Management 305 Study Guide Exam 3

Management 305 Study Guide Exam 3 - M anagement 305 Exam 3...

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Management 305 Exam 3 Study Guide: Chapters 11, 12, 13, 14, 15 Chapter 11: 1. List three of the four objectives of market segmentation identified in the textbook. 1) Identify one or more relatively homogeneous groups (based on wants & needs) of prospective buyers in the industry. 2) Differences within the segment should be small. 3) The segment should be distinct enough so members can be easily identified. 4) Size of the market should be measurable, so as to determine feasibility. 2. List three circumstances identified in the textbook that must be present in order for an entrepreneur to charge a premium price. 1) Demand for the product is strong relative to supply. 2) Demand for the product is inelastic. 3) The product is patent protected and has a clearly defined target market. 4) The product offers additional features that are valued. 5) A new technology is being introduced. 6) The product is positioned as a luxury product. 3. List and define the two common pricing methods identified in Chapter 11. 1) Cost-based pricing the list price is determined by adding a markup percentage to a product’s cost. 2) Value-based pricing the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion. 4. List an advantage AND disadvantage of both Selling Direct and Selling through Intermediaries. 1) Selling Direct Advantages : Ability to control the process of moving instead of relying on third parties 2) Selling Direct Disadvantages : The firm has more of its capital tied up in fixed assets because it must own or rent retail outlets or must field a sales force to sell its products. 3) Selling Through Intermediaries Advantages : The firm does not need to own as much of the distribution channel 4) Selling Through Intermediaries Disadvantages : loss (less) control of its product
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Chapter 12: 5. List three reasons why it is important to recognize and protect intellectual property. 1) The intellectual property of a business often represents its most valuable asset. 2) To avoid unintentional violations of intellectual property laws. 3) Intellectual property can be licensed or sold, providing valuable licensing income. 6. List the four key forms of intellectual property. 1) Patents 2) Trademarks 3) Copyrights 4) Trade Secrets 7. List the 2 Guidelines identified in the text for determining what intellectual property to legally protect. 1)
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Management 305 Study Guide Exam 3 - M anagement 305 Exam 3...

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