MKT 2400

Media Content used for social interactions such as YouTube, Facebook, and Twitter
Social Media
The 4 E Framework of Social Media
Excite, Educate, Experience, Engage
Types of Social Media
Social Networking, Media-Sharing Sites, and Thought-Sharing Sites
Social Networking
Facebook
Media-Sharing Sites
YouTube
Thought-Sharing Sites
Blogger
How to Create a Social Media Campaign
Identify strategy & goals, Target audience, Campaign: Experiment & engage, Budget, Monitor & Change
Sociocultural Factors that Effect Global Marketing
Power distance, Uncertainty avoidance, Individualism, Masculinity, Time orientation
Power Distance
willingness to accept social inequality as nautral
Uncertainty avoidance
extent to which the society relies on orderliness, consistency, structure, and formalized procedures to address situations that arise in daily life
Individualism
perceived obligation to and dependence on groups
Masculinity
Extent to which dominant values are male oriented
Time orientation
Short – versus long-term orientation. A country that tends to have a long-term orientation values long-term commitments and is willing to accept a longer time horizon for , say, the success of a new product introduction
Global Entry Strategies
Export, Franchising, Strategic alliance, Joint venture, Direct investment
Export
Producing goods in one country and selling them in anohter
Franchising
a contractual agreement between a firm, the franchisor, and another firm or individual, the franchisee
Strategic alliance
collaborative relationships between independent firms, though the partnering firms do not create an equity partnership; that is , they do not invest in one another
Joint Venture
formed when a firm entering the market pools its resources with those of a local firm
Direct Investment
requires a firm to maintain 100 percent ownership of its plants, operation facilities, and offices in a foreign country, often through he formation of wholly owned subsidiaries.
Product Strategies
Sell the same product or service in both the home country market and the host country, Sell a product or service similar to that sold in home country but include minor adaptations, Sell totally new products or services
Product Layers
Specialty, Shopping, Convenience, Unsought
Specialty
customers express such a strong preference that they will expend considerable effort to search for the best suppliers
Shopping
consumers will spend a fair amount of time comparing alternatives
Convenience
consumer is not willing to spend any effort to evaluate prior to purchase
Unsought
consumers either do not normally think of buying or do not know about at all
Product Line
groups of associated items that consumers tend to use together or think of as part of a group of similar products or services
Product Mix
Complete set of all products and services offered by a firm
VIEW Model
Visibility, Information, Emotional Appeal, Workability
Visibility
ability to attract attention at the point of purchase
Emotional Appeal
attempt to arouse specific feelings such as elegance, prestige, cheerfulness
Workability
Does the package protect the contents
Factors that affect the diffusion of an innovations
mix of rural to urban population within a society, Society’s level of education, Extent of industrialization and development
Product Life Cycle
Introduction, Growth, Maturity, Decline
Introduction
when the product is first created and introduced to the public
Growth
Starts to attract more customers
Maturity
Becomes popular
Decline
Falls out of popularity
Factors that differentiate services form goods
Intangible, Inseparable, Heterogeneous, Perishable
Evaluating Service Quality
Reliability, Responsiveness, Assurance, Empathy, Tangibles
Reliability
ability to perform the service dependably and accurately
Responsiveness
Willingness to help customers and provide prompt service
Assurance
knowledge of and courtesy by employees and their ability to convey trust and confidence
Empathy
caring, individualized attention provided to customers
Tangibles
appearance of physical facilities, equipment, personnel, and communication materials
Service Recovery
Listening to the customers and involving them in the service recovery, find a fair solution, resolve the problem quickly
5 C’s of Pricing
Competition, Costs, Company Objectives, Customers, Channel Members
New Product Pricing strategies
Market penetration strategy and price skimming
Market Penetration Strategy
set the initial price low for the introduction of the new product or service
Price Skimming
setting a high price to begin with, then slowly bring the price down
Loss Leader Pricing
Lowering prices below store’s cost
Push Strategy
merchandise is allocated to stores based on previous sales forecasts, which is likely to be a collaborative process between the manufacturer, wholesaler, and retailer (manufactures push the product through the market)
Pull Strategy
the amount of merchandise sent to the store is determined based on sales data captured by POS terminals (Customers pull the product into the marketing channel)
4 P’s of Retailing
Product, Price, Promotion, Place
Pros of in store retailing
Browsing, touching and feeling products, Personal Service, Cash and credit payment, entertainment and social experience, immediate gratification, risk reduction
Pros of Multichannel retailing
deeper and broader selection, personalization, expand market presence
The Communication Process
Sender (Firm), Transmitter encodes message, Communications Channel (Media), Receiver (Consumer) Decodes Message
AIDA Model
Awareness, Interest, Desire, Action
Betty is assessing the effect of her firm’s marketing communications. She should remember that the ultimate goal is to drive the receiver to action.
