Marketing Fundamentals: Product, Pricing, and Adoption, Exams of Marketing

Download Marketing Fundamentals: Product, Pricing, and Adoption and more Exams Marketing in PDF only on Docsity! Marketing 201 BYU Exam 2 Questions with Solutions. Spalding, an American sporting goods store, manufactures sports equipment and balls for a variety of sports such as baseball, football, basketball, golf, and so forth. All of the products of Spalding can be referred to as the - Correct answer Product Mix A competitive angle does which of the following? It sparks a personal connection with the consumer. It solves a problem for the consumer. It satisfies a consumer's want or need with the consumer. It is unique. It has an element of differentness with the consumer. A, b, and c A, b, and d A, b, c, and d - Correct answer a, b, and d When sharpening the angle, which dimension is particularly important for B2B sales? - Correct answer quantifiable support Which is the correct path that leads to brand equity? Brand image, brand loyalty, brand awareness, brand equity Brand awareness, brand loyalty, brand image, brand equity Brand image, brand awareness, brand loyalty, brand equity Brand awareness, brand image, brand loyalty, brand equity - Correct answer brand awareness, brand image, brand loyalty, brand equity You realize you are out of milk after you pour your cereal. You run to the store to get a couple of gallons. Milk is an example of A shopping product. A convenience product. A specialty product. An unsought product. A business/Industrial product. - Correct answer a convenience product Rob has been a fan of Apple products since he purchased a MacBook and an iPod. When Apple came out with the iPad, he felt better about purchasing an Apple brand tablet versus an Amazon brand Kindle Fire. In essence, Rob's loyalty to the brand was transferred to new products because of which of the following? Brand loyalty Brand awareness Brand equity Brand consistency Brand image - Correct answer brand equity McDonald's Arch Deluxe was a burger with peppercorn bacon on a potato flour sesame seed bun that was supposed to appeal to people who wanted a more "grown-up" meal. However, it soon failed and was quickly pulled off the market. Which of these is not important when it comes to sharpening the competitive angle? An element of differentness A personal connection A widespread advertising campaign A solution to a problem - Correct answer a widespread advertising campaign Page 1 of 26 Blue Bunny's production of Pistachio Almond ice cream is very dependent on Blue Bunny's industrial ice cream machinery in its plant. The machinery would be considered Product lines. Materials and parts. Product mixes. Supplies and services. Capital items. - Correct answer capital items Big problems, big solutions, lead to big Distribution. Companies. Segments. Headaches to marketers. - Correct answer companies A goal of every brand is to ________ competition, ________ customers, and ________ employees. Differentiate itself from, resonate with, motivate Separate itself from, disconnect from, stimulate Characterize, resonate with, discourage Characterize, disconnect from, stimulate Separate itself from, resonate with, discourage - Correct answer differentiate itself from, resonate with, motivate Which step on the new-product development process represents the first test with consumers? Idea generation Idea screening Test marketing Marketing strategy Concept testing Commercialization Business analysis Product development - Correct answer concept testing Del Sol souvenir shops demonstrate and sell products that have printed images which change color when exposed to the UV rays of the sun. These products are different from other souvenirs and gifts because they are distinctive, memorable, and fun. Which of the five questions should be addressed in order to sharpen the competitive angle of Del Sol? Unique product claim Reason to believe Need to believe Dominate situations Quantifiable support - Correct answer need to believe All great products are... A bundle of attributes. Tangible. Solutions to problems. Intangible. Used frequently. - Correct answer solutions to problems. Campbell's is a food company that is well known for the soup that it produces. However, Campbell's also produces juice products. An example of a product ________ would be all of the soups. Mix Line Page 2 of 26 Initiation Maturity Decline Growth Introduction - Correct answer introduction "Need to believe" is about ________ a product that addresses a real problem, while "reason to believe" is about ________ that a product solves the problem. Searching for; finding Finding; showing Demonstrating that; proving Showing; finding None of the above - Correct answer finding; showing Nike sells athletic clothing, shoes of all types, and sport gear. All of these products combined are what? A product mix A company mix A product item A company line A product line - Correct answer a product mix The Canon Powers hot 2300 is a digital camera. It comes with a 2.7" color LCD, a 28 mm wide-angle lens, and a dedicated movie button. These would be considered part of the Competitive product. Actual product. Augmented product. Core product. Ancillary product. - Correct answer Actual product What three