Chapter 10 Review

True or False A farmer selling tomatoes she grew in her own garden at a roadside stand is an example of a direct channel of distribution. TRUE

True or False Product packaging is the least important part of product planning because consumers simply throw away the packaging before using the product. FALSE

Define Marketing An 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

Multiple choice A small number of consumers expressing opinions about a new product or service in a group discussion is a: A) target market B) Focus group C) survey group D) experimental group B

Multiple choice A product will probably have a relatively high price: A) if it is hard to find B) if its supply is high C) if it has been on the market for a long time D) if it has many features and options D

Define Marketing strategy A company’s plan that identifies how it will use marketing to achieve its goals

Define Target market A specific group of consumers who have similar wants and needs.

Multiple choice This marketing function involves setting and communicating the value of products and services A) financial analysis B) distribution C) pricing D) selling C

True or False All businesses must complete some marketing activities even if that is not their focus. T

Define Marketing mix The blending of the four marketing elements: product, distribution, price and promotion.

True or false Advertising is any form of communication used to inform, persuade, or remind. F

Multiple choice Businesses usually specialize in producing a specific type of product, while consumers want to purchase a variety of products. This illustrates differences in: A) assortment B) quantity C) location D) timing A

Define Final consumer Persons who buy products and services mostly for their own use.

Define Consumer decision-making process The specific sequence of steps consumers follow to make a purchase.

Multiple choice What is the first step in the consumer decision-making process? A) gather information B) select alternatives C) evaluate alternatives D) recognize a need D

True or false The first step in new product planning is to develop a full marketing strategy. F

True or false A markup should be thought of as a pricing mistake because it reduces the amount of money the business has to cover operating expenses profits. F

Multiple choice Product costs + Operating expenses + Profit = A) gross margin B) selling price C) markup D) markdown B

Define Intangible Services that have no physical form.

True or false Finding solutions to problems through carefully designed studies involving consumers is called marketing research. T

True or false A target market is a group of consumers that have similar wants and needs. T

Define Price The money a customer must pay for a product or service.

True or false Effective marketing begins with a good product. F

Define Channel of distribution The route a product follows and the businesses involved in moving a product from the producer to the final consumer.

Multiple choice The simplest form of a product is called the A) basic product B) brand name C) product D) option A

Multiple choice Services are A) easier than products to examine to see if they will meet your needs B) consumed that the same time they are produced C) the same no matter who provides them D) easier than products to store B

Multiple choice Which of the following is an example of personalized promotion? A) advertising B) publicity C) personal selling D) sales promotion C

Define Promotion Any form of communication used to inform, persuade, or remind.

Multiple choice Non-paid promotion presented by the media rather than be a business is: A) telemarketing B) advertising C) sales promotion D) publicity D

Define Advertising Any paid form of communication through mass media directed at identified consumers to provide information and influence their actions.

Additional terms to know: Financial analysis Emotional buying motive Selling Business consumers Distribution Promotion Final consumers Effective communication Marketing-information management Rational buying motive Product and service agreement Marketing strategy Product, distribution, price, promotion Primary research Gross margin