Marketing Flashcards
Services are produced and consumed simultaneously. This is referred to as ___________ .
Perishability
Intangibility
Lack of ownership
Inseparability
Inseparability
production and consumption cannot be seperated
Old Spice sponsors college sports and motor sports to highlight product relevance and it samples among its target audience, 16- to 24-year-old males. This fills which of the following event objectives?
To create or reinforce perceptions of key brand associations
To permit merchandising or promotional opportunities
To create experiences and evoke feelings
To identify with a particular target market or lifestyle
To identify with a particular target market or lifestyle
Service quality depends on who provides them, when and where, and to whom. Thus, services are highly ________.
inseparable
tangible
intangible
variable
Variable
Which of the following is not a traditional approach to establishing marketing communications budget?
Efficiency method
Percentage-of-sales method
Objective-and-task method
Competitive parity method
Efficiency method
only one not mentioned in establishing budget step
Consumers are less price sensitive when ________.
they change their buying habits regularly
there are many substitutes and competitors in the market
they are buying high-cost items
price is only a small part of the total cost spent on the product over its lifetime
price is only a small part of the total cost spent on the product over its lifetime
The __________________________ concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependence.
marketing
selling
production
holistic marketing
holistic marketing
The beginning communications objective associated with a new-to-the world product, like an electric car, is always ________.
developing a favourable brand attitude
identifying the target audience
generating brand awareness
establishing category need
Extra: List all communication objectives in order?
establishing category need
Determine communication objectives
- Establish need for category
- Build brand awareness
- Create excitement/interest
- Build brand attitude/desire
- Influence brand purchase intention
- Build loyalty
Which of these is not considered a key advantage of experiments?
Replicability of findings
Control over variables
May capture cause-and-effect relationships
Richness of data
Extra: List all advantages and disadvantages of experiments as a research approach?
Richness of data
(doesn’t mean disadvantage, just not in the table)
Advantages:
May capture cause and effect relationships
Control over variables
Replicability of findings
Disadvantages:
Often artificial
Ethical concerns
Often costly and time consuming
Within a buying centre, __________________ may help shape product specifications, but they play their major role in selecting vendors and negotiating. They have formal authority to select the supplier and arrange the purchase terms.
influencers
initiators
users
buyers
Extra: List and define all the roles of a buying centre?
buyers
Buying Centre:
- Initiator: Recognizes that a purchase needs to be made
- User: Individual(s) who will ultimately use the product
- Influencer: Affects decision by giving advice and sharing expertise
- Decider: Makes the final purchase decision, decides on product requirements and suppliers
- Approver: Authorises the proposed actions of deciders or buyers
- Buyer: Executes the purchase decision
- Gatekeeper: Controls flow of information to others in the organization
The AIDA model is directly associated with _______________ .
integrated marketing communications
macro-model of communication process
differentiated pricing
micro-model of communication process
Extra: What are the components of the AIDA model?
micro-model of communication process
AIDA Model:
- Attention
- Interest
- Desire
- Action
Communication tools vary in cost-effectiveness at different stages of buyer readiness. Which of the following statements is correct?
Advertising and publicity play the most important roles in the awareness-building stage.
Customer comprehension is primarily affected by personal selling.
Reordering is affected mostly by advertising and publicity.
Customer conviction is influenced mostly by advertising and publicity.
Advertising and publicity play the most important roles in the awareness-building stage.
The three C’s model for price setting includes ________.
costs, customer equity, and company demand
capital items, costs, and customers’ assessments of unique features
capital items, costs, and customer churn
costs, competitors’ prices, and customers’ assessments of unique features
costs, competitors’ prices, and customers’ assessments of unique features
John set up an automatic reordering system for his company’s office supplies to save time (because the firm always orders the same thing from the same supplier and has it delivered the same way). This is an example of a _____________________ buying situation.
technical rebuy
modified rebuy
new task
straight rebuy
Extra: Define the 3 rebuys?
straight rebuy
Straight Rebuy - The purchasing department reorders supplies, e.g. office supplies and bulk chemicals, on a routine basis and chooses from suppliers on an approved list.
