MARK 3321-UTA-Online-Exam 2(Ch7-10)

Boar's Head deli meats is sold in many grocery stores and restaurants, while Archer Farms deli meats is owned by Target and only available there. Boar's Head is a(n) _______________ brand, while Archer Farms is a(n) _______________.

captive, manufacturers'

captive, private

manufacturers', private

manufacturers', captive

none of the above

manufacturers', private

A European dairy that is famous for its rich ice creams has introduced basil, tomato, fennel, and oregano-flavored ice creams. In the process of developing these new flavors, the dairy surveyed world-famous chefs to determine which nontraditional flavors had the greatest level of marketability. This survey would have happened during which stage of the product development process?

Concept testing

Brainstorming

Basic research

Idea screening

None of the above

Idea screening

Heinz is expected to introduce more than 400 new products in the next two years. One of the products is a spicier ketchup aimed at the baby boomer market. The spicier ketchup would be considered what type of new product?

A discontinuous innovation.

A new product line.

An addition to an existing product line.

A style modification.

None of the above.

An addition to an existing product line.

Convenience products include all of the following except:

deodorant.

soft drinks.

chewing gum.

aspirin.

All of the above are convenience products.

All of the above are convenience products.

Which of the following has the lowest level of "trialability"?

Organic dog food.

Low-fat ice cream.

Surgically implanted hearing aids.

A new air freshener

None of the above

Surgically implanted hearing aids.

For products such as Rolls-Royce automobiles, only one or a few dealers within a given area can distribute the product. This illustrates:

intensive distribution.

selective distribution.

limited distribution.

exclusive distribution.

none of the above.

exclusive distribution.

Wal*Mart buys the products it sells in large quantities directly from manufacturers of those products. This illustrates a(n) _______________ marketing channel.

direct

manufacturer

producer

supplier

None of the above

none of the above (retail)

In Chinatown in New York city, consumers can purchase counterfeit versions of Rolex watches and Prada handbags that are very difficult to distinguish from the real thing. This illustrates:

dual distribution.

non-traditional channels.

gray marketing channels.

reverse channels.

none of the above.

gray marketing channels.

The soft drink, candy, and snack vending machines found in the Business building at University of Texas at Arlington are examples of:

automatic vending.

self-service technologies.

direct retailing.

direct marketing.

none of the above.

automatic vending.

The _______________ of a retail store helps determine the store's image and positions the retail store in consumers' rminds.

promotion

presentation

place

price

none of the above

presentation

A new health club initially sets a lower membership fee to generate more sales, accepting that there will be lower profits at first. This illustrates _______________.

a cost orientation

a competitive orientation

a demand orientation

a profit orientation

none of above

none of above (sales orientation)

Manufacturers use _______________ off the list price to encourage retailers to pay their bills quickly.

quantity discounts

functional discounts

cash discounts

seasonal discounts

none of the above

cash discounts

Which of the following statements about supply and demand is true?

Demand is the quantity of a product that will be offered to the market by a supplier or suppliers at various prices for a specified period.

Supply is the quantity of a product that will be sold in the market at various prices for a specified period.

Price equilibrium is reached when demand and supply are equal.

A price above equilibrium results in a shortage because demand will be greater than supply.

None of the above statements about demand and supply are true.

Price equilibrium is reached when demand and supply are equal.

A house priced at $799,000 is likely to be perceived by potential buyers as "something over $700,000 rather than "about $800,000. This is why sellers often use _______________.

penetration pricing

prestige pricing

pricing skimming

above market pricing

none of the above

none of the above (psychological pricing)

_______________ involves adding a fixed percentage to the cost of all items in a specific product category.

Target profit pricing

Target return-on-sales pricing

Target return-on-investment pricing

Standard markup pricing

None of the above

Standard markup pricing

When Delta increases its average fares, American Airlines and United often follow with similar increases. American and United are using a(n) _______________ orientation to pricing.

cost

competitor

demand

profit

none of the above

competitor

Typically _______________ costs include items such as rent, utilities, insurance, administrative salaries, and the depreciation of the physical plant and equipment.

variable costs

total costs

marginal costs

fixed costs

none of the above

fixed costs

Best Buy, Target, and WalMart sell CDs at about half the suggested retail price of music companies to draw customers to their store. The motivation for using such _______________ is to attract customers in hopes that they will buy other, more expensive products once they are in the store.

everyday low pricing

penetration pricing

price skimming

loss leader pricing

none of the above

loss leader pricing

The break even point is:

the point where gains equal losses.

the point when an investment will generate a positive

return.

the point where sales or revenues equal expenses.

the point where total costs equal total revenues or sales.

all of the above.

all of the above.

