Test 4 Intro to buis
New Novelties has a great new product on the market, but now all their competitors are imitating their product and trying to cut into their sales. New Novelties is in which stage of the product life cycle?
Growth
Which of the following BEST describes the promotional mix?
How marketers decide to make the public aware of a product, based on the needs of the target audience
Within the organization, who is responsible for the purchasing of products that will be used to produce other products?
Industrial buyers
Your boss has asked you to describe a value package for a new product. Which of the following would you gather?
Information on features and benefits
During what stage of the product life cycle do marketers focus on making potential customers aware of the benefits of a product?
Introduction
In which stage of the product life cycle should marketers focus advertising and promotion on consumer awareness?
Introduction
Why is speed to market important in new product development?
It can determine market share and profitability.
What is it called when companies or personalities sell the rights to put their names on products?
Licensed
Red Bull energy drink wants to expand their target market to fans of car racing, specifically NASCAR and Formula One racing. It has entered into talks with several race car drivers about putting the Red Bull logo on the race cars and clothes worn by the pit crews during races. Red Bull will include a marketing campaign indicating they are the "energy drink of winners!" What type of branding effort is Red Bull engaging in?
Licensed branding
Perfect Products has decided to set low prices for its new products to entice people to try them, even though profits will be small. Perfect Products is using which type of pricing objective?
Market share
In order to get her "foot in the door" with her new line of organic juice, Laura is willing to set the price low so that more buyers will be willing to give her product a try. Which pricing objective or strategy does this BEST reflect?
Market share objectives
In order to create profit, an amount is added to the cost of producing an item. What is this added amount?
Markup
Marketers have a variety of advertising methods to help get the seller's message to the audience. The combination of methods that a seller chooses is that organization's .
media mix
Pricing items in uneven dollar amounts, such as $5.99, is known as ________.
odd-even pricing
Which of the following BEST describes the growth stage in the product life cycle?
Sales start to climb rapidly, marketers lower the price slightly, and continue promotion expenditures to increase sales
Innovative Industries has so many new product ideas, management is overwhelmed. Each idea seems like a good possibility, so management decides to meet, review each of the ideas, and decide which best fits with the company's goals. This is which stage of the new product development process?
Screening
Which of the following BEST describes syndicated selling?
Sellers who provide commissions to websites for referring customers to them
What is the definition of price lining?
Setting a limited number of prices for certain categories of products
Which of the following BEST describes price skimming?
Setting an initially high price to cover new product costs and generate a profit
Jill's dishwasher is broken and she needs a new one. She looks at several brands and the different features each offers. Which type of product is Jill's new dishwasher?
Shopping good
Which of the following BEST describes a merchant wholesaler?
Someone who buys products from manufacturers and sells them to other businesses
CenturyLink offers customers special pricing if they buy a package deal with phone, Internet, and DirecTV. This is an example of _______.
a bundling strategy
Some companies will group similar products together, offering a special price if all items are purchased. This incentive is called .
a bundling strategy
In a highly competitive industry, a company can BEST differentiate its product by focusing on a niche market and _____________.
branding
Often one member of a marketing chain has the most power in determining the roles others play in distribution. This leader is referred to as the .
channel captain
Goods consumed on a regular basis that tend to be inexpensive are goods.
convenience
A minor league baseball team sets its ticket price algorithms based on factors like team performance, pitching match-ups, the weather, and even ticket demand. If the team is doing well, ticket prices may be higher; if the team is doing poorly and they want to attract fans to the stadium, ticket prices will decline. This is an example of _______.
dynamic pricing
Insurance and utilities are ________ costs.
fixed
When a company uses penetration pricing, it tends to set an initial price that is ________.
low enough to establish the product in the market
It costs Tom's T-shirts $5.00 to produce each of its newest items, and it sells each one for $6.50. The $1.50 Tom's earns from each shirt is its ________.
markup
Which of the following BEST describes a cybermall?
A collection of virtual storefronts representing diverse products and offering 24-hour access
Which of the following BEST defines selective distribution?
A distribution strategy by which a company uses only a limited number of wholesalers and retailers who give special attention in sales efforts to specific products
Which of the following is the BEST description of a supermarket?
