MKT-315 FINAL EXAM Questions With
Correct Answers
Profit Equation - answerTotal Revenue - Total Cost
Pricing Strategy: Penetration Pricing - answerLow price to increase sales and market share.
Pricing Strategy: Skimming Pricing - answerStarts out with a high price and slowly lowers it to
fit t...
Profit Equation - answer✔Total Revenue - Total Cost
Pricing Strategy: Penetration Pricing - answer✔Low price to increase sales and market share.
Pricing Strategy: Skimming Pricing - answer✔Starts out with a high price and slowly lowers it to
fit the market.
Pricing Strategy: Competition Pricing - 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. - 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. - 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. -
answer✔Competition Pricing
Wholesaling - answer✔The process of enabling the movement of merch from manufacturers to
retailers.
Retailing - 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 - answer✔Transactional, Logistical, and Facilitating services that provide
benefits to consumers.
Distribution Channels - answer✔Facilitate the movement and final sales of products and
services to consumers.
Types of retailers - answer✔Walmart, Costco, Nordstrom, Macy's...
Pricing Metrics: Break Even Point - answer✔Total revenue and total cost are equal.
Pricing Metrics: ROI - answer✔Return on Investments = (Gain from Investment - Cost of
Investment)/Cost of Investment
Demand Curves - answer✔Used to determine the effects on demand at different prices.
Price Elasticity - answer✔Measures price sensitivity providing a relationship between
adjustments in price and the quantity demanded of a good or service.
Push Strategy - answer✔Producer PUSHES product or service onto consumers.
Pull Strategy - answer✔Consumers actively seek a product and PULL retailers to stock the
product in response to the demand.
Integrated Marketing Communications (IMC) - answer✔All forms of communications and
messages are carefully linked together.
Elements of the communication process - answer✔sender, encoding, channel, decode, receiver,
feedback
Promotional Mix - answer✔Advertising (reach market), sales promotion (Bogos!), personal
selling, public relations (improve image), direct marketing (mail, email...), digital marketing
(internet)
Types of promotional budgets - 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 - answer✔Appeal: Rational and emotional (the central
element of the message)
Execution: Method through which the appeal is presented
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