USC BUAD 307 Midterm 1 Complete Questions And
Answers
What are the seven building blocks of marketing? ANS 1.corporate image
2. positioning
3. product,
4 distribution,
5 promotion,
6 price,
7. marketing information systems
What are Marketing information systems? ANS system to collect, analyze, report take action on
information from marketplace
What is Corporate image? ANS image of organization, division, or individual; need to create,
protect, enhance this image
What is Positioning? ANS lock (group of people called target audience who have an unfilled
need for a type of product) & key (creating image of the product to fill this unfilled need)
What is Product in terms of the 7 building blocks? ANS goods/services developed to meet the
demands of market targets & to achieve goals of marketing plan
What is Price in terms of the 7 building blocks? ANS amount of money buyers are willing to pay
vs amount seller is willing to sell for
What is Distribution? ANS making it easy for buyers to buy your goods
What is Promotion? ANS communicate benefits of complete product to instil buying action
(complete product is not just product, it also contains the framework the product is created
in/distributed to)
,What is SWOT Analysis? ANS Do an internal evaluation of your Strengths and Weaknesses, and
an external evaluation of the Opportunities and Threats in the marketplace. Match your Strengths
with the Opportunities.
What does the universal marketing structure map say to include on an advertisement? ANS
headline, body text, close, photos/graphics, good format, signature
What does the UMS say about the headline? ANS should contain main points, unique benefit,
hook, name of company
What does the UMS say about the body text? ANS contains details, only 16% of people read this
section
What does the UMS say about the close? ANS solicit buying action, tie with headline, end
communication and contain marketing information system code to track user behavior
What does the UMS say about the photos/graphics? ANS help communicate main unique benefit,
visually compelling, make product look good, break up text into smaller pieces
What does the UMS say about the format? ANS make it easier for people to pick out and
remember main and unique benefits; let people get benefits without reading entire ad
What does the UMS say about the signature? ANS name, logo, slogan, to identify the
communication
What are the main elements of a marketing plan? ANS Goals: develop clear, measurable goals
that are challenging but doable to focus everyone
Strategies: to achieve goals that includes an integrated marketing mix comprised of the 7 building
blocks
Measures Performance: how well did you achieve the goals?
Take Corrective Action: make necessary changes
, What does the marketing plan structure contain? ANS Executive Summary
Need: convince sophisticated readers that there is a need for what you propose to do (the
opportunity)
Company mission to fill that need: (1) what you do, (2) target audience, (3) what makes you unique
Track Record and Current Situation: company history if already in business and current situation
including current product line
Definition of the market: by product, customer type, geography, industry, or any combination
Adjustments: market dynamics, increase share go to new market, raise money
Market Potential (with adjustments): size of market, frequency of purchase, weighted average price,
make sure fits minimum threshold criteria
Limiting Factors: determine factors that will prohibit you from getting entire potential, "bad news
section"
Goals and Objectives: sales, profits, market share - market potential (best), historic + percentage
method, number of employees
Marketing Strategies: achieve goals using an integrated mix of 7 building blocks
Sales Forecast/Breakeven/Marketing Budget
Futures/Conclusion: measure results against your goals and take corrective action if and when
necessary
What are the steps of the new product development system? ANS Idea Generation: generate as
many ideas as possible from both internal and external sources
Screen those ideas: usually 2 or 3 screens that screen out ideas that don't fit; screens = market
potential threshold, business plan compatibility, and feasibility
Develop Prototype: a product (good or service) is created
Market test: product is tested in a representative test market
New Product Introduction: those that pass are introduced as part of the product strategy in the market
plan
What do you look at in the old product elimination system? ANS Return on Investment: if the
product no longer generates a positive return on investment, it is a good candidate for elimination
Revenue Threshold: if the product no longer brings in the minimum, it is eliminated or sold to
another company
