Chapter 11

Question 1

marketing mix

Answer 1

refers to an organization’s strategic and tactical decisions relating to its product/service offerings, pricing, distribution, and marketing communication efforts and approaches.

Question 2

predetermined purchase list

Answer 2

refers to the ranking of products/services that purchasers develop for all the options available when making a purchase decision.

Question 3

price elasticity

Answer 3

is the change in demand that is anticipated to occur at the various price points the organization is considering for its product and/or service.

Question 4

consumer price threshold

Answer 4

refers to the maximum price point that the customer is willing to pay for a product or service.

Question 5

payback period

Answer 5

represents the length of time required to recover, or earn back, the cost of an investment.

Question 6

direct distribution

Answer 6

refers to connecting directly with customers and handling the final sale of products and/or the delivery of services without the assistance of a channel intermediary.

Question 7

channel intermediary

Answer 7

refers to an organization that assists a company in the distribution and delivery of goods or services to its customers.

Question 8

indirect distribution

Answer 8

implies the use of a channel intermediary, such as a broker, wholesaler; or retailer, to facilitate the sales of a company’s products and/or services to its customers.

Question 9

mixed distribution systems

Answer 9

are distribution systems that incorporate both direct and indirect distribution options within their distribution strategy.

Question 10

private label bands

Answer 10

are products that are created by one company for sale by another company under this latter company’s own brand name.

Question 11

multi-channel distribution

Answer 11

refers to the incorporation of a number of different channel connections through which customers can purchase a product and/or service.

Question 12

intensive distribution

Answer 12

is a decision by an organization to distribute the product and/or service through as many locations or channel outlets as is possible.

Question 13

convenience goods

Answer 13

are goods purchased by customers on a regular basis, with minimum effort and little emotional connection.

Question 14

selective distribution

Answer 14

refers to a decision by an organization to sell its products and/or services through a limited number of channel intermediaries.

Question 15

exclusive distribution

Answer 15

refers to a decision by an organization to offer its products and/or services through a single market representative.

Question 16

profit leaks

Answer 16

are inefficiencies within an organization’s marketing mix that result in margin erosion and loss of profit.

Question 17

message riffling

Answer 17

is a focused message, driven by a well-defined and developed value proposition, that is targeted specifically at a defined audience.

Question 18

Key fundamental elements are

Answer 18

developing our value proposition, price position, distribution approach and communication tactics, which are critical to the success of products and services.

Question 19

Marketer’s toolbox concept additions are

Answer 19

segmentation, target marketing, customer profiling and value proposition development into a rifled message, which results in the best fit for customers.

Question 20

Things to do when accessing the overall market potential of our products are

Answer 20

drawing conclusions as to where to invest, expand, maintain, retrench and divest, depending on current product strength and future market potential.

Question 21

It’s important for not-for-profits to balance between

Answer 21

altruistic mission requirements and the economic realities of financial stability and sustainability.