Midterm 2 MARK KOCH
Price Elasticity of demand=
% change quantity demanded/ % change in price
Cooperson Credit Union has instructed its PR department to provide funds to the latest cancer fund-raising drive in its community. Which public relations tool is this an example of? A. audiovisual materials B. lobbying C. public service activities D. news E. special events
C
Online Social Networks
Facebook, Twitter, YouTube
Where new ideas come from?; Internal Idea Sources
Getting ideas from within an organization through R&D, employees, sales force, etc
Where new ideas come from?; External Idea Sources
Getting ideas from within the orgainzaton through distribution and supply, competitors, and customers
Elastic Price
if demand CHANGES DIRECTLY with a small change in price
Inelastic Price
if demand hardly changes with a small change in price
Reminder Advertising
important with mature products to help maintain customer relationships and keep customers thinking about the product
10. What is the LEAST likely cause of new-product failure? A. A company spends too much effort researching customers and competitors before making decisions about market strategy. B. A company rushes the new product's release, so the design is of poor quality. C. The marketing department advertises the product without positioning it in the company's brand. D. A company significantly marks up the price of a new product in comparison to similar products on the market. E. A company overestimates the size of the market when introducing the new product.
A
Cost-based pricing; Cost-plus (markup) pricing
Adding a standard markup to the cost of the product.
A company that owns a chain of designer fashion discount stores launches a chain of stores selling off-brand discount clothes in the urban market. Which of the following best describes the company's strategy for the new store chain? A. fighter brand B. back-to-basics C. base-point pricing D. retail price maintenance E. bottom-of-the-pyramid
A
A major chain of record stores finds its sales are falling. Although it has taken to intensely studying competitors like other brick-and-mortar record stores and mail-order record companies, as well as how its own customers interact with its sales staff, it cannot figure out where its business is going. Nobody at the company realizes that digital music downloads are taking a significant share of the company's former customers. This company has failed to account for which factor? A. competitor myopia B. customer behavior C. customer feedback D. competitor analysis E. competitor organization
A
A specific communication task that must be accomplished during a certain time frame and focused at a specific audience is known as ______. A. an advertising objective B. a creative concept C. an advertising medium D. an execution style E. an advertising budget
A
A1 Foods supplies small stores like the Little Hen chain, and contracts Big Truk to handle distribution. Big Truk makes deliveries once a week. Little Hen owners want Big Truk to deliver three times a week because they don't have, and can't afford, extra storage space. Big Truk refuses because making fewer deliveries is cheaper. What dynamic is occurring? A. vertical channel conflict B. horizontal channel conflict C. contractual conflict D. disintermediation E. multichannel conflict
A
According to federal law, sellers must not talk to competitors when setting prices to avoid charges of ______. A. price fixing B. retail price maintenance C. predatory pricing D. price gouging E. price discrimination
A
Advertising is mostly used by business firms, but can also be used by ______. A. not-for-profit organizations B. spokespersons C. marketers D. insurance companies E. ancient civilizations
A
After a company has defined its channel objectives, which of the following is most important when identifying a major channel alternative? A. types of intermediaries B. channel objectives C. customer price preferences D. customer-value delivery network E. marketing channel design
A
Ander's Insurance has created a new sales strategy that it will implement next year. This new strategy calls for salespeople to call existing customers and send emails to prospective clients. What type of sales force is this? A. inside sales force B. outside sales force C. product sales force D. territorial sales force E. team selling
A
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is known as ______. A. advertising B. a spokesperson C. creative marketing D. social agenda E. public relations
A
Blake Retirement Home is spreading the word about its latest environmental benefits (a pool and a gym) by giving out DVDs to seniors and their children. Which public relations tool is this an example of? A. audiovisual materials B. corporate identity materials C. special events D. news E. written materials
A
In an attempt to gain market share, Star-Lyte recently dropped prices on its key product. However, the company's vision did not play out because competitors swiftly dropped their prices, and Star-Lyte's market share stayed the same. What is the likely reason for its competitors' response? A. There are few competitors making the product. B. There are many variations of the product on the market. C. The market is saturated with producers of the product. D. Buyers have little knowledge about the product. E. Buyers have little awareness of pricing for this type of product.
