BUSE 101 Midterm Exam

Midterm on Chapters 1-12

Name: _____________________
Date: ______________________

Directions: Answer each question below. You may not add lines - please keep answers
confined to the lines printed below questions. Each question is worth 5 points. If a question
has two parts, those 5 points are divided between those two parts. You may SKIP one
question and still gain the points or answer all questions and have a 5pt bonus.

1. Name three stakeholders for Columbia College Chicago:

Human resources director, president of the Columbia College Chicago, Faculty senate.

2. What is an example of a CSR (corporate social responsibility) program and a conscious

marketing effort? What is the difference between the two?
Answer.
a. CSR: Independent of corporate purpose or culture, reflects a mechanistic view of
business, often grafted on to traditional business model usually as a separate
department or part of PR, and sees limited overlap between the business and
society and between business and the planet.
b. Conscious marketing: Incorporates higher purpose and a caring culture, takes a
holistic ecosystem view of business as a complex adaptive system, social
responsibility is at the core of the business through the higher purpose and
viewing the community and the environment as stakeholders, and recognizes
that business is a subset of society and that society is a subset of the planet.
c. EXAMPLE: Google funds for pro-profit entrepreneurship´s in Africa, Google China
Social Innovation Cup for College Students.

3. Use the cultural element from CDSTEP (cultural, demographic, social, technological,
economic, or political) to talk about how it relates to one of the four films we watched
in class (Coco, Black Panther, Crazy Rich Asians or Roma). Discuss how understanding
that cultural piece may influence how we market to that group.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

4. Using your original final project as an example, imagine that you are interviewing
members of a community to better understand advertising in that area. Share one
 example each of a quantitative and qualitative type of question you might ask a
resident. It must be clearly quantitative/qualitative and leave no room for
interpretation.
Quantitative: How many times per month do you purchase a coffee from a café or
coffee shop?
Qualitative: Which coffee drink do you purchase most often?

5. Identify all the BRICS countries and explain why they might be appealing for global
expansion.
Answer. BRIC is a grouping acronym referring to the countries of Brazil, Russia, India and
China, deemed to be developing countries at a similar stage of newly advanced
economic development, on their way to becoming developed countries. The main long-
term goal of BRICS is to help facilitate a much-needed level of cooperation between the
member nations for the purposes of development, to better support various projects, to
help provide financial assistance, infrastructure development, and more. Many of its
short-term agenda goals also related to development. China, for example, provided
Russia an opportunity to expand using its One Belt, One Road initiative, otherwise called
OBOR. Brazil and South Africa leverage BRICS for regional security and development.

6. If you plan to start an automobile company, how might TARIFFs, specifically those
associated with NAFTA or in sourcing parts to build your cars, impact your business? Be
specific.
Answer. A tariff is an extra cost applied on imported goods. Many of the tariffs that
President Trump is applying are extra costs applied to unfinished products like “raw
materials”. What happens with American companies that need to import products to
finish their products, they (China) are increasing the costs of those “raw materials”, and
the American companies are losing competitivity with the rest of the world. Because
their costs of production are higher, they don’t generate a lot of utility like companies
from other countries, like in Mexico that costs of production are much lower. This is not
affecting consumers right now but eventually when the companies have the need to
elevate the prices of the products the consumers will be affected.

7. Describe the impact KFC had on the Ghanaian society from the article you read for class
(Obesity Was Rising as Ghana Embraced Fast Food. Then Came KFC). How does this fit
within the scope of CDSTEP (mentioned in a previous question)? Use more than one
element of CDSTEP to explain your answer.
Answer. Actually, it is possible to say that KFC has a negative impact on the Ghanaian
society. According with the article the company brings the flavors that have made it
popular in the West, seasoned with an intangible: the symbolic association of fast food
with rich nations. This situation has brought obesity and related health problems have
been surging. Public health officials see fried chicken, French fries and pizza as spurring
and intensifying a global obesity epidemic that has hit hard in Ghana — one of 73
countries where obesity has at least doubled since 1980. In that period, Ghana’s obesity
rates have surged more than 650 percent, from less than 2 percent of the population to
 13.6 percent. In this order of ideas, it is possible to say that KFC didn’t take into account
the cultural and social basis in order to apply the expansion of the business in this
country. On the contrary, what it’s shown is a not value to the cultural approximation
and just a capitalist way of expand the business.

