Marketing 2

________ involves using an existing brand name for a new product category. -multibranding -co-branding -new branding -line extension -brand extension

Brand extension

________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives. -concept analysis -business analysis -vendor analysis -portfolio analysis -SWOT analysis

Business analysis

Port Orleans Shipping 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. -individual -differentiated -concentrated -local -mass

Differentiated

________ pricing involves charging a constant low price with few or no temporary price discounts. -target return -market-skimming -everyday low -high-low -cost-plus

Everyday low

When a seller requires that only certain dealers carry its products, its strategy is known as _______. -intensive distribution -horizontal restraints of trade -disintermediation -vertical distribution -exclusive distribution

Exclusive Distribution

Companies today are moving away from target marketing and toward mass marketing. T/F?

False

Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers. T/F?

False

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC. - incubation - decline - introduction -maturity -growth

Maturity

Marketing the same product to a huge customer base without any customization is referred to as ________. -niche marketing -differentiated marketing -local marketing - individual marketing -mass marketing

Mass Marketing

________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking. -Competition-based -Value-added -Target return -Cost-plus -good-value

Target return

________ marketing tailors brands and promotions to the needs and wants of specific cities, neighborhoods, and even stores. -differentiated -mass -niche -individual -local

Local

When a market segment is large or profitable enough to serve, it is termed _________. -substantial -actionable -measurable -accessible -differentiable

Substantial

A product is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. T/F?

True

Acquisition is one of the ways through which a company obtains new products. T/F?

True

Supply chain management involves managing both upstream and downstream value-added flows of materials. T/F?

True

Unsought products are consumer products that the consumer either does not know about or knows about but does not normally consider buying. T/F?

True

When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries. T/F?

True

When consumers react more favorably to a brand than to a generic or unbranded version of the same product, the brand is said to have positive brand equity. T/F?

True

Which of the following is a pure tangible good? -a medical check-up -a meal at a restaurant -a spa treatment -financial advice -shampoo

shampoo

A company's external sources of new product ideas include its ________. -managers -suppliers -salespeople -manufacturing staff -engineers

suppliers

Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________. -cost-plus pricing -mass production -value-added pricing -target return pricing -target costing

target costing

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness. -simultaneous -cross-sectional -sequential -systematic -team-based

team-based

Zindle, an American smartphone-manufacturing firm, targets children below the age of ten by providing free games and applications. The firm's marketing approach is reflective of a(n) ________ segmentation. -geographic -gender -income -age and life-cycle -occasion

age and life-cycle

A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service. -prototype -brand -paradigm -framework -patent

brand

Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal? -change the packaging of the toy -change distributors -cut prices of the toy to attract new customers -offer coupons for the toy -launch an online advertising campaign

change the packaging of the toy

Which of the following is an external factor that affects pricing decisions? -the marketing mix -marketing objectives -competition -top management -marketing strategy

competition

When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________. -elastic -inelastic -cyclical -flexible -variable

inelastic

The dependence of service quality on the quality of the buyer—seller communication during the service encounter is referred to as ________ marketing. -horizontal -interactive -social -internal -advocacy

interactive

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? -adoption -product development -maturity -growth -introduction

introduction

Sweet & Cream, a popular frozen yogurt chain, attracts new customers by adding new flavors to its famous frozen yogurt product line. In this case, the company has developed its brand with ________. -new product lines -multibranding -co-branding -line extensions -brand extensions

line extensions

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? -market-skimming pricing -market-penetration pricing -location-based pricing -time-based pricing -product-form pricing

location-based pricing

The less-for-much-less positioning involves meeting consumers' requirements for ________. -lower quality at a higher price -moderate quality at a higher price -higher quality at the lowest possible price. -higher quality at a discounted rate -lower quality for a lower price

lower quality for a lower price

When a company interacts one-on-one with large numbers of customers to create customer-unique value by designing products and services tailor-made to individual needs, it is engaging in ________. -differentiated marketing -mass customization -local marketing -concentrated marketing -mass marketing

mass customization

Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware? -co-brands -multibrands -brand extensions -line extensions -new brands

multibrands

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. It also conducts highly specialized training programs for its employees. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation. -services -people -product -channel -image

people

A product mix is also known as a product ________. -aggregation -portfolio -assemblage -taxonomy -cluster

portfolio

Store brands are also known as ________ brands. -manufacturer's -licensed -private -national -extended

private

Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics it uses. The company has positioned its brand based on ________. -market share -product attributes -beliefs and values -product benefits -brand loyalty

product attributes

Which of the following characteristics of a product is defined as "free from defects"? -feature -style -quality -value -design

quality

A firm that uses direct marketing would most likely sell its products through ________. -the company web site -large wholesalers -one marketing intermediary -multiple intermediary -multiple intermediaries -big box retailers

the company Web site

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation. -psychographic -benefits sought -user status -usage rate -occasion

usage rate

In which of the following cases is crowdsourcing used for new product development? -a company depends on its R&D department to come up with new ideas -a company creates a forum where anyone can contribute new product ideas -a company reviews the sales costs and profit projections of an existing product -A company partners with a design agency to create a few prototypes. -A company hires a marketing agency to generate new product ideas.

A company creates a forum where anyone can contribute new product ideas.

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? -Abundon -the consumer -SoftStar -BlueHill -Kevin Pinker

Abundon

Setting a price for products that must be used along with a main product is known as ________ pricing. - market-penetration -product bundle -captive-product -by-product -product line

Captive-product

________ occurs when two established brand names of different companies are used on the same product. -licensing -private branding -co-branding -brand positioning -franchising

Co-branding

________ 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. -cost-based -competition-based -good-value -demand-based

Cost-based

Which of the following is true of an intensive distribution strategy? - Compared with other distribution strategies, it provides the best support for dealers of luxury products. -It discards traditional intermediaries and uses direct marketing to reach customers. -Compared with other distribution strategies, it uses the least number of intermediaries to sell products -It gives sole rights to select dealers in a given area. -It strives to make products available where and when consumers want them.

