MKTG 3000 Take Home Midterm Exam #2 (Chapters 10-14) Please draw a diagram and explain following concepts in detail.

1. Fig. 10.1: Elements of Price Planning

2. Fig. 10.2: Pricing Objectives

3. Fig. 10.11: Pricing strategies and Tactics 4. Fig. 10.13: Psychological, Legal, and Ethical Aspects of Pricing

5. Fig. 11.2: Key Types of Intermediaries 6. Fig. 11.4: Steps in Distribution Planning

7. Fig. 11.5: The Five Functions of Logistics Fig. 12.1: The Wheel of Retailing

9. Fig. 12.2: Classification of Book retailers by merchandise Selection

10. Fig. 12.3: Types of Nonstore Retailing

11. Fig. 12.4: Characteristics of Service

12. Fig. 12.5: Factors that Shapes the future of Service 13. Fig. 13.2: Communication Model

14 Fig. 13.4: Steeps to Develop the Promotional Plan

15. Fig. 13.7: Types of Advertising 16 Fig. 13.8: Steps to Develop and Advertising Campaign

17. Fig. 14.1: Types of Consumer Sales Promotion

18. Fig. 14.2: Trade Sales Promotions

19: Fig. 14.3: Factors that Influence a Firm's Emphasis on personal Selling

20. Fig. 14.4: Types of Sales Jobs

21. Fig. 14.5: Steps in the Creative Selling Process 22. Fig. 14.6: Objectives and Tactics of Public Relations

1. Fig. 2.2: Element of External Environment | copy and paste Figure 2.2 here |

Marketers must always be scanning the elements surrounding their external environment as part of their strategic planning process. It is important to note that external factors are out of the company's direct control, but can be responded too if planning is done correctly. and effectively. The five external environmental factors that a company must consider in order to figure out what decisions to make in the domestic and global market are the economic environment, the competitive environment, the sociocultural environment, the political and legal environment, and the technological environment.

The economic environment must be considered in order to approach decisions in the market correctly. The indicators of economic health must be looked at, which consist of the Gross Domestic Product, which measures the total value in goods and serviced produced in a given country in a year, and the Foreign Exchange Rates, which compares the price of one nations currency to another. Economic infrastructure is also a great way to compare the overall economic health by looking at the countries quality of distribution, communications and financial systems, including the average quality of goods and number of goods used in a nation which determines the standard of living for the people residing there. Least Developed countries often have low standards of living, and rely heavily on agriculture to increase their GDP. These countries are considered at the bottom of the pyramid because their standard of living is low, but offer opportunities for growth in infrastructure. Developing countries rely more on industry, and have large populations such as China, but can run into energy crisis if trade is not considered carefully. Developed countries offer the most opportunity for those who want to be international marketers due to their high standards of living and economic infrastructure. The economic environment also relies heavily on the business cycle which is constantly going through prosperity, recession, recovery or a depression. A side effect to a depression can result in high inflation rates that, which decreases the buying power for consumers.

The competitive environment also needs to be studied when developing a decision. Companies often use competitive intelligence to

determine how competitive a rival company is in both the microenvironment, and macroenvironment. The microenvironment is

studied by looking at consumers decision making process depending on discretionary income, product competition, and brand

competition. A consumer's discretionary income is used once all necessities are paid for, which leaves the remaining money for

activities. For example, a person may pay for all their necessities such as groceries, rent, and utilities, and then use the remaining

money to buy themselves a concert or movie ticket. Product competition occurs when a two different product match a consumer's

need or wants. For example, an individual who wants a new form of technology have an option between a tablet, or a laptop. Brand

competition is different than product competition due to the competition being between two brands that offer very similar products.

For example, Pepsi and Coke are in brand competition because they both produce soft drinks under different companies. Competition

can also be in the macroenvironment, which is the structure of the industry. The macroenvironment looks at the monopoly, oligopoly,

monopolistic competition, and perfect competition. A monopoly occurs when one company controls the entire market, while an

oligopoly occurs when there is a small number of sellers with many buyers. Monopolistic competition occurs when there are many

sellers with similar products, but few buyers, which, while perfect competition is when there is a small number of sellers with very

similar products causing no one to have a huge impact on price and quality. Technology plays a role in the external environment due to its ability to provide firms with more advantages than others. Technology allows some firms to sell directly to consumers, which speeds up the process of distribution, while also allowing the company to remain in touch with their customers. Through technology, consumers can email their customers, send them promotional emails, all while being able to reach a larger market at the click of a mouse. The technological environment also allows patents to be put into place globally that gives your company exclusive rights to produce and sell your product.

