Exam 2 MKTG 101

What potential risk do marketers incur by using richer but more fragmented media and promotional​ mixes? A. Greater efficiency but less control over marketing messaging B. Better targeting but at a higher cost per consumer C. Mixed communications messaging and higher costs D. The inability to use mass and traditional media E. A communications hodgepodge for consumers

A communications hodgepodge for consumers

Product Line

A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets

Which of the following correctly defines a​ product? A. Products include tangible objects and services but not events or people. B. A product is anything offered to a market that might satisfy a need or want. C. A product is not a part of the overall market offering. D. Products have two​ levels: the actual product and the augmented product. E. Products are only tangible objects offered to a market to satisfy a want or need.

A product is anything offered to a market that might satisfy a need or want.

​_________ direct(s) its marketing activities​ (primarily advertising, consumer​ promotion, and direct and digital​ media) toward final consumers to induce them to buy the product. A. A push strategy B. Product communications C. Personal selling D. A pull strategy E. Integrated communications

A pull strategy

In which of the following does a producer direct marketing activities​ (primarily personal selling and trade​ promotion) toward channel​ members? A. A personal selling strategy B. A pull strategy C. A push strategy D. Integrated communications E. Product communications

A push strategy

Communication effects of Advertising

Ad Recall, Brand Awareness, Message Association, Purchase Consideration, Brand Favorability.

Line filling

Adding more items within the present range of the line

________ is any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor. A. Advertising B. Public relations C. Personal selling D. Social media E. Sales promotion

Advertising

Promotion Tools

Advertising, Personal Selling, Sales promotion, Public relations, Direct Marketing

Advertising Methods

Affordable method. Percentage-of-sales method. Competitive-parity method. Objective-and-task method.

Product

Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy needs.

​________ is the differential effect that knowing the brand name has on customer response to the product and its marketing. A. Customer equity B. Brand value C. Brand differentiation D. Brand equity E. Customer value

Brand equity

Store Brands

Brands created and owned by a reseller of a product or service.

Public relations

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling unfavorable rumours, stories, and events.

For employee commitment to customer service, management must develop programs possessing the following critical components

Careful selection and hiring of frontline employees. Particular service strategy that frontline people need to act on. Training, support and incentives to be provided to employees with capacity.

Integrated Marketing Communications (IMC)

Carefully integrating and coordinating the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its products.

Celebrity Endorsers

Celebrity-audience matchup. Celebrity-brand matchup. Saturation/overexposure. Trouble factor.

Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand​ equity? A. National branding B. Private branding C. ​Co-branding D. Distributor branding E. Store branding

Co-branding

Pull strategy

Company spends a lot of money on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that pulls the product through the channel

Creative concept

Compelling big idea that brings the advertising message strategy to life in a distinctive and memorable way

Product decisions and social responsibility

Consider public policy issues, regulations regarding acquiring or dropping products. patent protection, product quality and safety, and warranties..

Customer Effort:

Customers are often involved to a relatively great degree in production of many types of services

Media planning

Decide how to schedule the advertising over the course of a year.

Marketing strategy development

Designing an initial marketing strategy based on the product concept.

Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations​ function? A. Investor relations B. Public affairs C. Development D. Lobbying E. Press relations

Development

Product development

Develops concept into a physical product. Prototypes are made and subjected to physical tests.

Direct marketing

Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Messages can be customized. Allows a dialogue between the marketing team and the consumer.

Idea screening

Evaluate against a set of company criteria for new products.

Licensing

For a fee, companies use names and symbols created by other companies.

Publicity

Information that concerns a person, product, company, event and that is disseminated through media to attract public interest.

Which of the following statements regarding packaging is​ correct? A. Innovative packaging can give a company an advantage over competitors and boost sales. B. Packaging does not provide any marketing opportunities. C. Product safety is not impacted by packaging. D. Packaging has not been influenced by environmental concerns. E. Packaging has not yet evolved to allow brands to interact directly with customers.

Innovative packaging can give a company an advantage over competitors and boost sales.

Service Features

Intangibility, Perishability, Inseparability, Heterogeneity(Variability), Fluctuating Demand.

