A/B testing
A marketing experiment where two variants of a campaign are tested to see which one is most effective
Accommodation
Style of handling conflict focused on empathy over self-interest
Adaptive selling
Using social styles to customize a sales approach to the specific customer
administered vertical marketing system
Cooperation between levels of a distribution channel where one member sets the terms due to its size and influence
advertising
Paid form of nonpersonal promotion
amiable
People with this social style want to know “why”
analytical
People with this social style want to know “how”
artificial intelligence
Intelligent machines (computers) capable of learning and interacting
attitudes
Positive, negative, or ambivalent evaluation of people, objects, event, activities, ideas, or anything else in the environment
attributes
Characteristics that define a product and will influence the customer’s purchase decision
Avoidance
Style of handling conflict with little empathy or self-interest
B2B sales
Sales to another company that consumes the product or services as part of operating the business or uses the product in the assembly of the final product it sells to consumers
Bait and switch
Fraudulent practice where an advertised product is unavailable so a customer is guided to a more expensive one
Bargaining power of buyers
One of Porter’s Five Forces—the power of customers to drive down prices if supply exceeds demand
Bargaining power of suppliers
One of Porter’s Five Forces—the power of suppliers when there are few alternative sources for the products’ components
Bargaining
The fourth phase in the negotiation process, where the parties seek an agreement
BCG Matrix
Planning tool which uses a quadrant to map the strategic position of a business brand based on the brand’s market share and the market’s growth potential
behavioral observation
Primary marketing research technique involving formal or informal observation of customers and noncustomers
boycott
Voluntary and intentional refusal to buy products from a certain person, company, or country for ethical or political reasons
brand equity
One of the drivers of customer equity, based on how the customer assesses the value of the brand
brand loyalty
The faithfulness of customer’s to a particular company and its products
brand
The unique identity and associations of a company, often captured in a design, sign, symbol, or words that identify a product and differentiate it from competitors
Bundling
Grouping related products together and pricing them as a single product.
business cycle
Expansions and contractions in the level of economic activities (business fluctuations) around a long-term growth trend
business to business (B2B)
Sales to another company that consumes the product or services as part of operating the business or uses the product in the assembly of the final product it sells to consumers
business to consumer (B2C)
Sales directly to the individuals who consume a finished product
business-to-business (B2B)
Sales to another company that consumes the product or services as part of operating the business or uses the product in the assembly of the final product it sells to consumers
business-to-consumer (B2C)
Sales directly to the individuals who consume a finished product for personal use
Buyers
Individuals at an organization who are responsible for the purchase contract, often a purchasing department
buying center
Group of decision makers for a purchase by an organization
Channel conflict
When a company sells products directly to consumers, in competition with the company’s own channel partners
Closed-ended questions
Questions where a researcher provides a set of options from which to choose a response, also called structured questions
Closure
The final phase of negotiation, where an agreement is reached or the negotiation fails
cognitive dissonance
Mental discomfort triggered by holding two or more contradictory beliefs, ideas, or values
Collaboration
Style of handling conflict with high concern for both empathy and self-interest
Competition
Style of handling conflict focused on self-interest over empathy
Competitive pricing strategy
Setting the price for a product or service relative to competitors
Compromise
Middle-ground style of handling conflict
Concentrated marketing
Targeting strategy that focuses on a very limited, specific segment(s) of the market, also called niche marketing
consultative selling
Sales approach where the seller becomes a trusted advisor to the customer and builds a relationship to truly understand her needs
consumer behavior
The study of individuals, groups, or organizations and all the activities associated with the purchase, use, and disposal of goods and services
consumer confidence
Statistical measure of consumers’ level of optimism about current and future economic conditions
Consumer involvement
Level of consumer interest, search, or complex decision-making
consumer
The user of a purchased product or service
consumers
The user of a purchased product or service
Content marketing
Promotion through the creation and sharing of messages and materials designed to stimulate interest in a product
contractual vertical marketing system
Cooperation between levels of a distribution channel as described by a formal agreement
cookies
A small packet of information stored on your web browser to help a website keep track of your visits and activity
Corporate Social Responsibility (CSR)
Way of conducting business with commitment to the values, norms, and expectations of society for social responsibility
corporate vertical marketing system
Ownership by a single company of all levels of production and distribution
culture
The customs, arts, social institutions, beliefs, and value systems of a particular people, nation, or social group
customer equity
The combined customer lifetime values of all the company’s customers
customer life cycle
The steps in the customer relationship with a company, from initial contact to loyalty
Customer lifetime value
The total profit a company expects to gain from a customer throughout the relationship
Customer relationship management (CRM)
Processes implemented by a company to handle its contact with customers with the goal of creating a unified customer experience to maximize retention
customer satisfaction
A measure of how products or services delivered by a company meet or exceed customer expectations
customer
The purchaser of a product or service
customers
The purchasers of a good or service
Database marketing organizations
Companies (also known as customer insights service providers) that collect and analyze massive data sets on consumers which can be used as secondary data for marketing research
deception
Hiding the truth, especially to get an advantage
Deciders
Individual(s) at an organization making the final purchase decision, often the person who owns the budget
deductive
Negotiating by beginning with the big picture then turning to details
Demographic segmentation
Dividing the market into subgroups based on demographic data such as age, education, gender, or income
Determining Your Desired Outcome
The second phase in the negotiation process, where you define what you would like to get from the negotiation, also called a Best Alternative to a Negotiated Agreement (BATNA)
differentiated marketing
Targeting strategy where a company provides separate offerings to each different market segment that it targets
digital marketing
All of a company’s marketing efforts that use an electronic device or the Internet
Direct distribution
Sale of products from the producer to the end user without an intermediary
Distribution channels
Chain of intermediaries through which a good or service moves from the producer to reach the end consumer
Distribution
Process of acquiring raw materials and moving materials and finished products from the producer to customers
distributive view
Win-lose negotiation that sees the situation as a fixed pie to be divided
diversification
Growth strategy that focuses on creating new products for expansion into new markets
driver
People with this social style want to know “what”
Dual Concern Model
Maps five styles of handling conflict on a grid according to their degree of cooperation or assertiveness
E-commerce
Buying and selling of goods and services over the Internet using websites and/or mobile applications
End users
Individuals at an organization who will use the product or service to be purchased
environmental sustainability
Processes that are capable of being continued with minimal long-term effect on the environment
esteem needs
Human requirement to feel respected and valued by others as well as yourself
Ethical consumerism
Type of consumer activism where ethical products are favored and unethical products or companies are avoided
Ethnographic research
Study through direct observation of users in their natural environment (as opposed to a laboratory environment)
experiential learning
Changes in behavior in response to direct experience; learning as a reflection on doing
experimental research
Primary marketing research technique that explores the impact of one or more factors, such as the comparison of two marketing campaigns
expressive
People with this social style want to know “who”
extended problem solving
Complex, high-involvement purchase decision process with significant investment in information searching and product comparison
External factors
Factors an organization may be able to influence, but not control (such as technology innovations, competition, economic trends, and government policies) a company, which can represent opportunities or threats
fair trade
Organized social movement that seeks to help producers in developing countries achieve better trading conditions while promoting sustainability
focus groups
Primary marketing research technique using small groups to delve deeply into a topic of interest
Gatekeepers
Individuals at an organization who control the flow of information to and among others within the buying center; often administrative professionals
generation gaps
Differences in outlook, opinions, values, and cultural norms between people of different generations
Geographic segmentation
Dividing the market into sub-groups based on region or geographic characteristics
good
Physical product offering manufactured by a business
Groupthink
Psychological phenomenon in which individual members of a group accept a viewpoint or conclusion that represents a perceived group position (even when it conflicts with their own beliefs or judgment)
Guerilla marketing
Innovative, unconventional promotional tactics that engage customers through unique experiences
hard selling
Sales approach using psychological pressure and insistent language to push a customer to a quick purchase decision
high-involvement decisions
Complex purchase decisions that are important to the consumer and involve some risk
Implementation
Process of implementing the marketing strategy through specific actions or tactics
in-depth interviews
Primary marketing research technique using structured one-on-one conversations to delve deeply into a topic of interest
Indirect distribution
Sale of products where intermediaries assist in moving goods and services from producers to end users
individual marketing
Targeted micromarketing focused on the needs of individuals, sometimes call mass customization or one-to-one marketing
inductive
Negotiating by beginning with details and working up to a larger agreement
inflation
General increase in prices of goods and services over time and decrease in the purchasing power of money
influencer marketing
Using paid brand advocates who have large social followings with a target audience to promote a product or brand on social media
Influencers
Individuals at an organization who affect a purchase decision, sometimes brought into the buying process to provide technical expertise
Initiators
Individuals at an organization who suggest purchasing a product or service
integrated marketing communications (IMC)
Immersive and targeted communication with customers to help move them through the various stages of the buying process
integrative approach
Win-win negotiation that looks for ways to expand the pie so each party gets more
internal data
Information from within a company, such as sales and marketing records, that can be used for secondary data in marketing research
internal factors
Factors controlled by the organization (such as financial resources, product lines, or technical capabilities), which can be either strengths or weaknesses
internet search
An entry into a search engine based on a keyword or phrase, also called a search query
Investigation
The initial phase in the negotiation process, where information is gathered
Leader pricing
Pricing products below market price to attract customers to a store where they would not otherwise shop
leads
Information about a potential customer
learning
Changes in behavior that result from previous experiences
Limited problem-solving
Moderately involved purchase decision-making process where a consumer has some prior knowledge but still conducts light research
local marketing
Targeted micromarketing focusing on very small segments in a given geography
Love and belonging needs
