Concepts In Marketing Flashcards
_________ involves focusing on the needs and wants of customers so the organization can distinguish its products from competitors offerings.
Marketing
_________ process of communicating the value of a product or service.
Marketing
________means to price the product high to increase profits until there is more competition.
Skimming
_________ pricing can be applied when you want to enter a market and price your product lower than the perceived market price.
Penetration pricing
_________ is pricing products below the normal markup or even below cost to attract customers to a store where they would not otherwise shop. Referred to as a loss leader.
Leader pricing
________ means grouping two or more related products and pricing them as a single product.
Bundling
_________strategy of raising the price of a product so consumers will perceive it as being of higher quality, status or value.
Prestige pricing
_________involves setting the price of a product according to competitor prices, to use price as one of the features that differentiates the product.
Competitive pricing
__________any paid form of non-personal promotion by an identified sponsor that is delivered through traditional media channels.
Traditional advertising
________a face-to-face presentation to a prospective buyer, often based on long-term relationships.
Personal selling
_________marketing activities that stimulate consumer buying, including coupons and samples, displays, shows and exhibitions, demonstrations, and other types of selling efforts.
Sales promotion
_________the linking of organizational goals with key aspects of the public interest and the development of programs designed to earn public understanding and acceptance.
Public relations
____________involves carefully coordinating all promotional activities to produce a consistent, unified, customer focused message.
Integrated marketing communications (IMC)
____________ includes channels such as physical locations, e-commerce, mobile applications, and social media.
Omnichannel communication
Name the three types of vertical marketing systems.
Corporate, contractual and administered.
_____________ a single company owns all levels of production and distribution.
Corporate vertical marketing system
_____________ a formal agreement between the levels that coordinate the distribution process.
Contractual marketing system
__________one member of the channel system effectively controls the system out of sheer power and size. It can determine the activities of the other channel levels without an ownership stake.
Administered vertical marketing system.
__________analysis considers threats and worst case scenarios during the planning process, allowing organizations to take steps to avoid them or minimize the impact if they occur.
SWOT
__________intent is to help companies make good portfolio management decisions.
BCG matrix
_______ a product or business with low market share in a mature industry. No room for growth, suggesting no new funds should be invested in it.
Dog
_______ a product or business that has high market share and is in a slow growing industry. It’s bringing in more money than is being invested in it, but it does not have much growth potential.
Cash cow
________ a product or business that has low market share currently but is in a growing industry. It is consuming financing and creating a low rate of return for now, but the direction is unclear. Has potential, but close monitoring is needed to determine the direction.
Question mark
_____________ has a high market share in a fast growing industry. This kind of product or business is poised to bring a strong return on the funds invested. It also has the potential to become a cash cow at the end of the product cycle, funding future investments.
Star
List Porter’s 5 forces
Threat of New Entrants
Threat of Substitute Products/Services
Rivalry
Bargaining Power of Buyers
Bargaining Power of Suppliers
___________ what an organization will do to achieve its objectives.
Strategies
___________ actions a company implements to affect the controllable elements of the strategy.
Tactical plans
___________ process of systematic gathering, recording, and analyzing data about customers, competitors, and the market.
Marketing research
___________ growth strategy uses current products and current markets with the goal to increase market share. Occurs when a company infiltrates a market in which current products already exist.
Market penetration
____________ growth strategy uses existing products to capture new markets. Targets new customers and new segments to expand the sales base.
Market development
__________this growth strategy uses new products in the existing market.
Product development
_________ creates completely new opportunities for the company by creating new products and new markets. Seeks to increase profitability through greater sales volume obtained from new products and new markets.
Diversification
A manager seeks to help the organization make good portfolio management decisions. Which tool should the manager use for this process?
A. BCG matrix
B. Acid test ratio
C. SWOT analysis
D. Porter’s five forces
A. BCG matrix
A marketer selects the use of banner ads in order to achieve higher sales revenue. Which component of the marketing planning process is being represented by this action?
