Principles of Business Chapter 10.1

Which of the following is a rational motive for buying a car?

• Among the cars you are considering, this is the only that comes in your favorite color.

• The model is popular with your friends.

• The car can go further on a gallon of gas than other cars you are considering.

• You feel strongly that you should buy a car that is made in America.

__________ is the amount added to the cost of a product to set the selling price.

• Profit

• Revenue

• Commission

• Markup

The four elements of a marketing mix are ________.

• product, distribution (place), price, and promotion

• product, price strategy, and promotion

• promotion, distribution (place), targeting, and product

• price, promotion, strategy, and targeting

A business must plan each of its products to make sure it meets the needs of the target market better than similar products offered by competitors.

• True

• False

If a firm spends $3.00 to produce a product, has operating expenses of $1.00 per product, and increases the price of the product by 25 percent of its cost to earn a profit, the price of the product will be __________.

• $5.25

• $5.00

• $4.00

• $6.50

Marketing functions include each of the following except ____________.

• product and service management

• quality control

• distribution

• financial analysis

A target market is defined as a specific group of consumers who _____________.

• belong to a specific racial or ethnic group

• have similar incomes

• live in a specific geographic region

• have similar wants and needs

The words "promotion" and "advertising" have the same meaning.

• True

• False

The most common advertising media include social media, television, radio, newspapers, magazines, & direct mail.

• True

• False

If the demand for a product grows while its supply remains unchanged, you should expect its price to fall.

• True

• False