Marketing Exam 2 Questions and Answers PDF

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Notes for exam 2 for Marketing 301, taught by Leslie Koppenhafer...

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OCT 5 1. Why should companies consider engaging in CSR? Csr is corporate responsibility, which companies should engage in because first, it ties their product to a cause and creates positive associations for customers, second, because it acknowledges a triple bottom line: people, planet, and profit. 2. What is cause-related marketing? Provide an example (not from the slides) of a company engaging in this practice. Marketing that ties a product or company to a specific cause that improves the company’s image while benefitting that cause. An example might be a grocery store that donates 1/20th of its profits to providing food for homeless people. 3. Provide two reasons why a company might choose to go global. A company might go global because it wants to increase profits and the domestic market is saturated, or perhaps because it doesn’t want to be dependent on a single market that may crash. 4. Using an example, explain the importance of understanding culture when choosing to go global. A company that sells Barbie dolls might sell them in a Middle Eastern country where there are a lot of Muslims and modesty is an important cultural value. Because of this, the company might sell Barbies dressed more modestly or wearing traditional Muslim clothing. 5. Name two hurdles to global success and discuss their impact. •Culture: cultural differences might mean that people aren’t interested in the product. •Economic: perhaps people in the other country don’t make as much money. •Technological: a computer company might not have success in a third world country because there aren’t technological developments to match (for example, wifi and internet availability) •Political: the current political climate might make people afraid of buying right now or more likely to buy. •Demographic4 a culture that is predominately above the age of 45 might not be interested in hip sunglasses. •Natural Resources OCT 10 1. What is the primary way to avoid disastrous cultural marketing? Do not assume that people in one culture have the same values and attitudes as those in another culture. 2. What is one of the questions you must answer once you decide to engage in international marketing? What the product should look like, what it does, when it should be used, and who uses it. 3. Explain why a company would use “licensing” to enter a new market. Because licensing is easier —the marketing and integration of the product would be done by the licensee. All the company has to do is sell the licensee the rights to use the trademark/trade secrets/brand name etc. 4. Why might a company decide to use “glocal” marketing to enter a new market? Because glocal marketing is the only way to do it. The company might keep their brand name and a few aspects of their company, but really they are adapting products to local customers and needs—they are thinking globally but acting locally. 5. Using a different example than discussed in class, provide an example of a company modifying a product to enter a the global marketplace. A successful restaurant in France opens a branch in America, adapting the food to be more “American,” fast, and easy. The American restaurant’s food would not be quite as fancy or precise as the French restaurants, but both restaurants would still use the same brand name.

ENVIRONMENTAL FORCES 1. Name and explain two criteria necessary for segmentation success. Substantiality (segment is big enough to market to), identifiability and measureability (results can be measured, segment can be identified), accessibility (segment is reachable by company marketing), and responsiveness (segment responds to company’s marketing efforts and shows interest in product). 2. What are the steps in STP and what is the objective of each step? Segmentation (dividing the market into appropriate segments), Targeting (develop measures of segment’s attractiveness), and Positioning (develop positions for segments and develop a marketing mix). 3. How do you prioritize segments? Answer these questions: Can you meet that segment’s expectations? Are these desireable segments? Can you reach them effectively? What’s your competition doing and how will they respond? 4. Provide an example of a variable within demographic segmentation and create at least four different levels for that variable. Age, income, education (levels: highschool, trade school, college, grad school…), household size. 5. How does a market segment differ from market segmentation? A market segment is just an area of the market. Market segmentation is dividing up the market and selecting profitable segments from within the market. TARGETING

1. How do Malcolm Gladwell’s thoughts on consumer choice match or contradict Barry Schwartz’s thoughts? (Both are TED Talks) Malcom Gladwell talks about how we like having more choices and satisfaction rate goes up when we can choose the perfect item. Barry Shwartz talked about how too many choices (even if they are the best choices) actually creates dissatisfaction cause we always feel there’s something better. 2. What criteria should be used to evaluate market segments? Segment size and growth, segment attractiveness, company objectives and resources. 3. How does segmenting the market help you arrive at a target market? By segmenting the market, you can compare and contrast segments and select an ideal target market for your company and products. 4. Explain two ways that developing customer profiles can help marketers. 1. They enable marketers to zero in on exactly who their customers are. 2. They allow marketers to see not just the demographic characteristics of the customer, but also the more personal needs, pain points, and wants of the customer. 5. Provide an example of how target marketing can be ethically questionable. It can target underprivileged individuals or individuals who have a want for the product that is not healthy. For example, targeting someone who is addicted to drugs sells the product but doesn’t help the addict. POSITIONING 1. What do companies do with positioning statements? The positioning statement is an internal marketing tool that enables the company to coordinate marketing efforts. Slogans or advertising are sometimes dressed up versions of the positioning statement.

