Marketing 315 Final GCU
Profit equation Correct Answer: total revenue - total cost
skimming pricing strategy Correct Answer: start with high pricing, and lower it gradually to skim each
layer of consumers
Penetration pricing strategy Correct Answer: initial price is set relatively low with the objective of
building sales, market share, and profits quickly
competitive pricing Correct Answer: setting prices near to competition's pricing
wholesalers Correct Answer: Intermediaries who help to move goods between producers and retailers
by buying goods from producers and selling them to retailers
intermediary functions Correct Answer: - Transactional
• Ex: purchasing in large quantities
- Logistical
• Ex: storing or transporting products
- Facilitating
• Ex: access to capital and credit for supply chain partners
ROI Correct Answer: (gain from investment - cost of investment) / cost of investment
push strategy Correct Answer: uses aggressive personal selling and trade advertising to convince a
wholesaler or a retailer to carry and sell particular merchandise
pull strategy Correct Answer: stimulates consumer demand to obtain product distribution
Integrated Marketing Communications (IMC) Correct Answer: collective effort of all marketing
mechanisms within an organization to reinforce and support one another in order to achieve the desired
marketing goals
communication process Correct Answer: sender encodes message, sends through message channel,
receiver decodes message
promotional mix Correct Answer: Tools used to accomplish IMC, which include advertising, sales
promotion, personal selling, direct marketing, and public relations
sales promotion Correct Answer: uses incentives such as coupons, sweepstakes, contests, and loyalty
programs to get an immediate and measurable response
advertising Correct Answer: uses media (tv, newspaper, radio, etc.). not well targeted, but reach mass
markets
Profit equation Correct Answer: total revenue - total cost
skimming pricing strategy Correct Answer: start with high pricing, and lower it gradually to skim each
layer of consumers
Penetration pricing strategy Correct Answer: initial price is set relatively low with the objective of
building sales, market share, and profits quickly
competitive pricing Correct Answer: setting prices near to competition's pricing
wholesalers Correct Answer: Intermediaries who help to move goods between producers and retailers
by buying goods from producers and selling them to retailers
intermediary functions Correct Answer: - Transactional
• Ex: purchasing in large quantities
- Logistical
• Ex: storing or transporting products
- Facilitating
• Ex: access to capital and credit for supply chain partners
ROI Correct Answer: (gain from investment - cost of investment) / cost of investment
push strategy Correct Answer: uses aggressive personal selling and trade advertising to convince a
wholesaler or a retailer to carry and sell particular merchandise
pull strategy Correct Answer: stimulates consumer demand to obtain product distribution
Integrated Marketing Communications (IMC) Correct Answer: collective effort of all marketing
mechanisms within an organization to reinforce and support one another in order to achieve the desired
marketing goals
communication process Correct Answer: sender encodes message, sends through message channel,
receiver decodes message
promotional mix Correct Answer: Tools used to accomplish IMC, which include advertising, sales
promotion, personal selling, direct marketing, and public relations
sales promotion Correct Answer: uses incentives such as coupons, sweepstakes, contests, and loyalty
programs to get an immediate and measurable response
advertising Correct Answer: uses media (tv, newspaper, radio, etc.). not well targeted, but reach mass
markets
