Download EOPA Marketing Review 2017

Economics
1. Explain the marketing functions

Channel management – deciding how to get goods into customers hands

Marketing information management – getting information about customers,
trends, and competing products

Market planning – Plan how you are going to market your product and
selecting a target market

Pricing – setting a price for your product

Product/service management – obtaining, developing, maintaining, and
improving a product in response to market opportunities

Promotion – promoting your product by informing and persuading potential
customers

Selling – providing customers with the goods and services they want
2. Explain how each of the economic systems
answers the basic economic questions

Traditional - people produce what is needed to survive, using natural
resources.

Market economy - consumers decide what to produce through purchases.

Command economy - one person or the government decides what to produce.

Mixed economy - a mixture of a market and command economy
3. Explain the effects of competition in
a private enterprise economy.

Creates a struggle for customers.

Forces businesses to produce better quality goods and services at reasonable
prices.

If there is no competition, monopoly allows one company to control a
particular product.
4. Explain the importance of profit in a
private enterprise system.

Profit is the money earned from conducting business after all costs and
expenses have been paid for

Profit is the motivation for taking the risk of starting a business

The concept of profit is driving force in a market oriental economic system

It encourages people to develop new products and services in the hope of
making profit

Profit remains high when sales are high and costs are kept lower
5. Explain how factors affecting profit
can be adjusted to increase profit.

Profit remains high when sales are high and costs are kept low

Profit is rewarded for taking the risk of starting a business

The better the profit, the more employees they can hire and more investors
will earn money off of the company
6. Explain the nature of supply and
demand.

Supply- amount of goods producers make/sell

Demand- customer willingness to buy products

As price rises, supplies rise also.

As price falls, quantity falls also

As prices increase, quantity decreases.

As price falls, demand increases.
7. Explain the importance of price

Should result in fair and appropriate prices

Helps establish and maintain a firm’s image, competitive edge , and profits

Customers use prices to make judgments about products and the companies
that make them

Helps determine profits

The price that is set differently for businesses which increases competition
between them for the customers dollar
8. Explain how prices are determined.

Sellers have to decide the value of a product based on consumer opinions; if
consumers place higher value on a product, then it will generally be given a
higher price.

Companies must use pricing strategies to generate greater profit.

These include psychological pricing, which provides an illusion for customers,
and segmented pricing, which involves having multiple prices for one product.

Prices should also be based off of return on investment, or ROI.

ROI is the calculation used to determine a product’s profit; businesses should
price their products based off of a predicted ROI to generate the best possible
profit while attracting customers with a fair price.

Lastly, businesses must keep regulations such as price fixing in mind while
making pricing decisions.
9. Explain the reasons why productivity
is measured.

Makes an organization more financially efficient and effective.

Higher productivity increases company profit

Work can be completed faster when people specialize in certain areas

Helps find issues in company & increase productivity.
10. Explain ways to increase
productivity.

Invest in new equipment or facilities.

Provide financial incentives and additional training.

Reduce the work force and increase responsibilities of the employees that
remain.
Promotion
1. Describe the objectives of
promotion.

To inform, persuade, or remind current or potential customers of a business’s
products or services

Also to improve a company’s public image

Two forms of promotion are: television and radio commercials

Promotion concepts and strategies help company’s achieve success in the
marketplace
2. Discuss the advantages and
disadvantages of promotional activities.

Can help achieve success in the marketplace.

Could put company in debt if promotion doesn't work
3. Describe the elements of the
promotional mix.

Personal selling- sales reps generate and maintain contact with customers.

Advertising- non personal promotion by which companies promote ideas,
goods, or services.

Direct marketing- individuals are addressed directly

Sales promotion- Goal to increase sales and inform customers about products.

Public relations- handle press to influence target audience
4. Explain factors affecting the selection
of a promotional mix.

Identify the target market

Establish objectives

Design promotional message

Select promotional activities

Allocate budget amounts

Measure results

(The promotional budget judges how wide of a range of a promotional mix a
manufacturer can have

The push-pull concept is different ways that a manufacturer can get their
product advertised and to get consumer interest)
5. Describe factors to consider in
selecting promotional media.

