Question 1

What is a promise,written or unwritten,that a product will do certain things or meet certain standards?

Accepted Answer

A warranty is a promise, either written or unwritten, that a product will do certain things or meet certain standards. Trademark refers to the symbol or logo that identifies a particular brand, copyright refers to the legal ownership of a creative work, and a label simply provides information about the contents of a product.

Question 2

Evan wants to make sure consumers don't become confused when reviewing the items he puts out for sale.He decides to remove desk lamps from the display that includes staplers,paperclips,and writing tools.What is Evan concerned with?

Accepted Answer

The answer of Evan wants to make sure consumers don't...

Question 3

How does price have a dual influence on total sales revenue?

Accepted Answer

Price has a direct influence on total sales revenue as it is a component of the sales revenue equation (Total Revenue = Price * Quantity Sold). However, price also has an indirect influence on total sales revenue through its impact on demand. As the price of a product increases, demand generally decreases, which can negatively impact total sales revenue. Conversely, as the price of a product decreases, demand generally increases, which can positively impact total sales revenue.

Question 4

As the sales of desks increase at a furniture company,the raw material costs increase as well.What kind of cost are material costs?

Accepted Answer

Material costs are a type of variable cost, meaning they vary directly with the level of production or sales. As the company sells more desks, they will need to purchase more materials to create the desks, resulting in a higher material cost. Fixed costs, on the other hand, do not change regardless of how much is produced or sold. Total costs are the sum of fixed and variable costs, and marginal costs refer to the additional cost of producing one more unit.

Question 5

Penelope is reviewing the features of the kitchen appliance line her company sells and is wondering if she should lower prices,allow free shipping,and then create an advertising blitz.What activity is Penelope engaged in?

Accepted Answer

Penelope is considering adjustments to price, distribution (free shipping), and promotion (advertising blitz), which are all elements of the marketing mix. The marketing mix typically includes product, price, place, and promotion strategies.

Question 6

Colourful Concoctions,a maker of children's crayons,decides to price its boxes of crayons below the long-term market price.The firm agrees to reduce its profit margin from 30 percent to 5 percent in the short term in order to increase market share and discourage other firms from entering the crayon market.What strategy is Colourful Concoctions implementing?

Accepted Answer

Colourful Concoctions is implementing penetration pricing, which involves pricing a product below the long-term market price in order to gain market share and discourage competitors from entering the market. This strategy typically involves sacrificing short-term profits for long-term success.

Question 7

What term refers to the total bundle of satisfaction offered to customers in an exchange transaction?

Accepted Answer

A product encompasses both goods and services, offering a total bundle of satisfaction to customers in an exchange transaction.

Question 8

Devon lives in a small town and sells stock plans to younger investors and government bonds to investors close to retirement age.What variable is Devon focusing on to make sales?

Accepted Answer

The answer of Devon lives in a small town and...

Question 9

A marketing professor is teaching her class about marketing philosophies by describing successful companies and their philosophies.Which philosophy would these companies most likely have in common?

Accepted Answer

Companies that are successful and focused on meeting the needs and wants of their customers are typically consumer-oriented. This approach emphasizes researching and understanding customer preferences and behaviors in order to create products and marketing strategies that appeal to them. This approach often leads to strong customer relationships and loyalty, which can lead to long-term success.

Question 10

Rachel's company sells furniture for the home and furniture for the office.What would a kitchen table and kitchen chairs be part of?

Accepted Answer

A product line refers to a group of related products within a company's overall product assortment. In this case, the kitchen table and chairs would be part of the furniture for the home product line within Rachel's company's overall product mix.

Question 11

What should the customer profile in a market analysis include?

Accepted Answer

The customer profile in a market analysis should include marketing research information such as demographics, psychographics, behavior patterns, purchasing habits, and needs and wants of the target audience. This information can come from primary or secondary data sources. It is also useful to conduct a SWOT analysis of the competition but this is not specifically related to the customer profile.

Question 12

Constance allocates 90% of her overall budget to making the company's cyber security software easy to use and bullet-proof against attacks from hackers.Which type of marketing philosophy does Sewell Motors subscribe to?

Accepted Answer

The answer of Constance allocates 90% of her overall budget...

Question 13

What is a rule to follow when choosing a name for a product?

Accepted Answer

A name that is easy to pronounce and remember is important for consumer recognition and brand loyalty.

Question 14

Jeremy is reviewing the company's various customer groups,gathering information about current market trends,and developing a sales forecast.What activity is Jeremy engaged in?

Accepted Answer

Jeremy is engaged in market analysis, which involves reviewing customer groups, gathering information about market trends, and developing a sales forecast. Option A, small business marketing, is a more specific activity that focuses on marketing strategies for small businesses. Option B, cash cow, refers to a product or service that generates consistent profits for a company, but is not related to the activity Jeremy is engaged in. Option D, market strategy, is a broader term that encompasses various activities, including market analysis, but it does not accurately describe the specific activity that Jeremy is performing.

Question 15

What must a group of customers or potential customers possess to be appropriately considered a market?

Accepted Answer

A group of customers or potential customers must have purchasing power to be considered a market. Without the potential to buy or invest in a product or service, the group cannot be considered a viable market for businesses. Marketing power, retail power, and pricing power are not necessarily requirements for a market to exist.

Question 16

A company sold 1,000 truck tires and has total variable costs of $40,000,total fixed costs of $30,000,and sales revenue of $110,000.What is the average cost per tire?

Accepted Answer

The average cost per tire is calculated by dividing the total costs (variable + fixed) by the number of tires sold. Total costs = $40,000 (variable) + $30,000 (fixed) = $70,000. Dividing this by 1,000 tires gives an average cost of $70 per tire.

Question 17

To appeal the daring nature of teenagers and young adults,Bonnie started promoting her off trail bikes showing riders completing hair-raising jumps.What variable is Bonnie focusing on to make sales?

Accepted Answer

Bonnie is focusing on the psychographic variable, specifically the personality traits and desires of teenagers and young adults that lead them to seek out daring activities. She is using this information to promote her off trail bikes as a way for them to fulfill this desire and appeal to their specific psychographic characteristics.

Question 18

A new high-end steak house sets its prices very high to appeal to high-income clients that desire top quality cuisine and prestige service.What pricing strategy is this restaurant using?

Accepted Answer

The restaurant is using a prestige pricing strategy, where high prices are set to appeal to customers who associate the high price with premium quality and prestige service.

Question 19

What areas of marketing strategy should be addressed within the marketing plan?

Accepted Answer

The areas of marketing strategy that should be addressed within a marketing plan are promotional, pricing, distribution, and product/service decisions. These four elements are crucial to the success of any marketing plan and a comprehensive plan will address each of these areas. Sales support and supplier reliability may also be important considerations, but they are not as essential as the four areas identified in option A.

Question 20

Happy with the company's success,Jude reduces further investment in R & D to increase distribution channels and widen the geographic coverage of his company's energy drink.Which marketing philosophy does Jude subscribe to?

Accepted Answer

Jude's focus on increasing distribution channels and widening geographic coverage indicates that he subscribes to a sales-oriented marketing philosophy, prioritizing sales and distribution over R&D and catering to customer needs.

Quiz 6: Small Business Marketing, Product, and Pricing Strategies