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1. What is marketing?

 Marketing is the process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in return.
What are five core customer and marketplace concepts that are critical to
success?
 (1) needs, wants, and demands;
 (2) market offerings (products, services, and experiences);
 (3) value and satisfaction;
 (4) exchanges and relationships;
 (5) markets
Pick a brand to answer these questions:
a. What needs, wants, and/or demands is the brand attempting to fill?
(NEED: physical needs for food, clothing, warmth, and safety; social needs for
belonging and affection; and individual needs for knowledge and self-expression.
WANT: An American needs food but wants a Big Mac, french fries, and a soft
drink. A person in Papua, New Guinea, needs food but wants taro, rice, yams, and
pork. Wants are shaped by one’s society and are described in terms
DEMAND: Human wants that are backed by buying power.)
b. Describe their marketing offers.
(Some combination of products, services, information, or experiences offered to
a market to satisfy a need or want.)
For example, the “Pure Michigan” campaign markets the state of Michigan as a
tourism destination that “lets unspoiled nature and authentic character revive your
spirit”
c. Describe the relationships they have with their customers.
d. What are their markets?
2. What is customer-perceived value and what role does it
play in customer satisfaction? Use examples to
illustrate your answer.

 Customer-percieved value is the customer’s evaluation of the difference between all the
benefits and all the costs of a marketing offer relative to those of competing offers.
 Customer satisfaction is defined as the extent to which a product’s perceived
performance matches a buyer’s expectations. If the product’s performance falls short
of expectations, the customer is disatisfied. If the performance matches expectations,
the customer is satisfied. If the performance exceeds expectations, the customer is
highly satisfied or delighted.
 Ex: Though the price of Iphone is much higher than many other phone brand, most
people choose iphone to use. Because iphone offers the highest customer-perceived
value which are high fashion look, multifunction, being trendy, etc. And their
performance always match expectations which leads to customer satisfaction.

3. Explain the roles of market segmentation, market


targeting, differentiation, and positioning in
implementing an effective marketing strategy. Use
examples to illustrate your answer.

Market segmentation: Through market segmentation, companies divide large,


heterogeneous markets into smaller segments that can be reached more efficiently and
effectively with products and services that match their unique needs.
Example: Consumer needs and wants change with age. Some companies use age and life-
cycle segmentation, offering different products or using differnent marketing approaches for
different age andlife cycle groups. For example, KFC uses give-away toys to attract kids and
promotes discount program to adults to attract them.
Market targeting: is the process of selecting the segment or segments to enter which enables
the firm to direct its resources to those customers with high potential for sales growth, interest
in the product and loyalty to the brand.
Example : Apple targeted in high-income groups who want to be trendy, conveniencet
Differentiation in marketing means creating specialized products that gain competitive
advantage with a particular segment of the market.
Example : An organic coffee with a standard and premium version. The standard version
offers a highly competitive price for consumers who are on a budget but prefer organic
coffee. The premium version is sourced from regions known for their quality and unique
taste. The premium version targets consumers who effectively have no budget constraint
when it comes to coffee and will typically buy the best product on the shelves.
Market Positioning refers to the ability to influence consumer perception regarding a brand
or product relative to competitors. The objective of market positioning is to establish the
image or identity of a brand or product so that consumers perceive it in a certain way.
Example :
 A handbag maker may position itself as a luxury status symbol
 A TV maker may position its TV as the most innovative and cutting-edge
 A fast-food restaurant chain may position itself as the provider of cheap meals

4. How should marketers respond to the changing


environment? Use examples to illustrate your answer.

 Marketers should respond to the changing environment by being prepared and


finding out as much as possible about the changing environment so that each business can
respond in an appropriate way. Marketers must be willing to change because they must
meet the demands of the customers, if they do not, then the customers will buy products
from their competitors who are willing to meet their wants or needs. Marketers should
analyze the environmental forces and design the strategies that will help the company avoid
the threats and take advantage of the opportunities the environment provides.
 Example: Despite the change in consumer tastes, lifestyle and expectations,
Coca-Cola is still focused on soft drinks where PepsiCo has already well diversified and
even enter into snack food business. The result is that PepsiCo generates about 23 per cent
of its worldwide profits from the stagnant carbonated drinks sector, while Coca-Cola relies
on fizzy drinks for 80 per cent of profits. PepsiCo’s diversification programme and its
branding-building expertise have made it the world’s fourth largest food and beverage
company, ranking behind Nestle, Kraft and Unilever. Its sales were more than $43 billion
compared with Coca-Cola’s $32 billion in 2008.

