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IvySftware MARKETING
IVY SOFTWARE MARKETING SERIES FOR THE MBA Program
| Question | Answer |
|---|---|
| DEFINE MARKETING | Organizational function and set of processes for creating, communicating and delivering value to a customer while managing customer relationships to benefit the organization and its stakeholders. (AMA definition) |
| What are the 4 P's in marketing? | 1.Product 2. Place 3. Promotion 4. Price |
| What are internal environments? | Things managers can control In a SITUATIONAL ANALYSIS: SWOT objectives: Strengths and Weaknesses are internal environments Opportunities and Threats are External environments (less/NO control ) |
| What are external environments? (marketing process) | Things that a manager can not control Using the SWOT objectives: Strengths and Weaknesses are internal, while Opportunites and Threats are external environmental issues |
| What are the SMART objectives? (Setting Marketing Objectives) | S-Specific M-Measurable A-Actionable R-Realistic T- Time oriented |
| What's the purpose of developing marketing strategies? | To find a sustainable competitve advantage(s) using one of the 4 growth strategies: 1 Market penettation 2. Market development #. Product development 4. Diversification |
| If you Implement a Marketing strategy what are you doing? | If you implement a marketing strategy, you are EXECUTING the strategy. |
| Evaluate and measure -- If the objectives have been met what do you do? | You will MONITOR AND EXECUTE as things unfold --Evaluate and measure then execute and monitor it all. |
| What's the Marketing Global environment? | All organizations are affected by the growing influence of International Marketing Strategies for many companies. |
| Marketing Ethics | Moral codes, values and standards to determine whether marketing actions are good or evil and if they are right or wrong. |
| Social Marketing or Socially Responsible Marketing | A way to achieve sustainable competitive advantage ( its just one way) |
| What is social responsibility in marketing? | It's the obligation for marketing organizations to do NO HARM to the social environment and to use skills and resources to enhance environments (AMA definition) |
| True or False Only marketing organizations in business to make a profit engage in marketing activities. | FALSE All types of organizations engage in marketing activities |
| True or False The best definition of marketing is SALES or ADVERTISING | FALSE --Marketing encompasses sales generation, promotional tools of advertising but marketing is much broader than these simple definitions suggest |
| True or False Most contemporary marketing organizations practice Market Orientation Philosophy? | TRUE- Adoption of a marketing orientation began in 1950 and is at the point where most organizations remain today. ( some will argue with this but thats the online answer) |
| The marketing concept practiced only by organizations that have adopted the SOCIETAL MARKETING ORIENTATION requires: | Requires that an organization understands the needs and wants of customers, puts them first throughout all the organizations functional areas, and aligns customers satisfaction w organizational objectives. (I think) |
| True or False Remembering SWOT..... A marketers INTERNAL ENVIRONMENT includes opportunities and threats such as changes in Economy | FALSE The economy is an EXTERNAL environment variable that cant be controlled. Internal environment is compromised of the 4 Ps. Price,Promotion, Place and Product (things you can control easily) |
| True or False Marketing process culminates in a Marketing Plan, which is a written document that explains both Strategy & Tactics and is part of the companies overall Business Plan. | TRUE this is the definition of Marketing plan if you look it up |
| A SWOT analysis which examines a company's strength and weaknesses its opportunities and threats happen at implementation of marketing strategies stage of the Markeitng process? | A SWOT anaysis take place during the SITUATIONAL ANALYSIS STAGE of the marketing Process (situational analysis) |
| T or F Are increase sales of goods an example of SMART objectives | FALSE Specific, measurable, actionable, Realistic, Time oriented SMART You have to have all in the statement. |
| True or False Critical to target market selection for a marketing organization is the organization is the recognition that not everyone can be considered a potential customer | TRUE effective marketing strategy requires careful selection of well defined group (s) that will be the foucs of n organizations marketing mix or the 4 Ps. |
| True or False Only organizations that actively produce and sell product in international markets needs to be concerned with global economy. | FALSE Organizations of all types need to be aware of the influences of international markets. |
