BUS 363 Exam 2 Essay Questions

1. How does the product life cycle correspond to the BCG matrix—that is, where would a product
typically (or ideally) fall in the matrix at each stage of the life cycle? Explain your answers
Questions Mark: Indroducrion (potential growth but hasn't yet attained attention)
Star: Growth Stage (attained attention, but needs continued investment)
Cash Cow: Maturity Stage (known, but experience slower growth)
Dog: Decline stage (not hold a significant position against competitors

2. Choose a fast-food restaurant with which you are familiar and sketch out a product mix that
identifies at least 3 product lines and 2 product items in each line. Recommend a new product
line to expand the product mix and identify 2 new products for this line. Be able to justify the
introduction of your new line.
McDonalds
1. Sandwhiches
a. Spicy McChicken
b. Cheese Burger
2. Desserts New Product Line:
a. Apple Pie Healthy Alternatives
b. Donuts a. Protien Shakes
3. Drinks b. Tofu/Blackbean Sliders
a. Smoothies
b. Coffee

3. Choose and contrast two brands in terms of brand equity. Address each of the four components
of brand equity. The brands should differ in terms of each component’s contribution to overall
equity. (p.262)
First: Apple
Brand Equity
1. Brand loyalty: seamless integration among devices.
2. brand awareness:
3. Brand associations:
4. Perceived quality: reliability and user experience

Second: Walmart
Brand Equity
1. Brand Loyalty
2. brand awareness:
3. Brand associations:
4. Perceived quality:

4. Using just three of the stages of the new product development process, describe a scenario in
which a new product might fail at each of the stages you have selected.
1. Concept Testing: consumers find the idea of new coke to be generic and off-brand
2. Product Development: to develop and prouctions new coke is to expesnive
3. Test Marketing: new coke does not get bought in large enough quanities in Walmart
when it is test marketed for a short period of time before being relased

5. Choose 5 brands in a product category you are familiar with. Identify two attributes that you
think would be relevant to positioning these brands and draw a perceptual map. Explain your
decisions.
 Underwear:
1. Victoria Secret
2. Walmart
3. Norstrom
4. Forever 21
5. Target
Attributes:
1. Diverse size range
2. Affordability
6. Be prepared to conduct some simple price analyses, including marginal analysis, break even
analysis, and the calculation of elasticities.
YOU NEED TO GO BACK AND LEARN THE MATH
7. Draw an example of a 1) elastic and 2) an inelastic demand curve, and provide 3 unique (e.g.,
don’t borrow from the exam or text/class examples) examples for each of the products or
services that might have these curves.

Elastic:
1. Boat Tickets
2. Jessica Simpson Heels
3. College Txt books

Inelastic
1. Motor Oil
2. Dr. Visits/Appointments
3. Dairy Products

8. Choose three psychological pricing strategies and explain each using examples of products or
services that would be well-suited to using them.
Psychological pricing strategies
1. Reference Pricing: Putting a $4.99 bottle of shampoo next to a $7 shampoo
 2. Odd- Number Pricing: A bottle of shampoo being solf for $4.99 instead of $5
3. Multiple-Unit Pricing: selling shampoo buy two for 4.99 or buy one for $5

9. Compare and contrast cost-based and value-based pricing strategies. What kinds of products
and services are better suited to each?
Compare:
a. Cost-Based: pricing method that is based on the cost of production,
manufacturing, and distribution of a product. Adding a specific percentage or
dollar value to make a profit.
b. Value Based: pricing method that is based on consumer's perceived value of a
product or service, rather than adding a specific amount to what is charged.
Products:
a. Cost-Based: it costs $2.50 to make a phone, then a 50% standard margin would
mean the phones price is $5.00.
b. Value Based: at a concert, bottled water may be on sale for $6. However, you
can buy the same bottle from a vending machine outside of the concert area for
$1 only.

10. What is the role of digital marketing in the marketing mix? Digital marketing role in the
marketing mix is its ability to connect with audiences in a more personalized, measurable, and
cost-effective manner. It aids in understanding consumer behavior, promoting products
effectively, adjusting pricing strategies, and expanding distribution channels, ultimately
contributing to a more comprehensive and impactful marketing strategy.
How can digital marketing play a role in each of the marketing mix factors—product, price,
promotion, and distribution?
a. Product: provide insights into customer preferences, feedback
b. Price: monitor competitors' pricing strategies and adjust their own pricing
strategies accordingly to remain competitive.
c. Promotion: influencer partnerships, and targeted advertising to reach specific
audience segments
d. Distribution: expand distribution channels, consumers can order goods from
across the world.

