Marketing Test 2

High-end luxury brands like Bentley for cars, Louis Vuitton for handbags, and Rolex for watches use ________ distribution, giving a limited number of dealers the sole right to sell products in a specified geographic territory.

D) exclusive

Mary Kay Cosmetics and Amway sell their products through home and office sales parties, online Web sites, and social media. Both companies use a(n) ________ channel to distribute their offerings.

Direct

Which of the following statements is most likely true about the new product development process?

E) Customers, competitors, distributors, and suppliers are major sources of new product ideas.

In a(n) ________ marketing system, leadership over production and distribution is assumed through the size and influence of one or a few dominant channel members.

E) administered vertical

When evaluating various segments for the purpose of targeting, a company should consider: A) segment size B) segment growth C) segment attractiveness D) company objectives and resources E) all of these

E) all of these

Which of the following is an economic factor that affects the pricing decisions of a company?

E) interest rates

A ________ consists of producers, wholesalers, and retailers acting as a unified system.

E) vertical marketing system

________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

Market segmentation

Which of the following is true about the introduction stage of a new product?

Sales growth tends to be slow.

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings

Test marketing

Which of the following steps of the new product development process would most likely use an R-W-W framework?

idea screening

The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as ________.

concept testing

________ uses buyers' perceptions of what a product is worth as the key to pricing.

A) Customer value-based pricing

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

A) Price

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product?

A) The product's quality and image must support its high price.

Lilly's, a furniture retailer, sells low-end furniture and accent pieces that are targeted toward lower-income consumer groups. Lilly's most likely segments the consumer market based on ________ variables.

A) demographic

Which of the following sets the lower limit for a product's pricing?

A) product costs

In which of the following situations is a producer guaranteed full control over product sales?

B) a direct marketing channel

Changes in technology and the explosive growth of direct and online marketing are having a profound impact on the nature and design of marketing channels. One major trend is toward ________ insofar as product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones

B) disintermediation

Victoria's Closet, a manufacturer of bohemian-style clothing and accessories, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Victoria's Closet employ to distribute its products?

B) multichannel distribution system

________ involves a review of the sales, costs, and profit projections for a new product to determine whether they satisfy a company's objectives.

Business analysis

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk

C) Cost-based

________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users.

C) Marketing channels

Which of the following is true of perceptual positioning maps?

C) They are used to analyze consumer perceptions of a brand relative to competing product

Which of the following sets the upper limit for a product's pricing?

C) consumer perceptions of value

More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. This illustrates a(n) ________ marketing system.

C) contractual vertical

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as ________.

C) inelastic

Producers of convenience products and common raw materials typically seek ________ distribution — a strategy in which they stock their products in as many outlets as possible.

C) intensive

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

C) market segmentation, market targeting, differentiation, and positioning

A ________ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth.

C) value-based

________ 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.

Positioning

Dividing buyers into groups based on the benefits that consumers seek from a product, is called ________ segmentation

behavioral

Port Orleans Shipping (POS), a shipping company, markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

differentiated

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________.

geographic location

A product is in the introduction stage of the product lifecycle, and the company has to decide about the pricing strategy. Which of the following decision is the company most likely to take?

go either with a skimming or a penetration pricing strategy

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?

introduction

Marketing the same product to a huge customer base without any customization is referred to as ________.

mass marketing

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment is $35. But the combo price is $50. This is referred to as ________ pricing.

product bundle

In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.

product development

If a product passes both the concept test and the product test, the next step is most likely to be ________.

test marketing