MBA EXAM QUESTIONS WITH 100% CORRECT ANSWERS
What are the 3 rules of market segmentation? - Answer- 1. collectively exhaustive
2. mutually exclusive: each segment should be distinct (i.e. no overlap)
3. psychographic segments: segments are based on value and not demographics
4 types of val...
What are the 3 rules of market segmentation? - Answer- 1. collectively exhaustive
2. mutually exclusive: each segment should be distinct (i.e. no overlap)
3. psychographic segments: segments are based on value and not demographics
4 types of value for customers - Answer- 1. functional value: solution to customer's
problem
2. monetary value
3. social value
4. psychological value
3 types of value-based segmentation analysis and 1 key note. - Answer- 1. user-based
segmentation
2. benefits-based analysis
3. occasion-based segmentation
* key application note: all analysis should end with a list of potential customers based on
their preferences
what is market targeting and who do you target? - Answer- which segment will you
serve with your messaging and which will you not serve
target customers that you can create value for.
attribute by segment table - Answer- * 1st columns: customers by psychographics
* Rows: attributes important in product category
* cells relative performance of you vs. competition
what are the 3 parts of a marketing positioning statement? - Answer- 1. description of
target customer
2. description of product category
3. benefits to customer relative to competition
Marketing positioning: 2 steps and 2 checks - Answer- steps:
1. develop offerings value proposition
2. select 1 to 2 key benefits to anchor positioning
checks:
1. does it create value for the customer?
, 2. does it differentiate from the competition?
What is a value proposition? - Answer- objective assessment of all of the benefits of
buying, owning, and consuming a product or service written from the customer's
perspective
what are the points of parity? - Answer- how a product is better or different or
differentiated from the competition
Ansoff Matrix for opportunities in sales growth - Answer- 1.) currents customers +
current offerings = market penetration
2.) current customers + new offerings = product development
3.) new customers + current offerings = market development
4.) new customers + new offerings = diversification
gap analysis - Answer- a marketing research method that measures the difference
between a customer's expectation of a service quality and what actually occurred
Peak-end rule - Answer- We judge experiences largely based on how we feel at the
peak and the end of the experience.
4 types of value that customers create for a company - Answer- 1.) direct monetary
value
2.) loyalty
3.) information (e.g. feedback)
4.) communications (e.g. WOM)
Licensing - Answer- The grant of the right to use another party's intellectual property on
their products or services in exchange for financial consideration, typically a royalty.
3 additional reasons besides revenue to enter into a licensing agreement - Answer- 1.)
explore different product lines
2.) explore different markets
3.) strengthen their underlying trademark rights.
What are the 4 ways to determine a royalty rate? - Answer- 1.) Cost approach
2.) 25% rule
3.) Income approach
4.) Market approach
What is the cost approach for determining royalty rate and the drawback? - Answer- It
measures how much the licensee would have to invest if it were to develop the property
itself. It then arrives at a royalty rate that would compensate the licensor for the
approximate amount of such a hypothetical investment. It ignores the market value of
the property or its income potential.
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