Marketing final

Many products, such as candy, soft drinks, and gum are sold via intensive distribution. However, this strategy has a major drawback. What is it?

The manufacturer must give up a good degree of control over pricing and product display.

The most basic benefit of marketing channels is _______ where channels reduce the number of contacts necessary to exchange products

contact efficiency

Price elasticity is defined as

customers' responsiveness or sensitivity to changes in price

To be successful, firms must move potential customers beyond mere interest in the product. Good promotion will stimulate ______ by convincing potential customers of the product's superiority and its ability to satisfy specific needs.

desire

With respect to the different components of the total product offering, supplemental products play the important role of:

differentiating the product offering from competing products.

In a recent campaign, IBM advertised that it provides infrastructure and solutions for e-business. Interestingly, these messages did not name the company's products or explain how their infrastructure and solutions actually work. What type of advertising is IBM using?

instituitonal

The ________ marketing strategy is what the firm wants to happen---it is the firm's planned strategic choices that appear in the marketing plan itself

intended

Which member of the marketing channel has the primary responsibility of fulfilling the channel's main functions

it does not matter

In most marketing channels for consumer products, the balance of power has shifted to ______ due to their size and control over information

mass merchandise retailers

The Fairmont Hotel is widely known for its exceptional quality and impeccable customer service. Not surprisingly, the Fairmont sets pries at the top end of all competing hotels. Which pricing strategy is the Fairmont using?

prestige pricing

Which of the following statements best describes a channel that is effective?

A channel that provides the best in terms of time, place, and possession utility

In terms of marketing structure, what type of structure coordinates and manages all marketing activities and decisions from the top of the marketing hierarchy?

A centralized marketing structure

Which of the following sales promotion methods would you recommend to a packaged goods marketer who wants to stimulate trial of a new product?

A free sample of the product

Assume a customer planning to purchase a PS3 gaming console made this statement "Given the expectation and all the hype about the new PS3, it ought to be the best gaming console ever made. "What type of expectation does the is customer have about the PS3

A normative expectation

Which of the following statements best describes a channel that is efficient?

An integrated channel that reduces redundancies and waste

Why is the demand for most services such as popular restaurants extremely time and place dependent?

Because customers must be present for service to be delivered

Unlike tangible goods, services tend to be susceptible to inconsistency and variations in quality. Why?

Because services depend on people for their delivery

If you purchase a notebook computer from Dell, you will note several brand insignias on the outside, such as Dell, Intel, and Microsoft Windows. What type of branding stately does this example represent?

Co-branding

Because the company was angered by the actions of its resellers, Acme Manufacturing decided to slow down deliveries and postpone product availability to these resellers. What type of power is Acme wielding?

Coercive power

One of the most common marketing goals during the introduction stage of the product life cycle is to:

Conduct test marketing studies

Most firms today compete in mature markets characterized by communization. In these cases, the _________ typically becomes incapable of differentiating the product offering from those of the competition

Core product

In times past, developing and implementing the "right" marketing strategy was all about ______. In today's economy, however, that emphasis has shifted to developing strategies that attract and retain customers over the long term

Creating a large number of transactions in order to maximize the firm's market share

_________ is defined as a business philosophy aimed at defining and increasing customer value in ways that motivate customers to remain loyal.

Customer relationship management

Which of the following pricing practices is widely used in business markets but not in consumer markets?

Geographic pricing

At WainPort Industries, the firm's senior managers approach marketing implementation with the belief that marketing strategy should be developed at the top of the organization and then transmitted to lower levels where frontline managers and employees implement it. What implementation approach is being used at WainPort?

Implementation by Command

Which of the following IS NOT a function or potential function of packaging?

Integration

Which of the following is perhaps the main advantage associated with the use of advertising?

It is an extremely cost efficient way to reach a large number of people

Although the product is at the heart of marketing strategy, it is important to remember that the product offering itself is of little value to customers. The real value that a product offering come from

Its ability to deliver benefits that enhance a customer's situation.

When a firm begins to charge high fees for additional services to non-profitable customers, it has determined that the _____ of those customers is too low to warrant added efforts at maintaining a relationship with them

Lifetime value

In terms of marketing channel functions, which of the following statements describes the concept of discrepancy of quantity?