(T/F)
True
Personal selling can only be successful through the use of print, newspapers, and radio.
(T/F)
False
The basic goal of integrated marketing communications is to:
A. communicate the value proposition to the target market.
B. create desire.
C. manipulate consumers.
D. outspend competitors.
E. tell the world about your company.
A) communicate the value proposition to the target market
If you ever watched a television commercial and at the end of the message wondered what they were promoting, you may have had trouble _____________ the IMC message.
A. decoding
B. pre-testing
C. precoding
D. encoding
E. tracking
A) decoding
In the movie Field of Dreams, one of the memorable phrases is, “If you build it, he will come.” The AIDA model would suggest that after marketers “build” a product or service and create awareness among consumers, they need to
A. determine the level of desire needed to sustain action.
B. promote sufficiently to gain global attention.
C. create interest among consumers, persuading them to investigate further.
D. offer discounts to increase purchase intentions.
E. take steps to encourage immediate purchase.
C) Create interest among consumers, persuading them to investigate further
Ryan is debating how to allocate the IMC budget for his new ski equipment store. He knows having knowledgeable salespeople in his store can simplify buyers’ purchase decisions. He should also consider that, compared to other IMC alternatives, personal selling is:
A. easy.
B. expensive.
C. ineffective.
D. overrated.
E. simple.
B) Expensive
Naomi is IMC manager for a chain of regional income tax service providers. Franchisees pay a percentage of their revenue to an IMC account allocated to her. As she establishes the short-term goals for her firm’s IMC efforts, her goals are likely to include:
A. expanding customer loyalty by closing the feedback loop.
B. increasing market share, sales, and customer loyalty.
C. increasing inquiries, awareness, and trial of her firm’s services.
D. shifting customers to rule-of-thumb budgeting.
E. increasing the lagged effect.
C) Increasing inquiries, awareness, and trial of her firm’s services
When Yolanda asked her firm’s advertising agency to estimate how often consumers saw her firm’s IMC message and what percentage of the target audience was exposed to the message, she was told the reach was 40, the frequency was 4, and the competitive parity was 10. The gross rating points for her firm’s campaign were
A. 160.
B. 1600.
C. 400.
D. 40.
E. The answer cannot be determined from this information.
A) 160
Effective multichannel operations require an integrated CRM (customer relationship management) system with a centralized customer data warehouse (T/F)
True
Dollar General and Family Dollar are examples of full-price discount retailers (T/F)
False
Natalie represents a manufacturer who makes unique, high-end hats. When making a recommendation about potential retail partners, what should be Natalie’s first consideration?
A. What is the appropriate advertising strategy?
B. When will customers want this product?
C. What prices will customers be willing to pay?
D. What assortment of products will customers want?
E. How likely is it for certain retailers to carry this product?
E) How likely is it for certain retailers to carry this product?
The key factor distinguishing retailers from other members of the supply chain is that:
A. they sell to consumers, businesses, and government.
B. they sell to everyone.
C. they use advertising to generate demand.
D. they rarely engage in personal selling.
E. they sell to customers for their personal use.
E) They sell to customers for their personal use
Knowing what customers expect is essential. Retailers need to know which manufacturers their customers prefer, while manufacturers need to know:
A. if customers are using credit cards or cash to make purchases.
B. how many employees the retailers have.
C. where their target customers expect to find their products.
D. whether the products will fill a customer’s self-actualization needs.
E. whether customers will find the store atmospherics appropriate to the neighborhood or location.
C) Where their target customers expect to find their products
Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this is consistent with the company’s overall strategy, it will choose __________ distribution.
