Chapter 12: Dimensions of Marketing Strategy
Require simple, concise messages
Short broadcast spot announcements and outdoor displays such as billboards
_____ are intermediaries who buy from producers and sell to retailers.
Wholesalers
Which of the following questions will be answered during the business analysis stage of new product development?
Will the product be profitable? Is the product compatible with the marketplace?
True or false: A consumer is trying to decide between 2 smartphones. Price is the most important feature, so a decision is able to be made on that criteria alone. This buying behavior is associated with specialty products.
false
Brands sold with no brand name at all are called ( ) brands.
generic
Inappropriate or impractical new product ideas will be rejected during the _____ phase
idea screening
Macy's and Kohl's are considered to be ( ) because they buy products from manufacturers or other intermediaries and sell them to consumers for home and household use.
retailer
Products or services the consumer buys only after comparing value, quality, price, and style from a variety of sellers are called consumer ( ) products
shopping
True or false: Products used directly or indirectly in the operation or manufacturing processes of businesses are called business products.
true
True or false: Promotional positioning is the natural result of market segmentation.
true
What typically happens in the growth stage of the product life cycle?
Sales increase rapidly and profits peak
A firm's ______ exclusively refers to the part of the brand that is a distinctive design, such as McDonald's golden arches logo.
brand mark
_____ is the process of naming and identifying products.
branding
Products that are used for the operation of an organization or for the production of other products are referred to as ( ) products.
business
Merchant wholesaler
Takes title to the goods, assume risks, and sells to other wholesalers, business customers, or retailers
What do marketers hope to gain by developing at least one dimension of value in the marketing mix that surpasses all competitors in meeting customer expectations?
a competitive advantage
Which of the following is NOT a type of sales promotion?
A customer blogging about a product
Which two qualify as advertising?
A paid television infomercial Online ads from Starbucks about its new product
Sales increases
Advertising with high impact, hard-hitting language and symbols
Brand awareness
Advertising with repetition of the brand name and words and illustrations associated with it.
Why are distribution decisions considered one of the least flexible marketing mix decisions?
Distribution decisions often commit resources. Distribution decisions often establish contractual relationships that are difficult to change.
Allow for more detail and explanation
Magazine and newspaper advertisements
Agent
Negotiate sales, do not own products, and perform a limited number of functions in exchange for a commission.
_____ is the most flexible of the promotional methods because it gives marketers the greatest opportunity to communicate specific information that might answer an objection.
Personal selling
_______ products require research and extensive shopping effort as consumers know what they want and are not willing to accept a substitute.
Specialty
Identify the sales promotions in the list below. (Select all that apply)
Store displays Coupons Samples and demonstrations
Which of the following are typical objectives of promotion? (Select all that apply)
To stabilize sales To inform, remind, and reinforce customers To stimulate demand
When a firm prices a new product very high to make optimum profit while there is little competition, it is said to be using ______.
a price skimming strategy
A name, symbol, or design that identifies the goods or services of one seller in comparison to other sellers is a ______.
brand
Profits begin to decline during the growth stage because ______.
competitors enter the market and drive prices downward
Products created for household or family use and intended for daily living are called ______ products.
consumer
Products created for household or family use intended for daily living are called ( ) products.
consumer
Face-to-face sales presentations to consumers that often take place in the consumer's home is the nonstore retailing form known as ______ selling.
direct
The use of nonpersonal media to communicate products and information and offer consumers the opportunity to purchase from that media is referred to as ______.
direct marketing
Decisions regarding ( ) are among the least flexible marketing mix decisions.
distribution
Which three (3) are used as a measure of product quality?
durable easily maintained reliable
Sales increase rapidly and profits peak, then start to decline in the _____ stage of the product life cycle.
growth
Which three products are considered convenience products and thus would utilize an intensive distribution?
gum gasoline soft drinks
Place the steps of product development in the correct order. (NOTE: The first step in the process should be at the top of your list, the last step should be at the bottom of your list)
idea development, new idea screening, business analysis, product development, test marketing, commercialization
The process of coordinating the promotion mix elements and synchronizing promotion as a unified effort is called _______.
