IDC4U Exam Review 2025 PDF

IDC4U Exam Review Economics slide Product slide Date: Fri 24th Jan Time: 8:20 AM Location: Room 207​ ​ ​ FOCUS: MARKS: PART A KNOWLEDGE ​ 25 True...

IDC4U Exam Review Economics slide Product slide Date: Fri 24th Jan Time: 8:20 AM Location: Room 207​ ​ ​ FOCUS: MARKS: PART A KNOWLEDGE ​ 25 True/False 25 Marks PART B THINKING ​ 25 Multiple Choice 25 Marks PART C COMMUNICATION ​ 3 Short Answer Questions 20 Marks PART D APPLICATION ​ 2 Case Type Questions 21 Marks Total = 91 MARKS TOTAL WEIGHT: 10% of course mark / EXAM LENGTH: 1.5 HOURS 1.​ What is GDP and what is its significance: Gross Domestic Product is the value of all goods and services produced within the country. 2.​ What is brand equity and what are the steps in developing it. Brand equity is the value a brand has beyond its actual functional benefits because of popularity. The steps to develop it are. 1.Develop the brand in the customer’s mind as part of a class of products. Ex. Gatorade is a sports drink. 2. Link the product’s brand name to its function and make some type of emotional connection with the product and the consistency it has. Ex. Gatorade helps athletes to perform better in athletic events. 3. Help consumers think and feel the way you want them to regarding your product. Ex. Gatorade is the best product of choice for successful athletes. 3.​ What is indirect selling/sales An indirect channel of distribution is a situation when the manufacturer uses intermediaries to sell to the consumer. Intermediaries can be importers/agents, wholesalers or retailers. Agents do not take ownership of the goods they sell, they simply bring buyers and sellers together for a fee ex. Ticketmaster or Stub Hub. 4.​ What is a press release and what is included in it Press Release: An official statement issued to the media to share news or announcements about an organization, event, or product. 5.​ What was the role of public transportation in the evolution of the S&E industry  Increased accessibility for fans, expanded event audiences, boosted revenue, and fostered shared cultural experiences by enabling travel to sports and entertainment venues. 6.​ What is competitive parity and how is it used? Competitive parity is using industry trends and matching promotional spending to what the industry is doing. Problem is that different companies have different objectives 7.​ Define the following terms: ​ * marketing - the process of developing, promoting, and distributing products, or goods and services * Convergence - The merging of technologies, industries, or platforms to offer a unified experience. Example: Streaming live sports games on a mobile app, combining broadcasting and digital technology. * Cross-promotions - any form of communication through which one industry relies on another industry to promote its product. It occurs when two or more companies with similar markets act together to reach and promote to their shared markets * Product tie-in - using ancillary products such as merchandise as promotional tools E.g. Mcdonalds happy meal gives a free toy from the newest Disney movie * Royalty - Royalty: A payment made to the owner of intellectual property (like a trademark, patent, or copyright) in exchange for the right to use it. * Synergy - When different groups work together to create a greater combined effect. Example: A sports team and a beverage company teaming up to boost both sales and brand visibility. 8.​ What is the difference between recreational, amateur and professional athletes Recreational Athlete: a person who plays a sport solely for enjoyment/entertainment. not the same as an amateur athlete, as an amateur athlete participates in more competitive leagues. Amateur Athlete: a person who does not get paid to play a sport. (high school, college) Professional Athlete: an athlete who has the ability to earn an income from a particular sport (nfl, nhl, tennis, golf etc) 9.​ What is the difference between primary and secondary research Primary Research is original research conducted for a specific marketing situation and Secondary research is Secondary Research is published data that have been collected for some other purpose. 10.​ What are the different types of primary research Three types of Primary research methods are: Experiment Observation Survey 11.​ What is branding  Branding is how a product, service, or organization creates a unique identity that makes it stand out and connects with people. It includes things like a logo, colors, and messages that help customers recognize and trust it. 12.​ What is online advertising? Promoting products or services through digital platforms like websites, social media, search engines, and apps to reach and engage a targeted audience. 13.​ What is licensing and how is it used Licensing is an agreement that gives a company the right to use another’s brand name, patent, or other intellectual property for a royalty fee. In sports, teams or leagues license their logos and trademarks to companies that produce merchandise like clothing, accessories, or video games. 14.​ What is institutional advertising and how is it different from normal advertising. Institutional advertising is advertising with a goal of developing goodwill or a positive image. 