Ch9. Marketing Exam Mistakes — High-Frequency Error Points

Strategy and Analysis Error Points

① STP order = Segmentation → Targeting → Positioning
   → Watch out for the trap: Positioning does NOT come first

② SWOT SO strategy = Use strengths to seize opportunities
   → ST = strengths + threats; WO = weaknesses + opportunities;
      WT = weaknesses + threats

③ Porter's competitive strategies = Cost Leadership · Differentiation · Focus
   → Focus can be either Cost Focus OR Differentiation Focus (two variants)

④ PLC Maturity stage = Sales PEAK, but profits DECLINE
   → Sales and profits do NOT peak at the same time

⑤ High involvement = Extensive decision-making
   → Low involvement = Limited decision-making (less comparison)

Mix and Tactics Error Points

⑥ Pricing approaches = Cost-based · Competition-based · Value-based
   → Cost-based is NOT the only method

⑦ Skimming vs. Penetration:
   → Skimming = HIGH price at introduction
   → Penetration = LOW price at introduction

⑧ Intensive · Selective · Exclusive = Channel BREADTH (not length)
⑨ PR = High credibility relative to cost (LOW controllability)
⑩ PUSH = Directed at trade/intermediaries; PULL = Directed at consumers

Services and B2B Error Points

⑪ 4 service characteristics = Intangibility · Inseparability · Heterogeneity · Perishability
   → Do not confuse or mix up the four terms

⑫ SERVQUAL = 5 dimensions: Tangibles · Reliability · Responsiveness
                             · Assurance · Empathy
   → Watch out for confusion in the order of the 5 dimensions

⑬ Services 7Ps = 4Ps + People · Process · Physical Evidence
⑭ B2B Buying Center roles = Users · Influencers · Buyers · Deciders · Gatekeepers
⑮ Gatekeeper = Controls information flow (NOT the actual purchaser)

Global and Relationship Marketing Error Points

⑯ Licensing ≠ Franchising
   → Licensing = IP rights only; Franchising = full business model

⑰ Glocal = Balance of standardization + localization
⑱ CLV = Present value of total profits over the full customer relationship
⑲ 5% increase in customer retention = 25–95% increase in profits
⑳ 5A customer journey = Aware · Appeal · Ask · Act · Advocate

Key Concept Cards

PLC Maturity = Sales Peak, Profit Decline ★★★★★ : Sales are at their maximum but profits are squeezed by intense competition. Memory tip: Maturity = highest revenue, NOT highest profit

4 Service Characteristics: Intangibility · Inseparability · Heterogeneity · Perishability ★★★★★ : Services cannot be touched, separated from their provider, standardized, or stored. Memory tip: IIHP — four ways services differ from goods

PUSH and PULL Direction ★★★★☆ : PUSH = pushing product through the channel (trade-directed); PULL = pulling consumers toward the product (consumer-directed). Memory tip: who is on the receiving end of your promotion?

Practice Quiz

Q. Which PLC stages are most commonly confused on marketing exams?

Growth stage: sales AND profits both increase simultaneously (the best period). Maturity stage: sales peak but profits decline (intensifying competition). The key mistake: assuming that the sales peak in the maturity stage means profits also peak. In reality, price competition and rising marketing spend erode margins. Maturity stage strategies: differentiation, cost reduction, segment focus.

Q. Why does service heterogeneity make quality management so difficult?

Service is delivered by people → it varies every time. Employee mood, condition, and individual customers all create variation. Standardization efforts have inherent limits. Solutions: service scripts and standard operating procedures; replace with technology (chatbots, self-service kiosks); staff training and motivation. Unlike manufacturing, you cannot inspect service quality before delivery.