MARK 3336 UNIT 2

Which of the following statements about segmentation is true?

Different segments might require different marketing strategies or mixes

Industrial

Materials and parts, capital items, and supplies are services or groups of _____ products

Price

The amount of money charged for a product or service is its ______

Filling the line

When a company lengthens a product line by adding more items within that line's current range, it is ________.

The responsibilities of channel members

When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and ________.

Positioning map

A ________ illustrates consumer views of brands versus those of competing products on important buying dimensions.

Brand equity

A brand has positive ________ when consumers react more favorably to it than to a generic or unbranded version of the same product.

Value Proposition

A brand's ________ represents the full mix of benefits on which a brand is differentiated and positioned and is the answer to the customer's question, "Why should I buy your brand?"

Optional product

A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.

Carefully consider the degree of competition and ease of entry into the segment.

A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your colleague?

Image differentiation

A company can differentiate itself from competitors using symbols such as McDonald's golden arches, Twitter'sbird, and the Nike swoosh. Which type of differentiation is this?

Market-penetration pricing

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?

Reference

A grocery store places its store brand picante salsa, priced at $2.49, directly next to bottles of national brand Pace picante salsa, priced at $3.19. In so doing, the store is encouraging the use of the higher priced item as a________ price.

Concept development and testing

After ideas are screened, the next stage of the new product development process is _____.

Conflict

Although channel members depend on one another, they often act alone in their own short-run best interests and might disagree on their respective roles and rewards. Such disagreements over goals, roles, and rewards generate ________.

Concentrated Marketing

Anythinglefthanded.com.uk only sells products designed for left-handed people. Which targeting strategy is it using?

Price fixing

Archer Daniels Midland Co is the world's largest processor of soybeans, corn, and wheat. In the 1990s, the Justice Department found it guilty of regularly meeting with competitors when setting prices. ADM was guilty of________.

Product Stewards

As a result of growing litigation and increased product liability insurance, some companies are now appointing________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.

Reducing price, raising perceived value, improving quality and increasing price, and launching allow-price "fighter brand"

Assume a competitor has cut prices and a company determines it should respond. Potential actions that the company could initiate include ________.

Product development

At which stage of the new product development process is a physical product first developed?

Idea generation

At which stage of the new product development process is crowdsourcing used?

Product bundle

Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10). This is an example of _______ pricing.

Resellers, the government, and social concerns

Beyond the market and the economy, what other factors in its external environment must a company consider when setting prices?

Matching

Big food, drug, and discount retailers, such as Safeway, Walgreens, and Target, buy various types of candy bars by the truckload and stock it on their stores' shelves. In turn, you can buy a single Snickers bar along with a shopping cart full of other items when you visit the store. This example demonstrates how channel intermediaries contribute value by performing the ________ function.

Convenience

Candy, laundry detergent, and magazines are all examples of ________ products, which are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.

Core customer value

Charles Revson started Revlon. He once said "We sell hope." Revson was defining the ______ of Revlon cosmetics.

Product bundle

Combo meals at fast-food restaurants are an example of ________ pricing.

Partner relationship management

Companies now use ________ and supply chain management software to help recruit, train, organize, manage,motivate, and evaluate relationships with channel partners.

Market-penetration

Companies that set a low initial price in order to attract a large number of buyers quickly and win a large market share are employing a ________ pricing strategy.

Dynamic pricing

Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations.

Partner relationship management

Companies today see channel members as first-line customers and practice strong ________.

Growth

During the ________ stage of the product life cycle, firms often shift some advertising from simply building awareness toward building stronger brand conviction and purchase behaviors.

Consumer Products Safety Commission

Established by the U.S. Congress in 1972, the ________ has the authority to ban or seize potentially harmful products and set severe penalties for manufacturer violations of federal law.

Value-Added

Even as frugal consumer spending habits linger in the wake of the recession, some movie theater chains are adding amenities, such as upgraded leather seating and seat-side service, and charging more for tickets rather than cutting services to maintain a lower admission price. This example illustrates the concept of ________ pricing strategy.

Price Fixing

Federal legislation precludes sellers from talking to competitors prior to setting prices, an illegal practice known as ________.

