1. What are the five steps to formulate a successful marketing plan?

A. Set marketing objective

B. Get the product out: sales and distribution
C. Set a pricing strategy
D. Raise visibility : advertising, public relations and promotions
E. Conduct a site analysis
2. List three kinds of segmentation. For what kinds of products or services would one
kind be more important than another?
A. Demographic – Demographic would be an important segment when one is trying to
create a video games. Video game creators have to create the games based on age so that
it is age-appropriate for the age group they are targeting.
B. Geographic – Geographic would be an important segment when one is trying to
winter coats. A winter coat store would not make the same level amount of sales if they
sell their coats in Florida rather than in New York.
C. Psychographic – Psychographic would be an important segment when one is trying to
sell products to people that live a certain lifestyle (e.g. gluten free). A store that
specifically sells gluten free items would not want to include an non-gluten free item.

3. What is positioning? What is perceptual mapping?

Positioning is an effort to get your brand to stick out more than other competitive brands.
Perceptual Mapping is a map that indicates any future threats to one’s company.

4. How would you use digital channels to create demand?

I will advertise on both Social media and electronic media to create demand for
product

5. Three types of Segmentations

a. Geographic Segmentation
b. Demographic Segmentation
c. Consumer Segmentation
6. What are product positioning and perceptual mapping?”
Perceptual mapping is a diagrammatic technique used by asset marketers that attempts to
visually display the perceptions of customers or potential customers. Typically the
position of a company's product, product line, or brand is displayed relative to their
competition
Q-7 Viral Marketing

Viral marketing is a business strategy that uses existing social networks to promote a
product. Its name refers to how consumers spread information about a product with other
people in their social networks, much in the same way that a virus spreads from one
person to another.
Viral marketing typically supplies its audience with something of value for free. This can
be something as simple as an amusing song or game. Whatever the viral content is, it
must encourage people to share with others so as many people as possible receive the
content's message.
Q-8 How can a small company use Google AdWords for market research?
Google keep track for its customers and from this tracking data we can analyze the
customer trends , what are the liking and what are disliking. This market research will be
based upon the number of click per add.

Q-9 What factors determine whether the business would offer discounts?
1. Environmental Factors
2. Customer Liking and disliking
3. Marketing Strategy

9. What are the three pricing objectives? Give an example of an industry that
would use each.
A. Revenue oriented – Restaurants / Moving Companies / Clothing Stores
 B. Operations oriented - Hotels / Airlines / Moving Theatres
C. Patronage oriented – Grand opening / closing businesses
10. You own a cafe in a large urban area that carries a total of $500,000 per year
in fixed costs. Your cafe sells only coffee for $2.50 per cup. The average
variable cost per cup (coffee mix, cup costs, etc.) is $1. How many cups do you
need to sell per day to break even? If the price of the coffee decreased by 10
percent for a special promotion (with all other costs staying the same), how
many cups would you need to sell to break even? 


FC = $500,000 per year

Price per coffee = $2.50
VC per coffee = $1
Earnings per coffee = $1.50
500,000 / $1.50 = 333,333
333,333 / 365 days = 913 cups per day to break even