Business Ownership and Marketing

FBLA Study Set #1

Products are exchanged

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at central markets.

The accounting and finance function includes

developing budgets

Businesses that do not use the marketing concept are more concerned about

producing products

A marketing mix is the blending of which marketing elements?

product, price, distribution, and promotion

Marketing causes

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lower costs, more products, and higher sales volume.

What event triggered the growth of consumerism?

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the presentation of the Consumer Bill of Rights

Who works with national and state legislators to develop laws to protect consumer rights?

consumer lobbyists

Consumers who are dissatisfied with the actions or products of a business can organize

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a boycott.

Effective marketing relies on the principles and concepts of

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economics.

The practice of using databases to make marketing decisions is known as

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database marketing.

Unlimited wants and needs, combined with limited resources, result in

scarcity

In which type of economic system does the government attempt to own and control important resources and to make the decisions about what will be produced and consumed?

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controlled economy

The quantity of a product consumers are willing and able to purchase at a specific price is known as

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demand.

All of the consumers who will purchase a particular product or service comprise a(n)

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economic market.

What type of market condition exists when there are a large number of suppliers offering very similar products?

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pure competition

Changes in the tangible parts of a product or service affect a product’s

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form utility.

The earliest use of marketing was

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to move products from the producer to the consumer.

Planning that identifies how a company expects to achieve its goals is known as

a strategy.

When an unauthorized business imports products into a country and creates a parallel distribution channel that competes with the authorized channel, this is known as

gray marketing.

The most difficult type of competition businesses face is a market in which they compete with other businesses offering

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similar products.

What is the first stage in the consumer decision-making process?

recognizing a need

Information developed from activities that occurred within your organization is known as

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internal information.

For managers and other decision-makers, the most important part of a marketing information system is the

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output.

Maslow's hierarchy of needs includes

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esteem.

Reasons to purchase based on feelings, beliefs, or attitudes are known as

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emotional motives.

A well-defined, enduring pattern of behavior is referred to as

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personality.

The lifestyle, values, and beliefs that are common to a group of people are known as

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social class.

The concept that people who live in the same physical location might have the same wants and needs is referred to as

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geographic segmentation.

Demographic characteristics include

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income.

Competition in the market segment with businesses that offer the same type of product or services is referred to as

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direct competition.

A business gains information about its competitor’s strategy in order to

better serve its target market.

Consumer advocates often object when companies reduce the size of a package and keep the same price because

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the price increase is not obvious.

The limitation of the information stage is that customers cannot use the web site to

make a purchase.

Today, a business will miss some customers if it has not placed information on the Internet about its

location.

In the next five years, businesses that want to operate on the Web will need to

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hire personnel with skill in technology.

Companies develop e-mail lists for advertising by

using addresses of current customers, using addresses of consumers who have sent inquiries, and purchasing e-mail lists from other companies.

A component of the marketing mix that provides protection and security for the product until the consumer can use it is

packaging.

A unique, memorable quality of a brand is its

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image.

Changes outside the company that affect the potential success of a product include

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development of new technology.

The success rate for new products is

50 percent.

New products are often expensive because

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the cost of development is passed on to consumers.

Marketing is a direct link between a business and its

customers.

An enhancement to a basic product could be

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a different color, packaging, and a brand name.

Small or expensive items are often packaged in large containers to reduce the chance of

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theft.

The service industry showing the most projected growth is

computer and data processing services.

Because people cannot see or handle a service, it is important for the marketer to focus on the

benefits customers will receive.

Services are provided by a variety of organizations and businesses such as

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hospitals, movie theaters, and amusement parks.

A marketing mix that is designed to reach business customers might stress

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a quantity price discount.

The goals of a not-for-profit organization that delivers services may be

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public service, public awareness of a message or idea, and knowledge.

Service performance standards should be set by

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the company.

The types and quantities of products and services demanded by a business are based on

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the level of demand of its customers.

When a business purchase is technical or very expensive,

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a lawyer will be involved in the transaction, an engineer may test the product, and upper management will participate in the purchasing process.

