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