Marketing Chapter 3 Quiz
channel of distribution
A group of individuals and organizations that direct the flow of products from producers to customers within the supply chain
Based on the guidelines for creating a good brand name, which of the following represents the best brand name?
Acuvue contact lenses
A channel of distribution is a group of individuals and organization that
Directs the flow of products from producers to customers.
Disney theme park employees have to adhere to strict rules. For example, women cannot wear earrings larger than a quarter and fingernails can be no longer than an eraser. These rules allow employees to still look unique, however, prevent employees from disrupting the magic of Disney while customers are inside the theme parks. In essence, Disney has recognized the _________ of services.
Heterogeneity/Inconsistency
The four major stages of a product life cycle include:
Introduction, growth, maturity, and decline
marketing intermediaries
Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangement or through the purchase and reselling of products
A brand is best defined as a
Name, term, sign, symbol, design, or combination of these that identifies a seller's product.
Because services cannot be inventoried, Subway restaurants have attempted to streamline the creation of submarine sandwiches as much as possible. Often, as many as 3 employees will perform specific functions to service a single customer. Streamlining the service to the extent possible is a strategy to deal with what unique characteristic of services?
Perishability/Inventory
new product strategy development
The key ingredient is the new product strategy or the product innovation charter. The new product strategy charts the strategy for the firm's entire new product initiative. It is the master plan; it provides the direction for your company's new product efforts, and it is the essential link between your product development effort and your firm's corporate strategy
The salvage value of unsold services is:
Zero
Prototype
a first, typical or preliminary model of something, especially a machine, from which other forms are developed or copied.
product line
a group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations
Channel Power
ability of one channel member to influence another channel member's goal achievement
Retailing
all transactions in which the buyer intends to consume the product through personal, family or household use
retailer
an organization that purchases products for the purpose of reselling them to ultimate consumers
Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's
atmospherics
Category killers
big box retailers that focuses on one or a few product categories (makes it hard for general retailers to compete)
Off-price retailers
buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts
Staples is a specialty discount outlet that focuses on one type of product: office supplies. Staples is referred to as a:
category killer
Good packaging benefits
communication, functional, perceptual
growth - strategic action
competitive promotion - stress brand benefits & encourage brand loyalty, increase distribution & improve efficiency and product modifications/improvements
factors package developers must consider
cost, regulations, consistency, promo role, needs of resellers, environmental concerns
intro - objectives
create consumer awareness and stimulate trial, primary demand and selective demand
brand loyalty
customer's favorable attitude toward a specific brand
decline - objectives
cut your losses and reinvest in new areas
Development
determining if producing a product is technically feasible and cost effective
The depth of a product mix is measured by the average number of
different products offered in each product line
Channel Captain
dominant leader of a marketing channel or a supply channel (producer, wholesaler, retailer)
Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using
dual distribution
The _____ category is often an individual who serves as a bridge to other networks, an opinion broker between groups, rather than within groups.
early adopters
maturity - objectives
emphasis is placed on holding market share through further differentiation and attracting new buyers, generate cash flow
Specialty stores
emphasize narrow and deep assortments of items
If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be
exercising channel power
innovators
first 2.5%
growth - objectives
focus shifts to generating selective demand and to ensure repeat purchases among early adopters
late majority
fourth, 34%
breadth of product line
general merchandise (product line)
products
goods, services, or ideas received in an exchange
Developing a pool of concepts as candidates for new-products is the __________ stage of the new-product process.
idea generation
new product strategy process
idea generation, screening, concept testing, business analysis, product development, test marketing, commercialization
value of branding to buyer
identification (reduce search cost), form of self expression, evaluate quality, reduce risks, psychological reward
The value of branding to sellers
identification (repeat customers), new product intro, promo efforts due to knock offs. efforts, brand loyalty/market stability
Perishability/Inventory
inability of a service to be inventoried or stored
scent
increases lingering time, positively influenced, alleviate stress
convenience products
inexpensive, frequently purchased items with minimal effort
color
influences customer perceptions
Mary recently went to Douglas J to get her hair styled. While she was getting her hair styled she noticed that she was consuming the service (the hair styling) at the exact time it was being produced. What unique characteristic of a service did Mary notice?
inseperability
Services have a lack of tangible assets that can be seen, touched, or smelled prior to purchase. This unique characteristic of a service is also known as _________.
intangibility
product life cycle
introduction, growth, maturity, decline
Business Analysis
involves assessing the attractiveness of a product from a sales, cost, profit, and cash-flow standpoint.
