SGMA - CHAPTER 14

Question 1

In marketing, any good or service, along with its perceived attributes and benefits, that creates value for the customer

Answer 1

Product

Question 2

A name, design, symbol, specific colour, slogan or other feature that identifies a product, distinguishes it from other products, and creates a perception in the minds of consumers.

Answer 2

brand

Question 3

A legally exclusive design, name or other identifying mark associated with a company’s brand.

Answer 3

trademark

Question 4

A customer’s preference for a particular brand that results in advocacy for that brand.
Master brand: A brand that is so dominant that customers think of it immediately when a product category is mentioned.

Answer 4

Brand loyalty

Question 5

A brand that is owned by a national or regional manufacturer; the products are widely distributed.

Answer 5

manufacturer brand

Question 6

A brand that is owned by the wholesaler or retailer rather than the manufacturer.

Answer 6

dealer brand

Question 7

A brand that carries no specific name associated with a manufacture, wholesaler, or retailer and usually comes in plan containers and sells for less than brand name products.

Answer 7

generic brand

Question 8

Products that either are unknown to the potential buyer or are known but not actively sought by the buyer.

Answer 8

unsought products

Question 9

Relatively inexpensive products that require little shopping effort and are purchased routinely without planning.

Answer 9

convenience products

Question 10

Items that are bought after considerable planning, including brand-to-brand and store-to-store comparisons of price, suitability, and style.

Answer 10

shopping products

Question 11

Items for which consumers search long and hard, and for which they refuse to accept substitutes.

Answer 11

specialty products

Question 12

Large, expensive items with a long lifespan that are purchased by businesses for use in making other products or providing a service.

Answer 12

capital products

Question 13

Items, purchased by businesses, which are smaller and less expensive than capital products and usually have a lifespan of less than one year.

Answer 13

expense items

Question 14

Product life cycle

Answer 14

Introductory, growth, maturity, decline

Question 15

A pricing objective that entails getting the largest possible profit from a product by producing it for as long as the revenue from selling the product exceeds the cost of producing it.

Answer 15

profit maximization

Question 16

A pricing objective where the price of a product is set so as to give the company the desired profitability in terms of return on its money

Answer 16

target return on invesment

Question 17

A pricing strategy in which the target market is offered a high-quality products at a fair price and with good service

Answer 17

value marketing

Question 18

A value marketer does the following:

Answer 18

• Offer products that perform
• Gives consumers more than they expect
• Gives meaningful guarantees
• Gives the buyer facts
• Builds long-term relationships

Question 19

The strategy of introducing a product with a high initial price and lowering the price over time as the product moves through its life cycle.

Answer 19

price skimming

Question 20

The strategy of selling new products at low prices in the hope of achieving a large sales volume.

Answer 20

penetration pricing

Question 21

Pricing products below the normal makeup or even below cost to attract customers to a store where they normally wouldn’t shop. A product priced below cost is a loss leader.

Answer 21

leader pricing

Question 22

The strategy of grouping two or more related products together and pricing them as a single product.

Answer 22

bundling

Question 23

The strategy of setting a price at an odd number to connote a bargain and at an even number to suggest quality.

Answer 23

odd - even psychological pricing

Question 24

The strategy of increasing the price of a product so that consumers will perceive it as being of higher-quality, status, or value.

Answer 24

prestige pricing

Question 25

The price at which a product’s costs are covered, so additional sales result in profit. To find the break-even point, the company measures the various costs associated with product:

Answer 25

break-even point / quantity

Question 26

Costs that don’t vary with different levels of output (ex: rent)

Answer 26

fixed costs

Question 27

Costs that change with different levels of output. (ex: wages)

Answer 27

variable costs

Question 28

The selling price per unit (revenue) minus the variable costs per unit

Answer 28

fixed - cost contribution

Question 29

The selling price per unit times the number of units sold

Answer 29

total revenue

Question 30

The sum of the fixed costs and the variable costs

Answer 30

total cost

Question 31

Total revenue minus the total cost.

Answer 31

total profit

Question 32

A method of pricing in which a certain percentage (the markup_ is added to the product’s cost to arrive at the price. The retail price is thus cost plus markup.

Answer 32

markup pricing

Question 33

break-even point formula

Answer 33

break-even point = (total fixed cost)/(fixed-cost contribution)

Question 34

Markup based on item cost

Answer 34

markup % = markup amount / item cost

Question 35

markup based on selling price

Answer 35

markup % = markup amount / selling price

Question 36

ABC assigns resource costs through all the activities to either produce the product or acquire it for resale.

Answer 36

acitivity based costing (ABC)

Question 37

Efficiently managing the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers.

Answer 37

distribution(logistics)

Question 38

A producer; an organization that converts raw materials to finished products.

Answer 38

manufacturer

Question 39

The series of marketing entities through which goods and services pass on their way from producers to end users.

Answer 39

distribution channel

Question 40

supply chain model

Answer 40

Suppliers of raw materials -> Production -> Wholesaler or distribution centre -> Retailers, wholesalers, distribution centres -> Customers

Question 41

Organizations that assist in moving goods and services from producers to end users and consumers.

