Marketing Principles

Final Review

Betty Croker Brownies use

Hersheys 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 companys
product line is called?

brand extension

Hershey uses its name to

expand its brand by making
the Hersheys 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

McDonalds 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)

McDonalds, 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, mail, 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 teachers
gradebook
Smoking cigarette ads targeting children

Believing that the companys 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: GiGis 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 firms percentage of total sales volume
generated by all competitors in a given
market.

The 4 Ps make up the

_________ ______

Marketing Mix

What are the 4 Ps?

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

Which government group

requires nutrition info, health
warnings, and monitors
genetically modified foods?

FDA

Which economic utility

increased when fast food
restaurants began
accepting credit cards?

Possession utility