ch. 12

Place the steps of product development in the correct order.

1. Idea development 2. New Idea Screening 3. Business analysis 4. Product development 5. Test marketing 6. Commercialization

List the four steps for calculating the value of a product, starting with step one.

1. Identify target customers 2. Identify their best alternative 3. Determine the products difference 4. Calculate value based on its differentiation

True or false: Price is defined as the value placed on an object by the buyer.

False

_____ distribution makes a product available in as many outlets as possible.

Intensive

A group of closely related products that are treated as a unit because they use a similar marketing strategy are referred to as a ______.

product line

A lumber yard that buys plywood from a producer and sells it to a home improvement retail store is an example of a(n) _____.

wholesaler

The objectives of ____________ are to stimulate demand; to stabilize sales; and to inform, remind, and reinforce customers.

promotion

Which of the following are common pricing objectives? Price discounting Boosting market share Price skimming Maximizing profits and sales Survival Maintaining the status quo

Boosting market share Maximizing profits and sales Survival Maintaining the status quo

_____ is the process of naming and identifying products.

Branding

Why are distribution decisions considered one of the least flexible marketing mix decisions? Distribution decisions are part of the marketing mix, and once the marketing mix is defined, it cannot be changed. Distribution decisions often establish contractual relationships that are difficult to change. Distribution decisions involve so many people that agreements are difficult to reach. Distribution decisions often commit resources.

-Distribution decisions often establish contractual relationships that are difficult to change. -Distribution decisions often commit resources.

Select the three types of utility created by retailers. Time utility Market utility Place utility Form utility Ownership utility

Time utility Place utility Ownership utility

When a firm prices a new product very high to make optimum profit while there is little competition, it is said to be using ______. price discounting a price skimming strategy a penetration strategy psychological pricing

a price skimming strategy

Paid, non-personal communication through various media by organizations and individuals who are in some way identified in the message is known as __________

advertising

Products created for household or family use intended for daily living are called _________ products.

consumer

Face-to-face sales presentations to consumers that often take place in the consumer's home is the nonstore retailing form known as ______ selling.

direct

The use of nonpersonal media to communicate products and information and offer consumers the opportunity to purchase from that media is referred to as ______. direct marketing direct selling selective distribution commercialization

direct marketing

Decisions regarding ________ are among the least flexible marketing mix decisions.

distribution

Inappropriate or impractical new product ideas will be rejected during the _____ phase

idea screening

When the marketing manager looks at the organization's resources and objectives to assess the firm's ability to produce and market a product, the company is in the _____ stage of new product development. commercializing idea development idea screening business analysis

idea screening

The process of coordinating the promotion mix elements and synchronizing promotion as a unified effort is called _______. public relations integrated marketing communication the product mix mobile advertisement campaigns

integrated marketing communication

A group of products that are physically similar or are intended for a similar market are referred to as a product ___________.

line

Brands that are initiated and owned by the manufacturer, such as Xerox or SONY, are called __________ brands.

manufacture

The _____ is the part of marketing strategy that involves decisions regarding controllable variables: product, price, distribution, and promotion. marketing mix marketing concept mission statement vision statement

marketing mix

The _________ is the external container that holds and describes the product, and influences consumers' attitudes and buying decisions.

packaging

The value placed on an object exchanged between buyer and seller is its __________.

price

Publicity differs from advertising in that it is _____. informative online paid unpaid

unpaid (both advertising and publicity are designed to be informative)

Goods, services and ideas all fall under the _________ element of the marketing mix.

product

What do marketers hope to gain by developing at least one dimension of value in the marketing mix that surpasses all competitors in meeting customer expectations?

A competitive advantage

Which three products are considered convenience products and thus would utilize an intensive distribution? Computers Gum Refrigerators Automobiles Gasoline Soft drinks

Gum Gasoline Soft drinks

_____ are intermediaries who buy from producers and sell to retailers. Retailers Wholesalers Agents Consumers

Wholesalers

A name, symbol, or design that identifies the goods or services of one seller in comparison to other sellers is a ______.

brand

Janet works part-time for Pampered Chef. Her selling technique is to hold "parties" in people's homes where she cooks food and demonstrates the kitchen products she has for sale. This is an example of ____. direct selling direct marketing intensive distribution commercialization

direct selling

Any information about an individual, a product, or an organization that is distributed to the public through the media and that's not paid for or controlled by the seller is known as __________

publicity

The promotional strategy in which the producer uses wholesaler discounts, personal selling, sales promotion contests, and other promotional tools to convince wholesalers and retailers to stock and sell its merchandise is known as a ______________ strategy.

push

Organizations that bridge the gap between a product's manufacturer and the end user are called intermediaries or middle men. Two types of intermediary organizations are ______. (select two) customers retailers wholesalers producers

retailers wholesalers

The promotional tool that stimulates consumer purchasing by adding value or other incentives for buyers is known as ______.

sales promotion

The promotion mix consists of ______. (select all that apply) physical distribution sales promotions data management personal selling publicity advertising

sales promotions personal selling publicity advertising

If a push strategy is successful, then consumers are more likely to find out about a new product after ______. asking for it at the store recognizing it in a movie seeing it in stores seeing a TV ad

seeing it in stores

Which two qualify as advertising? Online ads from Starbucks about its new product A news story about the products of a car manufacturer A paid television infomercial A company listed in a college newspaper for its donations

Online ads from Starbucks about its new product A paid television infomercial

True or false: Although personal selling has many advantages it is one of the most costly forms of promotion.

True (A sales call on an industrial customer can cost more than $400.)

