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Conclusion
Time and place for final exam: Next Monday, same time and
place.
Participation grade.
GRADING:
Participation + assignments:
10%
Exams:
70%
Quizzes:
20%
-- Drop ONE quiz
Bring a calculator
Bring a scantron – Form No, 882-E
Selling your books.
Final Exam Review
50 Questions (2 points each) – 6-10 from each chapter except
chapter 15 (5 questions).
45 multiple choice
5 short answer
Communications
Advertising
Ch. 18 .
Ch. 19
New Products
Products & Brands
Pricing I
Pricing II
Distribution
Ch. 10
Ch. 11
Ch. 13
Ch. 14
Ch. 15
Short answers:
1. List the mass/customized promotion elements
2. List the advertising media
3. List five Sales promotion approaches
4. List four advertising appeals
5. Give an example of a product failure and note the
reason
6. List the seven stages of the new product process
7. List the four stages of the product life cycle
8. Give one example of product placement
Ch. 15.
A marketing channel is ________The main difference between a dealer and an agent is _
Which is not a logistical function performed by
intermediaries
Which is not a type of vertical marketing system
XYZ is an example of forward/backward integration
Ch. 18
Promotional elements (advertising, personal selling, PR,
sales promotion, direct marketing)
Which is mass; which is customized?
Which is appropriate for a given situation?
The promotional element which generates immediate
feedback and can convey complex info? High degree of
perceived risk.
Which is cheapest but least reliable?
What constitutes direct marketing, sales promotion?
Product Life Cycle: Intro Growth Maturity Decline and
promotional tools (advertising types and advertising vs.
personal selling)
Know shapes – fad, fashion, high learning, low learning
The hierarchy of effects:
Awareness
Interest
Evaluation
Trial
Adoption
Ch. 19
ADVERTISING
Pioneering, competitive, and reminder advertising
Advertising media (TV, radio, magazines, newspapers,
internet, outdoor, direct mail): advantages and
disadvantages and when each is appropriate
(Use Table 19-4)
Examples:
Advertising hunting rifles nationally
Advertising hunting rifles for a Dallas store
Advertising time sensitive local events (concert,
game)
Advertising car dealership using a catchy jingle
Advertising a complex new device with many features
Advertising medicine in awareness stage
Advertising medicine in evaluation stage
Reach (number), rating (%), frequency (number of
exposures), GRP (reach as % times frequency)
Sex, humor, and fear appeals. OTHER appeals (see article
“Pushing Your Buttons” passed out in class)
What to do about DVRs and a loss of advertising reach
(article titled “ZAP”)?
Ch. 10
Product mix versus product line.
Product line – satisfy same class of needs, used together,
sold to same customer group, distributed through the same
type of outlets, fall within a price range.
Product mix – a number of product lines offered by the
same company.
If a group of products by a company is distributed
through a given outlet?
If groups of product lines is offered by the same
company?
Examples: Polaroid film product line and camera
product line
Durable vs. nondurable – definitions, implications
(advertising, pricing, personal selling)
Nondurable—short lived, inexpensive and purchased
frequently – Consumer advertising and wide
distribution
Durable – cost more and last longer – Personal selling
(ideal for high involvement)
Classifications of consumer goods: Convenience,
shopping, specialty, and unsought goods.
Definitions – frequent and little effort, compare several
alternatives, special effort, does not know or want
The four P’s (figure 10-1):
Product—toothpaste, cameras, Rolex, burial
Price – Inexpensive, expensive, very expensive, varies
Place—Widespread distribution, many selective outlets,
limited, varies
Promotion—Price, differentiation, uniqueness,
awareness
Marketing Reasons for New Product Failures.
1.
Insignificant “point of difference”
2.
Incomplete market and product definition before product development starts:
Identify target market, wants and needs, what the product will do.
3.
Too little market attractiveness (size and growth of mkt)
4.
Poor execution of the marketing mix: name, package, price, promotion,
distribution
5.
Poor product quality on critical factors
6.
Bad timing.
7.
No economic access to buyers: access shelf-space
8. NO FIT WITH FIRM’S OTHER PRODUCTS, SPECIALTY, OR IMAGE
Examples:
1a. General Mills introduced Fingos, a sweetened cereal that was supposed to be eaten
dry. Consumers did not see enough reason to substitute this for othr dry snacks such as
potato chips or “non dry” cereal eaten out of the box.
1b. Pepsi One was geared toward the gut-conscious men, yet few could tell the difference
between Pepsi One and Diet Pepsi.
2a. Del Monte’s Barbecue Ketchup that contained finely chopped onions and was aimed
at the heavy ketchup-eating segment (kids). Kids did not care for onions.
2b. RJR’s Smokeless cigarettes
2c. Wheaties Dunk-A-Balls Cereal
3. Kodak’s Ultralife lithium battery 9 volt size.
4a. Minute Maid squeeze-fresh OJ concentrate: advertising and packaging did not
educate on how to use the product
4b. Wine & Dine Dinners
5. Baby cribs that collapse, tires that blow up, meals on the go that fall in your lap. Child
safety locks that you can’t figure out.
6. IBM introduced several laptop models too late, movies released following some
national events.
