MKT201 Final Exam Study Guide PDF

MKT201: Final Exam Study Guide 6 essay questions. Bring a calculator. Chapter 12: Marketing Channels Value Delivery Network: Supply Chain & Marketing Chain ○ Value Delivery Network: Part of a supply chain of a company. Includes all direct participants involved in pr...

MKT201: Final Exam Study Guide 6 essay questions. Bring a calculator. Chapter 12: Marketing Channels Value Delivery Network: Supply Chain & Marketing Chain ○ Value Delivery Network: Part of a supply chain of a company. Includes all direct participants involved in production, distribution, marketing, customer service, etc. ○ Supply Chain: Network of individuals and companies involved in creating a product and delivering it to the customer. ○ Marketing Chain: Stages that a product goes through before it reaches the consumer. Production, Wholesale/Distribution, Retailing, Promotion, and Consumption. Direct, Indirect, and Multichannel ○ Direct: Sells directly to consumers. Example: Fenty Beauty sells directly to customers on their website ○ Indirect: Contains one or more intermediaries, such as wholesalers and retailers. ○ Multichannel: Allows you to reach customers across multiple platforms and channels, online and offline. Helps a company establish a consistent presence. Intermediaries ○ Used in indirect marketing, helps companies sell their products through a third party. Example: Sephora for Fenty Beauty and Rare Beauty. ○ Transactional: Customers buy and sell products and services. ○ Logistical: Involves gathering, storing, sorting, and transporting products for and to customers. ○ Facilitating: Makes transactions easier for buyers through financing, grading, and marketing information and research. Distributors, Dealers, Wholesalers, Retailers ○ Dealers: Intermediaries between manufacturers/wholesalers/distributors and consumers. ○ Wholesalers/Distributors: Manage the bulk distribution to retailers ○ Retailers: Sell the product directly to consumers through physical stores, online websites, websites. Channel Mark-Up, Price Escalation ○ The price added to the final cost of a product at each stage of its distribution through intermediaries. Used to cover the cost of doing business. Chapter 13: Retailing and Wholesaling Importance and function of retailers ○ Types of Retailers: Department stores, supermarkets, discount stores, convenience stores, specialty stores, E-Commerce websites, direct-to-consumer Changing retail landscapes ○ Because of the amount of retail sales happening online, many physical stores have had to shut down. Covid-19 made this phenomenon worse. Omni channel retailing, online, mobile, and SM channels  ○ Provides an integrated customer experience across all channels and touchpoints. Allows customers to have a consistent experience, no matter where they shop. Trends in retail - Omni channel, use of AI and technology Classifying retailers ○ Form of ownership: corporate chain, independent ownership, contractual arrangements ○ Service level: self service, limited service, full service ○ Types of merchandise line: limited/specialty stores, general merchandising, scrambled merchandising. Chapter 10: Pricing Concepts, Strategies Value and price, concepts, terms ○ List price: price without discounts or sales ○ Discounted price ○ Dynamic pricing: prices fluctuate based on real-life demand, competition, or other factors. ○ Penetration pricing: initially offered at a low price to undercut competitors and gain customers. ○ Skimming Pricing: when introducing a new product, setting the highest initial price that customers who truly desire the product are willing to pay. Lowering price over time. Total cost, fixed cost, variable cost, unit contribution ○ Total cost: complete cost incurred by producing and selling something. ○ Fixed costs: don’t change with the production of goods or services ○ Variable costs: change with the level of production ○ Total Costs = Fixed Costs + Variable Costs ○ Unit contribution: amount of revenue made per item sold after covering variable costs. Break Even Analysis for units, profit, and pricing ○ BEP = Fixed Cost(s) / Contribution Margin Per Unit Common Pricing Strategies ○ Standard markup pricing: add a fixed percentage to the cost of all items within a specific product class. Example: 10% off everything in the tech department. Covers all store expenses, pays for overhead costs, contributes to profit ○ Cost-plus pricing: summing the total unit cost of providing a product/service and adding a specific amount to the cost to arrive at a price. Cost-plus percentage-of-cost pricing: adding a fixed percentage of the total unit cost, is often used to price one or few-of-a-kind items Cost-plus fixed-fee pricing: supplier is reimbursed for all costs, allowed a fixed fee as profit that is independent of the final cost of the project. Customer value-based (Customer), Cost-based (Company), and competition-based (Market) ○ Customer value-based: price is set based off perceived value from customers ○ Cost-based: price is chosen based off the cost of production ○ Competition-based: price is set based off the prices of competitors Psychological, odd-even, prestige, bundled ○ Psychological pricing: has a psychological impact on customers, makes customers believe that prices are lower than they actually are.  ○ Odd-even pricing: $9.99 instead of $10. Influences consumers and buying behavior, affects how value is perceived. ○ Premium pricing: setting a high price to reflect high quality or exclusiveness. ○ Bundle pricing: selling multiple products together at a reduced price compared to buying items individually. Chapter 11: New Product Pricing Price elasticity, elastic and inelastic market ○ Price elasticity: refers to the quantity demanded when a product changes its price. ○ Elastic: A small price change results in a larger change in quantity demanded. Example: If the newest Apple phone was on sale for $200 off, there would be a significant increase in demand. ○ Inelastic: Change in price doesn’t affect how much quantity is demanded. Often, the product is a necessity. Marketing Metrics Inventory/Stock turnover ○ Inventory Turnover: Measures how efficiently a company uses its inventory by calculating how many times inventory is sold and replaced in a time period. Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory Same store growth, sales per sq. feet