MARKETING REVIEWER ANSWER KEY

1. It is the systematic search for new product ideas (idea

generation)
2. Spot the good ones and drop the poor ones as soon as possible
(idea screening)
3. This process is done by introducing the new product into the
market (commercialization)
4. It is the review of the sales, costs, and profit projections for a
new product to find out whether these factors satisfy the
companys objectives (business analysis)
5. Designing an initial marketing strategy for introducing the
product to the market (marketing strategy development)
6. Developing the product concept into a physical product (product
development)
7. It gives the management information needed to make a final
decision about whether to launch the product (test marketing)
8. Product life cycle stages (5) (product development, introduction,
growth, maturity, decline)
9. New product development process (8) (idea generation, idea
screening, concept development & testing, marketing strategy
development, business analysis, product development, test
marketing, commercialization)
10.
This factor exerts the broadest and deepest influence on
consumer behavior (cultural factors)
11.
Age and life cycle stage, occupation, lifestyle, personality
and self concept (personal factors)
12.
Motivation, perception, learning, beliefs and attitudes
(psychological factors)
13.
Groups, family, role and status (social factors)
14.
Two or more people who interact to accomplish individual
or mutual goals (groups)
15.
The most important consumer buying organization in
society and it has been researched extensively (family)
16.
Consists of the activities people are expected to perform
according to the persons around them (role)
17.
Each role carries a status reflecting the general esteem
given to it by society (Status)
18.
The product enters this stage in which the sales and profit
decrease (decline stage)
19.
This stage starts when the new product is first launched
(introduction stage)
20.
This stage offers rapid sales growth and increasing profits
(growth stage)
21.
It starts when the company finds and develops a new
product (product development stage)
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MARKETING REVIEWER ANSWER KEY

22.
It is when sales growth slows down and profits stabilize
(maturity stage)
23.
During this stage, sales are zero and the companys
investment costs mount (product development stage)
24.
The company seeks strategies and programs to extend this
stage by renewing sales growth, including product and marketing
mix modification (maturity stage)
25.
During this stage, the company tries to improve the
product, enter new market segments and distribution channels
and reduce its prices slightly (growth stage)
26.
Profits are negative and low because of the low sales and
high distribution and promotion expenses (introduction stage)
27.
The companys task in this stage is to recognize the ---,
and to decide whether the product should be maintained,
harvested or dropped. (decline stage)
28.
Consumer buying behavior in situation characterized by
high consumer involvement in a purchase and significant
perceived differences among brands (complex buying behavior)
29.
Consumer buying behavior in situation characterized by
low consumer involvement but significant perceived brand
differences (variety seeking buying behavior)
30.
Consumer buying behavior in situation characterized by
low consumer involvement and few significant perceived brand
differences (habitual buying behavior)
31.
Consumer buying behavior in situation characterized by
high involvement but few perceived differences among brands
(dissonance reducing buying behavior)
32.
The person who consumes or uses a product or service
(user)
33.
The person who makes an actual purchase (buyer)
34.
A person whose views or advice influences the buying
decision (influencer)
35.
The person who ultimately makes a buying decision or any
part of it, whether to buy, what to buy, how to buy or where to
buy (decider)
36.
The person who first suggests or thinks of the idea of
buying a particular product or service (initiator)
37.
Explains the companys future and what it intends to be
(vision)
38.
Is a statement of the organizations purpose, what it wants
to accomplish n the larger environment (mission)
39.
Looks at the five forces of an industry structure (industry
analysis)
40.
Looks at two competitors strategic focus factors
(competitors analysis)
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MARKETING REVIEWER ANSWER KEY

41.
Identify the limit number of controllable as well as
uncontrollable functions, activities, factors or even bottlenecks
that must be managed well to outperform competition (Key
factors for success)
42.
Positive factors which will help the company achieve its key
result areas (strengths)
43.
Negative situations which may dampen the companys
position in the industry (threats)
44.
Positive situations which enhance the companys position
in the industry (opportunities)
45.
Negative factors which may slow down the attainment of
the firms key result areas (weaknesses)
46.
It is a fairly homogenous group of consumers to whom a
company wishes to appeal (target market)
47.
It is the set of controllable and interrelated variables
composed of product, placement, price and promotions that the
company assemble to satisfy a target group (marketing mix)
48.
3Cs of marketing (company, customer, competition)
49.
to competently satisfy the needs, wants and expectations
of target customers (customer)
50.
to ensure corporate health and profit (company)
51.
to outperform competition at all times (competition)
52.
is the process of dividing the population of possible
customers into distinct groups (market segmentation)
53.
consists of set of buyers sharing common needs or
characteristics that the company decides to serve (market
targeting)
54.
dependent on the number of qualified customers and
frequency of purchase (market size)
55.
an increase in demand for a particular product or service
over time (market growth)
56.
2 main criteria for market attractiveness (market size,
market growth)
57.
Has fewer buyers who order in large quantities, has more
levels of decision markers and whose demand once derives is
inelastic and fluctuating according to the business of their
clientele (industrial segmentation)
58.
Enables marketers to match their marketing effort with
regards to consumer behavior (behavioral segmentation)
59.
It divides the market into different groups based on pro,
lifestyle or personality characteristics
60.
Qualified customers within a market (3) (need, pay,
authority and availability)
61.
Deals with questions such as who you are and how much
you earn (demographic segmentation)
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MARKETING REVIEWER ANSWER KEY

