Marketing Channels and Strategies Quiz

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Questions and Answers

What does the acronym CPM measure?

Cost per Marketing

Cost to reach 1,000 people (correct)

Cost per Measure

Cost of Product Marketing

Which of the following best describes push marketing?

Creating engaging online content to attract consumers

Advertising on social media platforms

Utilizing trade shows to showcase products (correct)

Generating buzz through customer reviews

What is the primary purpose of the pre-approach stage in sales?

To finalize the sale

To create marketing materials

To rehearse and research customer pain points (correct)

To train the sales team

Which of the following is NOT a stated objective of marketing?

Increase market penetration Signup and view all the answers

Which incentive structure is noted as being the most popular among firms?

Combination plan Signup and view all the answers

What is the main goal of pull media marketing?

To attract consumers to the product through interest generation Signup and view all the answers

What is a disadvantage of using a straight commission incentive plan?

Can lead to low income if sales are slow Signup and view all the answers

Which media type is characterized as 'earned'?

Yelp reviews Signup and view all the answers

How can effective sales management structure their team?

By organizing based on product type, region, or line Signup and view all the answers

What is a pro of a straight salary incentive structure?

Predictable income with security Signup and view all the answers

Which of the following is NOT one of the 5 C's of pricing?

Consumer Demand Signup and view all the answers

What is the primary difference between margin and markup?

Margin represents the profit made on sold goods, while markup represents the increase over cost. Signup and view all the answers

Which type of market structure is characterized by many firms selling identical products at the same price?

Pure Competition Signup and view all the answers

Which of the following factors is crucial when setting a price based on customer willingness to pay?

Economic and psychological factors Signup and view all the answers

In which market structure does a single firm exert control over the market?

Monopoly Signup and view all the answers

What type of channel power is derived from the ability to offer attractive benefits to encourage compliance?

Reward Power Signup and view all the answers

Which type of power relies on the reputation or prestige of one channel member to influence others?

Referent Power Signup and view all the answers

What is a primary source of channel conflict between members?

Disagreements about pricing Signup and view all the answers

Which type of power is based on the technical knowledge and skills that one channel member possesses?

Expert Power Signup and view all the answers

Which channel power arises from formal agreements or contracts?

Legitimate Power Signup and view all the answers

What is an example of coercive power in a channel relationship?

Pulling a product from the shelves Signup and view all the answers

What type of power is linked to controlling and sharing vital information within the channel?

Information Power Signup and view all the answers

Which strategy is essential for retailers when developing their overall retail approach?

Choosing retail partners Signup and view all the answers

What is a key reason for using marketing channels in business?

To simplify the distribution process and manage orders Signup and view all the answers

Which type of marketing channel directly connects the manufacturer to the consumer?

Direct Marketing Channel Signup and view all the answers

In which marketing channel structure do independent members prioritize their own profits?

Independent Marketing Channel Signup and view all the answers

What is a defining characteristic of an Administered Vertical Marketing System?

One dominant member holds significant power over others Signup and view all the answers

What factor would NOT determine channel power?

Diversity of product types offered Signup and view all the answers

Which marketing channel structure deals with conflict reduction through contracts?

Contractual Vertical Marketing System Signup and view all the answers

Which of the following best describes a Corporate Vertical Marketing System?

A channel owned and operated by one company Signup and view all the answers

How does expertise and knowledge influence channel power?

One member may rely on another for critical market insights Signup and view all the answers

What is the primary purpose of price bundling?

To combine products and sell them for a lower price than individual purchases Signup and view all the answers

Which of the following is an advantage of an Everyday Low Pricing (EDLP) strategy?

Stronger customer loyalty Signup and view all the answers

Which type of bundling allows customers the flexibility to buy individual items or the entire package?

Mixed Bundling Signup and view all the answers

What is a disadvantage of high/low pricing?

Potential for customer frustration due to frequent price changes Signup and view all the answers

What is the first step in the AIDA Model of Integrated Marketing Communications?

Awareness Signup and view all the answers

Which of the following objectives is NOT part of promotional communications?

Enhance product quality perception Signup and view all the answers

What is an advantage of high/low pricing in retail marketing?

Ability to clear out inventory effectively Signup and view all the answers

What might be a disadvantage of implementing an EDLP strategy?

Perceived lower quality of products Signup and view all the answers

Study Notes

Course Content (MK12-MK22)

IMC and IMC Planning
Marketing Channels
Pricing Strategy
Sales Forecasting
Demand Curve
Margins and Markups
IMC Tutorial (Awareness, CPM, CPC)
Retail Environments (ACV)
Creative Workshops

Personal Selling and Sales Force

Why Marketing Channels Are Used

Distributors act as intermediaries, consolidating orders and shipping them to customers.
Intermediaries provide crucial information about goods flow, relationships with retailers, and market insights.
Channel types:
- Direct: Manufacturer to consumer
- Indirect: Manufacturer to wholesaler/distributor to retailer to consumer

Marketing Channel Structures

Independent Channels: Individual members (manufacturer, retailer, wholesaler) prioritize maximizing their own profits; less control.
Administered Vertical Marketing System: A dominant member holds significant power over other members.
Contractual Vertical Marketing System: Independent members with contracts to reduce conflicts.
Corporate Vertical Marketing System: Channel owned by the same company.

Channel Power

Supplier control over a necessary part of a product gives them power over the manufacturer.
Expertise and knowledge influence channel power.
Relationships, networks, and leverage from relationships with entities (government, suppliers, manufacturers, retailers) can provide power.
Types of power include:
- Reward power (benefits for compliance)
- Coercive power (threats for compliance)
- Referent power (based on reputation, prestige, or success)
- Expert power (based on knowledge or skill)
- Information power (control of valuable info)
- Legitimate power (comes from formal agreements/contracts)

Importance of Retail Strategy

Choosing retail partners.
Identifying types of retailers.

Pricing Considerations (5Cs)

Company: Align pricing with company objectives (profit, volume, competitor beating).
Costs: Understand production costs and breakeven points.
Customers: Factor in price elasticity, and what customers are willing to pay.
Competition: Recognize different competitive market structures (monopoly, oligopoly, monopolistic competition, pure competition).
Channel Members: Markups added at each step influence final price to the consumer.

Differentiating Margin and Markup

Markup: Calculated using the base number.
Margin: Calculated from the total number.
Conversion between margin and markup is possible.

Profit Maximization

Different strategies based on product, season, customers and demographics to increase profit.
Price bundling combines products at a lower price than individual products.

Integrated Marketing Communications (IMC)

Elements of IMC strategy: AIDA (Awareness, Interest, Desire, Action) method/purchase funnel.
Elements in IMC strategy: brand awareness and consumer intent/attraction.

Promotional Communications Objectives

Create a unified marketing plan through various channels (billboards, websites, social media).
Understanding your target audience to effectively market your product.

Measuring Marketing Effectiveness

Cost per thousand (CPM), cost per click (CPC), frequency, and reach of ads to verify ad effectiveness.
Awareness and repetition calculations must factor in a timeframe.

Personal Selling

Different types of advertising (paid, owned, earned).
Important when personal interaction is necessary.
Steps for personal selling include lead generation, pre-approach, presentation, handling objections, and closing the sale with follow-up.

Sales Management Strategies

Recruiting and retaining top talent
Structuring sales teams
Product knowledge and negotiating techniques
Incentive structure (salary, commissions, combinations)
Balancing security and motivation

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Description

Test your knowledge on integrated marketing communication, marketing channels, pricing strategies, and sales forecasting. This quiz covers crucial concepts such as independent channels, vertical marketing systems, and the role of intermediaries in the distribution process.