Politecnico

di Torino Paolo FERRERO

Marketing test
1. block
why should we study marketing?
The aim of Marketing is to make selling unnecessary. Marketing is managing profitable
customer relationship

what role does market play in satisfying human desires?

Marketing is a social and managerial process by which individuals and groups obtain
what they need, and want, through creating and exchanging products and value with others.

what are the differences between the marketing management orientations?

Production concept: The production concept holds that consumers will favor products
that are available and highly affordable.
Product concept: The product concept holds that consumers will favor products that offer
the most quality, performance and innovative features.
Selling concept: The selling concept holds that consumers will not buy enough of the
firms product unless it undertakes a large-scale selling and promotion effort.
Marketing concept: The marketing concept holds that achieving organizational goals
depends on knowing the needs and wants of target markets and delivering the desired
satisfaction better than competitors do.
Social marketing concept: The social marketing concept holds that marketing strategies
should deliver value to customers in a way that maintains or improves both the
consumers and the societys well-being.
Sustainable marketing concept: sustainable development meets the needs of the present
without compromising the ability of future generation to meet their own need. Sustainable
marketing counters today consumption against that of future consumers and future society as
a whole.

which is a simple model of the marketing process?

1.
2.
3.
4.
5.

Understand the marketplace and customer needs;

Design customer-driven marketing strategy;
Construct an integrated marketing program;
Build profitable relationships and create customer delight;
Capture value from customers to create profits and customer equity.

which are the 4 Ps?

Product, Price, Place, Promotion.

2. block
explain the role of ethics in marketing?
[Issues are decided by the free market and legal system;
A company should have a social conscience]

which is the difference between consumerism and environmentalism?

Environmentalism is an organized movement of concerned citizens and government
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agencies to protect and improve peoples living environment.

Consumerism is an organized movement of citizens and government agencies to improve

the rights and power of buyers in relation to sellers.

what is enlightened marketing?

Enlightened marketing is a marketing philosophy holding that a companys marketing
should support the best long-run performance of the marketing system.

3. block
explain company-wide strategic planning and its four steps
Annual plan
Long-range plan
Strategic plan
4 steps: analysis, planning, implementation, control

which are the components for a strategic plan?

Mission
Strategic objectives
Strategic audit
SWOT analysis
Portfolio analysis
Objectives and strategies

which is the brand statement mission?

A mission states the purpose of a company, asking basic question is a sign of strength,
not uncertainty. Traditionally, companies have defined their business in product terms or in
technological terms, but mission statement should be market-oriented.
A mission should be: Realistic; Specific; Based on distinctive competencies; Motivating

what is the SWOT analysis?

A SWOT analysis draws the critical strengths weaknesses opportunities and threats
SWOT from the strategic audit.
Opportunities: Economic climate, demographic changes, market, technology.
Threats: competitors, channel pressure, demographic changes, politics(European
legislation will force fuel consumption target).
Opportunities and threats: managers need to identify the main threats and opportunities
that their company faces.
Strengths and weaknesses: the strengths and weaknesses in the SWOT analysis do not
list all features of a company, but only those relating to critical success factors, the strengths
or weaknesses are relative not absolute.

what is a business portfolio?

The business portfolio is the collection of businesses and products that make up the
company, It is a link between the overall strategy of a company and those of its parts, The
best business portfolio is the one that fits the companys strengths and weaknesses to
opportunities in the environment. The company must analyze its current business portfolio
and decide which businesses should receive more, less or no investment and develop growth
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strategies for adding new products or businesses to the portfolio.

which role marketing plays in strategic planning?

Marketing plays a key role in the company's strategic planning in several ways:
First, marketing provides a guiding philosophy - the marketing concept - which suggests
that company strategy should revolve around building profitable relationships with important
consumer groups;
Second, marketing provides input to strategic planners by helping to identify active
market opportunities;
Finally, within individual business units, marketing designs strategies for reaching the
unit's objectives.

