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Marketing final exam Questions and Answers
Promotion - Correct answer Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response. Promotional Strategy - Correct answer A plan for the optimal use of the elements of promotion: advertising, public relations, personal selling, and sales promotion. Advertising - Correct answer impersonal, one-way mass communication about a product or organization that is paid for by a marketer. Public Relations - Correct answer the marketing function that evaluates public attitudes, identifies areas within the organization the public may be interested in, and executes a program of action to earn public understanding and acceptance. Publicity - Correct answer public information about a company, product, service, or issue appearing in the mass media as a news item Sales Promotion - Correct answer marketing activities - other than personal selling, advertising, and public relations - that stimulate consumer buying and dealer effectiveness Personal Selling - Correct answer A purchase situation involving a personal paid for communication between two people in an attempt to influence each other. Communication process - Correct answer Encodes message, sends message through a channel of communication. Noise in the transmission channel distorts the source's intended message. Reception occurs if the message falls within the receiver's frame of reference. The receiver decodes the message and usually provides feedback to the source. Normally, feedback is direct for interpersonal communication and indirect for mass communication. AIDA - Correct answer an acronym identifying four persuasive steps or desired effects that a brand message might have on customers and
prospects: attention, interest, desire, action. Advertising increases awareness/knowledge, sales promotion is good when customers are in purchase stage, personal selling develops interest and desire. Push strategy - Correct answer a marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise. Pull strategy - Correct answer a marketing strategy that stimulates consumer demand to obtain product distribution. Integrated Marketing Communications (IMC) - Correct answer the careful coordination of all promotion messages for a product or a service to assure the consistency of messages at every contact point where a company meets the consumer. Institutional advertising - Correct answer a form of advertising designed to enhance a company's image rather than promote a particular product Product advertising - Correct answer a form of advertising that touts the benefits of a specific good or service Advocacy advertising - Correct answer a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks Pioneering advertising - Correct answer a form of advertising designed to stimulate primary demand for a new product or product category Competitive advertising - Correct answer a form of advertising designed to influence demand for a specific brand Comparative advertising - Correct answer A form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes Advertising campaign - Correct answer a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals
Flighted Media Schedule - Correct answer a media scheduling strategy in which ads are run heavily every other month or every two weeks, to achieve a greater impact with an increased frequency and reach at those times Pulsing Media Schedule - Correct answer a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods Seasonal Media Schedule - Correct answer a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used Product Placement - Correct answer a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the internet; or at special events Sponsorship - Correct answer a public relations strategy in which a company spends money to support an issue, cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image. Cause-related marketing - Correct answer a type of sponsorship involving the association of a for-profit company and a nonprofit organization; through the sponsorship, the company's product or service is promoted, and money is raised for the nonprofit. Crisis Management - Correct answer a coordinated effort to handle all the effects of unfavorable publicity or of another unexpected unfavorable event. Consumer Sales Promotion - Correct answer sales promotion activities targeting the ultimate consumer. Trade sales promotion - Correct answer sales promotion activities targeting a marketing channel member, such as a wholesaler or retailer.
Coupon - Correct answer a certificate that entitles consumers to an immediate price reduction when they buy the product Rebate - Correct answer a cash refund given for the purchase of a product during a specific period. Premium - Correct answer an extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product. Loyalty Marketing Program - Correct answer a promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers Sampling - Correct answer a promotional program that allows the consumer the opportunity to try a product or service for free. Point of purchase display - Correct answer a promotional display set up at the retailers location to build traffic, advertise the product, or induce impulse buying Trade allowance - Correct answer a price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers Push money - Correct answer Money offered to channel intermediaries to encourage them to "push" products that is to encourage other members of the channel to sell the products Relationship Selling (consultative selling) - Correct answer a sales practice that involves building, maintaining and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships. Sales process - Correct answer the set of steps a salesperson goes through in a particular organization to sell a particular product or service. Conditions that favor personal selling vs. other promotional tools - Correct answer Relationships, more than one-time sales, non transaction focused, target prospective buyers, efficient, managerial control over promotion costs
Sales Maximization Pricing Strategy - Correct answer Sales-oriented, focuses on maximizing dollar or unit sales. Markup pricing - Correct answer the cost of buying the product from the producer plus amounts for profit and for expenses not otherwise accounted for Demand - Correct answer the quantity of a product that will be sold in the market at various prices for a specified period. (LEARN GRAPH) Supply - Correct answer the quantity of a product that will be offered to the market by a supplier at various prices for a specified period. (LEARN MY GRAPH) Price Equilibrium - Correct answer the price at which demand and supply are equal. Elasticity of Demand - Correct answer consumers' responsiveness or sensitivity to changes in price. Inelastic demand - Correct answer a situation in which an increase or a decrease in price will not significantly affect demand for the product. Elastic Demand - Correct answer a situation in which consumer demand is sensitive to changes in price. Variable Cost - Correct answer a cost that varies with changes in the level of output Fixed Cost - Correct answer a cost that doesn't change as output is increased or decreased. Marginal cost (MC) - Correct answer the change in total costs associated with a one-unit change in output. Marginal Revenue (MR) - Correct answer the extra revenue associated with selling an extra unit of output or the change in total revenue with a one-unit change in output.
