Market Structures and Marketing Strategies Quiz
176 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the narrowest sense definition of price?

  • The amount of money charged for a product or service (correct)
  • The factor affecting buyer choice
  • The flexibility to quickly change product features
  • The sum of all the values that customers give up to gain benefits

    • Why has price historically been the major factor affecting buyer choice?

  • Due to its direct impact on firm's bottom line profitability (correct)
  • Because it's the only element in the marketing mix that produces revenue
  • As it represents the sum of all values exchanged by customers
  • Because it is the most flexible marketing mix element

    • What makes pricing a big headache for many marketing executives?

  • The difficulty in handling pricing well (correct)
  • Its direct impact on the firm's market share
  • The fact that it is the only element in the marketing mix that produces revenue
  • The inability to change prices quickly

    • Why do smart managers treat pricing as a key strategic tool?

    <p>Due to its direct impact on firm's profitability</p> Signup and view all the answers

    What is the most important aspect of price that determines a firm’s market share and profitability?

    <p>The amount of money charged for a product or service</p> Signup and view all the answers

    How can a small percentage improvement in price impact a firm’s profitability?

    <p>It can produce a large percentage increase in revenue</p> Signup and view all the answers

    What is the pricing challenge according to the text?

    <p>To find the price that captures the value created for customers</p> Signup and view all the answers

    What does cost-based pricing involve according to the text?

    <p>Setting prices based on the costs for producing, distributing, and selling products</p> Signup and view all the answers

    What is one of the two types of value-based pricing mentioned in the text?

    <p>Good-value pricing</p> Signup and view all the answers

    Which element of a company’s broader marketing strategy is price according to the text?

    <p>The only element that produces revenue</p> Signup and view all the answers

    What influences price-setting decisions within a company according to the text?

    <p>Company's marketing mix and overall marketing strategy</p> Signup and view all the answers

    What is the main focus of customer value–based pricing according to the text?

    <p>Using buyers’ perceptions of value as the basis for setting price</p> Signup and view all the answers

    What is the key difference between good-value pricing and value-added pricing?

    <p>Good-value pricing focuses on offering quality and good service at a fair price, while value-added pricing involves adding quality, services, and value-added features to differentiate offers.</p> Signup and view all the answers

    In what way does cost-based pricing influence a company's pricing strategy?

    <p>Cost-based pricing sets prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for the company’s effort and risk.</p> Signup and view all the answers

    How do companies differentiate their offers in value-added pricing?

    <p>By adding quality, services, and value-added features to their offers.</p> Signup and view all the answers

    What is the role of top management in setting prices in large companies?

    <p>Top management often approves the prices proposed by lower-level management or salespeople.</p> Signup and view all the answers

    How do customer perceptions of value affect the prices that they are willing to pay?

    <p>Customers are willing to pay higher prices if they perceive higher quality and more benefits.</p> Signup and view all the answers

    What is the primary focus of good-value pricing?

    <p>The primary focus is on offering quality and good service at a fair price.</p> Signup and view all the answers

    What role does price play in creating customer value and building customer relationships?

    <p>Price plays a key role in creating customer value and building customer relationships</p> Signup and view all the answers

    What sets the ceiling for the price of a product according to the text?

    <p>Customer value</p> Signup and view all the answers

    How does effective customer-oriented pricing involve setting the price?

    <p>Understanding how much value consumers place on the benefits they receive from the product</p> Signup and view all the answers

    What is the focus of cost-based pricing?

    <p>Designing a product and adding up the costs of making the product</p> Signup and view all the answers

    What is the starting point for setting the target price in value-based pricing?

    <p>Analyzing consumer needs and value perceptions</p> Signup and view all the answers

    What does 'good value' refer to according to the text?

    <p>Not the same as low price</p> Signup and view all the answers

    What is one common pricing objective that companies might have?

    <p>Building profitable customer relationships</p> Signup and view all the answers

    What should price decisions be coordinated with to form a consistent and effective marketing program?

    <p>Product design, distribution, and promotion decisions</p> Signup and view all the answers

    Who within the organization is responsible for setting price?

    <p>Management</p> Signup and view all the answers

    What external pricing considerations can impact pricing decisions?