​________ marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. A. Intangible B. Inactive C. External D. Internal E. Interactive

Interactive

Which link in the service profit chain involves employee selection and​ training? A. Satisfied and productive suppliers B. Greater service value C. Satisfied and loyal customers D. Internal service quality E. Healthy service profits and growth

Internal service quality

Idea generation

Internal sources and External sources

The Product Life Cycle

Introduction. Growth. Maturity. Decline.

Business analysis

Involves a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.

Brand equity

Is the positive differential effect that knowing the brand name has on customer response to the product or service. Is a valuable asset that offers many competitive advantages.

Line stretching

Lengthening the product line beyond the current range

When we see Hello Kitty on​ children's clothing, Disney characters on​ lunchboxes, and SpongeBob SquarePants on breakfast​ cereals, which form of brand sponsorship is being​ used? A. Private branding B. ​Co-branding C. National branding D. Licensing E. Store branding

Licensing

Adjust line length by

Line Filling and Line Stretching

When Doritos comes out with new flavors of its tortilla​ chips, what brand development strategy does it​ employ? A. Multibranding B. New brand C. Line extension D. Brand extension E. Store brand

Line extension

Multibrands (Multi-brand strategy, also known as individual branding)

Market two or more brands of the same company in the same product category under the guise of different brand name

Which of the statements is true regarding media and message​ decisions? A. Media and message decisions should be closely coordinated. B. Message decisions are now more important than media decisions. C. Media and message decisions are independent of each other. D. Media and message decisions have no impact on results. E. Media and message decisions have no relationship to budgeting.

Media and message decisions should be closely coordinated.

Which of the following offers a way to establish different features that appeal to different customer​ segments, lock up more reseller shelf​ space, and capture a larger market​ share? A. Multibranding B. ​Co-branding C. Licensing D. Line extension E. Brand extension

Multibranding

Commercialization

Must decide on timing, where to introduce the product. Includes a new product launch plan.

Brand sponsorship options include

National Brands, Store Brands, and Licensing

Frequency

Number of times a person is exposed to the message.

Why do new products fail?

Overestimation of market size. Design problemsoIncorrectly positioned, priced, or advertised. Pushed despite poor marketing research findings. High development costs. Competitive reaction.

Which of the following statements is true about public relations and a​ company's overall integrated marketing communications​ efforts? A. PR is now the more dominant media than other forms. B. PR should be blended smoothly with promotion activities. C. PR should be planned​ first, then advertising second. D. PR has no value within a social media context. E. PR should have a separate budget from marketing communications.

PR should be blended smoothly with promotion activities.

Advertising

Paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Reaches masses of geographically dispersed buyers at a low cost per exposure.

Reach

Percentage of people exposed to ad.

Services cannot be stored for future use. Which characteristic of services does this​ describe? A. Perishability B. Intangibility C. Inseparability D. Tangibility E. Variability

Perishability

Personal selling

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. Allows relationship building.

Which of the following uses promotional tools such as​ presentations, trade​ shows, and incentive programs to engage​ customers, make​ sales, and build customer​ relationships? A. Personal selling B. Direct selling C. Sales promotion D. Advertising E. Public relations

Personal selling

​________ advertising is used when a company is attempting to build brand preference and prompt customers to purchase now. A. Persuasive B. Attack C. Reminder D. Comparative E. Informative

Persuasive

Kroger, headquartered in​ Cincinnati, Ohio, is one of the​ nation's largest grocery chains. It owns several brands sold in its​ stores, including Private​ Selection, Heritage​ Farm, and Simple. These brands represent which type of brand​ sponsorship? A. ​Co-brands B. Private brands C. ​Manufacturer's brand D. Private labels E. Generic brands

Private brands

Test marketing

Product and program are introduced in realistic market settings. Can be expensive and time consuming, but better than making a major marketing mistake.

Which of the following statements regarding the important decisions in the development and marketing of individual products is​ correct? A. How a product is branded is separate from the development and marketing of individual products. B. Determining product support services is not part of the development of individual products. C. Product attributes that communicate and deliver benefits to the consumer include​ quality, features, and style and design. D. Packaging decisions are not an important part of developing individual products. E. Product labeling is no longer subject to legal regulation.

Product attributes that communicate and deliver benefits to the consumer include​ quality, features, and style and design.

