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

Download Marketing Fundamentals: Product Adoption, Pricing Strategies, and Branding 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 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 Page 1 of 24 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 Item Product - Correct answer line We should treat a brand like a Competitive point of difference. Personality. Friend. Competitive angle. - Correct answer personality Prunes have traditionally been sold to an older demographic to help with digestive regularity. A few years ago, several prune distributors began referring to prunes as "dried plums." Recently, Page 2 of 24 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 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. Page 5 of 24 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 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 Page 6 of 24 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 A, b, and c A and b - Correct answer a and b Coca-Cola uses ________ by taking their price from branded soda drinks that offer similar value. Cost-plus pricing Golden goose pricing Identical-cost pricing Competitive pricing Value pricing - Correct answer competitive pricing A long-term approach to win in the market is to win over a customer on price. True False - Correct answer false Wallace has recently opened a lemonade stand. He charges $3.00 for each glass of fresh squeezed lemonade made right on the spot. Grommet, another lemonade entrepreneur, decides to open a stand a few streets down and only charges $0.50 per glass for lemonade made from frozen concentrate. Wallace's customers decide to go to Grommet because he offers a similar product for less money. Which pricing strategy was Wallace attempting to leverage? Value pricing Promotional pricing Golden goose pricing Competitive pricing Cost-plus pricing - Correct answer golden goose pricing Sony, an electronics company, is releasing a new product. The new product is set at a low price in order to grab market share. Which pricing strategy is used in this example? Price skimming Value pricing Penetration pricing Cost-plus pricing - Correct answer penetration pricing Page 7 of 24 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 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 Page 10 of 24 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. 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 Avenue, Bloomingdales and Macy's stores located in major cities. This is an example of which type of distribution? Selective distribution Page 11 of 24 Affective distribution Exclusive distribution Industrial distribution Intensive distribution - Correct answer selective distribution Milk is an example of a product being sold through what type of distribution? Exclusive Sensitive Selective Intensive Inclusive - Correct answer intensive Coach has introduced a new, seasonal handbag that will be available for purchase only at Coach Stores during the Christmas shopping season. This demonstrates which type of distribution? Online distribution Intensive distribution Selective distribution Exclusive distribution Direct distribution - Correct answer exclusive distribution The Company Store sells bedding to customers through a catalog system. There is no physical store for customers to visit. They just order the items through the catalog. This is an example of what type of channel? Indirect Direct Intermediary All of the above - Correct answer direct Products such as toilet paper and toothpaste are usually sold through which type of distribution technique? Exclusive distribution Selective distribution Intensive distribution None of the above - Correct answer intensive distribution When Emily walks into Deseret Book, she immediately notices warm lighting and smells baking bread coming from the Lion House Bakery inside the store. Emily is noticing Deseret Book's Special promotion. Personnel. Presentation. Product assortment. - Correct answer presentation What is a competitive angle? - Correct answer an element of differentness that solves a problem and sparks a personal connection. Need to believe (Element of competitive angle) - Correct answer which significant pain-point does the product address that is personally relevant to the target audience? Providing distinctive, memorable, and fun souvenirs and gifts. Del Sol started out selling products in shopping malls via carts and kiosks. Reason to believe (Competitive angle) - Correct answer how effective is the demonstration of the product's problem-solving benefits in capturing the imagination of your target audience? Ex. Del Sol products are problem solvers that demonstrate themselves Dominate Situations - Correct answer which usage situations or buying situations does the product dominate in a way that delivers superior value? Ex. Del Sol picked a usage situation; Value for dollar is high and customer expectations are exceeded when vacationers can bring home some vacation magic Page 12 of 24 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 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 Page 15 of 24 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 Intangibility of services - Correct answer Service experiences are subjective. Each individual may receive the same service, but experience it differently. Service providers can overcome intangibility by offering evidence of quality as part of the service experience. Professional-quality sales materials, excellence awards, and beautiful yet highly functional websites all provide evidence of quality. Inseparability of services - Correct answer with products, manufacturers