Marketing Exam 3

Developing marketing mixes

-nonprofits usually deal more with ideas than goods -distribution is targeted for clients -can be more creative

Product line

A group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations

Although it has a strong customer base, Sato Japanese Restaurant rarely attracts customers by methods other than word-of-mouth communication. The manager believes this can be explained by the restaurant's location in a rough area in the city and its run-down appearance. In other words, potential customers are most concerned about a) tangibles b) responsiveness c) empathy d) assurance e) reliability

A- tangibles

Promotion

Communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response

Protecting a brand

Marketers should design a brand name that they can protect easily through registration

Brand recognition

Occurs when a customer is aware that the brand exists and views it as an alternative purchase if the preferred brand is unavailable or if the other available brands are unfamiliar.

Early adopters

People who adopt new products early, choose new products carefully, and are viewed as "the people to check with" by later adopters

Product adaption process

The five-stage process of buyer acceptance of a product: (1) awareness, (2) interest, (3) evaluation, (4) trial, and (5) adoption

Target public

a collective of individuals who have an interest in or concern about an organization, product, or social cause

Product

a good, a service, or an idea received in an exchange.

Marketing channel

a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

Trademark

a legal designation of exclusive use of a brand

Brand

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

Individual branding

a policy of naming each product differently

Convenience product

a relatively inexpensive, frequently purchased item for which buyers want to exert only minimal purchasing effort

Promotion mix

advertising, personal selling, public relations, sales promotion

Family branding

all of the firm's products are branded with the same name or part of the name

Supply chain

all the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer

Brand licensing

an agreement whereby a company permits another organization to use its brand on other products for a licensing fee

Business services

are the intangible products many organizations use in their operations and include financial, legal, marketing research, information technology, and janitorial services

Process materials

are used directly in the production of other products

Component parts

become a part of the physical product and are either finished items ready for assembly or products which need little processing before assembly

Introduction stage

begins at a product's first appearance in the marketplace, when sales start at zero and profits are negative

Private distributor brands

brands initiated and owned by resellers. manufactures are not identified on the products

Distribution

component of the marketing mix focuses on the decisions and actions involved in making products available to customers when and where they want to purchase them

Accessory equipment

does not become part of the final physical product but is used in production or office activities

Specialty products

have one or more unique characteristics, and buyers are willing to extend considerable effort to obtain them

Installations

include facilities, such as office buildings, factories, and warehouses, and major nonportable equipment such as production lines and very large machines.

Late majority

includes skeptics who adopt new products because of economic necessity

Generic brands

indicate only the product category and do not include the company name or other identifying terms

Early majority

individuals who adopt a new product just prior to the average person. They are deliberate and cautious in trying new products.

Manufacture brands

initiated by producers to ensure that producers are identified with their products at the point of purchase

Product item

is a specific version of a product that can be designated as a distinct offering among an organization's products.

Brand equity

is the marketing and financial value associated with a brands strength in the market

Product life cycle

is the progression of a product through four different stages: introduction, growth, maturity, and decline

Co-branding

is the use of two or more brands on one product; marketers employ co-branding to capitalize on the branding of multiple brands

Heterogeneity

means variation in quality

Product development

phase five: the firm finds out if it is technically feasible to produce the product and if it can be produced at costs

Business analysis

phase four: the idea is evaluated to determine its potential contribution to the organization's sales, costs, and profits

Commercialization

phase seven: planning for full-scale manufacturing and marketing as well as preparing finalized budgets

Test marketing

phase six: the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation

Concept testing

phase three: the process in which a concept statement that describes a product or a service is presented to potential buyers or users to obtain their reactions

Screening

phase two: the most promising ideas are selected for further review

Decline stage

sales fall rapidly

Growth stage

sales rise rapidly and profits reach a peak and then start to decline

Brand name

that part of a brand that can be spoken, including letters, words, and numbers

depth of product mix

the average number of different products offered in each product line

Integrated Marketing Communications (IMC)

the careful coordination of all promotional messages for a product or a service to ensure the consistency of messages at every contact point at which a company meets the consumer

width of product mix

the number of product lines a company offers

Maturity stage

the sales curve peaks and start to decline and profits continue to fall

Characteristics of services

intangibility, inseparability, perishability, heterogeneity

Brand preference

is a stronger degree of brand loyalty. A customer definitely prefers one brand over another but is willing to accept a substitute

Product mix

the composite group of products an organization makes available to customers.

