Marketing 101

The product development stage requires______>

a huge jump in investment

If a consumer purchases a new flat-screen "smart" television which can connect to services like Netflix and Pandora, what is the core customer value involved?

connection to entertainment and information

Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate sales, the company must ________.

consider the sales history of similar products

The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.

consistency

What are the two dimensions of product quality?

consistency and level

What sets the ceiling for product prices?

consumer's perception of the product's value

________ are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.

convenience products

A ________ consists of a set of buyers who share common needs or characteristics that the company decides to serve.

Target Market

Which of the following is the reason a company may choose not to focus on the largest, fastest-growing segments?

The Smaller segments may be profitable to the firm

Why are customers often considered the most important sources of new product ideas?

The company can analyze customer questions and complaints to find new products that better solve consumer problems

Which of the following is true of value-based pricing?

The targeted value and price drive decisions about what costs can be incurred and the resulting product design

Acquisition involves the purchase of a whole company, a patent, or a license to produce someone else's product

True

________ refers to a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Undifferentiated Marketing

In the context of behavioral segmentation, markets segmented by ________ can be categorized into light, medium, and heavy product users.

Usage Rate

________ refers to how a company will create differentiated value for targeted segments and what positions it wants to occupy in those segments.

Value Proposition

Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is _________, which addresses the question, "what is the buyer really buying?"

core customer value

The product life cycle presents challenges. Which of the following is LEAST likely to require a company to adapt its marketing strategies?

decreased manufacturing costs

Which of the following is an example of a convenience product?

fast food

________ show(s) consumer perceptions of a company's brands versus competing products on important buying dimensions.

Perceptual Positioning Maps

Business marketers use geographic, demographic, benefit, user status, usage rate, and loyalty status to segment their markets. They also use ________, customer operating characteristics, purchasing approaches, and situational factors.

Personal Characteristics

Anchor Tractors focuses on selling its farm equipment in North America and Europe. It has not yet considered expanding into the Middle East. Which factor is likely most important in this decision regarding expansion

Political

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

Positioning Statement

Through ________ differentiation, brands can be differentiated on features, performance, or style and design.

Product

A ________ refers to the way a product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products.

Product Position

What sets the floor for product prices

Product costs

Which of the following exemplifies a service?

Retail

A market segment that is large enough or profitable enough to serve is ________.

Substantial

Which of the following is an external source for ideas?

Suppliers

A ________ consists of all the product lines and items that a particular seller offers for sale.

product mix

________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

product quality

Consumer products refer to ________.

products and services bought by final consumers for personal consumption

Which of the following statements characterizes the introduction stage of the PLC?

profits are nonexistent

Which of the following best characterizes the decline stage of product development?

sales and profit decline

Which of the following is true with regard to services

services are a form of product that consists of activities, benefits, or satisfactions offered for sale

Marketing mix planning begins with ________.

-building an offering that brings value to target customers -The offering becomes the basis on which the company builds profitable customer relationships

Which of the following is an example of a pure tangible good?

A bag of potato chips

Which of the following is a goods-and-services combination?

A milkshake at an ice cream store

Which of the following is true about behavioral segmentation on the basis of the loyalty variable?

BY looking at customers who are shifting away from its brand, a company can learn about its marketing weaknesses and take actions to correct them

Harvey's Bookstore is a popular online bookstore that has differentiated itself through smooth-functioning delivery networks. This is an example of ________ differentiation.

Channel

Orion Inc. markets luxury watches. It targets the wealthy global elite segment, regardless of their geographic location. Orion most likely uses ________ segmentation.

Cross-Market

________ segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.

Differentiable

_______ marketing is more suited for products that vary in design.

Differentiated

A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each is known as ________.

Differentiated Marketing

Double Drill Inc. segments its foreign markets by per capita income. This firm segments the international markets based on ________.

Economic Factors

Price is the most inflexible of the marketing mix elements.

False

Market offering includes everything from pure tangible goods to pure services, as well as combinations of goods and services. Which of the following is NOT a product or service?

Free Concert

Which of the following is NOT a benefit of using multivariable segmentation systems?

Help companies more accurately price their products to appeal to key customer segments

Which of the following is NOT likely to be a question asked in the new product screening process?

How many items will the company sell in the first two years?

________ is the process by which firms interact one-to-one with masses of customers to design products and services tailor-made to individual needs.

Mass Customization

When the size, purchasing power, and profile of a market segment can be calculated, the market is ________.

Measurable

________ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs.

More for more

Which of the following marketing strategies is most suitable for smaller firms with limited resources?

Niche Marketing

Product planners need to consider products and services on three levels. At the third level, product planners must build ________.

an augmented product

A ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service.

brand

Which stage of new product development requires management to estimate minimum and maximum sales to assess the range of risk in launching a new product?

business analysis

________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment.

capital items

Introducing a new product into the market is called ________.

commercialization

Which of the following is true about the concentrated marketing strategy?

companies that rely on a few segments for all of their business will suffer if a segment turns sour

Which of the following is a potential drawback of multibranding?

each brand might obtain only a small market share, and none may be very profitable

Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

everyday low

Which of the following involves introducing less-expensive versions of established, brand name products?

good-value pricing

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

growth

John's fascination for his grandmother's sherbet recipes inspired him to come up with a recipe for SherBetter, a gourmet sherbet for the American market. Which of the following stages of the new product development process does this exemplify?

idea generation

New product development starts with ______.

idea generation

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.

image

Which of the following is a common reason for new product failure?

incorrect estimation of the market size

Which of the following is an internal source for new product ideas?

intrapreneurially programs

A product's ________ identifies the product or brand, describes several things about the product, and promotes the brand.

label

________ involves designing and producing the container or wrapper for a product.

label

Product mix ________ refers to the total number of items a company carries within its product lines.

length

The major product line decision involves product ________, the number of items in the product line.l

line length

Which of the following is NOT a category of consumer products

luxury

Which of the following is a significant challenge by the product life cycle?

new product development

________ are industrial products

office supplies

Lubricants, coal, paper, and pencils are examples of ________.

operating supplies

________ marketing consists of activities undertaken to create, maintain, or change attitudes toward particular people. People ranging from presidents, entertainers, and sports figures to professionals such as doctors, lawyers, and architects use it to build their reputations.

person

Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________ marketing.

place

________ marketing involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, or regions.

place

________ are the major marketing factors in the sale of most manufactured materials and parts.

price and service

Which of the following is true with regard to price?

price is the sum of all the values that customers give up to gain the benefits of having a product

Underpriced products _____.

produce less revenue that they would if they were priced at the level of perceived value

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.

product

Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by ________.

product attributes

An attractive product idea must be developed into a ________.

product concept

A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges.

product line

_______ involves adding more items within the present range of the product line.

product line filling

Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this instance, Erica is planning to buy a(n) ________ product.

shopping

________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

shopping products

A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood, is an example of a ________.

speciality product

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?

standard test markets

The strongest brands are positioned on ________.

strong beliefs and values

What is included in the first part of a marketing strategy statement?

target market description

Acquisition refers to ______

the buying of a whole company, a patent, or a license to produce someone else's product

Product planners need to consider products and services on three levels. At the second level, product planners must ________.

turn the core benefit into an actual product

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying.

unsought products

A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance?

value-based pricing

Product mix ________ refers to the number of different product lines the company carries.

width