COB 300D MKTG Exam 1 Questions with Correct Answers

COB 300D MKTG Exam 1 Questions with Correct Answers

Question 1:
What is the ultimate goal of marketing?
Answer:
Build long-term relationships
So customers keep buying from you

Question 2:
What does marketing start with?
Answer:
Identifying target market

Question 3:
What do the long-term relationships build off of?
Answer:
Trust
Build trust by good products, communication, consistency, transparency, customer service, etc.

Question 4:
Why is it important to develop long-term relationships?
Answer:
Provides stability
Loyal customers - having repeat customers costs nothing from a marketing POV (sales, promotions, &
advertising)

Question 5:
How do you build long-term relationships?
Answer:
Start w/ identifying target market
Marketing mix (product, price, place, & promotion)
Creating VALUE leads to trust
Trust leads to commitment
Not opportunistic behavior: saying 1 thing & doing another GOAL: create highest value for target
market

Question 6:
How do we determine the right value?
Answer:
Needs vs Wants
Product/product categories vs Brand Names
As consumers, we like to buy things that are not easily available, this creates high value for customers
(Limited edition, diamonds)
People value things diff Maslow's Hierarchy of Needs

,Self-Actualization
Esteem Needs
Social Needs
Safety Needs
Physiological Needs

Question 7:
Marketing Program
Answer:
Target market is based off needs, wants, & expectations (what they value) regardless of demographic

Question 8:
Elements of Marketing Mix
Answer:
Product Price Place Promotion

Question 9:
Evolution of Marketing
Answer:
Production era - Keeping up w/ production needs
Sales era - Focus on sales; Competition
Marketing Concept era - Satisfy customer needs
Customer Relationship era - Establish long-term relationship between customers & suppliers

Question 10:
Experimental Marketing
Answer:
Melding brands & customer experiences
Allows customers to engage & interact w/ offerings in sensory ways in order to create emotional bonds
between consumers & marketing offerings
- Ex. Honest Tea Store

Question 11:
What is Market Segmentation?
Answer:
Grouping market based off needs & wants; Not by demographic

Question 12:
Why segment markets?
Answer:
Efficiency
Concentrated Marketing: 1 Product & 1/Few Segments
Concentrate al efforts into 1 product towards 1 or few target markets

, Ex. Charmin Ultra Soft/Strong Effectiveness
Differentiated Marketing: Multiple Products & Multiple Market Segments
Create diff product offerings for each diff segment (NEEDS BASED)
Ex. Toothpaste: sensitive, whitening, advance clean

Question 13:
What is the danger of a multi-segment strategy?
Answer:
As you create more products, it creates more segments
Moves own customers away from their existing products to their new products
Cannibalizing from existing sales, instead of competitors
Ex. Pepsi, Diet Pepsi, Pepsi Max

Question 14:
Segmentation Strategy (2)
Answer:
Build-to-order Mass Customization

Question 15:
Segmentation Steps
Answer:
Group segments
Profile segments
Targeting segments
Positioning Product

Question 16:
Ways to Profile Customer Segments
Answer:
Geographic - (region, city size, density (urban, rural)) Demographic - (gender, age, race/ethnicity
Psychographic - (personality, values (VALS2), lifestyle (Nielsen Prism), Needs) Behavioral - (retail store
type, direct marketing, product features, usage rate, user status, awareness/intentions)

Question 17:
Ways to Profile Business Segments
Answer:
Geographic
Demographic - (NAICS code/sector, # of employees, annual sales) Behavioral - (# of locations, kind
(product/service), where used, application, purchase location, who buys, type of buy)

Question 18:
Targeting Segments (4)
Answer: