General Business 2

Question 1

What are the four P’s of marketing?

Answer 1

Price, product, promotion, place

Question 2

What is the marketing concept and why does it work?

Answer 2

A philosophy that priorities fulfilling customer needs and wants as a primary focus for achieving organizational goals

Question 3

What are the components of packaging?

Answer 3

Protects product
Provides information
Facilitate storage
Attracts buyer attention
Promotes the brand
Suggests product use

Question 4

What are some promotional tools?

Answer 4

Advertising- paid non-personal communication
Sales promotion- stimulate sales through short-term programs
Consumer promotion - includes premium promotional product samples, coupons, rebates and displays
Trade promotion- when a wholesaler or retailer push specific products aggressively
Public relations - ongoing effort to create positive relationships with all of a firm’s different public
Personal selling- person to person presentation of products to potential buyers

Question 5

Channel intermediaries

Answer 5

Distribution organizations that facilitate the movement of products from a producer to us consumer ( The middleman)

Question 6

What do channel intermediaries do?

Answer 6

Their rules to reduce the number of transactions. They add value or utility in the following ways
- form utility
- Time utility
- place utility
- ownership utility
- information utility
- service utility

Question 7

Pricing strategies

Answer 7

Skimming: high initial price, lowers over time
High-Low: what a company initially sets a high price for a product and then periodically drops the price significantly through promotions, discounts or clearance sales to attract customers
Penetration: initial low price to gain market share
Everyday Low: consistently offering low prices w/ frequent sales
Loss Leader: selling a product temporarily below cost to drive profits, often raising the price of other products

Question 8

What are the four types of different economic systems?

Answer 8

Traditional- Hunter a. Gatherer society relies on barter, no real currency
(Free) Market- Private Enterprise owns the means of production. Government doesn’t involve itself
( Communism )Command- The government or other Central authority make all economic questions
(America)Mixed - combine elements of pure market and command economics. People control some aspects of the economy while the government controls others

Question 9

What are the four types of branding?

Answer 9

Co branding- A marketing strategy that utilizes multiple brand names on a good or service as part of a strategic alliance.
Brand extension - when a well-known and respected brand from one product category expands and creates another different product
Mixed branding - when a company creates multiple brand names to appeal to different market segments ( split personality)
Rebranding- changing a brand name, logo or image of a product or company

Question 10

What are the four types of branding?

Answer 10

Co branding- A marketing strategy that utilizes multiple brand names on a good or service as part of a strategic alliance.
Brand extension - when a well-known and respected brand from one product category expands and creates another different product
Mixed branding - when a company creates multiple brand names to appeal to different market segments ( split personality)
Rebranding- changing a brand name, logo or image of a product or company