Marketing Ch 9 and 14

market

a group of people with sufficient purchasing power, authority, and willingness to buy

As the chief marketing officer at Chevrolet, you'd like to determine how much the engineering team's redesigned dashboards are going to influence your sales forecasts. You've decided to use the Delphi technique, but you're not sure who to include in your research. Of the following groups who might provide useful insights, which group are you least likely to turn to for feedback? a. Academic researchers in automotive engineering b. Vision and visual processing scientists c. Experts in efficient environmental design d. Audio/hearing specialists

audio/hearing specialists

sales force composite

qualitative forecasting method based on the combined sales estimates of the firm's salespeople

jury of executive opinion

qualitative forecasting method that assesses the sales expectations of various executives

Delphi Technique

qualitative forecasting method that gathers several rounds of feedback from experts inside and outside the firm

survey of buyer intentions

qualitative forecasting method that samples opinions among groups of current and potential customers concerning purchasing plans

trend analysis

quantitative forecasting method that estimates future sales through statistical analysis of historical sales patterns

value proposition

an explanation of how consumers will benefit from the product and why the company is uniquely qualified to provide those benefits

Kyle plans to buy new tires for a car that his family uses for camping trips. These tires are of the same type like those that are used on General Motors commercial trucks and can be purchased from Industrial Tire Company. The tires that Kyle will buy for his car can be classified as _____ products. a. consumer b. business c. MRO d. service

consumer

As the marketing director for a highly respected menswear manufacturer, you've been asked to offer your insights on pricing and positioning the company's first line of men's cologne. Your company's cologne will be sold in department stores, and for a number of reasons, you've suggested pricing it slightly higher than comparable competitors. What is the disadvantage to this strategy? a. You will need to engage in a costly advertising campaign to promote these higher-priced products. b. It is understood that you will earn a lower gross profit margin with higher-priced products. c. Given that colognes and fragrances are a category of product that is subject to competitive pricing, you will be forced to lower your prices eventually. d. It is understood that there will be less demand for higher-priced products

d

Psychographic segmentation divides a population into groups based on: a. their income and expenditure patterns. b. their geographic location. c. their use of the product. d. their attitudes, values, and lifestyles.

d

The most common method of market segmentation is: a. psychographic segmentation. b. demographic segmentation. c. economic segmentation. d. product-based segmentation.

demographic segmentation

_____ defines consumer groups according to variables such as gender, age, income, occupation, education, sexual orientation, household size, and stage in the family lifecycle. a. End-use segmentation b. Geographic segmentation c. Demographic segmentation d. Product-based segmentation

demographic segmentation

A demand is said to be inelastic when the: a. total cost and total revenue are equal at all levels of demand. b. elasticity of demand is greater than 1. c. demand curve and the supply curve do not intersect. d. elasticity of demand is less than 1.

elasticity of demand is less than 1

skimming pricing strategy

intentionally setting a relatively high price compared with the prices of competing products

unfair-trade laws

laws which require sellers to maintain minimum prices for comparable merchandise

Undifferentiated marketing is also called _____. a. concentrated marketing b. micro marketing c. mass marketing d. societal marketing

mass marketing

Behavioral segmentation focuses on the demonstrated behavior of consumers. Looking at what consumers actually do, rather than their characteristics, brings us much closer to the actual purchase. Which of the following is NOT one of the approaches to behavioral segmentation? a. Media habits b. Usage rate c. Brand loyalty d. Benefits sought

media habits

Vicks advertises its NyQuil brand is THE nighttime cold remedy. Vicks wants you to think of NyQuil whenever you need a "nighttime, sniffling, sneezing, aching, coughing, stuffy-head, fever, so you can rest medicine." NyQuil is the product for this situation. NyQuil is using a_______ positioning strategy. a. competitive b. product use or application c. product specific d. value

product use or application

A retailer wants to increase the number of customers shopping in her store. Which of the following has the greatest potential for success? a. Price flexibility b. Prestige pricing c. Unit pricing d. Promotional pricing

