Pricing & Promotions

Which function of marketing determines how much gross profit a business will make on a good or service?

• Pricing

• Distribution

• Promotion

• Risk Management

The definition of Promotions is

• the action or business of promoting and selling products or services, including market research and advertising.

• a business activity that encourages the sale of a product or service.

• the practice of making one's living by engaging in commerce.

• a combination of factors that can be controlled by a company to influence consumers to purchase its products.

Businesses often use promotional campaigns to create or improve their

• image.

• credit.

• safety.

• displays.

Robney Corporation, a candy manufacturer, is using advertising and coupons to introduce the "Wacky Bar," a new candy bar. The company is trying to create brand

• recognition.

• quality.

• performance.

• insistence.

During which stage of a product's life cycle is a company likely to use promotional campaigns to emphasize product characteristics in order to create demand:

• Maturity

• Introductory

• Decline

• Growth

Cookie's Palace, a new boutique for children, wanted to attract more customers. The manager planned a puppet show, a new window display, and bought balloons to give to children. This is an example of

• publicity.

• sales promotion.

• advertising.

• personal selling.

Can prices be set too low?

• Yes, customers may feel quality is too high.

• No, the lower the price, the more willing the customer is to buy.

• Yes, customers may feel quality is too low.

• No, the lower the price, the greater the product's appeal.

A Promotional Mix for a new product might include

• Advertising, Direct Marketing and Guerrilla Marketing

• Deciding the Correct Place to sell the product, Setting the Price and Identifying the Target Market

• Budget Considerations and a Contingency Plan

• candy, games and shampoo

Which of the following is an example of variable cost for a business?

• Rent

• Employee wages

• Property taxes

• Fire insurance

A manufacturer buys materials for producing a particular item at a cost of $5.00 per unit and has fixed monthly expenses of $10,000.00 related to this item. The manufacturer sells this particular item to several retailers for $10.00 per unit. How many units must the manufacturer sell per month to reach the break-even point for this item?

• $810

• $1,225

• $2,100

• $2,000