separate the product from the people that make the product. The workmanship and functionality of the product can stand on its own. With services, it is impossible to separate the service from the service provider. Care and personal attention increase the perceived service quality for consumers. Variability of services - Correct answer Service providers are human and humans deliver an uncertain level of consistency. People have their good days and bad days, highlights and train wrecks. Defying human nature requires a lot of training and skills to handle unique and potentially difficult situations Perishability of services - Correct answer Service providers cannot store their great performances for next year's customers. Once the service is done, it is done. In services marketing, business managers should hire manpower ahead of customer demand and fill the slow times by allowing service providers to participate in social media, publicity, and other brand-building activities 7Ps of Service Marketing - Correct answer Product, Price, Place, Promotion, People, Process, and Physical Environment Page 16 of 24 People (Service Marketing) - Correct answer with people, smart recruiting and thorough training are essential. Services marketers cannot simply hire people for what they do or have done. Services marketers must hire people because of who they are. Skills can be trained, but personalities last a lifetime. Process (Service marketing) - Correct answer every service provider needs to know what to do, how to do it, and have the support to get things fixed when the system breaks down. Service providers need to be empowered to change a system that makes the service experience difficult for them or for their customers. Frontline workers know when the system needs tweaking. Physical Environment (services Marketing) - Correct answer every business has quality indicators in their physical environment. Restaurant bathrooms must be clean. Fitness club equipment must be in good condition. Retail stores must be well lit and neat. Foxes (Service providers) - Correct answer Fox service providers excel on the productivity dimension but perform poorly on service quality Tiger (Service providers) - Correct answer Tiger service providers perform at high levels on both dimensions. Kittens lag far behind on both dimensions Servant's Heart (Service Providers) - Correct answer Servant's heart service providers excel at service quality but perform poorly on service productivity Kittens (Service Providers) - Correct answer Kittens lag far behind on both dimensions. Reliability (Service Quality) - Correct answer is the ability to perform the promised service dependably and accurately. Delivering and performing the right service the first time demonstrates reliability. Reliability shows the strongest influence on customers' perceptions of service quality, followed by responsiveness, assurance, empathy, and tangible Assurance (Service Quality) - Correct answer includes competence, courtesy, credibility, and security. Treating customers with respect, providing knowledgeable information and assistance, and creating a relationship of trust with customers demonstrate assurance. Tangibles (Service Quality) - Correct answer include appearance of physical facilities, equipment, and personnel. Cleanliness, design, and decor of the premises, appearance of the staff, and appropriate equipment demonstrate tangibles. Empathy (Service Quality) - Correct answer includes access, communication, and understanding. Listening to customers and seeking to understand customer needs demonstrate empathy. Responsiveness (Service Quality) - Correct answer is helping customers promptly. Returning phone calls quickly, replying to emails promptly, keeping customers informed, and delivering the service on time demonstrate responsiveness. Price (Marketing Mix) - Correct answer Price is the most abstract of the marketing mix variables. It signals product quality and status. It is inherently subjective and tied to consumers' perceptions rather than objective reality. If the perceived value is greater than the price, customers have incentive to purchase. Conversely, if the price is greater than the perceived value, customers have no incentive to purchase. Customer prefers the product with the greatest differential of perceived value to price. Perceived value = benefits - cost. Reference Prices (perceived value) - Correct answer External reference price is what everyone else is paying for the product. Consumers look around and notice what others are paying for particular products and services. Internal reference price is what consumers think they should pay, given their past experience and the buying situation. Page 17 of 24 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. 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 Page 20 of 24 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) highlighting the product with in-store advertising, and (4) having store salespeople actively promote the product Personal Selling - Correct answer two-way communication between a buyer and seller, designed to influence a purchase decision and develop customer relationships. High-cost, complex products and services that require demonstration are great candidates for personal selling. Order takers (personal selling) - Correct answer Order takers may work in retail sales, inbound phone sales, or business-to-business counter sales. Order takes do not receive a lot of training and generally earn low salaries. Order getters (personal selling) - Correct answer Order getters have the ability to close sales, find new customers, and increase purchases