BADM 370 Final Exam

Large Questions (eight points each, five will be chosen at random):

 Describe the four marketing management philosophies.

Production oriented- more production means more sales, the company believes that with the
increase in capacity of producing more products the sales also increase, applicable when there
are imbalances in supply and demand
Sales orientation- the sales would be high when the company implements several sales
strategies which in turn result in profits. The more the selling techniques the more would be the
response from consumers in terms of purchases
Market oriented- states that the desire and needs of consumers determines the goals of the
company, consumers are to be considered the most and a good relationship is to be maintained
Societal marketing orientation- focused more on the benefit of the stakeholders than the
consumers.
 Define and give an example of each stage of the consumer decision-making process.
Stage 1: need recognition/ problem recognition- need or problem that a shopper tries to satisfy
or solve. EX consumer needs to scrape ice off their car
Stage 2: information search- consumer seeks info to help fulfil their needs. EX researching
different types of cars pros/cons online
Stage 3: Alterative evaluation- consumer evaluates their alternatives in order to make the best
decision. EX which car has better ability to drive in snow
Stage 4: Purchase decision- consumer is ready to buy, consumer is positioned for impending
sale. EX consumer purchases the car with best snow drive
Stage 5: Post purchase behavior- customer satisfaction, repeat business, customer evaluates the
experience. EX customer loved that brand of car, always buys that brand now
 List and define each stage of the diffusion process. Give an example of each.
Innovators
Early adopters
Early majority
Late majority
Laggards
 List the four stages of the product life cycle (PLC) and discuss the typical characteristics of each
stage.
1. Introduction- most expensive, size of market is small, sales are low but increasing
2. Growth stage- strong growth in sales and profits, business are able to invest more in
promotional activities
3. Maturity stage- Product is established, aim is to maintain market share, most competitive
time for most products
4. Decline stage- market starts to shrink, market may becoming saturated, or consumers are
switching to a different product
 Define and give an example of each element in the promotional mix (advertising, public
relations, personal selling, sales promotion, and social media).

Advertising- any paid form of media communication, EX print ads, magazines, billboard

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 Public relations- activities that promote a positive image, generate publicity or foster
goodwill with intent to increase sales EX generation positive media coverage, hosting a
special event

Personal selling- face to face communication between buyer and seller EX. Sales person
going to a business directly

Sales promotion- in store demonstrations, displays, price incentives EX buy one get one
sales

Social Media- aimed directly at target customers, uses demographics and data to distribute
ads EX seeing an ad for milk on Facebook after googling where to buy milk

 Define positioning. Explain marketers influence a brand’s position. Give an example of a brand’s
position.
Positioning- developing a specific marketing mix to influence potential customers overall
perception of a brand, product line or organization in general.
Marketers influence- marketing campaigns can influence the consumers thoughts and ideas on a
product in a good or bad way EX Pepsi commercial was bad, Campbells soup commercial was
good
EX of brands positioning- Trader Joe’s differentiating themselves by positioning themselves as a
national chain of neighborhood grocery stores, they are known to offer a more tightknit corner
store shopping experience, they are also known for high quality and low prices and their theme
is memorable

Medium Questions (six points each, five will be chosen at random):

 What are the five conditions necessary to make an exchange?

At least two parties, something of value, communication and delivery, freedom to
accept or reject, desire to deal with other parties
 Define and give an example of each stage for firms entering the global marketplace.

Growth stage- product life cycle, when sale typically grow at an increasing rate, many
competitors enter the market, large companies may start to acquire small pioneering firms

Introductory stage- full scale launch of a new product into the marketplace

Maturity stage- period during which sales increase at a decreasing rate

Decline stage- long run drop in sales

 Describe how the supply chain, specifically retailers, provide contact efficiency, as in the
reduction the number of required transactions.

Supply chain reduces number of transactions required as transactions are lumped more
and supply chain is a process that is followed.

 Describe the five levels of Maslow’s Hierarchy of Needs

Self-actualization needs- self-development and self-realization.

