Exam 1 - Study Guide
Chapter 1, 2, 5, 6
Multiple Choice: 10 questions, 2 points each: (Total of 20 points)
Short Answer: 2 Questions (12 pts each)
CHAPTER 1 - MARKETING OVERVIEW AND TOOLS
Marketing vs. Selling ● Start time
○ Marketing = before you have the product
○ Selling = when you have the product
● Marketing figures out what people need, what a company
should make; determines how to launch, price, distribute,
promote the product; monitors results and improves the
offering over time
Marketing ● Isn’t marketing just selling and advertising?
Misconceptions ○ Selling and advertising starts only when you have a
product.
○ Marketing starts before there is a product.
● Pricing low will fix most problems by bringing in more
customers
○ Competing on price is one of many strategies a firm
can use
○ While low price may increase market share in the
short run, it usually has disastrous long-term
consequences (Why do firms use promotions
sparingly?)
● We don’t need marketing. We already make a superior
product.
○ Unless the product is properly positioned to the right
target segment how will you generate revenues?
Marketing Organizational function for creating, communicating and delivering
value to customers and managing customer relationships in ways
that benefit the organization and its stakeholders
Need an exchange → each party gives something in order
to get something
● Satisfies customer needs/ wants
● Entails an exchange
● Requires product, price, place, promotion design
Marketing and ● Marketing → not a cost center
Customer Relationship ● Marketing = growth center and revenue generator
● Listens to customer and industry
4 P’s Product, Price, Place, Promotion
, Exchange process
Product Strategy Creates value
● How product is designed/ conducted
● Provides benefits (with chosen positioning and targeting
segment) by developing goods, services, and ideas to
satisfy customer needs
● Ex: features, brand name, packaging, service, warranty
- Who is your target customer?
- What do they expect from your product?
- Describe the features and benefits
- How is it different from the competition?
Pricing Strategy Captures value
● Everything a buyer gives up in exchange for product
● Depends on consumer’s specific needs
● Ex: list price, discounts, allowances, credit terms, payment
period
- What is your pricing strategy?
- How does your pricing compare to others?
- What value is your product to customers?
- Do you need or use pricing incentives for new customers?
- Do you use pricing incentives for loyal customers?
Promotional Strategy Communicates value
● Where/ how product will be promoted
● Informs, persuades about product to influence opinions
● Builds awareness, conveys info, creates positive associate,
increases intent to purchase
● Ex: advertising, personal sling, sales promotion
- How will you reach your target market?
- What are competitors doing to promote their product?
- Do you need a sales team for outbound promotion?
- What online promotional tactics will you use?
Chapter 1, 2, 5, 6
Multiple Choice: 10 questions, 2 points each: (Total of 20 points)
Short Answer: 2 Questions (12 pts each)
CHAPTER 1 - MARKETING OVERVIEW AND TOOLS
Marketing vs. Selling ● Start time
○ Marketing = before you have the product
○ Selling = when you have the product
● Marketing figures out what people need, what a company
should make; determines how to launch, price, distribute,
promote the product; monitors results and improves the
offering over time
Marketing ● Isn’t marketing just selling and advertising?
Misconceptions ○ Selling and advertising starts only when you have a
product.
○ Marketing starts before there is a product.
● Pricing low will fix most problems by bringing in more
customers
○ Competing on price is one of many strategies a firm
can use
○ While low price may increase market share in the
short run, it usually has disastrous long-term
consequences (Why do firms use promotions
sparingly?)
● We don’t need marketing. We already make a superior
product.
○ Unless the product is properly positioned to the right
target segment how will you generate revenues?
Marketing Organizational function for creating, communicating and delivering
value to customers and managing customer relationships in ways
that benefit the organization and its stakeholders
Need an exchange → each party gives something in order
to get something
● Satisfies customer needs/ wants
● Entails an exchange
● Requires product, price, place, promotion design
Marketing and ● Marketing → not a cost center
Customer Relationship ● Marketing = growth center and revenue generator
● Listens to customer and industry
4 P’s Product, Price, Place, Promotion
, Exchange process
Product Strategy Creates value
● How product is designed/ conducted
● Provides benefits (with chosen positioning and targeting
segment) by developing goods, services, and ideas to
satisfy customer needs
● Ex: features, brand name, packaging, service, warranty
- Who is your target customer?
- What do they expect from your product?
- Describe the features and benefits
- How is it different from the competition?
Pricing Strategy Captures value
● Everything a buyer gives up in exchange for product
● Depends on consumer’s specific needs
● Ex: list price, discounts, allowances, credit terms, payment
period
- What is your pricing strategy?
- How does your pricing compare to others?
- What value is your product to customers?
- Do you need or use pricing incentives for new customers?
- Do you use pricing incentives for loyal customers?
Promotional Strategy Communicates value
● Where/ how product will be promoted
● Informs, persuades about product to influence opinions
● Builds awareness, conveys info, creates positive associate,
increases intent to purchase
● Ex: advertising, personal sling, sales promotion
- How will you reach your target market?
- What are competitors doing to promote their product?
- Do you need a sales team for outbound promotion?
- What online promotional tactics will you use?
