Marketing 3000 Exam 1 – Joel Poor

question

What is marketing?
answer

the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services in exchanges that satisfy individual and organizational objectives.
question

What is the scope of marketing/to what situations can marketing be applied?
answer

To make $$
question

What is marketings first task?
answer

Discover customer needs
question

What is marketings second task?
answer

Satisfying customer needs
question

What is the marketing mix/What are the four P’s?
answer

Product, Prices, Promotion, Place
question

What are some benefit categories?
answer

Functional, Social, Personal, Experiential
question

What is a functional benefit and give an example of a product that has functional benefit?
answer

can get something done with it, is a useful tool, ex: hammer, gas, car, toothbrush, house. For Marketing 3000 the functional benefit is the course credit you will receive, and the knowledge about marketing you will obtain
question

What is a social benefit and give an example of a product that has social benefit?
answer

connects you to others or helps you be more acceptable in others eyes, ex: cell phone, facebook, bars, twitter, greeting cards, skype, colone, in Marketing 3000 the social benefit is that you could meet new friends in the class
question

What is an experiential benefit and what is an example of a product that had experiential benefits?
answer

it’s about being there and in the moment, ex: football game, concert, golden girls, mascots, souveneirs, food, traveling, amusement parks, movies
question

What is a personal benefit and what is an example of a product that has personal benefits?
answer

helps with self-esteem, feel better as a person, ex: exercise, mirror, make up, showers, massages, shopping, in marketing 3000 the personal benefit is you feel good about learning or doing well
question

What are some examples of types of costs?
answer

Monetary, Temporal, Psychologicaal, Behavioral
question

What is a monetary cost?
answer

what you pay, example: tuition
question

What is a temporal cost?
answer

the time spent where you could be doing something else, ex: time spent in class, studying
question

What is a psychological cost?
answer

the psychological toll it has on you as a person, ex: stress from class, studying
question

What is a behavioral cost?
answer

the toll it has on you physically, ex: energy walking to class, getting sick from class products that have behavioral costs are cigarettes, alcohol drugs
question

What is the immediate environment factors of the marketing framework?
answer

1. the company 2. the competition 3. the corporate partners
question

What are the macroenvironmental factors of the marketing framework?
answer

Culture Political/Legal Economic Demographics Social Trends Technology
question

What are the three phases of a strategic marketing plan
answer

1.Mission 2. Environmental Analysis (SWOT) 3. Segmentation, Targeting, Positioning
question

What is the first step of a strategic marketing plan?
answer

Defining a mission or a vision
question

What is Proters Five Forces Model?
answer

Is is a corporate strategy that determines what industry will be profitable by looking at: 1. Industry competitveness 2. Availability of substitutes 3. Potential Entrants(threat of new competition) 4.Supplier Power 5. Buyer Power
question

What does Indusrty Competitiveness depend on?
answer

Industry intensity; if low intensity then high profitability. Itensity is determined by how many firms are competing so less firms equls lower intensity and therefore more profit.
question

What is an example of a market with low intensity?
answer

The Aircraft market – not very many people make airplanes, basically just Boeing, Airbus, maybe a few others
question

What is a substutue?
answer

A product people use in replacement of another. Few substitues=higher profitability.ex:gas, drugs. many substitue examples are techonological products, vegtables, grocery stores, fast food
question

What are barriers to entry?
answer

When it is hard for a new company to get started in a specific industry. High barriers to entry=high profitability
question

When are there high barriers to entry?
answer

high capital reuirements, economies of scale are present, high product differentiation (wristwatch industry), network externalities(technolocial or learning curve-aka software)
question

What is an example of an industry that has high barriers to entry?
answer

The automobile industry(high capital requirements, economies of scale), Word Processing Software(network externalities)
question

What is supplier/buyer power?
answer

The amount of bargaining power each group has.
question

When is there low bargaining power?
answer

When there is a high number of potential buyers/suppliers, when there is low information
question

Example of low supplier power
answer

Computer Industry (hard disk drives), tire makers
question

Example of low buyer power
answer

Medical Services (Patients)-hard to find quality and money information about the medical field
question

Under the Boston Consulting Group growth-share matrix, what is a star?
answer

High growth rate and high market share
question

Under the Boston Consulting Group growth-share matrix, what is a question mark?
answer

High growth rate and low market share
question

Under the Boston Consulting Group growth-share matrix, what is a dog?
answer

Low growth rate and low market share
question

What is an example of a star?
answer

Apple products such as the Ipad
question

Under the Boston Consulting Group growth-share matrix, what is a cash cow?
answer

Low growth rate and high market share
question

What is an example of a cash cow?
answer

Budweiser
question

What is an example of a dog?
answer

King Cobra
question

What are the Macro Strategies for Developing Customer Value?
answer

Product Excellence, Operational Excellence, and Customer Excellence
question

Give an example of a firm with Product Excellence?
answer

Apple, Virgin, Abercrombie and Fitch
question

Give an example of a firm with Operational Excellence?
answer

McDonalds, Chipotle, UPS
question

Give an example of a firm with Customer Excellence?
answer

Zappos
question

What is step two in a Strategic Marketing Plan
answer

Conduct a Situation Analysis-SWOT
question

What does SWOT stand for?
answer

Strengths (positive, internal), Weaknesses (negative, internal), Opportunities (positive, external), Threats (negative, external)
question

According to Ansoff’s Product Market Expansion Grid, What is Market Penetration?
answer

Intensive growth strategy for existing products in existing markets
question

According to Ansoff’s Product Market Expansion Grid, What is Market Development?
answer

Intensive growth strategy for existing products in new markets
question

According to Ansoff’s Product Market Expansion Grid, What is Product Development?
answer

Intensive growth strategy for new products in existing markets (Iphone 5)
question

