Marketing SmartBook
A demand curve shows that a company will sell 10,000 units if it prices its new product at $200 per unit, but it will sell 20,000 units if it reduces the price to $75. If the company wants to maximize profits, it should price the new product at ______
$200
A firm would likely decide to use persuasive advertising for which of the following product situations?
1) A brand that the firm wishes to reposition 2) A product category in the growth or early maturity stage of the product life cycle 3) A product category where competition is intense
Which of the following are reasons marketers must adapt their global distribution strategies for developing countries?
1) Consumers shop in small, family-owned retail outlets 2) It is difficult to transport products to retailers in remote areas
When using the objective-and-task method to determine a budget, marketers must take which of the following steps?
1) Determine which media best reach the target market 2) Identify the cost of the necessary communications 3) Establish a set of communication objectives
Which statements about measuring marketing campaigns are true?
1) Factors such as the lagged effect can complicate the measurement process 2) The success of campaigns is measured using marketing metrics
Which of the following pieces of information should be communicated to customers through a company's website?
1) Features or products and services 2) Where customers can purchase products
Which of the following activities are part of public relations?
1) Handling unfavorable press 2) Maintaining positive relationships with the media 3) Building a positive image of the firm
Which of the following are steps in the planning and execution of an ad campaign?
1) Identify target audience 2) Assess impact 3) Set advertising objectives
Place the steps in planning and executing an ad campaign in order, from the first step at the top to the last step at the bottom.
1) Identify target audience 2) Determine the advertising budget 3) Convey the message 4) Evaluate and select media 5) Create advertisements 6) Assess impact
Corporate blogging is a new form of marketing communication. A well-received blog accomplishes which of the following?
1) It creates positive word-of-mouth 2) It connects customer through a community
In order for a product to be successful, a brand must have which of the following characteristics?
1) It must be sustainable over time 2) It must be meaningful to the consumer
What are the two axes on which marketing channels can be viewed?
1) Passive and interactive 2) Offline and online
Which of the following are the three potential global product strategies?
1) Selling a product in the host country with minor adaptations from what is sold in the home country 2) Selling a completely new product in the host country 3) Selling the same product or service in both the home and host country
Direct investment requires a firm to maintain ______ ownership of its facilities, offices, and plants in a foreign country
100%
Which two of the following are franchises?
A Holiday Inn motel and a McDonald's restaurant
A wholesaler is ______
A company that buys merchandise from manufacturers and resells it to retailers
Infrastructure includes basic facilities, services, and installations needed for a community or society to function, including all EXCEPT which of the following?
A culture that accepts innovation
Which statement about marketing channels is true?
A marketing channel may be a combination of a direct channel and an indirect channel
In the management of market channels, a strategic relationship is also known as ______
A partnering relationship
What is "Built Ford Tough" an example of?
A unique feature positioning
The "think, feel, do" model for the mental stages a consumer goes through is more formally called the ______ model
AIDA
To create an effective IMC program, marketers need to move consumers through a series of mental stages for which there are several models, the most common being the _____ model.
AIDA
What benefits does the local partner typically offer in a joint venture agreement?
Access to local resources such as vendors and real estate and improved understanding of the marketplace of the host country
Which of the following is the fourth (and final) component of the AIDA model?
Action
The level of economic development, as well as differences in product and technical standards, help determine the need for and level of product ______ in a global product strategy
Adaptation
Elements in a global communication strategy usually need to be ______ to the local market to be effective
Adapted
Each business that is part of a marketing channel ______
Adds value to the product
According to the AMA, ______ is "the placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/or persuade members of a particular target market or audience about their products, services, organizations, or ideas."
Advertising
Unlike PR, ______ is a paid form of communication, delivered through media from an identifiable source
Advertising
Which of the following is the most visible IMC component?
Advertising
Imagine that you are reading one of your favorite magazines. If you see a logo and recognize the brand as it is being presented to you, this is an example of ______
Aided recall
Which of the following terms refers to an awareness metric that is based on consumer recognition of a brand when presented with the name?
Aided recall
Gross domestic product is defined as the total market value of ______ produced by a country in a year
All goods and services
Which of the following is an example of power being exerted within a marketing channel?
Although all companies in the channel are independent, one large retailer controls what a small supplier can do
Which of the following does a break-even analysis provide?
An average price to charge under certain conditions
When a firm offers to directly interact with a consumer through the Internet in real time, this is known as ______, a timely and direct type of personalized customer service.
An online chat
Relationships in supply chains ______
Are based on meeting each other's needs
Assuming the economy and other factors stay the same, a downward-sloping demand curve for a product shows which of the following?
As price increases, demand decreases As price decreases, demand increases
What is the first component of the AIDA model?