A. wide-coverage
B. exhaustive
C. intensive
D. exclusive
E. selective
C) Intensive
If a food manufacturer had a full range of products, in a number of different container sizes, which kind of store would the company probably NOT choose as a retailing partner?
A. conventional supermarket
B. supercenter
C. warehouse club
D. convenience stores
E. The manufacturer could choose any of these as a retailing partner.
D) Convenience stores
If you walk into a __________, you will likely find a broad variety of merchandise, deep assortment, and customer service, with everything divided into what appears to be a collection of specialty shops.
A. department store
B. off-price retailer
C. discount store
D. specialty store
E. category specialis
A) department store
Marketing channel relationships evolve when the parties have complementary goals (T/F)
True
Conflicts within a supply chain tend to be more pronounced when the members are part of a corporate vertical marketing system. (T/F)
False
Stores like Home Depot and Costco act as wholesalers when they:
A. take delivery in whole-lot quantities.
B. select limited product lines and only market them to consumers who purchase the whole line.
C. sell products for distributors.
D. sell to contractors or restaurant owners.
E. compete with each other.
D) sell to contractors or restaurant owners
By reducing the number of transactions needed to move a product from the manufacturer to the consumer, wholesalers and retailers make a supply chain:
A. longer.
B. floor-ready.
C. vertically integrated.
D. selectively collaborative.
E. more efficient.
E) More efficient
Which of the following is NOT an advantage of using a distribution center?
A. More accurate sales forecasts are possible.
B. Retailers need to keep less merchandise in the store as inventory if the stores get frequent deliveries.
C. It is easier to avoid running out of stock or having too much stock.
D. Use of a distribution center saves money since the storage space at a distribution center is generally less expensive than that of a store.
E. Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center
E) Customers know they are dealing with a more sophisticated and financially well-off operation if the firm uses a distribution center
At the BMW plant in Spartanburg, South Carolina, suppliers deliver parts every four hours when the plant is in operation and are responsible for removing any packaging or pallets used to deliver their products. BMW uses a ______________ inventory control system.
A. cross-docking
B. lead time
C. JIT
D. CPFR
E. UPC
C) JIT (Just In Time)
Although conflict is likely to occur in any supply chain, it is generally more pronounced when
A. the supply chain members are geographically too close to each other.
B. manufacturers pressure retailers.
C. retailers pressure manufacturers.
D. the supply chain members are independent entities.
E. the economy is booming.
D) the supply chain members are independent entities
In an administered vertical marketing system,
A. no individual participant has control over the others, since a third party administrator oversees the entire supply chain.
B. transaction selling is the norm, with the invisible hand guiding the overall functioning.
C. there is no common ownership, and the dominant member has significant power to impose its ideas and objectives.
D. independent firms join together formally to decide as a group how the marketing channel will operate.
E. participants—such as warehouses, transportation companies, and retail outlets—are typically owned by a parent company to ensure harmonious relations throughout the supply chain.
C) There is no common ownership, and the dominant member has significant power to impose its ideas and objectives
The key to successful pricing is to match the product with the consumer’s perception of value (T/F)
True
In U.S. markets, there are many substitute products for Fruit Loops cereal, suggesting the price elasticity of demand for Fruit Loops is high. (T/F)
True
When Sony released its PlayStation 3 game machines, it charged a high price, attracting the most avid game players. This was a market penetration pricing strategy. (T/F)
False
Slotting allowances are used to get retailers to feature a manufacturer’s product in their advertising and promotional efforts. (T/F)
False
Gerald has a number of customers for his lawn care service who never question his bill but expect their lawns to be perfect. These customers do not want low prices, they want
A. a sales orientation
B. fixed costs.
C. cross-price discount
D. a target return.
E. high value.
E) High Value
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as
A. an indicator of quality.
B. a reflection of status quo pricing.
C. an indicator of the variety.
D. a measure of scarcity.
E. a measure of the income effect.
A) An indicator of quality
Which of the following is NOT one of the Five Cs of pricing?
