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Principles of Business > Module 3 > Flashcards

Module 3 Flashcards

1
Q

What is the definition of marketing?
A. TV advertising to build awareness and drive trial and
loyalty
B. The creation and use of logos, jingles, characters and
spokespeople to make it easy for consumers to relate to
the product, service or brand
C. The creation of value for customers and the capture
value from them in return
D. The visual and verbal expression of creative ideas about
product or service usage occasion

A

c

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2
Q

Five step model of Marketing process

A

1.Understand the marketplace and customers needs
2. Design marketing strategy towards customers
3, Construct marking program for value
4. Build profitable relationships and create customer delight
5. Capture value from customers to create profits and customer equity

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3
Q

What is a market

A

a group of end users with an need and the desire and the means to fill it

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4
Q

Value Proposition Answers 3 things:

A
  1. Who Are We?
    The capabilities or special expertise we bring to bear
    As experts in
    ___________
    Coffee Roasting? Palate-pleasing Flavors? Serving
    Customers?
    2 . What Do We Do?
    The key aspects of our offering
    We offer Products/ Services/Solutions that
    ___________
    Products and an atmosphere that treat the senses?
    3 . Why Does It Matter?
    The customer need we address / the end benefit
    we provide
    So that our customers always End Benefit.
    Feel welcome? Feel at home?
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5
Q

Customer Segmentation

A

Grouping customers so that marketers can leverage messages and media across large numbers of them to increase relevance AND efficiency

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6
Q

Demographic

A

people who are the same age or gender, or have the
same income, zipcode, or education can differ in important ways

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7
Q

Pyschographic or attitudinal

A

– people who have the same attitude toward an issue or cause can differ, too

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8
Q

Types of Info for Generating Customer Insights:

A 
Demographics 
		
            Psychographics  
		Perceptions, beliefs, needs & behaviors 
		Satisfaction 
		Decision drivers & barriers: 
			What is important? 
			What gets in the way? 
		Price sensitivity
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9
Q

Sources of Customer Insights:

A 
Internal sources 
		Employees (sales customer service) 
		Sales data 
	External sources 
		Customer Advisory Boards 
		Third party/syndicated research 
		Market research 
		Competitive intelligence 
		Social media monitoring
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10
Q

DMP (Decison Making Process) 7 steps

A
  1. Unaided Awareness: Which brands of product/category have you heard of?
  2. Aided Awareness: Which of these brands have you heard of?
  3. Consideration: Which of the following brands of product/category have you ever considered buying?
    4 . Trial: Of those considered, which of these brands have you ever used?
    5 . Repeat: How many of product brand have you bought in the last year?
    6 .Loyalty: Which brand do you buy most often?
    7 . Advocacy: Would you recommend/have you recommended brand to a friend? On social media?
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11
Q

What are the customer relationship groups? 4 groups

and what area is it found in the Strategic planning process?

A

1 .Butterflies- Good to have among customer base, but unlikely to covert to True Friends. Therefore, not worth investing much here
2 .True Friends - worth investing in, turn them into advocates
3 , Barnacles - Most problematic customer type. Need to improve profitability or “fire” them!
4 .Strangers - lowest profit group, not worth persuing

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12
Q

Marketing strategy answers five fundamental questions:

A
  1. What is it? (Product/Service & Competition)
    
2. Who will buy it? (Target & Need)

  2. Why will they choose it? (Marketing Mix aka The 4 P’s)

  3. What messages should be communicated? (Messaging)
    
5. What does success look like? (Goals, Objectives, Milestones)
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13
Q

What are the…..4 P’s Deliver Your Positioning

A

Price
Place
Promotion
Product

= Taken together, they comprise the Marketing Mix – the levers marketers pull to
“ Convey their intended positioning to target customers
” Move them through the customer decision making funnel

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14
Q

What does SWOT Analysis stand for?