Awareness
______ metrics such as aided recall measure a potential customer's ability to recognize or recall that the brand name is a particular type of retailer or product/service
Awareness
Personal selling is an important component of many IMC programs, especially in ______ settings
B2B
f you are looking to find out more about a particular good or service, you may find yourself reviewing a , or a web page that contains periodic posts.
Blog
Which of the following terms best describes the strength of the association between a brand name and the type of product or service in the consumers' minds?
Brand awareness
Guitar Center reinforces its image of selling high-quality musical equipment in its stores and catalogs and on its website. This is an example of providing a consistent ______ across all channels
Brand image
It is very important for the retailer to provide a consistent ______ across all channels
Brand image
A useful technique that enables managers to examine the relationships among cost, price, revenue, and profit over different levels of production and sales is called ______
Break-even analysis
The point at which the number of units sold generates enough revenue to equal total costs is known as ______
Break-even point
What is the name for the point at which the lines on a break-even analysis graph intersect?
Break-even point
Which of the following exemplifies a pull IMC strategy?
Budweiser buys 8 ads in the Super Bowl at $3M each
______ marketing refers to commercial activity in which businesses and charities form a partnership to market an image, product, or service for their mutual benefit
Cause-related
Suppose that for every pair of Nike shoes sold, Nike donates a percentage of the sales price toward funding high school athletics. This process is an example of which of the following?
Cause-related marketing
Which of the following is an example of a visible artifact of culture?
Ceremonies
Variable costs _____ production volume
Change with
The communication ______ is the medium (e.g., print, television, radio) that carries the message from the firm to the consumer
Channel
In search engine marketing, which of the following terms describes the number of clicks divided by number of impressions?
Click-through rate
The ______ refers to the medium that carries the message for a firm whether in print, broadcast, or Internet
Communication channel
Advertising, personal selling, sales promotion, direct marketing, and public relations are among the many communication disciplines that make up IMC, which refers to integrated marketing ______
Communications
Which of the following are drawbacks of a market penetration pricing strategy?
Companies need to have a large production capacity Setting the price lower than the item's value "leaves money on the table" Setting low prices may indicate to consumers that the product is not of high quality
The five Cs of pricing include:
Company objectives Customers Costs Competition Channel members
Products whose demands are positively related to one another are known as ______ products
Complementary
_______ products are items whose demands are positively related, so that they rise and fall together. An example would be Blu-ray players and Blu-ray discs
Complementary
Language differences can ______ marketers' ability to communicate with customers in different countries
Complicate
When channel members have opposing goals, it often leads to channel
Conflict
Channel conflict arises because supply chain members sometimes have ______
Conflicting goals
An advertising firm will be successful if the media mix delivers a message that has which of the following characteristics?
Consistency, clarity, and compellingness
Which of the following groups is targeted with a pull strategy for sales promotion?
Consumers
In a ______, members of the channel pursue their own goals and maximize their own profits, regardless of the effect on other channel members
Conventional marketing channel
Within the communication process, encoding most closely could be described as _____
Conversion
Within the communication process, encoding most closely could be described as ______
Conversion
In a(n) ______ vertical marketing system, a firm owns and controls all of its supply chain
Corporate
Which vertical marketing system gives complete power to the parent company?
Corporate
A marketing channel in which multiple segments are owned by the parent company is known as a(n)
Corporate vertical marketing system
Reaching rural populations using long supply chains in which goods pass through many hands adds ______ to products
Costs
Strategic relationships rely on which of the following to succeed? (Select all that apply.)
Credible commitments Mutual trust
The percentage change in the quantity of one product demanded compared with the percentage change in price in another product is called _______
Cross-price elasticity
__ is the shared meanings, beliefs, morals, values, and customs of a group of people
Culture
What advantage is there for a company to offer products at prices below actual market value?
Customers are more likely to try the product because they are not risking as much money
In the United States, it is considered unethical and illegal for advertisements to ______ the consumer so much that the person is harmed
Deceive
A national retail chain has signs throughout its stores that say: "Sale! 50% off our regular price!" Journalists investigate and discover that the company has never sold any merchandise at what it calls its regular price. The business has engaged in ______. Multiple choice question
Deceptive reference pricing
In the second step taken to convey the message, what do marketers do?
Decide what appeal would be most effective
For one person, the Taco Bell logo might mean a dieter's worst nightmare, but for another it can mean a great meal. This exemplifies the fact that each receiver may ______ a given message differently
Decode
______ refers to the process by which the receiver interprets the sender's message
Decoding
The graph that shows how many units of a product or service consumers will want during a specific period at different prices is known as the ______ curve
Demand
_____ is the third of the four components in the AIDA model
Desire
Strategic relationships are beneficial because they help members do which of the following?
