BUS140-Final
Which of the following accurately represents the three characteristics of advertising appeals?
To be meaningful, to be believable, and to be distinctive
In place of traditional media, marketers are using __________________________ to engage smaller customer segments with more personalized, interactive content.
a broad selection of more specialized and highly targeted media
The General Agreement on Tariffs and Trade (GATT) was ____________________.
designed to promote world trade by reducing tariffs and other international trade barriers
The biggest involvement in a foreign market comes through ________ for the development of foreign-based assembly or manufacturing facilities.
direct investment
Groups of __________________ products consist of materials and parts, capital items, and supplies and services.
industrial
After creating a company's mission and objectives, the executive team must then plan ____________ by keeping in mind the best fit for its strengths, weaknesses, and opportunities in the environment.
its business portfolio
Many consumers today rent DVDs from a vending machine called Redbox, which can be found in retail stores and other locations. Redbox is type of ________ marketing.
kiosk
A blog is a(n) ______.
online forum
One challenge of social media marketing is _____________________
social networks are largely user-controlled
Which of the following statements about blogs is correct?
Blogs can be difficult for the company to control.
Advertising decisions involve multiple steps culminating in the measurement of the sales effects of advertising or brand content. Which of the following considers return on investment?
Evaluation
If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Of the following, which is NOT one of the common pricing objectives?
Grabbing international market share
Which of the following is true regarding the price-demand relationship?
If demand is elastic, sellers will consider lowering their prices.
________ economies are major exporters of manufactured goods, services, and investment funds.
Industrial
____________ is perhaps the toughest public policy issue now confronting the direct marketing industry.
Invasion of privacy
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ?
Line extension
A marketing dashboard is used to do which of the following?
Monitor strategic marketing performance
Which of the following statements is TRUE about public relations and a company's overall integrated marketing communications efforts?
PR should be blended smoothly with promotion activities.
Which of the following uses promotional tools such as presentations, trade shows, and incentive programs to engage customers, make sales, and build customer relationships?
Personal selling
___________________ advertising is the type of advertising objective used when attempting to build brand preference and prompting customers to purchase now.
Persuasive
__________ products give high immediate satisfaction but might hurt consumers in the long run.
Pleasing
In the whole-channel concept for international marketing, which of the following is NOT a global value delivery network?
Price escalation
________ is when a company adds the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its product's factory price.
Price escalation
Kroger, headquartered in Cincinnati, Ohio, is one of the nation's largest grocery chains. It owns several brands sold in its stores, including Private Selection, Heritage Farm, and Simple. These brands represent which type of brand sponsorship?
Private brands
Which of the following statements is correct regarding sellers and their use of direct and digital marketing?
Sellers have opportunities to engage in real-time marketing.
Before making a decision to operate in other countries, what must a company understand?
The international marketing environment
When a company considers international marketing, which of the following is a fundamental issue within the global environment that it must understand thoroughly from the outset?
The international trade system
Which of the following statements about public relations is correct?
The lines between advertising and public relations are becoming more blurred.
Which of the following correctly defines a product?
A product is anything offered to a market that might satisfy a need or want.
_____________________ direct(s) its marketing activities (primarily advertising, consumer promotion, and direct and digital media) toward final consumers to induce them to buy the product.
A pull strategy
In which of the following does a producer direct marketing activities (primarily personal selling and trade promotion) toward channel members?
A push strategy
Why are U.S.-based international companies concerned when the U.S. dollar is strong compared to other currencies?
A strong dollar makes exports from other countries more attractive to the U.S. consumers, causing increased price competition for U.S.-based international companies.
Breakeven Formula
Break-even volume=fixed costs / price−unit variable cost Break-even analysis determines the unit volume and dollar sales needed to be profitable given a particular price and cost structure. At the break-even point, total revenue equals total costs and profit is zero. Above this point, the company will make a profit; below it, the company will lose money. Contribution margin=total sales−total variable costs/total sales
How do the individual components of a SWOT analysis work together to determine the status of a company?
