Marketing and Management Strategies Quiz

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Questions and Answers

What is mark-up pricing primarily based on?

Adding a fixed profit margin to cost (correct)

Variable costs alone

Calculating total fixed costs only

Market demand fluctuations

How does price discrimination function?

Charging the same price to all customers

Charging different prices to different customer groups (correct)

Offering discounts to loyal customers only

Setting prices based solely on production cost

Which pricing strategy is characterized by setting a low initial price to gain market share?

Market Skimming

Penetration Pricing (correct)

Competitive Pricing

Dynamic Pricing

What does the term 'digital distribution' refer to?

Delivering media content over the internet Signup and view all the answers

What is the primary goal of promotion in marketing?

To inform and persuade consumers to buy Signup and view all the answers

Which pricing method involves adjusting prices based on demand and consumer willingness to pay?

Dynamic Pricing Signup and view all the answers

What does psychological pricing align with?

Customer's perceived value of a product Signup and view all the answers

What is the role of integrated marketing mix?

To ensure marketing strategies align for clarity Signup and view all the answers

What characterizes paternalistic management?

Assumes the manager knows what is best for the organization. Signup and view all the answers

Which management style places most business decisions in the hands of the workforce?

Laissez-Faire Management Signup and view all the answers

What does Theory Y suggest about employees?

Employees are self-motivated and enjoy their work. Signup and view all the answers

Which of the following is NOT part of the marketing mix?

Profit Signup and view all the answers

What type of data is referred to as qualitative data?

Non-numerical data providing insight into consumer behavior. Signup and view all the answers

Primary research involves what type of data collection?

Collecting original, first-hand data directly related to the business's needs. Signup and view all the answers

Intangible attributes of a product typically relate to which of the following?

Qualities that fulfill customer needs but cannot be physically touched. Signup and view all the answers

Secondary research utilizes which of the following?

Data that was collected for a different purpose. Signup and view all the answers

What is the primary goal of a pressure group?

To achieve specific policy changes in society Signup and view all the answers

What do SMART objectives stand for?

Specific, Measurable, Achievable, Realistic, Time-limited Signup and view all the answers

Which of the following best describes management?

The coordination and organization of activities to achieve defined goals Signup and view all the answers

What is an ethical code in a business?

A set of guidelines on employee behavior Signup and view all the answers

What is the role of a manager in a business?

To set goals, organize resources, and motivate workers Signup and view all the answers

How is a tactic related to a business strategy?

It is a short-term action that supports the overall strategy Signup and view all the answers

What does the stakeholder concept emphasize?

The responsibilities of businesses to various groups, not just shareholders Signup and view all the answers

What distinguishes an autocratic management style?

Decisions made solely by one manager with little to no input Signup and view all the answers

What is a multinational business (MNC)?

A business firm with its head office in one country but operating in others. Signup and view all the answers

Which of the following best describes an intrapreneur?

An employee who turns innovative ideas into profitable ventures. Signup and view all the answers

What does a business plan typically include?

Financial forecasts, objectives, and market strategies. Signup and view all the answers

Who are considered external stakeholders?

Groups or individuals affected by the business but not involved with it. Signup and view all the answers

What is the purpose of corporate social responsibility (CSR)?

To engage in social and environmental accountability. Signup and view all the answers

What defines a business objective?

A specific, measurable target stated in the business plan. Signup and view all the answers

What does mass customisation in production primarily involve?

Utilizing technology for personalized production Signup and view all the answers

What term describes the scenario when a company produces below its maximum capacity?

Excess capacity Signup and view all the answers

Who are internal stakeholders?

Individuals or groups that own or work within the business. Signup and view all the answers

Which of the following best defines 'business process outsourcing' (BPO)?

Using external contractors to manage specific business functions Signup and view all the answers

What role does a trade union primarily serve?

Advocating for the rights and interests of workers. Signup and view all the answers

What does the closing cash balance represent?

The amount a business has at the end of a given period Signup and view all the answers

What happens during rationalisation in a business?

Reducing capacity by shutting down production units Signup and view all the answers

How is capacity utilization calculated?

Current output levels divided by maximum capacity Signup and view all the answers

What is defined as bad debt in a business context?

Unpaid bills that are unlikely to be collected Signup and view all the answers

What does a cash flow forecast show?

An estimation of future cash inflows and outflows Signup and view all the answers

What best describes overtrading?

Expanding too rapidly without sufficient finance. Signup and view all the answers

Which of the following describes a cost centre?

A department that incurs costs without generating revenue. Signup and view all the answers

What is the purpose of variance analysis?

To compare actual results to budgeted figures. Signup and view all the answers

What type of costs remain unchanged regardless of output levels?

Fixed costs. Signup and view all the answers

What does zero budgeting require?

Justifying every expense before allocation. Signup and view all the answers

Which of the following best defines average cost?

The total cost divided by total output. Signup and view all the answers

What is flexible budgeting primarily used for?