A
In the communication process, what is media? A. the channel that a message moves through B. the person who receives the message C. the party that sends the message D. the process of putting a message in symbolic form E. the process of assigning meaning to the message
A
Ivan runs an organic farm. He just signed a deal to supply a regional grocery chain, and he needs to contract with a distributor. Ivan's been burned before by getting stuck in long-term contracts that didn't address the unpredictability of farming. How can he avoid making this mistake when looking at potential distribution companies? A. He should evaluate them on adaptability criteria. B. He should evaluate them on control issues. C. He should evaluate them based on economic criteria. D. He should evaluate them on prior performance. E. He should evaluate them on logistical criteria.
A
Lenny lives in Boston and usually pays $5.00 for a hot dog from a sidewalk vendor. Visiting his friend Ted in New York, Lenny thinks that $7.00 for a hotdog is expensive. Ted thinks a $5.00 hot dog is cheap. What accounts for their disagreement? A. reference prices B. geographical pricing C. dynamic pricing D. by-product pricing E. zone prices
A
Many consumers are concerned about the protection of their online personal and financial information from theft or misuse, which is also referred to as __________? A. online security B. inappropriate content C. spamming D. concealed identity E. intrusive ads
A
Public relations (PR) is best defined as ______. A. building good relations with various publics B. news conferences and speeches C. public affairs concerned with community relationships D. the focus of advertisements E. lobbying with governments for legislation
A
Sales promotion consists of ______. A. short-term incentives to purchase products or services B. measurements to judge the return on promotion investments C. special events featuring brand names and products D. contests and trade shows that highlight key products E. coupons and rebates to win over customers
A
Sean used market-penetration pricing to launch his company's new solar-powered blender and grab a big chunk of market share. But things didn't work out as he planned. What could be the cause? A. Distribution costs rose as sales increased. B. The blender's low price limited competition. C. The initial price point did not change. D. Production costs decreased as sales volume increased. E. The market was highly sensitive to price.
A
Three months ago, a company raised its prices by 15 percent. The company's marketing team is discussing the decrease in demand for the company's products since that time. What are they analyzing? A. price elasticity B. social concerns C. target costing D. reseller's reactions E. cost-plus pricing
A
Tuan is meeting with reps from retail chains to introduce his company's new premium espresso machines for the home. To ensure that he can maximize revenue, Tuan draws up contracts stating that stores must sell the machines for $275. No stores agree to sell the machines. Why? A. Tuan is engaged in resale price maintenance. B. Tuan is engaged in predatory pricing. C. Tuan is engaged in discriminatory pricing. D. Tuan is engaged in deceptive pricing. E. Tuan is engaged in market skimming.
A
Website games that promote a product are an example of which promotional tool? A. direct marketing B. public relations C. sales promotion D. advertising E. personal selling
A
What is advertising? A. Any sponsored form of non-personal presentation and promotion of ideas, goods, or services. B. Personal presentations by the firm's sales force for the purpose of making sales. C. Carefully targeting individual consumers to obtain an immediate response. D. Building good relations with the company's various targets obtaining favorable publicity. E. Short-term incentives to encourage the purchase or sale of a product or service.
A
What is one disadvantage a customer-centered company must be prepared to handle? A. diminished ability to predict competitor maneuvers B. lack of value in its products or services C. creation of an excellent product nobody wants to buy D. focus on what a product offers, rather than what it is E. difficulty creating sensible long-term marketing strategies
A
What is the definition of good-value pricing? A. It focuses on attaining the right combination of quality and service at a fair price. B. It uses buyers' perceptions of value as the key to pricing. C. It focuses on adding features to differentiate a product from others in the market. D. It uses employees' attitudes about value as a basis for pricing. E. It involves setting all prices to be lower than the competition.