    <p>Government actions</p> Signup and view all the answers

    What determines whether the company has set the right price?

    <p>Customer perception of value and price</p> Signup and view all the answers

    What concept helps the company understand consumer sensitivity to prices?

    <p>Demand curves</p> Signup and view all the answers

    What did the Great Recession cause consumers to rethink?

    <p>The price–value equation</p> Signup and view all the answers

    How have marketers responded to consumers' thriftier ways?

    <p>By increasing emphasis on value-for-the-money pricing strategies</p> Signup and view all the answers

    What do consumers not buy based on alone according to the text?

    <p>Prices alone</p> Signup and view all the answers

    What has a major impact on pricing decisions according to the text?

    <p>Environmental factors such as economy and government actions</p> Signup and view all the answers

    In a purely competitive market, what role do marketing research, product development, pricing, advertising, and sales promotion play?

    <p>They play no role in shaping the market and influencing customer behavior.</p> Signup and view all the answers

    How do sellers in monopolistic competition differentiate their offers to buyers?

    <p>By freely using branding, advertising, and personal selling to set their offers apart.</p> Signup and view all the answers

    What distinguishes the pricing strategies in an oligopolistic market from those in a purely competitive market?

    <p>In an oligopolistic market, sellers are less affected by competitors’ pricing strategies.</p> Signup and view all the answers

    What is the major competitive tool for sellers in an oligopolistic competition?

    <p>Price</p> Signup and view all the answers

    When does demand become elastic?

    <p>When demand changes greatly with a small change in price.</p> Signup and view all the answers

    How do economic factors such as inflation and interest rates affect pricing decisions?

    <p>They affect consumer perceptions of the product’s price and value.</p> Signup and view all the answers

    What pricing strategy involves initially setting high prices to 'skim' the maximum amount of revenue from various segments of the market?

    <p>Market-skimming pricing</p> Signup and view all the answers

    In the context of product life cycles, what pricing strategy involves setting a low initial price to penetrate the market deeply and win a large market share?

    <p>Market-penetrating pricing</p> Signup and view all the answers

    In the context of product mix pricing, what strategy does a company use when it adjusts product prices to account for variations in buyers and situations?

    <p>Adaptive pricing</p> Signup and view all the answers

    What type of pricing structure does a company design to cover all its products and adjust over time to account for different customers and situations?

    <p>Dynamic pricing</p> Signup and view all the answers

    Which external factor can impact a company's pricing decisions?

    <p>Technological advancements</p> Signup and view all the answers

    What is the main focus of good-value pricing as described in the text?

    <p>Balancing price and product quality</p> Signup and view all the answers

    What is the primary objective of market-penetrating pricing strategy?

    <p>Gaining a large market share</p> Signup and view all the answers

    What is the major focus of a company using market-skimming pricing strategy?

    <p>Maximizing short-term revenue</p> Signup and view all the answers

    "Pricing is a dynamic process" implies that:

    <p>&quot;Pricing changes over time&quot;</p> Signup and view all the answers

    "Companies adjust product prices to reflect changes in costs and demand" implies that:

    <p>&quot;Prices are responsive to changes in costs and demand&quot;</p> Signup and view all the answers

    What does 'initiating price changes and reacting to them' signify for a company?

    <p>The company should consider when to initiate price changes and when to respond to them</p> Signup and view all the answers

    What is the primary role of top management in setting prices in large companies as mentioned in the text?

    <p>Setting broad price guidelines and policies</p> Signup and view all the answers

    In product line pricing, what does the company decide on?

    <p>Price steps for the entire set of products</p> Signup and view all the answers

    Which pricing strategy involves the company selling a product at two or more prices to accommodate different customers, product forms, locations, or times?

    <p>Segmented pricing</p> Signup and view all the answers

    What approach involves a company adjusting prices continually to meet the characteristics and needs of individual customers and situations?

    <p>Dynamic and personalized pricing</p> Signup and view all the answers

    When a company faces a price change initiated by a competitor, what are the possible strategic reactions mentioned in the text?

    <p>Sit tight, improve quality and raise price</p> Signup and view all the answers

    What are the major public policy concerns in pricing mentioned in the text?

