Econ exam

The primary function of marketing and the entire organization, in a broader context, is to - deliver value to the customer. - focus on short-term benefits. - eliminate barriers to market entry. - offer highly customized products. - increase employee turnover.

- deliver value to the customer.

Frequently purchased, relatively low-cost products for which customers have little interest in seeking new information and rely heavily on prior purchase behavior are called ________goods. convenience shopping specialty unsought consenting

convenience

Positioning relies on the communication of one or more sources of value to customers in a way that the customer can easily make the connection between the ________. customer's needs and wants and what the product has to offer product and its advertising salesperson and the customer at a personal level way the 4Ps of the marketing mix work with one another cost of the product and the quality

customer's needs and wants and what the product has to offer

An artisan creates handmade soaps and sells them at her local farmers market. What channel of distribution does she use? direct channel indirect channel virtual network physical distribution exclusive distribution

direct channel

Products that are new-to-the-world create a fundamental change in the marketplace and are known as disruptive innovations. enhanced products. core products. convenience goods. technological transformations.

disruptive innovations.

Segmenting markets means that a company is ________. -dividing the market into meaningful smaller markets based upon common characteristics -selecting the markets to compete against in the marketplace -selecting a corporate position to communicate to potential customers -identifying and calculating the churn rate in different markets -identifying the customers who have frequently purchased competitor's products or services

dividing the market into meaningful smaller markets based upon common characteristics

The development of promotional strategies most likely involves decisions about elements in the promotion mix. acceptable ROI for the customer. price promotions. product development. customer service response.

elements in the promotion mix.

When actress Jennifer Aniston appears in an advertisement using and promoting a particular brand of body lotion, it is an example of the ________approach to advertising execution. endorser demonstration research-based lifestyle slice-of-life

endorser

________measures the average number of times a person in a target market is exposed to a particular message. Frequency Reach Relevancy Impact Noise

frequency

The region, the density of the population, and the size of the population are various approaches to use in ________. geographic segmentation population parameter estimation democratic segmentation differentiation positioning

geographic segmentation

The rate at which new products become accepted is known as the ________process. adoption sensitivity steering diffusion variance

adoption

The most basic form of brand equity is brand awareness. perceptive quality. brand association. brand loyalty. perceived reliability.

brand awareness

Creating a perception about price merely from the image the numbers provide the customer demonstrates ________pricing. psychological stability variable everyday low high/low

psychological

With ________pricing, customers are allowed—even encouraged—to haggle about prices. variable odd/even high/low captive psychological

variable

A(n) ________is defined by the American Marketing Association as "a name, term, design, symbol, or any other feature that identifies one seller's goods or services as distinct from those of other sellers." brand identity profile trademark product

brand

KFC is very protective of its "Seven Herbs and Spices" recipe, which, in the view of the company, gives it a significant competitive advantage over other restaurants, and will use any legal resource available to protect its patented formula. Which dimension of brand equity does this example illustrate? brand assets brand association brand awareness brand loyalty perceived quality

brand assets

Mabel only purchases Tide laundry detergent because it reminds her of her mother, who also used Tide. Which benefit of brand equity for customers does this exemplify? brand associations brand awareness brand assets brand strategy perceived quality

brand associations

In marketing, differentiation means ________. - communicating and delivering value in different ways to different customer groups -evaluating different market segments and deciding which shows the most promise for development -products need to appear to be different from one another to be successful in the marketplace -each age segment views products exactly the same -consumer choices remain similar around the globe

- communicating and delivering value in different ways to different customer groups

As a characteristic of services, intangibility refers to the fact that a service -cannot be seen, heard, tasted, or felt by a customer. -is produced and consumed at the same time. -can be experienced through the physical senses. -can be experienced by a customer before utilization. -quality can only be as good as that of the provider himself or herself.

-cannot be seen, heard, tasted, or felt by a customer.

The product life cycle (PLC) defines the life of a product in four basic stages, which include -introduction, growth, maturity, and decline. -awareness, interest, trial, and adoption. -primary, secondary, advanced, and nominal. -production, development, distribution, and enhancement. -idea generation, creation, presentation, and promotion.

-introduction, growth, maturity, and decline.

