MKT 350 exam 3 quiz questions

marketing intermediaries

Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products

Which of the following levels of market coverage is most appropriate for products that have a high replacement rate, require almost no service, and are bought based on price cues? Selective distribution Exclusive distribution Intensive distribution Physical distribution

Intensive distribution

psychological pricing

Pricing that attempts to influence a customer's perception of price to make a product's price more attractive. some of the forms are: reference pricing, multiple-unit pricing, customary pricing, everyday low prices, and prestige pricing

Which of the following business marketing channels is most likely to be used? Producer to agent to industrial distributor to customer Producer to customer Producer to manufacturer's agent to customer Producer to industrial distributor to customer

Producer to customer

reliability

consistency and dependability in performing the service. performing services when promised

Andersen Windows gives Meek's: The Builder's Choice money to help pay for printing and distributing sales flyers with the agreement Andersen Windows will be featured in a set number of sales flyers, the two organizations are utilizing the sales promotion tactic of push money. cooperative advertising. dealer loader. dealer listings.

cooperative advertising

Anything that reduces the accuracy and clarity of communication is called distraction. interference. discordance. noise.

noise

In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication receiver. transmitter. decoder. source.

source

Pricing Objectives

specifying the role of price in an organization's marketing and strategic plans. survival profit ROI market share cash flow status quo product quality

Price consciousness

striving to pay low prices

selective demand

demand for a specific brand

product development

determining if producing a product is technically feasible and cost effective by creating a prototype or beta version of the product

line extensions

development of a product that is closely related to existing product in the line but is deigned specifically to meet different customer needs

Pricing Strategies

differential, product-line, psychological, promotional

the communication process

-communication: a sharing of meaning through the transmission of information -source: a person, group, or organization with a meaning it tries to share with a receiver or audience -coding process: converting meaning into a series of signs or symbols -communications channel: the medium of transmission that carries coded message from the source to the receiver -decoding process: converting signs and symbols into concepts and ideas -feedback: the receiver's response to a decoded message

channel for B2B

producer>organizational buyers

5 dimensions of service quality

reliability, tangibles, responsiveness, assurance, empathy

individual branding

using different brand names for different products

private distributor brands

A brand initiated and owned by a reseller Also called private brands, store brands, or dealer brands

product

A good, a service, or an idea received in an exchange

personal selling

A paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation

Specialty Retailers

A retail establishment that emphasizes narrow and deep assortment of items. they offer substantial assortments in a few product lines. lowes, marshalls, burlington, hallmark, petco, einsteins 3 types: traditional specialty retailers category killers off-price retailers

New Product Development Process

A seven-phase process for introducing products: idea generation, screening, concept testing, business analysis, product development, test-marketing, and commercialization

wholesaler

An individual or organization that sells products that are bought for resale, for making other products, or for general business operations

service

An intangible product that involves a deed, a performance, or an effort that cannot be physically performed

test market

An isolated geographic area used to introduce and test the effectiveness of a product, ad campaign, or promotional campaign, prior to a national rollout.

nosie

Anything that reduces a communication's clarity and accuracy

Which of the following is the strongest and most desired by marketers? Brand Insistence Brand Preference Brand Loyalty Brand Recognition

Brand Insistence

multichannel retailing

Employing multiple distribution channels that complement their brick-and-mortar stores with websites, catalogs, and apps where consumers can research products, read other buyers' reviews, and make actual purchases

Tori has the very cool job of finding new music artists who are willing to sell the rights to use their music in the background of commercials. Tori needs detailed information about the product, brand, and the target audience to make the right recommendation for music to pair with each commercial. Tori's job is an element of which part of the Communication Process? Selecting a source Encoding the message Choosing the appropriate channel Minimizing noise

Encoding the message

ACME Corp. has decided that all of its products' packages should be similar. ACME is using which of the following? Brand extension Family branding Co-branding Look-a-like branding

Family branding

branding strategies

Individual branding and family branding

When you buy a new Puma backback from Target, which of the following consumer marketing channels are you using? Producer to wholesaler to retailer to consumer Producer to industrial distribution to consumer Producer to consumer Producer to retailer to consumer

Producer to retail consumer

During which phase of the new product development process is a new product idea turned into a prototype or working model? Concept testing Screening Business Analysis Product development

Product development

Which of the following is the total group of products that an organization makes available to customers? Brand mix Product composite Product width Product mix

Product mix

unsought products

Products purchased to solve a sudden problem, products of which customers are unaware, and products that people do not necessarily think of buying emergency medical services automobile repairs

supplemental features

Provide the added value or attributes in addition to a product's core utility or benefit. not required to make the core product function effectively Installation Delivery Training Financing Help differentiate the product brand from another

convenience products

Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort bread soft drinks chewing gum gasoline

