Practice Test 4 Study

Slow feedback, high absolute-dollar outlay, and difficulty in measuring effects on sales are disadvantages of which promotion mix ingredient?

Advertising

While on their family vacation, the Andersons realize they left their camera at home. They purchase a disposable camera at an amusement park using their credit card, but never interact with a person. What type of retailing did this transaction most likely involve?

Automatic vending

You are playing a marketing trivia game similar to Jeopardy. Your job is to identify the correct form of nonstore retailing that would work best for an inexpensive nail polish product. The marketer of the nail polish has specific criteria he wants to meet. You are provided with the following: 1. The product does not have high enough margins to warrant sales personnel. 2. The marketer wants the product to be sold in high-traffic areas so that consumers can pick up the nail polish out of convenience. Based on these two criteria, which of the following would be the best type of nonstore retailing for the nail polish product?

Automatic vending

What type of retailing began with Montgomery Ward in the late 1800s?

Catalog marketing

Your company is planning to launch a new line of women's athletic apparel in the next six months. In order to create some enthusiasm in the market for your new products, you are working with an outside agency on the promotional ads that will run during some popular sporting events. Which of the following should be the primary objective for these promotional ads?

Create awareness

_____________ identifies changes in public opinion affecting an organization.

Environmental monitoring

______ advertising supports organizational images, ideas, and political issues while ______ advertising touts the uses, features, and benefits of goods and services.

Institutional; product

Mario is preparing the new strategic plan for a large retailer. Several aspects of the retailer are to be evaluated, in order to make plans and set goals. Of all the issues that Mario can select in developing the new strategic plan, which of the following is the least flexible?

Location

Which retail store invests the most in atmospherics?

Neiman Marcus

Wendy Robinson, account representative for EXpert Advertising, tells D'Orazio Tile Products that she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15%. This approach is an example of which of the following methods of determining advertising expenditure levels?

Objective-and-task

Which of the following is not a public relations tool?

Product sample

When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends and through social media. After a few weeks, a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas. Refer to Scenario 15.1. Which of the following is not an integrated communications tactic used by Toyota?

Publicity

Which of the following offer the narrowest range of products?

Specialty-line wholesalers

Which type of retail outlet can have up to 200,000 square feet?

Superstores

Some of the posttest methods for measuring advertising effectiveness are based on how well consumers remember advertising and include (1) recognition tests and (2) recall tests. What is the basic difference between these two approaches?

The actual ads are shown in the former but not in the latter.

Barnie works with a group of farmers who provide him with a regular supply of a variety of fresh vegetables. He picks up their produce and has a regular route of grocers and restaurants that purchase quantities of the items he has on any given day. Barnie's operation is which type of wholesaler?

Truck

What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?

Truck wholesalers

Marketers of seasonal products tend to emphasize

advertising

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

are potentially harmful.

Exterior and interior characteristics such as layout, displays, color, and lighting are all elements of a store's

atmospherics

Frieda is considering advertising her new restaurant on the radio to attract more customers. She knows that in order to attract listeners' attention on the radio, it will be important for her to

be both informal and conversational in tone.

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.

Koyo-Sha Co. manufactures and sells polishing materials and abrasive products. This Japanese-based company has 140 employees, but these employees do not engage in selling the product to end consumers. Instead, individuals not directly employed by Koyo-Sha Co. purchase products from the firm and then resell them to end consumers. Those individuals who are most successful are adept at forming relationships with end consumers, usually through face-to-face interactions. Koyo-Sha Co. receives money from the sales of its products, and the individual receives a commission. Koyo-Sha is most likely a

direct selling firm.

The last stage in the development of any advertising campaign is

evaluating the effectiveness of advertising.

General Mills used a panel of consumers to evaluate its Cheerios campaign featuring children who read the cereal box and try to persuade their parents to watch their cholesterol. These consumers judged the advertisements prior to the execution of the advertising campaign. This is an example of a(n)

pretest

By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange Growers Association attempted to stimulate

primary demand.

With respect to inventory, wholesalers can help retailers with all of the following except

production

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

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

When a salesperson varies the physical distance between himself and a customer he is using

proxemic communication.

Ross's, an off-price retailer featuring clothing and housewares, communicates in news story form about its organization and its efforts to support local children's hospitals. This information is transmitted through mass media at no charge and is therefore called

publicity

The Sharper Image likes to use nonpersonal communication in news story form such as press releases for its new and improved products. This is an example of

publicity

The identification of an advertisement's sponsor is the

signature

Freddy works at Apple. Apple just released an upgraded product offering for its iPhone. While the entire marketing department is working on advertising and public relations for the iPhone launch, Freddy's assignment is to illustrate the highly visible features of the product in a print publication. Most importantly, he wants to show off and describe the improved features that differ from the previous version. To achieve his objective, Freddy would most likely use a(n)

captioned photograph.

Calhoun Produce, a ____, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold.

commission merchant

Kevin works in the public relations department of his company. He sends a news release about a new product offering to several newspapers and television stations. Kevin knows from past experience that even when the media use his news releases, they often release the information at inopportune times. They will also sometimes cut out what Kevin believes are the most important points to make the news fit. However, Kevin accepts these disadvantages because free publicity offers the advantage of

credibility

Compared with other types of retailers, department stores compete mainly on the basis of

customer services.

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

decoding process

When off-price retailers obtain too much in-season, high-quality merchandise, tension between them and ____ builds.

department stores

Location is important to a retailer because

location determines the trading area from which the store must draw its customers.

