Marketing

General Mills prices its cereal by looking at other cereal brands that offer similar value. This is an example of which pricing technique? cost-plus pricing value pricing golden goose pricing competitive pricing FEEDBACK

competitive pricing

Which step in the new product development process is thought to be the most important for assessing product potential in the market? marketing strategy product development business analysis idea screening test marketing commercialization concept testing idea generation

concept testing

You realize you are out of milk after you pour your cereal. You run to the store to get a couple of gallons. Milk is an example of a(n) ________. unsought product specialty product business/industrial product shopping product convenience product

convenience product

Marketing managers use a(n) ___________ to communicate strategy to advertising agencies. pitch creative brief annual report RFP executive summary

creative brief

Customers within a distinct _____________ will respond similarly to marketing efforts directed at them. usage situation demographic segment geographical location brand segment market segment

market segment

Coca-Cola uses _________ by taking their price from branded soda drinks that offer similar value. identical-cost pricing competitive pricing cost-plus pricing value pricing golden goose pricing

competitive pricing

A segment is a homogeneous group of potential customers. Which of the following is the most useful way to segment a market? geographic behavioral demographic benefits psychographic

behavioral

Profit = _______________ Total Revenue - Total Cost (Price × Quantity) - (Fixed Costs + Variable Cost × Quantity) both of the above none of the above

both of the above

Political models break voters into three groups: the love, swing, and hate groups. What is this segmentation approach called? political segmentation substantial segmentation brand champion segmentation proposition segmentation attitude segmentation

brand champion segmentation

"'When You Care Enough to Send the Very Best' is more than a slogan for Hallmark, it is a business commitment . . . we continue to innovate and develop new products and services—in addition to greeting cards—to meet changing consumer needs."This is an example of which part of the creative brief? brand legacy copy strategy key customer groups executional considerations key competitors

brand legacy

The Snickers brand is the best-selling candy bar of all time and is estimated to have annual global sales over $2 billion. Since the brand was introduced, Snickers is known for "its ability to replenish needed energy, indulging cravings for something sweet and nourishing, and its ability to satisfy." This is an example of which part of the creative brief? copy strategy key customer groups brand legacy key competitors executional considerations

brand legacy

Blue Bunny's production of pistachio almond ice cream is very dependent on the industrial ice cream machinery in its plant. The machinery would be considered _________. supplies and services materials and parts capital items product lines product mixes

capital items

what are 7 steps of product development process

(1) idea generation, (2) idea screening, (3) concept testing, (4) marketing strategy, (5) business analysis, (6) product development, and (7) test marketing

You present your market segmentation research to your boss and discuss the different ways to segment your market. Which one of the following would be the best way to segment a market? -Divide segments by the region they live in. -Divide segments by their attitude toward the company. -Divide segments by the benefits they get from shopping at your store. -Divide segments by their age and gender. -Divide segments by the values they live by.

-Divide segments by the benefits they get from shopping at your store.

Which of the following would be considered a "product item"? Häagen-Dazs gelato 2013 Chevrolet sports cars Betty Crocker HP Laptops 1 oz. Doritos Nacho Cheese Chips

1 oz. Doritos Nacho Cheese Chips

The range of possible prices, where sellers have incentive to sell and buyers have incentive to purchase, is: The average of all reference prices, competitor prices, and substitute prices Based on marketing efforts minus reference and competitor prices Where demand equals profit Above the buyer's perceived value and below the seller's cost of goods sold Above the seller's cost of goods sold and below the buyer's perceived value

Above the seller's cost of goods sold and below the buyer's perceived value

Grow Old With Me specializes in providing discounts for seniors (over the age of 65) across a variety of activities (restaurant gift cards, movie tickets, etc.). This company's only promotion/distribution channel is via the Internet. Advertising online doesn't seem to be reaching nearly as many seniors as expected, and revenue has been extremely low. Based on this information, which criteria for segmentation is lacking? Measurable Accessible Durable Substantial Unique needs