Break-even analysis - Correct answer a method of determining what sales volume must be reached before total revenue equals total costs. Prestige pricing - Correct answer charging a high price to help promote a high quality image. Price strategy - Correct answer a basic, long-term pricing framework that establishes the initial price for a product and the intended direction for price movements over the product life cycle. Price skimming - Correct answer a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion. Penetration pricing - Correct answer a pricing policy whereby a firm charges a relatively low price for a product initially as a way to meet the mass market. Base price - Correct answer the general price level at which the company expects to sell the good or service Quantity discount - Correct answer a price reduction offered to buyers buying in multiple units or above a specified dollar amount Cash discount - Correct answer a price reduction offered to a consumer, an industrial user, or a marketing intermediary in return for prompt payment of a bill Functional discount (trade discount) - Correct answer a discount to wholesalers and retailers for performing channel functions Seasonal discount - Correct answer a price reduction for buying merchandise out of season Promotional allowance (trade allowance) - Correct answer a payment to a dealer for promoting the manufacturer's product Value-based pricing - Correct answer setting the price at a level that seems to the customer to be a good price compared to the price of other options.
Point-of-sale interactions - Correct answer communications between customers and organizations that occur at the point of sale, normally in a store. Data warehouse - Correct answer a central repository for data from various functional areas of the organization that are stored and inventoried on a centralized computer system so that the information can be shared across all functional departments of the business Data mining - Correct answer data processing using sophisticated data search capabilities and statistical algorithms to discover patterns and correlations in large preexisting databases Ways to use CRM - Correct answer Campaign management, retaining loyal customers, cross-selling other products and services, designing targeting marketing communications, reinforcing customer purchase decisions, inducing product trail by new customers, increasing effectiveness of distribution channel marketing, improving customer service. Lifetime value analysis (LTV) - Correct answer a data manipulation technique that projects the future value of the customer over a period of years using the assumption that marketing to repeat customers is more profitable than marketing to first time buyers. Exchange - Correct answer people giving up something to receive something they would rather have. Conditions of exchange - Correct answer 1. There must be at least 2 parties
- Each party must have something that might be of value to the other.
- Each party is capable of communication and delivery.
- Each party is free to accept or reject the exchange offer.
