Exam 3

Question 1

Technology helps marketers lower cost and deliver value.

Answer 1

True

Question 2

What is People marketing?

Answer 2

Services produced and consumed at the same time, using people to physically market

Question 3

Is perceived value as important as actual value?

Answer 3

Yes, everything is based on the consumer. So what they perceive may or may not benefit the company.

Question 4

Event Marketing

Answer 4

Marketing/Sponsoring athletic, cultural, or charitable events (olympics, Super bowl, etc.)

Question 5

Idea Marketing

Answer 5

Public and private orgs marketing ideas meant to change the way people think or act (buckling seatbelt, recycling, donate blood, etc.)

Question 6

Is it true that delivering value to customers is the only way to achieve long-term profitability?

Answer 6

No

Question 7

Demographic segmentation

Answer 7

Dividing the market into smaller groups based on measurable characteristics about people (age, income, ethnicity, gender)

Question 8

Primary data vs. Secondary data

Answer 8

Primary- New data that marketers compile for a specific research project

Secondary- Existing data that marketers gather or purchase for a research project

Question 9

Where do Consumer Markets direct their effort?

Answer 9

To people who are buying products for personal consumption (food, toothpaste, clothes)

Question 10

Cognitive Dissonance

Answer 10

Consumer discomfort with a purchase decision, typically for a higher priced item

Question 11

Ownership Utility

Answer 11

Satisfies wants by smoothly transferring ownership of goods and services from seller to buyer

Question 12

Customer Loyalty

Answer 12

when customers buy a product from the same supplier again and again

Question 13

Geographic segmentation

Answer 13

Dividing the market based on where consumers live (easier to find surfboards in hawaii than nebraska)

Question 14

How do you over-promise a customer?

Answer 14

by promising things you may not be able to deliver

Question 15

As a marketer, what can you acheive from customer loyalty

Answer 15

valuable feedback, customers that may require less service, they may refer friends, competitive edge, helps you learn more about customer target.

Question 16

Relationship Era

Answer 16

focus on customer relationships, they may advocate for business in the future.

Question 17

SImilarities between demographic and psychographic segmentation?

Answer 17

Both target certain consumers. Either people with certain views on environment, etc (psychographic) or certain age groups/incomes (demographic)

Question 18

Two key aspects of producer quality

Answer 18

Quality level (how well the product performs its core functions)

Product consistency (how consistently the product delivers promised level of quality

Question 19

what is co-branding?

Answer 19

When est. brands from different companies join forces to market the same product (DQ making Girlscout flavors, SW Airlines and Seaworld w/ shamu planes)

Question 20

What constitutes dynamically continuous innovations?

Answer 20

marked changes to existing products. (cell phones, digital cameras), innovations that require some user learning for significant benefits

Question 21

brand extension

Answer 21

when brands launch products in different categories (Bic has pens, lighters, and razors). Sometimes brand extensions fail

Question 22

When does cannibalization occur in regard to a productr

Answer 22

When companies add lower priced items, they lose money because higher priced items won’t be bought as consistently

Question 23

Product Life cycle

Answer 23

a pattern of sales and profits that typically changes over time. helps marketers plan future for existing and new products.

1. Introduction- low sales and no profit. Company invests in awareness of product
2. Growth- sales rise, profits peak
3. Maturity- sales peak, profits decline.
4. Decline- Sales and profits decline due to technological change or change in consumer needs.

Question 24

.Does packaging have an impact in the customer decision-making process?

Answer 24

YES. consumers buy on impulse sometimes

Question 25

Unsought products

Answer 25

The goods and services that hold little to negative interest for consumers. (disability insurance, prepaid burial plots, giving blood)

Question 26

When does product diffusion happen?

Answer 26

When a product is new. 5 things:

Observability, Trialability, Complexity, Compatability, Relative advantage

Question 27

National Brands

Answer 27

aka Manufacturers’ brands, brands that the producer owns and markets. (brand name oreos)

Question 28

One benefit derived from licensing

Answer 28

More people will buy your product because of association (characters on cereal boxes)

Question 29

Trialability

Answer 29

How easily can consumers test out your product. This is why samples are given out & test driving cars.

Question 30

Sponsorship in relation to a business

Answer 30

When businesses are involved in events the consumers care about, it can provide millions of dollars worth of advertisement

Question 31

Product Line

Answer 31

a group of products closely related to eachother

Question 32

What items are included in a consumer promotion?

Answer 32

Promotional products, samples, coupons, rebates, displays

Question 33

Pure Good

Answer 33

products that do not include any services

Question 34

Product Mix

Answer 34

Total number of product lines and individual items sold by a single firm

Question 35

Breakeven Point

Answer 35

The number of units needed to be sold in order to make cost of production 0

Question 36

High/Low pricing

Answer 36

designed to drive traffic to retail stores by special sales on a limited # of products and highter everyday prices on others

Question 37

Multilevel Marketing

Answer 37

Hiring independent contractors to sell products to their personal network of friends & recruit new salespeople. (mary kay, pampered chef)

Question 38

Supply chain management (SCM)

Answer 38

Planning and coordinating the movement of products along the supply chain

Question 39

Odd Pricing Strategy

Answer 39

Practice of ending prices below even $ and cents to create a perception of a greater value to consumer

Question 40

What constitutes a supermarket in regard to its merchandise?

Answer 40

Offers a wide range of food items, plus limited nonfood items (Whole foods, trader joes)

Question 41

What contitutes a Warehouse Club in regard to its merch?

Answer 41

Sells discounted food and general merch to club members in a warehouse format. (Costco, Sam’s club)

Question 42

Can a business determine upfront how much money it needs to make for each item it sells?

Answer 42

Yes, Breakeven analysis

BP = FC/P-VC

Question 43

Everyday-Low Pricing (EDLP)

Answer 43

long-term discount pricing designed to achieve profitability through high sales volume (Walmart low prices)

Question 44

Do companies in pricing strategies express volume goals in terms of profitability?

Answer 44

No, they express volume goals in terms of Return on Investment (ROI) and Return on Sales (ROS) to build profitability.

Question 45

Composition of a true mode of Transportation

Answer 45

Factors to consider include (depending on needs of the business): cost, speed, dependability, flexibility, availability, and frequency of shipments.

Question 46

Makeup of members of a distribution channel and their functions

Answer 46

Retailers- distributors that sell directly to consumer (sbux, urban outfitters)
Wholesalers- buy products from producer and sell them to retailers, wholesalers, and business users

Ex. costco is both retailer and wholesaler