MTG 315 Howard- FINAL

Which of the following services falls closest to the middle of the tangibility continuum?

Dinner at olive garden

One way that Honda evaluates its product and service level is by how well it ranks on the J.D. Power & Associates Sales Satisfaction Survey. In doing so, Honda is

Evaluating actual perormance

When an individual considers whether a product will meet certain criteria that are critical for meeting his or her needs, in what stage of the product adoption process is the individual

Evaluation

which of the following is not a common feature of a warehouse club?

Good customer service

A product can be defined as

Goods, services, or ideas

Change-ezz

Heterogeneity

Organizations Should define themselves not according to the products they produce but according to

How they satisfy customers

Nabisco is considering two pricing objectives. The first is to sell one out of every three crackers consumed in the world, an objective based on _____; the second one is to meet, but not beat, competitor's prices of cookie products, which is a _______ objective.

Market share and status quo

The marketing channel of producer-retailer-consumer is most likely to be used by producers of which of the following products?

New Automobiles

For most firms, the costs of marketing activities consume approximately what portion of the consumers dollar?

One-half

Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

Price competition

Marketers who attempt to influence and change the various environmental forces have a(n) _______ response to these forces.

Proactive

According to the marketing concept, an organization should try to

Provide products that satisfy customers' needs and allow the organization to achieve its goals

_______ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders.

Public Relations

Supply chains for durable goods typically begin at ____ and end at ____.

Raw materials; the customer

A group of managers has been assigned the task of developing a new product. They are now in the process of assessing several ideas to determine whether they are consistent with the firm's overall objectives and resources. The managers are at what stage of the new-product development process?

Screening

Markup is measured either as a percentage of _____ or a percentage of _______.

Selling price; cost

Kraft purchased the Duracell battery company and now operates this division as a separate profit center within the firm. In this example, Duracell is a(n) _____ unit of Kraft.

Strategic Business

Running a big sale in order to generate enough cash flow to pay creditors is typical in a situation in which a firm's primary pricing objective is

Survival

_______ is a customers' subjective assessment of benefits relative to costs in determining the worth of a product.

Value

A product line is defined as

a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations

High Gliding Air Academy is developing its marketing mix for the coming year. Its managers know that they must first select ____ which may be the most important decision they make in the planning process.

a target market

A distributor of plumbing supplies purchased a desktop computer to aid in inventory control. This computer is an example of which type of business product?

accessory equipment

When Anheuser-Busch ran an advertisement campaign featuring the slogan, "know when to say when," it was using

advocacy advertising

The three major ways to modify a product include

aesthetic, quality, and functional changes

....

atmospheres

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

average total cost is at its lowest level

an advertising platform is the

basic issue or selling point that an advertiser wishes to include i an advertising campaign

______ competitors are the most significant to marketers because buyers see the different products of these firms as direct substitutes for each other.

brand

products are classified as being business or consumer products according to the

buyers intended use of the product

Pricing the basic product line low while pricing related items at a higher level is called

captive pricing

Chadwick's sends its customers booklets containing its product offerings and allows them to place orders on the telephone, through the mail, or online. Chadwick's is primarily a(n)

catalog marketer

If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, shell is using _______.

competition- based pricing, which considers costs to be less important than competitor's prices

When marketers define their target market, they simultaneously establish a set of

competitors

The verbal portion of an advertisement, include headlines, body, and signature, is called the

copy

The home depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. The Home Depot is differentiating through

customer services

an important goal of physical distribution is reducing the time it takes to complete

cycle time

What equation shows organizations the relationship between price and profit.

