DESCRIPTIVE RESEARCH 2. This type of research characterizes the who, what, when, and where of the market (but not the why—why implies causation, which is discussed below). CAUSAL RESEARCH 3. The type of research that identifies the event (or “cause”) and its consequence (“effect”). PERCEPTUAL MAPS 4. One of the most useful ways to present and to think about competitive position in the marketplace is to translate positions in consumer perceptions to position in a two-dimensional map (a plane), with products and customer preferences graphed into that space EXPERIMENTS 5. A powerful tool to fine-tuning marketing programs and linking specific actions (causes) with specific outcomes (effects). ADVERTISING 6. It entails communicating messages via paid-for, impersonal media (television, radio, newspapers, etc.) in which the sponsor is identified or known. SALES 7. “Personal selling” involves individualized and interactive (two-way) communications, including one-on-one meetings, presentations, and personal communications targeted to the individual customer or “account.” SALES PROMOTIONS 8. Are short-term incentives intended to move customers to “action” (to purchase). It includes offers to consumers and to retail partners or “the trade.” PUBLIC RELATIONS 9. Encompasses the management of the firm’s complex relationships with its many “publics” or constituencies, including regulators, public interest groups, the media, and customers. COMMUNICATIONS MIX 10. traditionally been defined as comprising advertising, personal selling, sales promotions, and public relations. FINANCIAL RATIOS 11. Based on accounting information. Most of them are most meaningful when they are used on a comparative basis (compared with industry standards, prior periods, competitors, and previously established plans or budgets) COMMUNICATIONS MIX 12. Traditionally been defined as comprising advertising, personal selling, sales promotions, and public relations. In addition, new hybrid tools have emerged, including event and “experiential” promotions, “brand ambassador” programs, and the Internet. PROFITS 13. Are net contributions or units sold multiplied by average margins (margin being price minus unit costs). QUALITATIVE DATA 14. Are those data that are developed from observation or via textual, verbal, and open-ended responses methods QUANTITATIVE DATA 15. Are responses that are provided or can be summarized numerically, and quantitative methods are conducive to statistical analysis, enabling generalization of results across larger groups (“populations”). BRAND 16. Serve as commercial identities that retain the value of marketing investments across time. BRAND EQUITY 17. It is the sum of all the hearts and minds of every single person that comes into contact with your company. BRAND STRENGTH 18. It is important for building brands, and measures of brand strength are indispensable in comparing competitive brands and in evaluating specific marketing investments, DISTRIBUTION 19. An underappreciated element in brand building and also a potential trap toward brand destruction is the selection, affiliation with, and control of channel partners. BRAND VALUE 20. Can be a substantial asset to companies and brand meaning can deliver real benefits to consumers beyond core product attributes or performance. RELATIVE ADVANTAGE 21. The first and most obvious attribute of an innovation itself that is related to its speed of diffusion TRIALABILITY 22. If consumers can try a product without committing to adopting it or committing to a large purchase or effort to try it, they will be more willing to “sample” and evaluate the product COMPLEXITY/EASE OF USE 23. The more complex an innovation is, the slower and less willing customers will be to try the innovation. OBSERVABILITY INNOVATIONS 24. That can be seen in use will diffuse into a market more quickly than products that are not visible. COMPATIBILITY 25. The less the degree of change— and the lower the price of change required to try a product, the more likely customers and consumers will be to try. EXTRAPOLATION 26. Building upon the previous year’s budget as a base, those allocations are either increased or decreased by a certain amount or are left unchanged. TARGET COSTING 27. The company determines the target sales volume and determines the target profit. BOTTOM-UP BUDGETING 28. This approach derives the required marketing budget from the objectives of the business unit. PERCENTAGE OF SALES/PROFITS 29. The marketing budget is determined as a percentage of the projected sales or profits. MARKET POTENTIAL 30. The maximum of all customers who could possibly purchase in the product category. IDEA GENERATION 31. This phase in the new product development process aims at collecting as many promising ideas for a new product or service as possible. RAZORBLADE PRICING 32. Strategic pricing idea that can be powerful in certain industries and for certain products is “razorblade” or “razor-and-blade” pricing, sometimes called “freebie marketing.” LEGAL AND ETHICAL CONSIDERATIONS 33. It is the element of pricing decisions that Legal constraints proscribe overt price collusion between competitors, predatory pricing, deceptive pricing, price fixing in channels of distribution, and price discrimination across customers or channels. SOCIAL PHENOMENA 34. Other consumers of the brand, the brand in popular art, and affiliated spokespeople all influence brand meaning and brand associations. MARKET PENETRATION 35. This strategy is based on the recognition that volume leads to the benefits of scale, including economies of scale and learning