MKT-315 2022 FINAL EXAM
Profit Equation Correct Answer: Total Revenue - Total Cost
Pricing Strategy: Penetration Pricing Correct Answer: Low price to increase sales and 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"
Profit Equation Correct Answer: Total Revenue - Total Cost
Pricing Strategy: Penetration Pricing Correct Answer: Low price to increase sales and 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"
