marketing 305 exam 2
A manufacturer does marketing research and estimates that consumers will accept a price of $50 for a jacket. If the manufacturer expects to offer trade discounts of 40/10 to retailers and wholesalers, what price will the manufacturer receive for the jacket?
$27.00
When selecting a brand name, it should: (1) suggest product features; (2) be memorable, distinctive and positive; (3) fit the company or product image; (4) have no legal or regulatory restrictions; and (5) __________.
be simple and emotional
Decision making is the act of
consciously choosing from among alternatives.
In a marketing decision, __________ are the restrictions placed on potential solutions to a problem.
constraints
There are eight marketing reasons why a new product can fail: (1) no economical access to buyers;(2) incomplete market and product protocol before product development starts; (3) not satisfying customers on critical factors; (4) bad timing; (5) too little market attractiveness; (6) poor product quality; (7) poor execution of the marketing mix; and (8) __________.
having an insignificant point of difference
All products sold by the Tabasco Company use the Tabasco brand. This is an example of __________.
multiproduct branding
If you buy one pair of UVex Clear UVExtreme safety eyewear in the winter, the cost is $7.40. But if you buy 10 pairs in a single purchase, the price per pair is reduced to $6.85, a total savings of $5.50. This is an example of a
noncumulative quantity discount.
observational data
Facts and figures gained by watching people either in person, mechanically, or electronically
Products that the consumer does not know about or knows about but does not initially want are referred to as
unsought products.
external data
us census reports trade association studies business periodicals internet based reports
The approaches that can be used to collect data to solve all or part of a marketing research problem are referred to as
methods
At a price of $3 per issue, SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle. If the price is increased to $3.25 per issue, only 1 million copies will be sold. Fixed costs are $1 million and unit variable costs are $0.50 per issue. From the information provided here, what is SHAPE magazine's total revenue obtained at the higher price?
$3,250,000
Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $10 million and unit variable costs of $5 per pair. If the company charges $15 per pair, how many kits must it sell to break even?
1,000,000 kits
market research process
1. define the problem 2. develop a research plan 3. collect all relevant 4. deliver the final report 5. take marketing actions
3 step process model of market segmentation
1. identify market needs 2. link needs to actions 3. execute marketing program actions
Which of the following is a criterion used in forming market segments?
It is simple and cost-effective to assign potential buyers to segments.
In which step of the price-setting process would a new-product manager decide whether to adopt a penetration or a skimming pricing strategy for a new product he or she is about to introduce to the market?
Step 4: select an approximate price level
market research
The process of defining a marketing problem and/or opportunity systematically collecting and analyzing information and recommending actions.
Which of the following is a characteristic of the growth stage of the product life cycle?
The profit margins peak or even decline as competitors enter the market.
product differentiation
This strategy involves a firm using different marketing mix actions, such as product features and advertising, to help consumers perceive the product as being different and better than competing products.
U.S. organizational markets use three main segmentation bases, which are
demographic, geographic, and behavioral.
Which of the following is considered a durable good?
a refrigerator
All of the following are examples of a price EXCEPT:
a tax.
market segmentation
aggregating prospective buyers into groups that (1) have common needs and (2) will respond similarly to a marketing action.
Which of the following is the best example of a shopping product?
an MP3 player
A ___________ is any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's products or services.
brand name
A __________ is most often used in marketing to study the impact on profits of changes in price, fixed costs, and variable costs.
break-even chart
In the new-product development process, the __________ stage involves specifying the product features and marketing strategy along with making financial projections needed to bring it to market.
business analysis
Popcorn was first introduced as a salty snack. Later, the product was repositioned as a healthy snack due to its high fiber and low calories. Brands such as Orville Redenbacker and Pop Secret began promoting these benefits to __________.
catch a rising trend
Which of the following product repositioning strategies requires a change in the physical product?
changing the value offered
Items that a consumer purchases frequently, conveniently, and with a minimum of shopping effort are referred to as
convenience products.
A number of years ago, Pokémon was the hottest name in toys. But as other more high-tech toys appeared, the popularity of Pokémon waned, as did its sales. Pokémon has become only a memory for most toy retailers and consumers. Pokémon is in the __________ stage of its product life cycle.
decline
Newsweek ran a pricing experiment that involved setting different prices for its magazine in different cities and counting the number of units sold. After adjusting for factors like the population of the different cities, Newsweek could plot these prices and units sold in a graph called a(n)
demand curve.