National Brands

Products are marketed under the manufacturer's own name

Which of the following BEST describes a​ company's efforts to engage​ customers, persuasively communicate customer​ value, and build customer​ relationships? A. Marketing mix B. Advertising and public relations mix C. Personal and direct selling mix D. Content marketing mix E. Promotion mix

Promotion mix

_________ is used to build and maintain national or local community relationships and is one of the functions of public relations. A. Press relations B. Lobbying C. Development D. Investor relations E. Public affairs

Public affairs

Media Impact

Qualitative value of message exposure through a given medium.

Push strategy

Sales force and trade promotion are used to push the product through channels

________ are​ short-term incentives to encourage the purchase or sale of a product or service. A. Sales promotions B. Sales presentations C. Personal selling D. Advertisements E. Public relations

Sales promotions

Continuity Pattern of Ads

Scheduling ads evenly within a given period

Pulsing Pattern of Ads

Scheduling ads unevenly over a given time period

Flighting Pattern of Ads

Seasonal ads

Major Advertising Decisions

Setting advertising objectives. Setting the advertising budget. Developing advertising strategy- Message decisions- Media decisions. Evaluating advertising campaigns.

Which type of consumer products and services are purchased less​ frequently, with consumers carefully comparing competing products in terms of​ suitability, quality,​ price, and​ style? A. Convenience products B. Industrial products C. Capital products D. Shopping products E. Specialty products

Shopping products

Sales promotion

Short-term incentives to encourage the purchase or sale of a product or service. Offers strong incentives to buy.

Client Relationship

Similar to customer relationship but typically more intense

Message execution styles for advertising

Slice of Life Fantasy Mood or image Scientific evidence Testimonial evidence

Advertising objectives

Specific communication task to be accomplished with a specific target audience during a specific period of time.

Concept testing

Testing new-product concepts with groups of target consumers to find out if the concepts have strong consumer appeal.

Nailit Cosmetics is advertising its newest line of nail​ polishes, made from a​ nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for​ Nailit's line of​ polishes? A. The natural ingredients B. The​ products' revolutionary packaging C. The nontoxic properties of the products D. The Nailit brand E. The desire to have beautiful nails

The desire to have beautiful nails

New product development

The development of new products (new-to-the world products), product improvements, product modifications.

Which of the following statements about public relations is​ correct? A. The impact of public relations on public awareness comes at a much higher cost than advertising. B. The lines between advertising and public relations are becoming more blurred. C. Public relations is only used to promote products. D. Public relations cannot be used to engage consumers. E. Public relations now captures a substantial portion of the overall marketing budgets of many firms.

The lines between advertising and public relations are becoming more blurred.

Product line length

The number of items (or a set of products) in a product line offered by a company that are similar in function and benefit

Line Length

The number of items (or a set of products) in a product line offered by a company that are similar in function and benefit.

Product Placement (PPL)

The placement of a product within a movie tv show music.

Product mix

The set of all of the product lines and items that a particular seller offers for sale.

The Promotion Mix

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

Line Extension

The use of an established brand name for a new item in the same product category. Extending a product line to new forms, styles, colors, sizes, ingredients, or flavors within a product category.

What is the goal of​ advertising? A. To help move consumers through the buying process B. To create consumer communities C. To define a​ product's value D. To provide feedback on products and services E. To create interest and consumer hype

To help move consumers through the buying process

Which of the following is a pure tangible​ good? A. A spa treatment B. Toothpaste C. A meal at a restaurant D. Financial advice E. A medical checkup

Toothpaste

Which of the following statements about service marketing is​ correct? A. Training current employees better and hiring new ones with more skills can increase service productivity. B. Service marketers do not need to differentiate their offerings. C. It is easier to define service quality than product quality. D. Due to the variability of​ services, top service companies set modest​ service-quality standards. E. Companies should strive to streamline services to increase efficiency.

Training current employees better and hiring new ones with more skills can increase service productivity.

Brand extension

Using existing brand name to enter a completely different product class

Advertising media:

Vehicles through which advertising messages are delivered to their intended audiences

Which of the following is considered part of an augmented product rather than that of an actual product or core customer​ value? A. Brand name B. Design C. Warranty D. Packaging E. Product features

Warranty

Objective-and-Task Method

a company allocates a certain amount of money to its marketing budget based on specific objectives

Competitive-parity Method

a company spends the same amount of money on advertising and marketing as its competitors.

