Test 4 Intro to buis

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New Novelties has a great new product on the​ market, but now all their competitors are imitating their product and trying to cut into their sales. New Novelties is in which stage of the product life​ cycle?

Growth

Which of the following BEST describes the promotional mix?

How marketers decide to make the public aware of a product, based on the needs of the target audience

Within the organization, who is responsible for the purchasing of products that will be used to produce other products?

Industrial buyers

Your boss has asked you to describe a value package for a new product. Which of the following would you​ gather?

Information on features and benefits

During what stage of the product life cycle do marketers focus on making potential customers aware of the benefits of a product?

Introduction

In which stage of the product life cycle should marketers focus advertising and promotion on consumer​ awareness?

Introduction

Why is speed to market important in new product development?

It can determine market share and profitability.

What is it called when companies or personalities sell the rights to put their names on products?

Licensed

Red Bull energy drink wants to expand their target market to fans of car​ racing, specifically NASCAR and Formula One racing. It has entered into talks with several race car drivers about putting the Red Bull logo on the race cars and clothes worn by the pit crews during races. Red Bull will include a marketing campaign indicating they are the​ "energy drink of​ winners!" What type of branding effort is Red Bull engaging​ in?

Licensed branding

Perfect Products has decided to set low prices for its new products to entice people to try​ them, even though profits will be small. Perfect Products is using which type of pricing​ objective?

Market share

In order to get her​ "foot in the​ door" with her new line of organic​ juice, Laura is willing to set the price low so that more buyers will be willing to give her product a try. Which pricing objective or strategy does this BEST​ reflect?

Market share objectives

In order to create profit, an amount is added to the cost of producing an item. What is this added amount?

Markup

Marketers have a variety of advertising methods to help get the seller's message to the audience. The combination of methods that a seller chooses is that organization's .

media mix

Pricing items in uneven dollar​ amounts, such as​ $5.99, is known as​ ________.

odd-even pricing

Which of the following BEST describes the growth stage in the product life cycle?

Sales start to climb rapidly, marketers lower the price slightly, and continue promotion expenditures to increase sales

Innovative Industries has so many new product​ ideas, management is overwhelmed. Each idea seems like a good​ possibility, so management decides to​ meet, review each of the​ ideas, and decide which best fits with the​ company's goals. This is which stage of the new product development​ process?

Screening

Which of the following BEST describes syndicated selling?

Sellers who provide commissions to websites for referring customers to them

What is the definition of price lining?

Setting a limited number of prices for certain categories of products

Which of the following BEST describes price skimming?

Setting an initially high price to cover new product costs and generate a profit

​Jill's dishwasher is broken and she needs a new one. She looks at several brands and the different features each offers. Which type of product is​ Jill's new​ dishwasher?

Shopping good

Which of the following BEST describes a merchant wholesaler?

Someone who buys products from manufacturers and sells them to other businesses

CenturyLink offers customers special pricing if they buy a package deal with​ phone, Internet, and DirecTV. This is an example of​ _______.

a bundling strategy

Some companies will group similar products together, offering a special price if all items are purchased. This incentive is called .

a bundling strategy

In a highly competitive​ industry, a company can BEST differentiate its product by focusing on a niche market and​ _____________.

branding

Often one member of a marketing chain has the most power in determining the roles others play in distribution. This leader is referred to as the .

channel captain

Goods consumed on a regular basis that tend to be inexpensive are goods.

convenience

A minor league baseball team sets its ticket price algorithms based on factors like team​ performance, pitching​ match-ups, the​ weather, and even ticket demand. If the team is doing​ well, ticket prices may be​ higher; if the team is doing poorly and they want to attract fans to the​ stadium, ticket prices will decline. This is an example of​ _______.

dynamic pricing

Insurance and utilities are​ ________ costs.

fixed

When a company uses penetration​ pricing, it tends to set an initial price that is​ ________.

low enough to establish the product in the market

It costs​ Tom's T-shirts​ $5.00 to produce each of its newest​ items, and it sells each one for​ $6.50. The​ $1.50 Tom's earns from each shirt is its​ ________.

markup

Which of the following BEST describes a cybermall?

A collection of virtual storefronts representing diverse products and offering 24-hour access

Which of the following BEST defines selective distribution?

A distribution strategy by which a company uses only a limited number of wholesalers and retailers who give special attention in sales efforts to specific products

Which of the following is the BEST description of a supermarket?

