Marketing final

Market \______ evaluates each market segment's attractiveness and selects one or more segments to serve

targeting

The step in designing a customer value-driven marketing strategy in which a company divides a market into distinct groups of buyers is known as market \_____

segmentation

The process of evaluating each market segment's attractiveness and selecting one or more market segments to enter is called \______

market targeting

What is the purpose of differentiation?

To create superior customer value

Which of the following statements about segmentation is true?

Different segments might require different marketing strategies or mixes

What is positioning?

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

\______ segmentation divides buyers into different segments based on lifestyle or personality characteristics

Psychographic

\_____ segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses to a product.

Behavioral

Toothpastes claim they​ "whiten teeth,"​ "fight bad​ breath," and​ "reduce plaque." Which base of segmentation is being used in this​ example?

Benefits sought

Which of the following statements regarding segmentation is​ correct?

Consumer and business marketers use many similar​ variables, but business marketers use additional variables to segment their markets.

When marketers target segments such as sports​ fans, do-it-yourselfers,​ commuters, and wine​ enthusiasts, which base of segmentation are they​ using?

Psychographic segmentation

If men and women respond similarly to the same marketing​ mix, they do not constitute different segments. Gender would not be effective in this example because the segment is not​ \________.

differentiable

Using​ a(n) \__________ marketing​ strategy, a firm might decide to ignore market segment differences.

undifferentiated

Instead of going after a small share of a large​ market, a firm goes after a large share of a smaller niche segment. This type of marketing strategy is known as​ \__________.

concentrated marketing

A colleague wants to evaluate the attractiveness of a particular market segment. Which of the following would be good advice for your​ colleague?

Carefully consider the degree of competition and ease of entry into the segment.

Anythinglefthanded.com.uk only sells products designed for​ left-handed people. Which targeting strategy is it​ using?

Concentrated marketing

On the My​ M&Ms Web​ site, users can place custom orders for​ M&Ms. They can choose their own​ colors, put a personalized text message on the​ candies, and even upload a photo to be placed on each​ M&M. Which targeting strategy is​ M&M using​ here?

Individual marketing

One important consideration in using a differentiated targeting strategy is that​ \________.

it can increase costs

Amazon and GEICO set themselves apart with their​ smooth-functioning direct delivery strategy referred to as​ \__________ differentiation.

channel

The winning value proposition by discount stores such as Walmart and Best Buy can be categorized as​ \__________.

the same for less

A company can differentiate itself from competitors using symbols such as​ McDonald's golden​ arches, Twitter's​ bird, and the Nike swoosh. Which type of differentiation is​ this?

Image differentiation

The Westin Stamford Hotel in Singapore failed when it once advertised itself as the​ world's tallest hotel. This difference was not worth establishing because it did not satisfy which of the following​ criteria?

Important

What are perceptual positioning maps used​ for?

To show consumer perceptions of different brands on important buying dimensions

Which value proposition is difficult to sustain in the long​ run?

More for less

Amazon and GEICO set themselves apart with their​ smooth-functioning direct delivery strategy referred to as​ \__________ differentiation.

channel

Which of the following forms of products are considered as​ services?

Airline travel

Blood donations to the Red Cross are considered​ \__________ products.

unsought

Which of the following correctly defines a​ product?

A product is anything offered to a market that might satisfy a need or want.

Charles Revson started Revlon. He once said​ "We sell​ hope." Revson was defining the​ \______ of Revlon cosmetics.

core customer value

Manny is willing to exert special effort to find a valuable and rare 1960 baseball card featuring the famous New York​ Yankee, Mickey Mantle. This baseball card would be classified as​ a(n) \______ product.

specialty

Materials and​ parts, capital​ items, and supplies are services or groups of​ \_____ products.

industrial

Freedom from defects and consistency in delivering a targeted level of performance is an attribute of​ product's \__________.

conformance quality

\__________ helps the seller to segment markets.

branding

In determining product​ quality, what are the two dimensions of quality marketers must decide​ upon?