Modified Rebuy - The buyer wants to modify certian things, e.g. specifications, prices, delivery requirements etc). This involves additional participants on both sides. You can imagine the +ve and -ve of this on both sides.
New Task - A buyer purchases a product or service for the first time, e.g. office building, security system. A higher cost/risk of the purchase means an increase in work, participants etc that has to go in to making sure its right, hence, lengthier process.
The first step in setting pricing policy is ________.
analysing competitors’ costs, prices, and offers
estimating costs
determining demand
selecting the pricing objective
Extra: List all the steps to determine price?
selecting the pricing objective
Steps to determine price:
- Select Pricing Objective
- Estimate Demand
- Determine Costs
- Analyse competitors’ costs, prices and offers
- Select a Pricing Method
- Select the final Price
A company’s _______________________, or proportion of company advertising of that product to all advertising of that product, is a key factor for effectiveness of advertising.
share of mind
share of heart
share of market
share of voice
Extra: Recite the formula for measuring sales impact of advertising?
share of voice
Competitive-parity budget method - to achieve share of voice parity with competitors
Formula for measuring sales impact of advertising:
Share of expenditures -> Share of voice -> Share of mind and heart -> Share of market
Which of the following is not a role within a buying centre?
User
Gatekeeper
Influencer
Analyst
Extra: List and define all the roles of a buying centre?
Analyst
Buying Centre:
- Initiator: Recognizes that a purchase needs to be made
- User: Individual(s) who will ultimately use the product
- Influencer: Affects decision by giving advice and sharing expertise
- Decider: Makes the final purchase decision, decides on product requirements and suppliers
- Approver: Authorises the proposed actions of deciders or buyers
- Buyer: Executes the purchase decision
- Gatekeeper: Controls flow of information to others in the organization
Which of the following lists covers the key criteria of effective segmentation?
measurable, superior, accessible, differentiable, affective
meaningful, superior, accessible, differentiable, actionable
measurable, substantial, accessible, differentiable, actionable
meaningful, substantial, adequate, differentiable, actionable
Extra: Define each criteria?
measurable, substantial, accessible, differentiable, actionable
Effective Segmentation Criteria:
- Measurable: that the size, purchasing power and characteristics of the segments can be measured.
- Substantial: that the segments are large and profitable enough to serve.
- Accessible: that the segments can be effectively reached and served.
- Differentiable: that the segments are distinguishable and respond differently to marketing programmes.
- Actionable: that effective programmes can be formulated for attracting and serving the segments.
The ________ is the main utility a customer receives from a purchased product; for example, communication in relation to a smartphone.
actual product
augmented product
potential product
core benefit/value
core benefit/value
Communication - Smartphone
Transportation - Car
Entertainment - Netflix
The lowest level, according to Maslow s hierarchy of needs, is _________ .
Social needs
Self-actualisation needs
Safety needs
Physiological needs
Physiological needs (i.e. food, water, shelter)
Lowest level of pyramid = most important
When the Manchester Art Gallery separates its consumers by whether they were culture oriented or outdoor oriented for its new exhibit on art that used natural materials, they are using ___________________ segmentation.
demographic
personality
social class
psychographic
psychographic
Definition: Demographic research that studies population groups with respect to psychological attributes, such as values or attitudes, as for marketing purposes.
List all advantages and disadvantages of surveys as a research approach?
Advantages:
Cheap
Very reliable and generalisable if done right
Replicability of findings
Disadvantages:
Potential survey/measurement errors
Often low response rates
List all advantages and disadvantages of using observations as a research approach?
Advantages:
Limited subject bias
Relates to real behaviour
Disadvantages:
Expensive
Often limited information
Difficult to control unforeseen factors
List all advantages and disadvantages of focus groups as a research approach?
Advantages:
Richness of data
Fast data collection
Disadvantages:
Limited generalisability
Relies on interpretation skills of researcher
Difficult to replicate findings
List all advantages and disadvantages of behavioural and big data as a research approach?
Advantages:
Relates to real behaviour
Limited subject bias
Very reliable
Disadvantages:
May violate customer privacy
May be difficult to handle
Need specialised analysts
________________ is the study of how individuals or groups buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants.
Consumer behaviour
A short definition of marketing is “meeting needs profitably”?
