Marketing 10&12
Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ___________ units.
1,167
If the product price is $100, average variable cost $40 per unit, and the total fixed costs are 120,000, what is the break-even point?
2,000
McDonald's Golden Arches are classic example of a
Brand mark
Kleenex Boutique is a brand ___________ of tissues made by the Kimberly-Clark Corporation. a) mark b) identification c) name d) guarantee e) type
Brand name
The part of a brand that can be spoken including letters, numbers, and words is known as the
Brand name
Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the:
Break-even point.
Products are classified as being business or consumer products according to the
Buyer's intended use of the product
Pricing the basic product in a product line low while pricing related items at a higher level is called
Captive pricing
When a company that produces computer printers prices them low, but the ink required to operate the printer is priced higher per relative usage, it is using
Captive pricing
Federal laws and regulations specify information that garments must include on the labels. Garments must be labeled with the country of manufacture, fabric content, and
Care instructions
What type of discount is given to marketing intermediaries or middlemen?
Cash
A Sony laptop that has an intel
Co branding
_____ is the use of two or more brands on one product
Co branding
What type of product does Dannon yogurt represent for most consumers
Convenience
The stage of the product life cycle when marketers consider eliminating products that are not contributing to profitability or the overall effectiveness of a product mix is the blank stage
Decline
This type of brand is considered the least protectable under existing trademark regulations
Descriptive
When establishing prices, a marketer's first step is to:
Develop pricing objectives
The value, measured in either marketing or financial terms, associated with a brand's strength in a market is referred to as brand
Equity
If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ___________ price.
F.O.B origin pricing
A package of aluminum foil at Kroger supermarket has only white package
Generic
A product that indicates only the product category and does not include the company name or other identifying terms
Generic
In which stage of the product life cycle do profits start to decline?
Growth
The manufacturers of miracle-gro have square boxes of the plant food that serve as flower-pot liner.
Innovative
For most products, a(n) relationship exists between the price of a particular product and the quantity demanded
Inverse
Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and
MRO supplies
Labeling is used for identification, promotional, legal, and blank purposes
Marketing
During the(blank) stage of the product life cycle, weaker competitors are squeezed out of the market
Maturity
A product that has more features than those of its competition, or that is perceived to be of higher quality, warrants using
Premium pricing
Brewer's produces a variety of ice cream flavors and of baring qualities. The higher quality ice cream varieties and prices higher than the basic ones. Breyer's us using ___ to price its ice cream
Premium pricing
To determine the break even point in units, divide the fixed costs by:
Price minus variable costs
Craftmans tools sold and branded by sears is an example of a brand
Private distributor
A Macy's manager designs the casual
Reference pricing strategy
convenience products
Relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort
Executives in Japan decided to price Lexus luxury cars in the United States at $55,000 while pricing them at $66,000 in their own country. This is an example of:
Secondary-market pricing.
David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) ______ product. a) shopping b) unique c) specialty d) historical e) unsought
Specialty
Another common name for a private distributor brand is a brand
Store
Registration of a trademark with the U.S. Patent and Trademark Office protects trademarks domestically for ____ years with indefinite renewals. a) two b) thirty c) eighteen d) five e) ten
Ten
At the break-even point
The total fixed costs are exactly to the total variable costs.
If a product has an inelastic demand and the manufacturers raises its price:
Total revenue will increase.
A product line is defined as
a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.
A product mix is best described as
all products offered by a firm
A concession in price in business markets to achieve a desired goal is called a(n)
allowance
Marvel Comics allowed various organizations to use its Spiderman and Incredible Hulk characters to market a wide variety of toys and clothing items. Marvel Comics received a percentage of the gross revenues. This is
brand licensing
When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of a) multiple-unit pricing. b) bundle pricing. c) prestige pricing. d) price lining. e) price packaging.
bundle pricing
Showing a product's price along with its previous price, the price of a competing brand, or the price at another retail outlet is called
comparison discounting
If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?
competition-based
A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n)
component, part
Packaging is most important, as a strategic tool, for
consumer convenience products
For custom-made equipment or commercial construction projects, which pricing method is most likely used?
