Final with book defititions

Question 1

a dollar amount added to the cost of products to get the selling price

Answer 1

markup

Question 2

the percentage of selling price that is added to the cost to get the selling price

Answer 2

markup percentage

Question 3

the sequence of markups firms use at different levels in a channel - determining the price structure in the whole channel

Answer 3

markup chain

Question 4

the number of times the average inventory is sold in a year

Answer 4

stock turn rate

Question 5

adding a reasonable markup to the average cost of a product

Answer 5

average cost pricing

Question 6

the total cost divided by the related quantity

Answer 6

average cost per unit

Question 7

an approach to determine whether the firm will be able to breakeven - that is, cover all its costs - with a particular price

Answer 7

break even analysis

Question 8

the change in total revenue that results from producing one more product

Answer 8

marginal revenue

Question 9

the change in total cost that results from producing one more product

Answer 9

marginal cost

Question 10

profit on the last unit sold

Answer 10

marginal profit

Question 11

setting prices for a whole line of products

Answer 11

full line pricing

Question 12

all costs are allocated to products, customers, or other categories

Answer 12

full cost approach

Question 13

setting one price for a set of products

Answer 13

product bundling

Question 14

setting prices on several related products as a group

Answer 14

complementary product

Question 15

a seller who sets a price that all others in the industry follow

Answer 15

price leader

Question 16

setting a few price levels for a product line and then marking all items at these prices

Answer 16

price lining

Question 17

setting prices that have special appeal to target customers

Answer 17

psychological pricing

Question 18

setting a rather high price to suggest high quality or high status

Answer 18

prestige price

Question 19

trying to sell the whole market at one low price

Answer 19

penetration pricing policy

Question 20

trying to sell the top of the market - the top of the demand curve - at a high price before aiming at more price-sensitive customers

Answer 20

skimming price policy

Question 21

setting prices that end in certain numbers

Answer 21

odd-even

Question 22

putting marketing plans into operation

Answer 22

implementation

Question 23

What are the implementation tools?

Answer 23

1. TQM
2. Continuous Improvement
3. Pareto Chart
4. Fishbone Diagram
5. Training
6. Empowerment
7. Benchmarking

Question 24

the philosophy that everyone in the organization is concerned about quality, throughout all of the firm’s activities, to better serve the customer needs

Answer 24

TQM

Question 25

a commitment to constantly make things better one step at a time

Answer 25

Continuous improvement

Question 26

a graph that shows the number of times a problem cause occurs, with problem causes ordered from most frequent to least frequent

Answer 26

pareto chart

Question 27

a visual aid that helps organize cause and effect relationships for "things gone wrong"

Answer 27

Fishbone diagram

Question 28

giving employees the authority to correct a problem without first checking with management

Answer 28

Empowerment

Question 29

What are the tools for control?

Answer 29

1. Sales analysis 2. Performance Analysis 3. Performance Index 4. Iceberg Principle 5. Full Cost Approach 6. Contribution Margin 7. Market Audit

Question 30

A detailed breakdown of a companies sales records

Answer 30

sales analysis

Question 31

analysis that looks for exceptions or variations from planned performance

Answer 31

performance analysis

Question 32

a number that shows the relation of one value to another

Answer 32

performance index

Question 33

much good information is hidden in summary data

Answer 33

iceberg principle

Question 34

a cost analysis in which all costs are not allocated in all situations

Answer 34

contribution margin

Question 35

a systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function and of the organization, methods, procedures, and people employed to implement the policies

Answer 35

market audit

Question 36

the money invested in a firm

Answer 36

capital

Question 37

money to pay for short-term expenses such as employee salaries, advertising, marketing research, inventory storing costs, and what the firm owes suppliers

Answer 37

working capital

Question 38

borrowing money based on a promise to repay the loan, usually within a fixed time period and with a specific interest charge

Answer 38

debt financing

Question 39

a financial report that forecasts how much cash will be available after paying expenses

Answer 39

cash flow statement

Question 40

the ability to produce a certain quantity and quality of specific goods or services

Answer 40

production capacity

Question 41

tailoring the principles of mass production to meet the unique needs of individual customers

Answer 41

mass customization

Question 42

the categories to which various costs are charges in the normal financial accounting cycle

Answer 42

natural accounts

Question 43

the categories to which various costs are charged to show the purpose for which expenditures are made

Answer 43

functional accounts

Question 44

what a whole market segment might buy

Answer 44

market potential

Question 45

an estimate of how much an industry or firm hopes to sell to a market segment

Answer 45

sales forecast

Question 46

an approach to forecast sales by finding relation between the companies sales and some other factor

Answer 46

factor method

Question 47

forecasting by combining the opinions of experienced executives, perhaps from marketing, production, finance, purchasing, and top management

Answer 47

jury of executive opinions

Question 48

extends past experience to predict the future

Answer 48

trend extension