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?"
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