A
Which of the following demonstrates why a company might want to run a blog? A. to generate community discussion of its products, services, and related topics B. to create a network of online sites that promote the company's products C. to improve the quality of reviews left on third-party sites of its products D. to encourage independent bloggers to talk about its products E. to increase customer interaction with digital catalogs and other marketing items
A
Which of the following is NOT an example of a retailer taking action due to tighter consumer spending? A. Borders Books increased prices on all products by 20%. B. Macy's laid off employees. C. Target introduced TV ads with price messages. D. Whole Foods Market began promoting its private label brand. E. Home Depot changed its tagline to "More saving. More doing."
A
Which of the following is a vital part of integrated logistics management? A. cross-functional teamwork B. inventory management C. building logistics partnerships D. intermodal transportation E. third-party logistics
A
Which of the following is an example of a pull strategy? A. creating an online video channel that showcases new products B. making commercials for resellers who advertise products C. sending products to retailers who advertise them D. doing very little to advertise products to consumers E. using personal presentations to get outlets to start stocking products
A
Which of the following is an example of direct marketing not being properly integrated into integrated marketing communications? A. A company's interactive website contradicts its product message. B. A company offers too few coupons that meet a product's demand. C. A company's press release is confusing and incoherent. D. A company does not allot enough money for commercials. E. A company's product presentation is uninformative.
A
Which of the following is an example of the conviction stage in the buyer-readiness stages? A. A consumer believes that Coca-Cola is the best tasting beverage. B. A consumer knows what Coca-Cola is. C. A consumer really enjoys drinking Coca-Cola. D. A consumer enjoys drinking Coca-Cola more than Pepsi. E. A consumer has heard of a beverage called Coca-Cola.
A
Which of the following scenarios is an example of by-product pricing? A. A burger joint sells its used frying oil to a company that makes soap from it. B. A store donates unsold clothes to an organization that gives them to low-income students needing interview outfits. C. A metal fabricator collects its shop floor trimmings and melts them down to use in other products. D. A restaurant provides overstock items from its pantry for the city's annual food drive. E. A garage charges customers a fee to cover appropriate disposal of their used motor oil.
A
Which of the following steps in the new-product development process is defined by a review of the sales, costs, and profit projections to assess whether these factors satisfy the company's goals? A. Business analysis B. Crowdsourcing C. Idea generation D. Concept testing E. Marketing strategy development
A
Which term describes the company, suppliers, distributors, and customers who "partner" with each other to improve the performance of a system? A. value delivery network B. contact channel C. marketing channel D. manufacturing channel E. distribution channel
A
Why is online marketing a key part of direct marketing for companies that want to reach as many potential customers in multiple international markets? A. Use of the Internet for consumer transactions continues to grow worldwide. B. Consumers now expect television ads to be interactive. C. Digital catalogs have largely replaced print catalogs in most households. D. Online marketing is often cheaper and greener than other methods. E. Home country customers are more likely to try a company after finding it online.
A
Direct Channels
A marketing channel that has no intermediary levels
Advertising objective
A specific communication task to be accomplished with a specific target audience during a specific period of time.
Positioning Statements
A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference).
Price- Adjustment Strategies; International Pricing
A uniform worldwide price
Which tool of a promotion mix is the most expensive for companies? A. sales promotion B. personal selling C. advertising D. public relations E. direct marketing
B
Promotion tools
Advertising, Sales promotion, Personal selling, Public relations, and Direct marketing.
Jobs at Ad Agencies
Art directors-Help translate the copywriters' ideas into dramatic visuals called "layouts." Copywriter - Copywriters write advertising copy and help find the concepts behind the written words and visual images of advertisements. Account development executives - Research and understand clients' markets and customers and help develop marketing and advertising strategies to impact them. Account executives - Serve as liaisons between clients and agencies Account planners - Serve as the voice of the consumer in the agency Media planners (or buyers) - Determine the best mix of television, radio, newspaper, magazine, digital, and other media for the advertising campaign.
