Marketing Chapter 3 Quiz

channel of distribution

A group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

Based on the guidelines for creating a good brand name, which of the following represents the best brand name?

Acuvue contact lenses

A channel of distribution is a group of individuals and organization that

Directs the flow of products from producers to customers.

Disney theme park employees have to adhere to strict rules. For example, women cannot wear earrings larger than a quarter and fingernails can be no longer than an eraser. These rules allow employees to still look unique, however, prevent employees from disrupting the magic of Disney while customers are inside the theme parks. In essence, Disney has recognized the _________ of services.

Heterogeneity/Inconsistency

The four major stages of a product life cycle include:

Introduction, growth, maturity, and decline

marketing intermediaries

Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangement or through the purchase and reselling of products

A brand is best defined as a

Name, term, sign, symbol, design, or combination of these that identifies a seller's product.

Because services cannot be inventoried, Subway restaurants have attempted to streamline the creation of submarine sandwiches as much as possible. Often, as many as 3 employees will perform specific functions to service a single customer. Streamlining the service to the extent possible is a strategy to deal with what unique characteristic of services?

Perishability/Inventory

new product strategy development

The key ingredient is the new product strategy or the product innovation charter. The new product strategy charts the strategy for the firm's entire new product initiative. It is the master plan; it provides the direction for your company's new product efforts, and it is the essential link between your product development effort and your firm's corporate strategy

The salvage value of unsold services is:

Zero

Prototype

a first, typical or preliminary model of something, especially a machine, from which other forms are developed or copied.

product line

a group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations

Channel Power

ability of one channel member to influence another channel member's goal achievement

Retailing

all transactions in which the buyer intends to consume the product through personal, family or household use

retailer

an organization that purchases products for the purpose of reselling them to ultimate consumers

Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's

atmospherics

Category killers

big box retailers that focuses on one or a few product categories (makes it hard for general retailers to compete)

Off-price retailers

buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

Staples is a specialty discount outlet that focuses on one type of product: office supplies. Staples is referred to as a:

category killer

Good packaging benefits

communication, functional, perceptual

growth - strategic action

competitive promotion - stress brand benefits & encourage brand loyalty, increase distribution & improve efficiency and product modifications/improvements

factors package developers must consider

cost, regulations, consistency, promo role, needs of resellers, environmental concerns

intro - objectives

create consumer awareness and stimulate trial, primary demand and selective demand

brand loyalty

customer's favorable attitude toward a specific brand

decline - objectives

cut your losses and reinvest in new areas

Development

determining if producing a product is technically feasible and cost effective

The depth of a product mix is measured by the average number of

different products offered in each product line

Channel Captain

dominant leader of a marketing channel or a supply channel (producer, wholesaler, retailer)

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using

dual distribution

The _____ category is often an individual who serves as a bridge to other networks, an opinion broker between groups, rather than within groups.

early adopters

maturity - objectives

emphasis is placed on holding market share through further differentiation and attracting new buyers, generate cash flow

Specialty stores

emphasize narrow and deep assortments of items

If Purina forced Kroger's grocery chain to place all of its products in the stores' most favorable locations, it would be

exercising channel power

innovators

first 2.5%

growth - objectives

focus shifts to generating selective demand and to ensure repeat purchases among early adopters

late majority

fourth, 34%

breadth of product line

general merchandise (product line)

products

goods, services, or ideas received in an exchange

Developing a pool of concepts as candidates for new-products is the __________ stage of the new-product process.

idea generation

new product strategy process

idea generation, screening, concept testing, business analysis, product development, test marketing, commercialization

value of branding to buyer

identification (reduce search cost), form of self expression, evaluate quality, reduce risks, psychological reward

The value of branding to sellers

identification (repeat customers), new product intro, promo efforts due to knock offs. efforts, brand loyalty/market stability

Perishability/Inventory

inability of a service to be inventoried or stored

scent

increases lingering time, positively influenced, alleviate stress

convenience products

inexpensive, frequently purchased items with minimal effort

color

influences customer perceptions

Mary recently went to Douglas J to get her hair styled. While she was getting her hair styled she noticed that she was consuming the service (the hair styling) at the exact time it was being produced. What unique characteristic of a service did Mary notice?

inseperability

Services have a lack of tangible assets that can be seen, touched, or smelled prior to purchase. This unique characteristic of a service is also known as _________.

intangibility

product life cycle

introduction, growth, maturity, decline

Business Analysis

involves assessing the attractiveness of a product from a sales, cost, profit, and cash-flow standpoint.

