LEVEL 3 DIGITAL MARKETING KM2
EXAM REVISION QUESTIONS &
VERIFIED CORRECT ANSWERS
PASSED
Marketing Mix - Correct Answer ✔✔ Comprised of the 7Ps: Product, Place, Price,
Promotion, People, Process, Physical Evidence.
Promotion - Correct Answer ✔✔ The marketing methods used to communicate with
consumers.
Process - Correct Answer ✔✔ This step refers to the delivery of your product or service
to a customer. Maps need to made to outline functions, activities, tasks, and processes.
Place - Correct Answer ✔✔ Where a product is made, viewed in ads, distributed, and
sold.
People - Correct Answer ✔✔ Those who you are selling and advertising to, as well as
staff, salespeople, customer service teams, and anyone involved in the marketing and
sales processes.
Physical Evidence - Correct Answer ✔✔ Something that evokes consumer's senses to
confirm that they have gotten a product or service, even if it is just the receipt; a tangible
item validates the experience of purchasing and fosters a sense of value from that
purchase.
Product Lifecycle - Correct Answer ✔✔ Comprised of 4 stages: introduction, growth,
maturity and decline.
Introduction - Correct Answer ✔✔ The first stage once a product has been developed;
the product is being released into the market. Often a high-stakes time in the product's
life cycle, marketing and promotion are at a high.
Growth - Correct Answer ✔✔ Consumers are taking to the product and increasingly
buying it. The product concept is proven and is becoming more popular - and sales are
increasing.
Other companies become aware of the product and its space in the market, beginning
to draw attention and increasingly pull in revenue. If competition for the product is
especially high, the company may still heavily invest in advertising and promotion of the
product to beat out competitors. Marketing in this stage is aimed at increasing the
product's market share.
, Maturity - Correct Answer ✔✔ Sales tend to slow or even stop - signaling a largely
saturated market. At this point, sales can even start to drop. Pricing at this stage can
tend to get competitive, signaling margin shrinking as prices begin falling due to the
weight of outside pressures like competition or lower demand. Marketing at this point is
targeted at fending off competition, and companies will often develop new or altered
products to reach different market segments. In this stage, saturation is reached and
sales volume is maxed out. Companies often begin innovating to maintain or increase
their market share, changing or developing their product to meet with new
demographics or developing technologies.
Decline - Correct Answer ✔✔ Product sales drop significantly and consumer behavior
changes as there is less demand for the product. The company's product loses more
and more market share, and competition tends to cause sales to deteriorate. Marketing
in this stage stage is often minimal or targeted at already loyal customers, and prices
are reduced. Eventually, the product will be retired out of the market unless it is able to
redesign itself to remain relevant or in-demand.
Relationship Marketing - Correct Answer ✔✔ A strategy designed to foster customer
loyalty, interaction and long-term engagement. It is designed to develop strong
connections with customers by providing them with information directly suited to their
needs and interests and by promoting open communication.
Benefits of Relationship Marketing - Correct Answer ✔✔ - Returning customers often
purchase more than first-time customers.
- Many customers who have a relationship with a brand will purchase upcoming
products because of the past values experienced in previous purchases.
- People leave reviews for brands and businesses when an experience goes beyond
their expectations.
- Creates personal connections.
- Brands and businesses receive honest insights from invested people.
- Gives an organization an out to be able to keep a customer. This is because customer
contacts are at the forefront of this marketing effort.
- Multiple avenues of relationship building available today: social media, in-person
contacts, direct mail contacts, etc
Cons of Relationship Marketing - Correct Answer ✔✔ - New customers are treated as a
secondary commodity.
- Negative information can ruin a relationship marketing campaign.
- Takes time to be effective
- Value propositions change over time, so the marketing efforts need to change too.
- Can require a culture change.
Market Research - Correct Answer ✔✔ The action or activity of gathering information
about consumers' needs and preferences.
EXAM REVISION QUESTIONS &
VERIFIED CORRECT ANSWERS
PASSED
Marketing Mix - Correct Answer ✔✔ Comprised of the 7Ps: Product, Place, Price,
Promotion, People, Process, Physical Evidence.
Promotion - Correct Answer ✔✔ The marketing methods used to communicate with
consumers.
Process - Correct Answer ✔✔ This step refers to the delivery of your product or service
to a customer. Maps need to made to outline functions, activities, tasks, and processes.
Place - Correct Answer ✔✔ Where a product is made, viewed in ads, distributed, and
sold.
People - Correct Answer ✔✔ Those who you are selling and advertising to, as well as
staff, salespeople, customer service teams, and anyone involved in the marketing and
sales processes.
Physical Evidence - Correct Answer ✔✔ Something that evokes consumer's senses to
confirm that they have gotten a product or service, even if it is just the receipt; a tangible
item validates the experience of purchasing and fosters a sense of value from that
purchase.
Product Lifecycle - Correct Answer ✔✔ Comprised of 4 stages: introduction, growth,
maturity and decline.
Introduction - Correct Answer ✔✔ The first stage once a product has been developed;
the product is being released into the market. Often a high-stakes time in the product's
life cycle, marketing and promotion are at a high.
Growth - Correct Answer ✔✔ Consumers are taking to the product and increasingly
buying it. The product concept is proven and is becoming more popular - and sales are
increasing.
Other companies become aware of the product and its space in the market, beginning
to draw attention and increasingly pull in revenue. If competition for the product is
especially high, the company may still heavily invest in advertising and promotion of the
product to beat out competitors. Marketing in this stage is aimed at increasing the
product's market share.
, Maturity - Correct Answer ✔✔ Sales tend to slow or even stop - signaling a largely
saturated market. At this point, sales can even start to drop. Pricing at this stage can
tend to get competitive, signaling margin shrinking as prices begin falling due to the
weight of outside pressures like competition or lower demand. Marketing at this point is
targeted at fending off competition, and companies will often develop new or altered
products to reach different market segments. In this stage, saturation is reached and
sales volume is maxed out. Companies often begin innovating to maintain or increase
their market share, changing or developing their product to meet with new
demographics or developing technologies.
Decline - Correct Answer ✔✔ Product sales drop significantly and consumer behavior
changes as there is less demand for the product. The company's product loses more
and more market share, and competition tends to cause sales to deteriorate. Marketing
in this stage stage is often minimal or targeted at already loyal customers, and prices
are reduced. Eventually, the product will be retired out of the market unless it is able to
redesign itself to remain relevant or in-demand.
Relationship Marketing - Correct Answer ✔✔ A strategy designed to foster customer
loyalty, interaction and long-term engagement. It is designed to develop strong
connections with customers by providing them with information directly suited to their
needs and interests and by promoting open communication.
Benefits of Relationship Marketing - Correct Answer ✔✔ - Returning customers often
purchase more than first-time customers.
- Many customers who have a relationship with a brand will purchase upcoming
products because of the past values experienced in previous purchases.
- People leave reviews for brands and businesses when an experience goes beyond
their expectations.
- Creates personal connections.
- Brands and businesses receive honest insights from invested people.
- Gives an organization an out to be able to keep a customer. This is because customer
contacts are at the forefront of this marketing effort.
- Multiple avenues of relationship building available today: social media, in-person
contacts, direct mail contacts, etc
Cons of Relationship Marketing - Correct Answer ✔✔ - New customers are treated as a
secondary commodity.
- Negative information can ruin a relationship marketing campaign.
- Takes time to be effective
- Value propositions change over time, so the marketing efforts need to change too.
- Can require a culture change.
Market Research - Correct Answer ✔✔ The action or activity of gathering information
about consumers' needs and preferences.