| scenerio question: Paul has a frequent buyers card so when he buys 6 cups of coffee he gets one free. He pays $1.75 per large cup drive up or $7.99 per bag in the grocery. He never buys donuts but LOVES the taste of the coffee, cheaper than starbucks. | Whats the best example of a key PRODUCT BENEFIT whch appeals to Paul? Name a product feature---- ITS THE GREAT TASTE OF THE COFFEE AT DUNKIN DONUTS THAT IS THE PRODUCT FEATURE. |
| Using the same scenerio with Paul loving the coffee, its less expensive than starbucks, he can go to the drive up or buy it in the store What is an example of the promotional activity? | The promotional activity would be Dunkin Donut giving the customer a frequent user card ( It's a promotional because it gives the customer a slight discount) |
| What would be the DISTRIBUTION DECISION that helps Paul buy the coffee? A.the frequent buyer card, B. the drive up window, or C. the taste of the coffee | The distribution decision that helps Paul purchase his coffee is B. DRIVE UP WINDOW. |
| What is the PRICING strategy used to get Paul to buy the coffee. | The pricing strategy that is used to get Paul to buy the coffee is the thought that its less expensive that Starbucks. |
| What does the good tasting coffee that Paul buys represent? | STRENGTHS (SWOT/situational analysis) |
| Lots of competition would represent a_________ | THREAT (SWOT/situational analysis) also Threats are considered external environments because you can not contol them. |
| Growing consumer desire for quality products delivered quickly represents either Strength Weakness Opportunity or Threats. Which? | OPPORTUNITY (SWOT) |
| A WELL RECOGNIZED brand name represents_____. | STRENGTH (SWOT) |
| Your company name implies UNHEALTHY FAST FOOD PRODUCTS which represents a ______ | WEAKNESS (SWOT/situational analysis) |
| If you have regional but not national recognition then that is a _____. | Weakness (SWOT) its an internal environment because you have control over it and can make changes. |
| If research indicates your consumer group spends a lot of time commuting, this represents an _______. | OPPORTUNITY (to open more stores) |
| If Dunkin Donuts opened a store in Canada (can you match up the Growth Strategy with a marketing activity) is that Market penetration, Market development, product development or Diversification? | Opening a new store in canada would be a Market Development because it introducing DD coffee to new people in a new location. |
| If Dunkin adds lunch items to its menu that would be________ | Product development |
| If Dunkin Donut developed its own signature brand of ice cream and sells it in grocery stores that would be 1. Market penetration, 2 Market development 3 Product development 4 diversification | Seeling it in grocery stores makes it 4: diversification |
| Dunkin Donut sell coffee in cups at the drive thru but they also grind and sell 1 pound bags of coffee in all of its stores. Is that Prooduct development, product penetration, market development or diversification? | Product penetration --its really another way to introduce the same product to people. |
| What are smart marketing analysis objectives? | S- specific M- measurable A-actionable R- realistic T- time oriented You have to use all in the same sentence for it to be a SMART objective. Anything less and its not SMART. |
| True or FALSE Would an increase in sales represent SMART marketing? | False an increase in sales volume is not measurable nor time specific and not every objective is stated. |
| T or F Would an increase in the number of supermarkets carrying Dunkin Donut bagged coffee by 10% be a SMART marketing objective? | FALSE Increasing the number of supermarkets carrying coffee by 10% is NOT TIME SPECIFIC. not all the SMART objectives are listed in the same statement. |
| If you improve Customer service, is that a SMART objective? | False Improving customer service is NOT MEASURABLE nor TIME SPECIFIC and not all the SMART objectives are clearly stated. |
| IF YOU GENERATE MORE SALES VOLUME WITH EXISTING CUSTOMERS BY 20 % by THE END OF A FISCAL YEAR is this a SMART objective | YES IT IS A SMART OBJECTIVE: It says that you can not measure this increase in the numbers of customers purchasing coffee by the 20% but by giving it a time frame then that makes it time specific so yes it is considered a SMART objective. |
| Name the 4 growth strategies: | 1. Market penetration 2. Market development 3. Product development 4. Diversification |
| If the number of production errors for the DD cups drops by 20% over the next fiscal year? Does this use SMART marketing objective? | No because increasing the number of customers purchasing both coffee and food by 20% would be specific, measurable, actionable realistic and time oriented but the vague mention of reducing errors for the cups by 20% within a year can not be followed. |
| Final exam question 1 Proctor and Gamble introduces New Products after extensive Marketing Research for customers wants and needs. Is this A Product orientation B Market Orientation C Sales orientation D Distribution orientation | logically you can eliminate distribution so is it A. B or C? Sales orientation is hard core selling like door to door. So is it A or B? market orientation is knowing peoples wants and desires. so A or B? |
