Question 1

Non profits
-To develop an effective product-positioning strategy that can be implemented successfully, it must include the following except

Accepted Answer

To develop an effective product-positioning strategy that can be implemented successfully, it must include the following except supply chain analysis. A product-positioning strategy must investigate a company's resources as well as the external environment's readiness for the positioning of brands and products. An internal analysis illuminates financial and human resources capabilities to implement the strategy, while a competitor analysis examines products against which the company's desired ones are to be positioned. Customer and market analysis examine the readiness of consumers to respond to the positioning strategy.

Question 2

Non profits
-Product differentiation uses product descriptors to distinguish it from competitors using the following except------ .

Accepted Answer

Product differentiation uses product descriptors to distinguish it from competitors using the following except availability. Brand is the most powerful tool in product differentiation. It describes the product and influences a consumer's perception of it. Product features are important descriptors, which differentiate a product from others while an advantage is developed to distinguish it from competitors' offerings. Finally, the benefit to the consumer is a significant descriptor in product differentiation.

Question 3

Non profits
-Product positioning abroad depends on------------.

Accepted Answer

Product positioning abroad depends on price strategy, communication strategy, and differentiation strategy. International marketing companies must manage brand and product perceptions in different countries. Products may not have the same level of acceptance and preference in all countries in which they are sold. To improve consumer perception of these products, marketing firms must devise a price strategy as well as a promotions and advertising communication strategy that are appropriate to the country. Marketing firms must also differentiate products in foreign markets from local offerings and other competitors' products.

Question 4

Non profits
-Kotler has identified four main positioning errors except

Accepted Answer

Kotler has identified four main positioning errors except underpricing. When consumers have limited information about a brand, then it has been underpositioned in the market. Conversely, when consumers have a narrow view of a product or a brand image, so they know only of some of its offerings, it is overpositioned. When marketers make numerous changes to a brand or a product, this leads to confusion among consumers and a vague perception of its qualities and descriptors. Finally, when marketers make claims about a product's qualities or performance that seem too good to be true to consumers, then doubtful positioning occurs in the minds of consumers.

Question 5

Non profits
-Over a period of six years, Colgate released four descriptors of their natural whitening line of products, which led to consumers being uncertain of its distinct advantage. This is referred to as------ .

Accepted Answer

Over a period of six years, Colgate released four descriptors of their natural whitening line of products, which led to consumers being uncertain of its distinct advantage. This is referred to as confused positioning. Product descriptors are an important aspect of product differentiation in positioning strategies. When a company changes descriptors for a product or a line of products frequently, it risks confusing consumers and creating a poorly differentiated, confused positioning.

Question 6

Non profits
-Special K is a brand of the Kellogg Company's breakfast cereals. The brand is primarily marketed as a healthy alternative in weight management in what is termed------ .

Accepted Answer

Special K is a brand of the Kellogg Company's breakfast cereals. The brand is primarily marketed as a healthy alternative in weight management in what is termed benefit positioning. Benefit positioning is a positioning strategy that highlights the unique benefits that the product offers its consumers. In this case, the diet and weight management benefit is emphasized and is the primary marketing position, while others, such as taste and price, take a secondary role.

Question 7

Non profits
-In a vehicle show in New York City, BMW, Audi, and Mercedes were placed against one another in what is referred to as------ .

Accepted Answer

In a vehicle show in New York City, BMW, Audi, and Mercedes were placed against one another in what is referred to as competitor positioning. Competitor positioning is a positioning strategy that stresses the use of competitors to show the product in a favorable light. Typically, some products, such as luxury cars, are positioned directly against each other in a competition for the special consumer seeking one. The makers of BMW, Audi, and Mercedes are essentially competing for this consumer, who must be impressed with car specifications, such as speed, safety, and luxury offerings.

Question 8

Pricing
-United Airlines offers a new price on all its continental United States flights departing on Tuesday and Wednesday. This price is only available to clients who purchase their tickets from an online vendor in what is termed

Accepted Answer

United Airlines offers a new price on all its continental United States flights departing on Tuesday and Wednesday. This price is only available to clients who purchase their tickets from an online vendor in what is termed Internet pricing. Internet pricing is a strategy deployed by companies to offer prices that are different on an Internet website than through a store or a dedicated agent. The goal of selling their online tickets cheaper than other sales outlets is to allow United Airlines to boost online sales and offer convenience purchasing. The benefit of this strategy is to increase profits by shifting sales to a venue that has fewer costs (such as employees and brick-and-mortar expenses).

Question 9

Pricing
-Given a recent shift in a small town's economy, a significant proportion of the town's working age individuals have lost their jobs. The local big-box retailer decides to sell its non-perishable goods at a price that only recoups its costs in what is termed

Accepted Answer

Given a recent shift in a small town's economy, a significant proportion of the town's working age individuals have lost their jobs. The local big-box retailer decides to sell its non-perishable goods at a price that only recoups its costs in what is termed break-even pricing. Break-even pricing is a strategy whereby a product is priced in such a manner that a company is able to recover the costs of developing/purchasing that product. This big-box retailer is using this strategy to adapt to the economic shift in the town with fewer people capable of purchasing non-perishable products. A break-even pricing strategy aids in moving inventory and recovering costs.