A

Strengths , weaknesses, opportunities, threats

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15
Q

Define SMART and in what category is smart found in the strategic planning process?

A 
Specific 
measurable
Aggressive 
Realistic 
Time-bound
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16
Q

What is Marketing Research? (Part of the plan)

what are the four steps?

A
  1. Define the problem & research objectives
  2. Develop plan for collecting info
  3. Collect & analyze data
  4. Interpret & report findings
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17
Q

define Secondary data

A

is collected by someone else (an external source) that can be useful for Marketing purposes

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18
Q

define Primary data

A

comes from original, custom research conducted by (or for) Marketing and designed to answer one or more specific questions

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19
Q

In market research: what happens in stage…..Define the problem & research objectives

A
  • Decision to be made

• Best way to obtain needed information

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20
Q

In market research: what happens in stage….Develop plan for collecting info

A
  • Secondary data

• Primary data

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21
Q

In market research: what happens in stage….Collect & analyze data

A
  • Commercial online databases
    • Internal info
    • Custom research
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22
Q

In market research: what happens in stage….. Interpret & report findings

A
  • Implications
    * Recommendations
    * Considerations
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23
Q

What are the…..Positioning Answers 4 Key Questions

A

1 , Who Are We Talking To?
2 . What’s The Alternative? Frame of Reference
3. What Is the Key Benefit?

  1. What Makes It Believable?/ Proof Points
    (Table Stakes) // Differentiators
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24
Q

In the/…. Positioning Answers 4 Key Questions… what does this pertain to?…..Who Are We Talking To?

A

Which consumers or users can we help most?
• All?
• Some?

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25
Q

In the/…. Positioning Answers 4 Key Questions… what does this pertain to?…..What’s The Alternative? Frame of Reference

A

What types of companies provide the same benefits?

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26
Q

In the/…. Positioning Answers 4 Key Questions… what does this pertain to?…..What Is the Key Benefit?

A

How do we help customers? What need to we address?

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27
Q

In the/…. Positioning Answers 4 Key Questions… what does this pertain to?…..What Makes It Believable?/ Proof Points
(Table Stakes)
Differentiators

A

TABLE STAKES= What are the must have’s?

DIFFERENTIATORS = What is unique about us?

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28
Q

In the growth/ share matrix what does the cash cow, question mark, star, and dog mean?

A

Cash Cow= high relative market share, low market growth

Question Mark= High Market growth rate, low relative market share
Star = High market growth, high relative market share
Dog= low market share, low market growth rate

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29
Q

Marketing is the process of:
a. Creating positive associations in the minds of customers for a company and its
brands
b. Creating value for customers and building strong customer relationships in
order to capture value from customers in return
c. Creating advertising that builds awareness of a company’s products and/or
services
d. Creating lifelong relationships with customers in order to capture the majority
of their purchases

A

B

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30
Q

Which of these best describes the best basis for segmenting customers? Customer segments:

a. Have similar needs or preferences
b. Live in similar neighborhoods
c. Are similar in age and income
d. Have the same number of children

A

A

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31
Q

There are many sources of customer insights. Which of these is NOT generally considered to be one of them?

a. Customer service representatives
b. Customer advisory board members
c. Internal tech support
d. Comments on Yelp

A

C

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32
Q

he Marketing Funnel mirrors the Customer Decision Making Process. Which of these is NOT a way that customers can enter the funnel?

a. Seeing an ad on TV
b. Receiving a Groupon
c. Hearing a promo on the radio d. Writing a review Open Table

A

D

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33
Q

The Customer Relationship Groups framework shows that different customer groups require different customer relationship management strategies. Consumers who pay full price to pre-order Apple products before they are released would be considered a:

a. Butterfly
b. True Friend
c. Barnacle
d. Strangers

A

B

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34
Q

Which of these is NOT a reason companies regularly research the percentage of customers who reach each stage in the marketing funnel?

