marketing exam Flashcards
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convenience
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candy, laundry, detergent, and magazines are products which are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort
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capital items
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are industrial products that aid in the buy's production or operations, including installations and accessory equipment
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product mix width
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refers to the number of different lines the company carries
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product line filling
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involves adding more items within the present range of the line
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intangibility
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patients undergoing cosmetic surgery cannot see the result before the purchase airline passengers have nothing but a ticket and a promise that they and their luggage will arrive safely at the intended destination, hopefully at the same time. these examples illustrate the service characteristics
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perishability
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some doctors charge their patients when they do not show up for their appointment, reasoning that the value of the service was present at the appointment time and disappeared when the patient failed to show up. This example illustrates the service characteristic of
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unbranded version of the same product
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a brand has positive brand equity when consumers react more favorably to it than to a generic or a
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brand extension
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Starbucks introduction of packaged supermarket coffees is an example of
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a product
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anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need can be considered what
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core customer value
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consumers see products as complex bundles of benefits that satisfy their needs, but there are different levels of t he product. for example, when a consumer buys an iPad, he is buying entertainment, communication, and connectivity. This is considered to be which of the 3 elements of the produuct
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augmented product
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consumers see product as complex bundles of benefits that satisfy their needs, but there are different levels of the product. For example when a consumer buys a cup of starbucks coffee, he is buying more than a caffeinated beverage, but also an experience in the store that often is referred to as the 3rd place. this is considered to be which of the 3 elements of the product
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Augmented Products
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consumer products include several different categories of goods that consumer buy that are classified primarily by the ways in which consumers buy them
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TQM
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for most competitive companies, customer-driven quality has become a way of doing business. one of the most commonly used approaches is
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brand
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many experts say that the most distinctive skill a professional marketer might have is the ability to build and manage a
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over pack the item
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packaging has increases roles it plays for marketers what would the marketing manager want to avoid in designing the packaging
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describing the product and promoting the brand
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typically the package label is used in several ways by the marketer beyond simply identifying the product. what are the other functions of the label?
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immeasurability
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greater than 80% of the american economy is derived from the service sector. there are several dimensions on which service marketing differs from product marketing, including four of the following. Which dimension could equally apply to services and products
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internal service quality
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successful service providers understand the elements of the service profit chain, which links service firm profits with employee and customer satisfaction. Example: send all bartenders to "beer school" to learn how different beers are made. This is what element of the service profit chain
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buyer-seller interaction during the service encounter
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interactive marketing means that service quality depends heavily on the quality of the
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brand equity
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firms like coca-cola, Harley-Davidson, apple, and google measures their respective brands ability to capture consumer preference and loyalty. what is the differential effect that knowing the brand name has on customer response to the product and its marketing called
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positioning, name selection
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the major brand strategy decisions a firm has to make in building a strong brand begins with.....and is followed by brand......
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beliefs and values
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a brand such as apple, which has deep relationships with loyal customers, positions the brand on the highest level of positioning using what dimension
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intrapreneurship
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googles innovation time off and 3M programs in which employees are granted time away from their regular duties in order to develop new innovations.
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crowdsourcing
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samsungs "open innovation" program connects the firm with a broad array of outside collaborators and entrepreneurs to develop new products and technologies. through the program, samsung creates alliances with top industry and university researchers around the world, participates actively in industry-wide forums, and seeks out and invest in promising startup companies. This program is an example of
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concept testing
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calls for testing new product concepts to groups of target concumers
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product concept
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a detailed version to the idea started in meaning consumer terms
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maturity stage
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is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers
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growth stage
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the stage of the product life cycle, firms often shift some advertising from simply building awareness toward building stronger brand conviction and purchase behaviors
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product stewards
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as a result of growing litigation and increased product liability insurance, some companies are now appointing whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems
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the challenge of new product development
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the concept of product life cycle had marketers use presents a challenge because all products eventually decline. A firm must be good at developing new products to replace aging ones
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competitors legally restricting market entry simply because the product is new
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there are several reasons why new products fail. Which one of the following reasons that has been given for a new products failure can the marketing manager ignore?
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idea generation, commercialization
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rather than leaving new products to chance, a company must carry out strong new product planning and set up a systematic, customer-driven new product development process for finding and growing new product. there are 8 major steps in this process beginning with......and ending with.....
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intrapreneurial programs
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in the idea generation stage, firms can generate new product ideas from internal and external sources. What is an internal source for idea generation
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reduce the number of generated issues
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if the purpose of idea generation is to create a large number of ideas, what are all the succeeding steps in the new product development process designed to do
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is it worth doing?
