Marketing test
Explain the difference between a product mixs breadth and a product lines depth
A firm's product mix breadth represents a count of the number of product lines offered by The Firm Product line depth equals the number of products within a product line
Determine the various types of branding strategies used by firms
Brand Ownership § Manufacturer Brands: also known as national brands, are owned and managed by the manufacturer. Manufacturer develops merchandise, produces it, and invests in marketing. By owning brand, manufacturers retain control over marketing strategy. § Retailer/Store Brands: also called private-label brands, are products developed by retailers. Either develop it themselves or contract the development. ○ Naming Brands and Product Lines § GM has multiple brands b/c each caters to a diff market § Family Brands: firm's own corporate name used to brand its product line and products. Individual brands benefit from overall brand awareness associated with family name. Individual Brands: use of individual brand names for each of a firm's products.
Explain the various components of brand equity
Brand awareness Perceived value Brand associations Brand loyalty
Identify the advantages that Brands provide firms and customers
Brands facilitate purchases, establish loyalties, protect from competition and price competition. Brands are assets and effect market value
Bill is a Yacht broker in the southeastern United States for years he has had difficulty selling large Yachts locally because there word few places to dock these boats yachts and spaces to duck them are an example of
Complementary
___________ products are products his demands are positively related and as such they rise or fall together
Complementary
____________ measures customer sensitivity to price changes
Cross-price elasticity of demand
Describe the different groups of adapters articulated by the diffusion of innovation Theory
Early Adopters-13.5% of market Early Majority-34% of market Late Majority- 34% of market Laggards-16% of market
Who who is your favorite marketing 3310 instructor
Gary Payne
Describe the various stages involved in developing a new product or service
Idea Generation-Development if viable new product ideas. Concept Testing- Testing the new product idea among a set of potential customers Product Development-Development of prototype and/or the product. Market Testing- testing the actual products in a few test markets. Product Launch- full-scale commercialization of the product. Evaluation of Results-Analysis of the performance of the new product and making appropriate modifications.
Describe how the marketing of services differs from the marketing of products
Intangible Heterogeneous Perishable Inseparable
Explain the product life cycle
Introduction Growth Maturity Decline
Discuss the four gaps in the service Gap model
Knowledge Standards Delivery Communication
Barry customizes Harley Davidson motorcycles no two cycles are alike he notices that very few customers even ask the price of his motorcycles before they decide to purchase them demand for his motorcycles is probably
Pricce Elastic
Is a 1% decrease in price results in less than a 1% increase in the quantity demanded demand is
Price Inelasticity
List the four pricing orientations
Profit Oriantation Target Profit Pricing Maximizing Profits Target Return Pricing
For which of the following is demanded likely to be most sensitive to price increases
a specific brand of soft drinks
There are many options available to customers when it comes to breakfast cereal so if Kellogg's significantly increases the price of rice krispies customers are more apt to buy alternate cereals Instead This illustrates which concept?
cross-price elasticity
If the price for a product increases the demand for the complementary product will
decrese
The __________ is the ratio of the percentage change in quantity demanded to the percentage change in price
demand curve
What situation is occurring if a 1% decrease in price results in more than a 1% increase in quantity demanded?
demand for Price Elastic
Which of the following is the most logical example of complementary products A)a university and a corporation B) Hot dogs and hot dog buns C) Honda Cars and Toyota cars D)Hotdogs and Hamburgers E) VCRs and DVD players
hot dogs and hotdog buns
Sales of national brands of orange juice tend to increase when the economy is doing well while sales of generic orange juice increases when the economy is not doing well this is an example of how ___________ impacts demand for products
income effect
Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by
increasing the income effect
A study found that among addicted smokers a 10% increase in the price of cigarettes resulted in a 2% decrease in quantity demanded for these customers cigarettes have in ____________ price elasticity demand
inelastic
The observation that customers are generally more sensitive to price increases then the price decreases suggest that
it is easier to lose customers with a price increase than to gain customers with a price decrease
Cross price elasticity is the
percentage change in quantity demanded of product A compared to the percentage change in price of product B.
For which of the following is demanded likely to be least sensitive to price increases?
prescription drugs
If a 1% price decrease results in a 1.1% increase in demand price elasticity is described as what
price elastic
If a 10% price increase results in a 2% reduction in demand price elasticity of demand is described as what
price inelastic
Brad always buys and uses Nike brand golf balls if he finds it Titleist tour Callaway ball in the rough he gives it away brand loyal golfers like Brad allowed Nike to charge a higher price and not lose when he sails by building a strong brand Nike has effectively
reduced the price elasticity of demand for its products
Explain the zone of tolerance
the area between customers expectations regarding their desired service and the minimum level of acceptable service- that is the difference between what the costomer really wants and what she will accept before going elsewhere.
Rudy owns hallman's Auto Repair Service he has observed over the years that customers keep their high mileage cars longer than when the economy is doing poorly creating demand for his maintenance and repair service Rudy has observed the impact of ___________ on demand for his services
the income effect
Explain price elasticity
the market for a product is price elastic when the price elasticity is less the -1 when a 1% decrease in price produces more than a 1 percent increase in the quantity sold
The more substitutes that exist in the market
the more sensitive consumers will e to changes in the price of a perticular product
Describe the pricing strategies used when introducing a new product
they use market penetration pricing which is where the initial price is low for the introduction of the new product or service. the objective is to build sales, market shares, and profits quickly.
Distinguish between brand extension and line extension
○ Brand Extension: the use of the same brand name for new products being introduced to the same or new markets. ○ Line Extension: The use of the same brand name within the same product line and represents an increase in a product line's depth.