Exam 9: Marketing: Providing Value to Customers

Brand managers can control the competitiveness of a product.

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately. -Skimming pricing, which would also help Bilby recover some of his initial costs, is a viable option because Stevens has virtually no competition.

_____ is the process whereby a firm gets its products to customers.

Roger Levin owns and manages Forever Yours Jewelers in a Midwestern city. Sales clerks are especially trained in meeting customer needs, and the Levin family itself is committed to promoting the image of the store and its products and services. Levin buys frequent spots on a local radio station, and holds monthly giveaway contests to give away $200 items of the winner’s choice. Founded by Levin’s grandfather, the family owned business has been around for 65 years and enjoys an enviable reputation in the community. Recently, an article appeared in the local newspaper revealing Levin’s contributions to local charities. -The clerks at Forever Yours contribute to promotion through _____.

When it comes to regulations, businesses actually favor _____.

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately. -It appears that, at this point, penetration pricing is Bilby's best strategy.

How do marketing researchers use focus groups?

Starbucks has a number of effective social media campaigns except:

What's the basic function of an advertising agency?

Psychological and social influences affect buying behavior. Examples of psychological influences are attitudes and personality. Examples of social influences are family and culture.

Supply chain management is the process of integrating all the activities entailed by the supply chain.

A good example of _____ is the process whereby cars are built on moving assembly lines made of skillets large enough to hold workers who move along with the cars while they're being assembled.

If a customer pays $40 for a shirt that's been marked up 100 percent over cost, what price did the retailer pay for it

When she focuses on the flow that begins with the purchase of raw materials and culminates in the sale of a product to end users, Bridgett Hammerschmidt is managing her company's _____.

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately. -If the new line of furniture is of aboveaverage quality, prestige pricing might well work because customers will probably assume that it's of very high quality.

A little ____-say, getting a product mentioned in a newspaper or on TV-can often generate more customer interest than a costly ad.

When we identify a specific group of consumers that have particular interests in our product and the means to buy it, we've identified our target market.

The first step in the fivestep consumer buying process is searching for information about a product.

A company's supply chain includes more activities than does its value chain.

In order to put a marketing concept into practice, you need a _____ for performing two tasks, including selecting a target market.