Marketing Exam Test 2
Performance Inc sells its newest athletic shoe styles to the Sneaker Store and distributes dated or slightly defective merch through Sports Discounters. Performance Incs main competitor is Topnotch Manufacturers. Performance Inc also markets its products through the company website. They decide to offer the short-term online promotion to encourage consumers to buy their newest athletic shoes, promoting a 20% discount off current retail prices. In such a distribution channel, which would be considered a vertical conflict?
A conflict between Perfomance Inc and the Sneaker Store
Which of the following would be considered an upstream partner in a company's supply chain?
A firm that provides technical expertise in the production of a product
Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using the _____ approach to price the new moisturizer.
Cost-plus
Los Amigos, a new Mexican restaurant has set up shop across the street from Hot Tamales and More. Which one of the following pricing strategies will Los Amigos likely use?
Competition-based
Kallton is a multinational communications and information tech corp, its principal products are mobile telephones and tablets. Its recently announced on its website that customers can suggest ideas for the upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton using ____ to generate new product ideas.
Crowdsourcing
In a promotion mix, ____ involve(s) personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
Direct marketing
IDEO is a world class innovation "factory" that addresses difficult questions for a wide range of clients. In the video, we watched in class members of the team spoke about what makes it possible to create and scale their capabilities for clients. Identify and expand on two of these characteristics/qualities.
IDEO, a renowned innovation firm, is known for its ability to address difficult questions and provide innovative solutions for a wide range of clients. In the video, members of the IDEO team highlighted several characteristics/qualities that contribute to their capability to create and scale their innovation capabilities for clients. Two of these characteristics/qualities are: Human-centered Approach: IDEO's human-centered approach is one of its key characteristics that allows them to create innovative solutions for clients. IDEO places a strong emphasis on understanding the needs, desires, and behaviors of the people who will be using the products or services being designed. They engage in deep empathy and observation, conduct extensive user research, and involve users in the design process through iterative prototyping and testing. By deeply understanding the end-users and involving them in the design process, IDEO is able to create solutions that are meaningful, relevant, and tailored to the needs of the users. This human-centered approach ensures that the solutions are user-friendly, intuitive, and have a high likelihood of adoption and success in the market. Collaborative and Multidisciplinary Teams: IDEO's collaborative and multidisciplinary approach is another characteristic that contributes to their innovation capabilities. IDEO believes that innovation is a team sport and emphasizes the power of diverse perspectives and skills coming together to tackle complex challenges. IDEO brings together experts from various disciplines, such as design, engineering, business, anthropology, psychology, and more, to work collaboratively on projects. This multidisciplinary approach allows IDEO to leverage the diverse strengths and expertise of team members to generate unique insights, ideas, and solutions. IDEO encourages open communication, collaboration, and co-creation among team members, fostering a culture of innovation and creativity. This collaborative and multidisciplinary approach enables IDEO to tackle complex problems from different angles and come up with holistic and innovative solutions. Overall, IDEO's human-centered approach and collaborative, multidisciplinary teams are two key characteristics that contribute to their ability to create and scale their innovation capabilities for clients. By deeply understanding user needs and involving diverse perspectives in the design process, IDEO is able to generate innovative solutions that are relevant, user-friendly, and market-oriented.
Which statement is most likely true about idea generation in the new product development process?
Idea generation is usually followed by procedures that reduce the total number of ideas.
You are an aspiring entrepreneur. One of your sibling's family just had her first baby. When discussing baby needs with you they commented that there did not seem to be a good, compact, economical stroller that would fit what baby stuff they needed to have with them and, at the same time, fold up to fit in their mid-size car. You were thinking this insight might lead to a new stroller design... and the start of your new company. What steps would you take, what resources would you avail yourself of and what would you need to think about with respect to design, pricing, product testing?
Market Research: I would conduct thorough market research to understand the current stroller market, identify gaps and opportunities, and validate the demand for a compact, economical stroller that fits in a mid-size car. I would collect data on customer preferences, pain points, and unmet needs through surveys, focus groups, and online research. This would help me gather insights on design, features, pricing, and target audience. Design and Development: Based on the insights gained from market research, I would work on designing a prototype of the stroller that meets the identified needs of the target customers. I would collaborate with experienced product designers, engineers, and manufacturers to create a functional and visually appealing stroller that is compact, easy to fold, lightweight, and durable. I would also ensure that the stroller complies with safety regulations and standards. Pricing Strategy: I would carefully determine the pricing strategy for the stroller, considering factors such as production costs, materials, labor, overheads, and profit margins. I would also analyze the pricing of competitors' strollers in the market to ensure that my pricing is competitive and attractive to customers, while still being profitable for my business. Product Testing: I would conduct extensive product testing to ensure the safety, functionality, and durability of the stroller. This would involve rigorous testing of various components, such as the frame, wheels, brakes, and folding mechanism, to ensure that the stroller performs well under different conditions and meets the needs of parents and caregivers. I would also gather feedback from potential customers to make improvements and refinements to the design. Manufacturing and Supply Chain: I would identify reliable manufacturers and establish a strong supply chain to ensure efficient production and timely delivery of the strollers. This would involve sourcing high-quality materials, managing production processes, and establishing quality control measures to maintain consistent product quality. Branding and Marketing: I would develop a strong brand identity and marketing strategy to create awareness and generate interest in my stroller. This would include creating a compelling brand name, logo, website, and social media presence. I would also develop marketing materials, such as brochures, flyers, and product videos, and implement targeted marketing campaigns to reach my target audience, including new parents, caregivers, and parents-to-be. Sales and Distribution: I would establish effective sales and distribution channels to make my stroller accessible to customers. This may include selling directly through my website, partnering with baby stores, or using online marketplaces. I would also consider factors such as shipping, inventory management, and customer service to ensure smooth sales and distribution operations. Legal and Regulatory Compliance: I would ensure that my stroller complies with all relevant legal and regulatory requirements, including safety standards, intellectual property rights, and business permits. I would seek legal counsel to ensure that my business operations are in compliance with local, state, and federal laws. Financial Planning: I would develop a comprehensive financial plan that includes budgeting, forecasting, and cash flow management. This would involve estimating the costs associated with product development, manufacturing, marketing, sales, and distribution, and projecting the revenues and profits of the business. I would also secure appropriate funding, such as loans or investments, to support the launch and growth of my business. Team Building: I would assemble a team of skilled and dedicated professionals to support the various aspects of my business, such as product design, manufacturing, marketing, sales, and operations. I would carefully select team members who share my vision and passion for the business, and provide them with the necessary resources, training, and support to ensure their success.
