Marketing Exam 3

A manufacturer has fixed costs of $100,000, a variable cost of $10 per unit of output, and break-even volume of 50,000 units. What should the manufacturer's unit cost be in order to break even?

$12

Samsung Mobile plans to launch a new phone with a unit cost of $270 and wants to earn a 10 percent markup on its sales. Samsung's markup price is ________.

$300 Pg 315 Mark up price : adding a standard mark up to cost of product

Which of the following is a major step in selecting advertising media?

(1) determining reach, frequency, impact, and engagement; (2) choosing among major media types; (3) selecting specific media vehicles; and (4) choosing media timing. (465)

Which of the following is a price adjustment strategy?

15)Which of the following is a price adjustment strategy? Pg 336 Discount and allowance pricing: reducing prices to reward customer responses such as volume, purchases, paying early, or promoting the product Segmented Price: adjusting prices to allow for differences in customers , products or locations Psychological pricing: price adjust for psychological effect Promotional pricing: temporary reducing prices to spur short-run sales Geographical pricing: price adjusting to account geographic location Dynamic Pricing: adjusting prices continually to meet characteristics and needs of individual customers and situations International pricing: adjusting prices for international markets

Marketing management must make important decisions when developing an advertising program. Which of the following is NOT one of those decisions?

4 decisions: setting advertising objectives, setting the advertising budget, developing advertising strategy (message decisions and media decisions), and evaluating advertising effectiveness.(452)

Which of the following is true of vertical marketing systems?

A channel structure in which producers, wholesalers, and retailers act as a unified system. One channel member owns the others, has contracts with them, or has so much power that they all cooperate. The VMS can be dominated by the producer, the wholesaler, or the retailer.

The online and mobile equivalent of a pop-up store is ________.

Flash sale site. P406 pdf

In Japan, Budweiser beer flows from Kirin breweries, and Moringa Milk Company produces Sunkist fruit juice. These are examples of ________.

Licensing.

In most cases, what is the most expensive promotion tool?

Personal selling p 440

Which of the following is most likely a fixed cost?

Pg 313 Fixed Cost : cost that does not vary with production or sales example: rent, heat, interest and salaries

Which of the following statements about break-even analysis is true?

Pg 315 Break Even Analysis: setting price to break even on the costs of making and marketing a product or setting price to make target return Divide the fixed cost by the price - variable cost

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.

Horizontal conflict

Describing available services and support is most likely a goal of ________ advertising.

Informative advertising.(454)

Whitelight sells its toothpastes in many convenience stores across the country. This is an example of ________ distribution.

Intensive distribution. P370 pdf

Working with foreign companies to produce or market products or services is known as ________.

Joint Venturing.

Blogs can be used to appeal to specific special-interest groups, about almost any topic.

TRUE

Integrated marketing communications calls for recognizing all communications channels where the customer may encounter the company and its brands.

TRUE

Internal factors affecting pricing include the company's overall marketing strategy, objectives, and marketing mix.

TRUE

While developing an effective integrated communication, once the target audience has been defined, marketers must do all these steps EXCEPT ________.

These are the steps after identifying the target audience: determine the communication objectives, design a message, choose the media through which to send the message, select the message source, and collect feedback p. 432

Which of the following is most likely gained by stores that cluster together?

increase their customer pulling power and give consumers the convenience of one-stop shopping. P404 pdf

A(n) ________ is a set of symbols that the sender transmits.

message p. 431

A charitable trust's appeal which states, "While you are trying to figure out what to get the man who has everything, don't forget the man who has nothing" is an example of a(n) ________ appeal.

moral appeal. p 434

Shoe Trends, a company that manufactures formal shoes for men and women, offers to give its customers $10 for an old pair of shoes when they buy a new pair. In essence, they're reducing the price of the new shoes by $10. What is this type of price adjustment called?

trade -in-allowance pg 335

The company's channel objectives are influenced by all of the following EXCEPT

the nature of the company, its products, its marketing intermediaries, its competitors, and the environment. P 370 pdf

Retailers are classified on characteristics including the amount of service they offer, the breadth and depth of their product lines, how they are organized, and ________.

the relative prices they charge.P393 pdf

Which of the following is NOT a type of off-price retailer?

