Entrepreneurship Chapter 5
A business may set its prices for products or services by using a. competition-based pricing. b. cost-based pricing. c. demand-based pricing. d. all of these
All of these
Short-term goals can be stated in terms of a. number of customers. b. level of profits. c. level of sales. d. all of these
All of these
Your marketing strategy should address a. product introduction or innovation. b. pricing. c. market share. d. all of these
All of these
The Nike "swoosh" is an example of a product a. package. b. feature. c. brand. d. label.
Brand
To use the marketing concept, businesses must do all of the following except a. develop and market products that customers consider better than other choices. b. identify what will satisfy customers' needs and wants. c. devote half of its profits toward marketing. d. operate profitably.
Devote half of its profits toward marketing.
Long-term goals describe what you want your business to achieve in the next two or three years. (T/F)
False
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. (T/F)
False
Many businesses mark down items below their cost as a way to make quick profits. (T/F)
False
Not every product has features. (T/F)
False
Over the past 50 years, the U.S. market has changed from being a consumer-driven market to being a product-driven market. (T/F)
False
Short-term goals should not be listed in terms of product, price, distribution, and promotion. (T/F)
False
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. (T/F)
False
The marketing plan should be separate from your business plan. (T/F)
False
The return on investment (ROI) is the amount earned as a result of the investment and is expressed in fractions. (T/F)
False
When services are combined under one charge, rather than making the customer pay for each individual part of the service, this is called price skimming. (T/F)
False
With competition-based pricing, the price charged is the same as the price charged by competitors. (T/F)
False
You should develop a marketing plan before setting short-, medium-, and long-term goals for your business. (T/F)
False
Your market share rarely depends on the level of competition in your market. (T/F)
False
Product characteristics that will satisfy customer needs are called a. brands. b. services. c. the product mix. d. features
Features
Businesses should always set their prices a. lower than their competitors' prices. b. based on their product mix. c. high enough to make a profit. d. all of these
High enough to make a profit
A product mix a. helps determine the pricing strategy. b. is the different products and services that a business sells. c. is used to maximize sales. d. identifies features such as color, size, and quality.
Is the different products and services that a business sells.
All of the following are examples of pricing objectives except a. discourage competition. b. minimize sales. c. increase profits. d. attract customers.
Minimize sales
Marketing goals a. need to be established only for the long-term. b. should never change. c. can be used to determine your product mix. d. none of these
None of these
The marketing concept a. gives large businesses an advantage over small businesses. b. states that consumers buy a product because it meets their wants or needs. c. allows large businesses to be more flexible when trying to satisfy customer needs. d. none of these
None of these
Marketing consists of all of the following processes except a. promoting. b. pricing. c. operating. d. selling.
Operating
Which of the following pricing techniques is often used in the introductory stage of a product? a. Penetration pricing b. Prestige pricing c. Trade discounts d. Markdown pricing
Penetration pricing
Creating an image for a product in the customer's mind is called a. positioning. b. branding. c. packaging. d. distributing
Positioning
To satisfy a specific customer need, a business a. uses cost- based pricing. b. uses channels of distribution. c. positions its product in a certain market. d. sets price objectives.
Positions its product in a certain market.
A company can increase market share through all of the following ways except a. price discounts. b. networking. c. promotional campaigns. d. advertising.
Price Discounts
Which of the following is not a discount pricing strategy? a. Cash discounts b. Quality discounts c. Seasonal discounts d. Trade discounts
Quality discounts
Demand-based pricing uses surveys to find out the maximum price that customers would pay for a product. (T/F)
True
Establishing short-, medium-, and long-term marketing goals ensures that the marketing you do today fits the vision you have for your business tomorrow. (T/F)
True
Examining the competition's positioning strategy can help you determine the best positioning strategy for your target market. (T/F)
True
For many businesses, a small percentage of their product mix often makes up the majority of the sales revenue. (T/F)
True
Price lining involves offering different levels of prices for a specific category of product based on features and quality. (T/F)
True
Product features include such things as color, size, quality, warranties, delivery, and installation. (T/F)
True
Products within the same category, such as cars, are positioned in the market to serve different customer needs. (T/F)
True
The brand is the name, symbol, or design used to identify your product. (T/F)
True
The marketing concept can give small businesses an advantage over larger businesses. (T/F)
True
The marketing concept for a business is developed by using the primary and secondary data that is gathered through market research. (T/F)
True
The price is the actual amount that a customer pays for a product or service. (T/F)
True
The product mix often includes items of convenience for customers even though those products may not be profitable. (T/F)
True
To determine the market share of a business, the total market for a product must be known. (T/F)
True
Medium-term goals describe what you want your business to achieve in the next
Two-five years
If the terms of an invoice read "2/10, net 30," this means that a. a 2 percent discount may be taken if the invoice is paid within 30 days. b. a 2 percent discount may be taken if the invoice is paid within 10 days. c. one-fifth of the invoice amount must be paid within 30 days. d. none of these
a 2 percent discount may be taken if the invoice is paid within 10 days.
A long-term goal might be to a. expand by adding a second location. b. network with other business owners. c. increase market share to 50 percent. d. establish a customer base.
expand by adding a second location.
A marketing plan should do all of the following except a. identify your competitors. b. outline a strategy for keeping customers. c. identify the owner's net worth. d. recognize and anticipate change.
identify the owner's net worth.
When a company offers different products and services within the same category, a. its position strategy has failed. b. it is trying to serve different customer needs. c. it will be unable to make a profit. d. it has failed to take the competition into account.
it is trying to serve different customer needs.
Companies that use the marketing concept will a. focus on product features more than on consumer needs. b. select a product mix that will most appeal to their target market. c. make sure that all products and services they offer are profitable. d. all of these
select a product mix that will most appeal to their target market.
Cost-based pricing is determined by a. considering what competitors charge for the same product or service. b. using the wholesale cost of an item as the basis for the price charged. c. finding out how much customers are willing to pay for a product or service. d. analyzing customer need.
using the wholesale cost of an item as the basis for the price charged.