BM13C1 Exam Review PDF

BMI3C1 Exam Review Chapter 1: What is Marketing? 1.1 → Marketing Goods and Services 1.​ The activities that marketers engage in -​ The planning, pricing, promoting, distributing, and selling of goods and services to satisfy consumer needs...

BMI3C1 Exam Review Chapter 1: What is Marketing? 1.1 → Marketing Goods and Services 1.​ The activities that marketers engage in -​ The planning, pricing, promoting, distributing, and selling of goods and services to satisfy consumer needs and wants -​ Good vs service 1.2 → Evolution of the Marketing Concept 2.​ The steps of the marketing concept -​ Step 1: identify an opportunity in a specific market -​ Step 2: ensure that the opportunity has not already been met in the competitive market -​ Step 3: use appropriate marketing strategies to organize marketing plans and to sell the product successfully 3.​ What are gatekeepers and why are they important -​ Gatekeepers are the secondary market, they are people the product is intended for but not the people who buy it, for example children 1.4 → Marketing Activities 1.6 → The Marketing Mix 4.​ Know the 4 Ps and 2 Cs -​ Product, price, place, promotion -​ Competition and consumerism Chapter 2: The Consumer 2.1 → Consumer Demand 5.​ The difference between consumers and customers -​ Consumer → product is intended for -​ Customer → purchases the product 2.2 → Product Life Cycle 6.​ The stages of the traditional product life cycle -​ Research & development, introduction stage, growth stage, maturity stage, decline stage, decision point stage 7.​ Knowledge of the non-traditional product life cycles -​ Fad, trend, niche, seasonal 2.3 → The Consumer Market 8.​ The difference between demographics, geographics, psychographics  -​ Demographics → the study of obvious characteristics that categorize people (age, gender, family life cycle, income, ethnicity & culture) -​ Geographics → categorizes people based on where they live -​ Psychographics → a system for measuring consumers’ beliefs, opinions, and interests (profiles customers according to their religious beliefs, tastes in music, lifestyles, attitudes, personality traits, psychological factors) 9.​ How to use demographics, psychographics, geographics -​ “How does this product appeal to the customer through demographics, psychographics, geographics?” 10.​Motivational theories (Thorndike, Maslow) -​ Consumers are motivated to buy products that produce positive events and avoid products that produce negative events -​ Hierarchy of needs (least to most important) → self actualization, esteem needs, affiliation needs, safety & security needs, physiological needs Chapter 3: The Competitive Market 3.1 → Competition in a Free Market 11.​ What is a free market society -​ An economic system where the prices of goods and services are determined by supply and demand expressed by sellers and buyers with little or no government control. 12.​Difference between direct and indirect competition -​ Direct competition → products in the same product category which are very similar are in direct competition (i.e. Colossus and AMC or Coke and Pepsi) -​ Indirect competition → products that are not in the same product category which are not directly related to each other (i.e. Colossus and Wonderland or Coke and Pizza Pizza) 3.2 → Competitive Advantages 13.​ What is a sustainable and non-sustainable competitive advantage -​ SCA → a USP, lowering production costs, servicing a niche market, creating customer loyalty -​ Non-SCA → promotion, placement, quality, benefits of use, price, design features 14.​What are the differences between the two -​ SCA → can’t be replicated by competitors -​ Non-SCA → can be replicated by competitors 3.3 → Service Competition 15.​Competitive advantages in a service industry -​ Convenience, degree of service, selection, reputation, price 16.​What is a value added service and examples  -​ An activity performed to support the sale of a product or other service 3.6 → Competing in International Markets 17.​ Know what a tariff is -​ Taxes on imports and exports between countries Chapter 4: Marketing Research 4.1 → What is Marketing Research? 18.​Why is marketing research useful -​ Useful for developing a marketing strategy or solving a marketing problem 4.2 → Gathering Secondary Data 19.​What is secondary research -​ Gathering information that has been collected and published by others 4.3 → Gathering Primary Data 20.​ What is primary research -​ Raw & unanalyzed, current information collected by a researcher for a specific purpose, data businesses gather themselves 21.​ The difference between qualitative and quantitative research -​ Qualitative → people’s reactions, responses, or feelings towards a given subject or problem Language-based, emotional -​ Quantitative → surveying a representative sample of a target market population Numbers-based, measurable 22.​ What is a open-ended question, a closed-ended question, and test market survey -​ Closed-ended questions → provided responses, are easy to answer and to score, usually multiple choice -​ Open-ended questions → require the respondent to develop their own answers, difficult to analyze and score -​ Test market survey → a method of testing a new marketing campaign, product, or service in a limited release before introducing it to your wider market Chapter 5: Product Development 5.1 → Marketing and Product Development 23.​ What is a feasibility study -​ A study to determine if a business opportunity is possible, practical, viable  24.​ The two questions a production & design team and the marketing team needs to ask -​ Can we produce it? Can we sell it? 5.2 → Invention or Innovation? 25.​ The difference between an invention and an innovation -​ Inventions → new devices, methods, or processes developed from study and experimentation -​ Innovations → products that use new technology, items, or processes to change the methods used to produce products, or to change the ways used to distribute them 5.3 → The Stages of Product Development 26.​ Know the stages of development -​ Idea generation, idea screening, concept development, market strategy, feasibility study, product design, test marketing, market entry 5.4 → Product Development and the Marketing Concept 27.​ What is a cost-benefit analysis -​ A systemized approach used to assess the advantages and disadvantages associated with a particular decision, project, or policy Chapter 6: Positioning and Branding 6.2 → Positioning 28.​ Different types of positioning -​ Benefit, target, price, distribution, service 6.4 → Branding 29.​ The difference between corporate and product dominant brand names -​ Corporate-dominant → include the manufacturing company in the brand name or as the name of the product (i.e. Roots, Coca Cola) -​ Product-dominate → name is not associated with the manufacturing company that makes the product (i.e. Acura, Häagen Dazs) 6.5 → Brand Strategies 30.​ What are the different brand strategies? -​ Support for an existing brand, development of a brand extension, licensing a successful brand, co-branding. acquisition of a successful brand 31.​ What is co-branding and its benefit  -​ When two or more brands combine and cooperate for their mutual benefit 6.7 → Packaging 32.​ Why do we need and use packaging -​ Purpose → protection and preservation, promotion, consolidation, brand identification, information -​ Factors → change in the product, competition, tradition, improvements in packaging, convenience Chapter 7: Pricing 7.1 → Determining the Price 33.​ What you need to know when calculating the break-even price -​ BEP → The number of units that a business must sell at a given price to cover its costs -​ Needed → variable costs, fixed costs, and gross profit 34.​ How to calculate the break-even point of a product -​ BEP = fixed cost/gross profit 35.​ What is a variable and fixed cost -​ Variable cost → directly dependent on the quantity of goods sold or services rendered -​ Fixed cost → constant, independent of sales or other variables 36.​ What is double ticketing and price fixing -​ Double ticketin → placing 2 prices on the same product and charging the higher price -​ Price fixing → business are not allowed to decide as a group as what to charge for a specific product Chapter 9: Advertising Promotion, and Sales 9.4 → Types of Media 37.​ Know the 8 types of media -​ Books, print, recordings, radio, movies, television, internet, out-of-home -​ AIDA 38.​Know one advantage and one disadvantage of each media -​ 9.6 → Sales Promotion 39.​ What are the different types of sales promotions -​ Contests & sweepstakes, refunds & rebates, coupons, premiums & self-liquidators, samples, special sales, point-of-purchase displays