Marketing 330 exam 3
Although 80% of clients are willing to give referrals, __ are ever asked.
20%
Advertising appropriations are largest for which type of product?
Convenience goods
Which of the following statements is true about public relations?
Marketers cannot control whether the media choose to publish their public relations material.
A Kohl's manager designs the casual clothing department such that one of Kohl's private label pairs of jeans, priced at $44.99, is positioned next to a national brand of jeans, such as Levis, priced at $59.99. What is the manager attempting to accomplish?
Reference pricing strategy
Abbot Laboratories offers ceramic coffee mugs to its physician customers when it promotes a new drug. This example illustrates Abbot's use of which one of the following elements of the promotion mix?
Sales promotion
______ do not engage in paid internet advertising as much due to smaller budgets.
Small businesses
What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?
Status quo
A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)
Technical salesperson
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur
a marginal cost
A concession in price in business markets to achieve a desired goal is called a(n)
allowance
A new soap manufacturer wants to get its product into national retail stores. It recently developed a product that executives think will be able to compete against top brands such as Dove and Dial. However, they know that retailers are often skeptical of carrying new products when their success is not known. The soap manufacturer therefore offers a price reduction to the retailers for each case of soap they buy. The soap manufacturer is most likely using a
buying allowance
Before the release of the newest iPhone by Apple Inc., an Apple juice brand used an actor dressed up like an apple to hold a sign encouraging those waiting in line to try its juice. The brand thought this would be a creative event that would spark an interest in Apple iPhone fans as they stood waiting in line with little else to do. This is an example of
buzz marketing
Dell introduces a new voice-activated personal computer that does not require a keyboard. Dell charges the high price of $2,500 per unit, thus generating large profits because it has a 20% market share. Dell's major problem in the future will most likely be
competition
A consumer contest is an example of
sales promotion
The most important feature of apps is
the convenience and cost savings they offer to the consumer.
During the personal selling process, a salesperson, if possible, should handle objections when
they arise
Pricing objectives should be stated explicitly, stated in measurable terms, and specify a
time frame for achieving them
A company trying to position itself as value oriented should NOT
use premium pricing for its products.
Myrna's company just purchased $600 worth of supplies from Staples. The terms for payment are 2/10 net 30. If Myra's firm pays in the next week, it will pay ___________. If Myrna's company waits three weeks to pay Staples, it will pay _____________.
$588; $600
A certain location of Hamish's restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must Hamish's serve per year in order to break even?
5,000
Coupons are a form of sales promotion. a. True b. False
A. True
Dairy Queen communicates with its customers through ____, which is the most popular social networking site in the world.
A combination compensation plan is the most effective method for motivating sales personnel to escalate their selling efforts.
False
A company wanting to maximize profits from its new product would use product-line pricing.
False
A firm can survive in the long run only if its products are sold below cost.
False
A low price may boost demand for the product, but a high price will hurt profit margins and may instill in customers a perception that the product is of low quality.
False
A news story about a product is an example of sales promotion.
False
Addressability allows customers to respond to a company's marketing communications by expressing their reactions and desires directly to the company.
False
Almost all advertising campaigns are aimed at producing immediate sales.
False
Customers always interpret a higher price to mean higher quality.
False
Earned media is the use of traditional print and broadcast advertising as well as advertising on social networks.
False
Following up is the part of the sales presentation in which hidden objections are discovered.
False
If a restaurant, known for its delicious food and fun entertainment, does not serve alcohol, it is displaying advocacy advertising.
False
It is never good to ask customers questions while giving the sales presentation, as the customer may raise objections that the salesperson cannot overcome.
False
Social media should be included only in marketing strategy.
False
____ is a popular mobile photo-sharing site.
____ allows customers to express their needs and wants directly to a company in response to its marketing communications.
Interactivity
A breakfast cereal maker most likely will not use personal selling to promote its product.
True
A new trend in video marketing is the use of amateur filmmakers.
True
Ad agencies usually work jointly with the firms to develop the ad campaigns.
True
Advertising is paid nonpersonal communication transmitted through mass media.
True
Because salespeople are an expense to the company, yet they are the ones who generate revenues for the company, management must strive to achieve optimality in the size of its sales force.
True
Comparative advertisements mention the actual names of competing brands.
True
Costs are a major issue when establishing price.
True
Lack of control over the content and timing of public relations is a limitation in using publicity-based public relations tools.
True
Zeke is new to the realm of digital marketing. Recently, he saw a blog post about his company that was just untrue. He demanded the blogger remove the post. Much to his surprise, however, the post had already spread to other sites. Zeke immediately released content on the corporate website and social media pages with information that refuted the post. Nevertheless, the original post continued to spread. Zeke does not understand why users are spreading the post when his organization has posted information claiming that the post is untrue. Zeke has failed to realize that
consumer-generated digital content is often trusted over corporate content.
Amtrak is considering two pricing strategies for its service. One is to price its train tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel, which illustrates _____ pricing. The second is to price its train tickets so that the further away the travel date, the greater the discount, which is best described as _____.
demand-based; differential pricing
Artwork, a major part of most advertisements, consists of the
illustration and the layout
A major disadvantage of personal selling is that it
is very expensive per contact.
A product under nonprice competition would most likely NOT succeed in the market if
it is easy to duplicate
Adidas is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.
market share
Dyson is known for product innovation and the creation of products that go beyond consumer expectations, such as the AirBlade hand dryer, AirMultiplier bladeless fan, and the Supersonic hair dryer. In order to develop and deliver products to consumers that are high in value and successful, the firm implements a variety of ________ activities in order to stay abreast of consumer trends and preferences and to determine the potential for success of new products.
marketing research
For differential pricing to be effective, the market must consist of
multiple segments with different price sensitivities
A car dealership is altering how it determines its advertising appropriation. It is moving from an approach where it sets its budget based on projected revenue for the coming year to one in which it identifies the cost required to meet certain goals. It is switching from the _____ approach to the _____ approach.
percentage-of-sales; objective-and-task
A measure of sensitivity of demand in relation to changes in price is
price elasticity of demand
By promoting the fact that avocados are good for you and can be used to make tasty snacks, the California Avocado Grower's Exchange attempted to stimulate
primary demand
Advertising can be cost efficient but only if it
reaches a vast number of people at a low cost per person.
Before contacting a prospect, a salesperson for an industrial cleaning equipment company analyzes information about the prospects' product needs, feelings about brands, and personal characteristics. This process is called
reapproach
A new soft drink company took out a national advertisement announcing its new butterscotch-flavored soda. However, while people in one part of the country recognized they were talking about a soft drink, others believed it was an ice cream drink. Still, others use the term to refer to something mixed with alcoholic drinks. Therefore, there was much confusion about the term and what it means. The mistake here lies with the
source
Hotels strive to price rooms to maximize resources by quickly adapting to changes in demand. Part of this involves anticipating consumer behavior and calculating a number of different factors, including demand for rooms during a particular time period, likely length of stay, types of rooms likely to be requested, etc. They want to be able to sell rooms at the right price to the right people. This pricing strategy is an example of
yield management