In Class Content

Question 1

CPM

Answer 1

Cost per Thousand

Question 2

Frequency

Answer 2

How many times an ad is repeated in a given time period

Question 3

Reach

Answer 3

How many people are exposed to the ad at least once

Question 4

What is the “kinked” feature of sales promotion

Answer 4

1. From the rise in sales during the time frame of promotions like : BOGO, Coupons, Rebates.

Question 5

3 “More likely” characteristics of deal prone customers

Answer 5

1. Larger houses
2. Home Owner
3. Larger Vehicles

Question 6

4 “Less Likely characteristics of deal prone customers (coupon clippers?)

Answer 6

1. People with Infants
2. Smaller Houses
3. Renting
4. Smaller Vehicle

Question 7

3 elements of Short Term Nature of Sales Promotion (Sales ___)

Answer 7

1. Remain Elevated - happens 5% of time…and when people are trying a product out for the first time.
2. Return to original - Best Case Scenario…Stealing market share from competitors
3. Dip Below - Most common

Question 8

Pros and Cons of Tv ads

Answer 8

Pros - Visual, Cost very little

Cons - A lot of clutter

Question 9

The ______ _____ is a good way to measure ?effectiveness

Answer 9

Recall Test

Question 10

Pros of newspaper

Answer 10

1. You can Deliver Samples

2. Larger Ads than magazine

Question 11

Cons of Print Media

Answer 11

1. Clutter
2. Reaches Fewer People
3. Susceptible to placement

Question 12

Features of Direct Mail Marketing

Answer 12

“opt in” direct mail is effective and versatile

Cost is high

For Specific products, it can be effective

Question 13

What is the best form of Internet marketing?

Answer 13

Emailing, particularly if it is opt-in

Question 14

Large Companies dont like Social Media Marketing because

Answer 14

Adds more cost than benefit

Everyone has to have an on-line presence

Question 15

70% of businesses have a ______ and 40% of businesses have a ____/______

Answer 15

Facebook,Pintrest/Instagram

Question 16

Demand Patterns

Answer 16

Penetration - straight horizontal line

Inelastic - Down hill (skimming)

Prestige - Backwards C (Inferring Quality from Price)

Odd-Even - Down Stairs (Consumers perceive prices in ranges)

Bundling - Used to sell new products or unpopular products (sell more for same price)

Question 17

Skimming is

Answer 17

what you do in an inelastic market - high price doesn’t affect demand

Question 18

Pricing Effects

Answer 18

Unique Value

Substitute Awareness (competitor effect)

Difficult Comparison

Total Expenditure

End Benefit

Sunk Investment

Shared Cost

Price-Quality

Inventory

Question 19

Unique Value effect

Answer 19

The more unique, the higher you can charge (because people are less price sensitive

Question 20

Substitute awareness effect

Answer 20

The more aware of competitors consumers are, the more price sensitive

Question 21

Total Expenditure Effect

Answer 21

Low Expenditure, Low price sensitivity:

High Expenditure, High price Sensitivity

Question 22

End Benefit

Answer 22

If it provides a needed benefit, Less price sensitive

electric scooter

Question 23

Price-quality effect

True of Services

Answer 23

the greater perceived quality, the less sensitivity

Question 24

Rielley’s Law

Answer 24

People are more sensitive to distance than population

Inconvenience/Convenience

Question 25

Index of Retail Saturation (IRS)

Answer 25

Few Competitors and High Demand if High Ratio

(Demand$ / sqft of retail space) / category and zip code

Question 26

Wheel of Retailing

Answer 26

Stores have life-cycles too

• New Catagory of stores = invariably low priced
• They Start diversifying from their core competencies

Question 27

MUPC stands for

Answer 27

Markup based on COST

Question 28

MUPR Stands for (retail)

Answer 28

Markup Based on Selling Price (retail)

Question 29

Strategic Group Map

Answer 29

Line of Equal Value, Blue Clusters, Inter/Intra Competition

Intra is much weaker

Question 30

4 Pricing Tactics

B, L, P, Y

Answer 30

Bait/Leader Pricing - retailers price nearly at cost to drive traffic to store

Loss Leader Pricing - Illegal (Bait and Switch)

Price Lining - Make Price irrelevant , people buy more (bargain bin all for $20)

Yield Pricing - Charging different amount for everybody (Airlines, Hotels)

Question 31

Second Market Strategy

Answer 31

Pricing in a 2nd market has no fixed cost

Question 32

Cost Plus Strategy

Answer 32

Fixed+Variable=Total Cost

Question 33

Source Issues

C, A, P

Answer 33

Credible

Attractive

Powerful

Question 34

d

Answer 34

d