MKT EXAM 2

________ refers to the stage of the business buying process in which the buyer tries to find the best vendors.

Supplier search

New products sometimes fail because they are launched at the wrong time.

True

Federal legislation on price fixing requires that sellers set their prices ________.

Without communication from competitors

If Detroit DLX charges the same price for the delivery of its product to customers located in the states near the Great Lakes, but a different price to customers elsewhere, the company is using ________.

Zone pricing

Consumer product

a product bought to satisfy an individual's personal wants

unsought product

a product unknown to the potential buyer or a known product that the buyer does not actively seek (insurance)

Straight rebuy

a routine repurchase that may have been made many times before

Concentrated approach

a single marketing mix is directed at a single market segment

Dynamic pricing

adjusting prices continually to meet the characteristics and needs of individual customers and situations (uber)

Modified rebuy

buyer wants to modify product specifications, prices, terms, or suppliers

Systems selling (or solutions selling)

buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

Business buyer behavior refers to the ________.

buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

Person marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people

Place marketing

consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places

When developing products, marketers first must identify the ________ that consumers seek from the product.

core customer value

New task buy

first time purchase of a product or service

Steve jobs quote (important)

focus on the product not the brand

Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is called ________.

full-line forcing

Category killers

giant specialty stores carrying deep assortments (best buy)

Administrated vertical marketing system

has a few dominant channel members without common ownership. Leadership comes from size and power

Variable costs

raw materials, packaging

Discount and allowance pricing

reduces prices to reward customer responses

Channel conflict

refers to disagreement among channel members over goals, roles, and rewards

Segmented pricing

selling a product or service at two or more prices, where the difference in prices is not based on differences in costs

Retailing and wholsailing

selling functions and not a part of manufacturing processes

________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.

services

Market skimming prices

setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales

Fluctuating

small changes in consumer demand create large changes in business demand

Omni-channel retailers are those who ________.

successfully merge the virtual and physical worlds

supplier development

systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others

Micromarketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments

Product line pricing

takes into account the cost differences between products in the line, customer evaluation of their features, and competitors' prices

Promotional pricing

temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales

Acquisition

the buying of a whole company, a patent, or a license to produce someone else's product

New product development

the development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts

Brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

Brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing (coke)

optional product pricing

the pricing of optional or accessory products along with a main product

Profit =

total revenues- total costs

________ involves sending a letter, catalog, advertisement, or brochure to a specific physical address.

Direct mail marketing

Segmentation

Diving a market into smaller segments with distinct needs and characteristics

convenience products

Low buying effort and buys frequently (fast food)

Profit =

(profit x quantity) -(fixed cost +(variable cost- quantity))

Demand falls 10% when seller raises prices by 2%

-10% / 2% = -5

Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?

125,000

________ involves the use of a successful brand name for new or modified products in a new category.

A brand extension

Brand Positioning

A branding strategy in which marketers create a certain image or impression of a brand as compared to those of competitors' brands (disney)

Market-penetration pricing strategies work best for a new product when ________.

A low price helps keep out the competition

Prices do not have an impact on a firm's bottom line.

false

A(n) ________ does not take title to goods and represents buyers or sellers on a more permanent basis than a broker.

Agent

Which of the following wholesaler's channel functions is exemplified by buying in carload lots and then dividing these lots into small quantities?

Bulk breaking

Derived demand

Business demand that ultimately comes from (derives from) the demand for consumer goods.

Shopping product

Less frequently bought and chosen carefully (cars)

Which of the following product mix pricing strategies does Amazon use when it sets the prices on Kindle readers and tablets?

Captive product pricing

Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?

Crowdsourcing

True or false: Psychographic segmentation divides the market into segments based on easily measured variables such as age, gender, income, occupation, education, and ethnicity.

False

The business marketer normally deals with __________ than the consumer marketer does.

Far fewer but far larger buyers

Total costs =

Fixed Costs + (Variable Cost Rate per unit * # units)

Blue Fin tuna has higher sales than its unbranded rival, even though the unbranded tuna costs 0.45 cents less per can than bluefin tuna. Blue fin most likely has _____________.

