MARKETING EXAM 2

What is marketing research?

The process of planning, collecting, and analyzing data to make relevant marketing decisions.

How does analytics go beyond marketing research?

It analyzes data patterns to generate insights and predictions.

What are the four types of marketing research projects?

Descriptive, Diagnostic, Predictive, and Causal.

What does descriptive marketing research provide?

A summary and overview using statistics like mean, median, mode, and standard deviation.

What does diagnostic marketing research focus on?

Identifying why something is happening and determining the problem.

What is predictive marketing research?

It estimates the likelihood of future outcomes, such as product sales, using past data.

What is required for predictive marketing research?

Regression analyses.

What does causal marketing research focus on?

Establishing cause-and-effect relationships through experiments.

What does regression analysis show?

The relationship between different variables.

How does correlation differ from causation?

Correlation shows a relationship between variables; causation proves direct effect.

What is the formula for a linear relationship in regression analysis?

y = m.x + K

What is the dependent variable in regression analysis?

The outcome that changes based on the independent variable.

What is the independent variable in regression analysis?

The factor that influences the dependent variable.

Give an example of dependent and independent variables in marketing research.

Dependent: Amount of money spent in the auto parts sector; Independent: Average age of vehicles.

What are the steps in the marketing research process?

Define the marketing issue/problem, Plan the data collection, Collect data, Analyze data, Take relevant actions.

What should be considered when defining the marketing issue/problem?

Clearly identifying what needs to be found out.

What is secondary data?

Data that has already been collected for other purposes.

What are the pros and cons of secondary data?

Pros: Cheaper, quicker to obtain; Cons: Less controlled, potentially outdated or irrelevant.

What are some sources of secondary data?

Government agencies, private companies, journals, magazines, newspapers.

What is primary data?

Data collected specifically for a particular project.

What are the pros and cons of primary data?

Pros: More relevant, more controlled, timely; Cons: More expensive.

What are some methods of collecting primary data?

Observation, interviews, surveys, research, experiments, focus groups.

What are the two main types of data?

Quantitative and Qualitative.

What is quantitative data?

Numerical data, such as surveys, observation, sales data.

What types of questions provide quantitative data?

Closed-ended questions and scaled response questions.

What is a variable?

A measurable outcome.

What are the two types of observable data?

Observable: Captured without a response; Latent: Captured through interaction.

What bias can affect latent data collection?

Socially desirable response bias.

What is qualitative data?

Non-numerical information, such as interviews, focus groups, open-ended survey questions.

What is a random sample?

A truly random selection from a larger population.

What is a systematic sample?

A sample selected at regular intervals from a larger population.

What is a quota sample?

A sample that ensures representation of certain groups.

If a sample size is 40, with 24 females and 16 males, what is the proportional breakdown for a population of 400?

240 females, 160 males.

What are common statistical software options used in marketing research?

IBM SPSS, R, Python, LIWC.

How is Python useful in marketing research?

It uses machine learning to analyze qualitative data and improve over time.

What is LIWC used for?

Analyzing qualitative data, such as sentiment analysis in text.

What are the main types of errors in marketing research?

Measurement error, Sampling error, Random error.

What is a synthetic sample?

A hypothetical dataset used to test possible outcomes.

What statistical tests are used when the dependent variable is continuous?

F-tests and T-tests.

When is a Chi-square test used?

When the dependent variable is a rank, choice, or proportion.

What test is used for normally distributed data?

F-test or T-test.

What test is used for non-normal distributions?

Non-parametric tests.

How are products classified?

Goods (tangible products) and Services (intangible offerings).

What is a product item?

A specific version of a product.

What is a product line?

A group of closely related products.

What is a product mix?

The total range of products sold by a company.

What determines the depth of a product mix?

The number of product items within a line.

What determines the width of a product mix?

The number of product lines a company offers.

What are the benefits of having product lines?

Economies of scale, Standardized components, Package uniformity, Distribution efficiencies.

What are ways companies adjust product items, lines, and mixes?

Adding new product items, Adding new product lines, Product repositioning, Product line/mix extension or contraction.

What factors drive product changes?

Changing demographics, Declining sales, Macro-level social changes.

What is planned obsolescence?

When brands modify products to make older versions obsolete.

What is natural obsolescence?

When new technology naturally replaces older products.

What elements contribute to a brand’s distinctive identity?

Name, Logos/Symbols, Sensory branding.

What are the key benefits of branding?

Distinct identity, Brand loyalty, Price premium.

What are the different branding strategies?

Individual branding, family branding, private branding, manufacturer branding, co-branding.

What is individual branding?

Each product line has a separate brand name.

When is individual branding used?

When products are positioned differently.

What is a disadvantage of individual branding?

It is more expensive.

What is family branding?

Using the same brand name across multiple product lines.

What are the benefits of family branding?

Lower marketing costs, Stronger carryover effects.

What is a drawback of family branding?

A bad product can damage the entire brand’s reputation.

What is private branding?

When retailers sell products under their own brand name.

Why do private brands perform well during economic downturns?

They offer cheaper alternatives to name brands.

What is manufacturer branding?

When companies sell branded products across multiple retailers.

When do manufacturer brands perform better?

During strong economic periods.

What is co-branding?

A partnership between two brands to create a unique product.

What are the benefits of co-branding?

Creates unique products, Expands customer reach, Enhances brand credibility.

What is ingredient co-branding?

When a product cannot exist without both brands' contributions.

What is greenwashing?

When a company falsely portrays itself as environmentally friendly.

What is product innovation?

Any new feature or improvement added to an existing product.

What percentage of new product launches fail?

Most.

What factors influence new product success?

Relative advantage, Compatibility, Observability, Trialability.

What is diffusion of innovation?

The process by which the adoption of innovation spreads across a population.

Who are innovators?

The very first group to adopt new technology.

Who are early adopters?

Not the very first, but among the earlier users.

Who are the early majority?

Those who wait a bit but are open to trying new things.

Who are the late majority?

Those who wait a long time to adopt new technology.

Who are laggards?

Those who wait forever or never adopt unless necessary.

What shape does the adoption of innovation typically follow?

A bell-shaped curve.

What are the four classic product life cycle stages?

Introduction, Growth, Maturity, Decline.

What happens in the introduction stage?

Companies often experience losses while launching a new product.

What happens in the growth stage?

Companies begin making profits.

What happens in the maturity stage?

Sales level out, and competition is high.

What happens in the decline stage?

Sales drop off.

How can a product be brought back from the decline stage?

Through repositioning.

What is a fad life cycle?

A short-lived, rapid adoption and decline.

What is a fashion life cycle?

A cyclical trend where products come in and out of style.

What are the core aspects of a product?

The fundamental purpose of the product.

What are the expected aspects of a product?

Features that are not core but are assumed.

What are the augmented aspects of a product?

Features that differentiate the brand.

What happens to augmented aspects over time?

They become expected.

What is unique about pricing compared to other marketing mix elements?

It is the only 'P' that directly brings in money.

What is the formula for revenue?

Revenue = Price × Quantity.

What is the formula for profit?

Profit = Revenue - Expenses.

What are the three types of pricing objectives?

Profit-oriented, Sales-oriented, and Status quo pricing.

What are the three profit-oriented pricing strategies?

Profit maximization, Satisfactory profits, Target ROI.

What are the two sales-oriented pricing strategies?

Market share, Sales maximization.

What is status quo pricing?

Maintaining current prices and adjusting slightly over time.

Is price matching illegal?

No, reacting to competitor prices is legal.