It strives to make products available where and when consumers want them.

________ 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. -marketing segmentation -positioning -market targeting -mass marketing -target marketing

Positioning

________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business. -Oligopolistic -Predatory -Dynamic -Zone -Captive

Predatory

________ is the only element in the marketing mix that produces revenue. -price -product -place -profit -promotion

Price

Which of the following sets the lower limit for a product's pricing? -consumer perceptions of value -elements of the product mix -competition -product costs -profits

Product costs

The use of traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being is called ________ marketing. -social -traditional -green -person -non-profit

Social

BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. Which of the following is an example of brand extension for BerryBerry? -The company introduces a line of flavored milk and yogurt under a new brand name. -BerryBerry adds a new fruit juice flavor, TangyBerry. -The company introduces BerryBliss, a dried berry snack mix for kids. -The company creates a new brand, NatureFresh, for a line of cosmetics based on fruit flavors and colors. -BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.

The company introduces BerryBliss, a dried berry snack mix for kids.

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product? -Production costs rise with an increase in marketing efforts. -Prices increase incrementally as sales volume increases -The market for the product is highly price sensitive. -Alternative products can enter the market easily. -The product's quality supports its high price.

The market for the product is highly price sensitive.

Which statement about convenience products is most likely true? -consumers need to make special purchasing efforts to buy such products -they are distributed exclusively in only one or a few outlets per market area -they are bought by consumers frequently and with minimal comparison -they are products that consumers rarely consider buying. -luxury cars and designer clothes are examples of convenience products

They are bought by consumers frequently and with minimal comparison.

While designing a customer-driven marketing strategy, marketers are likely to divide the market into smaller segments. T/F?

True

Which of the following sets the upper limit for a product's pricing? -profits -product costs -consumer perceptions of value -elements of the product mix -competition

consumer perceptions of value

Producers use marketing intermediaries because they ________. -provide technical expertise for faster production -supply inexpensive raw materials for manufacturing products -form a part of the company's direct channel -create greater efficiency in making goods available to target markets -monitor day-to-day activities during production

create greater efficiency in making goods available to target markets

When an end user's problems and experiences define a new product, the approach is called ________. -team-based new product development -customer-centered new product development -supply/demand new product development -systematic new product development -sequential product development

customer-centered new product development

Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. -customer-segment -location based -by-product -product form -time-based

customer-segment

Zista, a boutique that caters to the clothing needs of women, manufactures two different lines of fashion wear based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged women, and the other line targets younger professionals and homemakers. Zista most likely segments the consumer market based on ________ variables. -psychographic -demographic -universal -behavioral -geographic

demographic

Marque, a high-end maker of designer watches, has started making inexpensive watches to take advantage of enormous growth rates in low-end market segments. Marque is most likely engaging in ________. -line filling -upward stretching -downward stretching -franchising -two-way stretching

downward stretching

Internal sources of new product ideas for a company include its ________. -suppliers -competitors -employee -distributors -customers

employees

TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This arrangement will benefit all three companies. What kind of channel arrangement is being followed in this case? -administered vertical marketing system -horizontal marketing system -corporate vertical marketing system -contractual vertical marketing system -direct marketing system

horizontal marketing system

The new product development process usually starts with ________. -concept development -idea generation -market strategy development -concept testing -idea screening

idea generation

Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt. -idea screening -crowdsourcing -concept development -business analysis -concept testing

idea screening

When firms use symbols, colors, or characters to convey their personalities, they are using ________ differentiation. -people -user-status -usage-rate -channel -image

image

In supply chain management, moving products and materials from suppliers to the factory is known as ________ logistics. -downstream -inbound -inventory -reverse I -outbound

inbound

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements? -corporate vertical franchise system -direct distribution system -multichannel distribution system -horizontal marketing system -administered vertical marketing system

multichannel distribution system

Which of the following terms best describes the process of designing and producing a container or wrapper for a product? -branding -positioning -packaging -licensing -labeling

packaging

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product. -anti-monopoly laws -product liability -antitrust laws -patent laws -product warranties

patent laws

Through ________, brands can be differentiated on features, performance, or style and design. -services differentiation -people differentiation -product differentiation -price differentiation -channel differentiation

product differentiation

There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products. An individual seller cannot charge more than the going market price without the risk of losing business to the other stores. What type of market does this example represent? -pure competition -monopolistic competition -oligopolistic competition -a pure monopoly -a black market

pure competition

Which of the following is a cost-effective mode for shipping large amounts of bulk products-coal, sand, minerals, and forest products-over long distances? -water carriers -railroads -trucks -pipelines -air carriers

railroads

Some products that have entered the decline stage can be cycled back to the growth stage through ________. -test marketing -concept testing -data mining -sole sourcing -repositioning

repositioning

Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________. -seasonal discount -promotional allowance -trade-in allowance -functional discount -quantity discount

seasonal discount

A refrigerator is an example of a(n) ________ product. -shopping -capital -unsought -convenience -specialty

shopping

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________. -functional discount -seasonal discount -cash discount -trade-in allowance -by-product allowance

trade-in allowance

Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing. -optional -segmented -promotional -two-part -by-product

two-part

In a ________, producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate. -horizontal distribution channel -conventional distribution channel -lateral marketing system -vertical marketing system -direct marketing system

vertical marketing system