Marketing - Ch. 6-9
Marketers must consider external considerations in establishing pricing. Which of the following represents those external considerations?
The nature of the market and demand and other environmental factors
Service providers often face price competition. As a solution to this, service providers can further differentiate themselves based on which three characteristics?
The service offer, delivery, and image.
How do companies apply pricing strategies to accommodate differences in customer segments and situations?
They apply a variety of price adjustment strategies.
What are perceptual positioning maps used for?
To show consumer perceptions of different brands on important buying dimensions
The differentiation and positioning task consists of three steps: identifying ________ that create competitive advantage, choosing ________ on which to build a position, and selecting an overall positioning strategy.
a set of possible differentiations; advantages
The seven price adjustment strategies are _____, ______, _____, promotional pricing, geographical pricing, dynamic pricing, and international pricing.
allowance pricing, segmented pricing, psychological pricing
All products have a life cycle. The sales of a typical product follow __________________, which is made up of five stages.
an S-shaped curve
Broadly defined, a product is anything that can be offered to a market for ___________, or consumption that might satisfy a want or need. Products include not only physical objects, but also services, events, persons, places, organizations, ideas, or mixtures of these entities.
attention, acquisition, use
The strongest brands are positioned on ______.
beliefs and values
A brand's positioning must be continuously communicated to consumers. Although advertising can help, brands are maintained not by advertising, but by customers' ________.
brand engagement and brand experiences
Which of the following terms correctly describes the positive differential effect that knowing the brand name has on customer response to the product or the service?
brand equility
Companies have to think carefully when considering price changes. They must consider which of the following?
buyer and competitor reactions
Printer companies often charge a fairly low price for their inkjet printers (relative to costs) and a high price for replacement cartridges. These companies are using a strategy of ___________ pricing.
captive- product
External sources for new product ideas include _________.
competitors, distributors and suppliers, and customers
Firms with limited resources often target a market niche that is either ignored or unimportant to larger firms. This represents a(n) _______ strategy.
concentrated marketing
The advantages of standardizing products and services for international markets include _______________, lower manufacturing costs, and lower marketing costs.
consistent global image, lower product design costs
Value-based pricing begins with analyzing ___________.
consumer needs and value perceptions
Which of the following correctly describes the classifications into which products and services fall?
consumer products and industrial products
Consumer products are products and services bought by final consumers for personal consumption. Consumer product classifications include _______________, and unsought products.
convenience, shopping, specialty
Charles Revson of Revlon once said, "In the factory we make cosmetics; in the store we sell hope." Which product level is Revson referring to?
core customer value
Price ceilings are set by customer perception. Which of the following sets the floor for the price that a company charges?
costs
Many companies are now developing ________ programs to generate new product ideas.
crowdsourcing or open-innovation
Setting the base price for a product is only the start. The company must then adjust the price to account for ____________________________ differences.
customer and situational
Although business marketers use many of the same variables to segment their markets, they also use some additional variables, such as ________, ____________. _________, and personal characteristics.
customer operating characteristics, purchasing approaches, situational factors
Ideally, a company must carry out strong new product planning and set up a systematic new product development process that is _________ to find and grow new products.
customer-driven
Marketers use three major pricing strategies: ______________________.
customer value-based pricing, cost-based pricing, and competition-based pricing
The three major pricing strategies are ______.
customer value-based pricing, cost-based pricing, and competition-based pricing
______________________ is part of a company's decision on how it will create market offerings to deliver superior customer value.
differentiation
Once market segments have been selected, the company then must decide on _____________________________.
differentiation and positioning strategy
New product development consists of eight sequential steps. Which step reduces the number of ideas based on the company's criteria?
idea screening
When marketers create services marketing strategy, they understand they must execute on external marketing but also develop _______________________________.
internal strategies to motivate employees and interactive marketing to create service delivery skills among service providers
Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the _______ stage.
introductory
One important consideration in using a differentiated targeting strategy is that _______.
it can increase costs
Firms have four brand development choices. These are _____________.
line extensions, brand extensions, multibrands, and new brands
A company can use _________ by setting a low initial price to penetrate the market deeply and win a large market share.