Manufacturers prodsuce large quantities; customers usually want only one item

A _______ is an organized system of marketing institutions through which products, resources, information, funds and/or product ownership flow form the point of production to the final user.

Marketing channel

Because they are cost effective and beneficial to ensuring vconsitency and standardization within the marketing program, centralized marketing structures are best suited for which of the following strategies?

Operational excellence

In sercice offerings, the core product is typically composed of three interrelated dimensions. What are these dimensions?

People, processes, and physical evidence

While following a competitor's lead in pricing is acceptable, there can be no signaling of prices to a competitor. This illegal practice, called _______, occurs when two or more competitors collaborate in setting prices.

Price fixing

Which of the following statements is TRUE with respect to the relationship between price and revenue

Price its must be offset by an increase in sales volume to keep the same level of revenue

To compete in the fast-growing hybrid segment, Honda introduced the Civic Hybrid with unique styling and great fuel economy. Which product development strategy has Honda implemented

Product line extension

In the context of IMC strategy, what is the difference between public relations and publicity?

Publicity is more narrowly defined and focused on gaining media attention

_________ refers to the degree of superiority of a firm's goods or services. It s a relative term because it can only be judged in comparison to competing products or when compared to an internal standard of excellence

Quality

Since the production of the Atkins diet, many food and beverage marketers have focused on the low carbohydrate counts in their products

Reposition competing firms and their products

Which of the following firms is most likely to adopt a decentralized marketing structure in order to promote creativity and flexibility

Ritz-Carlton

Assume Kia has developed a new product idea to launch a midsize pickup. Currently , Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process.

Screening and Evaluation

What is the basic difference between the seller's and the buyer's perspectives on pricing?

Sellers tend to inflate prices; buyers tend to see prices as being lower.

Larger financial institutions now offer a wide range of services under one roof, from banking to stock trading, These institutions have moved away from increasing their market share to instead focus on increasing their:

Share of customer

__________ is/are considered to be the "glue" of successful implementation that binds the entire organization together as a single, functioning unit?

Shared goals and values

Mallory is an avid collector of antiques. She spends practically every weekend traveling to small towns and antique shops in search of unique antique treasures. For Mallory, antiques are a perfect example of a

Specialty product

Overall, what is the major disadvantage associated with the use of public relations and publicity?

The firm has limited control over how the message will be delivered or interpreted

One of the lines between strategic planning and marketing implementation is interdependency, which refers to the fact that: The marketing plan affects how it will be implemented, and implementation affects the marketing plan

The marketing plan affects how it will be implemented, and implementation affects the marketing plan

The basis premise of the implementation through change approach is that:

The organization is modified in ways that will ensure the implementation of the marketing strategy

Which of the following statements about integrated marketing communications (IMC) is FALSE?

The role of mass television advertising is growing more important to IMC strategy.

What is the primary disadvantage associated with using financial incentives as a means of developing customer relationship?

They can promote continual brand switching.

With respect to evaluating and compensating employees, which of the following statements about outcome-based systems is FALSE?

They require more supervision than other systems

Why would a firm offer a deep assortment of products in its product portfolio

To attract a wide range of customers and market segments

Which of the following statements about value is FALSE?

Value, unlike quality, means the same thing to all customers.

Firms such as IKEA and The Home Depot are known for their use of ______ because they set reasonably low prices but still offer high-quality products and adequate customer services.

Value-based pricing

There are two types of monetary costs involved in the purchase of any product: transactional costs and life-cycle costs. Which of the following best exemplifies a life-cycle cost in the purchase of an automobile?

anticipated repair expenses

In a price negotiation, the number that each side will use to distinguish between a successful and a unsuccessful negotiation is called the

aspiration price

Because service capacity is perishable and service demand is highly time dependent, service firms employ yield management strategies in an effort to

balance price and revenue considerations with their need to fill unused capacity

Although break-even analysis and cost-plus pricing are important tools in setting prices based on the firm's cost structure, they should never be the driving force behind pricing strategy. Why?

because different firms have different cost structures

Why are firms so obsessed with the pricing element of the marketing mix

because pricing is directly responsible for demand

Why is promotion based on creativity alone likely to waste valuable marketing resources?

