Commission On Higher Education

Region V

Calabanga Community College

A/Y 2021-2022-

Compilation Of
Module Review Questions
and Andwers on
PRINCIPLES OF MARKETING

Prepared by:

MONALISA T. MESA

BSE-3D student

Submitted to:

Mr. Emilio A. Clores

Subject Instructor
 CONTENT

Chapter 1. What is Marketing?

Chapter 2. Strategic Planning

Chapter 3: Consumer Behavior: How People Make Buying Decisions

Chapter 4: Business Buying Behavior

Chapter 5: Market Segmenting, Targeting, and Positioning

Chapter 6: Creating Offerings

Chapter 7: Developing and Managing Offerings

Chapter 8: Using Marketing Channels to Create Value for Customers

Chapter 9: Using Supply Chains to Create Value for Customers
Chapter 10: Gathering and Using Information: Marketing Research and Market Intelligence

Chapter 11: Integrated Marketing Communications and the Changing Media Landscape

Chapter 12: Public Relations, Social Media, and Sponsorships

Chapter 13: Professional Selling

Chapter 14: Customer Satisfaction, Loyalty, and Empowerment

Chapter 15: Price, the Only Revenue Generator

Chapter 16: The Marketing Plan

Chapter 1: What is Marketing?
Chapter 1.1 Defining Marketing
Review Questions:

1. What is the marketing mix?

Answer:
The term "marketing mix" is a foundation model for businesses, Historically centered around the four
segment that mean 4 P’s of Digital Marketing. The marketing mix refers to the set of actions, or tactics,
that a company uses to promote its brand or product in the market. The marketing mix is a tool for
considering the different elements that go into promoting a brand and its products. The marketing mix
is a crucial tool to help understand what the product or service can offer and how to plan for a
successful product offering. The four Ps of marketing are the key factors that are involved in the
marketing of a good or service. The marketing mix is most commonly executed through the 4 P's of
marketing: Price, Product, Promotion, and Place.

2. How has marketing changed from the four Ps approach to the more current value-based
perspective?
Answer:
The four Ps approach does not capture all the activities of marketing. The new approach is; marketing
is the activity of creating, communicating, delivering and exchanging offerings that have value for
customers.

3. What is the personal value equation?

Answer:
The personal value equation is a personal equation as it shows how a consumer estimates the benefits
of a commodity will vary. The personal value equation is- value = benefits received - (price + hassle). An
example that shows how value is achieved for a customer is provided in the explanation.

Chapter 1.2 Who Does Marketing?

Review Questions:
1. What types of companies engage in marketing?
Answer:
Types of nonprofit organizations that may engage in marketing include schools and colleges, hospitals,
museums, charitable organizations, and churches, among others. As the terms denote, the difference
between for-profit and nonprofit marketing is in the organization's primary objective.

2. What is the difference between nonprofit marketing and social marketing?

Answer:
The nonprofit marketing title refers to any advertising that markets a socially-oriented offer. ... Social
marketing is a strategy used by profit-oriented companies that want to improve their own image
through social campaigns. Nonprofit marketing must not be confused with social marketing. Social
marketing is a strategy used by profit-oriented companies that want to improve their own image
through social campaigns.

3. What can individuals do for themselves that would be considered marketing?

 Answer:
Personal marketing is a strategy that serves to strengthen the image and reputation of a professional in
the job market. When applied correctly, it helps to generate authority, transforming these professionals
into a reference in their niche. It’s no use being an excellent, competent, punctual, and efficient
professional if nobody knows it. It’s necessary that your colleagues, managers, suppliers, customers, and
other companies know and value your capabilities too. And that’s where personal marketing comes in!
Chapter 1.3 Why Study Marketing?
Review Questions:

1. Why study marketing?

Answer:
A marketing degree, even if it is not utilized in a traditional business setting, equips students to act as
well-rounded, critical thinkers. Not only do marketers present impeccable skills in data interpretation,
but they also offer the higher-level thinking that turns analytics into strategy.

2. How does marketing provide value?

Answer:
By facilitating transactions, marketing delivers value to both consumers and firms. At the broader level
this process creates jobs and improves the quality of life in a society.

3. Why does marketing cost so much? Is marketing worth it?

Answer:
Marketing results in more informed consumers receiving a greater amount of value. It is the one
function in the organization in which the entire business comes together. Being responsible for both
money making for the business and delivering satisfaction to customers, makes marketing a great
career. Examples of careers in marketing; marketing research, merchandise, sales, advertising, product
development, digital media etc.

Chapter 1.4 Themes and Organization of This Book

Review Questions:

1. Why does everything start with customers? Or is it only marketing that starts with customers?
Answer:

The consumer desires something. You market that something to appeal for a broader and more
sustainable market not just for that one consumer, but for more than the one. The consumer buys that
product now feeling more empowered by your marketing efforts and no longer experiences buyers
remorse thereby having a far better buying experience.

2. What are the key parts of a marketing plan?

Answer:

The marketing plan is the strategy for implementing the components of marketing: creating,
communicating, delivering, and exchanging value. Once a company has decided what business it is in
and expressed that in a mission statement, the firm then develops a corporate strategy. Marketing
strategists subsequently use the corporate strategy and mission and combine that with an
understanding of the market to develop the company’s marketing plan.

3. What is the relationship between social responsibility, sustainability, service-dominant logic, and
the global business environment? How does the concept of metrics fit?
Answer:

The relationship between them is that they are changing marketing of environment. Metrics are the
technology has increased the amount of information available to decision makers. As such, the amount
and quality of data for evaluating a firm’s performance is increasing. Earlier in our discussion of the
marketing plan, we explained that customers communicate via transactions. Although this sounds both
simple and obvious, better information technology has given us a much more complete picture of each
exchange.

Chapter 2: Strategic Planning

Chapter 2.1 The Value Proposition
Review Questions:

1. What is a value proposition?

Answer:
A value proposition is a promise of value to be delivered, communicated, and acknowledged. It is also a
belief from the customer about how value will be delivered, experienced and acquired. A value
proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or
services.

2. You are interviewing for an internship. Create a value proposition for yourself that you may use as
your thirty-second “elevator speech” to get the company interested in hiring you or talking to you
more.
Answer:
I'm Monalisa T. Mesa, I'm a fast learner, self-motivated, and willing to be trained. Can work
independently, leader or part of a team. Can work under pressure. Good at decision-making and
time-management.

Chapter 2.2 Components of the Strategic Planning Process

Review Questions:
1. What factors in the external environment are affecting the “Big Three” U.S. automobile
manufacturers?
Answer:
The factors in the external environment that are affecting the "Big Three" U.S. automobile
manufacturers (which are Ford, Chrysler, and General Motors) are consumers reducing their spending,
holiday sales dropping, financial institutions going bankrupt and the mortgage industry collapsing.

2. What are some examples of Wal-Mart’s strengths?

Answer:
Some of the internal strength of Wal-Mart are; the largest retailer in the world, global expansion,
inventory and distribution systems, different types of stores and networks, online shopping and
technology.

Chapter 2.3 Developing Organizational Objectives and Formulating

Strategies
Review Questions:

1. How do product development strategies differ from market development strategies?

Answer:
The key difference between product development and market development is that product
development is a strategy that focuses on developing new products in existing markets whereas market
development strategy identifies and develops new market segments for existing products.

2. Explain why some strategies work for some companies but not others.
Answer:
Many strategy execution processes fail because the firm does not have something worth executing.

3. What factors do firms entering foreign markets need to consider?

Answer:
Some of the factors that companies should consider before attempting to enter foreign markets are
local culture, customs, business practices prevailing in the foreign markets that makes it unique or
different from other markets, attitude of the government and consumers towards foreign companies,
economic and political scenario prevailing in the country, regulations .

4. How do franchising and licensing strategies differ?

Answer:
On the most basic level, the difference between a franchise and a license is the amount of support you
can expect to receive. A franchised system will provide you with support in site selection, training,
marketing and much more, whereas a licensing agreement provides you with little to none of that.

2.4 Where Strategic Planning Occurs within Firms

Review Questions:
1. What different levels of planning can organizations utilize?
Answer:
There are three major types of planning, which include operational, tactical and strategic planning. A
fourth type of planning, known as contingency planning, is an alternative course of action, which can be
implemented if and when an original plan fails to produce the anticipated result.

2. Give an example and explain how a corporation that wants to help protect the environment can do
so at its corporate, business, and functional levels.
Answer:
They are definitely responsible for not hurting it further, or at least repairing the damage after they have
extracted whichever resource they were chasing, and I think they should also bear responsibility for the
environmental damage done through the use of their products (like cars). Responsibility for helping
though is a trickier concept. It would be tough to justify a requirement to help the environment over and
above any damage done, and yet, this is the role of the government and legislation. An audited
requirement to help 10% more than it hurts, for example. Ultimately no, they are not solely responsible.
Governments and individuals still need to do their part.

