Business Ch. 10
Steps in marketing research
1. Define the marketing problem 2. Study the situation 3. Develop a data collection procedure 4. Gather and analyze info 5. Propose a solution
The first step in new product planning is to develop a full marketing strategy
False
non-paid promotional communication presented by the media rather than the business or organization that is being promoted
publicity
Steps in the consumer decision-making process
1. Recognize a need 2. Gather info 3. Select and evaluate alternatives 4. Make a purchase decision 5. Determine the effectiveness of the decision
The simplest form of a product is called the a. basic product b. brand name c. product feature d. option
A. Basic Product
Businesses usually specialize in producing a specific type of product, while consumers want to purchase a variety of products. This illustrates differences in a. assortment b. quantity c. location d. timing
A. assortment
This marketing function involves determining ways for customers to locate, obtain, and use of the product is a. financial analysis b. distribution c. pricing d. selling
B. Distribution
A small # of consumers expressing opinions about a new product or service in a group discussion is a a. target market b. focus group c. survey group d. experimental group
B. Focus Group
Services are a. Easier than products to examine to see if they will meet your needs b. consumed at the same time they are produced c. the same no matter who provides them d. easier than product to store
B. consumed at the same time they are produced
Product costs + Operating expenses + profit = a. gross margin b. selling price c. markup d. markdown
B. selling price
Which of the following is an example of personalized promotion a. advertising b. publicity c. personal selling d. sales promotion
C. personal selling
Non-paid promotion presented by the media rather than by a business is a. telemarketing b. advertising c. sales promotion d. publicity
D. Publicity
What is the first step in the consumer decision-making process a. gather info b. select alternatives c. evaluate alternatives d. recognize a need
D. Recognize a Need
A product will probably have a relatively high price a. if there are many companies supplying product b. if its supply is high c. if it has been on the market for a long time d. if it has many features and options
D. if it has many features and options
Baby Monitor
Emotional
Birthday cake and party supplies
Emotional
Hawaiian Vacation
Emotional
Life Insurance Policy
Emotional
A markup should be thought of as a pricing mistake because it reduces the amount of $ the business has to cover operating expenses and profits
False
Advertising is any form of communication used to inform, persuade, or remind
False
Effective marketing begins with a good product
False
Product packaging is the least important part of product planning because consumers simply throw away the packaging before using the product
False
Activity, set of institutions, and processes for creating, communication, delivering, and exchanging offerings that have values for customers, clients, partners, and society at large
Marketing
Does a focus group involve observing the actions of consumers?
No
Is a product's route from the producer to the consumer its stream of revenue
No
Is it easier to control the quality of a service that the quality of a product?
No
Pricing rule
Prices must be set low enough that customers are willing to pay but high enough that the business makes a profit
Marketing Functions
Product and Service Management, distribution, selling, marketing info management, financial analysis, pricing, and promotion
Mortgage Lender
Rational
New refrigerator
Rational
A farmer selling at a roadside stand tomatoes she grew in her own garden is an example of a direct channel of distribution
True
A target market is a group of consumers that have similar wants and needs
True
All businesses must complete some marketing activities even if that is not their focus
True
Finding solutions to problems through carefully designed studies involving consumers is called marketing research
True
Highly complex and technical products generally have higher prices than simple products
True
Does convenience affect the price consumers are willing to pay for a product?
Yes
Is a marketing mix the blending of product, distribution, price, and promotion?
Yes
any paid form of communication through mass media directed at identified consumers to provide information and influence their actions
advertising
persons, companies, and organizations that buy product for the operation of a business, for incorporation into other products and services, or for resale to their customers
business consumers
reasons consumers decide what products and services to purchase
buying motives
businesses that take part in a channel of distribution
channel members
route a product follows and the businesses involved in moving a product from the producer to the final consumer
channel of distribution
specific sequence of steps consumers follow to make a purchase
consumer decision-making process
locations and methods used to make a product or service available to the target market
distribution
exchange of info so there is common understanding by all participants
effective communication
examples of marketing activities
establishing and accepting credit and arranging means of online payment
persons who buy products and services mostly for their own use
final consumers
difference between the selling price and the product costs
gross margin
Formula for markup on selling price
gross margin / selling price = percent markup on selling price
there will be differences in the type and quality of service provided
heterogeneous
they are consumed at the same time they are produced
inseparable
have no physical form
intangible
Marketing Percentages
marketing activities often cost 50% or more of the selling price of a product or service
blending of four marketing elements-product, distribution, price, and promotion
marketing mix
considers the needs of customers when developing a marketing mix
marketing orientation
finding solutions to problems through carefully designed studies involving consumers
marketing research
a company's plan that identifies how it will use marketing to achieve its goals
marketing strategy
amount added to the cost of a product to set the selling price
markup
includes a set of promotional activities designed to generate sales in the retail settings
merchandising
availability of a service must match the demand for that service at a specific time
perishable
$ a customer must pay for a product or service
price
Reasons for markdowns
-customer demand is not as high as projected -selling season is ending -flaw in the product
direct, individualized communication with prospective customers to assess their needs and assist them in satisfying those needs with appropriate products and services
personal selling
everything a business offers to satisfy a customer's need
product
Formula for selling price
product costs + operating expenses + profit = selling price
Formula for markups on cost
product costs x percent markup = markup on cost
any form of communication used to inform, persuade, or remind
promotion
final business organization in an indirect channel of distribution for consumer products
retailers
activities that are consumed at the same time they are produced
services
specific group of consumers who have similar wants and needs
target market