Question 1

Discuss the benefits associated with offering a large portfolio of products. What are some of the key issues involved in managing the product portfolio?

Accepted Answer

Although offering a large portfolio of products can make the coordination of marketing activities more challenging and expensive, it also creates a number of important benefits: 
∙ Economies of Scale-Offering many different product lines can create economies of scale in production, bulk buying, and promotion. Many firms advertise using an umbrella theme for all products in the line. Nike's "Just Do It" and Maxwell House's "Good to the Last Drop" are examples of this. The single theme covering the entire product line saves considerably on promotional expenses. 
∙ Package Uniformity-When all packages in a product line have the same look and feel, customers can locate the firm's products more quickly. It also becomes easier for the firm to coordinate and integrate promotion and distribution. For example, Duracell batteries all have the same copper look with black and copper packaging. 
∙ Standardization-Product lines often use the same component parts. For example, Toyota's Camry and Highlander use many of the same chassis and engine components. This greatly reduces Toyota's manufacturing and inventory handling costs. 
∙ Sales and Distribution Efficiency-When a firm offers many different product lines, sales personnel can offer a full range of choices and options to customers. For the same reason, channel intermediaries are more accepting of a product line than they are of individual products. 
∙ Equivalent Quality Beliefs-Customers typically expect and believe that all products in a product line are about equal in terms of quality and performance. This is a major advantage for a firm that offers a well-known and respected line of products. For example, Crest's portfolio of oral care products all enjoys the same reputation for high quality. A firm's product portfolio must be carefully managed to reflect changes in customers' preferences and the introduction of competitive products. Product offerings may be modified to change one or more characteristics that enhance quality and/or style, or lower the product's price. Firms may introduce product line extensions that allow it to compete more broadly in an industry. Sometimes, a firm may decide that a product or product line has become obsolete or is just not competitive against other products. When this happens, the firm can decide to contract the product line.

Question 2

Which member of the marketing channel has the primary responsibility of fulfilling the channel's main functions?

Accepted Answer

A)  manufacturers 
B)  wholesalers 
C)  retailers 
D)  customers 
E)  it does not matter 
A)  manufacturers 
B)  wholesalers 
C)  retailers 
D)  customers 
E)  it does not matter E

Question 3

The Ritz-Carlton Hotel is widely known for its exceptional quality and impeccable customer service. Not surprisingly, the Ritz-Carlton sets prices at the top end of all competing hotels. Which pricing strategy is the Fairmont using?

Accepted Answer

A)  exclusive pricing 
B)  image pricing 
C)  psychological pricing 
D)  prestige pricing 
E)  service-based pricing 
A)  exclusive pricing 
B)  image pricing 
C)  psychological pricing 
D)  prestige pricing 
E)  service-based pricing D

Question 4

Assume Kia has developed a new product idea to launch a midsize pickup. Currently, Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process?

Accepted Answer

A)  idea generation 
B)  development 
C)  screening and evaluation 
D)  test marketing 
E)  commercialization 
A)  idea generation 
B)  development 
C)  screening and evaluation 
D)  test marketing 
E)  commercialization

Question 5

Firms such as IKEA and The Home Depot are known for their use of __________ because they set reasonably low prices but still offer high-quality products and adequate customer services.

Accepted Answer

A)  penetration pricing 
B)  market equity pricing 
C)  prestige pricing 
D)  relational pricing 
E)  value-based pricing 
A)  penetration pricing 
B)  market equity pricing 
C)  prestige pricing 
D)  relational pricing 
E)  value-based pricing

Question 6

Because the company was angered by the actions of its resellers, Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding in the channel?

Accepted Answer

A)  legitimate power 
B)  coercive power 
C)  referent power 
D)  reward power 
E)  logistical power 
A)  legitimate power 
B)  coercive power 
C)  referent power 
D)  reward power 
E)  logistical power

Question 7

Hallmark is a good example of a company that uses __________ distribution as a means of offering two or more lines of the same merchandise through two or more channels

Accepted Answer

A)  direct 
B)  secondary 
C)  split 
D)  dual 
E)  complementary 
A)  direct 
B)  secondary 
C)  split 
D)  dual 
E)  complementary

Question 8

Although the product is at the heart of the marketing program, it is important to remember that product offerings in and of themselves have little value to customers. An offering's real value comes from:

Accepted Answer

A)  its superiority to competing products. 
B)  its ability to further the image of the organization. 
C)  its value (good quality at a low price). 
D)  its ability to deliver benefits that solve a customer's problems. 
E)  its easy of use and convenience. 
A)  its superiority to competing products. 
B)  its ability to further the image of the organization. 
C)  its value (good quality at a low price). 
D)  its ability to deliver benefits that solve a customer's problems. 
E)  its easy of use and convenience.

