Product Line Pricing and Distribution Strategies, Exams of Marketing

Download Product Line Pricing and Distribution Strategies and more Exams Marketing in PDF only on Docsity! WVU Marketing 330 Exam 3 Questions with Verified Answers. Pricing strategies tend to change and evolve as the average product passes through its life cycle. - Correct answer True For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. - Correct answer True Go Zone plans to introduce four tablet models over the next year. These models range from basic readers ($99) to more sophisticated tablets at $399. The more features a model has the more expensive it is. What pricing strategy is this? - Correct answer Product line pricing Which of the following is true of product line pricing? - Correct answer The price steps take cost differences between products in the line into account. Which of the following is true of optional product pricing? - Correct answer It involves pricing products that can be added to the base product. When amusement parks charge customers for admission and later for food and beverages, they are following a ___________ pricing strategy. - Correct answer Two- part Using _________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive. - Correct answer by- product Which of the following product mix pricing strategies involves pricing multiple products to be sold together? - Correct answer Product bundle pricing Solar tanning salon prices tanning sessions at $25 per visit. It also offers seasonal passes for $175 that allow the customer to visit the salon multiple times in a year. This is an example of a ______ - Correct answer discount When theaters vary seat prices due to audience preferences for seats in coveted rows, they use ______ pricing - Correct answer location-based Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company's _________ - Correct answer supply chain The term supply chain is considered limited because it _____ - Correct answer suggests that planning begins with raw materials and factory capacity. A ____ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. - Correct answer marketing channel In a _____ channel the same member both produces and distributes a product or service to consumers. - Correct answer direct A company's channel decisions directly affect the prices of its products. - Correct answer True Managers at the imperial hotel complained that the chain's overall image was hurt because the dallas location was overcharging guests and providing poor service. The imperial hotel was experiencing _____ conflict. - Correct answer horizontal Which of the following is true of conventional distribution channels? - Correct answer Channel members seek to maximize their own profits. A ______ VMS integrates successive stages of production and distribution under single ownership. - Correct answer corporate When McDonalds offers its products inside of a Walmart store, it is using a ______ - Correct answer horizontal marketing system Which of the following is a disadvantage of adding new channels in a multichannel distribution system? - Correct answer decreasing control over the system ________ includes all the activities involved in selling products or services directly to final consumers for their personal, non business use. - Correct answer retailing Retailers are classified on characteristics including amount of service they offer, the breadth and depth of their product lines, how they are organized and _______ - Correct answer the relative prices they charge. ______ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money. - Correct answer self-service Which type of retailer is most likely to require its employees to focus most on assisting customers as they shop? - Correct answer full-service retailer Today, _____ are flourishing due to the increased use of market segmentation and market targeting. - Correct answer specialty stores Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and System approach - Correct answer All components of logistics are interrelated and can thus be seen as a system Total Cost Approach - Correct answer Views the entire costs of the system, rather than trying to minimize the cost of each component What are the six major components of a logistics system? - Correct answer Transportation, inventory control, warehousing, material handling, order processing, packaging What is cross docking? - Correct answer a practice in logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between What is order cycle time - Correct answer Time of order placement to time of order delivery Why is product availability a strategic decision? - Correct answer The channel manager must ensure that the product is readily available at all channel levels, and when you promote a product, you need to have it on the shelves already Why do manufacturers have to exert a lot of effort to gain channel member acceptance of new products? - Correct answer Channel members are hyper-skeptical, even cynical of new products. What are important product traits that channel members look for? - Correct answer Will it sit well? Is it profitable? Is it easy to stock and display? Does it fit/complement my product mix? Trouble-free products What are the four major stages in the Product Life Cycle (PLC)? - Correct answer Introduction, Growth, Maturity, Decline What are the main channel management tasks in introduction? - Correct answer Assure sufficient number of channel members for adequate market coverage, assure adequate supply on channel members' shelves What are the main channel management tasks in growth? - Correct answer Assure sufficient channel member inventories for adequate market coverage, monitor the effects of competitive products on channel member support What are the main channel management tasks in maturity? - Correct answer Extra emphasis on motivating channel members to mitigate competitive impact, Investigate possibility for changes in channel structure to extend maturity stage & possibly foster new growth stage What are the main channel management tasks in decline? - Correct answer Phase out marginal channel members, investigate impact of product deletion on channel members At which stage would channel managers most likely consider changing the channel structure? - Correct answer Introduction How are profit margins determined in a channel ? - Correct answer The margins that each channel member receives is essentially the payments they receive for providing a service Gross Margin $ - Correct answer unit selling price - costs of goods sold Gross Margin % - Correct answer Unit selling price - COGS / Unit selling price Markup - Correct answer 100*profit/cost Cost of Goods Sold - Correct answer Beginning inventory + purchases - ending inventory Trade Discount - Correct answer Trade discount rate x list price Forward Buying - Correct answer Sellers buy much more than they can sell in the near term because of spiffs and discounts, but this causes a gridlock in the channel, slowing the distribution process. Gray Market - Correct answer The sale of brand-name products at very low prices by unauthorized distributors or dealers. What is the pull promotion strategy? - Correct answer Manufacturer builds strong consumer demand to force channel members to automatically promote the manufacturer's product What is the push promotion strategy? - Correct answer Manufacturer works with channel members to develop strong and viable promotional support Relationship between Push and Pull strategy? - Correct answer No inherent conflict exists between the push and pull approaches, and they are often used in conjunction with you one another Promotion in pull strategy - Correct answer No promotion flow Promotion in push strategy - Correct answer Manufacturer->Channel Members- >Customers Negotiation in pull strategy - Correct answer Manufacturer <- Channel Members <- Customers Negotiation in push strategy - Correct answer Manufacturer -> Channel Members -> Customers Product in pull strategy - Correct answer Manufacturer -> Channel Members -> Customers Product in push strategy - Correct answer Manufacturer -> Channel Members -> Customers How does promotion strategy work in cooperative advertising? - Correct answer The manufacturer splits the cost of channel members' advertising expenses How does promotion strategy work in displays and selling ads? - Correct answer Point of purchase displays, usually expensive AND must give retailers promotional allowances How does promotion strategy work in In-store-promotion events? - Correct answer Short term events intended to create excitement, expensive and requires a high level of cooperation from the retailer How does promotion strategy work in contests and incentives? - Correct answer Designed to stimulate channel member sales efforts, among the most difficult form of promotion to administer without creating ill will and conflict in the channel How does promotion strategy work in trade shows? - Correct answer Designed to gain wide recognition for the firm's products, especially new products Show new promotional programs Sell to existing and new channel members Enhance the manufacturer's reputation