62.
Answers the question how many percent of the market
would need the product? (need)
63.
3 market coverage strategies (differentiated,
undifferentiated, concentrated marketing)
64.
Consumer need or interest is not enough. There must be
enough purchasing power for the consumer to be able to pay for
the product (pay)
65.
Can also be described as identifying target market after
detailed research, and developing specific marketing campaigns
focused at it (market targeting)
66.
The firm might decide to ignore market segment
differences and go after the whole market with one market offer
(undifferentiated marketing)
67.
Instead of going after a small share of a large market, the
firm goes after a large share of one or few submarkets
(concentrated marketing)
68.
The firm may choose two or more segments and design a
separate product for each (differentiated marketing)
69.
The set of basic values, perceptions, wants and behaviors
learned by a member of society from family and other important
institutions
70.
Two or more people who interact to accomplish individual
or mutual goals
71.
Relatively permanent and ordered divisions in a society
whose members share similar values, interests and behaviors
72.
A group of people with shared value systems based on
common life experiences and situations which includes
nationalities, religions, racial groups and geographic regions
(culture)
73.
Consists of the activities people are expected to perform
according to the persons around them (role)
74.
Each role carries a _______ reflecting the general esteem
given to it by society (status)
75.
People change the goods and services they buy over their
lifetimes (age and life cycle stage)
76.
A persons ______ affects the goods and services bought
(occupation)
77.
A persons pattern of living as expressed by his or her
activities (lifestyle)
78.
Is a persons distinguishing psychological characteristics
that lead to relatively consistent and lasting responses to his or
her environment (personality)
79.
The act or process of motivating (motivation)
80.
Is a mental picture, generally of a kind that is quite
resistant to change, that depicts not only details that are
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MARKETING REVIEWER ANSWER KEY

potentially available to objective investigation by others (self
concept)
81.
Refers to the course that a products sales profits take over
its lifetime (product life cycle)
82.
Management want to earn _____ to cover all the effort and
risk that went into launching a new product (profit)
83.
In the introduction stage, the marketing objective is
_________(building product awareness)
84.
Is the kind of pricing strategy used in the introduction
stage (cost plus)
85.
Is the kind of distribution strategy used in the growth stage
of product life cycle (intensive distribution)
86.
Are types of customers found in the decline stage of the
product life cycle (laggards)
87.
___________ brand switching is a kind of sales promotion
strategy used during the maturity stage of the product life cycle
(increase promotion to encourage)
88.
Is a type of distribution strategy used during the
introduction stage (selective distribution)
89.
________ is the department that needs to know consumer
buying roles (marketing department)
90.
The pricing strategy that involves producing a high quality
product and charging the highest price is called (premium pricing
strategy)
91.
The pricing strategy which involves setting a low price for a
new product in order to attract a large number of buyers and
large market share (market penetration pricing)
92.
The pricing strategy which deals with setting a high price
for a new product to remove maximum revenues layer by layer
from the segments who are willing to pay a high price (market
skimming pricing)
93.
Includes producing a lower quality product and charging a
low price (economy pricing strategy)
94.
Involves producing a lower quality product but demanding
a high price (overcharging strategy)
95.
Involves setting the price steps between the various
products based on cost differences between the product groups,
customer evaluations of different features and competitors price
(product line pricing)
96.
Deals with pricing of accessory products along with a main
product (optional pricing strategy)
97.
Refers to setting a price for products that must be used
along with a main product (captive product pricing)
98.
Lumber mill selling bark chips and saw dust used as
decorations for homes is an example of _______ (by-product
pricing)
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MARKETING REVIEWER ANSWER KEY