promotional pricing

In recent years, consumers have become increasingly concerned about the use of pesticide and other chemicals in the agricultural industry. Some are worried that the increased use of chemicals has led to higher incidences of disease such as cancer. Consumers who share these opinions will often purchase products labeled "organic" and "natural." Marketers who are utilizing these words on product packaging or in their promotions are implementing _______ segmentation. a. benefit b. demographic c. psychographic d. geographic

psychographic

demand

the amounts of a product that consumers will purchase at different prices during a specified time period

market segmentation

the division of the total market into smaller, relatively homogeneous groups

In the early 1900s, Ford Motor Company offered a single car for all customers - the Model T. Henry Ford is claimed to have said "Any customer can have a car painted any color that he wants so long as it is black." At that point, Ford took a(n) ______ approach. a. undifferentiated marketing b. consolidated c. target marketing d. market concentration

undifferentiated marketing

State laws requiring sellers to maintain minimum prices for comparable merchandise are called _____ laws. a. tax-exemption b. price-discrimination c. loss-leader d. unfair-trade

unfair-trade

A skimming pricing strategy is more commonly used by firms to: a. set a market-entry price for distinctive goods or services with little or no initial competition. b. set a relatively low price for a product when they enter new markets characterized by dozens of competing brands. c. reduce the raised prices of products to the original level. d. set stable wholesale prices that undercut offers competitors make to retailers.

a

Robinson-Patman Act

a Depression-era law that prohibits price discrimination when selling the same product in the same amount to two different customers

In your regular goods and services consumption activities, you purchase products from the wholesaler for resale and for use in your store's daily operations. You also purchase products that you will feature in the gift baskets you make. On the basis of this information, which of the following best describes the market component you are part of? a. Manufacturing b. Professional c. Resale d. Consumer e. Business

business

Jacob is the facility manager for a senior living facility and is responsible for maintaining the facility and ensuring that it looks its best. He likes to repaint all surfaces in the facility every two years and has an exclusive contract with Sherwin Williams who supplies the paint and materials. The paint and materials that Jacob purchases from Sherwin Williams to be utilized in the senior living facility would be classified as _____ products. a. ​business b. ​shopping c. ​durable d. ​consumer

business

The lumber that a carpenter purchases to make a table for a customer can be classified as a(n): a. impulse product. b. consumer good. c. business product. d. final product.

business product

As the chief marketing officer for one of the most successful candy manufacturers in the country, you know how important Valentine's Day sales are to your organization. You are somewhat concerned about next year's sales, however, because one of your major competitors launched a new candy last year that's been tremendously popular, and you suspect they're going to roll out a bite-size version just in time for this candy lover's holiday. Is trend analysis still a good technique for you to use in forecasting sales for next year? a. Yes, because at this point there's no reason to assume that next year's sales will be affected by the competition. b. No, because it's a given that your competitor is going to take a huge bite out of your sales, making it impossible to accurately forecast using trend analysis. c. No, because this has always been a deeply flawed technique that produces inaccurate results. d. Yes, but you should be prepared for your forecast to be inaccurate because a major change in the marketplace could occur.

d

Which of the following is utilized to help managers position products by graphically illustrating consumers' perceptions of competing products within an industry? a. Differentiating map b. Repositioning graph c. Positioning map d. Separation marketing graph

positioning map

loss leaders

pricing tactic where goods are priced below cost to attract customers to stores in hopes they will buy other merchandise at regular prices

Lands End makes a variety of products at different price points, but one thing that remains consistent - the guarantee. In fact, the company clearly states "Guaranteed. Period®. We want nothing less than your absolute satisfaction. If you're not satisfied with any item, simply return it to us at any time for an exchange or refund of its purchase price." Lands End feels its guarantee is the best in the business. This guarantee is part of Lands End ______ positioning strategy.¶ a. product attribute b. key market characteristic c. product application d. product use

product attribute

consumer products

products bought by ultimate consumers for personal use

business products

products purchased for use either directly or indirectly in the production of other goods and services for resale

