General: Roll Two Dice You roll two fair dice, a green one and a red one. (a) What is the probability of getting a sum of 6? (b) What is the probability of getting a sum of 4? (c) What is the probability of getting a sum of 6 or 4? Are these outcomes mutually exclusive?
Marketing 340 – Exam 3 – Study Guide Analysis techniques for improving product mix: •Line extensions – development of a product, closely related to existing products, but designed specifically to meet different customer needs •Product modifications – changing one or more characteristics of a product - Quality Modifications - Functional Modifications - Aesthetic Modifications •When developing new products, ideas can come from either internal or external sources - Internal – marketing managers, researchers, sales personnel - External – customers, competitors, advertising agencies, management consultants •Product Differentiation – creating/designing products that are perceived as different from other products - Product quality – overall characteristics of a product that allow it to satisfy customer needs - Product Design – how a product is conceived, planned, produced - Product Features – specific design characteristics - Product Support Services – customer services human or mechanical efforts/activities a company provides to its customers •Product Positioning – creating and maintaining a certain concept of the firm’s product in the minds of the customers •Product deletion – eliminating a product from the product mix - Phaseout, runout, immediate drop •Characteristics of services: - Development - Pricing - Distribution - Promotion •Stages for Establishing Prices: 1. Development of pricing objectives - Goals that describe what a firm wants to achieve through pricing 2. Assessment of the Target Market’s Evaluation of price - Helps marketers decide the emphasis on price in overall marketing strategy 3. Determination of Demand - Demand is inversely related to price for most products 4. Analysis of demand, cost, and profit relationships Marginal Analysis 5. Evaluation of competitors’ prices 6. Selection of a basis for pricing 7. Selection of a pricing strategy - Pricing strategy – yields a certain price that may need refining 8. Determination of a specific price •Typical Marketing Channels for Consumer Products •Typical Marketing Channels for Business Products •3 factors affecting channel choice: - Market – target market, location, size - Product – cost/complexity, life cycle, delicacy - Producer – resources, control •Market coverage: - Intensive Distribution – uses all available outlets for product distribution - Selective Distribution – uses only some available outlets for distribution - Exclusive distribution – uses a single outlet for distribution •Retailing, Direct Marketing, and Wholesaling - Retailing – selling products that buyers intend to consumer o Types of Retailers: Generalmerchandise: department stores, discount stores, convenience stores, supermarkets Specialty – traditional (Foot Locker), category killers (The Home Depot), offprice retailers (T J Maxx) •Strategic issues in retailing consumer purchases are influenced by social and psychological factors - Location – least flexible variable of marketing mix - Retail positioning – identify an unserved/underserved market - Store image – should appeal to target market - Category management – managing groups of similar products produced by different manufacturers – used by supermarkets •Direct Marketing – using telephone, internet, and nonpersonal media to advertise •Direct selling – marketing products to ultimate consumers through facetoface presentation at home or in the workplace •Vending – use of machines to dispense products to consumers •Wholesaling – products bought for resale, making other products, or general business operations •Franchising – supplier granting a dealer the right to sell products in exchange for something - Franchiser receives percentage of sales