MKT EXAM 2
________ refers to the stage of the business buying process in which the buyer tries to find the best vendors.
Supplier search
New products sometimes fail because they are launched at the wrong time.
True
Federal legislation on price fixing requires that sellers set their prices ________.
Without communication from competitors
If Detroit DLX charges the same price for the delivery of its product to customers located in the states near the Great Lakes, but a different price to customers elsewhere, the company is using ________.
Zone pricing
Consumer product
a product bought to satisfy an individual's personal wants
unsought product
a product unknown to the potential buyer or a known product that the buyer does not actively seek (insurance)
Straight rebuy
a routine repurchase that may have been made many times before
Concentrated approach
a single marketing mix is directed at a single market segment
Dynamic pricing
adjusting prices continually to meet the characteristics and needs of individual customers and situations (uber)
Modified rebuy
buyer wants to modify product specifications, prices, terms, or suppliers
Systems selling (or solutions selling)
buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
Business buyer behavior refers to the ________.
buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others
Person marketing
consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people
Place marketing
consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places
When developing products, marketers first must identify the ________ that consumers seek from the product.
core customer value
New task buy
first time purchase of a product or service
Steve jobs quote (important)
focus on the product not the brand
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is called ________.
full-line forcing
Category killers
giant specialty stores carrying deep assortments (best buy)
Administrated vertical marketing system
has a few dominant channel members without common ownership. Leadership comes from size and power
Variable costs
raw materials, packaging
Discount and allowance pricing
reduces prices to reward customer responses
Channel conflict
refers to disagreement among channel members over goals, roles, and rewards
Segmented pricing
selling a product or service at two or more prices, where the difference in prices is not based on differences in costs
Retailing and wholsailing
selling functions and not a part of manufacturing processes
________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
services
Market skimming prices
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
Fluctuating
small changes in consumer demand create large changes in business demand
Omni-channel retailers are those who ________.
successfully merge the virtual and physical worlds
supplier development
systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others
Micromarketing
tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments
Product line pricing
takes into account the cost differences between products in the line, customer evaluation of their features, and competitors' prices
Promotional pricing
temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
Acquisition
the buying of a whole company, a patent, or a license to produce someone else's product
New product development
the development of original products, product improvements, product modifications, and new brands through the firm's own product development efforts
Brand equity
the differential effect that knowing the brand name has on customer response to the product or its marketing
Brand equity
the differential effect that knowing the brand name has on customer response to the product or its marketing (coke)
optional product pricing
the pricing of optional or accessory products along with a main product
Profit =
total revenues- total costs
________ involves sending a letter, catalog, advertisement, or brochure to a specific physical address.
Direct mail marketing
Segmentation
Diving a market into smaller segments with distinct needs and characteristics
convenience products
Low buying effort and buys frequently (fast food)
Profit =
(profit x quantity) -(fixed cost +(variable cost- quantity))
Demand falls 10% when seller raises prices by 2%
-10% / 2% = -5
Mansfield Pharmaceuticals markets Zipro, an antibiotic. The firm has fixed costs of $1,000,000 and variable costs of $2 per bottle of 50 tablets priced at $10 per bottle. What is the break-even volume?
125,000
________ involves the use of a successful brand name for new or modified products in a new category.
A brand extension
Brand Positioning
A branding strategy in which marketers create a certain image or impression of a brand as compared to those of competitors' brands (disney)
Market-penetration pricing strategies work best for a new product when ________.
A low price helps keep out the competition
Prices do not have an impact on a firm's bottom line.
false
A(n) ________ does not take title to goods and represents buyers or sellers on a more permanent basis than a broker.
Agent
Which of the following wholesaler's channel functions is exemplified by buying in carload lots and then dividing these lots into small quantities?
Bulk breaking
Derived demand
Business demand that ultimately comes from (derives from) the demand for consumer goods.
Shopping product
Less frequently bought and chosen carefully (cars)
Which of the following product mix pricing strategies does Amazon use when it sets the prices on Kindle readers and tablets?
Captive product pricing
Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the new product innovation process?
Crowdsourcing
True or false: Psychographic segmentation divides the market into segments based on easily measured variables such as age, gender, income, occupation, education, and ethnicity.
