Deck 15: Managing the Marketing Mix: Product, Price, Place, and Promotion

Question 1

When people consider purchasing a good,they:

A)are responding to the market forces of supply and demand.
B)will not consider goods that require them to make a special effort to purchase.
C)are most influenced by the price of the product or service.
D)may evaluate and compare a variety of factors.

Answer 1

D

Question 2

A(n)is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange,but does not take title to the goods.

A)drop shipper
B)merchant wholesaler
C)agent
D)retailer

Answer 2

C

Question 3

Discount stores owe much of their success to a competitive strategy based on:

A)a wide selection in a limited number of categories of goods.
B)special credit arrangements.
C)extra service.
D)low prices.

Answer 3

D

Question 4

Which of the following is the best example of a product line?

A)Sony offers DVD players,compact disc players,and video game consoles.
B)Hewlett Packard offers scanners,printers,and personal computers.
C)Kellogg offers Special K,Raisin Bran,Corn Flakes,and a variety of other cold ready-to-eat cereals.
D)General Motors offers passenger cars,small trucks,and tractor trailers.

Question 5

is an important part of the total product offer for a product.

A)Management style
B)Employee attitude
C)Packaging
D)Consumer income

Question 6

At what product stage may a product reach the top in sales growth while profit is decreasing?

A)Growth
B)Decline
C)Maturity
D)Introduction

Question 7

A has direct responsibility for all the elements of the marketing mix for one brand or product line.

A)brand manager
B)brand specialist
C)channel specialist
D)product engineer

Question 8

A is a name,symbol,or design (or combination of these)that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

A)copyright
B)trademark
C)brand
D)logo

Question 9

LoRider Wheels sells high quality bicycles and accessories.The store is known for a pleasant environment,friendly salespeople,and an excellent service department.All of these elements are part of the offered by LoRider.

A)total product offer
B)competitive environment
C)marginal utility package
D)product line

Question 10

Successful product differentiation:

A)is prohibited if it restricts price competition and market access.
B)of consumer goods is determined exclusively by price.
C)is less important due to the growth of the Internet.
D)can be based on either real or perceived differences in products.

Question 11

All of the following would be included in the total product offer of benefits that consumers consider when buying a good or service except the:

A)buyer's past experience.
B)store's atmosphere.
C)consumer's income.
D)price.

Question 12

A skimming pricing strategy:

A)creates a "common man" image to reach a larger market.
B)drives competitors out of business in order to achieve a monopoly position in the market.
C)establishes a high price in order to earn the highest possible profit while there is little competition.
D)allows low income households the ability to purchase a particular good or service.

Question 13

Selling goods and services to ultimate customers over the Internet is known as what?

A)selective distribution
B)multilevel marketing
C)electronic retailing
D)social commerce

Question 14

Helen is considering adding a rack of greeting cards to her product offerings at Litton Books Unlimited.Her fixed costs associated with adding the greeting cards would be $300.Variable costs per card are $1 each.The greeting cards will sell for $2 each.Helen's break-even point would occur at cards sold.

A)125
B)300
C)150
D)600

Question 15

The job performed by brand managers:

A)is likely to become less important in firms that utilize the Internet.
B)is mainly concerned with the promotion of the entire product mix of their firm.
C)focuses more on the pricing and promotion of established goods than on the development of new products.
D)involves broad responsibilities for the marketing of a specific brand or product line.

Question 16

Costs incurred regardless of the number of units of a product that are produced or sold are called:

A)controllable costs.
B)fixed costs.
C)mixed costs.
D)variable costs.

Question 17

All of the following statements about marketing intermediaries are true except:

A)marketing intermediaries can be eliminated,but their functions must still be performed.
B)marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers.
C)all channels of distribution must contain at least one marketing intermediary.
D)the value created by marketing intermediaries usually exceeds the costs they add to products.

Question 18

involves designing a product so that it satisfies customers and meets the profit margins desired by the firm.

A)Price leadership
B)Target costing
C)Cost-based pricing
D)Price discrimination

Question 19

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:

A)product mix.
B)product package.
C)total product offer.
D)product differentiation.

Question 20

A strategy that encourages people to pass on a marketing message to others is known as what?

A)viral marketing
B)intensive distribution
C)personal selling
D)selective distribution

Question 21

Home Depot and Walmart use what type of pricing strategy?

