COB 300 MARKETING EXAM
QUESTIONS AND ANSWERS
Private Brand - Answer-is exclusive to a particular store but not produced by said
company
Eight steps of new product development process - Answer-Idea generation
Idea screening
Concept development/testing
Marketing strategy development
Business analysis
Product development
Test marketing
Commercialization
Crowdsourcing - Answer-inviting broad communities of people... into product innovation
process
Product concept - Answer-a detailed version of new product stated customer terms
Concept testing - Answer-testing new product concepts with a group of target
consumers to find out if they have appeal
Marketing strategy development - Answer-designing an initial marketing strategy for a
new product based on the product concept
Business analysis - Answer-a review of sales, costs, and profit projections for a new
product to find out whether these factors satisfy company objectives
Customer-centered product development - Answer-new product development focused
on finding new ways to solve customer problems
Five stages of product development life cycle - Answer-- Product Development
- Introduction
- Growth
- Maturity
- Decline
Fad - Answer-temporary period unusually high sales from customer enthusiasm and
popularity of product or brand
Cost-based pricing steps - Answer-Design a good product
Determine product costs
Set price based on cost
, Convince buyers of product's value
Value-based pricing steps - Answer-Assess customer needs
Set target price to match perceived-value
Determine costs that can be incurred
Design product to delver desired value at target price
Value-added pricing - Answer-attaching value-added features and services to
differentiate a company's offers.
Product line pricing - Answer-setting the price steps between various products in a line
based on cost differenes between the products, customer evaluations, etc.
optional-product pricing - Answer-the pricing of optional or accessory products along
with main one
By-product pricing - Answer-setting price for by-products to help offset costs of disposal
and make main price more competitive
Allowance - Answer-promotional money paid by manufacturers to retailers in return for
featuring product in some way
dynamic pricing - Answer-adjusting prices continually to meet characteristics and needs
of individual buyers
Negotiated Pricing - Answer-Cars, Houses (Everything in B2B is negotiated)
Secondary Market Pricing - Answer-Human drugs compared to drugs for pets
Periodic Discounting - Answer-Seasonal retail discounts
Random Discounting - Answer-Discounting poorly selling products, older products
Price Skimming - Answer-High price to top innovators
Penetration Pricing - Answer-Low prices for competition
Product Line Pricing (2 Products or More): - Answer-Captive Pricing:
Premium Pricing:
Bait Pricing:
Price Lining:
Captive Pricing: - Answer-Razor blades, Ink Cartridges
Premium Pricing - Answer-Higher Quality → Higher Price
QUESTIONS AND ANSWERS
Private Brand - Answer-is exclusive to a particular store but not produced by said
company
Eight steps of new product development process - Answer-Idea generation
Idea screening
Concept development/testing
Marketing strategy development
Business analysis
Product development
Test marketing
Commercialization
Crowdsourcing - Answer-inviting broad communities of people... into product innovation
process
Product concept - Answer-a detailed version of new product stated customer terms
Concept testing - Answer-testing new product concepts with a group of target
consumers to find out if they have appeal
Marketing strategy development - Answer-designing an initial marketing strategy for a
new product based on the product concept
Business analysis - Answer-a review of sales, costs, and profit projections for a new
product to find out whether these factors satisfy company objectives
Customer-centered product development - Answer-new product development focused
on finding new ways to solve customer problems
Five stages of product development life cycle - Answer-- Product Development
- Introduction
- Growth
- Maturity
- Decline
Fad - Answer-temporary period unusually high sales from customer enthusiasm and
popularity of product or brand
Cost-based pricing steps - Answer-Design a good product
Determine product costs
Set price based on cost
, Convince buyers of product's value
Value-based pricing steps - Answer-Assess customer needs
Set target price to match perceived-value
Determine costs that can be incurred
Design product to delver desired value at target price
Value-added pricing - Answer-attaching value-added features and services to
differentiate a company's offers.
Product line pricing - Answer-setting the price steps between various products in a line
based on cost differenes between the products, customer evaluations, etc.
optional-product pricing - Answer-the pricing of optional or accessory products along
with main one
By-product pricing - Answer-setting price for by-products to help offset costs of disposal
and make main price more competitive
Allowance - Answer-promotional money paid by manufacturers to retailers in return for
featuring product in some way
dynamic pricing - Answer-adjusting prices continually to meet characteristics and needs
of individual buyers
Negotiated Pricing - Answer-Cars, Houses (Everything in B2B is negotiated)
Secondary Market Pricing - Answer-Human drugs compared to drugs for pets
Periodic Discounting - Answer-Seasonal retail discounts
Random Discounting - Answer-Discounting poorly selling products, older products
Price Skimming - Answer-High price to top innovators
Penetration Pricing - Answer-Low prices for competition
Product Line Pricing (2 Products or More): - Answer-Captive Pricing:
Premium Pricing:
Bait Pricing:
Price Lining:
Captive Pricing: - Answer-Razor blades, Ink Cartridges
Premium Pricing - Answer-Higher Quality → Higher Price