99.
Is a type of pricing strategy that promotes the sales of
products consumers might not otherwise buy (product bundling
pricing)
100.
Is a group of products that are closely related because they
function in a similar manner, are sold to the same customer
groups, or are marketed through the same types of outlets
(product line)
101.
The product line is _______ if the manager can increase
profits by adding items (too short)
102.
Occurs when a company lengthens its product line beyond
its current range (product line stretching)
103.
One reason why a company _________ is that image have
first entered the upper end to establish a quality image and
intend to stretch downward later (stretches downward)
104.
Companies that focus on ________ generally carry shorter
lines consisting of selected items (high short term profitability)
105.
One reason for _______ is to try to satisfy dealers and use
excess capacity (product line filling)
106.
A product line can be ______ by adding more items within
the present range of the line (lengthened)
107.
Is a type of discount offered by the seller to trade channel
members who perform certain tasks, like selling, storing and
record keeping (functional discount)
108.
In _________, the company sells a product or service at two
or more prices, even though the differences in price is not based
on differences in costs (segmented pricing)
109.
Means temporarily pricing products below the list price and
sometimes even below cost to increase short run sales
(promotional pricing)
110.
In _________, a company must also decide how to price its
products to customers in different parts of the country or world
(geographical pricing)
111.
Is a geographic pricing strategy in which the company
charges the same price plus freight to all customers, regardless
of their location (uniform delivered pricing)
112.
Is a major factor why price increases (cost inflation)
113.
Are caused by excess capacity and falling market share in
the face of strong competition (initial price cuts)
114.
Are most likely to react when the number of firms involved
is small, when the product is uniform and when the buyers are
well informed (competitors)
115.
The goods and service combination the company offers to
the target market (product)
116.
Amount of money customers have to pay to obtain the
product (price)
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MARKETING REVIEWER ANSWER KEY

117.
Company activities that make the product available to
target consumers (place)
118.
Activities that communicate the merits of the product and
persuade target consumers to buy it (promotion)
119.
Would be the logical marketing solution when there is high
availability of the product but low awareness level (advertising)
120.
Will result to low initial trial rate (pricing problem)
121.
It is the benefit of the product that makes it valuable to you
(core product)
122.
Additional consumer services and benefits are built around
the core and actual product (augmented product)
123.
It is the tangible, physical product which you can get some
use out of it (actual product)
124.
These products bought by final consumers for personal
consumption (consumer products)
125.
Consumer usually buys frequently, immediately and with a
minimum of comparison and buying effort (convenience
products)
126.
Products that are less frequently purchased by the
consumer. Time and effort spent as well as comparing products
(shopping products)
127.
Consumer products with unique characteristics or brand
identification. Buyers of these products are willing to make
special purchase effort (specialty products)
128.
Consumer products that the consumer either does not
know about or knows about but does not normally think of
buying (unsought products)
129.
Those products purchased for further processing or for use
in conducting a business (industrial products)
130.
These are industrial products that become part of the
buyers product through further processing or as components
(materials and parts)
131.
Industrial products that do not enter the finished product at
all (supplies and service)
132.
Industrial products that aid in the buyers production or
operations (capital items)
133.
Is a name, term, sign, symbol or design or a combination of
them intended to identify the goods or services (brand)
134.
Products overall durability, reliability, precision, ease of
operation and repair (product quality)
135.
Tools for differentiating the companys product from
competitors products (product features)
136.
Anything that can be offered to a market for attention,
acquisition, use or consumption that might satisfy a want or need
(product)
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MARKETING REVIEWER ANSWER KEY

137.
Is an intangible asset that depends on associations made
by the company (brand equity)
138.
The brand should carry a consistent image over time
(fortification)
139.
Make the brand easy to remember and develop repeat
usage (elaboration)
140.
Introduce a quality product with the strategy of using the
brand as a platform from which to launch future products
(introduction)
141.
Products immediate container (primary package)
142.
Company introduces additional items in a given product
category under the same brand name (line extension)
143.
Seller develops two or more brands in the same product
category (multi branding)
144.
Creating new brand name for new product category (new
brands)
145.
The material that protects the primary package and that is
thrown away when the product is about to be used (secondary
package)
146.
Packaging necessary to store, identify and ship the product
(shipping package)
147.
The activities of designing and producing the container or
wrapper for a product (designing)
148.
May be a simple tag attached to the product or a complex
graphic that is part of the package (labeling)
149.
Will create customer awareness and will persuade
customer to inquire about the availability of the product which in
turn will facilitate distribution (increased level of advertising)
150.
To satisfy the needs and wants of the target market,
function (product)
151.
To make the product affordable to the target market and
reflect the value of the benefits provided (price)
152.
To make the product conveniently available to the target
market consistent with their purchase patterns (place)
153.
To build and improve consumer demand (promotion)
154.
May indicate a product or service problem (high trial rate
but with low repeat purchase)
155.
The party sending the message to another party (sender)
156.
Part of the receivers response communicated back to the
sender (feedback)
157.
The reactions of the receiver after being exposed to the
message (response)
158.
The party receiving the message sent by another party
(receiver)
159.
The process by which the receiver assigns meaning to the
symbol encoded by the sender (decoding)
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MARKETING REVIEWER ANSWER KEY