Which factor is least likely to affect pricing decisions? Competitors' prices Legal and regulatory issues Organizational and marketing objectives Customers' interpretation and response Shifting stock values

Shifting stock values

sales promotion

Short-term incentives to encourage the purchase or sale of a product or service by offering added value or incentive for the product to resellers, salespeople, or customers (paid, nonpersonal)

intangibility

The characteristic that a service is not physical and cannot be perceived by the senses

product mix

The composite, or total, group of products that an organization makes available to customers

product positioning

The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds. ANYWHERE is better than NOWHERE

rollout

The process by which a company introduces a new product or service to different geographical markets or consumer segments.

direct marketing

The use of the telephone, Internet, and nonpersonal media to introduce products to customers, who can then purchase them via mail, telephone, or the Internet

Which of the following have special expertise in core physical distribution activities such as warehousing, transportation, inventory management, and information technology and can often perform these activities more efficiently? Megacarriers Freight forwarders Channel captains Third-party logistics firms

Third-party logistics firms

Which of the following are purchased when a sudden problem must be solved, products of which customers are unaware of until they see them in a store or online, and products that people do not plan on purchasing? Unsought products Specialty products Shopping products Convenience Products

Unsought products

Prashant is shopping for a new pair of athletic shoes. Since he is concerned about both the price and the quality aspects of a product, Prashant is most likely a ___ consumer. Price-conscious Prestige-sensitive Value-conscious Quality-conscious

Value-conscious

Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an) ___, while the vending machine company is a(an) _____. Wholesaler; retailer Wholesaler; broker Agent; retailer Retailer; retailer

Wholesaler; retailer

generic brand

a brand indicating only the product category

manufacturer brands

a brand initiated by producers to ensure that producers are identified with their products at the point of purchase

public relations

a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders (unpaid, nonpersonal)

the promotion mix

a combination of promotional methods used to promote a specific product. the four elements are: advertising personal selling public relations sales promotion

brand loyalty

a customer's favorable attitude towards a specific brand. three degrees brand recognition brand preference brand insistence

the demand curve

a graph of the quantity of products expected to be sold at various prices if other factors remain constant. as prices fall, quantity demanded usually rises

product line

a group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations

marketing channel

a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

the core product

all the benefits the product will provide for consumers or business customers. usually a fundamental need of the consumer

supply chain

all the organizations and activities involved with the flow and transformation of products from raw materials through to the end customer

differential pricing

an important issue in pricing decisions is whether to use a single price or different prices for the same product -secondary-market pricing: setting one price for the primary target market and a different price for another market -periodic discounting: temporary reduction of prices on a patterned or systematic basis -random discounting: temporary reduction of prices on an unsystematic basis

retailer

an organization that purchases products for the purpose of reselling them to ultimate consumers

The Double-A of American Airlines, the peacock of NBC, and the apple with a missing bite of Apple are examples of a _______. trade name brand mark trademark brand equity

brand mark

family branding

branding all of a firm's products with the same name or part of the name

empathy

caring and individual attention provided by employees. listening to customer needs

Saeed has been earning extra money for an upcoming trip by tutoring classmates. As the trip date approaches, Saeed realizes they are still a few hundred dollars short of their goal, so they offer a 50% discount on tutoring prices which results in booking the next week's tutoring slots completely full. Which pricing objective is Saeed utilizing? cash flow profit survival market share

cash flow

All of the following are general-merchandise retailers, except _______. category killers department stores warehouse clubs like Costco and Sam's hypermarkets

category killers

product modifications

changes in one or more characteristics of a product. the original product does not remain in the product line. the product must be modifiable, customers must be able to perceive that a modification has been made, and the modification should make the product more consistent with customers' desires so it provides greater satisfaction

repositioning

changing consumers' perceptions of a brand in relation to competing brands

horizontal channel integration

combining organizations at the same level of operation under one management. Heinz-Kraft

vertical channel integration

combining two or more stages of the marketing channel under one management. when one member of a marketing channel purchases the operations of another or simply performs the functions of another member, eliminating the need for that intermediary

promotion

communication to build an maintain relationships by informing an persuading one or more audiences. objectives include: create awareness, stimulate demand, encourage product trial, identify prospects, retain loyal customers, facilitate reseller support, combat competitive promotional efforts, reduce sales fluctuations

value consciousness

concerned about price and quality of a product

Since The North Face has decided to use nonprice competition, it distinguishes its brand through all but which of the following? distinctive product features. exceptional service. coupons product quality and style.

