Marketing - Ch. 6-9

Marketers must consider external considerations in establishing pricing. Which of the following represents those external​ considerations?

The nature of the market and demand and other environmental factors

Service providers often face price competition. As a solution to​ this, service providers can further differentiate themselves based on which three​ characteristics?

The service offer, delivery, and image.

How do companies apply pricing strategies to accommodate differences in customer segments and​ situations?

They apply a variety of price adjustment strategies.

What are perceptual positioning maps used​ for?

To show consumer perceptions of different brands on important buying dimensions

The differentiation and positioning task consists of three​ steps: identifying​ ________ that create competitive​ advantage, choosing​ ________ on which to build a​ position, and selecting an overall positioning strategy.

a set of possible​ differentiations; advantages

The seven price adjustment strategies are​ _____, ______,​ _____, promotional​ pricing, geographical​ pricing, dynamic​ pricing, and international pricing.

allowance​ pricing, segmented​ pricing, psychological​ pricing

All products have a life cycle. The sales of a typical product follow​ __________________, which is made up of five stages.

an​ S-shaped curve

Broadly​ defined, a product is anything that can be offered to a market for​ ___________, or consumption that might satisfy a want or need. Products include not only physical​ objects, but also​ services, events,​ persons, places,​ organizations, ideas, or mixtures of these entities.

attention, acquisition, use

The strongest brands are positioned on​ ______.

beliefs and values

A​ brand's positioning must be continuously communicated to consumers. Although advertising can​ help, brands are maintained not by​ advertising, but by​ customers' ________.

brand engagement and brand experiences

Which of the following terms correctly describes the positive differential effect that knowing the brand name has on customer response to the product or the​ service?

brand equility

Companies have to think carefully when considering price changes. They must consider which of the​ following?

buyer and competitor reactions

Printer companies often charge a fairly low price for their inkjet printers​ (relative to​ costs) and a high price for replacement cartridges. These companies are using a strategy of​ ___________ pricing.

captive- product

External sources for new product ideas include​ _________.

competitors, distributors and suppliers, and customers

Firms with limited resources often target a market niche that is either ignored or unimportant to larger firms. This represents​ a(n) _______ strategy.

concentrated marketing

The advantages of standardizing products and services for international markets include​ _______________, lower manufacturing​ costs, and lower marketing costs.

consistent global​ image, lower product design costs

​Value-based pricing begins with analyzing​ ___________.

consumer needs and value perceptions

Which of the following correctly describes the classifications into which products and services​ fall?

consumer products and industrial products

Consumer products are products and services bought by final consumers for personal consumption. Consumer product classifications include​ _______________, and unsought products.

convenience, shopping, specialty

Charles Revson of Revlon once​ said, "In the factory we make​ cosmetics; in the store we sell​ hope." Which product level is Revson referring​ to?

core customer value

Price ceilings are set by customer perception. Which of the following sets the floor for the price that a company​ charges?

costs

Many companies are now developing​ ________ programs to generate new product ideas.

crowdsourcing or open-innovation

Setting the base price for a product is only the start. The company must then adjust the price to account for​ ____________________________ differences.

customer and situational

Although business marketers use many of the same variables to segment their​ markets, they also use some additional​ variables, such as​ ________, ____________.​ _________, and personal characteristics.

customer operating​ characteristics, purchasing​ approaches, situational factors

​Ideally, a company must carry out strong new product planning and set up a systematic new product development process that is​ _________ to find and grow new products.

customer-driven

Marketers use three major pricing​ strategies: ______________________.

customer​ value-based pricing,​ cost-based pricing, and​ competition-based pricing

The three major pricing strategies are​ ______.

customer​ value-based pricing,​ cost-based pricing, and​ competition-based pricing

​______________________ is part of a​ company's decision on how it will create market offerings to deliver superior customer value.

differentiation

Once market segments have been​ selected, the company then must decide on​ _____________________________.

differentiation and positioning strategy

New product development consists of eight sequential steps. Which step reduces the number of ideas based on the​ company's criteria?

idea screening

When marketers create services marketing​ strategy, they understand they must execute on external marketing but also develop​ _______________________________.

internal strategies to motivate employees and interactive marketing to create service delivery skills among service providers

Pricing strategies usually change as a product passes through its life cycle but are especially challenging during the​ _______ stage.

introductory

One important consideration in using a differentiated targeting strategy is that​ _______.

it can increase costs

Firms have four brand development choices. These are​ _____________.

line​ extensions, brand​ extensions, multibrands, and new brands

A company can use​ _________ by setting a low initial price to penetrate the market deeply and win a large market share.

market penetrating pricing

Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market​ share?

market penetration pricing

A company sets a high price on a new product it introduces to maximize revenue from various market segments. Which new product pricing strategy is the company​ using?