Brand

a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors

Percentage-of-Sales Method

based on a predetermined percentage of past sales or a forecast of future sales.

Affordable Method

based on what a company thinks it can afford to spend on marketing.

Marketers now have a richer mix of media and content approaches with consumers being bombarded by many brand messages. The result is that​ __________. A. companies do not target successfully or efficiently B. consumers​ don't distinguish between content sources the way marketers do C. consumers may believe similar brands are all the same D. companies fail to integrate brand messages and positioning E. companies fail to integrate their various communication channels

companies fail to integrate their various communication channels

Over the past​ decade, in one campaign after​ another, Samsung has run ads smugly depicting iPhone owners as either disappointed in their phones or secretly envious of people using the latest Galaxy model. This is an example of​ ________ advertising. A. native B. comparative C. reminder D. informative E. brand integration

comparative

The goal of integrated marketing communications is to​ _________. A. maximize return on investment with increased revenue across all brands B. have different media carry different messages about a brand in an integrated way C. lower overall marketing expenditures while delivering increased results D. deliver​ clear, consistent, and compelling messages about the organization and its brands E. integrate communications via online and mobile technologies at a lower cost per impression

deliver​ clear, consistent, and compelling messages about the organization and its brands

Adding a new product line to an existing portfolio means that the line has​ _________. A. differentiated its product mix depth B. extended product line length C. increased product mix width D. altered its product mix consistency E. increased product support services

increased product mix width

The goal of a push strategy is to​ _________. A. induce channel members to carry and promote the product B. save money by only focusing on consumers C. increase sales calls to distributors D. build trade demand E. give channel members additional media incentives to carry the product

induce channel members to carry and promote the product

Groups of​ _________ products consist of materials and​ parts, capital​ items, and supplies and services. A. specialty B. shopping C. convenience D. unsought E. industrial

industrial

Correcting false impressions and suggesting new uses for a product are objectives associated with​ ________ advertising. A. comparative B. attack C. reminder D. persuasive E. informative

informative

Buyers look for signals of service​ quality, drawing conclusions about quality from the​ place, people,​ price, equipment, and communications that they can see to address the issue of service​ ________. A. Invariability B. variability C. perishability D. intangibility E. inseparability

intangibility

A service firm must orient and motivate its​ customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as​ ___________. A. external marketing B. internal marketing C. interactive marketing D. service differentiation E. supplier and vendor marketing

internal marketing

The three functions of​ __________ include​ identifying, describing, and promoting the product. A. product lines B. packaging C. product design D. labeling E. innovation

labeling

Stories, sponsorships,​ events, and webpages are promotional tools used in​ ________. A. public relations B. personal selling C. advertising D. direct selling E. sales promotion

public relations

In the context of advertising​ media, ________ is a measure of the percentage of people in the target market who are exposed to an ad campaign during a given period of time. A. frequency B. media impact C. reach D. media engagement E. qualitative value

reach

Ad agency Young​ & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand​ ________ is defined in terms of how highly consumers feel the brand meets their needs. A. equity B. relevance C. differentiation D. esteem E. knowledge

relevance

When a company lengthens a product line by adding more items beyond its current​ range, it is​ ________. A. increasing the width of its product mix B. decreasing the width of its product mix C. decreasing the depth of the line D. stretching the line E. filling the line

stretching the line

Product mix width refers to​ ________. A. lengthening the product line beyond its current range B. the total number of items a company carries within all of its product lines C. the number of items in the product line D. the number of different product lines the company carries E. adding more items within the present range of the line

the number of different product lines the company carries

Line Width

the number of different product lines the company carries.

Line Depth

the number of versions offered of each product in the line.

Crowdsourcing

the practice of engaging a crowd or group for a common goal such as innovation, problem solving, or efficiency. obtaining new product ideas from a wide range of potential sources such as customers, industry experts, academics, and the public at large via internet and mobile application.

Firms spend​ ________ on personal selling as they do on advertising. A. half as much B. up to 10 times as much C. far less D. the same amount E. up to three times as much

up to three times as much

Which budgeting method involves setting a​ company's promotion budget to match the standard outlays for the​ industry? A. ​Competitive-parity method B. Affordable method C. ​Objective-and-task method D. ​Percentage-of-profits method E. ​Percentage-of-sales method

​Competitive-parity method