When U.K.-based Tesco advertised that is was "Britain's Biggest Discounter," the Advertising Standards Authority in the U.K. forced the company to end the ad campaign, ruling that it was misleading because it was impossible to determine if Tesco was less expensive than its competition (e.g., Aldi and Asda) due to differences in basket items. This illustrates how _______________ can be a problem in pricing.

price fixing

price discrimination

deceptive pricing

predatory pricing

none of the above

none of the above

A magazine ad for Orville Redenbacher's PopCorn states that the sponsor's brand has three more cups of popcorn in every microwavable bag than PopSecret Popcorn. This message:

is meant to stimulate primary demand using delayed response, institutional advertising.

is meant to stimulate secondary demand using delayed response, institutional advertising.

is meant to stimulate primary demand using delayed response, product advertising.

is meant to stimulate secondary demand using delayed response, product advertising.

None of the above.

is meant to stimulate secondary demand using delayed response, product advertising.

Subway's image was damaged when its primary product endorser, Jared Fogle, was convicted of various sex-related felonies and went to prison. What does this scenario illustrate about public relations/publicity?

Public relations/publicity is a less expensive tool than advertising. Public relations/publicity is mass-mediated, like advertising.

Marketers can not control the timing of messages delivered via public relations/publicity.

Marketers can not control the content of messages delivered via public relations/publicity.

None of the above.

Marketers can not control the content of messages delivered via public relations/publicity.

________________ use aggressive personal selling and trade advertising to convince a wholesaler or retailer to carry and sell particular merchandise, while _______________ stimulate consumer demand to obtain product distribution.

Marketing strategies, promotion strategies

Promotion strategies, marketing strategies

Pull strategies, push strategies

Push strategies, pull strategies

None of the above

Push strategies, pull strategies

_______________ target ultimate consumers while _______________ target members of the marketing channel.

Trade sales promotions, institutional advertisements

Trade sales promotions, product advertisements

Trade sales promotions, advocacy advertisements

Trade sales promotions, pioneering advertisements

None of the above.

None of the above (Consumer sales promotion, Trade sales promotion)

Radio, television, and newspapers are examples of _______________ in the communication process.

encoding

decoding

message channels

feedback channels

none of the above

message channels

everything, both favorable and unfavorable, that a person receives in an exchange

product

a relatively inexpensive item that merits little shopping effort

convenience product

a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores (p.

shopping product

a particular item for which consumers search extensively and are very reluctant to accept substitutes

specialty product

a product unknown to the potential buyer or a known product that the buyer does not actively seek

unsought product

a specific version of a product that can be designated as a distinct offering among an organization's products

product item

a group of closely related product items

product line

a group of closely related product items

product mix

the number of product lines an organization offers

product width mix

the number of product items in a product line

product line depth

changing one or more of a product's characteristics

product modification

the practice of modifying products so those that have already been sold become obsolete before they actually need replacement

product obsolescence

adding additional products to an existing product line in order to compete more broadly in the industry

product line extension

a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products

brand

that part of a brand that can be spoken, including letters, words, and numbers

brand names

the elements of a brand that cannot be spoken

brand mark

the value of a company or brand name

brand equity

a brand that obtains at least a one-third of its earnings from outside its home country, is recognizable outside its home base of customers, and has publicly available marketing and financial data

global brand

consistent preference for one brand over all others

brand loyalty

the brand name of a manufacturer

manufacturer's brand

a brand name owned by a wholesaler or a retailer

private brand

a brand manufactured by a third party for an exclusive retailer, without evidence of that retailer's affiliation

captive brand

using different brand names for different products

individual braanding

marketing several different products under the same brand name

family branding

placing two or more brand names on a product or its package

co-branding

the exclusive right to use a brand or part of a brand

trademark

a trademark for a service

service mark

identifies a product by class or type and cannot be trademarked

generic product name

a type of package labeling that focuses on a promotional theme or logo, and consumer information is secondary

persuasive labeling

a type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase

informational labeling

a series of thick and thin vertical lines (bar codes) readable by computerized optical scanners that represent numbers used to track products

Universal Product Code (UPC)