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 Esteem needs- self-esteem, recognition, status

Social needs- sense of belonging

Safety needs- security, protection

Physiological needs- hunger, thirst

 Describe the family life cycle. (Exhibit 8.1)

Series of stages determined by a combination of age, marital status and the presence or
absence of children.

 Describe the six categories of stakeholders in a typical organization.

Employees- have jobs and income at stake, if firm moves or closes employee faces
hardship. In return for labor employees expect wages, benefits and meaningful work. In
return for loyalty workers expect the company to carry them through difficult times

Management- Have a stake in the corporation, must safeguard the welfare of the
organization, sometimes means balancing multiple claims of conflicting stakeholders.

Customers- generate revenue for the organization. In exchange they expect high quality
goods and services delivered in a timely manner. High customer satisfaction leads to
higher revenues.

Local community- through government grants the firm the right to build facilities, in turn
the community benefits directly from local taxes paid by the corporation and indirectly by
property and sales taxes paid by workers.

Suppliers- vital to success of firm, materials supplied determine the quality of the product
produced and create a cost floor which helps determine the retail price.

Owners- have a stake through stock, expect reasonable return based on amount of
inherent risk on their investment.

 Define segmentation, explain the importance of segmentation, and give an example of market
segmentation.

Process of dividing a market into meaningful, relatively similar and identifiable segments
or groups.

Plays a key role in the marketing strategy of almost all successful organizations and is a
powerful marketing tool for several reasons. Nearly all markets include groups of people
or orgs. With different products needs and preferences. Helps define customer needs and
wants more precisely.

Examples- interests, lifestyle, age, gender, geographic, demographic

 Describe the four fundamental segmentation methods.

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 Demographic- splitting up audiences based on observable differences, like age, sex,
occupation etc.

Behavioral- based on customers behaviors, ex. usage rate, online shopping habits, loyalty

Geographic- Splitting market based on location

Psychographic- deals with characteristics that are mental and emotional.

 Describe the marketing uses of branding.

Requires decisions about individual, family, manufactures and private brands. Enhances
brand image, and strengthens relationship with customers. Retailers have an advantage of
low input prices and high barging power. No need to spend more time or cost on brand
development when introducing new products.

 Describe each component of the retail mix.

Price- pricing strategy, markup strategy, how does that affect my overall retail price. Think
about profitability

Promotion- what tools will influence consumers purchase decisions and intention to
purchase.

Place- Hours of operation, how many employees you need and when you need them,
general description of responsibilities of each associate

Product- What type of products do you intend to carry, what is the depth, inventory levels,
inventory turnover and profitability

Presentation- Will you be a free standing location, how many locations

Personnel- Who will you sell the goods or services to

 Describe each step in the selling process.

Generate leads- initial ground work, identification of those firms and people most likely to
buy the sellers offerings

Qualifying leads-when a prospect shows interest, salesperson has opportunity to follow up

on the lead

Approaching the customer and probing needs- learn as much as you can before, talks to
prospect, develop mutual trust during approach, sales people must sell themselves before
they can sell firm

Developing and proposing solutions- Determine whether her company’s products or

services match the needs of the prospective customer, sales person develops a solution in
which the products or services solve the clients problems or needs

Handling objections- Questions about the proposal or product

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 Closing the sale- Ask customer how they could like to proceed, are they ready to purchase
all questions answered, and objections met

Following up- final step in process, must ensure delivery schedules, goods or services are
as promised, and buyers employees are properly trained

 Describe the three major ways social media has changed marketing.

Interaction with customers- marketers cannot control content on social media sites, having
a great campaign is not enough, products and services have to be great too

Ability to share experiences quickly- amplifies word of mouth

Allows marketers to listen- gain insight needed

Social media provide more sophisticated methods of measuring marketers meet and
interactions with consumers

Allows marketers to have much more direct and meaningful conversations with customers

 Describe the six categories of the social media audience.