- Each party believes it is appropriate or desirable to deal with the other party. Customer value - Correct answer the relationship between benefits and the sacrifice necessary to obtain those benefits
Customer satisfaction - Correct answer Customers' evaluation of a good or service in terms of whether it has met their needs and expectations. Production Orientation - Correct answer a philosophy that focuses on the internal capabilities of the firm rather than the desires and needs of the marketplace. Sales Orientation - Correct answer based on the ideas that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits. Market Orientation - Correct answer assume a sale doesn't depend on aggressive sales force, rather the customer's decision to purchase product. Societal Marketing Orientation - Correct answer acknowledges that some products that customers want may not be in their best interests or in the best interest of society. Means that they preserve long term best interests. Marketing Concept - Correct answer states that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organization objectives. Relationship Marketing - Correct answer a strategy that focuses on keeping and improving relationships with current customers. Marketing Strategy - Correct answer the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities. Marketing Plan - Correct answer written document that acts as a guidebook of marketing activities for the marketing manager. SWOT - Correct answer strengths, weaknesses, opportunities, threats. Competitive advantage - Correct answer three types: cost, product/service differentiation, and niche strategies. Sources of cost competitive advantages include experience curves, efficient labor, no frills goods and services, gov't subsidies, product design, reengineering, product innovations, and new methods of service delivery. A product/service differentiation competitive advantage exists when a firm provides
making. Moral development theory that places individuals or groups in one of three developmental stages: preconventional morality, conventional morality, or postconventional morality. Social factors - Correct answer Several major social trends are currently shaping marketing strategies. First, people of all ages have a broader range of interests, defying traditional consumer profiles. Second, changing gender roles are bringing more women into the workforce and increasing the number of men who shop. Third, a greater number of dual career families has created demand for time saving goods. Demographic factors - Correct answer Tweens and Gen Y are increasingly experienced consumers, and because the population is growing older, marketers are offering more products that appeal to middle aged and elderly consumers. Generations - Correct answer Tweens: preteens Generation Y: 1979- Gen X: 1965- Baby boomers: 1946- Ethnic markets - Correct answer Multiculturalism occurs when all major ethnic groups in an area are equally represented. Hispanics fastest growing, then African Americans. Most companies are creating departments to target multicultural market segments. Not homogeneous however. Economic factors - Correct answer 2007-2009 recession has reduced spending power. During inflation, marketers try to maintain level pricing to avoid losing customer brand loyalty. During times of recession, they try and maintain or reduce prices to counter the effects of decreased demand. They focus on product efficiency and improving customer service. Technological factors - Correct answer Essential to monitor new technology to keep up with competitors. US excels in basic research and in recent years has improved track record in applied research. Innovation is increasingly becoming a global process. Political and Legal Factors - Correct answer Subject to federal and state laws. Responsible for remaining aware of and abiding regulations. Key
federal laws are Sherman Act (limits cartels and monopolies), Clayton Act, Federal Trade Commission Act, Robinson-Patman Act, Wheeler-Lea amendment to the FTC act. Manu laws including privacy laws have been passed to protect the consumer. Consumer Product Safety Commission, Federal Trade Commission, and the Food and Drug Administration most involved. Competitive factors - Correct answer The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Global marketing, benefits/rewards - Correct answer Marketing that targets markets throughout the world. Businesses that do this are better able to identify global marketing opportunities, understand the nature of global networks, create effective global marketing strategies, and compete against foreign competition in domestic markets. Global market standardization/adaptation - Correct answer production of uniform products that can be sold the same way all over the world. Culture - Correct answer societal values, attitudes and beliefs, language and customary business practices. Economic/Technological - Correct answer for a country, depends on its stage of industrial development, which, in turn, affects average family income. Political structure - Correct answer Shaped by political ideaology and such policies as tariffs, quotas, boycotts, exchange controls, trade agreements, and market groupings. Major agreements (NAFTA, EU, etc.) - Correct answer NAFTA: North American Free Trade Agreement, world's largest free trade agreement. EU: a free trade zone encompassing 27 European countries. CAFTA: central American free trade agreement Entry strategies - Correct answer firms use the following strategies, in descending order of risk and profit: direct investment, joint venture, contract manufacturing, licensing and franchising, and exporting.
Individual: gender, age, family life cycle stage, personality, self concept, lifestyle. Men and women differ. Marketers often use life cycle stage. Psychological: perception, motivation, learning, values, beliefs, and attitudes. Business marketing - Correct answer the marketing of goods and services to individuals and organizations for purposes other than personal consumption. Relationship marketing - Correct answer Relationship marketing entails seeking and establishing long term alliances or partnerships with customers. A strategic alliance is a cooperative agreement between business firms. Firms form alliances to leverage what they do well by partnering with others that have complementary skills. Categories of business customers - Correct answer For profit, reseller markets, government markets, institutional markers (very diverse nonbusiness institutions whose main goals do not include profits) Business versus consumer markets - Correct answer in business markets, demand is derived, price inelastic, joint and fluctuating. Purchase volume is much larger, customers are fewer in number and more geographically concentrated, and distribution channels are more direct. Buying is approached more formally using professional purchasing agents, more people are involved in the buying process, negotiation is more complex, and reciprocity and leasing are more common. Business buying behavior - Correct answer 5 characteristics. First, buying is normally undertaken by a buying center, secondly, typically evaluate alternative products and suppliers based on quality, service and price. Third, business buying falls into 3 general categories: new buys, modified rebuys, and straight rebuys. Fourth, the ethics of business buyers and sellers are often scrutinized. Fifth, customer service before, during, and after the sale plays a big role in business purchase decisions. Buying center - Correct answer all those people in an organization who become involved in the purchase decision.
