Intro into BUSN final

How might you differentiate the terms outsourcing and offshoring

(OUT); another organization, can be domestic. (OFF); your organization, foreign

Marcy owns Caps for Kids and sells her hand-knitted caps for $20. The variable cost per hat created is $10, and fixed costs are $10,000. What is her breakeven point?

1,000 units

Example of a pure good

A dual colored reversible jacket

_____ is a paid, nonpersonal communication, designed to influence a target audience with reguardless to a product organization, or idea.

Advertising

The extra money that consumers will spend to buy a particular brand is called ___

Brand Equity

examples of convenience product, a shopping product and a specialty product

CP= toothpaste SHP=clothing SP=luxury clothes/items

An example of a company with a large product mix. and why?

Coca-Cola. it's has brands like Minute Maid, Sprite, Fanta, Etc., under its name. There are a total of 35000 products handled by the coca-cola brand.

_____ segmentation refers to dividing the market based on measurable characteristics about people such as age, income, ethnicity, and gender

Demographics

Some producers sell the products they produce directly to the consumer through a ___

Direct channel

Provide examples of a product placement

ET, James Bond, Risky Business

What is the difference between efficiency and effectiveness?

Effieciency is concerned with the means and use of resources like people, money, and equipment while effectiveness is doing the right things, those tasks that help an organization reach its goals

Advantages of using automatic robots in your manufacturing process

Flexible/new programs, morale and fatigue do not matter, consistent

___ utility satisfies wants by converting inputs into a finished form. (Example: potatoes into potato chips)

Form

Qualities of a service (when differentiating a service from a good)

Intangible, inseparable, variability, perishable

The difference between retailers and wholesalers

Retailers sell to final customers Wholesalers sell to other organizations

Factors that might affect the location a business decides to place a production facility

Land, Labor market, Transportation, Climate, Healthcare, Taxes, Etc.

___ is the actual movement of products along the path that a product takes from production to consumer

Physical Distribution

Different types of sales promotion and an example of each

Premiums ( free "extras") Promotional (hats, magnets, koozies." Free samples Coupons Rebates Commercials

This is an advantage and disadvantage of using radio to reach customers

Quick turnaround, highly targeted, inexpensive; relies on listening, many do not listen to commercials.

Examples of why establishing customer loyalty is beneficial to an organization

Repeat purchases, provide feedback, forgive mistakes, refer friends

The supply chain begins with the _____ and ends with _____.

Suppliers of raw materials; organizations selling to the final consumer

Big bill energy drink focuses it marketing on young males engaged in athletics who are seeking thrills. It advertises its product at shakeboard parks and ski resorts. This customer group that big bill clearly focuses it marketing efforts toward representing the ______.

Target Market

Your ____ ____ is the group of people who are mostly to buy your product.

Target market

___ stresses customer satisfaction as the central focus of the entire organization.

The marketing concept

What do Mary Kay Cosmetics, The Pampered Chef, and Tupperware have in common?

They are multilevel marketers.

Marketing seeks to provide long term profitability by first delivering _____ to customers

Value

Hair It Is, Inc. is a hair salon that in addition to cuts and styles, also sells a line of celebrity inspired wigs. Their most popular wig is the Thriller which is a spray on wig that will last approximately three months. Based on this information Hair It Is, Inc. is offering:

both tangible and intangible products

The most significant difference between the consumer buyer and the business buyer is that the:____

business buyer bases purchases on specifications rather than on a personal judgement.

_____ dominate the marketing by offering a huge variety of one type of product.

category killers

HP relies heavily on wholesale and retail channel partners to distribute its computers. Dell elects to sell most of its computers directly to consumers without using intermediaries. Clearly, these firms have different ___.

channels of distribution

In order to help customers feel comfortable with their decision to purchase a new car, manufactures are offering extended warranties, free oil changes, and maintenance checks. This is an effort to offset ____.

cognitive dissonance

Paolo Brothers Inc. was awarded a contract to build the new middle school for a local school district. Jim Paolo, a project manager for the company has put together a list of activities necessary to complete the project; the time it will take to complete each activity, and the sequence of each activity's immediate predecessors. This information could be used to construct a(n) ______

critical path.

Retailers nordstrom and neiman Marcus provide a wide variety of merchandise and a high level of service. These two companies are examples of:

department stores

Giga-Mart offers a wide selection of products at lower prices than department stores, so it would be classified as a(n):

discount store.

In operations management, ____ refers to completing a task or producing a product at the lowest cost.

efficiency

A meal at a family restaurant is an example of a pure service.

false

Manufacturers seldom place much emphasis on packaging, because this aspect of the product has little relevance to the customers deco making process

false

Marketers have more control over publicity than they do over advertising.

false

Shirtzter, a manufacturer of men's shirts and jackets, has just reached an agreement to pay Kwasiaki a substantial fee for the right to use the company's name and logo on some of its clothing lines. This type of arrangement is known as secondary branding.

false

Tom Taylor is in the market for a new car, but not any old car will do, He is convinced that the Gambolini Turbo Terror roadster is the only car that will meet his needs. Thus, despite its high price tag and the fact that the nearest dealer is over 90 miles away, Tom is set to buy the car. This suggests that for Tom the Gambolini roadster is a shopping good.

false

MicroMaster advertises that its computers are backed by 24/7 toll free technical support. However, in order to meet its goal of keeping costs as low as possible, MicroMaster located its support function in another country and staffed it with a small number of poorly trained employees who had (to American ears) heavy accents. When customers call the support line, they often must wait on hold. Then they find themselves speaking to someone who often can't answer their questions even if the customer could understand what the tech support person was trying to say in the first place. It appears that MicroMaster ______

focused on efficiency at the expense of effectiveness

Market research involves:

gathering, interpreting, and applying information to uncover opportunities and challenges.

