Midterm 2 Study Guide
Midterm 2 Study Guide 241
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This 9 page Study Guide was uploaded by JacksonB on Friday November 6, 2015. The Study Guide belongs to 241 at Brigham Young University taught by Swenson in Summer 2015. Since its upload, it has received 40 views. For similar materials see Marketing Management in Business at Brigham Young University.
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Date Created: 11/06/15
BUS M 241 Swenson Midterm 2 Study Guide Plan on spending 30-75 minutes on the exam. 50 multiple choice questions. Administered in the testing center. There is some math, so you may want to bring a basic calculator. Chapter 7 - Swing Group: group of people who are unsure about your product/brand; these people can be won over if you market to them through the love group. - Love Group: group of people who love your product/brand; these people make the best brand champions and spokespeople. - Hate Group: group of people who hate your product/brand; don’t bother trying to change their minds. - Geographic Segmentation: segmentation by region, city, climate, etc. - Demographic Segmentation: segmentation by age, gender, race, etc. - Psychographic Segmentation: segmentation by lifestyle, personality, values, etc. - Behavioral Segmentation: segmentation by usage situations, benefits, etc. - Most Used to Most Useful: the four segmentation methods listed above are listed in order of most used (geographic) to most useful (behavioral). - Segment: relatively homogenous group; customers within that group will respond to marketing efforts in a similar fashion. - Target: group of people you want to do business with, and who you focus on with your marketing. - Positioning: designing the company’s product offering so that it occupies a clear and valued place in the target customer’s mind. - USP: unique selling proposition; what specific claim makes your product special and unique in a way that no other product can match. - Perceptual Mapping: placing and describing customer’s perceptions of brands on a spatial map/graph. - Gap Analysis: compares hospitality brands based on the importance and performance of various features and benefits. - Hierarchal Values Analysis: examining the features and benefits of the product and defining how they connect to the personal values of customers. - Segmentation Criteria: is it measurable (countable number of people), accessible (can be reached through promotion efforts), durable (constant membership), substantial (large enough to be profitable), and unique needs (everyone has the same problem). - Targeting Criteria: market size (is the market big enough to focus our efforts on), expected growth (is the market growing), competitive position (how much rivalry is there), and cost to reach (can we access the market for a reasonable price). Chapter 8 - Adoption Life Cycle: process of how potential buyers learn about, try, adopt, and/or reject new products. - Innovator: the first small percentage of people to try something new. - Early Adopter: group of people who wait for the innovators’ approval. - Early Majority: larger group of people who debate buying a product once it proves successful. - Late Majority: larger group of people who take fewer risks and only buy new products when they’re convenient. - Laggards: skeptics who resist the influx of new products until there are no other options. - The Chasm: space of time between early adopters and early majority. - Functional Brands: these brands are related to basic needs like food, shelter, safety, health, etc. - Image Brands: these brands project a unique, desired image. - Experiential Brands: these brands focus attention on how it feels to interact with the brand. - Brand Image: giving consumers a definite impression about the brand. - Brand Awareness: making sure consumers know about the brand. - Brand Equity: when the brand loyalty is transferred to new products. - Brand Loyalty: when consumers purchase only their favorite brand. - Competitive Angle: specific features of a product that give you an edge in the competition for consumers. - Need to Believe: what significant problem does the product solve that your target audience cares about and is willing to pay for? - Reason to Believe: how effective is the product at solving the Need to Believe problem? - Blows Away Expectations: which situations does your product dominate in? - Quantifiable Evidence: what is the relevant info you use to support or enhance the product claims? - Unique Product Claim: how is your product distinctly different/more memorable than competitors and better at solving the problem? - Product Life Cycle: course of a product’s sales and profits over its “lifetime” (however long it’s sold). - Materials and Parts: products used in manufacturing that become part of the final product. - Capital Items: products that help in production or other operations. - Supplies and Services: maintenance items