Marketing Final Exam cheat sheet

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					Foundation                                                  Mass/undifferentiated, differentiated, concentrated,       communicating the service promise, don’t
Decisions: Identify the key decision to be made; and        micromarketing/one to one.                                 overpromise .
any additional decision(s) required                         5. Identify and Develop Positioning Strategy             Pricing. Five C’s of Pricing: Company Objectives:
Problem/Opportunity: Clear description of the
                                                            Product attributes, benefits and symbolism, value,       Profit Orientation, sales orientation, competitor
problem. Relative importance, urgency, implications.
Stakeholders: Needs, interests, objectives,                 competition, market leadership.                          orientation, customer orientation. Customers: Price
implications                                                Postioning steps: 1. Determine consumers’                elasticity of demand QD = % change in QD/ % change
Analysis – Use marketing theory;                            perceptions and evaluations of the product or service    in price. Income effect, substitution effect, cross-price
Internal: (strengths/weaknesses) Resources, skills.         in relation to competitors. 2. Identify competitor       elasticity. Costs: variable cost, fixed cost, total cost,
Current financial position, revenue, costs, profits,        positions. 3. Determine Consumer Preferences. 4.         breakeven point, contribution per unit. Competition:
break-even, current marketing strategy (positioning         Select the Position. 5.Monitor the Positioning Strategy.
and target market). Current marketing mix (4P’s).                                                                    Oligopolistic, monopolistic, pure competition. Channel
Implications                                                Product. Product assortment/mix: complete set of all Members: manufacturers, wholesalers, retailers.
External: (Opportunities/threats). Environmental            products offered by firm. Product lines: groups of       Pricing Strategies: Cost-based, competitor based,
trends (PEST). Market trends, implications                  associated items. Product category: assortment of        value-based. New Product Pricing Strategies: Market
Consumer Analysis: Market segmentation, consumer            items that the customer sees as reasonable               Skimming: signal high quality, limit demand, earn back
needs, behavior, Implications                               substitutes for one another. Eg. Toothpastes in same     high RD costs. Works best when distinct product, high
Competitive Analysis: Who are they? Strengths,
                                                            line. Product line breadth: number of product lines, or end product, high competitor barriers to entry,
weaknesses, strategy, implications
                                                            variety offered by the firm. Eg. Colgate-Palmolive: Oral patentable. Market Penetration: set price low initially.
Other: What is special about this case? Eg. Service
business, B2B, international marketing, ethical issues.     care, personal care, household, pets. Product line       Works when market is price sensitive, low price does
Alternatives (marketing strategies)                         depth: number of categories within a product line. Eg. not signal low quality, production costs can fall as
Decision criteria: Identify decision criteria to            In oral care: toothpaste, kids toothpaste, floss. Stock  volume increases, capacity exists. Drawbacks include
evaluation alternatives, assumptions, constraints.          Keeping Units (SKU): individual items within each        “leaving money on the table”, may signal low quality,
Given and/or Your Own: Quantitative and qualitative         product category.                                        capacity needed. Psychological Factors affecting
analysis and evaluation; rationale, specific,
                                                            Effects of changing product. Change product mix          value-based pricing strategies: Price quality
implementable, mutually exclusive.
Each alternative must be a solution to the                  breadth to gain new markets, increase sales, compete relationship. Consumers use of reference pricing.
problem/opportunity. Must evaluation each                   in new venues. Change product mix depth to battle        Everyday low pricing vs high low pricing. Odd pricing.
alternative strategy consistently (adv/dis) and using       competitors, serve changing or new markets or realign 1. Motives: strong needs or wants- Physiological
the identified decision criteria.                           resources, delete unprofitable items. Change Number needs, Safety needs, Social needs, Personal needs 2.
Recommendation                                              of SKU’s to stimulate sales. Product Line Decisions for Attitude
Decision: Which of the above alternatives do you            Services: same services for products are applied to      3. Perception: determined by culture, tradition, and
recommend? Why? Recommend how you will
                                                            services.                                                overall upbringing 4. Learning
overcome the disadvantages identified.
