MGT 8803 Marketing Exam 2025

What is marketing? - -the creation and satisfaction of demand for a product or service. What is strategy? - -a set of ideas that outline how a product line or brand will achieve its objectives. What is a tactic? - -a specific action or method that contributes to achieving a goal. What are the universal functions of marketing? - -buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information. What is the marketing mix? - -the combination of the four Ps: product, price, place, and promotion. What are the 5 c's of marketing strategy? - -customer, company, competitors, collaborators, context (pestel). What is segmentation? - -the process of dividing a market into groups of buyers with different needs or behaviors. What is a target market? - -a fairly homogeneous group of customers to whom a company wishes to appeal. What is positioning? - -how customers think about a proposed or present brand in a market. What is customer value? - -the difference between the benefits a customer sees from a marketing offering and the cost of obtaining those benefits. What is intensive distribution? - -a strategy that sells a product through all suitable wholesalers and retailers to achieve maximum market coverage. What is selective distribution? - -a strategy that sells a product through selected intermediaries that give it special attention. What is exclusive distribution? - -a strategy that sells a product through only one intermediary in a specific geographic area. What is a market segment? - -a subgroup of a market made up of people or organizations sharing one or more characteristics that cause them to have similar product needs. MGT 8803 MGT 8803 What is a generic market? - -a market with broadly similar needs and sellers offering diverse ways of satisfying them. What is a product-market? - -a market with very similar needs and sellers offering close substitute ways of satisfying those needs. What is a marketing strategy? - -a firm's plan for targeting a market and creating a marketing mix to satisfy those consumers. What is a marketing mix? - -the combination of the four controllable variables (product, price, place, promotion) a company uses to satisfy a target market. What is a product class? - -a group of products that are seen as substitutes for each other. What is the adoption curve? - -a graph showing when different groups (innovators, early adopters, early majority, late majority, laggards) accept new ideas. What is pioneering advertising? - -advertising that tries to develop primary demand for a product category rather than a specific brand. What is competitive advertising? - -advertising that tries to develop selective demand for a specific brand. What is reminder advertising? - -advertising used to keep the product's name before the public. What is institutional advertising? - -promotes an organization's image, reputation, or ideas rather than a specific product. What is the difference between product and institutional advertising? - -product advertising promotes a specific product; institutional advertising promotes the organization or brand. What is a sales territory? - -a geographic area that is the responsibility of one salesperson or a sales team. What is telemarketing? - -using the telephone to sell directly to customers. What is team selling? - -a strategy where several salespeople or departments work together to service large or complex accounts. What is prospecting? - -the process of identifying potential customers. What is a sales presentation? - -a salesperson's planned communication to persuade a customer to buy. MGT 8803 MGT 8803 What is customer service? - -supporting customers after a purchase to ensure satisfaction and resolve issues. What is a distribution center? - -a warehouse designed to speed the flow of goods and avoid unnecessary storing costs. What is JIT (just-in-time)? - -an inventory management approach that ensures products arrive exactly when needed, minimizing inventory costs. What is EDI (electronic data interchange)? - -the computerized exchange of business documents between firms. What is inventory turnover? - -the number of times inventory is sold and replaced over a period. Direct channel - -a distribution channel in which a producer sells directly to a customer without intermediaries. Indirect channel - -a distribution channel that includes one or more intermediaries between the producer and consumer. Logistics customer service level - -the speed and dependability of delivering products as expected by customers. Bulk-breaking - -dividing larger quantities into smaller quantities for resale to customers. Accumulating - -collecting products from many small producers. Sorting - -separating products into grades and qualities desired by different target markets. Assorting - -putting together a variety of products to give a target market what it wants. Supply chain - -the complete sequence of suppliers that contribute to creating a product and delivering it to the end user. Retail strategy - -a retailer's overall plan for serving a target market and positioning its business. Specialty shop - -a small retail store offering a specialized and distinct assortment of products and services. Department store - -a large retail store that offers a wide variety of goods organized into departments. MGT 8803 MGT 8803 Mass merchandiser - -a large-scale retail operation emphasizing low prices and broad assortments of goods. Supercenter - -a very large store that combines a supermarket with a discount store. Showrooming - -the practice of examining products in-store but purchasing them online. Multichannel retailing - -using multiple channels (e.g., physical store, website, app) to reach customers. Merchant wholesaler - -a wholesaler who owns the products they sell. Agent wholesaler - -a wholesaler who does not own the products but