STP
Building Customer Value
I Love Marketing
Innovation
Value
100
T/F - Marketers usually limit their segmentation to only on major variable.
What is False? Rarely limit to one variable, but uses multiple segmentation bases to identify smaller, better defined target groups.
100
A form of product that consists of activities, benefits or satisfactions offered for sale.
What is a Service? Intangible and do not result in the ownership of anything. E.g. banking, hotel, airline travel, retail, wireless communication.
100
What sets the ceiling for product prices? A) product manufacturing costs B) sellers' perceptions of the product's value C) customer perceptions of the product's value D) variable costs E) break-even volume
What is C?
100
T/F - A company launching a new product into the market must first decide where to launch the product.
What is False? First must decide on introduction timing (cannibalization, further improvements, down economy, competitor on its heels) and then where to launch (single location, a region, national or international).
100
______ is the only element in the marketing mix that produces revenue.
What is price?
200
The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ______ _______.
What is value proposition? Answers the question "Why should I buy your brand?"
200
_______ ______ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
What is product quality? Serves as one of the marketer's major positioning tools.
200
The strongest brands are positioned on: a) desirable benefit, b) good packaging, c) service inseparability, d) strong beliefs and values, e) product attributes.
What is d strong believe and values? The strongest brands go beyond attribute or benefit positioning. Pampers is much more than just containment and dryness, but rather positions itself as "where we grow together" brand that's concerned about happy babies, parent-child relationships and total baby care.
200
T/F - Companies seldom solicit ideas from customers during the idea generation stage of product development.
What is False? Ideas come from both internal and external sources. Customers are one of the most importants sources of new-product ideas. (e.g. analyze customer questionsand compliants, market research, crowdsourcing)
200
When a company sets a high price for a new product with the intention of reducing the price in the future, it is using ____________ pricing strategy.
What is market-skimming?
300
Apex describes its clothing line as, "Elegance and attitude, now as one. For the daily office-goer, who takes pride in what he or she wears everyday. Apex makes sure you get noticed." This exemplifies a _____ _________.
What is a positioning statement?
300
T/F - Co-branding occurs when retailers and wholesalers create their own store brands.
What is False? Two established brand names of different companies are used on the same product. E.g. Girl Scout and DQ - Thin Mint Blizzard
300
___________________, the more it pays for the seller to raise the price. a) the less inelastic the demand, b) the less elastic the demand, c) the less the quality of the tied services, d) the more sensitivity toward small price changes, e) the more intense the competition.
What is b? The less elastic the demand, the more it pays for the seller to raise the price.
300
When Kraft focused on cost-cutting with its older, established brands, leaving them without much investment or modification, Kraft decided to ______ the older products.
What is harvest? Companies can decide to maintain, harvest or drop brands in the decline stage. Harvesting can increase company's profits in short run if sales hold up as they cut cost.
300
_______ ________ involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the effort and risk.
What is cost-based pricing? Customer-value perceptions set the price ceiling, costs sets the floor for the price a company can charge.
400
Distinguishing the firm's market offering to create superior customer value.
What is differentiation?
400
This describes adding more items within the present range of the product line.
What is product line filling? Cheerios various versions of cereal. BMW Z4 roadster, 6-series coupe, x-series crossovers and SUVs.
400
Azure Air, an airline company, offers attractive prices to customers with tighter budgets. A no-frills airline, it charges for all other additional services, such as baggage handling and in-flight refreshments. What best describes Azure Air's pricing method?
B) good-value pricing
400
Which stage in the product life cycle normally lasts longest and poses strong challenges to marketing managers?
What is maturity? Slow down in sales growth results in many producers with many products to sell. Overcapacity leads to greater competition. Competitors begin cutting prices, increasing advertising and sales promotions, and upping product development budgets. Must evolve to meet consumer needs.
400
Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. This reflects Bon Vivant's ________ pricing strategy.
What is everyday low?
500
T/F - Kia motors offers a new car model with the same features as other cars in the same segment. Kia's model is priced lower than it's two main competitors. Kia is following a more-for-less positioning strategy.
What is False? Same-for-less
500
Symmond's Inc, a company manufacturing breakfast cereals, has extended its special Crispo cereal brand into a full line of cereals plus protein shakes, fruit and sandwich spreads, butter and doughnuts. This is an example of: a) line extension, b) brand extension, c) licensing, d) co-branding, or e) cannibalization.
What is B brand extension? Line extension - existing brand, existing new category Brand extension - existing brand, new product category
500
Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two of the firm's models share the same specifications. What type of pricing does Multiprint use?
What is captive product pricing?
500
Which of the following is the goal of the team-based new-product development approach when it uses cross-functional teams that overlap the steps in the process? a) gain a big competitive edge by getting the right new products to market, b) save time and increase effectiveness, c) increase production efficiency and customer satisfaction, d) speed production distribution to market and reduce costs or e) reduce organizational tension and confusion.
What is b, save time and increase effectiveness.
500
The Zenith Gallery has three distinct admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called __________ ___________.
What is customer-segmented pricing? Other segmented pricing strategies include product-form pricing (airline seats), location-based pricing (in-state and out-of-state tuition) and time-based (happy hour).
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