| Verizon Fios entered the makret place to compete w existing cable companies, Verizon went Door to Door to offer Customers Deep Discounts to switch. Their efforts are described as 1.Product orientation 2 Market orient.3 Sales orient. 4 customer orientation | Pick one Its SALES ORIENTATION. hard core sales like door to door and high pressure sales in a highly competitive market place |
| When Home Depot started losing sales to competitors the retailer retained sales assoc. to better serve customers needs. Is their effort considered: 1.Product Orientation 2 Market Orient. 3 sales orient. 4 Retail orientation | pick one Its MARKET ORIENTATION. fully understanding customers wants needs and desires. |
| Final exam question 4 Societal Marketing Orientation is: | A company's use of moral codes, values, strategies/standards to determine whether marketing actions are good or evil |
| Exam question5: When Arm and Hammer suggested that customers put baking soda in the fridge to absorb odors, what strategy did they use? 1. Market penetration 2. Market development 3. Product development or 4. Diversification | pick one This is like the dunkin donut option to buy one cup or a 1 lb bag of ground. Same product sold to the same group of customers. |
| When Ikea announced it would build 10 new stores per year for the next 5 years to increase sales, Ikea was: a. Developing makret strategies B implementing market strategies C. evaluating whether objectives were met or D. setting market objectives | pick one SETTING MARKET OBJECTIVES are set for variables such as sales volume profit arket shares and return on investment. |
| Exam question 7: When APPLE relased the iphone what was Apple pursuing? A. Market penetration B Market Development C Product development d. Diversification | pick one I think its: Market penetration occurs when a company penetrates a market in which current or similar products already exist. |
| Define Market penetration: | Market penetration occurs when a company penetrates a market in which current or similar products already exist. |
| Define Product development: | (existing markets, new products): McDonalds is always within the fast-food industry, but frequently markets new burgers. the complete process of bringing a new product to market. |
| Define Market developments: | (new markets, existing products): Lucozade (sports energy drinks) was first marketed for sick children and then rebranded to target athletes. |
| Define diviersification: | (new markets, new products):diversification requires a company to acquire new skills, new techniques and new facilities. strategy to increase sales volume from new products and new markets. DD making ice cream and selling it in stores is an example. |
| What's Sales Orientation | Hard core sales activites, DOOR TO DOOR sales, High pressure sale (if you see door to door sales then that is sales orientation on the test my guess) |
| Customer orientation is nearly the same as Market orientation, which is___: | The needs and wants of customers comes first, aligns with customer satisfaction, organizational objectives, marketing ethincs like morals, values, standards used to determin good vs evil |
| What is Societal Marketing orientation? | its a philosophy that many compaines claim but few practice ( thats the answer for all the test questions that mention societal marketing) |
| Market penetration is______ | increase sales in existing markets w existing products. an example would be introducing a new smartphone into a market saturated in smartphones but yours has one cool feature the others dont. |
| Whats setting marketing objectives? | its a set of variables such as sales volume, profit market share and return on investments |
| Development in market strategy is: | Target market and targeting mix |
| Implement and evaluation in marketing is: | Not part of the overall objective setting process. they are a subset of the process. |
| EXTERNAL ENVIRONMENT | includes Political, legal, regulatory, natural, technological, socio-cultural, competitive things you have little or no control over |
| What is SMART marketing objectives | Specific, Measurable, Actionable, Realistic, Time oriented an example would be Increasing (being actionable) the number of customers by (specific=measurable) 20% (also realistic) who purchase both coffee and food by the end of the 2nd quarter(time specifi |
| INTERNAL = | Strengths and weaknesses like good tasting coffee, well recognized brand name are strengths business name implies fast food=weakness Internal things are things you can control or change |
| EXTERNAL= | opportunities and threats Delivered quickly or putting a drive up where ppl commute=opportunity/ while lots of competition, inflation in prices might be threats to your business |