Accessible

Research on marketing services identifies five determinants of service quality--reliability, assurance, tangibles, empathy, and responsiveness. Reliability include: Delivering and performing the service dependably and accurately Competence, courtesy, and credibility Access, communication, and understanding Appearance of physical facilities and personnel Helping customers promptly

Delivering and performing the service dependably and accurately

Reference price is an important concept in pricing strategy. ______________is what everyone else is paying for the product, and _______________is what you think you should pay, given your past experience and the buying situation. Relevant range reference price; personal reference price Referral reference price; accepted reference price External reference price; internal reference price Internal reference price; external reference price High reference price; low reference price

External reference price; internal reference price

Which of the following positioning methods asks customers to make judgments regarding the importance of a brand's features and benefits to the buying decision? Perceptual mapping Gap analysis Hierarchical values analysis None of the above

Gap analysis

Once a firm has developed a competitive angle, firms can do which of the following to make sure their product or service is a success in the market? Make comparisons and prove them with demonstrations. Provide quantifiable support and demonstrate uniqueness. Offer incentives to consumers to purchase. Demonstrate product uniqueness and highlight solutions. Develop a great demonstration and highlight solutions.

Make comparisons and prove them with demonstrations.

What is the criteria for effective segmentation

Measurable, accessible, durable, substantial, unique needs

The marketing mix for services includes the 4P's of marketing (product, price, place, and promotion), plus: Processes, physical environments, and potential customers People, perishability, and personality Political environment, physical environment, and personal environment People, process, and physical environment People, politics, and psychology

People, process, and physical environment

With cost-plus pricing, the firm knows its costs but does not know much about customers and competitors. So marketing managers simply add a margin to the cost of the product to determine price. The added amount is generally the margin needed to make the return demanded by upper management or investors. What is the trouble with cost-plus pricing? The break-even volume is difficult to calculate. Competitors may copy the price. Distribution strategies may alter the outcome. Substitute products may have the same price. Product costs are irrelevant to buyers.

Product costs are irrelevant to buyers.

Of the four ways to segment the market, which way is based on the personalities and lifestyles of people? Psychographic Behavioral Demographic Geographic

Psychographic

What is the most useful way to position? Show that you are just as good as the competition. Show how you beat all the competition. Show how popular people love you. Show how you deliver what is most valued . Show how you fit consumers' lifestyles.

Show how you deliver what is most valued .

Fixed Costs = $4000 for the month Variable Costs for producing each toy = $0.50 Sales price for each Army Toy = $2.00 What is the break-even point in sales dollars for Bill's Army Toys in selling to the three western states?

The break even point in sales dollars is 5,334 dollars.

Fixed Costs = $4000 for the month Variable Costs for producing each toy = $0.50 Sales price for each Army Toy = $2.00 What is the break-even point in units for Bill's Army toys? What does that number mean to a marketing manager who is considering launching this product in three western states? (Number of households with children in the three western states thought to be around 10,000 households).

The break even point in units is 2,667. This means that they must sell that many toys. If they are going to sell in 3 western states they need to sell to 27% of the market to break even.

Toyota is introducing a new truck into the market. The truck is set at a high price, and the company hopes to earn a large profit. What is the downfall of this pricing technique? Pricing incentives will need to be applied. The marketing budget will be low. There are no downfalls—pricing is easy. The demand will be limited.

The demand will be limited.

Perceptual maps show the judgments customers make regarding the performance of a brand's features and benefits. Gap analysis extends the perceptual maps method by asking customers to make judgments regarding: Cultural differences among consumers The performance of competitive brands Psychological differences among consumers The importance of a brand's features and benefits to the buying decision The performance of external forces in the environment

The importance of a brand's features and benefits to the buying decision

Product positioning is: The place a product occupies in the target customers' minds Shelf size and location in major retail chains--grocery and department stores Geographic segmentation, often within major metropolitan and suburban areas A careful analysis of cross tabulations What marketers do to a product

The place a product occupies in the target customers' minds

Why doesn't "me too" positioning work as a value positioning strategy? Imitation is the sincerest form of flattery. Customers want consistency. Competitors may have a lower cost structure. Competitors are just too difficult to copy. The positioning approach does not give consumers a reason to change.

