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