1 Flashcards
(138 cards)
1
Q
What is the primary goal of promotion?
A
To increase awareness and sales of a product or service.
2
Q
True or False: Personal selling is a method of promotion that involves direct interaction between a salesperson and a customer.
A
True
3
Q
Fill in the blank: __________ is a promotional method that uses social media platforms to engage with customers.
A
Social media marketing
4
Q
Which method of promotion often includes discounts and special offers?
A
Sales promotions
5
Q
What is the purpose of public relations in promotion?
A
To build a positive image and manage public perception of a brand.
6
Q
Multiple Choice: Which of the following is NOT a method of promotion? A) Advertising B) Public Relations C) Inventory Management D) Personal Selling
A
C) Inventory Management
7
Q
What is a key characteristic of direct marketing?
A
It targets specific individuals or groups with personalized messages.
8
Q
True or False: Digital marketing is a modern method of promotion that includes online advertising.
A
True
9
Q
What is the role of advertising in promotion?
A
To communicate information about a product or service to consumers.
10
Q
Fill in the blank: __________ refers to promotional activities that provide customers with free samples or trials.
A
Sampling
11
Q
Multiple Choice: Which method uses influencers to promote products? A) Public Relations B) Affiliate Marketing C) Direct Selling D) Event Marketing
A
B) Affiliate Marketing
12
Q
What is event marketing?
A
Promotional activities that involve hosting or participating in events to engage with consumers.
13
Q
True or False: Sponsorship is a method of promotion that involves supporting events or organizations in exchange for advertising.
A
True
14
Q
What is the difference between push and pull promotion strategies?
A
Push strategies promote products to retailers to encourage them to stock the product, while pull strategies aim to create consumer demand to pull the product through the distribution channel.
15
Q
Fill in the blank: __________ is a promotional tactic that involves offering a customer a reward for referring others.
A
Referral marketing
16
Q
A
17
Q
What is market segmentation?
A
The process of dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.
18
Q
True or False: Market segmentation is only applicable to consumer markets.
A
False
19
Q
Name the four main types of market segmentation.
A
Demographic, geographic, psychographic, and behavioral segmentation.
20
Q
Fill in the blank: __________ segmentation divides the market based on age, gender, income, and education.
A
Demographic
21
Q
Which type of segmentation focuses on the lifestyle and personality traits of consumers?
A
Psychographic segmentation
22
Q
Multiple Choice: Which of the following is NOT a factor in behavioral segmentation? A) Purchase behavior B) Brand loyalty C) Geographic location D) User status
A
C) Geographic location
23
Q
What is the primary goal of market segmentation?
A
To identify and target specific groups of consumers to tailor marketing efforts effectively.
24
Q
True or False: Geographic segmentation can be based on countries, regions, or cities.
A
True
25
What is a key benefit of market segmentation?
It allows companies to better meet the needs of specific customer groups.
26
Fill in the blank: __________ segmentation considers how consumers use a product or service.
Behavioral
27
Which segmentation type would be most relevant for a luxury brand targeting high-income individuals?
Demographic segmentation
28
Multiple Choice: Which segmentation approach considers factors like benefits sought and usage rate? A) Demographic B) Psychographic C) Behavioral D) Geographic
C) Behavioral
29
What is the importance of identifying target segments?
It helps businesses focus their marketing strategies and allocate resources efficiently.
30
True or False: Effective market segmentation can lead to increased customer satisfaction and loyalty.
True
31
Short answer: How can businesses use psychographic segmentation in their marketing strategies?
By tailoring messages and products to align with the values, interests, and lifestyles of specific consumer groups.
32
33
What is cash flow?
Cash flow is the total amount of money being transferred into and out of a business.
34
True or False: Positive cash flow means a business has more money coming in than going out.
True
35
What are the three main components of cash flow?
Operating activities, investing activities, and financing activities.
36
Fill in the blank: Cash inflows include ________ and _________.
sales revenue, investment income
37
What is a cash flow forecast?
A cash flow forecast is a projection of future cash inflows and outflows over a specific period.
38
Multiple Choice: What is a common reason for negative cash flow? A) Increased sales B) High expenses C) Low inventory
B) High expenses
39
What is the purpose of a cash flow statement?
To provide a summary of cash inflows and outflows over a specific period.
40
True or False: Cash flow is the same as profit.
False
41
What does it mean to have a cash reserve?
Having a cash reserve means maintaining a certain amount of cash on hand to cover unexpected expenses.
