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92 Cards in this Set

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Ford Motor Company used the slogan "No Boundaries" for its ad campaigns for Ford SUVs. It invites people who want ultimate people-carrying and gear-storing capabilities "to be outfitted with the most far-reaching sports utility vehicle on earth." If the SUV campaign were simply geared to families with young children, it would be using _____ segmentation, but because the campaign is trying to appeal to people who don't like the restrictions of a sedan, who want to be able to pack up and leave at a moment's notice, and who enjoy freedom and independence, it is relying on _____ segmentation.
demographic; psychographic
When Procter & Gamble introduced Crest, the first fluoride toothpaste, it was intended for use by children and was therefore given a child-appealing bubblegum flavor. Some time later the same basic formula was given a fresh, minty flavor to appeal to adults. What is this marketing strategy called?
product differentiation
In class, what did Professor Witt say was the only truly sustainable competitive advantage?
Knowing and understanding the consumers
It is common among LDS communities to hold potluck meals for which Relief Society sisters often prepare traditional pioneer dishes like green Jello with shredded carrots. Unfortunately, it is often difficult to keep track of pots, pans and dishes at large gatherings. Clorox Corporation, owner of Glad, responded to this common consumer problem by creating GladWare; inexpensive disposable dishes for transporting food. This is an example of Clorox using __________ variables to segment its market.
benefits sought
William Morris talent agency represents country singer Trace Adkins in negotiations with various performance venues. Imagine that the agency decided the singer would not perform at venues located in communities with less than 100,000 people. This would be segmenting the market by _____ variables, commonly used as a means of market segmentation.
geographic
What does not contribute to creating value for targeted customers?
branding
Who said, "Strategy is about choices and trade-offs, deliberately choosing to be different?"
Michael Porter
Which of the following is NOT a requirement for effective segmentation?
Profitable
Which market targeting strategies is the most narrow?
Micromarketing
What is an example of product line stretching?
Marriott hotel brands: Residence Inn, Courtyard, Renaissance, and JW Marriott
The ________ is built around the core benefit, the actual product and all other aspects of the product experience including delivery and credit, service, warranty and installation.
augmented product
When consumers think of Harley-Davidson, the image of a masculine, non-conformist is the likely associated with that brand of motorcycle. With Vespa motorscooters, the image might more likely be a brainy environmentalist. Both Vespa and Harley-Davidson:
have brand personalities
extends a brand name to a new or modified product in a new category. Musical instruments and snowmobiles are different products in unique categories directed at different markets. ex. Yamaha makes snowmobiles and musical instruments
brand extension
Extending a brand name to a new product in a new category is an example of:
brand extension
What is NOT a characteristic of a service
attribute
____________ is the positive differential effect that knowing the brand name has on customer response to the product or service
brand equity
Give an example of co-branding
Klondike and Oreo are separate brands combined into a single product offering.
If you define "automobiles" as the product class, which of the following is the best example of the product form?
Truck, Sedan, SUV, etc
Breyer's introduced for sale a new line of ice cream flavors in elegant black containers. This was done on a limited scale to determine consumer reactions before national distribution of the product. Breyer's new product was in the _____ stage of the new-product process.
market testing
Nike recently introduced a new method of buying shoes called NikeID. Through NikeID, consumers can select a shoe, customize various parts of the shoe, and add a personal ID such as a nickname or jersey number. Customers can change the color scheme of the shoe and in some cases, the customer can specify materials. NikeID has enabled Nike to tailor their products to the specific preferences of the consumer at a high volume and relatively low cost. This is an example of _______________.
mass customization
T or F
Commercialization is the process of introducing a new product into the market.
true
Harley Davidson began the project code named "Digger," in order to accomplish what objective?
Address a different segment of the motorcycle market.
How did Harley Davidson organize the teams, departments and individuals during the development process for the V-Rod?
The company and the Digger project participants were organized into cross-functional teams.
The V-Rod engine was developed in a joint venture between Harley Davidson and Porsche. The Düsseldorf engine test is an example of activities which take place during the _____ stage of the new-product process.
development
Which three components presented the greatest design challenges to Harley Davidson during the development of the V-Rod?
gas tank, radiator, exhaust pipe
You are the marketing manager for a company that manufactures Music2Go portable MP3 players and you want to reduce your break-even production quantity. Other things being equal, you can do this by:
reducing unit variable cost.
