Explain the difference between a product and a service/ Business Management
I. TRUE/FALSE-
____1.Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
____2. The three basic types of utility are product utility, perception utility, and placement utility.
____3. Ownership utility satisfies wants by providing goods and services at a convenient place for customers.
____4. Companies use event marketing when they sponsor sporting, cultural, or charitable events.
____5.The first step in developing a marketing plan is to identify the individuals most likely to buy your products.
____6.Strategies about product, price, promotion, and distribution are all included in a firm’s marketing mix.
____7.A product can be anything that a company offers to satisfy consumer needs and wants, including physical goods, services, and ideas.
____8. The brand name, features, and the packaging of a product are considered part of the actual product.
____9.Unsought products are those goods that consumers purchase only out of necessity. Traditionally, these products require little marketing and are quite easy to sell.
____10.Product differentiation attempts to create real or perceived differences among competitors’ products in the minds of consumers.
____11.Personal selling is considered the world’s oldest form of promotion and involves face-to-face presentation of products and services to potential buyers.
____12.The channel of distribution refers to the actual movement of products as they travel from the producer to the ultimate consumer.
____13.Physical distribution occurs as products actually travel along the distribution pathway.
____14.Producers use channel intermediaries to move products more efficiently and effectively from factories to consumers.
____15.Distributors reduce the costs associated with moving goods from producers to consumers.
II. Multiple Choice
____1.When a business provides _____ they satisfy customers’ wants and needs by providing goods and services at a convenient moment for customers.
a) place utility
b) ownership utility
c) time utility
d) form utility
____2. _____ satisfies wants by converting inputs into a finished product.
a) Form utility
b) Ownership utility
c) Production utility
d) Marketing
____3.Stay-Inn is a chain of hotels that locates their properties near major highway off-ramps. This is an example of a business providing
a) form utility.
b) time utility.
c) place utility.
d) ownership utility.
____4.The successful marketing campaign “What happens in Vegas stays in Vegas” is an example of
a) place marketing.
b) idea marketing.
c) event marketing.
d) people marketing.
____5.The evolution of marketing includes all of the following, EXCEPT the
a) selling era.
b) segmentation era.
c) relationship era.
d) production era.
____6.By definition, a(n) ____ satisfies consumer wants and needs.
a) payable
b) product
c) survey
d) prototype
____7.All of the following are characteristics of services EXCEPT
a) variability.
b) permanence.
c) inseparability.
d) intangibility.
____8.What do gasoline for a car, ketchup for french fries, and a lady’s scarf have in common?
a) They are pure goods.
b) They are inseparable services.
c) They are all in the growth stage of their product life cycle.
d) They are “mixed message” products.
____9.At the most fundamental level, a consumer buys a product to obtain
a) status.
b) its implicit benefit.
c) a core benefit.
d) a lifestyle enhancement.
____10. The difference between consumer products and business products is
a) consumer products are for personal use and business products are for a business’s operation and/or production.
b) consumer products offer a service component while business products do not offer a service component.
c) consumer products are specialty products and business products are shopping products.
d) consumer goods tend to be consumed quickly, thus having short product lives. Business goods tend to last much longer.
____11.With their extended hours and numerous locations in a given community, 7-Eleven stores offer _____ to consumers, who find it easy to stop in and make this type of purchase.
a) unsought products
b) shopping products
c) specialty products
d) convenience products
____12.Hans owns and operates a petroleum refinery and is considering selling gasoline door to door, the way the milk man used to do things. What part of distribution strategy is he dealing with?
a. direct channel
b. channel intermediaries
c. channel distribution
d. physical distribution
____13.______ like Costco, help producers move their product more efficiently and effectively to the consumers.
a. Brokers
b. Agents
c. Online retailers
d. Channel intermediaries
____14.The goal of distribution strategy is to
a. minimize the number of distributors involved in moving products from producers to consumers.
b. allocate goods to consumers in the fairest possible way.
c. reconcile conflicts between pricing strategies and promotion strategies.
d. get the right product to the right person at the right place and time.
____15.The main distinction among members of a channel of distribution is whether they are
a. agents or brokers.
b. producers or sellers.
c. wholesalers or retailers.
d. shippers or warehousers.
III. Fill in the Blank
1. ________________________ are marketing intermediaries that sell directly to final consumers.
2. __________________________________ takes legal possession of the goods being distributed, while ________________________ do not take title of the goods.
3. ____________________________ dominate the market by offering a huge variety of one type of product.
4. ________________________________ sell a complete selection of food and general merchandise at a steep discount in a single enormous location.
5. Fashion trend setters such as Gucci who establish one retail outlet in a given area are utilizing a(n)____________________________ distribution strategy.
IV. Short Answer Essay
1. In conducting marketing research, there are two types of data available: secondary and primary data. Explain the difference between these two types of data.
2. What is the meaning of “green marketing”? Give one example of a green product.
3. Explain the difference between a product and a service. Give an example of each.
4. What are the 6 stages in the new product development process?
