Chapter 11

Question 1

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

Answer 1

marketing mix

Question 2

brand ladder

Answer 2

• ———–brand comitment
• ———brand loyalty
• —–brand preference
• –brand awareness

Question 3

refers to the ranking of products/services that purchasers develop for all the options available when making a purchase decision
○ I.e. willing to drive by several Timmies for a Starbucks coffee

Answer 3

predetermined purchase list

Question 4

The ability to __________ ___________ _________ will enable us to minimize price as a major point of comparison, thereby reducing its influence on the decision-making process

Answer 4

effectively differentiate ourselves

Question 5

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

Answer 5

price elasticity

Question 6

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

Answer 6

consumer price threshold

Question 7

key fundamentals to setting price

Answer 7

analyze your critical cost structure components
- understand your competitors cost structures
analyze the price elasticity that exists
- determine the degree of value proposition strength

Question 8

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

Answer 8

payback period

Question 9

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

Answer 9

direct distribution

Question 10

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

Answer 10

indirect distribution

Question 11

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

Answer 11

mixed distribution systems

Question 12

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

Answer 12

private label brands

Question 13

refers to the incorporation of a number of different channel connections through which customers can purchase a P/S

Answer 13

multi-channel distribution

Question 14

is a decision by an organization to distribute the P/S through as many locations or cannel outlets as possible

Answer 14

intensive distribution

Question 15

goods purchased by customers on a regular basis, with minimum effort and little emotional connection (i.e. soda)

Answer 15

convenience goods

Question 16

refers to a decision by an organization to sell its P/S through a limited number of channel intermediaries

Answer 16

selective distribution

Question 17

refers to a decision by an organization to offer its P/S though a single market representative

Answer 17

exclusive distribution

Question 18

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

Answer 18

profit leaks

Question 19

a focused message, driven by a well-defined and developed value proposition, that is targeted specifically at a defined audience
○ Refers to making sure you are communicating the right P/S value proposition components, to the right audience, at the right time, via the right message mechanism

Answer 19

message rifling

Question 20

All P/S go through a lifecycle of:

Answer 20

development
introduction
growth
maturity
decline

Question 21

Length of maturity of P/S is determined by ability to

Answer 21

stimulate repeat purchases

Question 22

Success within the lifecycle of a P/S comes down to : (3 steps)

Answer 22

possessing an effective positioning strategy
backed by a successful marketing effort
formulated around a meaningful value proposition (in the eyes of customers)

Question 23

refers to the tendency for expenses associated with the organization’s various cost lines to rise due to inflationary pressures, union negotiated contracts, and so on

Answer 23

expense creep