Unit 3 Pricing, Promotion, & Distribution Worksheet PDF

Marketing Student Worksheet Unit 3: Pricing, Promotion, & Distribution Name: _________________________________________ Class: _________ Date: _______ Lesson 1: Pricing 1. Define price and identify the four factors that affect price. Price is the value placed on a product. The four factors affect...

Marketing Student Worksheet Unit 3: Pricing, Promotion, & Distribution Name: _________________________________________ Class: _________ Date: _______ Lesson 1: Pricing 1. Define price and identify the four factors that affect price. Price is the value placed on a product. The four factors affecting price is the cost of making the product, the cost of running the business, the price competitors charge and the______ demand for the product._____________________________________________________ ________________________________________________________________________ 2. Name and describe the three objectives of pricing. Maximize Profits – setting the right price to generate the highest profit_________________ Increase market share – Setting prices low on new products to establish market share____ Match the competition – setting prices to match the competition to maintain profits or_____ market share._____________________________________________________________ 3. What is market share? A company's portion of the total industry sales for a certain product___________________ 4. List and describe the three pricing methods. Cost-oriented – the cost of making the product is used to determine the price.__________ Demand-oriented – the cost is set is based on what the customer is willing to pay for a___ product._________________________________________________________________ Competition-oriented – the cost is set based on the prices of competing products._______ 5. What is breakeven analysis and how does it affect pricing? The breakeven analysis is the process used to decide what the price must be to cover all costs. Above the breakeven point means a profit. Below the breakeven point means a loss. Page 1 of 4 Copyright © 2021 Applied Educational Systems Marketing Student Worksheet Unit 3: Pricing, Promotion, & Distribution Name: _________________________________________ Class: _________ Date: _______ 6. What are ways customer perceives a product's price? 1. The actual price may be a bigger factor to some segments_______________________ 2. Sometimes buyers will tolerate a wide range of prices based on the situation_________ 3. Customers may perceive the quality of an item based on its price__________________ Lesson 2: Promotion Define promotion Promotion is any form of communication that a business uses to inform, persuade, or remind potential customers about their goods and services._____________________ 2. Define advertising In advertising, a business pays money to influence people regarding their product._____ ___ ___________________________________________________________________ 3. Name the three main forms of advertising. Broadcast media, print media and digital media_________________________________ 4. What is personal selling? This involves direct communication between the sales person and the customer.________ 5. What are sales promotions? Incentives used to get people to buy a product.__________________________________ Page 2 of 4 Copyright © 2021 Applied Educational Systems Marketing Student Worksheet Unit 3: Pricing, Promotion, & Distribution Name: _________________________________________ Class: _________ Date: _______ 6. Match each sales promotion to its description. 1. Free samples or giveaways A. Buyers are entitled to immediate discounts. 2. Coupons B. Customers receive items free or at a reduced price after buying a product. 3. Rebates C. Displays are placed near the checkout to grab customers’ and make it easy to find the product. 4. Premiums D. Give businesses a chance to display or demonstrate their products 5. Trade Show E. Customers can try products without risk. 6. Point-of-sale (POS) displays F. Customers can get cash back after their purchase but need to take action for to get money. 7. Define public relations. Public relations involves the ongoing effort to foster positive relationships between an___ organization and various public groups.________________________________________ 8. What is publicity? Publicity involves placing information about goods, services, or companies in the general_ media.__________________________________________________________________ 9. What does integrated marketing communication? Integrated marketing communication refers to coordinating all the promotional methods so that a consistent message is sent to customers.__________________________________ 10. Why do companies strive to use integrated marketing communication and what problems occur without it? Integrated marketing communication helps to maximize the persuasive impact on_______ customers and can foster long-term customer relationships. If the individual messages___ don't line up, the customer will be confused and move on to the next product.___________ Page 3 of 4 Copyright © 2021 Applied Educational Systems Marketing Student Worksheet Unit 3: Pricing, Promotion, & Distribution Name: _________________________________________ Class: _________ Date: _______ Lesson 3: Distribution In terms of the marketing mix, __place_____________ refers to distribution. 2. Define distribution. Distribution is concerned with determining how to get the product to the right people, in the right amounts, at the right time and place._______________________________________ 3. Define channels of distribution. It is the path a product follows from produce to consumer.__________________________ 4. Match each channel of distribution to its description. 1. Direct channel G. Intermediary that sells a product directly to a customer 2. Retailer H. Connect sellers and buyers but does not own merchandise 3. Wholesaler I. Producer sells directly to the customer 4. Agents & brokers J. Intermediary that sells to another intermediary 5. What is physical distribution? Business functions used to move the products through the channel to consumers_______ ________________________________________________________________________ 6. Match each component of physical distribution to its description. 1. Warehousing A. Making decisions about how many goods and other materials to keep in stock 2. Materials handling B. Shipping products to customers 3. Inventory management C. Receiving, storing, and preparing goods for reshipment 4. Order processing D. Physically handling goods to reduce damage and maximize warehouse space 5. Transportation E. Managing incoming and outgoing orders and determining the most efficient methods Page 4 of 4 Copyright © 2021 Applied Educational Systems