Assessment of Skills and Knowledge(ASK) in Fundamental Marketing Concepts Practice Test

The price a business sets on a particular product often has an effect on the business's choice of a(n) ________________ to promote that item.

1. Slogan

2. Agency

3. Medium

4. Visual

The correct answer is: Medium

The price a business sets on a product can significantly influence its choice of medium for promotion. This is because the budget allocated for a promotional campaign is typically aligned with the product's pricing strategy. Higher-priced products may require more upscale and selective mediums to reach a target audience that can afford those products, such as premium magazines, television spots, or specialized online platforms. On the other hand, products positioned at lower price points might utilize more mass-market channels like social media or local newspapers, which can reach a broader audience at a lower cost. Choosing the appropriate medium is crucial as it helps ensure that the promotion is effective and reaches potential customers who are most likely to be interested in the product based on its price. A more expensive item may also warrant a more elaborate marketing approach, thus impacting the selection of the medium used for advertising.