Human requirement for interpersonal relationships (family, friendships, intimacy) and feelings of belongingness
Low-involvement decisions
Straightforward, often routine purchases that require less effort and pose lower risk to the consumer
market development
Growth strategy focused on expanding existing products into new markets
market penetration
Growth strategy focused on current products and current markets with the goal of increasing market share
market segmentation
Process of dividing the market into subgroups of consumers (segments)
market share
A company’s percentage of the total sales in a particular market
marketing concept
Business philosophy holding that a company’s goals can best be achieved by identifying and satisfying the target customer’s needs and wants
marketing mission statement
Explanation of why the marketing plan exists and what problem it hopes to solve
marketing mix
The controllable elements in the marketing environment, made up of the product, price, promotion, and place; also known as the 4Ps of marketing
marketing objectives
Specific, measurable achievements that an organization wants from its marketing activities within a specified time frame
marketing plan
A comprehensive document or blueprint, informed by analysis of the organization, customer, and market environment, that outlines marketing efforts (including objectives, strategies, and tactics) for an identified period
marketing planning process
The steps an organization goes through to create a marketing plan (includes analysis of the organization, customer, and market environment) with specific objectives, strategies, and tactics for the marketing effort
Marketing research
Process of gathering, recording, and analyzing data about consumers, competitors, and the market
marketing
Business function that identifies, satisfies, and retains customers through a set of activities related to creating, communicating, delivering, and exchanging offerings that have value for the customer
Micromarketing
Targeting strategy that focuses narrowly on catering to the needs of individuals or very small segments in a targeted geography
Mixed negotiations
A blend of inductive and deductive negotiation
modified rebuy
An organization reorders a product or service with modifications
motivations
Level of inner drive or pressure to satisfy a need
needs
Human requirements that range from basic physiology to safety, love and belonging, esteem, and self-actualization
New product development
Process of creating a new product or service for the market, involving strategy, organization, concept generation, marketing planning, and commercialization
new task
A buying situation where an organization considers buying a product or service for the first time
nondisclosure agreements (NDAs)
Signed documents when entering into a business relationship detailing what information cannot be disclosed about another company
nonexperiential learning
Changes in behavior in response to secondary input, such as a celebrity endorsement
omnichannel communication
Unified and consistent communication with customers across all channels a company employs
Omnichannel
Content strategy used by organizations to improve customer experience through creating seamless, consistent engagement across all channels
Open-ended questions
Questions where a researcher asks participants to provide a verbal or textual response
opinion leaders
Highly influential people who help set the attitudes, behavior, beliefs, opinions, and values of a reference group
organizational capabilities
Combinations of skills, processes, human abilities, and competencies that are unique to an organization
Penetration pricing
Intentionally pricing a product lower than the market price to gain market share in a new market
perceptions
Process by which a consumer identifies, organizes, and interprets information to create meaning
Permission marketing
Expectation that marketers will ask for permission to sell or to offer potential customers marketing messages
Personal selling
A type of selling that uses person-to-person interaction to sell products and services
PEST
Form of analysis used to isolate opportunities and threats in the marketing environment
Physiological needs
Basic biological requirements for human survival
Place
Element of the marketing mix involved with getting the product from the producer to the customer
Planned obsolescence
Selling products that will need to be replaced frequently by design because they are obsolete
Porter’s Five Forces model
Planning tool which provides a model for how to identify and analyze the competitive forces that shape a company’s environment and influence profitability
Positioning maps
Graphical depiction of how potential customers view a brand or product and the competition against key criteria
positioning statement
Single sentence that concisely identifies the target market for a product and what marketers want customers to think about it
positioning
Strategic activity where marketers identify the distinctive place they want a product or service to hold in the minds of a target market segment
Presentation
The third phase in the negotiation process, where you put together information to support your position
prestige pricing
Raising the price of a product to increase the perception of its value
price gouging
When the seller dramatically increases the prices of goods, services, or commodities to an unreasonable or unfair level
Price skimming
Intentionally pricing a new product offering high with the intention of lowering it over time as competition grows, particularly in the case of a unique offering with little or no competition at the outset
Price
Element of the marketing mix involved with the cost of a product, or what a company asks for from the customer in exchange for the product
Primary research
Research tailored to the specific problem or challenge you are trying to address
product depth
Number of versions offered for each product in the product line
product development
Growth strategy focused on creating new products for an existing market
product life cycle
Phases of a product, from introduction to growth, maturation, and decline
product lines
Series of similar products focused on a sector that a company creates under a single brand
product mix
The complete range of products offered for sale by a company throughout its product lines, also known as the product assortment
product
A service, good, or system that is offered to a market for sale to customers
Product-related segmentation
Dividing the market into sub-groups based on the consumer’s relationship to the product (benefits, usage rates, or brand loyalty)
profit
The amount gained by a company, calculated by the difference between the amount earned from the sale of products and the total cost to produce them and sell them in the market
Promotion
Element of the marketing mix involving methods for informing and influencing customers to buy a product, including traditional advertising, sales promotion, public relations, personal selling, and digital marketing
Promotional pricing
Lowering the price of a product for a limited time to attract more customers and increase sales volume
Prospecting
Identifying people or companies that might be interested in buying a product or service
prospects
A qualified and interested potential customer
Psychographic segmentation
Dividing the market into subgroups based on lifestyle or personality
Public relations
The practice of creating and maintaining public goodwill through publicity and nonpaid forms of communication
pyramid scheme
Unethical and unsustainable business model where those higher up the pyramid profit from recruitment fees of those below
Qualifying
Asking questions and conducting research to determine that a prospect is willing and able to buy
qualitative
Research exploring ideas, perceptions, and behaviors
quantitative
Research using information that can be counted, tabulated, and statistically analyzed
reference groups
Formal or informal group of people whose shared attitudes, behavior, beliefs, opinions, and values are adopted by a consumer
Reinforcement
Process of having learning validated through rewards or consequences, which confirm that what you learned was correct.
reliability
The degree to which a research method produces stable and consistent results
retention equity
One of the drivers of customer equity, based on the tendency of a customer to stay with the brand given equal alternatives
revenue
Income a company receives from the sale of goods or services
Rivalry
One of Porter’s Five Forces—competition from other companies in the industry
routine problem-solving
Automatic, low-involvement purchase decision process based on limited information or information gathered in the past
safety and security needs
Human requirement for personal, emotional, and financial security, as well as health and well-being
Sales promotion
Marketing activities such as coupons that provide a direct incentive for the customer to make an immediate purchase of the product
secondary research
Using already existing data that may be relevant to what you want to know
segments
Subgroup of the market for a product
Selective perception
Process by which consumers see what they want to in media messages while ignoring contradictory viewpoints
Self-actualization
Human desire to realize your full potential
service
Intangible product offering by a business
situational analysis
A collection of methods that marketers use to analyze and understand an organization’s capabilities, customers, and business environment
social listening
Primary marketing research technique monitoring or engaging with social media communities to gather information
social media
Websites and applications where users can create, share, and communicate with others in social networks
Solution selling
Sales approach where the seller diagnoses the customer’s problem then recommends a mix of products and services (a solution) to solve it
straight rebuy
An organization reorders a product or service without modifications
Strategic Opportunity Matrix
Framework that maps the four growth strategies (market penetration, market development, product development, and diversification) to a grid based on whether they address new or existing products and markets
strategies
Plans of action or game plans designed to meet certain objectives
supply chain transparency
Company disclosing how its products (and their components) are sourced and made
supply chain
System a company uses to acquire raw material, produce products, and deliver the products and services to customers
survey research
Primary marketing research technique that asks individual respondents to answer a questionnaire
SWOT analysis
Analysis of the internal, controllable factors (strengths and weaknesses) and external, uncontrollable factors (opportunities and threats) that influence an organization
syncretic decision-making
A purchase decision where in a family both partners have an equal say
syndicated marketing research
Source of secondary data for marketing research that is collected by a marketing research company and can be purchased by organizations
Tactical planning
Identification of key actions, or tactics, aligned to the marketing strategy that will enable marketers to achieve marketing objectives
tactics
The actions taken to implement a strategy that drives toward a particular objective
target market
Specific group of customers toward which a firm directs its marketing efforts
targeting
Selection of a segment or segments of the market on which marketers will focus
Team selling
Sales approach that involves multiple people from an organization joining forces to advance a customer opportunity
Telemarketing
Method of direct marketing by a saleperson over the phone
The Internet of Things (IoT)
Embedding computers in everyday things, turning them into smart and connected devices that can be monitored and used for data analytics
Threat of new entrants
One of Porter’s Five Forces—the likelihood that new competitors will enter the market
Threat of substitute products or services
One of Porter’s Five Forces—the likelihood that consumers will switch to a different type of product or service that meets the same need (such as taking a bus instead of buying a car)
trial close
Where the salesperson asks a question or makes an assumptive statement to gauge whether or not a potential customer sees value in the product, service, or solution before asking for a decision
uncontrollable elements
Elements in the external marketing environment that cannot directly be controlled by marketers
Undifferentiated marketing
Targeting strategy involving a single offer and marketing mix for all segments, also called mass marketing
validity
The extent to which a research method accurately measures what it is intended to measure
value equity
One of the drivers of customer equity, based on how the customer assesses the value of the product or service a company provides
vertical marketing systems
Cooperation between multiple levels of a distribution channel
vision
Desired future position for the organization
Product
A retailer offers all customers complementary, eco-friendly gift wrapping to add value to their holiday purchases.
