Deck 6: Marketing: Pricing and Promoting

Question 1

Which category of direct selling in Canada had the highest percentage of sales in 2008?

A) nutrition
B) personal care products
C) leisure and educational products
D) home and family care products

Answer 1

personal care products

Question 2

Which of the following are your promotional cornerstones?

A) personal selling and paid advertising
B) service and quality
C) publicity and sales promotion
D) personal selling and publicity

Answer 2

service and quality

Question 3

Which of the following involves special events designed to attract the attention of target customers?

A) guerrilla marketing
B) impact marketing
C) personal selling
D) POP

Answer 3

impact marketing

Question 4

Which marketing technique uses social media to produce increases in brand awareness?

A) social marketing
B) media marketing
C) virtual marketing
D) viral marketing

Question 5

How many common methods of pricing for small business are there?

A) 7
B) 6
C) 5
D) 4

Question 6

What is the term for the process of getting your business image into the front of a prospective customer's mind?

A) marketing
B) social marketing
C) advertising
D) promotion

Question 7

Which of the following defines your product/service benefits to your target market?

A) marketing service proposition
B) selling mission statement
C) core benefit proposition
D) central advertising proposition

Question 8

Which of the following is used to calculate the selling price?

A) (selling price - cost) / cost
B) total costs per unit + estimated dollar profit per unit
C) direct costs per unit - estimated profit per unit
D) markup - cost

Question 9

Which of the following best illustrates how to calculate markup?

A) sales - expenses
B) selling price - cost
C) (selling price - cost) / cost
D) (selling price - cost) / selling price

Question 10

Which of the following is characteristic of personal selling in a small business?

A) an inexpensive way to promote
B) an ineffective form of small-business promotion
C) something only the owner can do
D) an expensive way to promote

Question 11

Which of the following best describes money-back guarantees?

A) will help you reach diverse customers
B) have become uncommon in mail-order products
C) have not proven to help a firm's image
D) are a form of promotion

Question 12

According to the author, which of the following is the key to a good website?

A) only needed if your target customer is a potential Internet surfer
B) should use the latest technology
C) should be action-oriented
D) should invest a minimum of $5,000 for website development

Question 13

What is the term for the practice of attending monthly meetings to meet with other noncompeting entrepreneurs to exchange ideas?

A) networking
B) free ink
C) brainstorming
D) impact marketing

Question 14

What is the term for unconventional methods of getting the customer's attention at minimal cost?

A) marketing
B) viral marketing
C) guerrilla marketing
D) branding

Question 15

Which of the following comprises an analysis of the external market, target market, competitive advantage, and marketing mix?

A) marketing tactics
B) marketing strategy
C) pricing strategy
D) promotional mix

Question 16

Which of the following involves blending various elements to maximize communication with your target customer?

A) marketing mix
B) communication strategy
C) core marketing proposition
D) promotional mix

Question 17

Which pricing strategy is a business using when it initially sets a higher selling price and then reduces the price as competition begins to grow?

A) penetrating
B) economy
C) premium
D) skimming

Question 18

Which of the following is characteristic of a discount coupon?

A) has an expiration date
B) is a special form of freebie
C) is a special form of paid advertising
D) does not have multiple-use disclaimers

Question 19

Which of the following involves communicating through person-to-person channels in an attempt to sell or gain information?

A) direct selling
B) co-op advertising
C) networking
D) piggybacking

Question 20

Which of the following combinations BEST describes the components of a brand used to identify the products of a firm?

A) symbol or concept
B) name or design
C) name, concept, or design
D) sign, symbol, name, or design

Question 21

What is the fourth step in creating a promotional plan?

A) endorse and detail a program
B) create the promotional methods
C) develop the strategies
D) evaluate the costs

Question 22

What has the marketing strategy traditionally been called?

A) promotions
B) pricing
C) marketing
D) marketing mix

Question 23

What is the markup percentage for a selling price of $5 when the cost is $3?

A) 6.6%
B) 66.66%
C) 4.4%
D) 44.44%

Question 24

What is the markup percentage for a selling price of $6 when the cost is $3?

A) 0%
B) 1%
C) 10%
D) 100%

Question 25

What is the term for a markup percentage that is added to the cost to determine the selling price?

A) overhead costs
B) profits
C) sales costs
D) total costs

Question 26

Which of the following involves an analysis of the external market, target market, product/service uniqueness, and marketing mix?

A) promotional strategy
B) marketing mix
C) marketing strategy
D) promotional mix

Question 27

According to the author, what number of people will an unhappy customer complain to about poor service?

A) 26
B) 12
C) 10
D) 5

Question 28

Which process involves setting the highest price that target customers will pay for a product or service given their needs, values, and competitive options?

A) keystone pricing
B) ceiling pricing
C) value-based pricing
D) customer-based pricing

Question 29

Which of the following pricing strategies is recommended for most small businesses?

A) ceiling
B) profit-based
C) industry norm
D) cost-based

Question 30

Which of the following involves setting "no-frills" low prices to increase volume and discourage competition?