| If Dunkin Donut opened stores in Canada what would that be an example of: | Market development (new market /existing product) |
| If Dunkin Donut added lunch items to their menu, what would that be? | Product development (existing market, new product) |
| If DD makes ice cream and sells it through local grocery stores what is that? | Product diversification (new markets new product) |
| Would increasing sales volume be a SMART marketing objective? | No because it isnt measurable or time specific |
| Would increasing the number of supermarkets carrying 1 lb dunkin donuts coffee by 10% be SMART marketing objectives? | No the test says its not time specific and not measurable You didnt say by the end of the quarter and no mention of a percentage of supermarkets carrying the coffee...? I guess? |
| What if you say you plan to generate more sales value (how much?)w existing customers(how many) by the end of fiscal year 2013---is this SMART marketing? | No its not measurable You have to have all or most of the specific, measurable,actionable, realistic and time specific S>M>A>R>T> for it to be correct |
| Customers must be either __________ or __________ buyers | Customers are either CONSUMERS or they are BUSINESS BUYERS |
| What are the 5 steps that a consumer makes? | 1. Recognize the problem, I need____. 2. do Information Research 3. Evaluate alternatives (a consideration set is made anything not in this set is not considered) 4. Make a purchase decision (to buy or not to buy-) 5. Make a Post purchase evaluation |
| List a few of the things that CONSUMERS think about when buying? | 1. impulse buying 2. Brand loyalty 3. Routine Response buying 4.Limited Problem Solving purchases. Things like family life cycle, personality, demographics, motivation, beliefs, altitudes, social and cultural factors, the value, subculture, and family |
| B2B business to business buying depends on a committee process: | Managerial input Budgets Size of purchases Needs/Goals and conflict A buying department Demands of other business Activities |
| Name the 4 types of Business buyers: | 1. PRODUCERS- like proctor and Gamble manufacture goods and services 2. RESELLERS wholesalers dist. and retailers 3. GOVT. federal state and city-- biggest B2B purchasers 4. INSTITUTIONS hospitals schools, jails, food, cleaning, office supplies and etc., |
| B2B buyers have 4 decision processes: | 1. Recognizing the problem at hand 2. Product specifications 3. Search for and evaluation 4. Product and supplier selection. choice of who to do business with. |
| What is NEW TASK BUYING? (B2B) | New Task buying is more complex and its the first time purchasing of a product and is considered MOST RISKY. |
| What is MODIFIED RE-BUYING? (B2B) | Modified Re-buying: its the purchase of something previously purchased before. A re-evaluation of the purchase say maybe something needs to be modified or a change was made in the vendor or need for an improved product or change. |
| What is a STRAIGHT RE-BUY: (B2B) | A straight RE-BUY is a business routine response purchase. Say a company orders a computer part. It works fine in assembly plant so they just keep re-buying the same part with no issues. This is the least risky and is easy. |
| What is the HEART of a business purchase? | The BUYING CENTER is the heart of the business purchase and is AN INFORMAL GROUP*** OF INDIVIDUALS that make any buying decisions |
| A sales person needs to be detective and figure out each person involved in the buying center and the role of who is buying and why. True or False? | TRUE -need to figure out who the influencer, purchaser, users and gatekeepers of the Buying center are. This informal group of people all have roles in the decision making. |
| Name the 4 types of business buyers: | 1. Producer 2. Reseller 3.Government 4. institutions I'm going to make a few cards with this question so memorize it. |
| Business Markets need to know: | customer type, geographic location, customer size and the product uses. Sellers need to profile who is buying their products and why. The seller needs to know if its economically feasible. |
| What is the target market? | The Target Market is who is going to buy our product at what cost and how do we promote and advertise it? Its the consumer or B2B buyer that they decide is gong to be a potential customer. |
| What is product positioning? | It's when you establish a unique place in the minds of a Target Market, relative to the competitors. VOLVO=SAFETY like upscale stores make you feel better about yourself so you want products from there. |
| What about LIFESTYLES? What should you know about Lifestyles? | Lifestyles are not used as effective bases for segmenting business markets. they are a: SEGMENTATION BASE FOR CONSUMER MARKETS! |
| ONE on ONE is also called: Concentrated Targeting | ONE specific company's product is marketed to an age appropriate or specific group of people to meet their needs . a fake example: ME jeans in a cool store geared to attract teens into their store to wear their product. |