cost-plus
Steinway produces concert grand pianos, often using the custom materials and designs desired by a specific customer. The average price of these pianos runs about $50,000 depending on the exact piano. What type of pricing does Steinway most likely use for these pianos?
cost-plus
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a:
demand curve
The three primary bases for developing prices are:
demand, competition, and cost
If a product is priced based on how many or how few people want it at a particular time and place, ____ pricing is being used.
demand-based
During July and August, Lakewood Links Golf Course, located in South Carolina, offers weekday rates of $13 for a round of golf with a cart. During the rest of the year, the weekday rates are between $25 and $35. This is an example of the use of a) differential pricing. b) incentives. c) competition-based pricing. d) demand-based pricing. e) random discounting.
demand-based pricing
Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix
depth
The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ___________ pricing. a) price-line b) promotional c) professional d) differential e) psychological
differential
If Pacific Power and Light increased its rates 10 percent and experienced only a 2 percent reduction in the demand for power, the demand would be a) elastic. b) prestige. c) common. d) horizontal. e) inelastic.
e) inelastic.
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10 percent and, as a result, experienced a 20 percent decline in customer bookings, Carnival's demand would be
elastic
MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets
ideas
A policy of naming each product differently.
individual branding
The four major stages of a product life cycle include
introduction, growth, maturity, decline
The width of product mix is measured by the number of product
lines a company offers
In marketing, family packaging means
making all of a company's or product line's packaging look similar
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur
marginal cost
Under Armor is establishing a ____ pricing objective to maintain or increase its product's sales in relation to total industry sales.
market share
Nabisco is considering two pricing objectives. The first is to sell one out of every three crackers consumed in the world, an objective based on _______; the second is to meet, but not beat, competitors' prices of cookie products, which is a _____ objective.
market share; status quo
Sellers that emphasize distinctive product features to encourage brand preferences among customers are practicing
nonprice competition
If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use
penetration pricing
A problem associated with ___ is that consumers can predict when prices will be lowered and delay purchases until that time
periodic discounting
French Quarter Inns reduces the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded by an average of five per night. This is an indication that suites at this hotel are an example of a(n) _ product
prestige
When marketers emphasize price as an issue and match or beat the prices of other companies, they are engaging in:
price competition
a measure of the sensitivity of demand to changes in price
price elasticity of demand
If Kroger Food Stores advertises 2-liter bottles of Pepsi for 89 cents to generate store traffic that will purchase other items at regular prices, the grocer is using a) reference pricing. b) a price leader. c) special-event pricing. d) comparison discounting. e) professional pricing.
price leader
To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called
price leader pricing
When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as:
price lining
If Norelco introduced a new electric razor that sonically removes hair and priced it first at $175 and then at $150 before reducing the price to $100, the firm's initial pricing strategy is known as
price skimming
Products used directly in the production of a final product but are not easily identifiable are categorized as
process materials
The pricing of Clinique makeup, considerably higher than brands such as a cover girl, revlon, and maybelline, is most likely used to communicate
product quality
Westin Hotels, Inc. has an objective of achieving a 25 percent return from its overall sales. This is an example of a ____ pricing objective.
profit
Price leaders, comparison discounting, and special-event pricing are applications of
promotional pricing
The most important function of packaging is to
protecting the product and maintaining its functionality.
If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____________ discount.
quantity
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the
quantity demanded goes down
Minerals, chemicals, timber, and agricultural products are considered
raw materials
Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____ products.
shopping
Shannon Hill needed to buy an airline ticket to visit her parents. She called several airlines to compare rates and chose a flight on Southwest Air Lines because, for comparable prices, it had a better reputation for service. For Shannon, this flight is an example of which type of product?
shopping
What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?
status quo
A trademark signifies
that the owner has exclusive use of a brand and others are prohibited from using it.
Price is a key element in the marketing mix because it relates directly to
the generation of total revenue
When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ___________ pricing occurs.
to transfer
The full and legal name of an organization is called the
trade name
When Minute Maid mailed out free samples of its new instant drink mix, it was trying to move prospective customers into the ___________ stage of the product adoption process.
trial
Private distributor brands are owned by
wholesalers or retailers
