Marketing Principles Flashcards

A hotel offers a package that includes a room, breakfast, and spa access for one combined price. This is an example of:

Answer: Bundle pricing

Bundle pricing combines multiple products or services into a single package offered at one price, adding perceived value.

Which market research technique involves watching consumers in their natural environment without interacting with them?

Answer: Observational research

Observational research collects data by watching how consumers behave in real-life settings without researcher interference.

A company's value proposition primarily communicates:

Answer: Why a product is better or different for the target customer

A value proposition clearly states how a product solves customer problems and what unique benefits it delivers over competitors.

Social media marketing is most effective for building:

Answer: Brand awareness and two-way customer engagement

Social media excels at creating brand visibility and enabling real-time, interactive dialogue between brands and consumers.

A marketer uses customer purchase history to send personalized product recommendations via email. This strategy is called:

Answer: Personalized (one-to-one) marketing

Personalized marketing uses individual data to tailor messages and offers specifically to each customer's preferences and behavior.

The term 'market share' refers to:

Answer: The percentage of total sales in a market captured by one company

Market share is a company's portion of total industry sales, expressed as a percentage, indicating competitive position.

Which pricing objective aims to attract the largest possible number of customers by setting a low introductory price?

Answer: Market penetration

Market penetration pricing uses a low initial price to rapidly grow market share and attract a large customer base.