Chapter 14 MGMT LearnSmart

Value enhancers for a washing machine could include the:

- Brand Name - Free installation and delivery - warranties

Select all that marketers must do to satisfy customers

- listen better - adapt

The reasons why many new products fail include:

- poor packaging - poor positioning - too late to market

Six steps in the new product development process

1. Idea generation 2. Product screening 3. Product analysis 4. Development 5. Testing 6. Commercialization

Stages of the product life cycle from beginning to end with the earliest stage first

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

A name, symbol, or design that identifies the goods or services of one seller or group of sellers is called a:

Brand

The degree to which customers are satisfied, like the brand, and are committed to further purchases refers to:

Brand Loyalty

Which of the following are unsought goods and services

Car Towing Burial Services

Taking a product idea to consumers to test their reaction is called __ __

Concept Testing

Select the firms that distribute products nationally which are also known as manufacturer's brands

Dell Xerox Sony

Examples of shopping goods

Dishwashers Automobiles

Products sold in the business to business (B2B) market are called ____ goods

Industrial

_____ is defined as a set of processes for creating, communicating, and delivering value to customers, according to the American Marketing Association

Marketing

______ ____ is the staggery by which one or more dominant forms set the pricing practices that all competitors in an industry fellow

Price Leadership

_____ _____ is the creation of real or perceived product differences

Product Differentiation

____ pricing makes a product appear less expensive than it really is

Psychological

A firm wishing to track products via radio frequency will most likely use a ____ system

Radio Frequency Identification (RFID)

____ goods are consumers products with unique characteristics and brand identity

Specialty

_____ _____ aims to design a product so that it satisfies and meets the profit margins for a company

Target Costing

____ ____ change according to the level of production

Variable Costs

When company ads for luxury products include well-known and successful people, the ad is making an attempt at brand ____

association

How quickly or easily a given brand name comes to mind when a product category is mentioned refers to:

brand awareness

The value of the brand name and associated symbols refers to:

brand equity

When the consumer will not accept a substitute for a particular product, the consumer has developed:

brand insistence

A person responsible for one brand or product line is called a _____ _____

brand manager

The point where revenues from sales equal all costs is called the:

break-even point

Grouping two or more products together and pricing them as a unit is called:

bundling

Marketers must recognize that different customers perceive that same product, such as coffee, as belonging to different:

classes of consumer goods

Promotion a product to distributors and realtors to get wide distribution is called:

commercialization

The best way to ___ is to design and promote products that consumers perceive as having greater value that the competition

compete

Setting price at, above, or below competitors based on what they are doing is pricing strategy is called:

competition based pricing

Consumers calculate the value of a product by:

considering whether all of the benefits exceed all of the costs

A product the consumer wants to purchase frequently and with minimum effort is a good or service called a ______ ______

convenience good

The private label Kenmore brand sold by Sears is an example of a _____ brand

dealer

Regardless of the number of products made, ____ ____ are those expenses that remain the same

fixed costs

Non-branded goods are considered ____ goods

generic

The name used to refer to an entire product category is a:

generic label

A ___ - ____ pricing strategy sets prices higher that other stores EDLP, but lower during special sales

high - low

Heavy machinery, new buildings, and computers, all used in the production of other goods, are examples of _____ goods

industrial

The Fair Packaging and Labeling Act gives consumers more ___ on product content, quantity, and value

information

When a consumer insists on one specific brand, making the product a speciality good, it is know as brand

insistence

Relative to the product life cycle, because ketchup is a classic product:

it may never experience decline

A ____ brand is a illegal copy of a national brand-name good

knockoff

Marketers must continually adapt products to new

markets competition

Marketers who seek to differentiate their products by promoting attributes such as safety or the brand name are using:

nonprice competition

In order to capture a large share of the market quickly, firms use a low price ____ strategy

penetration

Which of the following four P is the most difficult for a manger to control due to the impact it has on consumer evaluation of an offering?

