Deck 12: Dimensions of Marketing Strategy

Question 1

Profits are at their highest when a product is first introduced to the market.

Answer 1

False

Question 2

Although personal selling has many advantages, it is one of the costliest forms of promotion.

Answer 2

True

Question 3

What do marketers hope to gain by developing and managing at least one dimension of value in the marketing mix that surpasses all competitors in meeting customer expectations?

A) a well-defined marketing mix
B) a competitive advantage
C) a clear company vision
D) a marketing concept
E) a company mission statement

Answer 3

a competitive advantage

Question 4

Wholesome Cuisine, a frozen foods company, decides to create a new mail order meal division, focused on offering delicious food that is also healthy and easy to prepare. Wholesome Cuisine forms a team of nutritionists, chefs, food critics, and packaging engineers who work together to develop easy-to-prepare meals that are healthy, balanced, and tasty. Which step in the product development process does this scenario best describe?

A) idea screening
B) business analysis
C) test marketing
D) idea development
E) commercialization

Question 5

Tough Tread, a tire manufacturing company, is in the process of developing a new product. Its R&D team has shortlisted the idea of a tire fitted with a traction device to be used during heavy snowfall. It is in the process of transforming the idea into an actual model. Tough Tread is currently in the ________ stage.

A) idea development
B) business analysis
C) test marketing
D) commercialization
E) product development

Question 6

In what stage of the new product development process would a marketing manager look at the organization's resources and objectives to assess the firm's ability to produce and market a product?

A) business analysis
B) product commercialization
C) idea generation
D) test marketing
E) new idea screening

Question 7

Moe's Cleaning Supply Company has an idea for a cleaner that is universal and can clean any surface type. This could simplify the cleaning process for homeowners as well as janitors and other professional cleaners. The most important question this company should consider when deciding whether to develop this product, in terms of business analysis, is

A) can the firm afford to produce this new product?
B) will enough customers want to replace their existing cleaning supplies with this product?
C) are there any uses for this product in other industries?
D) does this product contain any ingredients that can harm the environment or customers?
E) how will the product affect the firm's sales, costs, and profits?

Question 8

Miller Electronics is getting ready to release a new computer that allows users to talk into its microphone and have the computer transcribe the words into a document. This new computer model will save customers time and the effort of having to use a keyboard to type what they want to write. Miller Electronics is currently in the commercialization step of the product development process. What is something the firm is likely to do at this stage in the process?

A) conduct a minilaunch of this new computer model in a limited area that represents the potential market
B) gear up for full-scale production, distribution, and promotion
C) develop a prototype of this new computer model
D) hire teams to research ideas in computer technology and user experience to further develop this new computer model
E) assess the firm's ability to produce and market this new computer model

Question 9

Emily goes to the grocery store to buy a few items for an upcoming birthday party she is throwing. While waiting in the checkout line, she sees a magazine with an article about her favorite actress. She ends up buying it, along with her other items. This magazine is an example of a(n) ________ product.

A) shopping
B) convenience
C) component
D) specialty
E) accessory

Question 10

Before buying a new mountain bike, Farouk goes to several stores and searches online to compare competitive products in terms of price, features, quality, and style. In this scenario, the mountain bike is an example of a ________ product.

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

Question 11

During a recent hockey game, Patrick broke his stick. When he goes to the sporting goods store to replace it, he considers the price of the stick as well as its quality because he wants to avoid another broken stick. As an avid hockey player, who has used multiple stick brands, Patrick has two brands he prefers over the others, so he narrows his choice down to one of those two brands. The hockey stick in this scenario is an example of a ________ product.

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

Question 12

Derek and Julia are going to see their favorite rock band at a concert. The concert is an example of a ________ product.

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

Question 13

Which is the best example of a specialty product?

A) a designer bridal gown
B) a loaf of bread
C) automobile towing services
D) fast-food items
E) a candy bar

Question 14

In the process of assembling tractors, Earth Movers uses tires, window glass, batteries, and spark plugs, among other things. These items can be classified as

A) major equipment.
B) component parts.
C) accessory equipment.
D) processed materials.
E) raw materials.

Question 15

Paul's Custom Homes builds homes and townhomes. Paint is an example of ________ for this house building company.

A) major equipment
B) office supplies
C) accessory equipment
D) processed material
E) raw material

Question 16

3D White Wild Mint toothpaste, 3D White Brilliance toothpaste, and 3D White Whitening Therapy Enamel Care toothpaste are all products in Crest's

A) product line.
B) marketing mix.
C) product position.
D) product width.
E) product innovation.

