H4

Question 1

Marketing

Answer 1

the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

Question 2

Relationship marketing:

Answer 2

creating, maintaining and enhancing long-term relationships with individual customers as well as other stakeholders for mutual benefit. Why?

Question 3

Mass customization

Answer 3

a company can make a product or deliver a service in response to a particular customer’s need in a cost-effective way.
It is more cost-effective to retain existing customers than to acquire new ones

Question 4

Three levels of company messages

Answer 4

1. Corporate: various aspects of a firm’s business practices and philosophies, such as its mission, philanthropies, corporate culture, and ways of responding to inquiries, all have dimensions that communicate with customers and other stakeholders and affect relationships
2. Marketing: consumers make inferences about a product on the basis of elements such as its design, appearance, performance, pricing, service support, and where and how it is distributed
3. Marketing communications: the goal is to communicate with one voice, look, and image across all the marketing communications functions and to identify and position the company and/or the brand in a consistent manner

Question 5

Buzz marketing

Answer 5

when a brand hires trendsetters (not celebrities) in various communities to spread buzz about a particular product, e.g. by giving a number of local influencers in various regions a pair of new sneakers

Question 6

Brand identity

Answer 6

a combination of many factors including the name, logo, symbols, design, packaging, and performance of a product or service as well as the image or type of associations that comes to mind when consumers think about a brand. It encompasses the entire spectrum of consumers’ awareness, knowledge, and image of the brand as well as the company behind it

Question 7

Brand equity

Answer 7

the commercial value of a brand that derives from a consumer’s perception of the brand name of a particular product or service, rather than from the product or service itself

Question 8

Direct marketing

Answer 8

organizations communicate directly with target customers to generate a response and/or a transaction. It involves a variety of activities, including database management, direct selling, telemarketing, and direct- response ads through direct mail, the Internet, and various broadcast and print media

Question 9

Direct-response advertising

Answer 9

a product is promoted through an ad that encourages the consumer to purchase directly from the manufacturer, e.g. direct mail

Question 10

Sales promotion

Answer 10

those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales.

Question 11

Sales forces (two categories)

Answer 11

• Consumer-oriented sales promotion: targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, contests etc. These promotional tools encourage consumers to make an immediate purchase and thus can stimulate short-term sales
• Trade-oriented sales promotion: targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. E.g. promotional and merchandising allowances, price deals etc.

Question 12

Publicity

Answer 12

refers to nonpersonal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services → is usually perceived as credible by consumers because the source is unbiased

Question 13

PR

Answer 13

the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance. The goal is to establish and maintain a positive image of the company among its various publics

Question 14

Personal selling

Answer 14

a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea (e.g. telephone sales)

Question 15

Promotional management

Answer 15

coordinating the promotional-mix elements to develop a controlled, integrated program of effective marketing communications

Question 16

Promotional plan

Answer 16

provides the framework for developing, implementing, and controlling the organization’s integrated marketing communications programs and activities

Question 17

Marketingplan

Answer 17

a written document that describes the overall marketing strategy and programs developed for an organization, a particular product line, or a brand.

Question 18

5 basic elements marketingplan

Answer 18

1. A detailed situation analysis that consists of an internal marketing audit and review and an external analysis of the market competition and environmental factors
2. Specific marketing objectives that provide direction, a time frame for marketing activities, and a mechanism for measuring performance
3. A marketing strategy and program that include selection of target market(s) and decisions and plans for the four elements of the marketing mix
4. A program for implementing the marketing strategy, including determining specific tasks to be performed and responsibilities
5. A process for monitoring and evaluating performance and providing feedback so that proper control can be maintained and any necessary changes can be made in the overall marketing strategy or tactics

Question 19

Internal analysis

Answer 19

assesses relevant areas involving the product/service offering and the firm itself → advantages and disadvantages of performing the promotional functions in-house as apposed to hiring an external agency + assesses the strengths and weaknesses of the brand/product/service

Question 20

External analysis

Answer 20

focuses on factors such as characteristics of the firm’s customers, market segments, positioning strategies, and competitors → what are the firm’s (in)direct competitors, what is the target market etc.

Question 21

Marketing objectives

Answer 21

what is to be accomplished by the overall marketing program. They are often stated in terms of sales, market share, or profitability.

Question 22

Two important aspects of an advertising program

Answer 22

• Creative strategy: determining the basic appeal and message the advertiser wishes to convey to the target audience
• Media strategy: determining which communication channels will be used to deliver the advertising message to the target audience