Which element of the marketing mix does this ethical decision-making address?
BCG matrix
A manager seeks to help the organization make good portfolio-management decisions.
Which tool should the manager use for this process?
Strategy
Which component of the marketing planning process utilizes situation analysis to address the needs of the target customer?
Requires expertise in data collection
What is a limitation of primary data sources?
Marketing mix
Which component must the marketing team create to effectively target each segment of the consumer market?
Target
Which action includes selecting a segment to serve as the focus of the marketing team’s efforts?
Problem and opportunity recognition
A marketer developed a makeup tutorial video using the company’s new cosmetic line designed to diminish dark circles around the eyes.
Which stage of the consumer decision-making process is the marketer seeking to achieve?
Integrative
Individuals A and B are negotiating Individual A’s pay package with multiple forms of pay and benefits to be discussed and agreed upon by both. While the goals are not compatible, Individuals A and B will have a long relationship as boss and worker which must be taken into account during their negotiation.
Which approach to negotiation should these two individuals adopt?
Modified rebuy
A sales representative calls on a company and is told, “We will order the same product and quantity that we ordered last month, but please have the product delivered to our western plant instead of our eastern plant.”
Which type of Business to Business (B2B) buying situation is this?
4 P’s: product, price, promotion, and place.
What are the controllable elements in the marketing environment?
Marketing decisions are influenced by not only the competition, but also the political and legal, economic, sociocultural, technological, and environmental elements in the environment.
What are the uncontrollable elements in the marketing environment?
The steps involve the mission statement, situational analysis, objectives, strategy development, and monitoring and control.
What are the steps in the marketing planning process?
SWOT analysis looks at an organization’s strengths and weaknesses alongside the opportunities and threats in the business environment.
What is SWOT used for?
The BCG matrix helps identify where an organization should invest in marketing to be profitable
What is BCG used for?
Porter’s Five Forces model addresses the competitive landscape in the market and the potential for profitability.
What is Porter’s Five Forces model used for?
Marketing is a set of activities related to creating, communicating, delivering, and exchanging offerings that have value for others. In business, the function of marketing is to bring value to customers, whom the business seeks to identify, satisfy, and retain. Marketing is finding out the needs and wants of potential buyers (whether organizations or consumers) and then providing goods and services that meet or exceed the expectations of those buyers.
Define marketing
Sales incorporates actually selling the company’s products or service to its customers, while marketing is the process of communicating the value of a product or service to customers so that the product or service sells. Sales includes the actual sale of the company’s product, however marketing often works to help customers make their actual decision to purchase by communicating value.
What is the difference between sales and marketing?
good – tangible, service – intangible
Baking soda, toothpaste, phone – goods
pedicure – service
What is the difference between a good and a service? Identify if the product is a good or service- Arms and Hammer Baking soda, iPhone, Crest Toothpaste, Pedicure
The marketing mix represents the controllable elements in the marketing environment. It includes product, price, promotion, and place.
Identify the four elements in the Marketing mix
-Introductory: Low sales, Little or no profit, Often little to no competition
-Growth: Increasing sales, Rapidly increasing profit, Market has accepted the product and competitors begin to enter the market
-Maturity: High sales, High then declining profit, High level of competition, may be difficult for original company to compete
-Decline: Declining sales, Declining profit, Competitive pressure remains high and demand falls
What is Product life cycle stage? Identify at least two main features in each of the life cycle stages.
product mix – all of a company’s product lines
product width – the number of different product lines
product lines – series of products a company offers
product depth – adding to the sub-products or versions in a product line
What is product mix, product lines, product width, and product depth?
- Skimming: Pricing a new product high to increase profits (Apple iPhone)
- Penetration pricing: Pricing a new product lower than the perceived market price to attract market share (Comcast’s introductory pricing for cable and internet)
- Leader pricing: Pricing products below normal markup or at cost to attract customers to a store where they would not normally shop (Low prices on organic milk at Whole foods)
- Bundling: Grouping related products together to encourage customers to buy both (Shampoo and conditioner sold as a set at a hair salon)
- Prestige pricing: Raising the price of a product to increase the perception of its value (High-priced T-shirts and other goods at specialty shops in fashionable districts)
- Competitive pricing: Setting the price of a product according to the price of competitive products (Pricing a new line of shoes slightly below the cost of a competitor)
What are the key differences between Price skimming, Penetration pricing, Leader pricing, Bundling, Prestige pricing & competitive pricing strategy.
Promotion includes several different components—traditional advertising, sales promotion, public relations, personal selling, social media, and digital marketing.
What are the different components in Promotions?
Both omnichannel and IMC seek to coordinate a unified message to the customer, but rather than working in parallel like IMC, omnichannel communication channels and their supporting resources are designed and orchestrated to cooperate. Integrated marketing focuses on the strategies marketers use to target leads, opportunities, and customers, while omnichannel marketing focuses primarily on the customer experience and buyer’s journey by integrating communication channels between the customer and your business.
What is the difference between integrated marketing communications and Omnichannel communication?
Place involves some method of getting the product from the creator of the product to the customer. Place includes a myriad of important tasks: transportation, location, supply chain management (managing each entity that deals with the product in its route to the buyer), online presence, inventory, and atmospherics (how the office, store, or even the website looks).
What is Place strategy?
Distribution is efficiently managing the acquisition of raw materials by the factory and the movement of products from the producer or manufacturer to business-to-business (B2B) users and consumers. It includes many facets, such as location, hours, website presence, logistics, atmospherics, inventory management, supply-chain management, and others
What is Distribution?
A supply chain is the system through which an organization acquires raw material, produces products, and delivers the products and services to its customers.
What is supply chain?
cooperation between multiple levels of a distribution channel
What is Vertical marketing systems?
corporate, contractual, and administered
What are the three types of Vertical marketing systems?
competitive, natural/ecological, political-legal, socio-cultural, demographic, technological, and economic elements
Identify the various Uncontrollable elements in the marketing environment that may impact an organization.
Competitive elements: Includes such factors as new and shifting competition from domestic and foreign-based firms
What are uncontrollable competitive elements
The marketing mix (product, price, promotion, and place)
What are the various controllable elements in the marketing environment?
Business cycle fluctuations occur around a long-term growth trend and have four distinct phases: expansion, peak, contraction, and trough.
Define: the phases of the Business cycle
From an ethical perspective, product considerations involve whether the product is created in a way that does damage to or sustains the environment, whether it fulfills customer needs and delivers value, and whether the needs it fulfills are in the best interests of individuals and society.
- Products should provide the quality and value customers expect. Marketers may also consider the ethical implications of how products are created and their impact on communities and the environment.
- Pricing should be fair and transparent. Particularly in situations where consumers have few or no alternatives, companies should consider whether their pricing models are ethical.
- Promotion should avoid deception, respect customer contact, and consider the appropriateness of a message for the audience.
- For place, marketers should consider the entire distribution channel and whether it delivers value to customers. Companies may also consider how the production and distribution of their products affects the environment and society.
Identify at least 3 ethical considerations for product, price, place, promotion marketing mix variables.
The marketing plan is the guiding document used by marketing managers and teams to lay out the marketing objectives that marketing efforts focus on and the actions they take to achieve these objectives.
A comprehensive marketing plan paints the big picture of what is happening with an organization internally and externally. After analyzing the marketing environment, the plan recommends strategies and tactics aimed at helping the organization take full advantage of available opportunities and resources to accomplish its goals.
Define Marketing plan
As a situation analysis tool, SWOT analysis examines the internal (controllable) and external (uncontrollable) factors that impact the organization and its strategies. The internal factors are strengths and weaknesses; the external factors are opportunities and threats. A SWOT analysis gives an organization a clear picture of the situation in which it operates and helps it determine which strategies to pursue.
What Is SWOT analysis?
external threat/opportunity
Identify the SWOT in this situation: A company has developed technical capabilities
external opportunity
Identify the SWOT in this situation: New government policies will help the company in the future
internal weakness
Identify the SWOT in this situation: The company has high employee turnover
external threat/opportunity
Identify the SWOT in this situation: The company is concerned about the country’s economic condition
What is the current market share?
What is the market’s growth potential?
What are the two different aspects of a business unit or product that are considered in BCG matrix?
Dog: A product or business with low market share in a mature industry is a dog. There is no room for growth, which suggests that no new funds should be invested in it.