Adjusting costs based on changes in sales or output levels. Signup and view all the answers

What does the term ‘contribution per unit’ refer to?

Price of a product minus its variable costs. Signup and view all the answers

What is the significance of capacity utilization in a business context?

It measures the extent to which a business is using its resources effectively. Signup and view all the answers

What does a cash flow forecast typically analyze?

The expected inflows and outflows of cash in future periods. Signup and view all the answers

Which term describes a strategy of producing below maximum capacity?

Underutilization Signup and view all the answers

What is the primary focus of corporate social responsibility (CSR) in a business?

Providing ethical and sustainable practices in operations. Signup and view all the answers

Which of the following best defines the purpose of variance analysis?

To assess the differences between planned and actual performance. Signup and view all the answers

Study Notes

Definitions

Consumer goods: Tangible goods sold to the public, including durable (cars) and non-durable (food) items.
Consumer services: Intangible products sold to the public, like accommodations, insurance, or travel.
Consumer: Individual purchasing goods/services for personal use.
Customer: Individual, group, or organization purchasing from a business.
Factor of production: Resources required for producing goods/services.
Capital goods: Physical goods used to produce other goods/services (machines, vehicles).
Adding value: Increasing the difference between the cost of input materials and the selling price of the finished product.
Added value: The difference between the cost of input materials and the selling price of the finished product.
Opportunity cost: The value of the next best alternative foregone.
Entrepreneur: Individual taking financial risk of starting/managing a venture.
Enterprise: Initiative to take risk in starting a business.
Branding: Distinguishing a product through symbols, names, or trademarks.
Multinational Business (MNC): A business with a head office in one country and operations in others.
Intrapreneur: Employee responsible for turning an innovative idea into a profitable business venture.
Business Plan: Document outlining a business, its objectives, strategies, financial forecast, and target market.

Business Structure

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Size of Business

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Business Objectives

Business Objectives: Measurable targets for a business, written in its business plan.
Corporate Social Responsibility (CSR): Businesses considering societal impact and accountability for decisions.
Pressure Group: Individuals/organizations with common interests pressuring on businesses/goverments.
SMART Objectives: Specific, Measurable, Achievable, Realistic, and Time-bound objectives.
Annual (Company) Report: Document detailing a business's activities and finances during a year.
Business Strategy: Long-term plan of action for achieving objectives.
Tactic: Short-term action plan within a wider strategy.
Target: Short-term objective.
Ethical Code: Rules and guidelines on employee behaviour.

Stakeholders in a Business

Stakeholders: Individuals/groups affected by/interested in a business's actions.
External Stakeholders: Individuals/groups external to the business, yet impacted by its operations.
Internal Stakeholders: Individuals/groups working within or owning the business.
Trade Union: Organizations representing workers, aiming to improve their pay and working conditions.
Stakeholder Concept: Multi-faceted approach to business responsibility, beyond only shareholders. Stakeholder Theory.

Human Resource Management (HRM)

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Motivation

Manager: Responsible for setting goals, organizing resources, and motivating staff.
Management: Coordinating efforts to accomplish business goals.
Autocratic Management: Manager-centric decision-making with limited employee input.
Paternalistic Management: Manager acts as a parent figure, making decisions for employees.
Laissez-Faire Management: Manager-less decision-making, delegating to the workforce.
Democratic Management: Collaborative decision-making, involving employees.
Theory X: Assumes employees are lazy and unmotivated, needing constant supervision.
Theory Y: Assumes employees are motivated and self-directed, enjoying work

Management

This section is missing from the provided text.

Nature of Marketing

Marketing Mix: The four key decisions (product, price, promotion, place) for effective marketing.
Product: Goods or services that satisfy customer needs.
Goods: Tangible Items, i.e. cars, soap.
Services: Non-physical products, e.g. teaching, banking.
Brand: Unique identifier to differentiate products from competitors.
Intangible attributes: Qualities harder to measure and based on consumer opinion.
Tangible attributes: Measurable product features for comparison with competitors.
Unique selling point (USP): A distinctive feature setting a product apart from competitors.
Product differentiation: Unique aspects of a product.
Product positioning: Consumers' perception of a product compared to competitors.
Product Portfolio Analysis: Reviewing a company's product range for resource distribution.
Product Lifecycle: Stages a product goes through from introduction to withdrawal.
Consumer durable: Long-lasting product for repeated use.
Extension Strategy: Plan to extend the maturity phase of a product.
Boston Matrix: Tool to analyze a company's product range based on market share and growth.

Market Research

Market Research: Gathering, recording, and analyzing information about customers, competitors, and markets.
Primary Research: Collecting original, first-hand data.
Secondary Research: Utilizing existing data.
Qualitative Data: Non-numerical data providing insights into motivations and behaviours.
Quantitative Data: Numerical data for statistical analysis.
Sampling: Selecting a subset of respondents from a larger population.
Sample: Selected group representing the larger target market.
Sampling bias: Sample not accurately representing the entire population.
Arithmetic Mean: The average value.
Mode: Most frequent value.
Median: Middle value.
Range: Difference between highest and lowest values.
Coding: Categorizing qualitative data to identify patterns.

