Ultimate Business & Marketing: Top QUESTION & ANSWERS

Ultimate Business & Marketing: Top QUESTION & ANSWERS introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers - ANSWER false Casey's is a large supermarket that practices everyday low prices. therefore, consumers should expect few discounts or sales if shopping at Casey's regularly - ANSWER true which of the following statements is true of retailing - ANSWER services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed retailers must decide on three major product variables: product assortment, services mix, and ____ - ANSWER store atmosphere as with other types of marketers, a primary goal in wholesaling is to - ANSWER build value-adding customer relationships food galore is a regional chain of supermarkets in the midwest. the primary role of the staff is to restock shelves and operate cash registers. customers locate, compare, and select their groceries. food galore is most likely a - ANSWER self service retailer ____refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use - ANSWER retailing which of the following is true about trends in wholesaling - ANSWER the demand for lower prices and higher quality has increased the american tie company, a necktie retailer, offers a deep assortment of men's neckties. the american tie company is best described as a - ANSWER specialty store Pricing Tactics - ANSWERshort-term methods to focus on select components of the 5 C's Markdowns Quantity Discounts Seasonal Discounts Coupons Rebates Leasing Price Bundling Leader Pricing Price Lining markdown - ANSWERreduction on the initial selling price of products - eliminates slow-moving, obsolete or out-of-season inventory Quantity Discount - ANSWERsize discount = price reductions for purchasing larger sizes/quantities - goal = encourage larger purchases, reducing brand switching Seasonal Discount - ANSWERprice reduction offered during off-peak seasons Coupons - ANSWERdiscounts on specific items provided by manufacturers or retailers through various medium Rebates - ANSWERdiscounts offered by the manufacturers as a partial refund of the purchase price sent to the buyer after purchase. Leasing - ANSWERconsumers pay to use a product without owning it - appeals to less price sensitive consumers who don't want long term ownership responsibilities - prefer to replace products price bundling - ANSWERselling multiple items together at a single, lower price Lender pricing - ANSWERaggressively price and advertise a commonly purchases item at a or near cost to attract customers - helps increase store traffic - draw customers with low prices lender items to encourage additional purchases price lining - ANSWERsetting a price range (floor/ceiling) for a product line with distinct price points in between to indicate quality differences. - customers avoid the lowest prices items to avoid appearing frugal - select mid-price (balance between affordability and quality) Legal and Ethical Aspects of Pricing - ANSWER- pricing strategies can sometimes harm consumers or reduce competition through unethical practices - laws/regulations at the state and federal level aim to prevent unfair pricing Descriptive or Illegal price advertising Predatory pricing Price Discrimination Price Ficing Descriptive or Illegal price advertising - ANSWER"puffery" - is allowed -- Deceptive Reference price = inflated or fictitious reference points mislead consumers - 50% of sales should occur at the "regular price" to qualify as bona fide -- Loss lender Pricing = pricing a regularly purchased item aggressively above cost to build store traffic -- Bait and Switch Pricing = advertising low prices items to lure consumers and then pursuing them to buy a higher-priced model. Predatory pricing - ANSWERsetting extremely low prices to drive competition out of business - legally considered a form of unfair competition challenges: - evidence must show the firm intended to eliminate competitors ( block entry) - must prove firm priced products below average cost Price Discrimination - ANSWERselling the same products to different resellers at varying prices. Legal = quantity discounts - for all customers Illegal = pricing to favour a few or one buyer, Pricing Fixing - ANSWERcollusion between firms to control price Horizontal: collude to control prices for similar products - removes price competition reducing customer choice Vertical: parties at different levels of a supply chain agree to control prices passed to consumers -- MSAP = manufacturers suggested retail price - reduces retail price competition, encourages complementary services + supports the brand image Grey market pricing - ANSWERuse of irregular but legal methods to bypass authorized distribution channels, selling goods at lower prices than intended by the manufacturer. Integrated Marketing communications - ANSWERrepresents the promotion dimension -- encompasses communication disciplines 3 elements - the consumer, the channels through which the message is communicated, and the evaluation of the results of the communication Channels used in an IMC - ANSWERadvertising, personal selling, sales promotion, PR, direct marketing, online marketing + social media ___ creates a seamless cross channel buying experience that integrates in-store, online, and mobile shopping - ANSWER omni-channel retailing jones and company, a major retail chain across the US, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, jewelry, and food. jones and company is best described as - ANSWER a department store ____includes all the activites involved in selling goods and services to those buying them for resale or business use. - ANSWER wholesaling which of the following is an impact of the great recession on retailing trends - ANSWER tighter consumer spending patterns charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic create a low-price range, or attract customers who will buy other goods at full price is referred as - ANSWER high-low pricing grace and her fiance visit several furniture stores around their hometown. they use their smartphones to capture information about manufactures and pricing, and ultimately decide to buy their items online. this is referred to as - ANSWER showrooming service retailers in the US are growing faster than product retailers - ANSWER true millie foods, producers of baby food, offers a monetary sum to retailers who agree to feature its new products on their shelves for a considerable time period. in this case, the promotion tool used by the company is referred to as - ANSWER an allowance sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called _____promotions - ANSWER trade sales promotions constitute the interpersonal arm of the promotional mix - ANSWER false which aspect of niche online social networks makes the medium most appealing to marketers - ANSWER they cater to the needs of small communities of like-minded people online visitors can't buy anything at ESPN.com. instead the site creates a virtual experience for sports enthusiasts and fans. this is most likely an example of - ANSWER a branded community web site _____refers to marketing via the internet using company web sites, online advertising and promotions, email marketing, online