Chapter 12

Question 1

Influencing factors on purchase

Answer 1

Quality: how well is the product/service performing
Quantity: what quantity of the product to be sold?
Time: does the consumer have time to consume the product?
Cost: overall cost, payment options, value received from the purchase price

Question 2

4 steps of selling

Answer 2

1. identify customers
2. Getting through to them
3. Increasing their awareness and interest in your product/service
4. persuading them to act on that interest

Question 3

advantage (cost saving) /single most important direct marketing activity for business to business sales according to Direct Marketing Association.

Answer 3

Telemarketing

Question 4

Applying the Telemarketing Process

Answer 4

Pre-call planning: review customer’s info including lead scoring if available/plan the objective for the call
Approach/positioning: identify who you are , specify the purpose of the call, make an interest-creating statement, build a rapport
Data gathering: identify personal/business need
Solution generation
Close: decide on timing: follow-up appointment? Visit? / handle objections
Wrap up: thank the client, confirm client commitment

Question 5

Using discounts, sales, refunds, coupons, premium items etc. to enhance the perceived value of the offer.

Answer 5

Direct Mail

Question 6

Characteristics of Direct Mail

Answer 6

Direct mail is targeted.  
It is personal. 
It is measurable. 
It is testable. 
It is flexible.

Question 7

Face-to-face selling is the art of convincing, the use of learnable techniques to close a transaction, and the application of basic rules to show a prospect or customer that you have something he or she needs.

Answer 7

Personal selling

Question 8

More costly, can be more effective due to two-way interaction

Answer 8

Personal Selling

Question 9

Goal is to create a long-term and sustained relationship with the customer (lifetime value of each customer)

Answer 9

Relationship marketing

Question 10

Create new benefits to offset existing perceptions or assumed negatives related to the sport product or service.

Answer 10

Benefit Selling

Question 11

Personal selling can be most effective when coupled with __________

Answer 11

sampling, trial usage, and open houses.

Question 12

Formula that helps a marketing manager arrive at the monetary value associated with the long-term relationship of any given customer, revealing both the cost and the net worth of that relationship over time.

Answer 12

Customer Lifetime Value (CLTV)

Question 13

Variable pricing strategy based on understanding, anticipating, and influencing consumer behavior in order to maximize revenue or profit from a fixed, time-limited resource

Answer 13

Yield Management

Question 14

The process of making frequent adjustments in the price of a product in response to certain market factors, such as demand or competition

Answer 14

Yield Management

Question 15

_________ includes not only pricing but also packaging of tickets to ensure the highest yield on the sale of the product.

Answer 15

Yield management

Question 16

5 C’s of Pricing

Answer 16

Competition
Costs
Company objectives
Customers
Channel Members

Question 17

________ is a pricing strategy which sets prices primarily, but not exclusively, according to the perceived or estimated value of a product or service to the customer rather than according to the cost of the product or historical prices.

Answer 17

Value-based price (also value optimized pricing)

Question 18

start with cost
All costs calculated on a per unit basis
Simplicity is the major benefit of this method

Answer 18

Cost-base pricing methods

Question 19

what are some of the potential problems associated with cost-based methods?

Answer 19

It does not consider what the value the customer places on the product or service .

Question 20

Set prices to signal information of how product compares with competitors

Answer 20

Competition-Based price Methods

Question 21

saves search costs of finding lowest overall prices

Answer 21

EDLP (everyday low pricing)

Question 22

the thrill of the chase for the lowest price

Answer 22

high/low pricing

Question 23

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.

Answer 23

Price Skimming

Question 24

Price bundling achieves a variety of objectives. What are they?

Answer 24

Encourage sales of slow moving items.
Encourage stock up.
Encourage trial of new brand.
Incentive to purchase.