Question 9

Although break-even analysis and cost-plus pricing are important tools in setting prices based on the firm's cost structure, they should never be the driving force behind pricing strategy. Why?

Accepted Answer

A)  Because firms want to make a profit, not just break even. 
B)  Because customer expectations are far more important in setting prices. 
C)  Because prices should be based on demand, not costs. 
D)  Because different firms have different cost structures. 
E)  Because competitor's prices are far more important in setting prices. 
A)  Because firms want to make a profit, not just break even. 
B)  Because customer expectations are far more important in setting prices. 
C)  Because prices should be based on demand, not costs. 
D)  Because different firms have different cost structures. 
E)  Because competitor's prices are far more important in setting prices.

Question 10

The goal of __________ is to maximize sales, gain widespread market acceptance, and capture a large market share quickly by setting a relatively low initial price.

Accepted Answer

A)  price skimming 
B)  odd pricing 
C)  penetration pricing 
D)  first-mover pricing 
E)  market acceptance pricing 
A)  price skimming 
B)  odd pricing 
C)  penetration pricing 
D)  first-mover pricing 
E)  market acceptance pricing

Question 11

To be successful, firms must move potential customers beyond mere interest in the product. Good promotion will stimulate __________ by convincing potential customers of the product's superiority and its ability to satisfy specific needs.

Accepted Answer

A)  dedication 
B)  investigation 
C)  attention 
D)  action 
E)  desire 
A)  dedication 
B)  investigation 
C)  attention 
D)  action 
E)  desire

Question 12

A feature article is a few pages of typewritten copy typically fewer than 300 words used to draw attention to a company event, product, or person affiliated with the firm.

Accepted Answer

A) True 
 B)False

Question 13

Many products, such as candy, soft drinks, and gum, are sold via intensive distribution. However, this strategy has a major drawback. What is it?

Accepted Answer

A)  It maximizes profit margin rather than sales volume. 
B)  It encourages customers to shop around for the lowest price. 
C)  It promotes a very high degree of brand switching. 
D)  The manufacturer must give up a good degree of control over pricing and product display. 
E)  It gives customers fewer opportunities to find the product. 
A)  It maximizes profit margin rather than sales volume. 
B)  It encourages customers to shop around for the lowest price. 
C)  It promotes a very high degree of brand switching. 
D)  The manufacturer must give up a good degree of control over pricing and product display. 
E)  It gives customers fewer opportunities to find the product.

Question 14

The distribution system used for Juicy Fruit gum would be selective distribution.

Accepted Answer

A) True 
 B)False

Question 15

Retailers use __________ extensively. This occurs when the retailer compares sale prices to regular prices, such as when Best Buy promotes a DVD player as "Regularly $99, Now $49."

Accepted Answer

A)  reference pricing 
B)  EDLP 
C)  odd pricing 
D)  value-based pricing 
E)  sale pricing 
A)  reference pricing 
B)  EDLP 
C)  odd pricing 
D)  value-based pricing 
E)  sale pricing

Question 16

The most basic benefit of marketing channels is __________ where channels reduce the number of contacts necessary to exchange products.

Accepted Answer

A)  contraction 
B)  time efficiency 
C)  contact efficiency 
D)  contact creation 
E)  accumulation 
A)  contraction 
B)  time efficiency 
C)  contact efficiency 
D)  contact creation 
E)  accumulation

Question 17

Procter & Gamble's introduction of a national chain of car washes would be a new product line for the company.

Accepted Answer

A) True 
 B)False

Question 18

Personal selling is the most precise form of communication because it assures companies that they are in direct contact with an excellent prospect.

Accepted Answer

A) True 
 B)False

Question 19

Even when prices go up, demand for gasoline does not go down too significantly because people still need to drive. This makes gasoline a highly elastic product.

Accepted Answer

A) True 
 B)False

Question 20

In most marketing channels for consumer products, the balance of power has shifted to __________ due to their size and buying power.

Accepted Answer

A)  consumers 
B)  mass merchandise retailers 
C)  wholesalers 
D)  brokers and distributors 
E)  manufacturers 
A)  consumers 
B)  mass merchandise retailers 
C)  wholesalers 
D)  brokers and distributors 
E)  manufacturers

Discuss the benefits associated with offering a large portfolio of products. What are some of the key issues involved in managing the product portfolio?

Which member of the marketing channel has the primary responsibility of fulfilling the channel's main functions?

The Ritz-Carlton Hotel is widely known for its exceptional quality and impeccable customer service. Not surprisingly, the Ritz-Carlton sets prices at the top end of all competing hotels. Which pricing strategy is the Fairmont using?

Assume Kia has developed a new product idea to launch a midsize pickup. Currently, Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process?

Firms such as IKEA and The Home Depot are known for their use of __________ because they set reasonably low prices but still offer high-quality products and adequate customer services.

