MKT340 Exam 2 Review

According to a recent study, ________ percent of shoppers use their smartphones while shopping.

60

retailer cooperative

A __________ is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

supermarket

A __________ is a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products.

Store brand

A brand created and owned by a reseller of a product or service

Which of the following is a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort?

A convenience product

channel level

A layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer

Undifferentiated marketing

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer

What happens during the growth stage of the PLC?

A product's sales start climbing quickly

Convenience store

A small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods

indirect marketing channel

A(n) ________ is a channel containing one or more intermediary levels.

Shopping product

A(n) ________ is a consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, and sty

Conventional distribution

A(n) __________ channel consists of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.

Horizontal marketing system

A(n) __________ is a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

Superstore

A(n) __________ is a store that offers a large assortment of routinely purchased food products, nonfood items, and services.

Contractual VMS

A(n) __________ is a vertical marketing system in which independent firms at different levels of production and distribution join together through contracts.

Which of the following describes promotion decisions?

Advertising, personal selling, sales promotion, public relations, and direct marketing

retailing

All the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use

What is a service?

An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

Value-added pricing

Attaching value-added features and services to differentiate a company's offers and support higher prices

Which of the following is part of the process of brand positioning?

Attributes and benefits

What of the following describes cost-based pricing?

Based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk

Which of the following describes an off-price retailer?

Buys at less-than-regular wholesale prices and sells at less than retail

Which of the following best defines fixed costs?

Costs that do not vary with production or sales level

What are variable costs?

Costs that vary directly with the level of production

Price decision

Deciding on either high markups on lower volume or low markups on higher volume is an example of a

product assortment and services decision

Deciding on store atmosphere is a major part of a product variable, and is an example of a __________.

product development

Developing the product concept into a physical product to ensure that the product idea can be turned into a workable market offering

What is another name for segmented marketing?

Differentiated marketing

What does differentiation involve?

Distinguishing the market offering to create superior customer value

a brand extension

Extending a current brand name to new or modified products in a new category refers to

Which of the following describes exclusive distribution?

Giving a limited number of dealers the exclusive right to distribute the company's products in their territories

standardize

Most companies would like to __________ their offerings, thus developing a consistent worldwide image

Introduction stage

Offering a basic product is a product strategy in the __________ of the PLC.

multichannel distribution system

One in which a single firm sets up two or more marketing channels to reach one or more customer segments

Decline stage

PLC stage does a product's sales fade away?

Which term means that services cannot be stored for later sale or use?

Service perishability

What is the second step in value-based pricing?

Setting a target price to match customer perceived value

Local marketing

Tailoring brands and marketing to the needs and wants of local customer segments - cities, neighborhoods, and even specific stores

What is micromarketing?

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Service variability

That the quality of services may vary greatly depending on who provides them and when, where, and how they are provided

Introduction stage

The __________ is the PLC stage in which a new product is first distributed and made available for purchase.

What is cost-plus pricing?

The addition of a standard markup to the cost of the product

Product quality

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

What does the experience curve illutrate?

The drop in the average per-unit product cost that comes with accumulated production experience

What is product position?

The place the product occupies in consumers' minds relative to competing products

Idea screening

The process of filtering new product ideas to spot good ideas and drop poor ones as soon as possible

Concept testing

The process of testing new product concepts with a group of target consumers to find out if the concepts have strong consumer appeal is known as

Intermarket

The segmenting of consumers who have similar needs and buying behaviors even though they are located in different countries is known as __________ segmentation

Which of the following defines total cost?

The sum of the fixed and variable costs for any given level of production

What is the purpose of a service profit chain?

To link service firm profits with employee and customer satisfaction

Wholesaling

What is the name for all the activities involved in selling goods and services to those buying for resale and business use?

Commercialization

What is the name for the introduction of a new product into the market?

Showrooming

What is the name for the shopping practice of coming into retail stores to check out merchandise and prices but instead buying from an online-only rival?

A specialty product

Which of the following is a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort?

Diversifying the brand and models

Which of the following is a product strategy in the maturity stage of the PLC?

Fad

Which of the following is a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity?

Administered VMS

Which of the following is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties?

Corporate chain

Which of the following refers to two or more outlets that are commonly owned and controlled?

Fashion

Which term refers to a currently accepted or popular mode of expression in a given field?

Third-party logistics provider

Which term refers to an independent logistics provider that performs any or all of the functions required to get a client's product to market?

