MBA 706 EXAM QUESTIONS WITH COMPLETE SOLUTIONS 100% CORRECT

MBA 706 EXAM QUESTIONS WITH COMPLETE SOLUTIONS 100% CORRECT “What is marketing? Definition from AMA - CORRECT ANSWER the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." "What is Marketing? Definition from Philip Kotler - CORRECT ANSWER CCDVTP = Create, Communicate, and Deliver Value to a Target market at a Profit. •Create Value = Product Management •Communicate Value = Brand Management •Deliver Value = Customer Management" "Evolution Of Modern Marketing - CORRECT ANSWER •Product/production orientation - e.g., Ford model T -Focus on building a better gadget. •Sales orientation -Focus on convincing the customer that your product works best for them. •Customer orientation -Focus on identifying customers' wants BEFORE formulating attractive solutions." "Measuring Marketing's Effectiveness - CORRECT ANSWER •Marketing is no longer a function within a firm, but more of a systematic way of thinking •Marketing is everywhere •Sometimes the effectiveness of marketing programs is not easy to quantify." "Marketing Management Framework - CORRECT ANSWER Who: 5 C's Why & How: STP What: 4 P's" "What are the 5 C's? - CORRECT ANSWER customer, company, context, collaborators, competitors" "What does STP stand for? - CORRECT ANSWER Segmentation, Targeting, Positioning" "What are the 4 P's? - CORRECT ANSWER Product, Price, Place, Promotion" "What must always come first in the 4 P's? - CORRECT ANSWER Product" "What are Shopping Purchases? - CORRECT ANSWER •Medium involvement; not as frequently purchased. •Consumers spend time and effort prior to purchase." "What are Specialty Purchases? - CORRECT ANSWER •High involvement; occasional purchases, often more expensive, require more thought. •Customers put much effort into the purchase." "What are the types of Business Purchases? - CORRECT ANSWER Straight Rebuy, Modified Rebuy, and New Buy" "What is Straight Rebuy? - CORRECT ANSWER -Low involvement; purchase what was purchased last time with little or no thought" "What is Modified Rebuy? - CORRECT ANSWER -Medium involvement; something about the purchase is altered, requiring some thought" "What is New Buy? - CORRECT ANSWER -High involvement; purchase something that hasn't been purchased before requiring much thought and planning" "What are Maslow's Hierarchy of Needs? (Pyramid) - CORRECT ANSWER 1. Food, Water, Sleep, Sex 2. Safety, Security 3. Friendship, Love, Belonging 4. Self-Esteem, Respect 5. Self-Actualization" "sociocultural differences - CORRECT ANSWER social class, age, gender, ethnicity, and nationality—influence consumer impressions and preferences and produce shopping patterns" "What is segmentation? - CORRECT ANSWER •Breaking the market into more homogeneous consumer groups •A single product, price, or promotion is unlikely to satisfy all consumers' needs." "Market segment - CORRECT ANSWER a group of consumers who respond in a similar way to a given set of marketing efforts or A group of customers who share similar inclinations toward a brand" "Marketers' goal - CORRECT ANSWER Create marketing mixes that meet the segment's needs" "Mass marketing - CORRECT ANSWER developing products and promotions to please large groups of people -All customers are treated the same. -Is usually more efficient but may not meet customer needs" "One-to-one marketing - CORRECT ANSWER plan wherein a different product is offered for each individual customer so that each customer is treated as a segment of one -Each customer serves as a segment. -Product is tailored for each person's desires. -Is usually more effective in meeting customers' needs, but hard to achieve efficiently and may involve quality issues." "Approaches to Segment the Market - CORRECT ANSWER -Managerial: top-down ideation -Customer-based: bottom-up customer needs assessment" "Evaluation of the Segments - CORRECT ANSWER •Use data to identify and access segments •Segments need to be substantial in its size and profitable •Segmentation fits with corporate goals and brand image •Segments need to be actionable" "What is Marketing? (list 6) - CORRECT ANSWER - marketing helps create value - marketing satisfies customer needs and wants - marketing entails an exchange - marketing requires decisions on the 4ps - marketing can be performed by individuals & organizations - marketing occurs in different settings" Cost reductions - CORRECT ANSWER Products are modified to provide similar performance but at a lower cost: ex: iphone XS vs Iphone XR" "Market penetration - CORRECT ANSWER Prices are set low to generate high sales revenue and keep competitors away ex: Japanese car manufacturers selling low-priced but reliable cars in US during 60s-70s" "Early cash recovery - CORRECT ANSWER Prices are set to generate a high cash flow to solve problems of liquidity" "Discouraging others from entering the market: - CORRECT ANSWER Prices are set low as a barrier to entry which also signals the possibility of price war" "Selective distribution - CORRECT ANSWER Used for consumer durables: consumers will usually "compare shopping" ex: Home appliances" "Exclusive distribution - CORRECT ANSWER Used when companies limit intermediaries to one per geographical area ex: exclusively at nordstrom, exclusively at Neiman Marcus" "Selective channel Members - CORRECT ANSWER - Economic criteria - control criteria - Adaptive criteria - End-User considerations - product characteristics - Manufacturer's capability and resources" "Economic criteria: - CORRECT ANSWER