Top influencing factors:

1. Type of product

2.Use of product

3.Compexity of product

4.Purchase quantity and frequency

5.Fund available for market production

6.Type of market

7.Size of market

8.Stage of product life cycle
6. Demonstrate proper procedures for
selecting appropriate media.

Identify the target audience by analyzing the market for a product or service

Determine objectives, such as increasing brand awareness, changing customer
attitudes, and increasing knowledge of the product

Establish the budget by deciding what to spend on advertising over a set
period of time.

Develop the overall theme and messages based on the features, benefits, and
uses of a particular product or service.

Use knowledge about the target to determine the best media to use.

Evaluate the campaign by using market research to see if it met its objectives
and if the advertising messages were well received.
7. Describe factors that affect the costs
of promotional media.

The media of the promotional effort.

The size of the target market.

Frequency of the promotions.
8. Describe how the content of each element
can be used to achieve its objective

Radio content is used to reach out to people driving to and from work and
other places.

T.V. content is used to reach out to people who are looking for entertainment
9. Describe guidelines for obtaining
publicity

Publicity involves bringing news or newsworthy information about an
organization to the publics attention

Public rally's for political issues

Publicity through radio and television programs

(They shouldn’t doo anything stupid because if they do it comes with a price

If you do something bad it reflect poorly on the company and or business)
10. Prepare copy for a print
advertisement.
Merchandising
1. Explain the role of distribution in
marketing

Distribution allows you to make products available to customers so the better
distribution you have the better the sales you have

(Transporting and selling goods from a producer to a consumer.)
2. Identify the advantages and the
disadvantages of types of inventory control
systems

Control systems are needed in companies because they need to keep track of
their inventory.

A disadvantage of the physical inventory method is that humans count their
own inventory and they can make a mistake very easy.

(Inventory management is hard the do but has good upkeep.

JIT is the flow of materials to a coordinate. Easy to move.)
3. Identify causes of inventory shrinkage
Theft, receiving errors, incorrect counting, and selling errors can cause
inventory shortage.
(When the inventory shown in the perpetual inventory system does now
match the physical count of inventory)
4. Describe methods of reducing
inventory shrinkage

Inventory control involves monitoring stock levels and investments in stock so
that a business runs efficiently. Inventory management involves both dollar
control and unit control of merchandise held in inventory. Dollar control of
inventory involves information about the amount of purchases, sales, dollar
value of beginning and ending inventory. Unit control allows a business to
adjust inventory to sales, and helps businesses determine how to effectively
spend their available money on a planned budget. Yet, inventory turnover is
the most efficient strategy to measure how well inventory is being managed
at inventory turnover. The higher the turnover rate, the more times the goods
were sold and replaced.
5. Perform basic mathematical operations
(addition, subtraction, multiplication and
division).
6. Explain the importance of the
marketing function of purchasing

Purchasing is an operation of market exploration to procure goods and
services of desired quality, quantity at lowest price and at the desired time.

The more people buy, the better the product can be marketed.

(In a first time purchase, the customer evaluates want slips to determine if
the requests warrant the new purchase.

In a re-buy, buyers need to be informed of new offers, closeouts, etc.)
7. Calculate Merchandising-Related
Discounts

Planned retail discounts/reductions can be calculated in two different ways.
One is to calculate reductions as a percentage of planned sales. Supposed
planned reduction have historically been 10percent of planned sales. If
planned sales for the month are $25,000, planned reductions for that month
would be calculated as follows:

$25,000 x .10 = $2,500
Marketing
Management
1. Explain the importance of market
identification.

Target market identification is important because it identifies the possible
customer that would most likely purchase the product or service. This is
important for businesses so that they can be more successful with sales due to
the customers’ demands. Some things that businesses use to determine
whether their product will sell is based on research that they do on the
consumers around the area in which they are going to incorporate their
product. Some examples of what businesses research includes average
income, gender, age, and georgraphics.
2. Discuss ways that a market can be
segmented

By using field research and surveys for products and services.

