Business 210 Exam 3

A marketing strategy consists of the selection and analysis of a target market and
the creation and maintenance of an appropriate marketing mix.
A market is a group of individuals and/or organizations that have needs for products in a given category and have the ability, willingness, and ___________ to purchase such products.
authority
The utility created by converting production inputs into finished products is called __________ utility.
form
The process of systematically gathering, recording, and analyzing data concerning a particular marketing problem is called
marketing research.
A computer-based system for continually gathering internal and external information is called
a marketing information system
The amount of a product an organization expects to sell during a certain period of time, based on a specified level of marketing effort, is called a
sales forecast.
The effects of economic conditions on consumers’ ability and willingness to buy would best be called _________ forces.
economic
The organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders is
marketing.
To implement the marketing concept, a firm must first
obtain information about its customers’ needs.
Marketing managers are better able to predict consumer responses to marketing strategies and to develop a satisfying marketing mix if they are aware of the factors that
affect buying behavior.
The first stage of the product life-cycle is the _______ stage.
introduction
The amount of money that a seller is willing to accept in exchange for a product, at a given time and under given circumstances, is called the
price
Multiple-unit packaging does not work well for
infrequently used products.
Price competition occurs when a seller emphasizes the
low price of a product.
A discount from the list, or retail, price offered to intermediaries is a(n) _______discount.
trade
The strategy of charging the highest possible price for a product during the introduction stage of its life-cycle is known as
price skimming.
The number of units that must be sold for the total revenue to equal the total cost is called the ________ quantity.
breakeven
Bread, gasoline, and ___________ are examples of convenience products
newspapers
In cost-based pricing, a producer adds an amount to the total production cost to provide a profit. The amount added to the production cost is called a
markup.
When a company changes one or more of a product’s characteristics to manage its product mix, it is engaging in

_____________ modification.

product
Selective-demand advertising aimed at persuading consumers to make purchases within a short time is called advertising.
immediate-response
The most expensive but most adaptable method of the promotion mix is ________ .
personal selling
Jessica decides to order smaller amounts of inventory at a time for her arts and crafts store. She is obviously concerned about _______ costs
holding
Information about a company, its employees, or its products that is published or broadcast in the mass media free of charge is called _________ .
publicity
As John walked down the aisle of a supermarket one Saturday, he encountered a lady at the end handing out bite- sized portions of a new brand of sausage. This lady is trying to accomplish what?
Encourage trial purchases of the product.
Products such as very expensive wristwatches are distributed using ________ distribution.
exclusive
A middleman that purchases goods in large quantities and then sells them to retailers is called a ______ .
merchant wholesaler
T J Maxx, Burlington Coat Factory, and Marshalls are examples of
off-prices stores.
The use of only a portion or percentage of the available outlets in each geographic area for market exposure is called ________ distribution.
selective
A sales agent provides all of the following advantages except

immediate entry into a territory

selling experience

a predetermined selling expense

warehouse

regular calls on customers

a warehouse
Which of the following statements is true?

The more information a manager has, the more risk there is when making a decision.

The more information a manager has, the less risk there is when making a decision.

Risk improves decision making.

Most managers make decisions without any information.

When the amount of information is low, there is less risk.

The more information a manager has, the less risk there is when making a decision.
A public corporation must change its lead auditing firm
every five years.
A(n)_______ is a summary of a firm’s revenues and expenses during a specified accounting period, such as a year.
income statement
An airplane that FedEx owns and uses to deliver packages is a(n) ______of FedEx.
asset
The purpose of ___________ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.
a management information system
Commonly used in accounting analysis, a _______ shows a relationship between two elements of a firm’s financial statements.
financial ratio
Revenues − cost of goods sold − expenses = net income characterizes which financial statement?
Income statement
All of the following are acceptable ways of stating the accounting equation except

owners’ equity = assets − liabilities.

assets = liabilities + owners’ equity.

owners’ equity − liabilities = assets.

assets − liabilities = owners’ equity.

assets = shareholders’ equity + liabilities.

owners’ equity − liabilities = assets.
A prepaid expense would be classified as
an asset.
The financial statement that provides information about a firm’s operating, investing, and financing activities during an accounting period is the
cash flows statement.
An approach to collecting marketing information for specific marketing projects is called
marketing research
The ingredient of the marketing mix concerned with providing product information to the target market is
promotion.
__ markets consist of churches, not-for-profit private schools and hospitals, civic clubs, fraternities and sororities, and charitable organizations and foundations
Institutional
Which of the following is not one of the steps in implementing the marketing concept?

Obtaining information about existing and potential customers

Pinpointing needs and potential needs of customers for further marketing activities

Mobilizing marketing resources to provide, promote, and distribute products

Obtaining new information about effectiveness of efforts

All are steps of the marketing concept.
A group of similar products that differ only in relatively minor characteristics is called a
product line.
Which one of the following is NOT a product life cycle?
Design thinking
All of the following are services that wholesalers offer to manufacturers except

providing an instant sales force.

assuming credit risks.

furnishing market information.

reducing inventory costs.

providing loans.

providing loans.
The use of only a single retail outlet in each geographic are for distribution purposes is called ___ distribution.
exclusive
The four major ingredients in the promotion mix are advertising, personal selling, public relations, and
a
sales promotion.
Revenues – cost of goods sold – expenses =
net income before taxes.
Beginning Inventory + net purchases -ending inventory =
cost of goods sold.
Cash, Inventory, and equipment are listed as on a firm’s balance sheet.
assets
How does a larger amount of information tend to affect decision risk?
Lower Risk
Financial managers should
establish a means of monitoring financial performance on an interim basis
Borrowed money that will be used for more than one year is called
long-term financing.
Which of the following statements is true?

Financial leverage should not be considered when a firm borrows money.

Under the right circumstances, the use of borrowed money can improve a firm’s return on owners’ equity.

There is no good reason for a firm to borrow money when it has cash to finance expansion.

The use of borrowed money always reduces a firm’s return on owners’ equity.

Return on owners’ equity is not an important financial calculation.

Under the right circumstances, the use of borrowed money can improve a firm’s return on owners’ equity.
Retained earnings are
a form of equity financing.
All of the activities concerned with obtaining money and using it effectively are called
financial management
The assets most commonly used as collateral for short-term financing include
accounts receivable and inventory.
For a corporation, equity capital is obtained from
stockholders.
The most popular form of short-term financing is
trade credit.
A statement that projects income and/or expenditures over a specified future period is called a
budget.
The primary sources of funds available to a business include all of the following except

debt capital.

sales of assets.

government grants.

sales revenue.

equity capital.

government grants
The most popular and inexpensive form of short-term financing is
trade credit