Principles of Marketing Final Exam Preparation (Fall 24) - Alfaisal University PDF

PRINCIPLES OF MARKETING FALL 24 | DR. JOHANN N. GIERTZ FINAL EXAM PREPARATION 1 FINAL EXAM REMARKS The seating plan will be announced in due time before the final exam No student will be permitted to enter the examination hall later than 5 minutes after t...

PRINCIPLES OF MARKETING FALL 24 | DR. JOHANN N. GIERTZ FINAL EXAM PREPARATION 1 FINAL EXAM REMARKS The seating plan will be announced in due time before the final exam No student will be permitted to enter the examination hall later than 5 minutes after the commencement of the exam. Students are not allowed to leave the examination hall until a minimum of 30 minutes has elapsed from the start of the examination. All students must present a valid university ID upon entering the examination hall (Not a picture from the phone!) 2 FINAL EXAM DETAILS Date: Monday, December 23rd, 12:30 – 03:30 pm Time to finish exam: 2 hours 30 minutes Location: CDEX – Zone A and Zone B Female Knowledge Scope: Chapters 10, 11, 12, 13 Open Book?: No Scope of Expectations: Knowledge of Course Material (e.g., Multiple Choice, and Short Answer Questions) Understanding & Application of Course Material (e.g., Essay Questions, Answering Small Business Cases) 3 HIGHLIGHT 1: CUSTOMER EVALUATION OF SERVICE ATTRIBUTES  Business Implications: Recognizing the type of service attributes helps businesses tailor their marketing strategies to provide the right information to consumers at the right time.  Example: High-credence services (like healthcare) require building trust and expertise, while high-search services (like retail) focus on providing clear product details upfront. 4 HIGHLIGHT 2: PENETRATION PRICING Establish Pricing Objective and Strategy Penetration Pricing  Objective: Achieve maximum market share through low initial pricing.  Strategy:  Sets low prices to attract customers and deter competition. Lay’s vs. Pringles  Often used in early stages of product life cycle, with prices increasing over time.  Advantages:  Builds market share quickly.  Creates barriers for new entrants.  Considerations:  Low prices may impact perceived quality.  Price changes can affect brand positioning and customer When introduced, Lay’s expectations. was 40% cheaper than Pringles. Now It is only 10% cheaper. 5  HIGHLIGHT 3: DISTRIBUTION INTENSITY  Objective: Maximize product exposure by placing it in as many outlets as possible. Intensive  Common for convenience goods and impulse products that customers frequently purchase with minimal decision-making. Distribution Example: Chewing gum  Used for products that require customer comparison and are typically bought after Selective some consideration.  Retailers provide more specialized sales support and a better customer experience. Distribution Example: High-end electronics  Suitable for premium products where brand image and exclusivity are essential. Exclusive  Typically involves only a few select outlets to maintain product prestige and control over the shopping experience. Distribution Example: Luxury products 6  HIGHLIGHT 4: OWNED MEDIA Owned media refers to digital assets that a company fully controls and uses to engage its audience. Examples Advantages Potential Issues Firm’s website (mobile Longevity Potential credibility issues and non-mobile) Flexibility Potentially substantial E-mail Ability to speak to niche development effort Owned Media Firm’s blog audiences in depth required Firm’s social media Desired results may be account achieved over longer time horizons Own Website Own Blog Articles 7  HIGHLIGHT 4: PAID MEDIA Paid Media refers to any form of advertising where a company pays to promote its content, products, or services through external platforms. Examples Advantages Potential Issues Display ads Speed Difficulty standing out Search ads Flexibility Declining response rates Native ads Targeting capabilities Potential credibility issues Paid Media Social Media ads Scalability Control Measurability Search Ads Display Ads 8  HIGHLIGHT 4: EARNED MEDIA Earned media refers to exposure gained through word-of-mouth, organic interactions, and unpaid content created by external parties. Examples Advantages Potential Issues Social media shares Credibility Lack of control User reviews of Potential cost Communications and products efficiencies conversations may be Earned Media Mentions of an Transparency negative organization on a third Value can be difficult to party’s website or blog measure Product Blog Reviews Articles 9 HIGHLIGHT 5: DIGITAL ADVERTISING Why should you use Digital Advertising? Advantages: Rich Data Insights: Enables granular analysis of ad performance. Actionable Outcomes: Tracks specific customer actions (e.g., clicks, purchases). Flexibility: Easily adjusts promotional strategies if data indicates low effectiveness. Customization: Segment Targeting: Delivers tailored messages to different audience segments. Ad Adjustments: Optimized based on demographics, behaviors, or search terms. Cost Efficiency: Lower costs for reaching targeted audiences compared to traditional media. Allows for precision in measuring ROI through direct engagement metrics. Limitations: Challenge in gauging long-term brand impact remains 10