5. Discuss global demographic trends. What are the


implications of those trends and how should marketers
respond to them?

 Most developed countries are experiencing an aging process that is uniquely


under way, and by 2020, many other developing countries in Eastern and central Europe,
as well as Southeast and East Asia will experience this unique aging. Conventionally, there
is a reduced demographic transition in other developing countries and a major factor to
consider is the possibility of the increase in their working-age populations in the next
decades to come. Some of the demographic trends in the world today include the demand
trends, supply trends, and external factors.
 These trends, in one way other affect the performance of international
marketing. Demographic change will result in a slower-growing and older population.
Demographic trends may also affect the business cycle and the monetary policy
transmission mechanism and present challenges for fiscal policymakers as well. In other
words, demographics can reshape a target market, which requires marketers to rework their
marketing strategy in an effort to appeal to a changing market.
 While demographic change occurs slowly, marketers can begin to see indicators
of potential change by identifying small trends that may suggest a larger shift over time.
By paying close attention to these trends, organizations can prepare their long-term
marketing strategy to be ready when the shift becomes more apparent.
6. Explain the role of secondary data in gaining customer
insights. Where do marketers obtain secondary data
and what are the potential problems in using it?
Provide some sources for secondary data.

 Secondary data: Information that already exists somewhere, having been collected for
another purpose.
 Both internal and external secondary data sources often provide information more
quickly and at a lower cost than primary data sources, and they can sometimes yield
information that a company cannot collect by itself.
 However, needed information might not exist in secondary data sources. Researchers
can rarely obtain all the data they need from secondary sources. Researchers must also
evaluate secondary information to ensure that it is relevant, accurate, current, and
impartial. Not all needed information can be easily obtained. Information found might
not be as updated and current.
Sources:
 Company’s internal database: company’s previous research
 Commercial online database: ProQuest, Dialog, LexisNexis
 Published sources:
 Government agency
 International publications: WHO, UNESCO, WTO, …
 Newspapers, magazines, journals: The Economist, Forbes, The Wall Street Journal,
Journal of Finance, …
 Pay for secondary data from outside suppliers: US MONITOR, The Future Company,

 Internet search engines: Google, …
7. Name and describe the types of BUYING DECISION
BEHAVIOR and describe a personal example for each.

COMPLEX buying DISSONANCE- HABITUAL VARIETY-


behavior REDUCING buying behavior SEEKING
buying behavior buying behavior
Ex: House, car, Ex: Sofa, kitchen Ex: food, snacks, Ex: Body soap,
computer,… cabinet drink… shampoo,…
- Occurs when - Occurs when - Occurs under - Occurs under
consumers are highly consumers are highly conditions of low- conditions of low-
involved in a involved in a consumer consumer
purchase and purchase but see involvement and involvement but
perceive significant little difference little significant significant perceived
differences among among brands. brand difference. brand differences.
brands.
- Consumers may be - Purchase is often - Products are low- - Products are low-
highly involved expensive, cost and frequently cost and frequently
when the product is infrequent, self- purchased. purchased.
expensive, risky, expressive or risky.
purchased
infrequently and
highly self-
expressive.
- Typically, the - Buyers may - Consumers simply - Consumers often do
consumer has much consider most brands go to the store and a lot of brand
to learn about the in a given price range reach for a brand. If switching.
product category. to be the same. they keep reaching - When purchasing, a
- The buyer will pass Because perceived for the same brand, it consumer may hold
through a learning brand differences are is out of habit rather some beliefs, choose
process, first not large, buyers may strong brand loyalty. a brand without
developing beliefs shop around to learn - The buying process much evaluation, and
about product, then what is available but involves brand then evaluate that
attitudes, and then buy relatively beliefs formed by brand during
making a thoughtful quickly. They may passive learning, consumption.
purchase choice. respond primarily to followed by purchase But the next time, the
a good price or behavior, which may consumer might pick
purchase or may not be another brand out of
convenience. followed by boredom or simply to
evaluation. try something
different. Brand
switching occurs fo
the sake of variety
rather than because
of dissatisfation.
8. Name and describe the levels at which market
targeting can be carried out. Give an example of a
company using each.