7. New soft drinks, laundry detergents, shampoos, etc. must compete for shelf space and
advertising slots, which is very costly: Surge, Mountain Due Code Red, Body Smarts
candy
8. Gerber's Singles: This product for adults was launched in 1974 in a variety of fruits,
vegetables, and entrees. However, consumers simply could not relate to adult food
products sold in baby food jars.
Stages in the new product process:
Strategy development, idea generation, screening and
evaluation, business analysis, development, market
testing, commercialization.
Ch. 11 (12 in old)
Know Product life cycle: Figure 11-1:
Introduction, Growth, Maturity, Decline
Marketing objective, competition, product, price,
promotion, place:
Introduction
Competition
None
Product
One
Price
Skimming/Penetration
Promotion
Informational
Distribution
Limited
Growth
Maturity
More
Many
More
Many
Aggressive Defensive
Competitive Reminder
More
Many
Decline
Less
Best sellers
Extraction
Minimal
Less
Coupons and Discounts are most likely in __________
Penetration pricing/ skimming likely in __________
Gaining distribution most important in ___________
______________________________________
Memorize profiles of each adopter: Innovator, early
adopter (leader in social setting), early majority (social
contacts), late majority, (skeptical), laggard (fear of
debt). Also, education levels and information sources.
Most info sources? Leader in social setting. Risk loving.
Most others.
Example: The profile of "early adopters" is described by which of the following …
Identify profile of product adopter. Like quiz.
4. When deciding on the purchase of a new wireless pocket PC, Bob was among the
very first. He is very highly educated, and makes purchase decisions based on
information from Internet newsgroups, newspapers, and technical journals he
subscribes to. Stan made his decision based on numerous informal social contacts,
though he is not a leader in any social setting. He was among the first 50% of the
population to buy the wireless pocket PC. Out of profiles of product adopters,
Bob could best be described as __________ whereas Stan would best be
described as ___________.
a.
b.
c.
d.
e.
early adopter; majority
early innovator; late innovator
innovator; early majority
early majority; early adopter
late majority; laggard
MODIFYING THE MARKET
With market modification strategies, a company tries to find new customers, increase a
product use among existing customers, or create new use situations.
Three market modification strategies:
1. Increasing use by existing customers
2. Creating New Use Situations
3. Finding New Users
Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup
remover for women. This is an example of:
A)
B)
C)
D)
Finding new users
Creating new use situations
Increasing use by existing customers
Modifying the product
Definition of a brand name (sound, design, shape, color to
distinguish a seller’s offering). Distinguish from and trade
name (legal name under which a company does business),
and trademark (identifies legal registry of brand name or
trade name).
Branding strategies:
Multiproduct branding – sunbeam irons, toasters crockware
Multibranding strategy – P&G Tide, Cheer, Ivory, Bold
Private (reseller) branding – Sears Kenmore, Craftsmen
Mixed branding – Michelin tires, Sears Tires
Generic branding …
Chapter 13
What does the demand curve show?
Expect elasticity on the test!!!
Expect marginal analysis!
Expect one or two qualitative questions about marginal
analysis. Example:
The difference between marginal analysis and breakeven
analysis is that _______
Which of the following about marginal analysis is correct?
Expect demand-and-profit calculation question identical to
the quiz!
An exercise with average cost -- > Can be done with EITHER marginal analysis or with
only profit calculation
You are facing the following demand schedule:
Quantity
10
20
30
40
50
Price
80
70
60
50
30
You are also facing the Average Cost table below
Quantity
10
20
30
40
50
Average cost
10
20
30
40
50
You are facing the following demand schedule:
Quantity
10
20
30
40
50
Price
80
70
60
50
30
You are also facing the MARGINAL Cost table below
Quantity
10
20
30
40
50
Marginal cost
16
27
38
49
60
ELASTICITY?
What’s the elasticity between 20 and 30 units?
Suppose the following question was given:
You are also facing the MARGINAL Cost and MARGINAL
revenue table below
Quantity
10
20
30
40
50
Marginal cost
50
60
70
80
90
Marginal Revenue
90
80
70
60
50
To maximize profit, you should produce:
a. 10
b. 20
c. 30
d. 40
e. 50
Expect an oligopoly pricing / game theory question
High
High
Low
10
20
50
Low
20
60
10
50
High
40
High
Low
30
20
50
Low
20
60
10
90
80
Chapter 14 (15 in old)
What are pricing constraints? Know the answer.
Demand-based approaches
skimming
penetration
Prestige (recognize graph)
price lining (recognize graph)
odd-even
target
bundle
yield management
RECOGNIZE GRAPHS
Also know definitions for
Above-,at-, or below market pricing
Customary pricing
Loss-leader pricing
Go through the section on cost-oriented approaches:
Standard markup, cost-plus, experience curve
One question will be on discounts:
Quantity discounts – lower price for higher volume
Seasonal discounts- lawn mowers in January
Trade discounts – Reductions off the list or base price to
retailers for performing marketing functions
Cash discounts – To encourage retailers to pay bills
quickly
One question will come from the legal and regulatory
aspects of pricing (figure 14-8)
Consumer Goods Pricing Act
Sherman Act
Federal Trade Commission Act
Robinson Patman Act