Today, the percentage of jobs in the United States that are service-related is more than ________of all jobs. 80% 20% 40% 90% 60%

80%

________can occur when a company purposefully makes pricing decisions to undercut one or more competitors and gain sales and net market share. A price war Cost leadership Price skimming Price discrimination Price elasticity of demand

A price war

________enhance utilities by providing a wide array of specific functions including physical distribution functions, transaction and communication functions, and facilitating functions. Channel intermediaries Pull strategies Indirect channels Value networks Direct channels

Channel intermediaries

What is the final element the marketing manager should implement in promotional strategy? Establish measures of results. Identify targets for promotion. Prepare promotion budget. Develop the message. Select the promotion mix.

Establish measures of results.

________is the application of marketing concepts and strategies inside an organization. Internal marketing Publicity Prosocial marketing Personal selling Direct marketing

Internal marketing

_______brands enable manufacturers to leverage marketing resources by creating efficiencies in marketing communications and distribution. National Private Custom Stand-alone Licensed

National

________refers to companies handing over most or all of their supply chain activities to third-party organizations that are experts in those areas. Outsourcing Creating assortments Channel integration Disintermediation Breaking bulk

Outsourcing

________affords the marketing manager an opportunity to develop a rational pricing strategy across a complete line of related items. Product line pricing Captive pricing Price bundling Reference pricing Prestige pricing

Product line pricing

Target marketing is the process by which ________. -a company evaluates market segments and decides which ones have the most potential for development -the market is divided into cohesive groups -the customer groups are evaluated on the basis of high or low churn to see which is the most profitable -a company collects cookies to track everyone who visits its website

a company evaluates market segments and decides which ones have the most potential for development

A technology company wants to increase sales for their newest product, so they decide to invest in advertising and direct marketing for the product. This is an example of a pull strategy. a push strategy. a combination of push and pull strategy. digital marking. personal selling.

a pull strategy

With brand ________, customers develop a number of emotional, performance, and psychological connections with a brand. association validity link identity awareness

association

At the ________stage of the AIDA model, marketing managers use promotions to gain awareness of the offering with the market's innovators and early adopters. attention interest desire attitude action

attention

A company can use its brand to expand into new product types. This is known as category extension. co-branding. franchising. store branding. brand association.

category extension.

What three steps do customers pass through when making purchasing decisions? cognitive, affective, behavioral want, need, attainment interest, desire purchase impulse, emotion, action notice, want, buy

cognitive, affective, behavioral

When two or more brands are reviewed against each other on certain attributes, it is considered ________advertising. comparative covert institutional competitive pioneering

comparative

________advertising is heavily used during the growth and early maturity stages of the product life cycle. Competitive Comparative Pioneering Covert Institutional

competitive

________advertising is one of the three principal types of product advertising. Competitive Covert Institutional Direct Viral

competitive

In the context of product characteristics, companies translate the essential benefit into physical, tangible elements known as the ________product. core augmented deviated differentiated contrasting

core

A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut ________and maximize ________every step of the way to market. costs; process efficiencies rewards; stock inventory employee benefits; cost control time inefficiencies; profits labor hours; performance incentives

costs; process efficiencies

The basis of the Gap Model of Service Quality is the -identification and measurement of differences in key areas of the service delivery process. -evaluation of the face-to-face time between customer and service provider, often called the moment of truth. -recognition of suitable techniques for resource management to achieve better service quality. -elimination of gap between an organization's and its employees' perceptions of the customer experience. -examination of the differences between the objectives of management and employees.

identification and measurement of differences in key areas of the service delivery process.

An art supply manufacturer sells its goods to a wholesaler, who then sells those goods to a retailer. What channel of distribution does this indirect channel direct channel virtual organization network organization channel community

indirect channel

Services are produced and consumed at the same time and cannot be detached from their provider. This characteristic of service is called inseparability intangibility variability reliability perishability

inseparability

The four characteristics of services are that they are inseparable, perishable, intangible, and variable. tangible, quantifiable, reliable, and durable. variable, dependable, repairable, and customized. customized, standardized, formalized, and categorized. specialized, tangible, standardized, and perishable.

inseparable, perishable, intangible, and variable.

The goal of ________advertising is to promote an industry, company, family of brands, or some other issues broader than a specific product. institutional competitive comparative pioneering product

institutional

A service cannot be experienced through the physical senses. This property represents the ________of services. intangibility perishability reliability variability inseparability

intangibility

Today, many tangible products include aspects that impact the customer's satisfaction before and after the purchase. These aspects that complement the tangible features of a product are intangible characteristics. physical aspects. core competencies. monetary characteristics. essential benefits.

intangible characteristics.

