Chapter 6

Question 1

Marketing strategy includes an analysis of 4 major elements:

Answer 1

1. External market trends
2. Target market
3. Product uniqueness and competitive advantage
4. Marketing mix

Question 2

The marketing mix is a blend of:

Answer 2

Some refer to this mix as the 4 Ps of marketing:

• product offering
• pricing
• promotion
• place (location)

Question 3

4 common methods for pricing your product or service:

Answer 3

1. Competitor-based pricing (market-based pricing)
2. Profit-based (cost plus) pricing
3. Industry norm or “keystone” pricing (mark-ups)
4. Ceiling or premium pricing

Question 4

The price you charge must be acceptable to:

Answer 4

• you, the seller
• your customer
• the market

Question 5

Your price depends on a number of factors:

Answer 5

• cost of production
• the market
• competitive forces

Question 6

The best pricing strategy is to begin with a _____ price strategy and follow up to ensure your price covers _____ and leads to a ______.

Answer 6

• ceiling
• costs
• profit

Question 7

Ceiling or premium pricing:

Answer 7

Setting the highest price target customers will pay for a product or service, given their needs and values and the competitive options.

Question 8

Promotion:

Answer 8

The art or science of moving the image of your business into the forefront of a prospective customer’s mind

Question 9

Your promotional plan must be consistent with your _______, your ______ _____, and your _____ _____.

Answer 9

• image
• target market
• business mission

Question 10

Promotional mix:

Answer 10

• the key to connecting with customers

- all the elements that you blend to maximize communication with your customer

Question 11

Guerrilla marketing:

Answer 11

Small business promotional strategy that involves unconventional methods of getting the customer’s attention at minimal cost

Question 12

Your promotional cornerstones are ______ ______ and ______.

Answer 12

• customer service

- quality

Question 13

If you provide quality service, you can:

Answer 13

1. Charge up to 10% more for your product or service.
2. Increase sales growth
3. Gain new customers
4. Make word-of-mouth advertising work for you
5. Increase profits

Question 14

Give examples of what a promotional mix can consist of:

Answer 14

• promotion in cyberspace
• paid media advertising
• business cards
• point of purchase displays
• catalogues
• discount coupons
• direct mail
• money back guarantees
• free ink and free air
• personal selling
• trade shows
• branding yourself
• industry literature
• working visibly

Question 15

What are important considerations for selecting sales reps?

Answer 15

• your sales rep’s reputation becomes your reputation
• encourage and support your reps
• insist on sales call reports
• write monthly sales letters
• encourage feedback

Question 16

How can you use courtesy as promotion?

Answer 16

• impress upon your employees the importance of customer courtesy
• reward employees for exceptional courtesy

Question 17

How can networking be a source of promotional power?

Answer 17

• communicating through person-to-person channels in an attempt to sell or gain information
• talking to people with the purpose of doing business

Question 18

10 rules for networking: 1

Answer 18

1. Network for a purpose
2. Position yourself and contribute
3. Build relationships
4. Be persistent
5. Be active
6. Be organized
7. Evaluate your networking and be prepared to change
8. Add value
9. Be considerate
10. Listen

Question 19

You can’t plan your promotional strategy without building on your _____ ______.

Answer 19

Market research

Question 20

You are selling ______, not features.

Answer 20

Benefits

Question 21

Your target customers are interested in…

Answer 21

What your product or service will do for them

Question 22

Market research helps you clarify the _____.

Answer 22

Benefits

Question 23

Core benefit proposition:

Answer 23

A statement about the benefits of your product or service to your target market