MARKETING 240 UPDATED EXAMS TEST PAPER
QUESTIONS AND ANSWERS SURE A+
✔✔Price - ✔✔higher price signals price skimming, lower price signals penetration
pricing
✔✔Promotion - ✔✔customer needs information, education, and opportunities to
experience. This may be a product category rather than an actual product. Heavy public
relations to est cred. Sales promotion encourages selling and personal selling helps w
education
✔✔Business position - ✔✔early adopters+early majority, adoption rates are increasing
and increasing in slope. First profits and reinvest into growth. Starting to experience
economies of scale and competition increases
✔✔Distribution (place) - ✔✔grow distribution to meet demand and customer
preferences. There is high investment needed
✔✔Marketing - ✔✔defend, maintain and steal, heavy advertising bc brand loyalty is
important and need brand differentiation. Sales promotion to incentivize switches. Price
wars
, ✔✔Innovation - ✔✔incremental and sustaining innovation to maintain market share.
Hope for a cash cow
✔✔Decline innovation - ✔✔late majority and laggards. Decline in sales volume,
popularity falls, profitability shrinks, and termination
✔✔Diffusion of innovation - ✔✔the process by which the use of an innovation spreads
throughout a market group over time and over various categories of adopters
✔✔Pioneers - ✔✔New product introductions that establish a completely new market or
radically change both the rules of competition and consumer preferences in a market.
Also called breakthroughs.
✔✔Breakthroughs - ✔✔New product introductions that establish a completely new
market or radically change both the rules of competition and consumer preferences in a
market.
✔✔First movers - ✔✔Product pioneers that are the first to create a market or product
category, making them readily recognizable to consumers and thus establishing a
commanding and early market share lead.
✔✔Innovators (2.5%) - ✔✔Those buyers who want to be the first to have the new
product or service.
✔✔Early adopters (13.5%) - ✔✔The second group of consumers to use a product or
service innovation. They generally don't like to take as much risk as innovators but
instead wait and purchase the product after careful review.
✔✔Early majority (34%) - ✔✔Members don't like to take much risk and therefore tend to
wait until bugs are worked out of a particular product or service; few new products and
services can be profitable until this large group buys them.
✔✔Late majority (34%) - ✔✔The last group of buyers to enter a new product market.
When they do, the product has achieved its full market potential.
✔✔Laggards (16%) - ✔✔Consumers who like to avoid change and rely on traditional
products until they are no longer available. Sometimes laggards never adopt a product
or service.
✔✔Relative advantage - ✔✔if a product or service is perceived to be better than
substitutes, then the diffusion will be relatively quick. Competes w other innovations
serving the same purpose
QUESTIONS AND ANSWERS SURE A+
✔✔Price - ✔✔higher price signals price skimming, lower price signals penetration
pricing
✔✔Promotion - ✔✔customer needs information, education, and opportunities to
experience. This may be a product category rather than an actual product. Heavy public
relations to est cred. Sales promotion encourages selling and personal selling helps w
education
✔✔Business position - ✔✔early adopters+early majority, adoption rates are increasing
and increasing in slope. First profits and reinvest into growth. Starting to experience
economies of scale and competition increases
✔✔Distribution (place) - ✔✔grow distribution to meet demand and customer
preferences. There is high investment needed
✔✔Marketing - ✔✔defend, maintain and steal, heavy advertising bc brand loyalty is
important and need brand differentiation. Sales promotion to incentivize switches. Price
wars
, ✔✔Innovation - ✔✔incremental and sustaining innovation to maintain market share.
Hope for a cash cow
✔✔Decline innovation - ✔✔late majority and laggards. Decline in sales volume,
popularity falls, profitability shrinks, and termination
✔✔Diffusion of innovation - ✔✔the process by which the use of an innovation spreads
throughout a market group over time and over various categories of adopters
✔✔Pioneers - ✔✔New product introductions that establish a completely new market or
radically change both the rules of competition and consumer preferences in a market.
Also called breakthroughs.
✔✔Breakthroughs - ✔✔New product introductions that establish a completely new
market or radically change both the rules of competition and consumer preferences in a
market.
✔✔First movers - ✔✔Product pioneers that are the first to create a market or product
category, making them readily recognizable to consumers and thus establishing a
commanding and early market share lead.
✔✔Innovators (2.5%) - ✔✔Those buyers who want to be the first to have the new
product or service.
✔✔Early adopters (13.5%) - ✔✔The second group of consumers to use a product or
service innovation. They generally don't like to take as much risk as innovators but
instead wait and purchase the product after careful review.
✔✔Early majority (34%) - ✔✔Members don't like to take much risk and therefore tend to
wait until bugs are worked out of a particular product or service; few new products and
services can be profitable until this large group buys them.
✔✔Late majority (34%) - ✔✔The last group of buyers to enter a new product market.
When they do, the product has achieved its full market potential.
✔✔Laggards (16%) - ✔✔Consumers who like to avoid change and rely on traditional
products until they are no longer available. Sometimes laggards never adopt a product
or service.
✔✔Relative advantage - ✔✔if a product or service is perceived to be better than
substitutes, then the diffusion will be relatively quick. Competes w other innovations
serving the same purpose