A retail operation that sells standard merchandise at lower prices by accepting lower margins and selling at higher volume. they include: Independent off-price retailer -An off-price retailer that is independently owned and operated or a division of a larger retail corporation. (Tj max, Home goods, Marshalls) Factory Outlets -An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods. (Jcrew, Levi Gap) Wearhouse club -An off-price retailer that sells a limited selection of brand name grocery items, appliances, clothing, and other goods at deep discounts to members who pay annual membership fees. (cosco, Sams club,j's)

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________.

Advertising(453).

Which of the following is one of the five major promotion tools?

Advertising, Sales promotion, Personal selling, Public relations (PR), Direct and digital marketing p. 425

Which of the following statements is most likely true of public relations?

An effective public relations program continues over months or even years.(471)

A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the company's new products. This is an example of ________.

Buzz marketing p 436.

Which of the following companies uses captive product pricing?

Captive-product pricing: setting a price for products that must be used along with a main product, such as blades for a razor (pg. 334)

Which of the following is NOT one of a wholesaler's channel functions?

Channel functions: Selling and promoting, Buying and assortment, Bulk breaking, Warehousing, Transportation, Financing, Risk bearing, Market information, and Management services and advice p 412

Kellogg ads in the United States promote the taste and nutrition of Kellogg's cereals versus competitors' brands. In France, where consumers drink little milk and eat little for breakfast, Kellogg's ads must convince consumers that cereals are a tasty and healthful breakfast. Which marketing strategy is being followed by Kellogg?

Communication Adaptation

Which of the following companies uses a direct marketing channel?

Companies that no intermediary levels. They sell directly to the consumer. P361 pdf

Which of the following is an internal factor that affects pricing decisions in a company?

Company's overall marketing strategy, objectives, and marketing mix as well as other organizational considerations pg 317

A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance?

Customer value-based pricing pg 309

Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other?

Department stores p393 pdf

________ involves entering a foreign market by developing foreign-based assembly or manufacturing facilities.

Direct Investment

________ refers to the process of putting thought into symbolic form.

Encoding p 431

If used infrequently, price promotions create "deal-prone" customers who wait until brands go on sale before buying them.

FALSE

Producers of convenience products and common raw materials typically seek exclusive distribution, a strategy in which they stock their products in as many outlets as possible.

FALSE

Product costs set the ceiling for prices.

FALSE

Supermarkets are located near residential areas and are open long hours, seven days a week. They carry a limited line of high-turnover goods.

FALSE

The four major communication functions are encoding, decoding, response, and noise.

FALSE

The most common form of advertainment is product placement.

FALSE

The number of products supplied indicates the length of a channel.

FALSE p 361 (it is the number of intermediary levels that indicates the length of a channel).

For a market penetration-price strategy to succeed, which of the following is LEAST likely to be true?

Market-penetration pricing: setting a low price for a new product in order to attract a large number of buyers and a large market share Market must be highly price sensitive, production and distribution costs must decrease as sales volumes increase and low price must keep out competition (pg 333)

Gant Hardware is a huge chain of hardware stores. GantHardware.com helps customers conduct product research and also lets them order directly online or redirects them to the nearest Gant retail store. Which of the following best describes GantHardware.com?

Marketing Websites(517)

The first step in creating effective advertising messages is ________.

Message Strategy (461).

Apple used an album by the band U2 to promote the Apple Watch announcement. Which of the following message execution styles is illustrated in this example?

Musical(462)

Which of the following is true about online direct marketing?

Online direct marketing results in speedier handling of channel and logistics functions. (441)

Which of the following is true of optional-product pricing?