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what is the 3rd question the marketer should ask
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maturity
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the five stage product life cycle (PLC) defines the -----stage as the one in which sales slow down because the product has achieved adoption by most potential buyers. profitability usually levels off
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product development
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during which period of the PLC are sales zero?
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product form
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the PLC concept can describe several different categories of products of interest to marketers, what one has the fairly traditional PLC shape and is represented by items such as tablets, wine coolers, and wearable PC and internet connections?
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style
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some PLCs are short and some endure a long time. The PLC for a product class, such as a kilt like the scottish tartan skirt, lasts for several centuries and is a basic, distinctive mode of expression. The kilt is best described as a?
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pioneer
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legalzoom was the first web site developed to assist consumers in doing legal transaction such as writing wills, getting divorced, and doing simple patent and trademark work online without hiring a lawyer. Legalzoom is a----- in the industry starting out in the introductory stage of the PLC
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having to legally create product stewards to protect consumers
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there are many legal responsibilities facing the marketing firm. which of the following is the firm exempt from having to do it legally in managing its product offering
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how much to standardize or adapt their products and services
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international product and services marketers face special challenges. First, the firm must figure out what products and services to introduce and in which countries. What is the second issue the firm must address?
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professional and business service industries, such as accounting, managment consulting, and advertising
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many entrants to the global marketplace have been driven or pulled into the global arena as they followed their client companies that were entering global competition. For which of the following industries is this follow-through behavior most common?
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price
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is the only element in the marketing mix that produces revenue
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Price
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is typically considered the most flexible of the marketing mix element
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value-added
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even as fungal consumer spending habits linger in the wake of the recession, some movie theater chains are adding amenities, such as upgraded leather seating and seat side service, and charging more for tickets rather than cutting services to maintain a lower admission price. this example illustrates the concept of?
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cost based pricing strategy
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for companies such as walmart or southwest airlines, which have worked hard to position themselves as the low cost producers in their industries, it makes great sense to set prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for the company's effort and risk. this approach is known as ?
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demand curve
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shows the number of units the market will buy in a given time period at different prices that might be charged
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price elasticity
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refers to how responsive demand will be to change in price
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is it the only variable that produces revenue?
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the pricing variable is closely related to the other four elements of the market mix. However, price differs dramatically from product, placement, promotion in terms of the speed with which it can be changed. What factors differentiates price as a market mix variable?
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customer value-based pricing, cost based pricing, and cometition based pricing
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what is the basic strategy a marketing manager can choose in determining price?
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value based pricing
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a marketer considers a buyers perceptions as key to pricing and product design. the marketer considers all other marketing mix variables before the marketing program is set. What pricing strategy is being used?.
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value-based pricing
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in designing a new product, a firm hosts may focus groups of product owners and non owners to discuss the product concept, product features, and relative price. Which type of pricing strategy is the firm using to set the price and design of a product that meets the perceived consumer value?
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high-low pricing
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stores like target, macys, and JC Penneys use a pricing strategy, which is directly the opposite of EDLP, everyday low prices. What pricing tactic do they use that involves charging higher prices on an everyday basis and frequent promotions to lower prices temporarily on selected items through sales, coupons and other promotional activities?
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good value pricing
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a cruise ship is having trouble filling all the cabins on voyages and decided to offer passengers a free second cabin for children accompanying their parenrs. the initial price of the voyage, which includes the cabin and all the meals stays the same. Which pricing tactis is the cruise line using to increase occupancy
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value added pricing
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a car dealership in upstate NY where winters are cold and snowing has experienced lower sales for auto repairs. To capture a larger portion of the community's car repair. it has offered free car washes all year and guarantees to return the car clean and dry even in drought conditions when water usage is regulated weather. Which pricing tactic is in operation
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cost based pricing
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a company that sets prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for the company's effort and risk is using which pricing strategy?
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overall marketing strategy, objective, and marketing mix
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determining price does not occur in a vacuum. In price setting, what other internal variables influence the price finally chosen
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to create government intervention?
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pricing can play an important role in helping to accomplish company objectives as many levels. Which one of the following plays an insignificant role in the marketing manager's task of price setting
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target costing
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soda machines have the prices set at $1,$1.25, an so on, in convenient price amounts, not at $1.32. Which pricing tactic is used in pricing in vending machines
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pricing departments
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in industries such as airlines, railroads, and oils, in which pricing is a key factor and there are very high fixed costs, typically who is responsible for making pricing decisions
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there is a range of prices
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in a monopolistic competition market, which consists of many buyers and sellers trading over a range of prices rather than a single market price, how many do prices vary between competitors.
