Good-value pricing combines higher quality with a lower price. This is not one of the cost-based pricing approaches. Therefore, the correct answer is D.

Brand equity as ‘a set of brand assets and liabilities linked to the brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm or to the firm’s customers’. In a way, brand equity is the positive differential effect that knowing the brand name has on consumer response to the product or service.

As one of the oldest concepts in business, production concept states that consumers will favor those products that are widely available and low in cost. So business is mainly concerned with producing as much as possible without emphasizing on quality and features. In this concept, the main aim of the company is to increase production level regardless of the demands of the consumers. Companies sell what they are good at producing. Generally, production-oriented businesses concentrate on more productivity level, low costs and mass distribution. This orientation is commonly used for markets where there is limited supply and few competitors. The correct option is C.

The actors such as manufacturers, distributers, wholesalers, retailers, dealers, agents, brokers, logistics and transportation companies are typically involved in the marketing channels, and each channel actor (member) depends on the others to do their works.

Order Processing: The ability of companies to establish good relations with their consumers depends on how to handle orders given by the customers. Activities related to order processing provides information inputs that are critical in fulfilling a customer’s order. Order processing includes all activities related to receiving, entering and processing orders.

The economic impacts of marketing and logistics can affect individual consumers. These impacts can be explained through the concept of economic utility, which is the value or usefulness of a product in meeting customer needs and wants. In making goods and services available to customers, marketing and logistics channel members add value by creating the place, time, possession, and information utilities. The correct answer A. 

Marketing mainly includes:

• An evaluation of the market and estimates of sales,
• Development of the marketing strategy,
• The planning and operation of the marketing function (internal and external) for maximizing sales,
• Conducting promotional activities,
• Setting budgets for the marketing activity.
• The evaluation of results by reference to internal data and the results of market research.

As can be understood from the information given, the correct answer is E.

First, a marketing channel is “set of interdependent organizations”, meaning a marketing channel is not just one company doing its best in the market for the customers; instead, many organizations normally take part in the marketing channels. Second, operating a marketing channel is a “process”. There are a number of processes and transactions a product or service follows production, resulting in purchase and consumption by the final user or consumer. Third, the purpose of the marketing channel is to satisfy the final customers (consumers or business buyers) in the market by making a good or service available for use or consumption.

The pricing strategies change in different stages of product life cycle. Two pricing strategies can be used in the introductory stage: market-skimming and market-penetration. Market-skimming pricing sets high prices to skim higher revenue from the market. Prices are dropped to attract new buyers after a while. In other words, prices are decreased step by step to sell the products to new consumers. In market-penetration pricing, companies set low prices to penetrate the market as much as possible.

Price can be affected by many factors. These factors can be grouped as external and internal factors that may be marketing objectives and pricing objectives, marketing mix strategy, costs, organizational considerations, nature of the market and demand and competition.

The financial channel carries out payment for goods and handles the company’s credit

Accumulation refers to bringing together similar inventory from a number of sources into a larger homogeneous supply. Allocation accounts for breaking down a homogeneous supply into smaller lots. Assorting stands for building up of an assortment of products for reselling in association with each other.Sorting means breaking down a heterogeneous supply into separate stocks that are relatively homogeneous. The correct answer is B. 

The term market can have a number of meanings. It is used to refer primarly to the place where goods were bought and sold. It can also refer to a geographic area such as Turkish market. In some occasions, “market” refers to the relationship between the demand and supply of a specific product. A market is the cluster of actual and potential buyers of a product or service. These actual and potential buyers have a specific need or want that can be satisfied through exchange relationships. In a typical market-place, buyers and sellers come together to conduct transactions for their mutual benefit. As can be understood from the information given, the correct answer is E. All statements related to market are correct.

Marketing management, on the other hand, is “the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior value”. A marketing manager considers some important questions given below:

• Who is our target market?
• What customers will we serve?
• How can we serve these customers best?
• What is our value proposition?

Cities, states, nations conduct marketing activities to attract tourists, investors, residents, and businesses. Many places want to build a new image of the place to replace negative images. Amsterdam city has been conducting a successful place marketing campaign. The city has changed its focus from attracting touristis to promoting city as an ideal location to do business, organize international conferences and meetings and locate or relocate company headquarters. “Iamsterdam” is Amsterdam’s hugely successful marketing slogan. Launched in September, 2004, the sign — at the back of the Rijksmuseum — has become one of the city’s most photographed icons. The correct option is A.

Price can be set between two limits. The upper limit is customer value while the lower one is cost. The gap between these limits is called “Strategic Pricing Gap” Price can be set between two extremes: cost and customer value.

Price is one of the major factors affecting consumers’ purchase decisions. Price is more important for consumers in developing countries than consumers in developed countries. As the level of development of countries increases, the importance given to price decreases. Non-price factors such as consumer tastes or preferences are more important in developed countries.

Price differs from other marketing mix elements due to some reasons. Firstly, it produces revenue while others create a cost. Companies bear the costs of other marketing mix elements to create value for consumers while price captures value from them. Secondly, price is the most flexible element of the marketing mix. In other words, a change in price is reflected on demand immediately. Therefore, it is a strategic tool used by companies. However, companies should be careful while using price as a strategic tool because of its psychological effects on consumers. Lastly, price has a negative relationship with demand. This means that if the price of a product increases, the demand of it decreases and vice versa. Besides these differences, price should be consistent with other marketing mix elements. The correct answer is D.

Consumer markets are where people buy their needs such as vegetables, fruit, flowers, meat, fish and groceries etc. Therefore, the correct answer is A.

The Cartier bracelet is a speciality product in this case since it has a higher price compared to many other jewellery stores and the Cartier brand was probably chosen deliberately. therefore the correct answer is E.