A) penetration pricing
B) limit pricing
C) price skimming
D) industry norm pricing

Question 31

As described in Chapter 6, which type of marketing strategy did CampusCrow.com use successfully?

A) direct mail
B) paid media advertising
C) catalogues
D) viral marketing

Question 32

According to the Direct Sellers Association, which of the following methods resulted in the highest sales in 2008?

A) group selling
B) customer placing orders
C) person-to-person selling
D) internet selling

Question 33

According to the author, who should your salespeople be?

A) front line staff
B) everyone in your business
C) business graduates
D) anyone can act as your salespeople

Question 34

What type of marketing is being used when employees have a flash mob in front of their store?

A) impact
B) viral
C) guerrilla
D) free air

Question 35

Which of the following is a potential outcome of pricing your product too low?

A) a low price is a good strategy for start-up business
B) customers may believe they are getting a bargain
C) a low price is better than pricing your product too high
D) a low price may keep customers from purchasing the product

Question 36

Networking is an attempt to see or gain information by talking to people with the purpose of doing business.

Question 37

According to the text, business cards are no longer an effective promotional strategy.

Question 38

According to the textbook, it costs much more to get a new customer than it does to keep your present customer satisfied.

Question 39

Paid advertising was a key promotional strategy used by Brian Scudamore and his 1-800-GOT-JUNK? team (Chapter 6 case study).

Question 40

According to the textbook, there is little available evidence linking quality and service to increased profit and growth.

Question 41

According to the text, you should first consider the ceiling price strategy and then ensure that this price will cover your costs and yield a desired profit.

Question 42

Your competitive analysis should be part of your marketing strategy.

Question 43

According to Brian Scudamore of 1-800-GOT-JUNK, "free ink" is one of the best ways to promote a small business.

Question 44

Your marketing strategy is a blend of your product offering, pricing, promotion, and place (location).

Question 45

One way to avoid keeping your business a secret is to brainstorm an ideal promotional campaign.

Question 46

A competitive touchpoint analysis can help you to establish a possible price range that your target market will accept.

Question 47

The considerations involved in pricing a product are quite different from the considerations required in pricing a service.

Question 48

A markup is a percentage of your profit, which is added to the cost in order to determine your selling price.

Question 49

According to the textbook, personal selling can be quite expensive but it is an effective form of promotion for small business.

Question 50

According to the textbook, as a guiding principle, small-business owners should start out with low prices to attract customers.

Question 51

The objective of a competitor-based pricing strategy is to increase market share by setting prices below those of your competition.

Question 52

Point-of-purchase advertising is popular with mail-order merchants.

Question 53

According to the textbook, direct mail is your best approach if your market is fragmented or diverse.

Question 54

A money-back guarantee is a promotional strategy you should consider for your small business.

Question 55

According to the textbook, branding is a promotional technique that is too expensive for a small business.

Question 56

The calculation of your markup includes overhead costs.

Question 57

According to the textbook, promoting your website offline is not particularly effective because you are addressing two distinct types of target customers.

Question 58

Profit-based pricing involves setting a price that corresponds with generally accepted industry standards.

Question 59

A statement about what your product or service will do for the target customer is called your core benefit proposition.

Question 60

According to the text, discount coupons are not an effective promotional strategy for small business.

Question 61

Setting a price that depends on generally accepted industry standards is known as keystone pricing.

Question 62

Penetration pricing occurs when you set the highest price your target consumers will pay for a product or service given their needs and values and the competitive options.

Question 63

An example of guerrilla marketing is the 1-800-GOT-JUNK? junk motorcades (Chapter 6 case study).

Question 64

Smart entrepreneurs figure out ways to make themselves-and their businesses-distinctive. This is called ____________.

Question 65

The art or science of moving the image of your business into the forefront of a prospective customer's mind is the definition of _______________.

Question 66

All of the elements that you blend to maximize communication with your target customer comprise your __________ __________.

Question 67

The image of your business to a support group of non-competitive helpers is known as __________.

Question 68

A statement about the benefits of your product or service directed to your target market is called a ____________ ____________ ______________.

Question 69

The highest price that target consumers will pay for a product or service, given their needs, values, and the competitive options, is called a ___________ _________.

Question 70

A percentage of your cost of sales (sometimes the selling price), which is added to the cost in order to determine your selling price, is called a _______.

Question 71

A key small business promotional strategy, which refers to unconventional methods of getting customer attention at minimal cost, is called ____________ _________.

Question 72

Explain the promotional term free ink.

Question 73

A major marketing strategy of 1-800-GOT-JUNK? was to focus on a specific market segment, create uniqueness, and differentiate its service as perceived by the customer. How would this marketing strategy affect GOT-JUNK?'s pricing policy?

Question 74

How can a small business develop a mailing list?

Question 75

According to the text, your marketing strategy will include an analysis of four major elements. What are these four elements?

Question 76

Explain how a point-of-purchase (POP) display could help sell a retail customer product.

Question 77

Briefly explain the four common methods of pricing for small business.

Question 78

Briefly explain the meaning and purpose of the marketing concept of markups.