MGMT Exam 3 Questions

Laggards make up roughly Blank______ of the market.

16%

Which statement about marketing channels is true?

A marketing channel may be a combination of a direct channel and an indirect channel.

What is a wholesaler?

A company that buys merchandise from manufacturers and resells it to retailers

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 statements about measuring marketing campaigns are true? (Choose every correct answer.)

Factors such as the lagged effect can complicate the measurement process. The success of campaigns is measured using marketing metrics.

True or False: New products must be targeted toward end consumers.

False

Product development or product design entails a process of balancing which types of considerations? (Choose every correct answer.)

Manufacturing, Engineering, Marketing

What are key characteristics of the introduction stage? (Choose every correct answer.)

Profits are low, Start-up costs are high

Without innovation, what options would be available to firms? (Choose every correct answer.)

Take current products to new markets, Continue to market current products to current customers

What objectives do firms have in adding new products, services, and processes to their offerings? (Choose every correct answer.)

To keep customers from getting bored, to satisfy the changing needs of customers

Early ____ are the category of consumers who begin to use a product or service immediately following innovators. (Remember to type only one word in the blank.)

adopters

New products and services that consumers accept quickly will have a high Blank______ rate early in their product life cycles, which will accelerate the diffusion process across the various stages.

adoption

What activity involves placing announcements and persuasive messages in the mass media, to inform and/or persuade a target market or audience about products, services, organizations, or ideas?

advertising

Price fixing is the illegal tactic of cooperating with other firms to ______ prices.

artificially establish

The five Cs of pricing are company objectives, customers, cost, channel members, and

competition

Break-even analysis examines the relationships between which of the following? (Choose every correct answer.)

cost, price

The percentage change in the quantity of one product demanded compared with the percentage change in price in another product is called _______ -price elasticity.

cross

In which type of marketing channel are products are sold by a manufacturer to a consumer without going through a retailer?

direct

Telephone calls, mailed flyers, mailed catalogs, and e-mails can all be considered part of Blank______.

direct marketing

Which of the following are the common types of marketing channels? (Check all that apply.)

direct, indirect

A ________ center is a facility where goods are received, stored, and shipped to company stores.

distribution

What term describes a facility that receives, stores, and redistributes merchandise?

distribution center

One advantage of product innovation is that a firm can expand into different product categories. The point of the risk Blank______ strategy is that if some products in one category are competing poorly, others in another category could be doing very well.

diversification

True or false: A firm with a primary objective of very high sales growth will have the same pricing strategy as a firm with a primary objective of being a quality leader. True false question.

false

Those consumers who enter the market for the first time during the decline stage are known as ______.

laggards

Using demand notifications to notify sales associates who can physically pull an item from store shelves and verify its availability is part of_____ task management.

mobile

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 a 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 Blank______.

predatory pricing

The overall sacrifice a consumer makes to acquire a product or service is known as _____

price

Strategic relationships are beneficial because they help members do which of the following? (Choose every correct answer.)

Accomplish goals Take risks Develop joint projects

Which of the following intermediaries are included in indirect marketing channels? (Check all that apply.)

Merchandise wholesaler Retailer

What term describes tiny scannable computer chips used to provide information about a container or product?

RFID tags

Adding new products is MOST likely to prompt consumers to purchase in which of the following industries?

Video Games

__________ of innovation is the process by which the use of an innovation, whether a product or a service, spreads throughout a market group over time and over various categories of adopters. (Enter one word in each blank.)

diffusion

A company that develops a new merchandise tracking technology that automatically notifies suppliers when a new shipment is needed is using its new product to ______.

improve business relationships

According to the cross-price elasticity of demand, when the price of DVD players drops, the demand for DVDs is likely to Blank______.

increase

In the management of market channels, a strategic relationship is also known as a(n) Blank______.

partnering relationship

In order to accurately evaluate the new product launch, marketers must undertake a critical Blank______ review to determine whether the product and its launch were a success or failure.

post launch

When supply chain members realize that their goals and success are linked to others on the same team, they develop deeper long-term Blank______.

relationships

Offering to buy more of a product if a manufacturer lowers its wholesale price is an example of ______ power.

reward

Strategic relationships rely on which of the following to succeed? (Choose every correct answer.)

Mutual trust Credible commitments

What term describes the ratio of change in a price and its effect on the quantity of the product demanded?

Price elasticity of demand

Which of these is a measure of how effective an ad is for the amount spent?

ROMI

Which of the following is one of the five Cs of pricing?

channel members

What is the most direct supply chain in a simple economy?

manufacture to consumer

If a firm has positive results from market testing, the next step will be the _______ ________.

product launch

What type of orientation is exemplified by target return pricing?

profit

The integration of suppliers, manufacturers, warehouses, stores, and transportation intermediaries is called Blank______ management.

marketing channel

A direct marketing channel sells a product from a manufacturer to a consumer ______.

without a retailer

Franchisors agree to operate outlets in accordance with procedures prescribed by its franchisees.

false

What does a postlaunch review help determine? (Choose every correct answer.)

Whether changes to the marketing mix are needed, Whether additional resources are needed, Whether the launch was a success or failure

Puffery is illegal in advertising.

false

The sales department of a company rarely coordinates with the manufacturing department.

false

To whom are a lump sum and royalties paid when a franchise opens?

the franchiser

What information is gained by adding variable and fixed costs together?

total cost

While late to the party, the late majority category of consumers is still significant, making up roughly Blank______ of the total consumer market.

34%

There are a number of ways in which marketers can build top-of-mind brand awareness among consumers. Which of the following would NOT be an ideal strategy?

Adopting a generic look for the brand

Which of the following is the most visible IMC component?

