Marketing Seminar Exam 4

A problem with advertising is that beyond a certain ad spending level, market share stops growing—or even begins to decline—despite continued spending. This is known as

the advertising response function

Marco's Imports is a high-quality Italian leather goods store in Manhattan. Marco also runs an internet site where people can buy his products and he will charge the same delivery fee to any location within the 48 contiguous states. Marco utilizes ________Blank pricing.

uniform delievered

________Blank enables the spread of a marketing campaign to potentially large audiences through acts of individual users as marketing communication channels.

viral marketing

A ________Blank eliminates many in-house business functions and activities in favor of focusing only on those aspects for which it is best equipped to add value.

virtual organization

When shipping prices are based on the distance from the shipping location, it is considered ________Blank pricing.

zone

________could lead the marketing manager to decide to price at some market average price, or perhaps above or below it in the context of penetration or skimming objectives.

Competitor-based pricing

The internal processes at Southwest Airlines are highly efficient, giving it a competitive advantage over other airlines. Southwest has a very efficient maintenance process and also has a very simple process of booking passengers. Because of these efficiencies, the company is able to offer customers an appealing mileage-driven pricing structure while also increasing the airline's profit margin. According to Michael Porter, Southwest's competitive advantage is based on

Cost Leadership

Sometimes referred to as pricing for maximum market share, ________can create a market entry barrier for other firms.

Penetration Pricing

________Blank are a price reduction for purchase of a specific product during a specific time period.

Rebates

A grocery store chain charges less for a gallon of milk in some neighborhoods that it does in others to reduce competition. This practice is illegal under the

Robinson-Patman Act

At the end of the year, if Malek reaches his annual sales quota, he is given an extra $10,000. This is an example of

a bonus

Carlo receives a paycheck every other Friday for the same amount. Carlos receives

a salary

Rudy ordered a new cell phone online. However, the vender was not able to fulfill his order because the item was not in stock. This is called

a stock-out

An electronics store sells a popular computer, but in order to purchase one of the computers, customers must also buy a printer. This is an example of a(n)

a tying contract

What is a distinct advantage of personal selling over the other marketing communication methods?

ability to tailor the message

It is possible that a(n) ________Blank vertical marketing system can be more formally structured through strategic alliances and partnership agreements among channel members that agree to work in mutual cooperation. An example of this is the relationship between Walmart and Procter & Gamble.

administered

Hiroki notices an advertisement for a pair of headphones that claim to be good for filtering out background noise, and he realizes they might be helpful for his noisy workplace. When he goes into work the next day, he notices the noise and thinks about how nice it would be to have those headphones. What stage of the decision process is Hiroki now in?

affective

________Blank intermediaries perform a variety of physical distribution, transaction and communication, and facilitating functions that make exchange possible. They do not take title to the product.

agent

Martina has developed a new product completely unlike anything else on the market. In which AIDA stage should she spend most of her investment in communication to potential customers?

attention

The internet created a rise in ________ as more and more people decided to meet online to sell products to the highest bidder.

auction pricing

You should be careful when using ________Blank pricing, as it is always possible that the quantity demanded will not match the marketing manager's forecast.

average-cost

A soft drink company has been working with the same trucking company for ten years. Recently, their relationship has become strained as their contract comes up for renewal. The soft drink company wants to renew the contract with similar terms, while the trucking company wants to renegotiate rates to take into account rising gas prices. This is an example of

channel conflict

_______Blank is the degree to which any member of a marketing channel can exercise influence over the other members of the channel.

channel power

Marcia was describing a humorous ad to her friend, who asked her what product it was for. She said she didn't know because there were so many ads on TV that she got them all mixed up. This demonstrates the problem advertisers have with

clutter

________Blank, one of the seven dimensions used by researchers to define a website interface, is a site's ability to enable transactions while keeping data secure.

commerce

When two or more brands are reviewed against each other on certain attributes, it is considered ________Blank advertising.

comparative

Marketing managers employ ________Blank advertising to build sales of a specific brand.

competitve

________Blank, one of the seven dimensions used by researchers to define a website interface, refers to the overall layout, design, and aesthetic appeal of a site.

context

A(n) ________Blank vertical marketing system creates a powerful competitive advantage in the marketplace due to cost and process efficiencies realized when a channel is strictly controlled by one entity.

corporate

In a(n) ________Blank vertical marketing system, a channel member invests in backward or forward vertical integration by buying a controlling interest in other intermediaries.

corporate

When General Hospital was informed that a physician had been sued after performing an unsuccessful surgery, the administration informed all of the staff of the situation. In addition, the public relations staff immediately sent out a press release to allow the hospital to manage the message before people jumped to conclusions. This demonstrates

crisis management

Joachim purchased an alarm system for his car during a promotion. He considered the price during the promotion to be very attractive. However, he later learned that the firm set an artificially high reference price for the alarm system just before the promotion to make the advertised sale price more attractive. Joachim just experienced

deceptive pricing

During the ________Blank stage of the AIDA model, promotional messages are altered so that a customer feels they simply must have the product and can't live without it.

desire

________Blank means the shortening or collapsing of marketing channels due to the elimination of one or more intermediaries, which is common in the electronic channel.

disintermediation

The development of promotional strategies most likely involves decisions about

elements in the promotion mix

A plastics manufacturer wants to ensure it can avoid critical interruptions in its supply chain, so it uses a(n) ________Blank to manage much of the logistics and other processes.

enterprise resource planning system

Logistics and other processes are managed using sophisticated and integrated

enterprise resource planning systems

Sierra is the marketing manager for a sporting goods store, and she's preparing the company's promotional strategy for the upcoming holiday season. She has identified the targets for the promotion. What should she do next?

