Entrepreneurship Chapter 5-6 Review

Market Share

A business's percentage of the total sales generated by all the companies in the same market.

Marketing Strategy

A plan that identifies how these goals will be achieved.

To successfully use the marketing concept, a business must do which of the following? A. Identify what will satisfy the customers' need and wants B. Develop and market products or services that customers consider better than other choices C. Operate profitably D. All of the above

All of the above

If you have a local business that offers a service to consumers in your neighborhood, which of the following would be the best way for you to advertise? A. A commercial aired during the super bowl B. An advertisement on satellite radio C. An advertisement in the local newspaper D. A billboard on a major interstate highway

An advertisement in the local newspaper

Direct Marketing

Consists of any marketing that relies on direct communication or distribution to individual consumers, rather than through a third party such as mass media.

Positioning

Creating an image for a product in the customer's mind.

The branding, packaging, and labeling of your product should be accomplish all of the following except: A. Identify you product B. Describe the company's product mix C. Differentiate your product from the others on the market D. Provide information about the product

Describe the company's product mix

Which channel of distribution would be best for someone who makes and sells pottery at his or her home? A. Manufacturer to consumer B. Manufacturer to retailer to consumer C. Manufacturer to wholesaler to retailer to consumer D. Manufacturer to agent to wholesaler to retailer to consumer

Manufacturer to Consumer

Direct Channel

Moves the product directly from the manufactures to the consumer.

Which of the following pricing strategies is often used when introducing a new product into the market with the goal of developing a strong customer base while discouraging competition? A. Price skimming B. Penetration pricing C. Prestige pricing D. Price lining

Penetration Pricing

List six elements that should be addressed in a company's marketing strategy.

Product introduction and innovation, pricing, distribution, promotion, sales and market shares, and projected profitability.

During the late summer, Nordstorm's department store offers fall and winter clothes at a discounted price for a short period of time. After that time, the price of this clothing goes up and is not reduced again until the end of the season clearance. This is an example of: A. Prestige pricing B. Price lining C. Promotional pricing D. Multiple unit pricing

Promotional Pricing

Marketing Mix

A blending of the product, price, distribution, and promotion used to reach a target market.

Press Release

An official statement issued to newspapers giving information on a particular matter.

Distribution

Any important component of the supply chain management that involves the locations and methods used to make products and services available to customers.

A new touch screen tablet has been released. There are people who want this product so badly they are willing to pay any price for it. This tablet should be priced using... A. Demand-based pricing B. Cost-based pricing C. Competition-based pricing D. time-based pricing

Demand-Based Pricing

Physical Distribution

Includes not only transportation but also storage and handling of products and packaging within a channel of distribution.

Discount Pricing

Offers customers a reduced price to encourage them to buy.

Goods that arrive at their destination damaged probably have a problem with the ___ in the physical distribution process.

Packaging

Competition-Based Pricing

Pricing that is determined by considering what competition charges for the same good or service.

Demand-Based Marketing

Pricing that is determined by how much the customers are willing to pay for a product or service.

Cost-Based Pricing

Pricing that is determined by using the wholesale cost of an item as the basis for the amount charged.

Feature

Product characteristics that will satisfy customer needs.

Publicity

Public visibility or awareness for any product or service or organization.

Advertising

The activity or profession of producing advertisements for commercial products or services.

Marketing

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.

Return on Investment

The amount earned as a result of the investment and is usually expressed as a percentage.

Supply Chain Management

The coordination of manufacturers, suppliers, and retailers working together to meet a customer's need for a product or service.

Product Mix

The different products and services a businesses sells.

Brand

The name, symbol, or design used to identify your product.

True or False. Agents and wholesalers are intermediaries that facilitate the flow of goods through direct channels of distribution.

True

True or False. Opening two more restaurants in other locations around the city would be an example of a short-term goal for the owner for a new restaurant.

True

Indirect Channel

Uses intermediaries - people or business that moves products between manufacture and the customer.

Marketing Concept

Uses the needs of customers as the primary focus during the planning , production, distribution, and promotion of the product or service.

A marketing strategy should be consistent with the business's overall...?

Values

Personal Selling

Where businesses use people (the "sales force") to sell the product after meeting face-to-face with the customer.

True or False. Publicity is always good for a business.

False

Which of the following would be a good addition to the product mix for a health club? A. Diamond rings B. Chocolate-chip cookies C. Fitness apparel D. Photo print service

Fitness Apparel

Marketing Communications Mix

Involves all the tools you use to communicate with your customers or potential customers.

Promotional Mix

The integration of Advertising, Personal Selling, Sales Promotion, Public Relations and Direct Marketing.

Public Relations

The process of maintaining a favorable image and building beneficial relationships between an organization and the public communities, groups, and people it serves.

Sales Promotion

The process of persuading a potential customer to buy the product.

Channels of Distribution

The routes that products and services takes from the time they are produced to the time they are consumed.

Which of the following is not a pricing objective? A. To maximize sales B. To increase profits C. To attract customers D. To decrease expenses

To decrease expenses

Marketing Plan

To define your market, identify your customers and competitors, outline a strategy for attracting and keeping customers, and identify and anticipate change .