Chapter 8 & 9 Deck

Question 1

During the product development process of ( ), a product development team is involved in design work to ensure that the product will be safe.

Answer 1

making sure that the product performs and appeals to customers

Question 2

If you’ve concluded that you have a potential product for which people will pay money, your next step is to ( ).

Answer 2

understand your industry

Question 3

Most companies constantly look for ways to make ( ) improvements in existing products by adding features that will broaden their consumer appeal.

Answer 3

incremental

Question 4

All of the following are characteristics of a typical entrepreneurial start-up except:

Answer 4

it focuses on growth rather than profits.

Question 5

Using ( ) analysis allows you to determine the level of sales that you must reach in order to avoid losing money.

Answer 5

breakeven

Question 6

( ) is one of the hardest tasks in business.

Answer 6

forecasting demand for a proposed product

Question 7

The first step in the product development process is to evaluate opportunities and select the best product ideas. What is the second step?

Answer 7

Get feedback to refine the product concept

Question 8

You can protect the rights to your idea with a ( ).

Answer 8

patent

Question 9

An idea turns into a business opportunity when:

Answer 9

it has commercial potential

Question 10

( ) is the most prevalent form of promotion.

Answer 10

Advertising

Question 11

Using a strategy of ( ), a company orders only what it needs, thus cutting the time and cost required to move raw materials into and out of storage.

Answer 11

just-in-time production

Question 12

The key to persuading customers to buy your products is delivering ( ).

Answer 12

value

Question 13

When she focuses on the flow that begins with the purchase of raw materials and culminates in the sale of a product to end-users, Bridgett Hammerschmidt is managing her company’s ( ).

Answer 13

supply chain

Question 14

A(n) ( ) is a wholesaler or retailer who helps move products from their original sources to end-users.

Answer 14

intermediary

Question 15

( ) pricing bases the selling price of a product on its cost plus a reasonable profit.

Answer 15

Cost-based

Question 16

The customer value triad is based on all of the following:

Answer 16

1. quality
2. service
3. price

Question 17

Your ( ) market consists of a specific group of consumers who are interested in your product, have access to it, and possess the means to buy it.

Answer 17

target

Question 18

The ( ) market includes buyers who want a product for use in making other products.

Answer 18

industrial

Question 19

A ( ) is something that can be marketed to customers because it provides them with a benefit and satisfies a need.

Answer 19

product

Question 20

A ( ) is an invention that has yet to exist in the market.

Answer 20

new-to-the-market product

Question 21

A ( ) is a good or service that is new to the company but has been sold by a competitor in the past.

Answer 21

new-to-the-company product

Question 22

An ( ) is an enhancement of a product already on the market—for example, a change of ingredients and packaging for Mike & Ike’s.

Answer 22

improvement in an existing product

Question 23

An ( ) is a new product developed as a variation of an already existing product—for example, Peeps chocolate eggs.

Answer 23

extension to an existing product line

Question 24

Products provide customers with four types of utility or benefit:

Answer 24

1. Time utility
2. Place utility
3. Ownership utility
4. Form utility

Question 25

What is a market segment?

Answer 25

Groups of potential customers with common characteristics that influence their buying decisions.

Question 26

Within this market segment, you might want to subdivide further and find a ( ), an unmet need.

Answer 26

niche

Question 27

( ) are when the total cost doesn’t change as the quantity of goods sold changes

Answer 27

fixed costs

Question 28

These are costs that vary, in total, as the quantity of goods sold changes but that stay constant on a per-unit basis.

Answer 28

variable costs

Question 29

( ) is the excess revenue per unit over the variable cost per unit.

Answer 29

Contribution margin per unit

Question 30

The ( ) is calculated with this formula: fixed costs divided by contribution margin per unit (selling price per unit less variable cost per unit).

Answer 30

breakeven point in units

Question 31

A ( ) is a physical model of the product.

Answer 31

prototype

Question 32

The ( ) is during which employees are trained in the production process.