160.
The communication channels through with which the
message is sent to the receiver by the sender (media)
161.
The set of symbols that the sender transmits (message)
162.
The process of putting thought into symbolic form
(encoding)
163.
Is any paid form of non personal presentation and
promotion of ideas, goods or services paid by an identified
sponsor (advertising)
164.
presents information and/or persuasive appeals about
products and services (product advertisement)
165.
presents messages about a product class to stimulate
primary demands (pioneer advertisement)
166.
presents brand oriented messages designed to stimulate
selective demand (competitive advertisement)
167.
makes direct comparisons between advertised and
competing brand (comparative advertisement)
168.
seeks to stimulate reseller-demand through messages in
trade media (trade advertisement)
169.
more than one party shares in the cost of advertising
(cooperative advertisement)
170.
a form of promotion, not paid for, and whose sponsor is not
identified (publicity)
171.
it is the degree to which the communicator has the
authority to back the claim (expertise)
172.
it is related to how objective and honest the source
appears to be (trustworthiness)
173.
it is how attractive the source is to the audience
(likeability)
174.
setting the promotion budget at the level management
thinks the company can afford (affordable method)
175.
setting the promotion budget at a certain percentage of
current or forecasted sales or as a percentage of the sales price
(percentage of sales method)
176.
setting the promotion budget to match competitors'
outlays (competitive-parity method)
177.
company set its promotion budget based on what it wants
to accomplish with promotion (objective-and-task method)
178.
groups which have a direct influence and to which a person
belongs (membership groups)
179.
with whom there is regular but informal interaction such as
family, friends, neighbours and coo-workers (primary group)
180.
which are more formal and have less regular interaction
this includes organizations like religious groups, professional
association and trade unions (secondary group)
181.
People w/ the highest incomes and so many resources that
they can indulged in any or all self orientation (Actualizers)
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MARKETING REVIEWER ANSWER KEY

182.
Successful, work-oriented people who get their satisfaction
from their jobs and their families (Achievers)
183.
People with values similar to those of achievers, but fewer
economic, social and psychological resources (Strivers)
184.
mature, satisfied, comfortable, reflective people who value
order, knowledge and responsibility (Fulfilled)
185.
Avid consumers who spend on clothes (Experiencers)
186.
Conservative and conventional and their beliefs are based
on their family, religion , community or nation (Believers)
187.
People who like to affect their environment, but in more
practical ways. They are focused on the family, work and
physical recreation and have little interest in the broader world.
(Makers)
188.
People w/ lowest incomes and too few resources to be
included in any consumer orientation. with their limited means,
they tend to be brand loyal consumer (Strugglers)
189.
Is a type of type of advertisement seeks to build goodwill
for an organization (institutional advertisement)
190.
Is a type of industrial channel which allows manufacturers
to use retailers to sell their products (manufacturer assigning
industrial distributor)
191.
Is used to set the total budget for advertising which sets its
budget based on the companys promotion goals (objective and
task method)
192.
Is a type of advertisement presents brand oriented
messages designed to stimulated selective demand (competitive
advertisement)
193.
Is the advertising budget method wherein the company
sets the budget at the level management thinks the company
can pay for it (affordable method)
194.
Refers to how the message is said logically (message
structure)
195.
The process of putting ideas and information together into
a symbolic form (encoding)
196.
A marketing communicator starts with a clear _____ in mind
(target audience)
197.
Refers to the advertiseability factor that highlights features
unique to the product (differential advantage)
198.
Some products have certain qualities that are not apparent
during inspection (Hidden qualities)
199.
In the selection channel process, the ______ is the last step
(Selection of channel members)
200.
Are channels through which 2 or more people have a face
to face communication (Personal communication channels)
201.
Pertains to the manufacturers organizational set-up
(Nature of the company)
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MARKETING REVIEWER ANSWER KEY

202.
Finance the process of moving goods and services to the
consumer (Channels of distribution)
203.
In the communication process, the communications
channels are called __ (media)
204.
Allows the producer to overcome negative images about
the goods they offer (publicity)
205.
In the channel selection process, after the distributor
determined the location of the potential customers, the next step
is to (list the channel alternatives)
206.
encourage or stimulate consumers to patronize a specific
retailer or to try a new product (consumer sales promotion)
207.
stimulates wholesalers and retailers to carry a firm's
product and sell it aggressively (trade sales promotion)

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