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Exam 3 Review

Questions:
- Multiple choice requiring memorization of key concepts or performance of a simple quantitative
analysis
- Short answer, testing practical application
Materials:
- Class lectures
- Cases
Pricing strategy and management
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Role of pricing versus the other 3 Ps (product, promotion, place)


What are the three key pricing factors?
What is price elasticity of demand and how is it calculated? What does it mean if price elasticity is <, =,
or > 1?
You may be asked to calculate a price elasticity for a product.
How can firms decrease price elasticity?
What are total costs, fixed costs, variables costs, and marginal costs, as well as relevant and sunk costs?
Be familiar with different pricing strategies, as well as when and by whom they are used.
When do firms select skimming vs. penetration pricing strategy?
What are pricing constraints? Particularly, what constraints exist in regard to distribution and pricing
across different channels? Make sure you are familiar with the Snapper example.
You may be asked to calculate a price given target ROI pricing.
I may also give you a fictitious scenario and ask what pricing strategy would you select and why.

Cases:
- What role can research (interviews, questionnaires, other data) play when determining pricing
- What considerations should firms take into account when establishing a pricing policy based on the
Springfield Nor`Easters case?
- How does one calculate potential ticket revenue per game?
- What pricing strategy should Nor`easters implement?
Integrated Marketing Communications and Promotion Strategy
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What is IMC and why is it becoming increasingly important?


What are the components of the communication mix?
What are the key roles of advertising?
What are eye tracking and heat maps used for?
What was Czech dream and what was its purpose?
How do firms determine their advertising budgets? What are % of sales, competitive, and payout
methods?
What are direct marketing, search engine marketing (SEM) and search engine optimization?
What is behavioral marketing? What are site retargeting, search retargeting, conquesting, mobile
optimization, data onboarding and inbound leads?
What was so unique about Adidas`s advertising during World Cup?
I may give you an example of an ad or an ad copy and have you critique it (much like we did with the
Crime Stoppers brochure)

Case:
- What are push and pull strategies? When should firms use which strategy?

What do firms need to consider when establishing a promotional strategy (based on what you learned
from the Culinarian Cookware case)?
How does one evaluate the profitability of a price promotion?
In the Culinarian Cookware case, the profitability estimates differed between Brown and consultants.
Why? Who was right?
I may give you an example of a company and then ask what promotion should they run (on which
products, what discount rate should be offered, at what times and how frequently etc.)

Supply Chain and Marketing Channels


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What is supply chain management and what role does it play in marketing (e.g., how does it influence
marketing decisions)?
What is the objective of a supply chain? How is value interpreted?
What is the difference between efficient and responsive supply chains? When should firms use one vs.
the other?
What are the different channel configurations? When and why would firms choose to sell their products
through intermediaries?
When might direct channels be preferred to indirect?
What is your take on prison labor to be hired by corporations?
What factors do firms consider when selecting the best marketing channel?
What is the relationship between distribution and positioning/advertising, promotions, target audience,
and price?
What are intensive, selective, and exclusive distributions?
Be familiar with the Pen Again example and how their channel strategy influenced their products,
positioning, and pricing.

Cases:
- When expanding into a new channel, what should firms consider? (advantages, risks, channel partner
motivation, expertise, pricing, positioning, channel conflict, product mix). To answer this question you
can draw on the experience of Natureview Farm.
- In your opinion, why did not Natureview succeed at expanding into the supermarket channel using 8-oz.
product line but had to resort to a 32-oz product offering?
Corporate Social Responsibility
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What is CSR?
Can CSR lead to greater firm profitability, if so how? Consider supply chains, operations, compliance,
products and services. Also, name specific examples.
What is returns management and how can it generate profit for companies?
According to Dan Palotta, what is wrong about the way we think about charity?

Inbound Marketing
- What is inbound marketing and how does it differ from outbound marketing?
- What challenges arise when firms use only inbound marketing to generate sales?
- What is the customer funnel and how are new technologies influencing the way salespeople operate?