Level and consistency

When a company lengthens a product line by adding more items within that​ line's current​ range, it is​ \________.

filling the file

Which of the following statements regarding the important decisions in the development and marketing of individual products is​ correct?

Product attributes that communicate and deliver benefits to the consumer include​ quality, features,​ style, and design

If a company adds a new product line to its existing​ portfolio, it has increased its​ \_________.

product mix width

​\__________ means that the quality of services depends on who provides them as well as​ when, where, and how they are provided.

service variability

Which of the following is not considered one of the links in the service profit​ chain?Inseparability
Intangibility
Variability
Perishability
Tangibility

Buyer-seller interaction

The quality of services depends on who provides​ them, and​ when, where, and how they are provided. Which characteristic of services does this​ describe?

Variability

For which service characteristic do marketers need to pay close attention to fluctuations in​ demand?

Pershability

Services marketing requires​ \________. This means that the service firm must orient and motivate its​ customer-contact employees and supporting service people to work as a team to provide customer satisfaction.

internal marketing

Which of the following statements about services marketing is​ correct?
-Training current employees better and hiring new ones with more skills can increase service productivity.
-Due to the variability of​ services, top service companies set modest​ service-quality standards.
-Service delivery cannot be differentiated.
-Services marketers do not need to differentiate their offerings.
-It is easier to define service quality than product quality.

Training current employees better and hiring new ones with more skills can increase service productivity.

New product development starts with​ \__________.

idea generation

Through \_____ a company invites broad communities of people into the innovation process.

crowdsourcing

To create successful new​ products, a company must do which of the​ following?

Understand its​ consumers, markets, and​ competitors, and develop products that deliver superior value.

Through​ \_____ a company can obtain new products by buying a whole​ company, a​ patent, or a license to produce someone​ else's product.

acquisition

Which of the following statements about new product development strategy is​ correct?

Innovation can be expensive and risky.

Which of the following statements concerning new products is​ correct?
-To be considered​ new, the product must be something consumers have not seen before.
-Products that are merely improved in some way are not considered new.
-Modified and improved products are considered new.
-Most new products succeed within two years of their introduction.
-A modified product is not considered a new product.

Modified and improved products are considered new.

\_____ is a measure of the brand's ability to capture consumer preference and loyalty.

brand equity

The branding strategy if launching a product or service as a national or store brand is considered a

brand sponsorship

Walmart created the Great Value brand for its food products and the Equate brand for its pharmacy, health, and beauty. Walmart does not manufacture any of these products. Which type of brand sponsorship is Walmart using?

A private brand

The SwissArmy Company markets multi-tools, clothing, watches, and travel accessories all under the SwissArmy brand name. This is an example of which brand development strategy?

Brand extension

When Doritos comes out with new flavors of its tortilla chips, what brand development strategy did it use?

Line extensions

Which of the following statements about brand positioning is correct?
-Establishing a mission and vision for the brand is unrelated to brand positioning.
-Brands cannot be positioned based on desirable benefits.
-The strongest brands are positioned on beliefs and values.
-Positioning the brand on product attributes is the most desirable level for brand positioning.
-Products are​ positioned, not brands.

The strongest brands are positioned on beliefs and values

If the product passes both the concept test and the product test, the next step is \_____.

test marketing

\_____ development focuses on finding new ways to solve customer problems.

Customer-centered new products

After ideas are screened, the nest stage of the new product development process is \_____.

concept development and testing

At which stage of the new product development process is a physical product first developed?

product development

At which stage of the new product development process is crowdsourcing used?

Idea generation

Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a \_____ approach to new product development

Systematic
(New product development process should be holistic and systematic rather than compartmentalized and haphazard. Otherwise, few new ideas will surface, and many good ideas will sputter and die.)

\_____ is the first stage of the product life cycle.

product development

Profits increase during the \_____ stage of the product life cycle.

growth

When Dr. Lawncare developed his revolutionary new weed killer, he knew that during the introductory stage of the product lifecycle \___________.

sales would be slow and profits non-existent

Most products are at which stage of the life cycle, and therefore most of marketing management deals with them at this stage?

