Marketing MML Questions

• ) Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of an ________ vertical marketing system (VMS)

administered

• Which promotional tool is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor?

advertising

• It is common to see product placements - embedding brands as props within other programming, such as TV shows or movies. Product placements are a form of ________ o Branded entertainment

branded entertainment

• Which of the following is a cost-based pricing approach?

break even pricing

A sales contest is considered a part of ________

business promotion

• _____ involves cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities

buzz marketing

• Cheese makers in Wisconsin sell their leftover brine to local city and county highway departments, which use it in conjunction with salt to melt icy roads. Which product pricing mix strategy does this represent?

by product pricing

• Companies that make products that must be used along with a main product are using ________

captive product pricing

• The aim of transaction-oriented marketing is to help salespeople _______

close a specific sale

• ) The franchise organization is the most common type of _____ VMS

contractual

• In selecting a media vehicle, media planners need to determine the cost of the vehicle's reach. To measure this, they use a method known as __________

cost per 1000

Which factor sets the ceiling on setting a product's price?

customer value perceptions

• ) _______ occurs when retailers set an artificially high regular price and then advertise a sale price which is actually close to their everyday price

deceptive pricing

• Which public relations function is used to work with donors or members of nonprofit organizations to gain financial or volunteer support?

development

Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of _______

disintermediation

• Sales reports, call reports, and expense reports are all used in the process of ________ salespeople

evaluating

• __________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line

full line forcing

• ) Tiffany and Neiman Marcus are classified as ______ retailers

full service

• Which of the following is an objective for business promotions?

generating business leads

• Developing effective marketing communications starts with ______

identifying target audience

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Because she does not know much about wine, she will likely use the price of the win as an __________

indicator of quality

• Cross-functional teamwork within the company, building logistics partnerships, and third-party logistics are all important elements of _________

integrated logistics movement

• ) In complex selling situations, personal selling can be very effective because it is ____

interpersonal

• When Apple Computer Company introduced their iPhone, they priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a _________ pricing strategy

market skimming

_______ are the largest single group of wholesalers

merchant wholesalers

1) Which of the following statements regarding advertising in the new marketing communications model is correct

o Advertisers are shifting toward digital media

• What is the first thing marketers must do when using value-based pricing?

o Assess customer needs and value perceptions

One framework for designing an effective message is the AIDO model. In the AIDA model ________

o Attention leads to interest, which hopefully leads to desire and then action

• Which of the following is true regarding costs?

o Average cost tends to decrease with accumulated production experience

Which standards should channel members' performance be evaluated against?

o Average inventory levels, customer delivery time, sales quotas, treatment of damaged and lost goods

• ) One new technology being adopted by retailers is ________. For example, when opted-in customers enter a store, a signal wakes up an app on their smartphone or tablet which welcomes them and alerts them to location-specific rewards and personalized product recommendations within the store/

o Beacon technology

Which statement is correct regarding the functions channel members perform?

o Channel members create greater efficiencies than manufacturers could achieve on their own

• When a company directly or indirectly compares its brand with one or more other brands in an advertisement, they are using _________________

o Comparative advertising

• ) Many marketers today create, inspire, and share brand messages and conversations with customers across a mix of communication channels. In this regard they view themselves as _________

o Content marketing managers

) Which of the following tools can be used as both consumer and trade promotions?

o Contests, premiums, and displays

• Historically, ________ have lacked leadership and power, often resulting in damaging conflict and poor performance

o Conventional distribution channels

• What are the three major pricing strategies used by marketers?

o Customer value-based pricing, cost-based pricing, and competition based-pricing

• ______ uses buyers' perceptions of value as the key to pricing

o Customer-value pricing

• 1) Which of the following statements about price is correct?

o Customers have put increasing pricing pressures on many companies

• What is the first decision made in sales force management?

o Designing sales force strategy and structure

• ) What is the first step in the media selection process?

o Determining reach, frequency, impact and engagement

• A _______ has no intermediary levels

o Direct marketing channel

One primary PR responsibility is to create content that ___________

o Draws consumers to a brand

• Which statement is correct regarding international distribution channels?

o Due to logistics costs in China, the majority of companies can only access affluent areas of major cities

• Market skimming prices used when

o Enough buyers must want the product at that price, the product's quality and image must support its higher price o Costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more

• ) L.L. Bean has turned its flagship store into a full-fledged outdoor adventure center, which is an example of _________

o Experiential retailing

• Which is true concerning new product pricing strategies?

o For a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more

• Which of the following is true regarding the price-demand relationship?

o If demand is elastic, sellers will consider lowering prices

• 1) What are the three main types of off-price retailers?

