Marketing Final Exam

marketing mix

• product

• price

• place (distribution)

• promotion

standardized in the marketing mix

• promotion

• product

adapted in the marketing mix

• price

• place (distribution)

factors that encourage standardization

• economies of scale in production

• economies of scale in product research and development

• economies of scale in promotion

• “shrinking” of the world marketplace/economic integration

• global competition

factors that encourage adaption

• differing use conditions

• government and regulatory influences

• differing consumer behavior patterns

• local competition

• it is true to the marketing concept

what are the four halo effects of a brand

• availability

• consistency

• price/value

• emotion

according to Nestle CEO, what is a well-managed brand worth to their company

it is their most important asset and tool

the Nestle CEO says that “brands are an expression of the ___ and ___ value of a product”

functional and emotional

brand equity is

market value - balance sheet assets

top 5 global brands

1. Apple

2. Microsoft

3. Amazon

4. Google

5. Samsung

the CEO of Nestle said about brand personality “___”

brands are soulful creatures

what differences do we see with the product lifecycle curve between Western and Eastern cultures

it only applies to the West, the East tends to lag and there are less early adopters and more people adopting at once

product lifecycle stages

• introduction

• growth

• maturity

• decline

intermediary

acts as a liaison between manufacturers and consumers, facilitates distribution

sources for locating foreign intermediaries

1. distributor inquiries

2. U.S. department of commerce

3. trade sources

4. field sales organizations

5. customers

6. direct-mail solicitation

7. trade fairs

8. web sites

9. independent consultants

smile curve

smile curve explanation

most of the economic gain from this global supply curve is collected at the front end (new technology and high-tech components) and at the back end (marketing and sales), with less of the economic gain collected in the middle stages (lower-tech components and manufacturing)

what is transfer price

the price charged between related parties (a parent company and its
controlled foreign corporation) in an intercompany transaction

why do we have transfer pricing

for tax purposes the companies are not consolidated and the transactions are therefore not eliminated

how is transfer price determined?

the assets used, the risks assumed, and the functions performed by each group
member

what is dynamic pricing

selling the same product at different prices to different groups of people

how to implement dynamic pricing

1. price differentiation

2. ensure you’re using a proper value metric

3. utilize time in an auction type model

4. couponing and discounts

price transparency is key

five parts of the promotion mix

1. advertising

2. personal selling

3. sales promotion

4. direct marketing

5. public relations

advertising

any paid form of non-personal presentation and promotion of ideas, goods, or services; tend to be mass media

direct marketing

messages that targets particular customers with a personalized message

how do we use promotion throughout the product lifecycle

we use different promotion techniques during different stages

introduction = inform
growth = persuade
mature/decline = phase out

push promotion

personal selling, wholesaler to retailer to consumer

pull promotion

tell the consumer and they will ask the retailer to provide the product, consumer to retailer to wholesaler

Coca Cola campaign cycle

every 7-8 years Coca Cola moves to a new worldwide ad campaign

Coca Cola and standardization vs adaptation

Coca Cola uses standardized advertising and adapts when prudent or necessary

benefits of product placement as advertisement

better brand loyalty, people purchase more, and greater perceived satisfaction

three things a product placement should be

1. natural: emotions are natural

2. considerate: I understand where you’re going and I know where you’ve been

3. personal: empathetic

sales staff approaches at trade shows

• ethnocentric approach: staff from home country

• polycentric approach: staff from target country

• regional geographic approach: staff from a third country

variance of marketing themes by region (convenience, sustainable, sharable, etc)

each region has different themes that are important to them, know them before trying to enter the regions

the future of physical retail spaces

• convenience store

• experiential center

both will combine physical and digital resources

how is commerce likely to evolve in the next 20 years

• rate of change increases

• new infrastructure required

• innovation moves beyond imagination

• data becomes paramount

• consumers remain key voice

how has AI impacted A/B testing

it is much faster and more efficient than running multiple experiments

how does AI optimize programmatic advertising efforts?

• data analysis

• ad placement optimization

• bidding strategies

• ad fraud detection

• strategic implementation

how is generative AI used for mobile ad creation

• ad creation via prompting

• enhanced creative strategies

• scalability

what challenges does AI face in mobile ad creation?

• privacy concerns

• quality assurance

• ethical advertising

how is time spent at trade shows?

20% sales
20% education
20% future products
20% external
20% internal

value vs values

bargain hunting vs buying from brands that support what I believe in

personalization vs privacy

getting tailored experiences vs privacy protection

choice vs curation

being shown all items possible vs seeing what you would likely purchase

physical vs virtual

in-person shopping vs online shopping

human vs bot

comfort with human in our consumption process vs technology

what did product placement look like for ET

it was informal, and Hershey’s did advertising for the ET movie and Hershey’s products were used in the movie

what is the downsides of product placement

when not done well, it can turn customers off from the product