because the majority of promotional efforts do not create results in the short term

One way of looking at _______ is to consider the marketing and financial value associated with a brand's position in the marketplace.

brand equity

When Meghan went to buy groceries, she found everything on her list except Pampers diapers. While the store had other competing brands in stock, Meghan left and drove five miles to the next store where she found the Pampers. It appears that Meghan exhibits a high degree of _________ for Pampers diapers.

brand insistence

Rather than cutting prices to generate sales, most firms would be better off adjusting their marketing strategy to:

build the value into the product and justify the current price or even a price increase

A price reduction offered to channel intermediaries for purchasing specified quantities of a product at a single time is called a:

buying allowance

Typically, the difference between the planned marketing strategy and strategy that actually takes place is:

caused by the way the planned marketing strategy is implemented

What is considered to be the most important factor to successful supply chain management in today's economy

channel effectiveness

The sources of power or influence change as a supply chain moves toward integration and collaboration. In collaborative supply chains, the most important source of power is based on:

information

In the Mercedes dealer network, individual dealers are given the sole right to sell Mercedes vehicles within a defined geographic area. What type of distribution does Mercedes employ?

exclusive distribution

Marketing implementation is critical to the success of any firm. Simply put, implementation refers to:

how the marketing plan will be put into action

In the ________ approach to marketing implementation, marketing strategy is implemented as a part of the overall organizational vision

implementation as organizational culture

which of the following relationship strategies is most likely to be used by a health club as it tries to create social bonds with its clientele

membership programs

In the purchase of a product, time, effort, risk, and opportunity costs are all examples of

nonmonetary costs

Wortk activities that absorb inputs to create information and communication outputs that ensure the consistent day-to-day operation of the firm are referred to as:

organizational systems and processes

Today, though cutting expenses is still a main factor, the desire of many firms to focus on core competencies is a driving force behind the increase in?

outsourcing

The goal of ________ is to maximize sales, gain widespread market acceptance, and capture a large market share quickly by setting a relatively low initial price

penetration pricing

Based on the requirements for successful implementation, which of the following is the best candidate to become the 5th P of marketing

people

The most widely used method of setting the advertising budget and planning advertising expenditures is the ______ approach

percentage of sales

________ is paid personal communication that attempts to inform customers about products and persuade them to purchase those products

personal selling

Ensuring the availability of products in the right place in the right quantities at the right time in a cost efficient manner is the main focus of

physical distribution

When firms use an ______ strategy, they focus their promotional efforts toward stimulating demand among final customers, who then exert pressure on the supply chain to carry the product.

pull

In launching its new line of power tools, Black and Decker spent a considerable amount of time and resources to educate, motivate, and compensate members of its supply chain. By investing heavily in these types of promotions, Black and Decker hopes its _______ strategy will lead to a more effective product launch

push

The inherent goal of product differentiation is to make the demand curve for a product more inelastic. This happens because increased differentiation:

reduces the number of perceived substitutes for a product.

Retailers use _______ extensively. This occurs when the retailer compares sale prices to regular prices, such as when Best Buy promotes a DVD player as "Regularly $99, Now $49."

reference pricing

With respect to competitive advantages, many see _______ as the most important resource or asset that an organization can possess, as it stems from the value generated by the trust, commitment, cooperation, and interdependence among relationship partners.

relationship capital

Despitew conventional thinking, _____ accounts for the bulk of promotional spending in many firms. This is especially true for firms selling consumer products in grocery stores and mass-merchandise retailers.

sales promotion

What is the most appropriate type of distribution to use when customers need the opportunity to comparison shop, or when after-sale services are important?

selective distribution

As a method of sales force compensation, _______ is best suited to situations where aggressive selling is required and salespeople have direct control over sales outcomes (i.e., their efforts are directly responsible for meeting sales goals).

straight commission

Without a doubt, the most important tool of product differentiation is

the brand

Marketing implementation is often problematic, as marketing plans are usually devised by _______, while implementation is the responsibility of ______

top management; frontline employees

In which of the following situations would a customer become more tolerable of weak or poor product performance

when the customer has fewer product alternatives