Deck 12: Dimensions of Marketing Strategy

Question 1

Successful companies offer at least one dimension of value that surpasses all competitors in meeting customer expectations.

Answer 1

True
Explanation: Successful companies offer at least one dimension of value in the marketing mix that surpasses all competitors in meeting customer expectations,but this does not mean that a company can ignore the other dimensions of the marketing mix.

Question 2

Of the thousands of products introduced every year,most succeed.

Answer 2

False
Explanation: Every year thousands of products are introduced,but few of them succeed.

Question 3

Raw materials are raw materials taken from the earth and are a subset of business products.

Answer 3

True
Explanation: Raw materials are natural products taken from the earth,oceans,and recycled solid waste.They are a subset of business products and are used to create end products.

Question 4

Products can be goods,services,and ideas.

Question 5

A product's profits peak and start to decline during which of the life cycle stages?

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

Question 6

Consumers spend very little time planning where to buy convenience products.

Question 7

If a product is experiencing negative profits and the company is spending a great deal of money on advertising to make consumers aware of the product,the product is most likely in the following life cycle stage:

A)growth.
B)decline.
C)introduction.
D)maturity.
E)intermediate.

Question 8

Most new product ideas are rejected during the business analysis phase.

Question 9

Profits are negative in the growth stage.

Question 10

Industrial products such as lumber,cotton,and iron are classified as
A.major equipment.
B.supplies.
C.accessory equipment.
D.raw materials.
E.component parts.

Question 11

Diet Coke is a

A)generic brand.
B)private distributor brand.
C)brand mark.
D)brand name.
E)brand denotation.

Question 12

Products such as furniture,audio equipment,bicycles,and clothing are generally classified as

A)convenience products.
B)specialty products.
C)shopping products.
D)luxury products.
E)capital products.

Question 13

New product ideas can come from customers.

Question 14

If a company is eliminating certain models of a product and cutting back on expenditures,the product is most likely in which life cycle stage?

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

Question 15

A light bulb used to provide light for workers on an assembly line would be classified as what type of product?

A)Mechanical
B)Technical
C)Business
D)Commercial
E)Consumer

Question 16

A gallon of milk is an example of a

A)convenience product.
B)shopping product.
C)specialty product.
D)generic product.
E)difficult-to-obtain product.

Question 17

During which stage does the firm gear up for full-scale production,distribution,and promotions?

A)Idea development
B)Commercialization
C)Product development
D)Test marketing
E)Idea screening

Question 18

If a nationwide sandwich shop company introduces a new sandwich in the Midwest to try out its marketing strategy before offering the product across the country,it is using

A)idea screening.
B)commercialization.
C)concept testing.
D)menu experimentation.
E)test marketing.

Question 19

Magazines located next to the checkout counter at a grocery store would probably be classified as

A)shopping products.
B)convenience products.
C)literacy promoters.
D)specialty products.
E)accessory equipment.

Question 20

Most new product ideas are rejected during which stage because they seem inappropriate for the organization?

A)Idea development
B)Business analysis
C)Idea screening
D)Product development
E)Test marketing

Question 21

Price skimming is charging a low price to help a product enter the market and gain market share rapidly.

Question 22

What identifies products and distinguishes them from other products?

Question 23

Penetration pricing is less flexible than price skimming.

Question 24

Because buyers have limited ____________,they must allocate them in such a way as to obtain the products they most desire.

A)resources
B)time
C)patience
D)storage space
E)attention spans

Question 25

Which of the following is not a common pricing objective?

A)Maintaining the status quo
B)Boosting market share
C)Maximizing profits and sales
D)Survival
E)Outsourcing

Question 26

Maximizing profits and sales,boosting market share,maintaining the status quo,and survival are common pricing objectives.

Question 27

Pricing objectives are influenced solely by marketing mix decisions.

Question 28

When a company sets a low price for a new product to discourage competition from entering the market,it is using the

A)even/odd strategy.
B)price skimming strategy.
C)psychological pricing strategy.
D)penetration pricing strategy.
E)symbolic pricing strategy.

Question 29

Private distributor brands

A)are identified by manufacturer.
B)are used to reduce the efficiency of production.
C)are owned and controlled by a wholesaler or retailer.
D)are owned and controlled by a manufacturer.
E)have no brand name at all.

Question 30

How are products classified according to their use?

Question 31

Price is an important factor in the marketing mix for all of the following reasons except

A)it affects product image.
B)it is very flexible.
C)it directly affects revenue and profits.
D)it is the most visible element in the firm's marketing mix.
E)it requires long-term commitments with other members of the supply chain.

Question 32

__________ encourages consumers to make purchases based on emotion,rather than rational considerations about the price.

A)Price skimming
B)Discount Pricing
C)Penetration pricing
D)Promotions
E)Psychological pricing

Question 33

Which of the following is the most flexible variable in the marketing mix?

A)Product
B)Production
C)Place
D)Promotion
E)Price

Question 34

Identify and describe the stages in the product life cycle.Provide an example of a product at each stage of the lifecycle.

Question 35

Price discounts are often employed to boost sales.

Question 36

Price is the most flexible variable in the marketing mix.

Question 37

The pricing policy that allows a company to cover the product's development cost most quickly is

A)penetration pricing.
B)price skimming.
C)psychological pricing.
D)intensive pricing.
E)emotional pricing.

Question 38

The perceived value of a product by consumers is an important consideration when pricing that product

Question 39

When a computer company initially charged a low price for a new computer and then raised the price after gaining a large market share,it was using which pricing strategy?