Answer 32

ramp-up stage

Question 33

This basic philosophy—satisfying customer needs while meeting organizational goals—is called the ( ).

Answer 33

marketing concept

Question 34

A marketing strategy is a plan for performing two tasks which are:

Answer 34

1. Selecting a target market | 2. Developing your marketing mix

Question 35

A ( ) means implementing strategies for creating, pricing, promoting, and distributing products that satisfy customers

Answer 35

marketing mix

Question 36

The ( ) market includes buyers who want the product for personal use.

Answer 36

consumer

Question 37

The four Ps of the marketing mix are:

Answer 37

1. Product 2. Price 3. Place 4. Promotion

Question 38

To protect a brand name, the company takes out a ( ) by registering it with the U.S. Patent and Trademark Office.

Answer 38

trademark

Question 39

With ( ), the maker sells a product to a retailer who resells it under its own name.

Answer 39

private branding

Question 40

Under ( ), a no-brand product contains no identification except for a description of the contents.

Answer 40

general branding

Question 41

Using ( ), a company sells products under its own brand names.

Answer 41

manufacture branding

Question 42

When consumers have a favorable experience with a product, it builds ( ). If consumers are loyal to it over time, it enjoys ( ).

Answer 42

brand equity/brand loyalty

Question 43

( ) —the container holding the product—can influence consumers’ decisions to buy products or not buy them.

Answer 43

packaging

Question 44

( ) —the information on the packaging—identifies the product. It provides information on the contents, the manufacturer, the place where it was made, and any risks associated with its use.

Answer 44

labeling

Question 45

With a new product, a company might consider the ( ) —starting off with the highest price that keenly interested customers are willing to pay. This approach yields early profits but invites competition.

Answer 45

skimming approach

Question 46

Using a ( ), marketers begin by charging a low price, both to keep out competition and to grab as much market share as possible.

Answer 46

penetration approach

Question 47

With ( ), marketers set the price that they think consumers will pay.

Answer 47

demand-based pricing

Question 48

Using ( ), they figure out how much consumers are willing to pay and then subtract a reasonable profit from this price to determine the amount that can be spent to make the product.

Answer 48

target costing

Question 49

Companies use ( ) to capitalize on the common association of high price and quality, setting an artificially high price to substantiate the impression of high quality.

Answer 49

prestige pricing

Question 50

With ( ), companies set prices at such figures as $9.99 (an odd amount), counting on the common impression that it sounds cheaper than $10 (an even amount).

Answer 50

odd-even pricing

Question 51

( ) entails all activities involved in getting the right quantity of a product to customers at the right time and at a reasonable cost.

Answer 51

distribution

Question 52

( ) buy goods from producers and sell them to consumers, whether in stores, by phone, through direct mailings, or over the Internet.

Answer 52

retailers

Question 53

( ) (or distributors) buy goods from suppliers and sell them to businesses that will resell or use them.

Answer 53

wholesalers

Question 54

( ) —the process of getting products from producers to customers—

Answer 54

physical distribution

Question 55

( ) is the entire range of activities involved in producing and distributing products, from purchasing raw materials, transforming raw materials into finished goods, storing finished goods, and distributing them to customers.

Answer 55

supply chain

Question 56

( ) a marketing strategy that focuses on using information about current customers to nurture and maintain strong relationships with them.

Answer 56

customer-relationship management

Question 57

Companies that ask customers if they can contact them are engaged in ( ) marketing.

Answer 57

permission

Question 58

( ) marketing is the practice of sending out messages to a vast audience of anonymous people.

Answer 58

mass

Question 59

TV advertising is a form of ( ) marketing that interrupts people to get their attention (with the hope they will listen to the ad).

Answer 59

interruption

Question 60

( ) marketing is the practice of including social media as part of a company’s marketing program.

Answer 60

social media

Question 61

The stages of development and decline that products go through over their lives is called the ( ).

Answer 61

product life cycle

Question 62

Four stages of product life cycle

Answer 62

1. Introduction 2. Growth 3. Maturity 4. Decline