42
Fill in the blank: A business can improve cash flow by ________ its receivables.
collecting
43
Multiple Choice: Which of the following is NOT a cash flow activity? A) Buying equipment B) Paying salaries C) Writing a marketing plan
C) Writing a marketing plan
44
What is working capital?
Working capital is the difference between current assets and current liabilities.
45
True or False: Seasonal businesses often experience fluctuations in cash flow.
True
46
What is a cash flow gap?
A cash flow gap occurs when cash outflows exceed cash inflows over a period.
47
Fill in the blank: A cash flow statement helps businesses understand their ________ position.
liquidity
48
49
What is the Boston Matrix used for in business?
The Boston Matrix is used for portfolio analysis to assess the performance and potential of a company's products or business units.
50
In the Boston Matrix, what does 'Stars' represent?
'Stars' represent products with high market share in a fast-growing market.
51
True or False: 'Question Marks' are products with low market share in a high-growth market.
True
52
Fill in the blank: 'Dogs' are products with ______ market share in a ______ market.
low; low
53
What are the four categories of the Boston Matrix?
Stars, Question Marks, Cash Cows, and Dogs.
54
Which category in the Boston Matrix typically generates the most cash?
Cash Cows
55
Multiple Choice: Which of the following is NOT a category in the Boston Matrix? A) Stars B) Puzzles C) Cash Cows D) Dogs
B) Puzzles
56
What strategy should a business consider for 'Question Marks' in the Boston Matrix?
Invest and build market share to potentially turn them into Stars.
57
True or False: 'Dogs' should be retained in the product portfolio because they can become profitable.
False
58
What is the primary axis used in the Boston Matrix?
Market growth rate and relative market share.
59
60
What is a sole trader?
A sole trader is a business owned and operated by one individual.
61
True or False: A sole trader has limited liability.
False. A sole trader has unlimited liability.
62
What is a partnership?
A partnership is a business owned by two or more individuals who share profits and responsibilities.
63
Fill in the blank: In a limited company, the owners are known as _______.
shareholders.
64
What does 'limited liability' mean?
Limited liability means that the owners are only liable for the business's debts up to the amount they invested.
65
Which type of business ownership is characterized by shared ownership and pooled resources?
Cooperative.
66
What is the main advantage of being a sole trader?
The main advantage is complete control over the business.
67
Multiple Choice: Which of the following is NOT a type of business ownership? A) Sole Trader B) Partnership C) Corporation D) Franchise
D) Franchise
68
True or False: In a partnership, each partner has unlimited liability.
True.
69
What is the primary legal document required to form a limited company?
Articles of Association.
70
Fill in the blank: A _______ is a business owned by shareholders, managed by directors.
limited company.
71
What is the difference between a private limited company (Ltd) and a public limited company (PLC)?
A private limited company cannot offer shares to the public, while a public limited company can.
72
Which type of business ownership allows for the easiest transfer of ownership?
Corporation.
73
Short Answer: What is a franchise?
A franchise is a business model where one party (the franchisee) pays to use the branding and business model of another party (the franchisor).
74
What is meant by 'unlimited liability'?
Unlimited liability means that the owner's personal assets can be used to pay off business debts.
75
76
What is the definition of pricing strategy?
A pricing strategy is a method used by a business to price its products or services based on market conditions, competition, and customer demand.
77
True or False: Cost-plus pricing involves adding a fixed percentage to the cost of a product.
True
78
What is penetration pricing?
Penetration pricing is a strategy where a product is launched at a low price to attract customers and gain market share quickly.
79
Which pricing strategy is characterized by setting a high price initially and then lowering it over time?
Price skimming
80
Fill in the blank: __________ pricing is based on the perceived value of a product rather than its cost.
Value-based
81
What is dynamic pricing?
Dynamic pricing is a flexible pricing strategy where prices are adjusted in real-time based on demand, competitor pricing, and other market factors.
82
Multiple Choice: Which of the following is NOT a pricing strategy? A) Cost-plus B) Value-based C) Market-share D) Skimming
C) Market-share
83
What does the term 'loss leader' refer to in pricing strategies?
A loss leader is a pricing strategy where a product is sold at a loss to attract customers to the store or website.
84
True or False: Psychological pricing involves setting prices based on consumer perceptions and emotions.
True
85
What is the goal of competitive pricing?
The goal of competitive pricing is to set prices based on what competitors are charging for similar products.
86
Fill in the blank: __________ pricing involves charging different prices for the same product based on customer segments.
Price discrimination
87
What is the primary focus of premium pricing?
The primary focus of premium pricing is to create a perception of exclusivity and high quality by setting higher prices.
