Principles of Business 9e Chapter 10

All businesses must complete some marketing activities even if that is not their focus.

• True

• False

A target market is a group of consumers that have similar wants and needs.

• True

• False

Effective marketing begins with a good product.

• True

• False

Finding solutions to problems through carefully designed studies involving consumers is called marketing research.

• True

• False

Product packaging is the least important part of product planning because consumers simply throw away the packaging before using the product.

• True

• False

The first step in new product planning is to develop a full marketing strategy.

• True

• False

Highly complex and technical products generally have higher prices than simple products.

• True

• False

A markup should be thought of as a pricing mistake because it reduces the amount of money the business has to cover operating expenses and profits.

• True

• False

A farmer selling at a roadside stand tomatoes she grew in her own garden is an example of a direct channel of distribution.

• True

• False

Advertising is any form of communication used to inform, persuade, or remind.

• True

• False