Term
| Listand describe the four utilities provided by marketing. |
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Definition
The four utilities provided by marketing are:
1. Time utility: Enhancing a product’s marketability by making it available at a convenient time.
2. Place utility: Adding consumer value by locating products in convenient locations.
3. Ownership utility: The increased value of a product created by the legal right of ownership.
4. Form utility: The elements of the composition and appearance of a product that make it desirable. |
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Term
| What are the five major external factors that affect organizations? |
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Definition
- Political/legal factors: new legislation to introduce mandatory price disclosure will affect how some businesses compete with each other.
- Social/Cultural factors: people are no longer in reverance of the dead. They have a "dispose them now" attitude.
- Technological factors: having services broadcast over the internet will allow people to stay at home instead of coming to the funeral home and eating the lunch I provide to my customer, lowing the amount of money that I make.
- Economic factors: the economy has left a lot of people with limited funds to spend on a funeral.
- Competitive factors: a new funeral home is opening up in the same vicinity, thus cutting into the number of calls that I get. |
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Term
| What is a market segment? How does a business use information about a market segment? In what ways would a market likely be segmented? Define each of these ways. |
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Definition
A market segment is part of the total market divided by customer types. Businesses use segment information to help determine a customer's needs by analyzing their traits and behaviours. Segments are commonly divided by:
Demographic variables - traits such as age, income, gender, marital status, race, religion
Geographic variables - where people live, neighbourhoods, dwelling types
Psychographic variables - activities, interests, opinions, attitudes
Product-use variables - the ways consumers use products, the benefits they get from them, their reasons for buying, their loyalty towards the product |
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Term
| The process of planning and executing the development, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy both the consumer and organizational objectives is called |
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Definition
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Term
| Products that are purchased by individuals for their personal use are |
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Definition
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Term
| Value compares a product's benefits with its |
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Definition
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Term
| Which of the following is not one of the elements of marketing? |
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Definition
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Term
| A detailed andfocussed strategy for gearing marketing activities to meet consumer needs and wants is called a |
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Definition
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Term
| When Batesville offers caskets, urns, vaults, and keepsake jewellery with various features and options at various price levels, they are trying to provide products for every |
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Definition
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Term
| The buying process begins when the customer |
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Definition
| recognizes a problem or need. |
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Term
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Definition
| the study of consumer needs and wants, and the ways in which sellers can best meet them. |
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Term
| Segmenting the market by postal codes is an example of segmentation by |
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Definition
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Term
| People with similar wants and needs constitute __________, which clearly requires _____________. |
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Definition
| target market, market segmentation |
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Term
| Identify the four stages of the product life cycle. |
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Definition
Response: The four stages of the product life cycle are:
1. Introduction - The product enters the market place. Marketers focus on making potential consumers aware of the product and its benefits.
2. Growth - If the new product is successful, sales rapidly increase. The product then begins to show a profit.
3. Maturity - Sales growth slows. Highest profit levels are obtained early in this stage. Increased competition eventually leads to price cutting and lower profits. At the end of the stage sales start to fall.
4. Decline - Sales and profits continue to fall. New products are introduced causing sales to fall. Companies remove/reduce promotional support but don't take the product off the market to provide some profits. |
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Term
| What do businesses hope to accomplish with their promotional methods to prospective customers? In addition to increasing sales, what are four additional possible objectives of any promotion? What are the promotional tools that are included in a businesses promotional mix? |
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Definition
Businesses hope to make their customers aware of their producys, make them knowledgeable about theor products, persuade them to like their products, and persuade them to purchase their products.