88
Multiple Choice: Which pricing strategy is often used for seasonal products? A) Dynamic pricing B) Penetration pricing C) Price skimming D) Markdown pricing
D) Markdown pricing
89
What is the purpose of promotional pricing?
The purpose of promotional pricing is to temporarily reduce prices to increase sales and attract customers.
90
True or False: Bundle pricing involves selling multiple products together at a lower price than if sold separately.
True
91
92
What is business ethics?
Business ethics refers to the principles and standards that guide behavior in the world of business.
93
True or False: Ethical business practices can lead to increased customer loyalty.
True
94
Fill in the blank: The _____ principle states that businesses should act in a way that does not harm the environment.
sustainability
95
Which of the following is NOT a common ethical issue in business: A) Bribery, B) Transparency, C) Insider trading?
B) Transparency
96
What is the primary goal of corporate social responsibility (CSR)?
The primary goal of CSR is to contribute to sustainable economic development while improving the quality of life of the workforce, their families, the local community, and society at large.
97
98
99
100
What is the formula to calculate total revenue?
Total Revenue = Price per Unit × Quantity Sold
101
True or False: Revenue is the total income generated by the sale of goods or services.
True
102
Fill in the blank: The revenue generated from selling 100 units at $20 each is _____ dollars.
2000
103
Which of the following is NOT a component of calculating revenue? A) Price B) Cost C) Quantity Sold
B) Cost
104
What does 'marginal revenue' refer to?
Marginal revenue refers to the additional revenue generated from selling one more unit of a product.
105
106
What is the average rate of return?
The average rate of return is a measure used to evaluate the profitability of an investment, calculated as the mean of the returns over a specified period.
107
True or False: The average rate of return can be negative.
True
108
Fill in the blank: The average rate of return is typically expressed as a ________.
percentage
109
What formula is commonly used to calculate the average rate of return?
Average Rate of Return = (Total Returns / Number of Periods) / Initial Investment
110
Multiple Choice: Which of the following best describes the average rate of return? A) A measure of risk B) A measure of profitability C) A measure of liquidity
B) A measure of profitability
111
What does a higher average rate of return indicate about an investment?
It indicates that the investment has been more profitable compared to others with lower rates.
112
True or False: The average rate of return takes into account the time value of money.
False
113
Fill in the blank: The average rate of return is often used in ________ analysis to compare different investments.
investment
114
What is the average rate of return over a 5-year period with returns of 10%, 12%, 8%, 15%, and 5%?
10%
115
Multiple Choice: Which of the following factors can affect the average rate of return? A) Market conditions B) Investment duration C) Both A and B
C) Both A and B
116
117
What is the primary purpose of business aims?
To provide a long-term direction and overall goals for the business.
118
True or False: Business objectives are more specific than business aims.
True
119
Fill in the blank: Aims are usually _____ term, while objectives are _____ term.
long; short
120
What is an example of a common business aim?
To become the market leader in a specific industry.
121
Multiple Choice: Which of the following is NOT a characteristic of effective objectives? A) Specific B) Measurable C) Vague D) Time-bound
C) Vague
122
What does SMART stand for in the context of setting business objectives?
Specific, Measurable, Achievable, Relevant, Time-bound
123
Short Answer: Why is it important for businesses to set aims and objectives?
They provide a roadmap for decision-making and performance evaluation.
124
True or False: Aims and objectives should not change once they are set.
False
125
What is the difference between strategic aims and operational objectives?
Strategic aims are long-term goals, while operational objectives are short-term, actionable steps to achieve those aims.
126
Fill in the blank: Business aims are often aligned with the _____ of the organization.
mission statement
127
128
What is the primary purpose of market research?
To gather information about consumers' needs and preferences.
129
True or False: Market research is only conducted after a product is launched.
False
130
Fill in the blank: __________ research involves collecting data from potential customers through surveys and interviews.
Primary
131
Which of the following is a method of qualitative research? A) Surveys B) Focus Groups C) Experiments
B) Focus Groups
132
What are the two main types of market research?
Qualitative and Quantitative
133
134
What is a stakeholder in a business context?
A stakeholder is any individual or group that has an interest in the outcome of a business's activities.
135
True or False: Employees are considered stakeholders in a company.
True
136
Fill in the blank: Stakeholders can be classified into two main categories: ______ and ______ stakeholders.
internal, external
137
Which of the following is NOT a type of stakeholder? A) Customers B) Suppliers C) Competitors D) Employees
C) Competitors
138
What is the primary concern of shareholders as stakeholders?
The primary concern of shareholders is the financial performance and profitability of the company.
