Planning & Economics
Stakeholder vs Shareholder
Shareholders own a piece of the company and they focus on financial returns
Stakeholders are a broader group affected by or interested in the company's actions (customers, employees, suppliers, etc.)
True or False: Marketing is the same thing as advertising
FALSE!
What is the difference between cost and price?
the costs of goods is the expense of materials and labor for making products, whereas the price is what it given up in exchange to acquire a good or service
What is brand equity?
Brand equity is the value of the brand name and associated symbols
Why did Segway fail?
they didn’t know who their target market was, and the Segway was an invention for a problem that didn’t exist (aka not an innovation)
What is the term for a customer’s evaluation of the benefits and costs of a marketing offer relative to those of competing offers?
Customer Perceived Value
What is a product line? Give an example.
a group of products that are physically similar or intended for a similar market, example: Apple’s iPhone line
What are the four stages of the Product Life Cycle?
(1) Introduction
(2) Growth
(3) Maturity
(4) Decline
What did Adam Smith believe?
freedom was vital to any company’s survival, freedom to own land or property and the right to keep the profits of a business is essential, people will work hard if they believe they will be rewarded
What is B2C? Give an example.
all the individuals or households that want goods and services for personal use and have the resources to buy them, examples: Netflix, Nike, McDonald’s
What is a product mix? Give an example.
a combination of all product lines offered by a manufacturer or service provider, example: Proctor & Gamble
What stage of the Product Life Cycle do you differentiate the product to satisfy different market segments?
Maturity
Who determines what goods and services are produced, who gets them, and how the economy will grow in a Free-Market Economy?
the MARKET
What is B2B? Give an example.
individuals and organizations that buy goods and services to use in production or to sell, rent, or supply to others, examples: wholesalers, service providers
What equation do you use to find the break-even point?
BE = (fixed costs) / (price-variable cost per unit)
What are marketing intermediaries?
organizations that assist in moving goods and services from businesses to businesses (B2B) and from businesses to consumers (B2C)
Give an example for each degree of competition (perfect competition, monopolistic competition, oligopoly, monopoly)
Perfect: farmers markets
Monopolistic: companies that sell athletic clothing
Oligopoly: the soda industry
Monopoly: Standard Oil (an oil company from many years ago that has since been broken up)
How would you market to Millennials vs Gen Z?
Millennials: inbound marketing from ‘experts’ & authenticity
Gen Z: build a community, establish clear values, be transparent & accountable
Total fixed costs are $100,000. The product sells for $100. The variable cost per unit is $70. How many units do you have to sell to break even?
(100,000) / (100-70) = ~3,333
Explain what these channels of distribution do: Agents & Brokers, Wholesalers, Retailers
Agents & Brokers: intermediaries who bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods
Wholesaler: an intermediary that sells product to other firms such as retailers, manufacturers, and hospitals
Retailer: firm that sells products to customers