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LSUS Chen- MBA 706 Module 4- Test Questions and Answers
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LSUS Chen- MBA 706 Module 4- Test Questions and Answers
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LSUS Chen- MBA 706 Module 4- Test Questions andAnswers
Pricing to reflect product differentiation CORRECT ANS-Prices are set differently for each
market segment and to create different perceptions of their product's value
ex: car manufacturers
Market skimming CORRECT ANS-Firms enter the market with a high price nd gradually
lowers the price to gain more customer's
ex: high-tech products
Market penetration CORRECT ANS-Prices are set low to generate high sales revenue and
keep competitors away
ex: Japanese car manufacturers selling low-priced but reliable cars in US during 60s-70s
Early cash recovery CORRECT ANS-Prices are set to generate a high cash flow to solve
problems of liquidity
Discouraging others from entering the market: CORRECT ANS-Prices are set low as a
barrier to entry which also signals the possibility of price war
Place: Channel management - key decision areas CORRECT ANS-- formulate channel
strategy
- design channel structure
- select channel members
- motivate channel members
- coordinate channel strategy with the marketing mix
- evaluate channel member performance
, LSUS Chen- MBA 706 Module 4- Test Questions and
Answers
Formulate channel strategy CORRECT ANS-- objectives: how, when, and where the
company offering should be made available to the target markets
- importance of a channel strategy depends on whether:
::distribution is important to target market
::distribution can provide a differential advantage over competitors
;; Distribution may become a competitive vulnerability
;; Channel coordination may become a competitive advantage
Design Channel Structure: 3 channel options CORRECT ANS-- Direct marketing
- sales force
- intermediary marketing channel
Intermediary Marketing channel CORRECT ANS-- merchants
- agents
-Facilitators
ex: P&G
Channel Management Design Channel structure (3 strategies) CORRECT ANS-- Intensive
distribution
- Selective distribution
- Exclusive distribution
Intensive distribution: CORRECT ANS-used for products of high value, low value, mass
demand
Ex: soft drinks
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