8. If you are doing a research project for class, what would be examples of primary and
secondary data? Choose any examples and describe (clearly, without leaving room for
interpretation) why it would be primary or secondary.
Answer.
a. Primary data: Research and focus groups discussion with clients of the company.
b. Secondary data: Market research projects.

9. Give an example of each of the four macro strategies to deliver value and explain why
they are deemed ‘excellent’
Answer.
a. Costumer excellence: Sephora creates a customer loyalty by having different
brands that sometimes are only sold at their locations. Also, it is not just involved
in makeup, but It has an entire section for skin care and even hair. Sephora is
mainly known for their amazing costumer service where they collect your
individual data by asking your email and knowing your history with the product
and even your price range and specific type of makeup that you normally like
and that way every costumer has a very personalized experience.
b. Operational excellence: Sephora has specific brands that are Sephora only which
makes the costumer only go to their stores to buy the specific brand that they
want. They have a strong variety of makeup brands which gives the costumers
opportunity to choose. Also, Sephora has a great relationship with the brands
since they not only sell the Sephora makeup line, they truly depend on the
variety of supplier brands.
c. Product Excellence: Since Sephora sells a variety of different makeup brand, they
do only sell “the best” products and just sell high perceived value makeup with
great formulas and actually kind of expensive. Since they do sell lots of variety,
they do have their own Sephora makeup line which is actually the most
affordable one with great formulas and great makeup products.
d. Locational Excellence: Location for Sephora is no problem, every important
street, great malls, or the most concurred places, has a Sephora where you can
go and buy your makeup. Here in Chicago Sephora has a location in the
Magnificent Mile.

10. How would the idea of Tribes influence how we can market to new or different audience
segments (as described in the Seth Godin Ted Talk we watched in class)? Specifically,
how do we leverage tribes? Name three tribes YOU belong to:
Answer. Tribes are about leading and connecting people and ideas. Tribes create a
movement of thousands of people that makes you not need everyone, just a few people
that will continue it with or without you. But it is a movement that it is not for
 everybody and it is not massive, it is just for certain people, but everyone belongs to
different type of tribes. It is not about persuading people to have something they don’t
want, it’s just about connecting and fining similarities. The different tribes I belong to
are, Mexican tribe, Liberal Arts School tribe, and Women’s tribe.

11. How do the 4Ps of Marketing relate to a product you may see in a high-end retail store
(such as Nordstrom) vs one you may see in a general retail store (such as Walmart). Also
compare this to products that you may also see available via digital/online channels
(Amazon, for example).
Answer. For this question I choose to compare Red Bull and Monster Energy at Target.
a. Product: RED BULL Inspired by functional drinks from the Far East, Dietrich
Mateschitz founded Red Bull in the mid 1980's. He created the formula of Red
Bull Energy Drink and developed the unique marketing concept of Red Bull. In
1987, on April 1, Red Bull Energy Drink was sold for the very first time in its home
market Austria. This was not only the launch of a completely new product; in
fact, it was the birth of a totally new product category. Today Red Bull is
available in 171 countries and over 75 billion cans of Red Bull have been
consumed so far. MONSTER ENERGY is an energy drink introduced by Hansen
Natural Company (now Monster beverage Corporation (MNST)) in April 2002.
The company is also known for supporting many extreme sports. There are 34
different drinks under the Monster brand in North America, including its core
Monster Energy line, Java monster, Extra Strength, Import, Rehab and Muscle
Monster.
b. Price: RED BULL at Target is sold for $2.69 12 fl oz Can and for $1.99 the 8.4 fl oz
Can. MONSTER ENERGY at Target is sold for $1.99 the 16 fl oz Can.
c. Place: RED BULL at Target was placed just in the middle section when you can
perfectly see it and reach it. It is mainly one of the first things you see when you
get in the drinks aisle and was also located and the cashiers with an individual
fridge where there were only Red Bulls. Just to give you a last chance to maybe
buy yours. MONSTER ENERGY was located in the aisle of drinks just next to the
Red Bull in competition as the energy drink but did not have the extra mini fridge
located at the cashier.
d. Promotion: Red Bulls is mainly known not for their logo specifically but for their
famous phrase and cartoons. Red Bull gives you wiiings. All over social media, TV
commercials and also YouTube you might find the typical short sketch of the
typical Red Bull cartoon. Also, Red Bull is involved in so many events as sponsors
and also participates a lot with athletes of artists. MONSTER ENERGY has the
same type of promotion only as sponsors as extreme sport events and has their
famous logo of an M which has created a lot of controversy saying that it is
“evil”, and they have used that scandal in their favor, to create curiosity and
stating that yes in fact they are different and extreme.
12. PART A: Thinking back on the idea of the ‘Golden Circle’ (a reference to a Ted Talk by
Simon Sinek that we discussed in class), choose which of the following Mission/Vision
statements ‘Starts with Why’ and explain:
Pepsi: To provide consumers around the world with delicious, affordable, convenient and
complementary foods and beverages from wholesome breakfasts to healthy and fun
daytime snacks and beverages to evening treats.
Coca Cola: To refresh the world in mind, body and spirit. To inspire moments of
optimism and happiness through our brands and actions.

