MARKETING TEST II QUESTIONS AND ANSWERS
Market Development Stategy - CORRECT ANSWER✅✅Market development is a growth strategy that
identifies and develops new market segments for current products. A market development strategy
targets non-buying customers in currently targeted segments. It also targets new customers in new
segments.
Product Development Strategy - CORRECT ANSWER✅✅This strategy is employed when a company's
existing market is saturated, and revenues and profits are stagnant or falling. There is little or no
opportunity for growth. A product development diversification strategy takes a company outside its
existing business and a new product is developed for a new market
Diversification stategy - CORRECT ANSWER✅✅Diversification is a corporate strategy to enter into a
new market or industry which the business is not currently in, whilst also creating a new product for that
new market.
push strategies - CORRECT ANSWER✅✅A push promotional strategy involves taking the product
directly to the customer via whatever means, ensuring the customer is aware of your brand at the point
of purchase. "Taking the product to the customer"
pull strategies - CORRECT ANSWER✅✅A pull strategy motivates customers to actively seek out a
specific product and it best for new products or in the case when a manufacturer has a strong and
visible brand.
Skimming Pricing strategy - CORRECT ANSWER✅✅Price skimming is a pricing strategy in which a
marketer sets a relatively high price for a product or service at first, then lowers the price over time. It is
a temporal version of price discrimination/yield management.
Penetration Pricing - CORRECT ANSWER✅✅Penetration pricing is a pricing strategy where the price of a
product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth. The
strategy works on the expectation that customers will switch to the new brand because of the lower
price.
Inelastic demand - CORRECT ANSWER✅✅A situation in which the demand for a product does not
increase or decrease correspondingly with a fall or rise in its price. From the supplier's viewpoint, this is
a highly desirable situation because price and total revenue are directly related; an increase in price
, increases total revenue despite a fall in the quantity demanded. An example of a product with inelastic
demand is gasoline.
elastic demand - CORRECT ANSWER✅✅modest price changes result in large changes in quantity
purchased
unstable - CORRECT ANSWER✅✅An unstable equilibrium exists if a model or system does not gravitate
back to equilibrium after it is shocked. The analogy is much like a marble resting on top of an upside-
down bowl. Should the marble be nudged a bit, then it roles off the bowl and down the side. It does not
return to its position of rest, but moves away.
seasonality - CORRECT ANSWER✅✅Seasonality is typically measured by the quantity of interest for
small time intervals, such as days, weeks, months or quarters.
intensive distribution - CORRECT ANSWER✅✅A marketing strategy under which a company sells
through as many outlets as possible, so that the consumers encounter the product virtually everywhere
they go: supermarkets, drug stores, gas stations, and the like. Soft drinks are generally made available
through intensive distribution.
sales promotions - CORRECT ANSWER✅✅Sales promotion is the process of persuading a potential
customer to buy the product. Sales promotion is designed to be used as a short-term tactic to boost
sales - it is rarely suitable as a method of building long-term customer loyalty. Some sales promotions
are aimed at consumers.
opinion leaders - CORRECT ANSWER✅✅In terms of marketing, opinion leaders are individuals who can
influence the purchasing decisions of others
innovators - CORRECT ANSWER✅✅In the diffusion of innovation theory, the group which is the first to
try new ideas, processes, goods and services. Although least numerous (typically 2 percent of the
population) the members of this most venturesome group are urbane, have money (to take risks) and
higher education, are attracted to change and new experiences, and use multiple information sources
for making a purchase decision. Innovators are followed by early adopters, early majority, late majority,
and laggards, in that order.
Market Development Stategy - CORRECT ANSWER✅✅Market development is a growth strategy that
identifies and develops new market segments for current products. A market development strategy
targets non-buying customers in currently targeted segments. It also targets new customers in new
segments.
Product Development Strategy - CORRECT ANSWER✅✅This strategy is employed when a company's
existing market is saturated, and revenues and profits are stagnant or falling. There is little or no
opportunity for growth. A product development diversification strategy takes a company outside its
existing business and a new product is developed for a new market
Diversification stategy - CORRECT ANSWER✅✅Diversification is a corporate strategy to enter into a
new market or industry which the business is not currently in, whilst also creating a new product for that
new market.
push strategies - CORRECT ANSWER✅✅A push promotional strategy involves taking the product
directly to the customer via whatever means, ensuring the customer is aware of your brand at the point
of purchase. "Taking the product to the customer"
pull strategies - CORRECT ANSWER✅✅A pull strategy motivates customers to actively seek out a
specific product and it best for new products or in the case when a manufacturer has a strong and
visible brand.
Skimming Pricing strategy - CORRECT ANSWER✅✅Price skimming is a pricing strategy in which a
marketer sets a relatively high price for a product or service at first, then lowers the price over time. It is
a temporal version of price discrimination/yield management.
Penetration Pricing - CORRECT ANSWER✅✅Penetration pricing is a pricing strategy where the price of a
product is initially set low to rapidly reach a wide fraction of the market and initiate word of mouth. The
strategy works on the expectation that customers will switch to the new brand because of the lower
price.
Inelastic demand - CORRECT ANSWER✅✅A situation in which the demand for a product does not
increase or decrease correspondingly with a fall or rise in its price. From the supplier's viewpoint, this is
a highly desirable situation because price and total revenue are directly related; an increase in price
, increases total revenue despite a fall in the quantity demanded. An example of a product with inelastic
demand is gasoline.
elastic demand - CORRECT ANSWER✅✅modest price changes result in large changes in quantity
purchased
unstable - CORRECT ANSWER✅✅An unstable equilibrium exists if a model or system does not gravitate
back to equilibrium after it is shocked. The analogy is much like a marble resting on top of an upside-
down bowl. Should the marble be nudged a bit, then it roles off the bowl and down the side. It does not
return to its position of rest, but moves away.
seasonality - CORRECT ANSWER✅✅Seasonality is typically measured by the quantity of interest for
small time intervals, such as days, weeks, months or quarters.
intensive distribution - CORRECT ANSWER✅✅A marketing strategy under which a company sells
through as many outlets as possible, so that the consumers encounter the product virtually everywhere
they go: supermarkets, drug stores, gas stations, and the like. Soft drinks are generally made available
through intensive distribution.
sales promotions - CORRECT ANSWER✅✅Sales promotion is the process of persuading a potential
customer to buy the product. Sales promotion is designed to be used as a short-term tactic to boost
sales - it is rarely suitable as a method of building long-term customer loyalty. Some sales promotions
are aimed at consumers.
opinion leaders - CORRECT ANSWER✅✅In terms of marketing, opinion leaders are individuals who can
influence the purchasing decisions of others
innovators - CORRECT ANSWER✅✅In the diffusion of innovation theory, the group which is the first to
try new ideas, processes, goods and services. Although least numerous (typically 2 percent of the
population) the members of this most venturesome group are urbane, have money (to take risks) and
higher education, are attracted to change and new experiences, and use multiple information sources
for making a purchase decision. Innovators are followed by early adopters, early majority, late majority,
and laggards, in that order.