Customter value-based pricing; Value-added pricing
Attaching value-added features and services to differentiate a company's offers and charging higher prices
A company that fights to hold onto its existing market share without struggling to gain market share or overtake the company with the largest amount of market share is known by what name? A. market challenger B. market follower C. market nicher D. market leader E. market analyst
B
A company that sells school supplies decides to develop a new product line by buying a license to use Disney characters. This company is most likely obtaining a new product through which of the following means? A. Product development B. Acquisition C. Marketing strategy D. Concept testing E. Test marketing
B
A customer-centered company relies on which type of data to guide its planning and decision-making processes? A. other companies' behavior or plans B. feedback from buyers or potential buyers C. examinations of popular advertising or products D. information contained in aggregate market analyses E. intelligence on trade secrets or intellectual property
B
A firm's accountant is analyzing how much money the company spends on its lease, equipment rentals, and executive salaries. The accountant is reviewing the firm's ______ costs. A. total B. fixed C. variable D. customer E. avoidable
B
A start-up company in Silicon Valley hires employees from various backgrounds to take an interdisciplinary approach to innovation. Every Friday, the company hosts a brainstorming session with employees for new product ideas, and the company encourages all levels of employees to post suggestions on its internal social network. This type of idea generation comes from what type of source? A. Suppliers B. Internal C. Customers D. Competitors E. Distributors
B
Advertising that appears while consumers are browsing the Internet, including display ads, search-related ads, classifieds, and other forms is known by what name? A. blogs B. online advertising C. digital catalogs D. direct e-mail E. direct-response interactive television
B
Which promotion budget method is based on the amount of funds manageable for a company? A. objective-and-task method B. affordable method C. percentage-of-sales method D. competitive-parity method E. push method
B
Halifax Windows uses its sales force to sell the latest versions of its window products. However, customer satisfaction concerning these new windows is low and sales are beginning to drop off as more customers grow angry. Which salesperson-based solution can most effectively solve Halifax's problem? A. create salesperson-owned loyalty through key relationship-building activities B. encourage salespeople to relay customer concerns and needs to firm leaders C. create a sales strategy that focuses on only selling expensive items D. teach salespeople to work more closely with the marketing department E. direct salespeople to wait for orders, not to actively seek out sales
B
How do most savvy marketers approach price? A. They create the illusion that the product is free. B. They use it to create customer value. C. They avoid talking about it in print advertisements. D. They use it to retain employees. E. They downplay it and focus on discounts instead.
B
Jake's So-Lo Furniture chain ran a commercial for a leather sofa priced at $159. When customers came in to buy the item, salespeople said the $159 price was available only if they bought a matching love seat and coffee table. Bought separately, the sofa cost $359. Jake is now under investigation for ______. A. predatory pricing B. deceptive pricing C. discriminatory pricing D. retail price maintenance E. price fixing
B
Nielson's Auto Company uses a sales process that focuses on stories about past customers who have become angry with other auto dealers but found what they were looking for at Nielson's. In which part of the sales process do these stories occur? A. prospecting B. presentation C. follow-up D. closing E. handling objections
B
P&G conducts a program called "Living It" in which case researchers live with shoppers for several days in order to think of product ideas based on this experience. This program is based on the assumption that which of the following is the most important aspect of successful new-product development? A. Suppliers B. Customers C. Distributors D. Inventors E. Competitors
B
Sandy works at Wireway Electronics, where she waits for customers to bring her products they want to buy or to ask questions about current products and which ones would work best for them. She rarely employs creative selling techniques. Which function of a salesperson is Sandy demonstrating? A. order getting B. order taking C. personal selling D. relationship building E. creative selling
B
Sellers cannot use ______ by selling below cost with the intention of punishing a competitor. A. price discrimination B. predatory pricing C. retail price maintenance D. price fixing E. deceptive pricing
B
Trey's company makes surfboards from sustainable wood. They are costly to produce, so his partner thinks they should be sold only in top pro shops. But Trey wants to build awareness about sustainable products, so he thinks they should be sold at a wider range of retailers targeting recreational surfers with high income. Which distribution strategy does Trey recommend? A. intensive distribution B. selective distribution C. segmented distribution D. horizontal distribution E. exclusive distribution