A large product-line retailer offering a variety of food and food-related items in specialized departments

Which of the following BEST describes a private brand?

A line of products that showcase a brand name that was created by the store, not the manufacturer

Which of the following BEST describes an expense item?

A product that will be used within a year of purchase, for the purpose of producing other items

Which of the following BEST describes the role of a broker?

A salesperson that matches buyers to sellers and receives a commission for the service

Which of the following BEST describes product extension?

A way to increase the product's life cycle by entering a new market

Before a company can establish the breakeven point for a product, what must be determined?

All fixed and variable costs for the product

Which of the following is the BEST definition of an intermediary?

An individual or firm that helps to distribute a product

items are relatively expensive industrial goods and services that are expected to last several years.

Capital

Which of the following would be classified as an organizational​ product?

Capital items

How can an organization determine when total costs equal total revenue?

Breakeven analysis

Which of the following can be determined by the fixed and variable costs for a product?

Breakeven point

During which stage of the product development process do marketers compare production costs and benefits to determine whether the proposed product meets minimum profitability goals established by the​ organization?

Business analysis

​Full-scale production has​ begun! A company is establishing distribution channels and promotion plans. This is which stage of the new product development​ process?

Commercialization

You are spearheading a new product idea for your company.​ Engineering, marketing,​ finance, and even operations managers have provided input in the development. Which is the next step in the​ process?

Concept testing

You are looking at the candy bars while waiting in line at the gas​ station; they all look​ good, but you finally decide to buy a​ Reese's. Which type of product did you​ purchase?

Convenience good

Which of the following is the definition of fixed cost?

Cost that is incurred regardless of the quantity of a product produced and sold

What type of pricing model do firms use when they consider how much profit they want to make with regard to operating costs?

Cost-oriented pricing

Which of the following are costs that are incurred regardless of the quantity of a product produced and sold?

Fixed costs

What type of wholesaler will provide services such as credit, marketing advice, and merchandising arrangements?

Full-service merchant wholesalers

Which of the following is a form of nonstore retailing in which firms directly interact with customers to inform them of products and to receive sales orders?

Direct-response retailing

Which of the following is the first step in the product development​ process?

Generation of product ideas

Amy works for a manufacturing company in the administrative office. She is amazed at how often she must purchase office supplies and is looking to order them in larger quantities. Which category defines the supplies Amy​ purchases?

Expense item

Joachim owns a small commercial cleaning business. He purchases a carton of paper​ towels, a box of trash​ bags, and a gallon container of toilet bowl cleaner from a janitorial supply vendor. How would these products be​ characterized?

Expense items

When an organization purchases products that will be used within a year, for the purpose of producing other products, what type of items are being bought?

Expense items

A service company needs a large truck to carry​ materials, supplies, and equipment to and from the client facility. This is which stage in the service process design step of new product​ development?

Facility requirements

Which of the following is a psychological pricing tactic based on the premise that customers prefer prices not stated in even dollar amounts?

Odd-even pricing

Which of the following can be used as an​ in-store advertisement?

Packaging

A new product is being released into the market, and there is the potential for many competitors. What type of pricing strategy should be used to establish a customer base and stimulate trial purchases?

Penetration

The managing partner of the new consulting firm for which you work wants to gain clients. Which would be the BEST recommendation for her​ market-share objective?

Penetration pricing

Which of the following BEST describes creative selling?

Personal selling task in which salespeople try to persuade buyers to purchase products by providing information about their benefits

How is the concept of product placement used by manufacturers?

Placing products in television shows or in movies to increase brand awareness

What is the term for pricing a product below its cost in order to increase foreign market​ share?

Price dumping

Some countries use products in a way that is different than what was intended during initial development. How can the product be changed to conform to the needs of the new market?

Product adaptation

A national firm would like to expand sales into the international market to expand market share of a product that sells well domestically. Which of the following will help increase the product life cycle by entering a new market?

Product extension

Not every firm offers items in all areas of the product line. What is the name of the group of items the manufacturer chooses to offer?

Product mix

In which stage of new product development might a product be sold on a trial basis in limited​ areas?

