Principles of Marketing Exam 3 Review

A(n) ________ is considered a marketing intermediary.

Tries to find the price at which the firm will break even or make target return it is seeking.

Introduces and tests the product and its marketing program prior to full introduction.

A store sells 3 different sizes of TVs at 3 different prices. What type of pricing is this?

A _________ is a detailed version of the new product idea stated in meaningful consumer terms.

Demand and price are typically inversely related.

Moving products and materials from suppliers to the factory is known as ________ logistics.

Stage of new product development when product concepts are presented to target consumers.

A horizontal marketing system can develop between a company and its competitor.

The first step in the new product development process.

This is a basic and distinctive mode of expression.

Inviting broad communities of people (e.g., customers) into the new product innovation process.

The ________________ stage is the final step in the new product development process.

Demand curve shows the # of units the market will buy in a given time period at similar prices.

Under __________________, the market consists of only a few large sellers.

A greater number of levels in a supply chain means less control and greater channel complexity.

The maturity stage of the product life cycle is characterized by a slowdown in sales growth.

Disintermediation occurs when producers cut out intermediaries & sell directly to final buyers.

An allowance is a reduction in price on purchases based on quantity bought or prompt payment.

PLC stage when sales may plunge to zero or drop to a low level where they continue for years.

Pricing strategies usually remain the same as a product passes through its life cycle.

In this PLC stage, firms face the trade-off between high market share and high current profit.

Combining two or more systems of transportation to move products.

An indirect marketing channel contains one or more intermediary levels.

Overuse of promotional pricing can erode a brand's value in the eyes of customers.

Which of the following is not one of the external factors impacting pricing?

The market consists of many buyers and sellers trading in a uniform commodity (e.g., copper).

__________________ are characterized by their unusually high sales and rapid decline.

Promotional allowances reward dealers for participating in advertising & sales-support programs

A _______ combines successive stages of production and distribution under single ownership.

Market skimming pricing sets a low price for a new product to attract a large market share.

Supply chain management: managing upstream and downstream value-added flows of materials.

The product life cycle (PLC) can only be applied to a product class.

Charging different prices for matinees is which type of segmented pricing.

In a vertical marketing system, producers, wholesalers, and retailers each act independently.

Distribution centers move goods rather than just store them.

This factor sets the lower limit for a product's pricing.

> 80 % of McDonald's restaurants are owned and operated by franchisees. This is which system?

Stocking products in as many outlets as possible.

Rent, electricity, and executive salaries that do not vary with production or sales level.

Vertical conflict is conflict between different levels of the same channel.

Charging higher prices on an everyday basis but running promotions to lower prices temporarily.

When demand hardly changes with a small change in the price of a product.

Providing extra amenities to differentiate and support high-priced products.

Getting the right product to the right customer in the right place at the right time profitably

Establishing prices for razor blades that must be used with a razor blade system is known what?

Adjusting prices continually to meet the characteristics of individual customers & situations.

When a single firm sets up 2 or more marketing channels to reach one or more customer segments.

The moral of the PLC is that firms must continually innovate; otherwise, they risk extinction.

In this PLC stage, promotional spending is high in an attempt to create consumer awareness.