11. What is the role of digital marketing in the promotional mix?

Digital marketing serves as a tool within the promotional mix, allowing businesses to adapt to
changing trends, target specific audiences, measure success, and build long-term relationships
with customers.
Which elements of the mix can digital marketing support, and how? Compare and contrast with
traditional promotional elements.
Promotional Mix: (p.410)
1. Advertising: yes through display ads
2. Personal Selling: Yes, tools like email, video calls, or live chat
3. Public relations: Yes, Through social media, blogs, and online press releases
4. Sales Promotion: Yes, coupon codes, discounts, limited-time offers
difference in cost and ability to see the success of the ads (engagement)

12. Understand the components of the communication model in Figure 15.1.

How does each component relate to marketing communications?
Source: company trying to convey a message to its audience
 Receiver: target audience/consumers
Coding: converting meaning into signs or symbols
Communication Channel: the mediums through which the message is transmitted.
Decoding: the target audience/consumers interprets and understands the message.
Feedback: reaction of the receiver to the message
Why is it important to understand?
The communication model: how information is transmitted and received.
In marketing communications, the model's components work together to ensure that messages
are effective; transmitted through appropriate channels, understood, and lead to the desired
action, influencing consumer behavior and brand perception.

13. Choose two products that would likely require two very different promotional mixes. Identify two
elements of the mix that would be well-suited to each and explain why in terms of 1)
characteristics of the target market and 2) characteristics of the product.
Product 1: Ford Truck
Mix: Personal Selling (more personal information needed to make connection)
a. Characteristsics of Target: blue collard, older men
b. Characteristics of Product: gender segmanted, expensive
Product 2: Dove Shampoo
Mix: Sales Promotion (not face to face, so more exposure is needed)
a. Characteristsics of Target: differnciated because of the multitude of promotional
mixes allowing for a larger range of expsoure to an array of individuals
b. Characteristics of Product: affordable, gender segmanted, convienence good

14. Different promotional objectives are relevant at each stage of the product life cycle. Using Table
15.2 as a guide, choose once specific promotional objective that would be appropriate for each
of the four stages of the lifecycle. Then, briefly explain what element of the promotional mix you
would use for each objective.
Stages:
1. Introduction Stage: create awarness (product is unknown)
2. Growth Stage: stimulate demand (make you product appealing)
3. Maturity Stage: retain loyal cstoemrs (keep customers interested)
4. Decline Stage: combat competitive promotional sales (try to convert customers yuve
never had before in a last minute effort to stay afloat)

15. Compare and contrast three different advertising media/vehicles, highlighting the advantages
and disadvantages of each.
1. Television Advertising
Advantage: Wide Reach of Target Audience, High Impact (memorable)
Disadvantages: Channel Surfing and Ad Avoidance, Production costs for high-quality
ads are expensive
2. Social Media Advertising
Advantage: Precise Targeting, Cost-Effective (can be tailored), (easier to determine
effectiveness → i.e. likes and comments) Engagement/Interactive
Disadvantages: Information Overload (jumbled), Ad Blocking, Algorithm Changes, Credit
3. Billboard Advertising
Advantage: high exposure, constant visibility without time limitations
Disadvantage: limited time to absorb the message while passing, Prime locations is
costly, lack targeting capabilities
16. Explain how the different types of advertising relate to each stage of the product life cycle, and
provide an example of a product that would be well-suited to each type of advertising. Be
specific with respect to the type of advertising you would use.
Stages:
5. Introduction Stage: Pioneer Advertising Ex: VR headsets
6. Growth Stage: Comparative/compedative Advertising Ex: Electric vehicles
7. Maturity Stage: Reminder/reinforcemnt Advertising Ex: Smart phones
8. Decline Stage: Advocacy/institution Advertising Ex: Land line Phone

17. Compare and contrast institutional/advocacy advertising with public relations. In what ways are
they similar and in what ways are they different?
They share similarities in their objectives but differ in their approaches and execution
Similairities:
● Aim to shape public perception and enhance the reputation of an organization
● Create communication strategies to reach specific target audiences
● Convey messages about the values, mission, or goals of an organization
Differences:
● Advocacy: paid placements in various media channels
Public: secure media coverage through press releases, media relations, and storytelling
● Advocacy: message is to advocate for a specific cause/ viewpoint (promote)
Public: message is to managing relationships and maintaining a favorable public image

18. For what products and services is personal selling an effective element of the promotional mix,
and why?
Personal selling is particularly effective for products or services that involve high levels of
complexity, customization, or value, where building relationships and addressing individual
needs are crucial.
Examples:
Home-Made Goods:
● These products are higher in value and cost, rather than mass produced goods
● Personal form of communication (one and one with seller)

19. Compare and contrast the different salesperson compensation schemes. Provide an example of
an industry in which each kind of scheme might be most effective, and explain why.
Straight Salary: paid specific wage for an entire period and dpesnt change
Ex: Manager at McDInalds
Cobination Salary: straight salary plus comiision
Ex: Car salesman

20. Provide an example how at least two of Cialdini’s influence principles 1) could be used in a
personal selling situation 2) for a specific kind of sales promotion.
1. Reciprocity Example:
 a. Personal Selling: engaging in friendly communications with a cars salesman about
something other than their pitch, and inter the ocnsumer are more include to purchase
the offering by reciprocating the mutual friendly talk
b. Sales Promotion: when a customer buys a good and receives a coupon for money off
their next purchase

2. Scarcity Example:

a. Personal Selling: Sales person telling a customer the stores has limited stock avaliable
b. Sales Promotion: ice-cream shop offering discount ice-cream for the first 50 customers