IBM 4212
Quiz #1
1. What is Marketing and why is it said to be the “driving force of ALL business”?
Marketing is the driving force of all business because you need it to let customers
know about your product/services. Businesses need many some form of marketing,
whether it’s word-of-mouth, buzz marketing, print marketing, etc. For example, if
blockbuster movies did not put out a trailer, their sales would not be as high because
there would be less people who know about the new movie. Additionally, marketing
helps potential customers know about the product/service and about the company
itself. It is crucial for businesses to utilize marketing to the full advantage.
2. What are Demographics and Psychographics and why are they important to use in
Marketing?
Demographics are the geographic, age, ethnicity, gender, socioeconomic status, and
more that can be used to help identify or segment your target into different groups.
Psychographics focus more on the behaviors of a certain group (i.e. Gen Z are less
likely to utilize Facebook, Millennials are more likely to favor experiences over
material goods). They are important to use in marketing because they tell a story about
our target market, and it can help us reach our audience the best. If a company wanted
to resonate with the Boomer population, they would not use Snapchat to reach them.
3. A Breakeven Analysis is a powerful management tool, and one that is critical in
planning, decision-making, and expense control. It can be invaluable in
determining whether to buy or lease, expand into a new area, build a new plant,
and many other such considerations.
a. T F
4. According to the Marketing Concept,
a. Companies produce only what customers want.
b. A company should produce only basic products.
c. Managements primary task is to convince buyers to purchase what we
produce.
d. Management’s most important task is to keep production costs low.
e. ALL OF THE ABOVE.
f. NONE OF THE ABOVE.
5. What specifically is a break-even analysis? Give 3 examples of how a Marketing
Manager could utilize this strategic tool:
A break-even analysis is a formula (revenue=costs) that helps determine the number
of items that a company needs to sell to cover costs; at this point, the company would
neither make money nor lose money. A Marketing Manager can utilize the break-even
analysis to determine 1) the minimum price of a product/service; 2) number of units
that need to be sold; 3) number of additional sales to justify new expenses.
6. What are the 4 P’s of the Marketing Mix and how does the 4 C’s relate to them?