by current customers. Order getters receive extensive sales training and earn compensation matching their level of productivity Retail Salespeople - Correct answer Retail salespeople often do many other things than selling. They may help set up point-of-purchase displays, assist customers, restock shelves, and hand out free samples. Retail salespeople do not receive a lot of training and generally earn low salaries. Missionary sales people - Correct answer Missionary salespeople usually do not close sales, but travel to meet with potential customers to hand out literature and describe products. Missionary salespeople are well trained and earn compensation matching their level of productivity. Technical Salespeople - Correct answer Technical salespeople are generally part of a business- to-business sales team. Engineers or other technical people help in the selling process by explaining technical innovations and describing how the innovations fit with and enhance a customer's business operation. Service Salespeople - Correct answer Service salespeople work with business-to-business customers after the sale is complete. They arrange for training, follow-up purchases, and maintain the positive relationship between vendor and client. Public Relations - Correct answer consist of the activities designed to manage the public image of a person, organization, and/or brand Direct Marketing - Correct answer direct marketing focuses on direct communication with consumers to encourage a direct response for a purchase, request for information, or visit to a website. Marketers use a variety of direct marketing activities including direct mail, catalog, online retailing, mobile marketing, television home shopping, and telemarketing. These methods Page 21 of 24 enable marketers to connect directly with targeted consumers. Using detailed information from extensive databases, marketers can customize their product offerings to precisely defined segments. Integrated Marketing Communications (IMC) - Correct answer the 4Cs being consumer rather than product, cost rather than price, convenience rather than place, and communication rather than promotion. The shift in focus asks marketing managers to put their emphasis on the consumer, the costs associated with product solutions in addition to purchase price, maximize the convenience of the consumption experience, and stress two-way company-consumer communication rather than one-way, top-down selling Social Media Marketing objectives - Correct answer build awareness with potential customers (reach), generate leads for new sales (reach), strengthen relationships with current customers (engage), improve customer retention (engage), and win new customers (convert) Facebook Advertising - Correct answer makes a distinction between people and businesses. Profiles are for people. Pages are for businesses. Businesses can have fans, but not friends. Marketing managers can target potential customers by location, age, birthday, interests, education, and people having a connection with the business's page. Pushing offers to people having a connection with the business's page is particularly productive. Critical number CPA (Cost per action) Twitter Advertising - Correct answer Do reply when followers or customers tweet to the business, tweet on weekends when people have more time to read and respond, ask followers to retweet at least occasionally, and switch up the tweet types. Do post a photo of people using the product, advertise special opportunities or sales, ask a question or two, and post news about product awards or interesting industry trends YouTube Advertising - Correct answer YouTube videos have proven to be effective ways to promote products, particularly when interesting brand champions make their own videos. The "homegrown" videos attract more attention and are more credible than slick corporate-looking content. Along with being entertaining, the YouTube video must focus on the product, demonstrate how product benefits make users heroes, and clearly communicate brand name and brand personality. Also, providing offers for free samples or other sales promotions may be productive. Product Blogs - Correct answer Fresh content is the fuel driving Internet traffic. Product blogs can increase website visitors and improve search engine rankings, which should elevate the website when potential customers are looking for information Google Ad words advertising - Correct answer Google Ad Words target potential customers when they are in the middle of a specific buying situation. They are the online version of the old Yellow Pages. People using a search engine to click on an ad are usually planning to make a purchase. Google ads are short. They are limited to a headline with 25 characters and two additional lines containing 35 characters each. Consequently, it is important to get to the point quickly with a strong competitive angle. How to optimize brand via Social Media Marketing - Correct answer Facilitate conversations with fans on the company Facebook page Share tweets about topics of interest via Twitter Upload shareable videos to the company YouTube channel Pin and Repine interesting visuals on Interest Participate in groups and answer questions on LinkedIn Share information on Google+ Intermediary Marketing Channels - Correct answer use intermediaries (marketing channels) to distribute goods when the intermediary can do it more efficiently than they can because the intermediary can (1) transport the goods to consumers less expensively, (2) sell the goods to retailers more easily, and/or (3) sell the goods to a large group of consumers that already Page 22 of 24