Midterm Prep 2021 Flashcards
Rather than understanding what consumers actually want, RIM assumed that customers v were looking for a “better” version of their blackberries. So the company sought to improve their existing phones and ignored consumers demand for touchscreen phones for a while. They were following which marketing concept: A. production concept, B. product concept, C, selling concept, D. marketing concept
Answer: B product concept
Makes consumers LESS price sensitive
Image advertising
set of standards adopted by thousands of firms worldwide to certify organizations that conduct business in an environmentally friendly manner
14001 Certification
- Understand the marketplace and consumer needs & wants
- Design a customer-driven marketing strategy
- Construct a marketing program that delivers superior value
- Build profitable relationships and create customer delight; build long term relationships
- Capture value from customers to create profits and customer equity
The Marketing Process
What is a strategy that creates new products for present markets (e.g. Tom Houston’s adding Dark roast in addition to its line of regular coffee)
A. Market development, B. Market penetration. C. Product development, D. market diversification
C. Product development
Ethical actions an organization takes beyond what is legal
Corporate Social Responsibility (CSR)
4 Ps
Price, product, place, promotion
Makes consumers MORE price sensitive
Price promotion
Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while preserving future generations’ needs
Sustainable Marketing
Principles of conduct within organizations that guide decision making and behaviour
Business Ethics
BMW’s _______, “The Ultimate Driving Machine”, outlines the key benefit to consumers and
differentiates the brand from competitors.
a. value proposition
b. consumer lifetime motto
c. target marketing
d. customer satisfaction strategy
A. Consumer lifetime motto
- Using periods such as Valentine’s Day, Father’s Day, etc. for segmentation is an example of:
a. behavioral segmentation
b. psychographics
c. income based segmentation
d. usage rate based segmentation
A. Behavioural Segmentation
- Which of the following consumer products is regarded as a “shopping product”?
a. toilet paper b. sports car c. personal accident insurance d. camera
D. Camera
- At the _______________ stage of the new product development process, the product is
introduced on a small scale to a realistic market for a limited time.
a. commercialization
b. concept development and testing
c. idea screening
d. test marketing
D. Test Marketing
- Which of the following correctly describes the characteristics of a product in the growth stage?
a. peak sales
b. early adopters buying the product
c. low costs per customer
d. few competitors
B. Early adopters buying the product
- New product development starts with ________.
a. Idea screening
b. Idea generation
c. Concept development
d. Concept testing
B. Idea generation
- ________ is the product life cycle period when sales fall off and profits drop.
a. introduction b. growth c. maturity d. decline
D. Decline
- An alternative to product line stretching is ________, adding more items within the present
range of the line.
a. Product mixing b. Interactive marketing c. Product line filling d. Co-branding
C. Product line filling
- The Chevrolet Prizm and Toyota Corolla were the same car, made on the same assembly line
by the same people, using the same parts, with the same warranty. Yet, the baseline model of the
Toyota Corolla sold for $250 more than Prizm. We conclude that Toyota Corolla had
__________.
a. More effective sales promotions
b. Better distribution
c. Higher brand equity
d. A better advertising agency
C. Higher brand equity
12. \_\_\_\_\_\_\_\_ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing a. Customer value based pricing b. Target return pricing c. Price elasticity d. Flexible pricing
A. Customer value based pricing
- Companies facing the challenge of setting prices for the first time can choose between two
broad strategies: market-penetration pricing and ________.
a. market-level pricing
b. market-competitive pricing
c. market-skimming pricing
d.target return pricing
C. Market - skimming pricing
- When amusement parks and movie theaters charge fixed admission plus separate prices for
food and other attractions, they are following a(n) ________ pricing strategy.
a. by-product
b. optional-product
c. psychological
d. penetration
B. Optional-product
- Which of the following conditions justifies using a high number of intermediaries in a
marketing channel?
a. business to business selling
b. desire to have greater control over the channel
c. large order sizes
d. selling a less complex, non-technical product
D. Selling a less complex, non-technical product
- Green Constructions is a leading name in the construction business and is the major client for
a steel manufacturing unit, Mansion Steels. However, Green Constructions, being the dominant
channel member, has total control over the relationship. This is an example of a(n) _____
vertical marketing system.
a.contractual
b.corporate
c.franchised
d.administered
d. Administered
- Retail stores such as Simons and the Bay provide appealing displays of their products. Best
Buy and Amazon have easy to navigate, attractive online websites. All of these retailers provide
which kind of utility to shoppers?
a.information
b.place
c.possession
d.form
d. Form
- Which of the following retailers is a typical example of a warehouse club?
a. Walmart b. IKEA c. Costco d. Home Depot
c. Costco
20. Retailers such as Walmart and Costco mainly use \_\_\_\_\_ pricing, which is consistent with their overall marketing strategy. a.break even pricing b.everyday low pricing c.high low pricing d.Return on Investment pricing
B. Everyday low pricing
a specific group of customers on whom and organization focuses its marketing efforts
Target Market
One of the four Ps of the marketing mix. A product can be a good, service, or idea.
