Mixed Deck — All CMA Topics Flashcards

What is 'influencer marketing'?

Answer: Partnering with individuals who have social media followings to promote products or services

Influencer marketing leverages individuals with engaged social followings to promote products, using their credibility and reach to drive brand awareness or sales.

A company calculates its marketing ROI as (Revenue Attributable to Marketing − Marketing Cost) ÷ Marketing Cost × 100. If revenue attributable is $500,000 and marketing cost is $100,000, what is the marketing ROI?

Answer: 400%

($500,000 − $100,000) ÷ $100,000 × 100 = $400,000 ÷ $100,000 × 100 = 400% marketing ROI.

What is 'price elasticity of demand'?

Answer: A measure of how sensitive consumer demand for a product is to changes in price

Price elasticity of demand measures how much the quantity demanded of a product changes in response to a change in its price.

Which of the following best describes 'rebranding'?

Answer: Changing a brand's name, logo, or overall image to reposition it in the market

Rebranding involves changing a brand's name, visual identity, or messaging to update its image or reposition it strategically.

What is 'native advertising'?

Answer: Paid content designed to match the look and feel of the editorial content on the platform where it appears

Native advertising blends seamlessly with the surrounding content on a platform, making it less intrusive while still being paid promotional content.

Under FTC guidelines, when must social media influencers disclose paid partnerships?

Answer: Always, whenever they receive payment, free products, or other compensation to promote a brand

FTC guidelines require influencers to clearly disclose any material connection to a brand, including free products, whenever they endorse it.

What is 'earned media' in the context of marketing communications?

Answer: Publicity or coverage gained organically, such as press mentions, reviews, or shares

Earned media is publicity that a brand gains organically without paying for it, such as news coverage, social shares, or customer reviews.

What is consumer behavior?

Answer: It refers to the actions and decisions of consumers during the purchase process

Consumer behavior refers to the actions and decisions of consumers during the entire purchase process, from recognizing a need to post-purchase evaluation. It encompasses how individuals, groups, or organizations select, buy, use, and dispose of ideas, goods, and services to satisfy their needs and wants. Understanding this helps businesses tailor their offerings effectively.

Which communication strategy focuses on convincing channel members (retailers, distributors) to carry and promote a product?

Answer: Push strategy

A push strategy directs marketing efforts toward channel intermediaries to encourage them to stock and promote the product to end consumers.

What is the principle of 'marketing ethics'?

Answer: Applying moral standards and values to marketing decisions to ensure honesty, fairness, and respect for consumers

Marketing ethics applies moral principles to marketing practices, ensuring honesty, fairness, and respect for consumers and society.

What is 'competitive pricing' strategy?

Answer: Pricing products based on what competitors are charging

Competitive pricing sets prices in relation to what competitors are charging, aiming to stay aligned with or slightly below the market rate.

What is A/B testing in digital marketing?

Answer: Comparing two versions of a marketing asset to determine which performs better

A/B testing involves comparing two versions of content or an ad to identify which one achieves better results.

What does 'brand positioning' primarily involve?

Answer: Defining how a brand should be perceived relative to competitors in the customer's mind

Brand positioning is the strategic process of defining how a brand is perceived differently and favorably compared to competitors.

Which pricing strategy sets a high initial price for a new product and lowers it over time?

Answer: Price skimming

Price skimming sets a high launch price to capture maximum revenue from early adopters before gradually reducing the price.

What is 'greenwashing' in marketing?

Answer: Making misleading environmental claims to appear more sustainable than a company or product actually is

Greenwashing involves making false or exaggerated environmental claims to mislead consumers into believing a product or company is more eco-friendly than it is.

Which digital marketing channel typically offers the highest return on investment (ROI) for B2B companies?

Answer: Email marketing

Email marketing consistently delivers high ROI for B2B companies due to its low cost and direct reach to decision-makers.

How does SWOT analysis support strategic decision-making?

Answer: By identifying the internal strengths and external opportunities

SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a foundational strategic planning tool. It helps businesses assess their internal capabilities (strengths and weaknesses) and external factors (opportunities and threats) that can impact their success. This comprehensive overview is crucial for informed decision-making, allowing companies to leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats effectively.

What is a common challenge in data interpretation?

Answer: Incorrect analysis or misinterpretation of trends

A common challenge in data interpretation is the risk of drawing faulty conclusions from the data. This can occur due to biases, overlooking confounding variables, or simply misreading patterns and trends. Such misinterpretations can lead to poor business decisions, making careful and critical analysis essential to ensure accurate and reliable insights.

What is a key element in data reporting?

Answer: Creating visuals and graphs to represent the data.

Data reporting aims to communicate complex information clearly and concisely to various stakeholders. Visuals like charts, graphs, and infographics are key elements because they simplify complex data sets, highlight trends, and make insights more accessible and understandable. This visual representation enhances comprehension and engagement, making the report more impactful and easier to digest for decision-makers.

What is 'co-branding'?

Answer: A marketing partnership where two brands collaborate on a product or campaign

Co-branding is a partnership where two brands join together to create a product or campaign that benefits from both brands' equities.