Cash cow: A cash cow is a product or business that has high market share and is in a slow-growing industry. It is bringing in more money than is being invested in it, but it does not have much growth potential. The profits from a cash cow can be used to fund high-growth investments, but the cash cow itself warrants low investment.
Question mark: A question mark is a product or business that has low market share currently, but is in a growing industry. This case is trickier: The product or business is consuming financing and creating a low rate of return for now, but its direction is unclear. A question mark has the potential to become either a star or a dog, so close monitoring is needed to determine its growth potential.
Star: A star has high market share in a fast-growing industry. This kind of product or business is poised to bring a strong return on the funds invested. It also has the potential to become a cash cow at the end of the product life cycle, which can fund future investments.
What are the four quadrants in the BCG matrix?
Cow
Identify the BCG quadrant in which this product will be placed: Brand X has a slow market-growth rate but currently hold a high market share.
dog
Identify the BCG quadrant in which this product will be placed: Brand Z should be divested
question mark
Identify the BCG quadrant in which this product will be placed: Brand Y shows a rapid growth
star
Identify the BCG quadrant in which this product will be placed: Brand M should be vetted and company should hold on to this brand.
Threat of new entrants (or barriers to entry)
Threat of substitute products or services
Rivalry
Bargaining power of buyers
Bargaining power of suppliers
What are the five forces identified in Porter’s five forces model.
Strategic planning outlines the vision or direction for how the marketing department will achieve its objectives.
What purpose does Strategic planning serve in the marketing planning process?
Tactical planning identifies the key actions marketers will implement to affect controllable elements of the strategy (e.g., offering a specific promotion on free shipping to increase the average transaction value on a company’s website).
What purpose does tactical planning serve in the marketing planning process
Marketing research is the process of systematic gathering, recording, and analyzing data about customers, competitors, and the market.
Define marketing research
Primary – Data collection specifically tailored to the problem you are trying to address
Secondary – Source information that has been previously collected for other purposes (internal or external)
Identify major 3 differences between primary and secondary data?
Marketers should take into account ethical considerations when gathering, analyzing, and storing primary data. Data should be kept secure, gathered transparently, and used for the purposes stated to participants.
What are some of the guidelines researchers must consider while collecting Primary data?
Primary data directly address the problems or challenges of interest. However, it can be costly, time-consuming, and can require expertise to collect.
Identify advantages and disadvantages of primary data
When using secondary data, marketers should consider the credibility and reliability of sources and use clear citations.
What are the guidelines researchers must consider while collecting Secondary data?
by examining the following:
New versus existing markets
New versus existing products
How does the Strategic Opportunity Matrix assist companies in establishing appropriate growth strategies?
The four basic growth strategies according to the Strategic Opportunity Matrix are market penetration, market development, product development, and diversification.
Identify the four types of growth strategies an organization may pursue.
Customer relationship management (CRM) is a combination of policies, processes, and strategies implemented by a company that unify its customer interaction and provide a mechanism for tracking customer information. The purpose of customer relationship management is to cultivate a lasting relationship with the customer.
In your own words, describe customer relationship management (CRM) and the purpose of implementing CRM in an organization.
A key benefit of CRM is enabling companies to be more responsive to (and retain) customers. The customer experiences more unified, relevant communication with the company. Marketing and sales can analyze the data collected to better fit their target customer needs.
One challenge is ensuring consumer privacy and security given the increased collection of data. As organizations optimize for user tastes based on data, it is the largest data points that will drive changes. As a result, while most consumers will benefit from changes, the rest of the consumers are at risk of being ignored entirely if their needs differ from the majority. It may also be a challenge for organizations to integrate a CRM system into all relevant departments and workflows.
Identify and describe at least two benefits and two challenges of CRM.
It predicts how much profit is associated with a customer during the course of their lifetime relationship with a company. This concept can also include less tangible benefits associated with customer loyalty, such as brand engagement and customer referrals.
CLV can help marketers assess the effectiveness of marketing efforts and the value of specific customer segments.
Why is customer lifetime value (CLV) utilized by organizations?
Reach—getting a prospective customer’s attention
Acquisition—bringing a prospective customer into a sphere of influence
Conversion—turning a prospect into a paying customer
Retention—engaging an existing customer to keep them
Loyalty and Advocacy—turning a customer into an advocate for the company
Identify and briefly describe the five steps in the customer life cycle.
Customer equity is the total combined customer lifetime values of all a company’s customers. More loyal customers—with higher CLV—equal more customer equity. More customer equity is an indication of how valuable a company is to customers and in the marketplace.
What is customer equity and why is this an important measure for organizations?
High customer satisfaction, which is driven by a products and services consistently meeting or exceeding expectations, is a key indicator of retention. If you set the expectations too low, people will not buy the offering. But if you set the expectations too high, you run the risk that your buyers will be dissatisfied.
What is the role of setting expectations in assuring customer satisfaction?
Notice, Choice, Access, Security
Identify and briefly describe the four guidelines regarding fair information practices in an electronic marketplace.
B2B marketers sell to other businesses or institutions that consume the product as part of operating the business or use the product in the assembly of the final product that they sell to consumers. B2C marketers focus their efforts on consumers, the individuals who consume a finished product.
Describe the difference between a Business-to-Consumer (B2C) and Business-to-Business (B2B) market.
help marketers focus their efforts on specific customer groups
What is the purpose of market segmentation and why is this practice important in successful marketing?
Demographic segmentation groups customers based on categories such as age, education, gender, income, and household size.
Geographic segmentation groups customers by location as well as regional and climate characteristics.
Psychographic segmentation groups customers based on personality, lifestyle, affinities, activities, and opinions.
Product-related segmentation groups markets based on the benefits provided by the product.
Identify and describe the four methods marketers use to segment markets.
Differentiated marketing targets specific market segments differently according to the benefits that the company offers each one.
Undifferentiated marketing involves marketing to the entire market and to all segments the same way.
Concentrated marketing focuses on appeal to a very narrowly defined target segment.
Micromarketing focuses on individual consumer preferences (individual marketing) and on marketing to companies and individuals within a small localized area (local marketing).
Identify and describe the four types of targeting strategies.
Positioning is a strategic process that marketers use to determine the place an offering should occupy in a given market, relative to other customer alternatives. The end result of positioning is the successful creation of a market-focused value proposition that describes why the target segment should buy the product.
What is positioning?
Consumer behavior is the study of individuals, groups, or organizations and all the activities associated with the purchase, use, and disposal of goods and services. This includes the consumer’s emotional, mental, and behavioral responses that precede or follow these activities. Marketers use data on consumer behavior to shape a market offering.
In your own words, describe consumer behavior and the role of consumer buying behavior in the marketing research process.
1 Problem and opportunity: Consumer recognizes a need (You are relocating to a new area and need a place to live.)
2 Search: Consumer searches for information about options (You research financing, available homes, and communities.)
3 Evaluation: Consumer evaluates, considers, and ranks the available options (You rank available homes and develop your criteria.)
4 Decision: Consumer makes a decision whether or not to purchase a product or service (You decide to purchase a particular home.)
5 Buy: Consumer completes the purchase (You go through the purchase process and receive the title to the home.)
6 Post-purchase: Consumer assesses the decision and the buying experience (You move into your new home and feel good about your decision as home values rise in the neighborhood.)
Describe the steps of the consumer decision-making process and identify an example of the consumer’s action in each step.
-Personal influences are unique to each consumer in the way they affect decision-making. These influences include needs and motivation, perceptions, learning, and attitude
-Interpersonal influences come from a consumer’s relationships with other people and groups. These influences come from a consumer’s participation in family, culture (including subcultural groups), and society (including reference groups).s
Describe the types of influences on consumer decision-making.
high-involvement decisions are those that are important to the buyer (home, newborn baby product)
Low-involvement decisions are more straightforward, require little risk, are repetitive, and often lead to a habit. (toothpaste)
What is the difference between a high- involvement purchase decision and a low-involvement purchase decision and identify a consumer purchase decision involving each.
routine (low-involvement), extended (high-involvement), limited (in the middle)
Describe the three types of problem-solving processes and identify a customer’s level of involvement with each type.
Routine (low-involvement)
Identify the problem-solving process in this situation: Consumer always goes to Joe’s repair shop to fix his car
Extended (high-involvement)
Identify the problem-solving process in this situation: Buying a home takes extensive search because buyer wants to make sure he buys a house in a good school district
Consumers may make ethical considerations part of their decision-making process, either by boycotting brands and products or through positive buying. Labor conditions, fair trade, and environmental concerns may all factor in consumer decisions.
Explain how Corporate Social Responsibility (CSR) may influence the decision-making process for consumers.
The salesperson extends the relationship that was established through marketing efforts and makes a personal connection with you. If you have a good experience, your relationship with the company gets even better, and you are more likely to shop there again and tell your friends. In addition to closing the sale (when the customer purchases the product or service), the salesperson has a very important role in the marketing process. Because the salesperson (in the store, online, or on the phone) is a primary touch point and a personal interaction with the customer, the salesperson is the brand in the eyes of the customer.