which are the components of the marketing mix

4 Ps

4. block
describe the environmental forces that affect a companys ability to serve its
customers
Major environmental forces: demographic, economic, natural, technological, political
and cultural
Demography is the study of human populations in terms of size, density, location, age,
gender, race, occupation and other statistics. The demographic environment is of major
interest to marketers because it involves people, and people make up markets.
Economic environment consists of factors that affect consumer purchasing power and
spending patterns. Nations very in their levels and distribution of income: Subsistence
economies; Industrial economies.
Natural environment involves the natural resources that are needed as inputs by
marketers, or that are affected by marketing activities.
Technological environment is perhaps the most dramatic force now shaping our destiny,
the technological environment changes rapidly. Marketers should be aware of the following
trends in technology.
Political environment consists of laws, government agencies and pressure groups that
influence and limit various organizations and individuals in a given society.
Cultural environment is made up of institutions and other forces that affect society's
basic values, perceptions, preferences and behaviors.

explain how changes in the demographic and economic environments affect

marketing decisions
Demographic shifts have important implications for marketing managers, marketers
must track demographic trends and moves carefully in order to identify new product and
market opportunities for their company.
Economic environments: some countries have subsistence economies: they consume
most of their own agricultural and industrial output, hence offer few market opportunities; At
the other extreme are industrial economies, which constitute rich markets for different kinds
of goods.
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explain the key changes in the political and cultural environments

Public policy implications: Laws are created at different levels; Member states vary in
the extent to which they comply with EU legislation; Regulations are constantly changing.
Cultural environments: People grow up in a particular society that shapes their basic
beliefs and values, The major cultural values of a society are expressed in people's views of
themselves and others, as well as in their views of organizations, society, nature and the
universe.

5. block
describe how culture, subculture and social class influence consumer buying
behavior
Culture is the most basic cause of a person's wants and behaviors. Growing up in a
society, a child learns basic values, perceptions, wants and behaviors from the family and
other important institution.
Each culture contains smaller subcultures or groups of people with shared value systems
based on common life experiences and situations. Subcultures include nationalities, religions,
racial groups and geographic region. Many subcultures make up important market segments
and marketers often design products and marketing programs tailored to their needs.
Almost every society has some forms of social class structure. Social classes are
society's relatively permanent and ordered divisions whose members share similar values,
interests and behaviors.
Social classes:

describe how consumers personal characteristics and primary psychological factor

affect their buying decisions
Personal factors: buyers decisions are also influenced by personal characteristics such as
the buyer's age and lifecycle stage, occupation, economies situation, lifestyle, and personality
and self-concept.
Age and life-cycle stage: People change the goods and services they buy over their
lifetimes. Tastes in food, clothes, furniture and recreation are often age related.
Occupation: Persons occupation affects the goods and services bought. Blue-collar
workers tend to buy more work clothes, Whereas office workers buy more smart clothes.
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Economic circumstances: Some marketers target consumers who have lots of money and
resources, charging prices to match.
Lifestyle: People coming from the same subculture, social class and occupation may
have quite different lifestyles. Lifestyle is a person's pattern of living as expressed in his or
her activities, interests and opinioned. Lifestyle captures something more than the persons
social class or personality. It profile a person's whole pattern of acting and interacting in the
world.
Personality and self-concept: Each person's distinct personality influences his or her
buying behavior. Personality refers to the unique psychological characteristics that lead to
relatively consistent and lasting responses to one's own environment.
Psychological factors: A person's buying choices are further influenced by four
important psychological factors: Motivation, perception, learning and beliefs and attitudes.
Motivation: Need becomes a motive when it is aroused to a sufficient level of intensity.
A motive (or drive) is a need that is sufficiently pressing to direct the person to seek
satisfaction.
Perception: A motivated person is ready to act, how the person acts is influenced by his
or her perception of the situation. Two people with the same motivation and in the same
situation may act quite differently because they perceive the situation differently. People are
exposed to a great amount of stimuli every day.
Learning: When people act, they learn. Learning describes changes in an individual's
behavior arising from experience.
Beliefs and attitudes: Through doing and learning, people acquire their beliefs and
attitudes. These, in turn, influence their buying behavior. A belief is a descriptive thought that
a person has about something. An attitude describes a person's relatively consistent
evaluations, feelings and tendencies towards an object or idea.

describe the Maslows hierarchy of need

which are the stages in the buyer decision process?

Need recognition Information search Evaluation of alternatives Purchase
decision Post purchase behavior
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6. block
how does the business buying process differ from the consumer buying process
UsersInfluencersBuyersDecidersGatekeepers

outline the major influences on business buyers?

