BCOR 2201 Marketing Final Review QUESTIONS WITH COMPLETE 100% VERIFIED SOLUTIONS 2024, Exams of Marketing Management

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BCOR 2201 Marketing Final Review

QUESTIONS WITH COMPLETE 100%

VERIFIED SOLUTIONS 2024

Marketing definition Marketing is the activity or creating, communication, delivering, and exchanging offerings that have utility (value) for customers, and these exchanges benefit the organization, its stakeholders, and society at large What is marketing? facilitates exchanges between buyers and sellers to create value by using tools provided in the 4 P's Controllable factors in the marketing mix (4 P's) Product: good or service that satisfies a need (an idea can also be marketed) Price: what is exchanged representing the value Place: means of getting the product to the consumer Promotion: means of communication between buyer and seller Uncontrollable factors social, economic, technological, competitive, regulatory, environmental Form utility producing/offering the product in a form that is more valuable (right size, right flavor, assembled) ex.) grill Possession utility Creating value by making it easier to purchase/facilitating easier possession (credit terms, mobile payment) ex.) credit card Time utility Creating value by accommodating the time needs of the consumer (fast delivery, late night hours) - having it available when you need it ex.) FedEx Place utility Creating value by having the product available where you are/where you need it ex.) airline SBU

Strategic business unit: a unit of a company that has a separate mission and objectives and that can be planned independently from other company businesses

• Company division
• Product line within a division
• Sometimes a single brand or product 5 C's company, customers, competitors, collaborators, context BCG Matrix analyzes business opportunities according to market growth rate and market share Question marks (BCG Matrix) high growth, low market share most businesses start off as question marks; absorb great amounts of cash; have potential to become anything; investment should be high for question marks Stars (BCG Matrix) high growth, high market share stars are leaders in business; they require heavy investment to maintain its large market share Cash Cows (BCG Matrix) low growth, high market share they are foundation of the company and often the starts of yesterday; generate more cash than required; extract the profits by investing as little cash as possible; located in an industry that is mature: not growing or declining Dogs (BCG Matrix) low growth, low market share cash traps; do not have potential; high cost and low quality; business is situated at a declining stage SWOT Analysis strengths, weaknesses, opportunities, threats Strengths internal, positive Weaknesses internal, negative Opportunities external, positive Threats external, negative Ansoff's Matrix Shows the strategies that a firm can use to expand, according to how risky they are Market penetration

current product, current market product development new product, current market market development current product, new market diversification new product, new market International firm extension of home marketing strategy, views marketing to other markets the same as home market multinational firm Multi-domestic marketing strategy, views of world as unique parts and markets to each differently transnational firm global marketing strategy, views world as one market and standardizes marketing activities where there are cultural similarities, adapts where they differ cross-cultural analysis to market effectively on a global scale, one must analyze the similarities and differences of consumers across global geographies in 5 key areas: values customs cultural symbols language ethnocentricity Direct vs. indirect exporting Direct: sells domestically produced product in a foreign country without intermediaries: high risk, high profit potential, high control, good for large sales volume Indirect: uses intermediary; sells domestically produced products with low risk, low profit potential, good control, easiest, low-involvement licensing (contract manufacturing & franchising) Contract manufacturing & contract assembly: offers up the rights to trademarks, patents, formulas or other intellectual property in exchange for a royalty or fee. Product is produced or assembled abroad by a third party Franchising: varying degree of ownership and operation between the franchisor and the franchisee. - less control of product, reduced profits, may create own competition, but a leg up starting in a new market Joint venture two firms invest together, shared control, optimize resources, know market, but can disagree Direct investment an owned foreign subsidiary such as Nissan has in Tennessee or that Target tried to do in Canada

How to market to the bottom of the pyramid (4 A's) Awareness: creating an awareness of the product and service such that the BOP consumers and producers know what is available and on offer Access: enabling access such that even consumers in remote locations are able to get access to the products/services Affordable: ensuring that the product or service is affordable; usually most difficult problem Availability: to build trust and a loyal base at the BOP, we have to ensure an uninterrupted supply of products and services 4 basic business risks Technical risk: can we develop an app that does what we want? People risk: can I retain my key employees? Financial risk: can we keep the company well financed? Market risk: factors affecting the market you are in such as shifting market trends or events that impact the market; "most dangerous risk" 5 step marketing research approach

1. Define the problem
2. Develop the research plan
3. Collect relevant information
4. Develop findings
5. Take marketing actions Secondary data already exists primary data information collected for the specific purpose at hand Exploratory research open-ended exploring, helps gain an understanding of a relatively vague issue Descriptive research measuring or quantifying, find frequency something occurs or identify a relationship (correlation) Casual/experimental research asses impact from a variable, determine impact of one factor or another (causation) exploratory research uses open-ended questions, results analyzed through qualitative analysis ex.) individual/in-depth interviews, focus groups, ethnography: observing or watching the customer in the use of the product or doing whatever action to be done: Gillette razor study Descriptive research methods uses fixed-alternative questions, results analyzed through quantitate analysis ex.) online surveys, telephone surveys, mall intercept interviews

