Marketing Final Chapters 11-18

customer service

The ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience.

multichannel marketing

The blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.

bundle pricing

The marketing of two or more products in a single package price.

value pricing

The practice of simultaneously increasing product and service benefits while maintaining or decreasing price.

direct marketing.

The promotional mix consists of communication tools that include advertising, public relations, sales promotion, personal selling, and

value will increase.

Value takes into account both benefits and price. If price remains the same but benefits increase, then

pull

When a pharmaceutical company places an ad in a home and garden magazine for its new arthritis drug, it is using a ________ strategy.

multichannel

Most of Lands' End's revenues come through catalog and Internet sales, but it also operates several retail stores and factory outlets. This makes Lands' End an example of a(n) __________ marketer.

2,000,000 pairs

North Safety Products manufactures butyl gloves that offer permeation resistance to gas or water vapors for workers who use dangerous chemicals like ketones. The company has fixed costs of $10 million for its butyl glove production and unit variable costs of $3 per pair. If the company charges $8 per pair, how many pairs of gloves must it sell to break even?

post-test the promotion.

One step in evaluation of the promotion program is to

above-, at-, or below-market pricing

Setting a market price for a product or product class based on a subjective feel for the competitors' price or market price as the benchmark.

customary pricing

Setting a price that is dictated by tradition, a standardized channel of distribution, or other competitive factors.

target return-on-sales pricing

Setting a price to achieve a profit that is a specified percentage of the sales volume.

target return-on-investment pricing

Setting a price to achieve an annual target return on investment (ROI).

target profit pricing

Setting an annual target of a specific dollar volume of profit.

odd-even pricing

Setting prices a few dollars or cents under an even number.

skimming pricing

Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product.

forward integration.

Sherwin-Williams, the paint manufacturer, now also operates retail stores in a strategy known as

Increasing volume substantially reduces production costs.

Sjcam used a penetration pricing strategy to introduce its Legend action camera to compete with the latest GoPro offering. Which of the following conditions would argue for using a penetration pricing strategy when introducing this new camera?

fields of experience

Some well-known message problems have occurred when U.S. companies have taken their messages to cultures with different ________, resulting in misinterpretations.

pricing objectives

Specifying the role of price in an organization's marketing and strategic plans.

cost-plus pricing

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price.

$7,500,000

The Precision Writing Instruments Company makes a high-end pen known as the Cordova. Materials cost per pen is $6. Labor cost per pen is $5. Production overhead is $1,000,000. Advertising and promotion is $1,000,000. What is the total cost for sales of 500,000 units of the Cordova design?

total logistics cost

The expenses associated with transportation, materials handling and warehousing, inventory, stockouts (being out of inventory), order processing, and return products handling.

price (P)

The money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

there are many small manufacturers and many small retailers.

The most indirect marketing channel is employed when

price elasticity of demand

The percentage change in quantity demanded relative to a percentage change in price.

barter

The practice of exchanging products and services for other products and services rather than for money.

value

The ratio of perceived benefits to price; or Value = (Perceived benefits ÷ Price).

corporate

The three major types of vertical marketing systems are administered, contractual, and

total cost (TC)

The total expense incurred by a firm in producing and marketing a product. Total cost is the sum of fixed cost and variable cost.

total revenue (TR)

The total money received from the sales of a product.

supply chain

The various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users.

logistics

Those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost.

functional discounts.

To reward wholesalers and retailers for marketing functions they will perform in the future, a manufacturer often gives

dynamic

Uber and Lyft customers often complain about the practice of "surge" or "prime-time" pricing used by these companies during periods of peak demand. This is an example of a __________ pricing policy.

Prestige pricing is

setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

Mass selling is

the opposite of customized interaction, meaning a single message is delivered to the whole group of prospective buyers.

A marketing channel

makes possible the flow of products and services from a producer, through intermediaries, to a buyer.

pricing constraints

Factors that limit the range of prices a firm may set.

decline

At which stage in the product life cycle would a company spend little money on promotion?

source

A North Face ad shows a rock climber hanging underneath a treacherous overhang, with the tagline, "Never stop exploring." In terms of the communication process, the ________ would be North Face.

break-even chart

A ________ visually shows that the total revenue curve and the total cost curve intersect at a point of zero profit.

an agent.

A channel intermediary in the consumer market that represent sellers but does not actually take title to products is called

supply chain management.

A division of IBM works out of 360 locations in 64 countries, tracking more than 1.5 million assets for both IBM and its clients. The division also deals with about 23,000 suppliers in nearly 100 countries. The individuals who monitor these transactions are engaged in

economic power

A firm can become a channel captain because it is typically the channel member with the ability to influence the behavior of other members. Which of the following is the most likely source of that influence?

demand curve

A graph that relates the quantity sold and price, showing the maximum number of units that will be sold at a given price.

selective distribution

A level of distribution density whereby a firm selects a few retailers in a specific geographical area to carry its products.

intensive distribution

A level of distribution density whereby a firm tries to place its products and services in as many outlets as possible.

exclusive distribution

A level of distribution density whereby only one retailer in a specific geographical area carries the firm's products.

objective and task budgeting

A marketing manager had a goal to improve market share for his paper plates by 2 percent in the coming year, and he felt he'd need to run television ads for two months as well as create a social media campaign in order to accomplish this. He priced the advertising he planned to use and set the budget accordingly, using which promotional budgeting technique?

reverse logistics

A process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal.

disintermediation

A source of channel conflict that occurs when a channel member bypasses another member and sells or buys products direct.

customer service

A supply chain manager's key task is to balance the four ________ factors against the six total logistics cost factors.

break-even analysis

A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.

standard markup pricing

Adding a fixed percentage to the cost of all items in a specific product class.

dual distribution

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.

share and operate systems for order processing, transportation scheduling, and inventory and facility management.

