BUS 345 MIDTERM QUESTIONS AND ANSWERS
Role of Marketing - Answers - • strategic role of marketing goods and services
• interdependence with other key business functions
• production, selling, marketing approaches
• types of markets - resource, industrial, intermediate, consumer, mass, niche
Marketing Creates Value - Answers - Marketing creates value for the firm's
chosen customers. If there is no value,
customers leave. Without customers,
companies fail. Value is created by meeting
customer's functional and emotional needs
The 4 Ps - Answers - Product, Price, Place, Promotion
Product - Answers - CREATING
What does the customer want from the product/service? What needs does it satisfy?
•What features does it have to meet these needs?
•How and where will the customer use it?
•What does it look like? How will customers experience it?
•What size(s), color(s), and so on, should it be?
•What is it to be called?
•How is it branded?
•How is it differentiated versus your competitors?
•What is the most it can cost and still be sold profitably?
Price - Answers - CAPTURING
What is the value of the product or service to the buyer?
•Are there established price points for products or services in this area?
•Is the customer price sensitive? Will a small decrease in price gain you extra market
share? Or will a small increase be indiscernible, and so gain you extra profit margin?
•What discounts should be offered to trade customers, or to other specific segments of
your market?
•How will your price compare with your competitors?
Place - Answers - DELIVERING
Where do buyers look for your product or service?
•If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or
online? Or direct, via a catalogue?
•How can you access the right distribution channels?
•Do you need to use a sales force? Or attend trade fairs?
•What do you competitors do, and how can you learn from that and/or differentiate?
, promotion - Answers - COMMUNICATING
Where and when can you get across your marketing messages to your target market?
•Will you reach your audience by advertising in the press, or on TV, or radio, or on
billboards? By using direct marketing mailshot? Through PR? On the Internet?
•When is the best time to promote? Is there seasonality in the market? Are there any
wider environmental issues that suggest or dictate the timing of your market launch, or
the timing of subsequent promotions?
•How do your competitors do their promotions? And how does that influence your
choice of promotional activity?
macro strategies for developing customer value - Answers - customer excellence,
operational excellence, product excellence, locational excellence
sustainable competitive advantage - Answers - a competitive advantage that other
companies have tried unsuccessfully to duplicate and have, for the moment, stopped
trying to duplicate
B2B - Answers - the process of selling merchandise or services from one business to
another
B2C - Answers - the process in which businesses sell to consumers
C2C - Answers - the process in which consumers sell to other consumers
lifetime value of a customer - Answers - the potential profit a single customer's purchase
of a firm's products generates over the customer's lifetime
Marketing Penetration - Answers - a marketing strategy that tries to increase market
share among existing customers
market development - Answers - company growth by identifying and developing new
market segments for current company products
product development - Answers - company growth by offering modified or new products
to current market segments
diversification - Answers - a strategy of increasing sales by introducing new products
into new markets
Marketing Environment - Answers - the actors and forces outside marketing that affect
marketing management's ability to build and maintain successful relationships with
target customers
SWOT analysis - Answers - strengths, weaknesses, opportunities, threats
Role of Marketing - Answers - • strategic role of marketing goods and services
• interdependence with other key business functions
• production, selling, marketing approaches
• types of markets - resource, industrial, intermediate, consumer, mass, niche
Marketing Creates Value - Answers - Marketing creates value for the firm's
chosen customers. If there is no value,
customers leave. Without customers,
companies fail. Value is created by meeting
customer's functional and emotional needs
The 4 Ps - Answers - Product, Price, Place, Promotion
Product - Answers - CREATING
What does the customer want from the product/service? What needs does it satisfy?
•What features does it have to meet these needs?
•How and where will the customer use it?
•What does it look like? How will customers experience it?
•What size(s), color(s), and so on, should it be?
•What is it to be called?
•How is it branded?
•How is it differentiated versus your competitors?
•What is the most it can cost and still be sold profitably?
Price - Answers - CAPTURING
What is the value of the product or service to the buyer?
•Are there established price points for products or services in this area?
•Is the customer price sensitive? Will a small decrease in price gain you extra market
share? Or will a small increase be indiscernible, and so gain you extra profit margin?
•What discounts should be offered to trade customers, or to other specific segments of
your market?
•How will your price compare with your competitors?
Place - Answers - DELIVERING
Where do buyers look for your product or service?
•If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or
online? Or direct, via a catalogue?
•How can you access the right distribution channels?
•Do you need to use a sales force? Or attend trade fairs?
•What do you competitors do, and how can you learn from that and/or differentiate?
, promotion - Answers - COMMUNICATING
Where and when can you get across your marketing messages to your target market?
•Will you reach your audience by advertising in the press, or on TV, or radio, or on
billboards? By using direct marketing mailshot? Through PR? On the Internet?
•When is the best time to promote? Is there seasonality in the market? Are there any
wider environmental issues that suggest or dictate the timing of your market launch, or
the timing of subsequent promotions?
•How do your competitors do their promotions? And how does that influence your
choice of promotional activity?
macro strategies for developing customer value - Answers - customer excellence,
operational excellence, product excellence, locational excellence
sustainable competitive advantage - Answers - a competitive advantage that other
companies have tried unsuccessfully to duplicate and have, for the moment, stopped
trying to duplicate
B2B - Answers - the process of selling merchandise or services from one business to
another
B2C - Answers - the process in which businesses sell to consumers
C2C - Answers - the process in which consumers sell to other consumers
lifetime value of a customer - Answers - the potential profit a single customer's purchase
of a firm's products generates over the customer's lifetime
Marketing Penetration - Answers - a marketing strategy that tries to increase market
share among existing customers
market development - Answers - company growth by identifying and developing new
market segments for current company products
product development - Answers - company growth by offering modified or new products
to current market segments
diversification - Answers - a strategy of increasing sales by introducing new products
into new markets
Marketing Environment - Answers - the actors and forces outside marketing that affect
marketing management's ability to build and maintain successful relationships with
target customers
SWOT analysis - Answers - strengths, weaknesses, opportunities, threats
