MKTG 2101 Exam 2
Unsought
Due to little product awareness or knowledge, _____________ products require aggressive advertising and personal selling by producers and resellers.
Market Penetration
During the Growth stage of the Product Life Cycle when sales and profits are rising, marketers looking to maximize market shareshould adopt a ______ pricing strategy.
Product
ExTel, a kitchen-cabinet manufacturer, positions its cabinets as quality furniture with superior craftsmanship and durability. This is an example of ________ differentiation?
Geographic
Facebook uses data to notify you of local events. Therefore, your news feed is different than your cousin that lives in Ohio. Facebook is using ________ segmentation variables.
maturity
GE is the world's leading manufacturer of diesel-electric locomotives with more than 15,000 locomotives currently operating around the globe. Given what you know about the macroenvironment and product life cycles, at what stage of the PLC (product life cycle) is this GE product?
Captive-product pricing
Gillette sells their initial razors very inexpensively, but the replacement blades for that razor are extremely expensive. The price for this unit is ______.
Co-branding
Heinz and Jack Daniels worked together to produce Jack Daniels grilling sauce. This is an example of ________?
captive-product
Hewlett-Packard sets the prices of its printers relatively low and sets the prices of its print cartridges quite high. This is a classic example of ________ pricing.
product-line pricing
Honda offers three separate models of its popular Accord sedan: an LX model with basic features and the lowest price; an SE model with more luxurious and advanced features that is mid-priced; and an EX model with top-of-the-line features as well as the highest price. Honda Accord's pricing is a good example of ________?
Demographic
In developing a new shoe, Reebok targeted the youth market. It used ________ segmentation to define its target market.
Cost-plus
Jimmy Dean works for a consumer goods company that produces breakfast sandwiches. He knows that the bread costs .50, eggs cost .25, cheese costs .05, and bacon costs .20. He wants to add a standard markup of 50% to the cost for the price of the product which would be $2. What type of pricing is this?
Usage rate
Loyalty programs such as Saxbys Rewards and TJ Maxx Rewards are examples of segmentation by ________.
Inelastic
Many people rely on a prescription drug to control their cholesterol levels. An increase in the price of the drug would have little effect on the quantity demanded because there are no substitutes for this drug and because people who take it have no choice but to continue taking it if they wish to stay healthy. The demand for the cholesterol drug is ________.
Dynamic pricing
On the Internet, price can easily be adjusted to meet changes in the marketplace. This is called ________.
concentrated (or niche)
Oskkosh Trucks, Inc., specializes in building heavy- duty fire, airport-rescue, cement, and garbage trucks. Instead of pursuing a small share of a large market, the firm goes after a large share of a few, relatively small segments. Oshkosh uses a ________ market-coverage strategy.
Usage rate
Starbucks wants to segment the market by _________. After research they found that 10% of consumers buy coffee from Starbucks everyday, making them heavy product users. After segmentation, loyal customers will receive a better discount than the consumers that come in once every three months.
Usage Occasion
Starting in February and ending sometime in late April, department stores promote the fact that they stock a wide range of formal attire for high school proms. The dresses and tuxedos are available year-round, but the heaviest promotion of these products occurs in spring, when most proms are held. This spring promotion to high school students is based primarily on ________?
Style, comfort, and sustainability
Startup shoemaker Rothy's posted more than $140 million in revenue in 2018. Rothy's has found a target market of women who demand ________ from their shoes?
Core product
The ________ for a guest paying for a night's stay at a hotel is rest and sleep.
Actual product
The ________ for a guest paying for a night's stay at a hotel is the use of a bed, bathroom, towels, dresser, light, and closet.
Augmented product
The ________ for a guest paying for a night's stay at a hotel would include express checkout and superb room service.
A skimming price
The average price Xerox charged when it introduced the first stand-alone fax machine was $12,700. This premium price was a way for Xerox to recoup some of the research and development costs that went into production. Xerox used ________?
Maturity
The iPhone is in the ___________ stage of the product life cycle, all factors of the device are at its highest and it is generating more profit than before.
whether to launch the new product
The major purpose of the test marketing stage in new-product development is to provide management with the information needed to make a final decision about ________?
Growth
Tina Temperpedicis VP of marketing for Orange ( an innovative tech company that makes computers, mp3 players and cell phones), they launched a cell phone that has a 3-D keyboard about 6 months ago. As of 2 weeks ago, sales have grown very fast and profits are increasing, but they have not reached peak sales performance. What stage in the product life cycle is the product in?A. Product development
Undifferentiated and Mass-Marketing
XYZ company has decided to ignore market segment differences and target the entire market with one offering that will appeal to the largest number of buyers. XYZ company has chosen a ___________ marketing strategy. A.Undifferentiated
Market-skimming
Vespa is coming out with a new scooter that can last 800 miles on 1 gallon of gas, but which is priced 40% higher than any other scooter on the market. What type of pricing is this?
seasonal
When Glow Gift Card Shop offers a price reduction to customers who buy Christmas cards the week after Christmas, it is giving a(n) ________ discount.
Promotional allowances
When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs, the firm is granting ________.
market-penetration pricing
When Pepsi introduced Pepsi Blue and priced it at half the regular price to attract buyers, Pepsi was using ________?
Brand Extension
When the brand Ralph Lauren, known for their clothing, began making lines of towels, sheets, and other home accessories, that was ________.
Providing competitors with an early look at the new product
Which of the following is NOT considered an advantage of test marketing new products?
television
Which of the following is most likely an example of a shopping product?
a gallon of milk
Which of the following is the best example of a convenience product?
Pricing is the most flexible element of the mix and can be changed quickly, Pricing is the only element of the marketing mix that does not represent costs, and Pricing is considered the number-one problem companies face
Which of the following is true of the pricing component of the marketing mix?
Trial
White Wave Inc., the maker of Silk soy milk, gave away free samples of its product to get consumers to try the first refrigerated soy milk sold in America. What stage of the consumers' adoption of a new product was White Wave Inc. trying to influence?
Competition has not yet taken sales away, Unit manufacturing costs are falling, and Promotion costs are spread over a larger volume
Why do profits increase during the growth stage of the PLC?
Geographic
A soup company found its canned nacho cheese sauce was too spicy for Americans in the East and not spicy enough for those in the West and the Southwest. As a result, the company's plants in Texas and California produce a hotter nacho cheese sauce than it produced in its other plants. The company is using ________ segmentation?
disregards the buyers' perceptions of value and ignores competitors' prices
Among the potential problems with cost-plus pricing is that it ________?
local marketing
Bob and Phyllis Cord own two retail stores, one in Pottstown, PA, and one in Norristown, PA. Though the towns are only 40 miles apart, the consumers at both stores are very different demographically. Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups. This is an example of ________?
Convenience Product
Cheryl is going on a date tonight. She realized she was out of toothpaste so she runs out to CVS. She grabs a tube of Crest off the shelf without any thought. For Cheryl, Crest toothpaste is a _______.
Maturity
Over the past 100 years, Binney and Smith's Crayola crayons have become household staples in more than 80 countries around the world. The company occasionally tinkers with the product's marketing mix to maintain solid market share. Crayola crayons are in the ________ stage of the product life cycle.
Market Segmentation
Pepsi wants to create a new campaign to appeal to a different audience but can't decide exactly who their target audience will be. They begin by dividing the market into smaller groups of buyers with distinct needs, characteristics and behaviors. This is an example of...
Differentiated
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.