They also require different marketing programs such as different offers,
prices, promotion., and distribution

Lets look at the market for jeans. A marketer might ask, “Who buys jeans? At
what price? What special features do they want?” Depending on the answers
to these questions, the market for jeans could be segmented by these
characteristics:

Age: jeans for kids, teens, adults

Price: reach different income levels

Desired Features: tight fit, comfortable fit, newest fashion, or a unique
design
3. Explain the importance of marketing
strategies to business.

A marketing strategy identifies target markets and sets marketing mix choices.

All strategies need to take the customers needs and wants into account.

A company position in the marketplace determines the appropriate marketing
strategy.

Selling provides customers with the goods and services they want.

Includes retail market to you, the customer, and selling in the business, to
business market, to whole sellers, retailers, or manufacturers.

Selling techniques are determining client needs and wants and responding through
planned, personalized communication.

(The marketing strategies identifies target markets and sets marketing mix choices
that fit and focus on that particular market.

This makes advertising and other marketing jobs easy)
4. Explain the relationship of
product/service planning to marketing.

In product or service planning, a marketing strategy is critical. A marketing
strategy identifies target markets and sets marketing mix choices that focus
on those markets. A company's or product’s position in the marketplace
determines the appropriate marketing strategy. When planning for a product,
considering the four P’s (product, price, place, and promotion) of marketing
is one of the most important parts. In order for your product or service to
become known by people, it must be marketed well.
5. Describe the importance of
management to an organization.

Management is the function of planning, organizing, and controlling available
resources to achieve company goals

Top management, middle management, and supervisory-level management carry
orders from the top level (top management) down through the ranks all the way to
the actual supervisors for the workers

The supervisory-level is supervised by the middle management, who is supervised
by the top management.

(Keep an eye on workers

Responsible for proper operation of a particular department

Manage people and structure of company

Set direction for company

Identify resources and methods for meeting goals)
6. Describe the purposes of the
management functions.

It helps control and manage a business.

Helps set goals, organize and complete goals, and help evaluate performance
of the business.

Also helps hiring employees and help rate their performances.

(The purposes is to be organized

To be controlling

To be on time

And its for planning)
7. Describe the content of a newemployee orientations.

Orientation normally includes: A tour of the company’s facilities.
Introductions to coworkers. Description and information about the company’s
history, mission, and values. Training on use and routine maintenance of
equipment, such as point of scale systems, product scanners, computers, and
printers. Information on the locations of facilities. Information about payroll,
benefits, and various company policies. All new employees nee on the job
training. Supervisors may train new employees or an experienced worker
might. Make sure all job duties are explained and make sure that new
employees how to complete them.
8. Explain the importance of
manager/supervisor training and
development

Its important so they make sure they are able to make safe and concise
decisions for the company.

Its also important so they know if they can mange their employees.

This can test their self control levels and stress management.
9. Explain the meaning of the term
motivation

Most buying decisions involve a combination of motives

For example, people buy car tires for dependability(rational motive) and fear
because they care about the safety of loved ones(emotional motives).

Motivation in this case means the reasons behind something happening or
someone buying something. Motivation is something that drives
someone/people to do something. For businesses, motivation is the reason
that drives a person to buy a product.
10. Handle employee complains

Employee complaints or grievances should be taken just as seriously as
customer complaints.
10. Handle employee complains

Employee complaints should be taken just as serious as customer complaints

Most employee complaints fell under three categories
*Problems with other employees
*Disliking the quality of service or product
*Uncomfortable with their own work situation

Conflicts in the workplace can damage morale and productivity

The employee who has complained should be kept informed at every step

When a complaint involves the employees work situation, gather the facts, report
the findings to the employee who has complained, and make your decision

Clearly explain to the employee on why you made your decision

In most business situations a grievance is more serious than a complaint
12. Select ways management can build
employee morale.

Increase pay

More suitable work hours and days

Longer lunch break
13. Identify policies affecting
customers.

