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.