MKT 667 Marketing Management
Exam 1 Review Spring 2014
1. Describe the marketing concept. How does it relate to our discussion of market orientation?
Discuss how the evolution of the concept arrived at relationship marketing.
Management philosophy: a firm's goals can be best achieved through identification and
satisfaction of the customers’ needs and wants.
Selling production orientation: Primarily focusing on the selling and promotion of the product
Market orientation: Focusing on discovering and meeting the needs and desires of its customer
thru its product mix
Relationship Marketing: marketing designed to get customer loyalty, interaction and long-term
engagement (strong connection with customer buy providing them with information directly
suited to their needs and interests)
2. Describe and discuss the product-market growth matrix (aka alternative corporate growth
strategies). This framework contrasts two dimensions of corporate growth--be sure to
include these dimensions in your answer, as well as the four general strategies depicted in
the framework.
3. Describe the General Electric strategic planning grid. How is it applied? Describe a typical
type of decision for which such a model is used. List two other names it is known by.
Typical decision:
 Invest/grow (green)
 Selective investment/maintain position (yellow)
 Harvest/divest (red)
Two other names:
 GE Stoplight
 9-Cell Matrix
4. Define and describe the concept of the product life cycle. Discuss two implications for
marketing management for each stage in the life cycle. (Think of how decisions regarding
the marketing mix are affected by the PLC
1) Introduction:
a. Skimming: (high price) as much margin per unit as possible
b. penetration pricing: (low price) enables the firm to make a quick market
development possible in order to enter the large market
c. MM: Typically, promotion is relatively high in this stage
2) Growth:
a. Strategic marketing object is building market share
i. MM: Reducing the price where keeping distribution and promotion
high
b. Take-off point. sales revenues increase faster than costs
3) Maturity:
a. capture customers from their competitors by undercutting each other on
prices and increasing promotional efforts
b. As competitive rivalry intensifies, the weaker competitors are forced out of
the market known as the shake-out point.
c. MM: hold or reduce the price, intensive distribution, usually small promotion
4) Decline:
a. Harvesting: maximize the life of the product while generating the cash and
the time required to establish new products
b. slow decline of the product provides the firm with sufficient time to adjust to
the declining cash flow and to find alternative means of generating income
c. MM: reducing price and promotion with selective distribution
5. Describe the diffusion of innovations and how that concept relates to the product life cycle.
Be sure to include in your answer a discussion of the key characteristics contributing to
diffusion rate (i.e., fast versus slow diffusion)
Key Characteristics contributing to the diffusion rate:
 Complexity
 Compatibility
 Relative Advantage
 Observability
 Trialability (Testphase ?)
6. Discuss diffusion of innovations. Describe factors that contribute to faster or slower
diffusion. What are some of the ways marketers could use this concept?
Make the consumer aware of the relative advantages in terms of the key characteristics to get a
faster rate of adoption.
Adjust the product to the key key characteristics to get a faster rate of adoption.
Key Characteristics contributing to the diffusion rate:
 Complexity
 Compatibility
 Relative Advantage
 Observability
 Trialability (Testphase?)
7. Discuss the concept of multi-attribute attitude models. Sketch out such a model for
comparing three brands of smartphones, with appropriate attributes. Label the key parts of
the model. Calculate the overall scores on the model for the brands in the model. Discuss
three possible uses of such a model for the marketing managers of one of the brands. What
is the most common name for such models?
Possible uses:
Decision: shore up weak attributes, attack competitors rating, add an attribute which you excel
Common name: Fishbein Model
8. Describe and discuss the buy-class model. What value can marketers gain from
understanding it?
a. Straight re-buy: rebuying products being bought many times before
b. Modified re-buy: needs remain unchanged, but the buyer wants a better price,
product or service
c. New-task buying: new and unique need
On the different stages there are different needs for information and higher involvement of
the buyers
9. Define and discuss the concept of an organizational buying center. Be sure to include the
important roles often featured in such a buying approach.
For high value purchases several people from different departments participate in the
process. This is called Buying center and participants share knowledge and information
relevant to the decision to make.
Users: User of the product
Influencer: provide information about alternative products and supplies
Gatekeeper: control the flow of information in the purchasing process
Buyers: authority to contact suppliers and to negotiate
Deciders: person who makes the final decision
10. Define, describe, and discuss primary data and secondary data relative to the practice of
marketing research.
 Easier to use secondary data, as a first step try to use secondary data
 But for a good marketing research you should use primary data due to known source and
current of the data
a. Primary data: (first hand data gathered by the researcher himself)
i. Advantages:
1. Answer specific questions
2. Current
3. Known source
ii. Disadvantages:
1. Time consuming
2. expensive
b. Secondary data: (data that has already been collected)
i. Advantage:
1. Rapid availability
2. Inexpensive
3. May give a good overview
ii. Disadvantages:
1. Often doesn’t provide a sufficient answer
2. Quality of data sometimes difficult to determine
11. Describe the segmentation process, including the steps of segmentation, target marketing,
and positioning, and the purposes of each step.
a. Segmentation: dividing the market in different segments based on demographics and
analyze them
i. Helps to aggregate the purchasing power of the different segments
b. Target marketing: picking out segments you want to go after
c. Positioning: designing a marketing mix to attack the selected segments
i. At least one P of the MM has to be different for each segment
25-38 MC + 3 Essay Questions