Buying situations - Correct answer categorised according to the prior experience of the buyer with the product and supplier; buy classes can be classified as straight rebuys, modified rebuys and new tasks. Market segment - Correct answer a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Market segmentation - Correct answer the process of dividing a market into meaningful, relatively similar and identifiable segments. Criteria for segments - Correct answer 1. market segment must be substantial and have enough potential customers to be viable.
- Must be identifiable and measureable
- Members of market segment must be accessible to marketing
- Marker segment must responds to particular marketing efforts in a way that distinguishes it from other segments. Bases for segmenting business markets - Correct answer two general bases: first, based on company characteristics, second by buying processes the customers use. Steps for segmenting - Correct answer 1. selecting a market for study
- choosing a basis or bases for segmenting
- selecting segmentation descriptions
- profiling and evaluating segments
- selecting target markets
- designating, implementing and maintaining appropriate marketing mixes. 80/20 principle - Correct answer holds that 20 percent of all customers generate 80 percent of the demand. Segmentation bases - Correct answer characteristics or individuals, groups, or organizations, to divide a total market into segments, Major segmentation categories - Correct answer Geographic, demographic, psychographic, benefit Target Market - Correct answer a group of people or organizations for which an organization designs, implements, and maintains a marketing mix
Database marketing - Correct answer the creation of a large computerized file of customers' and potential customers' profiles and purchase patterns. Research design - Correct answer Researcher creates an overall research design to specify how primary data will be gathered and analyzed. Before collecting data, the researcher decides whether the group to be interviewed will be a probability or nonprobability sample. Once data has been collected, the researcher analyzes them using statistical analysis. The researcher then prepares and presents oral and written reports, with conclusions and recs for management; Finally, the researcher determines whether the recommendations were implemented and what could have been done to make the project more successful. Mall intercept intercept - Correct answer a survey research method that involves interviewing people in the common areas of shopping malls Computer assisted personal interviewing - Correct answer an interviewing method in which the interviewer reads the questions from a computer screen and enters the respondent's data directly into the computer. Central location telephone facility— - Correct answer a specially designed phone room used to conduct telephone interviewing Executive Interview - Correct answer involves interviewing businesspeople at their offices concerning industrial products or services. Focus Group - Correct answer seven to 10 people who participate in a group discussion led by a moderator. Openended question - Correct answer encourages an answer phrased in the respondent's own words Closed ended question - Correct answer asks the respondent to make a selection from a limited list of responses. Scaled response question - Correct answer a closed-ended question designed to measure the intensity of a respondent's answer.
Observation research - Correct answer a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity. Ethnographic research - Correct answer the study of human behavior in its natural context, involves observation of behavior and physical setting. Experiment research - Correct answer a method a researcher uses to gather primary data. Scanner-based research - Correct answer a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy. Consumer product - Correct answer everything, both favorable and unfavorable, that a person receives in an exchange. Business product - Correct answer a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers. Consumer product - Correct answer a product brought to satisfy an individual's personal wants. Shopping product - Correct answer a product that requires comparison shopping because its usually more expensive than a convenience product and is found in fewer stores. Specialty product - Correct answer a particular item that consumers search extensively for and are very reluctant to accept substitutes. Unsought product - Correct answer a product unknown to the potential buyer or a known product that the buyer does not actively seek. Convenience product - Correct answer a relatively inexpensive item that merits little shopping effort. Product item - Correct answer a specific version of a product that can be designed as a distinct offering among an organization's products.
