Question 1

Price lining refers to the systematic determination of the right price for a product or service.

Accepted Answer

Price lining actually refers to the practice of offering a product line at several different price points, not to determining the optimal price for a single product or service.

Question 2

Flexible pricing is a marketing approach that offers different prices to reflect differences in customer demand.

Accepted Answer

Flexible pricing is a marketing strategy that takes into account customer demand and offers varying prices based on that demand. This approach aims to maximize profits by increasing prices during periods of high demand and reducing prices during periods of low demand.

Question 3

Roger wants to develop a reputation for his company so that when people hear its name they think quality,service,and satisfaction.What is Roger concerned with?

Accepted Answer

Roger is concerned with building the company's brand reputation.

Question 4

Following the completion of the market analysis,the entrepreneur is ready to write the formal marketing plan.

Accepted Answer

Yes, after conducting a thorough market analysis, the entrepreneur has gathered enough information about the market and their target audience, which will be used to write a comprehensive marketing plan.

Question 5

Service mark is a term indicating the non-exclusive right to use a brand to identify a service.

Accepted Answer

A service mark is a type of trademark used to identify and distinguish the services (rather than products) of one provider from those of others. It does not imply a non-exclusive right but rather provides exclusive rights to use the mark in connection with the service it represents.

Question 6

Market segmentation,marketing research,and sales forecasting are the activities that make up what is commonly called market analysis.

Accepted Answer

Market segmentation, marketing research, and sales forecasting are all part of market analysis.

Question 7

Packaging and labelling are unimportant in the process of marketing a product.

Accepted Answer

Packaging and labelling play a significant role in the marketing of a product. They help in creating brand identity, increasing product visibility, providing information about the product and its usage, attracting consumers, and differentiating the product from its competitors. Effective packaging and labelling can influence consumer purchasing decisions, and hence, they are essential components of the marketing mix.

Question 8

What scenarios should sales forecasts cover?

Accepted Answer

Sales forecasts should cover both optimistic and pessimistic scenarios, as well as a most likely scenario. This allows for a range of potential outcomes and helps with strategic planning and decision making. The inclusion of a least likely scenario may not be as useful as it is unlikely to occur, but could be considered as an additional layer of planning.

Question 9

A penetration pricing strategy is most practical when there is little threat of short-term competition in the market or when start-up costs must be recovered rapidly.

Accepted Answer

Penetration pricing is most effective in markets with high competition, as it aims to quickly attract customers by offering lower prices than competitors, not in scenarios with little threat of competition or when needing to recover start-up costs rapidly.

Question 10

ManMaid,a residential home cleaner,has fixed costs of $5,000 per month.It bills each client $150 for a cleaning service and incurs variable costs of $100.What is the breakeven point for ManMaid?

Accepted Answer

The answer of ManMaid,a residential home cleaner,has fixed costs of...

Question 11

Today,marketing is viewed as activities that direct the flow of goods and services from producer to consumer,or user.

Accepted Answer

The answer of Today,marketing is viewed as activities that direct...

Question 12

Donovan runs a candle manufacturing company.The baked goods candles,which look and smell like pies,tarts,and muffins,are a best seller.What would a butter tart candle represent?

Accepted Answer

A butter tart candle would be a specific product item within the baked goods candle product line.

Question 13

Which marketing philosophy is considered to be short-sighted?

Accepted Answer

The sales-oriented marketing philosophy is considered to be short-sighted because it focuses solely on generating immediate sales and profits, rather than building long-term relationships with customers and creating a loyal customer base. This approach may result in short-term success, but it can ultimately harm the company's reputation and limit its potential for growth. In contrast, consumer-oriented and market-oriented philosophies prioritize meeting the needs and wants of consumers, while the production-oriented philosophy emphasizes maximizing efficiency and productivity in the production process.

Question 14

Jason is making sure the quality control process is functioning properly to maintain his objective to provide the most reliable hand tools to his clients.What is Jason concerned with?

Accepted Answer

Jason is concerned with the product strategy, specifically ensuring the quality control process is functioning properly to maintain the objective of providing reliable hand tools to clients. The other options (product vision, product mission, and product analysis) are not directly related to maintaining quality control processes.

Question 15

Sales associates of Sewell Motors strive to exceed the company's expectation of treating the customer as its number one priority.Every action,policy,and ultimate sale is conducted professionally,with the needs of potential customers in mind.Which type of marketing philosophy does Sewell Motors subscribe to?

Accepted Answer

Sewell Motors' focus on treating the customer as its number one priority indicates a consumer-oriented marketing philosophy, where the needs and desires of the customer are of utmost importance.

Question 16

Why is the consumer-oriented approach to marketing the preferred philosophy for all types of businesses?

Accepted Answer

The consumer-oriented approach to marketing emphasizes that everything, including production, depends on consumer needs. This approach puts the customer first, which is important for all types of businesses in today's customer-centric market. It helps businesses to better understand and serve their customers, which can lead to increased sales and customer loyalty. Thus, it is the preferred philosophy for all types of businesses. Options A, B, and D are incorrect as they do not fully capture the essence of the consumer-oriented approach to marketing.

Question 17

Regardless of the type of business,the consumer-oriented marketing philosophy is the best choice among the competing alternatives for small businesses.

Accepted Answer

With consumer-oriented marketing, the focus is on meeting the needs and wants of the customers, creating a better customer experience, and building long-term relationships with them. This approach is especially important for small businesses that rely heavily on repeat customers and word-of-mouth referrals for growth. Therefore, it is the best choice among the competing alternatives.

Question 18

Oscar decides to remove the line of water filters that he had added to his office supply products because the filters are not selling.What is Oscar performing?

Accepted Answer

Oscar is conducting business analysis by assessing the performance of his water filters and deciding to remove them from his product offerings due to poor sales. Business analysis involves evaluating the overall performance of a business and making decisions to improve profitability and efficiency.

Question 19

Christina has a line of silver jewellery.She feels some earring designs will be attractive for older women,some necklaces would be desired by professional women,and some bracelets would be suitable for both young female and male adults.What variable is Christina considering?

Accepted Answer

Christina is considering segmenting her market based on different demographics and preferences of her potential customers.

Question 20

Cameron sells large bags of sawdust used to clean up spills in production processes.What type of customer does Cameron sell to?

Accepted Answer

Cameron sells large bags of sawdust used in production processes, indicating that their target customers are likely businesses or industrial users rather than individuals, homemakers, or professionals.

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