Marketing II Final Exam Review Sheet
BUSINESS PLAN UNIT – Chapter 35
*Know the sections of the business plan, what is in each section, & why each section is required
I. Description & analysis of the proposed business situation
A. Type of Business
B. Business Philosophy
C. Description of good or service
D. Self-analysis
1. Education and training
2. Strengths & Weaknesses
3. Plan for personal development
E. Trading area analysis
1. Geographic, demographic, and economic data
Geographic: includes population...
Demographic:
Economic Factors
2. Competition
F. Marketing segment analysis
1. Target market
2. Customer buying behavior
G. Analysis of potential location
II. Organization and marketing plan.
1. Type of ownership
2. Steps in establishing business
3. Personnel needs
B. Proposed good/service
1. Manufacturing plans and inventory policies
2. Suppliers
C. Proposed Marketing Plan
1. Pricing policies
2. Promotional activities
Ill. Financial Plan
A. Sources of capital
*Know the 6 C's of Credit
*Know the difference between (and characteristics of) sole proprietorship, partnership, limited
partnership, general partnership, and corporation
*Know ways that companies test the effectiveness of their marketing/advertisements.
Concept testing – aka pre testing, are generally exploratory using headlines, rough layouts or
storyboards. Typically uses qualitative research techniques including focus groups or depth interviews
to gain insight into effective ad concepts, identify problems or issues or to generate new ad concept.
Copy testing – evaluates different executions of an advertising campaign using finished (or close to
finished) ad executions. Copy testing typically employs quantitative research techniques including
surveys to measure recall or recognitions. Larger sample sizes can provide a level of statistical validity
decisions that may be important with larger investments.
*Know at least 2 reasons why you need to write a business plan when starting a new business
*Know a variety of promotion techniques
*Know what an organizational chart shows and what details need to be included on it.
MARKETING RESEARCH UNIT – chapter 28
Know the 4 P's of marketing.
7 functions of marketing: Selling, Marketing Information Management, Financing, Pricing, Promotion,
Product/Service Management, Distribution
4 P's of Marketing:
1. Product:
2. Place:
3. Price:
4. Promotion:
*Know various techniques companies can use to gather information about their target market.
*What elements should be included in your survey?
*What are the different types of questions that you can include in your survey?
*What can you do to increase the percent of people who return your survey?
*Know the 4 types of marketing research and be able to give an example of each;
1.
2.
3.
4.
Attitude Research
Market Research
Media Research
Product Research
*Know the 5 steps in the marketing research process, and what is done in each step
*what are the characteristics of secondary and primary data? What are the advantages and
disadvantages of each?
*Know 3 things a questionnaire should be in order to be useful.
BUSINESS FINANCES UNIT – Lesson 36.1, 36.2
*Why do banks care about a business owner's personal finances? *including your tax returns and credit
*Know examples of personal assets and personal liabilities
*Know what a liquid asset and why banks want to see that you have liquid assets
*What fees are part of business start-up costs? (one time costs)
*Know the 3 major financial statements that businesses must produce each year, and what each one
shows.
1. Income Statement
*What are the 3 major parts
*Know how to write an income statement heading
*Know what the bottom line of the income statement shows
*Know the formula used in an income statement
*Know the formula to determine the COGS for a company when given information
2. Balance Sheet
*What are the 3 parts of a balance sheet?
*Know the formula used in a balance sheet
*Know how to write a balance sheet heading
*Know the difference between long term assets and current assets
Find the total assets for the following company:
Total cash
Total Current Assets
Total Long Term Assets
Total current bank loans
$25,000
$50,000
$100,000
$150,000
*Know the difference between long term liabilities and current liabilities
*Know what is included in equity
3. Cash Flow Statement
*What does the Cash Flow Statement record?
*What is not included in the statement?
*What are the 3 components of the cash flow statement?
*Why is the cash flow statement important?
It helps determine how the company’s operations are running, where money is coming in, how money is
being spent.
*Explain the 4 step process that cash flows through a business
Financial Ratios
*Know the following:
*current ratio*Return on Equity
*Net Profit Margin
*Debt –Equity Ratio
*Is a lower or higher debt to equity ratio better? Why?
MANAGEMENT FUNCTIONS/STRUCTURE UNIT – Chapter 11
*Know each of the 3 management functions and their characteristics.
*Planning
*Organizing
*controlling
*What do managers do?
*Know the effective management techniques
*Employee motivation
*Assessing employee performance
*Vertical organization
*Horizontal Organization
PRODUCT PLANNING & DEVELOPMENT UNIT – Chapter 30
*Know the product life cycle (and characteristics of each step), and be able to draw it.
* Introduction
*Growth
*Maturity *Saturation & Decline –
Know the definitions of the following:
*Product Mix
* Product Planning –
*product Line –
*product Width –
*product Depth
*PRODUCT PLANNING
**The decisions relate to product features, such as packaging, labeling, and branding, as well as the
services, such as product warranties, necessary to support the product.
**product planning allows a business to coordinate existing products and features offered to customers,
add new products, and features offered to customers, add new products, and delete products that no
longer appeal to customers.
*What are the stages of new product development?
1. Generating Ideas
Involves tracking cultural trends and observing customer behaviors to generate ideas
2. Screening Ideas
Ideas for new products are screened and evaluated.
Some ideas are eliminated while the best ideas are put through further evaluation.
3. Developing a business proposal
Once a product makes it through the screening process it is evaluated in terms of its profit potential.
**The business proposal is developed to evaluate the new product in terms of the size of the market,
potential sales, costs, profit potential, technological trends, overall competitive environment, and level
of risk.
