Marketing Final Exam

James wants to open a small store that caters to the model railroad hobbyist. The store would sell model trains, scenery, accessories, and books on the subject of model railroading. which of the following types oof stores would most likely support an effective launch of his business idea

A specialty store

which of the following retailers probably offers the lowest level of service

A warehouse club

____ is any form of impersonal, sponsor-paid, one-way mass communication.

Advertising

A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals is referred to as a

Advertising Campaign

Which of the following types of distribution channel relationships is considered to be temporary

Arm's Length

Supply chain management plays a dual role. What are the two roles

Assist with the physical flow process and is a communicator of producer demand

___ tries to get customers into the store with misleading advertising and then uses high pressure selling to persuade the consumer to buy something else more expensive.

Bait pricing

Because supply chain management is concerned with the performance of all firms in the system simultaneously any performance measurement system used to evaluate A supply chain must address both the chain itself and all of the processes and firms that added together compose it.one method used is called the:

Balanced scorecard approach

In advertising, the goal is to sell the ____, not the ____ of a product.

Benefits; attributes

___ determine what sales volume must be reached for a product before the company's total costs equal total revenue and no profits are earned.

Break-even analysis

Stores that are owned and operated as a group by a single Organization are called___. Under this form of ownership, administrative and purchasing tasks are handled by the home office.

Chain Stores

Consumers are looking more toward organic products to avoid exposure to pesticides, fungicides, herbicides, and antibiotics. Whole foods markets provide a variety of products ranging from cereal to frozen dinners that are USDA organic. Being organic and having such a great variety gives whole foods a ____.

Competitive advantage

___ is used by public relations specialists to handle the effects of unfavorable publicity

Crisis management

The my coke rewards program allows consumers to earn reward products and services by registering points they receive by consuming coca cola products. The my coke rewards program allows coca cola to collect information about consumers that they can use to optimize profitability is , revenue, and customer satisfaction. the my coke rewards program is an example of a ___ program

Customer relationship management

Continental Airlines has a system that captures information on everything from flight schedules, seat inventories, and customer profiles that is accessible by 35 departments and 1,300 employees, continental's system is an example of a

Data warehouse

DAGMAR is an acronym for:

Defining Advertising Goals for Measured Advertising Results

the ____ process seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior

Demand management

____ refers to the techniques used to get customers to buy frontier home. Those techniques include direct mail, catalogs and mail order, telemarketing, and electronic retailing

Direct marketing

a price tactic that requires the purchaser to absorb the freight costs from the shipping point is called ___. In this case, the farther buyers are from sellers, the more they pay because transportation costs generally increase with the distance merchandise is shipped.

FOB origin pricing

According to the 80/20 principle 20 percent of a company's revenue is generated by 80 percent of its customers.

False

Informative promotion issued to keep the product and brand name in the public's mind.

False

Integrated Channel relationships tend to be more flexible than cooperative relationships.

False

Profit is the price charged to customers multiplied by the number of units sold

False

Retailing can be defined as all activities directly related to the sale of goads and services to the ultimate consumer for commercial business use

False

The first step in setting the right price for a new product is to estimate demand, costs, and profits

False

Patrick owns Liberty Tax and bookkeeping services. The monthly mortgage payment Patrick makes on his small office building and the annual cost of his business license are all examples of ___ costs.

Fixed

Channel conflict that occurs among channel members on the same level is known as

Horizontal conflict

All of the following are typical channel members in marketing channels for consumer products EXCEPT

Industrial Distributor

Promotion for a brand like bounce fabric softener includes advertising, sales promotion, and public relations. To successfully launch its new product that attaches to the inside of the dryer and dispenses fabric softener, marketers of this brand need to coordinate all the promotional elements to assure consistency of the message at every contact point where a company meets the consumer. In other words, the marketers of Bounce would need to use:

Integrated marketing communications

From the perspective of the supply chain manager, all of the following are qualities characteristic of good Metrics except:

It uses multiple measures of profitability

Data mining identifies the most profitable customers and prospects. Managers can then design tailored marketing strategies to best appeal to identified segments. In CRM this is commonly referred to as ___ customer information to facilitate enhanced relationships with customers.