A)psychological
B)bundling
C)everyday low pricing
D)high-low

Question 22

A recent trend in packaging is:

A)new lightweight materials used for goods and services marketed on the Internet.
B)a decline in the importance of packaging in the overall promotional mix.
C)the acceptance of the view that bigger is better.
D)the increased attention given to the packaging of services.

Question 23

In an effort to improve the break-even point companies have to:

A)increase the advertising budget.
B)decrease the quantity or the fixed cost of an input.
C)increase the quantity sold.
D)decrease their price.

Question 24

For small businesses,product differentiation:

A)can be an important strategy to gain market share.
B)is more difficult than it is for larger firms because of the high cost of product research and development.
C)is less important than it is for big firms with multiple product lines.
D)usually concentrates on the pricing component of the total product offer.

Question 25

The pricing strategy maintains low prices and avoids the use of special sales.

A)everyday low pricing (EDLP)
B)target-based
C)skimming
D)cost-based

Question 26

I Can't Believe That It's Medicine is an advertising slogan for a new antacid.The manufacturer claims that their antacid works faster and tastes better than any competing brand.These claims are part of the firm's strategy to achieve:

A)product differentiation.
B)new product development.
C)deceptive marketing recognition.
D)the creation of knockoff products.

Question 27

The value associated with a brand is determined:

A)by adding up the costs to develop the brand.
B)in relation to the new customers a company can attract.
C)by determining the costs of managing the brand.
D)by determining the likely profits to be generated because of the brand.

Question 28

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:

A)cost-based pricing.
B)penetration pricing.
C)target costing.
D)skimming pricing.

Question 29

As restaurant chains that specialize in Mexican cuisine,Fernando's and Carmelita's offer similar items on their menus.However,Fernando's restaurants are positioned in the market as elegant establishments with high prices.Carmelita's restaurants,on the other hand,are located in middle class neighbourhoods,with a casual atmosphere that welcomes families with young children.The prices at Carmelita's are in the moderate range.When evaluating the marketing strategies used by these restaurants,we can conclude that:

A)they utilize product differentiation.
B)their target markets differ,with one intended to appeal to the industrial market,and the other designed to attract the consumer market.
C)both practice product mix effectiveness.
D)Fernando's has chosen a shopping good strategy.

Question 30

uses price points to establish prices that help create the impression that the product is less expensive than it is.

A)Everyday low pricing (EDLP)
B)Bundling
C)High-low pricing
D)Psychological pricing

Question 31

The face-to-face presentation and promotion of goods is known as what?

A)intensive distribution
B)selective distribution
C)personal selling
D)advertising

Question 32

is the process used to determine the profitability of a product at various levels of sales.

A)Break-even analysis
B)Cost-based pricing
C)Competition-based pricing
D)Demand-based pricing

Question 33

Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots.The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production.This seems to represent a:

A)price leadership.
B)supply and demand formula.
C)cost-based pricing strategy.
D)demand-based pricing.

Question 34

One way a firm can avoid a price war is to:

A)eliminate the fringe benefits offer to frequent customers.
B)determine their break-even point price.
C)use break-even segmentation.
D)add value to their product offering.

Question 35

The strategy of charging prices based on consumer demand rather than cost or a predetermined profit margin represents:

A)demand-oriented pricing.
B)cost-based pricing.
C)competition-based pricing.
D)target orientation.

Question 36

Barker Brothers Pens utilizes a strategy of low prices to attract customers and discourage competition.This represents a strategy.

A)penetration
B)high-low
C)skimming
D)bundling

Question 37

Operating in the south-western states,Lancer Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast.The best strategy to avoid severe price competition is to:

A)determine the breakeven price and charge slightly more than that.
B)reduce flights and layoff employees.
C)cut costs and services in order to maintain their profit margin.
D)provide frequent travelers the added value of special fringe benefits.

Question 38

The on packages were intended to improve inventory control for businesses.

A)Universal Product Codes
B)Unit Standard Inventory bars
C)lightweight adhesives
D)maple leaves

Question 39

The Procter & Gamble Company produces bar soap,disposable diapers,deodorants,laundry detergents,peanut butter,cookies,cake mix,shampoo,shortening,coffee,and many other products.These products are part of P&G's:

A)product line.
B)product mix.
C)marketing mix.
D)product network.

Question 40

The purpose of is to create real or perceived product differences.

A)product mixing
B)niche marketing
C)product differentiation
D)target marketing

Question 41

What is the difference between promotion and advertising?