Market targeting can be carried out at several different levels. The figure below shows that
companies can target very broadly (undifferentiated marketing), very narrowly
(micromarketing), or somewhere in between (differentiated or concentrated marketing).

Undifferentiated marketing (mass marketing)


Using an undifferentiated marketing strategy, a firm might decide to ignore market segment
differences and target the whole market with one offer. This strategy focuses on what is
common (rather than different) in the needs of consumers . The company designs a product
and a marketing program that will appeal to the largest number of buyers.
However, difficulties arise in developing a product or brand that will satisfy all consumers.
Mass marketers often have trouble competing with more-focused firms that do a better job of
satisfying the needs of specific segments and niches.
Examples: Coca-cola, Petrolimex (gasoline)
Differentiated marketing (segmented marketing)
Using a differentiated marketing strategy, a firm decides to target several market segments and
designs separate offers for each. By this strategy, companies hope for higher sales and a
stronger position within each market segment. Differentiated marketing creates more total sales
than undifferentiated marketing across all segments.
But differentiated marketing increases the costs of doing business. The company must weigh
increased sales against increased costs when deciding on a differentiated marketing strategy.
Examples: Colgate, L’Oreal target different market segments with different types of products.
Concentrated marketing (niche marketing)
When using a concentrated marketing strategy, a firm goes after a large share of one or a few
smaller segments or niches. Through this strategy, the firm achieves a strong market position
because of its greater knowledge of consumer needs in the niches it serves and the special
reputation it acquires.
Concentrated marketing can be highly profitable. At the same time, it involves higher-than-
normal risks. Companies that rely on one or a few segments for all of their business will suffer
greatly if the segment turns sour or larger competitores may decide to enter the same segment
with greater resources.
Examples: Rolls Royce cars target the premium car market segment.
Micromarketing
Micromarketing is the practice of tailoring products and marketing progrms to suit the tastes
of specific individuals and local customer segments. Micro marketing includes local marketing
and individual marketing.
Local marketing involves tailoring brands and promotions to the needs and wants of local
customer groups – cities, neighborhoods, and even specific stores.
Individual marketing involves tailoring products and marketing programs to the needs and
preferences of individual customers.
Examples:
Procter & Gamble (P&G) ran a unique marketing campaign to target African American women
when it introduced its Pantene Relaxed & Natural shampoo and conditioner product line.
By using big data from social media platforms, Uber was able to understand the specific
transportation problems in each city it was expanding to. The resulting effect was the growth
of the company’s client base through tailored promotions and referral benefits

9. Explain how

Through product differentiating, brands can be differentiated on features, performance,


or style and design.

10. In the context of marketing, what is a product’s


“position”? How do marketers know what it is? Use
examples to illustrate your answer.

 A product’s position is the way a product is defined by consumers on important


attributes—the place the product occupies in consumers’ minds relative to competing
products. It is the complex set of perceptions, impressions, and feelings that
consumers have for the product compared with competing products.
 3 step: identifying a set of differentiating competitive advantages on which to build a
position, choosing the right competitive advantages, and selecting an overall
positioning strategy. The company must then effectively communicate and deliver the
chosen position to the market.
11. Name and describe the types of consumer
products and give an example of each. How does the
marketing differ for each product type?

The following is a list of consumer product types and associated descriptions:

Convenience products

Convenience products are generally purchased consistently by consumers, with little

forethought or comparison (Kotler & Armstrong, 2014). An example of a convenience

product would be facial tissue (e.g. Kleenex), which marketers often place on endcap

displays or other easily accessed areas of stores.

Shopping products

Shopping products typically elicit more consideration from consumers than those in the

previous category. Such items are compared on aspects like “suitability, quality, price,

and style” (Kotler & Armstrong, 2014). An example of a shopping product would be

basketball shoes, which marketers usually limit to particular suppliers, in order to assist in

the comparison process.