Question 17

Ear Check Inc. develops a new ear examination kit that allows customers to check their children for ear infections at home, rather than go to the doctor. Currently, this product is experiencing negative profits, and the company is spending a great deal of money on advertising to make consumers aware of the product. As a result, this product is most likely in the ________ stage of the product life cycle.

A) growth
B) decline
C) introductory
D) maturity
E) intermediate

Question 18

Smart Talk develops a smartphone with a state-of-the-art camera, allowing customers to use their phones as their main photo and video device. This smartphone is currently experiencing the declining sales curve and declining profits that are characteristic of the maturity stage. What is a reason for this decline in sales and profits?

A) limited consumer awareness
B) limited product acceptance
C) too much money spent on research and development
D) lack of emphasis on the product's benefits
E) severe competition

Question 19

What is important for marketers to know regarding a product's progression through the product life cycle?

A) Some products that have moved to the maturity stage or to the decline stage can still rebound through redesign or new uses for the product.
B) The product stages always go one way, and a product's progression through the stages cannot be reversed.
C) Even when products start to decline and new products are introduced to take their place, it can be detrimental to a company's business to phase out any of its products.
D) The only stage in which the product profits is the introductory stage.
E) It is not unusual for technology products to go slowly through the life cycle because these products maintain traction longer than other types of products.

Question 20

Key Builders, an architectural firm, uses an old-fashioned key as a distinctive design that is part of its brand. This key is an example of a

A) generic brand.
B) private distributor brand.
C) trademark.
D) brand mark.
E) manufacturer brand.

Question 21

Namrata is a doctor who prescribes medication to patients for a variety of ailments. Since she knows that most insurance companies will only cover lower priced versions of these medications, she prescribes mostly ________ pharmaceuticals.

A) brand name
B) manufacturer brand
C) private distributor brand
D) generic
E) trademarked

Question 22

Protection, economy, convenience, and promotion are all functions that are performed by a product's

A) label.
B) placement.
C) advertisement.
D) budget.
E) package.

Question 23

Tasty Foods is required by law to include the ingredients, nutrition facts, suggestions for use in recipes, and the manufacturer's contact information on its product packaging. This presentation of important information on the package is known as

A) quality control.
B) labeling.
C) branding.
D) trademarking.
E) packaging standards.

Question 24

Upper Cut is a kitchen knife manufacturer that produces knives that never need to be sharpened. This is an example of

A) product labeling.
B) level of quality.
C) consistency of quality.
D) customer service.
E) proper packaging.

Question 25

It took Time Out Video years to develop its new videogame, establish channels through which to distribute this game, and design and implement its advertising campaign for the game. However, the game's price can be set or changed in a few minutes. This reflects the fact that

A) the product's viability depends on it fitting within standard pricing parameters.
B) pricing is the least important variable in the marketing mix.
C) the quantity demanded goes up as the price goes up.
D) the longer the other marketing mix variables take, the higher the price of the product must be set.
E) price is the most flexible variable in the marketing mix.

Question 26

Choice Motors produces luxury cars with heated leather seats, sleek design features, and expensive technology that includes giving drivers a 360-degree view of the exterior of the car while they are driving. The pricing strategy that would most likely be associated with these cars is

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

Question 27

A company that has developed a new product sets the initial price of the product low in hopes that it can gain market share quickly. What pricing strategy does this represent?

A) prestige pricing
B) symbolic pricing
C) psychological pricing
D) price skimming
E) penetration pricing

Question 28

When Prestige Appliances Inc. releases new appliances, it often uses price skimming and sets the initial price at the highest possible price that buyers are willing to pay. What is a reason Prestige Appliances Inc. would choose price skimming instead of penetration pricing?

A) to help its appliances enter the market and gain market share rapidly
B) because price skimming is more flexible than penetration pricing
C) to prevent competitors from entering the market shortly after its appliances have been introduced
D) to drive competitors out of business
E) because it is easier to raise a penetration price than to lower a skimming price

Question 29

Glamour Skin Care Company sells its face moisturizer for $24.99 rather than $25. Thus, it is using

A) price skimming.
B) penetration pricing.
C) even/odd pricing.
D) rational pricing.
E) discount pricing.

Question 30

Matrix, a high-end manufacturer of men's cologne, charges high prices for its cologne because customers associate high prices with superior quality. This is an example of

A) price skimming.
B) penetration pricing.
C) even/odd pricing.
D) symbolic/prestige pricing.
E) rational pricing.

Question 31

Furry Paws, a local pet store, places its own brand of dog food next to the more established brands. Doing so makes it obvious that Furry Paw's dog food is less expensive than the other brands, thus making it look like a better deal to customers. This is an example of

A) penetration pricing.
B) even/odd pricing.
C) price dipping.
D) discounting.
E) reference pricing.

