MKTG 409- Exam 4

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?

Above some price level, the quantity demanded would begin to decrease.

Sometimes retailers are offered temporary price reductions for purchasing specified quantities of a product. These offers are used to provide an incentive to handle a new product, to achieve a temporary price reduction, or to stimulate the purchase of an item in large quantities. What is this sales promotion?

Buying allowance

If PepsiCo sets its twelve-pack price to match the price charged by Coca-Cola, Pepsi is using which of the following pricing methods?

Competition-based

Which of the following types of promotion informs potential customers about a product and what it is?

Pioneer

Some critics, including consumer groups and government officials, suggest that certain products should not be promoted because they

are potentially harmful.

Maintaining or increasing market share

can be achieved even if industry sales are flat or decreasing.

A firm can identify changes in public opinion that affect it by conducting

environmental monitoring.

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

external reference prices.

Grant is responsible for the marketing promotions of a small firm of consultants. It is most likely that his firm will use ____ to create and implement its advertising campaigns.

one or two individuals

Competition-based pricing is

used when costs and revenues are secondary to competitors' prices.

If a company increased its price from $100 to $120 and the quantity demanded fell by 40 percent, the price elasticity of demand for this product is

−2.

Provisions of the Robinson-Patman Act, as well as those of the ____, limit the use of price differentials.

Clayton Act

When Volvo's advertising campaign mentions the Volvo CX60 has the highest safety rating of any European sedan, it is using _______ advertising.

Competitive

Scenario 19.2 Use the following to answer the questions. The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China. Refer to Scenario 19.2. If BASF were to price its product in barrels from the factory, before it is loaded on the carrier, this would be an example of ____ pricing.

F.O.B. factory

You are the marketing manager for a company that makes and markets designer sunglasses. Recently, your boss suggested to you that the company should try to get its sunglasses worn by more actors and actresses in movies. He asked you to look into what it would take to make that happen. Which of following promotion activities is your boss referring to with this idea?

Product placement

Which of the following involves building mutually beneficial long-term associations with a customer⎯usually a business customer⎯through regular communications over prolonged periods of time?

Relationship selling

Which of the following prohibits price discrimination that lessens competition among wholesalers and retailers?

Robinson-Patman Act

Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment?

Team selling

You are head of sales and marketing for your firm and you are meeting with the CEO to establish pricing objectives for the upcoming product year. Which of the following factors are you going to consider as you establish your firm's pricing objectives?

The firm's survival

Which of the following statements applies to media planning?

The message content affects the types of media used for an advertising campaign.

Which of the following is true about the evaluation of competitors' prices?

This is done in stage three of the price setting process.

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Trade

When deciding on sales promotion methods to employ, marketers take several factors into consideration. Which factor below is unlikely to affect decisions regarding sales promotion methods?

Type of package

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

breakeven

Lexmark sells some of its color printers for about $100, but the refill cartridges cost over $30 each. Lexmark's pricing strategy would be best labeled as

captive pricing.

An advertising platform should consist of issues that are important to consumers. Selling features should be important to consumers and should be features that

competitive products lack.

One way for a company to measure the effectiveness of its publicity-based public relations efforts is to

count the number of exposures in the media.

The step in developing an advertising campaign that directly precedes campaign execution is

creating the advertising message.

For most firms in the United States, demand curves are

downward sloping.

Communication can be viewed as a circular process because

during feedback, the receiver can be viewed as the source of the message while the original source becomes the receiver.

During a one-minute television ad for Nike, the National Weather Service interrupts to announce a flash flood warning for surrounding counties. Such an occurrence is an example of ____ in the communication process.

noise

Dylan is a sales person for Whole Foods. In his position, he is primarily responsible for seeking repeat sales. Dylan is most likely a(n)

order taker.

Marketers must take steps to make sure that the pricing objectives they set are consistent with the organization's ____ objectives and ____ objectives.

overall; marketing

The management at Allied Electronics is having difficulty in raising the introductory price on system components to cover the increased costs of producing the sensing devices for home security systems. Apparently, Allied used a(n) ____ strategy in pricing these components.

penetration

Scenario 20.2 Use the following to answer the questions. Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services. After reviewing the previous three years' revenue, Glenwood finds that most of its customers bring their pets in for the required annual vaccinations and then only if the animal is ill. Glenwood's objective is to generate more income per customer on an annual basis. The hospital has previously priced its services by charging a flat fee for the office visit, a fee for each vaccine, and a fee for each type of examination beyond the basic office visit. Most customers pay the flat office fee and a fee for a rabies vaccine. Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit, the required rabies vaccine, and additional vaccines that prevent heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program, rather than a one-time annual visit. Refer to Scenario 20.2. Glenwood has decided that it is going to offer a special package offer if the prevention plan is purchased within the first 30 days of each year's time for vaccinations. This type of pricing strategy would be an example of

periodic discounting.

Signs, counter pieces, racks, and self-service cartons are all forms of

point-of-purchase displays.

Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage containers. Sales have been declining in the past nine months and her management team is pressuring her to compete based on price discounts. However, Isabella is aware of the dangers associated with engaging in price competition. She knows that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.

price war

If the push policy is used in promoting a product, the firm

promotes only to the next marketing institution down the marketing channel.

To gain maximum benefit from promotional efforts, marketers must strive to

properly plan, implement, coordinate, and control communications.

Factors such as climate, seasons, and holidays tend to lead to the promotional objective of

reducing sales fluctuations.

Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?" exemplifies the use of ____ advertising.

reinforcement

Mister Sub offers customers a card that allows them to have a free sub for every 7 that have been purchased and provides various discounts throughout the year. The primary promotional objective of programs such as this is

retaining existing customers.

Home Depot is interested in knowing how its efforts to act in a socially responsible manner through its Habitat for Humanity and disaster relief efforts have affected stakeholders' views of the company. Home Depot should conduct a(n)

social audit.

A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)

technical salesperson.

In designing sales territories, a sales manager considers several major factors. The territories must be constructed so that sales potential can be measured; the shape of the territories should facilitate salespeople's activities to provide the best possible coverage of customers; and

territories should be designed to minimize selling costs.

The main problem with using the objective-and-task approach to setting an advertising budget is that

the marketer may experience difficulty when trying to estimate accurately the level of effort needed to achieve goals.

Sales force objectives are generally established for

the total sales force and for each salesperson.

Marketers improve their ability to establish prices appropriately when

they know prices charged for competing brands.

Which of the following is a reason why the use of sales promotion has increase dramatically?

​Retailers are demanding greater promotional efforts from manufacturers to boost profits.

In the ______________, signs or symbols are converted by the receiver into concepts and ideas.

​decoding process