Question 1

Why would a firm offer a wide variety of products in its product portfolio?

Accepted Answer

A)  To attract a wide range of customers and market segments. 
B)  To capitalize on the firm's reputation. 
C)  To diversify its risk. 
D)  To maximize differentiation across its product lines. 
E)  None of the above. 
A)  To attract a wide range of customers and market segments. 
B)  To capitalize on the firm's reputation. 
C)  To diversify its risk. 
D)  To maximize differentiation across its product lines. 
E)  None of the above. C

Question 2

What is the most appropriate type of distribution to use when customers need the opportunity to comparison shop. or when after-sale services are important?

Accepted Answer

A)  exclusive distribution 
B)  service-based distribution 
C)  intensive distribution 
D)  comparative distribution 
E)  selective distribution 
A)  exclusive distribution 
B)  service-based distribution 
C)  intensive distribution 
D)  comparative distribution 
E)  selective distribution E

Question 3

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 4

Identify and discuss the three major structural options for distribution. In your answer. identify the major advantages and disadvantages of each option.

Accepted Answer

There are three basic structural options

Question 5

The Fairmont Hotel is widely known for its exceptional quality and impeccable customer service. Not surprisingly. the Fairmont 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

Question 6

In business markets. __________ is used to quote prices in terms of reductions or increases based on transportation costs or the actual physical distance between the buyer and the seller.

Accepted Answer

A)  transfer pricing 
B)  countertrade 
C)  geographic pricing 
D)  logistics pricing 
E)  GPS pricing 
A)  transfer pricing 
B)  countertrade 
C)  geographic pricing 
D)  logistics pricing 
E)  GPS pricing

Question 7

Today. though cutting expenses is still a main factor. the desire of many firms to focus on core competencies is a driving force behind the increase in:

Accepted Answer

A)  category management. 
B)  channel integration. 
C)  referent power. 
D)  product differentiation. 
E)  outsourcing. 
A)  category management. 
B)  channel integration. 
C)  referent power. 
D)  product differentiation. 
E)  outsourcing.

Question 8

In launching its new line of power tools. Black and Decker spent a considerable amount of time and resources to educate. motivate. and compensate members of its supply chain. By investing heavily in these types of promotions. Black and Decker hopes its __________ strategy will lead to a more effective product launch.

Accepted Answer

A)  pull 
B)  AIDA 
C)  institutional 
D)  push 
E)  placement 
A)  pull 
B)  AIDA 
C)  institutional 
D)  push 
E)  placement

Question 9

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 10

__________ is paid personal communication that attempts to inform customers about products and persuade them to purchase those products.

Accepted Answer

A)  Personal selling 
B)  Sales promotion 
C)  Publicity 
D)  Public relations 
E)  Advertising 
A)  Personal selling 
B)  Sales promotion 
C)  Publicity 
D)  Public relations 
E)  Advertising

Question 11

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 12

__________ refers to the strategic combination of the four basic marketing mix elements.

Accepted Answer

A)  The marketing plan 
B)  The marketing program 
C)  Strategic control 
D)  The strategic mix 
E)  Implementation 
A)  The marketing plan 
B)  The marketing program 
C)  Strategic control 
D)  The strategic mix 
E)  Implementation

Question 13

Despite conventional thinking. __________ accounts for the bulk of promotional spending in many firms. This is especially true for firms selling consumer products in grocery stores and mass-merchandise retailers.

Accepted Answer

A)  personal selling 
B)  advertising 
C)  public relations 
D)  sales promotion 
E)  publicity 
A)  personal selling 
B)  advertising 
C)  public relations 
D)  sales promotion 
E)  publicity

Question 14

Which of the following statements is $\bold{TRUE}$ with respect to the relationship between price and revenue?

Accepted Answer

A)  When business is good, a price increase will increase revenue. 
B)  When business is bad, a price increase will increase revenue. 
C)  Price cuts must be offset by an increase in sales volume to keep the same level of revenue. 
D)  In highly differentiated markets, price cuts will capture greater market share. 
E)  In highly commoditized markets, price cuts will increase revenue. 
A)  When business is good, a price increase will increase revenue. 
B)  When business is bad, a price increase will increase revenue. 
C)  Price cuts must be offset by an increase in sales volume to keep the same level of revenue. 
D)  In highly differentiated markets, price cuts will capture greater market share. 
E)  In highly commoditized markets, price cuts will increase revenue.

Question 15

Firestone carefully watches the automotive market to ascertain the demand for cars. SUVs. and trucks. Firestone does this because the demand for its products is dependent on the demand for automobiles. This situation describes __________.

Accepted Answer

A)  synergistic demand 
B)  shopping demand 
C)  derived demand 
D)  product line demand 
E)  price elasticity 
A)  synergistic demand 
B)  shopping demand 
C)  derived demand 
D)  product line demand 
E)  price elasticity

Question 16

Why is the demand for most services-such as popular restaurants-extremely time-and-place dependent?