Product variable
Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
CRM (Customer Relationship Management)
Managing profitable customer relationships & Creating value for customers and building strong relationships to capture value from customers in return, Discovering and satisfying needs
Marketing
_____ Forces:
Demographic, socio-cultural, Economic, Technological, Competitive, Regulatory
Environmental
Benefits promised to deliver to customers that differentiate a brand in the market
Possibly including: Quality, price, convenience, delivery, service
Value Proposition
A group of consumers who have both the ability and willingness to purchase a product
Market
Specific segment of existing and potential consumers to which marketers focus their efforts
Target market
Marketing Management concept: Focus on what the company produce (often to target price-conscious customers)
e.g. Model T cars coming in only one colour
Production Concept
Marketing Management Concept: Focuses on a product’s premium quality and consistent product improvements
Product Concept
Marketing Management Concept: Focus on the customer’s needs and produces produces according to these
Marketing Concept
Marketing Management Concept: Focuses attracting the customer TO the product via salespeople. Typically used to sell unsought goods
Selling Concept
Marketing Management Concept: Focuses on consumer satisfaction and societal uptake of the product
Societal Marketing Concept
Customer’s evaluation of all the benefits and costs of an offer relative to those of its competitors
Customer perceived value
Value = Benefit / Cost
Customer perceived value
Objective-based process of developing and maintaining a strategic fit between the organization’s goals and opportunities and its changing marketing opportunities
Strategic Planning
Corporate level (Board of Directors, corporate), Strategic business unit level, functional level (business function departments such as HR, IT, Finance)
Three Organizational Levels
Growth Strategy: Existing products, Existing Markets
Market Penetration
Growth Strategy: Existing Products, New Markets
Market Development
Growth Strategy: Existing Markets, New Products
Product Development
Growth Strategy: New Products, New Markets
Diversification
Leads to product differentiation
Market segmentation
Segmentation:
How does this market use the product?
Behavioural
Segmentation: Where does this market live and work?
Geographic
Segmentation: What is the basic census-type info on this market?
Demographic
What are the prevailing attitudes, beliefs and values of this market?
Psychographics
What type of segmentation involves targeting a “persona”
Psychographic
PRIZM model
Psychographic segmentation
What segment of the market would a loyalty card help target?
Behavioural
Character description of a brand’s typical customer
Persona
Forms of targeting
mass marketing, segment marketing, niche marketing, individual marketing
One single offer for the whole market, cost advantages at the expense of focused targeting
Mass marketing
Several marketing mixes for differeny segments of the market, higher costs as a result, creates more sales than targeting everyone with a similar product
Segment marketing
Targets one or more small segments of the market, only those that can be served profitably
Niche marketing
Tailors offerings to suit individual consumer needs, custom configured products
micro / individual marketing
The impression of a branded product you want to establish in a consumer’s mind
Product positioning
Changing the place a product occupies in consumers’ minds relative to competitive products
Repositioning
Anything offered to a market that may satisfy a want/need: organizations, people, places, ideas, goods, services
Product
Three layers of “total product concept”
Core, actual, augmented
Total Product Concept: Additional features / benefits that come with the actual product
Augmented
Total Product Concept: Physical product incl. branding, design etc.
Actual
Total Product Concept: Basic functionality & benefits derived
Core
Function, communication, brand image
Purposes of packaging
Group of closely related products
Product line
Length
Number of items in a product line
Product mix (portfolio)
All the products a company markets
A financial value attributed to the brand based largely on intangible qualities
Brand equity
Human attributes and the emotions they inspire toward customers e.g. Mac vs PC
Brand personality
Stages of the product life cycle
introduction, growth, maturity, decline
Marketing objective during the growth phase of life cycle
Product differentiation
Competition during maturity stage of product life cycle
competitors enter the market
marketing objective during the maturity phase of product life cycle
Brand loyalty
New product development strategy, idea generation, screening & evaluation, business analysis, test marketing, commercialization
New Product Development Process
High initial price to skim revenue from those willing to pay (good when brand + image support a price)
market skimming
Low initial price to penetrate market and gain market share due to price sensitivity (good when market is price sensitive)
market penetration
Pricing optional products sold with main product
Optional product pricing
Pricing products which must be used with main product
captive-product pricing
Pricing a bundle of individual products at a price lower than if purchased separately
bundle pricing
Charging different prices to maximize revenue
Yield management pricing
Offering just the right combination of quality and service at the price consumers are willing to pay.
Target (customer value) pricing
Setting prices a dollar or cent under an even number
Setting prices a dollar / cent under an even number
High prices attract quality or status conscious consumers
Prestige pricing
Allows price to change as customer and situational forces change
e.g. uber surge pricing
dynamic pricing
Factors that limit the range of price a firm sets
price constraints
Demand for the product class, product, and brand
Newness of the product: stage in the PLC
Cost of producing and marketing the product
Competitors’ prices
Price constraints
Form, Place, Information, Time, Possession
Consumer Utilities
Consumer Utilities
Form, place, information, time, possession
