Midterm Exam Questions On Marketing! Trivia

Geographic segmentation is the process of dividing a market into different geographical units such as nations, regions, provinces, cities, towns, or barangays. This segmentation strategy recognizes that consumer preferences, needs, and behaviors can vary based on their location. By targeting specific geographic areas, businesses can tailor their marketing efforts to meet the unique demands of each region, ensuring that their products or services are relevant and appealing to the local population. This approach allows companies to effectively allocate their resources and design localized marketing campaigns that resonate with the target audience in each geographic segment.

Demographic segmentation involves dividing the market into different segments based on demographic variables such as age, sex, family size, income, and occupation. This type of segmentation allows businesses to target specific groups of customers who have similar characteristics and needs. By understanding the demographics of their target market, businesses can tailor their marketing strategies and offerings to better meet the preferences and demands of different customer segments. Demographic segmentation is a widely used approach in marketing as it helps businesses effectively reach and communicate with their target audience.

A product refers to anything that is offered for sale by a firm to buyers in order to fulfill their wants and needs. It can be a tangible item, such as a physical product like a car or a smartphone, or an intangible item, such as a service like consulting or software. The term "product" encompasses a wide range of offerings that are intended to meet the demands and desires of customers in the market.

Generic branding refers to a branding strategy where there is no specific product name associated with the brand. Instead, the brand is identified by a generic term that describes the product or service. This strategy is often used for products that are considered commodities or for companies that offer a wide range of products. By using generic branding, the company can focus on promoting the overall brand image and reputation rather than individual product names. This approach allows for flexibility in product offerings and can be beneficial in reaching a broader target market.

The given correct answer for this question is "Decline stage". This is because the statement indicates that Blackberry is no longer producing keyboarded models of cellphones, suggesting a decrease in demand and market share for their products. The decline stage of the Product Life Cycle (PLC) refers to a period when sales and profits start to decline as the product becomes outdated or faces intense competition from other more popular or advanced alternatives, such as Apple and Android devices.

A descriptive label provides information about the product, including details about who made it, where it was made, and when it was made. This label is designed to give consumers a better understanding of the product and its origins. Unlike a brand label, which focuses on the manufacturer's name or logo, a descriptive label aims to provide specific information about the product itself. A grade label typically indicates the quality or grade of a product, while a promotional label is used for advertising or marketing purposes.

Packaging refers to the process of designing and producing the container or wrapper of a product. It involves all activities related to creating the physical packaging that holds and protects the product. This includes selecting materials, designing the shape and size of the packaging, and adding any necessary labels or branding elements. Packaging plays a crucial role in attracting consumers, providing information about the product, and ensuring its safety during transportation and storage.

Manufacturer branding refers to a branding strategy where the brand name for the product is designated by the manufacturer. In this approach, the manufacturer creates and promotes its own brand name, which is then associated with the product. This helps the manufacturer establish a strong brand identity and allows consumers to easily recognize and trust the product. This strategy is commonly used by companies to build brand loyalty and differentiate their products from competitors in the market.

Industrial goods are the correct answer because they are used to produce other goods. Unlike consumer goods, which are purchased by individuals for personal use, industrial goods are typically used by businesses and organizations in their production processes. These goods can include raw materials, machinery, equipment, and components that are necessary for manufacturing and producing other goods. Specialty goods, on the other hand, refer to unique or high-end products that are not commonly used in the production process.

The given answer, "Growth stage," is the correct answer because the information provided suggests that sales are increasing and new forms of the product are being introduced. These are typical characteristics of the growth stage in the product life cycle, where the product gains market acceptance and sales start to climb rapidly. Additionally, the mention of distribution increasing further supports the idea that the product is in the growth stage, as distribution channels are expanding to meet the growing demand.

In the maturity stage, sales settle down as the product becomes well-known. This is because the product has reached its peak level of market penetration and most potential customers are already aware of it. During this stage, competitors also tend to offer price reductions as a tool of competition to maintain or increase their market share. This indicates that the product has already achieved a certain level of market saturation and competition is intense. Therefore, the given answer of "Maturity stage" is appropriate in this context.

A pure monopoly occurs when there is only one seller in the market and there is no competition. In this scenario, the monopolistic seller has complete control over the market and can set prices and output levels without any external influence. This lack of competition allows the monopolist to exploit its market power and potentially charge higher prices and limit consumer choices. Thus, the given answer of "Pure monopoly" accurately describes the situation where there is only one seller and no competition.

When a buyer is very eager and most ready to buy, the marketeer's best course of action would be to make the product available. This means ensuring that the product is in stock and easily accessible to the buyer. No additional selling effort or attitude changing is necessary in this scenario, as the buyer is already eager to make a purchase.

The term "lifestyle" refers to a person's pattern of living in the world as expressed in his or her activities, interests, and opinions. It encompasses the way individuals choose to live their lives, including their daily routines, hobbies, social interactions, and values. It reflects a person's choices, preferences, and behaviors, which collectively shape their overall way of life. Social class and pattern of living are related concepts but do not fully capture the comprehensive nature of lifestyle. Therefore, the correct answer is lifestyle.