Brand insistence

the degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute

Laggards

the last adopters, who distrust new products

Communications channel

the medium of transmission that carries the coded message from the source to the receiver

Brand mark

the part of a brand that is not made up of words, such as a symbol or design

Product positioning

the place a product occupies in consumers' minds based on important attributes relative to competitive products

Your company makes personal hygiene products for young men. Your product line includes deodorants and shaving products. You are responsible for managing the company's relationships with the major retailers in the western U.S. region. In a recent meeting with a store manager you noticed young men selecting the company's deodorant product then moving down the aisle to select a competitor's body wash product. As you think about it more, it makes perfect sense that a young man buying deodorant would also be interested in a body wash product. Your company currently does not make a body wash product. Based on your in-store observations, which of the following product management actions would you recommend to take advantage of this deodorant and body wash linkage? a) a line extension b) new packaging c) a quality modification d) an aesthetic modification e) a functional modification

A- a line extension

Procter and Gamble markets shampoo under several different brand names, including Pantene, Herbal Essences, Head & Shoulders, and Aussie. For Shaving products, P&G markets several different razors under the Gillette brand, including Gillette Mach3, Gillette Fusion, and Gillette ProGuilde. They also use the Gillette name for shaving creams, aftershaves, deodorants, and body washes. P&G is using _______ branding for the shampoo category and _______ branding for the shaving category. a) individual; family b) manufacturer; private c) family; individual d) brand-extension; private e) individual; individual

A- individual; family

You recently began working as the marketing director for a nonprofit organization. Prior to this role, you always worked in for-profit organizations. You immediately recognize that marketing in a nonprofit environment is dramatically different than marketing in a for-profit environment. Which of the following statements is true regarding the differences in marketing in a nonprofit versus a for-profit environment?​' a) distribution decisions are the same in both types of organization b) Nonprofit organizations usually deal more with ideas and services than goods c) pricing strategies of nonprofit organizations are designed to match costs with revenues d) For-profit marketing offers greater opportunities for creativity than nonprofit marketing e) Marketing ideas and concepts are more abstract in for-profit organization

B- Nonprofit organizations usually deal more with ideas and services than goods

You are the head of marketing for a major oil company based in the United States. Recently, your company was involved in a major oil spill off the coast of Texas where millions of barrels of crude oil were accidentally released into the Gulf of Mexico. The negative publicity for your company has been fast and furious since the spill occurred. However, your company took a very proactive approach in managing the disaster and the resulting publicity. Now your CEO wants to assess how effective the company has been in repairing its image. Which of the following would you recommend to the CEO? a) a communications audit b) a consumer survey c) a public relations audit d) a press conference e) a social audit

B- a consumer survey

Alexandria has gone to the store to ship for a new backpack. She looks for the same brand she always bought in the past but notices that the backpack is now available in a variety of new colors. The backpack has undergone a(n) ______ modification

B- aesthetic

Because practically all marketers provide some services, ___________ typically do not exist in today's business environment. a) customer services b) pure goods c) tangible-dominant products d) service products e) pure services

B- pure goods

The use of heavy advertising in the promotion mix is least likely to occur in which product life cycle stage? a) introduction b) decline c) maturity d) growth e) plateau

C- maturity

A specialty product a) requires minimal effort to purchase b) is purchased frequently c) requires purchase planning, and the buyer will not accept substitutes d) is generally less expensive than the other items in the same product class e) promotes the purchaser to make comparisons among the alternatives

