Business Management: Chapter 20 – Flashcards
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What is the average cost of marketing?
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approximately 50 cents of every dollar consumers spend
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Businesses that emphasize distribution and promotion in order to sell the products produced are said to be ?
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sales-oriented
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A company that adopts the marketing concept has a marketing manager who is ?
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is part of top management and marketing personnel working closely with other people in the business
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Why is it usually unwise to attempt to reach all potential customers for a product?
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for cost reasons
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Finding the best marketing locations enables a business to ?
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operate more efficiently
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The marketing elements include ?
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product, price, place, and promotion
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? decisions include setting a price that will cover costs of producing and marketing the product while also meeting the price point customers are willing to pay.
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pricing
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Two major methods of promotion ?
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advertising and personal selling
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Order processing is part of the ? element of the marketing mix.
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distribution (place)
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One purpose of a marketing plan is to help ?
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coordinate marketing activities
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The concept of a product life cycle implies that successful products move ?
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through rather predictable stages
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The American Marketing Association defines marketing as the process of ?
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planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create satisfying exchanges
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Obtaining goods to be resold is a marketing activity known as ?
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buying
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Firms in which the products to be manufactured and the manufacturing process to be used receive the most attention are ?
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production-oriented
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Just because a business has adopted the marketing concept does not mean their ? of marketing will be higher than in other businesses that do not.
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cost
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A company that has adopted the marketing concept will use ? to identify markets before products are developed.
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market research
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The place decision in the marketing mix involves determining ?
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where the product will be sold
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The normal length of time for which a marketing plan is developed is ?
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one year
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The product life style concept suggests that both sales and profits will ?
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ultimately decline
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Companies emphasize promotion and price of their products in the ? stage of the product life cycle.
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maturity
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One way that businesses respond to the maturity stage of the life cycle is to look for old products to ?
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reintroduce in new markets (possibly internationally)
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Gasoline, computer paper, and chairs are all examples of both ? and ? goods.
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industrial and consumer
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Whether a customer is willing to spend time to ? products is a factor used to determine the consumer goods categories.
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compare
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When customers purchase a product regularly without a great deal of thought, the product is a ?
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convenience good
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A product is usually unsought because the customer does not ?
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have a strong need for the product
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As a product progresses through the product life cycle, its marketing mix will ?
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vary by stage
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Buying
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looking for and evaluating goods and services
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Consumer goods
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products produced for sale to individuals and families for personal use
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Financing
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providing the money to conduct marketing activities
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Grading and valuing
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sorting products according to size and quality. determining appropriate price for products and services
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Marketing
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an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
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Marketing concept
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means that an organization aims all its efforts at satisfying customers - at a profit. keeping the needs of the customer uppermost in mind during the design, production, and distribution of a product
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Marketing mix
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blend of all decisions related to the four elements of marketing: product, price, distribution (place), and promotion
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Marketing mix elements
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product, price, place, and promotion
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Marketing plan
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detailed written description of all marketing activities that a business must accomplish in order to sell its products; written for a specific time period, often one year
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Researching
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studying buyer interests and needs, testing products, gathering facts to make good marketing decisions
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Retailers
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businesses that sell directly to final consumers
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Risk taking
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assuming the risk of losses that could occur from fire, theft, damage or other circumstances
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Selling
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promoting the product
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Storing
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holding goods until customers need them
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Target markets
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groups of customers with very similar needs to whom the company plans to sell its product
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Transporting
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movement of goods from one place to another
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Wholesalers
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businesses that buy products from businesses and sell them to retailers or other businesses
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