Question 32

Big Box Wholesale Club sells items in large volumes, which allows it to sell items for less per unit. This is known as a ________ discount.

A) seasonal
B) reference
C) quantity
D) promotional
E) temporary

Question 33

After Christmas, a large discount store places all of its Christmas wrapping paper on sale for 75 percent off. This is an example of

A) a seasonal discount.
B) reference pricing.
C) even/odd pricing.
D) a quantity discount.
E) a promotional discount.

Question 34

A local drug store sent out an advertisement to its customers to let them know that for the month of July, the price for all sunscreen will be sold at 20 percent off the regular price. This is an example of

A) a quantity discount.
B) a seasonal discount.
C) a promotional discount.
D) symbolic/prestige pricing.
E) price skimming.

Question 35

Glowing Scents Candle Company has employed a quantity discount. Which statement describes how Glowing Scents might do this?

A) Glowing Scents puts its gingerbread, pine tree, and eggnog scented candles on sale after Christmas is over.
B) Glowing Scents sends advertisements to its customers letting them know that for the month of June, all tealights are on sale.
C) Glowing Scents prices its candles artificially high to give the impression that they are of high quality.
D) Glowing Scents offers a candle of the month that is $5 less expensive than all the other candles.
E) Glowing Scents offers customers one free candle for every three candles they buy.

Question 36

Fancy Footwear buys shoes for men, women, and children from a large producer and sells them directly to end users. In this scenario, Fancy Footwear is a

A) manufacturer.
B) retailer.
C) financier.
D) wholesaler.
E) customer.

Question 37

A group of organizations that moves products from their producer to customers is called a

A) wholesaler network.
B) marketing channel.
C) transportation channel.
D) utility network.
E) supply web.

Question 38

Special Moments Inc. markets its themed wedding favors, table numbers, and decor via its catalog and website. This is an example of

A) direct selling.
B) direct marketing.
C) wholesaling.
D) intermediary selling.
E) indirect marketing.

Question 39

Jolene markets kitchen accessories, such as can openers, garlic presses, and apple corers and slicers, by going to people's homes and giving face-to-face sales presentations. This is known as

A) direct selling.
B) direct marketing.
C) in-store retailing.
D) wholesaling.
E) intermediary selling.

Question 40

In a survey of business managers, a disruption in the ________ was viewed as the number-one crisis that could decrease revenue.

A) marketing mix
B) direct sales
C) marketing channel
D) wholesaler functions
E) supply chain

Question 41

Christy sells her handmade jewelry to customers at craft fairs. This is an example of the ________ marketing channel.

A) agent-to-wholesaler-to-retailer
B) producer-to-consumer
C) retailer-to-consumer
D) merchant-to-wholesaler
E) middleman-to-producer

Question 42

Since business customers like to communicate directly with the producers of their products to gain the technical assistance and personal assurances that only the producer can offer, more than half of all business products are sold through

A) wholesaling intermediaries.
B) retailers.
C) industrial distributors.
D) direct marketing channels.
E) manufacturer's agents.

Question 43

Pete's Popcorn tries to make its popcorn available at all locations where a consumer might desire to purchase it, including grocery stores, gas stations, office vending machines, and transportation hubs. Thus, Pete's Popcorn is distributing its popcorn

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

Question 44

To maintain customer satisfaction in selling its luxury cars, Upscale Motors provides salesperson assistance, technical advice, warranties, and repair services. Most of its customers buy these cars after shopping and comparing price, quality, and style. Upscale Motors uses ________ distribution.

A) selective
B) intensive
C) managed
D) exclusive
E) sporadic

Question 45

High-quality items such as hand-crafted musical instruments, sailboats, and designer high-fashion handbags will most likely use ________ distribution.

A) selective
B) intensive
C) relaxed
D) exclusive
E) sporadic

Question 46

Davis Furniture uses ________ to ship its furniture pieces to customers because they can reach more locations. This form of transportation handles freight quickly and economically, offers door-to-door service, and is more flexible in its packaging requirements than several of the other forms of transportation.

A) pipelines
B) airplanes
C) trucks
D) railroads
E) ships

Question 47

What is a reason a company would want its own warehouse?

A) to fulfill its large warehousing needs internationally
B) to avoid paying high fixed costs for public warehouse maintenance
C) to avoid the special handling of goods that public warehouses provide
D) to avoid having total control over distribution
E) to provide customers with more control over their goods

Question 48

When Pure Minerals promotes its facial wash and lotion to adolescents, it emphasizes acne control and clear skin. However, when it promotes its products to adults, it emphasizes wrinkle control and firm skin. This is an example of how

A) the advertising message may use repetition of the brand name to increase brand awareness.
B) characteristics of the people in the target audience influence advertisement content and form.
C) the advertising message may include hard-hitting, high-impact language and symbols to increase large sales.
D) different advertising media can be used to reach a desired audience.
E) important it is for advertisers to use meaningful, familiar, and attractive words, symbols, and illustrations to target the right audience.

