D373 Marketing in the Digital Era - Set 1 - Part 2

Correct Answer: A competitor launching a similar product

Strategic risks involve actions or decisions that affect an organization's ability to achieve its goals, such as competitor actions.

Correct Answer: To share information and strategies to manage risks across the organization

Effective communication ensures that all relevant parties are aware of the risks and how to manage them.

Correct Answer: A process failure in manufacturing

Operational risks include failures in internal processes, people, or systems that affect day-to-day operations.

Correct Answer: Product, Price, Place, Promotion

The traditional marketing mix, known as the four Ps, consists of Product, Price, Place, and Promotion, the controllable elements a firm combines to reach its target market.

Correct Answer: Dividing a market into distinct groups with similar needs or characteristics

Market segmentation divides a broad market into subgroups sharing similar needs, behaviors, or characteristics so marketing can be tailored more precisely and efficiently.

Correct Answer: Grouping customers by age and income

Demographic segmentation groups consumers by measurable population characteristics such as age, income, gender, education, and occupation.

Correct Answer: Values, lifestyle, interests, and personality

Psychographic segmentation groups consumers by psychological attributes such as values, attitudes, interests, and lifestyle, which often predict behavior better than demographics alone.

Correct Answer: Establishing a distinct place for a brand in the consumer's mind

Positioning shapes how a brand is perceived relative to competitors, establishing a distinctive and valued place in the target customer's mind.

Correct Answer: The specific benefit a customer receives that makes the offering worth choosing

A value proposition states the distinctive benefits a customer gains from an offering and why it is preferable to alternatives, forming the core of the brand's promise.

Correct Answer: Growth

During the growth stage, market acceptance builds and sales rise rapidly, often attracting new competitors and shifting the emphasis toward differentiation.

Correct Answer: They come under pressure as competition intensifies

In maturity, sales growth slows and competition intensifies, often producing price pressure and declining margins, prompting emphasis on differentiation and efficiency.

Correct Answer: The specific group of consumers a firm aims to serve

A target market is the specific segment or segments a firm selects to serve, allowing focused product design, messaging, pricing, and distribution decisions.

Correct Answer: Strengths, Weaknesses, Opportunities, and Threats

SWOT analysis assesses internal strengths and weaknesses alongside external opportunities and threats, informing strategic marketing decisions.

Correct Answer: Strengths and weaknesses

Strengths and weaknesses are internal factors the organization controls, such as capabilities and resources, while opportunities and threats arise from the external environment.

Correct Answer: Gathering and analyzing data to inform marketing decisions

Marketing research systematically collects and analyzes data about markets, customers, and competitors to reduce uncertainty in marketing decisions.

Correct Answer: Primary data is collected firsthand for the current research purpose

Primary data is gathered firsthand for the specific research question through surveys, interviews, or observation, while secondary data was previously collected for another purpose.

Correct Answer: Focus groups and in-depth interviews

Qualitative methods such as focus groups and in-depth interviews explore underlying motivations, attitudes, and reasoning that structured quantitative surveys cannot easily surface.

Correct Answer: The processes consumers use to select, purchase, and use products

Consumer buying behavior examines how individuals decide to search for, evaluate, purchase, use, and dispose of goods and services, guiding marketing strategy.

Correct Answer: Problem or need recognition

The process starts when a consumer recognizes a need or problem, which then triggers information search, evaluation of alternatives, purchase, and post-purchase evaluation.

Correct Answer: Doubt or discomfort a buyer feels after making a purchase decision

Post-purchase cognitive dissonance is the discomfort a buyer feels wondering whether they made the right choice. Reassuring follow-up communication helps reduce it and limit returns.