List 7 functions of marketing
Selling, Pricing, Product Service Placement, Marketing Information Management, Financing, Distribution, and Promotion. (Chapter 1 – 7 points)
What are the 3 benefits of marketing discussed in class and in the textbook?
New and improved products generate competition in the market, lower prices, and added value and utility.(Chapter 1 – 3 points)
List and explain the 5 economic utilities
Form Utility – Taking raw materials and making them into something of value
Possession Utility – The exchange of a product for money whether it be cash or another form.
Place Utility – Where products are sold
Time Utility – When certain products are available for sale, seasonal items.
Information Utility – Communication with the consumer. Salespeople, packaging, manuals, etc.
(Chapter 1 – 5 points)
Explain how marketing helps lower the prices of products.
Marketing helps lower prices of product because it increases the demand of the product. When the demand for a product is hight the company can then produce the product in large quantities. When the product is produced in large quantities it is cheaper than when being produced in smaller quantities, so it costs less for the business to produce which means they can sell if for a lower price. Also with marketing, businesses can sell more of their product for a lower price and make more money. (Chapter 1 – 3 points)
Explain why today’s businesses emphasize market segmentation rather than mass-marketing when creating and marketing their products
Through market segmentation businesses are more abel to figure out what their target market wants and how they can get it to them. This also gives them an idea of how many people would purchase their product, so the businesses won’t over-produce or under-produce their product. Also with market segmentation the businesses know exactly how to promote their product to the target market because they will have the information they need about the target market because it is a smaller group of people instead of all the people if they used mass marketing. (Chapter 1 – 3 points)
What is an environmental scan? List and describe the acronym associated with environmental scans
An environmental scan is an analysis of outside influences on an organization. The acronym that describes and environmental scan is PEST. It stands for Political, Economic, Socio-Cultural, and Technological. Political describes how politics or government regulations can effect a business. Economic describes how the economy effects a business for example when in a recession companies/businesses are wary when releasing new products or wary to invest in Research and Development. Socio-Cultural are factors that have to do with society, culture, and trends and how they are changing. Technological is a factor on a business on how technology effects a businesses and can potentially help businesses. An environmental scan can help businesses succeed rather than fail. (Chapter 2 – 5 points)
List three frequently studied demographic variables in the US consumer market. For each variable, explain why it is important for marketers to study that particular variable.
Three frequently studied variables are Age, Gender, and Ethnic Background. Age is important for marketers to study because different generations have different opinions, attitude, and personalities so it is good to know which age group is being marketed to. Gender is important to study because males and females have different likes and dislikes and must be marketed to in a different way. Ethnic Background is very important because when marketing to different ethnicities, other ethnicities may see one marketing technique to another ethnicity as hurtful or rude. Ethnicities vary greatly so in turn so should marketing techniques to different ethnicities. (Chapter 2 – 6 points)
Name and describe the two types of sales promotions. Explain three examples for each of the two types
Trade Promotions – targeted for manufacturers, wholesalers and retailers
1.) Slotting Allowance – money a manufacturer pays a retail chain to place a product on store shelves
2.) Promotional Allowance – a special price discount given to wholesalers and retailers and incentive.
3.) Cooperative Advertising – where a manufacturer helps pay for part of the advertising.
Consumer Promotions – targeted for shoppers, consumers, or normal buyers.
1.) Premium – item such as a coupon that it free to consumers as a condition of purchase
2.) Promotional Tie-In – Two companies combine their promotional resources to create a campaign that increases sales for both companies.
3.) Incentives – all about chance, such as raffles, sweepstakes, and contests. Customers could end up winning big prizes.
(Chapter 17 – 8 points)
Imagine you were designing a display for a new product of your choice. Name three of the artistic elements of a display you would emphasize. Briefly explain how each element positively influences a customer’s decision to purchase the product and how you would use each element to best effect
EXAMPLE: The product of my choice that I am designing a display for is a crew-neck sweatshirt. I am going to emphasize line, shape, and texture for the artistic elements. Line is going to be used to direct the attention of the customer to the shape of my display so it is easily recognizable. Once the customer sees it due to the line and shape it will have a nice smooth texture to it to promote the idea of smooth/comfortable. The customer will take into account these three key elements and purchase the product. (Chapter 18 – 6 points)
Name three types of interior displays described in Marketing Essentials Chapter 18. Describe the type of merchandise that should be shown in each display. Finally, explain how each display type attracts the customer and promotes the store’s image.
