Ch. 12

Which of the following exemplify sales promotion through sampling? (Select all that apply)

- Car dealer test drives - Supermarket taste test - Scratch and sniff magazine inserts

What three actions by marketing managers are likely to occur during the decline stage of the product life cycle? (Select all that apply)

- Certain models or items may be eliminated - Plans may be made for phasing out the product and introducing new ones to take its place. - Marketing expenditures may be cut

Why are distribution decisions considered one of the least flexible marketing mix decisions?

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

Which three products are considered convenience products and thus would utilize an intensive distribution?

- Gum - Soft drinks - Gasoline

Which of the following questions will be answered during the business analysis stage of new product development?

- Is the product compatible with the marketplace? - Will the product be profitable?

Physical distribution creates time and place utility through which of the following activities? (Select all that apply)

- Materials handling - Warehousing - Transportation

Which of the following are common pricing objectives?

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

Which two qualify as advertising?

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

Which three items are signs that a product is in the maturity stage of the product life cycle? (Select all that apply)

- Profits decline - Sales peak and start to decline - Competition is severe

Which three items characterize the decline stage of the product life cycle?

- Rapid drop in sales - Disappearing profits - Elimination of models or items

Which three (3) are used as a measure of product quality?

- Reliable - Durable - Easily maintained

Select all of the true statements about retailers. (Select all that apply)

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

Identify the sales promotions in the list below. (Select all that apply)

- Samples and demonstrations - Coupons - Store displays

The warehousing function completes which of the following? (Select all that apply)

- Stores goods - Receive goods - Ships goods

Select the three types of utility created by retailers.

- Time utility - Ownership utility - Place utility

Which of the following are typical objectives of promotion? (Select all that apply)

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

The promotion mix consists of ______. (select all that apply)

- publicity - personal selling - sales promotions - advertising

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)

- retailers - wholesalers

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

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

Place the steps of product development in the correct order. (NOTE: The first step in the process should be at the top of your list, the last step should be at the bottom of your list)

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. (Note: step one should appear at the top of your list)

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

List the stages of the product life cycle in sequence from beginning to end. (Note: The first stage should be the top item on your list)

1. Introduction 2. Growth 3. Maturity 4. Decline

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 of the following marketing channels exemplify a direct-from-producer-to-consumer strategy?

A farmer sells fruit and vegetables to consumers at a roadside stand

What is test marketing?

A trial mini-launch of a product in a limited area

Which of the following wholesalers does not own products but negotiates sales in exchange for a commission?

Agents

Concerning the six-step process of personal selling, which step is described as: using a referral or calling on a customer without prior notice to determine interest in the product?

Approaching

_____ is the process of naming and identifying products.

Branding

The engineers at Wonderful Widgets have come up with an idea for a new product. The company has determined that the product fills a market need and that it should generate a profit. Now the company wants to see how the product will be perceived by the consumer. How will the company do this?

By creating a prototype

Match the product classification with the buying behavior associated with it. Instructions

Convenience product - Consumers will spend little to no time planning where to purchase these products and usually accept whatever brand is available. Shopping product - Consumers will shop around for these products and buying decisions are influenced by quality, style, service, and image. Specialty product - Consumers will go out of their way to find these products and are unwilling to accept a substitute.

True or false: A consumer is trying to decide between 2 smartphones. Price is the most important feature, so a decision is able to be made on that criteria alone. This buying behavior is associated with specialty products.

False

True or false: Selective distribution makes a product available in as many outlets as possible.

False

What stage of the product life cycle is a product likely in if consumer awareness is limited and profits are negative?

Introduction

_______ is the planning and coordination of inbound and outbound as well as third-party services.

Logistics

Match the term to its correct definition.

Merchant wholesaler - Takes title to the goods, assume risks, and sells to other wholesalers, business customers, or retailers Agent - Negotiate sales, do not own products, and perform a limited number of functions in exchange for a commission.

Match the psychological pricing strategy with its definition.

Odd/even pricing - Consumers will buy more of a product for $9.99 than $10 because $9.99 seems to like a bargain price. Symbolic prestige pricing - Consumers associate high prices with high quality and are willing to pay the higher price

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

Personal selling

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

Physical

Match media examples with the type of media they represent.

Print media - Newspapers, magazines, direct mail, and billboards Electronic media - Television, radio and cyber ads

During which stage of new product development is a prototype of the product created?

Product development

What typically happens in the growth stage of the product life cycle?

Sales increase rapidly and profits peak

Match the advertising message to its campaign objective. Instructions

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.

Sometimes marketers place representatives at a supermarket to hand out portions of a product for customers to taste. What promotional tool are they using?

Sampling

_____ distribution uses only a small number of all available outlets to sell products.

Selective

_______ products require research and extensive shopping effort as consumers know what they want and are not willing to accept a substitute.

