Marketing Exam 2

________ refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible.

Service

Which of the following is a pure tangible good?

Shampoo

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer.

Cost-plus

In terms of packaging functions, Tiffany & Co.'s robin egg blue boxes ________.

Create immediate consumer recognition

The team-based new product development approach saves times and increases effectiveness because departments work closely together in ________.

Cross-functional teams

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.

Cost-based

Denta Clean's decision to add a whitening toothpaste to its current line of toothpastes is an example of product line ________.

Filling

Google's Innovation Time-Off Program, where employees get one day out of the week to work on products ideas is an example of ______?

Internal ideas

A successful niche marketing strategy relies on a firm's ________.

Knowledge of customer needs

Stores offering low-quality alternatives to luxury products at low prices most likely follow a __________ positioning strategy

Less-for-much-less

________ occurs when a company uses its existing brand name for new forms, colors, sizes, ingredients, or flavors of an existing product category.

Line extension

Cement is an example of an industrial product that is categorized under ________.

Materials and parts

The practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations is referred to as ________.

Micromarketing

Product improvements, product modifications, and original products can all be classified as ________.

New products

Product mix width refers to the ________.

Number of different product lines the company carries

Product mix depth refers to the ________

Number of versions offered for each product in the line

A company's external sources of new product ideas include its ________.

Suppliers

The first part of a marketing strategy statement describes the ________ of a new product.

Target market, planned value proposition, and sales goals

Which of the following is an example of a shopping product?

Television

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings.

Test Marketing

Which of the following is true of perceptual positioning maps?

They are used to analyze consumer perceptions of a brand relative to competing products.

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________.

Trade-in allowance

Although not recommended, some marketers decide to ignore market segmentation and target the whole market with one offer. This is known as ________ marketing.

Undifferentiated

Consumer products that the buyer either does not know about or knows about but does not normally consider buying are referred to as ________ products.

Unsought

Shampoo marketers segment buyers as light, medium, or heavy product users. This is an example of ________ segmentation.

Usage rate

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing.

Value-added

Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and More. Which of the following pricing strategies will Los Amigos likely use?

Competition-based

Howard Schultz, the founder of Starbucks, positioned his bistros as "a third place" between work and home where patrons could share and enjoy a cup of coffee with friends. This illustrates ________.

A core customer value

________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market.

A product life cycle

One reason demographic variables are the most popular bases for segmenting customer groups is because they ________.

Are easier to measure than other variables

Dividing buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called ________ segmentation.

Behavioral

A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.

Brand

Establishing prices for razor blades that must be used with a razor blade system is known as ________ pricing.

Captive-product

________ involves designing and producing the container or wrapper for a product.

Packaging

Argonaut Food Stores, a retail giant, hires better-skilled employees than its competitors by employing strategic recruitment practices. In this case, Argonaut has focused on gaining a strong competitive advantage through ________ differentiation.

People

World Skies' Flight 167 takes off at 50 percent capacity. The unoccupied seats cannot be stored for later sale or use. This is an example of which service characteristic?

Perishability

Company and brand positioning should be summed up in a _______.

Position Statement

________ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Positioning

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?

Promotional pricing

________ segmentation factors divide buyers into different groups based on social class, lifestyle, or personality characteristics.

Psychographic

What is the last stage of new product development?

Commercialization

A brand difference is said to be preemptive if ________.

Competitors cannot easily copy the difference

The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as ________.

Concept testing

Port Orleans Shipping markets different services to the tourism, defense, and trade segments. The firm designs separate offers for each segment based on their needs. This approach is called ________ marketing.

Differentiated

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas.

Crowdsourcing

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.

Decline

During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years.

Decline

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customers. One product line caters to the needs of affluent, middle-aged men, and the other line targets younger, up-and-coming professionals. Harry's most likely segments the consumer market based on ________ variables

Demographic

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities.

Pure competition

Brands vary in the amount of power and value they hold in the marketplace. Brands such as Crest and Starbucks have achieved high brand _________.

Equity

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a ________.

Fad

The Ferbie, Chia Pets, Magic 8 Ball, and Silly Bandz are all examples of _______?

Fads

Rent, electricity, and executive salaries that do not vary with production or sales level are referred to as ________ costs

Fixed

Gulf Coast, a wholesale shrimp distributor, groups its customers by regions in the United States, such as Midwest, Northeast, and Southwest. For each region, Gulf Coast tailors a different set of advertisements and promotions. The supplier is segmenting its market according to ________.

Geographic location

Pacific Fisheries groups its customers by regions in the U.S., such as Midwest, Northeast, and Southwest. For each region, Pacific Fisheries tailors a different set of advertisements and promotions. Based on which of the following segmentation variables does the firm divide its market?

Geographic location

The new product development process usually starts with ________.

Idea generation

Which of the following steps of the new product development process would most likely use an R-W-W framework?

Idea screening

A product line is most likely too long if managers can ________.

Increase profits by dropping items

________ products are those products that are purchased for further processing or for use in conducting a business.

Industrial

When demand hardly changes with a small change in the price of a product, the demand for the product is best described as ________.

Inelastic

_______ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.

Market Segmentation

Which of the following is the right order of the steps that companies generally follow in designing a customer-driven marketing strategy?

Market segmentation, market targeting, differentiation, and positioning.

The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large number of buyers quickly and win a large market share. This is referred to as _______.

Market-penetration pricing

The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a ________ strategy to price their digital music innovation.

Market-skimming

Under _____, the market consists of one seller that dominates the market and controls pricing.

Pure monopoly

________ is the only element in the marketing mix that produces revenue.

Price

A ________ is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

Product

A detailed version of a product idea stated in meaningful consumer terms is a ________.

Product concept

Which of the following sets the lower limit for a product's pricing?

Product costs

In the R-W-W framework for the idea screening stage, what does the "R" stand for?

Real

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing.

Product line

Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________.

Product mix

________ prices are carried in buyers' minds and used when looking at a given product.

Reference