Activities, benefits, and entertainment are categorized as services. Services are intangible products that are provided by one party to another, typically involving a task or an activity performed for the benefit of the recipient. In this case, activities, benefits, and entertainment are examples of services as they involve the provision of intangible experiences or tasks that are performed for the enjoyment or benefit of individuals or groups.

Mixed branding refers to a strategy where a company uses both its own manufacturer brand and reseller brands to market its products. This approach allows the company to target different segments of the market and leverage the strengths of both types of brands. By using manufacturer branding, the company can establish its reputation and credibility, while reseller branding helps to reach a wider audience and tap into the reseller's customer base. This combination of manufacturer and reseller brands can lead to increased brand recognition, customer loyalty, and ultimately, higher sales.

Perceived value pricing is the correct answer because it refers to a pricing strategy where a company sets the price of a product based on the perceived value that consumers have for that product. This means that the company takes into consideration how much value consumers believe they are receiving from the product and prices it accordingly. This strategy is often used when a company wants to position their product as high-quality or premium and is willing to charge a higher price for it.

Cost - Plus Pricing is a pricing strategy where a certain percentage is added to the total cost of a product or service to determine the selling price. This approach ensures that the seller covers all costs incurred in producing the product or service, including direct costs (such as materials and labor) and indirect costs (such as overhead expenses). By adding a percentage on top of the total cost, the seller also includes a profit margin. This pricing method is commonly used in industries where costs are difficult to accurately estimate or where there is a need to ensure a certain level of profitability.

The given answer, Oligopoly, is correct because an oligopoly refers to a market structure in which only a few firms dominate the market and compete against each other. In this scenario, there are only a few firms competing in the sale of a commodity, indicating a limited number of sellers in the market. This aligns with the characteristics of an oligopoly, making it the most appropriate option among the given choices.

Durable goods are products that are designed to last for an extended period of time and can withstand repeated use. They are typically items that consumers expect to use over a long period, such as appliances, furniture, or vehicles. These goods are built to be durable and reliable, allowing them to survive multiple uses without significant wear or damage. Unlike convenience goods, which are typically used up quickly, or shopping goods, which are purchased less frequently, durable goods are intended to provide long-term value to the consumer. Specialty goods, on the other hand, refer to unique or high-end products that are not commonly found.

The formula to compute the discount of a product is by multiplying the original selling price of the product with the discount rate. This is because the discount rate represents the percentage of the original selling price that is deducted as a discount. So, multiplying the original selling price by the discount rate gives us the amount of discount that is applied to the product.

Marketers should apply the behavior segmentation of "Purchase Occasion" in this situation. This is because the purchase of books, notebooks, and pencils is heavily made during enrollment periods in schools, which is a specific occasion or event. By understanding the purchase occasion, marketers can tailor their marketing strategies and promotions to target customers who are more likely to make purchases during this specific time, such as offering discounts or special deals during enrollment periods to attract more customers.

A brand label is a type of label that identifies the product. It is used to distinguish a product from others in the market and represents the brand or company that produces it. The brand label typically includes the brand name, logo, and other elements that help consumers recognize and associate the product with a particular brand. This label plays a crucial role in building brand identity and promoting brand loyalty among consumers.

As a marketeer, Pedro should make a little selling effort to convince the young woman to buy the product. Despite her liking for the product, she mentioned that she will only buy it when needed. By making a small selling effort, Pedro can highlight the benefits of the soap and persuade the young woman that she needs it now. This could include emphasizing the advantages of having whiter skin, addressing any concerns or doubts she may have, and offering any promotions or discounts that may encourage her to make the purchase immediately.

This is loyalty status segmentation because the store is arranging brands based on how heavily they are used. By displaying lightly used brands in front, the store is targeting customers who are loyal to those brands and may be more likely to make a purchase. The heavily used brands are arranged behind, assuming that loyal customers will find them regardless. This segmentation strategy is based on the loyalty status of customers towards different brands.

Behavior is the correct answer because it refers to the grouping of buyers based on their knowledge, attitude, use, or response to a product. This means that consumers are categorized based on their behaviors, such as their buying patterns, brand loyalty, usage frequency, or response to marketing efforts. By understanding consumer behavior, businesses can tailor their marketing strategies to effectively target and engage specific consumer segments. Psychographic refers to the grouping of buyers based on their lifestyles, values, and interests, while demographic refers to grouping based on characteristics such as age, gender, income, or education.

Companies use target-return objectives in pricing because they require a certain level of profit. This means that they set their prices with the goal of achieving a specific return on their investment or a desired profit margin. By setting a target return, companies can ensure that their pricing strategy aligns with their financial goals and helps them generate the necessary profits to sustain their business operations and growth.

If a prospect is neutral towards a product but may buy if little effort is necessary, making the product easily available would be an effective approach. By ensuring that the product is easily accessible and convenient for the prospect to obtain, it reduces the effort required on their part. This can increase the likelihood of them making a purchase as it eliminates any potential barriers or inconvenience that may have deterred them initially.

