Bus. Econ. 230 -- Marketing
J. Sell
Spring1998

Second Examination Outline and Review

Outline of Materials Covered prior to second examination. This is in addition to the material covered in the first examination review. Note: You should be able to discuss the following concepts clearly and completely without the use of notes and talk about why each is important to the study of Marketing. You should also be able to give examples of the concepts other than the ones given in class.

I. The Market Research Process (cont'd.)

A. Evaluating Data

1. Market Potential
2. Summarize Situation
3. Forecasting

B. Estimating Potential

1. Chain Ratio Method
2. BPI (Sales & Marketing Management Magazine)

C. Summarizing past data with seasonal adjustment

D. Forecasting

1. Naive Forecasting
2. Moving Averages
3. Exponential Smoothing
4. Regression Analysis

E. The Value of Information Model

1. Relevant Factors
2. Estimation

II. Product Differentiation

A. The Economic Problem (tendency toward zero economic profit)

B. Components of Product Differentiation

1. Market Segmentation

a. What is a market?
b. Why segment (two reasons)
c. Criteria for Effective Segmentation

2. How to Segment

a. Ex Ante

1) Demographics
2) Geographic
3) Psychographic
4) Multivariate
5) Benefits (causal)

b. Ex Post

1) Volume
2) Brand loyalty

c. Countersegmentation

1) The Demand problem
2) The cost problem

3. Market Targeting

a. Three Options

1) Undifferentiated
2) Differentiated
3) Concentrated

b. General Electric Planning Grid

4. Product Positioning

a. Key is to find critical characteristics
b. Perceptual Mapping

III. Consumer Behavior

A. A Psychological Model

B. Factors

1. Culture and Subculture

a. Definition
b. Marketing Use

2. Social Factors

a. Class
b. Group

 

Updated by Jws on 1 March 1998.