MAR Exam 3

What two items are considered to be inventory costs of services?

- Costs associated with equipment needed to provide a service - paying a person to provide a service

Which two factors are unique to services, and are part of the four I's

- Inseparability - Inventory

what are good sources of open innovation?

- Inventors and entrepreneurs - smaller nontraditional firms - universities

What are two advantages of using advertising for promotion? Multiple select question.

- It can be attention-getting. - It offers good control of the message and audience.

What two statements are true regarding multichannel marketing?

- Multichannel marketing is a blending of different communication and delivery channels. - The goal of multichannel marketing is to attract, retain, and build relationships with buyers who use various channels.

What three items are classified as consumer products?

- Specialty products - Shopping products - Convenience products

Organizations can be most effective using skimming pricing under which two conditions? Multiple select question.

- The product is protected by patent. - The customer understands and highly values the product.

what factors must be taken into consideration to determine the "right" price for a product?

- Will it generate enough sales dollars to pay for the marketing of the product? - What are customers willing to pay for the product? - Will enough money be made to pay for the development and production of the product? - Will the product provide a profit for the company?

n choosing a supply chain, it is important to make sure that what the supply chain is capable of doing well is consistent with what two things? Multiple select question.

- a firm's marketing strategy - the targeted customers needs

What two intermediaries have legal authority to act on behalf of a manufacturer?

- agent - broker

what are the two dimensions on the retail positioning matrix?

- breadth of product line - value added

Which are common approaches in using allowances as a form of trade-oriented sales promotions?

- case allowance - merchandise allowance - finance allowance

What are two desirable characteristics when choosing a test market for a new product?

- city population that is demographically representative of target market - cable system that is able to deliver different advertising to diff homes

Organizations choosing competitor-oriented approaches to set prices might use which two pricing strategies?

- customary pricing - loss-leader pricing

common approaches to pricing are oriented around which four elements?

- demand - profit - competition - cost

Which are forms of nonstore retailing?

- direct mail - automatic vending - telemarketing

What are benefits of penetration pricing?

- discouraging competitors - decreasing production costs as volume increases - gaining market share

What are the three functions performed by intermediaries in a marketing channel?

- facilitating functions - transactional functions - logistical functions

Which two metrics must be balanced to obtain the appropriate number of gross rating points to achieve an ad campaign's objectives?

- frequency - reach

A desire to keep products seeming new encourages the proliferation of extra features in what is known as ______.

Feature bloat

What is the focus of target return-on-sales pricing? Multiple choice question.

a specific profit as a percentage of sales volume

A sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users is known as _____. Multiple choice question.

a supply chain

Supply chain management is the integration and organization of information and logistics activities ______.

across firms, from suppliers to distributors

Any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor is known as ______.

advertising

elements of the promotional mix

advertising, personal selling, public relations, sales promotion, and direct marketing

A product mix consists of

all of the product lines offered by an organization

______________ refers to communicating specifically with consumers to generate a response like an order, a visit, or a request for more information. Multiple choice question.

direct marketing

Executive salaries are a good example of a(n) ________ cost.

fixed

Apple has opened many retail stores to sell the various technology products it produces, which is an example of ______.

forward integration

Strategic channel alliances are common in ________, where the creation of marketing channel relationships is expensive and time consuming. Multiple choice question.

global marketing

When franchisees like car dealerships believe they are located too close to each other, ______ might arise

horizontal channel conflict

Firms often pursue ________ as a pricing objective when industry sales are relatively flat or declining.

market share

An advantage of ________ is that catalogs can serve a shopping tools for online purchasing, as they do for store purchasing. Multiple choice question.

multichannel marketing

Competing messages, lack of clarity in a message, or even printing mistakes can create problems that prevent effective communication, so they are called ________.

noise

horizontal conflict

occurs among firms at the same level of the channel

vertical conflict

occurs between different levels in a marketing channel.

forward integration

occurs when a firm owns or controls the customers or distribution channels for its main products

Selling brand name merchandise at lower than regular prices by buying excess inventory at prices below wholesale prices is known as _____ retailing. Multiple choice question.

off price

A strategic channel alliance involves ______. Multiple choice question.

one firm's marketing channel being used to sell another firm's products

Apple's use of the professional R&D laboratory IDEO to create the first computer mouse is an example of ________ innovation.

open innovation

Elements of communication

source, message, channel, receiver, process of encoding and decoding

When designing a supply chain that meets customer requirements and aligns with strategy, what are the two goals that firms try to achieve?

- to be more responsive - to be more efficient

What should be included in a protocol for new product development?

- well defined target market - specific customer needs, wants, preferences - what the product

During the business analysis stage of the new-product process, organizations should consider which two of the following?

- whether the product will reach new rather than existing market segments - whether potential customers understand the new product idea in a written description and sketch - if the new product will be made with existing equipment

what to consider for business when picking a channel?

- which will provide best coverage of the target market? - which will best satisfy the buying requirements of the target market? - which will be the most profitable?

Steps in the new product development process

1. new product strategy development 2.idea generation 3. Screening and evaluation 4. Business Analysis 5. Development 6. Test Marketing 7. Commercialization

How long is a product "new"

6 months

What is a shopping product?

A product that requires comparison shopping with price, quality, or style

off-price retailers

A type of retailer that offers an inconsistent assortment of merchandise at relatively low prices.

Two broad types of product offered in the market

Consumer products and business products

Which of the following help measure the impact of retailing on the global economy?

- sales volume - the number of countries served

administered vertical marketing system

achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership

in _________ testing, a new product idea rather than an actual product is presented to potential consumers, often in written form, to get reactions

concept

What are the four I's of services?

intangibility, inconsistency, inseparability, inventory

Category ______ focus on one type of product at very competitive prices, like Best Buy does with electronics and Staples does with office supplies. Multiple choice question.

killers

What are four types of franchise arrangements?

