MAR 4480 Exam 3 | Questions and Answers

MAR 4480 Exam 3 | Questions and Answers What is the fifth p? People When does the fifth p come into play? Implentation phase of marketing strategy What is branding strategy? brand should capture the total offering tha ...

MAR 4480 Exam 3 | Questions and Answers What is the fifth p? People When does the fifth p come into play? Implentation phase of marketing strategy What is branding strategy? brand should capture the total offering that answers a question in customer's mind What are good brands? the ones that come to mind when a customer has a problem What is private label? a store's brands 4 advantages of selling private label 1. increased profit 2. less competition 3. Total control 4. Merchant loyalty What are manufacturer brands? brands created by producers they drive consumer traffic and give confidence that they are buying from a respected company 5 advantages of manufacturer brands 1. reduced costs 2. built in loyalty 3. enhanced image 4. lower inventory 5. less risk What is individual branding? when a firm gives each of its product offerings a different brand name Advantage of individual branding poor performance of one product doesn't tarnish brand image of other products What is co-branding? the use of two or more brands within one product to capitalize on the equity of each brand Advantage of co branding uses the image and reputation of multiple brands to create distinctive products with differentiation What is brand preference? Stronger degree of brand loyalty where a customer prefers one brand to competitive brands and will usually purchase this brand if it is available What is brand equity? the marketing and financial value associated with a brand's position in the marketplace (value of a brand to a firm) Which companies did not protect their trademarks and patents? What happened to their products? Aspiring and Escalator their products became synonymous within an entire product category Packaging helps play a role in... product repositioning What is a strategy canvas Graphical depiction of a firm's relative position in terms of its competitors across the target market's key success factors What is a perceptual map? A perceptual map displays, in two or more dimensions, the position of products/brands in terms of relative mental position, illustrating voids in the current mindscape for a product category What are product features? factual descriptors of the product and its characteristics, not the info that leads consumers to buy What are product advantages? performance characteristics that communicate how the features make the product behave What is the most important tool of differentiation? Brand Why are customer perceptions of a brand important? because differences among competing brands can be based on real or psychological qualities What is customer loyalty? the frequency with which a customer consistently purchases a specific brand When all products in a market have essentially the same features, the best way to differentiate is through... good customer service, both before and after the service is provided Anything the firm can provide in addition to the main product that adds value to that product for the customer is called support services Education activities is one of the common goals during what stage of the new product development? introduction stage What is the goal of education activities? Engaging in customer education activities that teach members of the target market how to use the new product Achieving financial objectives occurs during what stage? growth stage What are the 2 main priorities of the financial objectives? 1. establishing a strong defensible market position 2. repay investment and earn enough profit to justify a long term commitment to the product What are the 4 goals of the maturity stage? 1. generate cash flow 2. hold market share 3. steal market share 4. increase share of customer What is share of customer? percentage of each customer's needs in a particular are met by the firm How do large grocery chains increase share of customer? they add features ranging from ready to eat meals to dry cleaning services in an effort to create one stop shopping for family needs What stage of the new product development does the harvesting approach occur in? decline stage What is the harvesting approach? gradual reduction in marketing expenditures and uses a less resource-intensive marketing mix allows the firm to funnel its increased cash flow into the development of new products What is divesting? withdrawing all marketing support from the product What is brand licensing? a process where a brand owner leases or rents their intellectual property rights to a company or individual for a set period of time and territory, licensee pays for the rights to use the brand's name, logo, character, or other elements on their products or services Role of trust in ethics enhances a company's reputation and contributes significantly to its bottom line Ignoring stakeholder's demands for responsible marketing can destroy... customers' trust and even prompt increased government regulation What is cause related marketing? when a firm links products to a particular social cause on an ongoing or short term basis What are the benefits of ethics and social responsibility? promote human welfare or goodwill above and beyond economic, legal, and ethical dimensions of social responsibility what is strategic philanthropy? synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits includes the financial and nonfinancial contributions to stakeholders while also benefitting the company What is social entrepreneurship? when an entrepreneur founds an organization that strives to create social value rather than simply earn profits What is greenwashing? misleading a consumer into thinking that a good or service is more environmentally friendly than it is what is marketing ethics? the principles and standards that guide behavior of individuals and groups in making marketing decisions 3 values companies should hold honesty, respect, and trust Business decisions involve complex and detailed discussions causing what? the correctness to be unapparent Employees and managers need to know how to operate in what areas? grey areas or areas constantly evolving like internet privacy What are ethical issues? a identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right, wrong, or ethical, unethical What is predatory of pricing? when a firm changes very low prices for a product with the intent of driving competition out of business or a specific market What firms can use predatory pricing? firms with lower variable costs can legitimately charge lower prices than competition What is superficial discounting? when a firm advertises a sale price as a reduction below normal price when it is not the case typically firm doesn't sell at a the regular price in any meaningful quantities, sale price period is excessively long What are ambiguous statements? claims are so weak that viewer must infer the advertiser's intended message Why do ambiguous statements cause ethical issues? they are so vague, allowing the firm to deny any intent to deceive What is the Better Business Bureau (BBB)? buereaus that oversee businesses and charities across US and Canada, helping solve problems for millions of consumers each year BBB advantages over government regulation 1. establishment and implementation of such programs are usually less costly 2. their guidelines or codes of conduct are generally more practical or realistic 3.effective self-regulatory programs reduce the need to expand government bureaucracy What is code of conduct? aka code of ethics formalized rules and standards that describe what the company expects of its employees