By ascertaining a company's strengths, relating them to opportunities, minimizing weaknesses, and identifying threats to growth and development
Which type of consumer products are frequently purchased with little planning, little comparison or shopping effort, and low customer involvement?
Convenience products
Nibbles Pet Food Corporation is in the process of developing its new market strategy. The marketing team has already established the company's niche productlong dash—premium, organic dog and cat foodlong dash—and contracted to sell it in several high-end pet stores. The team has also determined the optimum price to create value for customers and still make a profit. What does the marketing team need to do now?
Create a promotion strategy to increase customer awareness
What are the two major elements in developing advertising strategy?
Creating advertising messages and selecting advertising media
Criticism has been leveled at marketing for negative impact on other businesses. Of the following, which does NOT fall within those criticisms?
Creating false wants and too much materialism
_____________________ is the value of customer relationships that a brand creates.
Customer equity
Which of the following types of marketing calls for building long-run consumer engagement, loyalty, and relationships?
Customer value marketing
Which of the following is at the center of marketing strategy and programs?
Customer engagement, value, and relationships
Which of the following refers to setting prices based on buyers' perception of value rather than on the seller's cost?
Customer value-based pricing
A form of television marketing which persuasively describes a product and give customers a toll-free number or an online site for ordering is known as _________________.
DRTV marketing
________ includes practices such as falsely advertising "factory" or "wholesale" prices or a large price reduction from a phony high retail list price.
Deceptive pricing
Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations function?
Development
Which form of marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships?
Direct and digital marketing
_______________________ uses tools that engage directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
Direct and digital marketing
Which of the following is included in the American Marketing Association's (AMA) Code of Ethics and stresses consciously avoiding harmful actions or omissions by embodying high ethical standards and adhering to all applicable laws and regulations in the choices we make?
Do no harm
Which of the following means striving for building relationships and enhancing consumer confidence in the integrity of marketing by affirming these core values: honesty, responsibility, fairness, respect, transparency, and citizenship?
Embrace ethical values
____________________ is perhaps the biggest advantage of social media.
Engagement and social sharing capabilities
Which of the following describes an organized movement of concerned citizens, businesses, and government agencies designed to protect and improve people's current and future living environment?
Environmentalism
As an economic community, which of the following contains more than half a billion consumers, accounts for almost 20 percent of the world's imports and exports, and is one of the world's largest single markets?
European Union
A company's value chain is only as strong as its weakest link. What should a company do to properly gauge the strength of its links and continually improve?
Examine how well each group performs its work of adding customer value.
______________________ is the simplest way to enter a foreign market.
Exporting
Companies manage their international marketing activities in at least three different ways. Which of the following is the last step in their organizational activities?
Global organization
Marketers that wish to enter an international environment have to consider the political-legal environment. Of the following, which is NOT among the factors marketers should consider within the political-legal environment?
Investment opportunities
Which of the following is a valid concern when it comes to the four Ps concept?
It may omit or underemphasize certain important activities.
Marketers operating in international environments must study and understand each country's economy. Which of the following are the primary economic factors that reflect a country's attractiveness as a market?
Its industrial structure and income distribution
In determining product quality, what are the two dimensions of quality marketers must decide upon?
Level and consistency
When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and SpongeBob SquarePants on breakfast cereals, which form of brand sponsorship is being used?
Licensing
Denim Blue Jean Corporation is a growing company located in Washington State, but it is beginning to develop a presence in the surrounding states as well. It sells only one productlong dash—blue jeanslong dash—but it has 12 different lines of jeans that cater to men, women, children, babies, toddlers, and teens. Which type of marketing department organization would BEST suit Denim Blue Jean Corporation?
Market management organization
Which of the following accurately describes a company's efforts to engage customers, persuasively communicate customer value, and build customer relationships?
Marketing mix
Which of the statements is TRUE regarding media and message decisions?