Bar codes are used to identify products because

they are inexpensive.

If the producer does not want to perform all of the marketing functions, some functions may be performed by

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the consumer, another individual, and another business.

An indirect channel of distribution is most often selected when

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there are a large number of consumers.

The traditional indirect channel of distribution involves a

producer, a retailer, and the final consumers.

Some retailers refuse to work with wholesalers because they believe

they can get better service and prices if they deal directly with manufacturers.

The final business organization in an indirect channel of distribution for consumer products is

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the retailer.

Retailers provide services to their customers such as

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alterations, repairs, and delivery.

Companies using a sales-based objective will sell their products

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to markets with a large number of available customers.

The quantity where total costs equal total revenue is the

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break-even point.

A flexible pricing policy means that

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customers can negotiate the price within a price range.

The government can influence prices by

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regulating competition, taxation, and regulating prices.

The distinct categories within which products are organized based on differences in price, quality, and features, are

price lines.

The major advantage of publicity is the

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goodwill it can create.

Sales promotions

generate immediate, short-term sales.

Over the last few decades, the leading advertising media have been

television and newspaper.

Based on the target market, advertising can be customized by

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changing the words.

Small and local businesses may be eliminated from many types of mass media advertising because of

lack of money to produce advertising.

A drawback to using the percentage of sales approach to determine an advertising budget is

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advertising varies directly with sales.

The drawback of setting an advertising budget based on your competitor's activities is

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your competitor may have different advertising objectives, your competitor may have different resources, and it is difficult to determine the competitor's budget until after the fact.v

The sale of products and services to people in other countries is known as

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international trade.

Often, business might decide not to enter the international market because

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the process appears to be complicated and difficult.

Multinational companies hire employees, including managers, from

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the main country where they operate, countries where they hope to do business, and all countries where they operate.

In a preindustrial country it is difficult to

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produce products, sell products, and distribute products.

Money provided to a business to assist in the development and sale of its products is

a subsidy.

To be an insurable risk, the risk must be

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faced by a large number of people.

When selecting from among several target markets, a company reduces its risks if

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it selects markets that can be clearly identified.

Employee training in safety and security should include

how to recognize problems, company policies, and how to prevent accidents and injuries.

Liability insurance pays for

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damage caused to other people or their property.

A business can reduce risks associated with marketing by

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planning carefully, identifying possible risks that can cause problems for the business, and selecting and training qualified marketing personnel.

When a company has choices of marketing mixes, the company tries to fashion a mix that

emphasizes its strengths.

Sales forecasts predict

the quantity of sales.

To determine the changes that occur from one period of operations to the next, a marketing manager can study

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inventory levels, financial performance, and sales.

Most of the revenue a business receives is the result of

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the sale of its primary products and services.

Expenses associated with the marketing mix include the cost of

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packaging, storage, and offering credit.

What document must an entrepreneur prepare for review by potential investors in his or her business venture?

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business plan

Which is true about the role of small businesses in the United States?

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They make up over 90% of all businesses, They employ nearly 40% of workers in high-tech occupations, and They provide about 75% of the all-new jobs.

Which of the following is *not* a skill that most successful entrepreneurs possess?

construction

Advertising agencies and public relations firms are often involved in which of the seven marketing functions?

promotion

Which marketing function would a trucking company or storage center business be involved in?

distribution

Which of the following is defined as a business owned by people who purchase stock in the company?

corporation

Which of the following terms refers to the response rate for Internet advertisements?

click-through

Which part of a marketing plan focuses on a company’s own strengths and weaknesses?

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internal analysis

Which of the following is *not* a common way to organize marketing functions?

color

Which of the following is generally *not* one of the benefits of a career in marketing?

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three-month summer vacations

Which of the following organizations is devoted primarily to carrying out marketing activities?

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advertising agency

A career plan identifies which of the following?

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a progression of jobs, required education, training, and experience, and a tentative time schedule

The last thing you should do to complete a successful job interview is

The last thing you should do to complete a successful job interview is

A retail buyer typically requires skills in which of the following marketing functions?

pricing