Marketing
What is the Marketing Mix?
Price
Product
Promotion
Place
What is the formula for Revenue?
Revenue = Quantity X Price
What is an angel investor?
Someone who provides guidance and $ for some equity
What is a fixed cost?
A cost that stays the same. EX: rent, insurance payments, lease payments, overhead.
True or False: books, music and software are trademarked.
False. They are copyrighted.
Which P of the marketing mix would deal with manufacturing?
Product
What do each of the 3 financial statements tell you?
Income Statement = How much money you made or lost
Balance Sheet = How much you are worth
Cash Flow = Your ability to meet short term obligations (pay liabilities)
What is bootstrapping?
What is a variable cost?
A cost that changes. Ex: materials, labor
True.
Which P of the marketing mix would deal with where you sell?
Place
What price would I choose if the cost of my product is $10 per unit and I want a 30% markup?
Price = cost*markup
Price = $10 X 1.30
Price = $13
What is it called when an investor looks into a company before investing?
due diligence.
Is an hourly wage a variable to fixed cost?
Variable. The rate may be fixed, but the wage itself will change based on hours worked.
True or False: government census information would be considered secondary research.
True.
What would affect distribution choices? (choose 2)
A. Color
B. Brand
C. Weight
D. Perishability
C. Weight
D. Perishability
I have fixed costs of $600. My cost to make an item is $5 per item. My price is $10. How many do I have to sell to break even?
Break Even Point = Fixed Costs/Contribution Per Unit
BEP = $600/($10-$5)
BEP=$600/$5
BEP= 120 units
What are revenue streams? Provide an example to explain.
Different ways of bringing in revenue. Ex. Apple sells multiple devices and a streaming service.
Is a salary a fixed or variable cost?
Fixed. A salary is generally considered fixed as it is an agreed upon amount for a year.
What is another name for a profit and loss statement?
Income Statement
Explain the stages of the product life cycle.
Introduction: Product launch. Spend a lot on marketing to reach customers.
Growth: demand and sales increase drastically. Competition notices.
Maturity: sales peak and growth slows due to saturation. This is where you focus on differentiation.
Decline: Sales fall due to changing preferences and competition. Reduce marketing and sell of inventory possibly at a discount.
I have fixed costs of $800. I have a variable cost of $2. What price would I have to use to break even at 50 units?
BEP = Fixed Costs/Contribution per unit
50 units = $800/($x-2)
50x - 100 = 800
50x = 900
x = $18
Explain the difference between Equity and Debt financing. Provide examples.
Equity financing is selling off a percentage of your business for finance (money). I may give 10% of my business to an investor for $50,000.
Debt financing is taking out a loan for finance (money). I may take out a $50,000 loan at a bank for my business.
Can you have both a variable and fixed wage?
Yes - A salesperson may have a salary (fixed) and earn commission (variable) on sales.
List and explain all the design thinking actions.
1. Empathize: Understand the user
2. Define: Articulate the problem
3. Ideate: Generate ideas
4. Prototype: Make ideas tangible
5. Test: Gather feedback