Marketing Test
purchasing power
A comparison of income versus the relative cost of a set standard of good and services in different geographic areas
Federal Trade Commission FTC
A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
What is an example of an industrial user?
A hairstylist buying new scissors to perform haircuts
exchange
People giving up something to receive something they would rather have
Which indirect channel of distribution is used to reach larger retailers when the producer does not want responsibility for the selling activities?
Producer to agent to retailer to consumer
trademark
The exclusive right to use a brand or part of a brand
base price
The general price level at which the company expects to sell the good or service
marketing concept
The idea that social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives
predatory pricing
The practice of charging a very low price for a product with the intent of driving competitors out of business
planning
The process of anticipating future events and determining strategies to achieve organizational objectives in the future
customer value
The relationship between benefits and the sacrifice necessary to obtain those benefits
demographics
The study of people's vital statistics, such as their age, race, ethnicity and location
Producers are able to match their production to the needs of consumers or industrial users because intermediaries____?
develop an assortment of goods
Quality Distributors buys electrical equipment and supplies from ABC electric and sells them to local electric contractors. Quality Distributors is what?
intermediary
The use of intermediaries enables producers to make larger profits because intermediaries what?
may sell more than the producer could sell on its own
what distribution channel is used for high-priced industrial goods when the producer does not have its own sales force?
producer to agent to user
What is the most common channel of distribution for large industrial user?
producer to industrial user
What is a direct channel of distribution for consumer goods and services?
producer to ultimate consumer
Intermediaries buy large quantities of goods from producers and sell smaller quantities to other intermediaries or to consumers. The result is that intermediaries____ their per-unit cost for goods.
reduce
Wal-Mart, Dominos, and Avis Rent-A-Car are what?
retailers
An intermediary function that makes goods available to consumers where they are wanted and needed is____?
transporting and storing
What services would be distributed by a producer to agent to consumer channel?
travel planning
Top-Notch Wheels buy mountain bikes from the Great Colorado Mountain Bike Company and sells them to bike shops. This is an example of what?
wholesaler
What type of intermediary would purchase baseball bats from one producer, mitts from another, and balls from still another and then sell an assortment to sporting goods stores?
wholesaler
recession
A period of economic activity characterized by negative growth, which reduces demand for goods and services
production orientation
A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
escalator pricing
A price tactic in which the final selling price reflects cost increases incurred between the time the order is placed and the time delivery is made
consumer product
A product bought to satisfy an individual's personal wants
competitive advantage
A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
marketing objective
A statement of what is to be accomplished through marketing activities
What is an example of an ultimate consumer?
A teenager buying his/her first car
marketing plan
A written document that acts as a guidebook of marketing activities for the marketing manager
the marketing mix
Product, Price, Place and Promotion
marketing strategy
The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets
Marketing (book Def.)
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
What is a benefit of channels of distribution?
We can more easily obtain products from all over the world
multiculturalism
When all major ethnic groups in an area-such as a city or county are roughly equally represented
An advantage for producers in using the producer to wholesaler to retailer to consumer distribution channel is that___?
Wholesalers usually buy in large quantities
Where does the channel of distribution begin?
With the producer
What retailers would most likely be a part of the producer retailer to consumer channel?
a large retail chain
What intermediaries never actually own the products it promotes and sells?
agents