False
The business marketer normally deals with __________ than the consumer marketer does.
Far fewer but far larger buyers
Total costs =
Fixed Costs + (Variable Cost Rate per unit * # units)
Blue Fin tuna has higher sales than its unbranded rival, even though the unbranded tuna costs 0.45 cents less per can than bluefin tuna. Blue fin most likely has _____________.
High brand equity
Which product life-cycle stage is characterized by the highest cost per customer?
Introduction
Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________ pricing.
Market skimming
Apple's iphone has been called " one of the greatest consumer electronics hits of all time." .... based on this description, the iphone is in the ________ stage of the product life cycle.
Maturity stage
Total revenue =
Price x Quantity
4 P's
Price, Product, Promotion, Place
Fixed costs
Rent, equipment, interest, executive salaries
________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
Retailing
Market penetration strategy
Setting a low initial price for a new product in order to attract a large number of buyers.
For some brands and industries, ________ is less sensitive to changes in price. For example, because of Apple's brand strength and differentiated products, its core of strongly loyal customers will continue to buy Apple iPhones and other devices despite recurring price increases.
demand
Jeremy's, a handbag manufacturer in Lower Manhattan, procures a large stock of leather in anticipation of brisk sales of handbags during December. This is an example of a(n) ________ demand.
derived
Undifferentiated approach
directing a single marketing mix at the entire market for a particular product
The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________.
disintermediation
Bulk breaking
dividing larger quantities of product (function of wholesailers)
Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. This reflects Bon Vivant's ________ pricing strategy.
everyday low
Target partners with CVS Health, which operates CVS pharmacies and Minute Clinics in Target stores through a store-within-a-store format. The partnership gives CVS Health more than nearly 1,700 pharmacies and 1,100 clinics at prime locations inside Target stores. This is an example of a(n) ________.
horizontal marketing system
When a company decides to commercialize a new product, it typically ________.
incurs high costs
________ distribution is a strategy in which producers of convenience products and common raw materials stock their products in as many outlets as possible.
intensive
The buying center usually includes many participants who influence each other, so ________ also influence the business buying process.
interpersonal factors
Crowdsourcing
inviting broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the new product innovation process
Captive product pricing
involves products that must be used along with the main product
The COVID-19 pandemic dramatically changed how business buyers and sellers meet, interact, and make decisions. Work-from-home regimens and other social-distancing measures "forced B-to-B buyers and sellers to go digital in a massive way." This example shows that ________.
major environmental disruptions influence business buyers
Differentiating approach
marketing towards different segments, each in a different way
wholesailers
must decide on product and service assortments, prices, product, place
Bullwhip effect
occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain
Psychological pricing
occurs when sellers consider the psychology of prices and not simply the economics
breakeven point
occurs where revenues just equal costs
price elasticity of demand
percent change in quantity demand/ percent change in price
A flight takes off with 20 empty seats. This is an example of service ________ because services cannot be stored for later use.
perishability
Tennis superstar and entrepreneur Serena Williams earned $45 million last year from endorsements for brands ranging from Nike and Gatorade to Beats by Dre, Pepsi, and Chase Bank. Williams herself has become a marketable brand. She recently launched a fashion line-S by Serena-inspired by her own personal model of femininity, strength, and authenticity. "I want to be the brand," she says, "instead of just being the face." This is an example of ________.
person marketing
Product costs set the floor for a product's ________.
price
Inelastic
price is not sensitive (insuline)
Elastic
price is sensitive (avocados)
horizontal marketing system
two or more companies at one level join together to follow a new marketing opportunity
Multi-channel distribution
two or more marketing channels
Specialty product
unique characteristics (designer clothes)
Final price =
unit cost/(1- return on sale)
Social marketing
uses commercial marketing concepts to influence individuals' behavior to improve their well-being and that of society
Fishyback (important)
uses water and truck to transport goods
Ford makes great trucks. But to make and market just one of its many lines-say, its best-selling F-150 truck model-Ford manages a huge network of people within the company, from marketing and sales people to folks in finance and operations. It also coordinates the efforts of thousands of suppliers, dealers, and advertising agencies and other marketing service firms. The entire network must function together to create and deliver customer value and establish the brand's "Built Ford Tough" positioning. This is an example of (a) ________.
value delivery