A. Tactic
B. Vision
C. Mission
D. Strategy
A. Tactic
A manager is considering the economics of an industry’s factors that determine how competitive, attractive, and profitable the market is for the company’s products. Which planning tool is being used by this manager?
A. BCG matrix
B. SWOT analysis
C. Porter’s five forces model
D. Pro forma income statement
C. Porter’s five forces model
Which component of the marketing planning process utilizes situation analysis to address the needs of the target customer?
A. Threats
B. Strategy
C. Weaknesses
D. Opportunities
B. Strategy
What is a limitation of primary data sources?
A. Less flexibility in data collection
B. Requires expertise in data collection
C. Data may have changed during the period
D. Fails to directly address the needed information
B. Requires expertise in data collection
Name the 5 steps in the customer life cycle
Reach
Acquisition
Conversion
Retention
Loyalty/advocacy
A beverage company purchases advertising to introduce a new line of energy drinks. Which stage of the customer life cycle does this action illustrate?
A. Acquisition
B. Reach
C. Conversion
D. Retention
B. Reach
A salesperson for a medical equipment company provides marketing materials for the practice manager at a doctor’s office. After 3 months, the practice manager orders 3 products. Which stage of the customer life cycle does this series of actions illustrate?
A. Reach
B. Loyalty
C. Acquisition
D. Conversion
D. Conversion
A company sends an email to its customers with a 20% off coupon, if they make a purchase within the next 48 hours. Which stage of the customer life cycle does this action illustrate?
A. Retention
B. Acquisition
C. Reach
D. Conversion
A. Retention
An individual clicks on a link to request more information about a product. A salesperson emails the prospect information and pricing and then offers to call with more information. Which stage of the customer life cycle does this series of actions illustrate?
A. Conversion
B. Reach
C. Retention
D. Acquisition
D. Acquisition
____________ sales directly to the individuals who consume a finished product for personal use.
Business to consumer transactions (B2C)
___________ sales to another company that consumes the product or services as part of operating the business or uses the product in the assembly of the final product it sells to consumers.
Business to business transactions (B2B)
_________ process of dividing the market into subgroups of consumers.
Market segmentation
__________ selection of a segment or segments of the market on which marketers will focus.
Target
Which example illustrates a segment?
A. Steel, coal, and fiberglass
B. Printed marketing materials
C. Consumers born between 1974 and 1992
D. Social media marketing posts
C. Consumers born between 1974 and 1992
_________ segmenting markets by region of the country, city or county size, market density, or climate.
Geographic segmentation
__________ uses categories such as age, education, gender, income, and household size to differentiate among markets. Easiest information to obtain, most common.
Demographic segmentation
_________segmentation by personality or lifestyle. Common activities, interests, and opinions are grouped together and given a lifestyle name.
Psychographic segmentation
A mobile phone carrier markets pricing plans to its customers differently depending on how much data the customers use each month. What type of segmentation strategy is the mobile phone carrier using?
A. Geographic
B. Demographic
C. Psychographic
D. Product-related
D. Product-related
____________ targeting strategy where a company provides separate offerings to each different market segment that it targets.
Differentiated marketing
_____________targeting strategy involving a single offer and marketing mix for all segments, also called mass marketing.
Undifferentiated marketing
__________targeting strategy focused on a very limited, specific segment(s) of the market, also called niche marketing.
Concentrated marketing.
________targeting strategy that focuses narrowly on catering to the needs of individuals or very small segments in a targeted geography.
Micromarketing
_________ targeted micromarketing focused on the needs of individuals, sometimes call mass customization or one-to-one marketing.
Individual marketing
_________focusing on very small segments in a given geography.
Targeted marketing
What are the 6 steps of the consumer decision process?
- Problem and opportunity
- Search
- Evaluation
- Decision
- Buy
- Post-purchase
___________both parties look for ways to integrate their goals under a larger umbrella. Win/Win
Integrative approach
___________starting on small details and working upward
Inductive approach
____________an organization reorders a product or service without modifications
Straight rebuy
_________an organization reorders a product or service with modifications.
Modified rebuy
_________an organization considers buying a product or service for the first time.
New task
