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MGT103 Final Exam |63 Questions with 100% Correct Answers
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MGT103 Final Exam |63 Questions with 100% Correct Answers
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MGT103 Final Exam |63 Questionswith 100% Correct Answers
Price - ✔ ✔ The assignment of value, or the amount the consumer must exchange to receive
the offering (Includes money, goods, services, favors, votes, opportunity costs or anything else
that has value to the other party)
= list price - (incentives + allowances) + extra fees
Price Planning Process - ✔ ✔ 1. set pricing objectives (objectives like profit, market share, and
survival; Constraints like demand for product class and brand, newness, costs, and competition)
2. estimate demand (Demand estimation, Sales revenue estimation, Price elasticity estimation)
3. determine costs examine the pricing environment (Cost estimation, Marginal analysis
in relation to profit, Break-even analysis, in relation to profit)
4. Choose a pricing strategy (Demand- oriented approaches, Cost- oriented approaches,
Profit-oriented approaches, Competition- oriented approaches)
5. develop pricing tactics (Fixed price or dynamic price, Company, customer, and
competitive effects, Incremental costs and revenue)
6. Make special adjustments to list or quoted price (Discounts, Allowances,
Geographical adjustments)
Demand and Demand Curves - ✔ ✔ -maps price relative to demand (Price =y axis, Demand =
x axis)
-normally inversely proportional (demand goes down as price goes up)
Price Elasticity - ✔ ✔ small change in price results in a large demand shift
,(more horizontal demand curves are less elastic)
PED > 1 if elastic
Price Elasticity of Demand = % change in quantity demanded / % change in price
Price Inelasticity - ✔ ✔ small change in price results in a small demand shift (more
vertical demand curves are less elastic)
PED < 1 if inelastic
Price Elasticity of Demand = % change in quantity demanded / % change in price
Fixed Costs - ✔ ✔ set costs that do not vary in relationship to production volume
Variable Costs - ✔ ✔ varying cost depending on number of units produced
Breakeven Analysis - ✔ ✔ = fixed cost/(price-variable cost)
- amount you have to sell to break even
Environmental Scan for Price - ✔ ✔ Economic Environment, Broad economic trends,
Competitive Environment, Industry structure, Government Regulation, Consumer Trends,
International Environment, Exchange Rates
Promotion - ✔ ✔ The coordination of marketing communication efforts to influence attitudes
or behavior
Marketing communications purpose:
• Inform
• Remind
• Persuade
• Build relationships
, One-to-Many Model - ✔ ✔ Advertising
-Definition: Nonpersonal communication from
an identified sponsor using mass media
-Types of Advertising: product, institutional,
retail and local
-Crowdsourcing: A practice in which firms
outsource marketing activities (such as
selecting an ad) to a community of users
- Branded Entertainment: Traditional and
Digital Media
Public Relations
-Definition: Communication activities that
create or maintain a positive image of a firm
and its products
- Advantages & Disadvantages: ?????????
-Objectives and Tactics of PR: Introduce new
products, influence govt. Legislation, enhance
image of co./city/region/country,
advice/counsel, draw attention to firm
involvement in community
Sales Promotion
- Definition: Contests, coupons, and
other incentives designed to build
interest or encourage product purchase
during a specified period
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