price

Due to competition and demand in the marketplace, ___ and ___ are not always related

price, cost

Packing carries more of the promotional burden today that in the past, when most products were sold through direct sales. that change from using salespersons to using self service had put more responsibility on packing for:

pricing information promotional messages

Products that do not carry the manufacturer's name, but carry the distributor or retailer are called:

private-label brands dealer brands

Many companies have used packing to change and improve their basic ____

product

Making cost estimates and sales forecast to get a feeling for the profitability of a new product idea is called:

product analysis

When a company uses the marketing mix to attract customers to the products real and perceived differences they are engaging:

product differentiation

The theoretical model of sales and profit for a product class over time is the:

product life cycle

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

product line

The combination of product lines offered by manufacturer is called ___ ____

product mix

The process of ___ ___ helps manufacturers determine whether a product fits well with present products and has good marketability and profit potiential

product screening

Break even analysts is the process of determining ___ at various levels of sales

profitability

A theoretical model of what happens to sales and _____ for a product over time is called product life cycle

profits

The value of a product is defined as good ____ at a fair _____

quality, price

Products the consumers buys only after comparing value, quality, price, and style from a variety of sellers are goods or services called:

shopping goods

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

skimming price strategy

Products that rely on reaching special market segments through advertising are:

speciality

Business consulting services, imported chocolates, fine watches, and expensive wine are examples of ____ goods and services

specialty

Recognizing what stage of its life cycle a product is in has a direct impact on marketers' decisions about:

the marketing mix

When consumers are deciding to make a purchase, everything they consider when deciding to but is called ___ ___ ___

total product offer

A brand that has exclusive legal protection for both brand name and its design is called a:

trademark

Consumers are not typically searching in the market for an ____ good

unsought

Product Line Product Mix

- Coke, Diet Coke, Vanilla Coke, Coke with Lemon - ATM machine, online banking, safe deposit box, savings account

Convenience Shopping Speciality Unsought

- Purchased often with little thought - Time spent on comparison to substitutes - No substitute will do - Unaware of product or not looking for

Packaging can make a product more attractive to retailers by:

- Reducing theft - Tracking Inventory - bundling products and services

Demand Based(targeting costing) Cost based Competition based

- estimate the price people will pay and design a product that will satisfy customers and meet profit margins - costs of production plus a margin of profit to decrease price

A dealer brand may also be called a:

- house brand - distributor brand - private label

Convenience Goods Shopping Goods Speciality Goods Unsought Goods

- make them readily available - combining price, quality, and service to create value - advertise in specialized magazines or sponsor events - Personal selling

Target Return on investment or profit Building Traffic Achieve Greater Market Share Achieve Greater Market Share Create an Image Further Social Objective

- making a profit by providing goods and services to others - advertising certain products at or below cost to attract people or rebates - Offering lower prices lower financing rates, low lease rates - price high to create the perception of exclusivity - pricing products low, so people with little money can afford them

Factors influencing the perception of quality are:

- price - appearance - reputation

A brand manager in a B2B company is responsible for

- product - price - promotion

Skimming Penetration Everyday Low High-Low

- products prices high to maximize profit when there is little competition - Products priced low to attract many customers - Setting prices lower than competitors without having special sales - setting prices higher than EDLP while having many special sales

Which of the following is a function that a product's packaging must perform?

- protection - Information about the goods inside - attract the buyer's attention

The Fair Packaging and Labeling Act was passed to:

- provide more information on product content - provide more information on product quantity

Companies usually offer a product line instead of just one product to:

- tailor their offerings more closely to consumer wants - meet the competition - appeal to similar consumer markets

Which of the following are variable costs in a break-even analysis

-Raw material used in the product - Labor used in making the product

When a brand is linked to other favorable images that is known as:

Brand association

Making a product readily available and creating the proper image is the best way to promote a good classified as a

convenience good