Offering other manufacturers the right to use the brand in exchange for a set fee or percentage of sales is known as licensing. co-branding. stand-alone branding. benchmarking. family branding.

licensing

A product ________is a group of products linked through usage, customer profile, price points, and distribution channels. line miX form cycle core

line

In a push strategy, the focus is on members of the channel who are targeted for promotion. end users. members who typically rely on advertising. end users who drive the distribution of the new product. stimulating demand for an offering directly from the end user.

members of the channel who are targeted for promotion.

Combining all the products and product lines offered by a company is called the product mix. segment. profile. group. category.

mix

The face-to-face time between customer and service provider is often called the ________because that is when customer judgments take place. moment of truth goal line stand moment of momentum service ROI service meeting

moment of truth

When a competitor used its logo in a disparaging way in an advertisement, Max Corp. sued. It won the suit on the basis that the competitor violated its trademark. Which company brand role does this scenario exemplify? -offering legal protection for a product -helping reassure the customer in the purchase decision -educating the customer about a product -providing competitors with a benchmark against which to compete -offering an effective and efficient methodology for categorizing products

offering legal protection for a product

Which advertising medium offers the advantage of interactive capabilities? online and social media radio direct mail newspaper television

online and social media

Sometimes referred to as pricing for maximum market share, ________can create a market entry barrier for other firms. penetration pricing target ROI price skimming competitor-based pricing value pricing

penetration pricing

Because of its reputation for excellent flavor and increasing energy, Delicious Beverages is able to charge a price premium for its products. Which dimension of brand equity does this example illustrate? perceived quality brand strategy brand connections perceived bonuses brand loyalty

perceived quality

It may be more accurate to think of a service as being ________rather than produced. performed designed modified created developed

performed

A push strategy usually relies on a combination of sales promotion and ________directed toward channel members. personal selling indirect marketing public relations social media promotion virtual marketing

personal selling

From an AIDA model perspective, ________advertising seeks to gain awareness and initial interest and is used mostly in the early growth stages of a product. pioneering institutional competitive covert comparative

pioneering

Organizations communicate one or more sources of value to customers in a way that the customer can easily make the connection between his or her needs and wants and what the product has to offer. Execution of this approach is referred to as a firm's ________strategy. positioning segmentation production sales distribution

positioning

________is a critical component that plays into a customer's assessment of the value afforded by a firm and its offerings. Price Cost ROI Markup Skimming

price

A strategy of ________addresses the objective of entering a market at a relatively high price point. price skimming penetration pricing target ROI competitor-based pricing value pricing

price skimming

A company's core cost advantages translate directly to an edge over its competitors based on much more flexibility in its ________as well as its ability to translate some of the cost savings to the bottom line. pricing strategies cost leadership value ratio service quality

pricing strategies

Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between producers and consumers. producers and retailers. distributors and agents. facilitating agents and transporters. consumers and transporters.

producers and consumers.

The vast majority of advertising is ________advertising. product virtual institutional nonprofit institutional

product

________can be defined as anything that delivers value to satisfy a need or want and includes physical merchandise, services, events, people, places, organizations, information, even ideas. Product Utility Strategy Market Exchange

product

The means by which one informs, persuades, or reminds potential customers is called promotion. public relations. marketing. personal selling. advertising.

promotion

What is an example of measured media? radio social media direct marketing promotion email marketing

radio

A(n) ________represents all organizations involved in providing a firm, the members of its channels of distribution, and its end-user consumers and business users. supply chain value chain virtual channel direct channel indirect channel

supply chain

Pricing objectives very frequently are designed to maximize profit, which necessitates a ________pricing strategy. target return on investment (ROI) value price war price skimming penetration

target return on investment (ROI)

Who or what are potentially the best brand and message ambassadors? the company's employees third-party reviewers viral advertisements satisfied customers television advertisements

the company's employees

A channel of distribution consists of interdependent entities that transfer possession of a product from producer to consumer. fix the price of a product to create monopoly. experience inefficiencies in business processes. develop new products. include members of the same market segment

transfer possession of a product from producer to consumer.

For most products, as long as the customer perceives the ratio of price and benefit to be at least equal, perceptions of ________will likely be favorable. value quality market share cost brand image

value

A(n) ________is thought of as an overarching system of formal and informal relationships within which the firm participates to procure, transform and enhance, and ultimately supply its offerings in final form within a market space. value network virtual organization business conglomerate organic organization tall organization

value network

Which characteristic is related to services? variability tangibility reparability durability separability

variability

_______of a service means that because it can't be separated from the provider, a service's quality can only be as good as that of the provider. Variability Separability Intangibility Perishability Tangibility

Variability