things must services prove to consumers? There is a problem needing to be solved. They make the intangible tangible. They are the person to solve the problem. The solution delivers good value for the money. A, b, and c A, c, and d A, b, c, and d - Correct answer arc, and d A ________ is a service provider who is productive but has little passion for providing a high level of service. Servant’s heart Fox Tiger Kitten - Correct answer fox A theater company has a perishable service where sometimes a show is left with empty seats. Which of the following is a good solution to this problem? Tangible cues Personal training Balancing of supply and demand Care and quality - Correct answer balancing of supply and demand Page 5 of 26 For franchising companies such as McDonald's, the service offered can vary depending on who provides it, what time it is provided, and where it is provided. Which of the following is an effective marketing solution to this variability difference? Extra personal attention with care and quality Training and standardization of service Giving easily seen clues that are tangible to the customer that this is the service Predicting the changes in demand and adjusting the supply of the service - Correct answer training and standardization of service To improve service quality, KFC trained its service providers to return phone calls and emails quickly and promptly. KFC is focusing on improving which dimension of service quality? Reliability Responsiveness Assurance Empathy - Correct answer responsiveness Service providers can overcome ________ (characteristic of services) by offering evidence of quality as part of the marketing pitch; for example, professional-quality sales materials, excellence awards, and beautiful yet highly functional websites all providing evidence of quality. Intangibility Variability Inseparability Perishability - Correct answer intangibility In service marketing, ________ is an additional P of the 4 Ps of marketing. Product People Packaging Place - Correct answer people Which type of service providers spend too much time interacting with customers and therefore are rated low on day-to-day productivity? Kitten Fox Servant’s heart Tiger - Correct answer servant's heart Symantec is focusing on improving service quality by improving the training and competency of their service providers in order to improve credibility. Symantec is focusing on enhancing which dimension of service quality? Responsiveness Empathy Reliability Assurance - Correct answer assurance At Olive Garden, customers have come to expect a certain level of quality. As a result, the restaurant chain trains all of their waiters with the same skills to ensure that they can deliver consistent service. This standard training program combats which of the challenges that services face? Inseparability Complexity Perishability Variability Intangibility - Correct answer variability Page 6 of 26 Toyota is introducing a new truck into the market. The truck is set at a high price and the company hopes to earn a large profit. What are the downfalls to this pricing technique? The marketing budget will be low. There are no downfalls; pricing is easy. The demand will be limited. Pricing incentives will need to be applied. - Correct answer the demand will be limited The story of Wilson Audio, a high end speaker company based in Provo, Utah, utilizes which pricing strategy when the company sells stereo speakers for as much as $125,000 each? Penetration pricing Promotional pricing Price skimming Golden goose pricing - Correct answer golden goose pricing Make-it-real is planning on releasing a new 3D television that doesn't require the use of 3D glasses and will introduce the 55" TV at $9,000. Their financial and marketing teams decide to lower the price $1,500 each year until their next TV update. This is an example of which of the following? Price skimming Price penetration Price gouging Promotional pricing Random price lowering - Correct answer price skimming Which element of the marketing mix has the greatest impact on price? Product Promotion Place - Correct answer place Which of the following represents price skimming? Low profit margins Low price for new product Small marketing budget High price for new product - Correct answer high price for new product General Mills gets their pricing for cereal from looking at other cereal brands that offer similar value. This is an example of which pricing technique? Value pricing Cost-plus pricing Competitive pricing Golden goose pricing - Correct answer competitive pricing A challenge with cost-plus pricing is: Customers don't know or care about manufacturing costs. Difficulty to determine actual cost. Customers dislike buying cost-plus items. Customers assume that inexpensive means poor quality. Cost-plus pricing has a high threat of entry. - Correct answer cost plus pricing Profit equals Total revenue—total cost (Price X quantity)— (fixed costs + variable cost X quantity) Price X quantity—variable costs Page 7 of 26 Personal selling Direct marketing Sales promotion - Correct answer direct marketing Marketing managers use a (n) ________ to communicate strategy to advertising agencies. Pitch Creative brief Executive summary RFP Annual report - Correct answer creative