Unit III Review

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There is math and formulas in this unit.  You should be prepared with a calculator for the exam.  You can do the problems without one.  It will just be more convenient to have one.  If you use your phone as a calculator make sure it is on vibrate mode at the very least so incoming calls will not be heard by those around you!

 

Chapter 13

·        Know the following formulas – price, profit, break even and be able to compute problems using them

·        Understand how value pricing is used

·        Understand pricing constraints and how they impact the pricing strategy used

·        Know the different types of competitive markets and how they affect price

·        Look at the different types of pricing objectives

·        Understand the following things about demand:  what are the key factors in estimating demand; how demand curves affect revenue; what causes movement along the demand curve and shifts in the demand curve; elasticity of demand (you will not have to figure elasticity using the formula)

·        Understand the fundamental cost concepts (figure 13-9)

 

Chapter 14

·        Know the following formulas – profit, trade discount formula and be able to compute problems using them.

·        Be able to identify the different types of pricing and whether they are demand, cost, profit, competition oriented approaches (see figure 14-2).

·        Know why a particular pricing strategy is used (ie leader to get people in the store so they buy other things etc.)

·        Know what one price and flexible price strategies are and where they are used.

·        Understand how the product line affects pricing

·        Know the different types of discounts, allowances and geographical adjustments (see figure 14-6), what they mean, how they are used and compute final price.

·        Look at the legal aspects of pricing

 

Chapter 15

·        Know the functions performed by the channel (figure 15-3)

·        Understand the different ways channels are structured.

·        Know what dual distribution and strategic channel alliances are.

·        Know the different types of merchant wholesalers and agent/brokers, what they are called and what they do (figure 15-7, lecture and accompanying text)

·        Be able to identify the different types of vertical marketing systems

·        Understand what affects the type of channel used

·        Be able to identify the different levels of distribution, where and why they are used

 

Chapter 16

·        Know the difference between a marketing channel and supply network and how this fits into the overall supply chain environment.

·        Know what cross-docking and electronic data interchange is

·        Look at the total logistics cost concept and how that connects with customer service factors

·        Understand the different types of transportation modes, where and why they would be used.

·        Know what freight forwarders are

·        Know what just-in-time is

·        Understand how reverse logistics fit into the picture.

 

Chapter 17

·        Look at the different ways to classify retail outlets and be able to identify each

·        Understand depth and breadth of product line

·        Know the difference between scrambled merchandising, mass merchandising, off-price retailing and wheel of retailing

·        Know what intertype competition is and how it affects retailers

·        Look at the different types of non-store retailing, how and where they are used and trends

·        Understand the retail positioning matrix

·        Understand pricing concepts as they relate to retailing.  CAUTION:  for the purpose of this class we will stick to trade discount/markup being figured as a % of selling price not cost.  The material on page 460 is confusing on that matter.  Go from your class lecture notes on this.  You will be expected to know what the difference between markup/trade discount, markdown, gross margin and maintained mark up is and how it is unique to retailers and not other members of the channel.

·        Look at the different types of retail locations

 

Chapter 21

·        Look at the differences between traditional marketplace and marketspace

·        Terminology is important in this chapter.  Use the key terms and concepts list on page 577 as a basis for this.

·        Understand the factors affecting an online customer experience paying attention to the italicized words in that section (figure 21-2 and surrounding text)

·        Understand multichannel marketing