Test Marketing

involves offering a product for sale on a limited basis in a defined geographical area

Brand Equity

is the marketing and financial value associated with a brand's strength in a market

shopping products

items buyers spend considerable effort planning and making purchases

specialty products

items with unique characteristics that buyers are willing to spend considerable effort to obtain

A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called

just-in-time (JIT)

Intangibility

lack of tangible assets that can be seen, touched, or smelled prior to purchase

laggards

last 16%

Which of the following consumer groups tend to be skeptical consumers?

late majority and laggards

prototype uses

learning, communication, integration, milestones

Customer-contact employees

least trained and lowest paid

width of product mix

number of product lines a company offers

Stores that buy manufacturers' seconds, overruns, returns, and off-season production runs at below wholesale prices. These firms resell this merchandise to consumers at deep discounts, and are called

off-price retailers

decline - strategic actions

product deletion and harvesting, cut promotion

maturity - strategic action

product line additions - emphasize improvements and differences in competitor products, discounting - dealer-oriented promotions, improving overall efficiency

unsought products

product purchase to solve sudden problem, product which customer is unaware, product that people do not necessarily think of buying

intro - strategic actions

promote features, uses, & advantages, pricing, price skimming, and penetration pricing

Commercialization

refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product

General-merchandise retailers

retail establishments that offers a variety of product lines stocked in considerable depth

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n):

retailer

Atmospherics

scent, music, color

The stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort is referred to as __________.

screening and evaluation

early adopters

second, 13%

Concept Testing

seeking a sample of potential buyers' responses to a product idea

Concept tests are part of which stage in the new product process?

seeking a sample of potential buyers' responses to a product idea

Screening/evaluation

selecting the ideas with the greatest potential for further review

Good brand characteristics

simple, emotional, describes product benefits, memorable/distinctive/positive, fits company image, legally protectable, suitable internationally.

Inseparability

simultaneous production and consumption of a service

music

slower tempo, low volume encourages leisure

During the maturity stage

some competitors are forced out

A narrow product mix with a deep product line would most likely be carried by

specialty retailers

Depth of product line

specialty stores (product line)

product item

specific version of a product that can be designated as a distinct offering among a firm's products

Channel Cooperation

speed up inventory replenishment, improve customer service, cut cost of bringing products to customers

Traditional specialty retailers

stores that carry a narrow product mix with deep product lines

The stage of the new-product process that involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy is referred to as

test marketing

depth of product mix

the average number of different products in each product line

Brand recognition

the degree of brand loyalty in which a customer is aware that a brand exists and views the brand as an alternative purchase if their preferred brand is unavailable or the other brands are unfamiliar

Brand preference

the degree of brand loyalty in which a customer prefers one brand over competitive offerings

Brand insistence

the degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute

brand name

the part of a brand that can be spoken including letter, words, and numbers

Brand mark

the part of a brand that is not made up of words, such as a symbol or design

new-product strategy development refers to

the stage of the new-product process that defines the role for a new product in terms of the firm's overall objectives.

Screening and evaluation refers to

the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort.

product mix

the total group of products that an organization makes available to customer

early majority

third, 34%

wholesaling

transactions in which products are bought for resale, making other products or for general business operations

idea generation

triggers of use, unarticulated user needs, interaction with the users environment, customization of products and intangible product attributes

Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam's Club and has a new tire installed. Ryan's purchase of a new tire in this situation is considered to be a(n)

unsought good

Heterogeneity/Inconsistency

unwanted or random levels of service quality customers receive when they patronize a service firm

Open innovation

use external knowledge and technology to strengthen their own innovations, and creates value internally developed innovations that are not immediately applicable in their own business

In service marketing, the most important link to the customer is

well-trained contact employees.

branding

· name, tern, design, symbol, or other feature that identifies one seller's product as distinct from those of other sellers

Supply-Chain Management

• A set of approaches used to integrate the functions of operations management, logistics management, supply management and marketing channel management so products are produced and distributed in the right