Maturity

Which of the following is an appropriate strategy during the maturity stage of the product lifecycle?

Modify the market, product offering and marketing mix

Which of the following is an effective strategy during the growth stage of the product lifecycle to sustain rapid growth?

Enter new markets

Marketers should carefully consider public policy issues and regulations regarding all of the following except \_____.

-product development
-patent protection
-acquiring or dropping products
-product warranties.
-product quality and safety

product development

One of the disadvantages of product and service standardization for international market is \_____.

varying worldwide market

To be more socially responsible, some companies appoint \_____. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.

product stewards

Which of the following statements regarding socially responsible product decisions in correct?
-Safety legislation has been passed to regulate chemical substances and drugs and​ poisons, but not​ toys, automobiles, and fabrics.
-When companies drop​ products, they do not have any obligations to​ suppliers, dealers, and customers.
-Manufacturers are generally not concerned with product liability.
-Companies can safely ignore patent laws.
-The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

Which of the following statements is true regarding standardizing products for international markets?

-Standardization helps a company develop a different image in different countries.
-Standardization decreases product​ design, manufacturing, and marketing costs.
-Markets and consumers all over the world are​ alike, so a company should always standardize international products.
-Standardization ensures that products will succeed in foreign markets.
-Standardization increases product​ design, manufacturing, and marketing costs.

Standardization decreases product​ design, manufacturing, and marketing costs.

To succeed in France, McDonald's had to \_____

tailor its products to local tastes in France

Which of the following statements does NOT describe price?

Price is the sum of all the values that customers give up to gain the benefits of having or using a product or service.

Price is one of the most flexible marketing mix elements.

Price is the only element in the marketing mix that represents costs.

Prices can be changed quickly.

Price remains one of the most important elements that determine a​ firm's market share and profitability.

Price is the only element in the marketing mix that represents costs.

Which of the following statements does not apply to the description of​ prices?

Pricing is the​ number-one problem facing many marketing executives.

In recent decades price factors have gained increasing importance.

​Historically, price has been the major factor affecting buyer choice.

Price is the amount of money charged for a product or a service.

Price remains one of the most important elements that determine a​ firm's market share.

In recent decades price factors have gained increasing importance.

The amount of money charged for a product or service is its \_____.

price
(price is the sum of all the values that customers give up to gain the benefits of having or using a product or service.)

Price is the only part of the marketing mix that \______.

produces revenue

Which of the following statements about price is​ correct?

Customers have put increasing pricing pressures on many companies.

Prices have no impact on a​ firm's bottom line.

Pricing is not a problem for marketing executives.

Price is not an important competitive asset.

Marketers do not a have lot of flexibility in setting and changing price.

Customers have put increasing pricing pressures on many companies.

In a broad sense, price is \_____.

he sum of all the values that customers give up to gain the benefits of having or using a product or service

\______ uses buyer's perceptions of value as the key to pricing.

Customer value-based pricing

The goal of the competition-based pricing is \______.

not to match or beat competitors' price

What is the first step in a value-based pricing strategy?

Assess customer needs and value perceptions

Which of the following is a cost-based pricing approach?

break-even pricing

Which of the following statements is true regarding costs?

Average cost tends to decrease with accumulated production experience
(This is because workers learn shortcuts and become more familiar with their​ equipment, the work becomes better​ organized, the company finds better equipment and production​ processes, and with higher​ volume, the company becomes more efficient and gains economies of scale.)

​New, premium movie theaters offer features such as online reserved​ seating, high-backed leather executive chairs with armrests and​ footrests, the latest in digital sound and​ super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of​ pricing?

Value-added pricing

\_____ reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"

Target costing
(Instead, it starts with an ideal selling price based on customer value considerations and then targets costs that will ensure that the price is met.)

Under \_____, the market consists of many buyers and sellers trading in a uniform commodity.

pure competition

Which of the following statements is correct regarding different types of​ markets?