Four additional objectives are:
1. communication of information
2. product positioning
3. adding value
4. controlling sales volume
A businesses promotional mix includes advertising, personal selling, sales promotion, and publicity. |
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Term
| ________ is the process of planning and executing the development, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. |
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Definition
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Term
| Coffee, cold medicine, cologne, cars, and toothpaste are examples of |
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Definition
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Term
| Which of the following is not one of the elements of marketing? |
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Definition
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Term
| The ________ philosophy says that the entire firm is coordinated to serve its present and potential customers at a profit. |
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Definition
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Term
| Hansen Trucking Company transports caskets from a loading dock in Toronto to a funeral home in Richmond. This is a(n) ________ element of the marketing mix. |
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Definition
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Term
| The ________ is a good, service, or idea that is marketed to fill consumer needs and wants. |
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Definition
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Term
| Wilbert offers four different models of its concrete grave liner, from bronze to stainless. This represents |
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Definition
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Term
| entify the categories of consumer goods and services. |
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Definition
| Convenience, shopping, specialty |
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Term
| The ________ is a series of stages through which a product passes during its profit-producing life. |
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Definition
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Term
| Eckels products include chemicals, instruments, sundries, and barrier garments. This is Eckels |
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Definition
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Term
| Relatively inexpensive consumer products that are generally consumed rapidly are known as |
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Definition
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Term
| Coca-Cola, Pepsi-Cola, Kleenex, and Chevrolet are examples of |
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Definition
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Term
| Goods which are very important, expensive, and rarely purchased, such as funerals, are ________ goods. |
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Definition
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Term
| During this stage of a product's life cycle, sales begin to slow down, but profit levels are at their highest. Competition becomes more active and, toward the end of this stage, sales start to fall. This is the ________ stage of a product's life cycle. |
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Definition
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Term
| Which type of advertising will promote a particular viewpoint such as one that opposes smoking or drunk driving? |
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Definition
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Term
| What are the basic types of promotional tools |
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Definition
| Advertising, Sales Promotion, Personal Selling |
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Term
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Definition
| The exclusive legal right to use a brand name |
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Term
| What do promotions seek to accomplish |
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Definition
make consumers aware of products
persuade them to like the products
make them knowledgeable about the products |
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Term
| Windhaven Funeral Home is using direct mail to send free gift with purchase coupons to its list of potential customers for pre-arrangements. This strategy is called a ________ strategy. |
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Definition
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Term
| The communications vehicle that is flexible, has rapid coverage, but lasts briefly and cannot target audiences very well is |
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Definition
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Term
| ________ attempts to build goodwill with customers by performing and publicizing a company's public service activities. |
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Definition
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Term
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Definition
| Markup is an amount added to the cost of the item to arrive at the selling price. |
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Term
| Costs that change with the quantity of a product that is produced or sold are |
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Definition
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Term
| What are the two main pricing objectives that are observable in corporate pricing? |
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Definition
| Market share and profit maximization |
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Term
| Pricing above the market plays on the common assumption that |
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Definition
| higher price means higher quality |
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Term
| Which of the following is most likely to be used to establish a new product in a market which already has similar products? |
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Definition
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Term
| What is the accounting equation? Provide a brief explanation of the meaning of each part of this equation |
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Definition
The accounting equation is assets = liabilities + owner's equity.
Assets are those items that a company owns, including land, buildings, equipment, inventory and accounts receivable.
Liabilities are those amounts that a company owes to various outside parties.
Owner's equity is any positive difference between a firm's assets and its liabilities; what would remain for a firm's owners if the company were liquidated, all of its assets sold and all of its debts paid. |
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Term
| what are the three financial statements that were discussed in the textbook? |
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Definition
| Accounting summarizes the results of a firm's transactions and issues reports to help internal and external users of financial information to make decisions. The three types of basic financial statements are: 1) Balance sheets - supplies detailed information about the accoutning equation, listing the balances of all assets, liabilities, and owner's equity at one point in time; 2) Income Statement - describes revenues and expenses to show a firm's profit or loss over a period of time; 3) Statement of Cash Flow - reports cash receipts and payments from operating, investing, and financing activities over a period of time. |
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Term
| What is the difference between financial and managerial accounting? |
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Definition
| Financial accounting is concerned with providing information for external users such as consumer groups, stockholders, and government agencies, while managerial accounting is concerned with providing information for internal users like managers |
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Term
T or F
A budget is a detailed financial plan of estimated receipts and expenditures for the future. |
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Definition
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Term
T or F
Liabilities reflected on the balance sheet are divided into two general categories: current (debts to be paid within one year) and long term (due more than five years into the future). |
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Definition
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Term
T or F
One of the purposes of accounting is to communicate financial information. |
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Definition
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Term
T or F
Financial accounting is primarily for people outside the funeral firm while managerial accounting is primarily for people inside the firm. |
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Definition
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Term
T or F
Depreciation is used to recognize the total cost of an asset in the year in which it was purchased. |