2.5 Strategic Portfolio Planning Approaches

Review Questions:

1. How would you classify a product that has a low market share in a growing market?
Answer:
We can classify a product by using BCG growth share matrix is a planning tool that uses graphical
representations of a company’s products and services in an effort to help the company decide what it
should keep, sell, or invest more in.

2. What does it mean to hold market share?

Answer:
Say, for example, the purchasing activity of consumers as a whole is 100 tubes of toothpaste, and a
certain toothpaste maker sells 60 tubes. It implies that the company holds a 60% market share. The
calculation of market share takes into consideration a company’s total sales over a particular time
period and the total sales of the industry in which it operates over that period.

3. What factors are used as the basis for analyzing businesses and brands using the BCG and the GE
approaches?
Answer:
The two dimensions on which BCG matrix is based are market growth and market share. Conversely,
industry attractiveness and business strengths are two factors of GE matrix. BCG matrix is used by the
companies to deploy their resources among various business units.

Chapter 3: Consumer Behavior: How People Make Buying Decisions

3.1 Factors That Influence Consumers’ Buying Behavior
Review Questions:
1. Explain what physical factors, social situations, time factors, and/or moods have affected your buying
behavior for different products.
Answer:
Situational influences are temporary conditions that affect how buyers behave—whether they actually buy
your product, buy additional products, or buy nothing at all from you. They include things like physical
factors, social factors, time factors, the reason for the buyer’s purchase, and the buyer’s mood. You have
undoubtedly been affected by all these factors at one time or another.

2. Explain how someone’s personality differs from his or her self-concept. How does the person’s ideal
self-concept come into play in a consumer behavior context?
Answer:
One of the most commonly studied variables believed to impact consumer behavior is self-concept. The
concept of “self” has been defined and studied in many ways, and a number of self-concept theories exist.
Most scholars agree that self-concept can be broadly described using Rosenberg’s (1979) definition: “the
totality of the individual’s thoughts and feelings having reference to himself as an object” (as cited in Sergey,
1982). Zink ham and Hong (1991) proposed that the self-concept is a cognitive structure that is associated
with behavior and feelings.

3. Describe how buying patterns and purchase decisions may vary by age, gender, and stage of life.
Answer:
As we purchase daily necessities we can become selective in what we want. And we consumers also depend
on our age level and status in life. Age and state in life factor a lot into what we want. And at each of these
levels, our preferences also vary. There are times when we keep up with the trend today and sometimes we
look more dependent on our ability to shop.

4. Why are companies interested in consumers’ cognitive ages and lifestyle factors?
Answer:
Companies become interested in the ages of consumers because here they get ideas of what is more in
demand and what kind of methods can help to enjoy the products their companies will release. So that it
will be more marketable and more enjoyed by consumers.

5. How does the process of perception work and how can companies use it to their advantage in their
marketing?
Answer:
Perception is a process by which companies maintain their advantage in the growth of an organization. It’s
one of their ways to find out the pros and cons to their company and to the consumers who will enjoy the
products they release.

6. How do Maslow’s hierarchy of needs and learning affect how companies market to consumers?
Answer:
Maslow's hierarchy of needs provides special insight into the crafting of a buyer persona, offering a focal
point that makes sense of a customer's motivations. It can help you to align each quality you identify of your
idealized buyer with a specific need, making for a more realistic and effective buyer persona.

7. Why do people’s cultures and subcultures affect what they buy?

Answer:
A person’s culture has a huge influence on their thought processes and behaviors. Because it’s so influential
on how people perceive the world around them, their place in it, and how they make decisions, it tends to
play a role in determining how and why we consume goods and services. Understand the cultural
fundamentals is one way to start a journey of discovery when you enter a new market. There’s been plenty
of research in this area but translating academic research into actionable insights for your brand remains a
huge challenge. It’s the reason many very brands have failed to successfully expand into new markets.

8. How do subcultures differ from cultures? Can you belong to more than one culture or subculture?
Answer:
A subculture is a self-organized tradition of shared interests, lifestyles, beliefs, customs, norms, style or
tastes. A culture is a shared social tradition that may include language, social norms, beliefs, art, literature,
music, traditions, pastimes, values, knowledge, recreation, mythology, ritual and religion.

9. How are companies trying to reach opinion leaders?

Answer:
More companies trying to reach opinion leaders because opinion leaders can validate a company's product
or idea, marketers often seek out opinion leaders for collaborations, advertising campaigns, or product
endorsements. This kind of partnership both increases a brand's visibility and builds trust between the
business and the influencer's audience.

3.2 Low-Involvement Versus High-Involvement Buying Decisions and

the
Consumer’s Decision-Making Process
Review Questions:

1. How do low-involvement decisions differ from high-involvement decisions in terms of relevance,

price, frequency, and the risks their buyers face? Name some products in each category that you’ve
recently purchased.
Answer:
High-involvement decisions are those that are important to the buyer. These decisions are closely tied to
the consumer’s ego and self-image. They also involve some risk to the consumer. This may include
financial risk (highly priced items), social risk (products that are important to the peer group), or
psychological risk (the wrong decision may cause the consumer some concern and anxiety). In making
these decisions, consumers generally feel it is worth the time and energy needed to do research and
consider solution alternatives carefully. Low-involvement decisions are more straightforward, require little
risk, are repetitive, and often lead to a habit. In effect, these purchases are not very important to the
consumer. Financial, social, and psychological risks are not nearly as great. In these cases, it may not be
worth the consumer’s time and effort to search for exhaustive information about different brands or to
consider a wide range of alternatives. A low-involvement purchase usually involves an abridged decision-
making process.

2. What stages do people go through in the buying process for high-involvement decisions? How do the
stages vary for low-involvement decisions?
Answer:
The five-stage process that specifically relates to high involvement decision making consists of problem
recognition, information search, evaluation of alternatives, purchase decision, and post purchase
evaluation.

3. What is post purchase dissonance and what can companies do to reduce it?
Answer:
Post-purchase dissonance is one of the most common phrases heated by almost every eCommerce
website owner. If your customer comes across any post-purchase dissonance then it will directly affect
the credibility and value of your ecommerce website. Most of the time-poor service and quality of the
product gives rise to the post-purchase dissonance feeling in the mind of your customer. Wherever your
customer complains about your product and service try to attend your customer and find a valid solution
for the issue. Ignoring customer issues can directly affect your future sales and customer acquisition rate.
To avoid post-purchase dissonance try to educate your customers about the product after they
successfully purchase the product form your ecommerce store.

Chapter 4: Business Buying Behavior

4.1 The Characteristics of Business-to-Business (B2B) Markets
Review Questions:

1. Why are there more transactions in B2B markets than B2C markets? Why are there fewer buyers?
Answer:
Marketing business-to-business (B2B) is different from marketing business-to-consumer (B2C). Although
you still are selling a product to a person, experience shows that the difference between these two
types of markets runs deep. It is true that the cost of a sale for the B2B market can be more expensive
than the B2C market. The easiest way to explain this is that a B2B transaction often takes more
consideration, involves more people, and requires more decision-makers. B2B clients often need to
prove a return-on-investment for their purchase.

2. Explain what derived demand is.

Answer:
Derived demand is related solely to the demand placed on a good or service for its ability to acquire or
produce another good or service. Derived demand can be spurred by what is required to complete the
production of a particular good, including the capital, land, labor, and necessary raw materials. In these
instances, the demand for raw material is directly tied to the demand for products that require the raw
material for their production.

3. Why do firms experience a bullwhip effect in the demand for their products when consumers
demand changes?
Answer:
The bullwhip effect often occurs when retailers become highly reactive to demand, and in turn, amplify
expectations around it, which causes a domino effect along the supply chain. At every stage of the
supply chain there are possible fluctuations and disruptions, which in turn influence the myriad supplier
orders.
4.2 Types of B2B Buyers
Review Questions:
1. What sorts of products do producers buy?
Answer:
Producers buy goods and services and transform them into a sellable product, which they sell to their
customers for the purpose of making a profit. Examples of producers are farmers, manufacturers and
construction companies.

2. What role do resellers play in B2B markets, and why are they important to sellers?
Answer:
Resellers play the role in B2B market is to sell goods and services produced by other firms without
materially changing them. They include wholesalers, brokers, and retailers. Resellers buy finished
products and resell them to their customers for the purpose of making a profit. Resellers do not modify
the products they buy.

3. How do sellers find government buyers? Institutional buyers?

Answer:
Government buying practices often seem complex and frustrating to suppliers, who have voiced many
complaints about government purchasing procedures. Those include too much paperwork and
bureaucracy, needless regulations, emphasis on low bid prices, decision-making delays, frequent shifts
in buying personnel and too many policy changes.q1

4. Why is it difficult to figure out whom to call on in business markets?

Answer:
It is difficult to figure out whom to call on in business markets because it is not always obvious who is in
charge of the purchasing decisions for an organization.

