MKTG Exam 3
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.
What four factors must be taken into consideration to determine the "right" price for a product?
Will the product provide a profit for the company? Will enough money be made to pay for the development and production of the product? What are customers willing to pay for the product? Will it generate enough sales dollars to pay for the marketing of the product?
Packaging and labeling not only provides benefits for the consumer, but if done successfully in a way that puts a firm in a favorable position compared to its competitors, it can provide ______ for the firm.
a competitive advantage
Price Fixing
a conspiracy among firms to set prices for a 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
Experience Curve Pricing
a method of pricing based on the learning effect, which holds that the unit cost of many products and services declines by 10 percent to 30 percent each time a firm's experience at producing and selling them doubles.
For nonprofit organizations, the most common form of publicity is
a public service announcement
A sequence of firms that perform activities required to create and deliver a product or service to ultimate consumers or industrial users is known as
a supply chain
Standard Markup Pricing
adding a fixed percentage to the cost of all items in a specific product class
Each intermediary in the marketing channel
adds value in terms of the functions it performs
Modifying the Product
altering one or more of a products characteristics to increase its value to customers and increase sales
Inconsistency
an opera performer may have a bad cold and give a worse-than-typical performance when you see her
Services can be classified as to whether they are delivered by people or equipment, whether they are for-profit or nonprofit, and whether or not they
are government sponsored
A gap analysis is done by
asking consumers about both their expectations of and experiences with a service
Why is price an important indicator of quality that consumers use when purchasing services?
because services are intangible, evaluating quality directly is difficult
Who is responsible for managing existing products through the stages of the life cycle?
brand manager
The set of human characteristics, such as physical traits associated with a brand, is the definition of
brand personality
Due to the fact that services are intangible and more difficult to describe, Blank______ is very important because it is a means of differentiation and helps to convey an image of quality.
branding
The integration of the marketing mix with efforts to influence consumer demand is known as
capacity management
What are the three major types of vertical marketing systems?
corporate, contractual, and administered
A customer contact audit is done by
creating a flowchart of the points of interaction between the consumer and the provider
Much more than when marketing products, service providers such as seaside hotels and restaurants have a dilemma of matching
demand and capacity
What are two responsibilities of a product manager?
developing and executing a marketing program for a product line, managing existing products through the stages of the life cycle
The way a product spreads through the population is known as
diffusion of innovation
Amazon and Orbitz are both part of ______ marketing channels. Multiple choice question.
digital
What are two criteria often used in naming successful brands?
emotional names, and names without legal restrictions
In order to meet customer expectations and sustain customer loyalty, firms that engage in internal marketing focus on what three elements?
employee skills, employee commitment, and employee attitudes
When Nestle or McDonald's modify their packaging to use more recyclable material, they are responding to what challenge regarding packaging and labeling?
environmental concerns
When a firm sells all its products under one ______, such as Pepperidge Farm, the individual products benefit from the overall brand awareness associated with it.
family brand
Multiproduct branding is also called which two of the following?
family branding and corporate branding
What are four common ways service businesses refer to price?
fares, charges, fees, and rates
Which two of the following would be considered services?
financial advice, and an airline trip
Services marketing differs from that of tangible goods, and many firms have adopted a strategy to
manage additional elements, on top of product, price, place, and promotion
Pricing ______ frequently reflect corporate goals, while pricing ______ often relate to conditions existing in the marketplace.
objectives; constraints
Because services are intangible and there may be few other available cues for the customer to judge, they frequently use ______ as an important indicator of a service's quality.
price
What term refers to money or other considerations (including other products and services) exchanged for the ownership or use of a product or service?
price
The percentage change in quantity demanded relative to a percentage change in price is known as
price elasticity of demand
FOB Orgin Pricing
price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur
Break-even analysis can help evaluate the impact of changes in ______ and ______ on ______. Multiple choice question.
prices; costs; profit
When P&G added vitamins to its Pantene shampoo and conditioner formulas, it used ______ to revamp the brand.
product modification
When a firm uses branding to identify its products and distinguish them from its competitors, its uses what elements to do so?
product names, unique symbols, and packaging design
What are two typical ways that a service can be classified?
profit/nonprofit, and delivery by person or equipment
Emphasis on availability, location, quality, and service, as well as a physical representation of the service encounter should be included in an organization's
promotional programs
Price elasticity of demand is expressed as percentage change in _____ divided by the percentage change in ______. Multiple choice question.
quantity demanded; price
The growth stage of product life cycle is characterized by more competition and a
rapid increase in sales
Quantity Discounts
reductions in unit costs for a larger order
Basing-Point Pricing
selecting one or more geographical locations from which the list price for products plus freight expenses are charged to the buyer
The scale that defines what companies bring to the market, from good-dominant to service-dominant offerings, is known as the ___ continuum
service
What are two reasons that services are difficult for consumers to evaluate?
services cannot be displayed or demonstrated prior to purchase. service providers may vary with each delivery of the service
Compared to marketing channels for consumer products, business channels exhibit what two characteristics?
the channel tends to rely on one intermediary or none at all. The channel is typically shorter
Yield Management Pricing
the charging of different prices to maximize revenue for a set amount of capacity at any given time
Intangible
the consumer cannot evaluate the quality of an airline flight before getting onboard
As it relates to the place (distribution) element of the marketing mix, what two things become the tangible components of a service?
the distribution site, and service deliverer
Inventory
there are high costs associated with paying a physician to see patients but no one schedules an appointment
Why must a marketing manager consider pricing objectives and constraints?
to narrow the range of choices among the variety of pricing strategies
is equal to the unit price for a product times the quantity of it sold.
