This is one of the easier CLEP’s. Most people with a fair bit of intelligence can get 50-60% of the questions right without even studying a page. Marketing can be a very complex subject, especially in industry-specific queries, but this CLEP is just based on an 100-level Intro to Marketing course. Most of it is just definitions and knowing what things are.
After studying and taking a few practice tests, I’ve compiled a list of notes that should make it easy for people to pass.
Straight Rebuy is when you buy the same product from the same company again.
Modified Rebuy is when you buy the same product again but from a different company.
Companies have a “push” promotion policy when marketing to retailers.
But have a “pull” promotion policy when marketing directly to the consumer.
Cash Cows are high market share products in a slowly growing “mature” industry. At this point, companies just sell the product to get profits, but have no need to invest much into it. (i.e. Apple iPods)
“Dogs”/Pets are less profitable products in a slowly growing “mature” industry. They’re either sold off or kept for possible social/PR benefits for the company. (i.e. Microsoft’s Zune)
Question Marks have low market share in a slowly growing industry. This is how companies start. As the industry matures, they’ll either become Cash Cows or Dogs.
Stars are high market share products in a fast-growing industry. At this stage, stars needs a lot of funding so that they can beat out competitors and eventually become Cash Cows.
A loss leader is a product that is sold at a loss to attract customers into buying the company’s other products.
Price skimming is when a company charges a high price at first for customers that are willing to pay it and then reduces the price so more people will buy it.
Product Diversification is when a company sells different types of products (i.e. a food store that also sells toiletries)
Product Differentiation is when a company makes a different version of the same product to appeal to a new demographic of consumers (i.e. Diet version of Soda to appeal to dieters)
Insistence is brand loyalty.
Decision Making Unit is the person who has the final say on whether the purchase is made.
The psychological factors in a purchase involve: perception, motives, abilities, knowledge, attitude. Price is not a psychological factor.
The late majority are people who wait until a product has been out for a while to buy it (i.e. most people are waiting to buy 4K televisions) ,
Early Majority and Late Majority comprise 66% of the market total.
Direct marketing is any marketing that’s specifically toward one consumer. Phone and email count.
A latent consumer need is one that’s not recognized until it is served (i.e. it wasn’t recognized that many people wanted a high-end touch screen phone until the iPhone came out and sold very well).
Cognitive dissonance is buyers remorse.
Psychographics study people’s behaviors, attitudes, values, style.
Price fixing is when companies collude to keep prices high.
Wheel of Retail - As retail companies grow, they expand their array of services and charge higher prices, to the point where they compete on factors other than price.
Basic economic terms:
Elasticity refers to how much demand changes when price changes. (i.e. people will still pay for gas if it’s expensive, but maybe not luxuries)
Gross vs Discretionary income
basics on Tariffs/Trade, NAFTA
Consumable goods (goods that don’t become part of the final product.) (i.e. pens that insurance companies use to write information)
Distribution Channel Function
Johannes Gutenburg invented the printing press in 1439
Theodore Levitt’s Marketing Myopia Theory
Test Marketing vs. Product Screening
PMGM (Igor Ansoff)
Brand Equity vs. Brand Familiarity
Screening vs. Resarch
Horizontal and Vertical Channels
Growth Share Matrix
Negative/Positive Legal Enforcement