Marketing Final Exam – Flashcards
Unlock all answers in this set
Unlock answersquestion
Zappos conducts one-on-one interviews with past Zappos customers. Example of what type of research?
answer
exploratory
question
Candy bard should most likely be sold using which type of target market coverage?
answer
intensive distribution
question
the first step in developing a pricing strategy is to:
answer
specify the pricing
question
When Huggies introduced a full line of buggies baby and hugggies toddler toiletries is a use of?
answer
Multiproduct branding
question
Xunrui Communications, an upstart new company, sells smartphones for $65 vs. the usual samsung and apple prices of $250-$600. What pricing strategy is this?
answer
Penetration Pricing
question
Apple now operates over 400 retail stores around world to sell its innovative products. Apple Uses:
answer
Forward Integration
question
Further Tax increases on Tobacco Users is price inelastic (less subject to change) for which type of smoker:
answer
Life Long Smokers
question
A new ice cream company wants to use penetration pricing. Which condition argues against this strategy?
answer
The ice cream market exhibits inelastic demand over a fairly broad range of prices.
question
Normal price is $200 and demand 100. Drop price to $140 and sell 90 snow shovels per year. What is the Demand for snow blowers?
answer
Price Inelastic (Necessity)
question
Which is a source of vertical conflict?
answer
Microsoft provides HP laptops more prominent point-of-purchase locations in retail stores than comparable laptops from Sony.
question
Which of the following statements about price elasticity of demand is most accurate?
answer
The more substitutes a product has, the more likely it is to be elastic.
question
A drought in denver caused the price of water to increase in boulder. What would this effect be of this change on the breakeven point for Puddles Carwash?
answer
It would Increase; because the business' variable cost increased.
question
Pasta Jays "kids eat free" on tuesdays is an example of which pricing strategy?
answer
Loss-Leader pricing
question
Which one of the following statements regarding bindle pricing is most accurate?
answer
Bundle pricing often provides a lower total cost to buyers and lower marketing costs to sellers.
question
Marketers use this research method when developing initial hypothesis.
answer
Exploratory
question
The ratio of perceived benefits to price.
answer
Value
question
"Red Bull Gives You Wings" is claimed as deception if a lawyer considers:
answer
Would a reasonable consumer believe this claim?
question
According to Harvard Business article, how can we stop consumers form fixating on price>?
answer
-Charge a single price across a product line -Change the way your price is structured -Overprice to stimulate curiosity
question
Which of the following is the most accurate regarding the use of statistical inference in market research?
answer
Drawing an unbiased probability sample allows us to draw conclusions about a broader population.
question
What are elements involved in Step 1 of the price-setting process: identify pricing objectives?
answer
profit, market share and survival
question
which is a primary influence on promotion mix selection for an IMV campaign?
answer
-Stage of the product lifecycle -target market -product characteristics -CPM
question
Disney uses an integrated marketing communications program (IMC) to promote group travel to its theme parks because:
answer
its strategy includes using promotional activities that deliver a consistent message.
question
Which of the following is an example of place utility?
answer
Nordstrom has a pop-up store outside Folsom Field on Game Day
question
Prescription drugs such as Lipitor have national TV ads to encourage patients to more about the drug and ask for them by name from doctors. The manufacturers of these drugs are using an what kind of promotional channel strategy?
answer
Pull
question
What type of contractual system describes a situation in which assistance in selecting the location, setting up the store/ facility, advertising, and training personnel is provided by the parent company?
answer
Franchising system
question
When conducting causal research experiments, the independent variable often involves marketing mix elements such as product features or coupons, while dependent variable often include:
answer
Changes in purchases such as dollar or unit sales.
question
Type of advertising comparing product or service to similar product or service.
answer
comparative
question
suppose marketers want house product differentiation and ,market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?
answer
Will our new products steal customers or sales from our existing ones?
question
In terms of new product purchases, early adopters:
answer
are leaders in social settings and have a slightly above average education.
question
Establishments primarily engaged in selling grain and small farm products to retail feed stores would be classified as:
answer
Wholesalers
question
Which illustrates movement along the demand curve?
answer
As price is lowered, quantity demanded increases, assuming all demand factors stay the same.
question
Bayer Aspirin is sold in original strength, safety coated, extra strength and for women. This is;
answer
Product Line Extension.
question
Add introducing new product in product line
answer
Pioneering
question
The classifications of innovators, early adopters, early majority, late majority, and laggards are all based upon:
answer
when consumers begin buying a new product.
question
Lululemon wants to expand globally to China. Maintaining its brand reputation and marketing quality while maximizing profits are critical goals. The company has significant budget to invest in Global expansion, but is not familiar with the chinese market. Which market entry strategy is most appropriate.
answer
Joint Venture
question
organizational function and set of purposes for creating, communications and delivering value to its customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
answer
Marketing
question
A set of processes for creating, communicating, and delivering and exchanging offerings that have value;"
answer
Marketing Mix
question
Marketing Mix 4 P's
answer
Product - The goods, services, and ideas Price - What is exchanged for the product Place - Where consumers find the product A.K.A. distribution Promotion - Communication
question
Four Factors of Exchange:
answer
-Two or more parties with unsatisfied needs -A desire and ability on their part to be satisfied -A way for the parties to communicate -Something to exchange
question
Manifestations of needs that are influenced by knowledge, culture, and personality.
