Chapter 4/5 review
You own an office supply store. You purchase desk lamps at a wholesale cost of $14 each. You use a markup of 45 percent to determine the selling (retail) price. At the end of the season, you offer a discount price using a markdown of 20 percent of the selling price. The discount price for desk lamps is
$16.24
A business may set its prices for products or services by using
All of these
A business's marketing plan should never be included in the business plan.
False
Opening two more restaurants in other locations around the city would be an example of a short-term goal for the owner of a new restaurant.
False
Which of the following would most likely be the target market for a car dealer selling moderately priced minivans?
Middle-class families with children
Which of the following pricing techniques is often used in the introductory stage of a product?
Penetration pricing
A marketing strategy should always be consistent with the overall goals that have been set for the business.
True
A small percentage of a company's product mix often makes up the majority of its sales revenue.
True
Entrepreneurs estimate demand for their products or services by identifying their target market.
True
Entrepreneurs must regularly evaluate the actions they take as a result of their market research. It is not enough simply to develop a plan of action.
True
Market research can be time-consuming and expensive, but it is worthwhile when major decisions must be made.
True
The Nike "swoosh" is an example of a product
brand
Which of the following is not a step involved when preparing a competitive analysis?
create a customer profile
The FIRST step of primary market research is to
define the question
The branding, packaging, and labeling of your product should accomplish all of the following except
describe the company's product mix
To use the marketing concept, businesses must do all of the following except
devote half of its profits toward marketing.
Data that help you determine where your potential customers live and how far they will travel to do business with you are called
geographic data.
By continually evaluating your market, you can be ready to respond to changes in all of the following except
government
A product mix
is the different products and services that a business sells.
When a company offers different products and services within the same category,
it is trying to serve different customer needs.
The main purpose of customer loyalty strategies is to
keep customers happy so that they return to the business.
Once an entrepreneur has identified his/her goals, it is time to develop a
marketing strategy
Marketing goals
none of these
The marketing concept
none of these
Marketing consists of all of the following processes except
operating
A competitive analysis does all of the following except
research a competitor's business plan.
If a store sells snow shovels for half-price in the middle of the summer, the store is offering customers a
seasonal discount
Companies that use the marketing concept will
select a product mix that will most appeal to their target market.
Which of the following is not an example of primary data?
statistics from a government website
Which of the following is an example of psychographic data?
suburban dweller, loves country music, eats pizza twice weekly
All of the following can provide information about direct competition except
the U.S. Postal Service.
In designing a survey, you should consider all of the following except
when you can get the best information.
The return on investment (ROI) is the amount earned as a result of the investment and is expressed in fractions.
False
To retain customers, you will need to occasionally ask them for their opinions about your business and respond to their feedback.
False
When services are combined under one charge, rather than making the customer pay for each individual part of the service, this is called price skimming.
False