Develop joint projects Take risks Accomplish goals
Global marketing strategies includes two elements: identification of the target markets and ______
Developing and implementing the marketing mix
When a new franchise business opens, the franchisor who owns the original business is typically still responsible for which of the following? (Select all that apply.)
Developing the products and services Advertising
In a(n) ______ marketing channel, products are sold by a manufacturer to a consumer without going through a retailer
Direct
What are common types of marketing channels?
Direct and indirect
Which of the following global entry strategies involves the most risk?
Direct investment
Telephone, mail, catalogs, and e-mails can all be considered part of ______
Direct marketing
Which of the following IMC strategies refers to communicating specifically with target customers to elicit a response or transaction?
Direct marketing
Which of the following types of businesses would be MOST affected by pricing laws that prohibit selling products below cost?
Discount retailers such as Walmart
A _________ center is a facility where goods are received, stored, and redistributed to company stores or customers.
Distribution
A facility that receives, stores, and redistributes merchandise to company stores or customers is known as a ______
Distribution center
Chain stores that use ______ can carry less merchandise in each retail outlet
Distribution centers
Where do retailers typically find it most cost effective to store merchandise?
Distribution centers
Which of the following terms refers to the number of channel members used at each level of the marketing channel?
Distribution intensity
Retailers may devise a creative solution for getting their product to hard-to-reach consumers. The development of this type of solution is part of the firm's ______
Distribution strategy
Profit alone ______ how many units should be sold before a firm breaks even
Does not indicate
For most products, demand increases as the price decreases. Because of this general trend, demand curves usually have a(n) ______ slope
Downward
Prestige products or services do not follow the ______ curve
Downward-sloping demand
Using predatory pricing, a firm sets a very low price for one or more of its products with the goal of ______
Driving its competition out of business
With ________ pricing, also known as individualized pricing, companies charge different prices based on the type of customer, the day of the week, and the level of demand.
Dynamic
Which of the following occurs in a conventional marketing channel?
Each channel member pursues its own objectives independently, with little care about other channel members
Which of the following criteria are necessary to assess a country's market?
Economic analysis, infrastructural analysis, and sociocultural analysis
When a 10% decrease in price produces more than a 10% increase in quantity sold, the product or service is responsive to price changes and is considered to be ______
Elastic
______ refers to the conversion of the sender's ideas into a message, which could be verbal, visual, or both
Encoding
A joint venture is formed when a firm ______ a new market and ______ its resources with those of a local firm to form a new, shared company
Enters; pools
What is a major benefit of selling the exact same product or service in both the home and host countries?
Establishing strong brand recognition
A popular PR tool whereby corporations pay for and attach their names to various activities in the cultural or sports and entertainment sectors is known as ______
Event sponsorship
Coors Light, AT&T, and Intel are among many corporations that support the X Games. Which of the following is this an example of?
Event sponsorship
With the ______ pricing strategy, a company adopts retail prices that are typically somewhere between the product's regular price and the sharply discounted sale prices that competitors occasionally offer
Everyday low
The strategy of ______ appeals to consumers because it reduces their need to spend time comparing prices at various stores
Everyday low pricing (EDLP)
If Ford allows only one retailer or dealer in a given territory the ability to sell its particular brand, it is using a(n) ______ distribution strategy.
Exclusive
Which of the following placement strategies involves manufacturers granting sole geographic territories to one or very few retailers so no other retailers in the territory can sell a particular brand?
Exclusive
Which of the following does an integrated CRM facilitate?
Expediting returns Handling customer complaints Targeting future promotions
When firms use a penetration pricing strategy, they expect the experience ________ effect to occur
Experience curve effect
Which of the following global entry strategies involves the least amount of control of a product or service in the foreign market?
Exporting
True or false: A direct, manufacturer-to-consumer supply chain is a poor choice in a simple economy
False
True or false: A disadvantage of direct investment is that profits must be shared with other firms
False
True or false: Marketers should expect to measure the full potential of a marketing campaign immediately after it is launched
False
True or false: Price discrimination is illegal under all conditions
False
True or false: Puffery is illegal in advertising
False
True or false: The sales department of a company rarely coordinates with the manufacturing department.
False; any promises made by the sales department must be coordinated with manufacturing and distribution
True or false: Franchisors agree to operate outlets in accordance with procedures prescribed by its franchisees
False; franchisees agree to operate outlets in accordance with procedures prescribed by the franchisor
True or false: The first decision that is necessary to make merchandise flow is to choose a transportation company
False; the first decision is where the merchandise should go - to a distribution center or directly to stores
Which of the following are considered deceptive reference prices?
Fictitious prices Inflated prices
A franchise is a contractual agreement between ______.
Firms or a firm and individual
Why is global segmentation, targeting, and positioning (STP) more complicated than domestic STP?
