Park University MK 351, Principles of Marketing Final Exam Review Guide Spring I, 2010

1. Explain the importance of the marketing mix The four Ps are used as tactics used to achieve the marketing and business plan. The marketing mix is a critical component in the development of marketing plans and strategies. The marketing mix encompasses all of the elements that impact an organization's ability to successfully take its products and services to market Product - you must consider the features, advantages and benefits of the product, along with defining all the characteristics of your product. Price figuring product life-cycle stages, low cost high volume, etc. Pricing decisions are based on the costs of producing and delivering the products and services, but also on considerations related to desired brand image and how a specific target audience might respond to various price points Promotion how will you advertise your product? Using tactics such as advertising, public relations or special events, in order to target consumers. Place what distribution channel will you use? The place component of the marketing mix refers not only to location, but also to access to the product or service; in other words, availability. 2. Describe and analyze the marketing management functions Developing marketing strategies and plans Capturing marketing insights Connecting with customers Building strong brands Shaping marketing offerings Delivering value Communicating value Creating long term growth 3. Explain the elements of a marketing plan. Executive Summary - provides a great a way to give your readers a quick, short, and concise synopsis of your marketing plans and goals. Often times, this may be the most interesting section in the marketing plan because it serves as an overview of your income producing ideas and concepts. Things that are included are market, competitive, and product overviews. Goals and objectives, strategies, action plan and implementation schedule, and evaluation methods. Situation Analysis it is important to do before developing a marketing strategy. The elements worth considering are product situation, competitive situation, distribution situation, environmental factors, and opportunity and issue analysis. Marketing Summary - The summary of the marketing plan should define the basics of the business. It should disclose who the customers are, where business is conducted, and the products and services that will be sold.

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Park University MK 351, Principles of Marketing Final Exam Review Guide Spring I, 2010

Target market - Target markets form the customer base for any business. They represent people who may use a product or service, have the financial capability to buy it and can be reached through one or more media. By breaking it down to demographic, socioeconomically, and behavioral data, it allows businesses to understand what messages will generate the best response among their target markets Market Demographics Geographics Demographics Behavior factors Market Needs Trends and Growth S.W.O.T. Analysis a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats involved in a business project or venture. Strengths is an internal asset to the organization. Weaknesses an internal factor that can include such things as, debt, lack of capital, and high staff turnover. Opportunities is an external factor
Threats is an external factor Competition affects the number and types of competitors the marketing manager must face and how they may behave. Product Offering Keys to Success Critical Issues Marketing Strategy Mission Marketing Objectives Financial Objectives Target Markets Positioning Strategies Marketing Mix Distribution Price Advertising and Promotion Customer Service Marketing Research Financials Breakeven Analysis Sales Forecast Expense Forecast Controls Revenue Expenses Customer Satisfaction New Product Development Implementation Marketing Organization Organization Chart Contingency Planning Difficulty and Risks Worst Case Scenario

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Park University MK 351, Principles of Marketing Final Exam Review Guide Spring I, 2010

4. Describe the stages of the product life cycle - The product life cycle means every product has a capability such that it can be used for a certain period of time
Introduction -

The first stage in the product life cycle is product making or

development
Growth Maturity Decline 5. Explain and analyze the advantages and disadvantages of entering international markets. Advantages Economies of scale in production and distribution Lower marketing costs Power & Scope Consistency of Brand Image Ability to leverage good ideas, quality and efficiency Uniformity in marketing process Disadvantages Differences in Consumer needs, wants and use patterns for products Differences in response to marketing elements Differences in trends and products Differences in the legal environment Differences in marketing institutions Differences in administration procedures 6. Explain the impact of e-commerce on the marketing functions. Information more rapidly available Direct customer relationship easier to develop Economies of scale by leveraging advertising collaterals

7. Describe the new product development process Idea generation new ideas can come from a companys own sales and production staff, wholesalers and retailers, competitors, consumer surveys, or other sources such as trade associations, advertising agencies, or government agencies. Screening involves evaluating the new ideas with the SWOT analysis and the product market screening criteria. Things like a thorough understanding of the companys objectives, a long-run trends analysis, a rough ROI (return on investment) estimate, and a life-cycle stage.

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Park University MK 351, Principles of Marketing Final Exam Review Guide Spring I, 2010 Idea evaluation include concept testing, reactions from customers, rough estimates from costs, sales and profits. Development Research and development, developing model or service prototype, test marketing mix, revise plans as needed, and ROI estimate. Commercialization 8. The adoption curve shows when different groups accept ideas. It emphasizes the relations among groups and shows that individuals in some groups act as leaders in accepting a new idea. Innovators are the first to adopt and dont mind taking some risks. Often young and well educated, with likely being mobile and having many contacts outside their local social group and community. Early adopters are well respected by their peers and often are opinion leaders. Unlike innovators, they have fewer contacts outside their own social group or community. Early majority avoid risk and wait to consider a new idea after mnay eraly adopters have tried it and liked it. They have a great deal of contact with mass media, salespeople, and early adopter opinion leaders. Late majority are cautious about new ideas. Often they are older and more set in their ways, so they are less likely to follow adopters. They make little use of marketing sources of information, mass media, or salespeople. Laggards or nonadopters prefer to do things the way they have been done in the past and are very suspicious of new ideas. Tend to be older and less well educated. It may not pay to bother with this group for marketers, because their main source of information is often other laggards. 9. The consultative selling process it builds on the marketing concept, involves developing a good understanding of the individual consumers needs before trying to close the sale. Develop an understanding of needs does not explain much in the text? Provide general benefit statement Ask questions Listen carefully Agree on needs Discuss how to meet needs Close sale Sometimes called the need-satisfaction approach 10. One price and flexible price policies means offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities. One price: Same price to all customers Flexible price: Offering the same product and quantities to different customers at different prices.

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