Chapter 7- Developing the Right Marketing Mix and Plan

cause-related marketing
marketing inspired by a commitment to a social, environmental, or political cause.
foundation
a not-for-profit organization that manages donated funds, which it distributes through grants to individuals, or to other nonprofit organizations, that help people and social causes.
goodwill
an intangible asset generated when a company does something positive that has value.
logo
short for logotype, a company trademark or sign.
not-for-profit organization
an entity formed with the intention of addressing social or other issues, with any profits going back into the organization to support its mission.
philanthropy
a concern for human and social welfare that is expressed by giving money through charities and foundations.
trademark
any word, name, symbol, or device used by an organization to distinguish its product.
Price is the number one factor influencing consumer purchases.
False
Publicity is expensive.
False
A logo is an identifying symbol for a business or product.
True
The “media” includes newspapers, magazines, radio, and television.
True
Philanthropy is giving money to help better society.
True
Entrepreneurs are rarely philanthropic.
False
Breakeven is the point at which variable costs are recovered by sales, but no profit has yet been made.
False
A trademark is an identifying symbol for a product or business.
True
Which is not one of the four P’s of marketing?
Price
Product
Promotion
Publicity
Place

Answer: Publicity

When companies build a brand they focus on one key:
Feature
Benefit
Product

Answer: Benefit

Cause-related marketing is:
Used to promote causes
Inspired by a commitment to a social, political, or environmental cause
Promoted by foundations

Answer: Inspired by a commitment to a social, political, or environmental cause

A private foundation is required by the federal government to give away ______________________ every year.
10 percent of its profit
5 percent of the fair market value of its assets
Any profit if it wants to have not-for-profit status
5 percent of its profit

Answer: 5 percent of the fair market value of its assets

What is the breakeven point if your fixed costs are $150, variable costs are $100, your COGS are $10, your selling price is $15 and your gross profit is $5?
10
30
15
50

Answer: 30

Marketing is:
Part of your business’s fixed costs
Part of your business’s variable costs
Part of your business’s variable costs if you are marketing just the product
A combination of fixed and variable costs

Answer: Part of your business’s fixed costs

USAIIRD stands for:
Utilities, standards, advertising, insurance, interest, rent, and depreciation
Utilities, SWOT, advertising, insurance, interest, rent, and depreciation
Utilities, supplies, advertising, insurance, interest, rent, and depreciation
Utilities, salaries, advertising, insurance, interest, rent, and depreciation

Answer: Utilities, salaries, advertising, insurance, interest, rent, and depreciation

It is especially important to perform breakeven analysis:
After you open your business and know your fixed costs
After you have completed your marketing plan and before you open your business
Before you write your business plan to know if you should even bother to write your business plan

Answer: After you have completed your marketing plan and before you open your business

Stephen Wozniak started Apple with:
$13,000
$30,000
1300
$3000

Answer: 1300

Promotion is:
A pricing strategy to offer your product at a deal
The use of marketing to get your product known
The use of advertising and publicity to get your marketing message out

Answer: The use of advertising and publicity to get your marketing message out