4. Developing the product
During the development stage, a prototype is made. The prototype is tested and adjustments are made
to improve the final product.
*During this time evaluations are made to see if the company can produce the new product and if it is
practical to do so.
This is the time when products are tested to see if they will hold up during normal AND not normal use
by the customer.
MILLIONS of DOLLARS can be spent at this stage of development for testing, prototypes, and research.
Prototype: is a model of the product
This part can be very long especially in fields where the government requires extensive testing
(prescription drugs, genetically engineered food products)
5. Testing the product
Newly developed products are test marketed to obtain customers' responses
After it is tested in the lab ... consumer acceptance of the product is the next step.
6. Introducing the product (commercialization) If customer response is favorable, the product is
introduced into the marketplace
Once a new product has been research successfully ... it is ready to be introduced to the full market
This is also called COMMERCIALIZATION
The costs of introducing a new product are often quite high
The product must be advertised to introduce its benefits to consumers
The first company to introduce a new product has an advantage in acquiring customers and building
brand loyalty.
7. Evaluating customer acceptance
After the product has been introduced, marketers track customer acceptance. After products have been
introduce, marketers track new product performance
This step is done to evaluate customer acceptance of the product and the marketing strategies used to
introduce the product.
One way to obtain customer responses is to study sales information.
*Be able to name and explain the 4 positioning strategies
*Product positioning –
1.
2.
3.
4.
Position by price and quality –
Position by features and benefits
Position in relation to the competition –
Position in relation to other products in a line
HUMAN RELATIONS UNIT – Chapter 10
*Know the definitions of the following vocabulary:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Assertive
Initiative
Tact
Empathy
Self-Control
Body language Goal setting
Time management Self- Esteem
Attitude
11.
12.
13.
14.
Time Management
Friendliness
Personal Ethics
Orderliness
*Be able to explain the importance of having the above mentioned personal traits when dealing with
others in
*Be able to create an example for each trait to explain its importance.
PROMOTIONAL CONCEPTS AND STRATEGIES – Chapter 17
*Know the types of promotion in the Promotion Mix
1.
2.
3.
4.
5.
6.
7.
Personal selling
Advertising
Direct marketing
Sales promotion
Public relations
News release
Publicity
*Know the types of sales promotion
1.
2.
3.
4.
5.
6.
Trade
Promotional allowance
Co-op advertising
Slotting allowance
Sales force promotions
Trade show and conventions
*Know the types of consumer promotions
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Coupons
Premiums
Deals
Incentives
Product samples
Sponsorships
Promotional tie-ins
Product placement
Loyalty marketing program
Point of purchase display
1. Personal Selling: A company employs sales representatives who generate and maintain
direct contact with prospects and customers – the most expensive to do
2.
-Example: women selling make up in department stores
3. Advertising: A form of non-personal promotions
4. Direct Marketing: A type of advertising directed to a targeted group of prospects and
customers rather than a mass audience
5.
-Example: direct mail catalogs
6. News Release: Announces newsworthy developments about the company’s products or
services, distribution channels, facilities and operations, partners, revenues and earnings,
employees, and events
7.
-Example: Burger King unwraps a new item
8. Publicity: Bringing news or newsworthy information about an organization to the public’s
attention
9.
-Example: company hosting a special event where money made goes toward a charity
10. Sales Promotion: All marketing activities – other than personal selling, advertising and
public relations – that are used to stimulate purchasing and sales
11.
-Example: a company handing out coupons to customers
12. Public Relations: Activities that help an organization influence a target audience
13.
-Example: sending press releases to various media outlets, so they can create a story
for them
14. Sponsorship: Programs which a sponsoring company pays a fee for the right to promote
itself and its products or services at or on a physical site, an event, a group, or a person
15. Promotional tie-ins: Sales promotional arrangements between one or more retailers or
manufacturers – also known as cross promotion and cross-selling campaign
16. Product Placement: A consumer promotion that involves using a brand-name product in a
movie, television shows, sporting event, or in a commercial for another product
17. Loyalty Marketing Program: Programs that reward customers for patronizing a particular
company
18. Point of Purchase Display: Displays designed primarily by manufacturer to hold and display
product
19. Consumer Promotion
20. Coupons: Certificates that entitle the customers to discounts on goods and services
21. Premiums: Low-cost items given to consumers for a discounted price or for free
22. Deals: Short term price reductions marked on the package or label
23. Incentives: Products earned or given away through contests, sweepstakes & rebates
24. Product Samples: Free trial size of a product sent through the mail, distributed door-todoor, or given away at retail stores/trade shows
25. Co-Op Advertising: A manufacturer supports the retailer by helping to pay for the cost of
advertising its product locally
26. Product Promotion: Convince prospects to select its products or services instead of a
competitor’s brands. Promotional activities explain the major features and benefits of the
product or service, identify where it is sold, advertise sales, answer customer questions, and
introduce new offerings
27. Institutional Promotion: Create a favorable image for a business, help it advocate for
change, or take a stand on trade or community issues. Also, it can help sales efforts.
28. Promotional Allowances: Cash payments or discounts given by manufactures to retailers
for performing activities to encourage sales
29. Trade Promotions: Sales promotion activities designed to get support from manufacturers,
wholesalers, and retailers
30. Slotting Allowance: Cash premium paid by a manufacturer to a retailer to help the retailer
cover the costs of placing the product on the shelves
31. Sales Force Promotions: Awards given to dealers and employees who successfully meet or
exceed a sales quota
32. Trade Show Conventions: Companies invest millions of dollars to showcase a particular
line of products