curve or experience effects, and that those benefits scale include lower unit cost. PRODUCT POSITIONING 36. A premium price can serve to position the product as the quality leader in the category. THE VALUE MAP 37. In most markets, and for most product categories, customers shop for more than the lowest price; fully aware customers will deliberately pay more to get more, but in- formed customers will not pay more to get the same, or pay the same (or more) to get less. SETTING AND ADJUSTING THE PRICE 38. The final price must be consistent with the core strategy and with the pricing objectives. Competitive reactions, changes in consumer and buyer behavior, variations in demand and in costs, and other changes, however, require that a company adapts prices to changing circumstances. CHANNEL FUNCTIONS 39. To get a product from the manufacturer to the customer, regardless of the length of the channel, the number of entities in the channel, the type of product, or the type of customer, certain things have to happen—somewhere in the channel these things have to occur for an efficient and effective delivery of the product to occur. PENETRATION PRICING STRATEGY 40. This aims at quickly gaining substantial market share with a relatively low price. It is used when economies of scale and experience curve effects are available, when a substantial number of customers are price sensitive. CHANNEL POWER 41. It is the ability of a particular channel member to control or influence the decision making and behavior of another channel member, or one channel member’s potential for influence with another channel member. HYBRID CHANNELS 42. This is conceptually and strategically different from delivering all functions through alternative channels to different customers and it is sometimes used to refer to multiple-channel systems. CHANNELS OF DISTRIBUTION 43. It involves how a product is delivered from the producer to the customer and all the functions that add value within that process. TRANSACTIONAL FUNCTIONS 44. It is a function performed by Channels of Distribution that includes buying, selling, and risk taking. LOGISTICAL FUNCTIONS 45. It is a function performed by Channels of Distribution that includes transporting, assorting, storing, location, sorting. POSITIONING 46. The final step in the strategy formation process “STP Process”. CUSTOMER-ORIENTED MARKET RESEARCH 47. Effective strategic marketing requires persistent and thorough attention to the customer and the customer needs that is “the marketing concept”. POSITIONING STATEMENT 48. The singular characteristic of a product or a brand aiming at establishing unique, sustainable, and positive associations in the minds of the customers. SITUATION ASSESSMENT 49. The broad, exploratory, and inductive study of customers in general to identify trends in needs and demand, and customer insights. EXPLORATORY 50. Uses less structured and wide-ranging methods to identify issues for further research without imposing a priori structure or hypotheses on the data collection or the respondent. SYNDICATED SOURCES 51. Data is collected by third parties (not the customers, not the trade (retailers), and not the company itself), usually one of a very few large market research companies (Information Resources Incorporated [IRI] and ACNielsen dominate the market). PRODUCT PORTFOLIO 52. It refers to the collection of products and businesses. RELATIVE MARKET SHARE 53. It is the problems that can arise from defining market shares and splitting the y-axis of the matrix into high and low growth. PERCEPTUAL MAPS 54. This term refers to a graphical visualization of customers’ perceptions of products or brands. STRATEGIC MARKETING 55. Involves crucial decisions about which customers and what needs the firm will serve and what means the firm will employ to those needs. TARGET SEGMENTS, COMPETITIVE ADVANTAGES, SINGULARITY 56. Three high level division in customer- driven strategy CONSIDER CONTINGENCY 57. It is at this stage in the process by going over earlier assumptions and connecting them to analyses. SEMANTIC SCALES, CUSTOMER VALUE MAPS, PERCEPTUAL MAPS and POSITIONING STATEMENTS. 58. What are the four tools specifically related to and especially important in positioning products and brands in the market? SEMANTIC SCALING (or SEMANTIC DIFFERENTIAL SCALE) 59. What is the name of the tool that uses bipolar attributes (e.g., "hot vs. cold") on a scale to evaluate customer perceptions of brands or products? PERCEPTUAL MAPS 60. What tool visualizes customer perceptions of brands and uses dimensions such as quality and price or multidimensional scaling to assess brand similarities? MULTIPLE CHOICE: D 1. In 1985 Andreasen, which of the following is NOT the Market Research Process? A. Determine Required Analysis B. Determine Implementation of Results C. Determine Required Data D. Interpreting and Reporting the Findings B 2. When market research is appropriate and needed, where should be based on? A. Based on research will address the issue and how the recommendations will be communicated. B. Based on a specific understanding of the issue, opportunity, or problem C. Based on a specific issues and feasible strategic actions, discussed above, and a broad understanding D. Based on a developing and executing the research plan C 3. It is a powerful tool to fine-tuning marketing programs and linking specific actions (causes) with specific outcomes (effects). A. Perpetual Maps B. Market Research C. Experiment D. Exploratory D 4. Can characterizes the who, what, when, and where of the market. A. Customization B. Collect