establish goals for promotion

The fundamental philosophy behind ________Blank is to reduce investment in promotion and transfer part of the savings to lower price.

everyday low pricing

________Blank distribution is often part of an overall positioning strategy built on prestige, scarcity, and premium pricing.

exclusive

A ________Blank is the highest-potential start-up and growth mechanism for small-business owners, and it is an effective way to expand a distribution channel quickly and efficiently.

franchise organization

________Blank measures the average number of times a person in a target market is exposed to a particular message.

frequency

Runa understands that the employees at her company have the potential to be strong ambassadors for their brand if they are properly armed and feel the pride of ownership in the brand. Whose help should she enlist to communicate the brand message to employees?

human resources

Dalina saw an ad for a Medicare Advantage insurance plan, so she called an 800 number to get more information. This approach is used to identify and qualify prospects and is an example of

inbound telemarketing

________Blank is the application of marketing concepts and strategies inside an organization.

internal marketing

In the context of online advertising decisions, ________Blank are visually appealing, full-page ads that are delivered before the viewer is directed to the intended web page

interstitials

A recent study found that about 70 percent of Americans consult either a user review site or an independent review site before

making a purchase

Which activity best describes one aspect of a salesperson's job?

manage information

Jimmy is trying to determine the best price for his new fishing poles and thus uses the sales price as a basis of calculating the markup percentage. He is using a(n) ________Blank approach.

markup on sales price

A distribution company purchases meat from farmers. It then controls the terms of the sale of the meat to grocery stores around the country, including the price and delivery dates. It also takes on the risks associated with handling the product. This company is acting as a(n)

merchant intermediary

Centrum Vitamin's offer to buy a bottle of 100 and get an extra mini-bottle of 20 is an example of using ________Blank a sales promotion approach.

multiple-purchase offers

A virtual organization is otherwise known as a ________Blank organization.

network

P&G solicits meaningful interaction from customers on its website rather than at independent sites. P&G recognizes the value of

online brand communities

________Blank refers to companies handing over most or all of their supply chain activities to third-party organizations that are experts in those areas.

outsourcing

Abilene is the manager of a cafe and is responsible for deciding the price of dishes included on the cafe's menu. The chef of the cafe introduced a new dish, which was initially priced at $20 by Abilene, but she increased its price slowly over a period of 6 months. In this scenario, Abilene utilized a ________ strategy.

penetration pricing

When Delphi purchased her new cell phone, she was offered an opportunity to purchase a car charger and a cover together at a reduced price. The cell phone provider was using a ________ strategy.

price bundling

Zora is using a combination of digital and social media marketing, advertising, sales promotion, public relations, and personal selling in order to achieve an acceptable ROI. Zora is using the

promotion mix

Petros is the marketing manager for a pharmaceutical company. His team relies on a combination of personal selling and sales promotions directed toward pharmacies and medical facilities. This is an example of

push strategy

What is an example of measured media?

radio

Starbucks ran a new ad during the Super Bowl. The marketing department wanted to know the percentage of people watching the program who were exposed to the ad during the event. Starbucks was measuring the ________Blank of the ad.

reach

Beautiful Home is a discount furniture store. Most of the items in the store are overstock, so they tend to be more inexpensive than other furniture. Recently Beautiful Home started to display the manufacturers' suggested retail price next to the price it charges to show the savings. Beautiful Home is using a ________ strategy.

reference pricing

________Blank is any business activity that creates value in the delivery of goods and services to consumers for their personal, nonbusiness consumption.

retailing

When targeted to members of a channel on which a firm relies to sell a product, ________Blank is an important element of a push strategy.

sales promotion

To encourage the ultimate purchase, marketers often rely on ________Blank to close the sale.

salespeople

________Blank are typically expressed as greatly extended invoice due dates.

seasonal discounts

P&G often shows ads of people using its products, such as a family using a Swiffer to pick up dog hair. This approach to advertising execution is called

slice of life

A modern interpretation of a(n) ________Blank is a group of people connected through technology.

social network

In markets where customers typically witness rapidly changing prices, ________ can provide a source of competitive advantage.

stability pricing

One of five principal goals for a sales presentation is to

build product interest

In addition to the company's primary website, many companies create smaller, more focused sites that deal with specific topics such as new product introductions or targeted products. These sites are known as

microsites

"Buy 1, get 1 half price" is an example of the sales promotion approach of

multiple-purchase offers

________Blank could result in overall higher prices for consumers since various competitors are all pricing the same to maximize their profits

price-fixing

Priceline.com is a firm that serves as a clearinghouse for extra capacity from airlines, hotels, and cruise lines. It is an example of a firm that uses a(n) ________ strategy.

reverse auction

A food wholesaler purchases different fruits from local farmers and then sells them to local restaurants and retailers. If the fruits spoil before the wholesaler sells them, it takes the loss. As an intermediary, the wholesaler is performing the function of

risk-taking

In deciding on the right balance between control and flexibility in a channel, marketing managers must consider

the type of products involved

________Blank is one of the critical mistakes made in closing a sale.

too much talking

One drawback that is particularly relevant to ________Blank is the user expectation of very quick and timely response to questions or comments.

twitter

Massage Monthly offers a reduced rate for massages with a monthly membership that includes one massage or facial per month. During the service, the provider recommends products they are using, and that they sell in the store. The provider also asks if the customer would like to upgrade to an aromatherapy massage, at an extra cost. This is an example of

two-part pricing

Firms that have an objective of utilizing pricing to communicate positioning use a ________ strategy

value pricing

The behavioral step of AIDA is

action