In one of its least favorite actions, Amazon.com was caught fiddling with its price tags. Shoppers complained after learning that Amazon was offering different customers different prices for the same DVD. According to company officials Amazon was trying to see how much it could charge for an item before shoppers balked. No matter what the reasoning behind it, Amazon.com had been caught red handed using:
price discrimination
During the development process for a new product, the Swedish manufacturer of Asko dishwashers concluded that consumers would be willing to pay approximately $989 for a dishwasher that was quieter than any other machine on the market. Based on this price, Asko created and priced the product considering what profit margins would be allowed for wholesalers and retailers in order to achieve the $989 retail price. Asko used:
value-based pricing
____________ is setting a price by estimating the price consumers would be willing to pay for the product, then working backward through margins for retailers and wholesalers to achieve the targeted retail price.
value-based pricing
Woodsgift Farm sells floral jellies made from pansies, honeysuckle, wisteria, and other flowers. To price its jellies, the owner of the farm always adds 30 percent to the cost of everything that goes into making the jellies including their salaries, jars, sugar, and pectin. What is this pricing method called?
cost-plus pricing
________ adds a fixed percentage to the cost.
cost-plus pricing
In the early 1980s, typical round trip coach fares from the East Coast to London were over $500. Then Freddie Laker introduced a competing service into Newark at $350. Major airlines matched his price--and continued to do so until they drove Laker out of business. Then prices shot back up to over $500. A lawsuit filed under the Sherman Act resulted in the judgment that the major airlines had explicitly tried to destroy a competitor. Laker's experience is an example of:
Predatory Pricing
What would be the most difficult in determining how much additional profit might result from a new advertising campaign?
predicting the additional sales generated by the campaign
"The customer is our enemy; the competitor is our friend." That's the unofficial world-view of $11-billion-in-sales Archer Daniels Midland (ADM), according to FBI mole-executive Mark Whitacre in an interview. Given this information, which of the following illegal pricing practices would ADM have been most likely to engage in?
Question 7 answers
price fixing
______ is a conspiracy among firms to set prices for a product
price fixing
For precision shooting competitions, Leupold & Thomas, U.S. manufacturers of rifle scopes, patented a revolutionary new laser optic system specifically designed for competitive target shooters. Shooting competitions are won by hundredths of an inch, so the image seen through the scope is crucial. Given the advantage afforded by the patent, Leupold decided to set an initial price for the new Competition Series II scope at $1,600 and up, even though their production costs are 20 percent lower than their current Competition Series I scopes which start at $1,200. Which pricing strategy is Leupold & Thomas using?
market skimming
American's consumption of gasoline remains fairly constant as prices fluctuate between $1.39 per gallon and $1.59 per gallon. This would suggest that demand for gasoline between these two price points is:
inelastic
As suggested by Theadore Levitt in Marketing Myopia, Henry Ford could be considered a genius because:
he figured out that many people would pay $500 for an automobile.
The conditions favoring _______are most likely to exist when a new product is protected by patent or copyright or its uniqueness is understood and appreciated by customers
market skimming
The Robinson-Patman Act deals with what 4 things
1- price discrimination
2- Price differentials to different 4- customers under certain changing market condigions
3- Provisions dealing with promotional allowances
4- Allows sellers to "Meet the Competition"
The Japanese manufacture tractors for rice paddies. They are smaller than most U.S. tractors and perfect for a weekend farmer who wants to tend to a small garden. The tractors are not sold in the U.S. through any authorized channels, yet they are available in the U.S. at prices below the manufacturer's suggested retail price. What is the term for how these tractors are being sold?
gray marketing
_______ is a situation where products are bought in a lower-priced country from a manufacturer's authorized reseller, shipped to higher-priced countries, and sold through unauthorized channels of distribution below the manufacturer's suggested retail price
gray marketing
Eastman Kodak accused Japanese rival Fuji Photo Film of selling photographic paper in the United States for 25 percent of what it charges in Japan. In other words, Eastman Kodak accused Fuji of ___________.
dumping
A firm selling a product in a foreign country below its domestic price or below its actual cost is often accused of _______
dumping
KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an example of which type of international product strategy?
product adaptation
Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of
product adaption
Capital Radio PLC, the United Kingdom's biggest commercial radio firm recently announced that it would co-invest with Walt Disney Co. to create a radio network for children under the age of 16. The company will broadcast to a potential audience of 25 million under the name Capital Disney. This new radio network will be created as the result of __________
a joint venture (co-investing)
Harley-Davidson uses intermediaries to sell its motorcycles in numerous nations outside the U.S. This is an example of _______________.
indirect exporting
_________ occurs when a firm sells its domestically produced goods in a foreign country through an intermediary.
indirect exporting
A woman from Salt Lake City is in Los Angeles for a weekend of shopping and fine dining. After shopping in at least five different stores and trying at least a dozen outfits, she finds exactly what she has been looking for—the perfect linen suit. At the register however, she notices that the label indicates that the suit was made in Ireland. Although she agrees with the salesperson that the suit is perfect for her, and that Irish linen is considered to be a fine material, she does not purchase that suit; instead she selects a less flattering, more expensive suit that contains a label stating it was made in the USA. This behavior would likely be an example of _____________.
