Entrepreneurship 2
Certain product characteristics often require a business to select intermediaries that have specific
Capabilities
Which of the following is an example of a company's using brand extension?
Coca-Cola adding Caffeine-Free Diet Coke
If the XOB Company wants to emphasize the advantages of its product in comparison to similar products in the marketplace, it should position its product in relation to:
Competitors
What do businesses often take into consideration when forecasting sales for marketing plans
Competitors' market share
Which of the following are product factors that a business to select intermediaries that have specific
Complexity, perishability, and unit value
Sandy opened a small business that carries a very wide variety of products of varying qualities at many different prices. Sandy is losing customers who are disappointed with the selection, quality, and quantity of items. What is lacking in Sandy's product mix?
Consistency
What primary factors do business owners consider when determining the ceiling prices of their products?
Consumer perceptions and demand
A primary reason for establishing a marketing budget is that it helps a business.
Control Spending
When a business offers a service that saves time for a customer, its benefit to the customer is:
Convenience
An effective mission statement should effectively reflect the business's:
Core Values
What does a business need to consider when developing a marketing budget?
Cost of performing marketing activities
Businesses should set their selling prices at a level that will:
Cover expected markdowns and expenses
One of the main goals of promotion in marketing is to:
Create desire
Metrics that gauge the market's buying habits and attitudes relate to the:
Customer
Marketers often condense USPs into short slogans because:
Customers tend to remember just on thing from an advertisement
When beginning to develop a promotional plan, it is important for a business to:
Define its promotional goals
Text-message advertising is most likely to be successful when the ads are:
Delivered to the cell-phone numbers of people interested in the product
Which of the following is an example of a measurable objective that a business might include in its promotional plan?
Distribute 500 flyers by March 1
Which of the following is a characteristic of pure services?
Does not include a tangible product
When considering the services to offer customers, a business should determine if a specific service would:
Enhance customers-satisfaction levels
Which of the following individuals would a business be most likely to ask for a prediction of next year's sales?
Experienced Salesperson
A business is extending its operating hours to accommodate its customers. Which of the following is a business cost associated with this service.
Higher payroll expenses
It is appropriate for a business to use personal selling as a key element of the promotional mix when the product is:
Highly Technical
Marketers determine distribution intensity so they can achieve
Ideal market exposure
The marketing objectives that a business develops for its marketing plan should lead to a a(n):
Increase in sales
Which of the following is an example of an effective marketing objective that a business might set?
Increase profits by 6% next year
When the costs of raw materials increase considerably, a business is likely to:
Increase the selling price of the product
A large car manufacturer purchases materials that it will use to create parts for automobiles. The car manufacturer is a(n):
Industrial
In which of the following situations should a business lower its sales forecast for the coming year?
Inflation rate is expected to rise 2%
An important objective of promotion is to ______ buyers.
Inform
When a business places a new product on the market, each element of the promotional mix should be designed to:
Inform consumers about the competing product
Which of the following is a use of product promotion?
Informing consumers about product features
A company produces an advertisement that informs consumers about its commitment to recycling materials and controlling pollution. This is an example of:
Institutional Promotion
One reason why the target market of a business affects its pricing is because consumers in each target market:
Judge the value of products differently
Why is it important for businesses to include specific time frames when setting marketing goals and objectives?
Keeps the business focused on the goal
To appeal to a target market with slightly different needs, a business decides to add a group of related items to its product mix. This is called:
Line Extension
A business determines the final cost of a product purchased for resale by subtracting allowed discounts and transportation charges from the:
List price
If your company cannot fulfill its USP, it will:
Lose Credibility
Which of the following is an example of a business using a flexible pricing policy?
Lowering prices during bad economic times
The Baker Company is determining which channel of distribution to use by considering the number of potential customers in various geographic regions. The company is focusing on
Market Factors
Product/service management is a marketing function that involves obtaining, developing, maintaining, and improving a product or service mix in response
Market Opportunities
Businesses often select marketing metrics that will help them compare current market share with:
Market Potential
During which stage of the product life cycle is a business likely to try to stabilize a product's price?
Maturity
Which of the following characteristics is descriptive of a meaningful company objective?
Measurable
One reason why businesses select marketing metrics is to use them as a(n):
Measurement tool
What are the primary elements that businesses should include in a comprehensive promotional plan?
Media placement specifications and costs
When a business expands its product mix, its goal is to appeal to:
More Market Segments with a wider variety of options
Which of the following locations would be most appropriate for a small business selling convenience products such as groceries that customers purchase on a regular basis?
Neighborhood Shopping Center
Public-service promotion often are used to inform consumers about ______ issues
Noncontroversial
The marketing metrics that businesses select should relate directly to the _______ of the marketing plan.
