Deck 7: Developing the Right Marketing Mix and Plan

Question 1

Which of the following is a way to use cause-related marketing in your business?

A) Advertise that you support a social, political, or environmental cause, without actually giving any money or time to the cause.
B) Donate a small percentage of your revenue to a cause, but don't tell anyone.
C) Pay employees to volunteer some time toward community service.
D) None of the above.

Answer 1

C

Question 2

When you build a brand, try to focus tightly on one key ________.

A) Benefit
B) Feature
C) Product
D) Customer

Answer 2

A

Question 3

Bill and Melinda Gates and Warren Buffett have committed millions of dollars to the Bill and Melinda Gates Foundation, making them among the world's greatest ________.

A) Tax payers
B) Philanthropists
C) Misogynists
D) Entrepreneurs

Answer 3

B

Question 4

Marketing inspired by a commitment to a social, political or environmental issues is called ________.

A) Philanthropy
B) Cause-related marketing
C) Socially responsible business
D) Environmental marketing

Question 5

New entrepreneurs often feel they should sell their product or service at the lowest price they can afford. However, ________.

A) Sometimes consumers think low price indicates low quality
B) Often consumers are willing to pay higher prices than the entrepreneur will charge
C) Purchasers of luxury goods may want to pay a higher price rather than a lower price
D) All of the above.

Question 6

Finding a retail site that has more than ample parking, excellent access and walk-in trade potential is an example of maximizing which of the marketing Ps?

A) Place
B) Price
C) Product
D) Promotion

Question 7

According to Guerilla Marketing Attack by Jay Levinson, when consumers in the furniture industry rated factors affecting their purchase decision, ________.

A) Price was by far the most important variable
B) Price was the ninth most important variable
C) Price was not deemed to be a critical or relevant variable in the purchase decision
D) Price was the 25th most important variable

Question 8

A marketing plan contains all of the following sections except ________.

A) Product/Service
B) Promotion Strategy/Plan
C) Financial Projections
D) Pricing Strategy

Question 9

A ________ is an identifying symbol for a product or a business.

A) Brand
B) Logo
C) Trademark
D) Copyright

Question 10

Promotion consists of ________.

A) Advertising
B) Publicity
C) Other promotional devices such as discount coupons and giveaways
D) All of the above

Question 11

A nonprofit organization that uses donated money to help others is called a ________.

A) Tax exempt
B) Foundation
C) Philanthropy
D) Free enterprise

Question 12

Expressing concern for social issues by giving money, time, or advice is called ________.

A) Cause-related marketing
B) Foundation
C) Philanthropy
D) Social enterprise

Question 13

To break even, a business must ________.

A) Sell enough units to cover its fixed costs
B) Sell enough units to cover all its costs
C) Sell enough units to earn a profit
D) Sell enough units to cover its variable costs

Question 14

Which of the following is one of the four Ps of marketing?

A) Product
B) Population
C) Publicity
D) Profit

Question 15

Ford's Edsel is an example of a product that failed because it lacked ________.

A) Focus
B) Name recognition
C) Competitiveness
D) Imagination

Question 16

What is the smartest price strategy?

A) Choose a pricing strategy that communicates your competitive advantage.
B) Offer the lowest price that you can afford to offer.
C) Pick a pricing strategy that is different from the competition's strategy.
D) Change the pricing every quarter.

Question 17

Why are not-for-profit corporations tax exempt?

A) Because they donate money to foundations
B) Because they use the money they collect to help improve society
C) Because they pay a different form of tax than regular corporations
D) Because they don't make profits of any kind

Question 18

Which of the following is not an example of successful branding?

A) A product represents luxury to customers.
B) Customers confuse a business's logo with that of another business.
C) Customers associate a product with high ethical standards.
D) Customers cannot remember the name of the company.

Question 19

Fixed operating costs ________.

A) Are not included in COGS
B) Are not direct costs of creating each product
C) Include expenses like the power bill and rent
D) All of the above

Question 20

________ is free (non-purchased) mention of your business or brand in newspapers, magazines, radio or TV.

A) Advertising
B) Publicity
C) Product marketing
D) Promotion

Question 21

What attributes should your business name have?

