Profit Equation - correct answer Total Revenue - Total Cost
Pricing Strategy: Penetration Pricing - correct answer Low price to increase sales and
... [Show More] market share.
Pricing Strategy: Skimming Pricing - correct answer Starts out with a high price and slowly lowers it to fit the market.
Pricing Strategy: Competition Pricing - correct answer Setting prices nearly equal to competitors.
A cable company may start out with a low price to get subscribers. Eventually, price will increase as their market share increases. - correct answer Penetration Pricing
A cellular phone carrier charges a premium price at the onset, but reduces the price of its phones over five years, following the natural product lifecycle. - correct answer Skimming Pricing
Price matching is one example. Some companies (such as cell phone carriers) give the customer a refund that covers competitors' fees, to convince them to switch carriers. - correct answer Competition Pricing
Wholesaling - correct answer The process of enabling the movement of merch from manufacturers to retailers.
Retailing - correct answer The process that enables the sale of products and services to end-use consumers, including business consumers and individuals at their homes.
Intermediary Functions - correct answer Transactional, Logistical, and Facilitating services that provide benefits to consumers.
Distribution Channels - correct answer Facilitate the movement and final sales of products and services to consumers.
Types of retailers - correct answer Walmart, Costco, Nordstrom, Macy's...
Pricing Metrics: Break Even Point - correct answer Total revenue and total cost are equal.
Pricing Metrics: ROI - correct answer Return on Investments = (Gain from Investment - Cost of Investment)/Cost of Investment
Demand Curves - correct answer Used to determine the effects on demand at different prices.
Price Elasticity - correct answer Measures price sensitivity providing a relationship between adjustments in price and the quantity demanded of a good or service.
Push Strategy - correct answer Producer PUSHES product or service onto consumers.
Pull Strategy - correct answer Consumers actively seek a product and PULL retailers to stock the product in response to the demand.
Integrated Marketing Communications (IMC) - correct answer All forms of communications and messages are carefully linked together.
Elements of the communication process - correct answer sender, encoding, channel, decode, receiver, feedback
Promotional Mix - correct answer Advertising (reach market), sales promotion (Bogos!), personal selling, public relations (improve image), direct marketing (mail, email...), digital marketing (internet)
Types of promotional budgets - correct answer Percentage of Sales: Estimates future spending based on past spending
Competitive Parity: Compares promotional activities to competitors
Objectives and Tasks: Go to marketing, "How much will this cost?"
All-You-Can Afford: Often used by small companies. Base promotion around budget
Elements of the creative process - correct answer Appeal: Rational and emotional (the central element of the message)
Execution: Method through which the appeal is presented
Types of sales promotions - correct answer Sales, coupons, contests, samples, bogos, etc...
Performance - correct answer Measures digital marketing
Elements of digital marketing - correct answer SEO, PPC, Data Analysis, Websites, Smartphone & Tablet Application, Video Marketing, Content Marketing, Social Media, A/B Marketing, Email Marketing, Audience Development
Types of personal selling - correct answer order taking, order getting, and customer sales
Stages of personal selling process - correct answer 1. Prospecting
2. Preapproach
3. Approach
4. Presentation
5. Close
6. Follow-up
Major functions of sales management - correct answer Sales plan formulation, sales plan implantation, evolution of the sales force.
Milton Friedman's famous maxim - correct answer "The social responsibility of business is to make a profit"
Website Metrics - correct answer Time on page, Bounce Rate, Website Visits, etc...
A/B Testing - correct answer The process of creating two or more versions of digital marketing assets, such as emails, web pages, and ads, in order to identify which version performs better.
AIDA Model - correct answer Helps marketers focus their communications. AIDA is an acronym for awareness, interest, desire, and action.
Agents - correct answer Businesses that do not take ownership of products but instead represent the interests of sellers or buyers.
All-You-Can-Afford - correct answer A method for creating a promotional budget that is often employed by small companies facing cash control issues that are not able to plan for promotional expenses. Frequently used by startup companies.
