Retail operations are generally carried out in large-scale stores. Non-store retailing is classified into four main categories: Direct selling (also called network marketing, multilevel marketing), direct marketing (including direct mail, catalog marketing, telemarketing, and internet selling), automatic vending, and buying services. Therefore, the correct answer is A.

In predatory pricing, a too low price (sometimes below the cost) is charged to drive a competitor out of business. The correct answer is D.

In competitor-based pricing, price is determined by considering the market or competitors.

Consumers are individuals who buy products or services for personal consumption. Since not all consumers are similar in terms of preferences, buying habits etc., marketers define their consumers’ characteristics through market segmentation based on demographic, psychographic, behavioristic and geographic criteria. The correct option is E.

Products have five levels and each level adds more customer value.

Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior value. Positioning is about developing a market offering to the target segments and achieving a position in the minds of the customers. Market offering is a mixture of products, services, information or experiences offered to a market to satisfy a need or want. Market segmentation is a process of dividing the market into smaller groups that the members of each group are similar to each other as well as their reactions to the marketing mix of the company. The correct option is B.

Accumulation refers to bringing together similar inventory from a number of sources into a larger homogeneous supply.

A marketing system is mainly defined as an environment where main players, such as suppliers, companies, competitors, marketing intermediaries, and consumers come together, so the correct answer is E.

Companies work with their suppliers in order to supply the needed parts, raw materials, services needed in their production processes. Suppliers can have a significant influence on a manufacturer’s performance, through their contributions to cost reduction, new product design and enabling the constant improvement of quality. In today’s increasingly competitive environment, it is no longer enough to understand customers in the marketing system of the companies. Firms must pay close attention to their competitors and need to constantly compare their products, prices, channels, and promotional efforts with their competitors. The main role of marketing intermediaries is to make goods available and accessible to target markets by offering more effectiveness and efficiency than the selling company could achieve on its own. This is realized through their contacts, experience, specialization, and scale of operation.All the parties in the marketing system are affected by major environmental forces such as economic, political/ legal, demographic, physical, technological, and social/cultural forces.

Deceptive pricing involves price deals which mislead consumers. Price fixing is a conspiracy in which two or more competitors set prices together. In predatory pricing, a too low price (sometimes below the cost) is charged to drive a competitor out of business

UNESCO, Unicef, Kızılay and Greenpeace are nonprofit markets. They provide benefit to society and they are subject to different set of laws. Some educational institutions, charitable organizations and government agencies can be given as examples. However, McDonald’s is a global market. The correct option is D.

So far, price, factors affecting price, and major pricing strategies have been discussed. This part focuses on price setting process. This process consists of six steps

The customer is the keystone in any channel design; and therefore, the size geographic distribution, buying habits, outlet preferences and usage patterns of customers must be taken into account when making channel design decisions.

Break-even pricing is a cost-based pricing approach, too. The company determines the price to reach break-even point or target profit. Break- even volume is calculated as follow.Break even volume= perior fixed costs / price variable cost per unit

Contractual Vertical Marketing System consists of independent firms at different levels of the production and distribution, integrating their programs with a legal contract to achieve more sales or savings effect than they could obtain alone.

A good brand name should possess all the above, however it should also be legally protectable. Answer B 'needn't be legally protectable' is not a good idea, therefore it is the correct answer.  

Product Type

• A group of items within a product line that share one of several possible forms of the product.

• Example: Gel toothpaste.

Possession utility is the value consumers put on buying a product and having the freedom to use the product.

Delivering chocolate is an augmented product in this case. Therefore the correct answer is D.

The sorting function undertaken by intermediaries covers the functions of sorting, accumulation, allocation, and assorting. Accumulation refers to bringing together similar inventory from a number of sources into a larger homogeneous supply.

The external factors that is determine the fixation of price, are market and demand structure, economic factors, competitors’ costs and prices, distribution channels and legal regulations.