4.3 Buying Centers

Review Questions:

1. Which people do you think have the most influence on the decisions a buying center makes? Why?
Answer:
Users are the people and groups within the organization that actually use the product. Frequently, one
or more users serve as an initiator in an effort to improve what they produce or how they produce it,
and they certainly have the responsibility for implementing what is purchased. Users often have certain
specifications in mind for products and how they want them to perform. An example of a user might be
a professor at your school who wants to adopt an electronic book and integrate it into his or her online
course.

2. Describe the duties of professional buyers. What aspects of their jobs seem attractive? Which
aspects seem unattractive to you?
Answer:
There are a lot of professional buyers in the market. They give producers an idea of what the innovative
trends are, what prices should be assigned to the products, and what quality should be of them to be
more enjoyed by professional buyers in the market.
3. How do personal and interpersonal dynamics affect the decisions buying centers make?
Answer:
Interpersonal factors among the people making the buying decision often have an impact on the
products chosen, good or bad. However, other people in the unit might resent the power he or she
wields and insist on a different offering, even if doesn’t best meet the organization’s needs. Savvy B2B
marketers are aware of these dynamics and try their best to influence the outcome. Personal factors
play a part. B2B buyers are overwhelmed with choices, features, benefits, information, data, and
metrics. They often have to interview dozens of potential vendors and ask them hundreds of questions.
No matter how disciplined they are in their buying procedures, they will often find a way to simplify
their decision making either consciously or subconsciously.

4.4 Stages in the B2B Buying Process and B2B Buying Situations
Review Questions:

1. What buying stages do buying centers typically go through?

Answer:
Most of us before we buy a product, it first goes through a test to see if it is worth the expense. We do
this to make sure we make the right decision in buying the right products. This is one way of shopping
stages.

2. Why should business buyers collaborate with the companies they buy products from?
Answer:
They do this to ensure that the product they buy is of high quality and priced right based on its quality.

3. Explain how a straight rebury, new buy, and modified rebury differ from one another.
Answer:
A straight rebuy is when a company places a second order with a supplier that is identical to the first
purchase it made. A modified rebuy is when a company orders again from a supplier, but wants to
change some aspect of the order, such as the quantity, packaging, product features, or delivery times.

4.5 International B2B Markets and E-commerce

Review Questions:

1. Name some other industries you’re aware of in which companies tend to cluster geographically. Why
are the companies in these industries located near one another?
Answer:
Pearl River Delta in China that attract a large number of workers, Ginza Luxury shopping district of Tokyo
and Champaign wine region of France.

2. How do B2B exchange sites differ from B2B auction sites?

Answer:
B2B exchanges are e-commerce sites where multiple buyers and sellers go to find and do business with
one another while, B2B auctions are Web-based auctions that occur between businesses. The auctions
can be either sell side or buy side.

3. How can firms that sell their products on the Internet prevent their prices from being driven down
by competitors?
Answer:
In this kind of market that the internet is used to sell their products, I think they are losing out not on
price but on the service they provide to customers to avoid price competition. So even if we say that the
price of a product is a bit high but you are worth the service provided by the supplier, you will probably
buy and still buy.

4.6 Ethics in B2B Markets

Review Questions:

1. Name some of the types of ethical dilemmas facing firms in B2B markets.
Answer:
Some ethical problems in market research are the invasion of privacy and stereotyping. The latter
occurs because any analysis of real populations needs to make approximations and place individuals
into groups. However, if conducted irresponsibly, stereotyping can lead to a variety of ethically
undesirable results.

2.Whyisitdifficultforemployeesandfirmstoknowwhat’sconsideredtobeethicalbehaviorandwhatisnot?
Answer:
People and places tend to get greedy. They compromise their integrity and it becomes more difficult to
stop the boulder from rolling downhill. People know what ethical behavior is, they just choose to ignore
it or flat out reject it by making excuses.
Chapter 5: Market Segmenting, Targeting, and Positioning

5.1 Targeted Marketing versus Mass Marketing

Review Questions:

1. Using the shotgun and rifle analogy, how do mass marketing, targeted marketing, and one-to-one
marketing compare with one another?
Answer:
Mass Marketing: Shotgun Approach: blast out as many marketing messages as possible on every
medium available as often as you can afford. Targeted Marketing: Rifle Approach: take careful aim at
one type of customer with your message. One-to-One Marketing: Rifle Approach: have the advantage of
a scope

2. How is technology making it easier for firms to target potential customers?

Answer:
-Technology helps a lot and makes it easier for small companies and entrepreneurs to gather
information about potential customers. Companies are using the Internet to track people's web
browsing patterns and segment them into groups that can be marketed to.

3. Outline the steps companies need to take to engage in one-to-one marketing with their customers.
Answer:
1. Establish short-term measures to evaluate your efforts: Determine how you will measure your effort.
2. Identify your customers: Gather all the information you can about your current customers, including
their buying patterns, likes, and dislikes.
3. Differentiate among your customers: Determine who your best customers are in terms of what they
spend and will spend in the future.
4. Interact with your customers, targeting your best ones: Find ways and mediums in which to talk to
customers about topics they're interested in and enjoy.
5. Customize your products and marketing messages to meet their needs: Try to customize your
marketing messages and products in order to give your customers exactly what they want.

5.2 How Markets Are Segmented

Review Questions:

1. What buyer characteristics do companies look at when they segment markets?

Answer:
there are so many different consumers out there, it’s important to segment your market into smaller
sections. That way, you can create marketing and sales messaging that resonates specifically with them.
Common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common
examples of market segmentation include geographic, demographic, psychographic, and behavioral.

2. Why do firms often use more than one segmentation base?

Answer:
A firm will often use multiple segmentation bases, or criteria to classify buyers, to get a fuller picture of
its customers and create real value for them. Each variable adds a layer of information. ... “Big-and-tall”
stores cater to the segment of population that's larger sized.

3. What two types of information do market researchers gather to develop consumer insight?
Answer:
The two types of information that the market researchers do to gather consumer insight are the
quantitative and qualitative information.

5.3 Selecting Target Markets and Target-Market Strategies

Review Questions:

1. What factors does a firm need to examine before deciding to target a market?
Answer:
These factors include gender, age, income levels, race, education, religion, marital status, and
geographic location. Consumers that fall into these groups tend to value the same products and
services, which is why narrowing down these segments is one of the most important factors to
determine target markets.

2. Which of the segmenting strategies discussed in this section is the broadest? Which is the
narrowest?
Answer:
A multisegment marketing strategy can allow a company to respond to demographic and other changes in
markets, including economic downturns. Concentrated marketing involves targeting a very select group of
customers.

3. Why might it be advantageous to create low-cost products for developing countries and then sell
them in nations such as the United States? Do you see any disadvantages of doing so?
Answer:
A nation’s competitiveness depends on the capacity of its industry to innovate and upgrade. Companies
gain advantage against the world’s best competitors because of pressure and challenge. They benefit from
having strong domestic rivals, aggressive home-based suppliers, and demanding local customers.

5.4 Positioning and Repositioning Offerings

Review Questions

1. Why do companies position products?

Answer:
Product positioning is a very important tool for an effective marketing strategic planning. Product
positioning creates an image of the company’s products in the mind of consumers, highlighting the most
important benefits that differentiate the product from similar products in the market. Product
positioning involves identifying points of parity and points of differentiation that enable a company’s
product to both meet market standards while offering consumers additional value on key dimensions
such as quality, innovation, price, leadership, and functionality, among others.

2. Explain what a tagline is designed to do.

Answer:
In business, a tagline is one or two phrases that provides clarity, entertainment, or emphasis to help
highlight a brand's mission, purpose, or culture. Taglines help consumers feel more connected to
brands. You might have noticed that, in television commercials, taglines are repeated multiple times.

3. Why might an organization reposition a product?

Answer:
Repositioning enables companies to change the way customers associate with their brands and
products. ... If developed effectively and implemented successfully, the result is a renewed customer
perception — helping brands to compete more effectively through distinction.

Chapter 6: Creating Offerings

6.1 What Composes an Offering?
Review Questions:
1. How do the product-dominant and service-dominant approaches to marketing differ?
Answer:
The product-dominant marketing perspective has its roots in the Industrial Revolution. During this era,
businesspeople focused on the development of products that could be mass produced cheaply. In other
words, firms became product-oriented, meaning that they believed the best way to capture market
share was to create and manufacture better products at lower prices. While taking a product-oriented
approach can result in marketing professionals focusing too much on the product itself and not enough
on the customer or service-related factors that customers want.