Bait-and-Switch - correct answer An illegal pricing practice whereby an advertised price is used as bait to lure consumers with the intention of switching their purchase to a higher priced item.
Bounce Rate - correct answer The percentage of users that leave a website after only visiting one page; the lower percentage, the better.
Competitive Parity - correct answer Method for creating a promotional budget by comparing the promotional activities of a company's competitors.
Decode - correct answer The act of interpreting the message
Disintermediation - correct answer Elimination of intermediaries in a distribution channel.
Drip Campaign - correct answer When an email campaign is sent to a user over a set period, often with more appealing offers and information as the campaign continues.
Encode - correct answer The process of ensuring that the message fits the media and conveys the intended information and motivation.
Execution - correct answer The method through which an appeal is presented in ways that will attract the attention and hold the interest of the receiver.
Facilitating Function - correct answer Specialized functions within a supply chain, such as access to capital and credit and grading and categorizing of goods.
Field of Experience - correct answer The response of the receiver to the message sent by the source.
Form Utility - correct answer Requires that the retailers make some physical changes in the goods.
Frequency - correct answer The number of ads that are to be communicated in a promotional campaign
Hierarchy of Effects - correct answer Depicts the consumer passing through various steps in sequential order from initial product awareness to the actual purchase.
IMC Strategy - correct answer Provides a consistent message across all promotional elements and considers the overall message that the company wants to leverage as part of their marketing communications.
Intermediary - correct answer A person or an organization that provides value by offering warehousing, transportation, marketing and sales, financing, and other services that facilitate distribution.
Landing Page - correct answer A targeted page on a website that focuses on a specific product or service with an inciting call to action.
Logistical Function - correct answer Warehousing and transporting of goods between manufacturers and intermediaries.
Loss-Leader Pricing - correct answer An item sold at less-than-market prices, often below cost, in order to lure consumers into a store to purchase other products.
Multichannel Distribution - correct answer Using a mix of direct and indirect channels to ensure that they reach different target markets using the most efficient methods.
Noise - correct answer Personal communications at work, home, among friends, and by other marketing messages that can prevent a marketing message from being received by the target audience.
Objectives and Tasks - correct answer A method marketers use when forming the promotional budget that takes into consideration all the marketing initiatives one might do within a certain timeframe, puts dollars to it, and provides a bottom line amount that ultimately helps the marketer better manage the budget.
Odd-Even Pricing - correct answer Price strategy where the price is just below the next round number.
Omni-Channel Distribution - correct answer A product is offered across all different types of retail outlets in order to saturate market coverage.
Order Getters - correct answer Front line sales person who tries to persuade customers to purchase
Oder Takers - correct answer Sales person who collects orders but does not attempt to find new customers/persuade existing customers
Penetration Pricing - correct answer Strategically setting a lower-than-market price in order to promote the brand.
Percentage of Sales - correct answer Method for creating a promotional budget that estimates future spending based on past percentage of sales. Typically used by companies and products that have been in the market for many years.
Performance Pressures - correct answer Often create an environment where ethics can be compromised.
-Click through Rate
-Cost Per Click (CPC)
-Cost Per Thousand (CPM)
Possession Utility - correct answer Achieved through a variety of payment methods
Reach - correct answer The portion of the target market that can possibly read, watch, hear, or view a particular advertisement based on the media vehicle chosen.
Sales-Force Automation - correct answer The technology used to aid the sales team in their sales efforts.
Search Engine Marketing - correct answer The combination of SEO and PPC under one umbrella term.
Search Engine Optimization - correct answer The act of making a website or webpage more visible through search engines without paid placements (i.e., organically).
Price Skimming - correct answer Strategically set higher-than-market price in order to take advantage of profits in the beginning of the product life cycle.
Source - correct answer A company or brand that sends a message to consumers.
Time Utility - correct answer Providing hours of operation that are convenient to shoppers.
Transactional Function - correct answer Buying and reselling physical goods and taking business risks associated with ownership of goods.
A/B Testing - correct answer Two variants of the same web page to different segments of website visitors at the same time and comparing which variant drives more conversions [Show Less]