Chapter 5 Market your business

The brand, package, and location that you choose for a product can help differentiate it from others on the market,

False

The highest price identified is the minimum price that can be charged.

False

The marketing concept uses the needs of entrepreneurs as the primary focus during the planning, promotion of a product or service, production, and distribution.

False

To earn a profit, prices need to be low enough so that revenues exceed expenses.

False

Your market share result rarely depends on the level of competition in your market.

False

When applying the ____, you will select the mix of products and services that you feel appeal to your target customers.

Marketing mix

___ is determined by adding a percentage amount to the whole sale cost of an item.

Markup price

Not every product has features.

False

Penetration pricing is used in the introductory stage of a product.

False

Price skimming is used when a product is old or antique.

False

Pricing techniques can not change over time.

False

Product features, price, and quality may be used for branding.

False

Promotional pricing temporarily offers a higher price to increase sales.

False

Since the 1960's the U.S. market has changed from being customer driven to product driven.

False

The Nike "swoosh" is an example of a product _______.

Brand

Your market share will depend on the level of ___ in your market.

Competition

Seasonal discounts are reductions on the list price granted by a manufacturer or wholesaler to buyers in the same trade.

False

____ is when all services are combined under on charge.

Bundled pricing

Marketing strategy has nothing to do with your distribution.

False

When a business uses a set percentage to determine a retail price, it is using ____ pricing.

Cost-based

Different products and services within the same category serve different ____.

Customer needs

___ offers customers a reduced price.

Discount pricing

Demand- based pricing is used only by businesses that are monopolies.

False

Markdown price is determined by adding a percentage amount from the retail price.

False

Product characteristics that will satisfy customers needs.

Features

___ goals are achievement plans for the next 5, 10, or 20 years.

Long-term

A __ price is a price determined by subtracting a percentage amount from retail price of an item.

Markdown

The four elements of the ___ mix is product, distribution, price, and promotion.

Marketing

Companies that use the _____ will select a product mix that will most appeal to their target customers.

Marketing Concept

A successful___ will identify what will satisfy customers, and operate profitably.

Marketing concept

____ pricing items in multiples.

Multi-unit pricing

The box, container or wrapper an item is placed in is the _____.

Package

Creating a image for a product in the customers mind is called_____.

Positioning

____ a high price to create a feeling of superiority.

Prestige pricing

The ___ is the actual amount a customer pays for a product or service.

Price

____ involves offering different levels of prices for a specific category of product based on features and quality.

Price lining

Businesses should always set their ___ high enough to make profit.

Prices

The ___ mix of a business is made up of the different products and services it sells.

Product

The different products and services a business sells is the _____.

Product Mix

____ is based on the belief that certain prices have an impact on how a customer perceives a product.

Psychological pricing

_____ is the amount earned as a result of the investment.

Return on Investment

A business's market ___ will depend on the level of competition in its market.

Share

A marketing ___ is a plan that identifies how your marketing goals will be achieved.

Strategy

The __ should be considered when selecting product features.

Target Market

You should think carefully about which products and services most appeal to your ___.

Target customers

Price is one of the elements of ____.

The marketing mix

A marketing plan anticipates changes.

True

A marketing strategy is a plan that identifies how business goals will be achieved through marketing efforts.

True

A written marketing plan can help you define your market and identify your customers.

True

Branding is the name. symbol, or design used to identify your product.

True

Companies can increase market by lowering prices.

True

Features satisfy customer needs.

True

Licensing is the process of selling your idea to a company for the development and launch of a new product.

True

Product features include such things as color, size, quality, hours, warranties, delivery and installation.

True

Services can be bundled rather than making the customer pay for each individual part of the service.

True

Short term goals can be stated in terms of a number a customers.

True

Survey potential customers to determine what they would be willing to pay for a product.

True

The total market for a product must be known in order to determine market share.

True

With cost-based pricing, the price is determined by using the wholesale cost of an item as the basis for the price is charged.

True

Medium-Term goals are achievements planned for the next ___.

Two to Five years