Question 49

Daphne works for a pharmaceutical company. Her company sends her to medical conferences several times a year, so she can talk to professionals in the medical field and identify potential buyers of her company's products. What step in the personal selling process does this scenario best describe?

A) approaching
B) prospecting
C) presenting
D) handling objections
E) following up

Question 50

Built Right Electronics recently unveiled its new tablet at a consumer electronics show. Members of the company's top management interacted with the media during the show and, subsequently, several media outlets wrote articles about the new tablet and its features. This scenario exemplifies

A) test marketing.
B) publicity.
C) personal selling.
D) advertising.
E) distribution.

Question 51

A difference between advertising and publicity is that advertising

A) is informative, while publicity is persuasive and informative.
B) provides specific information to persuade a person to act, while publicity seldom calls for action.
C) is carried by mass media for the general public interest, while publicity is paid for by a firm.
D) appears in the mass media once, while publicity can be repeated several times.
E) describes what a firm is doing, while publicity is designed to have an immediate impact.

Question 52

To promote its new computer, Data Strategies seeks out trendsetters in communities and gets them to "talk up" the computer to their friends, family, co-workers, and others. By doing this, Data Strategies is trying to create a trend or acceptance of its product. This is called

A) a publicity stunt.
B) rumor publicity.
C) guerilla advertising.
D) buzz marketing.
E) sales promotion.

Question 53

A department store offers its customers weekly mobile coupons for specific products. This is an example of

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

Question 54

Christina is a saddle fitter for Horsing Around, a company that makes riding saddles. Christina gives a prominent stable owner, Nick, a large discount on one of her company's custom saddles in the hope that Nick will recommend Horsing Around to his clients. This is an example of a(n) ________ strategy.

A) buzz marketing
B) pull
C) push
D) inducement
E) publicity

Question 55

Organic Beauty, a company manufacturing organic cosmetics, body care products, and fragrances, doesn't want to pay the expensive costs of carrying celebrity-sponsored fragrance brands. However, since many of the company's customers want to buy these products, its refusal to carry them has caused decreasing market share. As a result, the company eventually started carrying these sought-after brands. This is an example of how

A) celebrity advertising can motivate intermediaries to push their products down to their customers.
B) negative publicity can lead to change.
C) offering free samples of a product encourages consumers to request it from their favorite retailer.
D) a company can combine the push and pull strategies to become more successful.
E) consumer pull caused a company to change its practices.

Question 56

The most typical objective for promotion is to

A) inform customers of new product offerings.
B) increase demand for a product.
C) remind consumers of a product benefit.
D) stabilize sales.
E) avoid having to use a push strategy.

Question 57

A manufacturer of washing machines and dryers is experiencing a period of decreasing sales. Therefore, it provides rebates and free installation to customers to

A) push retailers to carry its products.
B) maintain sales goals.
C) encourage customers to learn more about the company.
D) remind customers about the benefits of its products.
E) assure current users that they have made the right choice.

Question 58

All of the following are reasons companies use promotion EXCEPT

A) stimulate demand.
B) stabilize sales.
C) make customers forget about other products.
D) inform customers.
E) reinforce customers.

Question 59

Slim Spirits targets its reduced calorie alcoholic beverages toward those who want to drink alcohol without consuming too many calories. This best exemplifies

A) institutional advertising.
B) promotional positioning.
C) a push strategy.
D) a pull strategy.
E) publicity.

Question 60

High Adventure produces a wide range of products for people interested in outdoor activities. Recently, one of the employees in its research division devised a new product called Outerbag. The Outerbag is designed such that all the needs of an adventure enthusiast-tents, sleeping bags, tools, batteries, and shoes-are provided in an extremely lightweight and ergonomically designed bag. The product has already passed the idea screening process. What will be the next step for the management of High Adventure as it develops this product, and what will need to happen to execute the next step?

Question 61

Supersonic Computers is launching its new laptop, which is capable of highly sophisticated sound and multimedia functions. The company reportedly spent millions of dollars in developing this laptop, which will be targeted toward gaming enthusiasts, avid movie watchers, and graphic designers. Which of the two pricing strategies used for new products will be suitable for Supersonic Computers in this scenario?

Question 62

How does supply chain management create alliances between channel members in a distribution system?