Download FINAL EXAM STUDY GUIDE

FINAL EXAM STUDY GUIDE
Semester 1 –Marketing I - KEY
This study guide is sorted by chapter for ease in studying. Be sure to study this sheet before the final.
Your final is on ___________________________________.
CHAPTER 1 – MARKETING IS ALL AROUND US
Word bank:
Information
Possession
Place
Price
Marketing Research
Consumer
Place
Selling
FACTS
1. Providing __information___ utility for their products would be important for businesses engaging in non-price
competition.
2. __Possession____utility increased when Jack in the Box began accepting VISA and MasterCard.
3. ___Price________ is the cost of an item.
4. If an owner of a Foot Locker decides to rent store space next to a music store where teens shop frequently, then the
owner’s decision to add to their product is known as __place_ utility.
TERMS
5. Time Utility –
Having a product available at a certain time of year or a convenient time of day
6. Information Utility –
Communication with consumers to inform them of the benefits of the product
7. Form Utility –
Changing raw materials or putting parts together to make them more useful
8. Place Utility –
Involves having a product where customers can buy it
9. Possession Utility –
The exchange of a product for some monetary value (cash, credit, check, etc)
Of the utilities above circle the one production utility (form). The others are
Marketing
utilities.
Channel Management/Distribution
The process of deciding how to get goods into customer’s hands. Physically moving and storing goods is part of distribution
planning.
-Market Planning
Involves understanding the concepts and strategies used to develop and target specific marketing strategies to a select
audience (finding a target market)
-Marketing Information Management
Getting information about customers, trends, and competing products. Gathering information, storing it, and analyzing it.
This can include surveys, questionnaires, and market research studies.
-Pricing
Decisions concerning how much to charge for goods and services.
-Product/Service management
Obtaining, developing, maintaining, and improving a product in response to market opportunities.
-Promotion
To inform, persuade, or remind potential customers about a business’s products or services
-Selling
Provides customers with the goods and services they want, it can be to the consumer or business to business
CHAPTER 2 – BASIC MARKETING CONCEPTS
FACTS
Word bank:
Promotion
place
Demographics
Price
Psychographics
discretionary
demographics
product
consumer
target market
geographics
product benefits
10. Herbal Essences makes a shampoo targeted to women with curly hair. This is an example of segmenting the
marketing using _product__ __benefits___.
11. Hot Topic will be a new retail clothing store whose __target__ __market__ is girls, ages 14-21. The store owners
should use strong colors and bright lighting to attract their target customers.
12. Products designed to appeal specifically to “Baby Boomers” (people born between 1946 and 1964) reflect a concern
for customers’ ___demographics____.
13. Mrs. Lutz bought her son Jack a radio-controlled car for his birthday. In the eyes of marketers for radio-controlled
cars, Jack is the ____consumer________.
14. You would use your ____discretionary___ income to purchase a magazine subscription (luxury item) and disposable
income to buy food, clothing or a home (necessities).
15. Best Buy would send catalogs to music teachers, dancers, and other music lovers as this is an example of
_____psychographics____ (values and attitudes that shape a consumers’ lifestyle).
16. The four basic marketing decisions are __product__,___price___, __place__and __promotion__.
TERMS
17. Psychographics –
Involves studies of consumers based on social and psychological characteristics (lifestyles, attitudes, feelings toward
money, etc)
18. Consumer –
The people that actually use the product
19. Customer –
The person that buys the product
20. Customer Profile –
Includes information about the target market with regard to age, income level, ethnic background, occupation,
attitudes, lifestyle, or geographic residence
21. Marketing Mix –
Comprises the four basic marketing decisions: product, price, place, and promotion
22. Market –
All the potential customers that share common needs and wants, and who have the ability and willingness to buy the
product
23. Market Segmentation –
A way of analyzing a market by specific characteristics in order to create a target market.
24. List the three economic benefits of Marketing Lower Prices, New & Improved Products, and Added Value (utility)
Know SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats). Identify what each statement is an example of.

