Deck 12: Dimensions of Marketing Strategy

Question 1

Raw materials are natural products taken from the earth and are a subset of business products.

Answer 1

True
Explanation: Raw materials-natural products taken from the earth,oceans,and recycled solid waste-are a subset of business products and are used to create end products.

Question 2

A gallon of milk is an example of a

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

Answer 2

A
Explanation: Convenience products involve many food items,such as milk,eggs,and bread.They are bought without a lengthy search and virtually no time planning where to purchase these goods.

Question 3

If a product is experiencing negative profits and the company is spending a great deal of money on advertising to make consumers aware of the product,the product is most likely in the following life cycle stage:

A) growth.
B) decline.
C) introduction.
D) maturity.
E) intermediate.

Answer 3

C
Explanation: In the introductory stage,consumer awareness and acceptance of the product are limited,sales are zero,and profits are negative.

Question 4

Products such as furniture,audio equipment,bicycles,and clothing are generally classified as

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

Question 5

A product's profits peak and start to decline during which of the life cycle stages?

A) Death
B) Decline
C) Maturity
D) Growth
E) Introduction

Question 6

If a nationwide sandwich shop company introduces a new sandwich in the Midwest to try out its marketing strategy before offering the product across the country,it is using

A) idea screening.
B) commercialization.
C) concept testing.
D) menu experimentation.
E) test marketing.

Question 7

Diet Coke is a

A) generic brand.
B) private distributor brand.
C) brand mark.
D) brand name.
E) brand denotation.

Question 8

Profits are negative in the growth stage.

Question 9

Most new product ideas are rejected during the business analysis phase.

Question 10

New product ideas can come from customers.

Question 11

Industrial products such as lumber,cotton,and iron are classified as

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

Question 12

Most new product ideas are rejected during which stage because they seem inappropriate for the organization?

A) Idea development
B) Business analysis
C) Idea screening
D) Product development
E) Test marketing

Question 13

During which stage does the firm gear up for full-scale production,distribution,and promotions?

A) Idea development
B) Commercialization
C) Product development
D) Test marketing
E) Idea screening

Question 14

Of the thousands of products introduced every year,most succeed.

Question 15

Consumers spend very little time planning where to buy shopping products.

Question 16

If a company is eliminating certain models of a product and cutting back on expenditures,the product is most likely in which life cycle stage?

A) Growth
B) Decline
C) Introduction
D) Intermediate
E) Maturity

Question 17

Successful companies offer at least one dimension of value that surpasses all competitors in meeting customer expectations.

Question 18

A light bulb used to provide light for workers on an assembly line would be classified as what type of product?

A) Mechanical
B) Technical
C) Business
D) Commercial
E) Consumer

Question 19

Magazines located next to the checkout counter at a grocery store would probably be classified as

A) shopping products.
B) convenience products.
C) processed materials.
D) specialty products.
E) accessory equipment.

Question 20

Products can be goods,services,and ideas.

Question 21

Price is the least flexible variable in the marketing mix.

Question 22

Price skimming is charging a low price to help a product enter the market and gain market share rapidly.

Question 23

Which of the following is not a common pricing objective?

A) Maintaining the status quo
B) Boosting market share
C) Maximizing profits and sales
D) Survival
E) Outsourcing

Question 24

Which of the following is the most flexible variable in the marketing mix?

A) Product
B) Production
C) Place
D) Promotion
E) Price

Question 25

What identifies products and distinguishes them from other products?

Question 26

Because buyers have limited ____________,they must allocate them in such a way as to obtain the products they most desire.

A) resources
B) time
C) patience
D) storage space
E) attention spans

Question 27

Penetration pricing is less flexible than price skimming.

Question 28

Price is an important factor in the marketing mix for all of the following reasons except

A) it affects product image.
B) it is very flexible.
C) it directly affects revenue and profits.
D) it is the most visible element in the firm's marketing mix.
E) the ability to set a price depends in large part to the supply and demand for a product.

Question 29

When a company sets a low price for a new product to discourage competition from entering the market,it is using the

A) even/odd strategy.
B) price skimming strategy.
C) psychological pricing strategy.
D) penetration pricing strategy.
E) symbolic pricing strategy.

Question 30

How are products classified according to their use?

Question 31

Private distributor brands

A) are identified by manufacturer.
B) are used to reduce the efficiency of production.
C) are owned and controlled by a wholesaler or retailer.
D) are owned and controlled by a manufacturer.
E) have no brand name at all.

Question 32

Maximizing profits and sales,boosting market share,maintaining the status quo,and survival are common pricing objectives.

Question 33

Pricing objectives are influenced solely by marketing mix decisions.

Question 34

Price discounts are often employed to boost sales.

Question 35

The pricing policy that allows a company to cover a product's development costs most quickly is

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

Question 36

The perceived value of a product by consumers is an important consideration when pricing that product

Question 37

Identify and describe the stages in the product life cycle.Provide an example of a product at each stage of the lifecycle.

Question 38

The financial value placed on an object involved in an exchange is

A) the price.
B) the discount.
C) comparable value.
D) negotiated value.
E) nominal value.

Question 39

When a computer company initially charged a low price for a new computer and then raised the price after gaining a large market share,it was using which pricing strategy?