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Definition
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Term
T or F
The standard rules and methods used by accountants in preparing financial reports are called generally accepted accounting principles |
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Definition
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Term
| If Kayla wants to know the cost of obtaining materials to make products that were sold during the year, she should look at the |
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Definition
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Term
| What is the term used for the recording of financial transactions? |
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Definition
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Term
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Definition
| A debt owed by the business |
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Term
| What are the three types of assets that will be found on a balance sheet? |
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Definition
| Current, fixed, and intangible |
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Term
| What is the accounting term that describes an amount paid for an existing business above the value of its other assets? |
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Definition
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Term
| The accounting equation is |
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Definition
| assets = liabilities + owner's equity |
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Term
| A (n) __________ is any economic resource expected to benefit a firm or the individual who owns it. |
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Definition
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Term
| The amount of profit or loss will be reflected in the |
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Definition
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Term
| The system for measuring business performance and translating those measures into information for management decisions is called |
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Definition
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Term
| Mike is reviewing a company's accounting system, checking the ledgers and journals, and tracking some transactions to see how they were handled. Mike is engaged in |
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Definition
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Term
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Definition
| the amount of money that the owners would receive if they sold all of a firm's assets and paid all of its liabilities. |
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Term
| Current assets are listed in order of ________ on the balance sheet. |
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Definition
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Term
| What is the primary purpose of accounting? |
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Definition
| To summarize the results of business transactions so that the resulting reports can be used in the decision-making process |
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Term
| Which of the following is NOT one of the users of accounting information? |
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Definition
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Term
| Land, building, and equipment are |
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Definition
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Term
| The financial statement that changes with every accounting transaction is the |
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Definition
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Term
| what is risk management? Explain four techniques that managers can use to minimize risk? |
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Definition
Risk management is conserving a business or individual's financial power or assets by minimizing the financial effect of accidental losses.
Four techniques include:
risk avoidance - stopping participation in or refusing to participate in ventures that carry and risk
risk control - techniques to prevent, minimize, or reduce losses or the consequences of losses
risk retention - the covering of a firm's unavoidable losses with its own funds
risk transfer - the transfer of risk to another individual or firm, often by contract |
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Term
| An acceptable at-need to pre-need ratio would be |
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Definition
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Term
| Which of the following best describes pre-arranged delivered? |
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Definition
| helps to identify what your burn rate is |
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Term
| Which of the following best describes pre-need in force? |
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Definition
| the total dollar amount of all current pre-needs |
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Term
Current assets: $104,480
Fixed assets: $465,000
Investments: $0
Total assets: $694,480
Current liabilities: $39,500
Long Term Liabilities: $262,500
What is the working capital? |
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Definition
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Term
Current assets: $104,480
Fixed assets: $465,000
Investments: $0
Total assets: $694,480
Current liabilities: $39,500
Long Term Liabilities: $262,500
What is the current ratio |
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Definition
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Term
| What method provides the most realistic picture when performing a market share analysis? |
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Definition
| Using average funeral values with call volume |
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Term
| Which of the following best describes pre-need back log? |
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Definition
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Term
T or F
Contribution is the difference between the selling price and the variable costs. |
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Definition
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Term
T or F
Burn rate refers to the number of cremation pre-arrangements you have on file at your funeral home. |
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Definition
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Term
T or F
Pure risk is an event that offers the chance for either a gain or a loss. |
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Definition
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Term
| To compute the current ratio, current assets are divided by |
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Definition
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Term
| What is the purpose of computing the current ratio? |
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Definition
| To measure the firm's ability to meet its current obligations out of its current assets. |
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Term
| The debt-to-owner's equity ratio measures a firm's ability to meet |
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Definition
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Term
| ________ ratios give investors an idea of what returns they can expect on their investment; dividing ______ by total owner's equity is one such ratio. |
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Definition
| Profitability; net income |
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Term
| How can the owner of a business determine how much net income the business earns for each dollar invested by the owner? |
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Definition
| Compute return on equity ratio |
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Term
| With fixed assets of $4 million and current assets of $1.7 million, Mike's Funeral Emporium has fixed liabilities of $2 million and current liabilities of $0.34 million. What is Mike's current ratio? |
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Definition
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Term
| The risk associated with designing and distributing a new product is a (n) _______ risk. |
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Definition
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Term
| Who is responsible for planning and controlling the acquisition and dispersal of the company's financial assets? |
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Definition
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Term
| Which of the following is the first step in managing risk? |
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Definition
| Identify risks and potential losses. |
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Term
| In preparation for the 2011 Stanley Cup, restaurants and retail shops in Vancouver should have bought insurance policies that would cover vandalism losses should a riot ensue. This is an example of the risk management strategy of |
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Definition
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