a. To know how well their marketing is driving customer conversion from each step to the next
b. To identify where customers are getting stuck in the decision making process
c. To adjust their marketing mix to improve conversion
d. To determine optimal pricing to drive conversion

A

D

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35
Q

Customer insights are an important input into developing products and services, positioning and messaging, and marketing programs. Which of these is a type of information that can generate insights about customers:

a. Store maintenance schedules
b. Customer perceptions and beliefs
c. Product testing statistics
d. The number of daily store transactions

A

B

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36
Q

Finish this sentence: Companies that are focused on the Diversification quadrant of the Product/Market Expansion Matrix

a. Are trying to find more people like their current customers to sell their current products to
b. Are trying to find new products to sell to their current customers
c. Are trying to find new customers to sell new products to
d. Are trying to find new customers to sell their current products to

A

C

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37
Q

Which of the following is answered as part of the process of defining the company mission or noble purpose:

a. How do we make the world a better place?
b. Who is our target audience?
c. How do we generate profits?
d. Where should we locate our headquarters?

A

A

38
Q

What are the steps in the strategic planning process

a. Define the company mission, set the company objectives, design the portfolio, plan marketing & other strategies
b. Define the company mission, allocate budgets by line of business, plan marketing & other strategies, measure results
c. Define the company mission, generate customer insights, design plan marketing & other strategies, measure results
d. Define the company mission, design the portfolio, plan marketing & other strategies, measure results

A

A

39
Q

Which of these is NOT a dimension of The BCG Portfolio Growth Share Matrix:

a. Relative market growth rate
b. Relative profitability
c. Relative market share

A

b

40
Q
  1. The BCG Portfolio Growth Share Matrix evaluates the distinct businesses a company is in, and describes four types of businesses. Which of these statements is true about Cash Cows:
    a. They enjoy high market share and are in a category that is growing slowly
    b. They represent the future growth and success of the company
    c. They are unsuccessful
    d.
A

a

41
Q

Businesses in different quadrants of the Growth-Share Matrix receive different levels and types of marketing investment. If you’re working in a Cash Cow business, you are likely to

a. Have less marketing dollars to spend than a Dog business in the company’s portfolio
b. Focus your marketing spending on increasing share
c. Focus your marketing spending on increasing relevance
d. Have more marketing dollars to spend than a Star business in the company’s portfolio

A

c

42
Q

When it comes to reigniting growth, Kellogg’s has many choices. If they were to create a yogurt-based business for consumers who don’t like breakfast cereal, that would be example of a decision to do which of the following:

Product Development Market Development Diversification

A

Diversification ``

43
Q

Finishthis sentence: Companies that are focused on the Market Development quadrant Product/Market Expansion Matrix…

Are trying to find more people like their current customers to sell their current products to
Are trying to find new products to sell to their current customers
Are trying to find new customers to sell their current products to
Are trying to find new customers to sell new products to

A

c

44
Q

A company’s marketing strategy answers several fundamental questions about a company’s offering. Which of these questions is NOT addressed by marketing strategy?

a. What is it?
b. When will it break even?
c. Who will buy it?
d. Why will they choose it?

A

b

45
Q

he classic positioning framework includes 4 key elements. Which of these is NOT one?

a. Personality
b. Target
c. Frame of Reference
d. Key Benefit

A

a

46
Q

he 4 P’s represent the levers that marketers pull to achieve their objectives. Which of these is NOT an aspect of the PROMOTION lever?

a. Advertising
b. Public Relations
c. Personal Selling ‘
d. Product features

A

D

47
Q

Which of the following is NOT true about the marketing funnel and customer relationship building:

a. The marketing funnel is a useful construct for understanding where customers are getting “stuck” in the path to purchase
b. The same marketing tactics have been proven to be effective at each stage in the funnel
c. In addition to marketing tactics, ratings and reviews and other user generated content can bring new consumers into the funnel
d. Groupons are a way to bring new consumers into the funnel

