D077 Concepts in Marketing, Sales, and Customer Contact - Set 3 - Part 1

Correct Answer: Ethnographic research

Ethnographic research involves studying consumers in their everyday environments to gain a deep understanding of their behaviors and interactions, unlike surveys or focus groups which are conducted in controlled settings.

Correct Answer: Technology

Technological changes are uncontrollable factors that can influence marketing strategies. Marketers must adapt to technological advancements but cannot directly control them.

Correct Answer: Selling a product as part of a larger solution

Solution selling focuses on diagnosing the customer’s problems and offering a mix of products and services to provide a comprehensive solution.

Correct Answer: Low customer loyalty

Low customer loyalty makes it easier for consumers to switch to substitute products, increasing the threat that these substitutes pose to a business.

Correct Answer: To assess the external factors that influence a company

A PEST analysis helps marketers understand external, uncontrollable factors such as political, economic, social, and technological influences on their business.

Correct Answer: The cost a customer pays for a product

The price element involves determining what the customer will pay in exchange for the product, factoring in competition, costs, and customer demand.

Correct Answer: Leader pricing

Leader pricing sets certain items at a lower price (sometimes below cost) to draw customers in, hoping they will also purchase other products with higher margins.

Correct Answer: Growth

During the growth stage, sales increase rapidly, and the market accepts the product, leading to higher profits and more competition entering the market.

Correct Answer: Micromarketing

Micromarketing targets a very specific, small market or even individual preferences, often referred to as one-to-one marketing or mass customization.

Correct Answer: To assess strengths, weaknesses, opportunities, and threats

SWOT analysis is a strategic tool used to evaluate internal strengths and weaknesses along with external opportunities and threats affecting a business.

Correct Answer: Compromise

The compromise style seeks a solution that partially satisfies both parties by finding a middle ground where each side gives up something.

Correct Answer: Experimental research

Experimental research tests different variables to measure their effect on outcomes, often used to refine marketing strategies and understand consumer behavior.

Correct Answer: Demographic segmentation

Demographic segmentation classifies consumers based on factors such as age, income, education, and occupation to better target specific groups.

Correct Answer: To introduce new products into existing markets

Product development focuses on creating and offering new products to an existing customer base, allowing companies to meet changing demands and stay competitive.

Correct Answer: Control the flow of information within the buying process

Gatekeepers regulate the information that reaches decision-makers, ensuring only relevant or necessary information is passed on in the buying process.

Correct Answer: Decreasing sales and profits

During the decline stage, sales and profits decrease as market demand wanes, and competitors may begin to exit the market.

Correct Answer: Collaboration

Collaboration involves both parties working together to create a mutually beneficial solution, emphasizing a win-win outcome.

Correct Answer: Prestige pricing

Prestige pricing raises the price of a product to give it an aura of exclusivity and luxury, enhancing its perceived value in the eyes of consumers.

Correct Answer: Behavioral segmentation

Behavioral segmentation focuses on how consumers behave toward products, such as usage rates, brand loyalty, and benefits sought from the product.

Correct Answer: It helps to gain market share rapidly

Penetration pricing sets a low price initially to attract a large customer base quickly, which helps increase market share before gradually raising prices.