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

Question 1

When consumers calculate the value of a product,they look at the benefits and then subtract the cost.

Answer 1

True

Question 2

Successful businesses constantly monitor consumer wants and needs.

Answer 2

True

Question 3

Low prices can help retailers create an attractive total product offer.

Answer 3

True

Question 4

A firm's product line refers to all of the different markets in which it sells the same good or service.

Question 5

The several product lines that a company offers for sale make up that organization's product mix.

Question 6

In order for product differentiation to be effective,real product differences must be identified so that one product is clearly better than others.

Question 7

Marketers utilize pricing,advertising,and packaging to successfully differentiate their products from competitors' products even when actual differences are quite small.

Question 8

The critical component of a total product offer is always a low price.

Question 9

The image created by advertising is part of the total product offer of a product.

Question 10

Creative product differentiation can enable a small business to increase market share.

Question 11

The term product line describes the combination of product mixes offered by a manufacturer.

Question 12

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

Question 13

Price,store surroundings,service,and brand name are all elements that consumers evaluate in a total product offer.

Question 14

A bank's product line may include safety deposit boxes,car loans,and traveler's checks.

Question 15

A product line is a group of products that are physically similar or are intended for a similar market.

Question 16

Successful marketers attempt to think like a consumer and evaluate the value package offered by a good or service.

Question 17

A single product line may contain several competing brands.

Question 18

While service providers offer product lines,they are unable to offer product mixes.

Question 19

From a strategic marketing viewpoint,a total product offer includes all of the tangible attributes of a good or service,and excludes any intangible attributes.

Question 20

Marketing managers are aware that products can take on the characteristics of the store in which they are sold.

Question 21

Brand loyalty refers to the degree to which customers are satisfied with a brand and are committed to further purchases.

Question 22

A trademark is a brand that provides exclusive legal protection for a brand name and a pictorial design.

Question 23

More than any other component of a total product offer,technology has reduced the importance of packaging.

Question 24

The concepts of product lines and product mixes apply to marketers of products and services.

Question 25

A brand includes practically all means of identifying a product.

Question 26

Brand equity refers to those factors that people associate with a specific brand name,such as awareness,perceived quality,and loyalty.

Question 27

Brand names can significantly impact consumer perceptions of a product.

Question 28

Mystic Beverages,a producer of soft drinks,wants to differentiate its products from those of other soft drink providers.To implement this strategy successfully will require Mystic to create recognizable differences in the physical product it offers.

Question 29

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Question 30

While packaging innovations benefit the consumer,they have increased the workload of retailers.

Question 31

The purpose of a brand name is to establish an image of generic goods or services.

Question 32

One function of effective packaging is to attract the attention of consumers.

Question 33

Brand names help sellers with new-product introductions and create an opportunity for higher prices.

Question 34

The benefits provided by a brand name for a buyer include reduced search time,prestige,and quality assurance.

Question 35

Codes on packaging can help stores control inventory.

Question 36

In recent years,the packaging of products has been given a greater role in product promotion.

Question 37

While the packaging of services has not yet captured the attention of businesses,technological improvements will likely create new opportunities.

Question 38

The trend towards large,self-service retailers has increased the importance of packaging.

Question 39

Although their names are similar,brand loyalty and brand equity are unrelated.

Question 40

The Canadian legal system does not offer trademark protection.

Question 41

The product life cycle has five stages.

Question 42

All products follow the product life cycle.

Question 43

Beth works for Champion Industries overseeing the marketing mix for the firm's line of calculators.Beth serves as a brand manager for Champion Industries.

Question 44

Successful firms coordinate pricing objectives and strategies with decisions regarding product design,packaging,branding,distribution,and promotion.

Question 45

A long-run pricing objective of almost all firms is to optimize profit.

Question 46

As consumers evaluate the benefits of a product,price plays a small role.

Question 47

Rebates and zero-percent financing are pricing strategies to create an image of status and exclusivity.

Question 48

Cost-based pricing adds a desired profit margin to the cost of producing a product.

Question 49

The intended goal of brand equity is to establish the firm's brand name as the generic name for the product.

Question 50

Successful firms maintain consistency in the short-run and long-run pricing objectives.

Question 51

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message identified.

Question 52

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

Question 53

Different stages in the product life cycle call for different marketing strategies.

Question 54

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

Question 55

Sometimes a firm will lower prices below their costs in order to build a customer base.

Question 56

Consumer perceptions of product quality are affected by promotions and packaging,but not by the price of the product.

Question 57

Brand value is based on the costs of developing and maintaining a brand in the marketplace.

Question 58

Travelwell manufactures and sells luggage and briefcases.Their marketing research indicates that durability is the attribute that consumers most desire in their luggage and briefcases.Travelwell now emphasizes durability in all of their promotional efforts.This strategy is intended to build brand equity.

Question 59

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

Question 60

In order to achieve a social objective,firms use low prices to enable people with low incomes to buy their product.

Question 61

Ultimately,the price of a good will be determined by the interaction of supply and demand in the marketplace.

Question 62

The target costing strategy establishes a selling price that consumers are willing to pay for a product,and then subtracts a desired profit margin to determine a target cost of production.

Question 63

Total fixed costs are those costs that change when the volume of production changes.

Question 64

Psychological pricing utilizes high prices to create the image of a high quality product.

Question 65

Firms utilizing an everyday low pricing (EDLP)strategy establish a policy of special sales on a regular basis.

Question 66

Target costing is a cost-based pricing strategy.

Question 67

Despite the fact that microeconomic theory places a great deal of emphasis on price,marketers often try to find ways to compete on product attributes other than price.

Question 68

The purpose of break-even analysis is to determine the lowest price a firm can charge and still be able to cover its costs of production.

Question 69

A skimming price strategy involves a low pricing policy intended to attract price-sensitive customers from competitors.

Question 70

Price leadership is a demand-based pricing strategy.

Question 71

A penetration strategy calls for a firm to charge low prices with the intent of attracting a large number of customers and discouraging competition.

Question 72

Demand-based pricing is another name for cost-based pricing.

Question 73

Break-even analysis determines profitability of a firm at various levels of sales.

Question 74

The key to demand-oriented pricing is the recognition that not all producers face the same costs of production.

Question 75

As the Internet grows in popularity,it is likely that more firms will adopt a high-low pricing strategy.

Question 76

Competition-based pricing is a strategy based on what all the other competitors are doing.

Question 77

In the long run,the price of a product is determined by the producer.

Question 78

Variable costs are costs that change with the level of production.

Question 79

The break-even point is that level of sales where total revenues equals total costs.

Question 80

A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.