A)very few organizations are involved in publicity
B)promotion is the same as personal selling
C)advertising is not paid for
D)promotion is not paid for

Question 42

One of the reasons why companies created the position of brand manager was to:

A)limit the amount of market research expenses products required.
B)cut expenses associated with the marketing of products.
C)have greater control over new product development and promotion.
D)identify and prosecute firms that violate trademark protection.

Question 43

Phil asks you to calculate the break-even point for his firm.You respond that you will need the following information:

A)total fixed costs,selling price,and variable costs per unit.
B)the values for all assets and liabilities.
C)forecasted sales volume,operating expenses,and asset values.
D)sales revenue and total liabilities.

Question 44

The cost of raw materials used to produce a good or service represent the firm's ________ costs.

A)fixed
B)uncontrollable
C)variable
D)mixed

Question 45

Department stores often use pricing in which they have regular prices which are relatively high,but offer special sales where prices are set lower than competitors.

A)penetration
B)strategic
C)bundling
D)high-low

Question 46

Felicia wants to know how many units she must sell to cover all of her costs.She indicates to you that her selling price is $20 per units,her fixed costs are $6,000,and the variable costs per unit are $15 per unit.What is her break-even point?

A)1,200 units
B)1,100 units
C)400 units
D)300 units

Question 47

costs are those costs that increase as the level of production increases.

A)Mixed
B)Uncontrollable
C)Fixed
D)Variable

Question 48

What does a break-even point of 100 units mean?

A)By producing 100 units,the firm can ensure that variable costs completely cancel out fixed costs.
B)The firm must sell 100 units to maximize its profits.
C)Fixed costs plus variable costs equals 100 units.
D)If the firm sells 100 units,its total revenues will equal total costs.

Question 49

Advertising,personal selling and sales promotion are all examples of what type of promotion strategy?

A)social commerce
B)selective distribution
C)push strategy
D)intensive distribution

Question 50

Many products are promoted by emphasizing their benefits,rather than setting the price lower than that of competitive goods.This emphasis on the product's benefits illustrates a(n)strategy.

A)bundled package
B)industry leader
C)penetration
D)non-price competition

Question 51

Discount stores,supermarkets,and department stores are all common types of:

A)category killers
B)multilevel marketers
C)retail stores
D)full service wholesalers

Question 52

All of the following are benefits of a brand name for a seller except:

A)help in promotional efforts.
B)potential for higher price.
C)increased repeat purchases.
D)quality assurance.

Question 53

The marketing strategy where you improve the product and keep the product mix limited goes with what stage of the product life cycle?

A)Growth
B)Decline
C)Introduction
D)Maturity

Question 54

SneezeNoMore markets a group of similar products for people suffering from the common cold.The products in this line are sold under the brand name SneezeNoMore.The products differ mainly in the strength of the dosage and in whether they also contain additional medications to help the consumer sleep.As an employee of SneezeNoMore,Jill is responsible for the marketing mix for the company's products.She is also involved in any major decisions concerning the development of new products that will be included in this product line.Jill serves as a:

A)product line specialist.
B)brand manager.
C)target market manager.
D)market mix specialist.

Question 55

The number of units of a product that must be sold for total revenue to equal total costs is called the _.

A)break-even point
B)equilibrium volume
C)contribution margin
D)balanced quantity

Question 56

The primary difference between retailers and wholesalers is that:

A)retailers operate in local areas,while wholesalers operate over a wide geographic area.
B)retailers have sales of less than $1 million,while wholesalers have sales of $1 million or more.
C)retailers sell to final consumers,while wholesalers sell to other organizations,such as retailers or manufacturers.
D)retailers sell consumer goods,while wholesalers sell industrial goods.

Question 57

The first stage in the product life cycle is known as what?

A)Decline
B)Growth
C)Introduction
D)Maturity

Question 58

A is a marketing intermediary that sells to other organizations.

A)wholesaler
B)jobber
C)retailer
D)broker

Question 59

Robbie 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:

A)channel captain.
B)broker.
C)logistics specialist.
D)wholesaler.

Question 60

Marketing intermediaries:

A)create value,but this value is seldom great enough to justify the added cost they charge for their services.
B)tend to increase the number of exchange relationships producers and consumers must deal with in order to buy and sell goods.
C)are unlikely to survive in a competitive global economy.
D)have survived because they often can perform marketing functions faster and at lower cost than producers.

Question 61

Borden,Inc.offers pasta,dairy items,and adhesives.These different types of products are referred to as Borden's:

A)product life cycle.
B)product differentiation.
C)product line.
D)product mix.

