Download MKTG 201 Final Swenson 2024/2025 Correct answers with A+ PASSED and more Exams Business Economics in PDF only on Docsity!
MKTG 201 Final Swenson 2024/
Correct answers with A+ PASSED
BCG Growth Model - √√- stars: high market growth, high relative market share
- cash cows: low market growth, high relative market share
- dogs: low market growth, low market share
- question marks: high market growth, low market share "path to profitability" - √√create value for customers--> attracting and retaining customers --> profitability The most powerful marketing strategies begin by seeing the product through the eyes of _________ - √√brand champions/love group Product market expansion matrix (new and existing) - √√Market penetration— selling more of the existing products in existing markets Product development—introducing new products to existing markets Market development—introducing existing products to new markets Diversification—introducing new products to new markets Consumer Lifetime value - √√attempts to understand what the customer is worth over the course of their lifetime w the company How Marketing Creates Value - √√Value is created by meeting customer's functional and emotional needs.
Target Market - √√one or more specific groups of potential consumers toward which an organization directs its marketing program Marketing mix - √√Product, Price, Place, Promotion Marketing Strategy - √√addresses a specific target market through the marketing mix SWOT - √√strengths, weaknesses, opportunities, threats External environment - √√constantly changing and out of the control of marketers that affect the marketing environment and can deter the customer; opportunities and threats of SWOT;
- social
- economic
- technological
- competitive
- regulatory Porter's 5 forces - √√*Rivalry among competitors; *Threat of new entrants; *Threat of substitute products; *Bargaining power of buyers; *Bargaining power of suppliers; Domestic marketing - √√focuses on customers in the firm's home country
Custom: adapt or modify for the local market. Glocal - √√go global, but act local fraud triangle - √√Rationalization (justifying fraud), Opportunity (condition allowing fraud), Pressure (weight of the burden felt by fraud committer) Marketing Myths - √√Myth #1- marketers push products consumers don't want Myth #2- consumers are no match for the power of marketing Myth #3- marketing is deceptive and not truthful or honest Myth #4- Marketers believe in planned obsolescence (built-in lifespan) Social Responsibility and green marketing - √√part of a larger society and are accountable; focus on the world's social problems and view them as opportunities to build profits Green marketing- environmentally friendly features added to products Primary vs Secondary research - √√Primary: YOUR research targets a specific problem, expensive, time Secondary: Info that already exists; still offers insights Cross tabs - √√-Frequency counts
- Conditions, attitudes, and/or behaviors that occur most often ex: mission ranking list Analysis of Variance - √√-Variability around an average
- Averages that differ beyond expected variability regression analysis - √√Relationship between a dependent variable and one or more independent or predictor variables factor analysis - √√- data reduction techniques
- identify and analyze different factors -groups correlated variables with factors cluster analysis - √√- Classifies objects or people into groups based on similarities
- Divide markets into segments discriminant analysis - √√- ability of predictor variable to discriminate between categories
- generate perceptual maps depicting brands MaxDiff analysis - √√- Measures most/least important or most/least appealing
- Determine choice preferences TURF determines optimal combo of products conjoint analysis - √√- Estimates the value of component attributes given tradeoffs
Buying process - √√a series of steps a customer goes through when making a purchase; unpredictable (black box) Decision process - √√- problem recognition
- info search
- evaluation of alternatives
- purchase
- post-purchase evaluation High vs low decision types - √√High:
- routine to extensive research to be done; marketers have to get the right info out there (extensive) Low:
- require less research
- routine purchases Buying Center (cycle) - √√- influencers
- deciders
- gatekeepers control the flow of info
- users
- buyers Product orientation - √√All about the product. Does not consider competitors or the needs of the market.
