Convenience Goods: any good that a consumer is not willing to spend time and effort
shopping for (candy, clothes).
Shopping Good: a good that consumers are willing to spend time and effort shopping for
(cars, appliances, clothes).
Specialty Goods: a consu
Marketing Study Guide: Test One
What is marketing?
Marketing is a total system of activities that create satisfying products, services,
and ideas to targeted markets.
Marketing Conceptfulfill the needs of the consumer, while still generating a profit
1. What concept drives the accounting technique of lower of cost or market (LCM)?
The lower of cost and market method has two boundaries on the valuation of inventories. The
first is the inventory ceiling, which requires that inventory must be r
1. What are the three basic characteristics that distinguish plant assets from other kinds of
The first is that they are acquired for use in operations and not for resale. Only assets used in
normal business operations are classified as
Nike recently shifted to a simple strategy has lowered the advertising budget year
after year, allowing Nikes strong brand name and power to market the Free Run. Instead of
running ads and trashing competitors, Nike Inc has signed hundr
Description of Product/Marketing Campaign
The Nike Free running shoe offers a barefoot like ride with the cushioning, traction, and
underfoot protection of a traditional shoe. The low profile midsole doubles as an outsole,
dramatically reducing overall we
ACCT B206 / CQ / Page 1 of 2
1. Define "depreciation" as a non-business person might use it. What does depreciation mean to
To the lay person it is a decline in value, such as driving a new car off the dealers lot. But to the
1. What is the general guideline governing the treatment of an expenditure on a plant asset
after acquisition? Why are ordinary maintenance and repair costs (e.g., oil changes for a
vehicle) expensed if they affect the useful life of the asset?
If a payme
1. Theoretically, at what point should the cost of inventory be transferred from an asset to
an expense? And what is that expense called?
Once there is a sale of the goods from finished goods, you charge the cost of the finished
goods sold to th
1. Does the cost flow alternative used in the accounting records have to match the physical
movement of the inventory item? Why or why not?
The cost flow does not always have to match the physical movement of the inventory goods.
The only requirement is t
The Management of Services
Importance of Services
About 68% of GNP and 71% of employment
comes from services.
s Most products have a service component. Can't
s Most customers have a difficult time assessing the
differences in services, but
An Outline of the Evolution of
Marketing in the U.S. Economy
Rationale for Examining History
To understand the US economy and how it fits
into the global economy, one has to first
understand how the US economy arose.
x Our economy is unique in the way mar
A cynic is someone who knows the price of everything
and the value of nothing.
What is Price?
What is Price?
.the sum of the values consumers exchange
for the benefits of having or using a product
Most common pricing
Results are gained by exploiting opportunities, not by
The first man gets the oyster; the second man gets the shell.
The second mouse gets the cheese.
What is a product?
It is a luxury to be understood.
Ralph Waldo Emerson
"The advertisers who believe in the selling power of jingles have never
had to sell anything."David Ogilvy
"Advertising is a valuable economic factor, because it is the cheapest way
Information Systems and
Vision is the art of seeing the invisible-Jonathan Swift
There are only three kinds of executives:
Those who watch things happen.
Those who make things happen.
Those who wonder what happened.
-all activities involved in the sale of goods and
services to the ultimate consumer.
generally viewed as undesirable jobs by
students-hours, time, stress, dealing with idiots,
some of the highest paying jobs
Personal Selling and Sales
Nature has given to us one tongue, but two ears, that we may
hear from others twice as much as we speak.
The Sales Process
The Art of Creating Target
Importance of Segmentation
Executives say segmentation is the
hardest aspect of marketing.
q Segmentation determines the success
of the marketing mix.
q If segmentation is done poorl
On Nikes website there is a competition called The Arena where athletes all over the world
send in clips of themselves performing amazing athletic feats, while wearing Free Runs, on which
the public votes for the clip found most impressive