Specialty

_______ ________ management involves long-term partnerships among marketing channel members working together to reduce costs, waste, and unnecessary movement in the entire marketing channel to satisfy customers.

Supply chain

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

True

True or false: Products used directly or indirectly in the operation or manufacturing processes of businesses are called business products.

True

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

True

_____ is the design and operation of facilities to receive, store, and ship products.

Warehousing

_____ are intermediaries who buy from producers and sell to retailers.

Wholesalers

When a firm prices a new product very high to make optimum profit while there is little competition, it is said to be using ______.

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

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.

all the promotional tools

The supply chain includes ______.

all who are involved in moving products from the producer to the ultimate consumer

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

brand

A firm's ______ exclusively refers to the part of the brand that is a distinctive design, such as McDonald's golden arches logo.

brand mark

Products that are used for the operation of an organization or for the production of other products are referred to as ________ products.

business

A firm getting ready for full-scale production and distribution of a product is in the ______ stage of the product development process.

commercialization

During _____ a complete marketing strategy is introduced and the product is launched for commercial success.

commercialization

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

consumer

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

While Duluth Trading operates some retail locations, it specializes in selling its products through catalogs. In doing so, Duluth Trading is engaged in _____.

direct marketing

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

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

distribution

A salesperson who is ______ is checking to make sure the customer is satisfied with the purchased product.

following-up

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

Sales increase rapidly and profits peak, then start to decline in the _____ stage of the product life cycle.

growth

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.

idea screening

A block of radio or television air time (usually 30 minutes) featuring a celebrity or upbeat host talking about and demonstrating a product describes a(n ) ____.

infomercial

30-minute blocks of radio or television air time featuring a celebrity or upbeat host talking about and demonstrating a product is a type of advertising called ______.

infomercials

The process of coordinating the promotion mix elements and synchronizing promotion as a unified effort is called _______.

integrated marketing communications

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.

intensive

The stages of the product life cycle are ______.

introduction, growth, maturity, decline

The _____ stage of the product life cycle is exemplified by low sales, limited consumer awareness, and negative profits.

introductory

A distinguishing feature of a trademark is that ______.

it is legally protected

The presentation of important information on a package, such as ingredients and nutrition facts, is called _____.

labeling

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.

manufacturer

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

manufacturers' brands

The group of organizations that move products from the producer to consumers is a ______.

marketing channel

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

marketing mix

If sales of a product peak and begin to decline along with declining profits due to severe competition and heavy expenditures, the product is in the _____ stage of the product life cycle.

maturity

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

packaging

A _______ pricing strategy is the practice of pricing a product low to attract many customers and rapidly gain market share.

penetration

A low initial entry price, often lower than the eventual market price, to attract many customers and discourage competition, is a strategy called _______ pricing.

penetration

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

During the business analysis stage of new product development, products are analyzed for their compatibility in the marketplace and their ______.

potential profitability

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

price

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

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

pricing

Newspapers, magazines, and direct mail are _____ media, whereas television, radio, and cyber ads are _____ media.

print; electronic

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

private distributor brands

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 ______.

private distributor brands

When a farmer sells his fruit and vegetables to consumers at a roadside stand he is using a direct-from-_____-to-consumer marketing channel.

producer

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

product

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

product

All of the following information is typically presented on a product's label EXCEPT ______.

product classification

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

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

promotion

Advertising, personal selling, publicity, and sales promotion are collectively known as the _____.

promotion mix

When a manufacturer of a hybrid vehicle attempts to create an image of the product as helping to save the environment, it is using _____.

promotional positioning

The premise behind _____ pricing is that it encourages purchases based on emotion rather than rational responses to the price.

psychological

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

Brandon needed to get a new tractor for his landscaping business. He needed to make sure that the tractor would perform well for a long time, was easy to maintain, and was made with durable parts. Brandon is assessing the product's ______.

quality

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

sales promotion

If a push strategy is successful, then consumers are more likely to find out about a new product after ______.

seeing it in stores

Products or services the consumer buys only after comparing value, quality, price, and style from a variety of sellers are called consumer ______ products.

shopping

Products the consumer buys only after comparing value, quality, price, and style from a variety of sellers are called ______.

shopping products

A new computer would be classified as a ______ product, and a luxury yacht would be classified as a ______ product.

shopping; specialty

A trial mini-launch of a product in a limited area that represents the potential market is referred to as ______.

test marketing

All of the following are brand marks EXCEPT ______.

the word Pepsi on a Pepsi drink can

Physical distribution creates ______ and ______ utility by making products available when they are wanted, with adequate service and at minimum cost.

time; place

A brand is a name, symbol, or design that identifies a unique offering, whereas a __________ is a brand that has exclusive legal protection for both its names and its design.

trademark

Publicity differs from advertising in that it is _____.

unpaid

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