A

b

48
Q

he SWOT framework includes internal and external factors. SWOT stands for:

a. Services, Wholesaling, Operations, Technology
b. Strengths, Weaknesses, Opportunities, Threats
c. Strategy, Warnings, Objectives, Tactics
d. Strategy, Worth, Operations, Tactics

A

b

49
Q

Which of the following statements best describes the aspects of a SWOT analysis that are considered INTERNAL to the company: (there are only 3 options here)

a. With enough time and money, the company could address them
b. While interesting, they are not important
c. They are factors that affect all players in the industry

A

A

50
Q

Which of these is an example of a SMART marketing objective?

a. Increase customer satisfaction
b. Grow market share 2.0 percentage points in 18 months
c. Increase the average order size in 12 months
d. Increase customer perceptions of innovation

A

b

51
Q

Companies usually have a mix of financial and non-financial marketing objectives. Which of these is an example of a NON-FINANCIAL marketing objective:

a. Increase in EBIT
b. Increase in the average order size
c. Increase in share of category spending
d. Increase in the ability to attract top talent

A

d

52
Q

Finish this sentence: The marketing plan commits the organization to strategic initiatives, which are:

a. A thorough listing of potential changes in the marketing mix to grow the business
b. A detailed description of the marketing tactics to be used to win in the marketplace
c. The changes in pricing required to grow the business
d. The few things the organization needs to do to achieve its business objectives

A

d

53
Q

In conducting marketing research, data about consumers, customers and product usage from multiple sources is collected and analyzed. Which of the following is a source of this data?

a. Mailing lists
b. Surveys of product users
c. Company Corporate Social Responsibility initiative results d. Print ads

A

b

54
Q

When it comes to understanding customers, which of these types of organizations typically has access to MORE helpful internal information sources?

a. Wholesalers
b. Seatbelt manufacturers
c. Restaurants
d. Soft drink bottlers

A

c

55
Q

If Pizza Hut wanted to understand what consumers like about its online pizza ordering, its marketers should conduct:

a. A pop-up community of customers
b. Focus groups with customers
c. In-depth customer interviews
d. A customer survey

A

d

56
Q

dentifying the right people to include in research is one of the most important aspects of research design. Which of the following do marketers typically use as one criterion for selecting research participants?

a. College grade point average
b. Participant name
c. Brand awareness
d. Ability to express one’s self

A

c

57
Q

Complete this sentence: Marketers use commercial online databases to:

a. Understand what is known about a industry or product
b. Uncover competitive secrets
c. Learn what consumers think of their products
d. Evaluate their company management team

A

a

58
Q

All brands have negative news at some point – new and old products fail, people mess up, trucks crash. What the New Coke story shows us is that despite the negative publicity and embarrassment, the business recovered relatively quickly. One reason for this is:

a. Pepsi did nothing to respond to the launch of New Coke
b. Consumers were unaware anything happened
c. The Coke brand had enough equity to withstand its mistake
d. The management team kept it quiet

A

c

59
Q

Complete this sentence: To gauge AIDED awareness, marketers typically ask survey respondents:

a. Which of a long list of brands they have heard of
b. Which of a long list of brands they have ever used
c. To make a list of the brands in the category that they have heard of
d. To make a list of the brands in the category that they have ever used

A

a

60
Q

Take-offs on advertising campaigns like the Sesame Street spoof of the Old Spice commercial or the song “I’d Like to Teach The World to Sing” that was based on the Coca-Cola commercial jingle are one indication that the company’s marketing has:

a. Reached a broad audience and become part of pop culture
b. Missed its target audience
c. Been ineffective in communicating product benefits
d. Been created by people who are more interested in awards than impact

A

a

61
Q

which of these statements is FALSE about the way Marketing works within a company?