brief Why do companies promote? To make more people want the product To make demand more elastic To make customers more price sensitive To increase supply - Correct answer to make more people want the product A creative brief consists of four segments. The Snickers brand is the best-selling candy bar of all time and is estimated to have annual global sales over $2 billion. Since the brand was introduced, Snickers has been known "for its ability to replenish needed energy, indulging cravings for something sweet and nourishing, and its ability to satisfy." This is example of which part of the creative brief? Copy strategy Key competitors Brand legacy Executional considerations Key customer groups - Correct answer brand legacy Intel's processing chip was generally viewed as a commodity until Intel launched the "Intel Inside" campaign in 1991. Stickers placed on laptops with the words "Intel Inside" created huge demand among consumers. This is an example of which of the following? Push strategy Making demand more elastic Economic strategy Shifting the demand curve to the left Pull strategy - Correct answer pull strategy Advertisers need to make the ________ obvious because normal people ignore ads unless they are in the market to buy or looking to justify their purchase decision. Product Company (advertiser) Benefits All of the above A and c - Correct answer all of the above The key to effective advertising is to create _____ and _____. Interest; demand Value; demand Product awareness; interest Value; benefits An emotional connection; experience - Correct answer product awareness & interest What is the most important promotion tool for business goods (B2B)? Direct marketing Page 10 of 26 Sales promotion Public relations Personal selling Advertising - Correct answer personal selling A commercial for a certain brand of toothpaste was aired while Amanda was watching her favorite TV show. She had never heard of this particular brand, but the commercial helped her build awareness, and she was somewhat favorably disposed towards the brand. Which objectives did this commercial accomplish? Cognitive and behavioral It accomplished all three—cognitive, affect, and behavioral Cognitive and affect Behavioral and affect - Correct answer cognitive and affect The most important method of promotion for consumer goods is Personal selling. Sales promotion. Advertising. Public relations. Trade promotion. - Correct answer advertising Phyllis recently took a job as a salesperson, selling paper to local businesses. Phyllis is very smart, driven, and personable, but her sales are lagging because she hasn't yet mastered the art of closing a sale. Phyllis is currently lacking the desired Motivation. Personal characteristics. Aptitude. Skill level. Role perceptions. - Correct answer skill level The local radio station broadcasts a story about a dry cleaner chain that requested coat donations. The dry cleaners would clean the coats and deliver them to people in need. The various addresses of the dry cleaner chain were also broadcast so that donations could be dropped off. Since this featured business did not pay for this exposure, it is benefiting from which of the following? Sales promotion Advertising Direct marketing Personal selling Publicity - Correct answer publicity Nestle wants to use social media to advertise its new peppermint drumstick ice cream. The media goal is to generate awareness and build a community around its new drumsticks with creamy center filling. Which social media service would be best? Twitter Google Ad Words Facebook YouTube - Correct answer Facebook Social media marketing may be more effective than traditional marketing because social media does which of the following? It offers flexibility for content, has credible word-of-mouth communications, and can build awareness at a lower cost than traditional marketing. Page 11 of 26 It offers flexibility for content, has credible word-of-mouth communications, and builds awareness at a significantly higher cost than traditional marketing. It allows marketers to measure cost-per-action. None of the above. - Correct answer it offers flexibility for content, has credible word-of-mouth communications, and can build awareness at a lower cost than traditional marketing. Which cost figure best represents a firm's success using Facebook? CPM CPC CPA Number of Facebook fans Daily views - Correct answer CPA Bob runs his own business called the Taco Truck. He is changing locations around NYC every day during the lunch hours. He wants to start using social media to send short messages to all of his customers to let them know where his truck will be parked every day. Which type of social media should he begin using? Facebook Myspace LinkedIn Twitter YouTube - Correct answer Twitter Jenny Craig's weight loss program wants to use social media to advertise a new food line that increases weight loss. The goal is to make direct sales and get people to immediately purchase. Which social media service would be best for Jenny Craig's goal? Twitter Facebook Google Ad Words YouTube - Correct answer Google Ad words As a budding social media intern, you know that ________ is the fuel driving Internet traffic. Fresh content in a blog post from the company's blog Tweets from your