Marketing Chapters 17, 18, 19

The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland?

$30

Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.

1,167

You are an experienced and very successful sales rep for a major consumer products company. You are having lunch with a group of newly hired sales reps who just got their assigned sales territories. This is a very ambitious group of new hires, which is evidenced by the fact that they offered to buy you lunch if you would let them pick your brain about successful sales tactics. ​ Which of the following personal selling success tips will you share with the new hires? ​

Be thorough in your preapproach by doing your homework on your prospects.

Which of the following statements is true about team selling?

It is appropriate for expensive, complex, high-tech business products.

​Which of the following statements is not true about the follow-up step of the personal selling process?

Salespeople should only follow up with dissatisfied customers

If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur

a marginal cost

Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n)

advertising objective

When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it was using

advocacy advertising

Rick is a sales representative for Lucent Technologies. He has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature he needs. Rick feels he is ready for the ____ step of the personal selling process.

approach

Trading products is the oldest form of exchange, and is commonly known as

barter

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

Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as

cold canvassing

Dan is responsible for developing the promotional campaign for Under Armour's new line of footwear for teens. He will be writing advertising campaign objectives that are aimed at making the target customers' attitudes more favorable toward Under Armour, which should be stated in ____ terms.

communication

Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as

comparative

If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ____ approach.

competition-matching

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

competitive

You are the head of sales training for a major financial services firm in New York City. You are conducting a sales training class for a group of new sales trainees. You are a strong believer in using a structured approach to personal selling.Based on this information, which of the following personal selling process steps are you going to tell the trainees to perform first?

develop a database of potential customers

For most firms in the United States, demand curves are

downward sloping

Cheyenne calls to see if her customer's new hardwood floors were installed correctly

during the follow-up step

Even though salespeople do not use the exact same sales methods, they do go through the same general selling process.

false

Following up involves listening to a customer's response after finishing the presentation and overcoming those objections.

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

Using referrals falls under the approach step in the personal selling process.

false

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

The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising

frequency

Todd is developing a print advertisement for Aflac. He knows that the ______ is a critical component of the copy because _____.

headline; it is often the only part of the advertisement that is read

If Pacific Power and Light increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be

inelastic

The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as

institutional advertising

A major disadvantage of personal selling is that it

is very expensive per contact

Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on

listening skills

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

marginal revenue

If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where

marginal revenue equals marginal cost

A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n)

media plan

While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may

mention objections the customer had not thought of

Price is considered to be the variable in the marketing mix that is

most flexible

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

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

Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in

price competition

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

Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is

prospecting

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

quantity demanded goes down

Jenny is making a sales presentation to a retailer that may be willing to carry her line of soaps. During the presentation, she will handle any objections as they are made. This is because when she anticipated and countered potential objections in prior presentations, she found that she

raised objections that the prospect would not have had.

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

reinforcement

The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an established brand. The ad also mentions Crest's advantages and benefits. Crest's advertising would be classified as

reminder

When marginal cost is equal to marginal revenue, the firm should

stop producing additional units to maximize profits

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 directly to

the generation of total revenue

If a product has an inelastic demand and the manufacturer raises its price,

total revenue will increase

"Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ____ when he made this statement.

trial close

Personal selling is generally the most expensive element in the promotion mix

true

Carla is stopped by a researcher at a shopping mall and asked what was the last television commercial she remembers seeing. This is an example of a(n)

unaided recall test

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should

use price symbolically

If Carnival Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Carnival's demand would be

elastic

Abby is a marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating

at a loss

The owner of Big Bike Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Bike Motorcycles?

building rent

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

Kohl's, a department store 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

During the duration of an advertising campaign, Verizon Wireless ran television advertisements at a steady rate throughout the week and intensified its message with newspaper advertising in many major newspapers in the Sunday paper. Verizon Wireless used a(n)____ media schedule.

pulsing

In the cold canvass technique, the salesperson calls on potential customers without their prior consent.

true

One of the best ways to overcome a prospect's objections is to anticipate them and to deal with them before the prospect has an opportunity to mention them.

true