market skimming pricing

In pricing innovative new​ products, a company can use​ ________ by initially setting high prices to maximize the amount of revenue from a sufficient number of buyers willing to pay the higher price.

market skimming pricing

Companies need to consider many factors when choosing a​ market-targeting strategy.​ However, which targeting strategy is best depends on company​ resources, product​ variability, product​ life-cycle stage, as well as​ ________________________.

market variability and competitive marketing strategies

A​ company's pricing strategy is affected by internal factors such as​ ___________________.

overall marketing​ strategy, objectives, marketing​ mix, and other organizational considerations

Of the​ following, which is NOT one of the​ product-mix pricing​ situations?

penetration pricing

Another price adjustment strategy is​ ______________ pricing, where the company sells a product at two or more prices to accommodate different​ customers, product​ forms, locations, or times.

segmented

Good service companies understand the service profit​ chain, which links​ ________.

service firm profits with employee and customer satisfaction

Services are characterized by four key​ aspects: ______________________.

services are​ intangible, inseparable,​ variable, and perishable

Product

A product is anything that can be offered to a market for​ attention, acquisition,​ use, or consumption that might satisfy a want or need.

___________________ are the two ways firms can obtain new products.

Acquisitions and new product development

Which of the following statements regarding the marketing of international products and services is​ correct?

Because markets and consumers around the world differ​ widely, companies must usually adapt their product offerings in different world markets.

When a company builds a​ brand, it needs to make important decisions regarding the brand. Of the​ following, which is NOT one of those​ decisions?

Brand licensing opportunities

At which step does a company perform a review of the​ sales, costs, and profit projections for a new product to determine whether the new product is likely to satisfy​ objectives?

Business analysis

Like consumer​ markets, business markets are segmented. Which of the following describes the variables that marketers use to segment business​ markets?

Business​ demographics, operating​ characteristics, purchasing​ approaches, situational​ factors, and personal characteristics

Question 5, Warm-up 6.3.1 HW Score: 100%, 8 of 8 points Points: 1 of 1 Close To target the best market​ segments, the company first evaluates various factors related to market attractiveness. Of the​ following, which is NOT one of those​ factors?

Compatibility with company mission and vision

To target the best market​ segments, the company first evaluates various factors related to market attractiveness. Of the​ following, which is NOT one of those​ factors?

Compatibility with company mission and vision

To successfully implement a​ market-skimming strategy for a new​ product, which of the following conditions needs to be​ present?

Competitors are not able to enter the market quickly and undercut the high price.

In which targeting strategy does a firm go after a large share of one or a few smaller​ segments?

Concentrated marketing

In setting its overall pricing​ strategy, companies need to consider three​ factors: ______,​ ______, and​ ______.

Customer perceived​ value, costs, and​ competitors' pricing strategies

​_______ of the​ product's value set the ceiling on​ pricing, while​ _______ set the floor.

Customer​ perceptions; costs

In addition to segmentation and​ targeting, there are two other major steps in designing a customer​ value-driven market​ strategy: ________ seeks to create superior customer value in the mind of the​ consumer, and​ ________ seeks to firmly place the market offering in the minds of target cu

Differentiation; positioning

Which of the following is true regarding the​ price-demand relationship?

If demand is​ elastic, sellers will consider lowering their prices.

What are the four major steps in designing a customer​ value-driven marketing​ strategy, in the correct​ sequence?

Market​ segmentation, market​ targeting, differentiation, and positioning

Which stage of the product life cycle normally lasts longer than the previous stages and poses strong challenges to marketing​ management?

Maturity

Which of the following would be an appropriate strategy in the maturity stage of the product life​ cycle?

Modify the​ market, product​ offering, and marketing mix.

When Microsoft or Apple sells software as a​ package, it is engaging in what type of​ pricing?

Product bundle pricing

A new product may fail for many reasons. Which of the following is NOT one of​ them?

Rapid market acceptance

What is market​ segmentation?

Dividing a market into distinct groups of buyers who have different​ needs, characteristics, or behaviors and who might require separate marketing strategies or mixes

The totality of a​ company's product lines and items offered to customers is known as its​ _________________.

product mix

To be more socially​ responsible, some companies are appointing​ _____________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.

product stewards

Companies must make important decisions about their individual products and services. Individual product decisions involve​ ________________, and product support services.

product​ attributes, branding,​ packaging, labeling

Marketers can apply the​ ________ as a useful framework for describing how products and markets work and help develop good marketing strategies for the different​ life-cycle stages.

product​ life-cycle concept

Social responsibility includes public policy issues and regulations involving​ _________________, and product warranties.