| What are CONSUMER PRODUCTS? | Consumer products ARE GEARED TOWARD CUSTOMERS NEEDS AND CATEGORIZED INTO 1. CONVENIENCE (INEXPENSIVE ROUTINE) 2. SHOPPING (some effort is made to decide on product) 3. SPECIALTY PRODUCTS More time and effort and more expensive suits.cars, etc,. |
| Business Products are: (5 things) | 1. installation 2. Accessory Equipment 3. RAW materials /component parts 4. process materials/ MRO supplies 5.Business service categories |
| Whats the IMPORTANCE OF NEW PRODUCTS? | when a company introduces a new product hopefully it will not cannibalize the other products that they have on the market. Sometimes new products are introduced to discontinue older products for something new, wit more options, fancier, more expensive. |
| BRANDING is | Branding is a multi-dimensional concept using a name, logo, symbol, or feature that becomes symbolic of the product and it makes consumers want to have it. |
| What does the term BRAND EQUITY mean? | Its the value of your brand, the consumers attitude toward your product, the financial value. TRADEMARK/TRADE NAMES 1. Private Brand 2. No specific Brand 3.Generic Family Brands/individual brands Packaging also is a way to advertise |
| There are special considerations in Managing services for your business and one of the most important things is: | THE PEOPLE WORKING FOR YOUR COMPANY REPRESENT YOUR COMPANY so they need to be trained property and they need excellent customer skills. If people have a bad experience w an employee they no longer will shop at your store or buy your products. |
| What are the 4 steps in the PRODUCT LIFE CYCLE? | 1. Introduction of a new product 2. Growth-people find it desirable and want it 3. Maturity-many have purchased it, sales slow then stop unless its reinvented 4 Decline in sales and the company needs to reinvent it or replace it with new products. |
| What is PRODUCT ADOPTION? | Realizing that new products are tough to sell. People dont like change. Products that sell will be simple. Simple instructions. Have an advantage over old products. needs to have a return policy. As people purchase it more will want it. |
| With Product adoption comes DIFFUSION. what's that? | 1. innovators first use it 2.5% 2 Early adopters 13.5% ->target market group 3. early and late majority buyers make up 34% each or 68% of buyers. All buyers need to be persuaded to buy products. |
| what exactly are you doing when you are PROMOTING A PRODUCT? | You are informing, persuading, and reminding your target audience/customers about the product, your company, and making sure they remember your BRAND, company name, logo... so they remember you and you end up in their consideration set. |
| True or false Is more money spent in promoting than on actual advertising of a product? | TRUE More money is spent on promoting than on advertising. (informing, persuading and reminding your customers about your company and product and why you need it) |
| What is PUSH and what is PULL promotional strategy? | companies that advertise to nationally branded products DIRECTLY to consumers use PULL promotion while. PUSH--- aims promotional activities to wholesale/retailers who move it to customers. |
| In Promotional planning what do you want customers to know? | You need to communicate to target market the important information like what products you have, the price range of each, benefits of your product, where they can purchase it. (INTEGRATED MARKETING COMMUNICATIONS-reviewing the company's marketing plan) |
| Publicity is considered FREE advertising but whats the reality? Who has control over publicity in other words? | Publicity is free advertising but it is "controlled by the media and PR professionals." |
| Purchasing products can be lumped into 3 categories by the person purchasing prodcuts. What are the 3 categories? | 1. Convenience-- rotine sales like Toilet paper, heating oil, gum 2. Shopping-- some effort is made at selecting like jeans, jewelry, tires and who cuts your hair. 3. Specialty purchases-more expensive, shoppers compare prices. CARS/suits/big items |
| Distribution and pricing is a concert with products and promotions Distribution includes the movement of products to get them on the shelves to buyers and the transfer of ownership. who is involved? | intermediaries, middle men, wholesalers, distributors, jobbers, resellers, Retailers--- they all earn a profit for their funciton as they get products sold |
| Whats a distribution strategy goal? | Its to transfer products to producer to the end user. Do you buy milk at a dairy or meat at slaughter house? No you go to a grocery store where all items are readily available for you to purchase. Retailers and wholesalers get items into the store. |
| Wholesaler intermediaries sell to________. | WHOLESALERS SELL TO BUSINESSES Retailers sell to end users/consumers 1. general mechandise 2. specialty and 3. non store retailers |