Quality is never an accident

Separation anxiety

At face value

A nice atmosphere

Waiting game
14. Identify business policies to
customers.
15. Discuss methods of communicating
with employees.

The most effective management techniques are usually common sense

Give clear directions- make sure employees know what their task is

Be consistent- make sure the job be completed the same way as directed and
do not make exceptions unless there is a good reason

Treat employees fairly- consider everyone’s points and set equal standards

Be firm when necessary- make sure employees understand your expecations

Set a good example for your employees

Organize and spread out work responsibilities throughout employees

Encourage teamwork

Motivate your employees with rewards and praise
16. Demonstrate ways that management can
ensure equitable opportunities for employees

Managers have lots responsibilities. To combat this they delegate some of
them to other employees. This gives the employees opportunities to gain the
manager’s trust and to get a promotion.
Pricing
1.Define the marketing function of
pricing

Pricing decisions dictate how much to charge for goods and services in order
to make profit.
2. Explain the importance of selling
price.

Price decisions dictate how much to charge in order to make profit.

Based on costs and what competitors charge for the same product.

Marketers must also determine how much customers will pay.

(Selling Price determines whether the product will make a profit or take a
loss

Selling Price effects the consumers opinion on a product

Consumers will buy the product if it is at a good price and will avoid it if it
has a bad price)
3.Discuss the factors which affect selling
price.

Prices are based on costs and what and on what competitors charge for the
product.

How much people are willing to pay for the product
Selling
1. Identify types of customer
personalities.

There are lots of different attitudes and opinions by different people which
include:

Going green

Responsibility for health

Eating healthier

Being fit

Changing lifestyles
2. Explain sales techniques which build
customer loyalty.

One technique is to offer discounts and special rewards to new and returning
customers to increase sales.

Another technique is to take emailed questionnaires with prize entries or
special sales

(Companies offering points and prizes for buying products

Special questionnaires and pricing programs)
3. Maintain/use a prospect list.

Looking for new customers is called prospecting. A prospect or a sales lead is a
potential customer.

Prospecting techniques-There are several prospecting techniques and practices
employed by salespeople and businesses to generate sales leads. They include
customer referrals, cold canvasing, and employer generated leads.

Satisfied customers are excellent sources for finding new customers. Sales
representatives ask their customers for referrals- the name of other people who
might buy the product. When salespeople ask previous customers for names of
potential customers they are using the endless chain method. The endless chain
method helps companies construct and maintain a good list of prospects.

Cold canvasing is a process of locating as many potential customers as possible
without checking leads beforehand. Ex- caterers and florists might check out
engagement announcements.

Employer sales leads-some firms employ entire telemarketing teams to generate
leads for their sales staffs.

Once sales leads are generated they need to be qualified before any sales effort is
made. questions to ask- Does the prospective customer need the product or service?
, Does the prospective customer have the financial resources to pay for the product
or service?
4. Describe the reasons for using sales
quotas.

It’s a dollar or unit sale goals set for sales staff to achieve in a specific period
of time

Sales managers make sale forecasts based on the data given

Managers regularly monitor the sales to make sure the sales quota is being
met
5. Probe for information in a sales
situation

Figure out the customer’s price range

Find out the intended use of the product.
6. Explain the importance of selling
policies

Selling policies includes knowing the product you’re selling, why, and any
competition

These policies include: Product knowledge, trends and competition,
merchandising, product features, customer benefits, selling points,
advantages, customer buying motives, prospecting, and qualifying prospects
7. Explain factors which determine
selling policies.
8.Explain the importance of sales
training

It reinforces sales techniques

It emphasizes the marketing concept with new and veteran sales associates

One can hear the constructive criticism from one’s trainer(sales manager)

It is used in the steps of sales management with sales training one can
become a better sales person and make more customers come back again.

(Sales training reinforces sales technique and emphasizes the marketing
concept with new and veteran sales associates.)
Information
Management
1. Describe the factors affecting sales
forecasts.

An attempt to predict the future economic conditions.

Requires extensive knowledge of economic statistics and trend in directors.

Businesses rely on government data to predict economic conditions