coupons

_______ are the most widely used consumer sales promotion method. Coupons Sweepstakes Premiums Free samples

coupons

least flexible element of the marketing mix

distribution

marketing mix for services

distribution- customer goes to facility, or provider comes to customer's home/business promotion- more likely to promote the price, guarantees, availability, etc. Word of mouth communication is very important pricing- based on the time spent on task, level of demand, performance, etc.

prestige sensitivity

drawn to products that signify prominence and status

nonprice competiton

emphasizing factors other than price to distinguish a product from competing brands. this allows firms to build customer loyalty

price competiton

emphasizing price as an issue and matching or beating competitors' prices

product-line pricing

establishing and adjusting prices of multiple products within a product line. the goal is to maximize profits for an entire product line. there are several strategies, including: captive pricing, premium pricing, and bait pricing

business analysis

evaluating the potential impact of a product idea on the firm's sales, costs, and profits

In any one large metropolitan area, there is usually just one Ferrari sports car dealer. This best illustrates _______. exclusive distribution selective distribution intensive distribution luxury distribution

exclusive distribution

The major levels of intensity at which a company can choose to distribute its products are ____ distribution. cooperative, conflicting, and integrated exclusive, selective, and intensive intensive, extensive, and exclusive vertical and horizontal

exclusive, selective, and intensive

Which of the following alters a product's versatility, effectiveness, convenience, or safety? Functional modification Quality modification Aesthetic modification Package modification

functional modification

time utility

having products available when the consumer wants them

Training can help employees provide consistent service quality, thereby lessening variations in service quality, which is also known as _______. heterogeneity client-based relationships perishability intangibility

heterogeneity

If PetSmart began to acquire very successful local pet stores, this would be an example of _______. multichannel integration horizontal integration vertical integration acquirement integration

horizontal integration

Ollis/Akers/Arney writes white papers about common insurance topics like "10 things every nonprofit needs to know about their insurance policy" and posts them to the Ollis/Akers/Arney website. In order to read the white paper, one must provide their name, email address, and organization. This "gated" method of asking for information is a way of achieving which promotional objective? Create awarness Stimulate demand Retail loyal customers Identify prospects

identify prospects

The fact that you cannot isolate the production of a ride through a ride-share service such as Uber or Lyft from its consumption relates to the service's _______. heterogeneity intangibility perishability inseparability

inseparability

characteristics of services

intangibility, inseparability of production and consumption, perishability, heterogeneity, client-based relationships, customer contact

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines communication. integrated marketing communications. tactile communication. advertising.

integrated marketing communications

client-based relationships

interactions that result in satisfied customers who use a service repeatedly over time

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded. inelastic inverse positive unknown

inverse

A major disadvantage of personal selling is that it is not remembered as well by consumers as advertising messages are. cannot easily adjust the message to satisfy a customer's information needs. is very expensive per contact. does not provide immediate feedback.

is very expensive per contact

shopping products

items for which buyers are willing to expend considerable effort in planning and making purchases appliances bikes furniture cameras shoes

specialty products

items with unique characteristics that buyers are willing to expend considerable effort to obtain fine jewelry limited-edition collector's items

The development of a product that is closely related to one or more products in the existing product line, but designed specifically to meet somewhat different customer needs is best described as a(n) _______. product modification brand extension line extension quality modification

line extension

Meek's celebrated the end of a store remodel with a Grand Re-Opening Event with free food, games for kids, and special prices on many items. Some items were sold at prices below cost, resulting in a financial loss for that particular item. This method of promotional pricing is called _________, and acts as an incentive to drive store traffic. Many customers will end up buying other full priced items, which acts as a counterbalance to the items sold below cost. loss leader special event pricing psychological pricing bait and switch

loss leader

place utility

making products available in locations where customers wish to purchase them

three categories of brands

manufacturer, private distributor, generic

trade sales (B2B) promotion methods

methods intended to persuade wholesalers and retailers to carry a producer's products and market them aggressively. cooperative advertising dealer loader premium money (push money)

The use of a variety of marketing channels to ensure maximum distribution is best called _______. multichannel distribution supply chain alliances logistics channel integration

multichannel distribution

total product

offers three independent elements: the core product its supplemental features its symbolic benefits

8 common factors that affect pricing decisions

organizational and marketing objectives types of pricing objectives costs marketing-mix variables channel member expectations customers' interpretations and response competition legal and regulatory issues

The target audience for an advertising campaign is the information base on which to develop the campaign. geographic distribution of persons. people toward whom the advertisements are directed. sales objective to be achieved by the campaign.