company's Twitter account A new viral video on YouTube Facebook posts from your company's Facebook page - Correct answer fresh content in a blog post from the company's blog Social media may be more effective than traditional marketing communication channels because it offers more flexibility for content and duration. True False - Correct answer True The ultimate marketing goals of using social media are Building brands and marketing communications. Creating awareness and marketing communications. Selling products and taking orders. Selling products and marketing communications. - Correct answer building brands and marketing communications An exclusive clothing designer created a high-end apparel collection named "Marilyn Monroe," which re-imagines the late actress's style. The collection was available only at a few Nordstrom, Saks Fifth Page 12 of 26 Specialty Products - Correct answer are purchased after extensive search because they are expensive, exclusive, and often unique, for example designer clothing, luxury automobiles, fine dining, and renowned artwork. With specialty products, consumers are reluctant to accept substitute products Unsought Products - Correct answer Life insurance, blood donations to the local hospital, preplanned funeral services, and cemetery plots are examples Product Line - Correct answer a product item is a specific version of a product, like a Honda Civic. A product line includes closely related product items, competing in the same general product category A product Mix - Correct answer a product mix includes all products offered by the company Core Product - Correct answer intangible part of the product. Personal Benefit to buyer. Could be different for everyone. Actual Product - Correct answer tangible part of the product. That is, the bundle of tangible characteristics and features that define a product and sets it apart from competitors Augmented Product - Correct answer service that complements the actual product and core product. That is, complementary products like warranties, service contracts, and product assistance aka complementary services Introduction Stage (product life cycle) - Correct answer the product is introduced to the market. The objective is to build product awareness and product experience. Advertising, social media campaigns, product sampling, and product demonstration tours are tools helpful at the introduction stage. Build awareness, promote to inform and encourage trial Growth Stage (product life cycle) - Correct answer in this stage, marketing managers build market share by emphasizing product distinctions. Feature-heavy products may be simplified to create economical low-cost alternatives. Feature-light products may be enhanced to create premium high- cost alternatives. Maximize market share, add features and improve quality, add channels and markets Maturity Stage (product life cycle) - Correct answer in this stage, marketing managers seek to maximize profit by harvesting product loyalty. Prices may be increased on low-involvement, high- loyalty products. Marketing budgets will decline as less and less is spent on marketing promotion. Maximize profit, modify target market and marketing mix. Decline Stage (product life cycle) - Correct answer marketing managers must make a decision regarding whether to rejuvenate a product or let it die. Reduce expenditures, milk the brands, maintain, harvest or drop Innovators (Product Adopters) - Correct answer Estimated at 2.5% of the population, these people are the first to try new ideas. They usually have more money and education than the general population, as well as a higher-than-average tolerance for risk Early Adopters (Product Adopters) - Correct answer Estimated at 13.5% of the population, early adopters are the first to follow innovators' lead. They are a well-educated group of people, waiting for a green light from innovators before pulling the purchase trigger Early Majority (Product Adopters) - Correct answer Estimated at 34% of the population, early majority people consider buying products that prove to be successful in practice. The product must Page 15 of 26 complement their way of life rather than redefine their way of life. First-hand sampling is important to the early majority as is observing others use the product Late Majority (Product Adopters) - Correct answer Estimated at 34% of the population, the late majority people are more risk averse than average consumers. They are skeptical of innovations and buy new products when they are the only reasonable alternative due to low price and/or easy availability Laggards (Product Adopters) - Correct answer Estimated at 16% of the population, laggards are skeptical of innovations. They resist change. Laggards buy new products only when all of their favorite, old alternatives are no longer available Idea generation (product development process) - Correct answer All great products are solutions to problems. So, marketers begin by considering the problems customers are trying to solve. Where is the pain in the market? The pain is found by observing customer frustration, either first-hand, or by others. So, marketers seek new product ideas, that is, solutions to problems, from a variety of sources including internal and external