Answer 41

marketing intermediaries

Question 42

sales representatives of manufacturers and wholesalers

Answer 42

agents

Question 43

go-betweens that bring buyers and sellers together

Answer 43

brokers

Question 44

Independent wholesalers that buy related product lines from many manufacturers and sell them to industrial users.

Answer 44

industrial distributors

Question 45

Companies that sell finished goods to retailers, manufacturers, and institutions (such as schools and hospitals).

Answer 45

wholesalers

Question 46

Companies that sell goods to consumers and to industrial users for their own consumption.

Answer 46

retailers

Question 47

When a producer selects two or more channels to distribute the same product to target markets.

Answer 47

dual distribution

Question 48

One manufacturer using another manufacturer’s previously established channel to distribute its good.

Answer 48

strategic channel alliances

Question 49

The process of breaking large shipments of similar products into smaller, more usable lots.

Answer 49

breaking bulk

Question 50

A distribution system in which a manufacturer selects only one or two dealers in an area to market its products.

Answer 50

exclusive distribution

Question 51

A distribution system in which a manufacturer selects a limited number of dealers (more than one or two) to market its products

Answer 51

selective distribution

Question 52

A distribution system in which a manufacturer tries to sell its products wherever there are potential customers

Answer 52

intensive distribution

Question 53

Efficiently managing the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers.

Answer 53

distribution(logistics)

Question 54

A producer; an organization that converts raw materials to finished products.

Answer 54

manufacturer

Question 55

The series of marketing entities through which goods and services pass on their way from producers to end users.

Answer 55

distribution channel

Question 56

supply chain model

Answer 56

Suppliers of raw materials -> Production -> Wholesaler or distribution centre -> Retailers, wholesalers, distribution centres -> Customers

Question 57

Organizations that assist in moving goods and services from producers to end users and consumers.

Answer 57

marketing intermediaries

Question 58

sales representatives of manufacturers and wholesalers

Answer 58

agents

Question 59

go-betweens that bring buyers and sellers together

Answer 59

brokers

Question 60

Independent wholesalers that buy related product lines from many manufacturers and sell them to industrial users.

Answer 60

industrial distributors

Question 61

Companies that sell finished goods to retailers, manufacturers, and institutions (such as schools and hospitals).

Answer 61

wholesalers

Question 62

Companies that sell goods to consumers and to industrial users for their own consumption.

Answer 62

retailers

Question 63

When a producer selects two or more channels to distribute the same product to target markets.

Answer 63

dual distribution

Question 64

One manufacturer using another manufacturer’s previously established channel to distribute its good.

Answer 64

strategic channel alliances

Question 65

The process of breaking large shipments of similar products into smaller, more usable lots.

Answer 65

breaking bulk

Question 66

A distribution system in which a manufacturer selects only one or two dealers in an area to market its products.

Answer 66

exclusive distribution

Question 67

A distribution system in which a manufacturer selects a limited number of dealers (more than one or two) to market its products

Answer 67

selective distribution

Question 68

A distribution system in which a manufacturer tries to sell its products wherever there are potential customers

Answer 68

intensive distribution

Question 69

The attempt by marketers to inform, persuade, or remind consumers and industrial users to engage in the exchange process

Answer 69

Promotion

Question 70

Goals of promotion

Answer 70

- Creating awareness - Getting consumers to try products - Providing information - Keeping loyal customers - Increasing the amount and frequency of use - Identifying target customers

Question 71

The combination of advertising, personal selling, sales promotion, and public relations used to promote a product. What are the four elements?

Answer 71

promotional mix: advertising, personal selling, public relations, sales promotion

Question 72

any paid form of non-personal promotion by an identified sponsor

Answer 72

advertising

Question 73

A face-to-face presentation to a prospective buyer

Answer 73

personal selling

Question 74

Marketing activities that stimulate consumer buying (ex :coupons or demonstrations)

Answer 74

sales promotions

Question 75

Any communication or activity designed to win goodwill or prestige for a company of person

Answer 75

public relations

Question 76

The careful coordination of all promotional activities – media advertising, sales promotion, personal selling, and public relations, as well as direct marketing, packaging and other forms of promotion – to produce a consistent unified message that is customer focused.

Answer 76

Integrated Marketing Communications (IMC)

Question 77

Four factors that affect promotional mix

Answer 77

- Nature of the product - Market characteristics - Available funds - Push and Pull Strategies

Question 78

The physical stocking of merchandise at a retailer by the salesperson who delivers the merchandise

Answer 78

detailing

Question 79

A promotional strategy in which a manufacturer uses aggressive personal selling and trade advertising to convince a wholesaler to retailer to carry and sell its merchandise

Answer 79

push strategy

Question 80

A promotional strategy in which a manufacturer focuses on stimulating consumer demand for its product, rather than trying to persuade wholesalers or retailers to carry the product.

Answer 80

pull strategy

Question 81

Warehouses that specialize in rapid movement of goods to retail stores by making or breaking bulk

Answer 81

distribution centre

Question 82

A system that maintains an adequate assortment of items to meet users’ or customer’s needs.

Answer 82

inventory control system

Question 83

Key decisions in managing the logistical flow

Answer 83

- Sourcing and Procurement - Production Scheduling - Choosing a Warehouse Location and Type - Inventory Control - Setting Up a Materials – Handling System - Making Transportation Decisions