ADV 1341 Midterm 2

which of the following would be considered an upstream partner in a company's supply chain?

a firm that provides technical expertise in the production of the product

cost plus

adds a standard markup to the cost; customers feel price is fair and sellers are certain about costs

design testing

ambiguous, trial testing, choosing one that works, encouraging creativity

IDEO is a world-class new-product development firm that uses "design thinking," which involves incorporating human behavior as well as building upon the ideas of others in the innovation-design process. As the most prolific and influential design firm in the world, IDEO has created thousands of new products for its clients. This is an example of

characterisitcs of the team is the diversity of their backgrounds; Human centered design helped lead to a diversity of options

Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and More. Which of the following pricing strategies will Los Amigos likely use?

competition based

aquisitions do not include ______

developing a product

In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

direct marketing

upstream partners

entities that create or supply raw materials and components of products, and everything that might go into making those materials available to firms who use those materials

Idea generation is the ____ step in the new product development process

first step

Market-skimming pricing

setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales

which of the following is the first step in developing an advertising program

setting advertising objectives

competition-based pricing

setting prices based on competitors' strategies, prices, costs, and market offerings

Food international is developing a new gluten-free, chill- flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by companies R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standings. Once approved, the next step will most likely be:

test marketing

A _____ consists of producers, wholesalers, and retailers acting as a united system. The system can be dominated by any one of the interdependent members

vertical marketing system

You are an aspiring entrepreneur. One of your siblings family has just had their first baby. When discussing baby needs with you they commented that there was not a good, compact, economical stroller that would fit what baby stuff they needed to have. .... what steps would you take, what resources would you use, and think about design, pricing, and product testing

Design: idea generation and idea screening emphasize the human created design and ask for features they would want to see by crowd sourcing; pricing using business analysis of cost and rev projection, competitor price benchmarking, value based pricing; product testing: R&D laboratories, test and marketing

Why do today's firms need integrated marketing communications systems? How do firms benefit from such systems?

IMC helps firm carefully and integrate and coordinate the communication channels to deliver concise and clear messages about the organization and its product; Firms need these systems in order to reach a maximum audience

Which statement is most likely true about idea generation in the new product development process?

Idea generation is usually followed by procedures that reduce the total number of ideas

A _______ pricing strategy for an offering begins with an assessment of customer needs and perceptions. The target price is set based on customer perceptions of worth

Value based

performance inc sells its newest athletic shoe style to the sneaker store and distributes dated or slightly defective merch through sports discounters. performance inc main competetor is topnotch manufacturers... which would be considered a vertical conflict?

a conflict between performance inc and the sneaker store

vertical conflict

conflict between different levels of the same channel

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer.

cost plus

Kallton is a multicultural communications and information tech corp, its principal products are mobile telephones and tablets. It's recently announced on its website that customers can suggest ideas for upcoming product models. Contributors of short listed ideas will be adequately rewarded. In this case, Kallton using _____ to generate new product ideas

crowd sharing; explanation- crowd sharing is inviting brand communities of people into new product innovation

certain whole foods grocery stores in washington and oregon have begun using carts that automatically scan items in your cart so the customers do not have to go through the checkout line... this is an example of which stage in the New Product development process?

idea generation, idea screening, concept development and testing

3 sources of new products:

internal (people within company), external (customers, competitors), crowdsourcing (inviting the public to help)

Commercialization

introducing a new product into the market; full intro to the larger market

With each new generation of Apple iPhone, iPad, or Mac computer, new models start at a high price then work their way down as newer models are introduced. Apple initially uses a ________ strategy.

market skimming

design at scale

market testing student question

3 aspects of consumer engagement

mental (people thoughts and beliefs), emotional (feelings and emotions expressed), behavioral (actions as a result of the advertisement)

Victoria's Closet, a manufacturer of bohemian-style clothing and accessories, sells its products through its online Web site, a catalogue, and specialty boutiques that target women. Which kind of channel arrangement does Victoria's Closet employ to distribute its products?

multichannel distribution products

test marketing

new product stage where the product and its proposed marketing are tested in a realistic setting and will determine the projected success and allow company to reassess flaws before launch; soft launch in a few locations

Karen Dodd is employed by Dell and responsible for calling on primary schools in her home state of Maine to promote the company's offerings. She demonstrates the Dell line of products including desktop computers, laptops, and tablets and fields questions from teachers and administrators alike. This is an example of which promotion tool?

personal selling

in a marketing communications mix, _____ refers to any short term incentive that encourages the purchase or sale of a product or service

sales promotion

A detailed version of a product idea stated in meaningful consumer terms is a ________.

product concept

market development

prototype, testing, physical product creation

A company has a new development and wants to take advantage of the everchanging market, the new development is a low cost and management is fairly confident it will be successful. What should the company do?

the company does not need to test marketing due to it's low cost and confident backing

Idea generation

the systematic search for new product ideas

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, then resells the various brands to 500 supermarkets in florida?

transform the assortment of products into the assortments wanted by consumers

value based

uses the buyers perception of value rather than the seller's cost (customer driven)

market strategy development

value prop, price, long run sales