Elasticity

the measure of the responsiveness of purchasers and suppliers to price changes

elasticity of demand

the percentage change in the quantity of a product demanded divided by the percentage change in its price

price discrimination

when a supplier offers the same product to two buyers at two different prices

brand loyalty

consistent preference for one brand over all others

Behavioral Segmentation

dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

Compared to undifferentiated marketing, the firm that practices differentiated marketing may generally expect: a. greater promotional costs. b. lower inventory costs. c. lower total production costs. d. less sales by segment.

greater promotional costs

size and purchasing power

if there aren't enough people interested, you won't make a profit and do they have enough money for the product or service being sold

psychological pricing

pricing tactic based on the belief that certain prices or price ranges make products more appealing to buyers

A positioning map: a. is used primarily by companies utilizing undifferentiated marketing strategies. b. outlines how to introduce a new product to the marketplace. c. can be used only for already successful products in the market. d. shows how consumers view a product relative to competitive products.

d

_____ pricing is a pricing policy in which products are offered to consumers at less than cost to attract them to stores in the hope that they will buy other merchandise at regular prices. a. Odd b. Variable c. Skimming d. Loss leader

loss leader

Marketers obviously want to have products available where customers live. Hence, retail store site selection is critical for bricks and mortar retailers. Further, consumers in urban areas, suburban areas, and rural areas often have different wants and needs. Retailers not only calculate how far apart stores need to be but also what merchandise is carried by different stores based on geographic areas. These retailers are making decisions based on what element of geographic segmentation? a. Market density b. Market climate c. Market potential d. Market behavior

market density

Oscar Mayer has recently developed a new snack product that's targeted to kids and young adults as a healthy, protein-based after-school or pre-dinner snack. They expect the product to complement their Lunchables product line and appeal to teen-age or college-age consumers who think of Lunchables as just for younger kids. In order to promote product trial and subsequent adoption, the company plans to use a relatively low entry price compared to the competition. What type of pricing strategy does Oscar Mayer plan to utilize? a. Skimming b. Everyday low pricing c. Competitive pricing d. Penetration

penetration

concentrated marketing

selecting a single market segment and concentrating efforts on profitability satisfying that segment

penetration pricing

setting a lower price than competitive offerings in order to stimulate demand and market acceptance

Which of the following products would be the best choice to be marketed using an undifferentiated marketing strategy? a. Table salt b. Healthy snack foods c. Imported wine d. Luxury automobiles

table salt

Marketers applying a positioning strategy want to: a. emphasize a product's unique advantages and differentiate it from competitors' options. b. make their product look as much like the market leader as possible. c. identify the different product attributes desired by different market segments. d. target only the loyal users of the product.

a

Which of the following is true of promotional pricing? a. It uses lower-than-normal price as a temporary component in the selling strategy. b. It promotes goods and services at specific price ranges based on the belief that certain prices are more appealing to consumers. c. It sets a high price for products that offer unique potential ability. d. It uses extensive promotional allowances to get channel members to promote the product.

a

Which of the following statements is true about the forecasting technique known as the "test market"? a. It provides realistic information on actual purchases rather than on customers' intention to buy. b. It involves giving out free samples and surveying consumers after they've tried or used the product. c. Tests must be conducted in dozens of markets across the country, making the technique both time-consuming and expensive. d. It is a qualitative technique.

a

Brandon recently completed law school, passed the bar exam and began working for a prestigious law firm in Dallas, TX. The firm has a strict dress code and Brandon is required to wear business suits, dress shirts, ties, and dress shoes. He is investing in a new wardrobe and visited Men's Discount Warehouse to purchase new clothes. He shared his situation with Tim, his sales representative, and Tim told him that if he bought 2 suits, he would receive 2 dress shirts, 3 ties, and 2 pairs of socks for free. Which of the following statements is TRUE regarding this example? a. The Robinson-Patman Act prohibits this activity as it would be considered price discrimination b. Promotions such as this are legal when differences in price reflect cost differentials c. This practice would likely drive competitors out of business d. Retailers are restricted from using bundled pricing

b

Personal training is your life, but you haven't increased your hourly rate since you started six years ago. You're still charging $50 an hour, when you really should be charging $80, given the excellent results you get. Based on what you know about the various factors that influence elasticity of demand, you: a. decide people think of your services as a luxury, which means that demand is elastic and you can only raise your rate to $55 an hour. b. aren't sure how elastic demand is, which means it would be best to raise your prices incrementally over the next year. c. realize that elasticity is irrelevant, and that people will agree you're worth the $80 an hour. d. decide people think of your services as a necessity, which means that demand is fairly inelastic and it would be safe to increase your rate to $65 an hour.

