D077 Concepts in Marketing, Sales, and Customer Contact - Set 4 - Part 3

Correct Answer: They are costly and time-consuming to collect

Primary data collection is often expensive and requires significant time and resources, but it provides highly specific and relevant data for a companys marketing needs.

Correct Answer: Prestige pricing

Prestige pricing sets a higher price to create a sense of luxury and exclusivity, appealing to customers who associate higher prices with higher value.

Correct Answer: To define the target market and how the product is different from competitors

A positioning statement clearly defines the target market, the product or service being offered, and how it is differentiated from competitors, helping to guide marketing efforts.

Correct Answer: Avoidance

Avoidance involves steering clear of the conflict rather than addressing it directly, often hoping the issue will resolve itself without confrontation.

Correct Answer: Porter's Five Forces

Porters Five Forces is a strategic model that evaluates the competitive forces in an industry, including the power of suppliers, buyers, and the threat of new entrants.

Correct Answer: Search

The search stage occurs when a consumer seeks information about the available options after recognizing a problem or need, helping them evaluate potential purchases.

Correct Answer: Question mark

A question mark has low market share but exists in a high-growth market. The product has potential for growth but requires significant investment and careful management.

Correct Answer: Consumer preferences and societal values

Social and cultural factors in PEST analysis include shifts in consumer preferences, societal values, and attitudes that may influence how products are marketed and perceived.

Correct Answer: Price skimming

Price skimming sets a high initial price for a new product to capture profits from early adopters, with the price gradually lowered over time as competition increases.

Correct Answer: Cooperation between different levels of the distribution channel

Vertical marketing systems involve coordination and cooperation between manufacturers, wholesalers, and retailers to streamline the distribution process and increase efficiency.