sources. Within the company, marketers turn to the research and development (R&D) organization, company databases, and employees, from sales people, to engineers, to manufacturing personnel. Idea Screening (product development process) - Correct answer although ideas can be eliminated during any stage of the process, the idea screening stage provides a formalized process for qualifying ideas. Concept Testing (product development process) - Correct answer Ideas that pass the screening stage receive additional attention so that the idea becomes a concept customers can understand. This is the most critical stage in the process because this is the first time the idea is tested with customers. What they like about the concept? What they do not like about the concept? How can it be made better? If this product was made available at an appropriate price, would they buy it? Marketing Strategy (product development process) - Correct answer the next step is to design an initial marketing strategy for the product. This consists of two parts: (1) target market and (2) marketing mix Business Analysis (product development process) - Correct answer in this stage, marketers attempt to make the business case for the concept. Profit projections, including sales forecast and costs estimates, provide useful information for evaluating the product's future potential. This information is compared to company objectives to determine whether the new product idea should move to the next stage. Legal issues, such as patents and copyrights, are considered for protecting the company's intellectual property Product Development (product development process) - Correct answer to this point in the process, the new-product idea remains a concept—a description, a drawing, a model, or a prototype. Once the idea passes the business analysis phase, product development begins in earnest. Significant resources are invested. Engineering, R&D, and other areas of the company come together to create a product ready for the market test Test Marketing (product development process) - Correct answer Prior to commercialization, the product is tested in realistic markets (test markets) to determine the extent to which potential customers will purchase the product. Selected test markets should be microcosms of the population of interest so results can be projected to the larger market. All elements of the marketing mix can be tested. Alternatives for test marketing business products include alpha testing (testing within the Page 16 of 26 company), beta testing (testing with a select group of customers), trade shows, distributors, and dealers. Commercialization (product development process) - Correct answer the decision to launch the product is the final stage in the process. Results from the test markets provide marketing managers the information for this decision. The success of the new product hinges on the severity of the problem it addresses and the quality of the solution it provides compared to the competition. Brand - Correct answer "name, term, design, symbol, or any other feature that identifies one seller's goods or service as distinct from those of other sellers". Allows them to distinguish their products from all others. For buyers, branding helps them identify products they wish to buy again and avoid those they do not. Like a personality. Goals of a brand - Correct answer 1. Resonate with customers 2. Differentiate from competitors 3. Motivate employees Brands should... - Correct answer Build Awareness and distinctiveness, encourage trust and repeat customers, make an emotional connection Brand equity - Correct answer brand equity is the additional market share and/or profits a product earns over comparable products because of the strength of its brand. Beyond targeting the right customers, effectively communicating the right benefits, and putting in place integrated marketing campaigns that are memorable, building a strong brand requires everyone in the company to support the brand and act in a way that reinforces the brand's personality and positive reputation. Southwest Airlines Brand Awareness - Correct answer Consumers know about the brand Brand Image - Correct answer consumers have a definite impression about the brand Brand loyalty - Correct answer Consumers only purchase their favored brands Brand Equity - Correct answer Brand loyalty is transferred to new products Functional Brand, brand type - Correct answer Superior performance or superior economy. Product, price/and or place. Physiological and safety needs, relatively low involvement. Image, brand type - Correct answer Desirable image. Promotion. Social and esteem needs, moderate to high involvement Experiential, brand type - Correct answer a unique, engaging experience; product and place (delivery and service); self-actualization needs, moderate to high involvement Product marketing - Correct answer Product marketing concerns itself with tangible consumable goods like ready-to-eat cereal, milk, frozen dinners, and canned vegetables, which are frequently purchased, and tangible durable goods like televisions, automobiles, and refrigerators, which are infrequently purchased Services Marketing - Correct answer intangible services like banking services, investment