Intro to Buisines Chapter 12 – Flashcards

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List the stages of the product life cycle in sequence
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Introduction Growth Maturity Decline
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The process of managing the movement of goods from raw materials to the ultimate consumer and any necessary returns or recycling is:
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supply-chain management
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A____ ____ is a trial mini-launch of a product in a limited area that represents the potential market.
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test market
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Odd/even pricing
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Consumers will buy more of a product for $9.99 than $10 because it seems like a bargain at the odd price.
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Symbolic prestige pricing
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Consumers associate high prices with high quality and are willing to pay the higher price.
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Products that do not carry the manufacturers name, but carry the distributor or retailer name are called
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private label brands private distributor brands
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List the steps in new product development in order. List the first step at the top.
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Idea development New idea screening Business analysis Product development Test marketing Commercialization
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Penetration price strategy is the practice of pricing a product ____ to attract ____ customers and discourage competition.
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low / new
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What is the most flexible variable in the marketing mix?
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Price
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____ buy products from manufacturers or other intermediaries and sell them to consumers for home and household use.
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Retailers
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Identify the sales promotions
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Coupons, samples and demonstrations, store displays.
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Quantity
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Discounts to encourage large volume purchases
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Seasonal
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Discounts to encourage purchases out of season
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Promotional
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Discounts on selected products designed to increase customer interest.
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During ______ a complete marketing strategy is introduced and the product is launched for commercial success.
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Commercialization
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Brands that are initiated and owned by the manufacturer, such as Xerox or Sony, are called
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Manufacturers brands
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Private distributor brands are products that do not carry the name of the _____, but carry a distributor or retailer name.
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Manufacturer
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Identify the information typically presented on product labels.
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Nutrition Information, Contact Information, Ingredients, Care Instructions, Suggestions for use.
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The promotion mix consists of:
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Sales promotions, personal selling, advertising, publicity
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The _____ is the external container that holds and describes the product, and influences customers attitudes and buying decisions.
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packaging
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The combination of product lines offered by a manufacturer are called:
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product mix
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What is the design and operation of facilities to receive, store, and ship products?
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Warehousing
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What is defined as the value placed on an object exchanged between buyer and seller?
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Price
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What is the common new product pricing strategies?
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Price skimming, Penetration pricing
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A _____ _____ is the sequence of linked activities that must be performed to move goods from the producers to the ultimate consumer
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supply chain
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The promotional tool that stimulates consumer purchasing by adding value or other incentives for buyers is known as sales ______
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promotion
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Which questions will be answered during the business analysis stage of new product development?
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Is the product compatible with the marketplace? Will the product be profitable?
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What are the characteristics of advertising?
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Uses various media, Nonpersonal communication
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What products require research and extensive shopping effort as consumers know what they want and are not willing to accept a substitute?
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Specialty
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Using promotion to create and maintain an image of a product in buyers minds is called
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promotional positioning
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Paid, nonpersonal through various media by organizations and individuals who are in some way indentified in the message is known as
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advertising
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A new computer may be purchased directly from the manufacturer or from a retailer that sells electronic products. The group of organizations that move products from the producer to cosumers is a:
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marketing channel
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The pricing strategy that calls for a new product being priced high to make optimum profit while there is little competition is called
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price skimming
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What is the following that may be a measure of product quality?
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Durable, Reliable, Easily maintained
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What are the two key elements of marketing ?
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The target market, The marketing mix.
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A group of products that are physically similar or are intended for a similar market are referred to as a :
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product line
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Private distributor brands are products that do not carry the name of the ____ , but carry a distributor or retailer name.
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manufacturer
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A major wireless carrier designed a variety of advertisements to promote its new phone. Magazine, online, television, and billboard advertisements were created to attract the companys target market. This is an example of:
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Advertising campaign
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Publicity differs from advertising in that it is
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unpaid
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In the ____ phase, the salesperson is researching potential customers and choosing those most likely to buy.
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prospecting
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A ____ is a name, symbol, or design that identifies the goods or services of one seller or group of sellers.
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brand
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What are common pricing objectives?
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Survival, maintaining the status quo, maximizing profits and sales, boosting market share.
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What stage of the product life cycle is a product likely in if consumer awareness is limited and profits are negative?