______ distribution includes all the activities necessary to move products from producers to consumers.

Physical

_____ is the most flexible of the promotional methods because it gives marketers the greatest opportunity to communicate specific information that might answer an objection. Publicity Sales promotion Advertising Personal selling

Personal selling

Which three utilities are provided by marketing intermediaries, also known as middlemen? Place Time Quality Price Ownership

Place Time Ownership

Match the advertising message to its campaign objective.

Sales increases: Advertising with high impact, hard-hitting language and symbols Brand awareness: Advertising with repetition of the brand name and words and illustrations associated with it.

Which of the following are characteristics of advertising? (Select all that apply) Transmitted through a mass medium Non-personal communication Uses various media The organization paying for advertising is not identified

Transmitted through a mass medium Non-personal communication Uses various media

True or false: Product packaging attributes can influence consumer buying decisions.

True

True or false: Transportation, warehousing, and materials handling are all part of physical distribution.

True

True or false: Promotional positioning is the natural result of market segmentation.

True (In both promotional positioning and market segmentation, the firm targets a given product a portion of the total market.)

A car salesperson interacting with a client is an example of ___________selling because it is a two-way communication between a salesperson and a potential buyer.

personal

Game Masters has just released the long-awaited, new platform of its most popular gaming console. Since the company wants to recoup development costs, and there will be little competition at first, Game Masters is setting the price rather high. Game Masters is using a ______ pricing strategy.

price skimming

Match the steps in the new-product development process to the correct activity.

1. Idea Development: coming up with new commercial products to pursue 2. Idea Screening: reducing the number of ideas to the most promising and working on those 3. Business Analysis: assessing the potential profitability of the product 4. Product Development: creating a prototype 5. Test Marketing: taking a product idea to consumers to test their reactions 6. Commercialization: promoting a product to distributors, retailers, and consumers to gain wide interest and distribution in the product

Select all of the true statements about retailers. (Select all that apply) A farmer who sells his fruit and vegetables to consumers at a roadside stand is a retailer. Retailers create utility by bringing together products from competing producers. Retailing involves selling products to end users rather than for use in producing other products. Supermarkets and departments stores are examples of retailers.

Retailers create utility by bringing together products from competing producers. Retailing involves selling products to end users rather than for use in producing other products. Supermarkets and departments stores are examples of retailers.

Identify the sales promotions in the list below. (Select all that apply) Public service announcements Television advertisement Samples and demonstrations Store displays Coupons

Samples and demonstrations Store displays Coupons

Advertising, personal selling, publicity, and sales promotion are collectively known as the _____. marketing concept promotion mix marketing mix distribution strategy

promotion mix (marketing mix is broader, including product, price, promotion and distribution)

When a manufacturer of a hybrid vehicle attempts to create an image of the product as helping to save the environment, it is using _____. a pull strategy sales promotion techniques promotional positioning publicity

promotional positioning

1. Idea Development 2. Idea Screening 3. Business Analysis 4. Product Development 5. Test Marketing 6. Commercialization

1.coming up with new commercial products to pursue 2.reducing the number of ideas to the most promising and working on those 3.assessing the potential profitability of the product 4.creating a prototype 5.Choice, taking a product idea to consumers to test their reactions taking a product idea to consumers to test their reactions 6.promoting a product to distributors, retailers, and consumers to gain wide interest and distribution in the product

Which of the following is NOT a type of sales promotion? Giveaways coupons for local restaurants Giving away samples of a product in a grocery store Scratch off games at a national retailer for discounts A customer blogging about a product

A customer blogging about a product

Which of the following are typical objectives of promotion? (Select all that apply) To define marketing mix elements To stimulate demand To stabilize sales To inform, remind, and reinforce customers

To stimulate demand To stabilize sales To inform, remind, and reinforce customers

A(n) ___________ ___________involves designing a series of advertisements and placing them in various media to reach a particular target audience.

advertising campaign

Integrated marketing communication (IMC) combines ______ into one comprehensive, unified promotional strategy. products sales promotions all the promotional tools advertising tools personal selling tools

all the promotional tools

While Duluth Trading operates some retail locations, it specializes in selling its products through catalogs. In doing so, Duluth Trading is engaged in _______ marketing. direct marketing selective distribution direct selling commercialization

direct marketing

Brands sold with no brand name at all are called __________ brands.

generic

Products, such as butter, aspirin, or dog food, sold in plain simple packaging without a brand name are called ______.

generic brands

An ______ distribution strategy is used for convenience products because the product must be made available at every location where a consumer might desire to purchase it. exclusive intensive selective

intensive

The ______ variable of the marketing mix is often the most visible and therefore of critical importance.

product

The _____ is the part of marketing strategy that involves decisions regarding controllable variables: product, price, distribution, and promotion. mission statement marketing concept vision statement marketing mix

marketing mix

Four common ___________ objectives are: maximizing profits and sales, boosting market share, maintaining the status quo, and survival.

pricing

The Great Value brand is found only at Walmart and is often less expensive than other brands carried by the store. Great Value is an example of a ______. manufacturer brand promotional brand commercial brand private distributor brand

private distributor brand

Brands that do not carry the name of the manufacturer but carry a distributor or retailer name are called ______.

private distributor brands

Brands that do not carry the name of the manufacturer but carry a distributor or retailer name are called ______. generic brands commercial brands private distributor brands promotional brands

private distributor brands

Macy's and Kohl's are considered to be ____________ because they buy products from manufacturers or other intermediaries and sell them to consumers for home and household use.

retailers