According to Ansoff’s Product Market Expansion Grid, What is Diversification?
answer

Intensive growth strategy for new products in new markets
question

Market Leader
answer

Trying to: expand market, defend market share, expand market share
question

Market Challenger
answer

Trying to: attack leader and the status quo
question

Market Follower
answer

Trying to: imitate others in market
question

Market Nicher
answer

Trying to: specialize within the market
question

What is step 3 of a Strategic Marketing Plan?
answer

Segmentation, Targeting and Positioning
question

What is market segmentation?
answer

the process of dividing the total market for a good or service into several smaller, internally homogenous groups
question

Why segment?
answer

Allows to visualize prospective customers in designing marketing mix (aka 4 ps!) AND allows to concentrate resourses on only one or a few market segments
question

What is the segmentation process?
answer

1. Identify current and potential needs/wants within a market (consumer behavior, market research) 2. Identify distinguishing characteristics among segments 3.Determine the potential for the segment and how well they are being satisfied (forecast demand and potential market share)
question

Types of Market Segmentation
answer

Demographic, Geographic, Psychographic, Purchase Behavior, Benefit
question

What are the different types of usage behavior?
answer

Usage (light, medium or heavy users), Loyalty (brand loyal or variety seeker), User Status (users v. nonusers, former users)
question

Guidelines to Segmentation
answer

1. Buying behavior is rarely traceable to a single characteristic (always segment on more than one variable) 2. Segmentation characteristic chosen should provide clearest and most distinct market division (gender) 3. Be aware of interrelationships among segmentation characteristics (correlation b/w age & income)
question

What are some Target Marketing Approaches
answer

Mass Marketing, Niche Marketing, Differentiated Marketing, Individualized(customized) Marketing
question

What’s mass marketing?
answer

NO segmentation, one product for all customers, doesn’t really exist anymore
question

What is niche marketing?
answer

one product for one segment (shot bar, hot box cookies)
question

What is differentiated marketing?
answer

Multiple products for multiple segments (general mills – trix, cheerios, wheaties, etc.) (pepsi makes pop and Naked juice) (GAP – baby gap, banana republic, old navy, etc.)
question

What is Individualized (Customized) Marketing?
answer

Customizing product/service for individuals (Nike tennis shoes, Cars, Subway, etc.)
question

What are the effective segmentation and targeting characteristics that lead to profitability?
answer

Identifiable, Substantial, Reachable, Responsive
question

How many US nonprofit organizations are there?
answer

Over 1 million, that generate 1.1 trillion in revenue each year and account for about 7% of all employment
question

What are some main types of nonprofit organizations?
answer

Arts/Culture/Humanities, Education, Religious, Cause-Based Groups
question

What is the food bank strategy?
answer

-provide multiple reasons to give -communicate efficiency of serving constituency -use partnerships-use publicity
question

Who/What are nonprofits targeting?
answer

1. Mission based 2. Consumers of nonprofit products/services 3. Multiple constituencies (ex: University must target students, parents, legislature, employers) 4. Those they are Serving 5. Donors
question

Segmentation of non-profit: Donor Profiles
answer

Communitarian (26%, local charity givers to improve community), devout( 21%, religous/moral obligation), Investors (15%, rather support nonprofit then govt), Socialites (11%, arts, education, religious giving because of entry to group), Repayers (10%, loyalty to give back- education)
question

What are non profit donor benefits?
answer

personal(feel good), social(belong to donor group, special event invites), functional(reduce future costs, tax break), experiential(fundraising events, enjoyable volunteer experience)
question

effective segmentation and targeting characteristics that lead to profitability: IDENTIFIABLE
answer

Who is in the market? (can we identify users, non-users and former users?) are the segments unique? does each segment require a unique marketing mimx?
question

effective segmentation and targeting characteristics that lead to profitability: SUBSTANTIAL
answer

size matters, too small and it is insignificant, not profitable.
question

effective segmentation and targeting characteristics that lead to profitability: REACHABLE
answer

persuasive communication and distribution -people without computers (target through other markets such as TV ads) -ways to reach college students (twitter, FB, youtube, ESPN, the add sheet)
question

effective segmentation and targeting characteristics that lead to profitability: RESPONSIVE
answer

customers must: -react positively to a firms offering -move toward the firms products/services -accept the firms value proposition
question

Responsive example (Sorority Grades)
answer

AXΩ wants the highest grades, gpa cuts during rush, however the house is always crazy and loud so nobody can study (might as well not target)
question

Effective segmentation and targeting leads to profitability
answer

Identifiable + Substantial + Reachable + Responsive = Profitable
question

Competitive – Based Positioning
answer

categories – hierarchical order of categories category membership – statement of membership important (for new products to show that brand belongs) EX: becca’s burgers compares itself to McDonalds and BK – they state their claim/how they are different
question

Correlational inferences
answer

AVOUD AT ALL COST! EX: KIA “we are the cheapest and best quality” -people won’t believe both claims. -when positioning only stress ONE benefit of product
question

Brand Essence: Laddering Up
answer

Dove – true colors campaign (sincerity, no false promises, natural/clean, basic, simple. **Huge success for Dove!
question

Brand Essence: Laddering Down
answer

Ford F-150 – tough/rugged – powerful engine
question

What is brand essence?
answer

Abstracted benefits that relate to consumer goals -Laddering up/down
question

What are the 5 general personalities to match when goal positioning?
answer

sophistication, ruggedness, confidence, sincerity, excitement.
question

How are Apple’s products competitively positioned in general?
answer

Innovative Quality – State of the art design – people want the best
question

Which firm poses the greatest threat to apple today? in 5 years?
answer

Samsung & Google!

Get instant access to
all materials

Become a Member