Chapter 5 Entrepreneurship

Which of the following is a discount pricing strategy?

Cash discounts, seasonal discounts, and trade discounts

Positioning is?

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

T or F: Long-term goals show where you would like your business to be five or ten years from now but do not help you think about how to market your business today.

False

T or F: Not every product has features.

False

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

False

T or F: Your market share rarely depends on the level of competition in your market.

False

T or F: he return on investment (ROI) is the amount earned as a result of the investment and is expressed in fractions.

False

Which of the following pricing techniques is often used in the introductory stage of a product?

Penetration pricing

T or F: Establishing short-, medium-, and long-term marketing goals ensures that the marketing you do today fits the vision you have for your business tomorrow.

True

T or F: For many businesses, a small percentage of their product mix often makes up the majority of the sales revenue.

True

T or F: The marketing concept can give small businesses an advantage over larger businesses.

True

T or F: The price is the actual amount that a customer pays for a product or service.

True

T or F: To determine the market share of a business, the total market for a product must be known.

Ture

If the terms of an invoice read "2/10, net 30," this means that

a 2 percent discount may be taken if the invoice is paid within 10 days.

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

brand

A marketing plan should do all of the following except?

identify the owner's net worth.

Medium-term goals describe what you want your business to achieve?

in the next two to five years.

When a company offers different products and services within the same category

it is trying to serve different customer needs.

Marketing consists of all of the following processes except

operating

To satisfy a specific customer need, a business...

positions its product in a certain market

Your marketing strategy should address

product introduction or innovation, pricing, and market share.

Cost-based pricing is determined by

using the wholesale cost of an item as the basis for the price charged.