Final Exam Resources:Practice Short Answer QuestionsNote that these are practice questions intended to give you an idea of the style of questions to expect; thisdoes not mean that these questions or topics will be on the exam, nor does it mean that these topics are theonly ones on the exam. Further, just memorizing material is not enough – you need to be able to apply theconcepts to various marketing situations and justify your answers in context.Short Answer TipsTo prepare for the short answer section, review the posted sample answers to in-class activities and thesample short answer questions below. Keep in mind: Most short answer questions are worth multiple marks. Generally, you can expect to earn 1 mark foreach valid, complete point you make. For example, if a question is worth 2 marks, you need to make 2distinct points for full marks. Point-form answers are acceptable, as long as your meaning is clear. Remember to answer all parts of each question. Make sure to justify your answers using the question scenario. For example, if the question includes ascenario about hoodies (i.e., hooded sweatshirts), your answer would need to be tailored to themarketing of sweatshirts. You must write clearly and legibly. If we can’t read it, you may get zero points for the affected marks. You are responsible for learning course terms (e.g., “segmentation”). If you are unsure of a non-courseterm in a scenario or question, you may consult a paper dictionary or you may raise your hand to askfor clarification.Situation AnalysisThe National Hockey League (NHL) is North America’s premier professional ice hockey leaguecomposed of 30 separately owned teams based in Canada and the US. The league attractshighly skilled players from all over the world to play at this elite professional level. While theNHL follows the general rules of ice hockey, its rules differ slightly from those used ininternational games, such as the Olympics, which are organized by the International Ice HockeyFederation (IIHF).The NHL is one of four major professional sports leagues in North America, along with MajorLeague Baseball (MLB), the National Football League (NFL), and the National BasketballAssociation (NBA). In the US, hockey has the smallest total fan base of the four sports leagues,the least revenue from television, and the least sponsorship. In contrast, hockey is the mostpopular of these four major sports in Canada. In both countries, the NHL fan base is moreaffluent and well-educated than the fan base of the MLB, NFL, and NBA. In addition, NHLseason ticket prices have traditionally been higher (given the number of games per season)than those of the other sports.Like any business, the NHL is interested in protecting its market position and growing theleague as a whole. In addition to managing the league’s day-to-day activities, the league’sPresident, his staff, and the 30 North American team owners are all charged with the longerBAMA 550: MARKETING – PROFESSOR KIRSTIN APPELTPage 1 of 8

term responsibility of growing the sport and finding new revenue sources while maintainingcurrent levels of fan and sponsor support.1. Identify six environmental variables that the NHL should be aware of—realities that currently orsubsequently will affect their business and which should be accounted for in strategic decision-making. Foreach variable, explain what it is and why it is relevant to the NHL’s marketing planning. (6 marks)Hints: This question is worth six marks, so make sure you provide six valid, distinct points. The words “environmental variables” (or environmental analysis or situation analysis) indicate that youneed to analyze both the immediate environment and the macroenvironment. The immediateenvironment includes consumers, the company, corporate partners, and competitors; themacroenvironment can be analyzed using CDSTEP. You don’t need to know specifics about the NHL to answer this question; in fact, the exam will likelycontain a number of questions about unfamiliar organizations. Just use the information provided in thequestion scenario, your knowledge of course concepts (in this case, situation analysis), and basic logicto answer the questions. Remember to use specific examples from the scenario in your answers. Do not simply outline theenvironmental elements generically; put them into the NHL context. For example, for competition,saying, “One environmental factor the NHL should be aware of is the growth of indirect competitors.” istoo general and would not earn you full marks. In contrast, saying, “One environmental factor the NHLshould be aware of is the growth of indirect competitors, such as the NBA and the NFL, because thesenational professional leagues compete for sports fans’ attention with similar products.” is specific to thescenario and could earn you full marks.Consumer Behaviour2. Identify a major financial purchase you recently made. Think about the different types of psychological,social, and situational factors that influence consumer behaviour. Identify three variables that influencedyour purchase; for each variable, explain what it is and how it influenced your purchase. (3 marks)Hints: This question is almost completely open (i.e., I would not have one set answer in mind). You simply needto imagine your purchase and go from there. Remember to provide context so that my markers and Ican understand your logic; in other words, write a couple of points about the purchase to set the stage.Questions like this are graded based on the logic of your answers and whether you reference the rightconcepts. You need to know the different variables within the factors that influence consumer behaviour. Forexample, within the category of psychological factors we discussed perception and attitudes. Thecategories (i.e., psychological, social, and situational) are too broad, what I’m looking for in thisquestion are the variables within these categories. Again, use the number of marks assigned to the question as a guide for how much detail or how manykey points you are expected to make. In this case, there are three categories of influences on consumerbehaviour listed so it would be logical to describe one influence from each category for your total ofthree marks. (And selecting three variables from a single category would likely not merit full marks.) Pay attention to the details in the question, and ensure you answer all parts. For example, the questionasks you to explain the variables and their influence; don’t simply list “attitudes” as a variable, rather,BAMA 550: MARKETING – PROFESSOR KIRSTIN APPELTPage 2 of 8