b

Which of the following statements is true about the forecasting technique known as the "jury of executive opinion"? a. It is a quantitative technique. b. Contributors may lack the background knowledge and experience to make meaningful predictions. c. It is time-consuming and expensive to implement. d. Employees at nearly all levels of the organization contribute their opinions, which is what makes this technique highly accurate.

b

Long before the invention of iPhones, iPads, and iWatches, Apple was charging a premium for its personal desktop computers, which performed the same functions as other PC brands. Of the following, which is the least likely motivation for this pricing strategy? a. Apple wanted to project a prestigious, exclusive brand image. b. Apple was able to earn higher gross profit margins on its computers. c. Apple needed to recoup its research and design investments faster. d. Apple was comfortable creating a smaller supply for a lower demand.

c

Which of the following statements is true about the forecasting technique known as "trend analysis"? a. It requires very expensive computing equipment and data researchers. b. It is a qualitative technique. c. It cannot be used to forecast sales of new products. d. One advantage of this technique is that it assumes that conditions in the future will remain as they have been in the past.

c

Which of the following statements is true about the forecasting technique known as the "sales force composite"? a. It is only valuable when applied to a very small geographic region. b. Because salespeople are concerned about how estimates will influence perceived performance, they typically inflate their estimates. c. It is based on the belief that the organization's members who are closest to the marketplace will have the best insights into expected short-term sales. d. It is a time-consuming method because it involves so many members at all levels of an organization.

c

You own an apartment complex, and you want to increase the monthly rent on all units by $50 a month. When you ask the building's on-site manager, Janette, whether she thinks it's okay to raise the rent, she says that demand for rental housing is elastic. What is she saying you should do? a. People are more tolerant of price changes on big-ticket items such as housing, so it's okay to raise the rent. You won't see a change in demand. b. People won't be able to find a close substitute to your apartments, so they'll have to absorb the price increase when you implement it. c. People are sensitive to price changes on big-ticket items such as housing, so you should be prepared for a drop in demand if you raise the rent. d. Housing is perceived as a necessity, so a change in price will have relatively little effect on demand. Raising the rent will have no repercussions.

c

Cecile, the chef at Chez Cecile, shops at the same farmers market that you do to buy fresh items for her restaurant. Cecile seems very knowledgeable about the vegetables she purchases, and you have started to buy the same items she does for your own consumption. When you buy vegetables for your own use, they would be considered: a. a business product. b. an impulse purchase. c. a professional service. d. a consumer product.

consumer product

The Noble GM car dealership has been in your family for three generations. Your biggest competitor is the massive Royal Honda/Toyota/Kia/Mazda dealership across town. For each of the past eight weeks, you've noticed that the team at Royal has been advertising a couple of brand-new vehicles for about half of their retail sticker prices, a tactic that's attracting all of your potential customers to Royal. What can you do about it? a. Counter their pricing tactic by competing on other elements in the marketing mix, such as customer service b. Match their prices, even though you can't afford to lose this much money on even a few vehicles each week c. Report Royal to the state since their price discrimination tactic may be violating federal fair trade laws d. Report Royal to the state since their loss-leader pricing tactic may be violating the state's unfair trade laws

d

The owner of BargainSmartphones.com is determined to drive competitors such as CheapPhones.com out of business. He has plenty of money to invest in building his business, so he has instructed his marketing manager to slash prices by 25% to 50% on nearly every product until there aren't any other online cell phone retailers left. Which of the following statements is true about this situation? a. This business owner is probably guilty of tax evasion. b. This business owner is most likely guilty of price discrimination. c. This business owner could be using illegal loss-leader pricing tactics. d. This business owner is probably violating the Robinson-Patman Act.