True
“The management process of identifying, anticipating and satisfying customer requirements profitably”
Porter’s Five Forces is the most common technique used to conduct a product portfolio analysis?
False
The most common is BCG matrix
SWOT involves analysis of an organization’s Strengths, Weaknesses, Opportunities and Threats?
True
Marketers can control the external environment in which their organizations operate?
False.
They cannot control anything external.
The highest level, according to Maslow s hierarchy of needs, is _________ .
Social needs
Self-actualisation needs
Safety needs
Physiological needs
Self-actualisation needs (i.e. self development and realisation)
A distribution channel includes distributors, wholesalers, retailers, and agents that display, sell, or deliver the physical product or service(s) to the buyer or user?
True
The production concept is one of the newest concepts in business?
False
One of the oldest
The marketing concept stresses on finding the right customers for the company’s products?
False
“The marketing concept focuses on a total company effort to provide exchange and value for customers, clients partners and society”
A firm’s tangible offering to the market includes product quality, design, features, and packaging?
True
“Offerings to the market, which includes the product quality, design, features and packaging”
A SWOT analysis involves analysing the possible opportunities and threats that can come from the market?
True
Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions?
True
Car matrix of price vs quality
The buying process starts when the buyer decides to or actually enters a store or service provider’s facility?
False
“The buying process starts long before the actual purchase and has consequences long afterwards.
Establishing and communicating the distinctive benefit(s) of the company’s market offering for each target segment is called ________?
Market positioning
The process of selecting one or more market segments to enter is called market ________?
Market Targeting
When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation?
Psychographic lifestyle
Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and pre-schooler?
Age
Newly-weds in the United States buy more in the first six months than an established household does in five years. Newly-weds are an example of a(n) ________ segment.
Life stage (stage in life)
________ is the science of using psychology and demographics to better understand consumers?
Psychographics
Dennis requests his father to buy him a PlayStation® for his birthday. With respect to consumer decision roles, which role is Dennis currently playing?
Initiator
Mothers-to-be are potential users who will turn into heavy users of infant products and services. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________?
User status
Behavioural, i.e. first time, regular etc
If a marketer is seeking to segment a business market, which of the following variables is generally felt to be the most important?
Demographic variables
Urgency, specific application, and size of order are examples of ________ segmentation variables for business markets?
Situational factors
In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. This is an example of ________?
Macrosegmentation
A marketer is interested in segmenting a business market on ________ if the marketer intends to segment the market based on industries and geographical areas to serve.
Demographic variables
A marketer is interested in segmenting a business market based on technology and customer capabilities. These criteria illustrate which of the following major segmentation variables?
Operating variables
What are the 3 levels of a product?
Main - Core benefit - the need or want that the product satisfies.
Secondary - Basic/Expected Product - the attributes that combine to deliver customer value.
Tertiary - Augmented/Potential Product - additional customer services and benefits that exceed customer expectations. Also includes potential future upgrades (think Tesla driverless)
What are the 4 issues in Service Process Design?
- The degree of technology utilised - How much human and how much technological interaction is there?
- The degree of visibility - How much service is front office (what the customer can see) and how much is back office?
- The degree of customisation - Ability to meet a customers individual requirements, e.g. would you like your steak med rare?
- The degree of accessibility - The ease at which a customer can interact with a service, e.g. are there any queues?
What are the 3 Issues in Service Process Delivery?
- Duration - i.e. task time, total process time, consumer contact time, waiting time etc
- Efforts of employees - The ability of service personnel to interact with customers
- Reliability - Consistency and dependability of a service. Customers want to receive expected outcomes.
List the 7 steps of the Service Process Blueprint?
- Identify processes
- Sequencing
- Visibility
- Timing
- Tolerance
- Fail-point identification
- Profitability
What are the 4 P’s?
Product
Price
Place
Promotion
(5th can be people)
What are the 4 Types of Services?
Intangible - Services cannot be seen, tasted, felt, heard or smelled before purchase.
Inseparable - Services cannot be separated from their providers.
Variability - Quality of services depends on who provides them and when, where and how.
Perishability - Services cannot be stored for later sale or use.
List the 4 Brand Development Strategies
Line extension
Brand extension
Multi-brands
New-brands