A large product-line retailer offering a variety of food and food-related items in specialized departments
Which of the following BEST describes a private brand?
A line of products that showcase a brand name that was created by the store, not the manufacturer
Which of the following BEST describes an expense item?
A product that will be used within a year of purchase, for the purpose of producing other items
Which of the following BEST describes the role of a broker?
A salesperson that matches buyers to sellers and receives a commission for the service
Which of the following BEST describes product extension?
A way to increase the product's life cycle by entering a new market
Before a company can establish the breakeven point for a product, what must be determined?
All fixed and variable costs for the product
Which of the following is the BEST definition of an intermediary?
An individual or firm that helps to distribute a product
items are relatively expensive industrial goods and services that are expected to last several years.
Capital
Which of the following would be classified as an organizational product?
Capital items
How can an organization determine when total costs equal total revenue?
Breakeven analysis
Which of the following can be determined by the fixed and variable costs for a product?
Breakeven point
During which stage of the product development process do marketers compare production costs and benefits to determine whether the proposed product meets minimum profitability goals established by the organization?
Business analysis
Full-scale production has begun! A company is establishing distribution channels and promotion plans. This is which stage of the new product development process?
Commercialization
You are spearheading a new product idea for your company. Engineering, marketing, finance, and even operations managers have provided input in the development. Which is the next step in the process?
Concept testing
You are looking at the candy bars while waiting in line at the gas station; they all look good, but you finally decide to buy a Reese's. Which type of product did you purchase?
Convenience good
Which of the following is the definition of fixed cost?
Cost that is incurred regardless of the quantity of a product produced and sold
What type of pricing model do firms use when they consider how much profit they want to make with regard to operating costs?
Cost-oriented pricing
Which of the following are costs that are incurred regardless of the quantity of a product produced and sold?
Fixed costs
What type of wholesaler will provide services such as credit, marketing advice, and merchandising arrangements?
Full-service merchant wholesalers
Which of the following is a form of nonstore retailing in which firms directly interact with customers to inform them of products and to receive sales orders?
Direct-response retailing
Which of the following is the first step in the product development process?
Generation of product ideas
Amy works for a manufacturing company in the administrative office. She is amazed at how often she must purchase office supplies and is looking to order them in larger quantities. Which category defines the supplies Amy purchases?
Expense item
Joachim owns a small commercial cleaning business. He purchases a carton of paper towels, a box of trash bags, and a gallon container of toilet bowl cleaner from a janitorial supply vendor. How would these products be characterized?
Expense items
When an organization purchases products that will be used within a year, for the purpose of producing other products, what type of items are being bought?
Expense items
A service company needs a large truck to carry materials, supplies, and equipment to and from the client facility. This is which stage in the service process design step of new product development?
Facility requirements
Which of the following is a psychological pricing tactic based on the premise that customers prefer prices not stated in even dollar amounts?
Odd-even pricing
Which of the following can be used as an in-store advertisement?
Packaging
A new product is being released into the market, and there is the potential for many competitors. What type of pricing strategy should be used to establish a customer base and stimulate trial purchases?
Penetration
The managing partner of the new consulting firm for which you work wants to gain clients. Which would be the BEST recommendation for her market-share objective?
Penetration pricing
Which of the following BEST describes creative selling?
Personal selling task in which salespeople try to persuade buyers to purchase products by providing information about their benefits
How is the concept of product placement used by manufacturers?
Placing products in television shows or in movies to increase brand awareness
What is the term for pricing a product below its cost in order to increase foreign market share?
Price dumping
Some countries use products in a way that is different than what was intended during initial development. How can the product be changed to conform to the needs of the new market?
Product adaptation
A national firm would like to expand sales into the international market to expand market share of a product that sells well domestically. Which of the following will help increase the product life cycle by entering a new market?
Product extension
Not every firm offers items in all areas of the product line. What is the name of the group of items the manufacturer chooses to offer?
Product mix
In which stage of new product development might a product be sold on a trial basis in limited areas?
Product testing and test marketing
Wedding Wishes is a bridal shop that specializes in high-end, one-of-a-kind wedding dresses. The owner of Wedding Wishes has just placed an order for 500 yards of lace to be used in the creation of the dresses currently on order, after spending several hours determining the patterns and details of the lace. What type of organizational product is the lace?