| DIRECT CHANNEL STRUCTURE consits of what? INDIRRECT CHANELS OF STRUCTURE does what? | DIRECT-- is B2B markets with fewer intermediaries acting. INDIRECT- has large number of intermediaries seen in consumer markets. they pass the product from person to person until it is sold. producer to wholesaler to retailer to consumer is an example. |
| True or false The supply chain is also called Logistic Management or Logisitics? | TRUE The supply chain is the smae as logistics or logistic management. |
| What is INTENSIVE DISTRIBUTION? | Intensive distribution --for lower priced convenience products and routine purchases. It is the #1 most common |
| What is selective distribution? | selective distribution include highly shopped for brands. Customers have brands in mind before taking time going shopping for them. shopper must feel good for shopping and pruchasing item. |
| What is EXCLUSIVE DISTRIBUTION? | exclusive distribution --specialty products like fancy cars, fancy jewelry and these tend to be expensive purchases that make people feel especially good about the purchase. |
| What are the 3 pricing objectives? | Profit maximization-want people to desire brands@ above market prices. SALES MAXIMIZATION-company pursues growth and maximum sales at a below market price point. STATUS QUO-similar items similarly priced like coke and pepsi |
| 2 factors that determine a price strategy: | 1. COST-cost to produce product affects price of product 2. DEMAND- what people are willing to pay for a product 3. Competition-whats already on the market? at what prices? 4. Market-product lifecycle stage- it gets cheaper the longer its avail. |
| Thinking about a products life cycle... What do you sell a new product for when it first goes on the market? How do you decide the price? | 1New product pricing- new products are slightly higher priced 2. Penetration pricing-enter at a lower price so you sell more immediately 3. Product line pricing-item at a set price 4 promotional pricing-introductory price for set time |
| Do discounts, deals, allowances, coupons, rebates, bonus packs lure in new buyers? yes or no | Yes everyone likes a deal. discounts, deals, allowances, coupons, rebates, bonus pack deal all might get people to try a product. Its good because some will like it and continue buying it once they try a product. |
| Most things on the shelves have a regulated price. Pricing is the most regulated legal issue. name some terms that are concerns consumers might think about when they think of the prices of products--- | Price fixing Price discrimination Predatory pricing- |
| true or false The final selling price of a product determines the level of profit a company earns period. | This is true. The final price of a product determines if the company is going to profit or lose money. (final cost of the item minus the cost to produce it and get it on the shelves and pay workers and for materials to manufacture it = profit essentially) |
| All products can be placed on a continuum from pure goods at one end to pure service at the other end. Most products fall somewhere along that continuum. Name 3 things that fall on the service side of the continuum? | 3 items on the service side might be: 1. manicures 2. legal services 3. Carpet cleaning Someone provides the service and it is performance based. Look for intangibility, inseperability, perishability and heterogeneity |
| Intangible means: | things that can not be held, touched examined or taken home and put on a shelf. No physical dimensions. IT IS MORE LIKE AN ACT THAT TAKES PLACE AT A CERTAIN POINT IN TIME. ex. Life insurance companies use advertising/logos so their service seems tangible |
| Inseperability means: (Think how an employee represents the company that they work for...) | a service is both produced and used at the same time. Its a service encounter. Customers do not separate the service provider from the service. If the carpet cleaner does a bad job..Stanley steamer is a terrible company. blame doesnt fall on the person. |
| Perishability: | perishability is the fleeting nature of a service. An empty hotel room on friday can not be saved and used on a saturday. Once Friday is gone that opportunity is gone to sell it. |
| what's Heterogenity or variability? | Will a snicker purchased in boise Idaho taste the same as one purchased in Bangor Maine? Yes but if you get your hair cut in California at super cuts it will be different from hair cuts at any other Super Cuts. customers desire a standardization though. |
| Products cycle through 4 stages during their lifecycle, name the 4 stages: | 1. Introductory 2. Growth Stage 3. Maturity Stage 4. Decline Stage The profit earned follows the same pattern on a graph. up with a peak then down usually. |
| Do companies usually make money in the Introduction stage of a product? | Businesses usually DO NOT make a profit in the introductory stage of a product because they have to pay for development costs, promotion, distribution, packaging, advertising etc., |