Cost-based

For companies such as Walmart or Southwest Airlines, which have worked hard to position themselves as thelow-cost producers in their industries, it makes great sense to set prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for the company's effort and risk. This approach is known as ________ pricing strategy.

Perishability

For which service characteristic do marketers need to pay close attention to fluctuations in demand?

Captive Product

Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ________ pricing.

Intrapreneurship

Google's "Innovation Time-Off" and 3M's "Dreamdays" programs, in which employees are granted time away from their regular duties in order to develop new innovations, are examples of a concept known as ________.

Product mix width

If a company adds a new product line to its existing portfolio, it has increased its _________.

Fighter

If a specific market segment is being lost to lower-priced rivals and price-sensitive customers are unresponsive to arguments of higher quality, a firm might choose to introduce a new ________ brand at a lower-price point rather than lower the price and quality perceptions of its premium quality brands.

Differentiable

If men and women respond similarly to the same marketing mix, they do not constitute different segments. Gender would not be effective in this example because the segment is not ________.

The sum of all the values that customers give up to gain the benefits of having or using a product or service

In a broad sense, price is __________.

Level and consistency

In determining product quality, what are the two dimensions of quality marketers must decide upon?

Systematic

Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a ______________ approach to new product development.

The company's overall marketing strategy, objectives, and marketing mix

Internal factors that affect pricing include ________.

An administered VMS

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?

Micromarketing

Macy's has rolled out a localization program called "My Macy's" in which merchandise is customized under 69 different geographical districts. Blending local customer requests with store transaction data, Macy's district managers can customize merchandise assortments for its stores. This local marketing approach is a form of________.

Specialty

Manny is willing to exert special effort to find a valuable and rare 1960 baseball card featuring the famous New York Yankee, Mickey Mantle. This baseball card would be classified as a(n) ______ product.

Exclusive distribution

Many producers of luxury items purposely limit the number of intermediaries handling their products in order to enhance perceptions of the premium quality of their goods, a practice known as ________.

Location based pricing

Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using?

An indicator of quality

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Because she does not know much about wine, she will likely use the price of the wines as ________.

Distribution

Marketers, however, have traditionally focused on the downstream side of the supply chain, often referred to as the ________ channels, that look toward the customer.

Partner relationship management

Most companies see their intermediaries as first-line customers and partners. They employ a(n) ________ approach to forge long-term partnerships with channel members.

Maturity

Most products are which stage of the life cycle, and therefore most of marketing management deals with them at this stage?

Value-added pricing

New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?

Individual Marketing

On the My M&Ms Web site, users can place custom orders for M&Ms. They can choose their own colors, put a personalized text message on the candies, and even upload a photo to be placed on each M&M. Which targeting strategy is M&M using here?

It can increase costs

One important consideration in using a differentiated targeting strategy is that ________.

Matching

One key function performed by channel members is ________, shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.

Win a large market share

One major objective associated with a market-penetration pricing strategy is to ________.

Disintermediation

Online music download services such as iTunes and Amazon Music have pretty much put traditional music-store retailers out of business. This is an example of the concept of ________.

Differentiated marketing strategy

P&G markets at least six different laundry detergent brands in the United States (Tide, Gain, Cheer, Era, Dreft, and Bold), which compete with each other on supermarket shelves. P&G further segments each detergent brand to serve even narrower niches. This is an example of a(n) ________.

Intangibility

Patients undergoing cosmetic surgery cannot see the result before the purchase. Airline passengers have nothing but a ticket and a promise that they and their luggage will arrive safely at the intended destination, hopefully at the same time. These examples illustrate the service characteristic of ________.

Produces Revenue

Price is the only part of the marketing mix that __________.

Convenience goods

Producers of ________ typically use intensive distribution for their products.

Intensive

Producers of convenience products, such as bar soap and candy, typically seek to employ ________ distribution strategies

Filling

Product line ________ involves adding more items within the present range of the line.

Width

Product mix ________ refers to the number of different lines the company carries.

Crowdsourcing

Samsung's "Open Innovation" program connects the firm with a broad array of outside collaborators and entrepreneurs to develop new products and technologies. Through the program, Samsung creates alliances with top industry and university researchers around the world, participates actively in industry-wide forums, and seeks out and invests in promising startup companies. Samsung's program is an example of the concept of ________.