Optional-product pricing : the pricing of optional or accessory products along with a main product. For example a refrigerator coming with optional ice makers (pg334)

Which of the following is true with regard to price?

Price: amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service. Major factor in buyer choice Only element in marketing mix that produces revenue Most flexible

________ consists of creating something new to meet the needs of consumers in a given country.

Product Invention

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets?

Product Line pricing (pg 334)

Which of the following companies uses product bundle pricing?

Product bundle pricing : combining several products and offering the bundle at a reduced price (pg 335)

Which of the following promotion categories is most likely to use the promotion tools of press releases, sponsorships, events, and Web pages?

Public relations p. 425

Suppose Amazon.com has offered you free shipping on your next purchase of more than $35. This offer is an example of ________.

Push Promotion Strategy (441)

A ________ contains from 50 to 100 stores, is like a covered mini-downtown, and attracts customers from a wide area.

Regional shopping center/mall. pg404 pdf

An advertising objective is classified by its primary purpose, which is to inform, persuade, or ________.

Remind. (454)

Suppose Amazon.com has offered you free shipping on your next purchase of more than $35. This offer is an example of ________.

Sales Promotion.(425)

Which message execution style involves presenting survey data indicating that a brand is better than other brands?

Scientific Evidence(462)

Which of the following is a major element of developing an advertising strategy?

Selecting advertising media and creating advertising messages. (458)

________ retailers in the United States are growing faster than product retailers

Service p395 pdf

Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online?

Shorooming p 407

An ad for a new convection oven shows a busy professional woman using the convection oven to cook dinner for her family. Which of the following message execution styles is illustrated in this example?

Slice of life (461)

GameStop sells only video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________.

Specialty store. P394 pdf

________ means marketing a product in a foreign market without making any changes to the product.

Straight Product Extension

Heineken beer is sold successfully in the same form around the world. Which of the following product strategies is illustrated in this example?

Straight Product Extension or Promotion- idk what the right answer is it's one of these two

Conflict that occurs between different levels of the same marketing channel is known as ________ conflict.

Vertical conflict

Major logistics functions are logistics information management, inventory management, transportation, and ________.

Warehousing. P378 pdf

Which of the following is NOT a step in designing an effective marketing channel?

analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives. P 369 pdf

Price discrimination may be used to match competition as long as the strategy is temporary, localized, and_________

defensive rather than offensive. P349 pdf

If demand changes greatly with a small change in price, the demand is ________.

elastic p322

An appeal that attempts to stir up either negative or positive sentiments that can motivate purchase is called a(n) ________ appeal.

emotional appeal p. 434

Advantages of direct and digital marketing for sellers include all of the following EXCEPT ________.

fastest-growing forms of marketing and Engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships. (426)

Wholesalers must ________ to maintain their profits.

find efficient was to deliver value to their customers p 416

Today, most companies are adopting the concept of ________, which carefully combines and coordinates the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.

integrated marketing communications (IMC) p 427,

Delia's is a clothing retailer that targets teenage girls. The company runs coordinated promotions for its catalogs, Web site, and retail outlets. It uses the same models in its catalog, print ads, and Web site. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all aspects. From this information, we can infer that Delia's is using ________.

integrated marketing communications (IMC) p 429.

Department stores such as Kohl's and JCPenney's practice high-low pricing by ________.

involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.(found online)

Marketing logistics includes all of the following EXCEPT ________.

involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit . involves getting the right product to the right customer in the right place at the right time profitably. P376 pdf

Which of the following is true about e-mail marketing messages?

it is used by marketers to send highly targeted messages.(519)

A consumer is reading a magazine with an advertisement, but due to a loud sound he is distracted from reading the advertisement and is not able to grasp its key points. In the context of the communication process, this unplanned static or distortion is called ________.

noise p 431.

A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they charge for models.

price fixing ( pg 349 book)

Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product.

pull p 440

Which of the following is a media measure?

ratings, readership, listenership, and Click through rate(466)