D077 Concepts in Marketing, Sales, and Customer Contact - Set 3 - Part 2

Correct Answer: A dominant company controls the channel due to size and power

In an administered vertical marketing system, a powerful company uses its influence to coordinate activities along the distribution channel without direct ownership.

Correct Answer: Price skimming

Price skimming involves starting with a high price to capture profits from early adopters and then reducing the price to attract more price-sensitive consumers as demand grows.

Correct Answer: Integrative

Integrative negotiation aims to create a win-win scenario where both parties can "expand the pie" and find solutions that allow both to benefit from the agreement.

Correct Answer: Amiable

Amiable individuals are less assertive but highly responsive, often seeking to understand "why" a decision is being made and are typically focused on relationships and harmony.

Correct Answer: Price gouging

Price gouging refers to raising prices to an excessively high level, often during times of high demand or low supply, taking unfair advantage of consumers.

Correct Answer: Accommodation

Accommodation involves putting the other party's needs ahead of your own, often at the expense of self-interest, to maintain harmony and relationships.

Correct Answer: To unify customer interactions and track information

CRM systems help businesses manage and analyze customer interactions, fostering better relationships and improving customer satisfaction by providing personalized experiences.

Correct Answer: Pyramid scheme

A pyramid scheme is an illegal business model where individuals profit by recruiting others rather than selling actual products or services.

Correct Answer: Product design

Product design is an internal, controllable factor within the marketing mix. Economic trends and legal judgments are external, uncontrollable factors.

Correct Answer: Penetration pricing

Penetration pricing sets a low price initially to gain a foothold in the market, with plans to increase prices once a significant market share has been achieved.

Correct Answer: Monitoring and controlling the plan

After setting objectives and developing strategies, monitoring and controlling ensure that the plan is properly implemented and adjusted as necessary based on performance indicators.

Correct Answer: In-depth interviews

In-depth interviews are a primary data collection method where marketers collect new data directly from individuals, whereas PEST analysis and syndicated research are secondary methods.

Correct Answer: It allows a company to expand into new markets with new products

Diversification involves entering completely new markets with new products, creating opportunities for growth and reducing reliance on existing markets.

Correct Answer: Avoidance

The avoidance style involves deliberately sidestepping the conflict and postponing addressing the issue, often hoping the conflict will resolve itself.

Correct Answer: Maturity

In the maturity stage, most products face intense competition as the market becomes saturated, and companies compete to differentiate themselves to maintain market share.

Correct Answer: Social listening

Social listening refers to tracking online conversations and social media interactions to gain insights into consumer sentiment and trends, often used for reputation management.

Correct Answer: To increase sales of existing products in existing markets

Market penetration focuses on increasing sales within the current market by selling more to existing customers or attracting new customers with the same products.

Correct Answer: Psychographic segmentation

Psychographic segmentation targets customers based on psychological traits, lifestyles, and personalities, differentiating consumers by their values, beliefs, and interests.

Correct Answer: Competition

The competitive style emphasizes winning over the other party, often resulting in a win-lose scenario where one party benefits at the expense of the other.

Correct Answer: Segmenting customers by the benefits they seek from a product

Product-related segmentation divides the market based on how consumers interact with or use a product, such as the benefits they seek, product usage rates, or brand loyalty.