Essential Marketing Concepts Explained

1. Chapter 10 Review

2. 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

3. 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

4. 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

5. 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

6. 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

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

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

9. 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

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

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

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

13. 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

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

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

16. 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

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

18. 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

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

20. Define • Intangible • Services that have no physical form.

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

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

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

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

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

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

27. 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

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

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

30. 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

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

32. 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