Question 10

Pricing
-Jane waits for a sale announcement at her favorite shoe store for the latest in the brand she likes. When she arrives at the store, she finds that the store has sold out the brand and put a more expensive brand in its place in what Jane suspects is an example of------ pricing.

Accepted Answer

Jane waits for a sale announcement at her favorite shoe store for the latest in the brand she likes. When she arrives at the store, she finds that the store has sold out the brand and put a more expensive brand in its place in what Jane suspects is an example of bait-and-switch pricing. Bait-and-switch pricing strategy is a type of fraudulent advertising in retail sales. The goal of this strategy is to attract the customers to low-priced, desirable products and then declare them sold out. The customers are offered higher-priced alternatives.

Question 11

Pricing
-Two Sports/Complex stores are offering discounted uniforms to high school students in the district. The stores are in a------conflict on the quantity and discount rate that would be offered in what is considered.

Accepted Answer

Two Sports/Complex stores are offering discounted uniforms to high school students in the district. The stores are in a horizontal conflict on the quantity and discount rate that would be offered in what is considered. A horizontal conflict occurs between two stores of the same franchise that are in disagreement over aspects of pricing strategies. In this example, the two stores cannot agree on how much to sell to high school teams in a district and at what rate of discount. The resolution of this conflict is necessary before products are offered in the market.

Question 12

Pricing
-A women's clothing retailer adds a standard markup of 25% to the cost of its business-wear lines in an example of------ pricing.

Accepted Answer

A women's clothing retailer adds a standard markup of 25% to the cost of their business-wear lines in an example of cost-plus pricing. Cost-plus pricing allows companies and retailers to maximize profit by adding standard price markups to products and services. Also known as markup pricing, this strategy increases the profit margin of the product and helps the company reach its target rate of return in the sale of goods.

Question 13

Pricing
-Marketers realize that price markups are not desirable because

Accepted Answer

Marketers realize that price markups are not desirable because they ignore consumer demand. Markup is calculated as the difference between the cost of manufacturing a product or providing a service and its selling price. Manufacturers and businesses add a markup to turn a profit from their product or service. Despite their convenience, price markups are often not desirable because they lead to suboptimal prices (either too low or too high). Suboptimal pricing can lead to the product not selling well and disconnects it from consumer demand.

Question 14

Pricing
-Platinum Vitamins has earned a solid reputation in the health and nutrition market for its fish-based supplements, such as Omega-3 pills. The company determines that it will expand its offerings to non-fish-based products, given new public health trends emerging, and must determine their prices through

Accepted Answer

Platinum Vitamins has earned a solid reputation in the health and nutrition market for its fish-based supplements, such as Omega-3 pills. The company determines that it will expand its offerings to non-fish-based products, given new public health trends emerging, and must determine their prices through product line pricing. When a company concentrates its offerings on a single product or line, it begins to gain a reputation based on the quality and popularity of that product. However, when the company begins to offer new lines of products, it faces difficult decisions on how to price them. This is because not only does the company need to pay attention to competitors' prices, but also to what their current customers have grown accustomed to with present lines.

Question 15

Pricing
-Pricing objectives differ by a company's product lifecycle and stage of market evolution. An emerging company will

Accepted Answer

Pricing objectives differ by a company's product lifecycle and stage of market evolution. An emerging company will maximize current sales revenues. Pricing objectives across companies depend on a company's stage of market evolution, such as an emerging company or a mature one. In an emerging company, maximizing profits and revenue are important to gain a greater market share.

Question 16

Pricing
-Despite a nearly 25% increase in the overall cost of shipping and handling, as well as a 10% increase in raw material prices, Magnum Manufacturing has kept its line of office furniture priced at the same levels as pre-2006. The popular items illustrate the company's use of------.

Accepted Answer

Despite a nearly 25% increase in the overall cost of shipping and handling, as well as a 10% increase in raw material prices, Magnum Manufacturing has kept its line of office furniture priced at the same levels as pre-2006. The popular items illustrate the company's use of price stickiness. Price stickiness occurs when prices or sets of prices are resistant to change despite changes in the overall economic condition. For instance, increases in oil prices often lead to increases in shipping costs, which are transferred to customers in higher prices. Companies that keep their prices unchanged are said to be applying price stickiness. Price stickiness can be "up" or "down," which means high prices remain high while low prices remain low.

Question 17

Pricing
-A local bank determines that many of its services have low customer engagement and interest, resulting in poor sales returns. Management gathers sales and marketing teams to determine the following service pricing strategy and determinants, which do not include

Accepted Answer

A local bank determines that many of its services have low customer engagement and interest, resulting in poor sales returns. Management gathers sales and marketing teams to determine the following service pricing strategy and determinants, which do not include stock market conditions. Pricing determinants include conditions of the company, products, competition, and the market. For example, the size and market evolution of a company determine its pricing strategy. Similarly, the condition of the products as well as the competition determine how a company prices its products.

