L5

Question 1

set of actions a business takes to build and market its product or service to its customers.

Answer 1

Marketing mix

Question 2

creating an image for the product in the costumers mind

Answer 2

Positioning

Question 3

refers to where the target consumers are.

Answer 3

Place

Question 4

the routes that products and services take from the time they are produced to the time they are consumed.

Answer 4

Channel of distribution

Question 5

coordination of manufacturer, supplier, and retailers working together to meet the need of a product or service

Answer 5

Supply chain management

Question 6

moves the products form the manufacturer to the consumer

Answer 6

direct channel

Question 7

uses intermediaries—people or businesses that move products between the manufacturer and the consumer.

Answer 7

indirect channel

Question 8

the actual amount a consumer pays for a product or services

Answer 8

Price

Question 9

the amount earned as a result of the investment, usually expressed as a percentage.

Answer 9

Return of Investment (ROI)

Question 10

business’s percentage of the total sales generated by all companies in the same market.

Answer 10

Market Share

Question 11

Pricing that is determined by how much customers are willing to pay for a product or service

Answer 11

Demand based pricing

Question 12

determined by using the wholesale cost of an item as the basis for the price charged.

Answer 12

Cost based pricing

Question 13

Pricing that is determined by considering what competitors charge for the same good or service.

Answer 13

Competition-Based Pricing

Question 14

The price to charge for services can be determined by the amount of time it takes to complete the service. A service provider must decide whether there will be a separate charge for materials or whether the materials will be included.

Answer 14

Time-Based Pricing

Question 15

used when a product is new and unique. A high price is charged to recover the costs involved in developing the product. Then as more competitors enter the market with similar products, the price is dropped.

Answer 15

Pricing Skimming

Question 16

starts out with a low introductory price with the goal of building a strong customer base. The low price also discourages competition.

Answer 16

Penetration Pricing

Question 17

based on the belief that certain prices have an impact on how customers perceive a product.

Answer 17

Psychological Pricing

Question 18

selling at a high price in order to create a feeling of superior quality and social status.

Answer 18

Prestige Pricing

Question 19

suggests that buyers are more sensitive to certain ending numbers. Studies have shown that prices ending in odd numbers are perceived to be bargains while those ending in even numbers suggest higher quality. For example, P199 sounds like a bargain compared to an even P200.

Answer 19

Odd/Even pricing

Question 20

involves offering different levels of prices for a specific category of product based on features and quality.

Answer 20

Price lining

Question 21

offering lower prices for increase sales. This type of pricing is temporary return to normal when the promotion ends.

Answer 21

Promotional Pricing

Question 22

involves pricing items in multiples, such as 10 for P100.

Answer 22

Multiple-unit pricing

Question 23

offers customers a reduced price. Its used to encourage customers to buy.

Answer 23

Discount pricing

Question 24

offered to customers to encourage early payment of invoices.

Answer 24

Cash discounts

Question 25

are reductions in price based on the purchase of a large quantity. This is also called a volume discount. Sellers offer quantity discounts because it
reduces their selling expenses

Answer 25

Quantity discounts

Question 26

reductions on the list price granted by a manufacturer or
wholesaler to buyers in the same trade.

Answer 26

Trade discounts

Question 27

are used for selling seasonal merchandise out of season.
Barbecue grills are in high demand in the spring and summer months, but not in the fall and winter.

Answer 27

Seasonal Discounts

Question 28

The 7ps in Marketing mix:

Answer 28

-Product
-Promotion
-Price
-Place
-People
-Process
-Physical Evidence