Exam 2 Marketing

A discount house can store and transport merchandise that is purchased directly from the producer, thus eliminating the need for a wholesaler. This is an example of vertical channel integration.

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A nonprofit organization may exist in an environment in which its goals are opposed by some members of society.

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A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.

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A product need not be a physical product.

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An example of a nonstore retailer is a vending machine.

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An important question in the business analysis stage of new-product development is, "Is demand strong enough to justify entering the market and will this demand endure?"

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Both production and consumption of services occur at the same time.

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Communicating product benefits to consumers is very important in the introduction stage.

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Conflicts with the retailer may develop if the dealer decides to place too much emphasis on competing product lines.

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Convenience products usually are distributed intensively because sales of these products tend to have a direct relationship to availability.

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Demand for a product category rather than for a specific brand is called primary demand.

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Demand-based pricing means lower prices during times of lower demand and higher prices during times of higher demand.

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Department stores are characterized by wide product mixes.

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Direct marketing is the selling of products outside the confines of a retail facility

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Effective promotional programs require management efforts such as planning, organization, implementation, and control.

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Firms that desire to convey an exclusive image for their products may wish to limit the number of outlets available.

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Firms that link the purchase of their product to philanthropic efforts practice cause-related marketing.

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Functional modifications usually require that the product be redesigned.

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If integrated marketing communications works as intended, customers should receive clear and consistent messages.

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Long-term commitments usually characterize the relationships among channel members.

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Many of the so-called new products that are launched each year are in fact line extensions.

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Marketing channels create several types of utility including time, place, possession, and form.

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Off-price retailers seek to attract relatively affluent consumers who are price-conscious and knowledgeable about brand names.

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One of the best ways to better understand customer needs and expectations is to ask contact employees.

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Promotion can assist salespeople in finding likely sales prospects

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Rapid feedback enables communicators to quickly improve the effectiveness of their communication.

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Relatively few product ideas are put into the product development stage.

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Retailers form an important link in the marketing channel because they are both marketers and customers.

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Sales peak in a product's maturity stage, but profits don't.

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Selective demand is demand for a certain brand.

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Service, repair work, and accessories may be important considerations in a consumer's decision to purchase a particular shopping product.

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Services are highly perishable and cannot be inventoried for future use.

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Store atmospherics are used to create emotional effects that enhance the probability of purchasing.

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Supporting services, such as installation and guarantees, are part of a product.

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Test marketing is a sample launching of the entire marketing mix.

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The atmosphere and décor of a retail store, the variety and depth of product choices, the customer support, even the sounds and smells all contribute to the experiential element of its total product.

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The depth of a product mix is measured by the average number of product types in a product line.

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The major drawback in using aesthetic modifications is that their value is determined subjectively.

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The purpose of a marketing channel is to make products available at the right time at the right place in the right quantities.

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The role of promotion is to communicate.

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Time spent in test marketing can benefit a firm's competitors

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Using promotional efforts that encourage the trial use of some services can be an effective way for customers to assess the quality of the offered service.

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Warehouse showrooms are able to sell products at low prices by passing some of their marketing functions on to consumers.

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When higher-priced or technically complex business products are involved, business customers prefer to deal directly with producers rather than through intermediaries.

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Because services are intangible by nature, marketers should downplay the tangibles associated with a particular service (such as facilities or employees).

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Concept testing presents a small sample of potential buyers with a trial version of the new product to determine their initial reactions.

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Consumers are reluctant to purchase substitute brands if a desired brand of a convenience product is unattainable.

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Discount stores are distinctive in that they usually are very service-oriented.

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Feedback does not exist for mass communication.

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Firms marketing a quality product that generates strong sales can afford to keep expenses down by eliminating new-product development.

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Franchised outlets are generally less successful than independently owned businesses.

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Inventory decisions seldom have a strong impact on physical distribution costs and on the level of customer service provided.

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Per-unit gross margins on convenience products are relatively high.

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Pinpointing a target market should be done only after the selection of a marketing mix.

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Quality modifications never seek to reduce product quality.

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Service industries account for less than 50 percent of the U.S. gross domestic product.

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Services are products that can be touched and felt.

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Supply chain management combines two or more stages of the marketing channel under one management.

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When encoding a message, the source should use signs or symbols that are new to the audience.

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Wholesalers rarely handle credit for retailers and producers.

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