Marketing Exam Help

Marketing 506 - Exam #2, Review Concepts

The following are the priority concepts to review in preparation for Exam #2, which will be administered during week 8.

· Product Life Cycle, (PLC) – stages: Intro, Growth, Maturity, Decline

· Breakeven analysis: B/E = FC/P-VC, example: assume that Fixed Costs=$100,000, Variable Costs = $10, and Price =$20. B/E = 100,000/(20-10) = 10,000 units

· New Product Development Process 8 stages – what are they, what happens at each stage?

· Price Elasticity = % change in quantity/% change in price. Example, if quantity demanded increases +20% when price is reduced –10%, elasticity is 20/-10 = -2.0.

· Pricing objectives/strategies: market-penetration, market-skimming, product-quality, partial cost recovery,

· Pricing methods: mark-up, target-return, perceived-value, value-pricing, going-rate, auction-type

· Distributions strategies: intensive, selective, exclusive

· Channel levels: 0-level, 1-level, 2-level, and 3-level. Define and understand what’s involved and when to use.

· Services – define and know characteristics, (intangibility, perishability, inseparability, variability) know different types, how they are distinct from tangible products

· Major Retailer Types; specialty, department, supermarket, convenience, discount, off-price, superstore, catalogue,

· Vertical marketing systems (VMS) types (corporate, administered, contractual) definitions and examples

· Horizontal marketing systems

· Channel power, channel conflict, channel coordination, channel management

· Marketing channels, channel strategies

· Market testing: Types, descriptions, when to use, (simulated tests, controlled test market tests, sales wave etc.)

· Cost curves and the experience curve.

· Integrated marketing communications – definition and components

· Fixed versus variable costs, definitions, types and components

· Direct marketing vs mass marketing – what are the components? how do they differ? when is either the best choice?

· Brand strategies: co-branding, ingredient branding

· Brand elements: names, symbols, logos, images, typology etc.

· Differentiation strategies; product differentiation, service differentiation

· Co Branding vs ingredient branding

· Positioning strategies, repositioning

· Marketing Mix = “4 P’s”