A) Discount
B) Survival
C) Psychological
D) Skimming
E) Penetration

Question 40

__________ encourages consumers to make purchases based on emotion,rather than rational considerations about the price.

A) Price skimming
B) Discount Pricing
C) Penetration pricing
D) Promotions
E) Psychological pricing

Question 41

If a cosmetics company is selling eye shadow priced at $11.99 rather than $12,it is using

A) price skimming.
B) penetration pricing.
C) psychological pricing.
D) rational pricing.
E) discount pricing.

Question 42

Distribution channels for consumer products and business products are the same.

Question 43

Selective distribution

A) combines planned distribution systems under one management.
B) makes a product available in as many outlets as possible.
C) gives a middleman the sole right to sell a product in a defined geographic territory.
D) uses only a small proportion of all available outlets to expose products.
E) is appropriate for convenience products.

Question 44

Services are usually distributed through

A) direct marketing channels.
B) indirect channels.
C) a wholesaler.
D) an agent.
E) a retailer and a wholesaler.

Question 45

If a company's goal is to develop an image of having very high-quality luxury products,it should employ a

A) penetration pricing strategy.
B) price skimming strategy.
C) psychological pricing strategy.
D) prestige pricing strategy.
E) rational pricing strategy.

Question 46

Physical distribution includes inventory control,transportation,warehousing,and materials handling.

Question 47

An example of a product distributed through Channel B,producer to retailer to consumer,is

A) a chair from Target.
B) a company jet.
C) office supplies for use at a business.
D) soft drinks.
E) candy.

Question 48

Name two pricing strategies a firm might use.

Question 49

What are objectives behind pricing,and what different considerations go into determining the price of a product?

Question 50

Convenience products such as bread,milk,and gum would probably be marketed

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

Question 51

Whether to distribute a product intensively,selectively,or exclusively depends on buyer behavior,the nature of the target market,and the competition.

Question 52

Retailers generally buy from producers or from other wholesalers and sell to other retailers but not ultimate consumers.

Question 53

The major variable of the marketing mix that uses marketing middlemen is

A) product.
B) distribution.
C) promotion.
D) price.
E) research and development.

Question 54

Pharmaceutical companies sometimes use which of the following pricing strategies to price their over-the-counter drugs?

A) Penetration pricing
B) Even/odd pricing
C) Symbolic/prestige pricing
D) Discounting
E) Price dipping

Question 55

Exclusive distribution makes a product available in as many outlets as possible.

Question 56

A marketing channel includes all of the following except

A) producers.
B) retailers.
C) wholesalers.
D) consumers.
E) secondary stakeholders.

Question 57

The best products in the world will not be successful unless companies make them available where and when consumers want to buy them.

Question 58

If XYZ Company buys televisions from a manufacturer and then sells them to department stores,it is probably a

A) retailer.
B) producer.
C) consumer.
D) wholesaler.
E) manufacturer.

Question 59

Which distribution channel would be likely for fruits and vegetables sold at a roadside stand?

A) Agent to wholesaler to retailer
B) Producer to consumer
C) Retailer to consumer
D) Merchant to wholesaler
E) Middleman to producer

Question 60

A marketing channel is a group of marketing organizations that move products from producers to consumers.

Question 61

What are the different levels of market coverage intensity and for what products is each level best suited?

Question 62

Why are wholesalers an important part of many marketing channels?

Question 63

The use of a pull strategy means that marketers attempt to motivate middlemen to make a product available to their customers.

Question 64

Many people incorrectly equate promotion with

A) advertising.
B) selling.
C) pricing.
D) product designing.
E) distribution.

Question 65

The role of promotion is to communicate with individuals,groups,or organizations to facilitate an exchange directly or indirectly.

Question 66

Advertising is direct,two-way communication with buyers and potential buyers.

Question 67

High-quality items such as musical instruments,sailboats,and airplanes would probably use what distribution coverage?

A) Selective
B) Intensive
C) Relaxed
D) Exclusive
E) Sporadic

Question 68

The Internet is not a valid advertising medium.

Question 69

When Honda pays a television network to air its commercial,it is using

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

Question 70

Marketers are blurring the lines between television ads and the Internet by directing consumers to a website for more information.

Question 71

Inventory handling,transportation,and warehousing are all examples of activities of

A) management.
B) inventory planning and control.
C) physical distribution.
D) marketing.
E) departmentalization.

Question 72

Stimulating demand is especially important when a firm is using a pull strategy.

Question 73

Factors such as characteristics of the intended audience,the objective,and the platform used can all affect how an advertising campaign is constructed and its message.

Question 74

Which of the following modes of transportation is the least expensive for many products?

A) Railroad
B) Trucking
C) Air transport
D) Shipping
E) Pipelines

Question 75

Which of the promotion mix variables is best for promoting expensive products with specialized uses,such as houses?

A) Publicity
B) Advertising
C) Personal selling
D) Sales promotion
E) Packaging

Question 76

What is physical distribution?

Question 77

The form of communication that attempts to facilitate a marketing exchange by influencing people,groups,or organizations is

A) product.
B) promotion.
C) advertising.
D) distribution.
E) price.

Question 78

Promotion is used only to sell products.

Question 79

The type of transportation specifically noted for its flexibility in transporting products is

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

Question 80

All of the following activities are associated with warehousing goods except

A) receiving.
B) identifying.
C) producing.
D) dispatching.
E) storing.