BUS 113 MARKETING INSTITUTIONS Fall 2011 QUIZ I - Guide

Date: Time: Format: Grade: Must bring: May bring: Not allowed: Electronics:

Monday 10/24 4pm to 5pm 25 multiple choice questions (closed book) 100 points (10% of the course grade) Scantron and pencil (pen) Basic calculator (without capabilities for communication or data storage) By the way, Staples has basic calculators for $7 The quiz is closed book: no course materials (lectures, textbook, notes, etc.) Should be off and out of view and stored away (i.e., you shall not have any electronic gadgets in your pockets) including computers, tablets, cell phones, smart phones, ipod, etc. etc. Except the basic calculator as defined above.

The quiz I will cover: Lectures 1 to 5 Cases: Z Corp and Avon.com (class discussions) Analytical Tools: o Break-Even Review (make sure you understand well the 7 examples) o Margin Calculations Review o Market Size and Market Share Textbook: Chapter 1 to 7 and 9 Make sure you are comfortable with the following topics: Lecture 1: Definition of distribution (a marketing channel) The role of distribution in the Four Ps of Marketing The role of distribution in the economy Lecture 2 (textbook chapters 1, 2, 3 for more details and examples) The concept of the End-User Interface Channel Structure and Design Key service outputs of a Channel (aka: SOD/SOS) o Information: properties, types of information o Logistics: properties, types of logistics Channel costs The concept of the Ideal Channel Structure Channel service equilibrium A simple framework and the heuristic for ideal channel structure Implications for Channel Selection o Examples for commercial airplanes, groceries, new electronics and commodities o Clicker Exercises #5 and #6

Lecture 3 (textbook chapters 4 and 5 for more details and examples) Multiple channel systems and segmentation in Demand for Channel of Services (SODs) The multichannel problem Types of Conflict (horizontal and vertical) Sources of multiple channel problems Phases from problem to conflict Framework: conflict level x source of current potential profit/volume Steps to Managing Conflict o Target different segments o Improve channel economics o Act (or back off) Gray markets Lecture 4 (textbook chapters 6 and 7 for more details and examples) Distribution Intensity o The basic question and trade-offs between reseller support and availability (coverage) o The 3 classic alternatives o Quantitative approach o Classifications of goods and classification of stores o Implied distribution intensity Power and Conflict o Balancing power and control o The attributes of the ideal reseller o Control programs o Power in the channel (definition, properties) o The power-control equilibrium framework o Sources of power (social science approach and HBS approach) o Social science 5 types of power (reward, coercive, legitimate, referent and expert) o HBS approach: parts I, II and III o Vertical conflict (concept, key sources) Lecture 5 (textbook chapters 9 for more details and examples) Structure vs Vertical Integration (ownership) Transaction cost theory (conditions in which the market fails) The findings of the empirical study by Erin Anderson Reasons to why vertical integrate Clicker Questions 1, 2 and 3 Example from HP Imaging System Division Partial vertical integration Z Corp Case and Avon.com: Review the class discussion notes Analytical Tools Break-Even Review Margin Calculations Review Market Size and Market Share Should understand concepts, equations (formulas), examples and questions