2. Do “product-dominant” and “product-oriented” mean the same thing?

Answer:
From the traditional Product dominant perspective of business, marketers consider products, services,
and prices as three separate and distinguishable characteristics. Product oriented, meaning that they
believed the best way to capture market share was to create and manufacture better products at lower
prices.

3. What is the difference between a technology platform and a product line?

Answer:
Technology Platform refers to the specific platforms on which technical architecture is laid out and is
made to run. This type of platform mostly consists of mixture of hardware and software services. While
a product line is a group of related products all marketed under a single brand name that is sold by the
same company. Companies sell multiple product lines under their various brand names, seeking to
distinguish them from each other for better usability for consumers.

4. Does a product line have to be built on one technology platform?

Answer:
Businesses are constantly making decisions about which products and services will attract customers. In
an era driven by the mantra of “give customers what they want,” some businesses feel compelled to
offer many different versions of their products. That's why I think a product line have to built not just
only in one technology platform for better usability for consumers.

5. What is the difference between product depth and product breadth?

Answer:
Product depth is the number of versions of a product that a firm offers. This introduces variety to satisfy
diverse customer needs and reach more target markets. In some cases, product depth also allows a
large firm to gain market share by competing with itself to squeeze out real competition.And the
Product breadth, which is the variety of product lines in a store. Product breadth is all about how wide
and diverse an assortment is. A retailer that sells many different types of products is considered to have
a large product breadth.

6.2 Types of Consumer Offerings

Review Questions
1. What are the four types of consumer offerings? How do they differ from one another?
Answer:
The four types of consumer offerings are: convenience, shopping, specialty, and onslaught. A
convenience product is a consumer product that takes little thought, is routine, purchased often,
appeals to a large target market, and the consumer purchases with little planning. A shopping product is
a type of product that requires consumer research and comparison of brands. Homogeneous and
heterogeneous are the two specific types of shopping products. Homogeneous products are perceived
by consumers as very similar in nature and the final purchase is usually determined on the lowest price.
Specialty products are products where consumers are concerned with brand image and the quality of
their purchases. Consumers really do not want substitutes and are brand loyal. And Unsought Offerings:
those that buyers do not usually want to have to shop for until they need them .

2. Is it possible for cemetery plots or caskets to be a shopping good or a specialty good? Or are they
always unsought goods?
Answer:
I think yes.

6.3 Types of Business-to-Business (B2B) Offerings

Review Questions:

1. What types of offerings do businesses buy? How do the offerings differ in terms of how they are
marketed?
Answer:
-capital equipment offerings,-raw materials offerings,-original equipment manufacturer (OEM)
offerings,-maintenance, repair, and operations (MRO) offerings,-facilitating offerings.

2. As you learned early in the chapter, consumer offering can belong to different categories depending
on how the buyer wants to purchase them. Is the same true for business offerings?
Answer:
I think yes.

6.4 Branding, Labeling, and Packaging

Review Questions:

1. How do brands help companies market their products?

Answer:
Branding has always been a vital part of business, but it may be more important now than ever before.
With social media, consumers get exposed to new brands every day. This can be great for consumers
who have plenty of options and are able to do research to find the best one, but it makes it harder for
businesses.

2. What is the purpose of a brand extension?

Answer:
One of the most common ways for an established brand to achieve meaningful growth is through brand
extensions, it is a strategy used in marketing. A company which is already branded in the market with a
pre-defined image will make use of the same brand name to market a different product category. By
using the new product category linked with the existing brand name, the market reach of the new
product can be made easy. Since the market is already aware of the existing products that are
associated with the brand, the new product will reach out faster to the customers.

3. Name the basic types of packaging used in marketing.

Answer:
In general, there are three levels of packaging, and they’re called Primary, Secondary, and Tertiary. Each
of these packaging types has a different purpose, they’re made from different materials, they’re packed
and shipped differently, and they’re seen by different people in the marketplace.

6.5 Managing the Offering

Review Questions:

1. What is a brand manager?

Answer:
The role of a Brand Manager is to develop a brand strategy for a company. Brand managers oversee a
wide array of business functions including branding, communication channels, product development,
online and offline promotions, and market research. They often conduct market research for a company.
This involves surveying and polling demographics, determining demand for products, and other relevant
field research. Brand managers typically manage a team that supports their efforts and report to higher
level marketing staff of an organization.

2. How do brand managers differ from category managers?

Answer:
Category Manager develops the overall strategy for a product category and researches new product
options in the category to drive sales and achieve targets. Leads a team that provides category insights
and proposals by analyzing marketing and customer data and monitoring relevant market conditions.

3. What is a market manager?

Answer:
A marketing manager is responsible for managing the promotion and positioning of a brand or the
products and services that a company sells. Typically marketing managers are employed to attract more
customers to buy from the company and to raise brand awareness through the creation of marketing
campaigns.

4. Which type of manager has the most marketing responsibility?

Answer:
The kind of manager that has most marketing responsibility is the marketing manager because he has all
the responsibility of management and entire marketing resources and activities.
Chapter 7: Developing and Managing Offerings
7.1 The New Offering Development Process
Review Questions:
1. What are the seven steps in the offering development process? What are the key activities in each
step?
Answer:
Here's the 7 steps in the offering development process and its activities; 1. Idea Generation: the basic
idea is created and described 2. Idea Screening: the costs, profits and potential sales of the offering are
calculated at different price levels 3. Feature Specification: detailed specifications for the product are
developed 4. Development: the actual offering is created 5. Testing: the offering is tested 6. Launch
(commercialization): offering is made available to consumers 7. Evaluation: offering is evaluated

2. Who are lead users?

Answer:
Lead Users are referred to as people who deal intensively with a problem in a special scope for which
there is no suitable solution existing on the market. The term is used both for business and private
customers. It applies to both the physical goods sector, as well as for services.
3. How should a company evaluate new ideas? What are the criteria?
Answer:
The following are some criteria that you should consider. Clarity, usability, stability, scalability,
stickiness, integration, and profitability.

4. How does quality function deployment work?

Answer:
QFD Also called: matrix product planning, decision matrices, customer-driven engineering is a focused
methodology for carefully listening to the voice of the customer and then effectively responding to
those needs and expectations. In QFD, quality is a measure of customer satisfaction with a product or a
service. QFD is a structured method that uses the seven management and planning tools to identify and
prioritize customers’ expectations quickly and effectively.

7.2 Managing New Products: The Product Life Cycle

Review Questions:

1. Explain what a firm that sells a product with a limited life cycle (such as software) should do in each
stage so there is not a lot of inventory left over when a newer version is introduced?
Answer:
Software should be distributed digitally. You only need one copy of it in inventory for download. When a
new version is introduced you replace the one copy with the newer one. But typically a few older
versions are kept available in case a bad bug is discovered. If you really need to ship physical product it
should be able to update itself so you don’t have to ship updates physically. You can adjust production
of physical product by analyzing the lead time on your typical sales cycle, or analyze the relationship
between marketing/advertising and sales.

2. Explain why the marketing costs related to a product are typically higher during the introduction
stage and why companies must generate awareness of the new product or service and encourage
consumers to try it.
Answer:
Marketing costs are typically higher in this stage than in other stages. ... Profits are often low in the
introductory stage due to the research and development costs and the marketing costs necessary to
launch the product. The length of the introductory stage varies for different products.

3. Explain why and when penetration and skimming pricing are used in the introduction stage.
Answer:
Penetration Pricing involves using a low initial price to encourage many customers to try a product
Skimming Pricing: involves setting a high initial price for a product, to more quickly recoup the
investment related to its development and marketing Organizations want consumers to perceive that a
new offering is better or more desirable than existing products.

4. What stage of the life cycle is a product in when the company cannot meet the demand for it and
competitors begin to enter the market?
Answer:
The Maturity Stage. After many competitors enter the market and the number of potential new
customers declines, the sales of a product typically begin to level off. This indicates that a product has
entered the maturity stage. of its life cycle.

5. What different strategies do firms use to extend the life cycles of their products throughout the
maturity stage?
Answer:
Product growth strategies
adding new product features or support services to grow your market share. entering new markets
segments. keeping pricing as high as is reasonable to keep demand and profits high. increasing
distribution channels to cope with growing demand.

6. How did Kraft extend the mature stage of the product life cycle of Wheat Thins crackers?
Answer:
Modifying the product, such as changing its packaging, size, flavors, colors, or quality can also extend the
product's maturity stage. ... Kraft Foods extended the mature stage of different crackers such as Wheat
Thins and Triscuits by creating different flavors.

7. Explain the difference between harvesting and a divesting when a firm enters the decline stage.
Answer:
While the motive in harvest is to achieve the maximum yields from the sale of products and services at
the end of their cycle, the motive in divest is to sell businesses that are no longer part of the major
operation, source for funds, enhance stability in the firm, eliminate an under-performing divisions, and
social reasons such as global warming.