Firms struggle to understand the cultural nuances of other countries and foreign consumers view products and their roles as consumers differently
Which type of firm is most likely to be able to simply translate the wording in its advertisements rather than altering the content of the campaign to account for cultural or religious differences?
Firms with global appeal
For a firm, rent, landscaping, and insurance are examples of ______ costs
Fixed
Which of the following do you need to know to calculate target return price?
Fixed costs, expected unit sales, and variable costs
Franchising is a contractual agreement between a firm, the franchiser, and another firm or individual, known as the ______
Franchisee
Some companies expand successful retail businesses by entering into contracts that give others the right to operate businesses with the same name and format. This is called ______
Franchising
Marketers measure the ______ of exposure by how often the audience is exposed to a communication within a specified period of time
Frequency
Which of the following are standard marketing channels through which information flows? (Select all that apply.)
From stores to distribution centers From customers to stores From manufacturers to distribution centers
A(n) ______ center is similar to a distribution center, but instead of shipping to stores, it ships directly to customers
Fulfillment
Some details used to evaluate the general economic environment include ______
GDP and trade deficit or surplus
What is a major economic factor that a firm conducting an economic analysis of a country market must take into account?
General economic environment
A strategic alliance is a type of _____ for a firm to expand into the foreign market
Global entry strategy
In the twenty-first century, goods, services, capital, people and information, and ideas often flow across international borders, a process known as ______
Globalization
What is the process that causes an increased flow of goods, services, capital, people, information, and ideas across national borders?
Globalization
______ refers to a strategy in which firms sell a standardized product around the world but develop different promotional campaigns for different countries
Glocalization
Which of the following is an example of a search engine marketing tool?
Google AdWords
The total market value of all goods and services produced by a country in a year is known as the country's ______
Gross domestic product (GDP)
To calculate return on marketing investment, marketers need to know which of the following?
Gross margin and marketing expenditure
Persuasive advertising most often occurs in which stage of the product life cycle?
Growth
Direct store delivery works well for retailers that have which of the following characteristics?
Have only a few outlets Sell perishable goods Like to be the first to sell the latest products
An easy way to remember the difference between encoding and decoding within the communication process is to think of encoding as the message the sender intends to say, whereas decoding can be thought of as what the receiver actually ______
Hears
When there are many substitute products available, the price elasticity of demand for a given product will likely be ______
Higer
When consumers relish the challenge of getting the lowest price and are willing to expend the time and effort to seek out the lowest price every time, retailers should use the ______ pricing strategy
High/Low
The ______ pricing strategy features frequent sales, during which prices are lowered for a short time
High/low
Which statement about marketing channels is true?
IMC combines the channels so that together they exceed the total of the individual channels
The major challenge in developing a global communication strategy is ______
Identifying the elements of an advertising campaign that need to be adapted in the global marketplace
When a firm identifies its positioning within a market, it must decide how to ______ its marketing strategies using the marketing mix
Implement
The number of times an ad appears in front of the user is known as the number of ______
Impressions
A demand curve enables a firm to examine prices ______
In terms of demand the firm's objective
Which of the following is the best way to raise consumer interest in an ad?
Include unique attributes that appeal to the target audience
Global distribution networks form complex value chains that ultimately ______ the final selling price of a product
Increase
When the price of DVD players drops, theoretically based on demand elasticity, the demand for DVDs is likely to ______
Increase
A(n) ______ marketing channel includes a retailer or other intermediaries in the delivery of goods and services to consumers
Indirect
If a company needs to raise the prices of some its products, it should choose to raise the prices of ______ products because relatively fewer customers will stop buying the product as a result
Inelastic
When a 10% decrease in price results in less than a 10% increase in quantity sold, demand for the product or service is described as ______
Inelastic
Marketing communications ______ consumers by making them aware that a product or service exists or by increasing their purchase intent
Influence
During the early stages of a product's life cycle, ______ advertising should be used in order to create and build brand awareness.
Informational
When an advertising campaign is first launched for a new product, which type of advertising would be most appropriate, given the objective of building awareness?
Informative
______ is defined as the basic facilities, services, and installations needed for a community or society to function, such as water and power lines, and public institutions
Infrastructure
_______ marketing communications (IMC) encompasses a variety of communication disciplines in combination to provide a maximum communicative impact on its consumers
Integrated
Effective omnichannel operations need a(n) ______, which consists of a centralized customer data warehouse that houses a complete history of each customer's interaction with the retailer
Integrated CRM system
Which of the following words best describes the advantage of using an IMC program over a single marketing communication element in order to deliver a message to the target audience?
Integration
Which of the following strategies for wide distribution involves getting products into as many different outlets as possible?
