PRINCIPLES OF MARKETING FINAL

A dealer loader is

A gift given to a retailer that purchases a specified quantity of merchandise

The ____ prohibits price fixing among firms in an industry.

Sherman Antitrust Act

Which of the following is the best definition of product features?

Specific design characteristics that allow a product to perform certain tasks

___________ is an advertisement promoting a product and identifying the names of participating retailers that sell the product.

a dealer listing

One advantage of nonprice competition is that

a firm can build customer loyalty.

Adam Marker is the head of a company that produces computer software for production scheduling. The firm is small and presently does not generate enough volume to justify hiring a sales force. The firm is probably using ____ to maintain contact with the firms using its products.

agents

A product mix is best described as

all products offered by a firm

Clothing must be labeled with the country of manufacture, fabric content, and

care instructions

Chronic price wars often benefit ______ in the short run, but they tend to ______in the long run. not consumers; harm wholesalers

consumers; weaken organizations

When Coach agrees to pay Dillard's a certain proportion of the cost of providing television advertising emphasizing Coach purses, Coach is offering

cooperative advertising

National Lumber is evaluating its complete product mix. It wishes to decrease some of its marketing expenditures and streamline its product offerings. National Lumber will most likely look at products in the ____ stage of the product life cycle as possibilities for elimination.

decline

Procter & Gamble makes at least eight different laundry detergents. This is most relevant to the issue of

depth of product mix

_____________ identifies changes in public opinion affecting an organization.

environmental monitoring

A marketer uses only one pricing objective to avoid organizational confusion.

false

An effective approach for dealing with potential unfavorable public relations resulting from a negative event is to discourage news coverage.

false

Marketers have little influence over shaping consumers' concepts or perceptions.​

false

Universal 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. Universal is using a ____ schedule for its advertising.

flighting

Salespeople strive to match their influencing tactics to the prospect. Most prospects respond to

information exchange and recommendations.

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

institutional;product

Mass media advertising is used less frequently today because of

its high cost and lower effectiveness in reaching some target markets.

Adidas is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.

market share

A brand manager in a multiproduct firm would be responsible for

performance of a specific brand

Catherine is out shopping with her friends for the day. While evaluating a decision to purchase a handbag, she says, "People notice when you buy the most expensive brand of a product." Catherine is most likely a _____ consumer.

prestige-sensitive

Three major ways in which marketers engage in product differentiation are

product quality, product design and features, and product support services.

Promotion can help keep prices lower because

promotion of prices intensifies price competition.

Lowinski Lawn Care Equipment Company manufactures lawn mowers and other lawn care products. Its latest lawn mower comes with blades that incorporate new technology that allows them to last five times longer than typical blades. The lawn mower also includes a comfort grip that is easier to hold and an updated style design available in a variety of colors. Lowinski Lawn Care Equipment Company is most likely differentiating itself through _____ with its blades and through _____ with its handle and styling.

quality;design

The purpose of ______ discounts is to help the seller maintain steady production throughout the year.

seasonal

What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?

status quo

The cost per thousand (CPM) indicator shows

the cost to expose 1,000 people to a one-page magazine advertisement.

Price is a key element in the marketing mix because it relates most directly to

the generation of total revenue

A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during

the preapproach

Pricing objectives should be stated explicitly, stated in measurable terms, and specify a

time frame for achieving them.

The Tommy Bahama Company utilizes a special strategy to sell its ECO-shirt line. Its basic promotional tool is the discount. These discounts offered to middlemen for performing certain channel activities are referred to as ____ discounts.

trade

A product line includes a group of closely related product items that are considered to be a unit because of marketing, technical, or end-use considerations.

true

A product need not be a physical product.

true

A salesperson's performance is often compared with the performance of other salespeople operating under similar conditions.

true

Among others, management recruits from within the firm or from recommendations of individuals by current employees.

true

An early-bird special offered by a restaurant during off-peak hours is an example of the secondary-market pricing strategy.

true

Competition-based pricing is important if competing products are almost homogeneous or if price is the key variable in the marketing strategy.

true

Cost, speed, load flexibility, dependability, frequency, and accessibility are considered when choosing a transportation mode.

true

Designing a product that customers perceive as different from competing products is an example of product differentiation.

true

Differential pricing means different buyers pay different prices for the same quality and quantity of product.

true

Factors affecting pricing decisions can include demand, distribution, and the way in which the product is promoted.

true

Head-to-head positioning can be appropriate even when the price is higher.

true

If possible, the salesperson should handle objections only when they arise.

true

The local florist advertises a discount on arrangements during the month of April because the anniversary of the store's opening is in April. This is an example of special-event pricing.

true

Brand uniqueness is not important in nonprice competition.

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

An organization that uses pricing to increase its market share would likely set the brand's price below those of competing brands of similar quality.

false

Cooperative advertising refers to advertisements promoting a product and identifying participating retailers that sell the product.

false

Cost-based pricing results in a high price when demand is high and a low price when demand is low.

false

Delivery, installation, financing, repair, warranties, and guarantees are all examples of product features.

false

Demand-based pricing strategies are easy to use.

false

Distribution outlets become more difficult to secure during the growth stage of a product's life cycle because of aggressive competition.

false

Drawing together the processes and functions of two or more stages of the channel under one management is horizontal integration.

false

Exclusive dealing occurs when a supplier stipulates that a channel member must purchase additional products besides the one it wants.

false

Generally, a salesperson's performance is judged by comparing it with predetermined standards rather than by comparing it with the performance of other salespeople.

false

In a comparative advertisement, advertisers point out that their brand has characteristics that are superior to those of competing brands, but they do not actually mention the brand names of competitors.

false

Mass media is used more frequently today than in the past.

false

Most organizations place far more emphasis on price than on product quality.

false