4 P's Test

A retailer sets a profit margin of 65% on all its products. If a particular product costs \$1.20, what price does the retailer sell the product at?

1.98

The use of promotional media such as television where a business does not have any direct control is known as

Above the line marketing

Form of promotion that refers to any form of paid-for promotional technique through independent consumer media.

Above the line promotion

An insurance broker is an example of what kind of intermediary in the distribution channel?

Agent

These independent intermediaries help to sell a vendor's products in return for commission, e.g. real estate agents.

Agents

Which term describes a unique symbol or identity for a product or business?

Brand name

Products in the BCG Matrix with high market share in a low growth (mature) market. They are the largest cash earners for a business.

Cash Cows

The use of famous people (such as film stars, musicians and sports personalities) to promote a brand or organization. Celebrity ___

Celebrity endorsement

Reward systems used to encourage customers to make repurchases, such as price discounts or free gifts for members.

Customer loyalty schemes

Marketing approaches used to prolong or lengthen a product's life cycle, e.g. price reductions or new promotional strategies.

Extension strategies

Which form of promotion uses unconventional methods, suitable for firms on a relatively low budget, to maximize marketing exposure?

Guerilla Marketing

The use of unconventional but innovative promotional strategies that make a major impact but at a fraction of the cost of traditional ATL promotional methods ___________ marketing

Guerilla marketing

A third-party person or business that offers distribution services as part of a channel of distribution, such as agents, wholesalers and retailers.

Intermediary

Brenda's Bakery sells a product at just \$0.50 each rather than the normal price of \$2 in order to encourage customers to buy other products offered at the bakery. What pricing strategy is this an example of?

Loss leader

Refers to a retailer's range of goods that are available for sale.

Merchandise

The management function overseeing public attitudes and opinions of an organization to gain public understanding and support

PR (public relations)

The art of presenting a product in an advantageous way.

Packaging

The use of sales personnel to sell goods and services with customers on a face-to-face basis.

Personal Selling

Which of the traditional 4Ps of marketing concerns the various channels (methods) a business uses to distribute its products?

Place

A strategy that involves charging a low price, sometimes even below the cost, so as to damage the sales of rivals.

Predatory pricing

The value of a good or service that is paid by the customer.

Price

Involves a business charging different prices to different market segments for basically the same good or service, e.g. adult and child fares at the cinema, theme park or concert.

Price discrimination

A strategy of following the price set by the dominant firm in the industry (the firm with the largest market share).

Price leadership

If a business strives to meet the needs and wants of customers by delivering a higher quality service, which element of the marketing mix will it focus on?

Product

The way in which firms try to create differences between their products and those of competitors is known as what?

Product differentiation

Marketing Mix

Product, Price, Place, Promotion (4 P's)

Which of the following is an example of above-the-line promotion? A. Radio advertising B. Direct marketing C. Personal selling D. Telemarketing

Radio advertising

Makers of hair conditioner and shampoo often send out free samples of their products with magazines. What is this an example of?

Sales promotion

The pricing strategy that sets a high price during the introductory (launch) of a new and original product, with gradual price reductions as rival products enter the market.

Skimming

A promotional strategy that involves a business providing financial support to another organization or event in return for marketing exposure.

Sponsorship

Products in the BCG Matrix with high or rising market share in a high growth market.

Stars

Trialling a new product in a limited geographical area or with a small group of customers is known as what?

Test marketing

This type of distribution channel uses three intermediaries. It often involves an agent who sells the goods to wholesalers on behalf of the producer. In turn, wholesalers sell to retailers.

Three-channel distribution network

Promotional event where specialist firms exhibit their products for sale to potential customers.

Trade fair.