Media and message decisions should be closely coordinated.
_________________________ eliminated trade barriers and investment restrictions among three large global countries while establishing a single market of 487 million people who produce and consume over $23 trillion of goods and services annually.
NAFTA
Which of the following is correct regarding the forms of direct and digital marketing?
New digital and the more traditional forms of direct marketing must be blended and integrated
_________ include biases against a company's bids, restrictive product standards, or excessive host-country regulations or enforcement.
Nontariff trade barriers
Which of the following represent the newer tools of digital direct marketing?
Online marketing, social media marketing, and mobile marketing
Amazon's Alexa speaks Hinglishlong dash—a blend of Hindi and Englishlong dash—with an unmistakable Indian accent. She knows Independence Day is August 15, not July 4, and wishes listeners "Happy Diwali and a Prosperous New Year!" What is this an example of?
Product adaptation
___________________is used to build and maintain national or local community relationships and is one of the functions of public relations.
Public affairs
__________________ are limits countries can set on the amount of foreign imports that they will accept in certain product categories.
Quotas
Which advertising objective is best suited to maintaining customer relationships and for more mature products?
Reminder
________ products have low immediate appeal but might benefit consumers in the long runlong dash—for instance, bicycle helmets or some insurance products.
Salutary
A company's marketing should support the five sustainable marketing principles. Of the following, which is NOT among those principles?
Salutary marketing
Which of the following is described as "always on" and is a large component of the digital advertising mix?
Search advertising
Which of the following is NOT a step in the strategic planning process?
Set revenue and financial goals
In which of the following does top management tell its marketing people, "Take the product as is and find customers for it"?
Straight product extension
Sustainable marketing should be guided by five sustainable marketing principles. Of the following, which is NOT one of those principles?
Strategic marketing
Which of the following is NOT part of an overall SWOT analysis evaluation of a company?
Strategy
Which of the following is a type of marketing that calls for meeting the present needs of consumers and businesses while preserving or enhancing the ability of future generations to meet their needs?
Sustainable marketing
Which of the following states that managers must look beyond what is legal and allowable and develop standards based on personal integrity, corporate conscience, and long-term consumer welfare?
The sustainable marketing concept
Why is marketing return on investment (ROI) so difficult to measure?
There is no consistent definition.
What is the goal of advertising?
To help move consumers through the buying process
What is the purpose of the marketing mix as part of the overall marketing strategy?
To produce a response that influences a demand for the product from the customers the company is targeting
Which of the following statements about service marketing is correct?
Training current employees better and hiring new ones with more skills can increase service productivity.
Which of the following statements regarding managing service quality is correct?
Unlike product quality, service quality will always vary.
Which of the following replaced GATT in 1995, imposes international trade sanctions, and mediates global trade disputes?
WTO
Which of the following is a form of traditional direct marketing?
Which of the following is correct regarding the forms of direct and digital marketing?
What event or circumstance has made mobile marketing a must for most brands?
Widespread adoption of mobile devices
Roshika has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as ________.
an indicator of quality
Through sustainable marketing, both businesses and consumers ___________________.
are both called to more responsible actions
According to the sustainable marketing concept, a company's marketing objectives should support the ___________________________.
best long-run performance of the marketing system
The primary purpose of _________ websites is to do more than just sell products or move them closer to a direct purchase.
brand community
In the whole-channel view of distribution, the first link, ________, move(s) company products from points of production to the borders of countries within which they are sold.
channels between nations
In the whole-channel view of distribution, the second link, _________, moves products from their market entry points to the final consumers.
channels within nations
According to the principle of ________ marketing, the company should put most of its resources into customer value-building marketing investments
customer value
Exaggerating package contents through subtle design, using misleading labeling, or describing size in misleading terms is known as ____________________.
deceptive packaging
Practices such as misrepresenting the product's features or performance or luring customers to the store for a bargain that is out of stock are considered ____________________.
