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MGT 103 Marketing Eberhard Final Exam Questions and Answers
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MGT 103 Marketing Eberhard Final Exam Questions and Answers
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MGT 103 Marketing Eberhard Final ExamQuestions and Answers
Lecture 11 - Answers -Mon Nov 5
The "path" to promotional materials/message - Answers -Product/service concept
Product/service design
Market Analysis
Market Research (primary)
SWOT
Positioning Statement
Launch Plan
Launch plan includes - Answers -Promotional materials & message:
Product color/design/logo
Product message
Product advertising (print/social m)
Product "sales" materials
Product packaging/inserts
Product "spend" (media, sales force)
Mettle - Answers -A person's ability to cope with difficulties or to face a demanding
situation in a spirited and resilient way
The Sales Message - Answers -I Opener
II Fact Finding/Questions
III FAB (Feature/Advantage/Benefit) - The Message
IV Handling Objections
V Close/Commitment
Making the Sales Call III - Answers -Presentation (body) of Product/Service (FAB)
1. Customize based upon your learnings, but
2. Trust the "flow" of the sales piece (tested)
3. Use visuals (always)
4. Features/Advantages/Benefits (FAB)
- creating value in minds of customer (remember - people love to buy, but hate to be
"sold")
Feature/Advantage/Benefit (FAB) - Answers -Creating value in the mind of your
customer
,Feature (Fact): What the product does.
Advantage (So what?): How is it different/better?
Benefit: What this means for you. Don't sell on price, sell on value/benefit.
Professional salesperson - Answers -will be in a conversation where you don't even
know there's a sale going on. Listen and fabricate and create values for them.
prof: didn't buy a tesla for green emissions, he bought it cause that's where the world's
going.
Management Case Study #1: Brook Lodge, MI - Answers -1993 Health Care Reform
- Hillary Clinton appointed chiar, Health Care reform (bill clinton was president)
Prof: Upjohn Co. charged him with pulling together educational summit. Get info in 10
days and come back.
Management Case Study #1: Brook Lodge, MI p2 - Answers -Who do we bring?
Keynote speaker- lead MD to Ms. Clinton's task force.
Most important physicians in the country. Pay them, educate them. Cover a very
controversial topic.
Management Case Study #1: Brook Lodge, MI p3 - Answers -She said: there are
different levels of healthcare, decided by where you trained.
What's distasteful: foreign physicians flooding into America and treating Americans with
mediocre education.
50% of the audience is foreign...
grumbling.
Boss tells prof that he needs to tell her that she made a mistake and must apologize.
She has two words: screw you.
Management Case Study #1: Brook Lodge, MI p4 - Answers -Do you align with the lead
MD (who knows Hillary Clinton and could make bad things happen to us?), or with the
customers?
*THE CUSTOMERS*
Lecture 12 - Answers -Wed Nov 7
Pricing - Answers -Regardless of the factors involved, the price of a product or service
must *cover the costs* of the product/service as well as *earn a reasonable profit*
New Product-line extension
The CEO could ask for: - Answers -- Price as an indicator of value.
- Value pricing.
,- Profit equation.
- Pricing objectives.
- Pricing constraints.
- Estimating demand.
- The demand curve.
- Marginal revenue curves.
- Elastic demand.
- Marginal analysis and profit maximization.
The CEO will most likely ask for - Answers -- *What is your recommended price?*
- *What is your sales forecast (years 1-3)?*
- *Percent (%) confidence in your sales forecast?*
The CEO will most likely ask for, p2 - Answers -- How did you arrive at this price?
- What (and when) is our profit?
- What are our cost of goods?
- How much (Marketing) spend will it take for us to - achieve these financial objectives?
- How many units (iWatches) will we "move"?
- Any increase in capital costs (to make)?
vote with your feet - Answers -to leave a place or an organization because you do not
like something about it.
If it doesn't work?
1) Keep walking
2) Put your tail between your legs and inch back in.
Price - Answers -what product/service is listed at.
Cost - Answers -price paid for product/service.
Value - Answers -Value = (Perceived Benefits) / Price
the ratio of perceived benefits to price (demand driven factor(s) which can dramatically
increase the price/cost equation).
Pricing: 3 Models - Answers -Products:
1) Target Cost pricing
2) Cost Plus pricing
Services:
1) Time & Material pricing
Target Cost pricing - Answers -- products that are not easily differentiated ("me-too"
products).
- the "market" determines the price (range).
, - many competitors. you are NOT 1st to market (e.g. fast-food lunch meal deal).
- in order to make a profit, you must make your product "fit" into the (set) pricing
structure.
5 dollar meal deals at fast food places
Cost Plus pricing - Answers -- New or novel (unique) product.
- You (not the market) set the price.
- Typically, the market leader.
- Examples: Tesla, iPhone, Rolex
Maintaining Market leadership (with cost plus pricing) - Answers -- In order to maintain
market leadership AND healthy profit margins, you must:
1. innovate (newer/better)
2. uphold premium brand image
Time & Material pricing - Answers -- Due to variability in time and material, pricing is
determined by amount of each provided to specific customer.
- examples: accounting, law, engineering, transportation services (Uber, SWA), hotels,
entertainment, medical services.
Motel 6 vs. Halfmoon Bay
Value examples - Answers -Gramercy Tavern
Abraham Lincoln charcoal sketch drawing
Profit - Answers -Total Revenue - Total Cost
= (Unit price x Quantity sold) - (Fixed cost + Variable cost)
Profit Example: Shoe Store - Answers -Unit price of $100.00 per pair of shoes
1,000 shoes sold
Fixed costs of $25,000 (e.g. rent, insurance)
Variable costs:
COGs (cost of goods) $30,000
Labor costs $25,000
Profit? $20,000
Profit = Total revenue - Total costs
(unit price x quantity sold) - (fixed + variable costs)
Sales Forecasting - Answers -the process for *estimating future sales.* It is based upon
any individual or combination of the following:
1. Past sales data
2. Industry-wide comparisons
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