Entrepreneurship Ch 5 Vocab

Marketing Mix

A blending of the product, price, distribution, and promotion used to reach a target market.

market share

A business's percentage of the total sales by all companies in the same market.

game plan

A marketing strategy should be consistent with the overall _____ that a business sets.

Demand-based Pricing

A new computer device that acts as a watch but also lets you surf the Internet, text, use voice commands, track your fitness levels, access GPS navigation, and much more has just been released. There are people who want this device so badly they are willing to pay any price for it. This device should be priced using ______.

Marketing

All of the processes- planning, pricing, promoting, distributing, and selling-utilized by a company to place its products in the hands of potential customers.

positioning

Creating an image for a product in the customer's mind

Promotional Pricing

During late summer, Nordstrom department stores offer fall and winter clothes at a discounted price for a short period of time. After that time, the price of this clothing goes up and is not reduced again until the end-of-season clearance. This is an example of _____.

Analyzing the competition. Incorporating your key differentiation into your messaging. Learning about your audience. Setting realistic financial goals. Creating a diverse marketing strategy. Driving customer loyalty.

List six elements that should be addressed in a company's marketing strategy

psychological pricing

Pricing that is based on the belief that certain prices have an impact on how customers perceive a product.

demand-based pricing

Pricing that is determined by how much customers are willing to pay for a product or service

Cost-Based Pricing

Pricing that is determined by using the wholesale cost of an item as the basis for the price charged

Discount pricing

Pricing that offers a reduced price to encourage customers to buy.

features

Product characteristics that satisfy customer needs

False

True or False. Opening two more restaurants in other locations around the city would be an example of a short-term goal for the owner of a new restaurant.

Marketing Concept

Uses the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service.

Decrease Expenses

Which of the following is not a pricing objective?

penetration pricing

Which of the following pricing strategies is often used when introducing a new product into the market with the goal of developing a strong customer base while discouraging competition?

fitness apparel

Which of the following would be a good addition to the product mix for a health club?

$11.20

You own an office supply store. you purchase desk lamps at a wholesale cost of $14 each. You use a markup of 45 percent to determine the selling (retail) price. At the en of the season, you offer a discount price using a markdown of 20 percent of the selling price. The discount price for desk lamps is _____.

Marketing Strategy

Identifies how marketing goals will be achieved.

Return On Investment (ROI)

The amount earned as a result of an investment.

differentiate the company's product mix

The branding, packaging, and labeling of your product should accomplish all of the following except

product mix

The different products and services that a business sells

brand

The name, symbol, or design used to identify your product

All of the above

To successfully use the marketing concept, a business must do which of the following?