EnvironmentalOrganisationalInterpersonalIndividualBuyers
7.1 explain the importance of information(MIS)to the company and its understanding of the
marketplace

7.2 outline some strengths and weakness of marketing research conducted online

8.1 define customer value and why is it important in creating and measuring customer
satisfaction
A customer-centred company is one that focuses on customer developments in designing its
marketing strategies and on delivering superior value to its target customers
Customer satisfaction depends upon the products performance relative to a buyers
expectations.
8.2 which are the concepts of value chains and value delivery systems and explain how
companies go about producing and delivering customer value
The value chain is the main tool for identifying ways to create more customervalue
It breaks a firm into nine value-creating activities to understand the behaviour of costs in the
specific business and potential sources of competitive differentiation
A customer value delivery system is a system made up of the value chains of the company
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and its suppliers, distributors, and ultimately customers, who work together to deliver value to

customers.
8.3 which is the role of customer relationship management?
Customer relationship management involves managing detailed information about
individual customers and carefully manage customer touch points.
9.1 define the four steps in designing a customer-driven marketing strategy

Market segmentation involves dividing large, heterogeneous markets into smaller

segments that can be reached more efficiently and effectively with products and services that
match their unique needs.
9.2 which are the possible value proposition?

10.1 what is a competitive advantage?

A competitive advantage is an advantage over competitors gained by offering consumers
greater value, either through lower prices or by providing more benefits that justify higher
prices.
10.2 why is it fundamental to understand competitors as well as customers through competitor
analysis?
10.3 which are the fundamentals of competitive marketing strategies based on creating value
for customers?
10.4 what are the advantages and disadvantages of a market-nicher strategy?
11.1 define the term product
A product is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need.
11.2explain the main classifications of products?
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11.3 describe the decisions companies make regarding their individual products, product
lines,and product mixes?
Individual product decisions:Product attributes(Product qualityProduct featuresProduct style
and design)
BrandingPackagingLabellingProduct-support services
A brand is a name, term, sign, symbol, or design, or a combination of these that identifies the
goods or services of one seller or group of sellers and differentiates them from those of
competitors.
Packaging :To hold and protectTo attract attentionTo describe the productTo make a sale
Label:Identify products or brandsGrade the productDescribe the productPromote the product
Product lines: Product line stretching means increasing the product line by lengthening it
beyond its current range
Product line filling means increasing the product line by adding more items within the present
range of the line
Product mix decisions:Add new product lines, widening its product mix
Lengthen its existing product lines to become a more full-line company
Add more product versions of each product
Pursue more or less product line consistency depending upon goals
12.1 which are the steps in the new-product development process?

12.2 explain how companies find and develop new-product ideas?

Internal sources: Formal researchExecutivesEngineersDesignersManufacturersSalespeople
External sources: CustomersCompetitorsDistributors, suppliers, others
Ideas are screened by product review committees who review a summary of the idea
complete with estimates of market size, product price, development time and costs,
manufacturing costs, and rate of return
12.3 describe the stages of the product life-cycle?

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12.4 explain how marketing strategy changes during a products life-cycle phase?
13.1 what is a service?
A service is any activity or benefit that one party can offer to another which is essentially
intangible and does not result in the ownership of anything.
13.2describe the tangible-intangible continuum for goods and services?

13.3which r the service characteristic?

Service intangibility means that services cannot be seen, tasted, felt, heard or smelt
before they are bought
Service inseparability means that services are produced and consumed at the
same time and cannot be separated from their providers, whether the providers are people or
machines.
Service variability means that services may vary greatly depending on who provides them
and when, where, and how.
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Service perishability means that services cannot be stored for later sale or use.

14.1what is price?
Price is the amount of money charged for a product or service, or the sum of the values that
consumers exchange for the benefits of having or using the product or service.
14.2 why is it important to understand customer value perceptions when setting price?

14.3 what r the differences between cost-based and value-based pricing?

15.1 What is the promotional mix?

Promotion mix (marketing communications mix) is the specific mix of advertising, sales
promotion, public relations, personal selling, and direct marketing tools that the company uses
to persuasively communicate customer value and build customer relationships.
15.2 what is integrated marketing communications(IMC)?
Integrated marketing communications is the concept under which a company carefully
integrates and coordinates its many communications channels to deliver a clear, consistent
and compelling message about the organisation and its products.
15.3 what is the AIDA model?
AttentionInterest---Desire----Action
15.4 descibePush versus pull promotion strategy

16.1 what is advertising?