(Price x Quantity Sold) - Total costs= Profits

In general, Differenced between goods and services are determined by the

degree of tangibility

If a store has areas for mens apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it most likely a

department store

Quality modifications are changes that relate to a product's

dependability and durability

After the advertising budget is determined, the next step in creating an advertising campaign is

developing the media plan

the marketing channels for services are usually

direct from provider to customer

Del Monte markets ketchup for household use to super markets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del monte is using

dual distribution

After compiling a list of potential customers, a salesperson

evaluate whether each prospect is able, willing, and authorized to buy the product

By offering both credit and financing through its GMAC division, General Motors is trying to help consumers

expand current buying power at the expense of future buying power

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

heterogeneity

Competitors' prices along with the marketing variables they emphasize, are determining factors in

how important price will be to customers

The amount of money received through wages, rents, investments, pensions, and subsidies is called

income

Depending on the length of time it takes to adopt a new product, people can be divided into five major adopter categories: early adopters, early majority, late majority, laggards, and

innovators

The four major stages of a product life cycle include

introduction, growth, maturity, and decline

A target market

is a specific group of customers on whom an organization focuses its marketing efforts

Vertical channel integration

is made possible by purchasing the operations of a link in the channel

A major disadvantage of personal selling is that it

is very expensive per contact

Coca-Cola has expanded to Coke-Zero, Cherry Coke, And Caffeine-free Coke, to name a few. These are examples of

line extensions

The kinds of products being sold and the availably of public transportation are both factors that influence a retailers decision about

location

A group that has the willingness, ability, and authority to buy a product is a

market

When the right combination of circumstances occur at the right time to allow an organization to take action toward a target market, the firm faced with a

market opportunity

The percentage of a market which actually buys a specific product from a specific company is referred to as the product's

market share

While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may

mention objections the customer had not thought of.

Price is considered to be the variable in the marketing mix that is

most flexible

During the introduction stage of a successful product, profits are usually

negative and increasing

Rick is a new product manager for a large bio-chemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that _____ is risky as well.

not introducing new products

The four major competitive structures are

oligopolies, monopolies, monopolistic competition, and pure competition

Dylan is a sales person for Whole Foods. In his position, he is primarily responsible for seeking repeat sales. Dylan is most likely a(n)

order taker

the target audience for an advertising campaign is the

people toward whom the advertisements are directed

The fact the services cannot be inventoried and then sold at a later date is called.

perishability

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called

phase-out

The two major types of product advertising are

pioneer and competitive

The Forces of the marketing environment include

political, legal/regulatory, sociocultural, technological, economic, and competitive

Pro competitive laws are those designed to

preserve competition

Buyers who focus on purchasing products that signify prominence and status are

prestige-sensitive buyers

For most consumers, there is an assumed relationship between

price and quality

dividing the percentage change in quantity demanded by the percentage change in price gives the

price elasticity of demand

To determine the breakeven point in units, divide the fixed costs by

price minus variable costs

If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then $150 before reducing the price to $100, the firm's initial pricing strategy is known as

price skimming

If an organization sets prices to recover research and development expenses and establish a premium quality image for its product, it would be using a ____ pricing objective.

product quality

Which of the following is essentially an uncontrollable factor in developing a marketing mix

product safety regulations

In an attempt to attract customers, service marketers often promise great results and satisfaction to customers, but marketers should be careful not to

promise too much and cause expectations beyond what they can deliver

The element of the marketing mix used to increase awareness of a product or company is

promotion

assuming that inflation is low, high buying power characterizes the _____ stage of the business cycle.

prosperity

minerals, chemicals, timber, and agricultural products are considered

raw materials

the percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period of time is the definition of

reach

Convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchased effort

Direct selling, direct marketing, and vending machines are all examples of

retailing

When services companies change high-contact services into low-contact services, the

service becomes less personalized

A narrow product mix with a deep product line would most likely be carried by

specialty retailers

Off-price retailers and category killers are both

specialty retailers

A service is usually offered as part of a bundled package of services and one or more _____ services.

supplementary

Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.

sustainable competition

Channel decisions are important to marketers mostly because

they involve long-term commitments and affect customer accessibility

A product under nonprice competition would most likely not succeed in the market if

total revenue will increase

During his presentation to Mrs. French about high-end gourmet oven, Brian asks, "would you prefer black or stainless steel?" This is an example of a

trial close

In a simple economy of five producers and five consumers, there would be _____ transactions possible without an intermediary and ___ transactions possible with one intermediary.

twenty-five; ten

A retailer is an organization that purchases products for the purpose of reselling them to

ultimate consumers

Early in the commercialization phase, marketers must make decisions about

warranties, repairs,and replacement parts.

Marginal analysis involves examining

what happens to a firms costs and revenues when production is changed by one unit