d

You're the chief sales and marketing officer for Kia Motors. You've decided to price the standard, gas-powered Optima at $22,500. The company is also offering a plug-in hybrid model, which costs an extra $3,500 to manufacture, including the cost of R&D. What price do you assign to the plug-in hybrid, and why? a. The Optima is your brand's low-end model, so you're pricing the Optima plug-in hybrid at $26,000 to fit with consumers' expectations. b. Consumers will not perceive a difference in the value of the two models, despite differences in manufacturing, so you price the plug-in hybrid equal to the standard model at $22,500. c. New technology, like that found in the plug-in hybrid, is perceived as more valuable, so you price the vehicle at $28,500. d. Eco-friendly products are perceived as more valuable and prestigious, so you're pricing the plug-in hybrid at $35,200.

d

market density

The number of potential customers within a unit of land area

Bath & Body Works brand shower gels retail for about $12.50 a bottle, while Suave Naturals shower gels retail for about $3.00 a bottle. A recent survey conducted by Suave revealed that many people enjoy the Suave gel fragrances just as much as the Bath & Body Works fragrances. Why might some people still be willing to pay a higher price for the Bath & Body Works products? a. The higher price of Bath & Body Works products will make some people perceive them as better quality. b. The lower price of Suave products indicates that they are made from lower-quality materials. c. It is widely known that products sold in exclusive boutiques, such as Bath & Body Works, are better than products sold in grocery stores, such as Suave. d. The higher price of Bath & Body Works products guarantee they work better.

a

Your friend Claire has just shared that she dreams of owning a world-famous Hermes Birkin handbag someday. When you inform her that there is a waiting list for these exclusive handbags, which usually sell for $12,000 and up, she says she's waiting for them to go on sale. What do you know about pricing that would influence how you respond? a. Manufacturers of high-end, exclusive brands usually do not allow discounting to protect the prestige of the brand, so you should tell Claire that she probably won't ever see a sale. b. Prices usually drop when demand drops, so you should encourage Claire to wait for those conditions. c. The high price of this product indicates exceptional quality and prestige, so you would encourage Claire to pay full price for the handbag. d. High-end, exclusive brands are always expensive, even when they're on sale, so you would discourage her from spending that much money on a handbag.

a

positioning map

a graphical illustration of consumers' perceptions of competing products within an industry

undifferentiated marketing

all customers are targeted using a single marketing mix

Uber offers its customers "the smartest way to get around." By stressing this notion and the ease and convenience of the Uber experience of getting one where they need to go, the organization is establishing its: a. market entry strategy. b. value proposition. c. target marketing approach. d. key market characteristic.

value proposition

product-line pricing

pricing tactic where the firm sets a limited number of prices for a selection of merchandise

While different approaches to segmentation are available to marketers, sometimes a combination of these approaches might be very effective. One such approach blends demographics, consumer lifestyle behavior, media usage, and shopping habits to place households into one of 66 identified segments. This approach is known as: a. PRIZM. b. multimedia classification system. c. psycho-demographics. d. demo-geo segmentation.

PRIZM

A basic distinction in types of markets is between markets that purchase the item for their own personal use and those that purchase the item for use either directly or indirectly in the production or distribution of other goods or services for resale. For example, when Logan stopped at the gas station to fill up his car before heading home for the weekend, they gas was for his personal use. However, when Brandon filled up his car with gas before a night of working as an Uber driver the gas was actually used to provide a service for sale. In this case, gas was: a. a marketing product for Logan and a commercial good for Brandon. b. a consumer product for Logan and a business product for Brandon. c. a consumer product for Logan and a marketing product for Brandon. d. gasoline is always a consumer product by definition.

