Marketing Final Guide Flashcards

Questions and Answers

When Ann saw the ad for a new drug that counters these symptoms, at which stage in the hierarchy of effects is she?

She was in the interest stage and then moved quickly to the diffusion stage.

She is the trial stage and will move to the interest stage soon.

She was in the consumer development stage and will more than likely move to the transition stage.

She has moved quickly from the awareness stage to the interest stage. (correct)

She is in the evaluation stage and will move to the interest stage soon.

What budgeting technique is the retailer most likely using if they budget 20 percent of $7,500 remaining for emergencies?

Percentage of sales budgeting

Competitive parity budgeting

Objective and task budgeting

All-you-can-afford budgeting (correct)

Linear forecast budgeting

What type of product advertisement is featured in the Levi's ad for the new 501 CT jeans?

Pioneering (correct)

Reminder

Comparative

Reinforcement

Competitive

John Whitaker is primarily engaged in which type of selling based on his responsibilities at American Greetings?

Outside order taking Signup and view all the answers

How is TransWave using team selling when meeting with prospects?

Team selling Signup and view all the answers

How can Alice Faulkner know if the prospects she is selling to are qualified?

Qualified prospects have a need for the advertising, can afford to buy it, and have the authority to make the purchase decision. Signup and view all the answers

Food products and fuel would be classified as:

Nondurable goods Signup and view all the answers

Intangible items such as theater performances, legal advice, or music streaming that an organization provides to consumers are referred to as:

Services Signup and view all the answers

An iMac personal computer from Apple can be classified according to all of the following categories except which?

A nondurable good Signup and view all the answers

Which of the following is the best example of a convenience product?

Hidden Valley Ranch salad dressing Signup and view all the answers

You decide to buy a new car. Into which classification of consumer products would your new car purchase fall?

Shopping product Signup and view all the answers

You greatly admire a set of Waterford crystal serving bowls. Into which classification of consumer products would these bowls fall?

Specialty products Signup and view all the answers

Which of the following best illustrates the concept of derived demand?

A Chinese plastics company increases its output because of its customers' higher toy exports to the United States. Signup and view all the answers

Equipment-based services do not have the marketing concern of inconsistency because __________ have been removed from the delivery of the service.

people Signup and view all the answers

What does the portion of the product life cycle curve labeled A represent?

Introduction Signup and view all the answers

When the GPS SmartSole insoles were first made available to consumers, what was the marketing objective for the company at that early stage of the product life cycle?

Create awareness and stimulate trial Signup and view all the answers

Xerox pioneered the first portable fax machine. Which pricing strategy did Xerox use to help recover its research and development costs?

A skimming Signup and view all the answers

Which of the following is an example of a product in the maturity stage of the product life cycle?

Carbonated soft drinks Signup and view all the answers

What type of products are singers who become 'one-hit wonders' best categorized as?

Fad Signup and view all the answers

Those first buyers of the Apple II personal computer were:

Early adopters Signup and view all the answers

Most consumers believe that the higher the price of a diamond, the higher its quality. This is an example of price influencing the perception of overall quality and therefore __________ to consumers.

Value Signup and view all the answers

Calculate a firm's profit using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.

$10,000 Signup and view all the answers

Several factors indicate that a penetration pricing policy would be effective when introducing a new product, including situations in which:

Customers interpret the high price as signifying high quality. Signup and view all the answers

A Patek Philippe Sky Moon Tourbillion men's wristwatch is among the most expensive in the world. This is an example of a __________ strategy.

Prestige pricing Signup and view all the answers

The prices for all furniture sold at American Furniture Warehouse end in $9.99. What pricing strategy does American Furniture Warehouse use?

Odd-even pricing Signup and view all the answers

If you were to buy one peach tree and one apple tree from the Stark Bros. fruit trees and landscaping catalog in two separate orders, you would pay a total of $109.99. However, if you order both together, you pay only $89.99 each. What pricing strategy does Stark Bros. employ?

Bundle pricing Signup and view all the answers

Creative Quilts Studio sells fabrics and threads, adding 50 percent to the cost of each item. What is this pricing approach called?

Standard markup pricing Signup and view all the answers

Swedish company Asko, known for some of the best-built appliances, would probably use which competition-oriented pricing approach?

Above-market pricing Signup and view all the answers

Jaffar Tabrizi is acting as a:

A middleman Signup and view all the answers

Artists participating in an art fair are considered:

Retailers Signup and view all the answers

When Hunter went to the hardware store for gloves and bought one pair, what logistical function did the hardware store perform?

Buying Signup and view all the answers

Southern pine lumber is visually inspected and categorized. This rating system is most closely related to which facilitating function activity performed by marketing intermediaries?

Grading Signup and view all the answers

A textile artist creates a quilt and sells it. By designing aesthetically, the artist creates __________ utility.

Form Signup and view all the answers

When Dell Computer sells made-to-order PCs online, it is an example of which type of marketing channel?

Direct channel Signup and view all the answers

Ford uses __________, whereby the company licenses dealers to sell Ford automobiles.

A manufacturer-sponsored retail franchise system Signup and view all the answers

Bentley Motors targets the ultra-luxury segment. Which type of market coverage does Bentley likely use?