The key to setting a final price for a product is to find an approximate price level to use as a reasonable starting point. Four common approaches to helping find this approximate price level are (1) __________, (2) cost-oriented, (3) profit-oriented, and (4) competition-oriented approaches.
demand-oriented
A major characteristic of business products is that their sales are often the result of __________; that is, sales of business products frequently result from the sale of consumer products.
derived demand
The life cycle of a product depends on sales to customers. The shapes of life-cycle curves indicate that most sales occur after the product has been on the market for some time. The concept that a product diffuses, or spreads, through the population is referred to as __________.
diffusion of innovation
The first step in segmenting and targeting markets is to
group potential buyers into segments.
What is target pricing?
estimating the price that ultimate consumers would be willing to pay for a product and then working backward through markups taken by retailers and wholesalers to determine what price they can charge wholesalers for the product
secondary data
facts and figures already recorded prior to the project
primary data
facts and figures newly collected for the project
When following the five-step marketing research approach, defining the problem is the __________ step.
first
A __________ involves setting different prices for products and services depending on individual buyers and purchase situations in light of demand, cost, and competitive factors.
flexible-price policy
A publishing company sponsors an informal one-time-only session with seven college instructors who use a given introduction to business textbook. These instructors meet a moderator in an interview room with a one-way mirror. The moderator asks these instructors their opinions about the textbook, its supplements (instructor's manual, PowerPoint slides, video cases, etc.), and the product's competition. This is an example of a(n)
focus group.
The marketing objective of a firm whose product is in the maturity stage of the product life cycle is to __________.
hold market share through product differentiation
questionnaire data
idea generation and idea evaluation
Internal data
inside the firm inputs (budgets, financial statements, sales calls reports) outcomes (actual sales and customer comms)
Services are
intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value.
When a marketing researcher uses a collection of reports, customer letters, financial statements, and surveys from different departments within her firm, she is using
internal secondary data.
The purpose of the five key steps in segmenting and targeting markets that link customer needs to marketing actions is to
link market needs of customers to the organization's marketing program.
Which of the following is a criterion used to select a target market segment?
market size
Riding lawn mowers MOST LIKELY would be in the __________ stage of the product life cycle.
maturity
Potential buyers within a segment should be
similar in terms of responding to a marketing action.
A radio advertisement features a female buyer who is very enthusiastic about the pricing policies of the Kia automobile dealers. In the testimonial-type advertisement, the car buyer laments about the difficulty she experienced with other car dealers in haggling over a final price for a car. In comparison, the buyer touts the ease with which she arrived at a final price for her new Kia Soul automobile—she simply entered the showroom, asked for the price of the car she preferred, and the salesperson quoted her the "no haggle" selling price. No matter which Kia dealer she visited, the buyer (or any other buyer, for that matter) would be quoted the same price for the same automobile. The advertisement represents Kia's __________ policy.
one-price
The two main types of data are
primary and secondary
A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as a(n)
product
A marketing strategy that involves a firm using different marketing mix activities to help consumers perceive the product as being different and better than competing products is referred to as __________.
product differentiation
The place a product occupies in consumers' minds on important attributes relative to competitive products is referred to as
product positioning.
Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and __________.
recommending actions
Market segmentation involves aggregating prospective buyers into groups that have common needs and will
respond similarly to a marketing action.
Two special methods vital to marketing researchers are __________ and __________.
sampling; statistical inference
To enable manufacturers to smooth out manufacturing peaks and troughs and thereby contribute to more efficient production, manufacturers offer
seasonal discounts.
What is the fourth step in segmenting and targeting markets?
select target markets
Above-, at-, or below-market pricing
sets a market price for a product or product class based on a subjective feel for the competitors' price or market price.
What is prestige pricing?
setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it
Which of the following is NOT a pricing constraint?
social responsibility impact the product has on society
The sum of fixed cost and variable cost represents __________.
total cost
An advantage of using a panel for marketing research is
the company can find out if consumers change their purchasing behavior over time.
Consumer product classifications are based upon three variables: (1) frequency of purchase; (2) attributes used in making the purchase decision; and (3) __________.
the effort the consumer spends on the decision
Which of the following would be an example of a variable cost for a publication like SHAPE magazine that is targeted to young women seeking a healthier lifestyle?
the paper and ink for printing the magazine
Price elasticity of demand refers to
the percentage change in quantity demanded relative to the percentage change in price.
A break-even point refers to
the point at which total revenue and total cost are equal.