b

That guy! Your brother-in-law is finally fulfilling his dream - opening Giordini's Italiano Ristorante - and he's put you in charge of marketing. He says he wants to use something called penetration pricing to launch his business. Of all the penetration pricing ideas you come up with, which one are you least likely to use? a. Creating a local radio commercial advertising free desserts for first-time visitors b. Pricing entrees exactly the same as the other two Italian restaurants in town c. Inserting two-for-one dinner coupons in a local mailer d. Offering a 50% discount off the first pizza when you set up an online account

b

June knows that the students who patronize her campus ice-cream shop are looking to socialize as much as to consume a treat. In her advertising, she shows images of customers enjoying each other's company. June is segmenting based on: a. 80/20 principle b. Loyalty c. Benefits sought d. Usage e. Pareto's Law

benefits sought

Demand for the hiking sandals marketed by the SoftShoe Company is highly elastic. As a pricing strategy consultant, you have been hired to help the firm reduce this elasticity. Choose the recommendation you would be least likely to make. a. Introduce a unique sandal that is custom-made for hikers with significant foot problems, such as deformed toes or large bunions. b. Market the sandal as a prestigious luxury for hikers. c. Increase the sandal's price. d. Promise to undercut the price of any comparable brand. e. Market the sandal as a necessity for hikers.

c

When you launched ImagineIt five years ago, you knew your revolutionary mini 3D printers would be wildly popular with home users, so a skimming pricing strategy was the obvious choice. Since then, a couple of competitors have entered the market, and supply has pretty much caught up with demand. Where do you go from here? a. Maintain your pricing strategy, which has been very successful b. Switch to a penetration pricing strategy to undercut your competitors c. Lower your prices to be competitive with others on the market d. Add more bells and whistles to your printers so you can continue to justify the higher prices

c

Your company manufactures umbrellas, among other accessories. Six months ago, you projected sales of 5,000 units of your $16 umbrellas over the course of a year, so you produced 5,000 umbrellas. But so far you've sold less than half. What does this mean, and what is the best way to address the situation? a. Demand of this product at this price is less than anticipated, so you should produce fewer umbrellas in the future. b. Supply of this product at this price is too great and competition too intense, so you should discontinue making umbrellas. c. Demand of this product at this price is less than anticipated, so you should drop the price. d. Demand of this product at a higher price must be greater, so you should start marketing your umbrellas as a premium product sold at a higher price point.

c

You've started a business on your college campus to sell luxurious blue dorm room rugs with the college logo. You plan to target male freshmen who come from local towns, like the color blue, can afford luxury products, want rugs for their rooms, and are enthusiastic about boosting the school. You can easily and efficiently promote to all freshmen, including this segment, with Facebook and other social media tools. But your marketing professor cautions that you may be unable to meet certain criteria for effective segmentation. Which criteria does she cite? a. ​The segment must be certified. b. ​Your plan is unlikely to meet any of the criteria for effective segmentation. c. ​The segment must be large enough to offer significant profit potential. d. ​The segment must present measurable purchasing power and size. e. ​The marketer must be able to promote effectively to the segment.

c and d

Goods and services purchased by the ultimate consumer for personal use are called _____ products. a. business b. primary c. consumer d. secondary

consumer

A junior member of your marketing department has recommended demographic segmentation for your fast food brand. In a memo, he wrote: "We should be marketing to females who are Hispanic, low-income, unmarried, and have four or more children." You express at least one strong concern about this recommendation. What concern(s) do you express? a. ​Marital status is not a demographic segmentation variable. b. ​Ethnicity is not a demographic segmentation variable. c. ​The recommendation is clearly outdated. d. ​The recommendation could lead to stereotyping and market alienation. e. ​Gender is not a demographic segmentation variable

d

At a meeting with your fellow executives at KFC, you're discussing introducing a new low-fat grilled chicken nugget option, which is significantly different from the company's usual menu items. The CEO wants to get an accurate sales forecast for the product before giving it the green light. Of the following arguments in favor of using various techniques, which one makes the most sense to you? a. Taylor recommends getting sales forecasts from store managers, a form of sales force composite, since they're so familiar with KFC customer preferences. b. Alex suggests surveying potential buyers since the company has access to so many consumers. c. Bruce points out that using data from other similar products to conduct a trend analysis would be the least expensive choice. d. Anya claims that test marketing in a few select cities will provide the most realistic information on actual purchases.

