Marketing and Business Development Flashcards

What is brand equity?

Answer: The premium value a brand adds beyond the functional value of a product

Brand equity refers to the added value that a well-known brand name provides to a product beyond its functional attributes, often enabling a company to charge a premium price.

In Ansoff's Matrix, what is 'market development'?

Answer: Introducing an existing product to a new market

Market development involves taking an existing product and entering a new market segment or geographic territory to drive business growth.

What is the primary purpose of conducting a competitive analysis?

Answer: To understand competitors' strengths and weaknesses in order to identify opportunities and threats

Competitive analysis helps a business understand rival companies' strategies, strengths, and weaknesses to inform better decision-making and uncover market opportunities.

What does ROI stand for in a business and marketing context?

Answer: Return on Investment

ROI (Return on Investment) measures the profitability of an investment by comparing the net profit gained relative to the cost of the investment.

Which distribution strategy involves selling through a limited number of carefully chosen retail outlets, commonly used for premium or specialty products?

Answer: Selective distribution

Selective distribution uses a limited number of retail outlets to balance market coverage with maintaining control over how the product is presented and sold.

What does a marketing funnel represent?

Answer: The journey customers take from initial awareness of a product to the final purchase decision

A marketing funnel illustrates the stages a prospect passes through — from awareness and interest, through consideration, to the final conversion or purchase.

What is a key characteristic of inbound marketing compared to outbound marketing?

Answer: Inbound marketing focuses on creating valuable content to attract customers organically

Inbound marketing focuses on creating valuable content such as blogs, SEO, and social media to naturally attract potential customers, rather than interrupting them with outbound advertising.