Marketing Quiz 16, 18, and 19

Advertising

A popular form of promotion for consumer-packaged goods and services via measured or unmeasured media.

Institutional Advertising

A form of advertising designed to enhance a company's overall image rather than promote a specific product.

Advocacy Advertising

A type of advertising in which an organization expresses its views on controversial issues or responds to media attacks.

Product Advertising

Advertising that touts the benefits of a specific good or service.

Pioneering Advertising

Designed to stimulate primary demand for a new product or product category, used primarily during the introductory stage.

Competitive Advertising

Designed to influence demand for a specific brand, focusing less on information and more on emotional appeal.

Comparative Advertising

Compares two or more specifically named or shown competing brands on one or more specific attributes.

Advertising Response Function

A phenomenon where spending for advertising and sales promotion increases sales or market share up to a certain point but eventually produces diminishing returns.

Sense of Familiarity

A concept referring to the minimum level of exposure needed to measurably affect purchase habits.

Public Relations (PR)

A vital link in marketing communication that maintains a positive company image in the eyes of the public.

Social Media

Web 2.0 platforms that enable interactive online communication, participation, and engagement.

Social Commerce

A subset of e-commerce that uses social media to assist consumers with online purchasing through user-generated content.

Crowdsourcing

Using consumers to develop and market products by soliciting feedback on marketing strategies, new products, and decisions.

Demand

How badly people want something, which influences pricing and sales.

Supply

The quantity of a product available for sale.

Revenue

The price charged to customers multiplied by the number of units sold.

Profit Orientation

Pricing strategy focused on achieving a certain return on investment.

Sales Orientation

Pricing strategy aimed at increasing market share.

Status Quo (SQ) Orientation

A pricing strategy aimed at maintaining current market conditions.

Elasticity Demand

consumer’s responsiveness or sensitivity to change in price, indicating how demand for a product changes with price fluctuations.

Non-Elastic Demand

a situation in which an increase or decrease will NOT significantly affect demand for the product, indicating that consumers are relatively unresponsive to price changes.

Dynamic Pricing

The ability to change prices very quickly, often in real time using software programs.

Surge Pricing

Occurs in a fluid market where demand changes rapidly,

often hourly. When demand increases, so do prices and vice versa

Markup Pricing

The cost of buying the product from the producer, plus

amounts for profit and for expenses not otherwise accounted for

• To use markup based on cost or selling price effectively, the marketing manager

must calculate an adequate gross margin—the amount added to cost to

determine price.

Key stoning

The practice of marking up prices by 100 percent, or doubling the cost

Break-even Analysis

A method of determining what sales volume must be

reached before total revenue equals total costs

• The typical break-even model assumes a given fixed cost and a constant average

variable cost (total cost divided by quantity of output).

− Advantage: provides a quick estimate of how much the firm must sell to break even

and how much profit can be earned if a higher sales volume is obtained

− Limitations: hard to know whether a cost is fixed or variable; hard to know if there

is sufficient demand