Primary Data C. Restrictive D. Descriptive A 5. This question can affect various marketing mix elements that contain the "What is the best product, message, channel, or price?" A. Mix/Program Questions B. Marketing Questions C. Strategic Questions D. Experimental Questions D 6. It is the Marketing Planning Cycle. A. Situation Assessment B. Documentation C. Strategy Formula D. All of the Above C 7. To be effective, objectives should be “SMART”. What is SMART means? A. Smart, Meant, Attainable, Relevance, and Theory B. Specific, Measurable, Attainable, Relevance, And Time Bound C. Specific, Measurable, Achievable, Relevant, and Time-specific D. Simple, Mindful, Aesthetic, Reverence and Timely B 8. Which of the following is NOT a major group of financial ratios? A. Profitability ratios relate the income earned with the number of resources used to generate this income. B. It guides implementation and is the basis for monitoring progress. C. Debt ratios indicate the company’s ability to repay long-term debt. D. Market-related and dividend ratios measure to what extent a company generates value for its shareholders. B 9. Each tactic is based on a set of assumptions about opportunities and threats, industry development, competitor strategies, consumer behavior, and so on. A. Financial Ratio B. Premise Control C. Perceptions D. Marketing Plan A 10. Assessment and Adjustment also known as: A. “if you can’t measure it, you can’t manage it.” B. "If you can’t track it, you can’t improve it." C. "You can’t manage what you don’t measure." D. "To manage something, you must measure it first." A 11. The person that applies observation about advertising more accurately to the whole assortment of marketing communications tools. A. Professor Britt B. Professor Twain C. Professor Ansoff D. Professor Hippel A 12. It has traditionally been defined as compromising advertising personal selling, sales promotions, and public relations. A. Communication Mix B. Marketing Mix C. Unique Mix D. Product Mix A 13. It involves direct mail, telemarketing, and email contacts are perhaps a form of advertising. A. Direct B. Advertising C. Sales Promotion D. Sales A 14. It is the matching of sum segments of customers and their specific need with the firm and its sustainable competitive advantages. A. Targeting B. Concentration C. Competition D. Promotion A 15. It involves net contributions or units sold multiplied by average margins. A. Profits B. Capital C. Interest D. Investment A 16. A reduction of brand equity to the basic drivers of customer behavior. A. Brand Strength B. Brand Value C. Brand Equity D. Brand Quality B 17. Deals with the financial impacts of the brand on the financial performance and the value of the firm. A. Consumer-level brand B. Firm or brand-level value C. Competitors-level brand D. Equity-level brand C 18. The following are the facets of “excitement” except: A. Daring B. Spirited C. Cheerful D. Imaginative C 19. The following are the facets of “competence” except: A. Reliable B. Successful C. Power D. Intelligent A 20. The following are the traits of “ruggedness” except: A. Marvelous B. Masculine C. Western D. Tough C 21. There are many forms of risk perceived by customers except: A. Financial Risk B. Social Risk C. Commerce Risk D. Physical Risk A 22. Some of the substantive, core benefits of an innovation may also go up with wider market adoption via: A. Network Effect B. Internet Effect C. Web Effect D. Social Media Effect A 23. Is an essential element of free markets and competition. A. Innovation B. Production C. Testing D. Advertising B 24. They are Conservative and skeptical, Low product category involvement, and Risk averse. A. Laggards B. Late Majority C. Innovators D. Early Adopters B 25. They are Deliberate but open-minded. Moderately interested in the product category. A. Laggards B. Early Majority C. Early Adopters D. Late Majority A 26. The number of customers who actually buy the product category. A. Actual Market B. Mass Market C. New Market D. Market Potential A 27. The percentage of the customers of the actual market that are aware of the brand. A. Brand Awareness B. Brand Mantra C. Brand Value D. Brand Image A 28. The percentage of customers that know the brand and also find it attractive. A. Brand Image B. Brand Value C. Brand Strength D. Brand Mantra B 29. The number of customers who buy again. A. Purchase Rate B. Repurchase Rate C. Cross-buying Rate D. Share of Wallet A 30. The number of customers that actually bought the product. A. Purchase Rate B. Repurchase Rate C. Cross-buying Rate D. Consumer A 31. This phase usually is the most costly phase. A. Product Launce Phase B. Research Versus Development Phase C. Advertising Phase D. Promotion Phase D 32. Low prices can serve to build and to protect market share. A. Product Positioning B. Market Penetration C. Market Skimming D. Building and Protecting Market Share B 33. Providing title to buyer, accounting and managing receivables. A. Risk Taking B. Selling C. Buying D. Sorting B 34. Create a business plan, estimate resources needed, and profitability. A. Business Type B. Business Analysis C. Analyzation D. Prototype B 35. The two words, ___ and ___ are almost always used together in the everyday business lexicon to refer to a single undifferentiated set of activities. A. Research and Diagnostic B. Research and Development C. Research and Design D. Research and Patterns A 36. What model is used for product development? A. The Kano Model B. The Kana Model C. RFM Model D. Kirkpatrick Model B 37. In this phase the ideas are eliminated that do not deserve additional