MKT-315 FINAL EXAM WITH COMPLETE
SOLUTIONS
Profit Equation - correct answer-Total Revenue - Total Cost
Pricing Strategy: Penetration Pricing - correct answer-Low price to increase sales and market share.
Pricing Strategy: Skimming Pricing - correct answer-Starts out with a high price and slowly lowers it to fit
the market.
Pricing Strategy: Competition Pricing - correct 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. - 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
SOLUTIONS
Profit Equation - correct answer-Total Revenue - Total Cost
Pricing Strategy: Penetration Pricing - correct answer-Low price to increase sales and market share.
Pricing Strategy: Skimming Pricing - correct answer-Starts out with a high price and slowly lowers it to fit
the market.
Pricing Strategy: Competition Pricing - correct 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. - 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
