MKTG 327 - Marketing Principles
Study Guide, Examination #2
Dr. Drea

TERMS TO KNOW

Chapter 11
good
service
consumer product
business product
convenience product
shopping product
specialty product
unsought product
product item
product line
product mix
width of product line
depth of product line
product life cycle and stages
product adoption process and stages

Chapter 13
brand
brand name
brand mark
trademark
trade name
brand loyalty
brand recognition
brand preference
brand insistence
brand equity
manufacturer’s brands
private brands
generic brands
individual branding
family branding
brand-extension branding
co-branding
brand licensing

Chapter 14
service
intangibility
inseparability
perishability
heterogeneity
search qualities
experience qualities
credence qualities
nonprofit marketing
target publics
client publics
general publics
opportunity cost

Chapter 15
distribution
marketing channel
marketing intermediary
supply chain management
dual distribution
strategic channel alliance
intensive distribution
selective distribution
exclusive distribution
vertical channel integration
vertical marketing system
horizontal channel integration

Chapter 16
wholesaling
wholesaler
merchant wholesalers
full-service wholesalers
general merchandise wholesalers
limited-line wholesalers
specialty line wholesalers
rack jobbers
cash and carry wholesalers
drop shippers
agents
brokers
manufacturer’s agents
selling agents
physical distribution
outsourcing
cycle time
order processing
inventory management
materials handling
warehousing
intermodal transportation
freight forwarders

Chapter 17
retailing
retailer
general-merchandise retailer
department stores
discount stores
superstores
supermarkets
warehouse clubs
catalog showrooms
traditional specialty retailers
off-price retailers
category killer
nonstore retailing
direct marketing
franchising
retail positioning
atmospherics
scrambled merchandising
wheel of retailing

Sample Questions, Exam #2, MKTG 327 (Drea)

3. A statement made in class was “among the purposes of marketing intermediaries is to simplify and reduce the number of transactions” between buyers and sellers. Explain what is meant by this statement."

4. Bill Jenkins is the marketing manager for Excalibur Company, which produces a line of very high quality pens. The market for these pens is relatively small - it consists of CEOs and others who place a premium on owning the finest writing instrument made by man. Each pen sells for approximately $200 and comes with a lifetime guarantee by the manufacturer. An advertising campaign in Fortune and Baron’s is being conducted to position this pen as the “ultimate writing experience.” Bill needs to decide on a distribution strategy that would be appropriate for this type of product and would provide leverage for encouraging retailers to devote special attention to his products. What would you recommend?

5. Explain how a promotional strategy for a homogenous shopping product would likely differ in comparison to a promotional strategy for a heterogeneous shopping product.

6. Describe what is happening with each of the following during each stage of the product life cycle.
    a. Sales
    b. Profits
    c. Promotion

7. Why do companies frequently use brand extensions instead of introducing new brands?

8. Define what is meant by commoditization, and provide an example.

9. Define what is meant by the terms “manufacturer’s brand” and “private/store brand.” Which of these do retailers increasingly prefer, and why?

10. Define what is meant by “brand equity.” As discussed in class, what are two of the three suggestions for managing and building brand equity?

11. Explain why many retailers like private brands.

12. What is a strategic channel alliance? Describe what this means, and provide an example.

13. What’s the difference between a line extension and a brand extension? Explain these two terms, and then provide an example of each.

14. In class, we discussed three ways of enhancing brand equity. One of these was “maintain/improve top of mind awareness.” List and briefly explain the other two.

15. In class, we discussed four way of altering the product life cycle. List and discuss three of these ways, and provide an example for each way.

16. Define the following marketing intermediaries – be sure you define each of the completely and in such a way that your definition fits the term you are defining and only the term you are defining:
    a. General merchandise wholesaler
    b. limited line wholesaler
    c. Specialty line wholesaler
    d. Cash and carry wholesaler
    e. Truck wholesaler
    f. Drop shipper
    g. Manufacturer’s Agent
    h. Selling agent
    i. Commission merchant
    j. Brokers

17. Joe Hague operates “Furniture First,” a furniture retailer on the World Wide Web (Internet). Joe’s business sells unusual types of furniture such as used baseball stadium seats, old movie theater seats, and used church pews. Joe buys these items used, reconditions them, and offers them on the WWW to customers (mostly 25-50, incomes over $80,000) who are seeking something unique for a family room, office, or other location. Using the 7 Step Process for Analyzing Consumer Behavior as discussed in class, provide some suggestions Joe might use for:
    a. Funds Access
    b. Store Contact
    c. Transaction

18. What strategy advice would you provide to a marketer whose customers purchase her products through
    a. straight rebuy
    b. modified rebuy
    c. new (task) buy