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market skimming pricing strategy
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when a phone company releases its greatly anticipated new phone models at a premium price, only to discount them slowly over time
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market penetration
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companies that set a low initial price in order to attract a large number of buyers quickly and win a large market share are employing a
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product bundle
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combo meals at fast food restaurants are an example of
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product line
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is an appropriate strategy for companies that offer multiple products within a given category with varying levels of quality or functionality
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product form pricing
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a round trip economy seat on a flight from NY to London might cost $1000, a business-class seat on the same flight might cost $4700 or more. This type of segmented pricing strategy is known as?
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a reference price
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A grocery store places its store brand picante salsa, priced at $2.49, directly next to bottles of national brand Pace picante salsa, priced at $3.19. In so doing, the store is encouraging the use of the higher priced item as
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fighter
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if a specific market segment is being lost to lower-priced rivals and price sensitive customers are unresponsive to arguments of higher quality, a firm might choose to introduce a new---- brand at a lower price point rather than lower the price and quality perceptions of its premium quality brnads
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price gouging
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when gasoline prices rised rapidly, angry customers often accuse the major oil companies of -----, or enriching themselves at the expense of consumers
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pricefixing
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federal legislation precluded sellers from talking to competitors prior to setting prices, an illegal practices known as
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discrimination
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the robinson-patman act seeks to prevent unfair price----- by ensuring that sellers offer the same price terms to customers at a given level of trade
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pricing structure
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typically a firm does not set a single price but instead uses that concept to determine prices
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market-penetration pricing
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companies introducing a new product can choose between 2 broad strategies. One is market-skimming pricing. what is an alternative strategy
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price skimming
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in the early periods of the introduction of HDTV, the prices were extremely high. what strategy us considered to be used>
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market penetration
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When Bic introduced disposable razors, the product and market met several criteria for using ________ pricing. The market was price sensitive, and there were substantial economies of scale in distribution and production.
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captive-product pricing
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Amazon developed the Kindle electronic book reader and sells it at a reasonably low margin. The firm uses which pricing strategy to capture additional profits through the sale of easily downloaded online books and magazines?
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fixed fee; usage rate
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In the case of services, captive-product pricing is called "two-part pricing." The price of the service is broken into two parts for cell phones and services: the ________ for the phone, which is often sold at a loss, and the ________ for the ongoing monthly phone and data service that are contracted with the carrier.
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cash
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Once a product or service has moved out of the introductory stage, the manager might have to make adjustments to the pricing strategy. One way is to offer buyers discounts. If the seller offers the buyer 3/10, net 30, the buyer is getting what kind of discount?
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product-form segmented pricing
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On a flight to Hawaii, the passengers seated next to each other bought their tickets two months apart, one online and one from a travel agent. One paid nearly three times what the second one did. What pricing tactic did the airline company use?
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psychological pricing
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A woman is buying a bottle of cologne as a gift for someone. She prefers the smell of the one that is $23.00 but considers the person who will receive the gift knows the second one is $50.00 a bottle. She buys the more expensive one responding to what element of pricing?
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if a price war ensues
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There are several situations for which price cutting is warranted and many conditions under which price cutting is not advised. In which of the following situations is the marketing manager advised to maintain the price?
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when requesting government regulations
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under which of the following conditions is a firm most likely to be perceived as a price gouger when raising prices
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the firm should expect that some competitors or most will match a price change
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when a firm initiates a price decrease, it must seriously consider how competitors will react. Although not all competitors are alike, what is the firm advised to assume about competitor reaction
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it is price-fixing, which is illegal
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when two or more firms in an industry meet to discuss prices and agree on certain price levels, what statement about this behavior is accurate
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retail price maintenance
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Perfume manufacturers primarily sell their products in department stores. They do not want to reduce the price of the perfumes or have them be put on sale by the department stores. Therefore, the manufacturers lease departments in the store because they are not permitted to insist on a set price. That would be an illegal pricing practice, which is called ________.
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deceptive pricing
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The Federal Trade Commission warns sellers not to advertise a price reduction unless it is a savings from the usual retail price, "factory" or "wholesale" prices unless such prices are what they are claimed to be, and comparable value prices on imperfect goods. All of these actions and scanner fraud are examples of what illegal pricing tactic?
