Marketing Management Exam Review

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Formulas:
BDI:
CDI:
Chi Square: (o-e)2/e (answer>chi 2 given=
significant)
Formulas:
BDI:
CDI:
Chi Square: (o-e)2/e (answer>chi 2 given=
significant)
Economic Value: Price of Substitute + Cost saving for the customer during the same time+ Revenue increase for the customer during the same time Break Even Quantity= FC /(P - VC)
Break Even Revenue=FC/[(R-COGS)/ R]
PED=% Change in Quantity demanded/% Change in Price
CPM= cost/(% watching x population)x 1000

Economic Value: Price of Substitute + Cost saving for the customer during the same time+ Revenue increase for the customer during the same time Break Even Quantity= FC /(P - VC)
Break Even Revenue=FC/[(R-COGS)/ R]
PED=% Change in Quantity demanded/% Change in Price
CPM= cost/(% watching x population)x 1000

Marketing definition:
* Marketing without a price? As long as there is an exchange: non-profits or government agencies can provide concepts, leadership or services in exchange for empathy, understanding, following * Direct competition: Delta competes against United, Indirect competition: video conferencing * Direct customers: zinc sold to metal sheeting company; Indirect customers: sheeting sold to builders Five C’s

* Customers: needs/ decision making process: problem recognition, information search, evaluation of alternatives, purchase decision, post purchase evaluation * Context: demographics, economics, socio-cultural, political/legal * Company: business model and competitive strategy (low cost, superior performance, or niche marketing), competitive advantage: action that adds value that the competition cannot match * Collaborators: suppliers, distributors, media/Complementers: companies that sell products which are complementary to yours- bose speakers with ipod * Competitors: analyze their competitive advantage, business models, marketing strategies Strategy: best way to achieve objectives: situation analysis, creating value, capturing and sustaining value Five Forces Analysis:

* Industry Competitors: more competitors= less profitability, higher advertising expenditures, price wars * Marketing/brand image, patents and protection of intellectual property, alliances with linked products, tie up with suppliers/distributors, price, product differentiation, innovation, advertising * Potential Entrants: industries with high entry barriers and low exit barriers are favorable. * Avoid price war, differentiation, buy out competition, segment, communication * Availability of Substitutes: lots of substitutes lowers prices (perfect substitutes= commodities); if no differentiation, then firms can only compete on price, higher technology and lower cost * Enter substitute market, accentuate differences, alliances * Buyer Power: ultimate consumer or retailer (walmart); powerful buyers leads to less pricing flexibility, must provide more value to the buyers, less negotiation power * Mitigate: switch buyer with less negotiation power, partnering, supply chain management, increase brand loyalty, cut down intermediaries, decision making away from price * Supplier Power: raw materials and employees. Suppliers who offer materials with no substitutes, who are concentrated and high switching costs have high negotiation power * Mitigate: Vertical integration, get into business of suppliers, diversify supplier base, change design, partnering BCG Growth-Share Matrix:

* Market attractiveness is more than Growth: Margins in the market, Barriers to entry, Long-term, stable customer demand, High ROI relative to other options * Other factors besides market share affect competitive position: Technological leadership, competencies, Distribution strength, Supplier relationships, Management skills, brand names * relative market share= SBU’s market share/ largest competitors’ market share market power * ex) google’s market share=...
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