BADM 320 EXAM 1 UIUC WOLTERS QUESTIONS WITH CORRECT ANSWERS

BADM 320 EXAM 1 UIUC WOLTERS
QUESTIONS WITH CORRECT
ANSWERS
How to develop a social media plan - ANSWER--make clear what you are and are
not using SM for
-decide SM platform for your brand
-write out SM plan
-stick to your SM plan (consistency is key)
-spend time, money, and energy to do it right

What is social media for? - ANSWER-building relationships with the customer (NOT
directly selling to the customer)

Criteria for deciding your social media platform - ANSWER-1. characteristics of your
clients vs. characteristics of those that use that SM platform
2. how much you want to develop your brand in SM (can develop more on FB than
Twitter because of character limits)
3. amount of customer communication (do you want to be able to reply)
4. directing people to website (ultimately, want people to go to your website to buy
things)

4E Framework for Social Media - ANSWER-1. Excite: excite customers with relevant
offers
2. Educate: inform customers of benefits
3. Experience: customers experience the product (directly or indirectly)
4. Engage: customers take action (buy the book, like on FB, order the DVD, etc.)

Things that affect the marketing environment - ANSWER--immediate environmental
factors
-macroenvironmental factors

Immediate Environmental Factors - ANSWER-Things firms can directly control,
manage, or influence
1. competition (adjusting prices, developing new products, etc.)
2. company capabilities (develop things you're good at, avoid things you're bad at)
3. corporate sponsors (who your company chooses to work with)

Macro-Environmental Factors - ANSWER-Things that affect every firm, but to
varying degrees
1. Culture
2. Demographics
3. Social Trends
4. Technological Change

, 5. Economic Effects
6. Political/Legal Environment
7. Natural

Porter's 5 Competitive Forces Model - ANSWER-Helps you to analyze your industry.
1. Threat of new entrants
2. Threat of substitute products
3. Bargaining power of suppliers
4. Bargaining power of buyers
5. Intensity of rivalry

GE McKinsey Matrix - ANSWER-Helps a company decide where to invest money.
Has 2 criteria: Industry attractiveness and strength of your business unit (SBU)
Has 3 options: grow, hold, divest

Grow - ANSWER-(GE McKinsey Matrix) a company will grow their investment if:
-industry attractiveness is high/SBU is high
-industry attractiveness is high/ SBU is med
-industry attractiveness is med/ SBU is high

Hold - ANSWER-(GE McKinsey Matrix) a company will hold their investment if:
-industry attractiveness is low/ SBU is high
-industry attractiveness is high/ SBU is low
-industry attractiveness is med/ SBU is med

Divest - ANSWER-(GE McKinsey Matrix) a company will divest their investment if:
-industry attractiveness is low/ SBU is med
-industry attractiveness is med/ SBU is low
-industry attractiveness is low/ SBU is low

Differentiation - ANSWER-do whatever to make the product special (so people will
pay more for it)

Cost Leadership - ANSWER-do whatever to have lowest prices

Focus Strategy - ANSWER-focus on a single group (can be a focus cost leadership
or a focus differentiation)

Industry Key Success Factors - ANSWER-attributes that make the difference
between a great and an okay company (usually 5-6 in an industry)

What must you ask to find KSFs? - ANSWER-1. What do customers want?
2. How does the firm survive competition?
3. Are there any death bells in the industry?

Death Bells - ANSWER-things that are deal breakers; attributes that would kill off a
product

Main reasons marketers fail: - ANSWER-1. don't do enough research and offer
products people don't want