Marketing Final Exam Practice Questions! Trivia

Convenience products are items that consumers purchase frequently and with ease, requiring minimal shopping effort. These products are often readily available and do not require much consideration or comparison with alternatives. They are low-cost items that consumers can easily find and purchase without much effort or time investment.

Proctor and Gamble repositioned its Old Spice antiperspirant brand from a deodorant your grandfather might use to a strong, hip antiperspirant through commercials that showed the target market of 18 to 30 year old men advocating its use and through a money-back guarantee. By doing so, P&G aimed to reach a new market. This strategy allowed them to target a younger demographic and expand their customer base beyond the older generation. The commercials and money-back guarantee helped to attract the attention and trust of the new market segment, ultimately enabling P&G to successfully reach and appeal to this previously untapped market.

In developing an advertising program, the first decision is to identify the target audience. This is because understanding who the target audience is will help determine the most effective strategies and messages to reach and engage them. By identifying the target audience, advertisers can tailor their advertising efforts to resonate with the specific needs, interests, and preferences of that audience, ultimately increasing the chances of a successful advertising campaign.

The term "reach" refers to the number of different individuals or households that are exposed to an advertisement. It measures the total audience size and indicates the potential size of the target market that the ad reaches. Reach is an important metric in advertising as it helps determine the overall effectiveness and potential impact of an ad campaign.

Product advertisements are a type of advertisement that focuses on selling a product or service. They can take three forms: pioneering (or informational), competitive (or persuasive), and reminder. Pioneering advertisements aim to inform and educate consumers about a new product or service. Competitive advertisements aim to persuade consumers that their product or service is better than competitors. Reminder advertisements aim to remind consumers about a product or service they may have forgotten about. Therefore, the correct answer is product advertisements.

A good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers' needs and is received in exchange for money or something else of value is referred to as a product.

A flexible-price policy refers to setting different prices for products and services depending on individual buyers and purchase situations. This means that the company adjusts the prices based on factors such as customer preferences, demand, competition, and market conditions. By doing so, the company can maximize its profits and cater to the unique needs and willingness to pay of different customers. This approach allows for pricing strategies that are more targeted and adaptable, ultimately leading to better customer satisfaction and profitability.

Direct marketing channels refer to the method of selling products or services directly to the customers without involving any intermediaries. In the case of mail order selling, catalog sales, and telemarketing, the companies directly reach out to the customers and promote their products or services. This allows them to have direct control over the marketing and sales process, enabling them to build a direct relationship with their customers. Hence, these examples fall under the category of direct marketing channels.

After product ideas have undergone business analysis, they move on to the development stage. This is the phase where the product concept is transformed into a tangible product prototype or design. Development involves activities such as engineering, manufacturing, and testing to ensure that the product meets the desired specifications and quality standards. Once the product is successfully developed, it can then proceed to the next stages of market testing, screening and evaluation, and ultimately, commercialization.

Xerox was using a skimming pricing strategy to help recover the cost of its research and development. Skimming pricing involves setting a high initial price for a new product in order to maximize profits from the early adopters who are willing to pay a premium. This strategy allows the company to recoup its investment quickly before gradually lowering the price to attract a wider customer base. Given that the portable fax machine was a groundbreaking innovation at the time, it makes sense for Xerox to adopt this strategy to capitalize on the initial demand and generate significant revenue.

The ratio of perceived benefits to price is referred to as value. This means that value is determined by the perceived benefits a consumer receives from a product or service in relation to its price. If the perceived benefits outweigh the price, then the value is considered high. On the other hand, if the price outweighs the perceived benefits, then the value is considered low. Therefore, price plays a crucial role in determining the value of a product or service.

Product-line pricing refers to setting the price of a line of products at a number of different specific pricing points. This means that the prices of all items in a product line are strategically set to cover the total cost and generate a profit for the entire line, rather than focusing on each individual item. This allows for flexibility in pricing based on factors such as product features, target market, and competition. By setting different pricing points, businesses can cater to different customer segments and maximize profitability across the product line.

Vertical conflict refers to conflict that occurs between two different levels in a marketing channel. This means that the conflict arises between members of the channel who are at different levels of the distribution process. These levels can include manufacturers, wholesalers, retailers, and other intermediaries involved in getting the product from the producer to the end consumer. Vertical conflict often arises due to disagreements over pricing, distribution territories, promotional efforts, or other aspects of the channel. Resolving vertical conflict requires effective communication, negotiation, and coordination between the different levels of the marketing channel.

When consumers consider all types of household cleaners, they are considering the variety or range of household cleaners available in the market, which is referred to as the "product class." On the other hand, when consumers limit their choice to only household cleaners that come in spray bottles, they are considering a specific type or form of household cleaners, which is referred to as the "product form."

Creating product assortments from several sources to serve customers would be an example of a logistical function. This is because the logistical function involves the management and coordination of the movement of goods and materials from multiple sources to the customers. In this case, the process of creating product assortments involves sourcing products from different suppliers or sources and then organizing and delivering them to the customers efficiently.

An oligopoly is a market structure where there are a few sellers who dominate the market and are aware of each other's prices. In this situation, the actions of one seller can have a significant impact on the others. This leads to interdependence among the sellers and a high level of competition. Therefore, the given answer "oligopoly" accurately describes the competitive market situation where few sellers are sensitive to each other's prices.

Wholesalers are intermediaries who play a crucial role in the distribution process. They perform various functions such as selling products to retailers, maintaining inventories, extending credit to buyers, and ensuring efficient delivery of goods. Unlike retailers who sell directly to consumers, wholesalers typically operate in the business-to-business (B2B) market, supplying goods to retailers or other businesses. Therefore, the correct answer is "wholesalers."

Standard markup pricing is a cost-oriented pricing method because it involves adding a predetermined percentage or amount to the cost of a product to determine its selling price. This method ensures that the selling price covers the cost of production and includes a profit margin. It is commonly used in retail and wholesale businesses to determine the price at which products should be sold to customers.

The given formula for the price equation states that the final price is determined by subtracting incentives and allowances from the list price and then adding profits, commissions, trade-ins, extra fees, and taxes. Therefore, "extra fees" is a valid component of the formula and should be included in the calculation of the final price.

Creative marketers engage in value-pricing, which means they focus on increasing the perceived value of their products or services while maintaining or decreasing the price. By doing so, they aim to attract customers by offering a better value proposition compared to their competitors. This strategy allows them to differentiate themselves in the market and potentially increase market share. By maintaining or decreasing the price, they also ensure that their offerings remain affordable and accessible to a wider range of customers, further enhancing their competitiveness.

Loss-leader pricing is a strategy used by retailers to sell products at a lower price than their normal prices, and sometimes even below cost, in order to attract attention and encourage more people to visit their store. This tactic aims to entice customers with the discounted item, with the hope that they will also purchase other products at regular prices, ultimately increasing overall sales and store traffic.

Test marketing involves offering a product for sale on a limited basis in a defined area. This means that the product is not available everywhere and is only sold in specific locations or regions. This allows the company to gather feedback and evaluate the market potential of the product before a full-scale launch. By limiting the availability of the product, the company can control costs and assess the demand and acceptance of the product in a smaller market segment. This approach helps in minimizing risks and making informed decisions about the product's viability and potential success in the broader market.