Exam 10: Marketing: Providing Value to Customers

Between the two types of data,marketers generally begin by looking at primary data-previously collected information pertaining to the target market.

Using _____ pricing,a company initially charges a low price,both to discourage competition and to grab a sizeable share of the market.

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately. -Skimming pricing,which would also help Bilby recover some of his initial costs,is a viable option because Stevens has virtually no competition.

Stevens Outdoor Furniture has just introduced a new line of products in the southeastern United States. Owner James Bilby discovered the new line, which includes outdoor furniture and other lawn items, on a recent vacation to California. The market is extremely promising because none of his main competitors stocks this type of furniture. He’s concerned, however, about pricing because shipping costs will drive his prices higher than those charged by stores closer to the manufacturer’s West Coast factory. Initial promotion and advertising costs, as well as warehousing expenses, are also on Bilby’s mind. He’s called a teleconference with his ten store managers to develop a pricing strategy that must take effect immediately. -If the new line of furniture is of above-average quality,prestige pricing might well work because customers will probably assume that it's of very high quality.

To deliver high customer value,a company must monitor and improve its _____-the entire range of activities involved in delivering value to its customers.

Most products that enter the decline stage of the product life cycle are able to reinvent themselves.

A company using a just-in-time production strategy cuts costs and time by building up a large inventory of materials.

With _____ pricing,a company tries to cover its initial costs by setting the highest price that keenly interested customers will pay.

The company becomes more profitable in the "growth" stage of the product life cycle as sales go up.

The purpose of customer relationship management is retaining customers.

If a product survives the growth stage,it will probably remain in the maturity stage for a long time.

Using _____ segmentation,Pierre Trudeau has divided his market according to a variable called usage rate.

Over time,your company hopes to develop brand ____ among customers who prefer or even insist upon its product.

The marketing mix is often regarded as the least important ingredient of marketing.

_____ would not be included in a demographic segmentation of consumers.

During the _____ stage of the product life cycle,advertising costs will go up.

Roger Levin owns and manages Forever Yours Jewelers in a Midwestern city. Sales clerks are especially trained in meeting customer needs, and the Levin family itself is committed to promoting the image of the store and its products and services. Levin buys frequent spots on a local radio station, and holds monthly giveaway contests to give away $200 items of the winner’s choice. Founded by Levin’s grandfather, the family owned business has been around for 65 years and enjoys an enviable reputation in the community. Recently, an article appeared in the local newspaper revealing Levin’s -Running radio commercials is a(n)_____ strategy.

When a company does something negative,such as selling a prescription drug with unexpected side effects,the public relations department can do little to rectify the damage to the firm's image.

Marketers generally begin the research process by gathering _____ data.

Advertisements today are more effective that they used to be.