The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing ____ for the campaign.

objectives

Arnold and Erin are discussing the media plan for the opening of their new bar/laundromat called Soap and Suds. He tells her that while he agrees that ____ has tremendous impact, he does not feel that the upfront costs for such a campaign are in the modest budget that presently exists.

television

The process of putting one's thoughts (meaning) into signs (symbols) is called

the coding process.

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.

A retailer is an organization that purchases products for the purpose of reselling them to

ultimate consumers.

Candy and Sarah own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ____ wholesaler for these entrepreneurs.

cash-and-carry

Sparkle Jewelers is a manufacturer of fine jewelry that is expanding its use of direct marketing. Management has narrowed the options down to two, but has not decided whether to use ____ where it would mail potential customers brochures featuring the company's entire product line or _____ where it would feature a handful of products on QVC or the Home Shopping Network.

catalog marketing; television home shopping

Annette is a manager at a small, independent grocery store. Part of her job is to analyze sales data and information on consumers to determine how much of different competing products she should order for her store and how much shelf space to give to each of the competing brands. Annette is working on

category management.

Logos, business cards, stationery, signs, and promotional materials that make firms immediately recognizable comprise their

corporate identity materials.

Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to

encourage product trial.

In one corner of its magazine advertisement for office copiers, Lexmark places a small box asking for the names and addresses of individuals or companies seeking more information. Lexmark has included this box to facilitate ____ for this communication.

feedback

Disney decided to run its new commercials for all of its theme parks several times a day for three weeks and then not at all for two weeks. It will then run the commercials again for three more weeks. Disney is using a ____ schedule for its advertising.

flighting

Merchant wholesalers can be divided into two basic categories:

full-service and limited-service.

Artwork, a major part of most advertisements, consists of the

illustration and the layout.

Jenna Reese is working on developing a magazine advertisement for Planet Fitness, a health and fitness club. She knows what she wants the advertisement to say and the illustrations she wants to use, but she is having a tough time putting it all together. Jenna is having trouble determining the

layout

All of the following are examples of full-service wholesalers except

mail-order wholesalers.

Manufacturers' agents offer products that are both

noncompeting and complementary.

The two major types of product advertising are

pioneer and competitive.

If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through a

press conference.

Sam's Bistro is a family restaurant that earns higher revenue when diners finish quickly, opening up their table for a new party. The manager is updating the atmosphere of the restaurant to entice customers to eat quickly and is repainting the interior _____, which is associated with impulsivity, and playing _____ music, which encourages customers to eat quickly and leave.

red; fast pop

A shopping center containing a Macy's, a Sears, and a JCPenney as well as dozens of specialty shops, restaurants, and entertainment is most likely a

regional shopping center.

Use the following to answer the questions. The manufacturers of Whizz, a new laundry detergent, are developing their promotional plan for the first year. They know they want to use an integrated communications strategy and are considering the use of advertising through TV and magazines, coupons, public relations, sales promotion, and viral marketing. They are not sure when to use each of these methods, however, and have asked for your advice. Refer to Scenario 15.2. If the manufacturers of Whizz were to partner with Whirlpool to place a bottle of Whizz in each new washer that is purchased during the first year, this would be an example of

sales promotion.

Amelia presents an identification card at the supermarket checkout and has a microcomputer attached to her TV. Information from both of these is sent to a research facility. Amelia is providing

single-source data.

When individuals' behaviors are tracked from television sets to checkout counters using equipment provided by the marketer, this is known as

single-source data.

A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience is a

source

When developing an advertising campaign, benchmarks need to be included in the

statement of advertising objectives.

When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends and through social media. After a few weeks, a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas. Refer to Scenario 15.1. Toyota's act of giving the opinion leaders a new vehicle for two weeks is best described as an example of

buzz marketing.

Eric operates a store called Cartridge World, which sells office supplies. Eric enjoys operating Cartridge World, especially because he has ready access to management expertise and promotional support. He was able to open Cartridge World with limited capital. However, there are disadvantages Eric faces as well. For him, one of the biggest disadvantages is that he does not have complete control over his operation. Cartridge World is most likely a

franchise

AmeriSource is a distributor of pharmaceutical products and related health-care services. It merged with Bergen in 2001 to become AmeriSourceBergen. It provides a wide assortment of pharmaceutical products to health-care institutions such as hospitals. It also provides technical advice, equipment, and support for health-care institutions throughout the United States. AmeriSourceBergen is best classified as a

full-service wholesaler.

If a retailer needed help with store design and training sales personnel, it would most likely use the services of a

full-service wholesaler.

An ad's ____ is designed to attract readers' attention and develop interest so that they will read the entire advertisement.

headline

A direct-response information form found in a magazine advertisement that allows customers to send for more information has a primary objective of

identifying prospects.

Hutton Industries wants to hire an intermediary to help with the distribution of its products. Management needs an intermediary that will represent the company as sellers, but also wants to retain control over pricing and promotion decisions. It should most likely hire a

manufacturers' agent.

The Kia Soul automobile is currently positioned as a vehicle for young adults. Kia's message to the target market is that it is exciting, youthful, and trendy. However, Max and his friends who are 20-somethings just like the music and the hamster spokescharacters. They don't care about the car itself. The message that Kia originally encoded and the meaning Max and his friends ultimately decoded

may be different because of noise.

The use of multiple distribution channels that complement organizations' brick-and-mortar stores with websites, catalogs, and apps where consumers can research products, read other buyers' reviews, and make actual purchases is known as

multichannel retailing.

All of the following are differences between warehouse clubs and discount stores, except

warehouse clubs carry a deeper selection of fewer product categories than discount stores