Marketing final - n/a PDF

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Continuous Innovation o requires no new learning by consumers Dynamically Continuous Innovation o disrupts consumers normal routine but does not require totally new learning Discontinuous innovation o requires new learning and consumption patterns by consumers Product line extension o Elegant Medleys, new line of fancy feast cat food products o Threat of cannibalization Brand Extension o Colgate kitchen entrees, a line of frozen dinners Radical Invention o First ever 3-d printer from 3-d systems Common marketing reasons for new products failing: o Low product or market attractiveness o Poor product quality Av o i di n g" g r o u p t h i n k "i nme e t i n g sa n dl e a r n i n gt a k e a wa yl e s s o nsf r o mp a s te x p e r i e n c e s c a nh e l pa no r g a ni z a t i ona v o i d : o New product failures A ___________ product’s life cycle does not have the characteristic shape, but instead shows growth, decline, and then reemergence months, years, or even decades later. o Fashion The categories of continuous innovation, dynamically continuous innovation, and discontinuous innovation are based on levels of consumer: o Learning A significant jump in technology has MODERATE RISK Radical invention can lead to revolutionary new products Insignificant points of difference, incomplete protocols, and bad timing are among the reasons for: o New-product failures Which of the following are common organizational reasons for new products to fail? o Requiring ideas to come from internal sources o Failing to challenge assumptions and express dissent A fad product’s life cycle curve has different shape than most product: it typically has two of which of the following: o Rapid sales at introduction o Rapid decline Which of the following are classifications of new products based upon categorizing innovation according to the learning required of the consumer (high, medium, or low)? o Continuous innovation o Discontinuous innovation o Dynamically continuous innovation Pretests for advertising can take several forms, including portfolio tests, jury tests and: o Theater tests

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What refers to the assessments performed before an ad campaign is implemented to ensure the various elements are working in an integrated fashion and doing what they are intended to? o Pretests Product line extension can include the threat of cannibalization Common organizational reasons why new products fail include: o Failing to challenge assumptions and express dissent o Requiring ideas to come from internal sources The new-product process stage of business analysis involves which of the following? o Making financial projections for a new product o Specifying the market strategy needed to bring a new product to market The growth stage and the product life cycle is characterized by increases in which of the following? o Number of competitors o Total industry sales o Locations for distribution Key characteristics of the maturity stage are which of the following? o Intense competition on price occurs o Marketing costs increase to gain new buyers With ______ branding, a company uses one name for all of its products in a product class. o Multiproduct Demand-orientated, cost-orientated, and profit-orientated approaches can be used to set a ______ price level for a product. o Approximate Because several departments might be responsible for various promotional efforts, extra attention should be paid to their ________. o Consistency When a company advertising focuses on selling a good or service rather than building goodwill, the company is using __________ advertisements. o Product One of the biggest differences between advertising and publicity tools is that: o Advertising typically has a direct cost while publicity does not. Sales tools used to support a company’s advertising and personal selling directed to wholesalers, retailers, or distributors are known as _______-orientated sales promotion. o Trade A good is a product that is defined as having ______ attributes. o Tangible While consumer products are purchased by the ultimate consumer, whereas ______ products are purchased by organizations to assist them in providing other products for sale. o Business products The new product process: o New product strategy development o Idea generation

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o Screening and evaluation o Business analysis o Development o Market testing o Commercialization In which stage of the new-product process does an organization use a swot analysis and develop a product protocol? o New product strategy development Which stage is where the idea is turned into a prototype? o Development The new-product process stage of market testing involves: o Using realistic purchase conditions to see if customers will buy o Exposing actual products to prospective customers What stage of the new-product process that positions and launches the new product in full scale production and sales? o Commercialization The different stages a product goes through during its existence is known as the product: o Life cycle During the introduction stage, total industry profit is o Minimal throughout When a product goes into the _______ stage of the product life cycle, the company may eventually remove it from the market. o Decline The product ________ ________ curve can vary in its shape and length and by the rate at which consumers adopt products. o Life cycle Branding provides a way for a firm to: o Distinguish them from competitors Brand _________, commonly among successful and established brands, is a set if human characteristics that are associated with the brand name. o Personality Which of the following criteria are often used in naming successful brands? o Emotional and names without legal restrictions The money or other considerations exchanged for the ownership or use of a product or service is its ___________. o Price Value is defined as: o Perceived benefits divided by the price If total cost is greater than the total revenue, then profit is o Negative Cost orientated: o Target priced the new patio furniture sets by adding 15 percent to the invoice price it paid for those products o considers Competition orientated:

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o Intel slashed its prices to be more similar to those AMD, a rival computer chip maker Demand orientated: o A new energy efficient light bulb was introduced at $3 and it will last 6000 hours. o Approaches to pricing regard expected customer tastes and preferences as the most important factors in the decision. Profit-orientated: o The owner of a vacuum cleaner store sets a target of a 20 percent return on sales Cost orientated approaches to pricing considers which of the following in the setting of a product’s price? o Manufacturing costs o Overhead o Profit Which of the following are profit orientated to setting a price? o Target return pricing o Target profit pricing _______-orientated approaches to pricing set the price to reflect the way the marketer wants consumer to interpret prices relative to competitor’s offerings. o Competition __________-___________ analysis is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. o Break even Setting a price with no variation for product buyers is called a _____ policy. o One-price Reductions in unit costs for a larger order are known as ________ discounts. o Quantity A marketing channel consists of ___________ involved in the process of making a product or service available for use or consumption by consumers or industrial users. o Individuals and firms Wholesalers are intermediaries who sell to _________ o Other intermediaries Amazon and Orbitz are both part of ________ marketing channels. o Internet ________ marketing is the blending of different communication and delivery channels, both traditional and online, to create value for the customer. o Multichannel An arrangement whereby a firm reaches different buyers by employing two or more different channels for the same basic product is known as_________ o Dual distribution _______ marketing systems are professionally managed, and centrally coordinated marketing channels designed to achieve channel economics and maximum marketing impact. o Vertical Intensive distribution means that a manufacturer places its product in ____ outlets. o Many