Exclusive distribution Signup and view all the answers

Albertsons Grocery Store accepts various forms of payment, providing customers with __________ utility.

Possession Signup and view all the answers

Neighborhood grocers working together to buy directly from food manufacturers is an example of:

A retailer-sponsored cooperative Signup and view all the answers

Costco has eliminated many customer services, offering what level of service?

Self-service Signup and view all the answers

Godiva Chocolatier offers an unforgettable experience in its stores. What type of retail service is Godiva offering?

Full service Signup and view all the answers

Nike offers shoes in many sizes and types. This is an example of the __________ that Nike offers to its customers.

Variety of product mix Signup and view all the answers

To promote its theme parks, Disney uses several methods. What does IMC stand for?

Integrated marketing communications Signup and view all the answers

A marketing manager at a trade show had difficulty communicating due to his accent. What would the accent be considered?

Noise Signup and view all the answers

When Sears places a booklet in the local newspaper, what element of the promotional mix are they using?

Advertising Signup and view all the answers

If a representative invites friends to her home to demonstrate products, she is engaging in:

Personal selling Signup and view all the answers

Which promotional element should a small agrichemical laboratory use to communicate its discovery?

Publicity Signup and view all the answers

When you redeem a coupon for Crest toothpaste, which promotional element are you influenced by?

Sales promotion Signup and view all the answers

Ads for a new prescription drug aim to increase awareness. What is the primary use of these ads?

Increase customer awareness and interest Signup and view all the answers

Albert Searchware is trying to determine a promotional strategy for its software, which is in the growth stage. Which option should it employ?

Encourage tech support to emphasize superiority Signup and view all the answers

Many prescription drugs use national TV advertising campaigns to encourage patients to ask for them by name. What strategy are manufacturers using?

A pull Signup and view all the answers

Study Notes

Product Classification and Characteristics

Food products and fuel are classified as nondurable goods.
Intangible offerings such as theater performances and legal services are categorized as services.
An iMac is not classified as a nondurable good; it is a durable good and can be a consumer or business product.
Best example of a convenience product: Hidden Valley Ranch salad dressing.

Consumer Behavior and Product Types

Buying a new car involves extensive research, placing it as a shopping product.
Waterford crystal serving bowls are considered specialty products due to their high cost and limited availability.
Derived demand is best illustrated by a company's increased output in response to customer demand in another sector.

Service Marketing and Product Life Cycle

Equipment-based services reduce inconsistency by removing people from service delivery.
In the product life cycle, the introduction stage is indicated by the curve portion labeled as A.
Initial marketing objectives for new products often focus on creating awareness and stimulating trial among target consumers.

Pricing Strategies

Xerox used a skimming pricing strategy to recover R&D costs for its first portable fax machine.
Maturity stage product example: carbonated soft drinks.
Penetration pricing is effective when customers associate high prices with high quality.

Market Coverage and Distribution

Bentley Motors utilizes exclusive distribution to target the ultra-luxury market.
Albertsons grocery store enhances customer possession utility by accepting multiple payment methods.

Marketing Channels and Functions

Jaffar Tabrizi acts as a middleman in his rug business, selling imported items in Canada.
Art fair booths are an example of retailers within the marketing channel.
Categories like "Select Structural" for lumber reflect grading, a facilitating function of marketing intermediaries.

Utility Creation and Retail Strategy

A textile artist creates form utility by designing aesthetically pleasing quilts for sale.
Dell exemplifies a direct marketing channel through online sales of made-to-order PCs.
Costco employs a self-service level of operation by eliminating nonessential customer services.

Promotional Strategies and Communication

Godiva Chocolatier offers full service through an engaging customer experience in its stores.
IMC stands for integrated marketing communications, which Disney uses for promoting its theme parks.
Coupons represent a sales promotion strategy influencing consumer purchases at the point of sale.

Stages in the Product Life Cycle and Consumer Awareness

TV ads for prescription drugs create awareness and interest, assisting in pulling consumers toward the product.
Ann, influenced by an ad, is in the interest stage regarding allergy medication.

Budgeting Techniques and Advertising

The nail shop employs an all-you-can-afford budgeting method for advertising spend.
Levi's pioneering advertisement for the new 501 CT jeans focuses on introducing the product to the market.
Inside order takers primarily manage stocking and arranging displays, along with processing transactions.### TransWave's Selling Strategy
TransWave utilizes team selling by deploying a specialized group including an environmental expert, safety engineer, legal representative, and an experienced pipeline expert during prospect meetings.
Team selling enhances the credibility and expertise presented to potential clients, ensuring comprehensive communication of complex regulations and safety measures.

Alice Faulkner's Sales Responsibilities

Alice Faulkner is a professional salesperson at The New York Times, focusing on advertising sales.
Her tasks include maintaining regular accounts and generating new advertising customers, indicating a dual focus on retention and acquisition.
Qualified prospects are defined as those who have a legitimate need for advertising, the financial capability to purchase, and the authority to make purchasing decisions.
This understanding helps Faulkner efficiently target her sales efforts to those most likely to convert into clients.

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Test your knowledge with these flashcards covering key concepts in marketing. Explore various types of goods and services, and get ready for your final examination. Perfect for students looking to reinforce their understanding of marketing fundamentals.