With each new generation of Apple iPhone, iPad, or Mac computer, new models start at a high price then work their way down as newer models are introduced. Apple initially uses a ____ strategy
Market-skimming
Victoria's Closet, a manufacturer of bohemian-style clothing and accessories, sells its products, through its online website, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Victoria's closet employ to distribute its products?
Multichannel distribution system
Karen Dodd is employed by Dell and responsible for calling on primary schools in her home state of Maine to promote the company offerings. She demonstrates the Dell line of products including desktop computers, laptops, and tablets and fields questions from teachers and administrators alike. This is an example of which promotion tool?
Personal selling
In a marketing communications mix, ______ refers to any short-term incentive that encourages the purchase or sale of a product or service.
Sales promotion
Food International is developing a new gluten-free,chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standings. Once approved, the next step will most likely be:
Test marketing
Why do today's firms need integrated marketing communications systems? How do firms benefit from such systems?
Today's firms need integrated marketing communications (IMC) systems because they help them achieve consistency, coherence, and effectiveness in their marketing efforts. IMC involves aligning and integrating all aspects of a firm's marketing communications, such as advertising, public relations, social media, direct marketing, sales promotions, and other communication tools, to convey a unified message and create a seamless customer experience across various channels and touchpoints. Here are some benefits of IMC systems for firms: Consistency in Messaging: IMC systems ensure that a consistent and cohesive message is communicated across different marketing channels and platforms. This consistency helps to build a strong and recognizable brand image, reinforces key marketing messages, and enhances customer recognition and recall. It eliminates confusion and creates a unified brand identity, which is essential for establishing brand awareness and loyalty. Improved Communication Efficiency: IMC systems enable firms to streamline their marketing communications efforts by integrating them into a cohesive plan. This eliminates redundant or conflicting messages and helps to optimize the allocation of resources, time, and budget. A well-coordinated IMC system ensures that marketing efforts are synchronized, coherent, and focused, resulting in improved communication efficiency and effectiveness. Enhanced Customer Experience: IMC systems facilitate a seamless and integrated customer experience by providing a consistent message and brand presence across multiple touchpoints. This creates a positive impression and enhances customer engagement, satisfaction, and loyalty. When customers encounter consistent messages and experiences, it builds trust and reinforces the firm's value proposition, leading to increased customer retention and advocacy. Cost-effectiveness: IMC systems can help firms optimize their marketing communications budget by eliminating duplication of efforts, leveraging synergies, and maximizing the impact of marketing activities. By integrating and coordinating different communication tools, firms can achieve cost efficiencies, reduce waste, and generate better returns on their marketing investments. Agility and Adaptability: IMC systems allow firms to be more agile and adaptable in responding to changing market dynamics, customer preferences, and competitive pressures. By integrating various marketing communications efforts, firms can quickly adjust their messages, channels, and strategies based on real-time feedback and market insights. This flexibility enables firms to stay relevant, responsive, and competitive in today's fast-paced business environment. Measurement and Evaluation: IMC systems facilitate better measurement and evaluation of marketing communications effectiveness. By integrating various communication tools and channels, firms can track and analyze the performance of their marketing efforts more accurately and comprehensively. This helps firms to identify what works and what doesn't, make data-driven decisions, and continuously optimize their marketing strategies for better results. In conclusion, integrated marketing communications (IMC) systems are essential for firms to achieve consistency, coherence, and effectiveness in their marketing efforts. IMC helps firms improve communication efficiency, enhance customer experience, optimize costs, be agile and adaptable, and better measure and evaluate their marketing communications effectiveness. It is a strategic approach that can yield significant benefits and competitive advantages for firms in today's dynamic and competitive business landscape.
Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, then resells the various brands to 500 supermarkets in Florida?
Transform the assortments of products made by producers into the assortments wanted by consumers
A ____ pricing strategy for an offering begins with an assessment of customer needs and perceptions. The target price is set based on customer perceptions of worth. a) Value-added
Value-based
A _____ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members.
Vertical marketing system