Chapter 8: Using Marketing Channels to Create Value for Customers

8.1 Marketing Channels and Channel Partners
Review Questions:
1. Why are marketing channel decisions as important as pricing and product feature decisions?
Answer:
Marketing channel decisions are as important as the decisions companies make about the features and
prices of products. Companies try to choose the best channels and channel partners to help them sell
products because doing so can give them a competitive advantage.

2. What are the benefits of looking at all of the organizations that contribute to the production of a
product versus just the organizations that sell them?
Answer:

3. Why do channel partners rely on each other to sell their products and services?
Answer:
It's tough to rely on others to sell for you, but in many industries, it's vital to pass trust from your
partners and their relationships to your brand.

4. How do companies add value to products via their marketing channels?

Answer:
Goods and services are, of course, of no good to consumers until the consumers can actually have
access to them. Distribution (or its more sophisticated counterpart, supply chain management) can add
value to goods and services by making them more easily and conveniently available to consumers. Even
if a producer has a product or service that consumers would really want, it is of no use unless it can get
to them quickly and conveniently.

8.2 Typical Marketing Channels

Review Questions:

1. Why are direct marketing channels possible for some products and not others?
Answer:
This is because it relies on the proximity between the firm and the market. For example,the firms that
are located far away from the market and offer durable products may not use the direct marketing as it
would be more costly.

2. Explain the value middlemen can add to products.

Answer:
A middleman core functionality is to get goods delivered to the consumers where and when they want
them. In other to achieve this middleman buy the products from the producers, store them as they
search for viable markets, and then have the products transported to the consumers. This make the
middlemen of much important value in the market. Both producers and consumers gain tremendously
from the role played by a middle man who makes sure that there is a seamless flow of goods in the
market by matching supply and demand.

3. Name some companies that have multiple marketing channels for their products. What are those
channels?
Answer:
Here are some companies that have multiple marketing channels; Apple, Starbucks, Disney, Under
Armour, and Bank of America have in common? They all make hundreds of millions of dollars of sales
while offering an incredible user experience due to multi-channel marketing. Today, our goal is to take
you through how these companies are succeeding with multi-channel marketing.

4. How do marketing channels differ around the world? Why is it sometimes hard for firms to
penetrate foreign markets?
Answer:

8.3 Functions Performed by Channel Partners

Review Questions:

1. Explain the difference between a pull and a push strategy when it comes to marketing
communications.
Answer:
Push strategy: Uses the sales force and trade promotion to push the product through channels. Pull
strategy: Marketing activities are directed toward final consumers to induce them to buy.

2. Why is taking ownership of products an important marketing channel function?

Answer:
The primary purpose of any channel of distribution is to bridge the gap between the producer of a
product and the user of it, whether the parties are located in the same community or in different
countries thousands of miles apart. The channel of distribution is defined as the most efficient and
effective manner in which to place a product into the hands of the customer. The channel is composed
of different institutions that facilitate the transaction and the physical exchange.

3. Which firms manage inventory in marketing channels?

Answer:
Most channel members stock, or “carry,” reserve inventory. Some companies, put their suppliers in
charge of their inventory. Losing inventory or having it damaged or spoiled can wreak havoc on a
company’s profits. So can not getting products on time or being able to get them at all when your
competitors can.

8.4 Marketing Channel Strategies

Review Questions:

1. Why are good channel decisions critical to a product’s success?

Answer:
Selecting the best marketing channel is critical because it can mean the success or failure of your
product. One of the reasons the Internet has been so successful as a marketing channel is because
customers get to make some of the channel decisions themselves. They can shop virtually for any
product in the world when and where they want to, as long as they can connect to the Web. They can
also choose how the product is shipped.

2. Name the factors that affect channel-selection decisions.

Answer:
Market Factors. Type of Consumer. - Industrial - needs more service. ...
Product Factors. Complexity, Customization & Expensiveness. ...
Producer Factors. Resources: the more financial, managerial, marketing resources — the more direct channels
should be used.

3. Which kinds of products are more likely to be distributed using exclusive marketing strategies?
Answer:
These are Luxury automobile companies, designer clothing or even expensive mobile phone brands are
likely to make the best of this strategies. Granting exclusive distribution enables companies to harbor
control over promotion, service policies, intermediary's price and several other factors.

8.5 Channel Dynamics

Review Questions:

1. What gives some organizations more channel power than others?

Answer:
In order for the company to help they are granted some power over the other. Channel power can also
arise through identification of a brand through other well- known and well-received [by customers]
channels.

2. Why do channel conflicts occur?

Answer:
Channel conflict occurs when manufacturers (brands) disinter mediate their channel partners, such as
distributors, retailers, dealers, and sales representatives, by selling their products directly to consumers
through general marketing methods and/or over the Internet.

3. Which organization(s) has the most power to resolve channel conflicts?

Answer:
Other methods that can help reduce channel conflict include segmenting products by seller type (direct
or channel), or making certain geographical or vertical territories exclusive to certain sellers.

4. How can setting up vertical and horizontal marketing systems prevent channel conflicts?
Answer:
Conflicts can arise between different manufacturers, wholesalers or retailers providing similar services,
depending on the situations, according to Management Study. Horizontal conflict is usually not good for
a small business. Fortunately, there are ways of resolving or mitigating horizontal conflict to the benefit
of all conflicting parties. Horizontal channel conflicts occur when an issue arises with multiple
manufacturers selling through the same or different wholesalers and retailers.

Chapter 9: Using Supply Chains to Create Value for Customers

9.1 Sourcing and Procurement
 Review Questions:

1. What are some of the supply chain functions firms outsource and offshore?
Answer:
Procurement is the process of actually purchasing those goods and services. Sourcing and procurement
have become a bigger part of a supply manager’s job in recent years, in part because businesses keep
becoming more specialized. Just like Ford’s workers became more efficient by performing specialized
tasks, so, too have companies.

2. How does outsourcing differ from off shoring?

Answer:
Outsourcing is when a company negotiates a contract with a third party to perform a specific function.
When outsourcing a process or operation, it is vital to find a company or person that specializes in the
task at hand. However, off shoring is when a company sends in-house jobs to be performed in another
country.

3. Why might a company be better off in sourcing an activity?

Answer:
Typically, with in sourcing, companies get better control over their decision-making and the ability to
attend to their tasks promptly and precisely. In the case of outsourcing, you're far off the staff working
for you, making it inconvenient to trace the quality of the work.

9.2 Demand Planning and Inventory Control

Review Questions:

1. Why are demand forecasts made more frequently than sourcing decisions?
Answer:
Demand planning is the process of estimating how much of a good or service customers will buy from
you. If you’re a producer of a product, this will affect not only the amount of goods and services you
have to produce but also the materials you must purchase to make them.

2. How can just-in-time and vendor-managed inventories add value to products for customers?
Answer:
A pure JIT model certainly addresses the issue of inventory elimination, but the risk is just too great
when dealing with suppliers, production variances and capricious clients in multiple countries. Like any
business practice, inventory management is in a state of constant flux, with companies always looking
for new methods and tactics to improve performance. Vendor-managed inventory (VMI), a fairly new
practice for global operations, borrows from the past, benchmarks Efficient Consumer Response/Quick
Response and employs new ways to bring inventory benefits to suppliers, manufacturers and,
ultimately, the end user.

3. Why and how do companies track products?

Answer:
Small businesses often use a stock book, or log book, to keep track of inventory. The number of
inventory items is listed in one column in the book, and sales are written in another column. This allows
managers to keep track of how many items have been sold. This can also be done on computer.

9.3 Warehousing and Transportation

Review Questions:

1. How do warehouses and distribution centers differ?

Answer:
Commonly, the warehouse is used to store goods while distribution centers have additional services
such as product mixing, order fulfillment, cross-docking, packaging, and others. ... Then, the warehouse
usually does not accept external customers, while the distribution center accepts orders from external
customers.

2. What is cross-docking and why might a company choose to cross-dock a product?

Answer:
Cross docking is a logistics procedure where products from a supplier or manufacturing plant are
distributed directly to a customer or retail chain with marginal to no handling or storage time. When the
outbound transportation has been loaded, the products can then make their way to customers.

3. What kinds of products can be delivered electronically? What kinds need to be physically
transported?
Answer:
Products that need to be transported physically to get to customers are moved via, air, rail, truck,
water, and pipelines.

9.4 Track and Trace Systems and Reverse Logistics

Rrview Questions:

1. Why is being able to track products important to companies? Why is it important to consumers?
How can add value to products?
Answer:
Being able to help trace products helps a company anticipate events that could disrupt the supply chain,
including order shipping mistakes, bad weather, and accidents so they can be averted. ... Being able to
trace products is important not only to businesses but also to consumers.