sales orientation - √√aggressive sales techniques market orientation - √√Understand customer needs, company capabilities, knows competitors, and wants to make a profit. social orientation - √√concerned for the environment Build a data product - √√Combine data with statistical algorithms to create value for customers Make inferences or predictions Diffusion process - √√Innovators (2.5%) Early Adopters (13.5%) Early Majority (34%) Late Majority (34%) Laggards (16%) Love, Swing, Hate Groups - √√love: understands benefits, loyal swing: biggest opportunity hate: ignore sell to swing through eyes of love group Segmentation - √√- geographical
- Unique or different
- Positive personal connection
- Lift consumer over a hurdle (reduce pain or increase fun) Product life cycle and profits - √√1) products have limited life
- products and sales pass through distinct stages
- sales and profits from a product vary at different stages 4)products require different strategies at different life-cycle stages Intro Stage Growth Stage Maturity Stage Decline stage Types of Brands - √√Functional- product, price and/or place Image- promotion Experiential- product and place (delivery and service) Types of Business Products - √√- Material and parts
- Capital items
- Supplies and services Types of Consumer Products - √√(classified by shopping effort, product attributes, and frequency of purchase) -Convenience products
(Relatively inexpensive products that merit little shopping effort) -Shopping products(More expensive than convenience products, requiring more shopping effort) -Specialty products(Extensive search effort; consumer reluctant to accept substitute) -Unsought products(Products that the buyer does not actively seek) Product Items, Lines, and Mixes - √√Product Item- A specific version of a product that can be designated as a distinct offering among an organization's products. Product Line- includes closely related product items competing in the same general product category Product Mix- includes all products offered by the company New Product Development Process - √√idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, commercialization Branding - √√A marketing function that identifies products and their source and differentiates them from all other products naming a brand - √√Invented brand names: easily transferable; no pre-existing conflict
Contribution analysis - √√Unit contribution unit margin = price - unit variable cost
- often expressed as a % (of cost or selling price) Percent margin - √√(price - unit variable cost) / price Elastic vs. Inelastic - √√Elastic: describes demand that is very sensitive to a change in price Inelastic: Describes demand that is not very sensitive to a change in price Profit Equation - √√total revenue - total cost Total revenue - √√price (of one unit) x quantity Break-Even analysis - √√fixed cost / (unit price - unit variable cost) when total revenue = total cost Price Skimming vs Price Penetration - √√skimming- marketers set a relatively high price to obtain high margins at the expense of sales quantity penetration- marketers set a relatively low price to capture market share quickly.- Does not capture consumer surplus Four pricing approaches matrix - √√competitive (low customer knowledge and high competitor knowledge)
value (high customer knowledge and high competitor knowledge) golden goose (high customer knowledge and low competitor knowledge) cost-plus pricing (low customer knowledge and low competitor knowledge) Steps in setting price - √√1. Select the pricing objective
- Determine demand
- Estimate company costs
- Know competitors' prices
- Select pricing method Pricing Strategies - √√- promo pricing
- target return pricing (profit, sales, ROI)
- price lining (different prices for different products in a line)
- odd-even pricing
- bundle pricing
- yield management (match demand and supply for set capacity)
- prestige pricing (high price to signal quality, status) Why do companies promote? - √√Push vs Pull strategy -push: producer--> intermediaries --> end users
- pull: producer--> end users--> intermediaries (who demand products from...)--> producers
-generate leads for new sales -search, tweets, mentions, likes, ads seen ENGAGE: -strengthen relationships -improve retention -stick vs bounce based on time, pages, and number of visits on site CONVERT: -win new customers -conversion rate, repeat customers Why use social media? - √√(1) offers greater flexibility for content and duration, (2) has credibility similar to word-of-mouth communications, and (3) can build awareness and interest at a much lower cost than traditional media channels. Total cost - √√fixed cost + variable cost Fairness of Price/Transaction - √√1. Buying situation
- paying more for a drink at a gas station than a restaurant
- Relative incentives
- $10 Increase for a $20 product vs $
- Nature of the product
- health care, etc Determinants of Salesperson Performance - √√Motivation, Skill Level, Aptitude, Role Perceptions Expectancy model of motivation - √√Effort - expectancy - Performance - instrumentality - Rewards - valence Winners sell radically differently than second place finishers - √√- connect (dots and people)
- convince (best choice, max return, min risk)
- collaborate (what, how) Create value for consumers through 4 utilities - √√Making the product available in a more convenient...
- time
- place
- form
- possession (transferring product ownership to customer) Market Channel Performance - √√customer reach (volume) operating efficiency (cost to serve) service quality (retention) operating efficiency - √√Direct marketing channel:
- produces higher margins
- must bear the cost of channel management
selective distribution - √√firm selects a few retail outlets in specific geographical area exclusive distribution - √√only ONE retail outlet distributes Channel behavior - √√- All channels have an interest in money
- Channel conflict arises when one channel member prevents another channel member from achieving its goal
- Primary cause of conflict is the distribution of profits in the channel of distribution retail positioning - √√- Companies pay for rent of their physical locations according to how much they make/ year
- Evolving retailing: retailing is constantly evolving and each experience offered by retailers affects the others Moments of truth - √√- First moment of truth- first 3-7 seconds when the shopper notices an item on a store shelf
- Based on in-store advertising and packaging Influence of colors on perception - √√warm colors- entrances and impulse buys red- warmth + power cool colors more pleasant, involved decision making product assortment - √√the set of all product lines and individual products that a firm sells
product breadth - √√number of product lines offered by a firm; also known as variety product depth - √√The number of items offered within each product line Good idea to profitability - √√Good idea: finding new ideas Great idea: developing competitive angles Profitability: Executing best practices *evaluate ideas w WOW focus groups Startup Marketing Essentials - √√Big business strategies simply don't work for shoestring-funded entrepreneurs. Big business has millions to spend on R&D and sophisticated messaging and promotional campaigns to buy market share. Entrepreneurs can't afford to buy success, they must do it the old fashion way-- they earn it through creative, low-cost tactics. Creative, low-cost tactics - √√Embrace constraints Play to strength david and goliath
