Fundamentals of Marketing Test
What are the steps to setting prices?
1. Select the price objective 2. Determine demand 3. Eliminate costs 4. Analyze Competitor pride mix 5. Select pricing method 6. Select final price.
How do companies go about developing products?
1.)IDEA GENERATION 2.)SCREENING 3.)CONCEPT DEVELOPMENT AND TESTING 4.)BUSINESS ANALYSIS 5.)PRODUCT & MARKETING MIX DEVELOPMENT 6.)MARKET TESTING 7.)COMMERCIALIZATION
In marketing, one important activity is to identify a target market. What is a target market and why is this important to identify? Also, what does it mean to segment the market?
A target market is a particular group of consumers at which a product is aimed. Segment the market means to divide mass markets into distinct groups of buyers.
Explain what ROI is and how we calculate it.
ROI (Return On Investment) is how you track your venues, profits, and expenses. Calculated by the benefit of an investment is divided by the cost of the investment. The result is a %.
When setting personal or pricing goals-they should be SMART; what does that mean?
SMART means: Specific Measurable Attainable Relevant Time-bound
Show how supply and demand set prices-and what happens when supply/demand change-and what happens when price changes.
Supply sets prices when a product is high in price. Demand causes customers to avoid buying the product when it's high in price. When supply changes, demand goes down, and when demand changes, supply goes down. Price changes when suppliers are able to supply the product.
What are the 4 p's of the marketing mix, and what is happening in each?
The 4 p's are: 1.)PRODUCT: function packaging services. 2.)PRICE: cost discounts margin. 3.)PROMOTION: advertising sales publicly. 4.)PLACE: distribution logistics channel.
What is the definition of marketing? Include all components of marketing, and explain them.
The definition of marketing is the action or business of promoting and selling products or services.
Be able to calculate markups a. If the cost of an item is 51, and the markup is 15%, what is the sales price.
The sales price is $34.
Identify strategies within the pricing strategies of product mix, promotion, and psychological.
The strategies of product mix are: Product Line Pricing—>Optional-product pricing—>Captive-Product Pricing—>By-Product Pricing—>Product-Bundle Pricing The strategies of promotion are: Shows & Seminars—>Promotionals—>Direct Marketing—>Advertisements—>Publicity The strategies for psychological are: Motivation—>Perception—>Beliefs & Attitudes
What are three different pricing objectives?
The three pricing objectives are: 1.)Profit oriented. 2.)Sales Oriented 3.)Status Quo Oriented
Be able to calculate ROI a. If Foot Locker sells shoes for 89.99 and their cost was 51.00, what was their ROI?
Their ROI was 18%