The positioning approach does not give consumers a reason to change.

Roger Reeves defined USP as having three parts. Which of the following is not part of this definition? The proposition must be one that the competition does not offer. The proposition must be used to create advertisements. Each product must make a proposition to the customer. The proposition must be able to generate new customers.

The proposition must be used to create advertisements.

Fixed Costs = $4000 for the month Variable Costs for producing each toy = $0.50 Sales price for each Army Toy = $2.00 What is the Unit Contribution and Percent Margin for Bill's Army Toys? Is this a good margin since the toy industry strives for keystone pricing (50% markup on toys)?

The unit contribution is 1.50 dollars and the percent margin is 75%. This is good because as long as the product is more valuable than the average toy it fits within the 25% range.

What is one key issue with cost-plus pricing? There is a potential loss of profits due to consumer surplus. It is difficult to determine actual cost. Customers assume the products are poor quality. Cost-plus pricing has a high threat of entry. Customers dislike buying cost-plus items.

There is a potential loss of profits due to consumer surplus.

Unit contribution is: Contribution multiplied by the total number of units sold. Unit price minus unit variable cost Unit price divided by total contribution Fixed cost divided by price minus unit variable cost The break-even volume for a specific product item

Unit price minus unit variable cost

Delta Airlines faces the service challenge of perishability because the company cannot save seats from the 7:00 am flight to New York for the 3:00 pm flight to Boston. What can Delta do to address this service challenge. Diversify into other forms of transportation Change the physical environment of the aircraft to provide tangible cues Provide more training for frontline employees Hire "Fox" employees to handle problems quickly Use pricing to manage fluctuating demand

Use pricing to manage fluctuating demand

At Olive Garden, customers have come to expect a certain level of quality. As a result, the restaurant chain trains all of their waiters with the same skills to ensure that they can deliver consistent service. This standard training program combats which of the challenges that services face? Intangibility Perishability Inseparability Variability

Variability

The range of possible prices, where sellers have incentive to sell and buyers have incentive to purchase, is __________. the average of all reference prices, competitor prices, and substitute prices based on marketing efforts minus reference and competitor prices where demand equals profit above the buyer's perceived value and below the seller's cost of goods sold above the seller's cost of goods sold and below the buyer's perceived value none of the above

above the seller's cost of goods sold and below the buyer's perceived value

Grow Old With Me specializes in providing discounts for seniors (over the age of 65) across a variety of activities (restaurant gift cards, movie tickets, etc.). This company's only promotion/distribution channel is the internet. Advertising online doesn't seem to be reaching nearly as many seniors as expected, and revenue has been extremely low. Based on this information, which criteria for segmentation is lacking? measurable substantial unique needs accessible durable

accessible

The Canon PowerShot 2300 is a digital camera. It comes with a 2.7" color LCD, 28mm wide-angle lens, and a dedicated movie button. These would be considered part of the _____________. actual product ancillary product core product augmented product competitive product

actual product

A competitive angle ________. sparks a personal connection with the consumer solves a problem for the consumer is unique and has a perceived element of "differentness" all of the above

all of the above

Advertisers need to make the ___________ obvious because many people ignore ads unless they are in the market to buy or looking to justify their purchase decision. product company (advertiser) benefits all of the above

all of the above

what are the three levels of a product

augmented product, actual product, core product

The most useful way to position a product is to __________. fit consumers' lifestyles be endorsed by a celebrity, expert, or other influential individual beat all the competition deliver what is most valued

deliver what is most valued

Sprite and 7-Up are very close together on a perceptual map of the soft-drink market. This means that they are _________. direct competitors with each other perceived in very high regard using identical marketing efforts more heavily consumed

direct competitors with each other

What product adopter group tends to buy products once they are proven to be successful in the market? late Majority laggards innovators early majority early adopters

early majority

Campbell's is a food company that is well known for the soup that it produces. However, Campbell's also produces juice products. An example of a product _________ would be all of Campbell's soups. item product line mix

line

A creative brief is created for Gatorade, an electrolyte drink. A strategic goal of Gatorade is that it is a revitalizing drink for active people. The company wants to increase the rate of use by highlighting many different usage occasions for Gatorade. The idea is to incorporate the revitalizing nature of the drink in an energetic advertisement. Which part of the creative brief was described? key customer groups executional considerations copy strategy key competitors brand legacy

executional considerations

The section of the creative brief that contains the ad objective is the ____________. brand legacy executional strategy key customer groups key competitors copy strategy

executional strategy

True or false: A long-term approach to win in the market is to win a customer on price.