people toward whom the advertisements are directed

Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called advertising. sales promotion. personal selling. public relations.

personal selling

tangibles

physical evidence of the service. the appearance of physical facilities

____ is the least flexible element of the marketing mix. Place/distribution Price Product Promotion

place/distribution

Realtors, bankers, and lawyers may drive luxury car brands like Audi, Mercedes, and Lexus to communicate their financial success to clients and peers. When this is the case, how would you classify this segment according to their response and interpretation of price? price conscious value conscious brand sensitive prestige sensitive

prestige sensitive

________ is the most flexible element in the marketing mix. Price Product Place Promotion

price

most flexible element of the marketing mix

price

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using price competition. nonprice competition. comparative pricing strategies. demand-based pricing.

price competition

channel for B2C products

producer>wholesalers>retailers>consumers

The "Got milk?" print campaign is advertising that stimulates demand for a ____, known as ____ advertising. product category; primary product category; institutional product brand; competitive brand category; pioneer

product category; primary

A _______ is a specific version of a product, while a _______ is a group of closely related products that are considered to be a group because of marketing, technical, or end-use considerations. product item; product mix product mix; product line product item; product line product mix width; product mix depth

product item; product line

business products

products bought to use in a firm's operations, to resell, or to make other products. purchased to satisfy the goals of the organization

consumer products

products purchased by the ultimate consumer to satisfy personal or family needs convenience shopping specialty unsought

Creating awareness, encouraging product trial, and reducing sales fluctuations are all objectives of place. product. promotion. price.

promotion

3 types of product modificaitons

quality modifications- changes relating to a product's dependability or durability functional modifications- changes affecting a product's versatility, effectiveness, convenience, or safety aesthetic modifications- changes relating to the sensory appeal of a product

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the quantity demanded goes down. demand remains constant. quantity demanded increases. demand increases.

quantity demanded goes down.

Psychological pricing includes methods such as: periodic and random discounting. reference and prestige pricing. product-line and captive pricing. special event pricing and comparison discount pricing.

reference and prestige pricing

Commercialization

refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product

consumer sales (B2C) promotion methods

sales promotion techniques that encourage consumers to patronize specific stores or try particular products. free samples, games, rebates, sweepstakes, contests, premiums, coupons

ACME Corp. is going through the new product development process and is selecting ideas with the greatest potential for development for further review. ACME is in which phase of the new product development process? Concept testing Test marketing Screening Product development

screening

Which of the following integrates the functions of operations management, logistics management, procurement, and marketing channel management so that products are produced and distributed in the right quantities, to the right locations, and at the right times? Third-party logistics Multichannel distribution Channel integration Supply chain management

supply chain management

supplementary service

supports the core service used to differentiate the service bundle from those competitors

promotional pricing

temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales

brand name

that part of a brand that can be spoken, including letters, words, and numbers

channel power

the ability of one channel member to influence another member's goal achievement

One of the best advantages of nonprice competition is ____________________. the pricing objectives are easier to assess higher margins the ability to build customer loyalty fewer taxes and penalties paid

the ability to build customer loyalty

product mix depth

the average number of different product items offered in each product line

core service

the basic service experience or commodity that a customer expects to receive

Inseparability of Production and Consumption

the quality of being produced and consumed at the same time. customers must be present at the consumption of the service and cannot take the service home

dual distribution (multichannel distribution)

the use of a variety of marketing channels to ensure maximum distribution

price

the value paid for a product in a marketing exchange

Price is the value that is exchanged for products in a marketing transaction. of limited interest to sellers. money paid in a transaction. the most important element of the marketing mix.

the value that is exchanged for products in a marketing transaction.

Hulu enables consumers to watch select TV shows whenever they want instead of when they are broadcast. This illustrates _______. form utility time utility place utility convenience

time utility

Price is a key element in the marketing mix because it relates directly to the generation of ____________. price association profit margin total revenue market share

total revenue

The two important characteristics which distinguish public relations from the other promotion mix elements are unpaid and nonpersonal. paid and personal. unpaid and personal. paid and nonpersonal.

unpaid and nonpersonal

exclusive distribution

using a single outlet in a fairly large geographic area to distribute a product. this is suitable for products that are not bought frequently and consumed over a long period of time

Which of the following is used by retailers or wholesalers to develop more efficient promotion, generate higher gross margins, and change store image? Consumer brands Manufacturer brands Generic brands Private Distributor brands

Private Distributor brands

test marketing

a limited introduction of a product in geographic areas chosen to represent the intended market

brand

a name, term, deign, symbol, or other feature that identifies one seller's product as distinct from those of other sellers

advertising

a paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media like radio, TV, magazines, or digital media

