marketing 3

Question 1

Product Benefit is

Answer 1

The need for satisfying qualities of a product

Question 2

Tangible

Answer 2

A object that exists physically and can be touched
A good
Examples: phones, shoes

Question 3

Intangible

Answer 3

Something that exists but is not physical and cannot be touched
A service
Example: Disney plus subscription, car wash

Question 4

Market research indicates that consumers want a new product or a modification of an existing one.
This happens in the stage of:

Answer 4

Idea Generation

Question 5

Testing of consumer reaction to the new idea and competitive situation in the market.

This happens in the stage of:

Answer 5

Idea Screening

Question 6

Prototype is developed
Marketers may test-market the prototype.

This happens in the stage of:

Answer 6

Concept Development

Question 7

Establish the markets to target
Development of a marketing plan to implement a marketing strategy.

This happens in the stage of:

Answer 7

Market Strategy

Question 8

With the finance department, marketers will calculate the cost of advertising, promotion, distribution, transportation, storage, packaging and all other expenses The company must feel that they can product and sell the product at a competitive price and make profit .

This happens in the stage of:

Answer 8

Feasibility Study

Question 9

Product design includes all the details that the target market would want in the product
Also, warranty, packaging, etc.

This happens in the stage of:

Answer 9

Product Design

Question 10

Marketers must test consumers’ acceptance of the product using samples, surveys, etc. If responses are positive, the company will launch the product.

This happens in the stage of:

Answer 10

Test Marketing

Question 11

The product then enters the product life cycle

This happens in the stage of:

Answer 11

Market Entry

Question 12

stages of Product life cycle:

Answer 12

Introduction, Growth, Maturity, Decline

Question 13

Types of product Life Cycles

Answer 13

Traditional, Niche, Fad Product, Seasonal.

Niche usually stay consistent and lowkey throughout all stages

Fad rises only during Intro stage, barely makes it to growth and maturity

Seasonal rises when its time comes only (Christmas trees, Beachballs)

Question 14

Five Characteristics of Packaging:

Answer 14

Packaging: Packaging contains the product or ingredients
Products are easier to ship, store, and display when in packages

Protection: Packages are intended to protect products from breakage or contamination
Examples: Tylenol, Maple Leaf Prime Chicken

Information: The law requires that labels on food packages list the following:
Ingredients (in order by what weighs the most to the least)
Nutritional information
Name and address of the manufacturer
Quantity
Bilingual information
Companies may voluntarily include the following items:
UPC barcode, storage instructions, best-before date, health warnings, cooking instructions, recipes, coupons, etc

Branding: Packaging is often referred to as a salesperson
This is especially true for packaged
A unique package shape, or a proprietary design, can be protected by trademark laws. For example, Coca-Cola’s Hobble Skirt bottle design

Promotion: Occasionally, the package may be the reason why a consumer purchases a product
For example:
Packages may have tie-ins with movies or special events
Packages may be designed as limited editions to make it collectible
Packages may be designed as environmentally friendly

Question 15

What is a brand, what are the three aspects that make up a brand?

Answer 15

A brand is a identity,

Brands are created by using…
A name, A logo A slogan

Question 16

What are the three goals of branding?

Answer 16

Create a unique brand identity

Create a positive image of brand

Develop brand loyalty

Question 17

What is Brand Loyalty

Answer 17

Is a situation in which the customer will buy only a certain brand of a product

Question 18

What could I get to protect my brand?

Answer 18

Trademark ™ can protect a combination of words, sounds, or designs used to distinguish your goods or services from those of others.

Question 19

Six elements of branding

Answer 19

Voice: Consistent personality and emotion that you infuse into your company’s communications.
Consists of the words and language you use, and the personality and image

Identity: Aspects of your company that are recognizable in the eyes of consumers
Refers to a company’s colour palette, logo, and fonts/lettering, packaging.

Promise: How you articulate the unique value that your business provides customers with
Includes the company’s vision and mission statements, brand principles and value proposition

Values: The guiding principles and beliefs that your company stands for
Articulating your values and aligning your brand with something bigger

Targeting: Determining what segment of the market you want to reach
Identifying the characteristics of your target customer

Positioning: Where your brand stands in the market in the eyes of consumers
How your brand differs from industry competition

Question 20

What occurs in the communication process in promotion?