Intensive
Pepsi and other soda companies almost always try to get their products into as many different outlets as possible. What is the name of this type of distribution strategy?
Intensive distribution
In the "think, feel, do" model of marketing communications, what follows "awareness"?
Interest
Within the communication process, decoding can best be described as ______
Interpretation
Which of the following are limitations to break-even analysis?
It cannot predict how many units will sell It uses an average price rather than specific prices It must be conducted several times at different quantities
Predatory pricing is illegal for which of the following reasons?
It drives most competition out of business and leaves the market in the control of only a few companies It is an unfair method of competition It inhibits free trade
If marketers have a brand or service that has reached top-of-mind awareness among their consumers, this most likely means which of the following?
It has fairly high visibility among consumers
Which of the following is correct with respect to predatory pricing?
It is outlawed by the Sherman Act and Federal Trade Commission Act
Which of the following are advantages of a corporate vertical marketing system? (Select all that apply.)
It reduces potential conflict The corporation exercises complete control over the marketing channel
Exporting is an entry strategy that requires the ______ financial risk and allows a(n) ______ return to the firm
Least; limited
Gordon is a marketer at a bicycle manufacturer and is responsible for developing an ad focusing on his employer's newly designed titanium-frame touring bike. The goal for the ad is to take consumers from the interest stage of the AIDA model to the desire stage. In other words, the ad is intended to move the consumer from saying, "I ______ it" to "I ______ it."
Like; want
Some states require some minimum markup and prohibit ______ pricing, where items are sold at a price below the store's cost
Loss-leader
Which pricing tactic lowers the price below store cost?
Loss-leader pricing
In a simple economy, the most direct supply chain would be ______
Manufacturer to consumer
The business activities associated with retailing involve both products and services. Which of the following is NOT a venue where retailing occurs?
Manufacturer's warehouse
The goal of a(n) ______ strategy is to generate profit and establish a new product or service in the market as quickly as possible
Market penetration
Firms spend millions of dollars to develop brand names that have no preexisting meaning in any known language because ______
Marketers want to avoid potential embarrassment the language confusion can cause
The integration of suppliers, manufacturers, warehouses, stores, and transportation intermediaries is called ______ management
Marketing channel
When a firm influences the actions of a consumer, the firm has probably done so through ______
Marketing communications
Which of the following is another term for target return percentage?
Markup
One of the largest expenses in the advertising budget is the ______ buy, which refers to the actual purchase of airtime or print page.
Media
An indirect marketing channel may include which of the following intermediaries?
Merchandise wholesaler Retailer
While a product's impact is being tracked, in what activity is the advertiser most likely engaged?
Monitoring weekly sales for the product while the ad is run
Which of the following are associated with using routing and scheduling systems to manage shipment of merchandise from distribution centers to stores? (Select all that apply.)
More accurate estimates of arrival time of merchandise Maximization of vehicle usage More efficient routes for deliveries
Which of the following have a direct impact on pricing in the global marketplace?
National rules governing the competitive marketplace and tariffs and antidumping laws
The marketing strategy a firm chooses when entering a new foreign market depends on the ______ of the target consumers
Needs
Which of the following terms refers to any interference in a message?
Noise
______ occurs when there is a discrepancy between the encoding and decoding of a message
Noise
______ refers to any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the media that subsequently creates a problem for the communication channels
Noise
When marketers set communication objectives, choose media, and determine costs for each communication type chosen, they are using the ______ IMC budget method
Objective-and-task
A(n) ______ strategy is when manufacturers and retailers work together to sell products and/or services in more than one channel (e.g., store, catalog, and Internet).
Omnichannel
What is the correct term for when a manufacturer or retailer sells in more than one channel?
Omnichannel
When a firm enters into a joint venture agreement with a local firm, the two investors will then share which of the following?
Ownership of the firm, any profit gained, and control of business operations
In a franchising agreement, the franchisor ______
Owns the overarching firm
One of the primary characteristics of advertising is that advertising is a ______ form of mass communication
Paid
IMC programs are advantageous in that they regard each individual marketing communication element as ______
Part of an integrated unit
Joint ventures can be a risky entry strategy because ______
Partners might disagree and governments might place restrictions on the entering firm
When a new product or service is launched, companies that use a ______ strategy will attempt to attract customers quickly by offering a very low price at first
Penetration pricing
Which of the following IMC strategies explicitly refers to a two-way flow of communication between a buyer and a seller and is designed to influence the buyer's purchase decision?
Personal selling
______ is a major benefit to using the Internet channel and refers to the ability to tailor the information for each customer economically
Personalization
When customer service or product offerings are individually tailored to the consumer shopping on an Internet channel, they are said to be ______
Personalized
When you go on Amazon.com and notice a section of recommended items that you might like on the page, this is an example of a(n) ______ offering derived from your past purchases
Personalized
When retailers create individualized web pages for each consumer based on the consumer's prior purchase history, the retailers are providing ______
Personalized offerings
Which of the following can search engine marketing be used to accomplish?