Advertising is any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor
16.2 what is a creative concept?
A creative concept is the compelling big idea that will bring the advertising message
strategy to life in a distinctive and memorable way
16.3 what do reach ,frequency, and impact mean in advertising?
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Reach is the percentage of people in the target market exposed to an ad campaign during a

given period
Frequency is the measure of how many times the average person in the target market
exposed to the massage
Media impact is the qualitative value of an exposure through a given medium
16.4 what ad delivery patterns r possible?
Continuity is scheduling ads evenly within a given period
Pulsing is scheduling ads unevenly, in bursts, over a certain time period
16.5 which r the main issue that u have to take in account in the international advertising
decisions?
Standardisation or differentiation
Centralisation or decentralisation
Media planning, buying and costs
International advertising regulations
16.6 what is public relations?
Public relations refers to building good relations with company publics by obtaining
favourable publicity, building up a good corporate image, and handling or heading off
unfavourablerumours, stories and events.
17.1what is personal selling?
Personal selling is personal presentation by the firms sales forcefor the purpose of making
sales and
building customer relationships.
17.2 which r the steps in sales force management?
Design strategy and structureRecruit and select people Train salespeople
Compensate salespeople
Supervise salespeopleEvaluate salespeople
17.3what is the workload approach to sales force size?
The workload approach is an approach to setting sales force size by accounting for the size,
account status, and other factors related to the effort required to maintain them, and then
determining how many salespeople are needed to call on them the desired number of times.
17.4which are the steps in effective selling?
Prospecting and qualifyingPre-approach ApproachPresentation and
demonstrationHandling objectionsClosingFollow-up
17.5what is relationship marketing?
Relationship marketing is the process of creating, maintaining and enhancing strong,
value-laden relationships with customers and other stakeholders.
17.6what r sales promotions?
Sales promotions are short-term incentives to encourage purchase or sales of a product or
service.
18.1 what is direct marketing?
Direct marketing is the direct communication with carefully targeted individual customers to
both obtain an immediate response and cultivate lasting customer relationships.
18.2 what is a customer database?
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A customer database is an organised collection of comprehensive data about individua

customers or prospects, including geographic, demographic, psychographic and behavioural

data
18.3 what do clicks-and mortar marketers mean?

19.1 what is a value delivery network?

A value delivery network is a network made up of the company, suppliers, distributors and
customers who partner with each other to improve the performance of the entire system
19.2 what is a marketing channel?
A marketing channel (also known asa distribution channel) is a set of interdependent
organizations involved in the process of making a product or service available for use or
consumption by the consumer or business user.
19.3 what is a franchise?
A franchise organization is the most common type of contractual relationship, which
exists between a manufacturer, wholesaler or service organization and independent
businesspeople (franchisees) who buy the right to own and operate one or more units in the
franchise system.
19.4 what is disintermediation ?
Disintermediation is the elimination of a layer of intermediaries from a marketing
channel or the displacement of traditional resellers by radically new types of
intermediaries
19.5what is retailing?
Retailing includes all the activities involved in selling goods and services directly to final
consumers for their personal, non-business use.
19.6 what is marketing logistic?
Market logistics includes all the tasks involved in planning, implementing and controlling
the physical flow of goods, services and related information from points of origin to points of
consumption or use to meet customer requirements at a profit.
20.1 what is global marketing?
Global marketing is marketing that integrates or standardises marketing actions across
geographic markets.
20.2what promote the WTO and GATT?
The GATT promotes world trade by reducing tariffs and other international trade barriers.
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The WTO oversees GATT.

General Agreement on Tariff and Trade

World Trade Organizaiton
20.3 what and which r the main regional free trade zones?
Regional free trade zones are economic communities based on groups of nations organised
to secure common goals in the regulation of international trade
EU
European Union
NAFTA North American Free Trade Agreement
CAFTA Central American Free Trade Agreement
FTAA
Free Trade Area of the Americas
MERCOSUR Latin American and South American
CAN
Andean Countries
CSN South American Community Nations
20.4 which indicators of market potential do u use?
Demographic characteristics
Geographic characteristics
Economic factors
Technological factors
Socio-cultural factors
Political and legal factors

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