 Hi, welcome. My name is Dr. Marcy Stone and this is your practice exam review for case two of your strategic marketing course. Okay, so here is our organizational overview of case two. So the second case study will relate to in motion active wear company, a New York based company that initially focused on men's and women's active wear for racket sports and has recently decided to enter the growing and highly competitive general active wear slash athleisure wear. I was trying to combine those two. The company must better understand consumer behavior and brand strategies to maximize value for the company and its customers. In motion active wear company was founded in 2000 in New York. The company initially focused on producing branded men and women's tennis clothing sold through its 30 brick and mortar stores in the United States and select tennis clubs shops tennis club shops worldwide. A limited selection of popular products is also sold online. The company is known for its stylish and comfortable active wear marked by a recognizable logo that represents a reliable and respected brand. Sales notably increased over the years with brand recognition and loyalty in the focused segment of tennis quality markets market initiatives with worldwide professional tennis leagues and tournaments and endorsement agreements with top players contributed to sales growth. As the sport of pickle ball gained popularity in motion active wear company expanded its product line marketing efforts and retail options in sports clubs to be suitable for this sport as well. Continued business successes have been experienced as many pickle ball players were attracted to and became loyal to the brand. Clothing as a staple is always in demand ongoing environmental scanning at in motion active wear company heightened awareness of recent consumer trends related to active wear which is outpacing sales of other clothing categories. Multiple factors are contributing to strong industry growth and consumer demand including increased health conscious with more people becoming active in sports and recreational activities additional initiatives by governments and health insurance to encourage physical activity increased work from home situations in general and due to the COVID-19 pandemic with consumer preferences for comfortable casual clothing and active wear crossed over into fashion clothing with more people wearing stylish active wear for everyday events and leading to the term athleisure often being used for this clothing. This information was reviewed in the marketing planning process at in motion active wear company and supported the decision to expand into the rapidly growing highly competitive and fragmented market of general active wear which includes athleisure clothing the company would not experience the typically high barriers to entry into this industry given its existing business and supporting infrastructure such as suppliers sports affiliations retail stores and a modest online presence the company is already using comparable factor fabrics as other active wear companies versatile synthetic fabrics that are functional for the athlete such as sweat wicking and breathable while adaptable and stylish for all consumers the brand awareness of in motion active wear company should help the company attract additional consumers in selected segments this broader approach to active wear recognizes the definition of new target markets and modifications of the marketing mix furthermore the needs and wants of customers during and beyond purchase experiences require attention. There should also be a focus on industry and broader matters including diversity and inclusion supply chain practices and sustainability. There are many choices for consumers in the active wear space as such in motion active wear company must properly appeal to target markets to increase brand awareness encourage purchases and build loyalty in motion active wear company is moving forward with plans to expand its business into the broader active wear clothing market. You have been hired as a marketing consultant to help the company further build its brand and business with a better understanding of consumer behavior and recommendations for brand strategy. Okay, so now we're going to review five questions that are from the actual exam. The first question is ongoing environmental scanning at in motion active wear company has heightened awareness of recent consumer trends relative to active wear which is outpacing sales of other clothing categories multiple factors have contributed to sales growth including increased health consciousness among consumers with more involvement in sports and recreational activities work from home situations with a preference for comfortable clothing and the emergence of athleisure clothing executives at in motion active wear company suggests all factors they believe that demographics lifestyle and personality are the most critical influences on active wear purchase purchase decisions. As a marketing consultant to the company what is your expert opinion of this approach? So we have four answers here. So a is it is an acceptable approach since the described personal factors represent all influences on decisions regarding active wear. B it is not an acceptable approach since situational social and psychological factors also influence decisions regarding active wear. C is not an acceptable approach since situation psychological psychological and economic factors also influence decisions regarding active wear and then D it's an acceptable approach since the prescribed personal factors are the most obvious influences on decisions regarding active wear. So the answer here is B so it is not an acceptable approach since situational social and psychological factors also influence decisions regarding active wear. So when we're looking at different personal factors so demographics lifestyle and personality that is not they may be influences on active wear purchase decisions but really some of these things are situational which might include someone is walking through the mall sees the store decides that they need more leisure wear and they walk in so it's more situational. They just happen to be there at the same time and then we have social aspects. It may be that all their friends are wearing a leisure wear when they go out to happy hour at night. So now you need to feel like that is what you want to do as the consumer and then we have psychological factors that may also influence that so we've also we've already talked about the health conscious people. They may be it may be more that they feel like they have to wear this all day now as opposed to just I'm going to wear this while I'm working out. So then our course learning outcome for this question is apply key consumer behavior principles to marketing decisions. OK and then the next question is sales growth for active wear has been partially influenced by the fact that the clothing has crossed over into fashion clothing with more people wearing active wear for everyday events. This has led them to the term athleisure often being used for clothing. How would you explain explain to your client the likely reasons for this fashion trend based on the social factors of consumer behavior. So we have a culture family and social class have impacts on needs and ones with guidance on acceptable behaviors for the group be culture reference groups and social