Study guide for Final Exam:

IBM 301
Principles of Marketing Management

This exam will cover everything you learned right after the midterm exam.
You are responsible for all chapters assigned and all the class materials covered
including inclass activities, videos watched, examples, etc.
Bring your own scantran (Form NO. 882-E), #2 pencil(s), and calculator (if you
need).
No blue book is needed; all questions will be multiple choice.
Following are some examples of the topics that are important in your learning.

Products
Definition of product & total product concept
Four distinctive features of service product
Types of consumer products
Product items, lines, and mixes: definitions.
Product lines and product mix management
Rationale for deepening assortment in product line
Rationale for widening variety in product mix.
Brand Development
Line extension, brand extension, multibrands, new brands
New product development process
PLC (Product Life Cycle)
Be familiar with the implications of PLC.
o Appropriate product management strategies for each stage of PLC
o Strategies to prevent decline phase
Adoption and diffusion of Innovation (new products)
Be familiar with the characteristics of different categories of adopters.
Factors influencing adoption rate
Explain marketing strategies in terms of 4ps as products move through product
life cycle.
PenAgain case article posted on the BB
o Wal-Mart uses several criteria in selecting products to bring in to its stores
for resale to its final customers consumers. List and explain those
criteria as many as possible. You must mention at least three of them.
o Describe in short PenAgains marketing process from the inception to the
time it obtained Wal-Mart account. In your description, cover all 4 Ps of
marketing mix.
o List all the distributors/outlets that sell PenAgains products. Would WalMart be a good choice as one of PenAgains distributors? Why or why
not? (Clearly articulate your argument).

Price
Types of pricing objectives: profitabilityincluding pricing objectives for notfor-profit organizations
Price determination in practice including
o cost-plus method,
o breakeven analysis,
o yield management, and
o customary pricing.
Know how to determine selling price with a desired level of markup
o sp = Cost / (1 Markup%)
Know how to determine markup% and markdown%
o markup% = (SP Cost) / SP
o markdown% = (Initial SP final SP) / Initial SP
Know how to calculate break-even point (with or without target return) in terms
of unit and dollars
o BEP (unit)
o BEP (Dollar)
Price, quality, value, and perceived value
Perceived value pricing
Three basic pricing strategies: penetration, skimming, and competitive
All the additional pricing strategies
Revisit PenAgain case. 1) Discuss the pricing strategies including the companys
pricing objectives. (in your discussion, you should mention the appropriate
terminology to refer to the companys pricing strategies. If PenAgain used
multiple strategies, list them and tell me why you think so. 2) Do you think the
strategies are good? Why or why not? What would you recommend?
Place (channels of distribution)
Define distribution, intermediaries: Merchants (wholesalers, retailers) and
agents/brokers.
o How do they differ?
o What is the major difference between merchants and agents/borkers?
Types of channels
o Consumer products channel
o Business products channel
Factors affecting channel choice
o Market factors; product factors; producer factors
levels of distribution intensity: goals and appropriate products
o intensive, selective, exclusive distribution.
Different legal issues in distribution
Types of channel conflicts and resolution methods

Recall the video(s) you saw about Wal-Mart. 1) Explain why big general
merchandisers have become so powerful. 2) Compare powers between retailers
and manufacturers during production era and marketing era.

Distributive Institutions (Wholesalers and Retailers)

Know various ways that retailers can be classified.
Be familiar with the various types of retailers and their characteristics
Different types of discount stores
Different types of non-store retailing
Understand retailing strategic planning: target marketing definition and six ps of
retailing mix.
Retail atmospherics: examples?
Wheel of retailing
How can a retailer have sustainable competitive advantages over its competitors?
Provide several ways in which they can have such a long term advantages.
Integrated Marketing Communications
(I might use the words, communication and promotion interchangeably
below)
Definition and purpose of IMC (Integrated Marketing Communications)
Elements of Communication/promotion mix?
1. Advertising
2. Personal selling
3. Sales promotions
4. Publicity/P.R.
5. Direct marketing
Know the characteristics of the communication mixes: advertising, personal
selling, sales promotions, publicity/P.R.
Understand the basic communication process and factors that block or facilitate
communications
What is AIDA and which communication mix is effective for each stage?
Factors affecting promotional mix
1. Product related factor: e.g., PLC
2. Market related factors: e.g., target market characteristics
3. Firm related factors: e.g., push vs. pull strategies
1) What is the hierarchy of advertising effects model? What are the steps
involved? 2) What is its implication on IMC (Integrated Marketing
Communication)? 3) How does the model help marketers identify problems, set
appropriate objectives, and measure results?
Advertising and PR
The effects of advertising
Understand the major types of advertising: product advertising vs. institutional
advertising

Understand steps in creating advertising campaign thoroughly: determining the

campaign objective
Media scheduling
Know the definitions of factors influencing media mix decisions: CPM, reach,
frequency.
Know how to calculate CPM and be able to calculate increase in break-even sales
amount given an additional advertising cost and contribution margin %.
1) What are the roles/objectives of Integrated Marketing Communications? List at
least five of them and 2) explain how IMC can achieve the objectives?

Sales Promotion and Personal Selling

Tools for consumer sales promotion
Tools for trade sales promotion
Characteristics of sales professionalism
Qualifications of good salespeople
Know when personal selling is more important compared with advertising and
sales promotion
characteristic of relationship personal selling
Thoroughly understand the steps you need to take in succession for the sales
process
Comprehensive question
How can a company create value for its customers? In formulating your answer,
draw from all the knowledge you learned throughout the entire quarter.