2. What place does reverse logistics have in a company’s supply chain?

Answer:
This could include how your product could potentially be reused, how it should be properly disposed of
after use, and any other way where your expired product can create value. The reverse logistics that
directly impact supply chains the most are the return of products from the end consumer back to the
manufacturer.

Chapter 10: Gathering and Using Information: Marketing Research

and Market Intelligence
10.1 Marketing Information Systems
Review Questions:

1. Why do companies gather market intelligence and conduct marketing research?

Answer:
Market intelligence is important because it can help you understand your position in the market,
evaluate your product, know your target audience, and conduct a competitor analysis. With this
information, your marketing team will be better equipped to position your company in the marketplace.

2. What activities are part of market intelligence gathering?

Answer:
Gathering market intelligence involves a number of activities, including scanning newspapers, trade
magazines, and economic data produced by the government to find out about trends and what the
competition is doing.

3. How do marketing professionals know if they have crossed a line in terms of gathering marketing
intelligence?
Answer:
Companies bind many of their employees who have access to sensitive information to confidentiality
agreements that prevent them from disclosing such information to a competitor. If you get such
information knowing that the employee is violating these agreements, you too are likely to get in
trouble. Even if you don’t get involved in a legal situation, you can be sure that you have crossed a line.

4. How does the time frame for conducting marketing intelligence differ from the time frame in which
marketing research data is gathered?
Answer:
Marketing research involves solving a specific marketing problem at a specific point in time. Market
Intelligence involves gathering information on a regular, ongoing basis.

10.2 Steps in the Marketing Research Process

Review Questions:

1. Explain why it’s important to carefully define the problem or opportunity a marketing research
study is designed to investigate.
Answer:
Defining the marketing research problem sets the course of the entire project. Regardless of how well
a research plan is designed and subsequent stages are carried out, if the problem is not correctly
diagnosed, research findings could be misleading or even dangerous.

2. Describe the different types of problems that can occur when marketing research professionals
develop questions for surveys.
Answer:
Organizations use marketing research to find out what customers think and what they
want. The survey is a direct way of collecting quantitative, or numerical, information and
qualitative, or descriptive, information. When there are errors in the survey design,
marketing research problems can surface.
 3. How does a probability sample differ from a no probability sample?
Answer:
In probability sampling, the sampler chooses the representative to be part of the sample randomly,
whereas, in non-probability sampling, the subject is chosen arbitrarily, to belong to the sample by the
researcher. The chances of selection in probability sampling, are fixed and known.

4. What makes a marketing research study valid? What makes a marketing research study reliable?
Answer:
Data collection is an important part of marketing research. ... Reliability - The data should be reliable
such that repeating the same methods produces the same results. Validity - The data should measure
or represent what it is supposed to measure.In simple terms, research reliability is the degree to
which research method produces stable and consistent results. A specific measure is considered to be
reliable if its application on the same object of measurement number of times produces the same
results.

5. What sections should be included in a marketing research report? What is each section designed
to do?
Answer:
Normally, a market research report will contain the following sections: Title page, Table of contents,
Introduction, Background and methodology, Executive summary, Results, Conclusion, Appendix.

Chapter 11: Integrated Marketing Communications and the Changing

Media Landscape
11.1 Integrated Marketing Communications (IMC)

Review Questions:

1. Explain the concept of integrated marketing communications.

Answer:

Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and
messages are carefully linked together. At its most basic level, Integrated Marketing Communications, or IMC, as
we'll call it, means integrating all the promotional tools, so that they work together in harmony.

2. How is the media used by organizations changing? What age group is driving the change?
Answer:

- Many consumers and business professionals seek information and connect with other people and businesses
from their computers and phones. The work and social environments are changing, with more people having
virtual offices and texting on their cell phones or communicating through social media sites such as Facebook,
LinkedIn, Pinterest, and Twitter. As the media landscape changes, the money that organizations spend on different
types of communication will change as well.

3. What factors are causing the media landscape to change?

Answer:

The work and social environments are changing, with more people having virtual offices and texting on their cell
phones or communicating through social media sites such as Facebook, LinkedIn, Pinterest, and Twitter

4. What are some different types of online media? Which types are most popular with college students?

Answer:

Traditional media (magazines, newspapers, television) compete with media such as the Internet, texting, mobile
phones, social media, user-generated content such as blogs, and YouTube as well as out-of-home advertising such
as billboards and movable promotions. You might have noticed that the tray tables on airplanes sometimes have
ads on them. You have probably also seen ads on the inside of subway cars, in trains and buses, and even in
bathroom stalls. These, too, are examples of out-of-home advertising.

11.2 The Promotion (Communication) Mix

Review Questions

1. Define each component of the promotion (communication) mix.

Answer:

The promotion (communication) mix is composed of advertising, professional selling, public relations, sponsorships
(events and experiences), sales promotion, direct marketing, and online media, including social media.

2. Why is public relations considered a key part of the promotion mix?

Answer:
Public relations consists of all communications with all the people with whom the organisation has contact. Public
relations should be to the marketing practitioner, an integral part of the marketing mix, and for this to be the case,
the confusion as to its role, as oppose to that of advertising, needs to be clarified.

11.3 Factors Influencing the Promotion Mix, Communication Process,

and Message Problems
Review Questions:

1. Explain the communication process and factors that can interfere with interpretation of messages.
Answer:
The process of communication refers to the transmission or passage of information or message from the
sender through a selected channel to the receiver overcoming barriers that affect its pace. The process
of communication is a cyclic one as it begins with the sender and ends with the sender in the form of
feedback.

2. What is the perceptual process and how does it relate to promotion?

Answer:
The perceptual processThe way in which people select the information they are exposed to, pay
attention to it, interpret it, and retain it. is how a person decides what to pay attention to and how to
interpret and remember different things, including information in advertising.

3. What is the difference between encoding and decoding a message?

Answer:
The difference between Encoding and Decoding is that Encoding is referred to as the sender creating a
message in a certain format to make it readable by the receiver, whereas, Decoding is referred to as the
interpretation of the encoded message by the receiver.

11.4 Advertising and Direct Marketing

Review Questions:

1. Why do you think so many organizations rely on advertising to communicate with customers and
potential customers?
Answer:
Being the most powerful device of marketing communication, advertising offers an extended reach to
audience and high frequency of message delivery. Since this type of marketing communication is
expensive, you must consider to make the most of it.

2. What is the difference between a medium and a vehicle? Give examples of each.
Answer:
A marketing vehicle is a specific tool for delivering your advertisement to a target audience. They are
particular channels within a medium that you use to get your message across. Marketing vehicles are
contained within marketing mediums. Whereas a medium is the general method of communication,
such as radio, magazines, or social media websites, a vehicle would be the specific station, publication,
or website that you advertise with.

3. Why is direct marketing successful even though some consumers may not like it?
Answer:
Using direct marketing allows you to target specific groups of customers with tailored messages. By
taking the time to research and identify the customers who are most likely to need or want your
products and services, you can focus your marketing efforts where they have the highest chance of
achieving results.

11.5 Message Strategies

Review Questions:

1. Identify the different promotion objectives companies may use.

Answer:
There are three main promotional objectives: inform the market, increase demand, and differentiate a
product.

2. What are some of the message strategies organizations use?

Answer:
In advertising, there are six messaging strategies that are most commonly used: emotional, unique
selling proposition, generic, positioning, brand image or preemptive. Knowing which messaging strategy
you want your organization to use is a big first step towards creating a successful ad campaign.

3. What is the difference between an open-ended and a closed-ended message?

Answer:
An open-ended message allows the consumer to draw his or her own conclusion, such as a commercial
for perfume or cologne. A closed-ended message draws a logical conclusion. Most messages are one
sided, stressing only the positive aspects, similar to what you include on your résumé.

11.6 The Promotion Budget

Review Questions”

1. Explain four different ways to set a product’s promotion budget.

Answer:
There are four common types of budgets that companies use: (1) incremental, (2) activity-based, (3)
value proposition, and (4) zero-based. These four budgeting methods each have their own advantages
and disadvantages, which will be discussed in more detail in this guide.

2. What is mobile marketing?

Answer:
Mobile marketing is a multi-channel online marketing technique focused at reaching a specific audience
on their smart phones, feature phones, tablets, or any other related devices through websites, E-mail,
SMS and MMS, social media, or mobile applications.

11.7 Sales Promotions

Review Questions”

1. What are the objectives of sales promotions?

Answer:
The objectives of a sales promotion is to increase consumer demand, stimulate market demand, to get
potential buyers to heed a call to action, increase the size of purchases and improve product availability
using media and non-media marketing communications.

2. What is a trade promotion?

Answer:
Trade Promotion is a marketing technique aimed at increasing demand for products in retail stores
based on special pricing, display fixtures, demonstrations, value-added bonuses, no-obligation gifts, and
more. ... Companies can utilize Trade Promotions to increase product visibility and brand awareness
with consumers.