| Marketing channel is interchangable with distribution channel or channels of distribution T or F? | True its basically made of all the entities that move a product from the producer to the end user. Its defined ad an organized network of agencies that link producers w end users accomplishing the marketing task. |
| fact 1 and 2: The distribution process involves not only the physical movement of products from one point to another but the transfer of ownership of that product. | Fact 2: members of the distribution channel include intermediaries, middlemen, the trade, wholesalers. distributors, jobbers, resellers and retailers. All TRANSFER THE PRODUCT TO THE END USER. THEY EARN A PROFIT. |
| Does eliminating the middle man really save any money? | NO. The functions that the middle man provides are worth the cost of using the middle man. An effective distribution channel reduces the overall cost of the product, not the product cost at a single point in the channel. |
| Fact 3 and 4: Intermediaries perform a variety of functions to facilitate the efficient movement of products from producer to end user. Retailers and wholesalers make it possible for products 2b available. Think about how food gets to the grocery store | Fact4:Intermediaries include WHOLESALE. usually see them in food service, grocery store and the electronics industries. BTX/Bi-tronics is an example. |
| Specific types of merchant wholesalers include: full service and limited sercive wholesalers,general, limited line, or specialty line wholesalers.ex: rack jobbers, cash and carry wholesalers, truck wholesalers and drop shippers or mail order wholesalers | fact 5: Agents and brokers provide a variety of services but DO NOT take title or acquire ownership of products. AGENTS AND BROKERS NEVER TAKE TITLE OR ACQUIRE OWNERSHIP of the product. |
| Fact 6:Retailes are intermediaries that sell to consumers as end users. They purchase products from wholesaling intermediaries add value to it in some form of place, time and possession utility and then they sell the products to consumers for profit. | Fact 7: Best Buy and Radio shack are examples of home electronics retailers because they sell a wide variety of electornic products to consumers. There are GENERAL, SPECIALTY & NON-STORE RETAILERS. |
| Give 3 examples of generall merchandise retailers:: | 1. department stores are general merchandise retailers like Macys 2. Discount stores like Wal Mart and Target 3. Supermarkets like WHOLE FOODS or Krogers or Hannafords They all carry many product lines and provide customer service. |
| Name examples of specialty Retailers: | Specialty retailers carry fewer product lines and offer higher customer services 1. Traditional specialty stores like Victoria Secret Payless Shoes 2. Off Price retailers like TJ Maxx or Marshalls 3. Category Killers are Home Depot and Best Buy |
| Non-store retailers include people who directly sell products. Can you name a few: | Non-store retailers include 1. AVON 2Mary Kay 3.Vending Machines 4. Online selling is considered non store selling Brick and Mortar are traditional selling while Click and Mortar is a term for online selling |
| If a person buys the right to sell a product using a name of a company then what have they done? | They probably bought into a franchise. Subway sandwich shops, Aroma Joes, Dunkin Donuts are all owned by individuals who use franchise names to sell whatever. You pay to open these stores and the company who owns them gets a % or up front money. |
| Fact8: Direct Channels use B2B markets and fewer intermediaries. an example would be producer to industrial user or maybe producer to agent to industrial distributor to industrial buyer. (the word INDUSTRIAL signals direct channel) | Fact 9: Indirect channels imply larger numbers of intermediaries and you see them in consumer markets like: Producers to wholesalers to retilers to finally the consumer for example. |
| Fact 9: INTENSE DISTRIBUTION is commonly used for low priced convenience products and routine purchases. Products are made readily available because people are not going to exert effort to buy these items. think coke or pepsi | Fact 10: SELECTIVE DISTRIBUTION for highly shopped for brands. shoppers compare brands then buy. Ralph Lauren, seven Jeans, Nike are examples. you find these at upper end shopping not at Target or Wal Mart. |
| Fact 11; EXCLUSIVE DISTRIBUTION is for specialty merchandise. it heightens its appeal and contributes to its worth. Tiffany's Diamonds, Rolex, Coach, and high end automobiles. | Fact 12: EXECUTIVE LEVEL MANAGEMENT is almost always involved in the pricing decision, and so is accounting, finance and production management. Pricing is dependent on many variables so theres no control over. Customers must value a product on some level |
| fact 13: A products selling price should be set based on its perceived value. Its a trade off between what the customer is willing to give up to get a benefit he or she desires. This is the selling price. What people are willing to pay to get a product. | Fact 14:How a product is marketed can dramatically increase its desirability. Calvin Klein ads are sexy. If you wear perfume you will be sexy & attract sexy people. Cost to make perfume is same as cost to make old spice. How its promoted sets the price. |
