# CTE Resource Center - Verso - Marketing, Advanced Task 896546707

CTE Resource Center - Verso

Virginia’s CTE Resource Center

Explain the concept of markup/markdown and how it relates to profit and loss.

Definition

Explanation should include

  • the definition of markup and markdown and the role and types of markup/markdown, such as the cost method and the retail method
  • how channels of distribution (e.g., internet sales) affect markup and how competition may affect markup
  • how fluctuation affects markup
  • how economic factors affect markup/markdown
  • comparison of the factors determining price on online purchases vs. retail purchases (overhead, shipping, taxes, security, returns).

Process/Skill Questions

  • Why does a marketer need to know how to compute markup when software programs can calculate the figures?
  • What can a company do to offer a low price at first, and then allow the price to rise later?
  • Why do most retailers prefer the "retail" method of determining markup?
  • What is the purpose of markup?

Related Standards of Learning

English

11.3

The student will apply knowledge of word origins, derivations, and figurative language to extend vocabulary development in authentic texts.
  1. Use structural analysis of roots, affixes, synonyms, and antonyms to understand complex words.
  2. Use context, structure, and connotations to determine meanings of words and phrases.
  3. Discriminate between connotative and denotative meanings and interpret the connotation.
  4. Explain the meaning of common idioms.
  5. Explain the meaning of literary and classical allusions and figurative language in text.
  6. Extend general and cross-curricular vocabulary through speaking, listening, reading, and writing.

11.5

The student will read, interpret, analyze, and evaluate a variety of nonfiction texts including employment documents and technical writing.
  1. Apply information from texts to clarify understanding of concepts.
  2. Read and correctly interpret an application for employment, workplace documents, or an application for college admission.
  3. Analyze technical writing for clarity.
  4. Paraphrase and synthesize ideas within and between texts.
  5. Draw conclusions and make inferences on explicit and implied information using textual support.
  6. Analyze multiple texts addressing the same topic to determine how authors reach similar or different conclusions.
  7. Analyze false premises, claims, counterclaims, and other evidence in persuasive writing.
  8. Recognize and analyze use of ambiguity, contradiction, paradox, irony, sarcasm, overstatement, and understatement in text.
  9. Generate and respond logically to literal, inferential, evaluative, synthesizing, and critical thinking questions about the text(s).

12.3

The student will apply knowledge of word origins, derivations, and figurative language to extend vocabulary development in authentic texts.
  1. Use structural analysis of roots, affixes, synonyms, and antonyms, to understand complex words.
  2. Use context, structure, and connotations to determine meanings of words and phrases.
  3. Discriminate between connotative and denotative meanings and interpret the connotation.
  4. Explain the meaning of common idioms, and literary and classical allusions in text.
  5. Extend general and cross-curricular vocabulary through speaking, listening, reading, and writing.

12.5

The student will read, interpret, analyze, and evaluate a variety of nonfiction texts.
  1. Use critical thinking to generate and respond logically to literal, inferential, and evaluative questions about the text(s).
  2. Identify and synthesize resources to make decisions, complete tasks, and solve specific problems.
  3. Analyze multiple texts addressing the same topic to determine how authors reach similar or different conclusions.
  4. Recognize and analyze use of ambiguity, contradiction, paradox, irony, overstatement, and understatement in text.
  5. Analyze false premises claims, counterclaims, and other evidence in persuasive writing.

Other Related Standards

National MBAResearch Standards-Business Administration

Analyze cost/profit relationships to guide business decision-making.

 

Manage financial resources to ensure solvency.

 

Understand economic systems to be able to recognize the environments in which businesses function.

 

National MBAResearch Standards-Marketing

Develop a foundational knowledge of pricing to understand its role in marketing.