o Independents, factory outlets, and warehouse clubs

• ) Assume a competitor has cut prices and a company determines they should respond. Effective actionist that the company could initiate include ________

o Launch a low-price fighter brand

• ) From the producer's point of view, a greater number of levels of marketing channels means _______

o Less control and greater channel complexity

• Which of the following is a recent trend in wholesaling?

o Less distinction between large retailers and large wholesalers

• 1) What action can a company take in order to bring marketing and sales functions together?

o Let brand managers tag along on sales calls

True statement about selling?

o Many customers are unable to distinguish the salesperson from the company

• Which statement is true regarding retailer pricing decisions is correct?

o Most retailers seek either high markups on lower volume or low markups on higher volume

Which of the following statements about setting an advertising budget is correct?

o New products typically need relatively large advertising budgets to build awareness and to gain consumer trial

• Market penetration prices used when

o Penetration price must maintain low-price position, low price must help keep out the competition o Market must be highly price sensitive so that a low price produces more market growth Production and distribution costs must decrease as sales volume increases

Which of the following is NOT true regarding price?

o Price is the only element in the marketing mix that represents costs

• One study found that the best salespeople have four traits in common: intrinsic motivation, a discipline work style, the ability to close a sale, and the ability to build relationships with customers. Knowing this would be most useful at which stage of sales force management?

o Recruiting and selecting salespeople

• Retailers need to differentiate and position their store and make decisions regarding their retail marketing mix. Before making those decisions, retailers must first ________

o Segment and define their target market

• What is true of customer segmented pricing?

o Segmented pricing practices can cause customer resentment

• What is predatory pricing?

o Selling below cost with the intention of punishing a competitor

What are the four broad characteristics used to classify retail stores?

o Service, product lines, price, and organization

What is the first decision advertisers need to make when developing an advertising program?

o Setting advertising objectives

Internal factors that affect pricing include ________

o The company's overall marketing strategy, objectives, and marketing mix

• Which of the following is true regarding the changing communications landscape?

o The dominance of television, magazines, newspapers, and other traditional mass media is declining

• ) How is price determined using cost-plus pricing?

o The price is set by adding a standard mark-up to the cost of the product

• ) In terms of location, most stores today cluster together. What is the primary reason for this?

o To increase their customer pulling power

• What is the intent of advertainment?

o To make ads and brand content into something that people actually want to watch

• When the only goal of personal selling is to close a sale, a company is using a ________ approach.

o Transaction-oriented

Which is a concern when using optional-product pricing?

o Which products to include in the base price and which to offer as options

• Which statements is true of wholesaling?

o Wholesalers must make decisions regarding their marketing mix

• Which method for setting the total promotion budget is the most difficult to use?

objective and task method

• ) Retailing today requires _________, which means creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping

omni-channel retailing

• Companies now use ______ and supply chain movement software to help recruit, train, organize, manage, motivate, and evaluate channel partners

parter relationship management

At certain stages of the buying process, which element of the promotional mix is most effective in building up buyers' preferences, convictions and actions?

personal selling

• ) _______ are huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores

power centers

• Recently, Amazon.com has been accused of _________, which is the practice of selling products below cost to harm competitors

predatory pricing

• Federal legislation on ______ states that sellers must set prices without talking to competitors

price fixing

• The pricing method in which sellers combine several products and offer a reduced price is known as _________

product bundle pricing

Wholesalers add customer value through the ______ they offer

products and services

The first step in the personal selling process is _______

prospecting

• Which of the following is not a step in an effective sales management process?

prospecting

• Some sellers use 00-cent endings on regularly priced items and 99-cent endings on discount merchandise. This is an example of pricing referred to as ________

psychological pricing

• In which type of market does no buyer or seller have much impact on setting the going market price?

pure competition

• ) Many manufacturers have to pay retailers to get shelf space. This is an example of which type of promotion?

push money

• ) _______ is the promotion mix tool that consists of short-term incentives to encourage the purchase or sale of a product or service

sales promotion

• ) In ______ pricing, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs

segmented

• Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products __________

selectivity

• According to the text, what is the fastest-growing sales trend today?

social selling

• A company holds a news conference to announce a new product launch. Which PR tool are they using in this example?

special events

Which type of retailer carries narrow product lines with deep assortments within those lines?

specialty stores

• ______ reverses the usual process of first designing a new product, determining its cost, and then asking, 'can we sell it for that'?

target costing

) Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and other in-park features. This is called ________

two part pricing

• The company, suppliers, distributors, and customers who 'partner' with one another to improve the performance of the entire system make up the _______

value delivery network

• Using ______, the customer shares real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries.

VMI