Internal Marketing

Service marketing requires ________. This means that the service firm must orient and motivate itscustomer-contact employees and supporting service people to work as a team to provide customer satisfaction.

Corporate VMS

Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores.Sherwin-Williams has established a(n) ________.

Perish-ability

Some doctors charge their patients when they do not show up for their appointment, reasoning that the value of the service was present at the appointment time and disappeared when the patient failed to show up. This example illustrates the service characteristic of ________.

Brand Extension

Starbucks' introduction of packaged supermarket coffees is an example of the concept of ________.

Product line

The Ford Mustang is offered in several different models. Ford will use ________ pricing to determine the price steps between the different models.

Discrimination

The Robinson-Patman Act seeks to prevent unfair price ________ by ensuring that sellers offer the same price terms to customers at a given level of trade.

Brand Extension

The SwissArmy Company markets multi-tools, clothing, watches, and travel accessories all under the SwissArmy brand name. This is an example of which brand development strategy?

Important

The Westin Stamford Hotel in Singapore failed when it once advertised itself as the world's tallest hotel. This difference was not worth establishing because it did not satisfy which of the following criteria?

Demand Curve

The ________ shows the number of units the market will buy in a given time period at different prices that might be charged.

Positioning

The final step in implementing a​ market-driven strategy is​ ________, which consists of arranging for a market offering to occupy a​ clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Segmentation

The first step in creating a​ market-driven strategy is​ ________, which involves dividing a market into smaller segments of buyers with distinct​ needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

Intermediary levels

The length of a channel is indicated by the number of ________.

Market Targeting

The process of evaluating each market​ segments attractiveness and selecting one or more market segments to enter is called​ ________.

Variability

The quality of services depends on who provides them, and when, where, and how they are provided. Which characteristic of services does this describe?

Which of the following statements about brand positioning is correct?

The strongest brands are positioned on beliefs and values.

Price Elasticity

The term ________ refers to how responsive demand will be to a change in price.

Acquisition

Through _____ a company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product.

Understand its consumers, markets, and competitors, and develop products that deliver superior value.

To create successful new products, a company must do which of the following?

Tailor its products to local tastes in China

To succeed in China, Pepsi had to ___________.

Benefits sought

Toothpastes claim they "whiten teeth," "fight bad breath," and "reduce plaque." Which base of segmentation is being used in this example?

Zone pricing

UPS charges different prices for shipping depending on which region of the United States the item is being shipped to. The more distant the city the package is being shipped to, the higher the price UPS charges. Which geographic pricing method is UPS using?

Vendor-managed inventory

Using ________, the customer shares real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries.

A private brand

Walmart created the Great Value brand for its food products and the Equate brand for it pharmacy, health, and beauty. Walmart does not manufacture any of these products. Which type of brand sponsorship is Walmartusing?

To show consumer perceptions of different brands on important product dimensions

What are perceptual positioning maps used for?

Warehousing, inventory management, transportation, and logistics information management

What are the four major functions of logistics?

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

What is positioning?

Assess customer needs and value perceptions.

What is the first step in a value-based pricing strategy?

Analyzing consumer needs

What is the first step in marketing channel design?

To create superior customer value

What is the purpose of differentiation?

To prevent unfair price discrimination

What is the purpose of the Robinson-Putnam Act?

Market-skimming

When Apple introduced its iPhone, it priced the new product at $599, considerably higher than either its iPod or competing cellular phones. Apple Computer was pursuing a(n) ________ new product pricing strategy.

Line extension

When Doritos comes out with new flavors of its tortilla chips, what brand development strategy did it use?

Sales would be slow and profits non-existent

When Dr. Lawncare developed his revolutionary new weed killer, he knew that during the introductory stage of the product lifecycle ___________.

Market-skimming

When a phone company releases its greatly anticipated new phone models at a premium price, only to discount them slowly over time, this is an example of a ________ pricing strategy.

Multichannel distribution system

When a single firm sets up two or more marketing channels to reach one or more customer segments, it is using a(n) ________.

Price gouging

When gasoline prices rise rapidly, angry customers often accuse the major oil companies of ________, or enriching themselves at the expense of consumers.

Psychographic segmentation

When marketers target segments such as sports fans, do-it-yourselfers, commuters, and wine enthusiasts, which base of segmentation are they using?

