SHORT QUIZ

is the total amount that a company gets based on quantity sold multiplied by selling price.

is the total income / profit that the company keeps after all the expenses have been paid for. Simply put: sales minus expense equals revenue.

are costs incurred due to the operations of the business; they do not fluctuate with the volume of sales.

is the level of income that is desired by the company. This usually comes out in percentage form as the amount of mark-up placed on top of the fixed and variable cost of a product.

 

are costs that vary based on volume or quantity. Bigger quantities of the same order will cost less than smaller quantities of the same specifications. This concept is commonly known as economies of scale.

A company may be experiencing a deep crisis in which the most basic reason for its marketing efforts is merely to survive. The crisis may be a recession, an economic crisis, or stiff competition.

Some companies seek to use marketing for short-term financial gains. Gains such as current profit maximization, improved cash flows, and swift return on investment are mostly for short-term financial gains.

 

Some companies build marketing strategies that will help the company gain a huge market share and become a market leader in its product category. This objective seeks to enjoy low costs because of high volume which will eventually lead to long-term gains.

Establishing a positive brand image leads to high awareness and perception of quality.

 

Some companies want their brands to be associated with high quality. Marketing strategies seek to make some brands known as the best service providers in their category since consumers are willing to pay more for good quality.