d

Market segmentation has interested you ever since your first marketing course, and you want to work for the type of organization that uses this technique. This means you should avoid pursuing a job with: a. ​Wholesale business organizations b. ​Manufacturing business organizations c. ​Retail business organizations d. ​You could pursue a job with any of the above, since all would use market segmentation. e. ​Not-for-profit organizations

d

psychographic segmentation

dividing the market using groups' values, attitudes, and interests

North Face is a well-known brand affiliated with active lifestyles such as backpacking, snow skiing, and camping. The company's products are available in a wide number of retail outlets as well as their company-owned specialty stores. The mix of products sold in the retail outlets varies widely depending on the market location. For example, stores in Northern California stock technical products suitable for customers who are avid backpackers, hikers, and rock climbers while retailers in the Midwest states offer a greater selection of apparel. What type of segmentation is reflected by stores carrying the North Face brand? a. Geographic b. Ethnic-related c. Product-related d. Age-related

geographic

Did you ever notice that there are many names for carbonated beverages? Consumers in different areas of the United States might call a carbonated soft drink soda, pop, soft drink, cold drink, or coke (in a generic sense that covers all carbonated beverages). Knowing this, marketers can change their terminology to suit the consumers. These differences show the importance of what type of geographic segmentation? a. Market climate b. Market density c. Market region d. Marketing potential

market region

The division of the total market into smaller, homogenous groups is called _____. a. market segmentation b. market capitalization c. customer aggregation d. brand segmentation

market segmentation

A penetration pricing strategy is called _____ pricing when it implements the premise that a lower-than-market price will attract buyers and move a brand from an unknown newcomer to brand-recognition or brand-preference stage. a. market-minus b. EDLP c. FOB d. market-plus

market-minus

competitive pricing

pricing strategy designed to reduce emphasis on price as a competitive variable by matching competitors' prices and focusing on other ways to differentiate products

Starbucks marketing itself as "premium coffee" beverage retailer is an example of a positioning strategy based on _____. a. product class b. product life cycle stage c. product homogeneity d. product users

product class

Many other students in your class have demographic characteristics very similar to you. You are likely the same age, same level of education, same ethnic background, and so forth. However, you may have very different attitudes, interests, and opinions. For example, you may have little in common regarding your political opinion, taste in music, or hobbies you enjoy. Recognizing these differences are related to consumer purchase activity will lead a company to use: a. geographic segmentation. b. psychographic segmentation. c. behavioral segmentation. d. demographic segmentation

psychographic segmentation

positioning

seeks to put a product in a certain position, place, or in the minds of prospective buyers

A television commercial shows several enthusiastic teens smiling widely and speaking in turn directly to the camera. Using the featured skincare product has changed their lives! It costs more than what you find in the corner drugstore, but it is worth every penny! After weeks of trying one product after another, embarrassed by acne breakouts and shy about socializing with others, now they have clear faces with a healthy-looking glow! What form of product-related segmentation has driven the development of this marketing campaign? a. Segmenting by brand loyalty b. Segmenting by psychographics c. Segmenting by benefits sought d. Segmenting by demographics e. Segmenting by geographic location

segmenting by benefits sought

demographic segmentation

segmenting markets by age, gender, income, ethnic background, and family life cycle

geographic segmentation

segmenting markets by region of a country or the world, market size, market density, or climate

Lenovo is developing a new tablet computer that they believe will revolutionize mobile computing. Since the company believes there is little direct competition for this new product, they plan to set a high price in comparison to other computer models. Lenovo is using a _____ pricing strategy. ​ a. ​market-minus b. ​penetration c. ​skimming d. ​competitive

skimming

differentiated marketing

targeting several segments using individual marketing mixes

Quantitative Forecasting

techniques that rely on statistical data, such as past sales or results from small tests

Qualitative Forecasting

techniques that rely on subjective data that reports opinions rather than using statistical data

supply

the amounts of a product that will be offered for sale at different prices during a specified period

benefits sought

the process of grouping customers into market segments according to the benefits they seek from the product

usage rate

the quantity consumed or the number of store visits during a specific period

target market

the segment of consumers most likely to purchase a particular item

market size

the total level of sales of all producers within a market