services, rental services, travel services, consulting services, accounting services, health care services, and educational services Page 17 of 26 Unit contribution - Correct answer is the unit price minus the unit variable cost. This unit is called contribution because it represents the per-unit contribution to fixed costs. Total Contribution - Correct answer is unit contribution multiplied by the total number of units sold. Total contribution represents the amount of money available to "contribute" to fixed costs and then profits. Total Cost - Correct answer fixed costs + variable costs Price Skimming - Correct answer with price skimming, marketers set a relatively high price to obtain high margins at the expense of sales quantity. Demand is low. The objective of price skimming is to capture consumer surplus from the market—those customers willing to pay the relatively high price. As demand for the first group of customers is satisfied, price is lowered to capture consumer surplus from the next group of customers, and so on until the last group of thriftier customers are reached with a price they are willing to pay. For example, many consumer electronics companies use price skimming. Sony may launch a new state-of-the-art TV with an initial high price, capitalizing on those customers willing to pay a premium for new technology. Then, the company progressively lowers the price, skimming each layer of the market. Price Penetration - Correct answer with price penetration, marketers set a relatively low entry price to capture market share quickly. Lower prices discourage the entry of competitors. Increased market share can lead to cost reduction per unit. The disadvantage of price penetration is that it does not capture consumer surplus. For example, to capture a portion of the US auto market, Hyundai used a price penetration strategy—setting prices well below competitors Honda and Toyota. Promotional Pricing - Correct answer Coca-Cola executives understand the magic of their product and use motivational pricing to leverage the on-hand-acceleration-effect to its full advantage. At what appear to be almost randomly selected dates, consumers can purchase Coca-Cola products on price promotion with offers such as two for one, temporary price reduction, and price-off coupons. What they found out was that Coca-Cola is one of those magical products that the more of it people have on hand, the faster they will consume it. That is, the more product people have in their homes, the more occasions they find to drink it Golden Goose Pricing - Correct answer Know own costs, and a lot about customer value. Does not understand competitors. Businesses using golden goose pricing understand how to create customer value, but underestimate the ability of and resourcefulness of competitors. Cost Plus Pricing - Correct answer know own costs but not much about competitors and customers. Accountants calculate the cost and then marketing managers add on the margin needed to make the return demanded by upper management or investors. Problem - People do not care about how much it costs to manufacture and distribute a product Value Pricing - Correct answer Know own costs, and a lot about customer value, and competitors. Value pricing simply means charging a price that is high enough to capture a lot of customer value, but not so high as to encourage business-crushing competition. Competitive Pricing - Correct answer Know own costs, and a lot about competitors. Coca-Cola uses competitive pricing. That is, they take their price from branded soda drinks that offer similar value. Competitive pricing is a better approach than cost-plus pricing because in addition to cost, it takes into account what competitors are charging and what people are paying in specific buying situations. Which element of the marketing mix has the most profound influence on price? - Correct answer place Page 20 of 26 Push Strategy - Correct answer pushes products through the channel of distribution. Producers direct their marketing activities toward channel members (wholesalers and retailers) to encourage them to order and stock the product. Personal selling and trade promotions play important roles in this process. Channel members then use marketing activities to push the products to final consumers. The objective is to push products from producer to channel member and then from channel member to final consumers. Pull Strategy - Correct answer producers direct their marketing activities toward the final consumer to encourage them to ask retailers (channel members) for the product. Demand from final consumers causes retailers to order the product from producers or manufacturers. Thus, the product is pulled through the channel of distribution. Pfizer uses both push and pull strategies. Pfizer advertises products to the final user to encourage them to ask their doctors for the product by name. Frito-Lay promotes Doritos brand tortilla chips to final consumers to increase demand at retail Advertising - Correct answer advertised products must be shown quickly in the ad, before the viewer loses interest. If the product is not shown quickly, the ad campaign must have a consistent look and feel so viewers recognize the advertiser without having to see the