integrated marketing communication
_____ distribution makes a product available in as many outlets as possible.
intensive
_______ is the planning and coordination of inbound and outbound as well as third-party services.
logistics
Brands that are initiated and owned by the manufacturer, such as Xerox or SONY, are called ______.
manufacturers' brands
The group of organizations that move products from the producer to consumers is a ______.
marketing channel
The _____ is the part of marketing strategy that involves decisions regarding controllable variables: product, price, distribution, and promotion.
marketing mix
If sales of a product peak and begin to decline along with declining profits due to severe competition and heavy expenditures, the product is in the _____ stage of the product life cycle.
maturity
The ( ) is the external container that holds and describes the product, and influences consumers' attitudes and buying decisions.
packaging
A ( ) pricing strategy is the practice of pricing a product low to attract many customers and rapidly gain market share.
penetration
A low initial entry price, often lower than the eventual market price, to attract many customers and discourage competition, is a strategy called _______ pricing.
penetration
A car salesperson interacting with a client is an example of ( ) selling because it is a two-way communication between a salesperson and a potential buyer.
personal
The promotion mix consists of ______. (select all that apply)
personal selling advertising sales promotion publicity
The value placed on an object exchanged between buyer and seller is its ( ).
price
Four common ( ) objectives are: maximizing profits and sales, boosting market share, maintaining the status quo, and survival.
pricing
The ______ variable of the marketing mix is often the most visible and therefore of critical importance.
product
All of the following information is typically presented on a product's label EXCEPT ______.
product classification
Any information about an individual, a product, or an organization that is distributed to the public through the media and that's not paid for or controlled by the seller is known as ( ).
publicity
The promotional strategy in which the producer uses wholesaler discounts, personal selling, sales promotion contests, and other promotional tools to convince wholesalers and retailers to stock and sell its merchandise is known as a ( ) strategy.
push
Organizations that bridge the gap between a product's manufacturer and the end user are called intermediaries or middle men. Two types of intermediary organizations are ______. (select two)
retailers wholesalers
Which three items are signs that a product is in the maturity stage of the product life cycle? (Select all that apply)
sales peak and start to decline competition is severe profits decline
The promotional tool that stimulates consumer purchasing by adding value or other incentives for buyers is known as ______.
sales promotion
Sometimes marketers place representatives at a supermarket to hand out portions of a product for customers to taste. What promotional tool are they using?
sampling
If a push strategy is successful, then consumers are more likely to find out about a new product after ______.
seeing it in stores
Products the consumer buys only after comparing value, quality, price, and style from a variety of sellers are called ______.
shopping products
( )( ) management involves long-term partnerships among marketing channel members working together to reduce costs, waste, and unnecessary movement in the entire marketing channel to satisfy customers.
supply chain
The process of connecting and integrating all members of the distribution system in order to satisfy customers is referred to as ______.
supply-chain management
Which of the following are common pricing objectives?
survival boosting market share maintaining the status quo maximizing profits and sales
Which of the following are characteristics of advertising? (Select all that apply)
transmitted through a mass medium non-personal communication uses various media
The engineers at Wonderful Widgets have come up with an idea for a new product. The company has determined that the product fills a market need and that it should generate a profit. Now the company wants to see how the product will be perceived by the consumer. How will the company do this?
By creating a prototype
All of the following are brand marks EXCEPT ______.
the word Pepsi on a Pepsi drink can
Select the three types of utility created by retailers.
time utility ownership utility place utility
What is test marketing?
A trial mini-launch of a product in a limited area
Which of the following exemplify sales promotion through sampling? (Select all that apply)
Car dealer test drives Supermarket taste test Scratch and sniff magazine inserts
______ distribution includes all the activities necessary to move products from producers to consumers.
Physical
Which three utilities are provided by marketing intermediaries, also known as middlemen?