Because the company was angered by the actions of its resellers, Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding in the channel?

Hallmark is a good example of a company that uses __________ distribution as a means of offering two or more lines of the same merchandise through two or more channels

Although the product is at the heart of the marketing program, it is important to remember that product offerings in and of themselves have little value to customers. An offering's real value comes from:

Although break-even analysis and cost-plus pricing are important tools in setting prices based on the firm's cost structure, they should never be the driving force behind pricing strategy. Why?

The goal of __________ is to maximize sales, gain widespread market acceptance, and capture a large market share quickly by setting a relatively low initial price.

To be successful, firms must move potential customers beyond mere interest in the product. Good promotion will stimulate __________ by convincing potential customers of the product's superiority and its ability to satisfy specific needs.

A feature article is a few pages of typewritten copy typically fewer than 300 words used to draw attention to a company event, product, or person affiliated with the firm.

Many products, such as candy, soft drinks, and gum, are sold via intensive distribution. However, this strategy has a major drawback. What is it?

The distribution system used for Juicy Fruit gum would be selective distribution.

Retailers use __________ extensively. This occurs when the retailer compares sale prices to regular prices, such as when Best Buy promotes a DVD player as "Regularly $99, Now $49."

The most basic benefit of marketing channels is __________ where channels reduce the number of contacts necessary to exchange products.

Procter & Gamble's introduction of a national chain of car washes would be a new product line for the company.

Personal selling is the most precise form of communication because it assures companies that they are in direct contact with an excellent prospect.

Even when prices go up, demand for gasoline does not go down too significantly because people still need to drive. This makes gasoline a highly elastic product.

In most marketing channels for consumer products, the balance of power has shifted to __________ due to their size and buying power.

Marketing in Todays Economy

Strategic Marketing Planning

Collecting and Analyzing Marketing Information

Developing Competitive Advantage and Strategic Focus

Customers, Segmentation, and Target Marketing

Branding and Positioning

Ethics and Social Responsibility in Marketing Strategy

Marketing Implementation and Control

Developing and Maintaining Long-Term Customer Relationships

Filters

Exam 6: The Marketing Program

Discuss the benefits associated with offering a large portfolio of products. What are some of the key issues involved in managing the product portfolio?

Which member of the marketing channel has the primary responsibility of fulfilling the channel's main functions?

The Ritz-Carlton Hotel is widely known for its exceptional quality and impeccable customer service. Not surprisingly, the Ritz-Carlton sets prices at the top end of all competing hotels. Which pricing strategy is the Fairmont using?

Assume Kia has developed a new product idea to launch a midsize pickup. Currently, Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process?

Firms such as IKEA and The Home Depot are known for their use of __________ because they set reasonably low prices but still offer high-quality products and adequate customer services.

Because the company was angered by the actions of its resellers, Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding in the channel?

Hallmark is a good example of a company that uses __________ distribution as a means of offering two or more lines of the same merchandise through two or more channels

Although the product is at the heart of the marketing program, it is important to remember that product offerings in and of themselves have little value to customers. An offering's real value comes from:

Although break-even analysis and cost-plus pricing are important tools in setting prices based on the firm's cost structure, they should never be the driving force behind pricing strategy. Why?

The goal of __________ is to maximize sales, gain widespread market acceptance, and capture a large market share quickly by setting a relatively low initial price.

To be successful, firms must move potential customers beyond mere interest in the product. Good promotion will stimulate __________ by convincing potential customers of the product's superiority and its ability to satisfy specific needs.

A feature article is a few pages of typewritten copy typically fewer than 300 words used to draw attention to a company event, product, or person affiliated with the firm.

Many products, such as candy, soft drinks, and gum, are sold via intensive distribution. However, this strategy has a major drawback. What is it?

The distribution system used for Juicy Fruit gum would be selective distribution.

Retailers use __________ extensively. This occurs when the retailer compares sale prices to regular prices, such as when Best Buy promotes a DVD player as "Regularly $99, Now $49."

The most basic benefit of marketing channels is __________ where channels reduce the number of contacts necessary to exchange products.

Procter & Gamble's introduction of a national chain of car washes would be a new product line for the company.

Personal selling is the most precise form of communication because it assures companies that they are in direct contact with an excellent prospect.

Even when prices go up, demand for gasoline does not go down too significantly because people still need to drive. This makes gasoline a highly elastic product.

In most marketing channels for consumer products, the balance of power has shifted to __________ due to their size and buying power.

Marketing in Todays Economy

Strategic Marketing Planning

Collecting and Analyzing Marketing Information

Developing Competitive Advantage and Strategic Focus

Customers, Segmentation, and Target Marketing

Branding and Positioning

Ethics and Social Responsibility in Marketing Strategy

Marketing Implementation and Control

Developing and Maintaining Long-Term Customer Relationships

Filters