Marketing Mix - Product

Marketing Mix: The four key decisions (product, price, promotion, place).
Product: Goods or services created for customer need satisfaction.
Goods: Tangible Items, i.e. cars, soap.
Services: Non-physical products, e.g. teaching, banking.
Brand: Unique identifier to differentiate products from competitors.
Intangible Attributes: Qualities harder to measure and based on consumer opinion.
Tangible Attributes: Measurable product features for comparison with competitors.
Unique Selling Point (USP): A distinctive feature setting a product apart from competitors.
Product Differentiation: Unique aspects of a product.
Product Positioning: Consumers' perception of a product compared to competitors.
Product Portfolio Analysis: Reviewing a company's product range for resource distribution.
Product Lifecycle: Stages a product goes through from introduction to withdrawal.
Consumer durable: Long-lasting product for repeated use.
Extension Strategy: Plan to extend the maturity phase of a product.
Boston Matrix: Tool to analyze a company's product range based on market share and growth.

Marketing Mix - Price

Marketing Mix - Promotion

Promotion: Methods to inform/persuade consumers about a product.
Advertising: Paid communication through various platforms (TV, newspapers).
Direct Promotion: Promotional efforts directly targeting consumers.
Sales Promotion: Short-term incentives to increase sales.
Promotion Mix: Combination of promotional strategies for a business.
Digital Promotion: Marketing through online channels.
E-commerce: Online buying/selling

Inventory Management

Inventory: Goods/materials held by a business for production and customer demand.
Inventory Management: Process of managing inventory ordering, storage, and usage.
Economic Order Quantity (EOQ): Optimal order quantity for balancing costs.
Buffer Inventory: Minimum stock to prevent production halt.
Re-order Quantity: The quantity of items ordered each time.
Lead Time: Duration between placing an order and receiving it.
Re-order Level: Inventory point triggering a new order.
Supply Chain: System of businesses for product production and distribution.
Supply Chain Management: Managing the entire supply chain process.
Just-in-Time (JIT) Inventory Management: Minimizing inventory by receiving supplies only when needed.
Just-in-Case (JIC) Inventory Management: Maintaining higher levels of buffer inventory.

Capacity Utilisation and Outsourcing

Maximum (Full) Capacity: Highest consistent output level.
Capacity Utilization: Percentage of maximum capacity used.
Outsourcing: Hiring another business to handle part of the production process.
Excess Capacity: Output lower than full production capacity.
Rationalisation: Reducing capacity by shutting down factories or production units.
Capacity Shortage: Demand exceeding production capacity.
Business Process Outsourcing (BPO): Outsourcing specific business functions like HR or finance.

Business Finances

Cash Flow: Net balance of cash in/out of a business.
Insolvent: Inability to meet short-term debts.
Cash Flow Forecast: Estimation of future cash inflows/outflows.
Cash Inflow: Money received.
Cash Outflow: Money spent.
Net Cash Flow: Difference between cash inflows and outflows.
Opening Cash Balance: Beginning period cash amount.
Closing Cash Balance: End-of-period cash amount.
Credit Control: Monitoring customer debt payments.
Bad Debt: Unpaid bills unlikely to be recovered.
Overtrading: Rapid expansion without sufficient funds leading to cash flow problems.

Cost

Cost Centre: Department incurring costs without generating revenue.
Direct Costs: Costs directly associated with production.
Indirect Costs: Costs not directly linked to a specific production unit.
Fixed Costs: Costs unaffected by output levels.
Variable Costs: Costs linked to output levels.
Total Cost: Sum of fixed and variable costs.
Profit Centre: Division generating both revenue and incurring costs.
Average Cost: Total cost divided by the number of units produced.
Full Costing: Attributing all costs to products/divisions.
Contribution Per Unit: Price less variable costs.
Break-even Point: Output where total revenue equals total costs.
Break-even Analysis: Process to calculate break-even point using data on costs and revenue.
Margin of Safety: Difference between actual output and the break-even output level.

Budgeting

Budgeting: Planning future financial activities.
Budget Holder: Person managing a budget.
Variance Analysis: Comparing actual results to budgeted figures.
Delegated Budgets: Budgets assigned to lower-level managers.
Incremental Budgeting: Using the previous year’s budget as a starting point.
Zero Budgeting: Justifying every expense, with no automatic allocations.
Favorable Variance: Change exceeding budget expectations.
Flexible Budgeting: Budget adjustments for changes in sales/output levels.
Adverse Variance: Change falling under budget expectations.

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Test your knowledge on key concepts in marketing and management strategies. This quiz covers topics like pricing methods, promotional goals, and management styles. Ideal for students and professionals looking to refresh their understanding of these essential principles.