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When one channel member believes another channel, member is engaged in behavior that prevents it from achieving its goals, __________ arises. o Channel conflict Which of the following are important benefits retailers provide? o Value in the form of consumer utilities o Positive impact on the economy Place utility- wells fargo reaches retail banking customers through 9000 stores and 12000 ATMs Possession utility – CarMax sells used cars with a “no-haggle” policy, and offers tests drives, financing, and trade-ins Form utility – polo allows customers to create their own custom shirts with various options Time utility- sports authority provides equipment for all sports all year round. Form of ownership, level of service, and merchandise line are ways that _____ can be classified. o Retail outlets Retail outlets can be classified by the type of merchandise line; the number of different product lines is known as BREADTH while the number of items within product line is known as DEPTH. Direct selling is a form of ________ retailing. o Nonstore Which of the following is true of vending machines? o Prices for products in them tend to be higher than those in store Shopping online can be preferred over both catalog and store channels for which two reasons? o More variety o In home privacy Which of the following has recently undergone dramatic change as a result of new legislation related to telephone solicitation? o Telemarketing Direct selling typically occurs: o In a consumer’s home or office  Personal interaction or demos The retailing mix includes which of the following? o Retail pricing o Store location The ______ process requires six elements: a source, a message, a channel, a receiver, and the processes of encoding and decoding. o Communication In the communication process, ________ refers to the transformation of the sender’s ideas into a set of symbols o Encoding Which of the following refers to the extraneous factors that can work against effective communication by distorting a message or the feedback received? o Noise

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Advertising and personal selling are part of the ________ mix. o Promotional A manufacturer places a full-page, four color ad in the Times magazine about its new product at the cost of nearly 246,000$ which is an example of: o Advertising What type of selling is a two-way flow of communication between a buyer and a seller designed to influence the buyer’s purchase decision? o Personal Frommer’s travel guides describe out-of-the-way, inexpensive restaurants and hotels, but these establishments cannot buy a mention in the guides. This is an example of: o Public relations Sales promotion is a ________ inducement of value offered to arouse interest in buying a product or service. o Short term Which of the following promotional elements refer to communicating specifically with consumers to generate a response like an order, a visit, or a request for more information? o Direct marketing During which of the following stages of the product life cycle is promotion of the least importance? o Decline Direct orders result from offers than contain all the information to make a decision and complete a transaction. Lead generation results from an offer designed to generate interest in a product and a request for more information. Traffic generation results from an offer designed to motivate people to visit a business. An ad focused on building the image of the U.S. Army is an example of an _________ advertisement. o Institutional Directed at the ultimate consumers, consumer-orientated sales _______ consists of sales tools used to support a company’s advertising and personal selling. o Promotion Which of the following are important points of view when considering a product’s “newness”? o Newness compared with existing products o Newness in legal terms o Newness in the organization’s perspective Which of the following are essential to consider when setting a price? o What will pay for all associated costs, including marketing? o What will provide profit to the company? o What will customers be willing to pay? The difference between an agent and a wholesaler is that the latter o Owns the products it sells Which of the following is true about marketing channels? o Indirect channels are longer than direct ones Self service

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o Asking hotel guests to check in at the kiosk Limited service o Providing salespeople in only the electronics and jewelry departments of a discount store. Full service o Offering shopping assistants and a concierge in a department store. Which of the following characteristics is not one that distinguishes services form other products? o Immobility  Inseparability, inconsistency, intangibility are forms. Which two of the following easily demonstrate retailing’s importance to the global economy? o Sales volume at retailers o Number employees working in retail The feedback loop in the communication process is made up of a response from the receiver, and feedback, the interpretation of the same by the source. Using________ with business buyers is appropriate because they often have specialized needs or technical questions and may need support after the purchase. o Personal selling What is any paid form of nonpersonal communication, about an organization, a product, a service, or an idea by an identified sponsor? o Advertising The push strategy and the pull strategy assist the manufacturer in o Moving a product through the channel of distribution Posttesting most often does what for an advertiser? o Determines if the advertising has accomplished its intended purpose Which of the following are typical ways that a service can be classified? o Profit or nonprofit o Delivery by person or equipment Independent retailers and corporate chains are two forms of retail __________. o Ownership Which of the following is an advantage of television home shopping? o Broad reach o Available in millions of homes Which of the following are advantages of using direct mail and catalogs? o Fast and convenient for the customer o Lower cost to quire new customers compared to store The _____ stage of the new-product process assesses the total business fit of the proposed new product with the company’s mission and objectives, from whether the product can be economically developed and manufactured of the marketing strategy needed to have it succeed in the marketplace. o Business analysis The growth stage of the product life cycle is characterized by more competition and a ______ in sales. o Rapid increase

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The _______ stage of the product life cycle is characterized by a slowing of growth in total industry sales or product class revenue. o Maturity A firm that would typically be called _________ in consumer markets would perform the same functions as a distributor in business markets. o Wholesaler Retailing mix includes: o Store location o Retail pricing Which of the following responses do sellers hope to create through its use of direct marketing? o Lead generation o Traffic generation o Direct orders Following the execution of an advertising program, the marketer the must assess it. This is typically accomplished with_______. o Posttesting Wholesalers are intermediaries who sell to o Other intermediaries Retailers can be categorized in terms of the breadth and depth of the product lines they carry. Disadvantages of mail catalogs: o No green o Increasing production and mailing costs...