A brand is a name, term, sign, symbol, or design that is used to distinguish and identify the goods and services of one seller or group of sellers. It represents the reputation and image of a company and helps consumers differentiate between different products or services in the market. A strong brand can create customer loyalty and trust, leading to increased sales and market share. Therefore, the correct answer is brand.

The given factors of slow growth of sales, heavy promotional spending, and relatively high prices indicate that the product is in the introduction stage. During this stage, sales are typically low as the product is being introduced to the market. Heavy promotional spending is necessary to create awareness and generate demand. Additionally, prices are often set higher to recoup the costs of development and promotion. Overall, these factors align with the characteristics of the introduction stage, where the product is still being established and market acceptance is being sought.

The availability of service centers and parts and accessories can be considered examples of warranty because they indicate that the company is committed to providing after-sales support and ensuring that customers can easily access maintenance and repairs for the product. This gives customers peace of mind knowing that they will be taken care of in case anything goes wrong with the product.

Market skimming refers to a pricing strategy where a company sets a high initial price for a product or service and then gradually lowers it over time. This strategy is often used when a company introduces a new and innovative product into the market and wants to target early adopters who are willing to pay a premium price. By setting the price lower than the competitor, the company aims to attract these early adopters and maximize its profits before competitors enter the market or prices start to decline. Therefore, market skimming is the correct answer in this case.

Convenience goods, shopping goods, and specialty goods are all based on consumer's shopping habits. Convenience goods are products that consumers buy frequently and with minimal effort, such as everyday household items. Shopping goods are products that consumers compare and evaluate before making a purchase, such as clothing or electronics. Specialty goods are unique or high-end products that consumers are willing to make a special effort to obtain, such as luxury items or gourmet food. Non-durable goods, on the other hand, refer to products that have a short lifespan and are consumed or used up quickly, such as food or toiletries.

Segmenting the market according to lifestyle is usually adapted by shoes and dresses because these products are often designed and marketed to cater to specific lifestyles and preferences. Different styles, designs, and features are created to appeal to different consumer segments based on their lifestyle choices. By segmenting the market according to lifestyle, companies can better understand their target audience and tailor their products and marketing strategies to meet their specific needs and preferences. This approach allows for more effective targeting and positioning in the market, ultimately leading to increased sales and customer satisfaction.

Buyer's attitude towards a product can vary from being enthusiastic, positive, negative, hostile, to indifferent. These attitudes reflect the buyer's emotions, opinions, and overall perception of the product. An enthusiastic attitude indicates excitement and eagerness towards the product, while a positive attitude reflects a favorable opinion. Conversely, a negative attitude signifies dissatisfaction or disapproval, and a hostile attitude suggests strong animosity towards the product. Lastly, an indifferent attitude implies a lack of interest or apathy towards the product.

Consumer goods are products that are intended for the final consumption of consumers. This means that they are purchased by individuals or households for their personal use or enjoyment. Consumer goods can also include services, such as haircuts or spa treatments, which are also consumed by individuals. Additionally, some consumer goods are consumed regularly, meaning that they are used up and need to be replaced frequently. Therefore, the given answer accurately describes consumer goods as products or services that are intended for final consumption, can include services, and are consumed regularly.

A good package should provide safety and protection to the product it contains, ensuring that it remains intact and undamaged during transportation and storage. Additionally, a good package should also promote the product by effectively communicating its features and benefits to potential consumers. Therefore, the correct answer includes "provides safety," "provides protection," and "promotes the product."

Product differentiation refers to the process of distinguishing a product or service from others in the market. Factors that contribute to product differentiation include branding, quality, image, packaging, location, and product features. Branding helps to create a unique identity for the product, quality ensures that the product meets or exceeds customer expectations, image influences the perception of the product in the market, packaging helps to attract and communicate with customers, location can provide convenience or exclusivity, and product features offer unique functionalities or benefits. All these factors contribute to making a product stand out and appeal to customers in a competitive market.

Market segmentation must meet certain requirements in order to be useful and effective. These requirements include being measurable, substantial, accessible, and actionable. Measurability refers to the ability to quantify and measure the characteristics of the segments. Substantiality means that the segments should be large enough and have sufficient purchasing power to be worth targeting. Accessibility refers to the ability to reach and serve the segments effectively. Actionability means that the segments should be actionable and responsive to marketing efforts. These requirements ensure that the segmentation strategy can be implemented and yield positive results.

A good brand should be easy to pronounce so that it can be easily remembered and shared by consumers. It should also be distinctive, meaning it stands out from competitors and is unique in its own way. Additionally, a good brand should be able to be legally registered to protect its intellectual property rights. Endorsement by celebrities is not necessarily a criteria for a good brand, as it can vary depending on the brand's target audience and marketing strategy. Lastly, being easy to spell can also contribute to a good brand, as it facilitates online searches and reduces confusion among consumers.