Product testing and test marketing

Wedding Wishes is a bridal shop that specializes in​ high-end, one-of-a-kind wedding dresses. The owner of Wedding Wishes has just placed an order for 500 yards of lace to be used in the creation of the dresses currently on​ order, after spending several hours determining the patterns and details of the lace. What type of organizational product is the​ lace?

Production item

Which of the following BEST describes specialty goods?

Products that are unique enough to persuade consumers to exert unusual effort to obtain them

Which of the following BEST describes the role of a shopping agent?

Providing an accurate comparison of products and allowing the consumer to choose the best option and complete the transaction immediately

What type of marketing strategy encourages the consumer to ask the retailer for a product?

Pull

If a car dealership receives pricing incentives on a specific type of vehicle, in the hopes of generating sales for that line, what type of marketing strategy is being used by the automotive manufacturer?

Push

The managing partner of the consulting firm for which you work wants to raise the price of services across the board in order to increase profits. Which is the MOST LIKELY result of her​ profit-maximizing strategy?

Quantity demand of services will decrease.

Which of the following BEST describes a value package?

The combination of features and attributes of a product, such as price and ease of use, that can be taken together

Which of the following BEST describes consumers?

The end users who buy a product

Which of the following BEST describes the role of a channel captain?

The member of the marketing chain that sets price and availability in addition to the distribution process

Which of the following BEST describes market share?

The percentage of sales for the overall sales levels of a particular product

What is the BEST description of product positioning?

The process of establishing an easily identifiable product image in the minds of consumers by fixing, adapting, and communicating the nature of the product

Which of the following BEST describes product features?

The rewards or benefits of one product over another

Which of the following is the role of warehousing in the distribution process?

The storage of products before delivery for use for retailers or manufacturers

Back2Basics sells​ women's lotion and skin care products. The product line features a few products made from all natural and locally sourced ingredients. Back2Basics has sold products only in local​ markets, and​ Emily, one of the two​ partners, thinks this may be the time to develop additional products and launch a​ full-scale, nationwide campaign for its products.​ However, Jane, the other​ partner, is cautious and wants to conduct research first. She is not sure the nationwide market will support additional​ high-end skin care products sold primarily over the Internet. Which of the following might be one reason Jane is concerned about the expense of new product development and the launch of a nationwide​ campaign?

There is a high mortality rate for new ideas and only a few new products ever succeed on the market.

What is the job of an industrial buyer in an organization?

To buy products that will be used to produce other products

Why do various members of an industry hold trade shows?

To demonstrate products to customers who are ready to buy

What is the role of a sales agent during the distribution process?

To understand the products of a very few producers and explain those products to customers

What type of sales promotion can be used to demonstrate products to customers who are ready to buy?

Trade show

When would a penetration pricing strategy be used by a firm?

When a new product is being released to the market and there are many competitors

Which of the following is the BEST description of a licensed brand?

When companies or personalities sell the rights to put their names on products

How can an organization determine when breakeven has occurred?

When total costs equal total revenue

Some businesses sell only to other businesses. Who helps facilitate this transaction?

Wholesalers

Since there was no real competition in its early​ years, Apple was able to keep the price of the iPod high for some​ time; this allowed the company to recover development costs. This is known as​ ________.

price skimming

Target stores nationwide feature Cherokee footwear and Merona​ clothing, although Target does not manufacture these products. This is an example of a​ _______ brand.

private

A group of goods that are closely related and function in a similar manner are a .

product line

Dreamy Designs has a variety of products​ available, including decorative​ items, lighting,​ furniture, window​ treatments, and carpet. This is Dreamy​ Design's ________.

product mix

In the movie Top Gun​, actor Tom Cruise​ (as Lieutenant​ "Maverick" Mitchell) wore​ Ray-Ban sunglasses, prompting a wave of popularity for the sunglasses. This is an example of​ _______.

product placement

Management paid to have the stars of a TV sitcom eat Doritos on the show. This is an example of​ ________.

product placement

Some products are promoted by placing them in television shows or in movies in order to increase brand awareness. This marketing tactic is known as .

product placement

When a new product becomes available at a retailer, coupons or free samples might be offered as a way to generate desire for the product. These methods of consumer awareness are called .

sales promotions

Alina has an executive recruiting​ firm, and she pays the recruiters who work for her​ $2,000 for every placement they make. This is an example of​ _______.

variable costs

If a company strives to generate the highest possible total​ profit, it is working toward which of the following​ objectives?

​Profit-maximizing objective


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