deceptive promotion
When a company starts the strategic planning process at the corporate level, it begins by _____________________________.
defining its overall purpose and mission
The goal of integrated marketing communications is to __________________________________.
deliver clear, consistent, and compelling messages about the organization and its brands
The purpose of a tariff is to _______________________.
force favorable trade behaviors
Many companies get involved in several international markets and ventures. They can be __________, with country managers who are responsible for salespeople, sales branches, distributors, and licensees in their respective countries.
geographical organizations
When a company begins doing business internationally, it generally starts with ____________________, working through independent international marketing intermediaries.
indirect exporting
FancyFace, a cosmetics firm located in the United States, markets its products in Asian and European countries through independent distributors. In this case, FancyFace has entered international markets through ________.
indirect exporting
The goal of a push strategy is to _____________________________.
induce channel members to carry and promote the product
The principle of ________ marketing requires that a company continuously seek real product and marketing improvements.
innovative
Social media are ideal for participating in customer conversations and listening to customer feedback because they are _____________.
interactive
University Boutiques promotes its brand in new international markets by providing rights to local boutiques to use its patented designs and brand name. In this case, University Boutiques' market-entering strategy is referred to as ________.
licensing
When consumers respond in a similar way to a given set of marketing efforts, they can be referred to as a _________.
market segment
Geico's website is designed to quickly turn an inquiry into a sale. Geico has designed a(n) ______ website.
marketing
Which of the following is used to engage customers anywhere, anytime during the buying and relationship-building processes?
mobile marketing
nstagram ad content creates high levels of consumer engagement compared with other social media. For example, whereas as closest competitor Snapchat's disappearing content makes brand-consumer connections fleeting, Instagram's format lets consumers scroll through, linger over, and share content on their own time terms. Beyond Snapchat comparisons, one recent study revealed that brands get as much as 30 times more engagement on Instagram than on Twitter and three times more engagement than on Facebook. Beyond its ability to engage consumers with impactful brand content, Instagram is now setting its sights on the next step of the customer journey—purchase. Brands can now create storefronts on Instagram, where users can click through to a company's web or mobile site to place orders. Instagram is even working on ways to accept payments and place orders without having to leave the network.
Websites, online advertising, email, online video, and blogs are all forms of ______.
online marketing
Consumers may receive an e-mail, supposedly from their bank or credit card company, saying that their account's security has been compromised. The sender asks consumers to log on to a provided Web address and confirm their account and other personal information and then steals this private information. This is a fraudulent practice called ______.
phishing
The illegal practice of ______________________ is selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business.
predatory pricing
When Apple introduced its iPhone X, it priced the new product at nearly $1,000, considerably higher than competing smart phones. Apple was pursuing a ___________________ new product pricing strategy.
premium pricing
The Robinson-Patman Act seeks to ensure that sellers offer the same price terms to customers at a given level of trade to prevent ______________________.
price discrimination
Bath & Body Works uses _____________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers).
product bundle
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models.
product line
When a retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store, it is practicing ___________________ pricing.
promotional
Press releases, sponsorships, events, and web pages are promotional tools used in _____________.
public relations
The difference between the marketing concept and the sustainable marketing concept is that the marketing concept ___________________________.
recognizes that companies thrive by fulfilling the day-to-day needs of customers
When a company lengthens a product line by adding more items beyond its current range, it is ________.
stretching the line
Companies embracing environmental sustainability policies develop strategies to implement them. The strategies include which of the following two components?
sustain the environment and produce profits for the company
To create value for customers, marketers must improve the performance of the ______________, which includes partnering with suppliers, distributors, and customers.
value delivery network
Service _______ means that the quality of services depends on who provides them as well as when, where, and how they are provided.
variability
The digital version of word-of-mouth marketing that involves creating videos, ads, and other marketing content that is so infectious that customers will seek them out or pass them along to their friends is called _______.
viral marketing
UPS uses _________________, which charges different prices for shipping depending on an item's destination. The more distant the city where the package is being shipped, the higher the price UPS charges.
zone pricing
________ refers to striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process as well as avoiding deception in product design, pricing, communication, and delivery or distribution.
