MGMT 1 week 4 – Flashcards
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E-Gadgets is a chain of electronics stores that specializes in devices and gadgets incorporating cutting-edge technologies. The company has more than 170 stores located in large cities throughout the Southeast and Midwest. E-Gadgets has chosen the locations of its stores so that most customers living in upper middle class and wealthy neighborhoods can get to an E-Gadgets store in less than 15 minutes. E-Gadgets is providing its customers with: saturation marketing. scrambled merchandising. place utility. allocative utility.
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place utility Marketing intermediaries provide place utility by having products available at convenient locations.
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Businesses always welcome publicity because it presents the name of the firm and its products to the public for free. True False
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false As the chapter clearly explains, not all publicity is good publicity.
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The traditional promotion mix for a firm consists of the: strategic mix of price, product, place and advertising. marketing intermediaries employed by the firm to create a supply value chain. advertising, personal selling, public relations, and sales promotion used to reach a target market. various types of advertising media the firm selects to reach each specific target market.
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advertising, personal selling, public relations, and sales promotion used to reach a target market A promotion mix consists of the combination of all the promotional tools a firm uses to promote its products and services. Traditionally, this has included not only advertising, but also personal selling, public relations, and sales promotion.
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The strategy of first determining what the market is willing to pay, then subtracting a desired profit margin to determine a desired cost of production is called: cost-based pricing. target costing. skimming pricing. penetration pricing.
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target costing Demand-based pricing is very different from cost-based pricing. It makes cost an input to the product development process rather than an outcome of it. This 'backward engineering' strategy determines the targeted cost of production by subtracting the firm's desired profit margin from their intended selling price. A product is then designed to satisfy consumers and meet the target cost.
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Logistics is concerned: only with the flow of information, not the flow of materials and products. only with the flow of finished goods from the producer to the final consumer. with flows of materials, finished products, and information. with the flow of materials to the manufacturer and with the flow of finished products to the consumer, but not with the flow of information.
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with flows of materials, finished products, and information Logistics involves planning, implementing, and controlling the physical flow of materials, final goods, and related information.
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A good public relations program recognizes that the: firm must be independent of production and service activities. media are not to be trusted since they profit by selling bad news. firm must be willing to make changes in its policies and procedures. company must not ever admit fault.
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firm must be willing to make changes in its policies and procedures The second step in a good public relations program is to change policies and procedures that are not in the public interest.
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A firm's promotion mix consists of its pricing and distribution strategies. True False
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false A promotion mix includes advertising, personal selling, public relations and sales promotion.
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The Procter & Gamble Company is a major producer of bar soaps. In fact, Procter & Gamble produces Ivory, Camay, Lava, Safeguard, Zest, and Coast bar soaps that all claim a variety of benefits. These products are part of Procter & Gamble's __________ in bar soaps. product mix product line product concentration product store
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product line A product line is a group of products that are physically similar or are intended for a similar market.
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Phar-out Pharmacy will advertise a price of an over-the-counter drug at or below their cost. The intended goal of this loss leader strategy is to: create an upscale image. achieve a target profit. reduce the break-even quantity. build traffic and increase the customer base.
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build traffic and increase the customer base Charging low prices for certain products is a way firms attempt to entice customers to visit their stores and build a base of customers.
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In today's competitive market environment, traditional retailers will need to put more emphasis on providing form and place utility, and less emphasis on service utility. True False
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false Service utility is rapidly becoming the most important utility for many retailers because without providing personal service they could lose much of their business to direct marketing.
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Robbie Veath brings together buyers and sellers of used heavy construction equipment, and helps them negotiate the terms of the sale. However, Robbie never actually takes title to any of the equipment himself, nor does he provide any financing for the buyer. Robbie is acting as a: logistics specialist. channel captain. wholesaler. broker.
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broker A broker is a marketing intermediary who brings together buyers and sellers and helps negotiate exchanges. Brokers typically do not own the goods, offer credit, or assume risk.
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The primary difference between retailers and wholesalers is that: retailers sell consumer goods, while wholesalers sell industrial goods. retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers. retailers have sales of less than $100 million, while wholesalers have sales of $100 million or more. retailers operate in local areas, while wholesalers operate over a wide geographic area.
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retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers A wholesaler is a marketing intermediary who sells to individuals and organizations. A retailer is a marketing intermediary who sells to final consumers.
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Marketing goods and services to the B2B market relies more heavily on advertising than marketing efforts aimed toward the consumer market. True False
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false The strategies used in business-to-business markets are often quite different from those used in the consumer market because the buyers are so different. B2B buyers expect personal service, while advertising, a nonpersonal promotional strategy, can more effectively reach the large number of customers in the consumer market.
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Which of the following would be considered part of a firm's marketing mix? Determining the best pricing strategy for a product Designing the most efficient production plan Establishing a production schedule that enables the firm to meet forecasted sales Identifying the best source of funds to finance a firm's marketing activities
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determining the best pricing strategy for a product The marketing mix involves: (1) designing a want satisfying product, (2) setting an appropriate price for the product, (3) distributing the product, and (4) promoting the product. It does not directly involve financing, production, or employment decisions.
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Which of the following statements about marketing intermediaries is true? Marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers. All channels of distribution must contain at least one marketing intermediary. The costs added to products by marketing intermediaries usually exceed the value they add to products. Marketing intermediaries and their functions can be eliminated.