and services. - Convenience Products: fairly inexpensive product that merits little effort to buy. - Shopping Products: requires slightly more effort and is slightly more expensive than convenience products. - Specialty Products: require an extensive search process; the consumer is reluctant to buy a substitute. - Unsought Products: products that consumers don’t actively seek. - Product Items: specific version of a product. - Product Lines: group of very similar product items. - Product Mixes: sum total of all products sold by an organization. - Brand: name, term, or symbol that identifies someone’s product or service as distinct from anyone else’s product. - Idea Generation: ideas for new products come from employees, customers, competition, etc. - Idea Screening: don’t miss the boat (reject a good idea) or sink the ship (accept a bad idea). - Concept Testing: testing out a potential product with customers (possibly the most important step). - Marketing Strategy: deciding how to market this potential product. - Business Analysis: forecasting the profitability of the product. - Product Development: creating the actual product. - Market Testing: testing the actual product in sample markets (2-6 cities that are representative of the entire market) where we measure how successful it is. Chapter 9 - Servant’s Heart: service employee with high service quality and low productivity. - Tiger: service employee with high service quality and high productivity. - Kitten: service employee with low service quality and low productivity. - Fox: service employee with low service quality and high productivity. - Reliability: being able to perform the promised service with accuracy. - Assurance: competence, credibility, and courtesy; treating customers with respect and form a relationship of trust with them. - Tangibles: appearance of physical facilities and personnel. - Empathy: access, communication skills, and understanding. - Responsiveness: helping customers in a timely manner. - Intangibility: services can’t easily be displayed. - Inseparability: consumers and providers are all part of the service. - Variability: services depend on the people providing them, and when and where they’re provided. - Perishability: services can’t be stored for later. - 7 Ps of Service Marketing: product, price, place, promotion, people, process, physical environment. Chapter 10 - Breakeven Analysis: Fixed Cost/Price – Unit Variable Cost - Fixed Costs: costs that do not vary with output. - Variable Costs: costs that vary with output. - Unit Contribution: Price – Unit Variable Cost. - Percent Margin: Price – Variable Cost per Unit/Cost - Price Penetration: low prices at first to gain a higher market share. - Price Skimming: sell at a high price at first, then move down to a lower price level. - Contribution Analysis: (Price – Unit Variable Cost) * Volume. - Elasticity: percentage change in quantity demanded by consumers relative to the percentage change in price. - Elastic Demand: greater percentage change in quantity demanded; sensitive to change in price. - Inelastic Demand: smaller percentage change in quantity demand; not as sensitive to change in price - Golden Goose: pricing approach when you know your own costs and a lot about customer value. - Cost Plus: pricing approach when you know your own costs, but little about competitors and customers. - Value: pricing approach when you know your own costs, customer value, and costs. - Competitive: pricing approach when you know your own costs and a lot about your competitors. - Select the Pricing Objective: step #1 in setting prices; we want to maximize revenue (Revenue = P * Q). This will lead to greater profits (Profit = Sales – Cost OR Profit = (Price*Quantity) – [(Variable Cost*Quantity)+Fixed Costs]. - Determine Demand: step #2 in setting prices; whatever price a company charges will have an effect on demand. - Estimate Company Costs: step #3 in setting prices. - Know Your Competitor’s Prices: step #4 in setting prices. - Select the Right Pricing Approach: step #5 in setting prices. - Pricing Strategies: what the consumer is willing to pay depends largely on the buying situation and the internal dimensions of the product. - External References Price: what everyone else is paying for the product. - Internal Reference Price: what you believe you should pay given your past experience and the buying situation you’re in. - Substitutes: alternative products to the ones you’re trying to sell. - Marketing Efforts: consumers are willing to pay for something when they believe it has benefits for them of greater than 0. - Cost-Plus Pricing: adding a specific amount to the cost. - Target Return Pricing: profit, sales, Return on Investment (ROI). - Prestige Pricing: high price to signal quality and status. - Price Lining: different prices for different products in a product line. - Odd-Even Pricing: $19.99 vs. $20. - Bundle Pricing: two or more products in a single package. - Going-Rate