MKTG640 reviewing for your, this comprehensive guide will walk you through all 20 questions based on chapters 15, 16, 17, and 19 (from the Kotler & Keller textbook, 16th edition)
1. What is permission marketing?
Correct Answer: Permission marketing
Explanation: Coined by Seth Godin, permission marketing is a strategy where marketers only reach out to consumers who have opted in. Think email subscriptions, SMS opt-ins, and cookie consent. This approach contrasts with interruption marketing (e.g., pop-up ads) and builds trust and engagement.
Example: A fashion brand asks you to subscribe to its newsletter during checkout, offering 10% off your next order.
2. What is the trade-off in multichannel marketing?
Correct Answer: Two or more channels may end up competing for the same customer
Explanation: Integrated multichannel systems boost market coverage and convenience but can lead to channel conflict—for instance, when a customer buys directly online instead of visiting a local distributor.
Real Case: Nike pulled its products from Amazon to focus on its direct-to-consumer model and reduce internal competition.
3. What strategy involves increasing sales to current customers?
Correct Answer: Market-penetration
Explanation: This is a low-risk growth strategy where companies boost sales to existing markets through promotions, bundling, or loyalty programs.
Example: Starbucks offering app rewards to increase purchases from frequent customers.
4. What’s it called when physical and online stores are coordinated?
Correct Answer: Omnichannel retailing
Explanation: Omnichannel retailing delivers a seamless customer experience across platforms—whether buying online, picking up in-store, or using a mobile app.
Example: Walmart lets customers order online, track through the app, and pick up in-store or curbside.
5. What is price image?
Correct Answer: The overall perception that consumers have about the level of prices at a given retailer
Explanation: Price image is not about exact pricing but how expensive or cheap a store feels to the average shopper.
Example: Target is seen as affordable but higher quality than Walmart, despite similar prices.
6. Felder’s selective distribution strategy
Correct Answer: Selective
Explanation: Selective distribution uses a few outlets per region—more than exclusive, fewer than intensive. It balances reach and control.
Example: Apple authorizes only certain resellers to sell MacBooks.
7. What is high-low pricing?
Correct Answer: Charging higher prices generally but running frequent promotions with low prices
Explanation: High-low pricing builds excitement around deals while maintaining a high perceived value. Customers wait for sales.
Example: Macy’s or JCPenney uses regular markdowns to attract bargain shoppers.
8. What is geofencing?
Correct Answer: Geofencing
Explanation: Geofencing is a location-based marketing strategy that sends push notifications when users enter a defined area.
Example: A coffee shop sends a promo when a customer is near the mall.
9. What are distribution channels?
Correct Answer: Distribution channels
Explanation: These are the networks of intermediaries that move a product from producer to consumer (e.g., wholesalers, retailers, agents).
10. What is a niche marketer?
Correct Answer: Niche marketer
Explanation: A niche marketer targets small but profitable market segments, allowing for strong brand loyalty and reduced competition.
Example: Dollar Shave Club targets men looking for affordable razors online.
11. What is a brand community?
Correct Answer: Brand community
Explanation: This is a group of loyal customers and employees who identify strongly with a brand and often engage with others about it.
Example: Harley-Davidson’s Harley Owners Group (H.O.G.) community.
12. What are loyalty programs?
Correct Answer: Loyalty
Explanation: Loyalty programs reward frequent purchases to keep customers coming back.
Example: Sephora’s Beauty Insider gives members exclusive discounts and early access.
13. Strategy for reaching new users with current products?
Correct Answer: Market-development
Explanation: Market development means introducing existing products to new audiences.
Example: Coca-Cola expanding from North America into Southeast Asia.
14. Trendz developing new products for global expansion?
Correct Answer: Diversification
Explanation: When a company creates new products for new markets, it’s diversifying—often the riskiest growth strategy.
15. What is a reverse-flow channel example?
Correct Answer: Product recycling
Explanation: Reverse logistics handles returns or recycling, part of circular economy practices.
Example: Best Buy’s electronics recycling bins.
16. What kind of retailer is a factory outlet?
Correct Answer: Off-price
Explanation: Factory outlets are off-price retailers selling discounted goods, often overstock or past-season products.
17. Armon Apparels’ distribution model?
Correct Answer: Exclusive
Explanation: Armon uses a controlled distribution system with only a few distributors, ensuring strong brand control.
18. Mobile coupon redemption vs paper?
Correct Answer: The mobile redemption rate is 10 times higher than paper
Explanation: Digital coupons are more convenient and accessible, dramatically improving redemption rates.
19. BP’s strategy to change public perception?
Correct Answer: Repositioning
Explanation: Repositioning involves changing brand perception, often by updating messaging or expanding offerings.
Example: BP rebranding as an “energy” company, not just an oil firm.
20. What is share of wallet?
Correct Answer: Share of wallet
Explanation: Share of wallet is the percentage of a customer’s total category spend going to a brand.
Example: If you spend $300/month on groceries and $150 of that is at Kroger, Kroger has 50% share of wallet.