answer
wants
question
-social -economic -technological -competitive -regulatory forces
answer
Environmental Factors (uncontrollable)
question
the study of the aggregate flow of a nations goods and services to benefit economy
answer
macromarketing
question
how an individual organization directs its marketing activities and allocates its resources to benefit its customers
answer
micromarketing
question
the benefits of customer value received by the users of a product.
answer
utility
question
where top management directs overall strategy for the entire organization.
answer
Corporate Level strategy
question
-an organization that markets a set of related products to a clearly defined group of customers. -business unit managers set the direction for their products and markets to exploit value-creating opportunities.
answer
Business Unit Strategy
question
-where groups of specialists actually create value for the organization. -Where most of the organization's work gets done.
answer
Functional Level
question
-a small number of people from different departments in an organization who are mutually accountable to a common set of performance goals.
answer
Cross Functional Teams
question
What is our business? Who are our customers? What offerings should we provide to give these customers value?
answer
Questions to Identify your business
question
a statement of the organizations scope, often identifying its customers, markets, products, technology and values.
answer
The mission
question
a set of values, ideas and attitudes that is learned and shared among the members of an organization.
answer
organizational culture
question
the ratio of sales revenue of the firm to the total sales revenue all firms in the industry.
answer
market share
question
an organization's special capabilities including skills, technologies, and resources that distinguish it from other organizations
answer
competencies
question
discovering how others do something better than your own firm so you can imitate or leapfrog competition.
answer
Benchmarking
question
Makes up A business portfolio and its position is determined by business performance, market attractiveness and competitive advantage.
answer
SBU (Strategic Business Unit)
question
An approach whereby an organization allocates its marketing mix resources to reach its target markets. Divided into three phases: 1. Planning 2. Implementation 3. Control
answer
Strategic Marketing Process
question
SWOT Analysis -sw are internal -ot are external
answer
Marketing Plan Step 1
question
Market- Product focus and goal setting. Market segmentation and Points of difference.
answer
Marketing plan step 2
question
Marketing program, put created ix into action.
answer
Marketing Plan step 3
question
-Obtaining Resources -Designing the marketing organization -Developing schedules -Executing the Marketing Program
answer
Implementation Phase of Strategic Marketing
question
-Comparing Results with plans to --Identify Deviations Acting ON deviations
answer
Control phase of strategic marketing
question
Intermediaries buy and sell products or services (buying, selling, risk taking)
answer
transactional functions
question
Intermediary performs gathering, sorting, and dispersing products (assorting, storing, sorting, transporting)
answer
Logistical Functions
question
Intermediary makes a transaction easier for buyers (financing, grading, marketing info and research)
answer
Facilitating Functions
question
enhancing product or service to make it better (Technology advance)
answer
Form Utility
question
any intermediary with legal authority to act on behalf of the manufacturer
answer
Agent or Broker
question
an imprecise term, usually to describe intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, etc.
answer
Distributor
question
Produce -> Agent -> Wholesaler -> Retailer -> Consumer
answer
Channel Structure
question
ultimate consumer and producer deal directly with each other, no intermediaries -Producer performs all channel functions -Used when buyers (businesses) are large and well defined
answer
Direct Channel
question
intermediaries are inserted between the producer and consumers and perform numerous channel functions
answer
Indirect channel
question
when a channel member bypasses another member and sells or buys products direct
answer
Disintermediation
question
occurs between intermediaries at the same level in a marketing channel Vertical marketing systems vs. Vertical at different channels.
answer
Horizontal conflict
question
a producer owns the intermediary at the next level down in the channel
answer
forward integration
question
i.e. a retailer owns a manufacturing operation
answer
backward integration
question
independent production and distribution firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone
answer
contractual systems
question
involve a wholesaler that develops a contractual relationship with small, independent retailers to standardize and coordinate buying practices, merchandising programs, and inventory management efforts
answer
wholesaler sponsored voluntary chains
question
small, independent retailers form an organization that operates a wholesale facility cooperatively
answer
retailer sponsored cooperatives
question
achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership
answer
administered systems
question
a firm tries to place its products and services in as many outlets as possible
answer
intensive distribution
question
only one retailer in a specified geographical area carries the firm's products
answer
exclusive distribution
question
a firm selects a few retailers in a specified geographical area to carry its products
answer
selective distribution
question
information, convince, variety, pre or post services.
answer
buyer requirements
question
utilities offered by retailers
answer
-time -place -form -possession
question
Independent retailer, corporate chain, or contractual systems
answer
Forms of ownership
question
self-service, limited service, full service
answer
levels of service
question
The concept of designing marketing communications programs that coordinate all promotional activities (advertising, personal selling, sales promotions, public relations, and direct marketing) to provide a consistent message across all audiences
answer
integrated marketing communications
question
any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor
answer
advertising
question
the two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision
answer
personal selling
question
a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services
answer
public relations
question
Introduction- Inform (Sales Promo) Growth- Persuade (personal selling) Maturity- Remind Decline- Phase out
answer
product life cycle
question
the degree of service or support required after sale
answer
ancillary services
question
directing the promotional mix to channel members to gain their cooperation in ordering and stocking the produc
answer
push strategy
question
directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product
answer
pull strategy