acquiring or dropping​ products, patent​ protection, product quality and safety

In building​ brands, companies need to make decisions about four key powerful​ areas: ________________________________.

brand​ positioning, brand name​ selection, brand​ sponsorship, and brand development

The new product development process consists of sequential steps. The first step is​ _______ and the last step is​ ______________.

idea generation: commercialization

Services are characterized by four key​ aspects, with each posing problems and marketing requirements. The four key aspects are​ ________________________.

intangible, inseparable, variable, and perishable

Once a company has decided which segments to​ enter, it must decide on its​ ________ strategy.

positioning and differentiation

The distinction between a consumer product and an industrial product is based on the​ ________ for which the product is purchased.

purpose

Companies find and develop new product ideas from a variety of sources. Which of these is an internal source for new product​ ideas?

r & d

Segmentation provides a powerful tool for marketers of all kinds. It can help companies identify and better understand key customer​ segments, ________________ to their specific needs.

reach them more​ efficiently, and tailor market offerings and messages

Beyond the market and the​ economy, what other factors in its external environment must a company consider when setting​ prices?

resellers and how they react to various​ prices; the​ government; and various social concerns.

Major variables used to segment consumer markets include which of the​ following?

​Geographic, demographic,​ psychographic, and behavioral

______________________ is part of a​ company's decision on how it will create market offerings to deliver superior customer value.

Differentiation

Services marketing strategy calls not only for external​ marketing, but also for internal marketing to motivate​ ________ and interactive marketing to create service delivery skills among​ ________.

employees; service providers

Which of the following correctly identifies the levels for which marketers make product and service​ decisions?

individual​ product, product​ line, and product mix decisions

When Dr. Lawncare developed his revolutionary new weed​ killer, he expected​ that, during the introductory stage of the product life​ cycle, ___________.

sales would be slow and with negative or low profits

To determine which market segments to target and​ serve, the company first evaluates each​ segment's ________.

size and growth​ characteristics, structural​ attractiveness, and compatibility with company objectives and resources

The first part of a marketing strategy statement describes the​ ________ of a new product.

target market

Once segments have been​ identified, market​ ________ evaluates each​ segment's attractiveness and selects one or more to serve.

targeting

External factors when considering pricing include​ ________________________________ such as the​ economy, reseller​ needs, and government actions.

the nature of the market and demand and environmental factors such as the​ economy, reseller​ needs, and government actions.

For​ services, there is a form of​ captive-product pricing known as​ _____ pricing.

two part

The full positioning of a brand is called the​ brand's ________, which is the full mix of benefits on which a brand is differentiated and positioned.

value proposition

The number of product lines a company manages is the product mix​ ______. The total number of items a company carries within its product line is the product mix​ _____.

width; length

When a company lengthens a product line by adding more items within that​ line's current​ range, the company is​ ________.

filling the line

There are four major variables that might be used in segmenting consumer markets. Those major variables are​ ________ variables.

geographic, demographic,​ psychographic, and behavioral

The product development process starts with​ ________. Next comes​ ________, which reduces the number of ideas based on the​ company's own criteria.

idea​ generation; idea screening

Other internal factors that influence pricing decisions include​ ____________.

the​ company's overall marketing​ strategy, objectives, and marketing​ mix, as well as organizational considerations

The​ ________________________ is a​ brand's full positioning or the full mix of benefits on which the brand is positioned.

value proposition

Marketers must make important decisions when developing individual products and services. Which of the following correctly identifies those important​ decisions?

Product​ attributes, branding,​ packaging, labeling, and product support services

​___________ are payments or price reductions that reward dealers for participating in advertising and​ sales-support programs.

Promotional allowances

When effective programs can be designed for attracting and serving market​ segments, these segments are​ ________.

actionable

Because markets and consumers worldwide differ​ widely, companies usually respond to these differences by​ ________.

adapting their product offerings

Market segmentation is the act of dividing a market into distinct groups of buyers who have​ ________ and who might require separate marketing strategies or mixes.

different​ needs, characteristics, or behaviors

Combining products for one price can promote the sales of products consumers might not otherwise​ buy, but the combined price must be low enough to get them to buy the package. This is known as​ ______.

product bundle pricing

In the new product development​ process, ideas that pass the idea screening step continue through​ ________. Strong concepts proceed to​ ________.

product concept​ development; marketing strategy development

Marketers must consider potential product issues related to social responsibility. Of the​ following, which is NOT one of the product issues associated with social​ responsibility?

product differentiation and positioning

There are several types of product mix pricing​ situations, which include​ ______________, by-product​ pricing, and product bundle pricing.

product line​ pricing, optional-product​ pricing, captive-product​ pricing

The stages of the product life cycle are​ ______________________________.

product​ development, introduction,​ growth, maturity, and decline