"Foster trust in the marketing system"
Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand equity?
Co-branding
________ marketing means that the company should view and organize its marketing activities from the consumer's point of view.
Consumer-oriented
________ involves sending an offer, announcement, reminder, or other item to a person at a particular address.
Direct-mail marketing
Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is Sadie's using?
Good-value pricing
_________________marketing means that the company should define its mission in broad social terms rather than narrow product terms.
Sense-of-mission
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
Because of deceptive acts or practices by companies, Congress has enacted legislation designed to protect consumers. Which of the following was enacted to protect consumers against deceptive acts or practices?
Wheeler-Lea Act of 1938
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing.
captive-product
Companies like Amazon and Expedia.com that sell products and services directly to final buyers over the Internet are known as _______.
e-tailers
The benefits of direct and digital marketing for buyers are that they are _________.
easy, convenient, and private
______ means sending email pitches only to customers who "opt in."
permission-based email marketing
When sellers set prices in conjunction or collaboration with one another, this illegal practice is known as _______________.
price-fixing
Ikea
KEA offers a classic model for how to do business in a global environment. Far more than just a big furniture merchant, IKEA has achieved global success by engaging consumers of all nationalities and cultures. From Beijing to Moscow to Middletown, Ohio, customers are drawn to the IKEA lifestyle, one built around trendy but simple and practical furniture at affordable prices. IKEA's mission worldwide is to "create a better everyday life for the many people. . . by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them." IKEA succeeds globally by striking just the right balance between global standardization and local market adaptation. No matter where in the world you shop at IKEA, you'll find huge stores, the familiar blue-and-yellow brand logo and signage, large selections of contemporary Scandinavian-design furnishings, and affordable prices. At the same time, IKEA carefully adapts its merchandise assortments, store operations, and marketing to cater to the unique needs of customers in different global markets characterized by vastly different means, languages, and cultures.
Nailit Cosmetics is advertising its newest line of nail polishes, made from a nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for Nailit's line of polishes?
The desire to have beautiful nails
Adding a new product line to an existing portfolio means that the line has __________________.
increased product mix width
A service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as _________________________.
internal marketing
The three functions of __________ include identifying, describing, and promoting the product.
labeling
What potential risk do marketers incur by using richer but more fragmented media and promotional mixes?
A communications hodgepodge for consumers
Brand Logo Makeovers
Companies have always taken great care to craft simple, easily recognized logos that quickly identify their brands and trigger positive consumer associations. However, in today's digital world, brand logos are being asked to do much more. A logo is no longer just a static symbol placed on a printed page, package, TV ad, billboard, or store display. Instead, todays logos must also meet the demands of an ever-more-diverse set of digital devices and media. A brand logo that looks great and communicates well on a package or in a magazine ad might fail miserably in a social media setting on a smartphone screen. Such examples highlight the powerful connections people have to the visual representations of their brands. When logo changes are required—as they most certainly will be at some point—the best course is to alert customers to the upcoming changes and to explain why they are needed. Google did that in a widely distributed video showing the evolution of its logo and the reasons behind the most recent redesign.
Which of the following statements regarding the important decisions in the development and marketing of individual products is correct?
Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design.
Which of the following is NOT one of the marketing management functions?
Promoting
The goal of a market development growth strategy is to do which of the following?
Identify and develop new markets for current products of a company's market
In analyzing a company's current business portfolio, what is management's first step?
Identify strategic business units
When, if ever, is price discrimination allowed?
If the seller can prove that its costs are different when selling to different retailers, then it is legal.
Which of the following statements regarding packaging is correct?
Innovative packaging can give a company an advantage over competitors and boost sales.