Implementation Plan                                         Branding. Brand elements: brand names, logos,            Pricing Tactics: Business to business: seasonal
Marketing Strategy: Overall strategy, target market,        symbols, characters, slogans, jingles, packages. Value discounts, cash discounts, allowances (advertising,
positioning statement. Rationale.                           of branding: Brands facilitate purchasing, brands        listing), Quantity discounts (cumulative,
Marketing Mix: Product: Product classification, lines,      establish loyalty, brands protect from competition and noncumulative), Uniform delivered pricing (one
mix, and product life cycle. Price: Strategy, suggested     price competition, brands reduce marketing costs,        shipping rate), Geographic pricing (different prices in
price(s), and mark-up(s). Place: Strategy, levels of
                                                            brands are assets, brands impact market value. Brand different areas. Pricing tactics aimed at consumers:
channel, distribution intensity. Promotion: Strategy,
                                                            equity. Brand awareness, perceived value, brand          Price lining (setting a floor and ceiling price to
objectives, advertising, sales promotion, personal
selling, public relations, IMC, budgets and rationale.      associations, brand loyalty. Brand Ownership:            distinguish quality), price bundling, leader pricing
Expected Results: Market share, income (operating)          Manufacturer brands, private label, generic. Brand       (build traffic by offering low price). Consumer Price
statement, timeline, contingency. Rationale.                Names: corporate or family brand. Corporate and          Reductions: Markdowns, quantity/size discounts,
The Segmentation-Targeting-Positioning (STP)                product line brands, Individual names. Choosing a        seasonal discounts, coupons and rebates. Legal and
process includes:                                           name: Brand name should be descriptive, suggestive       Ethical Aspects of Pricing: deceptive reference prices,
1. Establish Overall Strategy or Objectives                 of benefits, easy to pronounce, remember, able to        loss leader pricing, price discrimination, price fixing,
2. Profile Segments                                         register/trademark, translatable. Brand Extension.       horizontal or vertical price fixing.
Geographic – country, province, city, climate.              Can dilute brand equity. Co-branding. Brand              Marketing Channels: Distribution. Wholesalers,
Demographic – age, gender, income, occupation,              Licensing.                                               retailers. Direct distribution: allow manufacturers to
religion, education. Psychographic – lifestyles, values,
                                                            Innovators, early adopters, early majority, late           deal directly with customers. Indirect Distribution:
self concept. Behavioural – benefits derived, usage
                                                            majority, laggards. Factors affecting product              using intermediaries. Push: manufacturer focuses its
rates, user status.
                                                            diffusion: Compatibility, relative advantage, observe-     promotional efforts on personal selling or sales
1. Seniors (63+): fastest growing; interested in travel,
                                                            ability, complexity. Developing a new product: idea        promotion. Pull: promotional efforts aimed at
luxury goods, investments; also like local goods
                                                            generation, concept testing, product development,          consumers to build demand and convince retailers to
2. Baby boomers (44-62): individualistic; leisure time is
                                                            market testing, product launch, evaluation of results.     carry. Multichannel Distribution: combination of
important; maintain being young
                                                            Product life cycle: introduction, growth, maturity,        direct and indirect. Distribution Intensity: Intensive:
3. Generation X (32-43): Most likely to carry high debt
                                                            decline.                                                   get products into as many outlets as possible (eg.
loads, be unemployed; demand convenience; prefer
                                                            Services: intangible, inseparable, variable, perishable.   Pepsi). Exclusive: grants exclusive geographic or very
word of mouth advertising
                                                            Knowledge gap: difference between what consumers           few retailers so that they don’t have competition and
4. Generation Y (13-31): media intensive and brand
                                                            want and what the company offers, close this through       ensure quality. Eg Rolex. Selective: lies between
conscious;
                                                            research. Five service dimensions: reliability,            intensive and exclusive. Helps seller maintain an image
5. Tweens (8-12): spend money on food, drink,
                                                            responsiveness, assurance, empathy, tangibles,             and control the flow of merchandise. Eg. Apparel.
clothing and electronics
                                                            standards gap: achieving service goals through             Channel Conflict. Administrated: Either party can walk
3. Evaluate Segment Attractiveness
                                                            training, commitment to service quality, delivery gap:     away. Contractual: Franchising is most common.
Identifiable, reachable, responsive, profitable
                                                            empowering service provides, provide support and           Corporate: parent company has complete control.
4. Select Target Market
                                                            incentives, use of technology, communication gap:
Supply Chain affects Marketing: designing                  value, consumers buy for premium not product, has to
distribution, making information flow, managing the        be carefully managed. Contests: increase customer
relationships among supply chain partners (mutual          involvement, generates excitement, requires
trust, open communication, common goals, credible          creativity, must be monitored. Sweepstakes:
commitments), making merchandise flow (distribution        encourage higher consumption, minimizes brand
centres: traditional, cross docking combinations),         switching among existing consumers, sales often
managing inventory (JIT).                                  decline after. Samples: encourage trial, offers direct
Retailing. 4Ps in retailing: product: right mix of         involvement, has high cost to firm. Loyalty programs:
merchandise to satisfy target market. Price: defines       encourage repurchase, creates loyalty, high cost.