High brand equity

Which product life-cycle stage is characterized by the highest cost per customer?

Introduction

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing.

Market skimming

Apple's iphone has been called " one of the greatest consumer electronics hits of all time." .... based on this description, the iphone is in the ________ stage of the product life cycle.

Maturity stage

Total revenue =

Price x Quantity

4 P's

Price, Product, Promotion, Place

Fixed costs

Rent, equipment, interest, executive salaries

________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.

Retailing

Market penetration strategy

Setting a low initial price for a new product in order to attract a large number of buyers.

For some brands and industries, ________ is less sensitive to changes in price. For example, because of Apple's brand strength and differentiated products, its core of strongly loyal customers will continue to buy Apple iPhones and other devices despite recurring price increases.

demand

Jeremy's, a handbag manufacturer in Lower Manhattan, procures a large stock of leather in anticipation of brisk sales of handbags during December. This is an example of a(n) ________ demand.

derived

Undifferentiated approach

directing a single marketing mix at the entire market for a particular product

The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________.

disintermediation

Bulk breaking

dividing larger quantities of product (function of wholesailers)

Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. This reflects Bon Vivant's ________ pricing strategy.

everyday low

Target partners with CVS Health, which operates CVS pharmacies and Minute Clinics in Target stores through a store-within-a-store format. The partnership gives CVS Health more than nearly 1,700 pharmacies and 1,100 clinics at prime locations inside Target stores. This is an example of a(n) ________.

horizontal marketing system

When a company decides to commercialize a new product, it typically ________.

incurs high costs

________ distribution is a strategy in which producers of convenience products and common raw materials stock their products in as many outlets as possible.

intensive

The buying center usually includes many participants who influence each other, so ________ also influence the business buying process.

interpersonal factors

Crowdsourcing

inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process

Captive product pricing

involves products that must be used along with the main product

The COVID-19 pandemic dramatically changed how business buyers and sellers meet, interact, and make decisions. Work-from-home regimens and other social-distancing measures "forced B-to-B buyers and sellers to go digital in a massive way." This example shows that ________.

major environmental disruptions influence business buyers

Differentiating approach

marketing towards different segments, each in a different way

wholesailers

must decide on product and service assortments, prices, product, place

Bullwhip effect

occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain

Psychological pricing

occurs when sellers consider the psychology of prices and not simply the economics

breakeven point

occurs where revenues just equal costs

price elasticity of demand

percent change in quantity demand/ percent change in price

A flight takes off with 20 empty seats. This is an example of service ________ because services cannot be stored for later use.

perishability

Tennis superstar and entrepreneur Serena Williams earned $45 million last year from endorsements for brands ranging from Nike and Gatorade to Beats by Dre, Pepsi, and Chase Bank. Williams herself has become a marketable brand. She recently launched a fashion line-S by Serena-inspired by her own personal model of femininity, strength, and authenticity. "I want to be the brand," she says, "instead of just being the face." This is an example of ________.

person marketing

Product costs set the floor for a product's ________.

price

Inelastic

price is not sensitive (insuline)

Elastic

price is sensitive (avocados)

horizontal marketing system

two or more companies at one level join together to follow a new marketing opportunity

Multi-channel distribution

two or more marketing channels

Specialty product

unique characteristics (designer clothes)

Final price =

unit cost/(1- return on sale)

Social marketing

uses commercial marketing concepts to influence individuals' behavior to improve their well-being and that of society

Fishyback (important)

uses water and truck to transport goods

Ford makes great trucks. But to make and market just one of its many lines-say, its best-selling F-150 truck model-Ford manages a huge network of people within the company, from marketing and sales people to folks in finance and operations. It also coordinates the efforts of thousands of suppliers, dealers, and advertising agencies and other marketing service firms. The entire network must function together to create and deliver customer value and establish the brand's "Built Ford Tough" positioning. This is an example of (a) ________.

value delivery