MKT/421T: Marketing - Week 4

What are two examples of a direct to consumer marketing channel?

- buying something from the Home Shopping Network - ordering something from the Harry and David food and gift catalog

______ is the ratio of a product's perceived benefits and its price.

Value

The relationship between price and quantity sold is called the ______.

demand curve

What is the purpose of a marketing channel?

It makes possible the flow of products and services from a producer, through intermediaries, to a buyer.

Current profit ______ and target ______ are two strategies used by firms that are pursuing a profit pricing objective.

maximization; return

A firm must know its competitors' ______ in order to best set its own.

prices

Order the types of competitive markets from most competitive to least competitive. NOTE: The most competitive market should be the top item in your list. Instructions Choice 1 of 4. pure competition toggle button pure competition Choice 2 of 4. pure monopoly toggle button pure monopoly Choice 3 of 4. monopolistic competition toggle button monopolistic competition Choice 4 of 4. oligopoly toggle button oligopoly

pure competition monopolistic competition oligopoly pure monopoly

Price elasticity of demand is expressed as percentage change in ______ divided by the percentage change in ______.

quantity demanded; price

Break-even analysis is a technique that analyzes the relationship between which two variables at various levels of output?

total cost total revenue

The ratio of perceived benefits to price is a product's _____. (one word)

value

What statement is TRUE about marketing channels?

Indirect channels are longer than direct ones.

What type of distribution places products and services in as many outlets as possible?

Intensive

Compared to marketing channels for consumer products, business channels exhibit what two characteristics?

The channel is typically shorter. The channel tends to rely on one intermediary or none at all.

What four factors must be taken into consideration to determine the "right" price for a 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? Will it generate enough sales dollars to pay for the marketing of the product? What are customers willing to pay for the product?

Opentable.com is a reservation mechanism for restaurants. It uses the Internet to allow consumers to reserve tables in many establishments throughout the United States. It is an example of ______.

a digital marketing channel

The individuals or firms involved in the process of making products available to consumers or industrial users are referred to as ______.

a marketing channel

The demand for a product class, a product, or a brand, or the newness of a product can act as pricing ______ to limit a firm's options.

constraints

What are the two types of marketing channels?

direct and indirect

GE sells its large appliances directly to home and apartment builders but uses retail stores like Lowe's to sell to consumers, in a strategy known as ______.

dual distribution

Pricing objectives involves specifying the role of price in what two areas of an organization?

its marketing plans its strategic plans

What two strategies can be used as part of a firm's profit objectives?

maximizing current profits target return

Pricing ______ involve specifying the role of price in an organization's marketing and strategic plans.

objectives

Pricing ______ frequently reflect corporate goals, while pricing _____often relate to conditions existing in the marketplace.

objectives; constraints

Wholesalers are intermediaries who sell to ______.

other intermediaries

Break-even analysis can help evaluate the impact of changes in ______ and ______ on ______.

price; costs; profit

Why must a marketing manager consider pricing objectives and constraints?

to narrow the range of choices among the variety of pricing strategies

The sum of fixed and variable costs is known as

total cost

Profit = (____ x quantity sold) - (fixed cost + variable cost)

unit price

Total cost represents ______.

variable costs plus fixed costs

What is a demand curve?

a graph relating quantity sold and price

Small changes in price ______.

can have comparably big effects on company profit

Factors that limit the range of prices a firm may set are known as pricing ______.

constraints

What two elements are shown on a demand curve?

price * quantity sold

The percentage change in quantity demanded relative to a percentage change in price is known as

price elasticity of demand

Unit price times quantity sold equals ______.

total revenue

According to the profit equation, profit equals Blank______.

total revenue minus total cost

Which three items would be subtracted from the list price in order to arrive at the final price of a product?

trade-ins discounts rebates

Match the type of competitive market to its correct description. Instructions Pure competition Pure competition drop zone empty. Monopolistic competition Monopolistic competition drop zone empty. Oligopoly Oligopoly drop zone empty. Pure monopoly Pure monopoly drop zone empty. Many sellers who compete on nonprice factors One seller who sets the price for a unique product Many sellers who follow the market price for identical, commodity products Few sellers who are sensitive to each other's prices

Pure competition matches Choice Many sellers who follow the market price for identical, commodity products Monopolistic competition matches Choice Many sellers who compete on nonprice factors Oligopoly matches Choice Few sellers who are sensitive to each other's prices Pure monopoly matches Choice One seller who sets the price for a unique product

According to the price equation, the actual price is the list price less Blank______, plus extra fees.

incentives and allowances

Professionally managed and centrally coordinated marketing channels that are designed to achieve channel economies and maximize marketing impact are known as ______.

vertical marketing systems

A(n) ______ buys products from manufacturers and resells them to retailers.

wholesaler

A pricing constraint firms face is the price that its ______ are currently charging and likely to charge in the future.

competitors

A business channel is characterized by the fact that ______.

it tends to be shorter than consumer channels