C- requires purchase planning, and the buyer will not accept substitutes

The Presto Company manufactures several types of household appliances including benders, waffle makers, and home deep fryers. Presto sells its products to retail store such as Kohl's, Macy's, and JC Penney's, through its own sales force. Kerry Wilson is one of Presto's salespeople, and is responsible for stores head quartered in Region 1 of the US. Kerry has just come from a monthly meeting where she has been informed about the new stove top grill that will be part of the next seasons lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials which demonstrate the new grill, in-store rebates, and a customer contest for the best grilled sandwich recipe. In addition, Kerry and other members will be given a free grill to use in their homes so they can become more familiar with it. Presto is also offering a free trip to NYC for their staff salesperson who has the highest dollar in sales to his or her stores. To encourage the retail stores to push this product, Presto will offer the retail store a $5 discount for each grill that the store purchases after the 60-day promotion is over. a) television commercials and the customer contest b) television commercials and the in-store rebate c) the customer contest and the in-store rebate d) the sales force contest and in the in-store rebate e) the sales force contest and the customer contest

C- the customer contest and the in-store rebate

When Silk Soymilk began packaging its chocolate milk in single serving sizes, the company chose drink boxes that did not need refrigeration. The boxes were only sold in shrink-wrapped sets of six. Single boxes were not available at grocery stores or convince markets. Once the silk chocolate product was selling well, they also began offering the Silk Soymilk vanilla flavor in the same type packaging. The Silk Soymilk brand, logo and look of the boxes were the same as its larger half gallon versions. The only difference in packaging style was the brown color for the chocolate milk and the color white for vanilla. Which of the following is not a function of the packaging strategy chosen by Silk Soymilk a) It protects and preserves the product b) It offers convenience to customers c) Its size and shape help make storage easier d) It is less harmful to the environment e) It most likely appeals to children and those with active lifestyles

D- It is less harmful to the environment

Karla tells Jeff that she likes his team's idea about a new three-lace running shoe but wants him to put together some figures regarding anticipated sales, costs, and resulting profits. She is asking Jeff to proceed to which stage of the new-product development process? a) idea generation b) screening c) commercialization d) business analysis e) test marketing

D- business analysis

A light bulb can be all of the following except a) a consumer product b) a business product c) either a business product or a business product d) a business product if it is used to light an assembly line in a factory e) a consumer product if it is used to light the office of the board of directors

E- a consumer product if it is used to light the office of the board of directors

Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2008 and began national distribution in 2009. About 18 months later, a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste. Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining inventory to a warehouse club. This would be an example of a(n) a) phase out products deletion strategy b) strategy for the maturity phase c) return for the maturity phase d) pullout product deletion policy e) immediate-drop decision

E- immediate-drop decision

All of the following are reasons a company would likely emphasize advertising in its promotion mix except a) the company's promotion budget is extensive b) the size of the product's target market consists of millions of consumers c) the companies products are seasonal in nature d) the company's customers are dispersed across a vast region e) the company has chosen exclusive distribution for its products

E- the company has chosen exclusive distribution for its products

Nonprofit marketing

Marketing activities conducted to achieve some goal other than ordinary business goals such as profit, market share, or return on investment

Raw materials

are basic natural materials that become part of a physical product

Shopping product

are items for which buyers are willing to expend considerable effort in planning and making the purchase

MRO supplies

are maintenance, repair, and operating items that facilitate production and operations, but do not become part of the finished product

Unsought products

are products purchased to solve a sudden problem, products of which customers are unaware, and products people do not necessarily think about buying

Consumer Product

are purchased to satisfy personal and family needs; they are classified according to how buyers generally behave when purchasing a specific item

Business Product

are purchased to use in a firms operations, to resell, or to use in the manufacture of other products; they are classified according to their characteristics and intended ueses in an organization

Innovators

are the first to adopt the new idea or program

Service quality

customers' perceptions of how well a service meets or exceeds their expectations

Trade name

the full legal name of an organization

Product differentiation

the process of developing and promoting differences between one's products and all competitive products

Idea generation

development of viable new product ideas

Brand extentsion

extending an existing brand name to new product categories