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DECA > Marketing Roleplay/MC Concepts > Flashcards

Marketing Roleplay/MC Concepts Flashcards

1
Q

6 steps to dealing with customer complaints

A
  1. Listen carefully to what the customer has to say and let them finish
  2. Ask questions in a caring and concerned manner
  3. Put yourself in their shoes
  4. Apologize without blaming
  5. Ask the customer: “What would be an acceptable solution to you?”
  6. Solve the problem, or find someone who can solve it - quickly

  • do not argue or get defensive
  • repeat back what you heard to show you’re listening
  • ask rather than jump to conclusions
  • be sincere
  • propose one or more solutions to alleviate the complaint
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2
Q

Business life cycle

A

Recession (trough):
- period of reduced economic activity (buying, selling, production, and employment diminish)
- a severe recession is known as a depression

Recovery (upturn):
- economy starts working its way up to better financial footing

Growth:
- a period of sustained expansion
- increased consumer confidence = higher levels of business activity
- generally acconpanied by inflationary pressures

Decline (contraction or downturn):
- marks the end of the period of growth
- decreased levels of consumer purchases
- reduced production by businesses

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3
Q

Factors that shape business life cycles

A
  • volatility of investment spending
  • momentum
  • technological innovtions
  • variations in inventories
  • fluctuations in government spending
  • politically generated business cycles
  • monetary policies
  • fluctuations in exports and imports
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4
Q

Product life cycle stages

A
  1. Introduction
  2. Growth
  3. Maturity
  4. Decline
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5
Q

Introduction stage

product life cycle

A

Product:
- branding and quality level established
- intellectual property protection (ie. patents, trademarks, etc.) are obtained

Pricing:
- may be low penetration pricing to rapidly build market share
- may be high skim pricing to recover development costs

Distribution:
- selective until consumers show acceptance of the product

Promotion:
- aimed at innovators and early adopters
- marketing communications seeks to build product awareness and educate potential consumers about the product

  • seeks to build product awareness
  • seeks to develop a market for the product
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6
Q

Growth stage

product life cycle

A

Product:
- quality is maintained and additional features and support services may be added

Pricing:
- maintained as the firm enjoys increasing demand with little competition

Distribution:
- distribution channels are added as demand increases and customers accept the product

Promotion:
- aimed at a broader audience

  • seeks to build brand preference
  • aim to increase market share
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7
Q

Maturity stage

product life cycle

A

Product:
- features may be enhanced to differentiate the product from that of competitors

Pricing:
- may be lower because of new competition

Distribution:
- becomes more intensive and incentives may be offered to encourage preference over competing products

Promotion:
- emphasizes product differentiation

  • strong growth in sales diminishes
  • competition appears with similar products
  • primary objective is to defend market share while maximizing profit
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8
Q

Decline stage

product life cycle

A

Sales decline, the firm has several options:
1. Maintain the product - possibly rejuvenating it by adding new features and finding new uses
2. Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment
3. Discontinue the product - liquidating remaining inventory or selling it to another firm that is willing to continue the product

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9
Q

Strategic business risk

A
  • result directly from operating within a specific industry at a specific time
  • counteract measures need to be put in place to constantly solicit feedback so changes will be detected early

  • shifts in consumer preferences or emerging technologies
  • drastic market forces that could put your company in danger
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10
Q

Legal compliance risk

A
  • risks associated with compliance are those subject to legislative or bureaucratic rules and regulations
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11
Q

Types of financial risks

A
  • financial risks take into account interest rates and if you do international business, foreign exchange rates
  • which customers do you extend credit to and for how long?
  • what is your debt load?
  • does most of your income come from one or two clients who might not be able to pay?
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12
Q

Internal operational risks

A
  • result from internal failures
  • unlike a strategic risk or a financial risk, there is no return on operational risks

Examples:
- people or systems fail unexpectedly
- transportation systems breaking down
- supplier failing to deliver goods

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13
Q

Reputational and publicity risks

A
  • may result from product failures, lawsuits or negative publicity
  • e.g. social networking (blog posts, bad product reviews…)
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14
Q

Other business risks

A
  • difficult to categorize
  • include risks from the environment (e.g. natural disasters)
  • difficulties in maintaining a trained staff that has up-to-date skills to operate your business (employee risk management)
  • health and safety risks not covered by OSHA or state agencies
  • political and economic instability in countries you import from or export to
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15
Q

Tort

A
  • a wrongful act or violation of a right
  • can involve many types of injury or harm to the victim of the tort
  • governed by civil, not criminal law

Intentional torts:
* when a party knowingly and purposefully causes harm, suffering, or loss to another party

Negligent torts:
* committed unknowingly and without intent to harm
* the defendant neglected a duty of due care, resulting in harm to the plaintiff

Strict liability torts:
* do not require proof of negligence or ill intent
* all that must be proven is that harm or loss was brought upon the victim and the defendant is at fault

