Exam 3 Marketing Dr Gleim

What is price in marketing?

The amount of money charged for a product or service.

Why do many bad pricing decisions occur, according to McKinsey?

Because companies often charge too little.

What should companies sell instead of price?

Value.

What are nonmonetary costs?

Non-financial sacrifices like time, effort, and risk.

What are the four primary factors influencing price setting?

Customer perceptions, company costs, market characteristics, and competition.

What are fixed costs?

Costs that do not change with production volume (e.g., rent, salaries).

What are variable costs?

Costs that vary with the production level (e.g., raw materials).

What is breakeven analysis?

A method to determine the number of units that must be sold to cover costs.

What is elastic demand?

When a small price change causes a large change in demand.

What is price skimming?

Introducing a product at a high price and lowering it over time.

What is penetration pricing?

Introducing a product at a low price to gain market share.

What is price discrimination?

Charging different prices to different customers for the same product.

What is the promotion mix?

A set of tools including advertising, sales promotion, PR, personal selling, and direct/digital marketing.

What does IMC stand for?

Integrated Marketing Communications.

What is the hierarchy of effects model?

A model showing the steps from awareness to action in consumer decision-making.

What are sales-related promotion objectives?

Objectives tied to actual sales volume during/after a campaign.

What are communication objectives?

Goals that measure how well information is conveyed to the audience.

What are the pros of group promotion?

Broad reach, quick targeting, and lower cost per exposure.

What are the cons of group promotion?

High noise, difficulty in measuring effectiveness, and one-way communication.

What is institutional advertising?

Advertising aimed at building a positive company image.

What is pioneering advertising?

Advertising that promotes a new product category.

What is comparative advertising?

Advertising that directly mentions competitors.

What is direct response advertising?

Advertising that prompts an immediate response from customers.

What are sales promotions?

Short-term incentives to encourage purchase.

What is trade promotion?

Incentives directed at business customers or partners.

What tools are used in public relations?

Press releases, media kits, events, and digital content.

What is personalized promotion?

Individual-level marketing communication like personal selling and direct marketing.

What are the benefits of personalized promotion?

Reduced noise, more relevance, complex messaging, measurable results.

What are the drawbacks of personalized promotion?

Higher cost, smaller reach, time-consuming.

What is personal selling?

Direct interaction between a buyer and a seller.

What is a boundary spanning job?

A role that connects the company with external customers (e.g., salespeople).

What is cold calling?

Contacting customers without prior interaction.

What are transactional salespeople?

Salespeople focused on one-time sales.

What are account managers?

Salespeople who maintain and grow relationships with specific clients.

What is the sales funnel?

A visual representation of the customer journey from awareness to purchase.

What is commission-based compensation?

Payment based on the volume or value of sales made.

What is direct marketing?

Personalized offers sent directly to individual customers.

Name two laws related to direct marketing.

CAN-SPAM Act and GDPR.

What is digital marketing?

Marketing using technology to communicate and deliver value to customers.

What is the goal of digital marketing in the modern age?

To encourage customer engagement with brands.

What is co-creation of value?

Customers and marketers creating value together through interaction.

What makes a good company website?

Easy navigation, consistent branding, mobile optimization.

What is search engine optimization (SEO)?

Designing websites to rank high in search engine results.

What are banner ads?

Ads placed on websites, similar to print ads in newspapers.

What is viral video marketing?

Videos that spread quickly via social sharing and increase brand exposure.

What is social proof?

Using reviews and recommendations to build consumer trust.

What are media-sharing networks?

Platforms for sharing photos and videos (e.g., Instagram, TikTok).

What is content marketing?

Sharing relevant content to attract and engage an audience.

What is influencer marketing?

Collaborating with individuals who have a strong social following.

What is polysynchronous consumption?

Simultaneous interaction across multiple platforms and channels.