product. Effective advertising creates product awareness and interest. (1) What percentage of people can remember the ad and product being advertised? (2) What percentage of people remembering the product can also remember the brand? (3) What percentage of people remembering the product and the brand can also remember the key benefit? Cognitive (advertising) - Correct answer build awareness Affective (advertising) - Correct answer gain interest and liking Behavioral (advertising) - Correct answer stimulate action. Performance metrics such as new purchases, repeat purchases, or responses to requested actions provide effectiveness measures for stimulating action (behavioral) Creative Brief - Correct answer marketing strategy. A creative brief consists of (1) brand legacy, (2) copy strategy, (3) executional considerations, (4) profiles of key customer groups, and (5) profiles of key competitors. Brand Legacy (creative brief) - Correct answer The Snickers brand was introduced in the 1930s. It is the best-selling candy bar of all time and has annual global sales of over $2 billion. Snickers consists of peanut butter nougat topped with roasted peanuts and caramel, covered with milk chocolate. The brand is known for its ability to satisfy, replenish needed energy, and indulge cravings for something sweet and nourishing Copy Strategy (Creative brief) - Correct answer Target - Adults and kids looking for a delicious energy boost. Benefit - Snickers is delicious, satisfying, and nourishing. It is revitalizing. Reason to Believe - Snickers consists of peanut butter nougat topped with roasted peanuts and caramel, covered with milk chocolate. Tone - Snickers is upbeat. It revives and revitalizes Executional considerations (creative brief) - Correct answer Strategic goals - the Snickers brand has an upbeat, revitalizing nature that provides a delicious way for people to live life to the fullest. Tactical goals - increase the rate of use by highlighting many different usage occasions. Execution style - humorous advertising in step with Snickers' upbeat, revitalizing nature. Key customer groups (creative brief) - Correct answer Young adults aged 18-34 years living active lives and often too busy for regular meals wanting something delicious, filling, and energy-infusing. Page 21 of 26 Older adults aged 35 years and above looking for a delicious and satisfying energy boost. Parents purchasing candy for children looking for a nourishing and satisfying alternative to sugar-only candy. Key competitors (Creative brief) - Correct answer Milky Way, a fluffy and light alternative to other chocolate bars targeted at young women. Butterfinger, a crispy and crunchy alternative to other chocolate bars targeted at rebellious young adults. M&M's, colorful, button-shaped candy-coated chocolates broadly targeted at all candy eaters; particularly those valuing convenience and the "Melts in your mouth, not in your hand" tagline. CPM - Correct answer cost per thousand impressions. CPM refers to how many opportunities the general public has to view a particular ad GRP - Correct answer gross rating points (reach x frequency). Can evaluate ad placement. TRP - Correct answer Target Rating Points Opportunity to see - Correct answer Media planning metrics are based on opportunity to see, not actual views of ads. Marketers may have a great media plan, but if no one takes the time to view the ad, they still have nothing. Sales Promotions - Correct answer short-term incentives to encourage product trial by new customers and to increase repeat purchases by existing customers. Indeed, sales promotions encourage customers to buy now rather than later. They provide lower prices to price-sensitive customers who otherwise would not buy. They earn support, interest, and preferred shelf space from retailers. The first type is a value-added promotion, such as a contest, sweepstakes, self-liquidating premium, or samples of a new product bundled together with a well-known product. The second type is a price-off promotion, such as coupons, rebates, and buy-one-get-one-free specials. Value Added promotions - Correct answer best at building brand loyalty, defining brand personality, and introducing new, complementary products to brand champions. These promotions also have potential for dramatically increasing sales as they transform into annual rituals. Ex. contest, sweepstakes, self-liquidating premium, and samples of a new product bundled with an old product Price Promotions - Correct answer Price promotions can undermine brand equity and trade temporary increases in market share for permanent decreases in sales margin. Price promotions usually work best for products that are consumed faster when greater quantities are in the home. Coca-Cola vs. toilet paper. EX. coupons, rebates, buy-one-get-one free specials What do sales promotions do? - Correct answer ales promotions encourage potential customers to buy now rather than later. They increase repeat purchase. They encourage product trial by new customers. Sales promotions rationalize prices across regions when a product is selling better in one region than in another. They provide lower prices to price-sensitive customers who otherwise would not buy. They earn support, interest, and preferred shelf