Marketing Principles Flashcards

A company that manufactures both running shoes and athletic apparel under the same brand is using:

Answer: Brand extension

Brand extension applies an established brand name to new product categories to leverage existing brand equity.

Which of the following best describes 'primary data'?

Answer: Original data gathered firsthand for a specific research purpose

Primary data is original information collected directly by the researcher through surveys, experiments, or observations for a specific study.

A business selling luxury watches prices them at $5,000 to signal exclusivity. This is an example of:

Answer: Prestige (premium) pricing

Prestige pricing deliberately sets high prices to convey superior quality, exclusivity, and status to target customers.

A small business owner conducts a competitive analysis. Which question is MOST relevant to this analysis?

Answer: What are our competitors' strengths, weaknesses, and pricing strategies?

Competitive analysis focuses on understanding rivals — their strengths, weaknesses, prices, and positioning — to identify advantages.

In the context of product development, a 'prototype' is best described as:

Answer: A preliminary model used to test and refine a concept

A prototype is an early sample or model built to test a product concept before committing to full-scale manufacturing.

Which of the following is an example of a 'pull' promotional strategy?

Answer: A brand running consumer-facing ads to create demand that pulls the product through the channel

A pull strategy targets end consumers directly to build demand, motivating retailers to stock the product due to consumer requests.

The primary purpose of a marketing plan is to:

Answer: Outline strategies and tactics to achieve marketing objectives within a set time frame

A marketing plan is a strategic document that defines goals, target markets, strategies, tactics, budgets, and timelines for marketing efforts.