Quiz · Medium
The marketing mix, segmentation, pricing strategies, the product life cycle, research methods and the metrics marketers actually calculate: CTR, conversion rate, CAC and ROAS.
In the 4 Ps of marketing, 'Place' refers to:
Where the company's headquarters is located
How and where the product is distributed to customers
The store layout and shelf design only
The target market's geographic region
Place covers distribution channels: retailers, wholesalers, online stores, logistics. The other Ps are Product, Price and Promotion.
A streaming service divides its market by age, income and household size. This is:
Psychographic segmentation
Behavioral segmentation
Demographic segmentation
Geographic segmentation
Demographic segmentation uses measurable population traits. Psychographic uses lifestyle, values and personality; behavioral uses usage, loyalty and benefits sought.
An outdoor brand targets 'adventurous people who value sustainability and an active lifestyle.' This is:
Demographic segmentation
Psychographic segmentation
Geographic segmentation
Mass marketing
Values, interests and lifestyle are psychographic variables. People with these values can be any age or income.
A new game console launches at a high price for eager early adopters, and the price drops over the next two years. This pricing strategy is:
Penetration pricing
Predatory pricing
Cost-plus pricing
Price skimming
Skimming captures high willingness to pay first, then lowers prices to reach more buyers. Penetration pricing does the opposite: it launches low to grab market share fast.
Sales of a product have leveled off, competition is intense and companies compete mainly on price and small improvements. Which stage of the product life cycle is this?
Introduction
Growth
Maturity
Decline
In maturity, sales peak and growth flattens, so firms defend share. In growth, sales rise quickly; in decline, sales fall steadily.
A company runs its own online survey of 500 customers about a new flavor. The survey results are:
Primary data
Secondary data
Syndicated data
Census data
Primary data is collected firsthand for the current purpose. Secondary data already exists, such as government statistics or industry reports.
A focus group of eight people discusses how a new logo makes them feel. This is an example of:
Quantitative research
Qualitative research
An experiment
Observational sales data
Focus groups produce in-depth, non-numerical insights (qualitative). Their small samples cannot be generalized statistically the way large surveys can.
An ad gets 2,000 impressions and 50 clicks. What is its click-through rate (CTR)?
0.25%
4%
25%
2.5%
CTR = clicks ÷ impressions = 50 ÷ 2,000 = 0.025 = 2.5%.
An online store gets 1,200 visitors in a day, and 36 of them buy something. What is the conversion rate?
3%
36%
0.3%
33%
Conversion rate = conversions ÷ visitors = 36 ÷ 1,200 = 0.03 = 3%.
A startup spends $5,000 on marketing in a month and gains 100 new customers. What is its customer acquisition cost (CAC)?
$500
$20
$50
$5
CAC = total acquisition spend ÷ new customers = $5,000 ÷ 100 = $50.
A campaign costs $2,000 in ad spend and generates $8,000 in revenue. What is the return on ad spend (ROAS)?
4:1 (400%)
3:1 (300%)
0.25:1
6:1
ROAS = revenue ÷ ad spend = 8,000 ÷ 2,000 = 4. ROAS uses revenue, not profit, so a 4:1 ROAS can still lose money if product and shipping costs are high.
In the BCG growth-share matrix, a product with HIGH market share in a LOW-growth market is a:
Star
Question mark
Dog
Cash cow
Cash cows generate more cash than they need, funding stars and question marks. Stars have high share in a high-growth market.
What does the AIDA model describe?
The four stages of the product life cycle
The steps a customer moves through: Attention, Interest, Desire, Action
A pricing formula for new products
The four distribution channel levels
AIDA guides ad and sales copy: grab attention, build interest, create desire and prompt action, such as a purchase or sign-up.