A. Customers.
B. Channel members.
C. Cost.
D. Collaboration.
E. Company objectives.
D) Collaboration
Health clubs often use a low, introductory offer price to get people to join their club. These low prices represent a ______________ pricing strategy.
A. maximizing profits
B. target profit
C. target return
D. status quo
E. sales orientation
E) Sales Orientation
There is an old saying, “If you have to ask the price of a yacht, you cannot afford it.” Products like yachts are most likely to be associated with
A. cross-shopping.
B. competitive parity pricing.
C. target return value.
D. prestige pricing.
E. break-even point pricing.
D) Prestige Pricing
Price elasticity of demand is the
A. percentage change in quantity demanded divided by the percentage change in price.
B. percentage change in price divided by percentage change in quantity demanded.
C. change in price divided by change in quantity demanded.
D. change in quantity demanded divided by the change in price.
E. change in quantity demanded multiplied by the change in price.
A) percentage change in quantity demanded divided by the percentage change in price.
Brad always buys and uses Nike brand golf balls. If he finds a Titleist or Callaway ball in the rough, he gives it away. Brand loyal golfers like Brad allow Nike to charge a higher price and not lose many sales. By building a strong brand, Nike has effectively
A. increased the income effect for its products.
B. increased the cross-price elasticity for its products.
C. focused on the competitive parity point for its products.
D. shifted the golf ball market from a monopoly to pure competition.
E. reduced the price elasticity of demand for its products.
E) reduced the price elasticity of demand for its products
shopping has
A. reduced demand.
B. made consumers more price sensitive.
C. reduced the income effect.
D. reduced price elasticity of demand.
E. increased the income effect.
B) Made consumers more price sensitive
Yvonne estimates the average cost of her floral arrangements is $14 regardless of whether she is doing 5 or 20 arrangements that day. She adds a standard markup to the $14 estimate to determine her price. Yvonne is using a(n) __________ pricing method.
A. improvement value
B. value-based
C. everyday low pricing
D. reference-based
E. cost-based
E) Cost-based
In determining the price for his company’s new pocket digital camera, Matt determines what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy.
A. improvement value
B. odd-even prices
C. everyday low pricing
D. reference prices
E. cost of ownership
D) Reference Prices
Price skimming focuses on selling products to __________ and __________ in the consumer adoption process model.
A. innovators and early adopters
B. early adopters and early majority
C. early majority and late majority
D. late majority and laggards
E. laggards and innovators
A) Innovators and early adopters
Which of the following is NOT a common business-to-business pricing tactic?
A. seasonal discounts
B. slotting allowances
C. quantity discounts
D. loss leader pricing
E. advertising allowances
D) Loss Leader Pricing
When Toyota introduced its Scion line of cars, the lowest priced model was listed for $15,000 while the highest priced model was listed for $21,000, with two or three other list prices in between. Toyota used a __________ pricing approach.
A. market penetration
B. zone
C. price lining
D. loss leader
E. noncumulative quantity discount
C) Price Lining
Bill desperately needed tires for his car, and he found an ad with an incredibly low price. When he got there, he found out that those had been sold out, and he was pressured into buying tires that were more expensive than he wanted. Bill found out later that Marcelo had had the same experience at the store a few weeks earlier. It’s quite possible that both Bill and Marcelo had become the victim of a deceptive pricing tactic known as
A. loss leader pricing.
B. desperation selling.
C. bait and switch.
D. off-season deceptions.
E. inventory reduction pricing.
Bait and Switch
If the Amador County Pest Control Association got together and all members agreed to charge 3 percent of the value of a home for a termite inspection letter, the association members would be engaging in
A. loss leader pricing.
B. bait and switch pricing.
C. horizontal price fixing.
D. monopolistic competition.
E. predatory pricing.
C) Horizontal Price Fixing
A video gaming system is being sold. The package includes one game console, two gaming accessories, and one video game for $200, which is $60 less than what it would cost to purchase the items separately. This type of pricing is known as
A. price skimming.
B. loss leader pricing.
C. price bundling.
D. odd pricing.
E. quantity discount.
C) Price Bundling