MGT 103 STUDY EXAMS GUIDE ANSWERS AND
QUESTIONS SET A+
✔✔Requirements to establish causality - ✔✔1. control/manipulate the cause
(independent variable) and hold "everything else" constant
2. the cause has to precede the effect (dependent variable)
3. random assignment - makes experimental
groups statistically equivalent
✔✔egocentrism - ✔✔thinking that other people think the same as you -> DANGEROUS
in marketing
✔✔Which stakeholders should you take care of first? - ✔✔- Many would say customers,
but it is employees
- Well-run corporations have happy employees b/c there was a focus on them first
✔✔What is Marketing? - ✔✔The creation/discovery/communication and delivery of
VALUE
✔✔Characteristics of Products - ✔✔- durable and non-durable goods
- services are also included
- tangible or intangible
✔✔convenience products - ✔✔- no brand loyalty
- easy to find/readily available
✔✔shopping products - ✔✔Ex) Bed, laptop
Available in fewer locations
Spent more time shopping and comparing
✔✔specialty products - ✔✔Rarely purchased/higher priced
Available in even fewer locations
, Distribution exclusive
✔✔unsought products - ✔✔Do not actively seek
Only consider purchasing when a specific, often urgent, need rises
Ex) Life insurance
✔✔levels of innovation - ✔✔1. continuous innovation 2. dynamic continuous 3.
discontinuous innovation
✔✔continous innovation - ✔✔Low-level enough that all you have to do is make the
consumer AWARE it exists
Ex) Cracker going from 1 in. to 2 in. -> don't need to educate consumers
✔✔dynamically continuous - ✔✔Have to point out benefits to consumers
Often higher priced
Promototion is necessary
ex) Electric vs manual toothbrushes
✔✔discontinuous - ✔✔REQUIRES education, highlight benefits and explaining how to
use the new product
Personal selling (between sales person and consumer)
✔✔Biggest Product Failure (Coke) - ✔✔New Coke (April 23, 1985)
- "Take the Pepsi Challenge" campaign (blind taste test people preferred pepsi)
- Pepsi was sweeter -> Coke made their drink sweeter
- People liked the sweeter drink more from blind test
- New Coke: Prevent cannibalization of OG Coke -> take OG Coke off market
- Consumers were angy
- 79 days of turmoil
✔✔Product Cycle - ✔✔introduction, growth, maturity, decline
✔✔Introduction - ✔✔Beginning of product category
Profits will be negative
Objective: Gain awareness
✔✔Growth - ✔✔A lot of competitors are entering the market
Product category is growing
Objective: Stress differentiation
✔✔Maturity - ✔✔Weaker competitors exit the market
QUESTIONS SET A+
✔✔Requirements to establish causality - ✔✔1. control/manipulate the cause
(independent variable) and hold "everything else" constant
2. the cause has to precede the effect (dependent variable)
3. random assignment - makes experimental
groups statistically equivalent
✔✔egocentrism - ✔✔thinking that other people think the same as you -> DANGEROUS
in marketing
✔✔Which stakeholders should you take care of first? - ✔✔- Many would say customers,
but it is employees
- Well-run corporations have happy employees b/c there was a focus on them first
✔✔What is Marketing? - ✔✔The creation/discovery/communication and delivery of
VALUE
✔✔Characteristics of Products - ✔✔- durable and non-durable goods
- services are also included
- tangible or intangible
✔✔convenience products - ✔✔- no brand loyalty
- easy to find/readily available
✔✔shopping products - ✔✔Ex) Bed, laptop
Available in fewer locations
Spent more time shopping and comparing
✔✔specialty products - ✔✔Rarely purchased/higher priced
Available in even fewer locations
, Distribution exclusive
✔✔unsought products - ✔✔Do not actively seek
Only consider purchasing when a specific, often urgent, need rises
Ex) Life insurance
✔✔levels of innovation - ✔✔1. continuous innovation 2. dynamic continuous 3.
discontinuous innovation
✔✔continous innovation - ✔✔Low-level enough that all you have to do is make the
consumer AWARE it exists
Ex) Cracker going from 1 in. to 2 in. -> don't need to educate consumers
✔✔dynamically continuous - ✔✔Have to point out benefits to consumers
Often higher priced
Promototion is necessary
ex) Electric vs manual toothbrushes
✔✔discontinuous - ✔✔REQUIRES education, highlight benefits and explaining how to
use the new product
Personal selling (between sales person and consumer)
✔✔Biggest Product Failure (Coke) - ✔✔New Coke (April 23, 1985)
- "Take the Pepsi Challenge" campaign (blind taste test people preferred pepsi)
- Pepsi was sweeter -> Coke made their drink sweeter
- People liked the sweeter drink more from blind test
- New Coke: Prevent cannibalization of OG Coke -> take OG Coke off market
- Consumers were angy
- 79 days of turmoil
✔✔Product Cycle - ✔✔introduction, growth, maturity, decline
✔✔Introduction - ✔✔Beginning of product category
Profits will be negative
Objective: Gain awareness
✔✔Growth - ✔✔A lot of competitors are entering the market
Product category is growing
Objective: Stress differentiation
✔✔Maturity - ✔✔Weaker competitors exit the market