15.​ Define the terms sponsorship and endorsements? Give an example of each. Sponsorship: A company supports an event or team for brand exposure. Example: Nike sponsoring the NFL. Endorsements: A celebrity promotes a product or service. Example: Serena Williams endorsing Nike. 16.​ How is the marketing of sports different from that of normal products? Sports marketing focuses on promoting teams, athletes, and events, creating emotional connections with fans, while regular product marketing emphasizes selling goods or services based on features and benefits. Sports products differ from typical consumer products because sports products have the ability to generate a greater variety of product extensions. 17.​ What are the different parts of the marketing plan and their significance Executive Summary: Overview of the plan (storyline, goals, strategies). Situational Analysis: SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Marketing Goals: Clear, measurable objectives (e.g., $10M in 3 months). Target Market: Customer profile (age, lifestyle, location). Product: Movie’s unique features. Price: Ticket pricing (discounts, premium options). Place: Theaters, streaming platforms. Promotion: Ads, PR, sales promotions, social media, and merchandise. 18.​ What is included in the economics of sports and entertainment  GDP, Free Enterprise System, Profit, Risk, Competition, Law of Supply, Law of Demand, Price and Non-Price Competition. 19.​ What are trademarks Trademarks: A trademark is a type of intellectual property consisting of a recognizable sign, design, or expression that identifies a product or service from a particular source and distinguishes it from others. EX: Brand Logo 20.​ What is the purpose of sports promotions Sports promotions: aim to increase awareness, drive sales, boost engagement, and create excitement for teams or events. 21.​ Define the term opportunity cost. Give an example of how it is used. Opportunity Cost: The value of the next best alternative that is given up when making a choice. Example: A sports team spends $1 million on new stadium seats instead of upgrading player facilities. The opportunity cost is the potential performance improvement lost by not investing in the players. 22.​ What is discretionary income Discretionary Income: The money left over after paying for essential expenses like housing, food, and taxes. Example: A fan uses their discretionary income to buy tickets to a sports event or merchandise. 23.​ What is the difference between copyrights and patents Copyrights: Legal protection of a creator’s intellectual property or products 70 years + life Patents: Patented inventions are protected for other making, using, importing, selling or offering them for sale Granted for 20 years Copyrights protect creative expressions, while patents protect inventions and ideas. 24.​ What is the difference between a core product and an ancillary product and give an example of each Core Product: The main product that fulfills the primary need. Example: The "Harry Potter" book series. Ancillary Product: Additional products related to the core product that enhance the experience or generate extra revenue. Example: Harry Potter merchandise like wands, clothing, or movie-themed collectibles. 25.​ What is the difference between a product line and a product mix Product Line: The entire group of a manufacturer’s athletic shoes would be called a product line.  Product Mix: The total assortment of products that a company makes/or sells is referred to as the product mix. 26.​ Explain the 4 Ps of marketing Product: What is being sold, including its features and benefits. Price: The cost to the customer, balancing value and competition. Place: Where and how the product is distributed. Promotion: Activities to raise awareness and encourage sales. 27.​ Explain grassroots marketing and how it is used Grassroots Marketing: activity on a local community level 28.​ What is mass marketing Mass Marketing: A strategy that targets a large, broad audience with a single message or product, aiming for wide appeal. 29.​ What is a SWOT analysis and why is it used? Give examples of each component. SWOT Analysis: A tool to evaluate Strengths, Weaknesses, Opportunities, and Threats for strategic planning. Examples: Strengths: Strong brand, e.g., Nike. Weaknesses: High costs. Opportunities: New markets. Threats: Competition, e.g., Adidas. 30.​ List and explain the product life cycle. What are the main characteristics at each stage? Introduction: The product is launched; focus is on creating awareness. High costs, low sales, heavy marketing effort. Growth: Sales increase as the product gains popularity. Rising revenue, market expansion, increased competition. Maturity: Sales peak and start to stabilize. Market saturation, focus on differentiation, competitive pricing. Decline: Sales drop due to reduced demand. Falling revenue, product discontinuation, or repositioning. 31.​ Identify and explain the different types of pricing strategies and objectives Pricing Strategies Prestige Pricing: expensive sports products priced well above the average price to attract a target market. Based on a consumer's perception of quality.  