    <p>Deceptive pricing, price-fixing</p> Signup and view all the answers

    What type of products are described as waste or residual products produced when making the main product?

    <p>By-products</p> Signup and view all the answers

    What is the strategy where a company offers discounts or temporarily sells a product below list price as a special event?

    <p>Promotional pricing</p> Signup and view all the answers

    What is the primary concern when considering initiating a price change?

    <p>Buyer reactions to the price change</p> Signup and view all the answers

    What is one of the implications of initiating price cuts according to the text?

    <p>Influence on buyer reactions to the price change</p> Signup and view all the answers

    What does promotional pricing involve according to the text?

    <p>Selling a product below list price as a special event</p> Signup and view all the answers

    What is one of the key pieces of legislation that affect pricing decisions according to the text?

    <p>Predatory pricing laws</p> Signup and view all the answers

    What type of products are included with the main product and required for its use according to the text?

    <p>Captive products</p> Signup and view all the answers

    What is the term for products that are required for the use of the main product?

    <p>Captive products</p> Signup and view all the answers

    What pricing strategy involves the company selling a product at two or more prices to accommodate different customers, product forms, locations, or times?

    <p>Segmented pricing</p> Signup and view all the answers

    What does dynamic and personalized pricing involve?

    <p>Adjusting prices continually to meet the characteristics and needs of individual customers and situations</p> Signup and view all the answers

    What is the primary focus of market-skimming pricing strategy?

    <p>Setting high prices to skim maximum revenue from various market segments</p> Signup and view all the answers

    What are the major public policy issues in pricing mentioned in the text?

    <p>Price-fixing and predatory pricing</p> Signup and view all the answers

    In value-based pricing, what is the starting point for setting the target price?

    <p>Customer perceptions of value</p> Signup and view all the answers

    What factors should a company consider when responding to competitor’s price changes?

    <p>Understanding the competitor's intent and likely duration and impact of the change</p> Signup and view all the answers

    What type of pricing structure does a company design to cover all its products and adjust over time to account for different customers and situations?

    <p>Pricing structure changes</p> Signup and view all the answers

    What is the role of geographical pricing?

    <p>Deciding how to price to near or distant customers</p> Signup and view all the answers

    How do companies differentiate their offers in value-added pricing?

    <p>By adding features to the product to differentiate it from competitors' offerings</p> Signup and view all the answers

    What does promotional pricing involve?

    <p>Offering discounts or temporarily selling a product below list price as a special event</p> Signup and view all the answers

    What is a common misconception about initiating price changes and reacting to them?

    <p>It always leads to increased market share</p> Signup and view all the answers

    Psychological pricing aims to achieve which objective?

    <p><strong>Better communicating</strong> a product’s intended position</p> Signup and view all the answers

    What strategy does a company use when it adjusts product prices to account for variations in buyers and situations?

    <p>Good-value pricing</p> Signup and view all the answers

    Discount and allowance pricing involves establishing which of the following?

    <p><strong>Cash, quantity, functional, or seasonal discounts</strong></p> Signup and view all the answers

    'Pricing is a dynamic process' implies that:

    <p>Prices change over time based on various factors</p> Signup and view all the answers

    International pricing involves adjusting prices to meet what?

    <p><strong>Different world markets' conditions and expectations</strong></p> Signup and view all the answers

    What makes pricing a big headache for many marketing executives?

    <p>The complexity of considering different customer segments and situations</p> Signup and view all the answers

    In promotional pricing, what does a company sometimes do as a special event?

    <p>Sell below cost as a loss leader.</p> Signup and view all the answers

    'Good value' refers to:

    <p>'Getting more for less'</p> Signup and view all the answers

    What strategy does the company use when it decides on price steps for the entire set of products it offers?

    <p>Product line pricing.</p> Signup and view all the answers

    'Companies adjust product prices to reflect changes in costs and demand' implies that:

    <p>'Value-based' approach influences pricing decisions</p> Signup and view all the answers

    When does demand become elastic?

    <p>When a change in price leads to a proportionally larger change in quantity demanded</p> Signup and view all the answers

    What are some of the functions fulfilled by some members of the distribution channel?

    <p>All of the above</p> Signup and view all the answers

    Why is leadership and power not formally set in a distribution channel composed of independent firms?

