MAR 2023 Exam 1 with Complete Solutions

What makes Coke a good product and why do so many people buy it? - ANSWER-It's *benefits*! It tastes good, has caffeine. What is Marketing? - ANSWER-To identify unmet consumer needs & then develop products that fill those needs Example of Pure Marketing - ANSWER-Coca Cola - It tastes good & delivers caffeine. Don't have to go to far to buy one and it is low cost. Aspects of great marketers - ANSWER-1. Develop products that people want or need 2. Price them at a level that maximizes profits 3. Distribute them to where consumers are What is the core marketing function? - ANSWER-Product Development; If the product is good the firm has to do little advertising. Example of good Product Development - ANSWER-Apple, Bedsox, Munchy Mart & Four Rivers First goal of marketing - ANSWER-identify unmet consumer needs and then develop products that fill those needs. The Power of branding and marketing (visible side of marketing) - ANSWER-1. Time - as time goes by and a company like Apple makes tons of money, imitation appears. The dominant firm has to convince customers its product is superior. 2. Powerful - people will pay much more for brands they "trust" even if they are the exact same product (Publix brands are often from the same plants as others), consumers won't buy unfamiliar products even if they are *objectively* better Dr. Brady's approved definition of Marketing - ANSWER-"Marketing is the process by which companies determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development." -Phil Kotler Marketing core strategies - ANSWER-1. Creation 2. Segmenting Markets 3. Identifying opportunities Segmenting markets - ANSWER-• Gender • Age • Race • Education • Income • Early adopters Marketing core strategies: Creation - ANSWER-1. Value 2. Relationship 3. Cumulative- Corporate Social Responsibility Customer Value Typology - ANSWER-1. Efficiency - self-oriented, intrinsic benefits 2. Status - self-oriented, extrinsic benefits 3. Aesthetics - other-oriented, intrinsic benefits 4. Ethics - other oriented, extrinsic benefits; ex: Chick Fil A gives, but they also sell their delicious product Extrinsic vs. Intrinsic (for your own benefit) - ANSWER-extrin: Physically given to you; ex is discounts, deals, and promotions intrin: participative experience Simple Trade Era (Pre-1860s) - ANSWER-made by hand and grown, traded in small quantities, lasted up until Industrial revolution Production Era (Pre-1920s) - ANSWER-firms produced what they could make, Henry Fords statement ("You can have a model-T in any color as long as its black"), inward focus, technical development; Sellers market where demand exceeded supply Sales Era (1920s) - ANSWER-firms pushed products using aggressive sales tactics, people were changing their minds on what they wanted, they sold what they made and focused on short term profit maximization o Sell what we make o Aggressive promotion - vacuum cleaners o Short-term profit maximization Marketing Era (1940s-1990s) - ANSWER-the "great awakening" where customers became central focus, began with development of marketing departments in early part of era, "customer is key" - Began with the development of marketing departments () and then transferred to the rest of the firm () Focus on: Customer is the key — "delight" Make what we sell