Placing a website in the Sponsored Links section of Google
When a firm has a public relations agent, the primary function is to generate ______ publicity and improve the company's reputation
Positive
Many firms choose the direct investment strategy when entering foreign markets because ______
Potential profits are not shared with other firms and it offers complete control over operations
A large grocery store chain insists that its suppliers stop packaging their bagels in plastic wrap, and they comply. This is an example of ______
Power within marketing channel
A firm sets extremely low prices for its products so that most customers will stop shopping elsewhere. This will cause other companies to go out of business and leave the firm with no more competition. The firm has engaged in ______
Predatory pricing
Products that cost a lot of money but that people buy anyway because of the status and exclusivity that they project to others are called ______ products
Prestige
The contribution per unit is the ________ minus the variable cost per unit.
Price
The equation for price elasticity of demand is the percentage change in quantity demanded divided by percentage change in ______
Price
Break-even analysis examines the relationships between which of the following?
Price and cost
If a firm sells the same product to different resellers at different prices, it can be considered ______
Price discrimination
The ratio of change in a price and its effect on the quantity of the product demanded is known as ______
Price elasticity of demand
If McDonald's reduces the price of a Big Mac by 25% and sales increase by more than 50%, the firm could describe demand as which of the following?
Price sensitive; elastic
In preparation for introducing a new doll to the market, a toy company advertises and creates so much demand that little girls are lined up at the stores, determined to be the first to own one. The toy company sells these first dolls at twice their actual retail value. This is an example of ______
Price skimming
When Apple first introduced the iPhone, some consumers were willing to pay the premium $599 price tag. Apple was using a(n) ______ strategy
Price skimming
When a new product appeals to consumers who are willing to pay a premium price to have an innovation first, marketers should use a ______ strategy
Price skimming
The components of a country market assessment include all of the following EXCEPT:
Pricing and product decisions
The Kleenex advertising campaign to remind customers to keep a tissue with them is an example of ______-focused advertising.
Product
It is the global ______ which offers marketing managers specifically three potential global product or service options from selling the same product to introducing an entirely new product
Product strategy
Advertising is a paid form of communication, delivered through media from an identifiable source, about which of the following?
Product, service, or idea
When a company's advertising is focused on informing, persuading, or reminding consumers about the company's specific offerings, it is referred to as ______ advertising
Product-focused
The integrated marketing communications process refers to which of the six Ps in the marketing mix?
Promotion
A ______ strategy is designed to motivate consumers to demand products and force the channel to carry and sell the brand, whereas a ______ strategy relies on the channel members to move the brand
Pull; push
The ultimate goal of any marketing communication is to compel the receiver to react positively to the message and brand and then to ______ the product or service
Purchase
Countries with the highest ______ today may lose appeal in the future for many products and services because of stagnated growth
Purchasing power
A(n) ______ strategy is designed to increase demand by motivating sellers, wholesalers, distributors, or salespeople to highlight the product rather than the products of a competitor
Push
Which of the following is a measure of how effective an ad is for the amount spent?
ROMI
Gross rating points (GRP) equals ______ times frequency
Reach
______ describes the percentage of the target population exposed to a specific marketing communication, such as an advertisement, at least once
Reach
Which of the following activities take place at distribution centers? (Select all that apply.)
Receipt of goods Storage of goods Shipment of goods
In the communications process, the ______ is the person who reads, hears, or sees and processes the information contained in a message and/or advertisement
Receiver
Within the communication process, when you are reading or seeing a billboard with an advertisement, you are known as the ______
Receiver
Public __-___ involves the management of communications and relationships to achieve various objectives within a given firm or institution
Relations
Public ______ is the organizational function that manages the firm's communications and supports other promotional efforts.
Relations
Fixed costs ______
Remain at the same level despite changes in production
Products that are in the maturity stage of their life cycles and have established market acceptance will often use ______ ads so as to continuously stay in the minds of the consumer
Reminder
When products already have solid brand recognition and market acceptance and are in the maturity stage of their life cycles, firms may engage in ______ advertising to continuously stay in the minds of the consumer
Reminder
Goods and services that serve the same needs and wants on a global scale often ______
Require little or no adaptation in form or message
Firms conduct market ______ to identify their target audience and to help set the tone for their advertising program
Research
A manufacturer will seek out partnerships with who will sell the manufacturer's products and/or services to the final consumers. (Remember to type only one word in the blank.)
Retailers
Which of the following are advantages of using a distribution center?