total revenue
Modifying the Market
trying to find new customers, increase a products use among existing customers, or create new use situations
Channel conflict occurs between
two different channel members
In the profit equation, what is multiplied by quantity sold?
unit price
The ratio of perceived benefits to price is a product's
value
Small changes in price
can have comparably big effects on company profit
Efforts to influence consumer demand for a service with changes in marketing mix elements is known as ___ management
capacity
Promotional Allowances
cash payments or an extra amount of "free goods" awarded sellers in the marketing channel for undertaking certain advertising or selling activities to promote a product
Repositioning the product
changing the place a product occupies in a consumer's mind relative to competitive products, sometimes by changing by changing marketing mix elements to bolster sales
Price Discrimination
charging different prices to different buyers for products of like grade and quality
Target Pricing
consists of (1) estimating the price that ultimate consumers would be willing to pay for a product, (2) working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers, and then (3) deliberately adjusting the composition and features of the product to achieve the target price to consumers.
Factors that limit the range of prices a firm may set are known as pricing
constraints
The innovation diffusion process refers to the rate at which
consumers adopt a given product or service
Products in the ______ stage of the product life cycle tend to consume a disproportionate share of management and financial resources relative to their future worth. Multiple choice question.
decline
Loss-Leader Pricing
deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products with large markups
The relationship between price and quantity sold is called the
demand curve
What are the two types of marketing channels?
direct and indirect
What marketing channel allows consumers to buy products by interacting with various print or electronic media instead of a face-to-face meeting with a salesperson?
direct to consumer marketing
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
There may be several variations of product ______ within one product class, such as cassette tapes, compact discs, and digital music as variations of prerecorded music.
form
The benefits packaging and labeling provide a product include which of the following?
functional, communication, and perceptual
One of the most effective methods to assess how well an organization is delivering service to its consumers is use a(n) _____ analysis, questioning them on their expectations and experiences.
gap
The service continuum is a scale that describes an organization's offerings in terms of
how tangible or intangible they are
Management of the physical environment for services is sometimes known as ______ management.
impression
Product repositioning means changing the product's position
in the minds of consumers
What statement is TRUE about marketing channels?
indirect channels are longer than direct ones
The over 1 million ATM machines owned by Visa are an example of Visa's strategy to provide a(n) Blank______ distribution of cash. Multiple choice question.
intensive
What type of distribution places products and services in as many outlets as possible?
intensive
Because of the inseparability of services, which of the following is true about the place (or distribution) of them?
intermediaries involved in the distribution are rare
Which two factors are unique with respect to services, and are part of the four I's?
inventory, inseparability
A ______ identifies the product or brand, the package contents, and other information like where the product was made, when, and by whom.
label
Those activities that focus on getting right amount of the right products to the right place at the right time at the lowest possible cost are known as
logistics
Select two key characteristics of the maturity stage.
marketing costs are directed at holding market share and intense competition on price occurs
Pricing objectives involves specifying the role of price in what two areas of an organization?
marketing plans ad strategic plans
What two items should be considered as part of total logistics cost?
materials handling and warehousing, and order processing
What are two key characteristics of the introduction stage of the product life cycle?
minimal profit and slow growing sales
The objective of logistics management in a customer-driven supply chain is to ______ while delivering ______. Multiple choice question.
minimize logistics costs; maximum customer service
Prestige Pricing
setting a high price so that quality or status conscious consumers will be attracted to the product and buy it
Penetration Pricing
setting a low initial price on a new product to appeal immediately to the mass market
Above-, At-, or Below-Market Pricing
setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark
Customary Pricing
setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors
Target Return-on-Sales Pricing
setting a price to achieve a profit that is a specified percentage of the sales volume
Target Return-on-Investment Pricing
setting a price to achieve an annual target return on investment (ROI)
Target Profit Pricing
setting an annual target of a specific dollar volume of profit
Dynamic Pricing Policy
setting different prices for products and services in real time in response to supply and demand conditions
Product-Line Pricing
setting of prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item
Fixed-Price Policy
setting one price for all buyers of a product or service
Odd-Even Pricing
setting prices a few dollars or cents under an even number
Skimming Pricing
setting the highest initial price that customers really desiring the product are willing to pay
Price Lining
setting the price of a line of products at a number of different specific pricing points
Inseperable
students' evaluations of their education will be influenced primarily by their perceptions of instructors, counselors, librarians, and other people at the university.
Price War
successive price cutting by competitors to increase or maintain their unit sales or market share
Cost-Plus Pricing
summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price
Carlos' firm manufactures custom-made furniture that is sold through various furniture retailers. Carlos sources the wood he needs from various lumber manufacturers and uses a distributor to get his products to the retail stores for sale. The suppliers of the wood, the distributor, and the retail stores are all part of a
supply chain
The product life cycle is described as
the evolution a product goes through in the marketplace, from introduction to decline
A gap analysis evaluates service providers on the difference between
the expectations and experiences of service quality dimensions
Bundle Pricing
the marketing of two or more products in a single package price
Predatory Pricing
the practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market
Everyday Low Pricing
the practice of replacing promotional allowances with lower manufacturer list prices
Uniform Delivered Pricing
the price the seller quotes that includes all transportation costs
When designing a supply chain that meets customer requirements and aligns with strategy, what are the two goals that firms try to achieve?
to be more responsive, and to be more efficient
Market modification strategies include finding new customers, increasing a product's Blank______, and creating new use situations.
use
Professionally managed and centrally coordinated marketing channels that are designed to achieve channel economies and maximize marketing impact are known as
vertical marketing systems
