Marketing unit test
A test on this unit alone, marked as a percentage and a letter grade — for the test your class is actually sitting, rather than for May. Answer everything, then submit once: seeing the answer to question 3 before attempting question 4 makes the final percentage meaningless.
Customer acquisition cost
Ethics in advertising
Loss leader
Guerrilla marketing
Marketing mix: the 7 Ps
Dynamic pricing
Cost-plus pricing
Value-based pricing
Target market vs target audience
Brand equity
Product life cycle
Brand extension and its risk
Short answer 1. Define or explain: Unique selling proposition
3 ptsShort answer 2. Define or explain: Price skimming
3 ptsShort answer 3. Define or explain: Qualitative vs quantitative research
3 ptsShort answer 4. Define or explain: Distribution channel
3 ptsFree response
7 ptsA regional chain of six coffee shops has flat sales and is deciding how to spend a $40,000 marketing budget. Current data: average transaction is $7.20, the shops serve about 32,000 transactions per month combined, and a customer survey shows that 61 percent of respondents are aged 18 to 34 while only 9 percent are over 55. A competitor has opened nearby with lower prices.
Identify the four elements of the marketing mix and briefly define each.
Describe the market segment the chain currently serves, using the survey data.
Explain one specific risk of competing with the new competitor on price.
Explain one differentiation strategy the chain could use instead, and how it would be reflected in the marketing mix.
Calculate the increase in monthly revenue that would result from raising the average transaction by $0.60 at the current transaction volume.
Explain one method the chain could use to raise the average transaction, and one risk of that method.
Explain how the chain should measure whether the $40,000 was well spent.