Social networks- allows you to connect with people with similar interest

Bookmarking sites- allows consumers to save and organize links

Social news- allows users to post news links

Media sharing- allows users to share different type of media, pictures and videos

Microblogging- allow users to submit short written entries

Blog comments and forums- lets users engage in conversations by posting and responding
to community messages

 Describe dynamic pricing and the yield management system.

Dynamic- set flexible prices for products or services based on current market demands

Yield- understanding, anticipating and influencing consumer behavior in order to maximize

revenue or profits from a fixed time limited resource.

 Describe the communication model. (Exhibit 15.2)

Two way nature of communication is shown with the communication model.

Small Questions (four points each, five will be chosen at random):

 Describe service failure and service recovery.

Service failure- performance that fails to meet a customer’s expectations

Service recovery- actions taken in response to service failure, fixing the customer and
addressing the problem

 Describe each level of the Pyramid of Corporate Social Responsibility.

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 Top to bottom
Philanthropic responsibilities- be a good corporate citizen
Ethical responsibilities- be ethical
Legal responsibilities- obey the law
Economic responsibilities- be profitable
 What is business marketing, and what distinguishes business products from consumer products?
Business marketing- Marketing practice of individuals or orgs. Allows them to sell products or
services to other companies or orgs that resell them, a way to promote business and improve
profit
Products in their final form and are ready to be purchased and consumer are consumer
products, products or services bought by a business for its own use are business products
 Describe and give examples of each of the cells in Ansoff’s Product Market Growth Matrix.
Market development- focuses on entering a new market using existing products EX. Nike
entering china market for expansion
Diversification- focuses on entering new market with new products EX. Clothing company
starts making phones pursing a unrelated strategy
Market penetration- focuses on increasing sales of existing products to existing market EX.
Telephone company offering intro prices and increasing promotional efforts
Product development- focuses on introducing new products to an existing market EX. Car
company creating electric cars
 Describe and give examples of each of the cells in the BCG matrix.

STAR- portfolio mix, unit that is a fast growing market leader. EX Samsung

Cash cow- portfolio mix, generates more cash than it needs to maintain. EX coca cola

Problem child or question mark- portfolio mix, shows rapid growth but poor profit margins EX.
Lipton Tea

DOG- Portfolio mix, low growth potential and small market share EX. Ragu

 Define and give an example of each of the consumer products.

Convivence products- most frequently purchased, consumer product that is bought frequently
and without much thought, EX laundry detergent
Shopping products- products a consumer compares to others based on quality, price and style
EX. Airline services
Specialty products- unique characteristics or brand identification, only applies to certain
consumers EX designer clothes
Unsought products- products the consumer does not know about or consider buying under
normal conditions EX life insurance
 Define and give an example of the unique characteristics of services.
intangibility, inseparability, perishability and variability
EX. electricity
 Describe and give an example of the four steps of the AIDA process.
Attention- product must attract consumers attention EX window design
Interest- interest of consumer is captured EX detailed info on product is presented

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 Desire- persuade customer they want to own the product EX seller state advantages of
product
Action- when desire is aroused must be transferred to an action, the purchase EX item is
purchased
 Define cannibalization. Explain the importance of cannibalization. Give an example of
cannibalization.
Cannibalization- reduction of the sales of a company’s own products as a consequence of its
intro of another similar product
Important ro carry out brand extension
EX. Coca-Cola launching different flavors like cherry and vanilla
 Describe how non-profits are different from for-profit organizations.
For profits- required to pay taxes based on net income, seek to generate income
Nonprofits- exempt from income tax, dedicate to social cause or advocating
 Define and give an example of a push and a pull promotion strategy.
Push- creates customer demand for product through promotion EX offering discounts to new
customers, appealing packaging
Pull- uses advertising to build up customer demand for product/ service EX kids toys featured
on kids TV show
 Define and give an example of price skimming.
Pricing strategy that involved setting high price before other competitors can come into the
market. EX Apple iPhone
 Describe the four basic values influencing attitudes and lifestyles in the United States.
Self-sufficiency- every person should stand on their own two feet
Upward mobility- success will come to those who get an education, work hard, played by the
rules
Work ethic- hard work, dedication
Conformity- no one should be expect to be treated different from anyone else
 Describe the four major categories of business customers.
Producers- profit orientated orgs. Produce products
Resellers- retail and wholesale businesses that buy finished goods to resell
Governments-federal, state and local buying units
Institutions- not standard goal of profit, schools, colleges, hospitals etc
 Describe how consumers can reduce cognitive dissonance.
Focus on more supportive beliefs that outweigh dissonant belief
Reduce importance of conflicting belief
Change conflicting belief
 Describe how marketers can help consumers reduce cognitive dissonance.
Display trust signals on website, reviews, order confirmations, create sense of closure, provide
good customer service, send feedback surveys
 Define and give an example of a marketing need and a want.
Need- consumers desire for a product, basic human requirements EX water
Want- change a lot, desires EX nice car
 Describe the components of a situation analysis (SWOT Analysis and environmental scanning).
SWOT- strengths, weaknesses, opportunities, threats

