Marketing Exam

Front 1

What is the Definition of Marking?

Back 1

The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Front 2

Accurately complete the model of the marketing process.

Back 2

Refer to Marketing Model Process

Front 3

Why has the marketing function continued to grow in importance?

Back 3

More consumers, more competition, consumers have more choices, consumers are better informed, consumers exert more and more power and control.

Front 4

What are the characteristics of a company who practices the “marketing concept”?

Back 4

Customer-centered corporate culture
Near- focus on customers needs and wants
Outside in vs. inside out

Front 5

Why do companies place such importance in knowing their customers’ needs/wants?

Back 5

To learn and understand their customers needs, wants and demands.

Front 6

Why do companies build customer relations? What are the primary building blocks?

Back 6

To create superior customer value and satisfaction/Customer Value and Customer Satisfaction.

Front 7

What is customer delight?

Back 7

Highly satisfied customers.

Front 8

What benefits do companies derive when their customers are delighted?

Back 8

Continue to buy, costumers tell others, customers cannot be easily persuaded and low costs.

Front 9

What is customer equity and how do companies increase customer equity?

Back 9

The total combined customer lifetime values of all of the company’s customers. How? Create addicted customers by delivering what customers value and engaging them in customer experiences that are emotionally and psychologically gratifying and delight their customers.

Front 10

What is strategic planning?

Back 10

The formal consideration of an organizations future course.

Front 11

What is a mission statement?

Back 11

A Statement of the organization’s purpose-what they want to accomplish.

Front 12

What is SWOT and how is SWOT applied?

Back 12

Evaluation of the company’s; Strengths (S), Weakness (W), Opportunities (O), and Threats (T). To find attractive and opportunities and identify environmental threats.

Front 13

What are four key facts about the marketing environment?

Back 13

• It surrounds and impacts the ability of a firm to create value and delight, and build customer relationships.
• It is complex and changing continually
• It must be understood to capitalize on new opportunities, ward off threats and effectively manage the marketing process and all of its component parts
• Understanding necessitates market intelligence and ongoing marketing research

Front 14

What is meant by marketplace and customer insight?

Back 14

Profitable and sustainable competitive advantage/deep understanding. Create superior value, customer delight and lasting, profitable, customer relationships.

Front 15

How are insights developed and used by marketing leaders?

Back 15

Competitive advantage

Front 16

What is MIS?

Back 16

Marketing Information System (MIS)- People and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers us the information to generate and validate actionable customer and market insights.

Front 17

What is CRM and what benefits are derived by companies using CRM?

Back 17

Customer Relationship Management (CRM)
i. Ability to provide higher levels of customer service and develop deeper customer relationships.
ii. Pinpoint and targets high-value customers more effectively
iii. Enhances the firms ability to cross-sell products and develop offers tailored to customers.

Front 18

In developing a customer-driven marketing strategy two questions must be answered. What are they?

Back 18

Who to serve? And what is the Value Proposition?

Front 19

What is Market segmentation? Why is it important?

Back 19

Dividing a market into distinct groups of buyers. It is important because it precisely reach a consumer with specific needs and wants.

Front 20

What is target marketing? Why is it important? Why does market segmentation come before target marketing?

Back 20

The process of evaluating each market segment’s attractiveness and selecting one or more market segments to enter. Evaluation includes a forecast of sales and profits. Companies typically select one or more market segments to target that have the potential to produce the greatest sales in profit for the companies (i.e. value)

Front 21

What differentiation? Why is it important? What are the two basic ways to differentiate a product?

Back 21

A market offering that has unique attributes that valued by customers and that customers perceive to be better than or different form the market offering of completion. Lowest price relative to competition creates superior customer value. Low price and superior customer value.

Front 22

What is positioning? Why is it important? Why does differentiation come before positioning?

Back 22

The way the product is defined by consumers on important attributes- the place the product occupies in consumers’ minds relative to competing product. It attracts customers by creating a positive and unique identity for your company and its offerings. You have to be superior before you can hold a place in the mind of your consumers.

Front 23

How is competitive advantage gained over competition?

Back 23

Offering greater customer value, either through low prices or providing more benefits that justify higher prices.

Front 24

What is a brand? Why is branding important?

Back 24

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 form those of competitors.

Front 25

What is brand equity and why is it so important?

Back 25

Brand equity- Creates a high level of customer awareness and loyalty—build strong and profitable relationships

Front 26

What is the role of “brand experience” in differentiating a product from competition?

Back 26

To capture the brand promise all while displaying superior value to brand competitors.

Front 27

Some companies still follow the sequential process for developing new products. More and more companies have adopted a holistic for managing the development process; they feel that new-product development requires a customer centered, team-based and systematic approach. What is meant by customer centered, team based, and systematic approach?

Back 27

• Customer centered- Focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.
• Team-based- Various company departments work closely together
• Systematic- Innovation management systems collect, review, evaluate, and manage new product ideas.