class have impacts on needs and ones while dictating the required practices to belong or see subcultures reference groups and social class influence percept perceptions of needs and once while encouraging similar behaviors and group conformity and then D culture family and opinion leaders influence perceptions of needs and ones with strict standards for behavioral practices of group members and followers. So the answer here is C. So you've got subcultures reference groups and social classes that influence those perceptions while encouraging similar behaviors and group conformity. So in this case it's the example that I gave about happy hour. If all of your friends are wearing leisure wear to happy hour then you will wear leisure wear to happy hour. It's more of a social class influence in this case. So if you're the only one who shows up in business clothing to happy hour then the rest of the group may look at you a little strange like you don't quite fit in. So then we have group conformity in that sense. So that is the correct answer. And this for this one the course learning outcome is apply key consumer behavior principles to marketing decisions. And the next question is in motion active wear company a company initially focused on tennis and pickleball segments is entering the general active wear to tap into other sports segments and athletes or clothing. The company offers premium priced high quality active wear which is made from performance fabrics and includes the brand's familiar logo in motion active wear company has a strong brand name and loyal customers in a recent meeting with executives in the client company a comment was made that the prices of the company's active wear relative to its quality are the only value created for consumers by the brand. What is the problem with this assumption. So our possible answers here are the brand also creates value for consumers through its attributes benefits and influences on self perception. The next one is the brand also creates value for consumers through its attributes alignment with personal values and similarity to other products. C is the brand will not have a financial value for consumers when comparing prices to quality for price sense insensitive customers consumers and then D is the brand will not have a financial value for consumers when comparing prices to quality unless competitive products are also reviewed. So the answer here is C or a the brand also creates value for consumers through its attributes benefits and influences on self perception. So by making a comment saying that let's see where is it was made by the making the comment that the prices of the company's active wear relative to its quality are the only value. The problem with that assumption is that it doesn't take into consideration the attributes of the brand the benefits and any influences that it does have on self perception. If you feel better in your clothing then you're going to be more confident. You're going to psychologically feel better about it and then that is going to influence your self perception. It's going to benefit your self perception. So it is important to not only consider the value that's created by the product but also what the other values are that are beneficial. And then the learning the course learning outcome for this question is use the marketing planning process to meet business goals. And then the next question is in motion active wear company has developed a reputation for its high quality active wear for the tennis and pickleball segments. Performance fabrics and stylish designs validate the premium prices. The brand and its logo are well recognized. Sales growth is attributed to alliances with sports leagues tournaments and players in the target segments along with the product sales primarily through the company store and sports clubs. A strong brand image has led to a loyal customer base. Environmental trends have resulted in planned product line extensions. As a marketing consultant to the company you think it's now important to assess brand equity which can impact marketing initiatives. What explanation do you have for this assessment. So A is to understand the perceptions and practices of competitors attract and maintain and retain customers and maintain a strong brand. B is to understand the perceptions and practices of new target segments attract and retain customers and maintain a strong brand. C is to understand the perceptions and practices of target segments attract and retain customers and maintain a strong and competitive brand. And D is to understand the perceptions and practices of consumers address the needs and wants of your target markets and maintain a competitive brand. So again environmental trends have resulted in planned product line extensions and you think that it's now important to assess brand equity which can impact your marketing initiatives. So the correct answer here for that is C to understand the perceptions and practices of your target segments attract and retain your customers and maintain a strong and competitive brand. So it is important to understand your specific target market. How you're going to attract new customers. How you're going to retain those customers and then maintain a strong competitive brand. These are all things that you would want to consider when you're looking at your marketing initiatives. And for this one the course learning outcome is summarized the relevance of brand management strategies to the overall marketing process. And then this is the final question. So you're working with executives at in motion activewear company on the exciting marketing entry into general activewear after many years as an established brand in selected sports segments. As part of the plan the company intends to target the athleisure clothing segment with trendy products. The company will be consistent with its high quality products and premium pricing. Primarily innovative sustainable fabrics will be used for the athleisure product line. In motion activewear company has ensured that its worldwide supply chain has fair labor practices acceptable working conditions and energy efficient facilities. What do you think will differentiate in motion activewear company's athleisure line from alternatives and be valued by target markets? Answer. So A is high quality and trendy products. B is sustainable fabric fabrics and trendy products. C is sustainable fabrics and supply chain characteristics. And D is the established brand and supply chain characteristics. The correct answer here is C sustainable fabrics and supply chain characteristics. So in this case they're really just focusing on the fact that they have looked into their supply chain and they know that it's using fair labor practices and they want to not only focus on that in the marketing but also explain why it's so important and then also they're using sustainable fabrics. So they're looking at the social responsibility of this aspect of the business as they develop these new products. And then the course learning outcome for this one is justify a focus on legal ethical and social responsibility matters in marketing decisions. Okay so in conclusion we reviewed case two of in motion active wear company. We looked at five specific questions that are on the exam and reviewed the answers. And then also we have a conclusion. So my name is Dr. Marcy Stone and I just wanted to say thanks for listening.