A)Low-ball
B)Subterranean
C)Psychological
D)Skimming
E)Penetration

Question 40

The financial value placed on an object involved in an exchange is

A)the price.
B)the discount.
C)comparable value.
D)negotiated value.
E)nominal value.

Question 41

The major variable of the marketing mix that uses marketing middlemen is

A)product.
B)distribution.
C)promotion.
D)price.
E)research and development.

Question 42

Which distribution channel would be likely for fruits and vegetables sold at a roadside stand?

A)Agent to wholesaler to retailer
B)Producer to consumer
C)Retailer to consumer
D)Merchant to wholesaler
E)Middleman to producer

Question 43

If a company's goal is to develop an image of having very high-quality luxury products,it should employ a

A)penetration pricing strategy.
B)price skimming strategy.
C)psychological pricing strategy.
D)prestige pricing strategy.
E)rational pricing strategy.

Question 44

If XYZ Company buys televisions from a manufacturer and then sells them to department stores,it is probably a

A)retailer.
B)producer.
C)consumer.
D)wholesaler.
E)manufacturer.

Question 45

What are objectives behind pricing,and what different considerations go into determining the price of a product?

Question 46

Retailers generally buy from producers or from other wholesalers and sell to other retailers but not ultimate consumers.

Question 47

Physical distribution includes inventory control,transportation,warehousing and materials handling.

Question 48

Name two pricing strategies a firm might use.

Question 49

A marketing channel includes all of the following except

A)producers.
B)retailers.
C)wholesalers.
D)consumers.
E)secondary stakeholders.

Question 50

Distribution channels for consumer products and business products are the same.

Question 51

Whether to distribute a product intensively,selectively,or exclusively depends on buyer behavior,the nature of the target market,and the competition.

Question 52

If a cosmetics company is selling eye shadow priced at $11.99 rather than $12,it is using

A)price skimming.
B)penetration pricing.
C)psychological pricing.
D)rational pricing.
E)low-ball pricing.

Question 53

Pharmaceutical companies sometimes use which of the following pricing strategies to price their over-the-counter drugs?

A)Penetration pricing
B)Even/odd pricing
C)Symbolic/prestige pricing
D)Price skimming
E)Price dipping

Question 54

Convenience products such as bread,milk,and gum would probably be marketed

A)selectively.
B)intensively.
C)weakly.
D)exclusively.
E)sporadically.

Question 55

A marketing channel is a group of marketing organizations that move products from producers to consumers.

Question 56

Services are usually distributed through

A)direct marketing channels.
B)indirect channels.
C)a wholesaler.
D)an agent.
E)a retailer and a wholesaler.

Question 57

The best products in the world will not be successful unless companies make them available where and when consumers want to buy them.

Question 58

Selective distribution

A)combines planned distribution systems under one management.
B)makes a product available in as many outlets as possible.
C)gives a middleman the sole right to sell a product in a defined geographic territory.
D)uses only a small proportion of all available outlets to expose products.
E)is appropriate for convenience products.

Question 59

An example of a product distributed through Channel B,producer to retailer to consumer,is

A)a chair from Target.
B)lemonade at a roadside stand.
C)office supplies for use at a business.
D)soft drinks.
E)candy.

Question 60

Exclusive distribution makes a product available in as many outlets as possible.

Question 61

Advertising is direct,two-way communication with buyers and potential buyers.

Question 62

High-quality items such as musical instruments,sailboats,and airplanes would probably use what distribution coverage?

A)Selective
B)Intensive
C)Relaxed
D)Exclusive
E)Sporadic

Question 63

Marketers are beginning to blur the lines between television ads and the Internet by directing consumers to a website for more information.

Question 64

The role of promotion is to communicate with individuals,groups,or organizations to facilitate an exchange directly or indirectly.

Question 65

All of the following activities are associated with warehousing goods except

A)receiving.
B)identifying.
C)producing.
D)dispatching.
E)storing.

Question 66

The Internet is not a valid advertising medium.

Question 67

The type of transportation specifically noted for its flexibility in transporting products is

A)pipelines.
B)airplanes.
C)trucking.
D)railroads.
E)ships.

Question 68

What are the different levels of market coverage intensity and what products are each level best for?

Question 69

The form of communication that attempts to facilitate a marketing exchange by influencing people,groups,or organizations is

A)product.
B)promotion.
C)advertising.
D)distribution.
E)price.

Question 70

Factors such as characteristics of the intended audience,the objective,and the platform used can all affect how an advertising campaign is constructed and its message.

Question 71

When Honda pays a television network to air its commercial,it is using

A)publicity.
B)advertising.
C)personal selling.
D)sales promotion.
E)packaging.

Question 72

Which of the promotion mix variables is best for promoting expensive products with specialized uses,such as houses?

A)Publicity
B)Advertising
C)Personal selling
D)Sales promotion
E)Packaging

Question 73

Stimulating demand is especially important when a firm is using a pull strategy.

Question 74

Why are wholesalers an important part of many marketing channels?

Question 75

The use of a pull strategy means that marketers attempt to motivate middlemen to make a product available to their customers.

Question 76

What is physical distribution?

Question 77

Inventory handling,transportation,and warehousing are all examples of activities of

A)management.
B)inventory planning and control.
C)physical distribution.
D)marketing.
E)departmentalization.

Question 78

Which of the following modes of transportation is the least expensive for many products?

A)Railroad
B)Trucking
C)Air transport
D)Shipping
E)Pipelines

Question 79

Many people incorrectly equate promotion with

A)advertising.
B)selling.
C)pricing.
D)product designing.
E)distribution.

Question 80

Promotion is used only to sell products.