Advertising

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 processes could be considered an acceptable method for generating ideas? (Choose every correct answer.)

Brainstorming within the firm, Communicating with a firm's R&D department, Conducting consumer research, Researching competitors' products and services

What is a useful technique that enables managers to examine the relationships among cost, price, revenue, and profit over different levels of production and sales?

Break-even analysis

Which of the following is a way by which risk can be diversified?

By creating a broader portfolio of products through innovation

Which of the following are considered part of the five Cs of pricing? (Choose every correct answer.)

Competition Channel members Customers Company objectives

In which type of marketing channel are multiple segments owned by the parent company?

Corporate vertical marketing system

What is the best way to avoid vertical channel conflict?

Ensure that communication between channel partners is honest and open.

After a new product is launched, what is the next step of the product development process?

Evaluation of results

What is a key characteristic of the maturity stage?

Firms defending market share

Which of the following do you need to know to calculate target return price? (Check all that apply.)

Fixed costs Expected unit sales Variable costs

Product development entails a variety of processes and considerations to determine which aspects of a product or service?

Form and features

Which of these elements would be the most important for building a top-of-mind level of brand awareness?

Having a memorable brand

Which of the following factors influence how rapidly a product will move through the product life cycle? (Choose every correct answer.)

How valuable the product is to the consumer, How different the product is from other offerings in the market

Firms can highlight a product's relative advantage, which refers to which perception among consumers about the product?

It is better than substitutes

Which of the following factors cause fulfillment centers to operate a little differently when processing online orders than orders shipped to stores? (Check all that apply.)

Orders are sent out in relatively small quantities. Orders arrive from customers one at a time.

Which of the following are advantages of using a distribution center? (Choose every correct answer.)

Retailers no longer have to make separate sales forecasts for each individual store. Retailers are less likely to overstock or understock merchandise. Retailers can make lower inventory investments.

When a customer purchases merchandise, it triggers a flow of information that will eventually reach which elements of the supply chain? (Choose every correct answer.)

Suppliers of raw materials Product manufacturers Distribution centers

______ defines the stages products move through as they enter, get established in, and ultimately leave the marketplace.

The product life cycle

True or False: Managers can use the product life cycle model to help predict what pricing, product, promotional, and placement strategies they should employ at each of the four stages.

True

What might a concept include along with a brief written description of the product? (Choose every correct answer.)

Visual images, Customer needs it satisfies

RFID tags Blank______.

act as passive tracking devices

Channel conflict is more likely to be minimized when channels Blank______.

are closely aligned

A _____ is a written description of a product and its technology and is presented to potential buyers or users to obtain their reactions.

concept

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

Which vertical marketing system gives complete power to the parent company?

corporate

What is the first flow of information (Flow 1) in a supply chain?_.

customer to store

In the United States, it is considered unethical and illegal for advertisements to Blank______ the consumer so much that the person is harmed.

deceive

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 Blank______ a given message differently.

decode

In a marketing channel, the sales department must coordinate delivery with Blank______.

distribution centers

For most products, demand increases as the price decreases. Because of this general trend, demand curves usually have a(n) ______ slope.

downward

Using predatory pricing, a firm sets a very low price for one or more of its products with the goal of Blank______.

driving its competition out of business

Which pricing strategy appeals to consumers because it reduces their need to spend time comparing prices at various stores?

everyday low pricing

Which pricing strategy is involved when 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 pricing

A direct, manufacturer-to-consumer supply chain is a poor choice in a simple economy.

false

True or false: A firm with a primary objective of very high sales growth will have the same pricing strategy as a firm with a primary objective of being a quality leader.

false

True or false: Marketers should expect to measure the full potential of a marketing campaign immediately after it is launched.

false

Usually, during the ________ stage of the product life cycle, the typical consumers are early adopters, and there are increases in the number of competitors.

growth

Which type of marketing channel includes a retailer or other intermediaries in the delivery of goods and services to consumers?

indirect

To learn more about their customers, manufacturers often try to engage directly with customers on their websites. This allows manufacturers to become less dependent on retailers for customer insights. These manufacturers are seeking to limit the

information

______is the process by which ideas are transformed into new products and services that will help firms grow.

innovation

Which of the following describes deep, long-term relationships between supply chain members that are based on mutual benefits?

interdependence

The ______ stage of the life cycle for a new product or service category usually starts with a single firm, and innovators are the ones to try the new offering.

introduction

What will happen to a firm if it continues to produce the same products in a saturated market?

it will eventually decline

A good or service may pass through many stages as it establishes itself in the marketplace. Marketing managers refer to this as the product ______ cycle.

life

Which of the following is another term for target return percentage?

markup

During the ______ stage of the product life cycle, the market for the product usually becomes saturated.

maturity

What term describes scheming with other companies to control prices?

price fixing

Competition, channel members, costs, customers, and company objectives are the five critical components of ______.

pricing

What is the first component in the communication process?

sender

The sender of a message Blank______ the audience.

should be clearly known by

In a Blank______ 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

Another term for marketing channel management is Blank______ management.

supply chain

Firms that are less concerned with the level of profits and more interested in the rate at which profits are generated relative to their investments tend to use Blank______.

target return pricing

Which of the following is a market testing method that offers a strong predictor of product success based on actual purchasing behavior?

test marketing

Which statement in true about business relationships in supply chains?

they are based on meeting each others needs

To minimize conflict, each member of the supply chain should Blank______ what drives the other members.

understand

When a product is first launched during the introduction stage, sales are usually Blank______ and there are Blank______ competitors.

very low; essentially no

Generally, relationships in supply chains exist because the parties blank_.

want or need something from one another

Manufacturers make products and sell them to Blank______, who resell the merchandise to retailers.

wholesalers