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16
Q

Economic utilities

A
  • the total amount of satisfaction that someone experiences when they consume a particular product or service
  • helps measure how much fulfillment someone requires in order to satisfy a particular need or want
  • the concept of economic utility falls under behavioral economics

  • utility doesn’t necessarily have to be measured in numbers—just in perceived value
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17
Q

Form

economic utility

A
  • how much value a consumer receives from a product or service in a way that they actually need
  • the incorporation of customer needs and wants into the features and benefits of the products being offered by the company
  • the goal is to increase and maximize the perceived value of the products

  • e.g. offering lower prices, more convenience, or a wider selection of products
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18
Q

Time

economic utility

A
  • a company provides goods and services when consumers demand or need them
  • they adjust their production process, logistical planning of manufacturing and delivery
  • when demand increases, the company should respond by producing and delivering more of the product to the market

  • e.g. considering the hours and days of the week a company might choose to make its services available
  • e.g. 24-hour availability for a product or the company’s customer service department through a phone number or website chat function
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19
Q

Place

economic utility

A
    • making goods or services available in locations that allow consumers to easily access products and services
  • making a product available in a wide variety of stores and locations is considered an added value since it is more convenient
  • increasing convenience can be a key element in attracting business
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20
Q

Possession

economic utility

A
  • the amount of usefulness or perceived value a consumer derives from owning a specific product and being able to use it as soon as possible
  • this is why it’s important for companies to increase the ease of ownership, which boosts the product’s possession utility or perceived value

  • consumers should be able to use a specific good or service as soon as they’re able to purchase or obtain it
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21
Q

Channels of Distribution

A
  • a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer
  • can include wholesalers, retailers, distributors, and even the internet
  • distribution channels are part of the downstream process: “how do we get our product to the consumer?”

  • the upstream process (aka supply chain — “who are our suppliers?”)
22
Q

Direct distribution channel

A
  • allows consumer to make purchases from the manufacturer
  • may mean lower costs for consumers because they are buying directly from the manufacturer
23
Q

Indirect distribution channel

A
  • allows consumer to buy the goods from a wholesaler or retailer
  • typical for goods sold in traditional brick-and-mortar stores
24
Q

Types of distribution channels

A
  • there are three main types of channels, all of which include the combination of a producer, wholesaler, retailer, and end consumer
    1. producer > wholesaler > retailer > consumer
    2. producer > retailer > consumer
    3. producer > consumer
25
Q

Supply and demand

A
  • as the price increases, supply rises while demand declines
  • as the price drops, supply constricts while demand grows

Product’s price elasticity:
- the degree to which changes in price translate into changes in demand and supply

  • surplus — when there is enough supply but not enough demand
  • shortage — when there is not enough supply but too much demand
26
Q

Product branding

A
  • the use of a name, term, symbol or design to give a product a unique identity in the marketplace

3 Major strategic options:
1. manufacturer branding vs private labels
2. individual branding vs family brands
3. co-branding

27
Q

Manufacturer vs private brands

A
  • when a brand identity is clearly linked with the manufacturer of the product (aka national brand)
  • marketers usually choose this option when the firm has a strong, positive image
  • some products benefit more by being associated with the store where they are sold

  • e.g. NoFrills and No Name, Costco and Kirkland
28
Q

Individual vs family brands

A
  • used by firms with sufficient resources to create a separate identity for each product they offer
  • makes the most sense when a company sells items in very different categories
  • the use of a unified platform is called family branding
  • a single company may launch several family brands to lend a uniform identity to its different product lines
29
Q

Co-branding strategy

A
  • links two existing brand names to create an identity for a new product

3 Variations of this approach:
1. ingredient branding - one product is integral to another
2. cooperative branding - two or more brands sharing a promotion
3. complementary branding - brands marketed together to suggest the benefits of using both

30
Q

Premium pricing

A
  • pricing a product at a higher level (even if the product doesn’t cost that much)

  • e.g. Gucci, Starbucks
31
Q

Economy pricing

A
  • pricing things aas low as possible
  • gives off a feeling of value and getting money’s worth

  • e.g. Dollarama, Walmart
32
Q

Price skimming

A
  • a new product enters a market, companies can set the price to be higher at first because it is new
  • eventually as new competitors enter, they start to compete by lowering prices
33
Q

Penetration pricing

A
  • new product starts with a lower price, wanting to gain more customers
  • clientele becomes more valuable in the future
  • prices raise later on
34
Q

Bundle pricing

A
  • used to sell multiple products together for a lower price than if they were purchased separately
  • an effective strategy to move unsold items that are simply taking up space
  • creates the perception in the mind of the consumer that he’s getting a very attractive value for his money
35
Q

Price setting

illegal

A
  • multiple companies come together to set prices
  • have control over the whole market of certain products

  • a couple of supermarkets agreed on raising the prices of bread and all the customers that shopped at these stores had to pay more (they were eventually sued — Loblaws bread incident)
36
Q

Discriminatory pricing

illegal

A
  • setting different prices for customers based on demographics

  • e.g. Farmer’s market, seller tells you “here’s a $2 apple, oh wait you’re a woman, pay $6 please”
37
Q

Selling process

A

Product knowledge:
- how will the customer benefit from product features?