3. Identify and provide an example of three sales promotion tools targeted at consumers.
Answer:
Coupons, contests, samples, and premiums are among the types of sales promotions aimed at
consumers. Trade promotions, or promotions aimed at businesses, include trade shows, sales contests,
trade allowances, and push money.

Chapter 12: Public Relations, Social Media, and Sponsorships

12.1 Public Relations Activities and Tools
Review Questions:

1. Why are public relations efforts funded by firms?

Answer:
Common PR activities include speaking at conferences, seeking industry awards, working with the press,
communicating with employees, and sending out press releases. Public relations may include an
organization or individual gaining exposure to an audience through topics of public interest and news
items.

2. Who does the public relations for a firm?

Answer:
Firms and individuals should hire a public relations agency when they want to protect, enhance or build
their reputations through the media. A good agency or PR practitioner can analyze the organization, find
the positive messages and translate those messages into positive media stories.

3. Why are sponsorships becoming more popular?

Answer:
Sponsorship provides a great means of broadening your competitive edge by improving your company's
image, prestige and credibility by supporting events that your target market finds attractive. In recent
years, corporate sponsorship has become the fastest growing type of marketing in the United States.

12.2 Social Media

Review Questions:

1. What is social commerce and how do you as a customer use it?

Answer:
Social commerce uses networking websites such as Facebook, Instagram, and Twitter as vehicles to
promote and sell products and services. A social commerce campaign's success is measured by the
degree to which consumers interact with the company's marketing through retweets, likes, and shares.
Social commerce is the use of social media to drive ecommerce transactions. In years gone by this
meant using paid, owned and earned media to build visibility and drive traffic to an ecommerce store. In
recent years social media platforms are adding the ability to purchase products without leaving the app.

2. Why do you think Facebook is the most popular social media networking site?
Answer:
Facebook is so popular because it combines two aspects of common web surfing with an interpersonal
element. In this age, Facebook contains informative content covering every possible global, national, or
local issue while at the same time entertains its users with memes, video games, and other applications.

3. How would you define social media?

Answer:
Social media is a computer-based technology that facilitates the sharing of ideas, thoughts, and
information through the building of virtual networks and communities. ... Users engage with social
media via a computer, tablet, or Smartphone via web-based software or applications.

Chapter 13: Professional Selling

13.1 The Role Professional Salespeople Play
Review Questions:

1. Salespeople play three primary roles. What are they?

Answer:
Salespeople play three primary roles? What are they? The three primary roles salespeople play,
according to Principles of Marketing by Tanner and Raymond (2010), are “creating value for their firms’
customers, managing relationships, and relaying marketing and sales information back to their
organization.” Salespeople create value for their firms’ customers by advocating and communicating the
customers’ needs, desires, concerns, and preferences back to the company and find solutions

2. Salespeople create value in what two ways?

Answer:
-Creating value for their firms' customers.
-Managing relationships.
R-elaying customer and market information back to their organizations.

3. How does each type of salesperson create value?

Answer:
Salespeople need to know how to attract new customers by offering something that represents real
value and know how to communicate this value effectively. This involves building a team of consultative
sellers that can establish customer relationships, fueled by confidence and trust.

13.2 Customer Relationships and Selling Strategies

Review Questions:

1. Do customer relationships begin as transactional and move toward strategic partnerships?

Answer:
These types of relationships are not a process—not every relationship starts at the transactional level
and moves through functional and affinitive to strategic. Nor is it the goal to make every relationship a
strategic partnership.
2. How does each sales strategy vary?
Answer:
A sales strategy is defined as a documented plan for positioning and selling your product or service to
qualified buyers in a way that differentiates your solution from your competitors.
3. Which step of the sales process is most important and why? How would the steps of the sales
process vary for each type of sales position?
Answer:
The Probe step is probably the single most important step in the selling process and the one that's done
the poorest by many salespeople.

13.3 Sales Metrics (Measures)

Review Questions:

1. How might the sales cycle vary across the types of sales positions? How do salespeople use the
sales cycle to manage their performance?
Answer:
The sales cycle is a basic unit of measurement indicating how long it takes to close a sale. Salespeople
examine their performance at each stage of the sales cycle in order to identify specific areas for
improvement. A salesperson who shortens the cycle is able to generate more revenue with the same
amount of effort.

2. What is the relationship between conversion ratios and activity goals? How do salespeople use this
information? How do sales executives use the information?
Answer:
His conversion ratios also tell him how many sales calls he has to make each day or week to generate a
sale and how many calls must be made on leads, suspects, and prospects to convert them. How many
sales calls of each type a representative has to make in a certain period of time are activity goals.
Salespeople act on behalf of their companies by doing the following: Creating value for their firms'
customers. Managing relationships. Relaying customer and market information back to their
organizations.

3. What metrics do sales executives use that salespeople are less concerned with?
Answer:
Sometimes the average revenue generated per customer and the average revenue generated per sales
call are measured to determine if a salesperson is pursuing customers that are the most lucrative

13.4 Ethics in Sales and Sales Management

Review Questions:

1. Do salespeople deserve the image or negative stereotype? Why or why not?

Answer:
Human beings can usually recognize a ridiculous caricature when we see one. We know when something
is too over-the-top and stereotyped to possibly reflect reality. Unless, that is, we’re thinking about sales.

2. Do ethics get in the way of success in sales? Why or why not?

Answer:
I will say yes, ethics get in the way of success in sales because some buyers rely on recommendations
from salespeople when making buying decisions. It is the duty of the salesperson to tell the buyer any
negative side effect of the product. But sometimes with the fear that making the buyer aware of the side
effect may stop them from buying stops some salespeople from telling the truth in this situation. This is
an ethical dilemma for salespeople.

3. What safeguards do companies enact to ensure ethical behavior among salespeople and sales
managers?
Answer:
Safeguards put in place, Creating a code of conduct . Every organization needs to have a code of
conduct. Implement the code of conduct – Needs to be fair and equitable without bias or unnecessary
leniency.

13.5 Integrating Sales and Marketing

Review Questions:

1. What marketing activities support salespeople, and how does that support help them? Be specific.
Answer:
Marketing professionals also support salespeople by providing them with lead management. Lead
management The process of identifying and qualifying leads in order to capture new business. is the
process of identifying and qualifying leads in order to grow new business.

2. What do salespeople do to support marketing managers? Be specific.

Answer:
Salespeople act on behalf of their companies by doing the following: Creating value for their firms'
customers. Managing relationships. Relaying customer and market information back to their
organizations.

3. What is a closed-loop lead management and what are its benefits to salespeople.
Answer:
Closed-loop lead management systems. are information systems that are able to track leads all the way
from the point at which the marketer identifies them to when they are closed. So in many cases,
marketing personnel identify leads, turn them over to sales representatives, and that's the last they hear
of them.

13.6 Outsourcing the Sales Function

Review Questions:

1. Which parts of the sales cycle can be outsourced and to whom?

Answer:
When a company hires a call center to make phone calls and set up appointments, it is outsourcing only
the lead-to-suspect conversion portion of the sales cycle. In other words, every appointment the center
sets up would be with a suspect. 

2. When does outsourcing make the most sense? The least sense? Why?
Answer:
Companies outsource things all the time, sometimes without even consider doing it themselves because
it just makes sense. We use mail- and package carriers to deliver things, we use phone- and internet
service providers etc. Other things might be less obvious to outsource but still makes sense.

3. What can marketers do to make outsourced sales functions more likely to succeed?
Answer:
Not only can marketing managers create better strategies by doing so, they will create strategies that
get used. In other words, the salespeople will be more likely to support those strategies with their own
efforts because they believe in them.

Chapter 14: Customer Satisfaction, Loyalty, and Empowerment

14.1 Customer Communities
Review Questions:

1. Is an influencer panel the same as a community?

Answer:
An influencer panel does not necessarily become a community. If the communication that occurs is only
between the marketer and the individual members of the panel, no community forms. The members
must communicate with one another for a community to exist.

2. If a company doesn’t create an influencer panel, are there still influencers? If so, who are they
influencing and how?
Answer:
Some companies consider customer service to be a marketing channel, to the point that they train their
customer service representatives to identify sales opportunities and pitch products.

3. What Internet tools, other than influencer panels, create word of mouth?
Answer:
The internet tools that create word of mouth are Social networking sites, blogs, podcasts, wikis, vlogs
and other internet based applications.

14.2 Loyalty Management

Review Questions:

1. What are the benefits of having loyal customers? Why or how do those benefits occur?
Answer:
One of the benefits of having loyal customers is Increase revenue: Increasing customer retention helps
boost profits simply because loyal customers already have trust in your brand and therefore are likely to
spend more. According to the research referenced above, increasing retention by just 5% through
customer loyalty programs can boost revenue by 25 to 95%.