2.

Name and explain two ways to differentiate a company from its competitors. There is product differentiation, service differentiation, people differentiation, and image differentiation. 3. Explain the impact of a company underpositioning itself: Underpositioning is failing to really position the company at all and making the position to broad. Overpositioning is focusing in too narrowly. Confused positioning is giving customers a confused idea of the company’s actual position. 4. Name two items included in a positioning statement and explain the importance of each. Target customer and key customer benefit. Target customer is the person being targeted by the positioning statement and the key customer benefit is the benefit that person receives if they buy the company’s product. 5. Identify and explain two common errors made in STP: Trying to occupy too many positions, not articulating the position, insufficient or poorly allocated budget.

NPD

1. State one way in which products differ from brands. The product is anything that can be sold, like a physical object or a service. A brand is a logo, term, sign, or symbol that labels the product and tells the customer who made the product. 2. Name and explain two elements of a product. Quality, features, style and design. Quality is the level of satisfaction the product delivers, features are the ways the product is differentiated from the competitors and what the product does, and style and design are the appearance of the product (usually also differentiates). 3. Explain why companies produce product lines rather than just products. Product lines are a group of closely related products. A company might product product lines because they can save money using package uniformity, similar advertising, and similar components in each product. 4. What role does packaging play in a product? Provide an example. Packaging has communication benefits, functional benefits, and perceptual benefits. For examples, packaging can communicate the benefits, have functional benefits by being easy to open or something (for example, microwave soup in a cups have functional benefits) and perceptual benefits (for example, a product in green packaging might be perceived as more environmentally friendly and natural. 5. Explain and provide an example of a marketing reason for NPD failure. Poor timing or product launch, misunderstanding the market, failure to address an actual need, inaccessible customers, poor quality. SERVICES 1. What should you ask yourself after each stage in the NPD process? Explain why a company would choose to organize their NPD sequentially rather than simultaneously. Sequentially is a bit slower, but gives the company more control over the product and may result in a higher quality product.

Explain two of the differences between products and services. Products are often physical, services often intangible. Also services are usually inseperable from their providers, perishable, and more variable. How do services relate to the other 3 P’s of marketing? Product: the service should be designed to be what customers want. Price: It can be hard to define one unit of service. There are revenue, operations, and patronage oriented pricing. Promotion: strong organizational image, stress tangible cues (free hat). Distribution: location and scheduling can be challenging in services. Why should a company identify the steps in their service process? Use an example to explain how this activity may help.

SERVICE AND SALES 1. Why is it important for companies to understand the services marketing triangle? Because the company must communicate the promise/values to the front line employees and the customers. The FLEs are the ones who ultimately deliver on the promise to the customers, so if they fail to deliver or fail to understand the promise, the company suffers. 2. Name and explain a role that a front line employee fulfills. Building customer relationships, representing the company, and performing productively for the company. 3. Name and explain one source of role stress for front line employees. The job vs. the persons personal beliefs, organization vs. client (satisfy customer demands or follow company rules, like when a customer asks for a bargain), client-client (conflicts between clients that demand intervention). 4. What leads to the tension between quality and productivity for employees and how can companies reduce this tension? There is stress between customer demands and organizational goals: for example, the organization wants the employee to work faster and get more done, but this produces lower quality products for the customer. 5. Explain key differences between order takers and order getters. SALES AND BRANDING • What are the different ways companies can organize their sales teams? Customer organization and geographic organization. • What should you make sure to communicate in a sales pitch? You should definitely handle objections strategically. • What is brand equity and how can you create it? Brand equity is the knowledge customers have of a brand and the positive effect that knowledge has on profits. If a customer has a positive knowledge/perception of brand, they are more likely to buy even if they have to pay more. Brand equity creates higher awareness and loyalty, customers willing to pay a premium, and company trust and credibility. • What is the difference between a line extension and brand extension? Line extension is introduction of new items in a product category, brand extension is branching into new product categories.

• Why would a company choose a private label branding strategy over the other branding strategies? Because it is quite a bit cheaper because they don’t have to produce the produce but they still have a distinctive brand. • What role do trademarks play in marketing? Trademarks give a company exclusive rights to a brand and protect it against copyright infringement. It can make a brand one-of-a-kind and enable it to stand out from competitors....