Place
Which distribution strategy involves making a product available in as many outlets as possible to maximize exposure and availability?
Intensive distribution
What is a product?
Everything, both favorable and unfavorable, that a person receives in an exchange
What is price elasticity?
Consumers’ responsiveness or sensitivity to price changes
Which of these is NOT an element of the promotional mix mentioned in class?
Which of these is NOT a channel intermediary mentioned in class?
Industry executives
Brand B usually sells their products through traditional retailers. However, responding to their consumers’ wants and needs, Brand B recently began selling their products directly to the consumer through their website. With both their retailer channel and their direct channel, what type of channel arrangement does Brand B currently have?
Dual distribution
This element of the product mix refers to a group of closely related product items.
This tool of fine-tuning base price occurs when people with experience, training, and certification charge a certain amount for their expertise.
Professional services pricing
Which of these tools of consumer sales promotion involves setting up a display at a retailer’s location to build traffic, advertise, or induce impulse buying?
Point-of-purchase promotions
Which of the following factors makes demand more elastic?
The product can be used in multiple ways
Company T recently learned that their products are being illegally sold through resellers online who increase prices drastically, leading consumers to have a bad image of the actual brand though they have no control over these sales. What kind of channel arrangement does this scenario represent?
Gray marketing channels
This element of the product mix refers to the number of product lines a brand has.
Product mix width
This tool of fine-tuning base price occurs when a company offers all goods and services at the same price (or two or three prices).
Single-price tactic
Which type of advertising is designed to enhance a company’s image rather than promote a particular product or service?
Institutional advertising
List the four main differences between services and products.
Intangibility--> refers to the fact that services cannot be sensed in the same way as products
Inseparability-->refers to the fact that production and consumption of services cannot be separated
Perishability --> refers to the fact that services cannot be stored
Heterogeneity--> refers to the fact that services vary in their delivery while products can be standardized
A luxury brand like Rolex uses a distribution strategy where its products are sold only in a few select high-end stores. This is an example of which type of distribution?
Exclusive distribution
When are consumers most likely to use price as an indicator of quality?
When they have greater uncertainty about a product
Which of these is not a factor that affects price elasticity as mentioned in class?
Reference prices
What are the four main goals of promotion?
What are the two types of appeals?
Inform, remind, persuade, connect
informational appeal, emotional appeal
Name all the parts of the communication process discussed in class.
Sender
Encoding
Message channel
Receiver
Decoding
Feedback
In class, we discussed four different types of products. We also discussed distribution intensity. Please do the following:
Convenience products --> Intensive distribution
Shopping products --> Selective distribution
Specialty products --> Exclusive distribution
Unsought products --> Any
Connect the product life cycle stages to the consumers mentioned in the diffusion of innovation.
Introductory stage --> Innovators
Growth stage --> Early adopters
Early Maturity stage --> Early majority
Late Maturity stage --> Late majority
Decline stage --> Laggards
A company is launching a new product and decides to set a low introductory price to attract a large number of customers and quickly gain market share. They aim to establish their presence in the market before gradually increasing the price. What pricing strategy are they using?
Price penetration
This tool of consumer sales promotion includes a physical or electronic version of a price reduction that consumers can redeem for a certain time period.
Coupons
A retailer sells a microwave that they purchase from a wholesaler. The wholesaler usually charges the retailer $15.89 per microwave. This month, the wholesaler gives the retailer a discount of 15% off the microwave. The retailer maintains their regular mark-up of 45%. What is the selling price of the microwave?
Price = $19.58