Political and legal environments also play a role in a firms' decision-making process. Laws often have the purpose of providing fair competition, and consumer protection from unfair practices. For example, the federal Trade Commission is in charge of enforcing health must be looked at, which consist of the Gross Domestic Product, which measures the total value in goods and serviced produced in a given country in a year, and the Foreign Exchange Rates, which compares the price of one nations currency to another. Economic infrastructure is also a great way to compare the overall economic health by looking at the countries quality of distribution, communications and financial systems, including the average quality of goods and number of goods used in a nation which determines the standard of living for the people residing there. Least Developed countries often have low standards of living, and rely heavily on agriculture to increase their GDP. These countries are considered at the bottom of the pyramid because their standard of living is low, but offer opportunities for growth in infrastructure. Developing countries rely more on industry, and have large populations such as China, but can run into energy crisis if trade is not considered carefully. Developed countries offer the most opportunity for those who want to be international marketers due to their high standards of living and economic infrastructure. The economic environment also relies heavily on the business cycle which is constantly going through prosperity, recession, recovery or a depression. A side effect to a depression can result in high inflation rates that, which decreases the buying power for consumers.

The competitive environment also needs to be studied when developing a decision. Companies often use competitive intelligence to determine how competitive a rival company is in both the microenvironment, and macroenvironment. The microenvironment is studied by looking at consumers decision making process depending on discretionary income, product competition, and brand competition. A consumer's discretionary income is used once all necessities are paid for, which leaves the remaining money for activities. For example, a person may pay for all their necessities such as groceries, rent, and utilities, and then use the remaining money to buy themselves a concert or movie ticket, Product competition occurs when a two different product match a consumer's need or wants. For example, an individual who wants a new form of technology have an option between a tablet, or a laptop. Brand competition is different than product competition due to the competition being between two brands that offer very similar products. For example, Pepsi and Coke are in brand competition because they both produce soft drinks under different companies. Competition can also be in the macroenvironment, which is the structure of the industry. The macroenvironment looks at the monopoly, oligopoly, monopolistic competition, and perfect competition. A monopoly occurs when one company controls the entire market, while an oligopoly occurs when there is a small number of sellers with many buyers. Monopolistic competition occurs when there are many sellers with similar products, but few buyers, which, while perfect competition is when there is a small number of sellers with very similar products causing no one to have a huge impact on price and quality.

Technology plays a role in the external environment due to its ability to provide firms with more advantages than others. Technology allows some firms to sell directly to consumers, which speeds up the process of distribution, while also allowing the company to remain in touch with their customers. Through technology, consumers can email their customers, send them promotional emails, all while being able to reach a larger market at the click of a mouse. The technological environment also allows patents to be put into place globally that gives your company exclusive rights to produce and sell your product.

Political and legal environments also play a role in a firms' decision-making process. Laws often have the purpose of providing fair competition, and consumer protection from unfair practices. For example, the federal Trade Commission is in charge of enforcing laws through giving out fines to those who us deceptive advertising to lure customers in, Political actions can also be taken by the government through economic sanctions which is cutting off trade with another country, or nationalization which is when the government takes control of a business by stating it is in the best interest of the country. A government can also use expropriation which is when the government takes a foreign-owned asset in the best interest of its country.

Sociocultural environments focus on the characteristics of a society through demographics, cultural values, social norms, language, consumer xenocentrism, a consumer ethnocentrism. When looking at the demographics of an environment it is most often the observable aspects such as size of the population, income, average age, and occupations. Cultural values are the beliefs that a culture holds close, such as the idea of individualism and collectivism. Social norms are the simple rules in a society that dictates what is right behavior an what is wrong behavior, such as it is wrong to steal, but right to help the elderly. Language is an important aspect to look at because if people cannot understand each other, doing business in that society may be difficult due to this communication barrier. Xenocentrism and ethnocentrism are opposites of each other, meaning that ethnocentrism is preferring your own culture to anyone else, making it hard to convince this environment to try things outside of their norm, while xenocentrism is the belief that another culture is better than their own, meaning that this society may be more open to products that are foreign to them