Marketing test

Explain the difference between a product mixs breadth and a product lines depth

A firm's product mix breadth represents a count of the number of product lines offered by The Firm Product line depth equals the number of products within a product line

Determine the various types of branding strategies used by firms

Brand Ownership § Manufacturer Brands: also known as national brands, are owned and managed by the manufacturer. Manufacturer develops merchandise, produces it, and invests in marketing. By owning brand, manufacturers retain control over marketing strategy. § Retailer/Store Brands: also called private-label brands, are products developed by retailers. Either develop it themselves or contract the development. ○ Naming Brands and Product Lines § GM has multiple brands b/c each caters to a diff market § Family Brands: firm's own corporate name used to brand its product line and products. Individual brands benefit from overall brand awareness associated with family name. Individual Brands: use of individual brand names for each of a firm's products.

Explain the various components of brand equity

Brand awareness Perceived value Brand associations Brand loyalty

Identify the advantages that Brands provide firms and customers

Brands facilitate purchases, establish loyalties, protect from competition and price competition. Brands are assets and effect market value

Bill is a Yacht broker in the southeastern United States for years he has had difficulty selling large Yachts locally because there word few places to dock these boats yachts and spaces to duck them are an example of

Complementary

___________ products are products his demands are positively related and as such they rise or fall together

Complementary

____________ measures customer sensitivity to price changes

Cross-price elasticity of demand

Describe the different groups of adapters articulated by the diffusion of innovation Theory

Early Adopters-13.5% of market Early Majority-34% of market Late Majority- 34% of market Laggards-16% of market

Who who is your favorite marketing 3310 instructor

Gary Payne

Describe the various stages involved in developing a new product or service

Idea Generation-Development if viable new product ideas. Concept Testing- Testing the new product idea among a set of potential customers Product Development-Development of prototype and/or the product. Market Testing- testing the actual products in a few test markets. Product Launch- full-scale commercialization of the product. Evaluation of Results-Analysis of the performance of the new product and making appropriate modifications.

Describe how the marketing of services differs from the marketing of products

Intangible Heterogeneous Perishable Inseparable

Explain the product life cycle

Introduction Growth Maturity Decline

Discuss the four gaps in the service Gap model

Knowledge Standards Delivery Communication

Barry customizes Harley Davidson motorcycles no two cycles are alike he notices that very few customers even ask the price of his motorcycles before they decide to purchase them demand for his motorcycles is probably

Pricce Elastic

Is a 1% decrease in price results in less than a 1% increase in the quantity demanded demand is

Price Inelasticity

List the four pricing orientations

Profit Oriantation Target Profit Pricing Maximizing Profits Target Return Pricing

For which of the following is demanded likely to be most sensitive to price increases

a specific brand of soft drinks

There are many options available to customers when it comes to breakfast cereal so if Kellogg's significantly increases the price of rice krispies customers are more apt to buy alternate cereals Instead This illustrates which concept?

cross-price elasticity

If the price for a product increases the demand for the complementary product will

decrese

The __________ is the ratio of the percentage change in quantity demanded to the percentage change in price

demand curve

What situation is occurring if a 1% decrease in price results in more than a 1% increase in quantity demanded?

demand for Price Elastic

Which of the following is the most logical example of complementary products A)a university and a corporation B) Hot dogs and hot dog buns C) Honda Cars and Toyota cars D)Hotdogs and Hamburgers E) VCRs and DVD players

hot dogs and hotdog buns

Sales of national brands of orange juice tend to increase when the economy is doing well while sales of generic orange juice increases when the economy is not doing well this is an example of how ___________ impacts demand for products

income effect

Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products by

increasing the income effect

A study found that among addicted smokers a 10% increase in the price of cigarettes resulted in a 2% decrease in quantity demanded for these customers cigarettes have in ____________ price elasticity demand

inelastic

The observation that customers are generally more sensitive to price increases then the price decreases suggest that

it is easier to lose customers with a price increase than to gain customers with a price decrease

Cross price elasticity is the

percentage change in quantity demanded of product A compared to the percentage change in price of product B.

For which of the following is demanded likely to be least sensitive to price increases?

prescription drugs

If a 1% price decrease results in a 1.1% increase in demand price elasticity is described as what

price elastic

If a 10% price increase results in a 2% reduction in demand price elasticity of demand is described as what

price inelastic

Brad always buys and uses Nike brand golf balls if he finds it Titleist tour Callaway ball in the rough he gives it away brand loyal golfers like Brad allowed Nike to charge a higher price and not lose when he sails by building a strong brand Nike has effectively

reduced the price elasticity of demand for its products

Explain the zone of tolerance

the area between customers expectations regarding their desired service and the minimum level of acceptable service- that is the difference between what the costomer really wants and what she will accept before going elsewhere.

Rudy owns hallman's Auto Repair Service he has observed over the years that customers keep their high mileage cars longer than when the economy is doing poorly creating demand for his maintenance and repair service Rudy has observed the impact of ___________ on demand for his services

the income effect

Explain price elasticity

the market for a product is price elastic when the price elasticity is less the -1 when a 1% decrease in price produces more than a 1 percent increase in the quantity sold

The more substitutes that exist in the market

the more sensitive consumers will e to changes in the price of a perticular product

Describe the pricing strategies used when introducing a new product

they use market penetration pricing which is where the initial price is low for the introduction of the new product or service. the objective is to build sales, market shares, and profits quickly.

Distinguish between brand extension and line extension

○ Brand Extension: the use of the same brand name for new products being introduced to the same or new markets. ○ Line Extension: The use of the same brand name within the same product line and represents an increase in a product line's depth.