Retailers are less likely to over- or understock merchandise Retailers no longer have to make separate sales forecasts for each individual store Retailers can make lower inventory investments
Channel members include which of the following?
Retailers, manufactureres, wholesalers
Adding value to products and services sold to consumers in households for their personal or family use is known as
Retailing
Which of the following refers to business activities that include the purchase of products at stores, through catalogs, and over the Internet, as well as services, such as fast-food restaurants, airlines, and hotels?
Retailing
______ refers to a set of a business activities that add value to products and services sold to consumers for their personal or family use.
Retailing
In which of the following locations are product costs likely to be highest?
Rural areas in less developed countries
______ promotions are special incentives or programs that encourage consumers to purchase a product or service and may include coupons, rebates, contests, free samples, or point-of-purchase displays.
Sales
Which of the following statements about sales promotions strategies is true?
Sales promotion tools can be used with either a push or pull strategy
When a firm tries to encourage consumers to make a direct purchase with the aid of a special incentive, this is known as ______
Sales promotions
When companies try to entice customers to make purchases by offering special incentives or excitement-building programs, including loyalty programs, contests, etc., they are using ______
Sales promotions
Free samples, point-of-purchase displays, sweepstakes, and contests are all examples of which of the following IMC strategies?
Salse promotions
Between the intensive and exclusive distribution strategies lies ______ distribution, which uses a few, well-selected retailers in a territory.
Selective
Which type of distribution uses a few, carefully identified retailers in a given territory with the intention of maintaining a particular image and controlling the flow of merchandise into an area?
Selective distribution
What is the most common method of introducing a product or service outside of the home country?
Selling the same product or service in the home country and host country
Exporting happens when a firm produces a product in its domestic plants and then ______
Sells it in a foreign country
If Wendy's airs a television advertisement delivering a message about a special promotion at its restaurants, Wendy's is the ______ in the communication process
Sender
What is the first component in the communication process?
Sender
Depending on the country, joint ventures sometimes require ______ when entering a foreign market
Shared ownership
In a joint venture, a company ______
Shares the financial burden with a local partner in a foreign market
The sender of a message ______ the audience
Should be clearly known by
Direct investment exposes a firm to ______ risk
Significant
Using the Internet to communicate about product preferences with other shoppers is called ______ shopping
Social
Public service advertising is best categorized under the umbrella of what type of marketing?
Social marketing
The type of marketing that uses principles of marketing to raise awareness of social issues such as the environment or hunger is known as ______
Social marketing
Marketers might be less interested in countries with the highest purchasing power because of ______ growth and saturated markets
Stagnated
In a ______ relationship, the supply chain members are partners who intend to maintain the relationship for quite some time and invest in ventures that will be profitable for all involved
Strategic
Which of the following is a market entry strategy in which independent companies form a partnership to collaborate in the foreign market but do not necessarily invest in each other?
Strategic alliance
The five Cs of pricing are examples of pricing ______
Strategies
A pricing ______ is the general way a company decides how its prices will be determined over the long term, based on the five Cs of pricing
Strategy
A percentage increase in the quantity demanded for Product A results in a percentage decrease in quantity demanded for Product B. Products for which demand is negatively related are known as ______ products
Substitute
When the change in demand for one product negatively affects the demand for another product, the items are known as ______ products
Substitute
On which of the following does brand loyalty have the most significant effect?
Substitution effect
Another term for marketing channel management is ______ management
Supply chain
After a firm has determined its position in the global market, it will typically seek to meet the needs of global markets by ______
Tailoring its marketing mix to the needs of consumers in individual markets
In order for an advertising program to succeed, the advertiser must accurately and effectively identify its ______ audience
Target
When incomes drop, the demand for an elastic product ______
Tends to decrease
What does media mix refer to?
The combination of media used
When the price of a new product is being set via price skimming, what happens after the first round of sales has saturated the high-price market?
The company lowers its price somewhat to attract customers from the next segment of the market
The role of the retailer is to help ______
The consumer and manufacturer
Price minus the variable cost per unit equals ______
The contribution per unit
Which of the following happens as participants in a marketing channel add value to a product?
The cost of the product increases
In a marketing channel, the sales department must coordinate delivery with ______
The distribution center
______ allows the receiver to communicate with the sender and thereby inform the sender whether the message was received and decoded properly
The feedback loop
To whom are a lump sum and royalties paid when a franchise opens?
The franchisor
As people make more money, their spending behavior changes. This is known as ______
The income effect
Setting the price for a new product is less difficult when other products like it are already being sold. This is true because ______
The market will have established a general value for that sort of item
One reason firms elect to use online chats over other methods when providing customer service is that it addresses specific questions that may not be answered on a traditional FAQ or noninteractive help source. What does this aspect of online chat refer to?