market segmentation splitting potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same or comparable set of needs satisfied by a distinct marketing proposition homogeneity within segments, heterogeneity between segments Geographic segmentation Where i am Demographic segmentation Who i am; income, age, ethnicity, education, family Psychographic segmentation What I think; attitudes, beliefs, values, lifestyle Behavioral segmentation What I do; usage, shopping patterns Innovation a new solution for a need; we start with an unmet need continuous innovation requires no new learning by consumers; low innovation dynamically continuous inovation disrupts consumer's normal routine but does not require totally new learning; some innovation discontinuous innovation requires new learning and consumption patterns by consumers; high innovation product life cycle introduction, growth, maturity, decline marketing objectives gain awareness, stress differentiation, maintain brand loyalty, harvesting and deletion Innovators venturesome; higher educated; uses multiple information sources (2.5%) Early adopters leaders in the social setting; slightly above average education (13.5%) Early majority deliberate; many informal social contacts (34%) Late majority skeptical; below average social status (34%) laggards fear of debt; neighbors and friends are information sources (16%) "Crossing the Chasm"

a gap between visionary customers who adopt early and pragmatist customers who take a "wait and see" approach Branding a marketing decision by an organization to use a name, phrase, design, or symbols, or combination of these to identify its products and distinguish them from those of competitors losing trademark protection When brands go generic ex.) band-aids and Kleenex Multiproduct branding strategy a company uses one name for all its products in a product class; branded house Multi branding strategy giving each product a distinct name; house of brands Private branding strategy when a company manufactures products but sells them under the brand name of a wholesaler or retailer; private labels Mixed branding strategy where a firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market; sells multiple different products under the same brand name line extension expands within own category (new flavor) Brand extension brand enters new category (snickers goes into ice cream) Co-branding more than one brand on an item Downside of too many choices 47,000 product choices at the average supermarket complicates decision making, postpones decision making, creates frustration and dissatisfaction, pick easiest vs. what's most important, lack clear meaning Price The money or other considerations (such as barter) exchanged for the ownership or use of a product or service Change in quantity demanded movement on the curve due to change in price Change in demand a new curve is created due to changes in: consumer tastes, price of complementary or substitute products, consumer income

Elastic demand is more responsive to changes in price; (E<1) percentage change in quantity is greater than percentage change in price; small change in P triggers big change in Q Inelastic demand is NOT as responsive to changes in price; (E>1) percentage change in quantity is less than percentage change in price; requires big change in P to trigger change in Q Perfectly inelastic demand curve vertical, the same quantity will be sold regardless of the price Price elasticity of demand (E) = % change in quantity demanded / % change in price = (change in quantity/(Q1+Q2)/2)/(change in price/P1+P2)/2) If E>1, demand is elastic If E<1, demand is inelastic profit = revenue - cost Break even analysis definition point when total revenue = total costs Break even point formula = fixed cost/(unit price - variable cost) If my fixed cost increases, break even quantity increases If my unit price increases, break even quantity decreases If my unit variable cost increases, break even quantity increases Marginal revenue the change in revenue from selling one additional unit Marginal cost change in cost from producing one additional unit Skimming high initial price for new or innovative product because innovators are willing to pay Penetration low price on a product to drive adoption place the Where and How of the 4 P's

Intensive distribution everywhere; often for convenience products that want market coverage Selective distribution a few places; don't want to show up everywhere, but retail presence is important Exclusive distribution one place; typically for specialty product and services profit margins earned by each channel Intermediaries intermediaries make possible the flow of products from producers to the ultimate customer transactional functions buy or sell logistical functions gathering, sorting, and distributing facilitating functions makes transactions easier middleman any intermediary between manufacturer and end-user markets agent or broker any intermediary with legal authority to act on behalf of the manufacturer wholesaler an intermediary who sells to other intermediaries, usually to retailers; term usually applies to consumer markets retailer an intermediary who sells to consumers distributor an imprecise term usually used to describe intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extendint credit, and so on dealer a more imprecise term than distributor that can mean the same as distributor, retailer, wholesaler, and so forth vertical marketing systems various players work together (professionally managed) to gain efficiencies forward integration control the retail experience, reduce distribution costs; own the next level down toward the consumer ex.) Ralph Lauren owns their retail stores Backward integration

more control over supply (availability and costs), own the next level up toward the producer ex.) Kroger manufactures its own products promotion any form of communication used to inform, persuade, or remind personal selling 2 - way flow of communication between a buyer and seller sales promotion a short term buying inducement offered direct marketing direct communication to generate a sale integrated marketing Attempts to meld all aspects of marketing communication so that all work together as a unified force factors influencing the choice of promotional mix elements target audience product characteristics push vs. pull strategy stage in product lifecycle stage in buying process push strategy flow of promotion: mainly personal selling directed to intermediaries pull strategy flow of promotion: advertising directed to consumers Stages of product lifecycle introduction: to inform growth: to persuade maturity: to remind decline promotional mix create awareness, develop consideration, develop preference, call to action, reinforce the purchase, nurture ongoing loyalty advertising any paid form of non-personal communication about a company, product, service, or idea by identified sponsor goals of ads pioneering: inform competitive: persuade reminder: remind

types of ads institutional: brand advocacy: states our position pioneering institutional: brand building competitive institutional: promotes 1 product class over another reminder institutional: bring name to market's attention types of appeals emotional, fear, humor, sex puffery promotional statements and claims that express subjective views which "no reasonable person" would take literally deception a material representation, omission or practice that is likely to mislead the reasonable consumer public relations communications seeking to influence feelings, opinions or beliefs of our stakeholders ex.) annual reports, product announcements, press conference, social medial, events, spokespeople