Final Marketing Management

Question 1

The dollar amount added to the cost of sales to get the selling price

Answer 1

Mark up

Question 2

% of selling price that is added to the cost to get the selling price

Answer 2

Mark up percent

Question 3

The sequence of markups firm use at different levels in a channel

Answer 3

Mark up chain

Question 4

the number of times the inventory is sold in a year

Answer 4

stock turn rate

Question 5

adding a reasonable markup to the average cost of the product

Answer 5

Average cost of reasonable markup

Question 6

When revenue = cost

After this point, you make a profit

Answer 6

Break Even Analysis

Question 7

the change in total revenue that results from the sale of one or more units of a product

Answer 7

Marginal Revenue

Question 8

the change in total cost when another unit is produced

the cost of producing one more unit after the break-even point

Answer 8

Marginal Cost

Question 9

extra profit on the last unit sold

MR-MC=___

Answer 9

Marginal Profit

Question 10

Similar products that have priced products within a range

Answer 10

Full Line

Question 11

Selling lots of products for lower price

Answer 11

Product Bundling

Question 12

Marketer puts 2 things together that go with each other to sell

Answer 12

Complementary Product

Question 13

Product has elasticity. People lower price and people react. May lose money on product, but will make money on everything else they buy

Answer 13

Loss Leader

Question 14

Marketer who sets price to maximize profit and want a certain return on product. Other marketers follow suit

Answer 14

Price Leader

Question 15

All of the product of the same line are priced the same

Answer 15

Price Lining

Question 16

Perception of what you buy is your money’s worth

Answer 16

Psychological Pricing

Question 17

High price and paid in cash/money on hand

Answer 17

Prestige Price

Question 18

psychology in pricing (use $9.99 instead of $10)

Answer 18

Odd-even

Question 19

Tools for control

Answer 19

1. Sales analysis
2. Performance Analysis
3. Performance Index
4. Iceberg Principle
5. Full Cost Approach
6. Contribution Margin
7. Market Audit

Question 20

Look at everything to launch

Answer 20

Full Cost Approach

Question 21

Selling price - Variable Cost

Answer 21

Contribution Margin

Question 22

Dollars organization needs for fixed assets

Answer 22

Capital

Question 23

Short term dollar’s organization needs

Answer 23

Working Capital

Question 24

Profit is a ____ of capital

Answer 24

Internal Source

Question 25

Selling stocks and bonds is a _____ of capital

Answer 25

External Source

Question 26

Go to the bank and take out a loan

Answer 26

Debt Financing

Question 27

Document that says all expenses are taken care of

Answer 27

Cash Flow Statement

Question 28

Ability to produce a certain quantity and quality of products or services

Answer 28

Production Capacity

Question 29

Quantity will be there, but customized for that store

Answer 29

Mass Customization

Question 30

What to do with excess inventory?

Answer 30

Try to sell, export overseas, outlet malls, etc.

Question 31

Charge costs ongoing basis

Answer 31

Natural accounts

Question 32

Looks at entire industry for dollars generated

Answer 32

Market Potential

Question 33

Look at one company in the market and how they will do with selling

Answer 33

Sales Forecast

Question 34

Variable that can change. What are you changing to make more $? (Examples: hire sales people, training, improve customer service, etc.)

Answer 34

Factor Method

Question 35

Vice Presidents of functional areas get together and set dollar amount

Answer 35

Jury of Executive Opinions

Question 36

Look at past info and move to future

Answer 36

Trend Extension

Question 37

B2B connect with retailers and wholesales. Can order more or less of product

Answer 37

Sales People

Question 38

Asking people for input

Answer 38

Survey

Question 39

Look at market share. Has it increased? Decreased? What do we do to increase sales?

Answer 39

Market Test

Question 40

Define Market Strategy (Short Answer bullets)

Answer 40

1. Strategy has document of Market Plan 2. Plan has goals and objectives 3. Daily tasks, responsibilities, activities that you complete 4. Need time frame 5. Cost/Budget 6. Takes right people to do work 7. Need control tools to measure performance 8. Target Market 9. Customize Market Mix

Question 41

When is this going to happen?

Answer 41

Implementation

Question 42

What are the implementation tools?

Answer 42

1. TQM 2. Continuous Improvement (Kaizen Kaizen) 3. Pareto Chart 4. Fishbone Diagram 5. Training 6. Empowerment 7. Benchmarking

Question 43

keeps track of problems and gives ranking | looks like a graph

Answer 43

Pareto Chart

Question 44

id's problems and what causes them

Answer 44

Fishbone Diagram

Question 45

find companies that are successful and use them as a role model. want to be like them

Answer 45

Bench Marking

Question 46

generated $x and look at categories to see what sells and what doesn't

Answer 46

Product Category

Question 47

Breakdown by region

Answer 47

Geographic Regions

Question 48

Who spends $ here? New? Existing? The frequency of purchases?

Answer 48

Customer Characteristics

Question 49

Product sold in different stores. See how it performs in different types of stores

Answer 49

Channel of Distribution

Question 50

coming from regular price or discounted?

Answer 50

Dollars generated

Question 51

how many $ generated from a store, online, catalog, telemarketers?

Answer 51

Method of Sale

Question 52

is $ spent with a credit card, check, or cash? Can have store credit card

Answer 52

Financial Arrangement

Question 53

Try to sell as much as possible

Answer 53

order size

Question 54

look at goals and compare to how you did

Answer 54

Performance Analysis

Question 55

need to do something with variables to bring in sales | ex: # of employees, promotion, etc.

Answer 55

Performance Index

Question 56

10% above water, 90% below. Asking for feedback, but some people won't tell the truth

Answer 56

Iceberg Principle