– The type of merchandise used with this are items that can be handled by customers like phones, fruit, etc…
– It attracts the customer because it can be handled and promotes the store image with the idea of “try-before-you- buy”
– Merchandise used with this are seen by the customers, an example of this would be jewelry.
– It attracts customers and promotes the store because it shows that it takes care of valuable items in this closed display.
– This is for merchandise that is an impulse buy item. Movies, candy, new items, kiosks, etc…
– It attracts customers by being in impulse buy are and promotes the store because they show that they carry new items.
(Chapter 18 – 6 points)
Imagine that you are the advertising director for a national chain of hardware stores. You are forced because of budgetary limitations to make a choice between advertising on radio or on television. Explain two advantages of both media, and then explain which media you would choose and why you would choose it.
– Combines all the elements of advertising into one
– The product/store is seen and described
– Most expensive form of advertising
– is prone to “channel surfing”
– Can be changed easier and cheaper
– Can hit a target audience based on the station
– Has a short life span
– Sometimes skipped when the ad is heard, people changing the station
I would choose advertising by radio because I would save money and most people know what is in a hardware so I don’t need to advertise by television. The money I save would be put into marking a better radio ad and catchy jingle.
(Chapter 19 – 6 points)
Name the five parts of a print ad. Explain how each part contributes to the ad’s effectiveness.
Headline – attracts the readers attention, first thing the reader reads, very important
Illustration – shows the product in action, provides a focal point
Copy – a personal message/conversation with the reader, also contains a call to action, effective if done correctly and not too long
Slogan – a play on words, jingle, catchy so the reader remembers it in the future
Signature – a companies logo that is recognizable by the reader
(Chapter 20 – 10 points)
Imagine that you are the manufacturer of a product of your choice. Briefly discuss what would be the advantages and disadvantages to your product at EACH level of distribution intensity. Then state which level of intensity you would choose, and explain the reason(s) for your choice.
EXAMPLE: I would be a manufacturer of shoes. For exclusive distribution, the advantage would be that people would know exactly where to buy my shoes and not have to go compare prices at other stores. The disadvantage would be that there would only be one store in that geographical are that would be selling my shoes. For selective distribution, the advantage would be that there are few more stores that would be selling g my shoes, but the disadvantage would be that there would be some shoe stores that didn’t sell my shoes.For intensive distribution, the advantage would be that my shoes would be in every possible place that I could sell them in. The disadvantage of this would be that people could compare prices at stores, and if no one nought my shoes from some stores then those stores would stop selling my shoes. I would use intensive distribution, because with it people will always see my shoes when they go shoe shopping, compared to only seeing them sometimes in certain stores. Also, the disadvantage is the least sever out of the disadvantages of the three distribution intensities. (Chapter 21 – 3 points)
What are the two specialized wholesalers? What are they responsible for?
One of the specialized wholesalers is rack jobbers, they are responsible for taking stock of the product in stores, maintaining, the product, and making sure the racks are fully stocked with the product. The other specialized wholesaler is drop shippers, they sell the product but do not physically handle it. They will sell the product amd then have the manufacturer/producer ship it right to the consumer. (Chapter 21 – 4 points)
List and explain the four types of storage facilities.
Private Warehouses – company owned warehouses where inventory is sold. More expensive
Bonded Warehouses – inventory cannot be picked up or taken until the federal tax on it is paid
Public Warehouses – a person or company can store items in this warehouse if fees are paid.
Distribution Centers – its main focus isn’t to store items but to sort and move products
(Chapter 22 – 4 points)
Name three kinds of the transport service companies described in the chapter. Explain the advantages and disadvantages of using one of the three kinds of companies. Then give an example of merchandise that would be best shipped by that kind of company.
United States Postal Service, Express Delivery Service, and Bus Package Carriers. An advantage of using the postal service would be that it is reliable and convenient because it is a federal program. A disadvantage would be that it isn’t as speedy as an Express Delivery Service. A merchandise that could be shipped by the postal service would be clothing, like a hoodie, for example. (Chapter 22 – 6 points)