Exam 12: Pricing, Distributing, and Promoting Products

Betty's Breads is trying to calculate their breakeven point.Their monthly fixed costs are $8,000.The cost of making one loaf of bread,considering labor and materials,is $6.At a sales price of $10,their breakeven point would be ________ loaves of bread.

With fixed costs of $100,000 and a variable cost of $8,a $15 CD must sell at least 20,000 units to break even.

Promotion is the process of establishing an easily identifiable product image in the minds of consumers by fixing,adapting,and communicating the nature of the product itself.

A CAD system could help a sales manager learn what sales levels will likely result from various levels of advertising expenditures.

Short Case Scenario 13-1 Bill Chung is the recently appointed Vice President of Information Systems for Worldwide Corporation. This is a newly created position. Bill joins the preexisting management team of Vice Presidents for Operations, Finance, and Marketing. Bill is determined to make himself useful and to improve the way Worldwide does business. Very quickly, Bill observes that Worldwide has collected rooms full of data but rarely use it to make decisions. During his first week of work, he comments to the company's president, Cindy Stevens, that the company has plenty of data but very little information. Cindy looks puzzled. -As Bill proposes increased spending on network technology,Cindy is concerned that Bill is driving the company towards bankruptcy.Bill assures her that this is not the case.How can increased technology improve productivity and performance?

________ consist of computers that are linked over long distance - statewide or even nationwide.

________ attempts to build good relations with the public or to deal with unfavorable events.

Why is electronic conferencing a desirable alternative for business?

To assist start-up businesses,eBay's services network is a ready-made online business model,not just an auction market.

An application server,an e-mail server,and a print server are all computers that provide services shared by users.

A ________ is a large product line retailer offering a variety of food and food-related items in specialized departments.

Companies are learning that complex problems cannot be solved through IT-supported collaboration.

Extranets link together the computers of employees at multiple locations.

How is a Trojan horse different from a worm?

________ generate large sales volume by offering goods at substantial price reductions.In recent years they have offered higher quality and a few department store services.

Dan received an e-mail offering him free access to a Web site.However,he was leery,fearing the message to be ________.

While the ultimate objective of any promotion is to increase sales,marketers may have other objectives.List four promotional objectives other than increasing sales.

A ________ network links computers and workstations,often at a great distance from one another,through telephone wires,by microwave signals,or by satellite.

A salesperson communicates one-to-one with potential customers to identify their needs and to line them up with the seller's product through ________.

What is price skimming?