false

"Need to believe" is about ________ a product that addresses a real problem, while "reason to believe" is about ________ that a product solves the problem. searching for; finding finding; showing displaying; proving showing; proving none of the above

finding; showing

Various hotel brands (Marriott, Hyatt, and Hilton) are evaluated based on their importance and performance of beds, pricing, amenities, bonus programs, and location. These results are displayed in a two-by-two format where the top right quadrant is high importance and high performance. This is an example of which positioning method? consumed most often unique selling proposition gap analysis hierarchical values analysis perceptual mapping

gap analysis

Which of the following positioning methods asks customers to make judgments regarding the importance of a brand's features and benefits to the buying decision? perceptual mapping gap analysis hierarchical values analysis none of the above

gap analysis

Wallace has recently opened a lemonade stand. He charges $2.00 for one glass. Gromit, another lemonade entrepreneur, decides to open a stand a few streets down and only charges $0.25 per glass. Wallace's customers decide to go to Gromit because he offers a similar product for less money. This demonstrates which pricing strategy? cost-plus pricing competitive pricing golden goose pricing promotional pricing value pricing

golden goose pricing

Which stage of the product life cycle seeks to maximize market share by adding features, improving quality, targeting new market segments, or adding new channels of distribution? growth introduction decline extension maturity

growth

We take a three-step research process that consists of eliciting distinctions, pyramiding down, and laddering up in order to analyze which brand of cereal Scott consumes most often in various situations. This is an example of which positioning method? perceptual mapping gap analysis unique selling proposition hierarchical values analysis consumed most often

hierarchical values analysis

Which of the following represents price skimming? low profit margins high price for a new product small marketing budget low price for a new product

high price for a new product

At the store, Brooke is shopping for some hand and body soap. As a deal shopper, she has _________. brand sensitivity and ________ price sensitivity. fill in high or low

high, high

what are the four unique characteristics of services

intangibility, inseparability, variability, and perishability

buybuyBaby just recently created a new baby monitor that monitors the breathing and snoring patterns of the infant and will notify parents of potential concerns before an emergency happens. Because this type of technology hasn't previously existed, buybuyBaby wants to inform the public of this new product to create awareness in the market. In this scenario, the baby monitor is in the _________ phase of the product life cycle. initiation introduction maturity decline growth

introduction

what are 4 stages of product life cycle

introduction, growth, maturity, decline

General Motors divided the car market using sensitivity to price. Miller Lite divided the beer market using sensitivity to calories. Gillette divided the safety razor market using sensitivity to gender. These methods fall under which term in the marketing strategy process? market segmentation target market selection usage situation positioning

market segmentation

Prunes have traditionally been sold to an older demographic to help with digestive regularity. A few years ago, several prune distributors began referring to prunes as "dried plums." Recently, Sunsweet introduced individually wrapped prunes marketed to younger consumers as a quick snack. Marketers modify the market and marketing mix when products are in the ___________ stage of the product life cycle. growth introduction cash cow maturity decline

maturity

"Del Sol products change color when exposed to the UV rays of the sun. These products are different from other souvenirs because they are distinctive, memorable, and fun souvenirs and gifts."The above description addresses which of the five questions to ask when sharpening a competitive angle? dominate situations unique product claim need to believe reason to believe quantifiable support

need to believe

"Which significant pain does the product address that is personally relevant to your target audience?" This question addresses which of the five questions to ask when sharpening a competitive angle? reason to believe unique product claim need to believe quantifiable support qualitative support