Specialty products

In yet a narrower category fall specialty products, which possess unique traits that are

highly sought after by a specific group of consumers. An example would be a gaming

laptop (e.g. Alienware), which buyers may travel a considerable distance to locate and

purchase.
Unsought products

Lastly, unsought products are “consumer products that the consumer either does not know

about or knows about but does not normally consider buying” (Kotler & Armstrong,

2014, p. 251). For example, voice over internet protocol (VOIP) phone service was

initially an unsought product, as the technology was unheard of when it first debuted.

Marketers aggressively advertise such goods/services to reach their target customers.

12. What is a brand? How does branding help both


buyers and sellers? Giving your examples to depict
your answer.

A brand is a name, term, design, symbol, or any other feature that identifies one seller’s good
or service as distinct from those of other sellers.
Brand

A name, term, sign, symbol, or design, or a combination of these, that identifies the products
or services of one seller or group of sellers and differentiates them from those of competitors.

Branding helps buyers in many ways. Brand names help consumers identify products that
might benefit them. Brands also say something about product quality and consistency buyers
who always buy the same brand know that they will get the same features, benefits, and
quality each time they buy.

Branding also gives the seller several advantages. The seller’s brand name and trademark
provide legal protection for unique product features that otherwise might be copied by
competitors. Branding helps the seller to segment markets.

For example, rather than offering just one general product to all consumers, Toyota can offer
the different Lexus, Toyota, and Scion brands, each with numerous sub-brands—such as
Camry, Corolla, Prius, Matrix, Yaris, Tundra, and Land Cruiser
13. Describe the core, actual, and augmented levels of
product associated with an automobile. What level
does the mobile Wi-Fi system represent? Explain.

I think the core product of an automobile can be resumed in one word that is transportation.
On the other hand, the actual product is the tangible, physical product. You can get some use
out of it. In my opinion, the mobile WIFI system represents the level of the actual product
because the purpose of buying a car is that you need some mean of transportation.
A WIFI system is part of the features of the car.
I think the core product of an automobile can be resumed in one word thatis transportation.
On the other hand, the actual product is the tangible, physical product.
You can get some use out of it.

14. Discuss the three strategies available for products


in the mature stage of the product life cycle. For each
strategy, describe an example other than the ones in
the chapter of a company using that strategy.

In modifying the market, the company tries to increase consumption by nding new us- ers and
new market segments for its brands.

The company might also try modifying the product—changing characteristics such as quality,
features, style, packaging, or technology platforms to retain current users or at- tract new
ones.

Final, the company can try modifying the marketing mix --- Improving sales by changing one
more marketing mix elements. The company can offer new or improved services to buyers

For example, brands such as Harley-Davidson and Axe fragrances, which have typically
targeted male buyers, are introducing products and marketing programs aimed at women.
P&G’s Swiffer household cleaning brand has developed special promotions for pet owners.
15. Find an example of a company that launched a
new consumer product within the last five years.
Develop a presentation showing how the company
implemented the 4 P’s in launching the product and
report on the product’s success since the launch.

16. What is value-based pricing? Discuss factors


marketers must consider when setting price. Give
examples to illustrate your answer.

17. Compare and contrast market-skimming and


market-penetration pricing strategies and discuss the
conditions under which each is appropriate. For each
strategy, give an example of a recently introduced
product that used that pricing strategy.

18. Name and briefly describe the five product mix


pricing decisions. Use examples to illustrate your
answer.

19. Describe multichannel distribution systems and


the advantages and disadvantages of using them. Use
examples to illustrate your answer.
20. The most common type of contractual vertical
marketing system is the franchise organization. Write a
report describing an example of a franchise. Identify
what type of franchise it represents and research the
market opportunities for that product or service.

21. Discuss factors used to classify retail


establishments and list the types within each
classification. Use examples to depict your answer.

22. List and briefly describe the five major promotion


mix tools. Use your examples to illustrate your answer.

23. Discuss the external factors that impact an


organization’s the marketing communication function.
Will traditional mass media advertising soon be dead
as some have predicted? Use examples to depict your
answer.

24. Name and briefly describe the nine elements of


the communications process. Why do marketers need
to understand these elements? Use examples to address
your answer.
25. Discuss the tools used by public relations
professionals. Is public relations free promotion for a
company? Use examples to depict your answer.