Leveraging

Jack's pet store offers customers who purchase pet food a "Baker's Dozen" card. After customers purchase 12 bags of pet food from Jack's, they get the 13th bag free. The Baker's Dozen card is an example of a:

Loyalty marketing program

W.W. Grainger, Inc. is one of the world's largest business-to-business distributors of equipment, component parts, and supplies in the United States and Canada. It has ownership title to over 220,000 products, which are stocked in one national and nine regional warehouses to guarantee product availability and quick service to the many manufacturers who are its customers. W.W. Grainger is an example of a(n)

Merchant wholesaler

_are standard measures that can be used repeatedly to assess performance on a supply chain related process

Metrics

when a firm introduces a new product at a relatively low price because it hopes to reach the mass market, it is following a ___ strategy. The low price is designed to capture a large share of a substantial market and produce lower production costs.

Penetration pricing

Innovyx is an e-mail marketing service provider. it has a new ad campaign aimed at changing negative perceptions of e-mail. The ads explain how much cheaper e-mail advertising is than traditional advertising and what a high return on investment it can generate if used properly. Finally, the message ends by suggesting that companies who want to promote their products give e-mail a chance to show them what it can do. This promotion has the task of:

Persuading

Which type of advertising is used to stimulate demand for a new product or product category

Pioneering

The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market is called:

Predatory pricing

South Africa's Competition Commission accused South African Airways of conspiring with its partner, Germany's Lufthansa, to set prices on flights between Cape Town, Johannesburg, and Frankfurt. As a result, the two airlines were charged with:

Price Fixing

All of the following statements about price are true except:

Price means the same thing to the consumer and the seller

Pioneering advertising, competitive advertising, and comparative advertising are all types of

Product advertising

Specialty Blades designs precision cutting devices for varied applications. On one recent project they worked closely with a medical device company, developing a combination scalpel and stapler that slices tissue very neatly close to the staples, which resulted in less traumatic procedures, and quicker patient recoveries. This is an example of which of the eight critical processes performed by supply chain managers?

Product development and commercialization

an organization is using ___ when it sets its prices so that total revenue is as large as possible relative to total costs.

Profit maximization

_____is the communications by marketers that inform, persuade, and remind potential buyers of a product in order to influence an opinion or elicit a response.

Promotion

The National Pork Board wants to crate more consumer demand for pork products. The board has developed a(n)____ that sets out how it will use all of the elements of the promotional mix to create a coordinated plan that will become an integral part of the organization's marketing strategy.

Promotional Strategy

All of the following are tactics for fine-tuning the base price EXCEPT:

Quality Discounts

a discrepancy of _____ is the difference between the amount of product produced and the amount an end user wants to buy

Quantity

L.L. Bean, Inc. has been reducing the number of catalogs it sends out while increasing its sales and profits With ___ L.L. Bean now identifies customers who have purchased recently and have spent considerable amount of money. Such customers are most likely to purchase again.

Recency-frequency-monetary analysis

Which type of list includes names and addresses of individuals who have responded to an offer of some kind

Response list

____ is equal to net profit after taxes divided by total assets

Return on investment

Tools for the public relations manager include all of the following except:

Sales Promotions

Dixie furniture company has recently moved to a new, larger location. At this new location, it has been unable to attract sufficient customers. Its owner does not have the cash to pay the current loan installment due on the building and inventory so he decided to reduce all merchandise prices by at least 50 percent for a weekend sale to earn enough to make his loan payment. His pricing objective can be classified as:

Sales maximization

____ is marketing communication activities in which a short-term incentive is offered to induce the purchase of a particular good or service.