Babies R Us sells many different types of products ____Strength__________________________

Babies R Us is now second to Carters. _________Threat_____________________

Babies R Us markets successfully online (ex. Amazon) __________Strength_______________________

Babies R Us could look for strategic partners or do it alone. _________Opportunity_______________________

Babies R Us could potentially be left without baby clothes if embargoes are implemented on Japan. ___Threat___

Babies R Us has 2000 stores in U.S. and all over the world. ______Strength____________________

Babies R Us has strong competition from Carters, Kohls, Toys R US, and Target. _______Threat_________________

Babies R Us’s retail is seasonal, just like any other retailer. _________Threat___________________

Potential for joint ventures and strategic alliances with other businesses. __________Opportunity_________________
CHAPTER 17 – PROMOTIONAL CONCEPTS AND STRATEGIES
FACTS
Word bank:
Customer
employee
incentives
Publicity
promotion
loyalty
General Public
25. Lori wants to sell her car and places an ad about the car in her local newspaper. In marketing terms, Lori has made a
_____promotion_____decision.
26. The type of promotional strategy that a business often has the least control over is __publicity__.
27. As Joe opened a new box of tissues, he noticed a card inside listing prizes he could win if she wrote his name and
address on a piece of paper and mailed it to the tissue manufacturer, who would pull 10,000 names of winners out of
an enormous collection bin. The tissue manufacturer is promoting sales through _____incentives___.
28. In November, Shop and Save offers consumers a free turkey if they purchase $200 of groceries during the month.
This offer is an example of ____loyalty___marketing programs.
29. When Schnuck’s changes the color of their bags from tan to pink during the month of October, this is promotion
____general public________________ relations.
30. A company recognizes an employee for his work with Junior Achievement on the company web site is an example of
____employee___________ relations.
31. Lowe’s helps customers load lumber into their cars for free. This is an example of __customer________ relations.
CHAPTER 17 – PROMOTIONAL CONCEPTS AND STRATEGIES
TERMS

Product Promotion—promotional activities that explain the major features and benefits of the product or service.

Institutional Promotion—this is used to create a favorable image for a business, help it advocate for change, or take
a stand on trade or community issues.

Promotional Mix—a combination of the strategies—Advertising, Sales Promotion, Public Relations and Personal
Selling.

Advertising—non personal promotion of ideas, goods, or services in a variety of media outlets like radio, television,
billboards, newspapers, and the Internet

Public Relations—activities that enable an organization to influence a target market through campaigns that help
build a favorable image for a company, its products, or its policies.

Publicity –involves bringing news or newsworthy information about an organization to the public’s attention.

Sales Promotions—Activities directed at business or retail customers to boost sales

Trade Promotions—are sales promotion activities designed to get support for a product from manufacturers,
wholesalers, and retailers. More money is actually spent promoting to other businesses then to consumers.

Premiums –low cost items given to a consumer at a discount or for free—factory packs, traffic builders, and coupon
plans

Incentives—to promote products because they create customer excitement and increase sales. Higher priced
products earned and given away through contests, sweepstakes, and rebates.

Promotional Tie-Ins –involve sales promotional arrangements between one or more retailers or manufacturers.
Example McDonalds and Disney Happy Meal
Chapter 18 – Visual Merchandising
Word Bank:
Architectural Display
Proportion
Open Display
Realistic
Related Merchandise
Balance
Line of Goods
Closed Display
Semi Realistic
Direction
Point of Purchase Display
Curved
32. Creating a display with desks, chairs, and books would make customers feel like they could almost sit in a classroom.
What type of setting is this?
Realistic
33. Express was trying to sell complete outfits this year, rather than individual items. Their displays featured the entire
ensemble: pants, a shirt, tights, a necklace, and earrings. What type of display is this?
Related Merchandise
34. JC Penney’s Christmas display featured a HUGE Christmas tree with ornaments that they were trying to sell. The tree
was so large that the ornaments appeared small and puny. They decided to get a smaller tree so the ornaments would
stand out. Which artistic element was manipulated to sell more ornaments?
Proportion
35. Hot Topic is a store that promotes freedom and individuality. They would most likely use what type of lines in their
displays?
Curved Lines
36. If a customer wants to look at a diamond ring, it is probably in what type of display?
Closed Display
37. If a customer goes into Old Navy to look at t-shirts, what would this display represent?
Open Display
38. At the check-out line, there is a display of gum, what would this display represent?
Point of Purchase Display
39. Value City Furniture has a living room set up, what type of display would this be?
Architectural
Questions:
40. List the 5 steps of creating a display.
Select the merchandise.
Select the type of display.
Select the setting.
Manipulate artistic elements.
Evaluate the completed display.
41. List the different types of floor space in a store layout.
Customer Space
Selling Space
Personnel Space
Storage Space