describe a specific example of one of your cognitive, affective, and/or behavioural attitudes and how itinfluenced this particular purchase.Segmentation, Targeting, and PositioningAdapted from:American Giant: For Breathing New Life into U.S. Apparel ManufacturingBy Andrew Rice, Fast CompanyPublished March American Giant is an e-commerce phenomenon: Its sweatshirts, t-shirts, and polo shirts, almostentirely sourced and produced in North and South Carolina and sold only via the web, arecomfortable, flattering, durable, and popular with a fanatical fan base. CEO Bayard Winthropsays its business has tripled each year since its launch in. The company’s productsroutinely sell out and can be back-ordered for weeks. And Slate spoke for many fans when itcalled American Giant’s primary product "the greatest hoodie ever made."3. American Giant targets one or more market segments with their hoodie product. (a) Identify one marketsegment you think American Giant should target with their hoodie product; describe the segment’s profileusing market segmentation variables. (3 marks) (b) Write a positioning statement for American Giant thatis targeted to the segment you just identified. (1 mark) (c) What factors might cause American Giant toreposition its product? (2 marks)Hints:a) For three marks, you should provide a nickname for the segment and then describe it using threevariables from different bases (e.g., 1 demographic variable, 1 psychographic variable, and 1 behaviouralvariable).o You need to know the different segmentation variables. Remember that there are foursegmentation bases (i.e., geographic, demographic, psychographic, and behavioural), each of whichhas a number of component variables. For example, within behavioural, we discussed benefits,usage rate, loyalty, and occasion.o Make sure to choose segmentation variables that would suit American Giant.b) You need to know how to write a positioning statement that will make American Giant and/or theirhoodie product seem relevant, unique, and desirable to the target segment.o The positioning statement must include the company/product name, the target segment, the frameof reference, the point of parity, and the point of difference. An example of a successful positioningstatement might be: For college students, American Giant hoodies are comfortable and, unlikeother sweatshirts, flattering.o Make sure your point of parity and point of difference are clear. In the example above, the phrase“unlike other sweatshirts” is used to make it clear that “flattering” is the point of difference,whereas “comfortable” is the point of parity. You can use an extra sentence or two to clarify yourpoint of parity and point of difference, or you can use arrows and labels.c) For two marks, you should describe two factors that may inspire repositioning.o Repositioning is done to change the position of a product in the target market’s mind for a numberof reasons: Something in the environment (e.g., either immediate factors or CDSTEP factors) haschanged (competition is the most common catalyst); the target market has changed; or somethinginternal (e.g., organizational mission, objectives, strengths or weaknesses, etc.) has changed. Fortwo marks, you should describe two factors.BAMA 550: MARKETING – PROFESSOR KIRSTIN APPELTPage 3 of 8

o Remember: Always give an example of what you mean, don’t just regurgitate the theory from thereadings or my lectures.Product Strategy4. With smoking bans in effect in many places, Zippo Manufacturing, maker of the well-known Zippocigarette lighters, is looking for new ways to grow its revenues. (a) List two growth strategies that Zippocould follow to grow its revenues. (1 mark) (b) For each strategy, describe a specific tactic. (2 marks) (c)Explain why Zippo should (or should not) use each tactic to grow its revenues. (2 marks)Hints:a) First, you should list two different growth strategies – market penetration, product development, marketdevelopment, or diversification. List means just name the strategies, you don’t need to define them (yet).b) Second, for each strategy, you should describe a specific tactic and explain why it’s an example of one ofthe strategies. This is where you define the strategies in part (a). For example, if you chose marketdevelopment, you might suggest that Zippo reposition its cigarette lighter as a candle, fireplace, and grilllighter. Because Zippo is marketing its existing product (i.e., the lighter) to a new segment (i.e.,homemakers vs. smokers), this tactic would be an example of market development. Remember for twomarks, you need two tactics – one tactic for each strategy.c) Finally, you need to justify your chosen tactics by discussing their pros and/or cons. Continuing theexample above: Although Zippo would need a new promotional campaign to reposition its lighter, thistactic may be relatively cheap and less risky because Zippo doesn’t need to develop a new product. Also,because homemakers are a big market not subject to the same problems as smokers, who represent botha shrinking market and a major health issue, repositioning the lighters stands to be both profitable andbeneficial for Zippo’s image. Again, for two marks, you need two explanations – one explanation for eachtactic.5. Believe it or not, Walmart has a designer label clothing brand called George. Although relatively few NorthAmericans know the George brand, but in Britain it is well regarded and sold in stand-alone George stores.(a) What would be the benefits to Walmart if the George brand of clothing became recognized and desiredin Canada? (2 marks) (b) What would be the benefits to consumers of shopping a strong brand? (2 marks)Hints: This question is asking about the value of a strong brand; for full marks, you need to list and describe 2specific, distinct benefits for each group – the company and the consumers. These should be tailored tothe scenario. For example (albeit without customization to the scenario), the benefits to Walmart would likely include:o Increased consumer loyalty if consumers trust the brand.o Some protection from competition if consumers seek out the brand.o Reduced marketing costs if consumers become familiar with the brand.o Increased asset value and profit if George became a valued brand For example (albeit without customization to the scenario), the benefits to consumers would likelyinclude:o Facilitated purchases for consumers who recognize the brand and its cost and quality signals.o A way to convey status or identity for consumers who have certain associations with the brand.o Familiarity and an ongoing relationship with the brand build trust for the consumers.BAMA 550: MARKETING – PROFESSOR KIRSTIN APPELTPage 4 of 8

Pricing Strategy6. Identify three factors that influence elasticity of demand (a.k.a. price sensitivity). (1 mark) List a product,whether a good or service. For each factor, describe how that factor affects your chosen product’s degreeof elasticity. (3 marks)Hints: First, you should identify three factors, such as the income effect, the substitution effect, cross-priceelasticity, proportion of budget, whether the product is a necessity or non-essential, and whether theproduct is a prestige product or a normal product. Identify means just name the factors, you don’t needto define them (yet). Next, describe the effect of three