COB 300 MARKETING FINAL EXAM CH
1-13 QUESTIONS WITH COMPLETE
ANSWERS
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
, Bait Pricing - Answer-Advertising low model w/ low price to later advertise the higher
cost of the product
Price Lining - Answer-Having products at every price point to capture everyone
Reference Pricing - Answer-Claiming a price drop from a significantly higher price ($300
$200)
Bundle Pricing - Answer-Shampoo + Conditioner bundle for a lower price than buying
them separate
Multiple-Unit Pricing - Answer-Bulk battery package (Saving on a per-battery box)
Every-Day Low Pricing - Answer-WalMart
Odd-Even Pricing - Answer-$6.99, $9.99 ($10,000 is for status)
Customary Pricing - Answer-Pricing is set at the considered norm for that item
Prestige Pricing - Answer-Charging high price for status or prestige
Demand Backward Pricing - Answer-Product downsizing
Price Leaders(Loss Leaders) - Answer-Retail, Grocery, Reducing product to loss to
increase foot traffic (Sheetz Gas)
Break-Even Point - Answer-Fixed Cost/(Unit Cost - Unit Variable Cost)
Total Cost - Answer-Fixed Cost + Variable Cost
Private Branding Strategy - Answer-Sears -> kenmore appliances, lands end, craftsmen
(could only get from a certain retailer)
Mixed Branding Strategy - Answer-Michelin makes michelin and sears tires
Capital Item - Answer-Larger machinery not typically moved around
4 I's of a service - Answer-Intangibility
Inseparability
Inconsistency
Inventory
Gross Margin Return on Inventory (GMROI) - Answer-Gross Margin/(Avg Inventory)
Higher % is better!
Sales peak in _________________
1-13 QUESTIONS WITH COMPLETE
ANSWERS
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
, Bait Pricing - Answer-Advertising low model w/ low price to later advertise the higher
cost of the product
Price Lining - Answer-Having products at every price point to capture everyone
Reference Pricing - Answer-Claiming a price drop from a significantly higher price ($300
$200)
Bundle Pricing - Answer-Shampoo + Conditioner bundle for a lower price than buying
them separate
Multiple-Unit Pricing - Answer-Bulk battery package (Saving on a per-battery box)
Every-Day Low Pricing - Answer-WalMart
Odd-Even Pricing - Answer-$6.99, $9.99 ($10,000 is for status)
Customary Pricing - Answer-Pricing is set at the considered norm for that item
Prestige Pricing - Answer-Charging high price for status or prestige
Demand Backward Pricing - Answer-Product downsizing
Price Leaders(Loss Leaders) - Answer-Retail, Grocery, Reducing product to loss to
increase foot traffic (Sheetz Gas)
Break-Even Point - Answer-Fixed Cost/(Unit Cost - Unit Variable Cost)
Total Cost - Answer-Fixed Cost + Variable Cost
Private Branding Strategy - Answer-Sears -> kenmore appliances, lands end, craftsmen
(could only get from a certain retailer)
Mixed Branding Strategy - Answer-Michelin makes michelin and sears tires
Capital Item - Answer-Larger machinery not typically moved around
4 I's of a service - Answer-Intangibility
Inseparability
Inconsistency
Inventory
Gross Margin Return on Inventory (GMROI) - Answer-Gross Margin/(Avg Inventory)
Higher % is better!
Sales peak in _________________