    <p>Because traditional distribution channels have lacked leadership for role assignment and conflict management</p> Signup and view all the answers

    What is the first step in channel design according to the text?

    <p>Assessing customer channel service needs</p> Signup and view all the answers

    What does channel management call for according to the text?

    <p>Selecting qualified intermediaries and motivating them</p> Signup and view all the answers

    What does marketing logistics address according to the text?

    <p>Inbound logistics and reverse logistics</p> Signup and view all the answers

    What sets the ceiling for the price of a product?

    <p>Economic factors like inflation and interest rates</p> Signup and view all the answers

    What is the primary concern when considering initiating a price change according to the text?

    <p>Effect on customer perceived value</p> Signup and view all the answers

    What is the primary objective of a market-penetrating pricing strategy according to the text?

    <p>Capturing a large market share quickly</p> Signup and view all the answers

    What is the strategy where a company offers discounts or temporarily sells a product below list price as a special event according to the text?

    <p>Promotional pricing strategy</p> Signup and view all the answers

    What type of pricing structure does a company design to cover all its products and adjust over time to account for different customers and situations according to the text?

    <p>Product mix pricing structure</p> Signup and view all the answers

    Which external factor can impact a company's pricing decisions according to the text?

    <p>Nature and intensity of competition in market</p> Signup and view all the answers

    Why is the goal of logistics management NOT to maximize customer service and minimize distribution costs?

    <p>It is impossible to achieve both goals simultaneously</p> Signup and view all the answers

    What does the integrated supply chain management concept recognize about achieving improved logistics?

    <p>It requires cross-functional teamwork within the company and across the supply chain</p> Signup and view all the answers

    How can companies achieve logistics harmony among functions, according to the text?

    <p>By creating integrative supply manager positions</p> Signup and view all the answers

    What is a form of channel partnership mentioned in the text?

    <p>Creating cross-company teams</p> Signup and view all the answers

    Why are some companies outsourcing their logistics functions to third-party providers?

    <p>To save costs and increase efficiency</p> Signup and view all the answers

    What is the primary focus of logistics management?

    <p>Providing a targeted level of service at the least cost</p> Signup and view all the answers

    How does the integrated supply chain management concept recognize the need for improved logistics?

    <p>By requiring close working relationships across functional areas inside the company and across various organizations in the supply chain</p> Signup and view all the answers

    What is an example of a strategic reaction mentioned in the text when a company faces a price change initiated by a competitor?

    <p>Undertaking a promotional pricing strategy</p> Signup and view all the answers

    What does a company need to create customer engagement and value?

    <p>A value delivery network</p> Signup and view all the answers

    What role do intermediaries play in bringing products to the market?

    <p>Forging marketing channels</p> Signup and view all the answers

    What is the primary reason for most producers to use intermediaries in the distribution process?

    <p>To achieve more than they can on their own</p> Signup and view all the answers

    What is the main focus of a company using a market-skimming pricing strategy?

    <p>Maximizing short-term profits from early adopters</p> Signup and view all the answers

    Why can't a company go it alone in creating customer engagement and value?

    <p>Because it must work within an entire network of partners—a value delivery network—to accomplish this task</p> Signup and view all the answers

    What is the significance of management carefully making channel decisions?

    <p>To incorporate today’s needs with tomorrow’s likely selling environment</p> Signup and view all the answers

    What do marketing channels directly affect?

    <p>Every other marketing decision</p> Signup and view all the answers

    What is the primary function of some help in the distribution channel?

    <p>Gathering and distributing information</p> Signup and view all the answers

    What does channel design begin with, according to the text?

    <p>Assessing customer channel service needs</p> Signup and view all the answers

    In a large company, what provides needed leadership and assigns roles?

    <p>Formal organization structure</p> Signup and view all the answers

    What is the starting point for setting the target price in value-based pricing?

    <p>Identifying major channel alternatives</p> Signup and view all the answers

    What does marketing logistics (or physical distribution) address according to the text?

    <p>The entire supply chain management</p> Signup and view all the answers

    What calls for selecting qualified intermediaries and motivating them?

    <p>Channel management</p> Signup and view all the answers

    What does the company need to forge with channel members to create a marketing system that meets the needs of both the manufacturer and the partners?