| fact 15: Marketing organizations use Product, Promotion & Distribution strategies to signal customers about the value of its product(s). The more desirable the product the more money they can sell it for usually. | Fact16: customers do not care how much it costs a company to produce and sell their product. They care about the perceived value of the product to them. Marketplace determines what a person will pay for something. |
| If Arm and Hammer tells you to start leaving an open box of baking soda in your refridgerator to absorb odors it is pursuing a. Market Penetration True or False | TRUE if a company sells its same product and increases sales and profit, Then its market penetration. |
| look at www.pg.com Does Proctor and Gamble use undifferentiated, multi-segment or concentrated targeting strategy? | MULTI SEGMENT TARGETING since they have multiple brands in multiple product categories to satsify different customers needs. Each has its own image, target market and product line and promotional strategy. |
| perceptual maps should be prepared using product attributes that are important to customers when they make a purchase. | True They should be created based on attributes that are important to customers in the target market. |
| when toyota identifies different need in the car market and develops products to appeal to these needs,Toyota is using a concentrated targeting strategy. | True Identifying differences in the market and creting a unique marketing mix to appeal to each segment in an example of differentiated or multi-segment targeting. |
| companies use product positioning to find the most desirable spot in a supermarket to display their products. True or false | Marketing organization engages in product positioning when it makes efforts to establish a unique place in the minds of its target market relative to the competitors. |
| Does an undifferientiated targeting strategy offer most companies the best chance for long term success? | yes. Comanies have greater success if they use concentrated or multi-segment targeting strategy |
| Each market segment of interest should be analyzed to understand whether its economically feasible to target that segment. | yes. In addition to profiling the characteristics of the typical buyer in a market segment the organization must also determine if it is economically feasible to target a particular segment. |
| The first step in the segmentation process is to profile and analyze the market segment. | Yes it is critical that the marketing organization understands the overall market therefore the first step in the segmentation process is to select the industry or product category in which the company is going to compete. |
| The segmentation process concludes once the target market or method is selected | yes, after selecting the target market, a unique marketing mix must be developed for each target market identified. |
| Not all customers are equal | True. Not every potential customer should be considered customers. People have different needs and desires and they spend money differently. |
| There are 9 steps in marketing research. Name as many as you can: | Problem definition, secondary research, setting research objectives, develop a hypothesis, Design research methods then Data collecting, data analysis,communicating results and recommendations and a follow up (most over looked step of the 9) |
| What is the most over looked step in the 9 steps of Marketing Research? | The most overlooked step is the FOLLOW UP STEP after everything has been done you just simply go over everything to make sure it was all done well and make improvements. |
| Fact: The center of every model is always the CUSTOMER and that person is either a consumer or business to business purchaser. This person is also within your target market. Thats the goal after all. to attract buyers. | Fact: The best Target Market does not include every single person possible. |
| Fact: a critical strategic step is the SEGMENTATION PROCESS. The goal is to fully meet the needs of the customer. | Facts: Customers must have 1. The ability to buy it 2. A willingness to buy it 3. The authority to buy it if a person doesnt have these 3 things then they are not considered good for your target market. |
| Fact: if a company has more than one product for sale then that is called their product mix. | Fact: brand equity is the value of your brand, the consumers attitude about your brand, the financial value of your brand. |
| PULL --> companies that advertise to nationally branded products DIRECTLY TO CONSUMERS is pull promotion strategy. | PUSH--> AIM PROMOTIONAL ACTIVITIES TO WHOLESALERS/RETAILERS WHO MOVE IT ONTO CUSTOMERS. |
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