Front 28

Become conversational with the model for assessing and responding to competitor price changes.

Back 28

Refer to study guide for model

Front 29

What is a value delivery network?

Back 29

The network made up of the company, suppliers, distributors, and ultimately customers who “partner” with each other to improve the performance of the entire system in delivering customer value.

Front 30

What is supply and demand chain?

Back 30

• Supply Chain: Interconnected functions and business that span the movement and storage of raw materials, WIP inventory, FGs from point of origin to point of consumption. Purchasing manufacturing and distribution are typically identified as the major component parts.
• Demand Chain: Interconnected functions and business that drives and sustains demand. Marketing, sales and service are typically identified as the major component parts.

Front 31

Explain the primary reasons why firms are placing much greater emphasis on marketing (distribution) logistics?

Back 31

Marketing logistics involves getting the right product to the right customer in the right place at the right time.

Front 32

What are the major challengers retailers face today?

Back 32

• Drop in consumer spending
• More price conscious consumer

Front 33

What is experiential retailing and why is its importance growing?

Back 33

Helps sales goods/ Delights the senses as well as the wallets of carefully targeted customers. (Ex.Cabela’s)

Front 34

What is non-store retailing and what are the implications for the future?

Back 34

Internet, direct-mail, catalogs, telephones and the implications is non-store retailing is the fastest growing retail.

Front 35

Describe the five components of the promotion mix ( or marketing communications mix)

Back 35

(1) Advertising- Superior competition, impersonal, one way
(2) Sales promotion-Short term incentive, Motivate to buy now
(3) Public relations- building good relations with the companies various publics
(4) Personal selling- building strong customer relationships
(5) Direct Marketing- Communication with individual customers and cultivate relationships with them

Front 36

What are the 4P’s and the corresponding C’s?

Back 36

Product—Customer Solutions
Price—Customer Cost
Place—Convenience
Promotion—Communication

Front 37

Several factors are changing the face of marketing communication. What are they?

Back 37

• Consumers are better informed and more communications empowered...outgrowth of the digital, wireless, age.
• Marketing strategies are changing
• Changes in communications technology have created new media for interacting with targeted consumers.

Front 38

What is meant by “integrated marketing communications” and why is integration so important in today’s marketplace?

Back 38

Delivers a clear, consistent, compelling message about the organization and its products. A way to develop strong customer relationships.

Front 39

What factors explain why the media planning function has taken on greater importance?

Back 39

Soaring media costs, more-focused target marketing strategies, and the growing array of new media have promoted the importance of the media-planning function.

Front 40

What is meant by communication and sale effect and how do the two differ?

Back 40

Communication: cognition and perception, anent to buy
Sales effect: cannot be measured –measured of sales

Front 41

Personal selling is the most effective tool for building preferences, convictions, and actions. Briefly explain why?

Back 41

To create clear, consistent and compelling company and brand messages.

Front 42

For complex sales situations personal selling is much more effective than advertising, public relations, sales promotion and direct marketing. Briefly explain?

Back 42

Interact with, collaborate with and probe customers to learn more about their needs wants, problems, etc., and adjust or configure their presentation, solutions, etc., to meet and, hopefully, exceed the customers’ needs and wants.

Front 43

Key attributes/talents of successful salespeople include (a) intrinsic motivation, (b) disciplined work style, (c) ability to close a sales and (d) ability to build relationships with customers. Briefly explain what is meant by each attribute/talent.

Back 43

Intrinsic motivation: Self-motivated. Always firing on 8 cylinders. Unwavering commitment to excellence and exemplary performance.
Disciplined work style: Plan their work and work their plan.
Ability to close sale: Solutions to problems are articulated well and embraced by the customer. (Body language)
Ability to build relationship with customer: Good listeners, insatiable appetite for learning about the customers business and wants and needs, ability to take their head off an put the customers head on so they see and understand from the customers perspective, proactive in meeting the customers needs with creative solutions.

Front 44

What is the digital age and how is it impacting the marketing function?

Back 44

Direct marking allowing new way to connect more effectively to target markets.

Front 45

What is direct marketing?

Back 45

Consists of direct connection with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Online Marketing.

Front 46

How important is it for company to have good customer databases when doing direct marketing?

Back 46

Effective direct marketing begins with a good customer database.

Front 47

What direct marketing form is the largest medium, the fastest growing medium and what medium do many views as the next “Big” medium?

Back 47

Direct-mail, online marketing, cellphones

Front 48

What is viral marketing and how do companies benefit?

Back 48

Involves creating a Web site, video, email, cellphone message/ Pass by word of mouth. The benefit is low cost or free.

Front 49

What four things does a company do to set up an online marketing presence? What is the most important one?

Back 49

Create a Web site, Placing ads and promotions online, creating or participating in online social networks, using email