General Merchandise Retailers

a retail establishment that offers a variety of product lines that are stocked in considerable depth -macy's, walmart, target, 7/11, publix, costco, ikea

product item

a specific version of a product that can be designated as a distinct offering among an organization's products

category killer

a very large specialty store that concentrates on a major product category and competes on the basis of low prices and product availability. they expand rapidly and gain large market shares, taking business away from smaller, high-cost retailers

Threatt Production makes low-priced, convenience products that are widely available. It is most likely to focus its promotion efforts on public relations. personal selling. advertising. sales promotion.

advertising

_____________ is a paid, non-personal communication about an organization and its products transmitted to a target audience through mass media. Personal selling Sales promotion Advertising Public relations

advertising

Integrated Marketing Communications

coordination of promotion and other marketing efforts for maximum informational and persuasive impact on customers

service quality

customers' perceptions of how well a service meets or exceeds their expectations. organizations must determine what customers expect and try to develop services that meet/exceed those expectations

primary demand

demand for a product category rather than for a specific brand

concept testing

seeking a sample of potential buyers' responses to a product idea through low cost, risk free methods

idea generation

seeking product ideas to achieve organizational objectives through internal or external sources

screening

selecting the ideas with the greatest potential for further review

Supply Chain Management (SCM)

the coordination of all the activities involved with the flow and transformation of supplies, products, and information throughout the supply chain to the ultimate consumer. the goal is to focus on the customer and make sure they are satisfied

Supply chain management should begin with a focus on _______. the customer pricing the seller channel intermediaries

the customer

brand recognition

the degree of brand loyalty in which a customer is aware that a brand exists and views the brand as an alternative purchase if their preferred brand is unavailable

brand preference

the degree of brand loyalty in which a customer prefers one brand over competitive offerings

brand insistence

the degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitues

Channel Captain (Channel Leader)

the dominant leader of a marketing channel or a supply channel. may be a producer (like Nike), wholesaler, or retailer (like Walmart). must possess channel power

Price is a key element in the marketing mix because it relates directly to the size of the sales force. the speed of an exchange. brand image. the generation of total revenue.

the generation of total revenue.

perishability

the inability of unused service capacity to be stored for future use

assurance

the knowledge and courtesy of employees and their ability to convey trust. skills of employees, reputation of the company

customer contanct

the level of interaction between provider and customer needed to deliver the services

channel capacity

the limit on the volume of information a communication channel can handle effectively

Bass Pro Shops sells a variety of brands in each product category. Ascend is a private distributor brand owned by Bass Pro Shops. The North Face is a high-end manufacturer brand. Carhartt is a mid-level brand sold in many retailers. Which of these is most likely to be the channel captain? The North Face Bass Pro Shops Ascend Carhartt

the north face

intensity of market coverage

the number and kinds of outlets in which a product will be sold. levels of market coverage intensive selective exclusive

product mix width

the number of product lines a company offers

A product modification differs from a line extension in that _______. -the original product remains in the line -it changes the sensory appeal of a product by altering its taste, texture, sound, smell, or appearance -the new product is in a different product category -the original product does not remain in the line

the original product does not remain in the line

brand mark

the part of a brand that is not made up of words, such as a symbol or design

atmospherics

the physical elements in a store's design that appeal to consumers' emotions and encourage buying

co-branding

the practice of using the established brand names of two different companies on the same product

intensive distribution

using all available outlets to distribute a product. it is appropriate for products that have a high replacement rate, require almost no service, and are bought based on price cues. these products must be available at a store nearby and obtained with minimal search time

selective distribution

using only some available outlets in an area to distribute a product. is appropriate for shopping products, desirable when a specific effort is important to customers, and often used to motivate retailers to provide excellent service

heterogeneity

variation in quality. due to human behavior, it is very difficult for service providers to maintain a consistent quality of service delivery

channel integration

when one business owns the organizations at other levels of the channel. either horizontally or vertically

One company markets such diverse products as Old El Paso Mexican foods, Yoplait yogurt products, and Blue Buffalo pet foods. These various offerings exhibit this firm's product mix width. depth. length. volume.

width

responsiveness

willingness or readiness of employees to provide the service. returning customer phone calls, handling urgent requests

utilitarian shopping

worth obtained because some shopping task or job is completed successfully. shopping with intention or purpose

hedonic shopping

worth of a shopping activity because the time spent doing the activity itself is personally gratifying. shopping for fun

four ways retailers add value

•Providing an assortment of products and services •Breaking bulk •Holding inventory (time and place utility) •Providing supplementary services