Marketing 300 Exam 4 Review

Vocabulary flashcards covering pricing strategies, digital marketing concepts, retailing models, and channel management from Marketing 300 Exam 4.

Price Elasticity

The measure of responsiveness in demand determined by marketers through analyzing changes in quantities sold as prices change.

Earned Media

Unpaid publicity or exposure generated by third parties, such as an article mentioning Culverhouse College of Business in The Wall Street Journal or customer reviews posted on Yelp and TripAdvisor.

Category Management

A retail strategy for managing groups of similar products in a coordinated way, typically resulting in similar types of products being displayed together in grocery and department stores.

Interactivity

Two-way communication between companies and consumers, such as Rockwell's online engineering forums and virtual user groups, or Hertz's real-time communication on X and Facebook.

Dropship Retail Model

A retail model where the store never takes physical possession of or directly delivers the products that customers purchase.

Negative Markup

A pricing approach where a retailer loses money on the sale of a product, commonly used to retain regular shoppers and keep them coming back.

Low-Price Leader

A competitive strategy that can only succeed over the long term if the company remains consistently the low-cost seller in its industry.

Blacklist

A designated set of inappropriate or extreme websites created by marketers to specifically avoid displaying their digital advertisements on them.

Whitelist

A list of approved websites designated by marketers where their digital advertisements are allowed to appear.

Relatively Inelastic Demand

A market condition, such as in the beer category, where sellers can raise prices by a certain percentage and experience a smaller percentage decline in demand.

Addressability

The capability of digital marketers to identify consumers and track their specific interests or behaviors—using search data, cookies, or saved alerts—to provide targeted recommendations.

Differential Pricing

The practice of charging different prices to different buyers for essentially the same product or service, such as different ticket prices for two coach seats on the same airline flight.

Price Skimming

A pricing strategy in which marketers set a high initial price when introducing a product and then progressively lower the price over time.

Shrinkflation

A practice during inflationary periods in which companies reduce the volume of product inside packages while keeping the retail price relatively unchanged.

Programmatic Advertising

The use of automated software to buy and manage digital display advertising on websites.

First-Party Cookies

Tracking files created directly by the website a consumer visits that store data such as usernames, passwords, delivery preferences, and shopping cart items.

Franchisor

The parent firm (such as Burger King) that grants business operating rights, allowing the brand to expand quickly without substantial capital investment of its own.

Franchisee

An individual or business entity that enters into an agreement to own and operate an individual store or restaurant location under a franchisor's brand.

Cross-Device Targeting

A marketing strategy designed to deliver coordinated advertising to consumers across multiple network-connected devices and digital platforms.

Hypermarket

A large-scale retail format featuring an extensive range of diverse merchandise under one roof, such as the store format introduced in Kenya.

Lead Conversion Rate

The percentage of website visitors who complete a specific desired action, such as submitting a contact form to request product information.

Secondary Market

A supply channel where discount retailers acquire returned, discontinued, or clearance merchandise to offer lower-priced products to shoppers.

Paid Media

Marketing channels that an organization directly pays for, such as paying search engines to feature a business at the top of search result listings.

Penetration Pricing

A pricing strategy focused on setting lower prices to build sales volume and market share rather than maximizing short-term profit margins.

Click-Through Rate (CTR)

A digital metric measuring the proportion of ad impressions that result in clicks, such as receiving 450 clicks from 30,000 ad impressions.

Prestige-Product Demand Curve

A demand relationship where demand initially increases as price increases due to perceived status or quality, up to a certain point, after which demand declines.

Owned Media

Media channels controlled directly by an organization through its own investments of time and money, such as company websites, brand social media accounts, and branded podcasts.