    <p>Strong partnerships</p> Signup and view all the answers

    What are three important trends affecting channel cooperation, conflict, and competition?

    <p>Vertical, horizontal, and multichannel marketing systems</p> Signup and view all the answers

    What does the entire supply chain management involve according to the text?

    <p>Addressing inbound logistics and reverse logistics as well</p> Signup and view all the answers

    What role does price play in creating customer value and building customer relationships as described in the text?

    <p>It can serve as an important part of creating value and building relationships.</p> Signup and view all the answers

    What is one of the implications of initiating price cuts according to the text?

    <p>It often results in a decrease in perceived quality.</p> Signup and view all the answers

    What is the primary reason for a company to use marketing channels?

    <p>To bring their products to market</p> Signup and view all the answers

    What is the role of intermediaries in a marketing channel?

    <p>To offer more than the firm can achieve on its own</p> Signup and view all the answers

    What does a value delivery network refer to?

    <p>The network of partners working to accomplish customer engagement and value creation</p> Signup and view all the answers

    Why do most producers use intermediaries to bring their products to market?

    <p>To benefit from intermediaries' contacts, experience, and scale of operation</p> Signup and view all the answers

    What is the purpose of a marketing channel or distribution channel?

    <p>To make a product or service available for use or consumption by the consumer or business user</p> Signup and view all the answers

    What is the main focus of logistics management as mentioned in the text?

    <p>Maximizing customer service and minimizing distribution costs</p> Signup and view all the answers

    How do marketing channels impact other marketing decisions?

    <p>They directly affect every other marketing decision</p> Signup and view all the answers

    In what way do some companies gain a competitive advantage in distribution?

    <p>By using imaginative distribution systems</p> Signup and view all the answers

    What is meant by 'a company can’t go it alone' in the context of creating customer engagement and value?

    <p>'Going it alone' means that companies need to work within a network of partners to achieve customer engagement and value creation</p> Signup and view all the answers

    What are some key functions performed by marketing channels as mentioned in the text?

    <p>Perform many key functions related to making a product or service available for use or consumption by consumers or business users</p> Signup and view all the answers

    Why do companies need to make channel decisions carefully?

    <p>To incorporate today’s needs with tomorrow’s likely selling environment</p> Signup and view all the answers

    What is the primary focus of integrated supply chain management concept?

    <p>Recognizing the need for improved logistics</p> Signup and view all the answers

    How can companies achieve logistics harmony among functions, as mentioned in the text?

    <p>By creating cross-functional logistics teams</p> Signup and view all the answers

    What is the significance of channel partnerships according to the text?

    <p>Creating cross-company teams</p> Signup and view all the answers

    In the context of logistics management, what is the primary role of senior-level logistics executive positions with cross-functional authority?

    <p>Achieving logistics harmony among functions</p> Signup and view all the answers

    What is the primary objective of companies outsourcing their logistics functions to third-party logistics (3PL) providers?

    <p>Gaining faster and more effective access to global markets</p> Signup and view all the answers

    Why is the goal of logistics management NOT to maximize customer service and minimize distribution costs?

    <p>To provide a targeted level of service at the least cost</p> Signup and view all the answers

    What role do channel partnerships play in achieving improved logistics?

    <p>Creating close working relationships across functional areas inside the company and across various organizations in the supply chain</p> Signup and view all the answers

    What is one implication of the integrated supply chain management concept's recognition of the need for improved logistics?

    <p>Increased teamwork across functional areas inside the company</p> Signup and view all the answers

    What is the primary goal of creating cross-functional logistics teams, according to the text?

    <p>Achieving logistics harmony among functions</p> Signup and view all the answers

    Why do some companies choose to outsource their logistics functions to third-party logistics (3PL) providers?

    <p>Saving costs and increasing efficiency</p> Signup and view all the answers

    What is the definition of advertising as mentioned in the text?

    <p>Non-personal presentation and promotion of ideas, goods, or services by an identified sponsor</p> Signup and view all the answers

    Which tool focuses on providing short-term incentives to encourage the purchase or sale of a product or service?

    <p>Sales Promotion</p> Signup and view all the answers

    What is the primary focus of personal selling as mentioned in the text?