value and image of a store. Promotion: difference          Point-of-Purchase Displays: Increase brand trial,
between flat and growing sales. Store credit cards and provides high visibility, provides in-store support,
gift cards can help, pricing promotions. Customer          difficult to get good location, can be costly. Rebates:
relationship management (CRM) databases are key for stimulate demand, increases value perception, easily
developing loyalty. Place: Convenience is key. Food        copied by competitors, may just advance future sales.
retailers: conventional supermarket, big-box food          Product Placements: Demonstrate product uses,
retailers, convenience stores. General Merchandise         displays products non-traditionally, introduces new
Retailers: discount stores (Wal-Mart), specialty stores products, firm has little control over display, product
(payless), category specialists (Chapters), department can be overshadowed. Trade Channel Sales
stores (sears), drugstores, off-price retailers (Winners), Promotions: Discounts and allowances, cooperative
extreme value retailers (Dollarama). Direct_Marketing advertising, sales force training (manufacturer trains
has 4 defining characteristics: it is targeted,            store staff). Personal Selling Process: Generate and
motivates an action, measurable, provide info for          qualify leads (trade shows, cold calls), Preapproach,
developing a marketing database. Forms of Direct           sales presentation and overcoming objections, Closing
Marketing: direct mail, catalogues, direct response tv, the sale, Follow-up. Sales force structure: company or
kiosks.                                                    manufacturer reps. Recruiting, training, motivating,
Integrated Marketing Communication. 3                      compensating, evaluating (objective, subjective).
components: target market, channels, evaluation.           Global marketing: Assessing global markets: Political,
Integrated Marketing Tools: Advertising, Personal          Economic, Socio-cultural, technology and
Selling, Sales Promotion, Direct Marketing, Public         infrastructure. Trade sanctions: Tariffs, quotas,
Relations (cause related marketing, event sponsorship, boycott, exchange control, trade agreements.
publications, annual reports, video and audio, media       Hofstede’s cultural dimensions: uncertainty
relations, electronic), electronic media (corporate        avoidance, individualism, masculinity, time
blogs, online games, text messaging, social networking orientation, power distance. Infrastructure:
site). Steps in planning an IMC campaign. Identify         transportation, communication, commerce,
target audience, set objectives (eg. Short term            distribution channels. Choosing a global entry
awareness, long term market share). Determine              strategy: export, franchising, strategic alliance, joint
Budget: Competitive parity, percentage of sales,           venture, direct investment. Three potential global
affordable budgeting. Convey the message: unique           market product strategies: sell the same product or
selling proposition, rational appeal, emotional appeal. service in home country and new country, sell similar
Evaluate and select media: media mix, media buy,           product, sell totally new product. Ethical issues:
mass media, niche media. Determine advertising             environmental concerns, global labour issues (wages),
schedule: Continuous, flighting, pulsing (continuous    Miscellaneous tips: Financial problems: Break-even,
and flighting, base level with bursts of ads). Create   quantity/price, mark-ups, selling costs, commission.
communications: make it creative, visually compelling.  Differentiate between services and products. Talk
Assess Impact: pretesting, tracking, posttesting.       about market segments, demographics, how you’d
Lagged effect, frequency, reach, gross rating points.   identify a segment. Steps in IMC. Apply Promotional
Web tracking software, online couponing, online         Mix. AIDA identify and describe, then modify
referring, click-through tracking.                      promotion in each stage, Criteria to assess global
Advertising, Sales Promotion and Personal Selling.      markets – economic, social, etc. Pricing strategies. PLC
AIDA model: Attention, interest, desire, action.        stages and how you might extend that cycle. Brand
Lagged effect: generally takes several exposures for ad naming considerations. Different ways to develop
to take effect. Advertising objectives: Inform,         promotion budget.
persuade, remind. Informative advertising: create         Growth Strategies: Market penetration (current
and build brand awareness. Persuasive Advertising:        product and current markets), Market Development
motivate customers to take action. Reminder               (current products in new markets), Product
Advertising: remind consumers to repurchase.              Development (new products in current markets),
Attempts to create top of mind awareness.                 Diversification (New products in new markets).
Consumer Sales Promotions. Coupons: stimulate
demand, encourages retailer support, allows for direct
tracking, high cost, low redemption rates. Deals:
encourage trial, reduce customer risk, retaliates
against competitors, may reduce perception of value.
Premiums: build goodwill, increases perception of

				
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posted:7/21/2012
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