- manufacturer-sponsored retail - manufacturer-sponsored wholesale - service sponsored retail - service sponsored

Concept testing may be a brief written description of the product that helps answer which of the following questions?

- how does the customer perceive the product? - who would use the product? - how would the product be used?

The longest channel for business products includes which intermediaries? (Select all that apply)

- industrial distributor - agent - producer - industrial user

advantages of personal selling

- minimizing wasted coverage - customizing message based on feedback

Which two of the following are benefits consumers report regarding their experiences with direct marketing?

- more privacy than in store shopping - good customer service

cost oriented approaches consider

- overhead - production costs - profit

Common marketing reasons new products fail

- poor product quality - low market attractiveness

Place the levels of innovation from least to most risky

- product line extension - brand extension - radical innovation

What factors should be considered when setting an advertising schedule? (Select all that apply)

- purchase frequency - buyer turnover - forgetting rate

channel captain influences in four ways :

- reward - expertise - identification - legitimate right - economic influence

What must the consumer learn about when a new product is a discontinuous innovation?

- the benefits of the product - the proper use of the product

What must the consumer learn about when a new product is a discontinuous innovation?

- the proper use of the product - the benefits of the product

What are the primary objectives of product advertisements?

- to inform - to persuade - to remind

Two classifications of business products

1. components 2. support products

what are three sources of vertical conflict are most common?explain them

1. disintermediation : when a channel member bypasses another member and sells or buys products direct 2. disagreements over how profit margins are distributed among channel member 3. when manufactures believe wholesalers or retailers are not giving their products adequate attention

The typical relationship between price and demand is shown as ______.

a downward sloping demand curve

What type of product is characterized by derived demand?

Business products

disintermediation

Channel conflict that arises when a channel member bypasses another member and sells or buys products direct

In which stage of the new-product process does an organization use a SWOT analysis and develop a product protocol?

New product strategy development

How many steps are in the new product development process?

Seven

Which of the following does not cause a shift in the demand curve?

a change in price because it causes movement, but not a shift of the curve

What is a convenience product?

a consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying effort

When a wood furniture manufacturer has his unique shop attached to his plant, and sells from that space, as well as via catalog and the Internet, it is an example of ______.

a direct channel structure

Wholesaler-sponsored voluntary chains and retailer-sponsored cooperatives are two types of ________ marketing systems.

corporate vertical

Basic subscriptions for Hulu and Netflix are priced within a few dollars of each other, and these companies must determine how to operate profitably with this level of income; streaming subscription services use ________ pricing.

customary

Retail store positioning begins with a clearly defined ______.

customer value proposition

Penetration, price lining, and bundle pricing are all types of which of the following pricing approaches?

demand

A company will engage in test marketing in order to ______. Multiple choice question.

determine whether consumers will actually buy the product

The new-product process stage of screening and evaluation involves ______.

determining which ideas should be eliminated from further effort

What marketing channel allows consumers to buy products by interacting with various print or electronic media instead of a face-to-face meeting with a salesperson?

direct to consumer marketing

pull strategy

directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product

push strategy

directing the promotional mix to channel members to gain their cooperation in ordering and stocking the product

A key difference between a wholesaler and a broker is that a broker ______.

does not actually purchase the product, but brings together a seller and a buyer

Select the interests of consumers that are important to consider in channel choice

information, variety, convenience

Personal selling is of significant importance to ________ because they are provided marketing advice and expertise, in addition to information about allowed markup, merchandising support, and return policies. Multiple choice question.

intermediaries in the marketing channel

For ordering and inventory purposes, each product ________ has a separate stock keeping unit (SKU).

item

Product advertisement takes three forms:

pioneering, competitive, reminder

What element of the marketing mix has a unique role in that it is the place where all other business decisions come together?

price

Vertical marketing systems are best described as ______. Multiple choice question.

professionally managed and centrally coordinated marketing channels

The margins earned for each channel member and for the channel as a whole determines ______. Multiple choice question.

profitability

A ________ is a pre-development statement that identifies a target market, customer needs, and what the product will be or do

protocol

________ is a nonpersonal, indirectly paid presentation of an organization, good, or service

publicity

If a company has a good result in its test market for a new product but wants to allow production levels and marketing activities to build up gradually, it may pursue a ______.

regional rollout

An organization may consider principles of customer experience management as it examines its employee commitment and skills in the internal approach of the ________ stage of the new-product process. Multiple choice question.

screening and evaluation

Consumers' zeal for low prices combined with the ease of making price comparisons on the Internet has resulted in many companies adding ________ to their list prices.

surcharges

If a company wants its profit to be a specific percentage of the final sales volume, it is using ________ return-on-sales pricing.

target

Results of laboratory and consumer tests are compared to ________ for a product in the development stage of the new-product process.

the established protocol

What is supply chain management?

the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers

The three factors influencing the demand curve are consumer tastes, consumer income, and ______.

the price and availability of similar products

What is loss leader pricing?

the pricing policy of setting prices very low or even below cost to attract customers into a store

Idle production capacity occurs when

the service provider is available but there is no demand for the service

Which of the following is the primary purpose of using regional rollouts in the commercialization stage of the new-product process? Multiple choice question.

to gradually build up production levels and marketing activities

Functions performed by intermediaries

transactional - buy and sell products/services, risk taking logistical - assorting, storing, assembling and protecting, sorting, transporting facilitating - Financing, grading, marketing information and research

Concept tests in the screening and evaluation stage of the new-product process are most useful when ______. Multiple choice question.

used for minor modifications of existing products

A(n) _______ buys products from manufacturers and resells them to retailers. Multiple choice question.

wholesaler