Global Branding Considerations

One name

Modify or adapt one name

Different names in different markets

Global Packaging Considerations

Labeling

Aesthetics

Climate

a confirmation of the quality or performance of a good or service

warranty

a written guarantee

express warranty

an unwritten guarantee that the good or service is fit for the purpose for which it was sold

implied warranty

a product new to the world, the market, the producer, the seller, or some combination of these

new product

7 Steps in New Product Development

1. New Product Strategy

2. Idea Generation

3. Idea screening

4. Business Analysis

5. Development

6. Test Marketing

7. Commercialization

- New Product

a plan that links the new-product development process with the objectives of the marketing department, the business unit, and the corporation

new-product strategy

the process of getting a group to think of unlimited ways to vary a product or solve a problem

idea generation/think tank

the first filter in the product development process, which eliminates ideas that are inconsistent with the organization's new-product strategy or are obviously inappropriate for some other reason

idea screening

the second stage of the screening process where preliminary figures for demand, cost, sales, and profitability are calculated (p.

business analysis

a marketing strategy that entails the creation of marketable new products; the process of converting applications for new technologies into marketable products (p.

product development

the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation

test marketing

the decision to market a product

commercialization

a test to evaluate a newproduct idea, usually before any prototype has been created

concept test

the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation

test market

the presentation of advertising and other promotional materials for several products, including a test product, to members of the product's target market

simulated (laboratory) market

Understand why some products succeed and others fail

Despite the amount of time and money spent on developing and testing new products, a large proportion of new-product introductions fail. Products fail for a number of reasons. Failure can be a matter of degree—absolute failure occurs when a company cannot recoup its development, marketing, and production costs, while relative product failure occurs when the product returns a profit but fails to achieve sales, profit, or market share goals.

Discuss global issues in new-product development.

A marketer with global vision seeks to develop products that can easily be adapted to suit local needs. The goal is not simply to develop a standard product that can be sold worldwide. Smart global marketers also look for good product ideas worldwide.

Explain the diffusion process through which new products are adopted.

The diffusion process is the spread of a new product from its producer to ultimate adopters. Adopters in the diffusion process belong to five categories: innovators, early adopters, the early majority, the late majority, and laggards. Product characteristics that affect the rate of adoption include product complexity, compatibility with existing social values, relative advantage over existing substitutes, visibility, and "trialability." The diffusion process is facilitated by word-of-mouth communication and communication from marketers to consumers.

a product perceived as new by a potential adopter

innovation

the process by which the adoption of an innovation spreads

diffusion

Explain the concept of product life cycles.

All brands and product categories undergo a life cycle with four stages: introduction, growth, maturity, and decline. The rate at which products move through these stages varies dramatically. Marketing managers use the product life cycle concept as an analytical tool to forecast a product's future and devise effective marketing strategies.

a concept that provides a way to trace the stages of a product's acceptance, from its introduction (birth) to its decline (death)

product life cycle (PLC)

all brands that satisfy a particular type of need

product category

the full-scale launch of a new product into the marketplace

introductory state

the second stage of the product life cycle when sales typically grow at an increasing rate, many competitors enter the market, large companies may start to acquire small pioneering firms, and profits are healthy

growth state

a period during which sales increase at a decreasing rate

maturity stage

decline stage a long-run drop in sales

decline state

Explain what marketing channels and channel intermediaries are and describe their functions and activities.

A marketing channel is a business structure of interdependent organizations that reach from the point of production to the consumer. Intermediaries negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and

a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer

marketing channel

all parties in the marketing channel who negotiate with one another, buy and sell products, and facilitate the change of ownership between buyer and seller in the course of moving the product from the manufacturer into the hands of the final consumer

channel members

the elements of the composition and appearance of a product that make it desirable

form utility

the increase in customer satisfaction gained by making a good or service available at the appropriate time

time utility

the usefulness of a good or service as a function of the location at which it is made available

place utility

the increased value of a product that is created as its ownership is transferred

exchange utility

an institution that buys goods from manufacturers and resells them to businesses, government agencies, and other wholesalers or retailers and that receives and takes title to goods, stores them in its own warehouses, and later ships them

merchandise wholeseller

wholesaling intermediaries who do not take title to a product but facilitate its sale from producer to end user by representing retailers, wholesalers, or manufacturers

agents and brokers

a channel intermediary that sells mainly to consumer

retailer

a distribution channel in which producers sell directly to consumers

direct channel

the use of two or more channels to distribute the same product to target markets

dual distribution

non-physical channels that facilitate the unique market access of products and services

nontraditional channels

a cooperative agreement between business firms to use the other's already established distribution channel

strategic channel alliance

secondary channels that are unintended to be used by the producer, and which often flow illegally obtained or counterfeit product toward customers

grey market channels