Accepted Answer

A)  Because popular services typically lack sufficient capacity. 
B)  Because services cannot be stored for future use. 
C)  Because customers must be present for service to be delivered. 
D)  Because service customers are typically unsure of their needs. 
E)  Because competing services force customers to make tradeoffs between quality and time. 
A)  Because popular services typically lack sufficient capacity. 
B)  Because services cannot be stored for future use. 
C)  Because customers must be present for service to be delivered. 
D)  Because service customers are typically unsure of their needs. 
E)  Because competing services force customers to make tradeoffs between quality and time.

Question 17

__________ is defined as a customer's subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings.

Accepted Answer

A)  Quality 
B)  Value 
C)  Price 
D)  Breakeven cost 
E)  Opportunity cost 
A)  Quality 
B)  Value 
C)  Price 
D)  Breakeven cost 
E)  Opportunity cost

Question 18

In many (if not most) circumstances. cutting prices to increase sales volume is not a good idea. Explain why this is so. What are some alternatives that are preferable to cutting prices?

Accepted Answer

All marketers understand the relationshi

Question 19

Identify and discuss reasons why firms become so infatuated with pricing.

Accepted Answer

There is no other component of the marke

Question 20

A price reduction offered to channel intermediaries for purchasing specified quantities of a product at a single time is called a:

Accepted Answer

A)  merchandise credit. 
B)  buying allowance. 
C)  selling incentive. 
D)  push money allowance. 
E)  cooperative incentive. 
A)  merchandise credit. 
B)  buying allowance. 
C)  selling incentive. 
D)  push money allowance. 
E)  cooperative incentive.

Why would a firm offer a wide variety of products in its product portfolio?

What is the most appropriate type of distribution to use when customers need the opportunity to comparison shop. or when after-sale services are important?

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

Identify and discuss the three major structural options for distribution. In your answer. identify the major advantages and disadvantages of each option.

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

In business markets. __________ is used to quote prices in terms of reductions or increases based on transportation costs or the actual physical distance between the buyer and the seller.

Today. though cutting expenses is still a main factor. the desire of many firms to focus on core competencies is a driving force behind the increase in:

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

__________ is paid personal communication that attempts to inform customers about products and persuade them to purchase those products.

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?

__________ refers to the strategic combination of the four basic marketing mix elements.

Despite conventional thinking. __________ accounts for the bulk of promotional spending in many firms. This is especially true for firms selling consumer products in grocery stores and mass-merchandise retailers.

Which of the following statements is $\bold{TRUE}$ with respect to the relationship between price and revenue?

Firestone carefully watches the automotive market to ascertain the demand for cars. SUVs. and trucks. Firestone does this because the demand for its products is dependent on the demand for automobiles. This situation describes __________.

Why is the demand for most services-such as popular restaurants-extremely time-and-place dependent?

__________ is defined as a customer's subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings.

In many (if not most) circumstances. cutting prices to increase sales volume is not a good idea. Explain why this is so. What are some alternatives that are preferable to cutting prices?

Identify and discuss reasons why firms become so infatuated with pricing.

A price reduction offered to channel intermediaries for purchasing specified quantities of a product at a single time is called a:

Marketing in Today's 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

Why would a firm offer a wide variety of products in its product portfolio?

What is the most appropriate type of distribution to use when customers need the opportunity to comparison shop. or when after-sale services are important?

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

Identify and discuss the three major structural options for distribution. In your answer. identify the major advantages and disadvantages of each option.

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

In business markets. __________ is used to quote prices in terms of reductions or increases based on transportation costs or the actual physical distance between the buyer and the seller.

Today. though cutting expenses is still a main factor. the desire of many firms to focus on core competencies is a driving force behind the increase in:

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

__________ is paid personal communication that attempts to inform customers about products and persuade them to purchase those products.

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?

__________ refers to the strategic combination of the four basic marketing mix elements.

Despite conventional thinking. __________ accounts for the bulk of promotional spending in many firms. This is especially true for firms selling consumer products in grocery stores and mass-merchandise retailers.

Which of the following statements is TRUE\bold{TRUE}TRUE with respect to the relationship between price and revenue?

Firestone carefully watches the automotive market to ascertain the demand for cars. SUVs. and trucks. Firestone does this because the demand for its products is dependent on the demand for automobiles. This situation describes __________.

Why is the demand for most services-such as popular restaurants-extremely time-and-place dependent?

__________ is defined as a customer's subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings.

In many (if not most) circumstances. cutting prices to increase sales volume is not a good idea. Explain why this is so. What are some alternatives that are preferable to cutting prices?

Identify and discuss reasons why firms become so infatuated with pricing.

A price reduction offered to channel intermediaries for purchasing specified quantities of a product at a single time is called a:

Marketing in Today's 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

Which of the following statements is $\bold{TRUE}$ with respect to the relationship between price and revenue?