CH 8 BUS-125

True or false: An effective marketing mix can be developed only when a clear, precise target market has been identified.

true

In the context of the categories of service businesses, _____________ __________ are provided by a business to another business or professional.

business services

According to Pam Lontos, companies interested in image-enhancing public relations should avoid _____.

being pushy when interacting with customers

A manufacturer of fruit products found that its sales were falling. It introduced a combination of its various fruit products and packaged them as healthy snacks and meal alternatives, resulting in instant success. How did packaging help the manufacturer in this case?

By creating a new product for the market

Identify a true statement about the growth stage of the product life cycle.

Competitors enter the market and attempt to develop the best product design.

_____ involves prodding businesses to improve the quality of their products and to expand customer knowledge.

Consumerism

Identify the basic elements of the marketing concept.

Customer orientation Goal orientation

In the context of implementing marketing strategies in the introductory stage, what should potential small business owners do? (Check all that apply.)

Design their products to fit the market Find other markets that fit their products

Identify the areas in which marketing research is effective. (Check all that apply.)

Determining the needs of customers Identifying customers for a firm's products

Which of the following best describes a penetration price?

It aims to secure market acceptance.

Why is good packaging important? (Check all that apply.)

It can protect products from damage or spoiling. It makes products easier to identify.

Identify the true statements about marketing research.

It deals with people and their changing likes and dislikes.

Identify a feature of consumerism.

It forces businesses to be fair in their dealings with consumers.

Identify a true statement about market research.

It is an objective way of studying customers or potential customers and their needs and desires.

Identify a true statement about test marketing.

It is expensive to conduct even a small market test.

Identify a true statement about a skimming price.

It is initially set relatively high.

Identify a characteristic of secondary data.

It is less expensive to acquire than primary data.

Identify a feature of a penetration price.

It is set relatively low.

Identify a true statement about unit pricing.

It promotes comparison shopping by customers by providing information about unit prices of other items.

Identify a feature of primary data.

It refers to data that is usually collected by survey and compiled into a usable format.

Identify a true statement about the introduction stage of the product life cycle.

Most products do not get beyond this stage.

Identify a statement that is most strongly indicative of customary pricing.

Newspapers and magazines generally have the manufacturer's suggested retail price.

Identify a characteristic of the growth stage of the product life cycle.

Sales rise quickly and profits peak.

Identify the suggestions made by Pam Lontos for image-enhancing public relations. (Check all that apply.)

Show what makes a product unique.

In the context of implementing marketing strategies, what should a potential small business owner do when introducing a new product? (Check all that apply.)

Study present and future market situations Ensure that the product fits the market well

Which of the following are practical aspects of pricing that a small business owner must consider? (Check all that apply.)

The price must be set in a way that customers are willing and able to pay it. The price must be set to maintain or expand market share and profit.

Why do sellers offer discounts to their customers?

To induce customers to buy more of a product

_____ are given to customers for accepting reductions in the quality or quantity of products.

allowances

Jesse owns a gadget store. When a new cellphone model is introduced, he offers his customers the option to trade their old phones for a reduction in the price of the newly introduced phone. This reduction in price is called _____.

an allowance

Marketing research can help a small business owner plan strategic efforts by analyzing marketplace data such as _____.

attitudinal changes

In its simplest form, marketing research involves _____.

defining a problem and gathering and evaluating information

are reductions from a product's normal list price.

discounts

The systems approach is the component of the marketing concept that refers to _____.

ensuring that the right goods and services are produced, distributed, and sold to meet consumer needs

True or false: Businesses must use the same competition, promotion, distribution, and pricing strategies throughout the life cycle of their products.

false

Identify the stages of the product life cycle. (Check all that apply.)

introduction, growth, maturity, and decline

______________ ______________ s the systematic gathering, recording, and analyzing of data relating to the marketing of goods and services.

market research

The __________ __________ involves giving special consideration to the needs, desires, and wishes of present and prospective customers.

marketing concept

A furniture store obtains a new piece of furniture that costs $400. If the selling price is set at $500, the difference between the cost and the selling price is called _____.

markup

_____ refers to the amount added to a product's cost to determine the selling price.

markup

In the context of the nature of service businesses, the services performed by a business for its consumers are called _____.

personal services

Identify a characteristic of the introduction stage of the product life cycle.

prices are usually high

_____ are bits of information and original data that are gathered firsthand.

primary data

unit pricing

refers to listing a product's price in terms of some unit, such as a pound, pint, or yard.

_____ are bits of information that have already been gathered and analyzed.

secondary data

In the context of the pricing alternatives available when a new product is introduced, a _____ helps a small business obtain the cream of the target market before competitors enter.

skimming price

In the context of the marketing concept, all parts of a business work together in a(n).....

system

A _____ is the part of the total market toward which promotional efforts are concentrated.

target market

_____ simulates the conditions under which a product is to be marketed.

test marketing