market penetrating pricing
Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market share?
market penetration pricing
A company sets a high price on a new product it introduces to maximize revenue from various market segments. Which new product pricing strategy is the company using?
market skimming pricing
In pricing innovative new products, a company can use ________ by initially setting high prices to maximize the amount of revenue from a sufficient number of buyers willing to pay the higher price.
market skimming pricing
Companies need to consider many factors when choosing a market-targeting strategy. However, which targeting strategy is best depends on company resources, product variability, product life-cycle stage, as well as ________________________.
market variability and competitive marketing strategies
A company's pricing strategy is affected by internal factors such as ___________________.
overall marketing strategy, objectives, marketing mix, and other organizational considerations
Of the following, which is NOT one of the product-mix pricing situations?
penetration pricing
Another price adjustment strategy is ______________ pricing, where the company sells a product at two or more prices to accommodate different customers, product forms, locations, or times.
segmented
Good service companies understand the service profit chain, which links ________.
service firm profits with employee and customer satisfaction
Services are characterized by four key aspects: ______________________.
services are intangible, inseparable, variable, and perishable
Product
A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
___________________ are the two ways firms can obtain new products.
Acquisitions and new product development
Which of the following statements regarding the marketing of international products and services is correct?
Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets.
When a company builds a brand, it needs to make important decisions regarding the brand. Of the following, which is NOT one of those decisions?
Brand licensing opportunities
At which step does a company perform a review of the sales, costs, and profit projections for a new product to determine whether the new product is likely to satisfy objectives?
Business analysis
Like consumer markets, business markets are segmented. Which of the following describes the variables that marketers use to segment business markets?
Business demographics, operating characteristics, purchasing approaches, situational factors, and personal characteristics
Question 5, Warm-up 6.3.1 HW Score: 100%, 8 of 8 points Points: 1 of 1 Close To target the best market segments, the company first evaluates various factors related to market attractiveness. Of the following, which is NOT one of those factors?
Compatibility with company mission and vision
To target the best market segments, the company first evaluates various factors related to market attractiveness. Of the following, which is NOT one of those factors?
Compatibility with company mission and vision
To successfully implement a market-skimming strategy for a new product, which of the following conditions needs to be present?
Competitors are not able to enter the market quickly and undercut the high price.
In which targeting strategy does a firm go after a large share of one or a few smaller segments?
Concentrated marketing
In setting its overall pricing strategy, companies need to consider three factors: ______, ______, and ______.
Customer perceived value, costs, and competitors' pricing strategies
_______ of the product's value set the ceiling on pricing, while _______ set the floor.
Customer perceptions; costs
In addition to segmentation and targeting, there are two other major steps in designing a customer value-driven market strategy: ________ seeks to create superior customer value in the mind of the consumer, and ________ seeks to firmly place the market offering in the minds of target cu
Differentiation; positioning
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their prices.
What are the four major steps in designing a customer value-driven marketing strategy, in the correct sequence?
Market segmentation, market targeting, differentiation, and positioning
Which stage of the product life cycle normally lasts longer than the previous stages and poses strong challenges to marketing management?
Maturity
Which of the following would be an appropriate strategy in the maturity stage of the product life cycle?
Modify the market, product offering, and marketing mix.
When Microsoft or Apple sells software as a package, it is engaging in what type of pricing?
Product bundle pricing
A new product may fail for many reasons. Which of the following is NOT one of them?
Rapid market acceptance
What is market segmentation?
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
The totality of a company's product lines and items offered to customers is known as its _________________.
product mix
To be more socially responsible, some companies are appointing _____________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
product stewards
Companies must make important decisions about their individual products and services. Individual product decisions involve ________________, and product support services.
product attributes, branding, packaging, labeling
Marketers can apply the ________ as a useful framework for describing how products and markets work and help develop good marketing strategies for the different life-cycle stages.
product life-cycle concept
Social responsibility includes public policy issues and regulations involving _________________, and product warranties.
acquiring or dropping products, patent protection, product quality and safety
In building brands, companies need to make decisions about four key powerful areas: ________________________________.