Test Marketing
involves offering a product for sale on a limited basis in a defined geographical area
Brand Equity
is the marketing and financial value associated with a brand's strength in a market
shopping products
items buyers spend considerable effort planning and making purchases
specialty products
items with unique characteristics that buyers are willing to spend considerable effort to obtain
A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called
just-in-time (JIT)
Intangibility
lack of tangible assets that can be seen, touched, or smelled prior to purchase
laggards
last 16%
Which of the following consumer groups tend to be skeptical consumers?
late majority and laggards
prototype uses
learning, communication, integration, milestones
Customer-contact employees
least trained and lowest paid
width of product mix
number of product lines a company offers
Stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called
off-price retailers
decline - strategic actions
product deletion and harvesting, cut promotion
maturity - strategic action
product line additions - emphasize improvements and differences in competitor products, discounting - dealer-oriented promotions, improving overall efficiency
unsought products
product purchase to solve sudden problem, product which customer is unaware, product that people do not necessarily think of buying
intro - strategic actions
promote features, uses, & advantages, pricing, price skimming, and penetration pricing
Commercialization
refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product
General-merchandise retailers
retail establishments that offers a variety of product lines stocked in considerable depth
Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n):
retailer
Atmospherics
scent, music, color
The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as __________.
screening and evaluation
early adopters
second, 13%
Concept Testing
seeking a sample of potential buyers' responses to a product idea
Concept tests are part of which stage in the new product process?
seeking a sample of potential buyers' responses to a product idea
Screening/evaluation
selecting the ideas with the greatest potential for further review
Good brand characteristics
simple, emotional, describes product benefits, memorable/distinctive/positive, fits company image, legally protectable, suitable internationally.
Inseparability
simultaneous production and consumption of a service
music
slower tempo, low volume encourages leisure
During the maturity stage
some competitors are forced out
A narrow product mix with a deep product line would most likely be carried by
specialty retailers
Depth of product line
specialty stores (product line)
product item
specific version of a product that can be designated as a distinct offering among a firm's products
Channel Cooperation
speed up inventory replenishment, improve customer service, cut cost of bringing products to customers
Traditional specialty retailers
stores that carry a narrow product mix with deep product lines
The stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as
test marketing
depth of product mix
the average number of different products in each product line
Brand recognition
the degree of brand loyalty in which a customer is aware that a brand exists and views the brand as an alternative purchase if their preferred brand is unavailable or the other brands are unfamiliar
Brand preference
the degree of brand loyalty in which a customer prefers one brand over competitive offerings
Brand insistence
the degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute
brand name
the part of a brand that can be spoken including letter, words, and numbers
Brand mark
the part of a brand that is not made up of words, such as a symbol or design
new-product strategy development refers to
the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives.
Screening and evaluation refers to
the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.
product mix
the total group of products that an organization makes available to customer
early majority
third, 34%
wholesaling
transactions in which products are bought for resale, making other products or for general business operations
idea generation
triggers of use, unarticulated user needs, interaction with the users environment, customization of products and intangible product attributes
Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam's Club and has a new tire installed. Ryan's purchase of a new tire in this situation is considered to be a(n)
unsought good
Heterogeneity/Inconsistency
unwanted or random levels of service quality customers receive when they patronize a service firm
Open innovation
use external knowledge and technology to strengthen their own innovations, and creates value internally developed innovations that are not immediately applicable in their own business
In service marketing, the most important link to the customer is
well-trained contact employees.
branding
· name, tern, design, symbol, or other feature that identifies one seller's product as distinct from those of other sellers
Supply-Chain Management
• A set of approaches used to integrate the functions of operations management, logistics management, supply management and marketing channel management so products are produced and distributed in the right