consumer ethnocentrism
________ is the tendency to believe it is inappropriate, indeed immoral, to purchase foreign-made products. In this case, the consumer was willing to buy a lower-quality, higher-priced item instead of one made outside the United States.
consumer ethnocentrism
Tricon was the restaurant division of PepsiCo until it was spun off in 1997. Since then Tricon has opened over 6,000 Kentucky Fried Chicken restaurants abroad. It has 158 in Indonesia and more than 500 restaurants in China. All are locally owned, and the owner pays a fee to Tricon. Tricon is engaged in
licensing
U.S. appliance manufacturers find that different customs about shopping must be used to determine product design. For instance, people in Northern Europe shop only once a week, so they need bigger refrigerators than Southern Europeans who shop daily. Furthermore, Northern Europeans insist that freezers should be on the top just as loudly as Southern Europeans insist that freezers should be on the bottom. Other regions use their appliances differently and have other different product demands. Given this information, you should conclude U.S. appliance manufacturers would be more likely successful if they used a(n) _____________ marketing strategy.
multidomestic
Companies that use a _________ strategy have as many different product variations as countries in which they do business.
multidomestic
To enter the European market, Starbucks joined in a cooperative venture with Bon Appetit Group A.G. in Switzerland. Bon Appetit has the recognized brand name and Starbucks has the product and the expertise to run coffeehouses. Coffee houses owned and operated by Starbucks that sell Starbucks coffee under the Bon Appetit brand name would suggest that the companies have formed what type of relationship?
a strategic alliance
Three-quarters of Guatemalans are under 30. About 65 percent of all Guatemalans are indigenous Amerindians of Mayan origin. According to Harvard Business School Professor Michael Porter, these ____________ would impact what type of international businesses would be successful in Guatemala.
demand conditions
_______ include the number of domestic customers for an industry's product
demand conditions
Supply chain management is about what 4 components
1- Improving the way a company finds raw components
2- Manufacturing products
3- Delivering products to customers
4- delivering services
_______is the art and science of improving the way a company finds the raw components it needs to make a product or service, manufactures that product or service and delivers it to customers.
Supply chain management
T or F - Supply chain management is the only element of the marketing mix that does not focus on creating value for the customer.
False
_________attempt enterprise-wide coordination of business processes by allowing (conceptually at least) all functional areas within a firm to access and analyze a common information base.
ERP Systems
______ may allow all functional areas within the company to access and analyze a common information base.
ERP Systems
Which type of distribution density is used by Rolls Royce when the car manufacturer maintains only one dealership in any large metropolitan area?
exclusive distribution
_____________ occurs when a producer or channel member bypasses another member and sells directly to the customer.
Disintermediation
How does a supply chain differ from a marketing channel?
A supply chain includes suppliers that provide raw material inputs to a manufacturer.
How does a supply chain differ from a marketing channel? 2 - long explanation
A supply chain includes delivery of both inputs to, and outputs from the firm, while a marketing channel includes only the delivery of outputs (finished products) to customers (However, customer returns and other aspects of reverse logistics can also be integral to the marketing channel. Example: old car batteries and tires.) Moreover, all of the things you learn in marketing are foundational principles within the whole of eternal truth.
What are the following of examples of?
1-A Southern California hotel franchise operator provides poor service and hurts other, nearby operators of the same chain by damaging the reputation of the hotel brand.
2- A cosmetics manufacturer that has traditionally sold its products through Neiman Marcus, Saks Fifth Avenue and Nordstrom expands distribution to include Wal-Mart and Target.
channel conflict
The following are examples of what?
Buying, selling, risk taking, assorting, storing, sorting, transporting, financing, grading, marketing information and research
marketing channel intermediary
T or F?
It is reasonable to assume that a well designed, well run marketing logistics system can BOTH maximize customer service AND minimize distribution costs.
False - No marketing logistics system can do both. The goal should be to provide a targeted level of customer service at the lowest cost.
Integrated logistics management is the responsibility of which department within the company or organization?
Integrated logistics management is a cross-functional concept to provide a higher level of customer service at a reasonable cost. It requires an integrated effort by many different departments within a company including sales, marketing, finance, operations, purchasing and others.
a process that reclaims recyclable and reusable materials and returns for repair, remanufacturing, redistribution, or disposal.