The personalization of answers to questions
Loyalty toward a particular brand makes other brands seem less substitutable, which decreases ______
The price elasticity of demand
Consumers' ability to replace other products with the focal brand is known as ______
The substitution effect
Marketers work to determine the key message they want to send to whom?
The target audience
A distribution center primarily coordinates
The transportation and storage of merchandise
Firms have begun to rely more heavily on communicating with their customers through ______
Their websites
Which of the following are true of distribution centers? (Select all that apply.)
They are less expensive space options than retail stores They are better equipped than stores to prepare merchandise for sale
Which of these statements best describes the relationship wholesalers have with manufacturers and retailers?
They buy from manufacturers, then resell to retailers or business users
Which of the following accurately characterize demand curves?
They relate demand to prices while assuming everything else remains unchanged They show how much consumers will demand during a specific period at different prices
Distribution intensity is typically divided into how many levels?
Three
Where do fulfillment centers ship goods?
To consumers
Which of the following are reasons that firms implement a market penetration pricing strategy?
To earn profits To establish market share To build sales To discourage competitiors
How do managers use break-even analysis?
To find a production quantity where, for a given price, costs are equal to revenues
When firms develop a marketing mix as part of their global marketing strategy, what is their primary goal?
To sustain a competitive advantage over time
When someone is asked to name a brand of soda, most consumers will reply back with Coca-Cola. This is an example of ______ awareness
Top-of-mind
The _____ is fixed costs plus the sum of the variable costs
Total cost
A break-even analysis graph shows curves for which of the following?
Total costs, fixed costs, and revenue
Price times quantity is ______
Total revenue
Variable cost per unit times quantity equals ______
Total variable cost
If a laundry soap manufacturer decides to introduce a single-use package of detergent in a developing country when it only sells the detergent in bulk sizes in the home country, which global product strategy is the company using?
Totally new product or service
What global product strategy does a firm pursue if it offers a product in one country that uses ingredients not found in the products it sells in other countries?
Totally new product or service
Which of the following is a franchisor typically responsible for?
Training new managers
The ______ refers to the agency or intermediary that works alongside the sender in the communication process to develop marketing communications
Transmitter
Zubi Advertising Services, Inc. has worked with American Airlines to create advertisements across various media. Here the ad agency could be seen as which of the following roles within the communication process?
Transmitter
The complex value chains inherent in global distribution networks include which of the following?
Transportation systems, wholesalers, importers, and exporters
True or false: A blog should be transparent and contain authors' honest observations, leading to customer trust and loyalty
True
True or false: A global marketing mix is more complicated than a domestic marketing mix
True
True or false: In general, customers are more sensitive to price increases than to price decreases
True
True or false: Social shopping involves sending e-mails to specific customers about new products that may be of interest to them
True
Which of the following do companies take into account when engaging in dynamic pricing?
Type of customer, time of day, level of demand
The assumptions a group of people have regarding the world and the people in it are an example of the ______ of a culture
Underlying assumptions
Culture exists on several levels. Which of the following levels are included?
Underlying values, such as beliefs and thoughts
How does penetration pricing discourage rival companies from entering the market?
Usually none of the companies make much profit in this situation Competitors who enter the market will temporarily face higher unit costs
When a new product is launched in a market where similar items are already being sold, how is the price typically determined?
Value-based methods
Primary labor and materials are also known as ______ because they change with production volume
Variable costs
Total cost is
Variable costs plus fixed costs
Generally, relationships in supply chains exist because the parties ______
Want or need something from one another
Marketing channels include which of the following? (Select all that apply.)
Warehouses Stores
Distribution centers use computers to plan delivery truck routes that take into consideration which of the following? (Select all that apply.)
Where retail outlets are located The condition of the roads that day
What is the first decision to be made when considering merchandise flow?
Where the merchandise will go
Imagine that a firm sends out a message in the form of a print advertisement for a product. Which of the following elements is most likely to contribute to how receivers decode the message differently?
Whether or not the receiver is a user of the firm's product
When an advertiser is assessing an advertisement's impact through pretesting, what is most likely to be measured?
Whether or not the various elements in the proposed ad match the intended message
A business that buys products from manufacturers and resells them to retailers or industrial or business users is known as a(n)
Wholesaler
Manufacturers make products and sell them to ______, who resell the merchandise to retailers
Wholesalers
Information in a supply chain flows to and from which of the following?
Wholesalers Manufacturers Distribution centers
When implementing a push strategy, the producer will focus on promoting to which of the following groups?
Wholesalers, salespeople, and retailers
A direct marketing channel sells a product from a manufacturer to a consumer ______
Without a retailer
At the break-even point, profits on the sale of a product are ______
Zero
When a company uses its advertising budget to purchase airtime or print pages, it is conducting a(n) ______ buy
media