A cable company may start out with a low price to get subscribers. Eventually, price will
increase as their market share increases. - correct answer. Penetration Pricing
A cellular phone carrier charges a premium price at the onset, but reduces the price of
its phones over five years, following the natural product lifecycle. - correct answer.
Skimming Pricing
Price matching is one example. Some companies (such as cell phone carriers) give the
customer a refund that covers competitors' fees, to convince them to switch carriers. -
correct answer. Competition Pricing
Wholesaling - correct answer. The process of enabling the movement of merch from
manufacturers to retailers.
, Retailing - correct answer. The process that enables the sale of products and
services to end-use consumers, including business consumers and individuals at their
homes.
Intermediary Functions - correct answer. Transactional, Logistical, and Facilitating
services that provide benefits to consumers.
Distribution Channels - correct answer. Facilitate the movement and final sales of
products and services to consumers.
Types of retailers - correct answer. Walmart, Costco, Nordstrom, Macy's...
Pricing Metrics: Break Even Point - correct answer. Total revenue and total cost are
equal.
Pricing Metrics: ROI - correct answer. Return on Investments = (Gain from
Investment - Cost of Investment)/Cost of Investment
Demand Curves - correct answer. Used to determine the effects on demand at
different prices.
Price Elasticity - correct answer. Measures price sensitivity providing a relationship
between adjustments in price and the quantity demanded of a good or service.
Push Strategy - correct answer. Producer PUSHES product or service onto
consumers.
Pull Strategy - correct answer. Consumers actively seek a product and PULL
retailers to stock the product in response to the demand.
Integrated Marketing Communications (IMC) - correct answer. All forms of
communications and messages are carefully linked together.
Elements of the communication process - correct answer. sender, encoding,
channel, decode, receiver, feedback
Promotional Mix - correct answer. Advertising (reach market), sales promotion
(Bogos!), personal selling, public relations (improve image), direct marketing (mail,
email...), digital marketing (internet)
Types of promotional budgets - correct answer. Percentage of Sales: Estimates
future spending based on past spending
Competitive Parity: Compares promotional activities to competitors
Objectives and Tasks: Go to marketing, "How much will this cost?"
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller techgrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R214,18. You're not tied to anything after your purchase.
