Chapter 10 - Business Essentials

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

• 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

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

• True

• False

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

• True

• False

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

• True

• False

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

• True

• False

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

• True

• False

A(n) ____________ identifies how a company uses marketing to achieve its goals.

A ____________ is a specific group of consumers who have similar wants and needs.

Product

• The cost to the buyer of goods or services

• Informing customers about products and persuading them to buy them

• Where goods or services are available

• Goods or services that are sold