Pricing: following the competition. - Perceived Value Pricing: determined by what the customer is willing to pay. Chapter 11 - Advertising: paid placement of persuasive messages to inform, generate interest, or call to action. - Sales Promotion: short-term incentives to encourage trial runs of products (from consumers) and increase prices. - Direct Selling: two-way communication between salesmen and customers designed to influence a purchase decision. - Direct Marketing: using direct communication o the consumer to generate a response (an order, request for information, etc.) - Public Relations: messages deliberately distributed through the media to manage the public’s perception. - Push Strategy: producers market to intermediaries, who then market to end users. - Pull Strategy: the opposite of push strategy; end users market to intermediaries, who market to producers. - Why Promote?: companies promote to increase demand for their products; through promotion, consumers become less price sensitive. - Cognitive: goal of advertising to build awareness that a product exists. - Affective: goal of advertising to persuade people to like the product. - Behavioral: goal of advertising to stimulate people to do something. - What Makes a Good Ad: 1) make sure the product is obvious, 2) make sure the advertiser is obvious, and 3) make sure the benefit is obvious. Chapter 12 - Direct Traffic: direct links or bookmarks. - Natural Search: process of making a site and its context relevant for search engines and searchers. - Paid Search: process of bidding on key words or terms to get more results when those key words are searched; commonly used metrics are CPC (cost-per-click), CPA (cost- per-action), CPM (cost-per-thousand), and CTR (click-through-rate). - Affiliates: measure of performance-based marketing where a business rewards one or more affiliates for every visitor brought about by the affiliates’ marketing. - Email: form of direct marketing where electronic mail is a means of communicating. - Social: systematic application of marketing in addition to other concepts and techniques to achieve certain behavior-related goals. - Owned Media: created by the brand (websites). - Purchased Media: paid for by the brand (advertising). - Earned Media: created by either the brand or a third party (social media). - US Online vs. US TV and Print Ad Spending: online advertising can be far cheaper than TV or print, and allows for longer advertisements. - Traditional Media Marketing vs. Social Media Marketing: promotion on social media allows for greater content and duration flexibility, credibility through trusted sources, and cheaper generating of awareness. - Reach: companies reach customers through tweets, likes, mentions, etc. - Engage: once customers are reached, they do their best to make the customers stick (stay on the site and continue to visit it) and to avoid bouncing (leaving the website and not returning). - Convert: if the customers stick, the company tries to convert them through relevant content, images, etc. - Media Convergence: where owned, paid, and earned media intersect and the marketing goes viral. - How you market online depends on your target customers, your products, and your promotion objectives. Chapter 13 - Direct Channel Systems: system where the manufacturer sends products directly to customers. - Mixed Channel Systems: system where the manufacturer distributes to customers directly and through intermediaries. - Indirect Channel Systems: system where the manufacturer distributes only through intermediaries. - Channel Intermediaries: middle-men who help make the distribution process more efficient. - Place: location, convenience. - Product: variety, brands. - Pricing: high-low, premium. - Promotion: advertising, sales promotion. - Presentation: atmospherics like lighting, music, displays, etc. - Personnel: knowledge, courtesy, communication skills, etc. - Intensive Distribution: maximum market coverage where the product becomes available in every possible outlet. - Selective Distribution: where a firm selects a small number of retail outlets in a certain geographical area. - Exclusive Distribution: only one retail outlet in a certain area. - Break Bulk: buy in flexible quantities. - Provide Assortment: greater variety of products. - Hold Inventory: get the product at any time. - Offer Services: delivery, warranty, etc. - Market Efficiency: buy from a few sellers as opposed to many. Remember these two questions given to us by guest lecturer Scott Webb: Q: If something goes wrong in a supply chain, who is responsible? A: Everyone Q: Supply chain management is A: The business of business. There will also be one question based on the presentation of the Nike spokesman who spoke in class. Class slides and the slides used in the review sessions are posted on Learning Suite. Be sure to review those, class notes, and the MyEducator readings. Good luck!
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