Target costing

Which term refers to pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met?

Style is

a basic and distinctive mode of expression

Product Concept

a detailed version of the new product idea stated in meaningful consumer terms

Product Line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

A supermarket is

a large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products

Marketing channel

a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user

A corporate VMS is

a vertical marketing system that combines successive stages of production and distribution under single ownership

A voluntary chain is

a wholesaler-sponsored group of independent retailers engaged in group buying and merchandising

Price is best defined as the __________.

amount of money charged for a product or service

Competitive advantage is:

an advantage over competitors gained by offering greater customer value, either by having lower prices or by providing more benefits that justify higher prices

Finding the best name for a product is part of

brand name selection

A distribution center is

designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible

Marketing strategy development primarily involves

designing an initial marketing strategy for a new product based on the product concept

The fourth step in value-based pricing is __________.

designing products to deliver the desired value at the target price

In value-based pricing, __________ is the third step.

determining the costs that can be incurred

Behavioral segmentation

divides a market into segments based on consumer knowledge, attitudes, uses, or responses to a product

psychographic segmentation

divides the market into different segments based on lifestyle or personality characteristic

In cost-based pricing, designing a good product is the __________ step.

first

In value-based pricing, assessing customer needs and value perceptions is the __________ step in the process.

first

Convincing buyers of a product's value is the __________ step in cost-based pricing.

fourth

Positioning

involves arranging a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Marketing segmentation

involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

Market targeting

involves evaluating each market segment's attractiveness and selecting one or more segments to enter

Intensive distribution

involves stocking the product in as many outlets as possible.

Direct marketing channel

is a channel that has no intermediary level

Concentrated marketing

is a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

positioning statement

is a statement that summarizes company or brand positioning using this form: To (target segment and needs) our (brand) is (concept) that (point of difference)

Walmart

is an example of a discount store

Personality

is an example of psychographic segmentation

Customer value-based pricing

is based on a buyer's perceptions of value rather than on the seller's cost

Marketing logistics

is planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit

Disintermediation

is the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.

Integrated logistics management

is the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organization—to maximize the performance of the entire distribution system.

Co-branding

is the practice of using the established brand names of two different companies on the same product

A product mix

is the set of all product lines and items that a particular seller offers for sale.

Test marketing

is the stage of new product development in which the product and its proposed marketing are tested in realistic market settings.

Selective distribution

is the use of more than one but fewer than all of the intermediaries who are willing to carry the company's products

Online retailing

is thriving. According to a recent study, 60 percent of shoppers use their smartphones while shopping.

Brand sponsorship includes

licensing and co-branding

Supply chain management

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Service inseparability

means that services are produced and consumed at the same time and cannot be separated from their providers.

Geographic segmentation divides a market into:

nations, states, regions, counties, cities, or neighborhoods

Limited-service wholesalers

offer fewer services than other wholesalers

In the maturity stage of the PLC, a

product's sales growth slows or levels off

Full-service wholesalers

provide an entire line of services: carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance

A product

refers to anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

Team-based new product development

refers to new product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness

Customer-centered new product development

refers to new product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences.

good-value pricing

refers to offering just the right combination of quality and good service.

Green retailing

refers to retailers adopting environmentally sustainable practices.

Individual marketing

refers to tailoring products and marketing programs to the needs and preferences of individual customers

Micromarketing

refers to tailoring products and marketing programs to the needs and wants of specific individuals and customer segments.

In cost-based pricing, determining product costs is the __________ step.

second

In value-based pricing, setting a target price to match customer perceived value is the __________ step.

second

Occasion segmentation divides a market into

segments according to times when buyers get the idea to buy, actually make their purchase, or use the purchased item

Marketing channel management refers to

selecting, managing, and motivating individual channel members and evaluating their performance over time

Wholesale merchants

sell primarily to retailers and provide a full range of services.

Industrial distributions

sell to manufacturers rather than to retailers

In cost-based pricing, __________ is the third step.

setting the price based on cost

A demand curve is a curve that

shows the number of units the market will buy in a given time period, at different prices that might be changed

An unsought product is a consumer product

that the consumer either does not know about or knows about but does not normally consider buying

Brand equity

the differential effect that knowing the brand name has on customer response to the product or its marketing

A value proposition is

the full positioning of a brand — the full mix of benefits on which it is positioned

Idea generation is

the systematic search for new product idea