Marketing 300 UTK Final Exam

retailer

A __________ is a business whose sales come primarily from retailing.

franchise organization

A __________ is a contractual association between a franchisor (a manufacturer, wholesaler, or service organization) and franchisees (independent business people who buy the right to own and operate one or more business units in the franchise system).

Supermarket

A __________ is a large, low-cost, low-margin, high-volume self-service store that carries a wide variety of grocery and household products.

slice of life style

The __________ shows one or more typical people using the product in a normal setting.

cost-plus pricing

adding a standard mark up to the cost of a product

customer value based pricing

based on buyer's perceptions of value rather than seller's cost

good value pricing

creating reputation for good value, lower pricing

Exclusive Distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories.

Customer value-based pricing

is based on a buyer's perceptions of value rather than on the seller's cost.

Designing products to deliver the desired value at a target price

is the fourth step in value-based pricing

Determining costs that can be incurred

is the third step in value-based pricing.

Direct marketing channel

producer to consumer

selective distribution

relatively easy for consumer to find product

breakeven pricing

(target return) setting price to break even on costs of making and marketing a product, or setting a price to make a target return

voluntary chain

A __________ is a wholesaler-sponsored group of independent retailers engaged in group buying and merchandising.

place decision

Choosing locations that are accessible to the target market in areas that are consistent with the retailer's positioning is an example of a __________.

Price decisions

Deciding on either high markups on lower volume or low markups on higher volume is an example of a __________.

musical style

The __________ shows people or cartoon characters singing about the product.

Public Relations

__________ is building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Limited-service wholesalers

__________ only offer specific services, like cash and carry wholesalers, truck wholesalers, drop shippers, rack jobbers, producers' cooperatives, and mail-order or web wholesalers.

Full-service wholesalers

__________ provide a complete line of services: carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance.

Horizontal marketing system

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

components of promotion mix

advertising, personal selling, sales promotion, public relations, direct and digital marketing

intensive distribution

as many retailers as financially possible

value-added pricing

attaching features and services to differentiate a company's offers and charging higher prices.

administered vertical marketing system

coordinates successive stages of production and distribution through the size and power of one of the parties.

Market-skimming pricing

is setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales

Product line pricing

is setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.

Price

is the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service

Fixed costs

is/are costs that do not vary with production or sales level.

Variable costs

is/are costs that vary directly with the level of production

Total costs

is/are the sum of the fixed and variable costs for any given level of production.

Channel level

layer of intermediaries that performs some of the work in bringing the product and its ownership closer to the final buyer.

exclusive distribution

limiting intermediaries for status

channel 2

producer to retailer to consumer

retailer cooperative

A __________ is a group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

department store

A __________ is a retail store that carries a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers.

convenience store

A __________ is a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high-turnover convenience goods.

superstore

A __________ is a store that offers a large assortment of routinely purchased food products, nonfood items, and services.

lifestyle style

The __________ shows how a product fits in with a particular way of life.

Press relations

__________ is a function in which companies create and place newsworthy information in the news media to attract attention to a person, product, or service.

a pull strategy

__________ is a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that "pulls" the product through the channel.

a push strategy

__________ is a promotion strategy that calls for using the sales force and trade promotion to move the product through channels.

Service Retailer

__________ is a retailer whose product line is actually a service; examples includes hotels, airlines, banks, and colleges.

Direct marketing

__________ is direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

Conventional

a channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole.

Vertical Marketing system

a channel structure in which producers, wholesalers, and retailers act as a unified system

Direct Marketing Channel

a marketing channel that has no intermediary level.

Price elasticity

a measure of the sensitivity of demand to changes in price.

Marketing channel

a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

value-added pricing

charge higher prices than competitors because marketers can add value

value delivery network

composed of company, suppliers, distributors, and customers who work together to improve system of delivering customer value

Contractual vertical marketing system

consists of independent firms at different levels of production and distribution joining together through contracts.

Good-value pricing

is offering just the right combination of quality and good service at a fair price.

Supply chain management

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.

vertical marketing channel

producer to wholesaler to retailer to consumer

a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit

A shopping center is __________.

promotion decisions

Advertising, personal selling, sales promotion, public relations, and direct marketing are all considered __________.

first

Designing a good product is the __________ step in cost-based pricing.

mood or image style

The __________ builds an image or mood around the product or service, such as beauty, love, intrigue, or serenity.

fantasy style

The __________ creates an imaginary situation around the product or its use.

objective-and-task method

The __________ is developing the promotion budget by 1) defining specific promotion objectives, 2) determining the tasks needed to achieve these objectives, and 3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.

percentage-of-sales method

The __________ is setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.

competitive-parity method

The __________ is setting the promotion budget to match competitors' outlays.

Sales promotion

__________ is a short-term incentive to encourage the purchase or sale of a product or service.

Retailing

__________ is all the activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.

Product publicity

__________ is an activity of public relations that involves the publicizing of specific products.

Public Affairs

__________ is building and maintaining national or local community relationships.

Lobbying

__________ is building and maintaining relationships with legislators and government officials to influence legislation and regulation.

Personal Selling

__________ is personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.

Deciding on store atmosphere

__________ is/are an example of a product assortment and services decision.

Wholesale merchants

__________ sell primarily to retailers and provide a full range of services.

Industrial distributors

__________ sell to manufacturers rather than to retailers.

two or more outlets that are commonly owned and controlled

a corporate chain is__________

Advertising

any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor

indirect marketing channel

is a marketing channel containing one or more intermediary levels.

Setting a target price to match the customer's perceived value

is the second step in value-based pricing.

A third-party logistics provider

performs any or all of the functions required to get a client's product to market.

Marketing Logistics

planning, implementing, and controlling the physical flow of materials, final goods and related information from points of origin to points of consumption to meet customers' requirements at a profit

Target costing

pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met.

Multichannel marketing

selecting, managing, and motivating individual channel members and evaluating their performance over time

Market-penetration pricing

setting a low price for a new product in order to attract a large number of buyers and a large market share.

Captive-product pricing

setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console.

Cost-based pricing

setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk

The affordable method

setting the promotion budget at the level management thinks the company can afford

A demand curve

shows the number of units the market will buy in a given time period, at different prices that might be changed.

multichannel distribution

single firm sets up 2 or more marketing channels

Intensive distribution

stocking the product in as many outlets as possible.

Disintermediation

the cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional resellers by radical new types of intermediaries.

Integrated logistics management

the logistics concept that emphasizes teamwork—both inside the company and among all the marketing channel organizations—to maximize the performance of the entire distribution system.

psychological pricing

the price is used to say something about the product.

Selective Distribution

the use of more than one but fewer than all of the intermediaries who are willing carry the company's products.

Multichannel distribution center

uses a single firm to set up two or more marketing channels to reach one or more customer segments.