Exam 1 Review

Dr. Mike Brady

MAR 3023

Exam 1 Review Sheet

This sheet is intended to help you organize your notes so that you can study more
effectively. This sheet is NOT intended to be a comprehensive review of all the
material covered in class, so do not assume that it will take the place of coming to
class or taking good notes. Nor is the test limited to just this material.

Exam Process
Here are some things to know about how the exams will work:

 Your exam will be taken at the testing center – you must go at the time you
registered for.

 Exams are 40 multiple choice questions drawn from a larger pool of questions.

FAQs about the Exams

Q: Is this class an easy A?

A: No, it’s not. Tests are challenging and the grade distribution is historically below a B.

Q: How do I get a good grade?

A: The formula is simple: Read the chapters before you come to class, come to class,
take good notes when you’re here (about that, I recommend printing the slides before
you come to make your job easier), and ask yourself three questions before you take the
exams: (1) Do I know the course content? (2) Would I recognize the course content if I
saw it in an example? And (3) would I be able to apply the course content if someone
put me in a real world scenario? If you do all of these things and can honestly answer
yes to all three questions, you’ve done everything you can to get a good grade in this
course. If you cannot, go back and review the class material posted on Blackboard.
Sample Questions:
Below are two sample questions that provide examples of the kinds of recognition- and
application-style questions you will see on the exam. When studying, ask yourself these
types of questions for each topic and try to think of your own examples for brands and
companies you know.

Recognition Question:
Recognition questions either provide a scenario from a real life business setting or it
describes a concept. Either way, the goal is to recognize what’s being described. For
example:

One of the first parts of the strategic planning process involves taking a complete
assessment of the firm. The process includes describing (1) what the company does
well, (2) what it doesn’t do well, (3) identifying things the firm can take advantage of
and (4) noting things it should be concerned about. The process described is known as:

a. a SWOT analysis
b. External scanning
c. Environmental scanning
d. Strategic assessment
e. Internal scanning

Commentary: As you can see, the question is describing a SWOT analysis without using
the term SWOT.

Application Questions:
Application questions discuss a real life scenario then ask you to apply one of the
concepts you have learned about in class in order to come up with the correct answer.
For Example:

Doritos is a brand that has high market share but it’s in a low growth market. For Pepsi,
which owns the brand, Doritos would be best classified as which of the following on the
BCG grid:

a. Cash cow
b. Star
c. Question mark
d. Dog

Commentary: The question is intended to have you apply the BCG grid categories to
identify the correct quadrant for Doritos. As you can see, it assumes you know the
names of the four categories and makes you apply the grid itself to a real life scenario.
In this case, you needed to know that a brand with a large share of a slow growth
market is by definition a cash cow in the BCG grid.
General Overview of the Exam 1 Content:

 What is Marketing? The aim of marketing is to know and understand customers so

well the product or service fits them and sells itself.
o Product development to satisfy unmet consumer needs
o The Power of Branding/Marketing
o Dr. Brady’s approved definition of Marketing identify unmet needs and
develop products to fill those needs
o What are the 4 Ps of marketing? Product, Price, Place and Promotion
 Marketing’s Core Strategies
o Creation
 Value – reward cards, value menu, babysitting what you get over
what you give up. Positive ratio = positive value
 Relationship – establish long term mutually satisfying buyer-seller
relationships establishing long term relationships (Disney)
o Segmenting Markets Different types of Coke
 Gender “Tab” for women
 Age
 Race
 Education
 Income
 Early adopters
o Identifying opportunities Market opportunity- where circumstance and
timing meet to create strategic windows. Core competencies, what the firm
does well.
 Know the history of Marketing
o Simple Trade Era – made by hand and grown
o Production Era – firms produced what they could make
o Sales Era – firms pushed products using aggressive sales tactics
o Marketing Era- focus on customer orientation
o Societal Era – firms now serve three entities
 Stakeholders – who are they? Part owners of a Company
 4 P’s/The Marketing mix/Marketing Levers
o Product – goods, services, ideas
o Place/Distribution – make products available in quantities desired
o Promotion – inform individuals or groups about the organization…
o Price – decisions and actions associated with establishing pricing objectives
and policies
 Game changers – product, pricing, distribution
 Misconceptions of Marketing
o Marketing vs. Advertising
o Holistic view
 Time as related to Marketing
o What effect does time have in marketing?
 Power of branding and advertising
 Promotion
 The Marketing mix as levers

 Macro-Marketing Strategies
o Creating value-How do companies do this?
o Creating relationships-How do you build a relationship with a customer?
(Charmin-they sell toilet paper so how can they build relationships?)
o Segmenting markets
 Coke, Diet Coke, Coke Zero, etc.
o Identifying opportunities
 Market opportunity
 Core competency
 SWOT analysis
o Strengths, weaknesses, opportunities, threats
o Matching strengths to opportunities
o Converting weaknesses to strengths
o Converting threats to opportunities
 Strategic Business Unit – division of a parent company
o Internal Marketing: Company – employee
o External Marketing: Company – customer
 BCG’s matrix – Star, Cash cows, Question marks, Dogs
 People and firms you should know. Why should you know them?
o Warren Buffet
o Pepsi
o Berkshire Hathaway
o Ralph Nader
 The Internal Environment
o Market Opportunity
o SWOT Analysis
o Strategic Business Units (SBU’s)
 Origins of Marketing Strategy
o Mission Statement
 Vision-How is this different than Mission?
o Corporate Strategy
o Business-Unit Strategy
o Marketing Strategy
o Marketing Mix (4 P’s)
 Market Share
 Successful SBU’s
o Market Share
o Matrix: star, cash cow, question mark, dog
 Internal Marketing
o Empowerment
o Chick-fil-A
 o Southwest Airlines

 The External Environment

o Environmental Forces:
 Competitive – Brand, Generic, Product, Total Budget
 Sociocultural – demographic/diversity characteristics, cultural values,
consumerism
 Changes in U.S. Demographics and implications of these
changes
 American cultural values: which are the same and which are
changing? Example: “staycation” due to economy
 Large scale commercial surveys
 Consumerism
 Subliminal perception: is it real or not?
 Ralph Nader-“Father of consumerism”
 Technological – continual adaptation to new technology
 Economic – Business cycle: Prosperity, Recession, Depression, Recovery
 Legal/regulatory – Regulatory agencies (FTC)
 Political – Corporate donations
 Competitive Structures
o Monopoly
o Oligopoly
o Monopolistic
o Pure Competition
 Corporate Social Responsibility
o Pyramid of CSR
o Marketing citizenship
o Responsibilities
 Economic
 Legal
 Ethical
 Philanthropic
o Cause-related Marketing
o Strategic Philanthropy
o Sustainability
o Consumerism
o Community Relations
 Marketing Ethics
o Understand who are firms’ various stakeholders, who are they?
 Who are affected by companies’ actions?
 Remember BP oil spill?
o Trust issues
o Be able to talk about ethical issues relating to the four Ps of Marketing
 Promotion
 Product
 Price
 Place