Objectives
Managers use the broad objectives they develop for a business as the basis for setting:
Performance Targets
What section of the marketing plan includes information about expected results?
Performance and Implementation
A channel task should be performed by the channel member who
Performs it best
During the distribution channel selection process, a producer should consider an intermediary's services, its availability, and its
Policies
When a business presents a service to the marketplace by emphasizing its economic value, the business is positioning the product on the basis of its:
Price
A hairstylist cutting client's hair is an example of a _____ distribution channel
Producer to consumer
What distribution channel is most often used to distribute consumer goods?
Producer to wholesaler to retailer to consumer
An ad for Kleenex tissues in Ladies Home Journal is an example of what type of advertising?
Product
Which of the following are internal factors that affect the way a business uses promotional tools?
Product and Price
Newspapers and magazines are categorized as _____ media.
Publications
The local newspaper ran a story about Amy's Shoe Store and its donation of 100 pairs of shoes to those in need. This act by the local newspaper is an example of:
Publicity
The MSV Company developed a sales forecast by considering the opinions of industry experts. This is an example of which of the following sales-forecasting methods
Qualitative
Channel members should share an equal commitment to the product's
Quality
When a business emphasis a product's environmental friendliness is positioning the product by its:
Quality
To guard your USP from competitors, you should:
Repeat it as much as possible
The use of samples or cents-off coupons on grocery items is an example of:
Sales Promotion
Which of the following factors helps a business to determine its product mix?
Size and Target Market
Forecasting sales for marketing plans is important because the forecast is used as a
Standard of Measurement
When considering a new product for your company, you decide to introduce the product the product in only three states for a six-month period. This is known as:
Test Marketing
Which of the following should be included in a marketing plan's executive summary?
The organizations mission statement
Which of the following is an example of an external change that could affect a business's sales forecast?
The population of a town increases when a new hospital open in the community
Which of the following does effective product/service management help businesses to do?
To compete
Why do some new companies set their selling prices as low as they can?
To get market share as fast as possible
Which of the following is a reason why managers develop company objectives?
To identify business purpose
What is the purpose of sales-oriented pricing objectives?
To increase the total amount of sales income
Why would a manager of a local business develops for its marketing plan should lead to a(n):
To remain competitive
The product mix that a business to expand its product mix is by:
Unique Image
When an business allocates a certain amount of money in relation to the amount of goods and services that it sold the previous year, it is selling its marketing budget by
Using the percentage-of-sales method
Which of the following is a benefit of channels of distribution?
We can more easily obtain products from all over the world
By setting marketing objectives, businesses are specifying
What they want to achieve
The price function often influences the place function by determining:
Where the product is sold
Due to lackluster sales, the Elba Corporation has decided to eliminate several of its product lines. Elba's executives hope that by focusing on fewer product lines, they will see more profit. The Elba Corporations is planning to adjust the _________ of its product mix.
Width
Before identifying your company's USP,ask yourself if:
You already have one without realizing it
Repeated exposure to the largest, most diverse population of people is a benefit of _____ advertising
out-of-home
What is the final cost to the business of a product priced at $40 with a 20% trade discount?
#32
A business bought 144 items at $6.50 each and 120 items at $3.75 each. With a 10% off-season discount, the total cost to the business is:
$1,247.40
Which of the following is an appropriate selling price for a product with total costs of $10.00 and a gross margin of $5.00?
$15.00
Calculate the break-even point in dollars if a business has total fixed costs of $875,000; the unit selling price is $1,200; and the variable cost per unit is $700
$2,100
Establish a selling price from the following information: cost, $8.45; operating expenses, $.50; and profit, $.80
$9.75
What is the break-even point in units for a business whose total fixed costs are $325,500, selling price per unit is $18, and variable cost per unit is $15.50?
130,200
Clyde rented an ice-cream truck in order to earn money for college in the fall. His truck rental is $200 per week and has a yearly license fee of $52. It costs him $200 for 500 ice-cream bars that he plans to sell for $1.10 each. How many ice-cream bars must Clyde sell each week in order to reach the break-even point?
288
Which of the following is often included in a marketing plan's situation analysis?
A SWOT analysis chart
Which of the following products would likely use an exclusive distribution pattern?
A large piece of farm machinery
Which of the following might be included in a marketing plan's appendix?
A product photograph
One way for a business to expand its product mix is by:
Acquiring Another Company
When do businesses usually set the marketing budget?
After determining objectives
A business that emphasizes a product's environmental friendliness is positioning the product by focusing on:
Attributes
Radio commercials are a form of advertising that is transmitted through _____ media.
Broadcast
Which of the following is a benefit to businesses of offering customized services to their customers?
Businesses charge higher prices for customized services, which can lead to higher profit margins.
Business receive positive feedback about the effectiveness of their promotional message when consumers:
Buy their products
