Quiz 2

Question 1

organizational function and a set of processes for creating, communicating, and delivering value to customers, and for managing customer relationships in ways that benefit the organization and its stakeholders

Answer 1

marketing

Question 2

part of the marketing mix concerned with getting products from producers to consumers

Answer 2

place

Question 3

aspect of the marketing mix concerned with the most effective techniques for communicating information about products

Answer 3

promotion

Question 4

any form of paid non-personal communication used by an identified sponsor to persuade or inform potential buyers about a product

Answer 4

advertising

Question 5

person to person sales

Answer 5

personal selling

Question 6

short-term promotional activity designed to encourage consumer buying, industrial sales, or cooperation from distributors such as coupons, premiums, package inserts, point-of-sale displays, and loyalty programs

Answer 6

sales promotion

Question 7

communication efforts directed at building goodwill and favorable attitudes in the minds of the public toward the organization and its products

Answer 7

public relations

Question 8

good, service, or idea that is marketed to fill consumers’ needs and wants

Answer 8

product

Question 9

• Not a lot of differentiation
• Ex. Toilet paper, milk
• Consumed rapidly and regularly
• Inexpensive
• Purchased often with little input of time and effort

Answer 9

convenience product

Question 10

• Brand matters
• Target market is more defined
• Ex. Nike/under armor
• Purchase less often
• More expensive
• Consumers may shop around and compare products based on style, performance, color, price, and ither criteria
• Ex. Television set, tires, hotel reservation

Answer 10

shopping product

Question 11

• Really narrow target market
• Expensive
• Consumer decides on a precise product and will not accept substitutions and spends a good deal of time choosing the “perfect” item
• Ex. Lamborghini, luxury jewelry, wedding gown, healthcare insurance

Answer 11

luxury/specialty product

Question 12

process of determining the best price at which to sell a product

Answer 12

price

Question 13

group of people who have similar wants and needs and can be expected to show interest in the same products

Answer 13

target market

Question 14

cost that changes with the quantity of a product produced and sold

Answer 14

variable cost

Question 15

cost that is incurred regardless of the quantity of a product produced and sold

Answer 15

fixed cost

Question 16

the group of products that a firm makes available for sale

Answer 16

product mix

Question 17

– group of products that are closely related because they function in a similar manner or are sold to the same customer group who will use them in similar ways
* Campbells chunky soup, Campbells microwave soup, campbells homestyle soup

Answer 17

product line

Question 18

setting an initially high price to cover new product costs and generate a profit

Answer 18

price skimming

Question 19

setting an initially low price to establish a new product in the market

Answer 19

penetration pricing

Question 20

pricing tactic that takes advantage of the fact that consumers do not always respond rationally to stated prices

Answer 20

psychological pricing

Question 21

psychological pricing tactic based on the premise that customers prefer prices not stated in even dollar amounts

Answer 21

odd-even pricing

Question 22

price reduction offered as an incentive to purchase

Answer 22

discount

Question 23

– for a particular selling price, assessment of the seller’s costs versus revenues at various sales volume
– this is how many we have to sell the breakeven

Answer 23

breakeven analysis

Question 24

– pricing that considers the firm’s desire to make a profit and its need to cover production costs
– Selling price = Seller’s costs + Profit

Answer 24

cost-oriented pricing

Question 25

amount added to an item’s purchase cost to sell it at a profit

Answer 25

markup

Question 26

grouping several products together to be sold as a single unit at a reduced price, rather than individually

Answer 26

bundling strategy

Question 27

setting a limited number of prices for certain categories of products

Answer 27

price lining

Question 28

process of using symbols to communicate the qualities of a product made by a particular producer

Answer 28

branding

Question 29

competitive marketing that appeals to consumer perceptions of benefits of products offered by particular companies

Answer 29

brand competition

Question 30

the relationship between business and government, usually in the form of government regulation of business

Answer 30

political-legal environment

Question 31

the customs, mores, values, and demographic characteristics of the society in which an organization functions

Answer 31

sociocultural environment

Question 32

all the ways by which firms create value for their constituents

Answer 32

Technological Environment

Question 33

relevant conditions that exist in the economic system in which a company operates

Answer 33

economic environment