space from retailers. Cause Related Promotions - Correct answer these promotions allow customers to support a good cause along with purchasing a product they need. Research explains, more than two-thirds of US consumers report purchasing brands due to a connection to a cause they want to support. In markets where there is not much product differentiation, cause-related promotions can be very effective. Trade Promotions - Correct answer when marketing managers offer buying incentives to retailers rather than consumers, they are doing a trade promotion. In a trade promotion, retailers are offered reduced prices called trade allowances, as well as free product displays, free merchandise, or other incentives. (1) purchasing larger quantities, (2) offering eye-level or end-of-aisle shelf space, (3) Page 22 of 26 installation, training, technical support, repair, and warranty. So, customers can get products when they want them, where they want to purchase them, and with the terms and the support they want. Image Benefits (Marketing Channels) - Correct answer Marketers can build the brand image by selecting channel partners that reflect or enhance the brand. For example, Brionna, an Italian company that offers an exclusive brand of tailored clothing, has built an image among quality- conscious customers. Brionna selects only high-end retailers, like Harrods, Neiman Marcus, and Saks Fifth Avenue, to enhance the image of the brand. Non-price costs (marketing Channels) - Correct answer Lower costs increase customer value. Channel members create increased efficiency, and thus, lower costs of exchange by reducing the number of transactions between producers and consumers Direct Marketing Channel - Correct answer a direct distribution channel is used to sell products directly to consumers with no intermediaries. Ex. LL Bean catalogs/internet sales Indirect Marketing Channel - Correct answer is used to sell products through intermediaries, such as distributors, wholesalers, original equipment manufacturers (OEMs), and retailers. In many situations, it is not efficient for manufacturers to sell directly to consumers. Ex. potato farmers, DuPont Mixed Marketing channels - Correct answer more manufacturers are using a combination of direct and indirect sales. Any manufacturer that builds a finished product can consider selling through a combination of direct and indirect channels. The danger, of course, is the consumer's ability to purchase products directly from manufacturers at lower prices than they would pay at a retail store Intensive Distribution - Correct answer selling through as many retailers as possible. Marketers seek to make the product available in every outlet where customers might want to buy it. Convenience goods such as packaged candy or soda pop are generally good candidates for intensive distribution. Ex. coca cola Selective Distribution - Correct answer selling through a limited number of qualified retailers. Selective distribution requires companies to take an active role in vetting and deciding on appropriate retailers. Selective distribution, in general, supports higher prices than intensive distribution. Ex. Shopping and specialty goods like Stain master carpets, home appliances, and perfumes use selective distribution Exclusive distribution - Correct answer selling through only a few retailers. The retailer has the exclusive right to distribute the product in their geographic area. Exclusive distribution limits the total sales units of a product, but provides the setting, service, and exclusivity needed to support super- premium prices. Ex. Ferrari, Aston Martin, and Lamborghini, Tiffany & Company, and Bulgaria does not need massive unit sales in order to earn massive profits Product (6ps of retailing) - Correct answer which product categories and brands should be stocked? What should be the mix of regional, national, and private label brands? Place (6ps of retailing) - Correct answer Store location can make or break a retailer. Do customers stress convenience, in which case, the store size may be smaller because of higher operating costs? Or do they stress selection, in which case, the store can be larger because of lower operating costs? Price (6PS of retailing) - Correct answer Should the company adopt an everyday low pricing, high-low pricing, premium pricing, or some other pricing approach for our customers? Page 25 of 26 Promotion (6ps of retailing) - Correct answer How can the company best promote store patronage and loyalty? What is the best advertising message? Which consumer promotions work best? Will loyalty cards work for the business? How can social media be used? Presentation (6ps of retailing) - Correct answer Atmospherics consist of elements in the store's design that appeal to consumers' emotions and encourage buying. Presentation of the store, in-store signage, lighting, wall decorations, color, fixtures, layout, music, merchandise displays, smell, temperature, cleanliness (restrooms), and organization Personnel (6ps of retailing) - Correct answer the frontline employees set the tone for retailers. They are the face of the store. With similar products and brands being offered by many competing retailers, employees often become the differentiating factor Page 26 of 26