a. Marketing works best as a skunkworks, independent from the rest of the organization
b. Marketing depends on other departments to build favorable customer perceptions and experiences
c. Marketing is responsible for the 4 P’s
d. Marketing aims to create value for customers and build strong customer relationships to capture value from customers in return

A

a

62
Q

Examples of Financial marketing objectives:

A

% increase in share of category
spending
• % increase in market share
• $ increase average order size

63
Q

Examples of Non-Financial marketing objectives:

A
  • Increase customer satisfaction
  • Be seen as most innovative
  • Ability to attract top talent
  • Increase willingness to recommend
64
Q

Marketing Research

A

is the systematic approach to designing, collecting, analyzing and reporting of data relevant to a specific marketing situation facing an organization

65
Q

Qualitative approaches help marketers understand?

A

Why

66
Q

Quantitative techniques are best suited to answering questions about

A

“What” people do or like

67
Q

What is positioning?

A

A distinctive description of a product or service relative to competing offerings
• The elements that make the offering credible, relevant and differentiated in the eyes of its target audience

68
Q 
Which of the following is NOT a type of marketing research?
A. Secondary
b. Primary 
C. Quantitive 
D . Functional
A

D

69
Q

What is Value Proposition?

A

Understanding market needs helps companies articulate how their capabilities enable them to offer products or services that address customer needs – i.e., their value proposition

70
Q

Strategic Planning Process Steps: What are the four steps?

IN Strategic Planning Process Steps…. What questions does..Define the company mission.. answer?

A
  • Why do we exist?

* How do we make our customers’ lives better?

71
Q

Strategic Planning Process Steps: What are the four steps?

IN Strategic Planning Process Steps…. What questions does..Set company objectives .. answer?

A

What do we do?

• How will we measure success?

72
Q

Strategic Planning Process Steps: What are the four steps?

IN Strategic Planning Process Steps…. What questions does.. Design the business portfolio .. answer?

A
  • What businesses are we in?

* Where do we place our bets?

73
Q

Strategic Planning Process Steps: What are the four steps?

IN Strategic Planning Process Steps…. What questions does..Plan marketing & other strategies .. answer?

A

Which customers will we serve and how?

What will be our marketing mix?

74
Q

Marketing is responsible for identifying target customer segments. Which of the following statements is NOT true about customer segments

a. Customer segments are groups of customers with shared needs or preferences b. Having many customer segments makes marketing more effective by allowing marketers to tailor their efforts more specifically to what each segment cares most about c. Having few customer segments makes marketing more efficient by allowing marketers to spread their marketing expenses over a larger number of consumers
d. Customer segments are groups of customers based only on demographic characteristics like age, income or gender

A

d

75
Q

There are many sources of customer insights. Which of these is a source of customer insights not available to competitors

a. Insights from customer service representatives
b. Insights from syndicated research by firms like Nielsen or Gartner c. Insights from ratings and reviews on Yelp d. Insights from monitoring comments on Pinterest

A

a

76
Q

The Customer Relationship Groups framework shows that different customer groups require different customer relationship management strategies. A consumer who prefers to eat at Chipotle and make a point of going there every chance they get would be considered a:

a. Butterfly
b. True Friend
c. Barnacle d. Strangers

A

b

77
Q

Companies know how well they are moving customers through the Marketing Funnel by… a. Using one marketing tactic to move them from every funnel stage to the next b. Comparing their results to syndicated research of average effectiveness of each
marketing technique c. Comparing their sales results to those of competitors
d. Regularly researching the percentage of customers who reach each stage in the funnel

A

d

78
Q

Customer insights are an important input into developing products and services, positioning and messaging, and marketing programs. Which of these is NOT a type of information that can generate insights about customers:

a. Customer psychographics and demographics b. Customer perceptions and beliefs
c. Price sensitivity
d. Product performance statistics