facilitates sales between buyers and sellers. Consumer product classes - -convenience, shopping, specialty, unsought products. Convenience product - -a product that a consumer needs but isn't willing to spend much time or effort shopping for. Staple product - -a convenience product that is bought often, routinely, and without much thought. Impulse product - -a convenience product that is bought quickly as unplanned purchases because of a strongly felt need. Emergency product - -a product that is purchased immediately when the need is great. Shopping product - -a product that a customer feels is worth the time and effort to compare with competing products. Homogeneous shopping product - -shopping products the customer sees as basically the same and wants at the lowest price. Heterogeneous shopping product - -shopping products the customer sees as different and wants to inspect for quality and suitability. Specialty product - -a consumer product that the customer really wants and makes a special effort to find. Unsought product - -a product that potential customers don't yet want or know they can buy. New unsought product - -a product offering that potential customers don't yet know about. MGT 8803 MGT 8803 Regularly unsought product - -products that stay unsought but not unbought forever, like gravestones or encyclopedias. Business product classes - -installations, accessories, raw materials, component parts, mro supplies, professional services. Installations in business products - -important capital items like buildings, land rights, and major equipment. Accessories in business products - -short-lived capital items like tools and production equipment. Raw materials - -unprocessed expense items that are moved to the next production process. Component parts - -finished or nearly finished items that become part of a final product. Component materials - -items that need more processing before becoming part of the final product. MRO supplies - -maintenance, repair, and operating supplies that support production. Professional services - -specialized services that support a firm's operations (e.g., consulting, advertising, it). Stages of the aida model - -attention, interest, desire, action. Attention stage of aida - -getting the target customer to notice the marketing message. Interest stage of aida - -arousing curiosity and building interest in the product or service. Desire stage of aida - -creating a strong feeling of need or want for the product. Action stage of aida - -encouraging the customer to take action, like purchasing. Awareness stage of adoption - -the consumer becomes aware of a new product but lacks detailed info. Interest stage of adoption - -the consumer seeks information about the product. Evaluation stage of adoption - -the consumer considers whether trying the product makes sense. Trial stage of adoption - -the consumer tries the product to assess its value. Decision stage of adoption - -the consumer decides to adopt or reject the product. MGT 8803 MGT 8803 Confirmation stage of adoption - -the consumer evaluates the decision and seeks reinforcement. Stages of the product life cycle - -introduction, growth, maturity, decline. Introduction stage of the plc - -sales are low, and marketing efforts focus on awareness and trial. Growth stage of the plc - -sales grow rapidly, competition enters, profits rise then fall. Maturity stage of the plc - -sales level off, competition is intense, profits decline. Decline stage of the plc - -sales decline, and firms may exit or try to reposition the product. PSSP - -physiological, safety, social, personal needs. Physiological needs - -biological needs such as food, water, rest. Safety needs - -protection and physical well-being. Social needs - -needs related to love, belonging, friendship. Personal needs - -needs related to personal satisfaction, accomplishment. Personal selling - -direct spoken communication between sellers and potential customers. Mass selling - -communication with large numbers of potential customers at the same time. Sales promotion - -a marketing strategy that involves short-term incentives to encourage the purchase or sale of a product. Activities other than advertising and personal selling - -stimulate interest or purchase. Advertising - -any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor. Publicity - -unpaid form of nonpersonal presentation of ideas, goods, or services. Five major modes of transportation - -truck, rail, water, air, pipeline. Benefits of truck transport - -fast, extensive reach, high dependability. MGT 8803 MGT 8803 Limitations of truck transport - -high cost for large volumes. Benefits of rail transport - -economical for heavy and bulky goods. Limitations of rail transport - -slower and limited to rail access. Benefits of water transport - -very low cost, ideal for bulky non-perishables. Limitations of water transport - -very slow and limited access. Benefits of air transport - -fast delivery, high dependability. Limitations of air transport - -very expensive, limited cargo types. Benefits of pipeline transport - -low cost, high dependability for liquids/gases. Limitations of pipeline transport - -very limited cargo types and flexibility. Cost-oriented pricing - -setting prices based primarily on the cost of production. Demand-oriented pricing - -setting prices based on what customers are willing to pay. Average cost pricing - -adding a markup to the average cost per unit. Marginal analysis - -evaluating changes in revenue and cost from producing one more unit. Break-even pricing - -finding the price point at which total revenue equals total cost. Value-based pricing - -setting price based on perceived value to the customer. Price discrimination - -charging different prices to different customers for the same product. Psychological pricing - -setting prices that have a psychol