Prospecting:
* searching for new customers (create a profile of existing customers so you can tailor approach tactics)

The approach:
- first impressions
- will either identify you as a bothersome salesperson and cause a prospect’s guard to go up, or it will identify you as an obliging salesperson which something of value to offer

The needs assessment:
- arguably the most important, allows you to determine how you can truly be of service
- to be an effective salesperson, you first have to understand what the prospect’s needs are
- ask lots of questions

The presentation:
- focus on benefits rather than features
- tailor your presentation to your audience and keep it interactive

The close:
- closing is about advancing the sales process to ultimately get an ordr
- closing is also about discovering obstacles
- when mentioning price, don’t be afraid that they are too high, say it with pride

Follow-up:
- making sure you stay in a prospect’s mind, yet still making sure it isn’t considered bothersome, is very important
- follow up should never end
- follow up convos are best handled by the salesperson who started the relationship

38
Q

Specialization of labor and productivity

A
  • occurs when workers are assigned specific tasks within a production process
  • workers will require less training to be an efficient worker
  • can lead to an increase in labour productivity and firms will be able to benefit from economies of scale and increased efficiency
39
Q

Specialization within economies

A
  • the theory of comparative advantage - countries should specialize in producing certain goods they are best at producing where they have a lower opportunity cost
  • specialization requires trade
  • if there is increased trade, there will also be increased competition
  • domestic monopolies will now face competition from abroad
40
Q

Product positioning

A
  • conveying to your target market the qualities and attributes of your brand that make it superior to competitor offerings
  • effective positioning involves communicating a value proposition that the benefits of your product relative to the price are unrivalled

  • a key responsibility of a company’s marketing department
41
Q

Drucket’s 5 functions

role of management

A
  1. Set objectives and establish the goals that employees need to reach.
  2. Organize tasks, coordinate his/her allocation, and arrange the right roles for the right people.
  3. Motivate and communicate in order to mold staffers into cooperative teams and to convey information continually up, down, and around the organization.
  4. Establish targets and yardsticks that measure results and clarify outcomes to ensure that the firm is moving in the right direction.
  5. Develop people through finding, training and nurturing employees, a firm’s primary resource.
42
Q

10 Essential roles of a manager

A
  1. Hire great people
  2. Performance management
  3. Team development
  4. Setting overall direction
  5. Being an important and supportive team member
  6. Doing unique work that no one else could or should do
  7. Manage resources
  8. Improve processes and quality
  9. Self-development
  10. Communicate information
43
Q

Marketing information

A
  • centers around different companies trying to get information about their products from their target market
  • businesses know that if they understand what their customers want…
    • it opens the door to expand ideas
    • it helps them make more thoughtful ideas
    • it helps them understand what their competitors are doing well and not well
  • customers don’t go buying products anywhere and anytime unless they are super rich
44
Q

Internal marketing information

A
  • events that occur within the company
  • productions and operations reports make the company more cost and time efficient
  • tests based on performance are judged based off of customer satisfaction or sales
45
Q

External marketing information

A
  • providesfactors outside of the organization
  • government reports make different reports using a collection ofdata over time
  • commercial data and information services that help make the best decision for how to market a product
46
Q

Effective marketing information system

A
  1. Input
  2. Storage
  3. Analysis
  4. Output
  5. Decision Making

  • a marketing information system is an organized method of collecting, storing, analyzing, andretrieving information to improve the effectiveness and efficiency of marketing decisions
  • the information has to be complete, accurate, easy to use, timely, affordable, and cost-effective
47
Q

Pure risk

A
  • two possibilities: something bad happening or nothing happening
  • unlikely any benefit will arise from a pure risk
  • predicting the outcomes of a pure risk is sometimes accomplished using the law of large numbers, a priori data, or empirical data
  • also known as absolute risk
  • is insurable
48
Q

Speculative risk

A
  • three possible outcomes: something good (gain), something bad (loss), or nothing (staying even)
  • not insurable in the traditional insurance market
  • there are other means to hedge speculative risk (ie. diversification and derivatives)

  • e.g. gambling and investing
49
Q

Affinity marketing

A
  • two parties involved (the affinity group and the business providing the group with a new product or service)
  • establishes client referral policies and procedurea
  • negotiate mutually beneficial marketing relationships
  • group marketing effort to individual niches
  • cross-selling products to existing members

  • membership organizations or associations
  • nonprofits and charities
  • companies that cater to specific demographics
  • e.g. airlines, hotels, banks, supermarkets, clothing outlets, gas stations, real estate companies, etc.
50
Q

Affiliate marketing

A
  • the process by which an affiliate earns a commission for marketing another person’s or company’s products
  • the affiliate searches for a product they enjoy and promotes that product and earns a piece of the product from each sale they make

  1. affiliate shares ad/link on their website or socials
  2. customer clicks and converts
  3. conversion is tracked
  4. affiliate is paid a comission

DECA (4 decks)

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