need to believe

Considering a product's competitive angle, ____________ is about finding significant pain points that are personally relevant to your target audience while _____________ is about demonstrating problem-solving benefits. quantifiable support; unique product claim need to believe; reason to believe dominate situations; quantifiable support reason to believe; dominate situations unique product claim; need to believe

need to believe; reason to believe

Sony, an electronics company, is releasing a new product. The new product is set at a low price in order to grab market share. Which pricing strategy is used in this example? penetration pricing value pricing price skimming cost-plus pricing

penetration pricing

Various brands of soda (Coke, Pepsi, Dr. Pepper, and Sprite) are rated on a scale from 0 to 10. A rating of 10 means the attribute perfectly describes the brand. Then the brands are displayed in a vertical and horizontal dimension, revealing that Pepsi and Coke are near each other. This is an example of which positioning method? gap analysis perceptual mapping unique selling proposition consumed most often hierarchical values analysis

perceptual mapping

Which element of the marketing mix has the greatest impact on price? product place promotion

place

The marketing manager for Little Ceaser's releases the following statement: "Little Ceaser's Pizza competes in the fast-food category and provides affordable, family-loving, one-stop meals to busy parents when they are looking for a quick, filling meal that everyone enjoys. Little Caeser's Pizza, unlike Domino's Pizza or Pizza Hut, is unique because it provides two pizzas for the price of one." This marketing manager is doing what? targeting positioning segmenting marketing

positioning

Becky and Hannah decide to have a party at their apartment. They want to feed 30 people without spending very much money, so they decide to buy the cheapest frozen pizzas in the store. What kind of shoppers are Becky and Hannah? convenience shoppers price shoppers deal shoppers brand loyal shoppers

price shoppers

As the director of marketing of a new start-up venture, you set a goal to launch a high price, high margin, product. This is consistent with what pricing strategy? promotional pricing price skimming penetration pricing golden goose pricing

price skimming

Make-It-Real is planning on releasing a new 3-D television that doesn't require the use of 3-D glasses. The company will introduce the 55" TV at $9,000. The financial and marketing team decide to lower the price $1,500 each year until the next TV update. This is an example of _________. price penetration price decline price skimming price gouging promotional pricing

price skimming

Which pricing strategy is used when marketers set a relatively high price to obtain high margins at the expense of sales quantity, then lower the price over time? price penetration price skimming promotional pricing cost-plus pricing competitive pricing

price skimming

The key to effective advertising is to create _____________ and ______________ . an emotional connection; experience value; benefits value; demand product awareness; interest interest; demand

product awareness; interest

Nike sells athletic clothing, shoes of all types, and sport gear. All of these products combined is a _________. company mix product line product mix company line product item

product mix

Spalding, an American sporting goods company, manufactures and sells sports equipment for a variety of sports from baseball to volleyball. All of the products offered by Spalding represent the company's ___________. augmented product product mix product life cycle product line product item

product mix

Spalding, an American sporting goods store, manufactures sports equipment and balls of a variety of sports such as baseball, football, basketball, and golf. All of the products of Spalding can be referred to as the ________. product line product, price, place, promotion product item product mix

product mix

Of the four ways to segment the market, which way is based on the personalities and lifestyles of people? geographic demographic psychographic behavioral

psychographic

Intel's processing chip was generally viewed as a commodity until Intel launched the "Intel Inside" campaign in 1991. Stickers placed on laptops with the words "Intel Inside" created huge demand among consumers. This is an example of _________. shifting the demand curve to the left economic strategy making demand more elastic pull strategy push strategy

pull strategy

When sharpening the angle, which dimension is particularly important for B2B sales? blows away expectations quantifiable support need to believe unique product claim reason to believe

quantifiable support

"Del Sol products are problem solvers that demonstrate themselves! Take them into the sun, and their graphics delightfully transform into a palette of bright and vibrant colors." The above description addresses which of the five questions to ask when sharpening a competitive angle? quantifiable support qualitative support unique product claim need to believe reason to believe