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Introduction
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Products created for household or family use intended for daily living are
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consumers
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Keys to developing effective marketing strategy
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1. Maintain right marketing mix 2. Satisfy target market 3. Long-term customer relationships
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Stages in Developing New Products
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1. Idea development 2. New idea screening 3. Business analysis 4. Product development 5. Test marketing 6. Commercialization
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Consumer Products - Convenience products
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- purchased without doing research into price - widely available - often for immediate consumption
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Consumer Products - Shopping products
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- consumer has compared competitors prices and has shopped around - price, features, quality, style, service and image all influence the decision to buy
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Consumer Products - Specialty products
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- require the greatest level of research and shopping effort - not willing to accept substitutes - consumers know exactly what they want and go out of their way to find it - price not the strongest consideration
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Business products
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Used directly or indirectly in the operation or manufacturing processes of a business - raw materials - major equipment - accessory equipment - component parts - processed materials - industrial services
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Product line
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Group of closely related products that are treated as a unit because of a similar marketing strategy, production, or end-use
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Product Mix
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All the products offered by the company
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Product Life Cycle
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1. Introduction 2. Growth 3. Maturity 4. Decline
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Branding
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The process of naming and identifying products 1. Name 2. Term 3. Symbol 4. Design
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Trademark
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A registered brand with the Canadian Intellectual Property Office - protected from use by any other firm
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Manufacturer brands
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Initiated and owned by the manufacturer to identify products from production to point of purchase
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Private distributor brands
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Cost less than manufacturer brands - owned and controlled by wholesaler or retailer
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Generic Brands
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No brand name often come in simple packages and carry their own generic name
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Packaging
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External container that holds and describes the product - Protection - Economy - Convenience - Promotion
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Product Quality
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The degree to which a good, service, or idea meets the demands and requirements of customers
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Pricing Strategy
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1. Maximize profits and sales 2. Boost market share 3. Maintain the status quo 4. Survival
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New Product Pricing
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1. Price skimming 2. Penetration pricing
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Price skimming
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Charging the highest possible price that buyers that want the product will pay
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Penetration pricing
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A low price designed to help the product enter the market and gain market share rapidly
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Psychological Pricing
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- Odd/even - Prestige pricing
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Symbolic/Prestige Pricing
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- the image that high prices equals high quality
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Price Discounting
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1. Quantity discounts 2. Seasonal discounts 3. Promotional discounts
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Quantity discounts
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- the economy of purchasing in larges quantites
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Promotional Discounts
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- Improve sales by advertising price reduction of selected products to increase customer interest
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Marketing Channel
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- a group of organizations that moves products from their producer to consumers
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Retailers
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- buy products from manufacturers and sell them to customers for uses other than resale
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Wholesaler
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Intermediaries that buy from producers or other wholesalers and sell to retailers
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Intensity of Market Coverage
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Depends on buyer behaviour, the nature of the target market and competition 1. Intensive 2. Selective 3. Exclusive
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Intensive Market
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Makes a product available in as many outlets as possible
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Selective Market
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Uses only a small proportion of all available outlets to expose products
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Exclusive Market
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Exists when a manufacturer gives a middleman the sole right to sell a product in a defined geographic territory
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Physical Distribution
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Includes all the activities necessary to move products from producers to customers - creates time, and place utility by making products available when they are wanted, with adequate service and at minimum cost 1. Inventory 2. Transportation 3. Warehousing 4. Materials handling
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Promotion Strategy
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- Goal is to communicate with individuals, groups, and organizations - Encourages marketing exchanges - Used to influence opinions, and attitudes toward organizations, people, and causes 1. Advertising 2. Personal selling 3. Publicity 4. Sales Promotion
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Integrated Marketing Communication
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The process of coordinating the promotion mix elements and synchronizing promotion as a unified effort
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Advertising
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A paid form of nonpersonal communication transmitted through a mass medium (tv commercials, magazine advertisements, or online ads) - And advertising campaign involves designing a series of advertisements and placing them in various media to reach a particular target audience
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Internet Marketing and Social Media
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- the use of online advertising is increasing as companies are attracted to its wide reach and ability to interact with customers - the internet has become a vital part of most companies integrated marketing communication plan
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Mobile Marketing
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- the use of a mobile device to communicate marketing messages - Global growth Most common mobile methods used 1. Apps or Applications 2. Text/SMS messages 3. QR codes 4. Proximity/ Location based marketing
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Personal Selling
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A direct two-way communication with buyers and potential buyers
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Guerrilla Marketing
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Pursuing traditional marketing through unconventional means - consists of attracting consumer attention to their company using unique and/or creative methods
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Publicity
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A non-paid, non-personal communication through mass media channels - mainly informative or descriptive - Can be extremely important for a company - Buzz marketing
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Buzz marketing
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Marketers attempt to create a trend through publicity
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Sales Promotion
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Uses such items as coupons, contests, and free samples to persuade buyers to purchase products - stimulate customer purchasing - enhances other promotional efforts - generally less expensive than advertising
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