A

D

79
Q

Which of the following is NOT true about the marketing funnel and customer relationship building:

a. The marketing funnel is a useful construct for understanding where customers are getting “stuck” in the path to purchase
b. The same marketing tactics have been proven to be effective at each stage in the funnel
c. In addition to marketing tactics, ratings and reviews and other user generated content can bring new consumers into the funnel d. Groupons are a way to bring new consumers into the funnel

A

b

80
Q

The BCG Portfolio Growth Share Matrix evaluates the distinct businesses a company is in based on an assessment of each business’s:

a. Relative profitability and market share b. Relative market growth rate and profitability
c. Relative market share and market growth rate
d. Profitability and relative market share

A

c

81
Q

The BCG Portfolio Growth Share Matrix evaluates the distinct businesses a company is in, and describes four types of businesses. Which of these statements is NOT true about
Cash Cows: a. They enjoy high market share and are in a category that is growing slowly
b. They represent the future growth and success of the company
c. They generate profits that can be used to invest in Stars and Question Marks d. They are proven

A

b

82
Q

inish this sentence: Companies that are focused on the Product Development quadrant of the Product/Market Expansion Matrix… a. Are trying to find more people like their current target audience to sell their
current products to
b. Are trying to find new products to sell to their current target audience
c. Are trying to find new target audiences to sell their current products to d. Are trying to find new target audiences to sell new products to

A

b

83
Q

The classic positioning framework includes 4 key elements. What are they? a. Key attributes, Frame of reference, Personality, Reasons to believe b. Target, Frame of reference, Proof points, Marketing budget

c. Target, Frame of reference, Key benefit, Reasons to believe
d. Core values, Frame of reference, Key benefit, Expected profit

A

c

84
Q

Which of the following statements best describes the aspects of a SWOT analysis that are considered EXTERNAL to the company:

a. With enough time, the company could address them b. While interesting, they are not important
c. They are factors that affect all players in the industry
d. With enough money, the company could address them

A

c

85
Q

The best practice is for objectives to be:

a. Specific, Measurable, Aggressive, Realistic and Time-bound
b. Stretch, Meaningful, Actionable, Reasonable, and Tailored c. Semi-annual, Market-based, Actionable, Realistic, Time-bound d. Specific, Monthly, Aggressive, Reasonable, and Tailored

A

a

86
Q

Companies usually have a mix of financial and non-financial marketing objectives. Which of these is an example of a FINANCIAL marketing objective:

a. Increase in customer satisfaction
b. Increase in the average order size
c. Increase in the number of loyalty program members d. Increase in the ability to attract top talent

A

b

87
Q

In conducting marketing research, data about consumers, customers and product usage from multiple sources is collected and analyzed. Which of the following is NOT a source of this data?

a. Internal information about customer purchases b. Commercial online databases
c. Company Corporate Social Responsibility initiative results
d. Custom quantitative and/or qualitative research

A

c

88
Q

When it comes to understanding users, which of these types of organizations typically has access to LESS helpful internal information sources?

a. Ecommerce sites b. Restaurants c. Spas
d. Soft drink bottlers

A

d

89
Q

If Walmart wanted to understand why consumers were not buying its line of Glidden paints at the rate that had been forecast, its marketers should conduct:

a. Behavioral tracking research
b. Focus groups
c. Survey research d. A questionnaire

A

b

90
Q

Complete this sentence: To gauge UNAIDED awareness, marketers typically ask survey respondents:

a. Which of a long list of brands they have heard of b. Which of a long list of brands they have ever used
c. To make a list of the brands in the category that they have heard of
d. To make a list of the brands in the category that they have ever used

A

c

91
Q

The reading describes how focus groups are conducted and describes several different platforms for conducting the research. It also explains that this research technique is called
“Focus Group”because…
A. Moderators focus the group discussion on selected topics B. Participants spend a limited amount of focused time in a
group discussion
C. Clients can focus on the research by stepping out of their
daily routine
D. They include a small, focused set of participants

A

A

Principles of Business (4 decks)

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