reason to believe

When Kraft wanted to launch a liquid water enhancer, it initially considered launching it as an extension of its brand Crystal Light, primarily sold to soccer moms. Instead, Kraft decided to launch the product as Mio and successfully marketed it to millennials, who embrace individuality and customization. In deciding whom they should exchange with, Kraft was ___________. retaining customers positioning identifying intermediaries selecting the target market segmenting the market

selecting the target market

All great products are ___________. solutions to problems intangible used frequently tangible a bundle of attributes

solutions to problems

Jim is retiring after 40 years of work as an accountant and never dreamed of owning an expensive, flashy watch. However, he received a big final bonus check, and as he browsed through a few jewelry and watch shops, he decided to buy a $15,000 Rolex. What type of good did Jim purchase? specialty brand loyal unsought shopping one-time

specialty

Suzy goes to great lengths to find the perfect toaster made by the Oster brand. She refuses to buy any other brand of toaster. In this instance, the toaster serves as a ________ for Suzy. specialty product unsought product convenience product shopping product

specialty product

Wells Lamont recently launched a new work glove for farmers. However, the market segment consists of a few rural towns. Marketers are worried that the segment size is not large enough to make this product profitable. Which characteristic of effective segmentation is lacking? measurable unique needs substantial accessible durable

substantial

While reviewing customer service reports, the brand manager for Extra sugar-free gum noticed a small handful of comments from customers saying that they are allergic to artificial sweeteners—and that Extra should launch a gum made with real sugar instead. He is worried that segmenting customers based on allergies would fail which criteria for segmentation? (Choose the most correct answer.) measurable unique needs substantial durable accessible

substantial

XYZ Company has just recently launched a new product to a specific market segment. However, the market segment only consists of a small town of farmers. Marketers are worried that the segment size is not large enough to make this product profitable. Which characteristic of good segmentation plans is lacking? measurable unique needs substantial durable accessible

substantial

What is the basis for differentiation for functional brands? unique and engaging experience social esteem desirable image superior performance or superior economy high involvement

superior performance or superior economy

For the HP Deskjet 1000 printer, which of the following would be considered part of the core product? the ability to distribute your ideas easily and professionally USB printer cable 60-sheet input tray and 25-sheet output tray LCD color screen and built-in wireless printing three-year office protection warranty

the ability to distribute your ideas easily and professionally

A common phrase in marketing is "If you're not marketing to the heart, you're not marketing." Which product level, then, is most important in marketing? the core product the actual product the augmented product all three levels of the product both the actual and augmented levels

the core product

Perceptual maps show the judgments customers make regarding the performance of a brand's features and benefits. Gap analysis extends the perceptual maps method by asking customers to make judgments regarding _________. psychological differences among consumers the performance of external forces in the environment the performance of competitive brands cultural differences among consumers the importance of a brand's features and benefits to the buying decision

the importance of a brand's features and benefits to the buying decision

What is product positioning? a careful analysis of cross-tabulations shelf locations in major chains—grocery and department stores the place a product offering occupies in the target customers' minds geographic segmentation, often within major metropolitan areas an old, outdated concept no longer worthy of consideration in marketing planning

the place a product offering occupies in the target customers' minds

Segmentation is grouping customers into relatively homogeneous sets such that customers within a segment are similar to one another in _________________. their frequency of purchase the way they respond to the marketing effort directed at them age and psychographics family and cultural situations their geographic location of residence

the way they respond to the marketing effort directed at them

Market segmentation is the process of grouping customers into relatively homogeneous sets or segments such that customers within a segment are similar to one another in _________. their frequency of purchase age and psychographics the way they respond to the marketing effort directed toward them geographic location family and cultural situations

the way they respond to the marketing effort directed toward them

The most critical stage of the new product development process is the concept testing stage because __________. Type I and Type II errors can be estimated all elements of the marketing mix are tested product development begins in earnest this is the first time the idea is tested with customers profit projections, including sales forecasts and costs, are estimated

this is the first time the idea is tested with customers

what are the three aspects of the competitive angle

unique or different, lifts consumer over hurdle, makes a personal connection

Which of the following is used for behavioral segmentation? usage situation gender personality lifestyle family size

usage situation