Marketing Final 2

In 2011, the fixed costs of a company were $500,000, and its variable costs equaled $150,000. In 2010, the company made an annual profit of $200,000. It has been predicted that, despite a steady growth, the company's variable costs will likely equal $300,000 by 2013. The total costs of the company in 2011 were ________.

$650,000

Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings?

Competition-based pricing

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

Direct and digital marketing

The decision to use an NBA star player to communicate the desirability of Nike basketball shoes represents the ________ process of the communication model.

Encoding

A market-penetration pricing policy should LEAST likely be used for a new product when ________.

The product's quality and image support a high price

Which of the following is most likely true of marketing channel decisions?

They often involve long-term commitments to other firms

Which of the following is true of channel members?

They play specialized roles in the channel

What sets the ceiling for product prices?

customer perceptions of the product's value

What is usually the first step in cost-based pricing?

designing a good product

In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.

direct

Which of the following is most likely a fixed cost?

facility rental payments

When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________ pricing.

good-value

Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products to wholesalers and individual customers. This is an example of ________.

personal selling

Companies with lower costs ________.

can set lower prices that result in smaller margins but greater sales and profits

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

Market-penetration pricing

A(n) ________ system involves a single firm setting up two or more marketing channels to reach one or more customer segments.

Multichannel Distribution

A ________ is made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system

Value delivery network

Which of the following involves introducing less-expensive versions of established, brand name products?

good-value pricing

The greater the number of channel levels in a marketing channel, the ________.

greater the channel complexity

________ is the only element in the marketing mix that produces revenue.

price

What sets the floor for product prices?

product costs

Wholesalers must ________ to maintain their profits.

reduce the number of customers they work with

Which of the following would be considered a service retailer?

restaurants

A large retailer of home improvement and construction products offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how the retailer has differentiated itself through its ________.

services mix

A(n) ________ marketing system consists of producers, wholesalers, and retailers acting as a unified system.

vertical

Plasticine Palace supplies its products exclusively to Arts & Crafts, a chain of stationery stores across the country. The chain then makes the plasticine available to end consumers. This is an example of ________.

An indirect marketing channel

A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole.

Conventional distribution channel

As production moves up, the average cost per unit decreases because ________.

Fixed costs are spread over more units

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

Which of the following is true with regard to price?

Price is the sum of all the values that customers give up to gain the benefits of having a product.

Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while business-to-business companies are more likely to emphasize a ________ promotion strategy.

Pull; Push

The use of short-term incentives to encourage the purchase or sale of a product or service is called ________.

Sales promotion

Factors a company considers in setting its price include all of the following EXCEPT ________.

Value of the product on the pre-owned marker

When KFC came into conflict with its franchisees over the brand's Unthink KFC repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.

Vertical

________ includes all activities involved in selling goods and services to those buying for resale or business use.

Wholesaling

Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their auto body shops to use Glasis paint is an example of how a company uses ________.

a pull strategy

In a communication process, a receiver assigns meaning to the symbols encoded by a company in its advertisements through a process known as ________.

decoding

Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using?

market-skimming pricing

Which of the following should be a manufacturer's first step when designing an effective marketing channel?

Analyze consumer needs

Which of the following promotion categories is most likely to include the use of displays, discounts, coupons, and demonstrations?

Sales promotion