Conclusion - University of Texas at Dallas



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 Ch. 18 .

Advertising Ch. 19

New Products Ch. 10

Products & Brands Ch. 11

Pricing I Ch. 13

Pricing II Ch. 14

Distribution 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 Growth Maturity Decline

Competition None More Many Less

Product One More Many Best sellers

Price Skimming/Penetration Aggressive Defensive Extraction

Promotion Informational Competitive Reminder Minimal

Distribution Limited More Many 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. early adopter; majority

b. early innovator; late innovator

c. innovator; early majority

d. early majority; early adopter

e. 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) Finding new users

B) Creating new use situations

C) Increasing use by existing customers

D) 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 Price

10 80

20 70

30 60

40 50

50 30

You are also facing the Average Cost table below

Quantity Average cost

10 10

20 20

30 30

40 40

50 50

You are facing the following demand schedule:

Quantity Price

10 80

20 70

30 60

40 50

50 30

You are also facing the MARGINAL Cost table below

Quantity Marginal cost

10 16

20 27

30 38

40 49

50 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 Marginal cost Marginal Revenue

10 50 90

20 60 80

30 70 70

40 80 60

50 90 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 |Low |

|High |10 |20 |

| |50 |60 |

|Low |20 |10 |

| |50 |40 |

| |High |Low |

|High |30 |20 |

| |50 |60 |

|Low |20 |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

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