D077 Concepts in Marketing, Sales, and Customer Contact - Set 4 - Part 1

Correct Answer: Bundling

Bundling involves offering related products together as a package deal at a single price, often encouraging customers to purchase more than one item at once.

Correct Answer: Leader pricing

Leader pricing sets a product’s price lower than its market value to attract customers, encouraging them to make other purchases during their visit.

Correct Answer: Closure

Closure is the final phase of negotiation where either an agreement is reached between the parties, or one party decides to walk away if the terms are unacceptable.

Correct Answer: Demographic segmentation

Demographic segmentation divides the market based on factors such as age, gender, income, and education to better target customers based on these attributes.

Correct Answer: Competitive pricing

Competitive pricing sets a product’s price based on the prices of similar products in the market to attract price-sensitive customers or differentiate from competitors.

Correct Answer: Consumer involvement

Consumer involvement refers to how much time and effort a consumer invests in making a purchase decision. High-involvement purchases often involve significant research and decision-making.

Correct Answer: Accommodation

Accommodation focuses on maintaining relationships by sacrificing one's own needs or goals for the sake of the other party.

Correct Answer: It recommends a mix of products to solve customer problems

Solution selling diagnoses a customer's problem and recommends a combination of products and services to address that specific issue, tailoring the solution to their needs.

Correct Answer: Bait and switch

Bait and switch is an unethical tactic where a company advertises a low-priced product but attempts to sell a more expensive product once the customer is in the store.

Correct Answer: Creating a seamless, consistent customer experience across channels

IMC ensures that customers receive consistent and unified communication across all channels, improving the overall customer experience and strengthening brand loyalty.

Correct Answer: Continue to "milk" the product with minimal investment

A cash cow is a product with high market share in a slow-growing industry. The goal is to maximize cash flow with minimal additional investment.

Correct Answer: Integrative negotiation

Integrative negotiation seeks to create mutually beneficial agreements by collaborating to find solutions that satisfy both parties.

Correct Answer: Defining the mission statement

The mission statement is the first step in the marketing planning process, outlining the purpose and guiding principles of the organization's marketing efforts.

Correct Answer: The potential of new competitors to enter the market

The threat of new entrants measures the likelihood of new companies entering the market, which can affect market competition and profitability.

Correct Answer: Collaboration

Collaboration involves finding a win-win solution by working together to address the interests of both parties and achieve a mutually satisfactory outcome.

Correct Answer: The degree of cooperation and assertiveness in conflict resolution

The Dual Concern Model assesses conflict management styles based on two factors: concern for oneself (assertiveness) and concern for others (cooperation).

Correct Answer: High market share and high market growth

A star is a product with a high market share in a fast-growing industry. These products require significant investment but have the potential for large returns.

Correct Answer: Recommending a mix of products to meet customer needs

Solution selling involves diagnosing a customer's problem and recommending a combination of products or services that will best solve it.

Correct Answer: SWOT analysis

SWOT analysis assesses a company’s internal strengths and weaknesses, as well as external opportunities and threats, to inform strategy development.

Correct Answer: To expand into new markets with existing products

Market development focuses on introducing existing products into new markets to grow the business by expanding its customer base.