Marketing Principles Final Review Betty Croker Brownies use

Marketing Principles Final Review

Betty Croker Brownies use Hershey’s syrup in there mix. What is this an example of? � Co-branding

Define co-branding � Combines one of more brands

What is the difference between position by unique characteristics, by price and quality, in relation to competition, and by features and benefits? � Unique characteristics: focus on what make the product unique. � Price and quality: focus on the price of the product and what it offers � In relation to competition: Compare their product to competitors � Features and benefits: focus on what the product has to offer and the benefits of those points

What is it called when a brand allows others to use the brand name for a fee? � What is brand licensing?

What is an example of brand licensing? � The Georgia Bulldogs allows VISA to use their logo on their credit cards for a fee

When a company uses an existing brand name to promote a new and improved product in a company’s product line is called? � brand extension

Hershey uses it’s name to expand it’s brand by making the Hershey’s Drops, What is this an example of? � Brand extension

A symbol, design, distinctive coloring or lettering of a company is known as their? � Brand mark

Mc. Donalds created a dollar menu. Burger King then decided to create a dollar menu. What type of pricing strategy is this an example of? � Competition oriented pricing

______buy the product, _______use the product � Customers � Consumers

What do you call the money left after taking out taxes? � Disposable income

What does utility add to a product? � VALUE

What factors are involved in changing the ways businesses do international trade? � technology

What is an embargo? �a total ban on specific goods coming into and leaving a country

North American Federal Trade Agreement, World Trade Organization and European Union are examples of ______ � government trade agreements and alliances

A period of economic slowdown that lasts for two quarters or six months is known as a _____? � recession

A prolonged recession lasting more than 6 months is known as _____? �A depression

Land, labor, capital(money) are examples of ____ � Resources-Factors of production

How are marketing strategies best utilized? � determining what customers want AND the best way to make those products available

What are they four phases of the business cycle? � expansion � recession � trough � recovery

The difference between the amount of money a business brings in and what it spends is known as ____ � Profit

Charlie owns a jewelry business. He buys watches for $4. 00 and sells them for $8. 00. How much PROFIT does he make on each sale? Sale Price – cost = profit 8 -4=$4. 00

How do consumers benefit from competition? � lower prices, better quality products

What is non-price competition? � competing on the basis of quality, location, customer service, etc.

The struggle of each business to obtain a share of the market is known as ____ � competition

What economic system does the U. S. operate under? � Mixed economy/Market

A planned economy in which the government makes all the economic decisions and there is only one political party is known as _______ � communism

What economic system does this describe? Promotes competition, allows for little government involvement, private ownership. The people answer the 3 basic economic questions. � free-enterprise

Total value of goods and services produced by a nation over a specified period of time is known as _____ � Gross National Product (GNP)

Mc. Donalds, Chick-fil-A, KFC are examples of _____ � franchises

An agreement between a corporation and an individual who wishes to operate that business locally is known as _____ �A franchise

Allowing workers to choose their own working hours is known as ______ � Flextime

What is telecommuting? � Involves working at home usually on a computer. Jobs are often completed with the assistance of email, and fax.

What is ethical behavior? � Ethics are guidelines for good behavior. Knowing the difference between right and wrong.

Give an example of UN-ethical behavior. � Changing your grades in the teacher’s gradebook � Smoking cigarette ads targeting children

Believing that the company’s role in society includes actions affecting employees, consumers, communities, and the environment is known as? � social responsibility

What are the pricing strategies? � cost oriented pricing � demand oriented pricing � competition-oriented pricing � product life cycle strategies � product mix strategies � psychological pricing strategies � promotional pricing

What is this an example of? � Special Event pricing

bundle pricing-offers complementary products within the package for a single price geographical pricing-making price adjustments based on location These are examples of _________ ◦ product mix strategies

- Odd/Even pricing-setting prices that end in odd or even numbers to convey value and prestige example: $19. 99 suggests a bargain, $20. 00 suggests quality - prestige pricing (think Michael Kors) These are examples of ______ ◦ psychological pricing strategies

This is an examples of _____ � Bundle pricing

Determines what customers are willing to pay based on perceived value of the good or service is known as ____-____ pricing � Demand-oriented

_____-____ pricing-expenses are added to desired profit to arrive at price � Cost-plus

_______Involves changing raw materials or putting parts together to make them useful. Zippers, thread and yarn become more useful when put together to create a jacket. � Form Utility

_______ Involves having a product available at a certain time of year or a convenient time of day. Example: 24 hour pharmacy, Extended shopping hours before Christmas � Time Utility

_____ Involves having a product where customers can buy it. Example: Gas station is located right off the exit of 85 � Place Utility

Added value is known as ______ � utility

_____ Involves every time legal ownership of a product changes hands. Example: Accepting payment with credit cards or financing programs � Possession utility

How do the industrial and consumer markets differ? Consumers use the products in the consumer market. Ex: Sam buys marshmallows because she wants to make Rice Krispy treats for her friends Businesses use the products in the industrial market Ex: Gi. Gi’s Cupcakes buys marshmallows to make a Rice Krispy cupcake to sell in their store.

What is market share? � Gaining the biggest percentage of sales within a specific category. � A firm’s percentage of total sales volume generated by all competitors in a given market.

The 4 P’s make up the ______ � Marketing Mix

What are the 4 P’s? � Product � Place � Price � Promotion

A group of people identified as those most likely to become customers or who you want to sell to is known as _______ � Target Market

What is market segmentation? ◦ The process of subdividing the market according to customer needs and characteristics. � Demographics � Geographics � Psychographics � Behavioral

Income, gender, ethnicity, martial status are examples of ______ � demographics

Categorizing customers by values, attitudes, and lifestyles are examples of ______ � psychographics

Categorizing customers based on where they live is known as _______ � Geographic segmentation

The process of developing, promoting, and distributing products is known as _____ � MARKETING

_______ = Businesses exist to satisfy the customers needs and wants with the right goods and services at the right time, at the right price, and the right place. � The marketing concept