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 Environmental scanning- events, trends, issues, expectations
 Describe and give an example of the sources of competitive advantage.
Allows org. to outperform its competitors EX access to natural resource
 Packaging has four basic functions. Describe each.
Product identification- consumer recognizes product
Product protection- protection from dirt, breakage etc
Convenience- easy to carry, easy of stocking and consuming
Product promotion- reminds consumer about the product
 Describe the difference between persuasive labeling and informational labeling.
Persuasive- focuses on promotional theme or logo and consumer info is secondary
Info- designed to help consumers make proper product selections and lower cognitive
dissonance after purchase
 The text provides a taxonomy of eight basic advertising appeals. Describe two appeals of your
choice.
Fear- generate emotional connection
Humor- generate emotional connection
 Describe each of the media scheduling tactics (continuous, flighted, pulsing, and seasonal).
Continuous- ads are run steadily throughout ad period, used for later stages of life cycle
Pulsing- continuous scheduling throughout year coupled with flighted scheduled during sales
periods
Seasonal- runs ads only during times of year when products are most used.

Definition questions (two points each, five will be chosen at random):

Define and give an example of any of the numerous definitions from the MKTG text.

Chapter 1

 Marketing- activity and processes for creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners and society
 Product orientation- focuses on the internal capabilities of the firm rather than the desires and
needs of the marketplace
 Sales orientation- Belief that people will buy more goods and services if aggressive sales
techniques are used and that high sales result in high profits
 Marketing concept- idea that all social and economic justification for an orgs. Existence is the
satisfaction of customer wants and needs
 Market orientation- assumes that a sale does not depend on an aggressive sales force, but rather
on customers decision to buy a product
 Societal marketing orientation- an org. exists not only to satisfy customer wants and needs but
also to preserve or enhance individuals and societies long term best interests
 Customer relationship management- strategy designed to optimize profitability and customer
satisfaction by focusing on highly defined ad precise customer groups

Chapter 2

 STAR- portfolio mix, unit that is a fast growing market leader

 Cash cow- portfolio mix, generates more cash than it needs to maintain

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  Problem child- portfolio mix, shows rapid growth but poor profit margins
 DOG- Portfolio mix, low growth potential and small market share
 Marketing myopia- defining a business in terms of goods and services rather than in terms of
benefits customers seek
 SWOT- strengths, weaknesses, opportunities and threats
 Experience curve- shows costs declining at a predictable rate as experience with a product
increases
 Marketing mix- product, place, promotion, pricing strategies

Chapter 3

 Deontological theory- people show adhere to their obligations and duties when analyzing an
ethical dilemma
 Foreign corrupt practices act- prohibits U.S. corps. From making illegal payments to public
officials of foreign governments to obtain business rights or to enhance their business dealings
 Pyramid of corporate social responsibility- economical, legal, ethical and philanthropic
responsibilities
 Cause related marketing- marketing efforts between a form profit firm and a nonprofit org


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