Entrepreneurship Chapter 5-6 Review
Market Share
A business's percentage of the total sales generated by all the companies in the same market.
Marketing Strategy
A plan that identifies how these goals will be achieved.
To successfully use the marketing concept, a business must do which of the following? A. Identify what will satisfy the customers' need and wants B. Develop and market products or services that customers consider better than other choices C. Operate profitably D. All of the above
All of the above
If you have a local business that offers a service to consumers in your neighborhood, which of the following would be the best way for you to advertise? A. A commercial aired during the super bowl B. An advertisement on satellite radio C. An advertisement in the local newspaper D. A billboard on a major interstate highway
An advertisement in the local newspaper
Direct Marketing
Consists of any marketing that relies on direct communication or distribution to individual consumers, rather than through a third party such as mass media.
Positioning
Creating an image for a product in the customer's mind.
The branding, packaging, and labeling of your product should be accomplish all of the following except: A. Identify you product B. Describe the company's product mix C. Differentiate your product from the others on the market D. Provide information about the product
Describe the company's product mix
Which channel of distribution would be best for someone who makes and sells pottery at his or her home? A. Manufacturer to consumer B. Manufacturer to retailer to consumer C. Manufacturer to wholesaler to retailer to consumer D. Manufacturer to agent to wholesaler to retailer to consumer
Manufacturer to Consumer
Direct Channel
Moves the product directly from the manufactures to the consumer.
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? A. Price skimming B. Penetration pricing C. Prestige pricing D. Price lining
Penetration Pricing
List six elements that should be addressed in a company's marketing strategy.
Product introduction and innovation, pricing, distribution, promotion, sales and market shares, and projected profitability.
During the late summer, Nordstorm's department store offers 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 the season clearance. This is an example of: A. Prestige pricing B. Price lining C. Promotional pricing D. Multiple unit pricing
Promotional Pricing
Marketing Mix
A blending of the product, price, distribution, and promotion used to reach a target market.
Press Release
An official statement issued to newspapers giving information on a particular matter.
Distribution
Any important component of the supply chain management that involves the locations and methods used to make products and services available to customers.
A new touch screen tablet has been released. There are people who want this product so badly they are willing to pay any price for it. This tablet should be priced using... A. Demand-based pricing B. Cost-based pricing C. Competition-based pricing D. time-based pricing
Demand-Based Pricing
Physical Distribution
Includes not only transportation but also storage and handling of products and packaging within a channel of distribution.
Discount Pricing
Offers customers a reduced price to encourage them to buy.
Goods that arrive at their destination damaged probably have a problem with the ___ in the physical distribution process.
Packaging
Competition-Based Pricing
Pricing that is determined by considering what competition charges for the same good or service.
Demand-Based Marketing
Pricing that is determined by how much the 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 amount charged.
Feature
Product characteristics that will satisfy customer needs.
Publicity
Public visibility or awareness for any product or service or organization.
Advertising
The activity or profession of producing advertisements for commercial products or services.
Marketing
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.
Return on Investment
The amount earned as a result of the investment and is usually expressed as a percentage.
Supply Chain Management
The coordination of manufacturers, suppliers, and retailers working together to meet a customer's need for a product or service.
Product Mix
The different products and services a businesses sells.
Brand
The name, symbol, or design used to identify your product.
True or False. Agents and wholesalers are intermediaries that facilitate the flow of goods through direct channels of distribution.
True
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 for a new restaurant.
True
Indirect Channel
Uses intermediaries - people or business that moves products between manufacture and the customer.
Marketing Concept
Uses the needs of customers as the primary focus during the planning , production, distribution, and promotion of the product or service.
A marketing strategy should be consistent with the business's overall...?
Values
Personal Selling
Where businesses use people (the "sales force") to sell the product after meeting face-to-face with the customer.
True or False. Publicity is always good for a business.
False
Which of the following would be a good addition to the product mix for a health club? A. Diamond rings B. Chocolate-chip cookies C. Fitness apparel D. Photo print service
Fitness Apparel
Marketing Communications Mix
Involves all the tools you use to communicate with your customers or potential customers.
Promotional Mix
The integration of Advertising, Personal Selling, Sales Promotion, Public Relations and Direct Marketing.
Public Relations
The process of maintaining a favorable image and building beneficial relationships between an organization and the public communities, groups, and people it serves.
Sales Promotion
The process of persuading a potential customer to buy the product.
Channels of Distribution
The routes that products and services takes from the time they are produced to the time they are consumed.
Which of the following is not a pricing objective? A. To maximize sales B. To increase profits C. To attract customers D. To decrease expenses
To decrease expenses
Marketing Plan
To define your market, identify your customers and competitors, outline a strategy for attracting and keeping customers, and identify and anticipate change .