Just Don't Call it Advertising
Instead, the lines are rapidly blurring between traditional advertising and new digital content. To be relevant, today's brand messages must be social, mobile, interactively engaging, and multi-platformed. Says one industry insider: "Today's media landscape keeps getting more diverse—it's broadcast, cable, and streaming; it's online, tablet, and smartphone; it's video, rich media, social media, branded content, banners, apps, in-app advertising, and interactive technology products." Today's shifting and sometimes chaotic marketing communications environment calls for more than just creating and placing ads in well-defined and controlled media spaces. Rather, today's marketing communicators must be marketing content strategists, creators, connectors, and catalysts who manage brand conversations with and among customers and help those conversations catch fire across a fluid mix of channels.
A value chain consists of which of the following?
Internal departments and other companies that carry out value-creating activities
When Coca-Cola saw the growth of the bottled-water category, it launched DASANIÒ, its brand of bottled water. Which brand development strategy did Coca-Cola use in launching DASANI?
New brand
Sanchez Hispanic Foods and Seasonings has started to grow larger than the Sanchez family could ever have imagined. The company is having a hard time keeping track of all of the business' marketing activities. They know that they are going to need help to keep the business growing and are looking for solutions. Which of the following potential hires is likely the best decision for the Sanchez family?
Noah Lopez, a marketing specialist and expert who would be hired as the Sanchez family's new chief marketing officer
________________ is the service characteristic to which marketers need to pay close attention when there are fluctuations in demand.
Perishability
Of the following, which is true about pricing?
Price competition is a core element of our free-market economy.
Snickers
Snickers "You're not you when you're hungry" campaign's numerous digital elements are designed to engage customers and trigger consumer-generated content. Prior to the campaign, Snickers was losing market share. However, not long after Betty White made her Super Bowl debut, Snickers surpassed Mars's own M&Ms to become the planet's best-selling candy, a position it still holds today. With an expanded lineup that now includes Snickers Almond, Snickers Peanut Butter Squared, Snickers Bites, and Snickers Ice Cream bars, the $3.5 billion Snickers brand now contributes more than 10 percent of giant Mars, Inc.'s total annual revenues. Thanks in large part to the innovative "You're not you when you're hungry" integrated marketing communications campaign, the brand's long-standing claim holds truer than ever, for both the company and its customers: "Snickers satisfies.
AirBnB's Mission
So in 2014, Airbnb launched a new company mission: To help create a world where you can belong anywhere, and where people can live a place instead of just travelling to it. The new mission inspired a new brand tagline—"Belong Anywhere"—and a new brand symbol, the bélo. Carefully conceived to contain the "A" in Airbnb, a heart, and a location pin, Airbnb casts the bélo as "the universal symbol of belonging." Airbnb's "Belong Anywhere" mission is more than just a plaque on the wall at corporate headquarters or an inspirational statement on the About page of its website. Instead, the mission drives everything the company does, from its travel offerings to its marketing campaigns. Airbnb sees itself not just as a rooms provider but as a curator of unique and authentic "belonging" experiences
Unilever
So in late 2010 Unilever launched its Sustainable Living Plan—an aggressive long-term plan that takes capitalism to the next level. Under the plan, the company set out to "create a better future every day for people around the world: the people who work for us, those we do business with, the billions of people who use our products, and future generations whose quality of life depends on the way we protect the environment today." According to Polman, Unilever's long-run commercial success depends on how well it manages the social and environmental impact of its actions. Unilever is making excellent progress on its overall mission of "making sustainable living commonplace" and on its 79 aggressive Sustainable Living Plan goals. The company has already achieved 16 specific targets, is right on pace with 56 more, and is making good progress on the other seven. And despite volatility in its global markets, Unilever's profits continue to grow. In the past two years alone, Unilever's revenues have increased 22 percent while profits have shot up a whopping 48 percent. Even more telling, Unilever's 26 Sustainable Living Brands grew 46 percent faster than the rest of its business, and 22 are among the company's top 40 brands.
Which of the following actions helps a company find the game plan for long-run survival and growth that makes the most sense given its specific situation, opportunities, objectives, and resources?
