Comprehensive Module 3 Marketing and Sales Strategies Review

What is the definition of price?

The amount of money charged for a product or service.

Why does price matter in marketing?

It determines market share, profitability, and impacts customer perceptions of quality and value.

What is customer value-based pricing?

A pricing strategy based on buyers' perceptions of value rather than the seller's cost.

What are the two types of customer value-based pricing?

Good-Value Pricing and Value-Added Pricing.

What is good-value pricing?

Offers the right combination of quality and good service at a fair price.

What is value-added pricing?

Adds features or services to justify higher prices.

What is a common pricing mistake companies make?

Starting with cost instead of customer value.

What is the goal of maximum current profit pricing objective?

To maximize short-term profits.

What is market skimming?

Setting a very high initial price to 'skim' revenues from customers willing to pay more.

What is the definition of market penetration pricing?

Charging a low initial price to gain market share quickly.

What does price elasticity of demand measure?

How sensitive demand is to price changes.

What characterizes elastic demand?

Small price changes create large changes in demand.

What characterizes inelastic demand?

Demand changes very little when price changes.

What are fixed costs?

Costs that do not vary with production level.

What is cost-plus (markup) pricing?

Adding a standard markup to product cost.

What does break-even pricing aim to achieve?

Setting price to cover costs and achieve a target return.

What is competition-based pricing?

Setting prices based on competitors' prices and strategies.

What is perceived-value pricing?

Pricing based on customer perceptions of value.

What is psychological pricing?

Pricing that considers how customers emotionally respond to prices.

What is promotional pricing?

Temporarily reducing prices to increase short-term sales.

What is segmented pricing?

Selling the same product at different prices to different groups.

What is dynamic pricing?

Adjusting prices continuously based on customer and market conditions.

What is the purpose of a Marketing Information System (MIS)?

To gather, analyze, store, and distribute marketing information to help managers make better decisions.

What is competitive marketing intelligence?

Systematic collection and analysis of publicly available information about competitors and market developments.

What are the stages in the marketing research process?

1. Define the Problem and Objectives, 2. Develop the Research Plan, 3. Implement the Research Plan, 4. Interpret and Report Findings.

What is exploratory research?

Research used to gather preliminary information and develop hypotheses.

What is descriptive research?

Research used to describe characteristics, behaviors, or market conditions.

What are the common methods of qualitative research?

Focus groups, interviews, case studies, and publication searches.

What is causal research used for?

To test cause-and-effect relationships.

What is required to establish causality?

Concomitant variation, time order, and elimination of alternative explanations.

What does reliability in research refer to?

The consistency of research results.

What is internal validity?

The degree to which the independent variable actually caused changes in the dependent variable.

What is external validity?

The ability to generalize findings to other populations or settings.

What is observational research?

Research that involves directly observing people and situations.

What is the purpose of Customer Relationship Management (CRM)?

To manage detailed customer information to maximize loyalty.

What is a global firm?

A company that views the entire world as one market.

What is a tariff?

A tax placed on imported goods.

What is NAFTA?

North American Free Trade Agreement aimed at reducing trade barriers among the U.S., Canada, and Mexico.

What is the role of a salesperson?

To act for a company by prospecting, communicating, servicing, and gathering information.

What are the key characteristics of the sales force?

Uses two-way communication, effective in complex selling situations, builds customer relationships.

What is the workload approach in sales force management?

A method to determine sales force size based on workload requirements.

What are the elements of salesperson compensation?

Salary, bonus, commission, fringe benefits, and expense accounts.

What is the first step in the personal selling process?

Prospecting and qualifying potential customers.

What is the purpose of training salespeople?

To improve selling effectiveness and customer relationships.

What is the difference between primary and secondary data?

Primary data is collected specifically for the current problem; secondary data is already collected for another purpose.

What is a convenience sample?

A nonprobability sample where selection is not random.

What is the purpose of the World Trade Organization (WTO)?

To promote international trade and resolve trade disputes.

What is the significance of market skimming?

A pricing strategy that involves setting a high price initially and then lowering it over time.

What is the importance of political stability in international trade?

It affects economic development and investment decisions.

What is the purpose of handling objections in the selling process?

To address customer concerns and questions effectively.

What is the last step in the personal selling process?

Follow-up to ensure customer satisfaction after the sale.

What are the types of probability samples?

Simple random sample, stratified sample, and cluster sample.

What is the definition of a joint venture?

Partnering with a foreign company to conduct business.

What is the definition of a quota in trade terms?

A limit on the amount of goods imported.