Personal Selling is the personal aspect of the Promotion “P” in the marketing mix, briefly discuss how you think Personal Selling is part of both Marketing and Sales.
- consultative selling is about partnering with the customer with a true focus on problem-solving
- solution selling offers a complete package or solution for the business problem
- team selling involves a dedicated team working together to represent the company and meet customer needs
- telemarketing is a method of direct marketing either over the phone or through a subsequent face-to-face or web conferencing appointment scheduled during the call
Briefly discuss the 4 main types of sales approaches
Technological advances and the internet are providing additional means for customers and salespeople to interact.
Adaptive selling is a trend in personal selling that focuses on understanding the customer’s social style and adapting your approach to it.
Integrated marketing communications (IMC) supports sales by immersing customers in communications with the brand using different touchpoints.
Artificial intelligence is allowing sales to reach a new level of customized messaging.
Define the 4 key trends in Personal Selling
Prospecting and Qualifying
Approaching customers
Presenting and demonstrating the product
Handling objections
Closing
Following up
Name the 6 steps in the sales process
It is unethical for salespeople to deceive customers through lying or omission. Anticompetitive practices—such as bait and switch, planned obsolescence, and pyramid schemes—are another form of unethical behavior in sales.
For a sales organization and each sales rep, there are several areas of ethical behavior that are vital to uphold. Describe the unethical issues you’d want to avoid as an ethical sales rep.
Distributive: Divide the pie (win-lose)
Integrative: Collaborate to expand the pie (win-win)
Inductive: Start with details
Deductive: Start with the big picture
Mixed: Focus on key details and big picture items (most common)
Describe the five approaches utilized by various organizations to implement negotiating strategies.
cooperation/concern for others vs assertiveness/concern for self
The avoiding style seeks to deny conflict.
The accommodating style gives in to what the other side wants, even at the expense of one’s personal goals.
The compromising style is a middle ground, where individuals express their own concerns, but still respect the other person’s goals.
The competing style wants to reach a goal regardless of what others say or how they feel.
The collaborating style seeks a win-win solution to the problem in which both parties get what they want.
Based on the Dual Concern Model, explain the five common styles involved in handling conflict Also describe the two competing concerns explained in the Dual Concerns Model.
Target market: B2C – Larger, B2B – Smaller, niche
Purchasers: B2C – Single, B2B – Multiple
Buying process: B2C – Single step, B2B – Multiple step
Sales cycle: B2C – Shorter, B2B – Longer
Sales driver: B2C – Recognition and repetition, B2B – Relationship and detailed information
Explain the differences between consumer and organizational buying as related to each of the following: Target Market, Purchasers, Buying Process, Sales Cycle, and Sales Drivers.
straight rebuy: the organization reorders a good or service without any modifications
modified rebuy: the buyer wants to reorder a product but with some modification to the product specifications, prices, or other aspects
new task: when an organization considers buying a product for the first time
Briefly describe the three major buying situations (straight rebuy, modified rebuy, and new task) and explain the key differences between each.
Initiators who suggest purchasing a product or service
Influencers who try to affect the outcome decision with their opinions
Deciders who have the final decision
Buyers who are responsible for the contract
End users of the item being purchased
Gatekeepers who control the flow of information
Identify the six roles (participants) involved in the organizational buying center and describe their function/functions in the organizational buying process.
Personal sales are relationship based, requiring the seller to tailor the process according to the buyer’s personality and approach.
B2B sales are often large and complex, which necessitates personalizing the marketing mix to the individual buyer.
Pricing is negotiated between the buyer and seller, rather than being set and uniform across all customers.
Communication about the product and pricing takes place mainly through informal or formal verbal presentations and discussions.
Explain the four ethical challenges in B2B sales negotiation
The function of marketing in business is to bring value to customers.
What is the main function of marketing in business?
-Focusing on the needs and wants of the customers so the organization can distinguish its product(s) from competitors’ offerings. Products can be goods, services, or ideas.
-Integrating all of the organization’s activities, including production and promotion, to satisfy these wants and needs.
-Achieving long-term goals for the organization by satisfying customer wants and needs legally and responsibly.
What is involved in the marketing concept?
Product refers to the goods, services, or ideas that a company offers to the market. Marketers consider the phases of the product life cycle, the product mix, positioning, and branding as they put together a product strategy.
Identify the important characteristics of the Product element of the marketing mix.
Price refers to something given in exchange for a product. Pricing strategy is based on demand for the product, customer’s perceived value of the product, and the cost of producing that product. Pricing strategies include skimming, penetration pricing, leader pricing, bundling, and prestige pricing.
Identify the important characteristics of the Price element of the marketing mix.
Promotion refers to methods for informing and influencing customers to buy the product. Each company creates a unique promotional mix for each product. The promotional mix may include traditional advertising, sales promotion, public relations, and digital marketing (including social media, online advertising, and content marketing). Integrated marketing communications is an approach that carefully coordinates all promotional activities to produce a consistent, customer-focused message.
Identify the important characteristics of the Promotion element of the marketing mix.
Place involves how the product gets from the producer to the customer, including supply chain and inventory management. Companies may use direct or indirect distribution models. They may use corporate, contractual, or administered vertical marketing systems for their distribution channels. Omnichannel retailing means having a uniform customer experience around all the ways a customer can engage with the company.
Identify the important characteristics of the Place element of the marketing mix.
In a corporate vertical marketing system, a single company owns all levels of production and distribution. For example, Apple sells the products it designs and manufactures through its own retail stores.
What is a corporate vertical marketing system?
In a contractual vertical marketing system, a formal agreement between the levels (such as franchise, retail sponsored or wholesale sponsored) coordinates the distribution process. For example, many fast food chains operate as franchises.
What is a contractual vertical marketing system?
In an administered vertical marketing system, one member of the channel system effectively controls the system out of sheer power and size. It can determine the activities of the other channel levels without an ownership stake.
What is a administered vertical marketing system?
Natural/ecological elements: Includes such factors as natural resources, increased pollution, supply of raw materials, and practices that support environmental sustainability
What are uncontrollable natural events?
Political-legal elements: Includes such factors as changes in laws, regulatory agency activities, and political movements
What are uncontrollable Political-legal events?
Socio-cultural elements: Includes such factors as the buying behaviors of specific cultures and subcultures, the values of potential customers, the changing roles of families, and other societal trends such as employees working from home and flexible work hours
What are uncontrollable Socio-cultural events?
Demographic elements: Includes such factors as changes in the ages of potential customers (e.g., baby boomers, millennials), birth and death rates, and locations of various groups of people
What are uncontrollable Demographic events?
Technological elements: Includes such factors as advances in telecommunications and computer technology
What are uncontrollable Technological events?
Economic elements: Includes such factors as changing incomes, unemployment levels, inflation, and recession
What are uncontrollable Economic events?
PEST analysis looks at uncontrollable elements in the business environment. PEST (political, economic, social, and technological) analysis provides a framework for looking at the influence of uncontrollable elements in the marketing environment. Analyzing the entirety of the macro-environment is an extensive and complex task, but understanding the framework of basic influences allows for an organized and strategic approach to isolating each opportunity or threat.
What is PEST analysis?
- Price fixing (collusion): When two or more competing companies agree (or collude) on how much to charge for a product or service
- Price discrimination: When a company charges different prices to buyers of the same product in order to maximize profit
- Predatory pricing (undercutting): When a company prices a product or service extremely low to drive out competition
- Bait and switch: When a company advertises a product for a low price and “switches” a customer to a higher-priced product
- Price gouging: When a company has a monopoly on the market and prices products or services overly high to drive profit
What are the main unethical pricing tactics?
The key components of the marketing planning process include the following:
Identifying the marketing mission statement
Conducting a situational analysis
Defining objectives
Developing strategies and tactics
Monitoring and controlling
Define marketing planning process
The marketing mission statement addresses what customers need and want from the company’s products and services.
Situational analysis helps marketers understand the controllable and uncontrollable forces that affect the company, including its competition. Various tools can support situational analysis.
Marketing objectives align to organizational objectives and describe the specific results the marketing plan hopes to achieve.
The next step involves developing a marketing strategy for the target market using the four Ps.
In the final step, marketers determine what indicators will help monitor progress on the plan, and they make adjustments if necessary.
Identify all the steps and minimum of two characteristics for each of the steps in the marketing planning process.
Marketing objectives
A marketing department develops a marketing plan that focuses on departmental goals and the actions the department must take to achieve them.
Which component provides this detailed information?
SWOT analysis offers two key benefits: (1) It encourages realistic planning, and (2) it improves an organization’s ability to forecast future events.
What are the key benefits of SWOT analysis?
The BCG matrix (sometimes called the growth-share matrix) was created in 1970 by Bruce Henderson and the Boston Consulting Group to help companies with many businesses or products determine their investment priorities.
What is the BCG matrix?
Market share is the percentage of a market (defined in terms of units sold or revenue) accounted for by a specific product or entity. Companies track market share data closely.
What is Market Share?
Market-growth potential is more difficult to quantify. It generally includes analysis of similar markets, as well as analysis of the underlying drivers for marketing growth. It is an estimation of what the future value of a market will be.
