D077- Module 1 Study questions
1. Define "marketing". Lesson 1
Business function that identifies, satisfies, and retains customers
through a set of activities related to creating, communicating,
delivering, and exchanging offerings that have value for the customer
2. Identify 3 functions of Marketing? Lesson 1
the function of marketing is to bring value to customers, whom the
business seeks to identify, satisfy, and retain. finding out the needs
and wants of potential buyers (whether organizations or consumers)
and then providing goods and services that meet or exceed the
expectations of those buyers. Marketing is about creating
exchanges. An exchange takes place when two parties give
something of value to each other to satisfy their respective
needs or wants
3. What is the marketing concept? Identify 3 important characteristics of
this concept. Lesson 1
a business philosophy that holds that long-term profitability is
best achieved by focusing the coordinated activities of the
organization toward satisfying the needs of a particular target
customer, or market segment(s).
(1) Focusing on the needs and wants of the customers so
the organization can distinguish its product(s) from
competitors’ offerings. Products can be goods, services,
or ideas.
(2) Integrating all of the organization’s activities,
including production and promotion, to satisfy these
wants and needs.
(3) Achieving long-term goals for the organization by
satisfying customer wants and needs legally and
responsibly.
4. Identify the four elements in the Marketing mix. Identify at least three
important characteristics of each of the elements of the marketing
mix.
Product, Price, Promotion, and Place
Product: Can refer to goods, services, or ideas; Goes through a
product life cycle; and Involves decisions on branding, packaging,
warranties, etc.
Price: Determines the company's profit, It affects demand and sales.
Should complement other elements of the marketing mix
Promotion: Includes advertising, sales promotion, PR, personal
selling, etc. The goal is to inform and influence customers. Uses a
coordinated promotional mix
Place: Involves distribution channels; Includes logistics, location,
inventory management; and Can be direct or indirect distribution
5. What are the four stages of the product life cycle? Lesson 2
Identify each stage of the product life cycle stage based on profit,
sales, competitive pressures? Lesson 2
Introduction: Low sales, little/no profit, often little competition
Growth: Increasing sales, rapidly increasing profits, competitors enter
the market
Maturity: High sales, high then declining profits, high competition
Decline: Declining sales and profits, high competitive pressure
6. What are the variables companies considering while creating a
product strategy? Lesson 2
Brand name, packaging, colors, warranty, accessories, and service
program
7. Define product mix, product lines, and product depth? Lesson 2
Product mix: All of a company's product lines
Product lines: Series of products a company offers
Product depth: Versions/sub-products within a product line
8. Identify 5 characteristics of price skimming strategy. Lesson 2
Price new product high to increase profits
Can find out what buyers are willing to pay
The price can be lowered later if too high.
Can create an image of quality/prestige
Lowering prices later can make consumers feel they are getting a
bargain.
9. Identify 3 characteristics of Penetration pricing strategy? Lesson 2.
Price new product lower than market price to gain market share
Can induce consumers to switch brands
May discourage competitors from entering the market
10. Identify 2 characteristics of Prestige pricing strategy? Lesson 2
Raise the price to increase perceived value/status
Common where high prices indicate high status
11. Identify 2 characteristics each of leader pricing? Lesson 2
Price products below normal markup or cost
Aim to attract customers to the store
12. Identify 2 characteristics each of bundle pricing? Lesson 2
Group-related products and price as a single product
Reach market segments individual products may not reach
13. Identify 2 characteristics of Competitive pricing? Lesson 2
Set price according to competitor prices
Can price higher or lower than competitors to differentiate
14. Define the following components of promotion (Lesson 2)
personal selling - Face-to-face presentations to buyers
advertising - Paid nonpersonal promotion through traditional media
online advertising - Internet-based ads (banner ads, pop-ups, video ads,
etc.)
content marketing - Creating online material to generate interest without
direct promotion
social media - Using social platforms to generate buzz
e-commerce - Using the company website for online sales/promotion
guerilla marketing - Unconventional low-cost tactics to engage consumers
public relations - Building goodwill between the organization and the
public
sales promotion - Short-term incentives to encourage purchases
15. What are the phases in a Business cycle? Lesson 5
Expansion,
Peak,
Contraction,
Trough
16. What does a company consider under Place strategy? Lesson 2
Transportation,
location,
supply chain management,
online presence,
inventory,
atmospherics
17. What is the difference between Distribution and Supply chain?
Lesson 2
Distribution focuses on moving products from producer to consumer.
The supply chain is broader, including the acquisition of raw materials,
production, and delivery to customers.
18. What are vertical marketing systems? What are the three types of
vertical marketing systems? Lesson 2 Page 9
Vertical marketing systems are coordinated distribution channels.
There are corporate, contractual, and administered
19. In general, what are the categories of environmental data that shape
most marketing decisions. Lesson 4 page 11
Competitive, Natural/ecological,
Political-legal,
Socio-cultural,
Demographic,
Technological,
Economic
20. What does PEST stand for? Lesson 5
Political,
Economic,
Social, and
Technological
21. Define the following terms: consumer confidence, inflation, generation
gaps. Lesson 5
Consumer confidence: Consumer optimism about the economy
Inflation: General rise in price levels
Generation gaps: Differences in attitudes between age groups
22. Identify at least three ethical considerations for product, price, place,
promotion marketing mix variables. Lesson 6
Product:
Environmental sustainability
Delivering on promises
Benefiting customers/society
Price:
Fair and transparent pricing
Avoiding price gouging
Ethical pricing models
Place:
Fair labor conditions in distribution
Environmental sustainability in supply chain
Data security and consumer privacy
Promotion:
Truthful communication
Appropriate audience targeting
Respecting customer contact preferences
