Marketing Unit 2 test Part A

Question 1

what is Variable cost

Answer 1

Costs that change with production volume (e.g., raw materials).

Question 2

what is fixed cost

Answer 2

Fixed Costs: Costs that remain constant regardless of production (e.g., rent).

Question 3

Profit formula

Answer 3

Revenue minus total costs.

Question 4

break even formula

Answer 4

Break Even Point (BEP) = Fixed Costs / (Selling Price - Variable Costs)

Question 5

Cost Benefit Analysis: formula

Answer 5

Benefits - Costs = Net Benefit

Question 6

Gross Profit Margin:formula

Answer 6

(Revenue - Cost of Goods Sold) / Revenue

Question 7

Economies of Scale

Answer 7

Reduced costs per unit due to increased production.

Question 8

Product Positioning

Answer 8

How a product is perceived in relation to competitors.

Question 9

Premium pricing

Answer 9

Charging a high price to reflect exclusivity

Question 10

Discount prices

Answer 10

reducing prices to attract costumers

Question 11

Market Skimming

Answer 11

Setting a high price initially and lowering it later

Question 12

Market Penetration:

Answer 12

Setting a low price to gain market share

Question 13

Competitive Pricing

Answer 13

Setting prices based on competitors

Question 14

Benchmark Pricing:

Answer 14

Using competitor prices as a reference point.

Question 15

Channels of distrubution

Answer 15

Path products take from producer to consumer.

Question 16

Intermediaries

Answer 16

Entities like wholesalers and retailers that facilitate distribution.

Question 17

Types of disturbution

Answer 17

Intensive:
Selective: .
Exclusive:
Integrated

Question 18

what is intensive distrubution

Answer 18

Products available at many outlets

Question 19

Selective

Answer 19

Selective: Limited outlets (e.g., furniture brands).

Question 20

Exclusive

Answer 20

Exclusive distribution rights (e.g., luxury brands).

Question 21

Integrated

Answer 21

Control over the entire supply chain (e.g., Apple).

Question 22

Major distribution challenges

Answer 22

Demand fluctuations, supply chain disruptions, transportation costs.

Question 23

Transportation Methods

Answer 23

Trains: Cost-effective for bulk; slower.
Trucks: Flexible and fast; higher costs.
Airplanes: Fast; expensive.
Boats: Economical for large shipments; slow.

Question 24

what is JIT

Answer 24

Minimizes inventory by ordering as needed

Question 25

what is warhouse management system

Answer 25

Software for tracking inventory.

Question 26

Material Requirement Planning

Answer 26

Planning inventory based on demand forecasts.

Question 27

Overstocking

Answer 27

Excess inventory; risk of obsolescence.

Question 28

Days Sales of Inventory

Answer 28

Average number of days to sell inventory.

Question 29

Understocking

Answer 29

Insufficient inventory; risk of lost sales.

Question 30

shrinkage and turnover

Answer 30

Shrinkage: Loss of inventory due to theft or error.

Turnover: Rate at which inventory is sold and replaced.

Question 31

elements of promotion

Answer 31

Elements of Promotion:
Advertising,
Publicity,
Public Relations,
Sales Promotions,
Personal Selling.

Question 32

Lobbyist

Answer 32

Advocate for a specific cause or industry to influence legislation.

Question 33

Ad media tools

Answer 33

Ad Media Tools: Social media, influencers, digital marketing, traditional media

Question 34

Goals of Marketing

Answer 34

Brand Awareness: Increase recognition.
Brand Trial: Encourage first-time use.
Brand Preference: Build preference over competitors.
Brand Reminder: Keep brand top-of-mind.
Brand Repositioning: Change brand image.

Question 35

Parts of an Advertisement

Answer 35

Headline: Captures attention.
Visual: Engaging imagery.
Logo: Brand identifier.
Slogan: Memorable phrase.
Copy: Detailed information about the product.

Question 36

APEALS

Answer 36

Appeals: Types include:
Biological: Basic needs.
Emotional: Feelings and connections.
Rational: Logical reasoning.
Social: Belonging and acceptance.