What is Market Growth?
According to the logic of the BCG matrix, as an industry grows, all investments become cows or dogs.
What happens to all investments as an industry grows according to the BCG matrix logic?
The intent of the matrix is to help companies make good portfolio management decisions. Marketers should focus investment in the areas that are likely to provide returns and fund future growth.
What is the purpose of the BCG matrix?
Porter’s Five Forces model is a tool for analyzing the competitiveness of a market. Companies use the Five Forces model to identify opportunities or evaluate decisions in the context of the environment.
What is the purpose of Porter’s Five Forces model?
A marketing strategy is how you will achieve the specified objectives in the marketing plan. It is informed by a clear understanding of an organization’s strengths and weaknesses, the competitive environment, the potential for growth, and the target customer.
What is a marketing strategy?
All data should be assessed for its reliability and validity, and marketing research may incorporate data from many sources to provide a more complete answer to a marketing problem or question.
What should all data be assessed for?
Qualitative research explores ideas, perceptions, and behaviors in depth with a relatively small number of research participants. Quantitative research collects information that can be easily counted, tabulated, and statistically analyzed.
What is the difference between qualitative and quantitative research?
It aims to answer questions with more complex, open-ended responses. It provides information that can help marketers understand the big picture of how customers perceive or experience something.
What kind of questions does qualitative research answer?
Quantitative methods allow researchers to test and validate a hypothesis or an idea that they believe is the best course of action.
What kind of questions does quantitative research answer?
Secondary data is more cost-effective and may even be freely available. However, it may be older information or may not directly address the specific problems or challenges that interest you.
Identify advantages and disadvantages of secondary data
behavioral observation, in-depth interviews, focus groups, social listening, survey research, and experimental research.
What are the typical primary marketing research techniques?
When creating a survey, marketing researchers must strike the right balance between covering enough information to gain useful data and making the questionnaire short enough that people will finish it. The longer the questionnaire, the less likely people are to take the time to answer all the questions. Most marketing researchers concur that if a questionnaire takes longer than 15 minutes to answer, people will often not finish it.
What should marketers do when creating a survey?
Tactical planning addresses the actions associated with a marketing strategy
Which component of the market planning process addresses the actions associated with a marketing strategy?
Exploring ideas, perceptions, and behaviors in depth
Which attribute represents qualitative research?
Market penetration: This growth strategy uses current products and current markets with the goal to increase market share. Under Armour (lowest risk)
What is the Market Penetration strategy according to the Strategic Opportunity Matrix?
Market development: This growth strategy uses existing products to capture new markets. For example, Starbucks engages in market development by selling its coffee beans in grocery stores.
What is the Market development strategy according to the Strategic Opportunity Matrix?
Product development: This growth strategy uses new products in the existing market. Nissan Leaf
What is the Product development strategy according to the Strategic Opportunity Matrix?
Diversification: This strategy creates completely new opportunities for the company by creating new products and new markets. Disney (highest risk)
What is the Diversification strategy according to the Strategic Opportunity Matrix?
Product development
Which growth strategy utilizes existing markets with new products using the strategic opportunity matrix?
Market penetration
Which growth strategy utilizes existing markets with existing products using the strategic opportunity matrix?
Diversification
Which growth strategy utilizes new markets with new products using the strategic opportunity matrix?
Market development
Which growth strategy utilizes new markets with existing products using the strategic opportunity matrix?
A customer’s life cycle includes the customer’s entire interaction with the company or brand: a path from the first contact to loyalty.
What is a customer’s life cycle?
CLV = (profit margin per customer x # of years customer is active) – cost of acquiring customer
How is CLV calculated?
average sales revenue per customer,
average profit margin contribution per customer,
average number of sales annually by customer,
number of years and months the average customer remains active, and
cost of acquiring a new customer
What information is needed to calculate CLV?
value equity—how the customer assesses the value of the product or service provided by the company
brand equity—how the customer assesses the value of the brand, above its objective value
retention equity—the tendency of the customer to stick with the brand, even when it is priced higher than an otherwise equal product.
What are three drivers to customer equity?
Ethical concerns with CRM involve ensuring appropriate contact with customers (frequency and method of contact) as well as maintaining data privacy and security.
What are the main ethical concerns of CRM?
Market segmentation is the process of separating, identifying, and evaluating the layers of a market.
What is market segmentation?
Place: What place does the offering occupy in its market?
Rank: How does the product or service fare against its competitors in the areas evaluated by customers deciding what to buy?
Attitude: How does the company want customers to think about this offering and the benefits it offers them?
Outcomes: What must it do to ensure the product or service delivers on the positioning selected?
What questions do you answer when you position a product or service?
The target market
The brand name
The key points of differentiation
The product and service category or frame of reference in which you are establishing this market position
The reasons why customers should believe the positioning claims
*Positioning statements should also be statements of truth.
What should a positioning statement include?
Positioning strategies can be based on product attributes, price, quality, competition, application, user groups, or category.
What are the main positioning strategies?
Marketers can use a positioning map as a tool to understand where their product fits in the market with respect to the competition. This helps marketers select the most effective positioning strategy.
What is a positioning map used for?
Society
Which interpersonal influence affects consumer behavior through reference groups, which may be formal or informal, through friendship, face-to-face interaction, and even indirect contact?
Concentrated
A company which leases RV camp sites in the southern-most parts of the United States, places advertisements in a retiree-based organization’s magazine to attract retiree campers during winter. The company only caters to retiree campers.
searching
Determining which movie to watch by visiting a movie critic’s website describes which stage of the consumer decision-making process?
Customer support assistance is integrated across channels.
What is a benefit of customer relationship management (CRM)?
The target market and what customers should think about the brand
What elements are identified by a positioning statement?
Perception
Which personal influence is described as a process by which a consumer identifies, organizes, and interprets information to create meaning?
Team selling should be used when there is a chance of high sales and profit.
When should team selling be used?
analytical, driver, amiable, and expressive.
What are the four social styles in the social style matrix?
As defined in the social styles matrix map, expressives are defined by high responsiveness and high assertiveness. (Want to know “who”)
What behavior characteristics are expressives identified by in adaptive selling?
As defined in the social styles matrix map, drivers are defined by low responsiveness and high assertiveness. (Want to know “what”)
What behavior characteristics are drivers identified by in adaptive selling?
As defined in the social styles matrix map, amiables are defined by low assertiveness and high responsiveness. (Want to know “why”)
What behavior characteristics are amiables identified by in adaptive selling?
As defined in the social styles matrix map, analyticals are defined by low assertiveness and low responsiveness. (Want to know “how”)
What behavior characteristics are analyticals identified by in adaptive selling?
Despite the term close, which implies the end, closing the sale starts with the first step in the selling process—qualifying. The close builds on everything that has already taken place throughout the selling process—rapport, trust, and information sharing. Not only does closing start at the first point in the selling process, but it also is far from the end of the selling process.
When does closing the sale begin?
interpersonal, organizational, and environmental
What are the types of factors that contribute to B2B purchase decisions?
- The economic buyer—This individual is responsible for buying products that enable the company to achieve a business advantage. can range from the business unit manager level to as high as the CEO. This buyer type is sometimes referred to as the decider or decision maker.
- The infrastructure buyer—Also known as influencers, this role influences the buying decision at the execution level. typically someone in the IT department.
- The user buyer—This position often initiates the purchase process and influences the buying decision at the user level.
What roles make up the decision-making unit in the hi-tech sector?
Investigation: information gathering
Determining Your Desired Outcome: thinking through your desired outcome or best alternative to a negotiated agreement
Presentation: assemble the information you have gathered in a way that supports your position
Bargaining: parties discuss their goals and seek an agreement
Closure: you and the other party have either come to an agreement on the terms or one party has decided that the final offer is unacceptable, therefore that party walks away
What are the five phases of negotiation?
Some people are taught to feel that negotiation is a conflict situation, and these individuals may tend to avoid negotiations to avoid conflict. Other common mistakes include letting ego get in the way of creating a fair deal for both parties, having unrealistic expectations, or allowing emotions to derail the negotiation process.
What common mistakes cause negotiations to fail?
The varying degree of cooperation (concern for the needs of the other, or empathy) and assertiveness (concern for your own needs, or self-interest) that each conflict style entails.
What does the Dual Concern Model grid show?
Demonstrate respect for your target customer
Demonstrate high personal standards in business relationships
Provide fair value to the target customer
Play nicely in the competitive environment
Be truthful
Explain the five ethical responsibilities of sales and marketing employees.
They are to be “milked” continuously with as little investment as possible, since such investment would be wasted in an industry with low growth. Cash “milked” is used to fund stars and question marks, that are expected to become cash cows some time in the future.
What should you do with a cash cow according to the BCG matrix?
Dogs, thought of as pets, should be sold off once short-time harvesting has been maximized.
What should you do with a dog according to the BCG matrix?
Question marks (also known as adopted children) are a starting point for most businesses. Question marks have a potential to gain market share and become stars, and eventually cash cows when market growth slows. If question marks do not succeed in becoming a market leader, then after perhaps years of cash consumption, they will degenerate into dogs when market growth declines. When a shift from question mark to star is unlikely, the BCG matrix suggests divesting the question mark and repositioning its resources more effectively in the remainder of the corporate portfolio[2]. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.