videos, and blogs - ANSWER online marketing What is a product - ANSWER- anything that is of value to a consumer and can be offered through a voluntary marketing exchange - anything that might satisfy a want/need - product//service/ideas/ organizations/people Product types - ANSWERspecialty, shopping, convenience, unsought Product focuses on ... - ANSWERcore customer value - people don't buy features they buy benefits Product Mix - ANSWER- complete set of all products/services by a firm - included product lines and individual offerings Product Line - ANSWERgroup of associated items that consumers tend to use together or think of as similar products or services Breadth - ANSWERcount of the number of product lines offered by a firm. Depth - ANSWERnumber of products within a product line. Cannabalize - ANSWERtake away sales from the other brand, with no net sales, profit or market share increase (products are too similar) Branding - ANSWERcompany lives or dies based on brand awareness - people cannot buy product that they dont know exist - brand names, logos, symbols, characters, slogans, jingle, distinctive packagng. Value of Branding for the consumer - ANSWER- Brands facilitate purchases -Brands establish loyalty - Brands protect from competitors and price competition - Brands are Assets - Brand affect Market Value Brand Equity - ANSWERthe value of a brand translates into brand equity or the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. 4 aspects of a brand to determine it's equity - ANSWER1. brand awareness 2. perceived value 3. brand associations 4. brand loyalty Brand Awareness - ANSWER- how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it - create brand awareness through repeated exposures -- logo, slogan, name, packaging Perceived Value - ANSWERrelationship between a product/service's benefits and its cost ( often seen in relation to value of competitors) Brand Associations - ANSWERreflect the mental and emotional links that consumers make between a brand and its key product attributes (logo, slogan etc) - firms also create specific associations with positive emotions -- fun, friendship, good feelings Brand Loyalty - ANSWERwhen a customer buys the same brand product repeatedly over time rather than buying from multiple suppliers within the same category ps. Marketing to loyal customers is much cheaper cause they don't have to spend money on ads/campaigns to attract them. Brand Ownership - ANSWERBrands can be owned by any firm in the supply chain, whether manufacturers, wholesalers, or retailers. Two Basic brand ownership startegies - ANSWERManufacturer brands (national brands) Retailer/ Store Brands (private-label brands) Manufacturer Brands - ANSWER= owned and managed by the manufacturer (Nike, kraft) - develops the merch, produces it and invests in marketing programs to establish the brand. Retailer/ Store Brands - ANSWER= products developed by retailers (Costco) - some develop their products, and some develop designs wth contracts with manufacturers to produce them. Family Brands - ANSWERfirms can use its own corporate name to brand all its products lines and products Individual Brands - ANSWERindividual brand names for each of its products (ex, kraft has Philadelphia cream cheese) Brand Extension - ANSWERnew line added to the existing mix - same brand name - brand name applied to new product line (complementary or different) - avoids costs of new brand development -- allows for efficient promo Line extension - ANSWERnew product added to the existing line. - closely related to other products in firm's existing line -- add sizes, types, colours, price ranges Brand dilution - ANSWERwhen the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold To prevent negative consequences of brand extensions, firms should... - ANSWER- evaluate the product class of the core brand and that of the extension - evaluate consumer perceptions of the core brand - seek similar attributes - refrain from extending the brand name to too many products - consider if brand extension distances from the core brand. Co - branding - ANSWERthe practice of marketing two or more brands together, on the same package or promotion ( designed to appeal to diverse marekt segments) Brand Licencing - ANSWERa contractual agreement whereby one company (licensor) allows its brand name(s) to be used with products of services offered by another company (licensee) for a royalty or fee. Brand Repositioning (rebranding) - ANSWERrefers to a strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences Packaging - ANSWERPrimary package = the one the consumer uses, such as a toothpaste tube Secondary package = wrapper or exterior carton that contains the primary package and provides UPC label Product labeling - ANSWERprovide information the consumer needs for his or her purchase decision and consumption of the product - important for branding and a communication tool Service - ANSWERany intangible offering that involved a deed, performance or effort that cannot be physically possessed. customer service - ANSWERrefers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants 4 fundamental differences (compared to good) - ANSWER1. Intangible 2. Inseparable Production and Consumption 3. Hetergenous/ Inconsistent 4. Perishable Intangible - ANSWERunable to be touched or grasped; not having physical presence - makes it difficult to convey the benefits of services Inseparable Production and Consumption - ANSWER-Services are produced and consumed at the same time Heterogeneous/ Inconsitent - ANSWERthe more humans that need a service the more variability in the services quality. Perisable - ANSWERcan not be stored for future use service gap - ANSWERwhen expectations of service are not met during delivery GAPS Model - ANSWER- designed to encourage the systematic examination of all aspects of the service delivery process and develop an optimal service level. knowledge gap, standards gap, delivery gap, communication gap knowledge gap - ANSWERreflects the difference between customers' expectations and the firm's perception of those expectations standards gap - ANSWERthe difference between the firm's perceptions of customers' expectations and the service standards it sets delivery gap - ANSWERthe difference between the firm's service standards and the actual service it provides to customers Communication gap - ANSWERthe difference between the actual service provided to customers and the service that the firm's promotion program promises Growth Strategies - ANSWERmarket penetration, market development, product development, diversification Market penetration - ANSWERemploys a marketing mix to focus on the firm's efforts on the existing customers. - - achieved by encouraging current consumers to patronize the firm more often to buy more each visit. - increased advertising, and additional sales promotions or intensified distribution efforts in geographic areas in which the product is sold market development - ANSWERreach new market segments for current company products - both domestic or international Product Development - ANSWERoffering modified or new products to current market segments Diversification - ANSWERintroducing new products into new market segment