Business Ch. 10

Steps in marketing research

1. Define the marketing problem 2. Study the situation 3. Develop a data collection procedure 4. Gather and analyze info 5. Propose a solution

The first step in new product planning is to develop a full marketing strategy

False

non-paid promotional communication presented by the media rather than the business or organization that is being promoted

publicity

Steps in the consumer decision-making process

1. Recognize a need 2. Gather info 3. Select and evaluate alternatives 4. Make a purchase decision 5. Determine the effectiveness of the decision

The simplest form of a product is called the a. basic product b. brand name c. product feature d. option

A. Basic Product

Businesses usually specialize in producing a specific type of product, while consumers want to purchase a variety of products. This illustrates differences in a. assortment b. quantity c. location d. timing

A. assortment

This marketing function involves determining ways for customers to locate, obtain, and use of the product is a. financial analysis b. distribution c. pricing d. selling

B. Distribution

A small # of consumers expressing opinions about a new product or service in a group discussion is a a. target market b. focus group c. survey group d. experimental group

B. Focus Group

Services are a. Easier than products to examine to see if they will meet your needs b. consumed at the same time they are produced c. the same no matter who provides them d. easier than product to store

B. consumed at the same time they are produced

Product costs + Operating expenses + profit = a. gross margin b. selling price c. markup d. markdown

B. selling price

Which of the following is an example of personalized promotion a. advertising b. publicity c. personal selling d. sales promotion

C. personal selling

Non-paid promotion presented by the media rather than by a business is a. telemarketing b. advertising c. sales promotion d. publicity

D. Publicity

What is the first step in the consumer decision-making process a. gather info b. select alternatives c. evaluate alternatives d. recognize a need

D. Recognize a Need

A product will probably have a relatively high price a. if there are many companies supplying product b. if its supply is high c. if it has been on the market for a long time d. if it has many features and options

D. if it has many features and options

Baby Monitor

Emotional

Birthday cake and party supplies

Emotional

Hawaiian Vacation

Emotional

Life Insurance Policy

Emotional

A markup should be thought of as a pricing mistake because it reduces the amount of $ the business has to cover operating expenses and profits

False

Advertising is any form of communication used to inform, persuade, or remind

False

Effective marketing begins with a good product

False

Product packaging is the least important part of product planning because consumers simply throw away the packaging before using the product

False

Activity, set of institutions, and processes for creating, communication, delivering, and exchanging offerings that have values for customers, clients, partners, and society at large

Marketing

Does a focus group involve observing the actions of consumers?

No

Is a product's route from the producer to the consumer its stream of revenue

No

Is it easier to control the quality of a service that the quality of a product?

No

Pricing rule

Prices must be set low enough that customers are willing to pay but high enough that the business makes a profit

Marketing Functions

Product and Service Management, distribution, selling, marketing info management, financial analysis, pricing, and promotion

Mortgage Lender

Rational

New refrigerator

Rational

A farmer selling at a roadside stand tomatoes she grew in her own garden is an example of a direct channel of distribution

True

A target market is a group of consumers that have similar wants and needs

True

All businesses must complete some marketing activities even if that is not their focus

True

Finding solutions to problems through carefully designed studies involving consumers is called marketing research

True

Highly complex and technical products generally have higher prices than simple products

True

Does convenience affect the price consumers are willing to pay for a product?

Yes

Is a marketing mix the blending of product, distribution, price, and promotion?

Yes

any paid form of communication through mass media directed at identified consumers to provide information and influence their actions

advertising

persons, companies, and organizations that buy product for the operation of a business, for incorporation into other products and services, or for resale to their customers

business consumers

reasons consumers decide what products and services to purchase

buying motives

businesses that take part in a channel of distribution

channel members

route a product follows and the businesses involved in moving a product from the producer to the final consumer

channel of distribution

specific sequence of steps consumers follow to make a purchase

consumer decision-making process

locations and methods used to make a product or service available to the target market

distribution

exchange of info so there is common understanding by all participants

effective communication

examples of marketing activities

establishing and accepting credit and arranging means of online payment

persons who buy products and services mostly for their own use

final consumers

difference between the selling price and the product costs

gross margin

Formula for markup on selling price

gross margin / selling price = percent markup on selling price

there will be differences in the type and quality of service provided

heterogeneous

they are consumed at the same time they are produced

inseparable

have no physical form

intangible

Marketing Percentages

marketing activities often cost 50% or more of the selling price of a product or service

blending of four marketing elements-product, distribution, price, and promotion

marketing mix

considers the needs of customers when developing a marketing mix

marketing orientation

finding solutions to problems through carefully designed studies involving consumers

marketing research

a company's plan that identifies how it will use marketing to achieve its goals

marketing strategy

amount added to the cost of a product to set the selling price

markup

includes a set of promotional activities designed to generate sales in the retail settings

merchandising

availability of a service must match the demand for that service at a specific time

perishable

$ a customer must pay for a product or service

price

Reasons for markdowns

-customer demand is not as high as projected -selling season is ending -flaw in the product

direct, individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services

personal selling

everything a business offers to satisfy a customer's need

product

Formula for selling price

product costs + operating expenses + profit = selling price

Formula for markups on cost

product costs x percent markup = markup on cost

any form of communication used to inform, persuade, or remind

promotion

final business organization in an indirect channel of distribution for consumer products

retailers

activities that are consumed at the same time they are produced

services

specific group of consumers who have similar wants and needs

target market