What should you do with a question mark according to the BCG matrix?
The hope is that stars become next cash cows.
Stars require high funding to fight competitors and maintain their growth rate. When industry growth slows, if they remain a niche leader or are amongst the market leaders, stars become cash cows; otherwise, they become dogs due to low relative market share.
What should you do with a star according to the BCG matrix?
PRE-ASSESSMENT:CONCEPTSINMARKETING,SALES,AND
CUSTOMERCONTACT(KQO1)(PKQO)
Attempt #3
Status:Passed
1. What uncontrollable marketing element provides user input as to how the company delivers upon its value
proposition?
YOUR
ANSWER
CORRECT
ANSWER
Quality controlinspections
Product delivery schedule
Competitive elements
Consumer feedback
2. Whichset of activities related to creating, communicating, delivering, and exchanging offerings hasvalue for
others?
YOUR
ANSWER
CORRECT
ANSWER
Marketing
Sales
Distribution
Quality
3. Which controllable element is included in the marketing mix?
YOUR
ANSWER
CORRECT
ANSWER
Legal
Product
Political
Environmental
4. Which concept refers to the number of product versions in a product line?
YOUR
ANSWER
CORRECT
ANSWER
Accessibility Policy Accessibility Settings
WGU Chat
Depth
Width
Brand
5. What type of vertical marketing system is a franchise?
YOUR
ANSWER
CORRECT
ANSWER
Conict
Corporate
Contractual
Administered
6. A marketer introduces a tutorial video featuring the company’s new cosmetic line.
Which set of elements from themarketing mix is themarketer using?
YOUR
ANSWER
CORRECT
ANSWER
Price andplace
Product and price
Promotionand place
Product and promotion
7. An online consignment store offers free gifts with purchases within the next 30 days using an attractive and
easy-to-usewebsite.
Which part of themarketing mixis represented by the company’s website?
YOUR
ANSWER
CORRECT
ANSWER
Price
Product
Promotion
Place
8. An online consignment store offers gently used designer fashions and sends weekly text alerts to customers o
new arrivals and popular items.
Which element of a marketing mixis represented by this store’s text alerts?
YOUR
ANSWER
CORRECT
ANSWER
Accessibility Policy Accessibility Settings
WGU Chat
Price
Product
Promotion
9. A manager is researching an element of the marketing environment that the company cannot control.
Which one of these elements is the manager considering?
YOUR
ANSWER
CORRECT
ANSWER
Place
Pricing
Promotion
Demographic
10. A manager is writing a marketing plan and reviewing the company’s microenvironment.
Which environmental factor is this manager considering?
YOUR
ANSWER
CORRECT
ANSWER
Competitive
Demographic
Political-legal
Socio-cultural
11. What is a controllable element of the marketing environment?
YOUR
ANSWER
CORRECT
ANSWER
Legal
Social
Cultural
Promotion
12. What is an example of a controllable element that inuences marketing decisions?
YOUR
ANSWER
CORRECT
ANSWER
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Promotional campaigns
Technological advances
Social factors
13. Which action reects the use of ethical marketing?
YOUR
ANSWER
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ANSWER
Posting revised customer reviews
Reselling returned products online
Supply chain transparency reporting
Labeling without instructions foruse
14. A small town has two coffee shops. The shop owners agree to raise their prices for espresso drinks from $3 to
$6 per cup becausethey are the only two shops in themarket.
Which illegalpricing tactic is being used?
YOUR
ANSWER
CORRECT
ANSWER
Price xing
Bait and switch
Predatory pricing
Price discrimination
15. A woman visits a baby store, planning to buy a crib for $100. The salesperson tells her that the $100 crib is no
longer available but a$250 crib can be purchased. Thewoman can see the$100 crib boxes on a shelf.
Which pricing tacticwas thesalesperson attempting to use?
YOUR
ANSWER
CORRECT
ANSWER
Price xing
Bait and switch
Predatory pricing
Price discrimination
16. An energy drink company is promoting the benets of its caffeinated product without identifying the risks of
consuming thedrink.
Which action should the company take to align its marketing with ethical practices?
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Promoting product benets
Using transparent marketing
Delivering the promised value
17. A tness application allows users to opt-out of its tness reminder text messages but continues to send text
messages for 30 days following the opt-out period. Users arenot notied of this fact when they opt-out of the
text messages.
Which ethical marketing practice is thecompany violating?
YOUR
ANSWER
CORRECT
ANSWER
Customer value
Sales promotion
Customer privacy
Brand engagement
18. A marketing manager is conducting a situational analysis during the market planning process and needs to
differentiate between controllable and uncontrollableelements. Themanager decides to rst identify the
controllableelements.
Which business element is themanageridentifying?
YOUR
ANSWER
CORRECT
ANSWER
Culture
Products
Customer
Competition
19. A marketing manager would like to take advantage of factors outside the company to develop an effective
marketing plan.
Which factor does themanager needs to consider?
YOUR
ANSWER
CORRECT
ANSWER
Market forces
Company resources
Product management
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Strengths andweaknesses
Financialandhuman resources
Technicalresources andproducts
21. Which SWOT analysis component is under a company’s control?
YOUR
ANSWER
CORRECT
ANSWER
Legalchanges
Social trends
Product budgets
Market entrants
22. A manager seeks to help the organization make good portfolio-management decisions.
Which tool should themanager use for this process?
YOUR
ANSWER
CORRECT
ANSWER
BCG matrix
Acidtest ratio
SWOT analysis
Porter’s ve forces
23. According to the logic of the BCG matrix, marketers should focus investment in the areas that will provide
good returns and fund futuregrowth.
Which quadrant of theBCG matrixmeets this guideline?
YOUR
ANSWER
CORRECT
ANSWER
Dog
Star
Cash cow
Question mark
24. A manager is considering the economics of an industry’s factors that determine how competitive, attractive,
and protable themarketis forthecompany’s products.
Which planning tool is being used by this manager?
YOUR
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CORRECT
ANSWER
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SWOT analysis
Porter’s ve forces model
Pro forma income statement
25. A company operates in an industry in which raw materials are scarce, and in which the vendors charge
excessively high prices forraw materials.
Which one of Porter’s ve forces is illustrated by this company’s situation?
YOUR
ANSWER
CORRECT
ANSWER
Threat ofnew entrants
Bargaining power ofbuyers
Threat ofsubstitute products
Bargaining power ofsuppliers
26. A marketer selects the use of banner ads in order to achieve higher sales revenue.
Which componentof themarketing planning process is being represented by this action?
YOUR
ANSWER
CORRECT
ANSWER
Tactic
Vision
Mission
Strategy
27. A company analyzes its internal and external environments, identies the needs of its target market, and
develops a plan for accomplishing its mission, objectives, and goals.
Which componentof themarketing planning process has the company developed?
YOUR
ANSWER
CORRECT
ANSWER
Tacticalplanning
Marketing plan
Performance analysis
Tacticalimplementation
28. Which component of the marketing planning process utilizes situation analysis to address the needs of the
target customer?
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ANSWER
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ANSWER
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Strategy
Weaknesses
Opportunities
29. What is a limitation of primary data sources?
YOUR
ANSWER
CORRECT
ANSWER
Less exibility indata collection
Requires expertise in data collection
Data may havechanged during the period
Fails to directly address the needed information
30. Which ethical guideline should marketers keep in mind when collecting primary data content?
YOUR
ANSWER
CORRECT
ANSWER
Maintaining data transparency
Separating groups by demographics
Answering allquestions fromparticipants
Avoiding plagiarismwhen gathering customer information
31. Why should marketing researchers follow best practices for ethical considerations?
YOUR
ANSWER
CORRECT
ANSWER
Become more cost-efcient with practices and sales gains
Support understanding ofrecent sales benets and promotions
Obtain the largest growth in marketing fora specictime period
Ensure respect for respondents and integrity of the data collected
32. A smartphone company has great brand loyalty but customers have become increasingly frustrated with the
lackof new features. Thecompanydetermines that adding new features will increasesales.
Which growth strategyis the companyusing to achieve higher sales?
YOUR
ANSWER
CORRECT
ANSWER
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Market penetration
Market development
Product development
33. An apparel company became the number-one provider in the U.S. New customers had switched to this
company’s clothing lineinstead of buying from competitors.
Which strategic opportunitydid the company use to achieve this goal?
YOUR
ANSWER
CORRECT
ANSWER
Diversication
Market penetration
Market development
Product development
34. A marketing manager for a U.S. puzzle factory plans to work with a t-shirt designer to add a puzzle t-shirt to
his existing puzzle products to enter theJapanesemarket.
Which growth strategyis being used by this company?
YOUR
ANSWER
CORRECT
ANSWER
Diversication
Market penetration
Market development
Product development
35. What is a challenge of a Customer Relationship Management (CRM) system?
YOUR
ANSWER
CORRECT
ANSWER
Itwill identify a marketing problem.
Itcapturesdata across the customer life cycle.
Itis able to move a customer towards a nal purchase decision.
