Classroom Response System Pricing, Distributing, and Promoting Products Business Essentials, 8th Edition Ebert/Griffin Classroom Response System Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Many firms will choose to initially sell a product at a loss in an effort to meet which business objective? Break-even point Price skimming Market share None of these Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Many firms will choose to initially sell a product at a loss in an effort to meet which business objective? Break-even point Price skimming Market share None of these Growing market share, or one’s “slice of the pie,” is a common business objective. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Ford sells a car for a price of $15,000. The car costs $10,000 to produce. The $5,000 difference is Ford’s: Fixed cost Variable cost Markup Breakeven point Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Ford sells a car for a price of $15,000. The car costs $10,000 to produce. The $5,000 difference is Ford’s: Fixed cost Variable cost Markup Breakeven point Sellers must “mark up” the price of a product to earn a profit and ensure survival. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The money that Pizza Hut spends on cheese will depend on the number of pizzas sold. The cheese is a fixed cost. The cheese is a variable cost. Pizza Hut will need to use a price skimming approach in order to be profitable. Pizza Hut will always make a profit. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The money that Pizza Hut spends on cheese will depend on the number of pizzas sold. The cheese is a fixed cost. The cheese is a variable cost. Pizza Hut will need to use a price skimming approach in order to be profitable. Pizza Hut will always make a profit. Selling more pizzas means spending more money on cheese. Cheese is a variable cost. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Pizza Hut rents a space in the local mall. Their rent is a fixed cost. Their rent is a variable cost. Pizza Hut will need to use a price skimming approach in order to be profitable. Pizza Hut will always make a profit. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Pizza Hut rents a space in the local mall. Their rent is a fixed cost. Their rent is a variable cost. Pizza Hut will need to use a price skimming approach in order to be profitable. Pizza Hut will always make a profit. Pizza Hut will pay rent, no matter how many pizzas they sell. This is a fixed cost. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The point when the seller’s total revenues equal the seller’s total costs. Markup percentage Breakeven point Psychological price point Profit Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The point when the seller’s total revenues equal the seller’s total costs. Markup percentage Breakeven point Psychological price point Profit The breakeven point is the minimum number of units that must be sold to reach profitability. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Lay’s sells a new potato chip at a low price to encourage buyers to try it. Lay’s is using a price skimming strategy. Lay’s is using a penetration pricing strategy. Lay’s is using a dynamic pricing strategy. Lay’s is using a breakeven strategy. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Lay’s sells a new potato chip at a low price to encourage buyers to try it. Lay’s is using a price skimming strategy. Lay’s is using a penetration pricing strategy. Lay’s is using a dynamic pricing strategy. Lay’s is using a breakeven strategy. Penetration pricing is used to encourage buyers to try a new product. It is often used to market new products, such as chips. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Panasonic introduces a new plasma TV. In order to recoup costs and generate revenue: Panasonic should use a price skimming strategy. Panasonic should use a penetration pricing strategy. Panasonic should use a discount pricing strategy. Panasonic should use a breakeven strategy. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Panasonic introduces a new plasma TV. In order to recoup costs and generate revenue: Panasonic should use a price skimming strategy. Panasonic should use a penetration pricing strategy. Panasonic should use a discount pricing strategy. Panasonic should use a breakeven strategy. Price skimming is often used to help recoup initial costs involved in bringing a product to market. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The path that a product takes from production to the end user is known as: Syndicated selling route Distribution channel Retailing Selling path Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The path that a product takes from production to the end user is known as: Syndicated selling route Distribution channel Retailing Selling path A product can take a variety of routes from production to the end user—each is a distribution channel. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Which business is most likely to use a wholesale channel of distribution? Avon Wal-Mart 7-Eleven Dell Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Which business is most likely to use a wholesale channel of distribution? Avon Wal-Mart 7-Eleven Dell A 7-Eleven has little floor space, so they will be the most likely to use a wholesale channel of distribution. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall GameStop sells video games, consoles, and other items related to gaming. GameStop is a: Department store Factory outlet Specialty store Convenience store Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall GameStop sells video games, consoles, and other items related to gaming. GameStop is a: Department store Factory outlet Specialty store Convenience store A specialty store is a small store that sells one line of related products. Can you think of other examples of specialty stores? Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Rhonda receives an Eastbay catalog every month. Eastbay uses this method of non-store retailing. Direct selling Mail order Factory outlet Catalog showroom Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Rhonda receives an Eastbay catalog every month. Eastbay uses this method of non-store retailing. Direct selling Mail order Factory outlet Catalog showroom Eastbay doesn’t have traditional retail outlets. It is a non-store (mail order) retailer. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Shoppers can visit Dell’s website to “shop around” and make purchases. Dell has a(n): Electronic storefront Public warehouse e-Factory outlet Catalog showroom Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Shoppers can visit Dell’s website to “shop around” and make purchases. Dell has a(n): Electronic storefront Public warehouse e-Factory outlet Catalog showroom Dell shoppers can gather information, place orders, and make payments at their website—an electronic storefront. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The steps involved in moving a product from the manufacturer to the consumer is known as: Order fulfillment Electronic retailing Physical distribution Wholesale distribution Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The steps involved in moving a product from the manufacturer to the consumer is known as: Order fulfillment Electronic retailing Physical distribution Wholesale distribution Getting the product to the customer may require a number of activities. Together, they are known as physical distribution. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Any technique that is designed to communicate information and sell the product is known as: Promotion Personal selling Point-of-purchase selling Placement Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Any technique that is designed to communicate information and sell the product is known as: Promotion Personal selling Point-of-purchase selling Placement Promotion can include advertising, personal selling, and other activities to encourage buyers to buy. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The combination of advertising, personal selling, sales promotions, and publicity/public relations is: The marketing mix The promotional mix The distribution mix The retailing mix Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall The combination of advertising, personal selling, sales promotions, and publicity/public relations is: The marketing mix The promotional mix The distribution mix The retailing mix Sellers can use a combination (or mix) of activities to encourage consumers to make a buying decision. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Any paid, nonpersonal message with an identified sponsor is known as: Publicity Public relations Advertising Personal selling Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Any paid, nonpersonal message with an identified sponsor is known as: Publicity Public relations Advertising Personal selling Advertising is a general message that is not sent to a specific person. The sponsor is also identified during the message. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The advantages of magazine advertising include: Easy market segmentation Opportunity to provide detailed information Longer “shelf-life” than newspapers All of these Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The advantages of magazine advertising include: Easy market segmentation Opportunity to provide detailed information Longer “shelf-life” than newspapers All of these Every advertising media has advantages and disadvantages. It is up to the seller to decide which media is the best fit. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall A shopper wants to buy a computer, but has many questions. Which element of the promotional mix is most needed to sell the product? Advertising Publicity Sales promotions Personal selling Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall A shopper wants to buy a computer, but has many questions. Which element of the promotional mix is most needed to sell the product? Advertising Publicity Sales promotions Personal selling Personal selling allows for better buyer/seller interaction. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Short-term activities that are designed to encourage consumers to buy are known as: Advertising Publicity Sales promotions Personal selling Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Short-term activities that are designed to encourage consumers to buy are known as: Advertising Publicity Sales promotions Personal selling Sales promotions include coupons, premiums, and other activities that encourage consumers to buy. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Information about a company, its products, or an event which is transmitted by the media is: Advertising Publicity Sales promotion Personal selling Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Information about a company, its products, or an event which is transmitted by the media is: Advertising Publicity Sales promotion Personal selling Publicity (both good and bad news) is information that is shared about a company through the media. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall