MKT 315 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS| LATEST UPDATE
GUARANTEED SUCCESS
Profit Equation Total Revenue - Total Cost
Pricing Strategy: Penetration Pricing Low price to increase sales and market share.
Pricing Strategy: Skimming Pricing Starts out with a high price and slowly lowers it to fit the
market.
Pricing Strategy: Competition Pricing 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. 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. 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. Competition
Pricing
Wholesaling The process of enabling the movement of merch from manufacturers to
retailers.
Retailing The process that enables the sale of products and services to end-use consumers,
including business consumers and individuals at their homes.
Intermediary Functions Transactional, Logistical, and Facilitating services that provide
benefits to consumers.
, Distribution Channels Facilitate the movement and final sales of products and services to
consumers.
Types of retailers Walmart, Costco, Nordstrom, Macy's...
Pricing Metrics: Break Even Point Total revenue and total cost are equal.
Pricing Metrics: ROI Return on Investments = (Gain from Investment - Cost of
Investment)/Cost of Investment
Demand Curves Used to determine the effects on demand at different prices.
Price Elasticity Measures price sensitivity providing a relationship between adjustments in
price and the quantity demanded of a good or service.
Push Strategy Producer PUSHES product or service onto consumers.
Pull Strategy Consumers actively seek a product and PULL retailers to stock the product in
response to the demand.
Integrated Marketing Communications (IMC) All forms of communications and messages are
carefully linked together.
Elements of the communication process sender, encoding, channel, decode, receiver,
feedback
Promotional Mix Advertising (reach market), sales promotion (Bogos!), personal selling,
public relations (improve image), direct marketing (mail, email...), digital marketing (internet)
GUARANTEED SUCCESS
Profit Equation Total Revenue - Total Cost
Pricing Strategy: Penetration Pricing Low price to increase sales and market share.
Pricing Strategy: Skimming Pricing Starts out with a high price and slowly lowers it to fit the
market.
Pricing Strategy: Competition Pricing 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. 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. 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. Competition
Pricing
Wholesaling The process of enabling the movement of merch from manufacturers to
retailers.
Retailing The process that enables the sale of products and services to end-use consumers,
including business consumers and individuals at their homes.
Intermediary Functions Transactional, Logistical, and Facilitating services that provide
benefits to consumers.
, Distribution Channels Facilitate the movement and final sales of products and services to
consumers.
Types of retailers Walmart, Costco, Nordstrom, Macy's...
Pricing Metrics: Break Even Point Total revenue and total cost are equal.
Pricing Metrics: ROI Return on Investments = (Gain from Investment - Cost of
Investment)/Cost of Investment
Demand Curves Used to determine the effects on demand at different prices.
Price Elasticity Measures price sensitivity providing a relationship between adjustments in
price and the quantity demanded of a good or service.
Push Strategy Producer PUSHES product or service onto consumers.
Pull Strategy Consumers actively seek a product and PULL retailers to stock the product in
response to the demand.
Integrated Marketing Communications (IMC) All forms of communications and messages are
carefully linked together.
Elements of the communication process sender, encoding, channel, decode, receiver,
feedback
Promotional Mix Advertising (reach market), sales promotion (Bogos!), personal selling,
public relations (improve image), direct marketing (mail, email...), digital marketing (internet)
