MKTG 120 Final Flashcards
What is a product?
A product includes goods, services, or ideas and consists of tangible and intangible attributes.
What are the categories of products?
Non-durable goods: Consumed once or for a limited number of times (e.g., food).
Durable goods: Last for an extended period (e.g., appliances).
Services: Intangible activities, benefits, or satisfactions (e.g., banking).
What the the unique elements of services?
Four I’s of Services:
Intangibility
Inconsistency
Inseparability
Inventory
What is the explanation of service elements?
Services are intangible, inconsistent due to human involvement, inseparable from the provider, and have complex inventory issues.
What are the levels of value in products?
Core, Actual, and Augmented Product
Provide an explanation of what Core, Actual and Augmented levels are:
Core: Basic benefits.
Actual: Physical attributes.
Augmented: Additional features or services.
What is a brand?
Name, symbol, or design uniquely identifying a product.
What is the importance of branding?
Builds brand equity, associations, and consumer loyalty.
What is brand personality and influential brands?
Traits, emotions, quality associated with brands.
What are examples of influential brands?
Google, Amazon, YouTube, Apple, etc.
What is the classification of brands?
Manufacturer’s, Private-label, Generic brands.
What is the explanation of brand types?
Ownership and branding distinctions among various types of brands.
What are the stages of a product life cycle?
Introduction, Growth, Maturity, Decline.
Provide a description of each stage of the product life cycle:
Sales and profitability trends at different stages.
What are marketing mix strategies?
Product, Pricing, Place, Promotion.
What are the strategies to extend the life cycle?
Modifying product, market, or repositioning.
What are ways to prolong product life?
Altering product features, targeting new markets, or changing perception.
What equation defines a firm’s profit?
Profit = Total revenue – Total cost = (unit price x quantity sold) – Total costs
What are the primary strategies under demand-oriented pricing?
Skimming Pricing
Penetration Pricing
Prestige Pricing
Price Lining
Odd-Even Pricing
Target Pricing
Bundle Pricing
Yield Management Pricing
Define Pricing and its approach:
Setting the highest initial price for early adopters, gradually reducing to attract price-sensitive customers.
Define penetration pricing and its purpose:
Setting a lower initial price to attract mass market immediately; discourages competition and builds market share.
What is the objective of prestige pricing?
Setting a high price to attract status-conscious consumers; associates higher price with higher quality/status.
Explain Odd-Even Pricing with examples:
Pricing products just under a round number ($399.99) for psychological effect; potential impact on demand.
Describe Target Pricing and its methodology:
Estimating consumer’s willingness to pay; adjusting product features to achieve the target price.
Define Bundle Pricing and provide examples:
Marketing multiple products at a single package price; e.g., vacation packages by airlines.
What does Yield Management Pricing involve?
Varying prices based on time, day, or season to match demand and supply; used by airlines, hotels, etc.
What factors influence cost-oriented pricing?
Standard Markup Pricing
Cost-Plus Pricing
Define Standard Markup Pricing:
Selling products above cost to cover expenses; expressed as a percentage.
Describe Cost-Plus Pricing and its application:
Determining price by adding a specific amount to total unit costs; commonly used in various sectors.
Define Marketing Channels and provide the analogy:
Definition: Marketing channels consist of individuals and firms involved in making a product or service available to consumers.
Analogy: Comparable to a pipeline, facilitating the flow of goods from producers to buyers.
What are the roles and functions of intermediaries in Marketing Channels?
Role: Facilitate the flow of products; examples include middlemen, agents, wholesalers, retailers, distributors, and dealers.
Function: Act on behalf of producers, purchase, store, and resell products, or bring sellers and buyers together.
What are the Intermediaries’ Functions?
Transactional Function: Involves buying, selling, and assuming risks in inventory ownership.
Logistical Function: Includes selection, storage, sorting, and transportation of products.
Facilitating Function: Provides financing, marketing information, and makes transactions easier for buyers.
What are Intermediaries’ Value Creation?
Consumer Benefit: Offers time, place, form, information, and possession utilities to consumers.
Value Addition: Enhances convenience and accessibility for consumers through various channels.
What are the types of Marketing Channels?
Direct Channels: Direct transaction between producer and consumer.
Indirect Channels: Involve intermediaries between the producer and consumer, increasing complexity.
What are Electronic Marketing Channels? Provide an example.
Definition: Channels using the internet for product availability, leading to disintermediation in some cases.
Example: Booking flights directly from airlines online or using agents like Expedia.
What is Multichannel Marketing? Provide an example.
Definition: Utilizes multiple routes to reach consumers, enhancing sales opportunities.
Example: Cross-channel shopping—e.g., buying from both online and retail stores.
What are the considerations in Channel Design?
Factors: Market, product, and company-related aspects influence channel decisions.
Coverage Types: Intensive, exclusive, and selective distribution strategies to cover the target market.
What is Channel Conflict and what are the types of conflicts?