resources and attention and the most promising ideas are selected for the next phases of the development process. A. Idea Generation B. Idea Selection C. Concept Development and Testing D. Prototype and Market Testing C 38. The task of this phase is to develop the marketing and engine details. A. Idea Generation B. Idea Selection C. Concept Development and Testing D. Prototype and Market Testing D 39. The tasks of this phase is to develop a physical prototype and test it in a typical usage situation. A. Idea Generation B. Idea Selection C. Concept Development and Testing D. Prototype and Market Testing C 40. It is a fundamental function of channels is the physical distribution of the product. A. Transactional Function B. Facilitating Functions C. Logistical Functions D. Functions C. 41. It is a transactional and logistical functions such as financing, promoting, and servicing and supporting the installed base can be the most valuable and the hardest-to-bypass functions that channel members perform. A. Functions B. Logistical Functions C. Facilitating Functions D. Transactional Functions B 42. Many companies set high prices for an innovation at the beginning of the lifecycle and targeting price insensitive segments. A. Building and protecting market share B. Market skimming C. Market penetration D. Product positioning C 43. It entails setting a relatively low price and accepting that lower unit margin in order to gain market share rapidly. A. Building and protecting market share B. Market skimming C. Market penetration D. Product positioning C 44. Which of the following is not an important concept that can shape a pricing strategy? A. Razorblade Pricing B. Premium Pricing C. Product Development D. The Value Map B 45. These channels require investment in selling and account management, but do not require large capital investments and are generally cheaper to establish. A. Multiple Channels B. Channel Ownership C. Channel Control D. Hybrid Channels C 46. It is a very useful tool for brand positioning. In this tool, customers are asked to rate alternatives with regard to a number of specific attributes. A. Perceptual Map B. Positioning Statements C. Semantic Scales D. Value Map A 47. It is a graphical visualization of customer’s perceptions of products or brands. A. Perceptual Map B. Positioning Statements C. Semantic Scales D. Value Map B 48. The collections of products and businesses are referred to as: A. Product Collection B. Product Portfolios C. Product Folder D. Product Files D 49. A positioning decision every company makes or should make is how to locate the product in the customer's mind regarding the two cardinal buying criteria of overall quality and price. A. Perceptual Map B. Positioning C. Semantic Scales D. Customer Value Map A 50. One of the earliest portfolio models and was developed by The Boston Consulting Group in the 1960s. A. BCG Matrix B. BCG Framework C. BCG Model D. BCG Map D 51. A second framework for managing and prioritizing multiple products or SBUs within the single firm's assortment A. BCG Matrix B. Portfolio C. BCG Model D. GE/McKinsey Portfolio Planning Grid A 52. Is a smaller group of people within a broad audience that share similar characteristics, behaviors, or needs. A. Target Segment B. Perceptual Map C. Positioning Statement D. Semantic Scale C 53. Is a description of a product or service, its target audience, and how it meets a market need A. Target segment B. Value Map C. Positioning Statement D. Customer Value Map D 54. is a popular method of product and pricing research that uncovers consumers' preferences, which is useful when a company wants to select product features. A. Experiment B. Syndicate Sources C. Perceptual Maps D. Conjoint Analysis B 55. What is the primary goal of using a perceptual map? A. To evaluate financial data from competitors B. To identify gaps in customer perceptions for repositioning C. To determine investment opportunities across SBUs D. To analyze operational efficiency within a business A 56. What is a benefit of using a detailed customer segmentation model? A. It helps identify untapped markets for tailored services B. It guarantees lower operational costs in all seasons C. It eliminates the need for emotional branding strategies D. It creates universal pricing strategies across all regions B 57. What does a successful positioning strategy aim to achieve? A. Increase market size by targeting unrelated audiences B. Establish a unique and desirable space in the customer’s mind C. Lower operational costs in competitive industries D. Focus on reducing competition by matching price points B 58. What does the "diffusion of innovations" refer to? A. The process of creating new products. B. The speed at which a truly new product spreads through a market. C. The stages a consumer goes through when adopting an innovation. D. The impact of customer feedback on product development. C 59. In the context of customer value and product innovation, how is value defined? A. The total cost of production minus the selling price. B. The difference between the price and the quality of a product. C. What customers get adjusted for what they give, or relative performance adjusted for relative price. D. The market share of a product compared to its competitors. C 60. The adoption process of an innovation includes: A. The marketing strategies used to promote the product. B. The financial analysis of the product's profitability. C. Stages that a consumer moves through on their way to adopting the innovation. D. The competitive analysis of similar products in the market.