brand positioning, brand name selection, brand sponsorship, and brand development
The new product development process consists of sequential steps. The first step is _______ and the last step is ______________.
idea generation: commercialization
Services are characterized by four key aspects, with each posing problems and marketing requirements. The four key aspects are ________________________.
intangible, inseparable, variable, and perishable
Once a company has decided which segments to enter, it must decide on its ________ strategy.
positioning and differentiation
The distinction between a consumer product and an industrial product is based on the ________ for which the product is purchased.
purpose
Companies find and develop new product ideas from a variety of sources. Which of these is an internal source for new product ideas?
r & d
Segmentation provides a powerful tool for marketers of all kinds. It can help companies identify and better understand key customer segments, ________________ to their specific needs.
reach them more efficiently, and tailor market offerings and messages
Beyond the market and the economy, what other factors in its external environment must a company consider when setting prices?
resellers and how they react to various prices; the government; and various social concerns.
Major variables used to segment consumer markets include which of the following?
Geographic, demographic, psychographic, and behavioral
______________________ is part of a company's decision on how it will create market offerings to deliver superior customer value.
Differentiation
Services marketing strategy calls not only for external marketing, but also for internal marketing to motivate ________ and interactive marketing to create service delivery skills among ________.
employees; service providers
Which of the following correctly identifies the levels for which marketers make product and service decisions?
individual product, product line, and product mix decisions
When Dr. Lawncare developed his revolutionary new weed killer, he expected that, during the introductory stage of the product life cycle, ___________.
sales would be slow and with negative or low profits
To determine which market segments to target and serve, the company first evaluates each segment's ________.
size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources
The first part of a marketing strategy statement describes the ________ of a new product.
target market
Once segments have been identified, market ________ evaluates each segment's attractiveness and selects one or more to serve.
targeting
External factors when considering pricing include ________________________________ such as the economy, reseller needs, and government actions.
the nature of the market and demand and environmental factors such as the economy, reseller needs, and government actions.
For services, there is a form of captive-product pricing known as _____ pricing.
two part
The full positioning of a brand is called the brand's ________, which is the full mix of benefits on which a brand is differentiated and positioned.
value proposition
The number of product lines a company manages is the product mix ______. The total number of items a company carries within its product line is the product mix _____.
width; length
When a company lengthens a product line by adding more items within that line's current range, the company is ________.
filling the line
There are four major variables that might be used in segmenting consumer markets. Those major variables are ________ variables.
geographic, demographic, psychographic, and behavioral
The product development process starts with ________. Next comes ________, which reduces the number of ideas based on the company's own criteria.
idea generation; idea screening
Other internal factors that influence pricing decisions include ____________.
the company's overall marketing strategy, objectives, and marketing mix, as well as organizational considerations
The ________________________ is a brand's full positioning or the full mix of benefits on which the brand is positioned.
value proposition
Marketers must make important decisions when developing individual products and services. Which of the following correctly identifies those important decisions?
Product attributes, branding, packaging, labeling, and product support services
___________ are payments or price reductions that reward dealers for participating in advertising and sales-support programs.
Promotional allowances
When effective programs can be designed for attracting and serving market segments, these segments are ________.
actionable
Because markets and consumers worldwide differ widely, companies usually respond to these differences by ________.
adapting their product offerings
Market segmentation is the act of dividing a market into distinct groups of buyers who have ________ and who might require separate marketing strategies or mixes.
different needs, characteristics, or behaviors
Combining products for one price can promote the sales of products consumers might not otherwise buy, but the combined price must be low enough to get them to buy the package. This is known as ______.
product bundle pricing
In the new product development process, ideas that pass the idea screening step continue through ________. Strong concepts proceed to ________.
product concept development; marketing strategy development
Marketers must consider potential product issues related to social responsibility. Of the following, which is NOT one of the product issues associated with social responsibility?
product differentiation and positioning
There are several types of product mix pricing situations, which include ______________, by-product pricing, and product bundle pricing.
product line pricing, optional-product pricing, captive-product pricing
The stages of the product life cycle are ______________________________.
product development, introduction, growth, maturity, and decline