Sales promotion

Chick-Fil-A uses cows as their mascot. the cows are sometimes dressed in funny costumes or involved in some kind of behavior that defies cow-like conduct. They always use messages to encourage people to eat chicken, not beef. Chick-Fil-A is the ___ of the message in this communication process.

Sender

Lawn Boy manufactures 13 models of walk-behind lawn mowers and 6 types of riding mowers. Even though lawn mowers s a product category that does not sell year round, sales remain steady all year because Lawn Boy sells to wholesale distributors that stock the product. Its wholesale distributors are helping to overcome a(n) ____ discrepancy

Temporal

Price is best described as:

That which is given up in exchange to acquire a good or service

which of the following statements about the CRM cycle is true

The CRM cycle is continuous and circular with no predefined start or end point

Keystoning is:

The practice of marking up prices by 100 percent

Apple Inc has stores, website, and a toll-free phone number where consumers can provide valuable information to the company in developing a CRM system. All these possible areas f the company where consumers can communicate with the business are called:

Touch points

Digital cookware is offering retailers a price reduction for allocating space for special displays its products. This type of trade sales promotion is called:

Trade allowance

Persuading customers to buy a higher-priced item than they originally intended to buy is referred to as:

Trading up

A marketing channel is a set of interdependent organizations that ease the transfer of ownership as products move from producer to business user or consumer

True

Communication is the process by which we exchange or share meanings through a common set of symbols.

True

To initiate the CRM cycle, a company must first identify customer relationship within the organization

True

a retail establishment can be classified according to its ownership, level of service, product assortment, and price

True

A ___ is a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.

Unique selling proposition

___ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same.

Unitary elasticity

___ occurs when a firm is customer-driven and seeks to understand the attributes customers want in the goods and services they buy and the value of those attributes to customers. Thus, the price of the product is set at a level that seems to the customers to be a good price compared with the prices of other options

Value-based pricing

Within the communication process for a car dealer's ad, which of the following would be an example of noise?

all of the above

_____ are composed of bundles of interconnected activities that stretch across firms in the supply chain

business processes

Coupons, premiums, contests, free samples, and frequent buyer programs are examples of:

consumer sales promotion

A company that has a ___ customizes its product offerings based on data generated through interaction between the customer and the company

customer centric focus

all of the following are benefits of supply chain management EXCEPT

decreased cash flow

effective sales management begins with

determining sales goals

which level of distribution intensity is the most restrictive and entails establishing only one or a few dealers within a given geographic area?

exclusive

Point-of-purchase promotions are seldom used as a sales promotion tool because most purchase decisions are made before consumers ever enter a store.

false

Traditional selling builds, maintains, and enhances interactions with customers to develop long-term satisfaction through mutually beneficial partnerships

false

supply chain management is completely producer-driven

false

Salespeople ensure that delivery schedules are met, that the good or service performs as promised, and that buyers are trained in the use of the product. All of these functions are part of ___ , the final step in the selling process

follow-up

The first step in the selling process is:

generating leads

Chewing gum and soft drinks are sold in grocery stores, service stations, convenience stores, drugstores, discount stores, and motel vending machines. This is an example of _____ distribution strategy

intensive

Advanced Bionic's technology is cutting-edge and their customers are very sophisticated. Salespeople used to persuade physicians, neurosurgeons, and orthopedic doctors to use Advanced Bionic's products. All of the following statements are advantages personal selling offers the company in comparison to other techniques except:

it is inexpensive on a per contact basis

The two major categories of communication are

mass and interpersonal

Retailers control the six Ps of the retailing mix. This six Ps include the marketing mix plus:

personnel and presentation

All of the following are factors in creating a store's atmosphere except:

price

which of the following is a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion

price skimming

A firms charging a price identical to or very close to the competition's price is using a ___ strategy

status quo pricing

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function is known as the

supply chain

Public relations is typically not paid for, but is not free

true

____ refers to the member of different brands offered within each product assortment

width