    <p>Personal presentation by the firm’s sales force for making sales and building customer relationships</p> Signup and view all the answers

    Which element is included in a company's total promotion mix according to the text?

    <p>Direct and Digital Marketing</p> Signup and view all the answers

    What is the primary concept that companies have adopted to prevent creating a communications hodgepodge for consumers?

    <p>Integrated marketing communications (IMC)</p> Signup and view all the answers

    What is the first task of the communicator when preparing marketing communications?

    <p>Identifying the target audience</p> Signup and view all the answers

    What approach is NOT commonly used by companies to determine how much to spend for promotion?

    <p>Base promotion on competitors' spending</p> Signup and view all the answers

    What is the strategy that involves both push and pull promotional strategies?

    <p>Integrated promotion strategy</p> Signup and view all the answers

    What must companies be aware of in relation to legal and ethical issues surrounding marketing communications?

    <p>Communicating openly, honestly, and agreeably with customers and resellers</p> Signup and view all the answers

    What is the starting point for setting the target price in value-based pricing?

    <p>Identifying the target audience</p> Signup and view all the answers

    What is a common misconception about initiating price changes and reacting to them?

    <p>Price changes always result in increased demand</p> Signup and view all the answers

    'Companies adjust product prices to reflect changes in costs and demand' implies that:

    <p>'Pricing decisions are independent of changes in costs or demand'</p> Signup and view all the answers

    'International pricing' involves adjusting prices to meet what?

    <p>'To meet varying economic conditions'</p> Signup and view all the answers

    'Pricing is a dynamic process' implies that:

    <p>'Prices change over time based on different factors'</p> Signup and view all the answers

    What is the primary objective of market-penetrating pricing strategy?

    <p>Gaining market share by offering lower prices than competitors</p> Signup and view all the answers

    What is one of the key functions performed by marketing channels as mentioned in the text?

    <p>Facilitating the exchange process by reducing the number of transactions</p> Signup and view all the answers

    What is the purpose of integrated marketing communications (IMC) as mentioned in the text?

    <p>To engage current and prospective consumers and communicate customer value</p> Signup and view all the answers

    Which of the following is NOT part of a company’s total promotion mix or marketing communications mix according to the text?

    <p>Strategic planning</p> Signup and view all the answers

    What is the focus of public relations in a company’s marketing communications mix?

    <p>Building good relations with the company’s various publics</p> Signup and view all the answers

    What is the primary purpose of using sales promotion in a company’s promotion mix?

    <p>To provide short-term incentives to encourage the purchase or sale of a product or service</p> Signup and view all the answers

    What is the purpose of integrated marketing communications (IMC) as mentioned in the text?

    <p>To coordinate the promotional activities and timing of major campaigns</p> Signup and view all the answers

    What is the first task of a communicator when preparing marketing communications?

    <p>Identifying the target audience and its characteristics</p> Signup and view all the answers

    Which method is commonly used to determine the promotion budget according to the text?

    <p>Use a percentage of sales</p> Signup and view all the answers

    What are the elements involved in the communication process as mentioned in the text?

    <p>Sender, receiver, encoding, decoding, response, and feedback</p> Signup and view all the answers

    In marketing communications, what do marketers aim to guide customers through according to the text?

    <p>The five As of the customer journey: awareness, appeal, ask, act, and advocacy</p> Signup and view all the answers

    What is the primary role of top management in setting prices according to the text?

    <p>To set prices based on competitors’ pricing</p> Signup and view all the answers

    What is the main focus of logistics management as described in the text?

    <p>To maximize customer service and minimize distribution costs</p> Signup and view all the answers

    Why do companies adopt integrated marketing communications (IMC) according to the text?

    <p>To prevent a communication hodgepodge for consumers</p> Signup and view all the answers

    What are some of the elements involved in preparing effective marketing communications according to the text?

    <p>Identifying the target audience and its characteristics</p> Signup and view all the answers

    Which strategy does cost-based pricing involve according to the text?

    <p>Establishing prices based on production and other costs plus a standard markup for profit</p> Signup and view all the answers

    What is an important consideration when determining how much to spend for promotion according to the text?

    <p>Using a percentage of sales as a method to determine promotion budget</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser