Principles of marketing

discover where the company's product or brand is on these attributes in the minds of potential customers

A key to positioning a product or brand effectively is discovering the perceptions of its potential customers. In determining its positioning in the minds of customers, companies take four steps: (1) identify the important attributes for the product or brand class; (2) discover how target customers rate competing products or brands with respect to these attributes; (3) ___________; and (4) reposition the company's product or brand in the minds of potential customers.

Laundry detergent

Which of the following is the BEST example of a nondurable good?

Direct marketing refers to

a promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.

A supplier's attempt to stipulate to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell is referred to as __________.

a resale restriction

The challenges of packaging and labeling are often global. Two of the particular types of challenges facing global manufacturers are health and safety concerns and __________.

addressing ongoing environmental concerns

Dual distribution refers to

an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.

Gillette spent $200 million in advertising to introduce the Fusion razor to male shavers. Such expenditures are often made to stimulate primary demand, or desire for the product __________, rather than for a specific brand, when there are few competitors with the same product.

class

We heard about the segmentation approach used by Bayer Consumer Products. Which of the following is not a major consumer care segment for Bayer?

Answers: a. Analgesics b. Gastrointestinal c. Dermatological d. Cough and cold remedies Correct.:Actually, ALL of these are major consumer care segments for Bayer

Which of the following illustrates movement along the demand curve?

As the price is lowered, the quantity demanded increases, assuming all demand factors stay the same.

Five general criteria are often used to select target segments. They include: (1) the size of the market; (2) expected growth of the market; (3) competitive position of the firm with respect to the market; (4) cost of reaching the segment; and __________.

compatibility with the organization's objectives and resources

A dynamic pricing policy gives marketers __________ in setting the final price in light of demand, cost, and competitive factors.

considerable discretion

Reductions in delivery times in both the marketplace and the supply chain have earned firms such as Toyota and Xerox a reputation as "time-based competitors." For Toyota and Xerox, logistics

creates time and place utility for their customers.

The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who are leaders in social setting, and have slightly above average education are called __________ product adopters.

early adopters

A __________ product is a style of the times.

fashion

According to lecture, firms that want to develop supply chain management processes should

first be able to provide quality products, in a timely, cost effective manner

When you buy a used car from a CarMax dealership, you are offered the car at a "no haggle" price. You can buy it or not, but there is no negotiating the published price because of the seller's

fixed-price policy.

The Federal Trade Commission (FTC) considers a product "new" only

for a period of six months after it enters regular distribution.

The type of analysis that compares the differences between consumers' expectations about a service and their experience with it based on dimensions of service quality is referred to as

gap analysis.

Services can be classified according to whether they are delivered by people or equipment, whether they are for profit or nonprofit organizations, and whether they are __________.

government agencies

If Wendy's customers are buying an eating experience, which of the following rationales would make the most sense if you were to group the products Wendy's sells?

grouping by meal occasion

Geico ads that feature a talking pig, cavemen, a gecko, or a stack of money are using which type of advertising appeal?

humor

When a small retail chain hires an accountant to do its income taxes, the retail chain would have purchased a(n) __________.

industrial service

The purpose of pioneering institutional advertisements is to

inform people what a company is, what it can do, and where it is located.

The three degrees of distribution density are

intensive, exclusive, and selective.

The second stage in the hierarchy of effects is __________.

interest

Wal-Mart worked with P&G to move towards a "customer driven supply chain." In doing this, Wal-Mart's CFO became a _____________ for P&G.

key customer

Gatorade is MOST LIKELY in which stage of its product life cycle?

maturity

The reimbursement a retailer gives for extra in-store support or special featuring of a brand is referred to as a(n) __________.

merchandise allowance

Any intermediary between a manufacturer and end-user markets is referred to as a

middleman

In class, we discussed the Product Life Cycle (PLC) concept. In which stage of the PLC would we typically find a high cost per unit of production?

Introduction

"Standard Markup Pricing" involves adding a fixed percentage to the cost of all items in a specific product class. This approach to pricing is usually used to set:

The retail price

Vending machines are an example of __________.

nonstore retailing

it may be easier to talk about implementing SCM than it is to align it with our Marketing Strategy. One "real life" problem we find is that:

our supply chain team may focus on short-term operational results, instead of on satisfying customers wants.

Cessna is considered the volume leader in the executive-jet market. It has been described as "almost totally vertically integrated." This quote means that Cessna

owns several of the entities that would make up the traditional marketing channel.

In a(n) __________ test, the test ad is placed in a collection with several other ads and stores, and consumers are asked to read through the collection. Afterward, subjects are asked for their impressions of the ads on several evaluative scales.

portfolio test

The practice of charging a very low price for a product with the intent of driving competitors out of business is referred to as

predatory pricing.

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

prestige pricing

The percentage change in quantity demanded relative to the percentage change in price is referred to as

price elasticity of demand

When the National Cattlemen's Beef Association developed the "Beef, It's What's for Dinner" advertising campaign, it was trying to stimulate __________ demand.

primary

A marketing strategy that alters a product's characteristic, such as its quality, performance, or appearance, to increase its value and sales to customers is referred to as __________.

product modification

The activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise are referred to as the __________.

retailing mix

Blogs and wikis differ in that a blog is a diary that shows a __________, while a wiki shows the end result as a __________.

sequential journey; single entry

Prestige pricing refers to

setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Because consumers often use price as an indicator of product quality, what decision factor becomes important in this situation?

store image

Development refers to the stage of the new-product process

that turns an idea on paper into a prototype.

In classifying social media, self-disclosure is

the degree of acoustic, visual, and personal contact between two communication partners.

Product-line pricing involves determining: (1) the lowest-priced product and price; (2) __________; and (3) the price differentials for all other products in the line

the highest-priced product and price

In a feedback loop, a response refers to

the impact the message had on the receiver's knowledge, attitude, or behaviors during the communications process.

The "risk" in a transactional function refers to

the need to stock merchandise in anticipation of sales.

If the cash discount terms for a $500 purchase are 4/10 net 30, the number $500 refers to

the original price owed on the merchandise.

Services can be classified by

their method of delivery

As noted in class, the point of the original GEICO gecko ad was:

to remind customers how to pronounce the company name (GEICO, not "gecko").

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives __________ discounts.

trade

All of the following actions occur during the business analysis stage of the new-product process EXCEPT:

turning the idea on paper into a prototype

Vertical conflict refers to conflict that occurs between

two different levels in a marketing channel.

The price the seller quotes that includes all transportation costs is referred to as __________.

uniform delivered pricing

A website whose content is created and edited by the ongoing collaboration of end users is known as a(n)

wiki

Manufacturer's agents refer to agents who

work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory.

SCM requires us to put information systems and metrics in place that focus on performance across the entire supply chain. Why is this important?

To help assure that all of the units in the supply chain are working well together (and not attempting to maximize their individual performance).

We used Starbucks as an example of Managing Products and Brands. Based on what we heard, what was the goal of the original Starbucks company?

To sell high-quality coffee beans for people to use in making coffee at home

Based on lecture, which of the following would be a good example of an ancillary service seen in B2B marketing?

Favorable credit terms

Some retailers now allow consumers to respond to their text messages announcing a sale for a specified time period. Consumers must then visit the site to purchase the sale items. Which of the following retailing websites offer these limited time "flash sales?"

GIlt

In which stage of the PLC would we typically find the firm focused on an overall strategy of Market Penetration?

Growth

which of the following is the best representation of a conventional marketing channel?

Individual, independent channel members focusing on their own needs

According to lecture, Pioneering Advertising is most likely used to:

Inform

Pioneering Advertising is most likely used to:

Inform

hich type of selling is the greatest number of people engage in?

Order taking

In class, we considered buying a ring at Tiffany's. When asked, students indicated that a Tiffany ring probably cost tens of thousands of dollars or more. When we checked, we found that you can buy several Tiffany rings for less than $200. While Tiffany is certainly successful, this example suggests they may have:

Overpositioned their brand (people may not think of Tiffany for lower priced rings)

we noted that in order to set price for our product, it would be helpful to understand the Profit Equation. What IS that equation?

Profit = Total Revenue - Total Cost

The major difference between an off-price retailer and a discount store is that off-price retailers purchase merchandise from manufacturers __________ and discount stores buy from wholesalers __________.

. at below wholesale prices; at full price but take a less of a markup

Industry research shows that outside order getters, or field service representatives spend 41 percent of their time selling, and another __________ is devoted to customer service calls.

16%

We considered how we might classify consumer goods based on the consumer's interest in the product. Based on this discussion, which of the following would be a convenience product for most consumers?

A candy bar

Which of the following statements regarding quantity discounts is MOST ACCURATE?

Cumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do noncumulative quantity discounts.

Imagine that we market a board game, such as Monopoly. We find that video games have become a preferred form of entertainment for young consumers. In which stage of the PLC would we be?

Decline

As noted in class, GEICO originally used a(n) ______________ channel of marketing.

Direct

In class we used Starbucks as an example of Managing Products and Brands. Based on what we heard, major change did the company make to its logo in 2011 for its 40th anniversary?

Dropped the words "Starbucks Coffee" from the logo.

we learned about the 5 phases of social media measurement. Which phase is related to clicks,retweets, and comments?

Engagement

The concept of the diffusion of innovation shows how a product "diffuses" or spreads through the population over time. The consumer population is divided into five categories of product adopters based on when they adopt (i.e., first buy) a new product. Each product adopter category has a unique profile. Consumers who have a fear of debt and depend on neighbors and friends as their information sources are called __________ product adopters.

Laggards

In which stage of the PLC would we find slow to no growth in industry sales of our product?

Maturity

In which stage of the PLC would we have the lowest prices and the most intensive distribution of our product?

Maturity

we heard about different types of social media. Based on class, what type of social medium is Flickr?

Media Sharing

Product mix

Newman's Own is a company that gives all of its profits to charities. The company produces popcorn, salsa, pasta sauce, and salad dressings under the Newman's Own brand name. These product lines comprise the company's

From what we heard in class, which form of media would you choose if you needed to get out ads in a flexible and timely manner to a local market?

Newspapers

Many forward-looking companies have discovered that their own organization does not generate enough useful new-product ideas. This has caused them to find new product ideas by developing strategic relationships with outside individuals and organizations. This practice is referred to as __________.

Open innovation

__________ occurs when shoppers go to a store, obtain the store price of a product, scan its SKU or bar code with a smartphone camera, and go online to compare prices with those of selected competitors.

Showrooming

Selecting an approximate price level would occur during __________ of the price-setting process.

Step 4

we considered the example of tuition at KSU. We looked at the $85 College of Business Undergraduate Program Fee. What aspect of "price" did this represent?

The $85 represents an "add on" to the published tuition in the form of an "extra fee."

generating awareness.

The emphasis of a marketing strategy for a continuous innovation concentrates on

. The Gap

We looked at the strategy that the Gap, Inc. uses to satisfy consumers' needs, wants, and desires. Which of their brands target consumers who are interested in classic "American" style?

dynamically continuous innovation

When a new product comes out that is an improvement on an existing product and that requires some minor behavior changes or some new learning by the consumer, we would classify it as a:

we heard that airlines (often) charge MORE for people who book later (often these are business travelers, who are less sensitive to price). What approach to pricing is this?

Yield Management Pricing

The term branding refers to __________.

an organization's use of a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors

A brand name refers to __________.

any word, device (design, sound, shape or color), or combination of these used to distinguish a seller's products or services

An implied warranty

assigns responsibility for product deficiencies to the manufacturer

With respect to distribution, shopping products are available

at a large number of selective outlets.

According to the textbook, Revlon cosmetics uses __________ pricing.

at-market

The practice of exchanging products and services for other products and services rather than for money is referred to as __________.

barter

we heard about a commercial in which an infant pounding on a computer kept clicking on a "buy" element of a web site. The POINT of this commerical was that marketers must:

be "smart" about their data analytics.

ExxonMobil targets consumers that fill up their gas tanks more than once a week with its Chase Visa fuel card. In this example, ExxonMobil is using which segmentation variable?

behavioral

Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's products or services is referred to as a __________.

brand name