BUSI 1301 Chapter 14

It takes __ ideas to generate one commercial product

7

_____ pricing is based on what customers are willing to pay for a product due to its perceived value, not the cost of producing it.

Demand

When airlines charge higher prices for seats in the Economy section Exit rows that have more leg room, they are using which pricing strategy?

Demand-oriented

Packaging serves several critical functions in the overall success of a product. Some of these functions are:

Giving a potential buyer a sense of price, value, and uses Attracting the buyer's attention Explaining the benefits of what's inside

One of the most difficult four P's for a manager to control, since it directly relates to the consumer perceptions of the value of a product.

Price

When opening a bag of potato chips, the bag is much larger than what is inside. The reason for this most likely has to do with which function of packing?

To protect the goods inside

What is an example of a current manufacturer's brand name that has not become generic?

Xerox

When a firm prices a new product very high to make optimum profit while there is little competition, it is said to be using ______.

a skimming price strategy

Determining the profitability of those ideas is a function of product _

analysis

A name, symbol, or design that identifies the goods or services of one seller or group of sellers is called a:

brand

The value of the brand name and associated symbol refers to:

brand equity

Which person has direct responsibility for all aspects of a product line or a brand including the marketing mix?

brand manager

Grouping two or more products together and pricing them as a unit is called:

bundling

When consumers look at all of the benefits of a product and subtract all of the costs related to its purchase, they are:

calculating the value of its product

Product differentiation is used to:

call attention to product differences that appeal to the preferences of the target market

Setting price at, above, or below competitors based on what they are doing is a pricing strategy called:

competition-based pricing

A product that could be both a consumer product or industrial product depending on its use is a:

computer

Items purchased often and without much effort on the art of the consumer are referred to as:

convenience goods

Handing off various parts of a firm's innovation process sometimes to companies in other countries is called _____________ product development.

distributed

(T/F) Distributed product development is producing a firm's product without the help of other organizations

false

Sellers are now able to commercialize new products more quickly online and through social media that enable them to reach:

global markets

List the steps in the new product development process

idea generation product screening product analysis development testing commercialization

List the stages of the product life cycle from beginning to end

introduction growth maturity decline

In which stage of product's life cycle would marketers find the need to communicate what makes its product different from other products?

maturity

Xerox, Kodak, and Dell are all examples of:

national brand names

Marketers who seek to differentiate their products by promoting attributes such as safety or the brand name are using:

nonprice competition

It is unusual for a company to sell:

only one product

The reasons why many new products fail include:

poor packaging poor positioning too few differences from competitors

Which step in the new product development process involves estimating costs and sales to get a feel for the new product's potential profitability?

product analysis

The creation of real or perceived product differences is called:

product differentiation

Companies rarely sell one product, but offer a:

product line

During ____________ ____________ a marketing manager should use such criteria as fit with the firm's other products, profit potential, and marketability.

product screening

A Brand Manager is responsible for:

product, promotion, price

The break-even point is where:

revenues from sales equals all costs

Reducing the number of new product ideas based on specific criteria is a function of product ___

screening

Knowing what ___________ of the product life cycle a product is in helps marketers make intelligent and efficient marketing decisions.

stage

Designing a product so that it satisfies customers and meets the profit margins desired by firms is called:

target costing

new products are getting rapid exposure to global markets through:

the internet

Recognizing what stage of its life cycle a product is in has a direct impact on marketer's decisions about:

the marketing mix

(T/F) The two categories of Goods and Service that take more effort on the part of consumers are Shopping and Specialty

true