Definition: Conflicts arising between channel members over goals, roles, or rewards.
Types: Vertical (between different levels) and horizontal (between intermediaries at the same level) conflicts.
What are logistics and supply chain management?
Logistics: Focuses on efficient product delivery at the right time and cost.
Supply Chain Management: Includes suppliers before product manufacture; part of the longer marketing channel process.
What are Marketing Communication Tools? What is the Selection Process? What is the checklist for older generation?
Definition: Methods utilized by companies to communicate messages to customers.
Selection Process: Consideration of each tool’s strengths, weaknesses, and audience appropriateness.
Checklist for Older Generation: Assessing effective tools for an older audience.
What are Integrated Marketing Communications (IMC)? What is the consistency? Provide an example.
Definition: Strategies involving multiple target audiences using different tools for each audience.
Consistency: Importance of maintaining a consistent message across all communication channels.
Case Example: Domino’s “AnyWare” campaign demonstrating the use of various tools to promote a unified message.
What are evolving marketing communications?
Impact of Internet: Altered business and marketing, increasing consumer online interactions.
Shift to Digital: Companies reallocating advertising budgets from traditional media to online platforms.
Need for Innovation: Demand for unique digital strategies to stand out in the crowded digital space.
What are advertising communication tools? What are the challenges associated with them?
Definition: Paid non-personal communication through various media.
Popular Mediums: Television, internet, and direct mail as prevalent advertising methods.
Challenges: High cost and low credibility, leading to distrust among consumers.
What are Public Relations communications tools and their benefits?
Definition: Unpaid media exposure influencing target market opinions.
Tools Used: Press releases, social media, company reports, special events.
Benefits: Credibility due to third-party endorsement, cost-effective but challenging to control.
What are sales promotion communication tools?
Definition: Short-term incentives to encourage purchases.
Types: Consumer and trade promotions, easily measurable results but easily replicable by competitors.
What are Direct Response Marketing tools?
Characteristics: Personalized and requiring an excellent customer database.
Delivery Methods: Mail, email, social media, but often received negatively by consumers.
What are event marketing and sponsorship communication tools and their benefits?
Strategies: Hosting events for brand experiences or sponsoring existing events.
Benefits: Creates buzz and positive associations but challenging to measure and costly.
What are product placement and branded entertainment communication tools and their benefits?
Strategies: Integrating products into shows or creating content around a brand.
Benefits: Generates positive brand associations but can be expensive.
What are personal selling communication tools and their importance?
Definition: One-on-one communication with customers.
Importance: Expensive but crucial for building relationships, especially for high-value products.
What are Online, Social Media, and Mobile Marketing communication tools and their advantages?
Types: Paid advertising, owned media (websites), and earned media (word-of-mouth).
Advantages: Relatively inexpensive with two-way communication but dependent on technology.
What are the opportunities and challenges related to mobile devices and marketing?
Opportunity: Tapping into personalized one-to-one communication via mobile devices.
Challenge: Consumer caution due to privacy concerns, requiring permission for marketing access.
What is the Customer Advocacy Funnel?
Usage: Moving consumers strategically through various stages using communication tools.
What is the Push vs. Pull Strategy and its integration in companies?
Strategies: Push (manufacturer pushing products through the channel) vs Pull (consumer-focused marketing).
Integration: Most companies combine both strategies in their marketing plans.
What is the marketing communications process?
Steps: IMC objectives, identifying target audiences, budget allocation, program design, scheduling, evaluation, and improvements.
What are the levels of strategy in Strategic Planning and Organizational Structure?
Corporate Level: Top management directs strategy for the entire organization.
Strategic Business Unit Level: Separation based on similar products or markets.
Functional Level: Specialized departments create detailed plans for each unit.
What is a mission statement? Provide an example.
Communicates organization’s purpose and direction.
Example: Disney’s storytelling, Tesla’s sustainable energy mission, Amazon’s customer-centric principles.
What are SMART goals? Provide an example.
Specific, Measurable, Achievable, Relevant, Time-bound.
Examples: Profit increase, sales volume growth, market share control, quality improvement, customer satisfaction, employee welfare, social responsibility.
What is a SWOT Analysis?
Internal Analysis (Strengths and Weaknesses):
Focus on manufacturing, technology, market share, reputation, etc.
External Analysis (Opportunities and Threats):
Exploration of market opportunities and threats in the external environment.
What is a Business Portfolio Analysis: BCG Matrix?
BCG Matrix:
Uses market growth rate and relative market share to categorize strategic business units.
Applicable at product line or individual product levels.
What is a Market-Product Analysis?
Market Strategies:
Market Penetration: Increase sales to existing markets.
Market Development: Identify new markets for existing products.
Product Development: Create new products for existing markets.
Diversification: Develop completely new products for new markets.
How would you set up a marketing program?
Objective Setting:
Define objectives for market, product, target markets, and positioning.
Marketing Mix (4Ps):
Details specific aspects of product, price, place, and promotion within the marketing plan.
