MTG 315 Howard- FINAL
Which of the following services falls closest to the middle of the tangibility continuum?
Dinner at olive garden
One way that Honda evaluates its product and service level is by how well it ranks on the J.D. Power & Associates Sales Satisfaction Survey. In doing so, Honda is
Evaluating actual perormance
When an individual considers whether a product will meet certain criteria that are critical for meeting his or her needs, in what stage of the product adoption process is the individual
Evaluation
which of the following is not a common feature of a warehouse club?
Good customer service
A product can be defined as
Goods, services, or ideas
Change-ezz
Heterogeneity
Organizations Should define themselves not according to the products they produce but according to
How they satisfy customers
Nabisco is considering two pricing objectives. The first is to sell one out of every three crackers consumed in the world, an objective based on _____; the second one is to meet, but not beat, competitor's prices of cookie products, which is a _______ objective.
Market share and status quo
The marketing channel of producer-retailer-consumer is most likely to be used by producers of which of the following products?
New Automobiles
For most firms, the costs of marketing activities consume approximately what portion of the consumers dollar?
One-half
Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in
Price competition
Marketers who attempt to influence and change the various environmental forces have a(n) _______ response to these forces.
Proactive
According to the marketing concept, an organization should try to
Provide products that satisfy customers' needs and allow the organization to achieve its goals
_______ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders.
Public Relations
Supply chains for durable goods typically begin at ____ and end at ____.
Raw materials; the customer
A group of managers has been assigned the task of developing a new product. They are now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?
Screening
Markup is measured either as a percentage of _____ or a percentage of _______.
Selling price; cost
Kraft purchased the Duracell battery company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) _____ unit of Kraft.
Strategic Business
Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is
Survival
_______ is a customers' subjective assessment of benefits relative to costs in determining the worth of a product.
Value
A product line is defined as
a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations
High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.
a target market
A distributor of plumbing supplies purchased a desktop computer to aid in inventory control. This computer is an example of which type of business product?
accessory equipment
When Anheuser-Busch ran an advertisement campaign featuring the slogan, "know when to say when," it was using
advocacy advertising
The three major ways to modify a product include
aesthetic, quality, and functional changes
....
atmospheres
If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then
average total cost is at its lowest level
an advertising platform is the
basic issue or selling point that an advertiser wishes to include i an advertising campaign
______ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.
brand
products are classified as being business or consumer products according to the
buyers intended use of the product
Pricing the basic product line low while pricing related items at a higher level is called
captive pricing
Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)
catalog marketer
If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, shell is using _______.
competition- based pricing, which considers costs to be less important than competitor's prices
When marketers define their target market, they simultaneously establish a set of
competitors
The verbal portion of an advertisement, include headlines, body, and signature, is called the
copy
The home depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. The Home Depot is differentiating through
customer services
an important goal of physical distribution is reducing the time it takes to complete
cycle time
What equation shows organizations the relationship between price and profit.
(Price x Quantity Sold) - Total costs= Profits
In general, Differenced between goods and services are determined by the
degree of tangibility
If a store has areas for mens apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it most likely a
department store
Quality modifications are changes that relate to a product's
dependability and durability
After the advertising budget is determined, the next step in creating an advertising campaign is
developing the media plan
the marketing channels for services are usually
direct from provider to customer
Del Monte markets ketchup for household use to super markets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del monte is using
dual distribution
After compiling a list of potential customers, a salesperson
evaluate whether each prospect is able, willing, and authorized to buy the product
By offering both credit and financing through its GMAC division, General Motors is trying to help consumers
expand current buying power at the expense of future buying power
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
heterogeneity
Competitors' prices along with the marketing variables they emphasize, are determining factors in
how important price will be to customers
The amount of money received through wages, rents, investments, pensions, and subsidies is called
income
Depending on the length of time it takes to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and
innovators
The four major stages of a product life cycle include
introduction, growth, maturity, and decline
A target market
is a specific group of customers on whom an organization focuses its marketing efforts
Vertical channel integration
is made possible by purchasing the operations of a link in the channel
A major disadvantage of personal selling is that it
is very expensive per contact
Coca-Cola has expanded to Coke-Zero, Cherry Coke, And Caffeine-free Coke, to name a few. These are examples of
line extensions
The kinds of products being sold and the availably of public transportation are both factors that influence a retailers decision about
location
A group that has the willingness, ability, and authority to buy a product is a
market
When the right combination of circumstances occur at the right time to allow an organization to take action toward a target market, the firm faced with a
market opportunity
The percentage of a market which actually buys a specific product from a specific company is referred to as the product's
market share
While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may
mention objections the customer had not thought of.
Price is considered to be the variable in the marketing mix that is
most flexible
During the introduction stage of a successful product, profits are usually
negative and increasing
Rick is a new product manager for a large bio-chemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that _____ is risky as well.
not introducing new products
The four major competitive structures are
oligopolies, monopolies, monopolistic competition, and pure competition
Dylan is a sales person for Whole Foods. In his position, he is primarily responsible for seeking repeat sales. Dylan is most likely a(n)
order taker
the target audience for an advertising campaign is the
people toward whom the advertisements are directed
The fact the services cannot be inventoried and then sold at a later date is called.
perishability
Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called
phase-out
The two major types of product advertising are
pioneer and competitive
The Forces of the marketing environment include
political, legal/regulatory, sociocultural, technological, economic, and competitive
Pro competitive laws are those designed to
preserve competition
Buyers who focus on purchasing products that signify prominence and status are
prestige-sensitive buyers
For most consumers, there is an assumed relationship between
price and quality
dividing the percentage change in quantity demanded by the percentage change in price gives the
price elasticity of demand
To determine the breakeven point in units, divide the fixed costs by
price minus variable costs
If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then $150 before reducing the price to $100, the firm's initial pricing strategy is known as
price skimming
If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective.
product quality
Which of the following is essentially an uncontrollable factor in developing a marketing mix
product safety regulations
In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to
promise too much and cause expectations beyond what they can deliver
The element of the marketing mix used to increase awareness of a product or company is
promotion
assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle.
prosperity
minerals, chemicals, timber, and agricultural products are considered
raw materials
the percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of
reach
Convenience products are
relatively inexpensive, frequently purchased items for which buyers exert only minimal purchased effort
Direct selling, direct marketing, and vending machines are all examples of
retailing
When services companies change high-contact services into low-contact services, the
service becomes less personalized
A narrow product mix with a deep product line would most likely be carried by
specialty retailers
Off-price retailers and category killers are both
specialty retailers
A service is usually offered as part of a bundled package of services and one or more _____ services.
supplementary
Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.
sustainable competition
Channel decisions are important to marketers mostly because
they involve long-term commitments and affect customer accessibility
A product under nonprice competition would most likely not succeed in the market if
total revenue will increase
During his presentation to Mrs. French about high-end gourmet oven, Brian asks, "would you prefer black or stainless steel?" This is an example of a
trial close
In a simple economy of five producers and five consumers, there would be _____ transactions possible without an intermediary and ___ transactions possible with one intermediary.
twenty-five; ten
A retailer is an organization that purchases products for the purpose of reselling them to
ultimate consumers
Early in the commercialization phase, marketers must make decisions about
warranties, repairs,and replacement parts.
Marginal analysis involves examining
what happens to a firms costs and revenues when production is changed by one unit