Bundle Pricing: selling as a package for a set price (buy ticket, get jersey, food, parking) Loss Leader Pricing: pricing an item at cost to draw customers into the store Yield Management Pricing: pricing items at different prices when limited capacity is involved. Ex Seats closer to the floor more expensive. Price fixing: competitors secretly agree to set the same price (it's illegal) Odd-Even Pricing: pricing goods with either an odd or even number to match a product’s image Target Pricing: pricing goods according to what the customer is willing to pay Cost-Plus Pricing: pricing products by calculating all costs and expenses and adding desired profit Non-Price Competition: competition between businesses based on quality, service and relationships Price Lining: selling all goods in a product line at specific price points Predatory Pricing: setting a very low price to drive competition out of business (illegal) 32.​ What is the Marketing Mix 4Ps of Marketing Mix Product: What is being sold, including its features, design, and quality. Price: The cost customers pay, considering value and competition. Place: Where and how the product is distributed and made available. Promotion: Strategies to advertise and communicate the product to the audience. 33.​ What are the steps in the selling process 1.​ Approach. - first meeting between salesman & client. The goal is to establish a relationship. 2.​ Determine needs- through active listening- sell what they want 3.​ Present the product- how the product meets needs and wants 4.​ Overcome objections - answer questions & turn negatives into positives 5.​ Close the sale - sell the product 6.​ Perform suggestion selling- try to sell ancillary products to go with them 7.​ Follow up. - further develop relationship to repeat business 34.​ What is co-branding combines one or more brands to increase consumer loyalty and sales for each product 35.​ Define the term media and give examples of the different types Media involves many different types of mass communication. These include:  Print: newspapers, magazines, direct mail, outdoor advertising,station posters, stadium stage Broadcasting: Radio and television Direct marketing: promotional activities tailored to individual customers either through mail, email, phone (part of a database) Online advertising: banner advertising, company web sites,online promotions, pop-ups and social media etc. 36.​ List and explain the various forms of print media Newspapers: Local; targets customers in home town Magazines: Regional or national; large specific audience Direct Mail: Personalized message; may be considered “junk mail” Outdoor Advertising: vvGeographically selected audience; short message Station Posters: Geographically selected audience; short message; aimed at travelers e.g. at airline or train stations Stadium Signage: Seen by people at an event and television viewers; often used by sponsors 37.​ List and explain the types of promotions Advertising: Paid media (e.g., TV, online ads). Sales Promotions: Discounts, giveaways. Public Relations: Events, media interviews. Direct Marketing: Emails, direct offers. Sponsorships: Partnering with brands. Social Media Campaigns: Engaging on platforms like Instagram. 38.​ What is the promotional mix -​ Press Release -​ Advertisements -​ Sales Promotion -​ Public Relations -​ Ancillary Products -​ Social Media Ad -​ TV Commercial 39.​ Explain the different ways in determining a promotional budget A promotional budget is how much money a company puts towards spending on promotion. Percentage of Sales: Allocating a percentage of current or projected sales revenue to the promotional budget. Competitive Parity: Setting the budget based on competitors’ spending on promotions. Objective and Task: Determining the budget based on the specific goals and tasks needed to achieve them. 40.​ What is cross-selling and give an example Cross-Selling: Encouraging customers to buy additional related products or services.  Example: A sports store suggests buying socks or a water bottle along with new running shoes. 41.​ What the difference between a fad and a trend Fad: A short-lived, popular phenomenon that quickly fades away once interest declines. Example: Fidget spinners, which were extremely popular for a brief time. Trend: A long-lasting shift or movement that grows over time and has sustained interest. Example: The trend toward eco-friendly products and sustainability. 42.​ What percentage of ads and commercials are remembered by viewers 4% of ads and commercials are remembered by viewers. On average out of every 100 are remembered the next day. 43.​ Explain the terms demographics, psychographics and geographics and give an example of each Demographics: Characteristics like age, gender, and income, family life cycle and ethnicity. Example: Targeting sports gear to young adults. Psychographics: Interests, values, and lifestyles. Example: Marketing outdoor gear to adventure seekers. Geographics: Location-based market segmentation and Urban, Suburban or Rural. Example: Selling winter gear in colder regions. 44.​ What is publicity? How is it different from advertising? Publicity is unpaid and gained through media coverage, while advertising is paid and controlled by the company.