MBA 706 Exam 2: Questions With Verified Solutions
Marketing Mix Correct Answer - Factors of a company that help
encourage customers to purchase products. Known as The 4P's of marketing
Three extra elements to make the 7P's of marketing Correct Answer -
Physical Evidence (Environment):Tangible components that facilitate a
service
People: finding, recruiting, training the right people
Process management: how to manage the process that delivers a service to
consumers
Product Correct Answer - Physical goods, services, ideas
Can be viewed in 3 levels:
Core Benefit: core need/want consumers what to satisfy
Actual Product: physical attributes of a product
Augmented Product: Intangible parts of a product that add value
Quality Correct Answer - one dimension that differentiates a product.
Can be positively related to market share
Product line Correct Answer - a group of closely related product items
Product mix Correct Answer - all products that a company sells
Product mix width Correct Answer - number of different product lines
the company carries
Product mix depth Correct Answer - the number of product items in a
product line
Product consistency Correct Answer - The extent to which the different
product lines are related to each other
How to use products to increase business Correct Answer - Add new
product lines
Add new products to existing lines
Add variants of existing products
, Change product consistency
How to eliminate an underperforming product Correct Answer -
Harvesting: Reduce investments to eliminate when no longer financially
feasible
Line simplification: Trim a line by dropping products/varieties
Total line divestment: Eliminate the entire product line
How does Price affect competition? Correct Answer - in a perfect
competition, companies have no control over prices and theyre determined by
the market
In the real world, perfect competition does not exist, so companies have
control of prices
Prices still determine consumer's product choice to a large extent and price
decisions are crucial to success
Price-takers Correct Answer - Buyers and sellers in a competitive
market that must accept the price that the market determines
Price-makers Correct Answer - companies that have sufficient power in
market and are able to determine price levels that others follow
Profit maximization Correct Answer - prices are set to maximize profits
Satisfactory profits: Correct Answer - prices are set to achieve profits
deemed satisfactory by the management and stockholders
Market Segmentation Correct Answer - The process of dividing
consumers into groups with similar wants and needs
Undifferentiated marketing Correct Answer - A company targets all
consumers with a single offering instead of segmenting
Marketing Mix Correct Answer - Factors of a company that help
encourage customers to purchase products. Known as The 4P's of marketing
Three extra elements to make the 7P's of marketing Correct Answer -
Physical Evidence (Environment):Tangible components that facilitate a
service
People: finding, recruiting, training the right people
Process management: how to manage the process that delivers a service to
consumers
Product Correct Answer - Physical goods, services, ideas
Can be viewed in 3 levels:
Core Benefit: core need/want consumers what to satisfy
Actual Product: physical attributes of a product
Augmented Product: Intangible parts of a product that add value
Quality Correct Answer - one dimension that differentiates a product.
Can be positively related to market share
Product line Correct Answer - a group of closely related product items
Product mix Correct Answer - all products that a company sells
Product mix width Correct Answer - number of different product lines
the company carries
Product mix depth Correct Answer - the number of product items in a
product line
Product consistency Correct Answer - The extent to which the different
product lines are related to each other
How to use products to increase business Correct Answer - Add new
product lines
Add new products to existing lines
Add variants of existing products
, Change product consistency
How to eliminate an underperforming product Correct Answer -
Harvesting: Reduce investments to eliminate when no longer financially
feasible
Line simplification: Trim a line by dropping products/varieties
Total line divestment: Eliminate the entire product line
How does Price affect competition? Correct Answer - in a perfect
competition, companies have no control over prices and theyre determined by
the market
In the real world, perfect competition does not exist, so companies have
control of prices
Prices still determine consumer's product choice to a large extent and price
decisions are crucial to success
Price-takers Correct Answer - Buyers and sellers in a competitive
market that must accept the price that the market determines
Price-makers Correct Answer - companies that have sufficient power in
market and are able to determine price levels that others follow
Profit maximization Correct Answer - prices are set to maximize profits
Satisfactory profits: Correct Answer - prices are set to achieve profits
deemed satisfactory by the management and stockholders
Market Segmentation Correct Answer - The process of dividing
consumers into groups with similar wants and needs
Undifferentiated marketing Correct Answer - A company targets all
consumers with a single offering instead of segmenting