Under monopolistic​ competition, the market is dominated by one seller.

In a pure​ monopoly, the market consists of many buyers and sellers trading over a range of prices.

Under oligopolistic​ competition, each seller is alert and responsive to​ competitors' pricing strategies and marketing moves.

Under pure​ competition, sellers spend considerable time on marketing strategy and pricing decisions.

Under oligopolistic​ competition, the market consists of many buyers and sellers trading in a uniform commodity and sellers do not spend much time on marketing strategy.

Under oligopolistic​ competition, each seller is alert and responsive to​ competitors' pricing strategies and marketing moves.
(Under oligopolistic​ competition, the market consists of only a few large sellers.)

Which of the following is true regarding the​ price-demand relationship?

Price elasticity measures how responsive price will be to a change in demand.

Demand and price are directly related-the higher the​ price, the greater the demand.

If demand is​ inelastic, a small change in price will result in a large change in demand.

A demand curve shows the number of units a company will produce in a given time period at different prices that might be charged.

If demand is​ elastic, sellers will consider lowering their price.

If demand is elastic, sellers will consider lowering their prices
( lower price will produce more total revenue. This practice makes sense as long as the extra costs of producing and selling more do not exceed the extra revenue.)

Internal facts that affect pricing include \_____.

the company's overall marketing strategy, objectives, and marketing mix

Beyond the marketing and the economy, what other factors in its external environment must a company consider when setting prices?

resellers, the government, and social concerns

Market skimming prices are preferred in all of the following conditions except \______.

enough buyers must want the product at that price

the​ product's quality and image must support its higher price

the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more

an initial low price is set by the companies

competitors should not be able to enter the market easily and undercut the high price

an initial low price is set by the companies

Market penetration prices are preferred in all of the following conditions except \_____.

the production and distribution costs must decrease as sales volume increases

enough buyers must want the product at a higher price

the low price must help keep out the competition

the penetration price must maintain its​ low-price position

the market must be highly price sensitive so that a low price produces more market growth

enough buyers must want the product at a higher price
(In​ market-skimming pricing, enough buyers must want to buy the product because the initial price is very high. Rather than setting a high initial price to skim off small but profitable market​ segments, some companies use​ market-penetration pricing by setting a low initial price to penetrate the market quickly and deeply.)

One major objective associated with a market-penetration pricing strategy is to \_____.

win a large market share

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?

Market-penetration pricing

When Apple introduced its iPhone, it priced the new product at $599, considerably higher than either its iPod or competing cellular phones. Apple Computer was pursing a(n) \______ new product pricing strategy.

Market-skimming
(Companies that use market-skimming pricing set high initial prices to skim revenues layer by layer from the market.)

Which of the following statements is true concerning new product pricing​ strategies?

A​ market-penetration strategy should be used if the market is not highly price sensitive.

When using a​ market-skimming strategy, marketers do not need to focus on the​ product's quality and image.

If competitors can easily enter the​ market, a​ market-skimming strategy should be used.

For a market penetration strategy to​ work, production and distribution costs must increase as sales volume increases.

For a​ market-skimming strategy to be​ successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

For a​ market-skimming strategy to be​ successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.

Companies that make products that must be used along with a main product are using \______.

captive-product pricing
( Examples of captive products are razor blade​ cartridges, video​ games, printer​ cartridges, single-serve coffee​ pods, and​ e-books. Producers of the main products​ (razors, video-game​ consoles, printers,​ single-cup coffee brewing​ systems, and tablet​ computers) often price them low and set high markups on the supplies.)

The pricing method in which sellers combine several products and offer a reduced price in known as \______.

product bundle pricing
(For​ example, fast-food restaurants bundle a​ burger, fries, and a soft drink at a​ "combo" price)

Gillette charges fairly low prices for its razors (relative to costs) and a high price for razor blades. It is using a strategy of \______ pricing.

captive-product
(Companies that make products that must be used along with a main product are using​ captive-product pricing. Producers of the main products​ (razors) often price them low and set high markups on the supplies​ (blades).)