The tools used by public relations professionals are as follows:

News: Public relations professionals find or create favorable news about the company.

Special Events: conferences, speeches, etc. designed to reach and interest target publics.

Written materials: Annual reports, brochures, etc.

Audiovisual materials: DVDs and online videos are increasing in their usage.

Corporate identity materials: The use of logos, stationary, brochures, signs, company vehicles

all become tools when they are attractive, distinctive, and memorable.

Public service activities: Improving public goodwill by donating money and time to a cause.

As far as public relations being free advertising, I don’t believe it’s free. It’s cheaper but not
free. It still requires a staff to develop and message and then distribute it to the masses and
hopefully it circulates enough to become a factor. Advertising is significantly more expensive
because you’re paying for the space and time in other forms of media

26. Discuss the characteristics advertising appeals


should possess to be effective. Use examples to depict
your answer.

 gain attention:content must be better planned, more imaginative, more entertaining


and more emotionally engaging than it used to be.
 engage consumers: must break through the clutter of every other ad, by using
something different
 must communicate the message well: identify customer benefits that that can be used
as advertising appeals. Must identify the best approach, style, tone words, and format
to execute the message.
27. Why is it important that the advertising media
and creative departments work closely together? Use
examples to depict your answer.

It is very important that advertising media and creative department work closely together for
developing effective means to attract customers and increase the sales of products or services.
These two go hand in hand because you want something that stands out from the competition
and is persuasive drawing the customer in from various market angles. Strategic branding and
quality will be the driving factors for advertising aimed at efficiently and effectively
construing the message of the given products or services with the potential of increasing sales
and profitability. Unorganized or unprofessional media has no potential in a competitive
market.

28. Describe the decisions marketing managers must


make when developing an advertising program. Use
examples to depict your answer.

 Setting advertising objectives, which can be classified by primary purpose: whether


the aim is to inform, persuade, or remind.
 Setting the advertising budget, often depends on its stage in the product life cycle.
 Developing advertising strategy, consists of creating an advertising message and
selecting advertising media.
 Evaluating advertising campaigns: monitor how well the advertising worked

29. Name and describe the types of consumer


promotions. Use examples to depict your answer.

The types of Consumer Promotions are as followed:


1. Samples: Offers of a trial amount of a product.
2. Coupons: Certificates that save buyers money when they purchase specified
products.
3. Marketers: They are also cultivating new outlets for distributing coupons.
4. Cash refunds (or rebates): Like coupons except that the price reduction occurs
after the purchase rather than at the retail outlet.
5. Price Packs (cents-off deals): Offer consumers savings off the regular price of
product.
6. Premiums: Goods offered either free or low cost as an incentive to buy a
product.
7. Advertising Specialties (promotional products): Useful articles imprinted with
an advertiser’s name, logo, or message that are given as gifts to consumers.
8. Point-of-Purchase (POP) Promotions: Displays and demonstrations that take
place at the point of sale.
9. Contest, Sweepstakes, and Games: Give consumers the chance to win
something, such as cash, trips, or goods by luck or through extra effort.

30. Discuss the different types of trade sales


promotions and distinguish these types of promotions
from business promotions. Use examples to depict your
answer.

These are the Consumer Promotions used as Trade Promotions:


1. Contest, Sweepstakes, and Games: Give consumers the chance to win
something, such as cash, trips, or goods by luck or through extra effort.
2. Premiums: Goods offered either free or low cost as an incentive to buy a
product.
3. Point-of-Purchase (POP) Promotions: Displays and demonstrations that take
place at the point of sale.

These are the main Trade Promotions:


1. Discount: Off the list price on each case purchased during a stated period of
time.
2. Allowance: Usually so much off the case.

 Trade promotions can persuade re-sellers to carry a brand, give a shelf space or
promote in advertising. Shelf space is scarce, so manufacturers often offer buy-backs,
price offs, allowances, and guarantees to keep the space. Some types of trade
promotions are discount, allowance and free goods or free advertising items
 Business promotions are used to generate business leads, stimulate purchases, reward
customers, and motivate salespeople. Some types are conventions and trade shows as
well as sales contests.