Targeted levels of customer service

When setting channel objectives, companies should state the objectives in terms of ________.

Product concept

Whereas a product idea is an idea for a possible product that the company can see itself offering to the market, a________ is a detailed version of the idea stated in meaningful consumer terms.

Product form

Whereas a round-trip economy seat on a flight from New York to London might cost $1,000, a business-class seat on the same flight might cost $4,700 or more. This type of segmented pricing strategy is known as________ pricing.

Suppliers

Which channel partners in a company's supply chain are upstream from a manufacturer or producer?

A product is anything offered to a market that might satisfy a need or want.

Which of the following correctly defines a product?

Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.

Which of the following describes a just-in-time logistics system?

Breakeven pricing

Which of the following is a cost-based pricing approach?

Reduce the price

Which of the following is a potentially effective action a company could take in response to a competitor's pricecut?

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

Which of the following is a reason that producers use marketing channels and channel intermediaries?

Modify the market, product offering and marketing mix.

Which of the following is an appropriate strategy during the maturity stage of the product lifecycle?

Enter new markets

Which of the following is an effective strategy during the growth stage of the product lifecycle to sustain rapidgrowth?

A Ford dealer complaining that another Ford dealer is advertising in its territory

Which of the following is an example of horizontal channel conflict?

If demand is elastic, sellers will consider lowering their price.

Which of the following is true regarding the price-demand relationship?

Innovation can be expensive and risky

Which of the following statements about new product development strategy is correct?

Customers have put increasing pricing pressures on many companies.

Which of the following statements about price is correct?

Training current employees better and hiring new ones with more skills can increase service productivity.

Which of the following statements about service marketing is correct?

Modified and improved products are considered new.

Which of the following statements concerning new products is correct?

Under oligopolistic competition, each seller is alert and responsive to competitors' pricing strategies and marketing moves.

Which of the following statements is correct regarding different types of markets?

For a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

Which of the following statements is true concerning new product pricing strategies?

Average cost tends to decrease with accumulated production experience.

Which of the following statements is true regarding costs?

Cutting prices in an industry loaded with excess capacity might lead to price wars.

Which of the following statements is true regarding initiating price cuts?

Wherever possible, the company should consider ways to meet higher costs or demand without raising prices.

Which of the following statements is true regarding initiating price increases?

Standardization decreases product design, manufacturing, and marketing costs.

Which of the following statements is true regarding standardizing products for international markets?

Consumer and business marketers use many similar variables, but business marketers uses additional variables to segment their markets.

Which of the following statements regarding segmentation is correct?

The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

Which of the following statements regarding socially responsible product decisions is correct?

Product attributes that communicate and deliver benefits to the consumer include quality, features, style, and design.

Which of the following statements regarding the important decisions in the development and marketing of individual products is correct?

More for less

Which value proposition is difficult to sustain in the long run?

Maturity

With respect to the product life cycle, the ________ stage is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers.

Full-line forcing

_____ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line.

Channel management

______ involves the processes associated with selecting, managing, and motivating individual channel members and evaluating their performance over time.

Exclusive dealing

______ is a strategy in which the seller requires that dealers not handle competitors' products.

Predatory Pricing

______ is the practice of pricing products below cost to harm competitors.

Product line

______ pricing is an appropriate strategy for companies that offer multiple products within a given category with varying levels of quality or functionality.

Reverse logistics

______ refers to processes that make it easier and more efficient for customers and resellers to reuse, recycle, refurbish, or dispose of broken, unwanted, or excess products.

Marketing logistics

______, also called "physical distribution," involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Capital Items

_______ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment.

Concept testing

_______ calls for testing new product concepts to groups of target consumers.

Deceptive pricing

_______ occurs when retailers set an artificially high "regular price" and then advertise a "sale price," which is actually close to their everyday price.

Psychographic segmentation

________ divides buyers into different segments based on social class, lifestyle, or personality characteristics.

Price

________ is the only element in the marketing mix that produces revenue.

Price

________ is typically considered the most flexible of the marketing mix elements.

Demographic Segmentation

________, which divides the market into segments based on variables such as age, life-cycle stage, and gender, is the most commonly used approach to segmenting consumer markets.