2. What is the difference between loyalty and loyalty programs?

Answer:
The difference between loyalty and loyalty programs is that in a loyalty program, the customer is
rewarded for every purchase, whereas, with an incentive program, a customer is only rewarded after
achieving a sales target or sales goals. ... The real difference about each program is that loyalty protects
customers and incentives drive growth.

3. How can you create loyalty without having a loyalty program?

Answer:
Loyalty is created when a company performs well, responds to its customers, identifies its loyal
customers, makes the benefits of its loyalty program transparent, and when the firms builds a
community among its customers.

14.3 Customer Satisfaction

Review Questions:

1. Should a company be happy or concerned if most customers are satisfied?

Answer:
A company should be happy, but satisfying customers is a minimal level of performance. It is not a good
predictor of a customer's future purchases or brand loyalty.

2. Why have customer satisfaction scores remained relatively steady over the past few years?
Answer:
Flat scores for customer satisfaction reflect rising customer expectations as well as improved products.
The better products get the more it takes to satisfy customers.

3. What are the desired outcomes, from a marketer’s perspective, of a complaint management
process?
Answer:
for the issue to be resolved and for the customer to be satisfied with the outcome.

4. How would marketing management use customer satisfaction survey results

Answer:
Surveys can be used to find out if there are any problems, what needs to be done to improve and to
keep track of customer's attitudes towards the product.

14.4 Ethics, Laws, and Customer Empowerment

Review Questions:

1. What damage is done by slugging? If the customer buys your product, was the sugging OK? How
does slugging differ online versus in person?
Answer:
The content is potentially misrepresented and so is the source. It involves lying about the source of the
information in an effort to gain an unfair advantage. Sugging does not differ online versus in person.

2. What does the CAN-SPAM Act do?

Answer:
It is a law that prohibits the use of email, faxes, and other technology to randomly push a message to a
potential customer.
3. When do you mind a company having a lot of information on you and when is it OK? Are there
advantages to you as a consumer when a company knows a lot about you? Are there disadvantages?
What safeguards are there for consumers?
Answer:
It’s OK as long as you and the company have a good relationship, and it is just between you and them.
What happens is they package all your purchasing information as well as other information they gather
when you are on their website to track your browsing habits, favorite music, favorite websites, favorite
streaming, favorite YouTube videos, and also to scan your photos and other documents.

4. How can a bot hurt a marketer?

Answer:
A bot can be used to obtain many units of a freebie that someone can resell.

Chapter 15: Price, the Only Revenue Generator

15.1 The Pricing Framework and a Firm’s Pricing Objectives
Review Questions:

1. What are the steps in the pricing framework?

Answer:
The steps in the pricing framework are; set pricing objectives, estimate demand, determine cost, analyze
factors affecting pricing decision, determine pricing strategies and pricing policies for making price
adjustments, set initial prices and offer and make price adjustments as needed.

2. In addition to profit-oriented objectives, what other types of pricing objectives do firms utilize?
Answer:
Some common strategies for setting prices include competitive pricing (setting prices according to your
competitors), market-based pricing (setting prices according to the market environment), penetration
pricing (offering lower prices at first to attract new customers) and price skimming (setting higher prices
at first for luxury brands or items).

15.2 Factors That Affect Pricing Decisions

Review Questions:

1. What factors do organizations consider when making price decisions?

Answer:
Those factors include the offering’s costs, the demand, the customers whose needs it is designed to
meet, the external environment—such as the competition, the economy, and government regulations—
and other aspects of the marketing mix, such as the nature of the offering, the current stage of its
product life cycle, and its promotion and distribution.

2. How do a company’s competitors affect the pricing decisions the firm will make?
Answer:
By means of actions by different competitors integrate all elements of the marketing mix and do not
focus on price alone. A competitor might make a change to a product or initiate a promotion that
impacts customers' perceptions of value and, therefore, their perceptions of price.

3. What is the difference between fixed costs and variable costs?

Answer:
Fixed cost includes expenses that remain constant for a period of time irrespective of the level of
outputs, like rent, salaries, and loan payments, while variable costs are expenses that change directly
and proportionally to the changes in business activity level or volume, like direct labor, taxes, and
operational expenses.

15.3 Pricing Strategies

Review Questions:

1. Explain the difference between a penetration and a skimming pricing strategy.

Answer:
Penetration pricing relies on a low upfront price to attract customers, while skimming is the use of high
upfront prices to maximize short-term profits from the most eager and interested customers.

2. Describe how both buyers and sellers use sealed bid pricing.
Answer:
Sellers can bid on the right to supply a company with products or services, with the lowest bidder
getting the contract. Buyers can submit a sealed bid to purchase land, government surplus or other
offerings of limited quantity.

3. Identify an example of each of the following: odd-even pricing, prestige pricing, price bundling, and
captive pricing.
Answer:
Odd-even pricing example, instead of being priced $10.00, a product will be priced at $9.99. Likewise, a
$20,000 automobile might be priced at $19,998, although the product will cost more once taxes and
other fees are added. Examples of markets in which prestige pricing is used are watches, perfumes, and
luxury automobiles. Price bundling example; Combo meals and value meals sold at restaurants are an
example. Captive pricing example is Razors and razor blades.

4. What is the difference between FOB origin and FOB destination when paying for shipping charges?
Answer:
Free on Board is a term used to indicate who is liable for goods damaged or destroyed during shipping.
"FOB origin" means the buyer is at risk and takes ownership of goods once the seller ships the product.
"FOB destination" means the seller retains the risk of loss until the goods reach the buyer.

5. Explain how trade allowances work.

Answer:
Trade-in allowance is a reduction in the trade value or sale price of an asset offered for sale by the seller
in exchange of the asset owned by the buyer. It is the value decreased from the selling price of a new
asset in exchange of old asset.

Chapter 16: The Marketing Plan

16.1 Marketing Planning Roles
Review Question:

1. Who is involved in the creation of a marketing plan?

Answer:
The CMO of a business unit is likely to be responsible for the creation of its marketing plan. However,
the CMO is generally assisted by marketing professionals and other staff members, who often work on
marketing planning teams as needed.

2. In addition to marketing analysts, what other members of an organization help create marketing
plans?
Answer:
The reality is that a team of marketing specialists is likely to be involved. Sometimes multiple teams are
involved. Many companies create marketing plans at the divisional level.

16.2 Functions of the Marketing Plan

Review Questions:

1. What is a marketing plan and how is it used?

Answer:
The marketing plan details the strategy that a company will use to market its products to customers. The
plan identifies the target market, the value proposition of the brand or the product, the campaigns to be
initiated, and the metrics to be used to assess the effectiveness of marketing initiatives.

2. Which section of the marketing plan is most important? Why? The least important?
Answer:
The most important element of a marketing plan is the situational analysis. The least important part of
the marketing plan is the collaborators since you do not always have to include partners in your
business. You can do without them.

3. What is the purpose of scenario planning?

Answer:
Scenario planning attempts to eliminate the two most common errors made in any strategic analysis -
Over prediction and Under prediction of the company's future.

16.3 Forecasting
Review Questions:

1. Which forecasting method would be most accurate for forecasting sales of hair-care products in the
next year? How would your answer change if you were forecasting for the next month? For home
appliances?
Answer:
Of the four choices (simple moving average, weighted moving average, exponential smoothing, and
single regression analysis), the weighted moving average is the most accurate, since specific weights can
be placed in accordance with their importance.

2. What is the role of expert opinion in all forecasts?

Answer:
Expert opinion is often necessary in forecasting tasks because of a lack of appropriate or available
information for using statistical procedures. ... A number of principles are developed here to indicate
how to conduct structured groups to obtain good expert judgments.

3. How can forecasting accuracy be improved?

Answer:
If you search for how to improve forecast accuracy, you'll find a lot of technical tips. Track
macroeconomic indicators in real-time. Choose the right demand forecasting model. Recalculate
forecasts in light of market conditions.

16.4 Ongoing Marketing Planning and Evaluation

Review Questions:

1. What is the difference between managerial control and statistical control? How is statistical control
used?
Answer:
The difference between managerial control and statistical control is that Managerial control is one of the
primary tasks of organizational leaders. It's a means by which the managers and leaders of an
organization set performance standards, monitor performance in light of the standards and take any
necessary corrective action while Statistical process control (SPC) is defined as the use of statistical
techniques to control a process or production method. SPC tools and procedures can help you monitor
process behavior, discover issues in internal systems, and find solutions for production issues.

2. What should a marketing audit accomplish?

Answer:
A marketing audit is a process that examines your complete promotional environment, from your direct
mail newsletters to your social media campaigns. The purpose of a marketing audit is to sort through
your resources and figure out which of your strategies are working, and which are just wasting your
budget.

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