Reverse logistics
During a late night study session your work group is watching an old episode of Andy Griffith on Nickelodeon. In one scene Aunt Bea and Barney Fife are driving toward town in Barney's squad car. They pull into a truck stop along the way to buy produce from some farmers selling their fresh fruits and vegetables from the back of their pickup trucks. This form of distribution would best be referred to as:
direct marketing channel
When a channel member bypasses another member and sells or buys product directly, this is termed:
disintermediation
According to the movie in class, McDonald's had to work directly with farmers in Russia in order to create reliable, local source for which product on their menu?
potatoes
ntermediaries that are between the producer and consumer that may perform numerous channel functions.
Indirect marketing channels for consumer goods
The Hallmark Card Company is able to maintain good dealer relationships because it limits the number and maintains the quality of outlets through which it sells. Hallmark uses _____ distribution.
Selective distribution
- selects a few retail outlets in a specific area to carry its products
Different from Apple's iPod, breath mints, bottled water, candy bars, and nail clippers would most likely use which density of distribution?
Intensive distribution
- is usually chosen for convenience products like chewing gum, candy, beverages, many health and beauty products, bottled water, etc.
Many BYU students own more than one pair of blue jeans. Since few students buy their clothes at the BYU Bookstore, it is likely you purchased your jeans at one or more retail stores like Gap, Old Navy, Mervyn's, Dillards, Buckle, or Meier & Frank rather than directly from the manufacturer. This means you bought your jeans through a(n) _____, which consists of several organizations involved in the marketing process.
marketing channel
Which type of distribution density is used by Rolls Royce when the car manufacturer maintains only one dealership in any large metropolitan area?
Exclusive distribution
-is typically chosen for specialty products or services--for example, private jets, boats, automobiles, some women's fragrances, men's suits, etc.
The decision by Dell Computer to sell PCs direct to the consumer and through Costco Membership stores is an example of _____.
multichannel distribution
For precision shooting competitions, Leupold & Thomas, U.S. manufacturers of rifle scopes, patented a revolutionary new laser optic system specifically designed for competitive target shooters. Shooting competitions are won by hundredths of an inch, so the image seen through the scope is crucial. Given the advantage afforded by the patent, Leupold decided to set an initial price for the new Competition Series II scope at $1,600 and up, even though their production costs are 20 percent lower than their current Competition Series I scopes which start at $1,200. Which pricing strategy is Leupold & Thomas using?
market skimming
When using a product line pricing strategy, a retailer will:
set the price of a line of products at a number of different specific pricing points.
Feedback: Key definition product line pricing
"The customer is our enemy; the competitor is our friend." That's the unofficial world-view of $11-billion-in-sales Archer Daniels Midland (ADM), according to FBI mole-executive Mark Whitacre in an interview. Given this information, which of the following illegal pricing practices would ADM have been most likely to engage in?
Price fixing
-is a conspiracy among firms to set prices for a product. Alternatives B, C, and D are not illegal. "Bait and switch" refers to the practice of advertising a low price the company has no intention of honoring just to lure consumers into the store in order to sell a higher priced item.
In the early 1980s, typical round trip coach fares from the East Coast to London were over $500. Then Freddie Laker introduced a competing service into Newark at $350. Major airlines matched his price--and continued to do so until they drove Laker out of business. Then prices shot back up to over $500. A lawsuit filed under the Sherman Act resulted in the judgment that the major airlines had explicitly tried to destroy a competitor. Laker's experience is an example of:
predatory pricing
Woodsgift Farm sells floral jellies made from pansies, honeysuckle, wisteria, and other flowers. To price its jellies, the owner of the farm always adds 30 percent to the cost of everything that goes into making the jellies including their salaries, jars, sugar, and pectin. What is this pricing method called?
cost-plus pricing
During the development process for a new product, the Swedish manufacturer of Asko dishwashers concluded that consumers would be willing to pay approximately $989 for a dishwasher that was quieter than any other machine on the market. Based on this price, Asko created and priced the product considering what profit margins would be allowed for wholesalers and retailers in order to achieve the $989 retail price. Asko used:
target costing/target pricing
In one of its least favorite actions, Amazon.com was caught fiddling with its price tags. Shoppers complained after learning that Amazon was offering different customers different prices for the same DVD. According to company officials Amazon was trying to see how much it could charge for an item before shoppers balked. No matter what the reasoning behind it, Amazon.com had been caught red handed using:
price discrimination.
The practice of charging different prices to different buyers for goods of like grade and quality.
price discrimination.
You are the marketing manager for a company that manufactures Music2Go portable MP3 players and you want to reduce your break-even production quantity. Other things being equal, you can do this by:
reducing unit variable cost.
Which of the following is not one of the product life-cycle modifying strategies mentioned in class?
Production Modifying
In class we discussed a car company that is currently deciding whether or not they should continue to offer manual transmissions in their vehicles. This company is _____________.
BMW
Commercialization is the process of introducing a new product into the market. - Tor F
True