Production item
Which of the following BEST describes specialty goods?
Products that are unique enough to persuade consumers to exert unusual effort to obtain them
Which of the following BEST describes the role of a shopping agent?
Providing an accurate comparison of products and allowing the consumer to choose the best option and complete the transaction immediately
What type of marketing strategy encourages the consumer to ask the retailer for a product?
Pull
If a car dealership receives pricing incentives on a specific type of vehicle, in the hopes of generating sales for that line, what type of marketing strategy is being used by the automotive manufacturer?
Push
The managing partner of the consulting firm for which you work wants to raise the price of services across the board in order to increase profits. Which is the MOST LIKELY result of her profit-maximizing strategy?
Quantity demand of services will decrease.
Which of the following BEST describes a value package?
The combination of features and attributes of a product, such as price and ease of use, that can be taken together
Which of the following BEST describes consumers?
The end users who buy a product
Which of the following BEST describes the role of a channel captain?
The member of the marketing chain that sets price and availability in addition to the distribution process
Which of the following BEST describes market share?
The percentage of sales for the overall sales levels of a particular product
What is the BEST description of product positioning?
The process of establishing an easily identifiable product image in the minds of consumers by fixing, adapting, and communicating the nature of the product
Which of the following BEST describes product features?
The rewards or benefits of one product over another
Which of the following is the role of warehousing in the distribution process?
The storage of products before delivery for use for retailers or manufacturers
Back2Basics sells women's lotion and skin care products. The product line features a few products made from all natural and locally sourced ingredients. Back2Basics has sold products only in local markets, and Emily, one of the two partners, thinks this may be the time to develop additional products and launch a full-scale, nationwide campaign for its products. However, Jane, the other partner, is cautious and wants to conduct research first. She is not sure the nationwide market will support additional high-end skin care products sold primarily over the Internet. Which of the following might be one reason Jane is concerned about the expense of new product development and the launch of a nationwide campaign?
There is a high mortality rate for new ideas and only a few new products ever succeed on the market.
What is the job of an industrial buyer in an organization?
To buy products that will be used to produce other products
Why do various members of an industry hold trade shows?
To demonstrate products to customers who are ready to buy
What is the role of a sales agent during the distribution process?
To understand the products of a very few producers and explain those products to customers
What type of sales promotion can be used to demonstrate products to customers who are ready to buy?
Trade show
When would a penetration pricing strategy be used by a firm?
When a new product is being released to the market and there are many competitors
Which of the following is the BEST description of a licensed brand?
When companies or personalities sell the rights to put their names on products
How can an organization determine when breakeven has occurred?
When total costs equal total revenue
Some businesses sell only to other businesses. Who helps facilitate this transaction?
Wholesalers
Since there was no real competition in its early years, Apple was able to keep the price of the iPod high for some time; this allowed the company to recover development costs. This is known as ________.
price skimming
Target stores nationwide feature Cherokee footwear and Merona clothing, although Target does not manufacture these products. This is an example of a _______ brand.
private
A group of goods that are closely related and function in a similar manner are a .
product line
Dreamy Designs has a variety of products available, including decorative items, lighting, furniture, window treatments, and carpet. This is Dreamy Design's ________.
product mix
In the movie Top Gun, actor Tom Cruise (as Lieutenant "Maverick" Mitchell) wore Ray-Ban sunglasses, prompting a wave of popularity for the sunglasses. This is an example of _______.
product placement
Management paid to have the stars of a TV sitcom eat Doritos on the show. This is an example of ________.
product placement
Some products are promoted by placing them in television shows or in movies in order to increase brand awareness. This marketing tactic is known as .
product placement
When a new product becomes available at a retailer, coupons or free samples might be offered as a way to generate desire for the product. These methods of consumer awareness are called .
sales promotions
Alina has an executive recruiting firm, and she pays the recruiters who work for her $2,000 for every placement they make. This is an example of _______.
variable costs
If a company strives to generate the highest possible total profit, it is working toward which of the following objectives?
Profit-maximizing objective
