Principles of Marketing

Question 1

What is a Marketing Channel?

Answer 1

System to make products available to customers

A.k.a. Distribution Channel

Question 2

What is the main purpose of a Marketing Channel?

Answer 2

Accessibility and Availability

Question 3

What are the three perspectives of the Supply Chain?

Answer 3

• Upstream: Supplier → Manufacturer
• Midstream: Manufacturing & Processing
• Downstream: Manufacturer → Customer

Question 4

What is a Direct Channel?

Answer 4

Producer → Consumer

Question 5

What is an Indirect Channel?

Answer 5

Producer → Intermediaries → Consumer

Question 6

What is a Horizontal Conflict?

Answer 6

Conflict between firms at the same level

Question 7

What is a Vertical Conflict?

Answer 7

Conflict between different levels in the same channel

Question 8

What is the goal of Vertical Marketing Systems (VMS)?

Answer 8

Improve coordination, reduce conflict

Question 9

What are the types of Vertical Marketing Systems?

Answer 9

• Corporate VMS: Single ownership
• Contractual VMS: Formal agreement
• Administered VMS: Coordinated by size/power

Question 10

What is a Horizontal Marketing System?

Answer 10

Collaboration between two or more companies at the same level

Question 11

What is the goal of Marketing Logistics?

Answer 11

Right Product, Right Customer, Right Place, Right Time

Question 12

What are the three levels of product?

Answer 12

• Core Customer Value
• Actual Product
• Augmented Product

Question 13

What distinguishes Consumer Products from Industrial Products?

Answer 13

Consumer products are for personal use; Industrial products are for business use or further processing

Question 14

What are the types of Consumer Products based on Buying Behavior?

Answer 14

• Convenience
• Shopping
• Specialty
• Unsought

Question 15

What are the types of Convenience Products?

Answer 15

• Staples
• Impulse

Question 16

What is the difference between Homogenous and Heterogeneous Shopping Products?

Answer 16

• Homogenous: Similar quality, compare on price
• Heterogeneous: Differ in features, style is key

Question 17

What defines Specialty Products?

Answer 17

Unique characteristics, special effort required

Question 18

What are Unsought Products?

Answer 18

Low awareness/interest until need arises

Question 19

What are individual product decisions?

Answer 19

• Features
• Benefits
• Branding
• Packaging
• Labelling

Question 20

What is Product Line?

Answer 20

Group of related products

Question 21

What is Product Mix?

Answer 21

All lines/items offered

Question 22

What is Brand Equity?

Answer 22

Value derived from consumer perception of the brand name

Question 23

What are the components of Brand Equity?

Answer 23

• Awareness
• Loyalty
• Perceived Quality
• Associations

Question 24

What are the stages of Product Life Cycle (PLC)?

Answer 24

• Introduction
• Growth
• Maturity
• Decline

Question 25

What is a common strategy during the Decline Stage of PLC?

Answer 25

Reduce support, Harvest, or Drop

Question 26

What is Test Marketing?

Answer 26

Realistic market test before full launch

Question 27

What does the BCG Matrix analyze?

Answer 27

Market Share vs Market Growth

Question 28

What is the definition of Price in marketing?

Answer 28

Amount charged for a product/service

Question 29

What are the key approaches to pricing?

Answer 29

* Cost-based * Value-based * Competition-based

Question 30

What is Cost-based pricing?

Answer 30

Setting price based on production/distribution costs + profit margin

Question 31

What is Cost-Plus Pricing?

Answer 31

Adding a standard markup to the cost

Question 32

What is the formula for Cost-Plus Pricing?

Answer 32

Price = Cost + Markup

Question 33

What is the goal of Promotion in marketing?

Answer 33

Communicate Value, Build relationships

Question 34

What are the tools of Promotion?

Answer 34

* Advertising * PR * Personal selling * Sales promo * Direct/digital

Question 35

What is Personal Selling?

Answer 35

Interpersonal interactions with customers

Question 36

What is Cold Calling?

Answer 36

Contacting prospects with no prior expressed interest

Question 37

What describes the AIDA Model?

Answer 37

Stages of consumer response to promotion

Question 38

What are the stages in the AIDA Model?

Answer 38

* Attention * Interest * Desire * Action

Question 39

What does Organizational Climate refer to?

Answer 39

Prevailing atmosphere, employee perceptions & attitudes

Question 40

How can Leadership Style impact an organization?

Answer 40

Can shape morale, motivation, fear vs collaboration