Place Ownership Time
Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the message is known as ( ).
advertising
A(n) ( )( ) involves designing a series of advertisements and placing them in various media to reach a particular target audience.
advertising campaign
Which of the following wholesalers does not own products but negotiates sales in exchange for a commission?
agents
Integrated marketing communication (IMC) combines ______ into one comprehensive, unified promotional strategy.
all the promotional tools
The supply chain includes ______.
all who are involved in moving products from the producer to the ultimate consumer
Assessing new-product ideas by developing cost estimates and sales forecasts in order to determine if the product will be profitable, takes place in the _____ stage of the new-product development process.
business analysis
Match the steps in the new-product development process to the correct activity.
coming up with new commercial products to pursue reducing the number of ideas to the most promising and working on those assessing the potential profitability of the product creating a prototype taking a product idea to consumers to test their reactions promoting a product to distributors, retailers, and consumers to gain wide interest and distribution in the product
While Duluth Trading operates some retail locations, it specializes in selling its products through catalogs. In doing so, Duluth Trading is engaged in _______ marketing.
direct marketing
Janet works part-time for Pampered Chef. Her selling technique is to hold "parties" in people's homes where she cooks food and demonstrates the kitchen products she has for sale. This is an example of ____.
direct selling
Products, such as butter, aspirin, or dog food, sold in plain simple packaging without a brand name are called ______.
generic brands
When the marketing manager looks at the organization's resources and objectives to assess the firm's ability to produce and market a product, the company is in the _____ stage of new product development.
idea screening
List the four steps for calculating the value of a product, starting with step one. (Note: step one should appear at the top of your list)
identify target customers identify their best alternative determine the product's difference calculate value based on its differentiation
What stage of the product life cycle is a product likely in if consumer awareness is limited and profits are negative?
introduction
List the stages of the product life cycle in sequence from beginning to end. (Note: The first stage should be the top item on your list)
introduction growth maturity decline
The stages of the product life cycle are ______.
introduction, growth, maturity, decline
The _____ stage of the product life cycle is exemplified by low sales, limited consumer awareness, and negative profits.
introductory
The presentation of important information on a package, such as ingredients and nutrition facts, is called _____.
labeling
A group of closely related products that are treated as a unit because they use a similar marketing strategy are referred to as a ______.
line
A group of products that are physically similar or are intended for a similar market are referred to as a product ( ).
line
Brands that are initiated and owned by the manufacturer, such as Xerox or SONY, are called ( ) brands.
manufacturer
Game Masters has just released the long-awaited, new platform of its most popular gaming console. Since the company wants to recoup development costs, and there will be little competition at first, Game Masters is setting the price rather high. Game Masters is using a ______ pricing strategy.
price skimming
Newspapers, magazines, and direct mail are _____ media, whereas television, radio, and cyber ads are _____ media.
print; electronic
The Great Value brand is found only at Walmart and is often less expensive than other brands carried by the store. Great Value is an example of a ______.
private distributor brand
Brands that do not carry the name of the manufacturer but carry a distributor or retailer name are called ______.
private distributor brands
Goods, services and ideas all fall under the element of the marketing mix.
product
During which stage of new product development is a prototype of the product created?
product development
Firms use _____ for many reasons, but typical objectives are to stimulate demand, to stabilize sales, and to inform, remind, and reinforce customers.
promotion
The objectives of are to stimulate demand; to stabilize sales; and to inform, remind, and reinforce customers.
promotion
Advertising, personal selling, publicity, and sales promotion are collectively known as the _____.
promotion mix
When a manufacturer of a hybrid vehicle attempts to create an image of the product as helping to save the environment, it is using _____.
promotional positioning
Brandon needed to get a new tractor for his landscaping business. He needed to make sure that the tractor would perform well for a long time, was easy to maintain, and was made with durable parts. Brandon is assessing the product's ______.
quality
A trial mini-launch of a product in a limited area that represents the potential market is referred to as ______.
test marketing
True or false: Product packaging attributes can influence consumer buying decisions.
true
Publicity differs from advertising in that it is _____.
unpaid
A lumber yard that buys plywood from a producer and sells it to a home improvement retail store is an example of a(n) _____.
wholesaler