Cost, Revenue, Profit" "Control Criteria: - CORRECT ANSWER Degree of influence, motivation, and conflict among channel members" "Adaptive Criteria: - CORRECT ANSWER Degree of flexibility in responding to the changing environment" "End-user considerations: - CORRECT ANSWER Where consumers would shop and buy" "Product characteristics: - CORRECT ANSWER Complexity, special application, requirements, service needed" "Manufacturer's capability and resources: - CORRECT ANSWER Bargaining power and channel control" "3 "Soft" elements of the marketing mix - CORRECT ANSWER -People: well trained personnel - Physical evidence: physical environment: cleanliness, decoration, how staff are dressed: should convey a message about the quality of the product or service - Process management: how costumers experience the brand from the point of initial contact to the point of last contact - use of new tech to provide better services at lower costs: self checkout, info kiosks etc." "Outsourcing & Resourcing decisions Benefits - CORRECT ANSWER - Cost savings: reduces overhead costs and investment in infrastructure - Quality improvement: outsourcing firms (service providers) specialize in delivering services may provide high quality services - capacity management: firms may not perform all business functions effectively by themselves - Effecting change: good opportunity to initiate change - time to market: Reduces the overall time to market, therefore firms are able to deliver faster at lowers costs - time zones: tasks can be performed 24/7 because of different time zones - Growth: potential to grow without increasing capacity" "Two most common forms of outsourcing - CORRECT ANSWER - almost all companies outsource in some way 1) information technology 2)business process ex: apple (manufacturing, IBM (PC Manufacturing, IT) P&G (IT, facilities management employee service) Nike (Manufacturing) Banking industry (business process: customer service)" "Offshoring - CORRECT ANSWER Offshore business operations from one country to another" "Onshore/reshore - CORRECT ANSWER Business operation is moving to areas close to customers" "Two factors that need to be considered in relation to offshoring and reshoring - CORRECT ANSWER - Consumer's concern for quality: made in USA vs. Made in China - Deliver good customer service" "quality: Physical goods: - CORRECT ANSWER TQM- continuous improvement in performance to delight customers" "Quality: service: - CORRECT ANSWER Reliability, accessibility, credibility, security, knowledge, responsiveness, competence, courtesy, communication, and tangibles" "Knowledge gap: - CORRECT ANSWER What the firm perceives customers want vs. what they actually want" "Standards gap: - CORRECT ANSWER Firms perception of quality vs. perception of custom's expectation" "Delivery gap - CORRECT ANSWER What is set in the standards vs. what is delivered" "Internal communication gap: - CORRECT ANSWER what is communicated vs. what is delivered" "Perception gap: - CORRECT ANSWER what is perceived vs. what is delivered" "Interpretation Gap: - CORRECT ANSWER what is promised vs. what customers perceive to be promised" "Service gap - CORRECT ANSWER what is expected vs. what is perceived" "An effective supply chain should meet the following criteria - CORRECT ANSWER - availability - speed of delivery -reliability - lot size - convenience AKA deliver the right product in the right quantity to the right place at the right time for the right customer at the right price" "Supply chain management - CORRECT ANSWER - location decisions (Plants/production facilities) - production decisions (what products and which plant to produce) - inventory decisions (create some level of buffers due to uncertainty - transportation decisions (type of shipments) - Customization: sell directly to consumers: Dell, Nike - Customization -> customer co-creation" "Traditional Marketing Mix (Also known as the 4 P's) - CORRECT ANSWER Product Price Place Promotion" "New Marketing Mix (How many Ps?) - CORRECT ANSWER •Today, the 4Ps have been extended to even 7Ps, 8Ps, ... and 20Ps. •Some examples of those additional Ps: participation, personnel, personality of a store/brand, etc." "Why do we use the 4 P's? - CORRECT ANSWER •These Ps are the tools that firms can use/manipulate to achieve their goals." "What does a wise firm do when in response to spatial and temporal changes in market segments, industry structure, and competitors' behavior. - CORRECT ANSWER alters its strategy" "What do decisions on the 4 P's Affect? - CORRECT ANSWER who buys from the firm and how many (quantity) they buy, and ultimately affect the profitability of the firm" "What do consumers consider when making decisions regarding when and where they will shop? - CORRECT ANSWER the benefits and the costs of shopping" "What benefits do consumers consider? - CORRECT ANSWER -Utilities derived from purchasing goods and services. -Physical benefits: exercising -Psychic benefits: e.g., retail therapy, satisfaction, social interaction. -Information gathering: brands, products, etc" "What costs do consumers consider? - CORRECT ANSWER -Monetary costs: dollars -Physical energy: e.g., driving, walking around, etc. -Psychic energy: e.g., interacting with others. -Time: time to get to the store + time spent in the store." "What do firms attempt to do? - CORRECT ANSWER maximize their profits, subject to their internal & external environments" "Simple Economic Model - CORRECT ANSWER a retailer's profits = sales revenue - costs Sales Revenue = ∑_1^