Question 62

One of the reasons marketers emphasize non-price differences in their competitive strategies is because:

A)non-price differences are tax deductible.
B)consumers aren't concerned about prices.
C)price changes are easily matched.
D)these methods have no impact on the cost of production.

Question 63

Placing as many retail outlets as possible is known as what?

A)multilevel marketing
B)selective distribution
C)intensive distribution
D)warehouse club

Question 64

In marketing today,packaging carries the added responsibility of:

A)promotion and sales responsibility.
B)gaining access to international markets.
C)keeping product costs down.
D)minimizing product liability.

Question 65

Patrick Bolger is convinced that his product idea has tremendous potential.He has decided to produce the product himself,but plans to use other firms who specialize in storing and transporting the product to help him move the product along its path to the final consumer.These specialists Patrick uses will be part of his product's:

A)franchise system.
B)channel of distribution.
C)market network.
D)wheel of retailing.

Question 66

Pricing is:

A)totally based on the cost of products.
B)one of the four Ps of the marketing mix.
C)normally a government regulated variable.
D)considered to be a part of promotion.

Question 67

All of the following are benefits of a brand name for a buyer except:

A)prestige.
B)quality assurance.
C)help in promotional efforts.
D)reduced search time.

Question 68

Charging high prices to earn large profits during a time when there is little competition represents a strategy.

A)penetration
B)bundling
C)cost-based
D)skimming

Question 69

At the break-even point:

A)target profit is achieved.
B)total revenue is equal to total cost.
C)profits are maximized.
D)variable costs are equal to total fixed costs.

Question 70

A coupon or a sample is an example of what?

A)a sales promotion
B)an advertising campaign
C)a B2B idea
D)multilevel marketing

Question 71

Angie owns a small company that markets high quality office supplies to businesses.Angie faces stiff competition from some much larger firms.Which of the following competitive strategies would probably work best for Angie?

A)Develop a skimming pricing strategy.
B)Focus on offering better service to customers and work on building good customer relationships.
C)Utilize a high-low approach to pricing.
D)Keep costs as low as possible by offering a no-frills approach with little or no extra services.

Question 72

As a manager at Excitement Foods,Mark is responsible for the firm's Kool'n Kreamy brand of ice cream.Recently,he approved a proposal to test market new ice cream flavours.He also is considering the possibility of lowering the price of the ice cream and initiating a new advertising campaign.Mark appears to be a:

A)product development manager.
B)commercialization manager.
C)brand manager.
D)target market manager.

Question 73

What combines all of the promotional tools into one comprehensive promotional strategy?

A)IMC
B)cost-benefit analysis
C)social commerce
D)advertising

Question 74

Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:

A)distributive specialists.
B)directed marketers.
C)marketing intermediaries.
D)supplementary marketers.

Question 75

Which of the following statements about non-price competition is most accurate?

A)Marketers often rely on non-price differences in their competitive strategy because price changes are easily matched.
B)While still important,non-price competition is becoming less critical as a result of the Internet.
C)Non-price competition is much more important to large firms than it is to small firms.
D)As microeconomic theory suggests,firms have found that non-price competition plays a secondary role that supplements the more important competition based on price.

Question 76

Which of the following statements about channels of distribution is most accurate?

A)Channels of distribution always include retailers,but they may or may not also include wholesalers.
B)Some channels of distribution include marketing intermediaries,while in others a manufacturer sells directly to the final consumer.
C)Channels of distribution always begin with a manufacturer and end with consumers,and always have one or more marketing intermediaries in between.
D)The fewer the marketing intermediaries in a channel of distribution,the more efficient the channel is likely to be.

Question 77

Today,packaging is:

A)assuming an increasingly important role in the promotion of products.
B)exclusively intended to protect the product from damage.
C)the most expensive component of the production process.
D)the least important component of the marketing mix.

Question 78

The formula for break-even analysis includes all of the following components except:

A)total fixed costs.
B)variable cost per unit of output.
C)total sales revenue.
D)forecasted cash requirements.

Question 79

The degree to which customers are satisfied and are committed to future purchases of a desired brand is called:

A)brand awareness.
B)brand intensity.
C)brand relations.
D)brand loyalty.

Question 80

Nina owns a card shop in a small shopping center where she sells cards produced by a national company.Nina sells to final customers,so she is a:

A)rack jobber.
B)merchant wholesaler.
C)retailer.
D)channel captain.