Strategic planning
A variation of break-even pricing is ____________________, which uses the concept of a break-even chart that shows the total cost and total revenue expected at different sales volume levels.
Target return pricing
Using the BCG growth-share matrix as a guide, Masumura Technologies identified question marks in its business portfolio but is currently maintaining its market share. At a recent meeting with the company's senior management team, the CEO of Masumura and her team members decided to allocate all of the company's profits toward the growth and expansion of these question marks, in order to cause the question marks to become stars. What is likely to happen to this company?
The growth of the company will be unpredictable because there is no guarantee that a question mark will become a star.
Tesla
Then along comes Tesla, another startup with lofty ambitions. But rather than tackling the likes of Toyota, Ford, Honda, and GM head-on, Tesla began by sneaking in the back door. While the auto industry majors were still peddling mostly traditional internal combustion vehicles, Tesla began by focusing on a narrow sliver of the market—high-performance all-electric vehicles (EVs) targeted toward a small segment of affluent, technology-obsessed buyers. However, despite potential bumps in the road, Tesla continues its journey from upstart nicher to full mass-market brand. It is further diversifying its vehicle portfolio with self-driving EV semi-trucks and a new Roadster slated for 2020—one that promises to shatter more records for speed, acceleration, range, and coolness. And although the future remains uncertain, Tesla has already gone further, faster than any other vehicle startup in history. Tesla is to cars what Apple has long been to consumer electronics, with the same kind of innovative leadership and cult brand following. Despite the potholes, Tesla's current and wannabe customers remain unwavering in their enthusiasm for the brand.
Internal factors that affect pricing include _________________.
The company's overall marketing strategy, objectives, and marketing mix
Nike
To customers, the Nike brand means much more than just innovative running shoes and apparel. Deep down, Nike means sports inspiration, a just-do-it attitude, and a total brand experience To customers, Nike represents an attitude, a sports passion, and a deep kinship and sense of community surrounding the brand. More than just something to wear, Nike has become a valued part of customers' lives and times.
Which of the following is a pure tangible good?
Toothpaste
Apple
Under its premium pricing strategy, Apple sets its prices above those of even its highest-priced competitors. Yet Apple's sales remain hot and its profits even hotter. However, Apple is still thriving in China and other emerging economies by catering to the also-burgeoning numbers of more-affluent consumers in those markets who want and can afford the luxury and status associated with Apple. Just like anywhere else, if you can afford it, an Apple device is well worth the premium price. In China, according to one analyst, "It's a price people have been willing to pay, specifically because it is expensive. The lesson is simple: Truly premium products earn premium prices.
The quality of services depends on who provides them as well as when, where, and how they are provided. Which characteristic of services does this describe?
Variability
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value?
Warranty
A new hardware company is writing its mission statement. Which of the following is the BEST mission statement possible for the new company?
We will help customers build, invigorate, restore, refurbish, or completely redesign their homes or businesses.
________________________ is one major objective associated with a market-penetration pricing strategy.
Winning large market share
Marketers now have a richer mix of media and content approaches with consumers being bombarded by many brand messages. The result is that _________________________.
consumers don't distinguish between content sources the way marketers do.
Catalogs, online and social media, and mobile marketing are some of the specific promotional tools used in _________________________.
direct and digital marketing
Continually adjusting prices to meet the characteristics and needs of individual customers and situations is known as _______________________.
dynamic pricing
Ad agency Young & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand ___________ is defined in terms of how highly consumers regard and respect the brand.
esteem
Which of the following reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
target costing
Stars, cash cows, question marks, and dogs are the four types of strategic business units (SBUs) defined in which of the following?
Growth-share matrix
What are stars in the growth-share matrix?
High-growth, high-share businesses or products
When a college or university charges more for out-of-state students than in-state students, it is practicing ______________________.
location-based pricing
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
market-penetration pricing
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.
optional-product