Itfocuses on data that reects majority preferences.
36. Which customer has the lowest customer lifetime value (CLV) rate?
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ANSWER
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Repeat customers with buying potential
One time customer with a huge purchase
Frequent customers with buying potential
37. Which equity driver involves assessing the worth of a company’s product?
YOUR
ANSWER
CORRECT
ANSWER
Value
Brand
Retention
Customer
38. Which equity driver involves assessing the uniqueness of a company’s product from its competitors?
YOUR
ANSWER
CORRECT
ANSWER
Value
Brand
Retention
Customer
39. A marketing department is reviewing a new Super Bowl ad for the company with the goal to reach the largest
possible audience.
Which marketing approach is being used?
YOUR
ANSWER
CORRECT
ANSWER
Mass marketing
Personalselling
Business-to-business
Product differentiation
40. A company needs to effectively reach the target market with the right products, services and messages.
Companyleaders suggest reducing the consumers into smaller groups to streamline theprocess.
Which conceptis being illustrated?
YOUR
ANSWER
CORRECT
ANSWER
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Market segmentation
Consumer evaluation
Establishing promotions
41. Which component must the marketing team create to effectively target each segment of the consumer
market?
YOUR
ANSWER
CORRECT
ANSWER
Fiscalplans
Marketing mix
B2B marketing plan
Research and development
42. Which action includes selecting a segment to serve as the focus of the marketing team’s efforts?
YOUR
ANSWER
CORRECT
ANSWER
Mix
Target
Niche
Differentiation
43. A mobile phone carrier markets pricing plans to its customers differently depending on how much data the
customers useeach month.
Whattype segmentation strategyis the mobile phone carrier using?
YOUR
ANSWER
CORRECT
ANSWER
Geographic
Demographic
Psychographic
Product-related
44. What type of marketing is a company using if their efforts are directed towards a specic group?
YOUR
ANSWER
CORRECT
ANSWER
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Strategy
Mass
Undifferentiated
45. Which factor is used more efciently when a target market has been identied?
YOUR
ANSWER
CORRECT
ANSWER
End users
Potentialusers
Fiscalresources
Legalcompliance
46. A mattress retailer sells a variety of quality mattresses. The company wishes to reach a large customer base by
offering graduated rebates to differentcustomers depending on thesize and qualityof themattress purchase
by thecustomer. Several commercials are developed to highlight each mattress along with its accompanying
rebate.
Whattype of targeting strategy is being used by themattress retailer?
YOUR
ANSWER
CORRECT
ANSWER
Concentrated
Differentiated
Micromarketing
Undifferentiated
47. A consumer laundry detergent manufacturer makes several types of laundry detergents and wishes to create
commercials foreach of theproducts showcasing each product’s strengths.
Whattype of targeting strategy is being used by this consumer laundry detergent manufacturer?
YOUR
ANSWER
CORRECT
ANSWER
Micro-marketing
Concentrated
Differentiated
Undifferentiated
48. A customer reviews clothing items on an e-commerce site. The customer wants to be seen as current and
trendy. The site stresses the value and durability of the clothing it sells, so the customer moves on to another
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The customer wanted to shop more online
The product did not meet the pricing criteria
The customer’s idea offashionwas not reected
The claims of product durability were questionable
49. In its ads and product literature, Phone A brand commonly compares its products and their operating systems
against Phone B and theiroperating system.
Which positioning strategy is being used by thePhone A brand?
YOUR
ANSWER
CORRECT
ANSWER
User
Quality
Attributes
Competition
50. A realtor wants to sell luxury vacation homes and would like to identify potential buyers.
Whatmust therealtor understand to target this group?
YOUR
ANSWER
CORRECT
ANSWER
Howbuyers arrive at the decision to purchase a luxury vacation home
Whatthetotal costs are when selling luxury vacationhomes
Whatthemarketing budget is forselling luxury vacationhomes
Howthe sales projections for luxury vacationhomes look nextquarter
51. A customer is searching for a book on Ireland in a used bookstore that specializes in travel biographies. She
wants to purchasethebook as a birthday gift for a friend who has special memories of a trip to Dublin.
Whatelement of consumer behavioris inuencing thecustomer’s purchase?
YOUR
ANSWER
CORRECT
ANSWER
Price
Family
Emotion
Society
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ANSWER ANSWER
Act and buy
Search and process information
Evaluateand identify alternatives
Problem and opportunity recognition
53. An individual bought a premium computer but is now concerned that it will be obsolete in a couple of months
after a friend mentions thata newer version will be coming out soon. Theindividual wishesthatthepurchase
had been delayed until after thenew version comesout.
Which formof dissonance is this individual experiencing?
YOUR
ANSWER
CORRECT
ANSWER
Reduction
Awareness
Pre-purchase
Post-purchase
54. Which personal inuence is related to physiology, safety and security, love and belonging, esteem, or self-
actualization?
YOUR
ANSWER
CORRECT
ANSWER
Need
Learning
Attitude
Perception
55. Which interpersonal inuence group is critically important as a consumer unit and has a major impact on
attitude and behaviortoward brands?
YOUR
ANSWER
CORRECT
ANSWER
Family
Culture
Society
Leader
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Search
Post-purchase
Needrecognition
57. A customer wants to purchase a novel for a ight that departs in less than an hour. The customer quickly
searches for reviews to determine which book has themost positive ratings.
Whattype of problem-solving is being used by this customer?
YOUR
ANSWER
CORRECT
ANSWER
Limited
Routine
Extended
Consumer
58. A company designs a loyalty program for its customers who purchase their products every week.
Whattype of problem-solving process do thesecustomers exhibit?
YOUR
ANSWER
CORRECT
ANSWER
Limited
Routine
Extended
Promotion
59. A company publishes its environmental and social practices monthly on its website.
Whattype of ethical behavioris being practiced by this company?
YOUR
ANSWER
CORRECT
ANSWER
Advocacy
Sustainability
Transparency
Industrialization
60. A sales representative interacts with a prospect by asking insightful questions that help the prospect identify
the specic requirements of their needs. Throughout the process, the sales representative interacts with the
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ANSWER ANSWER
Tele-selling
Team selling
Consultative selling
Business-to-business selling
61. Which types of points are blogs, wikis, and social media that companies use to build and sustain relationships
with the customer?
YOUR
ANSWER
CORRECT
ANSWER
Touch
Adaptive
Negotiation
62. What is one factor a company should consider when designing a team selling approach?
YOUR
ANSWER
CORRECT
ANSWER
Who willlead the sales team
Howrewards will be distributed
Howto offer a completepackage
When to communicate with the customer
63. A salesperson sends a recorded sales pitch to potential clients through mobile phones.
Which selling method is described in this scenario?
YOUR
ANSWER
CORRECT
ANSWER
Telemarketing
Consulting
Solution selling
Team selling
64. Which activity is conducted by salespeople but not by marketers?
YOUR
ANSWER
CORRECT
ANSWER
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Designing the brand message
Copywriting advertising communications
Determine the consumer’s risk tolerance for the purchase
65. Individuals A and B are negotiating Individual A’s pay package with multiple forms of pay and benets to be
discussed and agreed upon by both. While thegoals are not compatible, Individuals A and B willhave along
relationship as boss and worker which must be taken into account during their negotiation.
Which approach to negotiation should thesetwo individuals adopt?
YOUR
ANSWER
CORRECT
ANSWER
Inductive
Deductive
Distributive
Integrative
66. An individual was hired by a rm and will negotiate a salary package soon. In preparation, the individual is
researching what similar jobs in thearea are paying.
Which stageof negotiation is being illustrated by this individual?
YOUR
ANSWER
CORRECT
ANSWER
Closure
Outcome
Bargaining
Investigation
67. Individuals A and B had to share one administrative support assistant between the two departments, and due
to an increase in sales, theneed foradministrative support grew in each department.
Thetwo resolved theworktime issue of theadministrativesupport assistantforeach departmentby
emphasizing problem-solving and integration of each other’s goals. Using this style created a win-win solution
forboth departments.
Which style of handling conict was used by thesetwo individuals?
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ANSWER
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Competition
Collaboration
Accommodation
68. A company is purchasing a product. This decision involves a large number of participants and the collection o
a great amount of information. The product is expensive and there arehigh risks associated with the purchase
Which type of Business to Business (B2B) buying situation is this?
YOUR
ANSWER
CORRECT
ANSWER
New task
Solution selling
Straight rebuy
Modied rebuy
69. A sales representative is told by a client company <To prepare for our next month’s production, order the sam
quantity of the same product that we ordered forthis month’s production but change thecolorfromblue to
red”.
Which type of Business to Business (B2B) buying situation is this?
YOUR
ANSWER
CORRECT
ANSWER
New task
Modied rebuy
Straight rebuy
Relationship selling
70. A sales representative calls on a company and is told, <We will order the same product and quantity that we
ordered lastmonth, but please have theproduct delivered to ourwestern plant instead of oureastern plant.=
Which type of Business to Business (B2B) buying situation is this?
YOUR
ANSWER
CORRECT
ANSWER
New task
Modied rebuy
Straight rebuy
Organizationalpurchasing
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