Question 18

Pricing
-Healthful Foods, Inc. is launching a new line of vegan and gluten-free products after responding to customers' feedback. Since the company is a pioneer in specialty foods in its area, it prices these new products with an eye on future competitors through

Accepted Answer

Healthful Foods, Inc. is launching a new line of vegan and gluten-free products after responding to customers' feedback. Since the company is a pioneer in specialty foods in its area, it prices these new products with an eye on future competitors through new product pricing. New product pricing is a difficult process, which is often done after extensive market research and surveying. With the use of test market data, as well as competitors' pricing, a company such as Healthful Foods, Inc. can determine the best prices for their new line of products. As an example of new product pricing, the company can employ penetration pricing, which takes into consideration the long-term possibility of competitors entering the market and offering similar products.

Question 19

Pricing
-GrowRight is an international organic food distributor with subsidiaries in over 7 countries. The company adds a 1.5% fee to full costs incurred by subsidiaries to cover marketing and development in what is referred to as a------ strategy.

Accepted Answer

GrowRight is an international organic food distributor with subsidiaries in over 7 countries. The company adds a 1.5% fee to full costs incurred by subsidiaries to cover marketing and development in what is referred to as a cost-based transfer pricing strategy. This strategy is utilized by international corporations to recover the cost of the product reaching the subsidiary, as well as marketing costs. This additional amount added to a full cost often covers logistical and research activities as well. In transfer pricing, local taxes and expenses will also be added as part of the strategy.

Question 20

Pricing
-Market-based pricing is also referred to as

Accepted Answer

Market-based pricing is sometimes also called arm's length pricing. This is because this type of pricing happens between distant (or arm's length) parties. The main goal of transfer pricing is to make sure that a corporation gains profits at all stages of international transactions. A market-based transfer pricing strategy will allow these companies to purchase goods at low prices even from subsidiaries. An international marketing company's market prices will be lower than the full cost of foreign pricing; thus, the pricing will favor market-based strategies.

Quiz 6: CLEP: Marketing

Non profits -To develop an effective product-positioning strategy that can be implemented successfully, it must include the following except

Non profits -Product differentiation uses product descriptors to distinguish it from competitors using the following except------ .

Non profits -Product positioning abroad depends on------------.

Non profits -Kotler has identified four main positioning errors except

Non profits -Over a period of six years, Colgate released four descriptors of their natural whitening line of products, which led to consumers being uncertain of its distinct advantage. This is referred to as------ .

Non profits -Special K is a brand of the Kellogg Company's breakfast cereals. The brand is primarily marketed as a healthy alternative in weight management in what is termed------ .

Non profits -In a vehicle show in New York City, BMW, Audi, and Mercedes were placed against one another in what is referred to as------ .

Pricing -United Airlines offers a new price on all its continental United States flights departing on Tuesday and Wednesday. This price is only available to clients who purchase their tickets from an online vendor in what is termed

Pricing -Given a recent shift in a small town's economy, a significant proportion of the town's working age individuals have lost their jobs. The local big-box retailer decides to sell its non-perishable goods at a price that only recoups its costs in what is termed

Pricing -Jane waits for a sale announcement at her favorite shoe store for the latest in the brand she likes. When she arrives at the store, she finds that the store has sold out the brand and put a more expensive brand in its place in what Jane suspects is an example of------ pricing.

Pricing -Two Sports/Complex stores are offering discounted uniforms to high school students in the district. The stores are in a------conflict on the quantity and discount rate that would be offered in what is considered.

Pricing -A women's clothing retailer adds a standard markup of 25% to the cost of its business-wear lines in an example of------ pricing.

Pricing -Marketers realize that price markups are not desirable because

Pricing -Pricing objectives differ by a company's product lifecycle and stage of market evolution. An emerging company will

Pricing -Despite a nearly 25% increase in the overall cost of shipping and handling, as well as a 10% increase in raw material prices, Magnum Manufacturing has kept its line of office furniture priced at the same levels as pre-2006. The popular items illustrate the company's use of------.

Pricing -A local bank determines that many of its services have low customer engagement and interest, resulting in poor sales returns. Management gathers sales and marketing teams to determine the following service pricing strategy and determinants, which do not include

Pricing -Healthful Foods, Inc. is launching a new line of vegan and gluten-free products after responding to customers' feedback. Since the company is a pioneer in specialty foods in its area, it prices these new products with an eye on future competitors through

Pricing -GrowRight is an international organic food distributor with subsidiaries in over 7 countries. The company adds a 1.5% fee to full costs incurred by subsidiaries to cover marketing and development in what is referred to as a------ strategy.

Pricing -Market-based pricing is also referred to as