As a manufacturer of low cost chocolate covered peanuts Venus Candles places their products in as many locations as possible in order to make it easy for customers to purchase the product. Venus Candles is employing:

intensive distribution

When the vice president of operations for McDonald's looks for a new franchise location, what should he or she consider first?

is the prospective location near customers and suppliers?

All of the following are benefits of customer loyalty EXCEP

lower costs of production

A firm's _____ is the percent of the total market for a product that is controlled by that company.

market share

________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

marketing

___ is a philosophy that makes customer satisfaction the central focus of the entire organization.

marketing concept

Jesse is the marketing manager for a large Midwest-based producer of food products. He is in the process of developing the _____, which takes into consideration the marketing strategies for product, price, promotion, and place.

marketing mix

Billie Raney is in charge of a major construction project for her company. She was just informed that the plumbing installation has hit a snag and could be delayed. Billie is very concerned about this, because she knows that any delay in the plumbing is likely to hold up the completion of the entire project. This suggests that the plumbing installation is:

on the project's critical path

____ is concerned with all of the activities involved in creating goods and services and the distribution of those goods and services to customers.

operations management

MyWays produces GPS navigation units. It accepts all major credit cards and offers a variety of attractive financing arrangements and free shipping. All of these efforts show that MyWays is making a strong effort to provide __ utility.

ownership.

___ is a pricing strategy for new products that aims to capture as much of the market as possible by offering rock bottom prices.

penetration pricing

Stay-Inn is a chain of hotels that locates their properties near major highway off ramps. this is an example of a business providing:

place utility

Sending products by ___ is the most expensive option available to producers.

plane

Justin Case is the owner of Case Fire Suppression. After attending a seminar on the benefits of offshoring, he has decided to move his company's production facility to Mexico because of its lower labor cost. After hearing the news you ask him if he considered the following:

problems with infrastructure, including power outages and water shortages.

A(n) ___ is a set of activities or steps that combine inputs to create a good or service.

process

__ is the difference between the price of a good and the cost to make the good, on a per product basis; and, it is usually expressed as a percentage.

profit margin

Peter starting a new business. He recognizes a first step before developing his market strategy is the __. this is the process of identifying similar characteristics, attributes, and behaviors of your total market, and grouping customers into groups according to these characteristics, attributes, and behaviors.

segmentation

Employing ___ means selling products at a limited number of preferred retailers in a given area, is a common approach for distributing medium and higher priced products.

selective distribution

Deciding how much inventory to keep on hand can be a challenge. Jackie, a local toy store manager has ordered a large number of skateboards for the holiday season. Most likely, her reason for this tactic is:

she is preparing for a large sale and does not want to run out

After finalizing on the rental of an apartment, Brooke and Katie began shopping for cleaning supplies. Brooke chose name brand items before going to the cashier. Katie noticed the price difference between name brand and store brand and asked her friend about her choices. Brooke explained that her mother always used name brands and taught her that store brands just don't clean as well. Apparently, ___ factors were a major influence on Brookes choices.

social

The ____ for products includes not only distribution channels but also the many suppliers who deliver to the producers.

supply chain

The search engine optimization

taking specific steps to ensure that your site appears when performing a search

EZ Eats is a local fast food restaurant that is open 24-7. Management guarantees that customers will be served within five minutes after placing an order for any item on its menu. EZ Eats is focusing on satisfying customers by providing:

time utility

When a business provides ___ they satisfy customers wants and needs providing goods and services at a convenient moment for customers.

time utility

Automobile tires could be either a consumer product or a business product.

true

Beta Feta, a cheese distributor in New York, has contracted with a large construction firm to build a new warehouse facility. This type of expenditure is an example of an installation.

true

Margo has decided to join Tone-It-Up Fitness in an effort to become physically fit. The core benefit Margo is seeking revolves around her desire to become more physically fit

true

Personal selling is considered the worlds oldest form of promotion and involves face to face presentation of products and services to potential buyers.

true

Premiums, samples, coupons, and rebates are all explained of consumer promotion tools.

true

Sam is in the market for a new computer. He is leaning toward buying a model produced by Micromax because he likes the fact that they have a two year warranty, and he has heard good things about the company's customer phone support and website. Sam's choice appears to be influenced by the augmented benefits offer by Micromax.

true

The brand name and packaging of a product are considered part of the actual product.

true

The perishability of services means that providers cannot stop them for later use.

true

product differentiation includes real or perceived differences that serve to distinguish one good or service from the next.

true

specialty products are products that consumers seldom purchase but are very important to the consumers. If the product is unavailable, substitutes are not considered.

true.

___ is the customers perception that a product has a strong, positive relationship between its cost and benefits.

value

The main distinction among members of a channel of distribution is whether they are

wholesalers or retailers.