Marketing Mix

Question 1

is the core of the marketing mix and defines what will be priced, promoted, and distributed

Answer 1

product

Question 2

are often classified intofour groups related to different kinds ofbuying decisions
Convenience - bread, pain reliever, power cords
Shopping - shoes, microwaves
Specialty - highly differentiated, custom goods
Unsought products - funeral plots, pest-control

Answer 2

consumer product

Question 3

An identifier
A promise
An asset
A set ofperceptions
A “mind share”

Answer 3

brand

Question 4

Visual design elements - logo, color, images, tagline, packaging, etc.
Distinctive product features - quality, design sensibility, personality, etc.

Answer 4

tangable

Question 5

Customers’ experience with a product or company - reputation, customer experience

Answer 5

intangible

Question 6

Attributes:specific product features
Benefits:attributes translate into functional and emotional benefits
Values:company values and operational principles
Culture:cultural elements of the company and brand
Personality:strongbrands often project a distinctivepersonality
User:brands may suggest the
typesof consumers who buy
and use the product

Answer 6

brands meaning

Question 7

Branded house - Apple, BMW
House of brands - Tang, Kool Aid
Private label or store branding - Safeway Organics
“No brand” branding
Personal and organizational 
Place branding - Las Vegas
Co-branding - Liz Lange at Target
Licensing – see image to right
Brand extension and line extension - Diet Coke, Jell-O pudding pops

Answer 7

branding strategies

Question 8

What is the market opportunity for this product?
What are the costs to bring the product to market?
What are the costs through the product life cycle?
Where does the product fit in the product portfolio and how willit impact existing product sales?
How does this product impact the brand?
How does this product impact other corporate objectives such as social responsibility?

Answer 8

business case analysis

Question 9

Profit-oriented pricing
Competitor-oriented pricing
Customer-oriented pricing

Answer 9

price strategies

Question 10

Focus on finances of business and product
profit = revenue - price
Price per product is set higher than the total cost of producing and selling cost
Ensures company makes a profit on each sale

Risks
Customers don’t care about a company’s costs
Competitors can undercut pricing
Limits pricing flexiblity

Answer 10

profited oriented pricing

Question 11

Price based on competitors costs
Price either to indicate that the company believes its product provides greater value or lower to be a low-price solution
Simple way to price products

Risks
Does not fully take into account the value of the product to the customer
might be priced too low for the value it provides, or too high

Answer 11

competitive oriented pricing

Question 12

Customer uses several criteria to decidehow much they are willing to spendin order to satisfy that need

In order to increase value, the business can either increase the perceived benefits or reduce the perceived costs
Today’s marketing tends to favor customer-oriented pricing because itprioritizes the customer and the customer’s perception of value

Answer 12

customer oriented pricing

Question 13

value = perceived benefits - perceived costs

Answer 13

customer oriented pricing equation

Question 14

At what price would you consider the product to be so expensive that you would not consider buying it? (Too expensive)
At what price would you consider the product to be priced so low that you would feel the quality couldn’t be very good? (Too cheap)
At what price would you consider the product starting to get expensive, such that it’s not out of the question, but you would have to give some thought to buying it? (Expensive/High Side)
At what price would you consider the product to be a bargain—a great buy for the money? (Cheap/Good Value)

Answer 14

Van WesterndorpPrice-sensitivity Meter

Question 15

The difference between the average cost and price of all merchandise in stock, for a particular department, or for an individual item

Answer 15

markup

Question 16

Quantity discounts
Seasonal discounts
Cash discounts
Trade discounts (given to middlemen)

Personal allowances (rewards to salespeople)
Trade-in allowances (cars)
Price bundling (cable package)

Answer 16

discounting strategies

Question 17

cover all the activities needed to transfer the ownership of goods and move them from the point of production to the point of consumption 
These activities include: 
product flow
negotiation flow
ownership flow
information flow
promotion flow

Answer 17

Distribution channels

Question 18

While channels can be very complex, there is a set of channel structures that can be identified in most transactions: 
Direct channel
Retail channel
Wholesale channel
Agent channel

Answer 18

channel structures

Question 19

The supply chain and marketing channels can be differentiated in the following ways
Supply chain is broader than marketing channels
Marketing channels are purely customer facing
Marketing channels are part of the marketing mix

Answer 19

supply vs marketing

Question 20

The process of coordinating all the promotional activity across these different methods
Seven common marketing communication methods are
Advertising
Public relations
Personal selling
Sales promotion
Digital marketing
Direct marketing
Guerrilla marketing

Answer 20

intergrated marketing communication

Question 21

Advertising is any paid form of communication from an identified sponsor or source that draws attention to ideas, goods, services or the sponsor itself
Advertising has three primary objectives: to inform, to persuade, and to remind

Answer 21

advertising

Question 22

is the process of maintaining a favorable image and building beneficial relationships between an organization and the public communities, groups, and people it serves

Unlike advertising, public relations does not payfor attention and publicity

Answer 22

public relations

Question 23

usesin-person interaction to sell products and services
This type of communication is carried out by sales representatives, who are the personal connection between a buyer anda company or a company’s products or services

Answer 23

personal selling

Question 24

activities bypass 
intermediaries and communicate 
directly with the individual consumer
Direct marketing can be a powerful 
tool for anticipating and predicting 
customer needs and behaviors
Over time, as companies use consumer data to understand their target audiences and market dynamics, they can develop more effective campaigns and offers
The disadvantage of direct marketing are concerns about privacy and information security

Answer 24

direct marketing

Question 25

marketing is an umbrella term for using a digital tools to promote and market products, services, organizations and brands

Email and mobile marketing overlaps with direct marketing
Other essential tools in the digital marketing tool kit: Web sites, content marketing, search-engine optimization (SEO), and social media marketing

Answer 25

digital marketing

Question 26

is the use of online applications, networks, blogs, wikis, and other collaborative media for communicating brand messaging, conducting marketing, public relations, andlead generation

The three main objectives are:
Creating buzz
Fostering community
Facilitating two-way communication

Answer 26

social media marketing

Question 27

is a relatively new marketing strategy that relies on unconventional, often low-cost tactics to create awareness of and goodwill toward a brand, product, service, or even a company.

Answer 27

Guerrilla marketing