Test 2 Flashcards
_____ consists of evaluating each market segments attractiveness and selecting one or more segments to enter
Market targeting
______ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort
Specialty products
A company that uses well-known celebrities to help sell its products is using _______ marketing
Person
A pen company begins offering new felt-tip pens, multiple-cartridge pens, and quills. These are examples of ______
Product line filling
The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates
Customer equity
Product quality is harder to define and judge than service quality. T or F?
False
______ consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Positioning
What refers to a behavioral segmentation variable that involves segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product
User status
______ marketing is more suited for products that vary in design
Differentiated
Apex describes its clothing line as “elegance….. for the daily office goer… apex makes sure you get noticed” this is an example of a
Positioning statement
Marketing mix planning begins with _____
Building an offering that brings value to target customers
_______ are industrial products that aid in the buyers production or operations
Capital items
______ occurs when a company lengthens its product line beyond its current range
Product line stretching
_______ represents consumers perceptions and feelings about a product and its performance
Brands
Branding decisions include determining a product price. T or F?
False
Why might idea screening be the most important step of new product development
It saves the company money in product development costs by going ahead with only the product ideas that are likely to be profitable
In a ________, new products and marketing tactics are tested among specifically identified groups of customers and stores
Controlled test market
In a _________ new products and marketing tactics are tested online in a virtual shopping environment
Simulated test market
Harvesting the product involves reducing various costs such as maintenance, R&D, and advertising to increase profits. T or F?
True
______ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
High-low
John assured his venture capitalists an earning of 25 percent return on equity when he began his IT startup. To achieve this, he will most likely use which pricing approach?
Target return pricing
What is true of price skimming?
It can be profitably used when the products quality and image support its price
Companies that set a low price for a new product in order to attract a large number of buyers and a large market share are using the _______ strategy
Market-penetration
Using ______ pricing companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive
By-product
What product mix pricing strategy involves pricing multiple products to be sold together
Product bundling pricing
Motor zone calculates shipping charges based on shipping from Boston even though sometimes it comes from St. Louis. This is what kind of pricing
Basing-point
_______ is a pricing strategy in which sets up two or more clearly identified geographic regions within which all customers pay the same total price
Zone pricing
The _______ seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given price level
Robinson-patman act
Price discrimination is legal when
A seller can prove its costs are different when selling to different retailers
For segmented pricing to be an effective strategy, prices should reflect real differences in customers perceived value. T or F?
True
The term supply chain is considered limited because it _________
Suggests that planning begins with raw materials and factory capacity
Conflict that occurs between different levels of the same marketing channel is known as _______ conflict
Vertical
What is true of conventional distribution channels?
Channel members seek to maximize their own profits
The bookworm began delivering books through mail instead of brick and mortar companies. This is an example of _______
Disintermediation
Producers of strong brands sometimes sell to dealers only on the condition that the dealers take some or all of the rest of the product line. This is know as _______
Full-line forcing
