Page 568 - Business Principles and Management

C HAPTER 20 A SSESSMENT

APPLY WHAT YOU KNOW

20. Describe the ways that trucking companies, banks, and warehouses
are marketing businesses.
21. Explain why it is important to conduct market research to determine
the markets to be served before deciding what to produce and sell.
22. Describe how customers might know if a company has a customer
orientation rather than a sales orientation.
23. What are some examples of goods or services that would sell well
only in specific geographic locations?
24. Describe how the price is influenced by the other three elements of
the marketing mix. What could a marketing manager do with other
mix elements to increase or decrease a product’s price?

MAKE CONNECTIONS

25. Math Complete the following table for the four products listed by
determining the total cost of each product and the percentage of
the final product price that was spent on marketing.

Product 1 Product 2 Product 3 Product 4
Retail Price $45.20 $576.00 $32,750.00 $4.80
Raw Materials 6.20 28.00 12,650.00 .78
Other Product Costs 3.80 56.50 2,500.00 .14
Operating Expenses 4.30 74.00 4,825.00 .32
Marketing Expenses 14.90 96.50 3,500.00 2.50
26. Research Interview 10 people to determine how they purchase jeans.
Ask each of them the following questions: Where do you usually
buy your jeans? What product features are important to you? How
important is price in your decision to purchase jeans? Do you usu-
ally buy one brand? Do you usually look in several stores before
you buy a pair of jeans?
Based on each person’s answers, determine whether he or she
is treating jeans as a convenience, shopping, specialty, or unsought
good. Write a short report discussing your findings and your con-
clusions. Include a chart or graph illustrating your findings.
27. Speaking Participate in a debate with other class members. Your
teacher will assign you to one side of the issue or the other and will
give you specific instructions and guidelines. The issue is: Marketing
causes people to spend money for things they otherwise would not
buy and do not need. Do you agree or disagree?
28. Technology Use the Internet to find examples that illustrate each of
the four elements of the marketing mix—product, price, distribu-
tion, and promotion. Use presentation software such as PowerPoint
to link to examples and to the concept of a marketing mix.

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