Answer 20

When a company wants to tell people about a product or service, they send a message through a special way (like advertising or social media). The message goes to the people the company wants to reach (like you!), and the goal is to make you interested and want to buy the product or service

Question 21

Product Promotion

Answer 21

Is marketing communication that focuses on the product and selling the product. Promotions for breakfast cereals, a band concert, and safety messages are product promotions.

Question 22

Institutional promotion

Answer 22

focuses on the image of the organization, rather than specific products. The goal is to create positive feelings about the organization, which can increase interest in their products.

Question 23

Why do Businesses Use Sales Promotion?

Answer 23

Build Traffic
Motivate staff
Introduce a new product or generate brand trial
Clear old or discontinued stock

Question 24

Advertising vs Promotion

Answer 24

Advertising
* Creates brand value over time
* Adds intangible value
* Contributes to longer term profitability

Promotion
* Creates immediate action
* Adds tangible value
* Contributes to short-term profitability

Question 25

Customer Behaviour Drivers

Answer 25

Urgency (“Act now.”)

Availability(“ It won’t last, so don’t miss out”)

Exclusivity (“ This is an offer just for you”)

Question 26

70-20-10 Rule

Answer 26

Social Media Marketing should be 70% informational, 20% emotional, 10% promotional

Question 27

6 Essentials of a successful social media marketing strategy

Answer 27

Knowledge of your audience
Brand identity
Content Strategy
Analytics
Regular activity
Inbound approach

Question 28

Key Performance Indicators of Social Media

Answer 28

Reach ( the # of ppl who saw your post )
Impressions ( the # of times your post was seen )
Engagement ( how many likes, shares, comments, etc… )
Conversions ( clicks, follows, forms filled out… )

Question 29

3 Types of Prices

Answer 29

List Price: The established price of a product, as established (listed) in a catalogue, on a price tag, or on a price list

Market Price: The actual price you pay for a product, after any discounts or coupons are deducted

MSRP Price: The price the manufacturer recommends to a retailer

Question 30

5 of the factors that affect price

Answer 30

Company goals
Expenses
Competition
Government regulations
Supply and demand

Question 31

Price competition vs non-price competition

Answer 31

Price Competition
A strategy that implies reducing prices to compete with rivals

Non-price competition
Involves encouraging consumers to buy a good by making it appear different or better to the other products
Achieved through: advertising, branding, location packaging, loyalty programs

Question 32

Price wars

Answer 32

Where two or more firms try to undercut each other. Often seen in airline industry.

Question 33

Price fixing

Answer 33

Competitors get together to set (fix) prices at very high or very low prices. Canadian bread industry.

Question 34

Price discrimination

Answer 34

Charges customers different prices for the same product or service based on what the seller thinks they can get the customer to agree to.

Question 35

Elastic vs In-elastic demand

Answer 35

Elastic demand
Demand changes greatly based on price changes. Ex: luxury items, certain food and bevs change prices based on demand.

In-elastic demand
Demand changes very little based on price changes. Ex: Gas and prescription drugs as demand often remains constant despite price changes.

Question 36

Five common pricing objectives

Answer 36

Maximise profit - charge as high as possible
Maximise sales - Low price, high volume
Increase market share - Take sales away from competition
Meet competition - compare to competitors
Maximise ROI - Positive return on investment

Question 37

ROI formula, calculate ROI

Profit and Invesments

Answer 37

Formula: ROI = profit/investment x 100

Example: A company spent 100,000 on marketing throughout the previous fiscal year. Their marketing campaign has directly resulted in $12,000 of profit for the company. What is the ROI on their marketing campaign so far?

ROI = profit/investment x 100
= $12,000 / $100,000
= 0.12x100
= 12%

Question 38

Pricing Strategies

Answer 38

Price Skimming

The producer sets a high introductory price to attract buyers with a strong desire for the product and the resources to buy it. Then gradually reduces price to attract the next layers of the market.
Examples: iPhones, PS5

Negotiated Pricing

When both the buyer and seller of a product discuss the price of a good or service
Two roles that arise: buyer and seller
Examples: real estate, food market

Penetration Pricing

Used to attract customers to a new product or service by offering a lower price during its initial offering -> helps penetrate the market and attract customers away from competitors
Examples: Rogers plan deal

4. Super Sizing

Super sizing is offering a large amount of product for a small increase in the price
The consumers pays a little extra gets what seems to be a lot more
Example: Large fries, large coke