Which one starts with WHY and explanation:

Answer. Coca Cola because it provides an immediate idea about why the organization is
providing with some products and the reason of the organization to be in the market
and how it is possible to do so.

Part B: Using his model, create the ‘Why, How and What’ for any brand you like. To be
successful in this, you should be able to articulate (show) that you understand how to
develop a golden circle type of framework.
Brand: Apple
Why: Challenge the status quo of technology and doing it differently
How: With a product with a solid and differential aesthetic and easy to use
What: Computers

13. What is the ‘perceived value’ of finding all three keys in the OASIS from the film ‘Ready
Player One’ that we watched in class?
Answer. In Ready Player One the perceived value of finding all of the three keys is
getting to win full ownership of the OASIS.

14. Name one-way people in the arts or entertainment industry adjusted to delivering their
performances or services in the midst of sheltering in place for caronavirus?
Answer. The virtualization of shows and the distribution through social media and other
platforms.

15. How does segmenting in STP relate to buyer personas? What are the key parts of a
buyer persona that would help with segmenting the market?
Answer.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

16. Discuss the role of research, data or technology in reaching customers as explained in
the Uhuru Podcast: How Media Planning Helps to Reach Diverse Audiences. You can discuss
Neilsen and its relevance in the age of Netflix, targeting customers who are watching
streaming television, or another point of interest Shalane mentioned in the podcast.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

17. When thinking about Brand Equity (Awareness, Associations, Loyalty and Perceived
Value), give an example of a brand that would rank highly in each category.
Answer.
a. Brand awareness: Starbucks has clearly created a huge brand awareness when it
comes to coffee, costumers immediately crave or think of the most popular
coffee shop to go, Starbucks. Also, with all the different drinks you can have,
many people crave the exact drink that they can order at Starbucks, even if it is
something that they can either make themselves or have anywhere else.
b. Perceived Value: Starbucks has created a perceived value with the costumers
since maybe, the drinks can be sometimes overpriced, but has the opportunity
to completely personalize your drink.
c. Brand Association: Starbucks has the well-known green mermaid logo that
people immediately associate with the franchise. Even though sometimes the
drinks could be expensive or a little bit overprized, besides everyone buying their
coffee at Starbucks, costumers also make a statement by stating that they ONLY
or CAN buy their coffee at Starbucks.
d. Brand Loyalty: What Starbucks has created is that people personalize their drinks
at Starbucks by ordering it just the way they want it. This way costumers know
exactly what they like and maybe buy their coffee every day at the same
Starbucks around the corner from their jobs.

18. How did Chewbacca Mom become famous?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

19. Discuss how Lacie’s need to keep a high rating in Black Mirror’s ‘Nosedive’ episode (we
watched it in class) relates to how we perceive social media influence today? Share specific
examples from the episode.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
 ________________________________________________________________________
________________________________________________________________________

20. Name one of the ways politics has influenced marketing/advertising, either through an
example given in class or one you think of on your own. Talk about the advertisement and
how it was perceived. For reference, this is not political advertising but ads that incorporate
topics considered to be political (such as healthcare, human rights, equal pay, etc).
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________