A) Creative and funny
B) Distinctive and easy to remember
C) Similar to your main competitor and short
D) None of the above

Question 22

Quentin produces highly specialized widgets at his factory. He sells them for $150 each and has a gross profit of $100 on each one. His monthly costs are: $5,000 for rent, $1,000 for utilities, $13,000 for salaries and benefits, $1,000 for insurance, $3,000 for interest on his debt. How many widgets does he have to sell to cover his fixed costs?

A) 230
B) 2,300
C) 23,000
D) 3,500

Question 23

The key to building a successful brand is to broadly summarize many benefits you want to deliver to customers.

Question 24

________ is the use of advertising and publicity to get your market message out to your customers.

A) Marketing
B) Promotion
C) Sales
D) Philanthropy

Question 25

What should a company do to build and maintain its brand?

A) Maintain high ethical standards
B) Define the product or service clearly
C) Treat its employees well
D) All of the above

Question 26

Any word, name, symbol, or device used by an organization to distinguish its product is a(n) ________.

A) Copyright
B) Patent
C) Trademark
D) None of the above

Question 27

With a breakeven level of sales at 3,330 sandwiches per month, how many sandwiches per day must Pedro sell on average to breakeven?

A) 111
B) 100
C) 110
D) 333

Question 28

Philanthropy is the fifth "P" of marketing.

Question 29

A product is defined by its ________.

A) Physical attributes
B) Performance characteristics
C) Pricing
D) All of the above

Question 30

Anna produces custom decorated handbags in San Francisco. She buys 50 plain handbags at $10 each and embellishes them with beads and paints and sells all of them for $40 each at a fair. It costs her $5 each for paint and beads. What was her total revenue and COGS (without labor)?

A) $2,000; $250
B) $3,000; $500
C) $2,000; $750
D) $500; $250

Question 31

In the 4 "Ps" of marketing, ________ refers to the location where you choose to market your product.

A) Price
B) Place
C) Promotion
D) Product

Question 32

Wholesale businesses requiring a great deal of storage space are most concerned about ________ when choosing a location.

A) Foot traffic
B) Internet traffic
C) Proximity to similar companies
D) Easy access to roads and highways

Question 33

A product is intangible.

Question 34

The packaging is not part of the product.

Question 35

Which of the following is a promotion method that may assist a retail business?

A) Coupons
B) Signs
C) Samples or demonstrations
D) All of the above

Question 36

Which of the following is a promotion method that could be expected to assist a wholesale business?

A) Billboards
B) Web sites
C) Both A and B
D) Neither A or B

Question 37

A foundation is a ________ organization.

A) For-profit
B) Not-for-profit
C) Both A and B
D) Neither A or B

Question 38

What is an intangible asset generated when a company does something positive that has value?

A) Publicity
B) Goodwill
C) Advertising
D) Optimism

Question 39

Tanika is planning to open a consulting practice based in a shared office facility. Her monthly fixed costs will total $2,500 plus she must earn at least $7,500 per month to replace her salary and benefits. She plans to charge $65 per hour for her consulting services and will have direct costs of $15 per hour for a gross profit of $50 per hour. How many hours of consulting must she bill per month?

A) 200 hours
B) 50 hours
C) 150 hours
D) None of the above

Question 40

Promotion is the development of the popularity and sales of a product or service through advertising, publicity, and other marketing devices.

Question 41

Jenny is concerned because when she calculates her breakeven for her business, the number of products she much produce and sell is greater than what she can handle. Explain whether or not she could improve her breakeven by finding lower costs. Which, if any, types of cost reductions could lower her breakeven? Why?

Question 42

Customers will not respond to brand personality or develop a relationship with it.

Question 43

Price should reflect your marketing vision.

Question 44

Discuss the concept of fixed costs and the types of fixed costs. Can fixed costs vary?

Question 45

Define promotion, advertising and publicity.

Question 46

Many philanthropic organizations in the United States were established by entrepreneurs.

Question 47

Explain why a business should focus on its brand.

Question 48

Define philanthropy and explain why some marketing experts call philanthropy "the fifth P", and why it is important to entrepreneurs.

Question 49

Advertising is free mention of a company, person, event, product, or service in media such as newspapers and magazines or on radio or television.

Question 50

Providing a high-quality product or service will not contribute to your brand.