Download Review for Exam Two 1. Product and Brand Analysis and Strategy

Review for Exam Two
1. Product and Brand Analysis and Strategy
What is a product?
benefit delivery system
total market offering: core product, actual product, augmented product
Product Positioning
definition of brand positioning: Note what it is and what it is not.
positioning in memory: meaning of memory schema, how marketers use schema to help
consumers divide the world.
position perceptual mapping: purpose of position mapping and comparison to distance
mapping, data used in position mapping, interpreting position mapping results (direction of
arrows, length of arrows)
major positioning decisions
category positioning decision: central position (what it is, circumstances when it’s
appropriate), differentiated position (what it is, circumstances when it’s appropriate)
position referent decision: product focused, user focused, competitor focused (what
conditions favor it, what “depositioning” means)
Product Design or Reconfiguration: Know how conjoint analysis studies are configured and what
conjoint analysis results may tell us. You will not be asked to interpret conjoint analysis statistical
results.
2. Pricing Analysis and Strategy
Roles and importance of price: Price as a signal to buyers, competitive weapon, tool of financial
performance.
Price changes
Price elasticity of demand: Know the basic formula for price elasticity, relatively elastic and
inelastic demand (Be able to graph each, explain the sources of quantity increases for both),
residual elasticity (Be able to explain cross elasticity and competitor reaction elasticity and how
they influence residual elasticity.)
Evaluating the profitability of consumer promotion: Know the diagram (Exhibit 4) of consumer
promotion and be able to explain it. You will not be asked to explain the formula.
Evaluating the profitability of trade promotion: Know the diagram (Exhibit 5) of trade promotion
and be able to explain it. You will not be asked to explain the formula.
Setting Base Prices: Know breakeven analysis including the incorporation of dollar profit and rates of
return. You will not be asked the formulas but may be asked to explain or reproduce the diagrams.
3. Channel Analysis and Strategy
Refresher on Marketing Channels
Be able to distinguish between the industrial and retail parts of the distribution channel.
Know how some people distinguish between distribution channels and supply chains.
Evaluating distribution channel performance:
Distribution intensity metrics: Be able to explain percent relevant outlets, percent of category
volume, and percent of shelf facings. Where mentioned in your web notes, understand why
these metric are important to marketers.
Logistics performance measures: Be able to define an SKU. Explain what stockouts are. Be able
to explain stockout rate and stockout days. Know why these may be important to marketing
managers. Be able to explain the stockturn rate and understand its importance.
Evaluating channel member satisfaction: Know how channel satisfaction is generally measured
and what areas of satisfaction that are addressed.
Power and Influence in Distribution Channels: Know how to define power and the four sources of
power discussed in class. Meaning of relationship norms, influence attempts (request, promise, reward,
threat, punishment), and responses to influence attempts.
4. Advertising Analysis and Strategy
Setting Advertising Objectives: Be able to reproduce the Hierarchy of Effects Model, explain its
advantages and it disadvantages. Know why the advertising to sales relationship is not well understood.
Advertising Creative
The meaning of good advertising creative
Know what is meant by advertising creative.
Know the parts of the definition of good creative. Be able to explain them.
Be able to explain, and if necessary, diagram the economic value of good advertising
creative.
Evaluating advertising creative: Know the difference between concept and copy testing. Know
the differences in purpose and research method associated with each.
Advertising Media
Advertising Media Problem: Be able to explain the advertising media problem. Know what waste
coverage is. Know the relationship between reach and frequency.
Measuring media effectiveness
Measures of schedule intensity: Be able to define and explain reach, frequency, gross
impressions, and gross rating points. Be able to calculate average frequency, reach and
gross rating points.
Measures of schedule cost: Be able to explain and calculate Cost per Thousand
Impressions (CPM).
Be able to define hits and page views.
Be able to explain and calculate clickthroughs and clickthrough rates. Be able to explain
and calculate abandonment rate and possible causes of abandonment.