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marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers Intermediary organizations have survived in the past because they have performed marketing functions faster and cheaper than others could.
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Social media is not having an effect on the emerging era of mobile/on-demand marketing. True False
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false The digital age is increasing consumer power and this allows consumers to share information via many platforms, including social media.
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In the past, ___________________ was an important advertising strategy used in movies. Now it is also used with video games. It can be easily altered to reflect another advertiser, depending upon which advertiser has purchased ad time. sampling direct mail a commercial product placement
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product placement Product placement is the strategy of placing various brands in movie footage. The product or brand appears inside the movie itself. Advertisers pay to put their product inside movies, TV shows, and now, video games. It is easy to change the product sponsor inside a video game, particularly those that the player downloads to play.
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Nature's Sun, a company that designs and manufactures clothing for active people, focuses their marketing efforts on people who participate in strenuous outdoor activities such as running and mountain climbing. For example, the firm advertises heavily in magazines for runners. Nature's Sun is using _________ factors to segment its market. psychographic value demographic volume
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psychographic Nature's Sun is basing its segmentation on the interests and lifestyle of its customers. This approach is known as psychographic segmentation.
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In an effort to increase customer loyalty, management at Pratt International has worked to create a personal dialogue with their customers. This dialogue will enable Pratt to offer products that exactly meet their customers' needs and provide personalized service before and after the sale. Pratt International's strategy illustrates: a production orientation. niche marketing. relationship marketing. personalized promotion.
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relationship marketing Relationship marketing emphasizes pleasing customers by producing high-quality products that exactly meet their requirements. This approach to marketing also emphasizes retaining customers by offering fantastic service and special programs to reward long-time customers.
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Bethany just finished making a sales presentation to a major prospect. In the next step of the selling process, Bethany will likely be: processing the customer's order. answering customer questions and dealing with objections. closing the sale, by asking the customer to make a commitment. setting an appointment for the customer to meet with her boss.
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answering customer questions and dealing with objections Even if a salesperson makes an excellent presentation, customers are likely to have questions they want answered and concerns that they want resolved before they are willing to make a purchase. Salespeople should not view these objections in a negative way. Instead, they should look at them as an opportunity to work with the customer to deal with their concerns and forge a stronger relationship.
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When consumers decide to purchase a particular product, they: initially evaluate the product's package. base their decision on a brand name nearly all of the time. consider the total collection of benefits that the product offers. will search for the retailer that offers the lowest price.
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consider the total collection of benefits that the product offers When people buy a product, they evaluate all the benefits that the product offers. This combination of benefits is called the product's total product offer.
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Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle. True False
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false Different stages in the product life cycle call for different strategies.
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For a supply chain to be efficient, all of the activities must be performed by organizations that are owned by the manufacturer. True False
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false Supply chains are longer than channels of distribution and typically consist of many different organizations. A single supply chain might include farmers, mining companies, suppliers or all kinds, manufacturers, wholesalers and retailers. Thus, it often is impractical for a manufacturer to own all organizations in the chain. New software is available which makes it possible to coordinate the movement of goods and information so that consumer wants can be translated into products with the least amount of materials, inventory, and time.
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Businesses pay for product placement to have their products displayed in a TV episode of The Big Bang Theory or a feature movie. True False
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true Product placement refers to advertising dollars spent to put products into TV shows and movies where they will be widely seen.
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Marketing is a one-time activity, performed when a business is first established and introducing product in the market. Once a firm has fine-tuned its marketing activities, it can turn its attention elsewhere. True False
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false Marketing is an ongoing process. Companies must continually adapt to changes in consumer wants and needs in order to remain competitive.
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When reviewing the product life cycle model, it is important to remember that: companies earn their largest profits in the introduction stage. it is a theoretical model that may not be followed by all products. although all products go through each stage of the life cycle, the time frame can vary considerably from one product to another. the maturity stage accounts for the fastest growth in sales.
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it is a theoretical model that may not be followed by all products Not all products follow the life cycle, and particular brands may act differently. For example, while frozen foods as a generic class may go through the entire cycle, one brand may never get beyond the introduction stage.
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Good marketing research helps us identify what customers have purchased in the past and what they are likely to want in the future. Super Fun World is preparing to open its latest theme park in Shanghai. It will be collecting lots of information on what customers want while they are at the park. The marketing research company representing Super Fun might create original surveys with targeted questions that help it collect reliable information. This type of research is described by marketing professionals as the collection of _______. secondary data primary data formative data sequential data
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primary data Primary data is the collection of original information, by creating research techniques unique to this particular study. The creation of a survey is one type of primary data.
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Gabe intends to visit a variety of retailers of sound equipment comparing features, quality, and prices of different brands at each store. This behavior indicates that for Gabe a sound system is a shopping good. True False
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true Shopping goods and services are those that a consumer buys only after comparing value, quality, style, and prices from a variety of sellers.
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Whole grain breads, bagels, bread sticks, sandwiches, soup, and pastries are products that would be included in the product mix of El Trovodor's Bread Company. True False
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true Different products offered by El Trovodor's make up the company's product mix that it offers to its customers.
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An effective channel of distribution does more than simply ensure that goods are transported efficiently from producer to buyer. True False
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true A channel of distribution is concerned with transporting and storing goods, but it also involves the flow of communications, money, and the title to the goods, and ensures that the right quantity and assortment of goods will be available when and where needed.
