MIE Chapter 12

Which of the following exemplify sales promotion through sampling?

1. Car dealer test drives 2. Supermarket taste test 3. Scratch and sniff magazine inserts

Which of the following may be a measure of product quality?

1. Easily maintained 2. Reliable 3. Durable

Which of the following characterize the decline stage of the product life cycle?

1. Elimination of models or items 2. Rapid drop in sales 3. Disappearing profits

Which of the following characterize the introductory stage of the product life cycle?

1. High investment in research and development 2. Negative profits 3. Low product acceptance

Place the steps of product development in the correct order

1. Idea Development 2. New Idea screening 3. Business Analysis 4. Product Development 5. Test Marketing 6. Commercialization

List the four steps for calculating the value of a product, starting with step one.

1. Identify target customers 2. Identify their best alternative 3. Determine the product's difference 4. Calculate value based on its differentiation

List the stages of the product life cycle in sequence from beginning to end. (Note: The first stage should be the top item on your list)

1. Introduction 2. Growth 3. Maturity 4. Decline

Which of the following characterize convenience products?

1. Little planning time in purchase 2. Frequently purchased

Which four are common pricing objectives?

1. Maximizing profits and sales 2. Maintaining the status quo 3. Survival 4. Boosting market share

Organizations that bridge the gap between a product's manufacturer and the end user are called intermediaries or middle men. Two types of intermediary organizations are _______

1. Retailers 2. Wholesalers

The promotion mix consists of ________`

1. Sales Promotions 2. Advertising 3. Personal selling 4. Publicity

The warehousing function completes which of the following?

1. Stores goods 2. Receives goods 3. Ships goods

Which of the following are typical objectives of promotion?

1. To stabilize sales 2. To simulate demand 3. To inform, remind, and reinforce customers

Which of the following are characteristics of advertising?

1. Transmitted through a mass medium 2. Uses various media 3. Non-personal communication

Which of the following questions will be answered during the business analysis stage of new product development?

1. Will the product be profitable 2. Is the product compatible with the marketplace?

Individual Brands

A company gives each product within its product mix its own brand name so different brands can be targeted at different segments of the same market

Which of the following is NOT a type of sales promotion?

A customer blogging about a product

Family of Brands

A firm's products all carry the same name or at least part of the name of the firm's brand, thus capitalizing on the firm's brand recognition in the marketplace

What is text marketing?

A trial mini-launch of a product in a limited area

A _______ involves designing a series of advertisements and placing them in various media to reach a particular target audience

Advertising Campaign

______ is the process of naming and identifying products.

Branding

______ products are used directly or indirectly in the operation or manufacturing processes of businesses

Business

Promoting a product to distributors and retailers to get wide distribution is called _______

Commercialization

Profits begin to decline during the growth stage because ______

Competitors enter the market and drive prices downward

Symbolic Prestige Pricing

Consumers associate high prices with high quality and are willing to pay the higher price.

Odd/even pricing

Consumers will buy more of a product for $9.99 than $10 because $9.99 seems like a bargain price

During the ______ stage of the product life cycle, sales fall rapidly, profits continue to decline, and may even become losses as prices are cut

Decline

Janet works part-time for Pampered Chef. Her selling technique is to hold "parties" in people's homes where she cooks food and demonstrates the kitchen products she has for sale. This is an example of _______

Direct Selling

Seasonal

Discounts designed to help even out production capacity

Promotional

Discounts on selected products designed to increase customer interest.

Quantity

Discounts to encourage large volume purchases

________ distribution exists when a manufacturer gives an intermediary the sole right to sell a product in a defined geographic area.

Exclusive

Brands sold with no brand name at all are called _______ brands.

Generic

When the marketing managers looks at the organization's resources and objectives to assess the firm's ability to produce and market the product they are in the ______ stage of new product development

Idea Screening

Allow for more detail and explanation

Magazine and newspaper advertisements

Publicity

Messages are mainly informative and describe what a firm is doing, or other newsworthy information

Advertising

Messages tend to be informative, persuasive, or both and are designed to have an immediate impact and to persuade a person to act

The combination of all products lines offered by a manufacturer is called the product _____

Mix

A low initial entry price used to attract many customers and help a company gain market share is _______ pricing.

Penetration

______ distribution includes all the activities necessary to move products from producers to consumers.

Physical

During which stage of new product development is a prototype of the product created?

Product Development

A group of closely related products that are treated as a unit because they use a similar marketing strategy are referred to as a _____

Product Line

Any information about an individual, a product, or an organization that is distributed to the public through the media and that's not paid for a controlled by the seller is known as _______

Publicity

The promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they will request products from retailers is known as a _____ strategy

Pull

The promotional strategy in which the producers uses wholesalers discounts, personal selling, sales promotion contests, and other promotional tools to convince wholesalers and retailers to stock and sell its merchandise is known as a ______ strategy

Push

Price goes up

Quantity demanded goes down

Price goes down

Quantity demanded goes up

While shopping, Marcus sees two pairs of jeans that he likes. One is a brand he is familiar with and is priced at $59.95. The other pair is also a brand name, but is priced at $39.95. Based on the higher price of the other pair of jeans. Marcus decides to buy the one priced at $39.95 because it femmes like a better deal. This exemplifies the idea behind _____ pricing.

Reference

Macy's and Kohl's are considered to be ______ because they buy products from manufacturers or other intermediaries and sell them to consumers for home and household use.

Retailers

______ distribution uses only a small number of all available outlets to sell products.

Selective

Products the consumer buys only after comparing value, quality, price, and style from a variety of sellers are called ______

Shopping products

_______ ________ management involves long-term partnerships among marketing channel members working together to reduce costs, waste, and unnecessary movement in the entire marketing channel to satisfy customer

Supply Chain

Brands that are initiated and owned by the manufacturer, such as Xerox or SONY, are called ________ brands.

manufacturer

The objectives of _____ are to stimulate demand; to stabilize sales and to inform, remind, and reinforce customers

promotion

Require simple, concise messages

short broadcast spot announcements and outdoor displays such as billboards