X100 Exam 2

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Problem seeing comes before the problem, it is associated with what?
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Prevention
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Problem solving comes after the problem, it is associated with what?
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Curing
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In the small town example of Schwenksville, Pennsylvania, what can we do to save the man’s life?
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Problem Seeing (Before): Change the road, change the town, or change the man. Problem Solving (After): Turn to the neighbors for help. Nothing we can actually do. We cannot solve all problems, but WE NEVER QUIT.
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Michael Jordan quote
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\”26 times my teammates passed me the ball to take the game winning shot, 26 times I failed them.\”
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Which of the following is a social variable of buying behavior? A. Perception B. Motivation C. Learning D. Culture E. Attitude
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D. Culture
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Marketing involves what…?
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Planning and executing Pricing Promotion Distribution (Placing)
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Marketing
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Group of activities designed to expedite transactions by creating, distributing, pricing, and promoting goods, services, and ideas.
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What is at the heart of all business?
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The exchange, the act of giving one thing up in return for something else.
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Functions of marketing
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1. Buying 2. Selling 3. Transporting 4. Storing 5. Grading 6. Financing 7. Marketing research 8. Risk taking
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Marketing concept
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Idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals.
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Market strategy
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Plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers.
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For a firm to use a multisegment approach or market segmentation:
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1. Consumers’ needs must be heterogeneous 2. Segments must be identifiable and divisible 3. Total market must be divided so estimated sales potential, cost, and profits of the segments can be compared 4. At least one segment must have enough profit potential to justify developing a special marketing strategy 5. Must be able to reach the chosen market segment with a particular market strategy
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What are the variables you can segment a market by?
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1. Demographic 2. Geographic 3. Psychographic 4. Behavioristic
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What are the four activities of the marketing mix?
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1. Product 2. Price 3. Distribution (Place) 4. Promotion
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Primary data
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Observed, recorded, or collected directly from respondents.
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Secondary data
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Compiled inside or outside the organization for some purpose other than changing the current situation.
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Psychological variables of buying behavior?
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1. Perception 2. Motivation 3. Learning 4. Attitude 5. Personality
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Social variables of buying behavior?
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1. Reference groups 2. Social classes 3. Culture
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Differentiation
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Offer customers something they value that competitors don’t have (and are willing to pay to have).
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What is the focus on?
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Product and service, EVERYTHING.
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Differentiation questions?
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1. Multi-functional team 2. How do people become aware of need? –> Oral B-patened dye, GOOD IDEA. Wharton College. 3. How do customers find you? –> Bricks and clicks 4. How do customers re-purchase? –> American Hospital supply 5. What happens when product or service is delivered? –> Are you there when they need it? 6. How is product installed? –> HP DVD 7. How is product paid for? 8. How is product transported? –> Pepsi 9. How help customers use the product? –> Butterball, website and 24-hour hotline, THEY LISTEN!
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Most new product ideas are rejected during which stage because they seem inappropriate for the organization? A. Idea development B. Business analysis C. Idea screening D. Product development E. Test marketing
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C. Idea screening
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Profit formula?
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Price – Cost = Profit
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3 Broad marketing strategies?
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1. Cost leadership –> lower cost, higher profit 2. Differentiation –> special features, higher price, higher profit. 3. Focus –> one segment or market is the focus
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3 levels of marketing strategy?
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1. Functional –> customers 2. Business –> competitors 3. Corporate –> own purpose and plans
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Functional marketing strategy
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Marshall the functional resources; cross-functional
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Business marketing strategy
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Domain navigation, how to gain a competitive advantage in the product market.
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Corporate marketing strategy
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Domain selection, what business will we be in? If plural businesses then you want synergy –> 2 + 2 = 5
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A drill is not a drill, it represents what?
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It represents holes, it is a means to an end. (Drill experiment through a book)
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Which of the following influence market strategy by dictating what elements cannot be included in advertising? A. Social forces B. Technological forces C. Political, legal, and regulatory forces D. Competitive forces E. Economic forces
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C. Political, legal, and regulatory forces
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4 dimensions of the marketing mix?
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1. Product 2. Price 3. Distribution (place) 4. Promotion
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Product introduction strategy:
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Idea development –> New idea screening –> Business analysis –> Product development –> Test marketing –> Commercialization
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What are the two classifications of products?
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Consumer products and Business products
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How can consumer products be broken down?
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1. Convenience 2. Shopping 3. Specialty
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How can business products be broken down?
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1. Raw materials 2. Major equipment 3. Accessory equipment 4. Component parts 5. Processed materials 6. Supplies 7. Industrial services
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Product line
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A group of closely related products that are similar to each other.
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Product mix
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All the products that an organization offers.
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Four stages of life-cycle
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1. Introduction 2. Growth 3. Maturity 4. Decline
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Branding
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Naming of a product
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Strategies for pricing new products?
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Price skimming – highest possible price Penetration price – low price to gain market share Psychological pricing – emotional buying rather than rational
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Order of product to customer?
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Producer –> Agent –> Wholesaler –> Retailer –> Customer
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Market coverage differences?
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Intensive distribution – makes product available everywhere. Selective distribution – small number of available outlets. Exclusive distribution – sole right to one territory or region.
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Personal selling six-step process
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1. Prospecting 2. Approaching 3. Presenting 4. Handling objections 5. Closing 6. Following up
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Push strategy
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Push product toward customers
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Pull strategy
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Create demand and pull customers toward product.
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Promotional positioning
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Creating an image of a product in the buyers’ perspective.
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Income statement
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Report that shows profitability over a period of time. Revenue – Expenses = Net Income
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Types of expenses?
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1. Selling and Administrative 2. Research and Development 3. Interest
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Balance Sheet
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\”Snap-shot\” of an organization at a given moment. Assets = Liabilities + Owner’s Equity
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Statement of Cash Flows
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Explains company’s cash changed from beginning to end of a period.
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Three types of cash flows?
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1. Operating activities 2. Investing activities 3. Financing activities
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Liquidity ratio
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Compares current assets to current liabilities.
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Most business failures are due to what?
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Poor short-term planning
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Long-term assets
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Expected to last for many years
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Highest risk to lowest risk
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1. Introduce new product into foreign market 2. Expand into new market 3. Introduce new product into familiar market 4. Add to a product line 5. Buy new equipment 6. Repair old machinery
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Bull market
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Large increase in stock prices
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Bear market
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Declining stock market
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3 New companies in Dow Jones
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1. Cisco 2. Kraft foods 3. Travelers Companies
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3 Old companies out of Dow Jones
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1. American International Group 2. Citigroup 3. General Motors
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Where does earnings before taxes go?
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Income statement
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Where does COGS go?
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Income statement
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Where does goodwill go?
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Balance sheet
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Where does retained earnings go?
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Balance sheet
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Where does return on equity (ROI) go?
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Profitability ratio
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Return on equity equation
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Net income/Equity
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An income statement shows what? A. revenues, expenses, and net income over a period of time. B. assets, liabilities, and equity C. the company’s status at a particular point in time D. how much income each employee earns E. how much income the CEO earns
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A. revenues, expenses, and net income over a period of time.
question

How to smell a rat?
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1. Your advisor has custody of your assets. 2. Returns are consistently great. 3. The investment strategy isn’t understandable. 4. The promoted benefits make it sound difficult to get in, \”need to know somebody\”, has NO impact on results. 5. A trusted advisor did due diligence; you didn’t do your own due diligence.
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The amount of money budgeted for the purchase of long-term assets is called what? A. Master budget B. Year’s budget C. Current budget D. Fixed budget E. Capital budget
answer

E. Capital budget

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