An important feature of supply chain management is its application of sophisticated information technology that allows companies to

vendor-managed inventory (VMI)

An inventory management system whereby the supplier determines the product amount and assortment a customer (such as a retailer) needs and automatically delivers the appropriate items.

advertising

Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

odd-even pricing

Apple offers its iPhone XS for $999, under the presumption that consumers see the smartphone as priced at "something over $900" rather than "about $1,000." This is an application of what pricing strategy?

channel conflict

Arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.

facilitating

As part of its ________ function, Macy's issues credit cards to consumers so they can buy now and pay later.

market share

Boeing has often cut its prices drastically to try to maintain its 60 percent of sales of commercial aircraft as it competes with Airbus. As a result of its ________ objective, it encountered losses.

a consistent message across all audiences.

Central to integrated marketing communications (IMC) is

$6,000

College students pay tuition, fees, and other charges each year to attend their educational institution. Using the price equation, what is the final price or cost to attend college for a typical semester based on the following data for an in-state student: tuition = $4,000; technology fee = $25; healthcare insurance = $50; student activity fee = $25; room & board = $5,000; books = $500; transportation & parking = $400; financial aid from work study (10 hours per week at $10 per hour wage) = $100 for 15 weeks; scholarships = $2000; and a discount of $500 for taking 15 credit hours?

marketing channel

Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

loss-leader pricing

Deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention to it in hopes that they will buy other products with large markups as well.

direct marketing

Factors such as the need for improved reliability and security in postal systems and new government regulations represent important challenges for ________ in the global market.

differentiate one brand of device from another.

Fitness trackers are in the growth stage of the product life cycle. A manufacturer selling one of these devices would most likely use advertising to

lead generation.

Four Seasons Hotels sell private residences in several of their properties and send direct mail to prospective residents asking them to request additional information on the telephone or through a website. In terms of direct marketing, this is known as

contractual vertical marketing systems.

Franchising is a variation of

a strategic channel alliance.

General Mills and Nestlé work together to distribute General Mills products in about 140 international markets from Mexico to China. This distribution arrangement is known as

place

Having a Chevron gas station located near a car rental return location is an example of __________ utility.

reverse logistics.

Hewlett-Packard's recycling service for computers and printers is available today in more than 73 countries, regions, and territories. Hewlett-Packard has recycled about 3 billion pounds of used electronic products and supplies to be refurbished for resale or donation or for recovery of materials. Hewlett-Packard is practicing

A firm must drive down logistics costs as long as it can still satisfy customer requirements.

How is customer service related to logistics management?

sales promotions

If ________ are conducted continuously, they lose their effectiveness.

quantity discount.

If you buy fewer than 10 pairs of UVex Clear UVExtreme safety eyewear for your employees, the cost is $7.40. But if you buy 10 or more pairs in a single purchase, the price per pair is reduced to $6.85. This is an example of a

dual distribution

In a strategy known as ________, Hallmark sells its Hallmark greeting cards through Hallmark stores and its Ambassador brand of cards through discount and drugstore chains.

awareness.

In the hierarchy of effects, the first stage is known as

the percentage change in quantity demanded relative to the percentage change in price.

Price elasticity of demand refers to

vertical marketing systems

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

profit equation

Profit = Total revenue − Total cost; or Profit = (Unit price × Quantity sold) − (Fixed cost + Variable cost).

quantity sold

Profit as calculated from the profit equation can be challenging to predict because the ________ varies with the chosen price, and can also impact the variable costs through production efficiencies.

prestige pricing

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.

penetration pricing

Setting a low initial price on a new product to appeal immediately to the mass market.

inform

What is the promotional objective of the introduction stage of the product life cycle?

best satisfy the buying requirements of the target market.

When choosing a marketing channel and intermediaries, marketing executives typically consider, among other things, which will

personal selling

Which element of the promotional mix is characterized by a customized interaction that is extremely expensive but very persuasive and likely to yield immediate feedback?

public relations

Which element of the promotional mix often has the highest level of credibility in consumers' minds?

an allowance

Which of the following is NOT an example of a price?

bait and switch

Which of the following is an example of deceptive pricing?

warehousing

Which of the following is considered a part of total logistics cost, like transportation and order processing?

A message was repeated very frequently on radio and television.

Which of the following is not a factor that would be considered noise in the communication process?

promotional discounts

Which of the following is not a pricing constraint?

set the budget

Which of the following occurs during the planning stage of the promotion decision process?

A unique feature of these channels is that they combine electronic and traditional intermediaries to create time, place, form, and possession utility for buyers.

Which of the following statements regarding Internet marketing channels is most accurate?

Many customers believe direct marketing saves time, is entertaining, and offers privacy.

Which of the following statements regarding direct marketing is most accurate?

cleaning supplies and housekeeping wages

Which of the following would be an example of a variable cost for a hotel like the Marriott Marquis Hotel, which caters to an upscale clientele?

Price per unit

________ represents the vertical axis of a demand curve graph.