B
When a producer agrees not to sell to other dealers in an area, this is called ________. A. exclusive dealing B. exclusive territorial agreements C. full-line forcing D. exclusive distribution E. tying agreements
B
When sales are at zero, which stage of the product life cycle is the most likely product in? A. Growth B. Production development C. Introduction D. Maturity E. Decline
B
Which of the following best describes online marketing as a whole? A. using interactive television to connect customers online as they view a direct-response ad B. efforts to market products and services and build customer relationships over the Internet C. setting up kiosks that connect users to the Internet when they buy a good or look for information D. offering digital catalogs for e-mail or download so customers can browse a company's selection E. sending e-mail directly to customers with tailored information that fits their preferences
B
Which of the following defines a vertical marketing system? A. independent firms at different levels of production and distribution join together B. a structure in which producers, wholesalers, and retailers act as a unified system C. one or more independent producers, wholesalers, and retailers, each seeking to maximize profits D. a franchisor who owns several stages in the production-distribution process E. a system that combines successive stages of production and distribution under single ownership
B
Which of the following definitions best fits a multichannel distribution system? A. a system that coordinates successive stages of production and distribution through the size and power of one of the parties B. a single firm sets up two or more marketing channels to reach one or more customer segments C. two or more companies at one level join together to follow a new marketing opportunity D. cutting out marketing channel intermediaries by product or service producers E. independent firms at different levels of production and distribution join together
B
Which of the following describes an off-price retailer? A. a store that carries several product lines with each line operated as a separate department B. a store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail C. a store that has a narrow product line and a deep assortment, such as an apparel or sporting-goods store D. a relatively large, low-cost, low-margin, high-volume, self-service operation for grocery and household products E. a store that carries standard merchandise sold at lower prices with lower margins and higher volumes
B
Which of the following describes what a market challenger does? A. it collects data about players in a particular market and disseminates it to market members B. it finds itself in a runner-up position in an industry and fights hard to increase its market share C. it holds the largest single share of any given market D. it works to provide niche goods that other market players do not offer E. it fights to hold its ground in a particular market but not to increase its market share
B
Which of the following establishes why the national Do Not Call registry did not destroy the telemarketing industry? A. Increased numbers of cell phones gave telemarketers a new outlet for outbound calls. B. Increased inbound calls and B2B telemarketing compensated for fewer outbound calls. C. Customers began to contact companies via the Internet instead of by phone. D. Most U.S. households did not sign up for the Do Not Call list. E. The Do Not Call list eliminated only repeat calls, not initial contacts.
B
Which of the following includes incentives to encourage the purchase or sale of a product or service? A. direct marketing B. sales promotion C. personal selling D. advertising E. public relations
B
Which of the following is NOT a promotional tool for retailers? A. sales promotion B. location C. direct marketing D. advertising E. personal selling
B
Which of the following is NOT an example of how McKesson, a medical wholesaler, added value to its customer relationships? A. It offered pharmaceutical-dispensing machines. B. It offered licensing to pharmacists. C. It offered real-time order tracking. D. It created an online supply management system. E. It created an online accounts receivable system.
B
Which of the following is NOT changing in the communication landscape for advertising? A. communications technology B. traditional mass media C. marketing strategies D. consumers E. marketing communications
B
Which of the following is an example of public relations? A. commercials B. media interviews C. buy-one-get-one-free deals D. conventions E. social networking
B
Which of the following is likely to occur when a company finds a market for the by-products of a primary product? A. The production costs of the original product decrease. B. The disposal costs of by-products are offset. C. Demand for the original product decreases. D. The production costs of the original product increase. E. The price of the original product becomes less competitive.
B
Which of the following is the best example of a customer database? A. a list of all goods or services previously ordered by a customer B. a collection of data about individual customers or prospects C. a list of product SKUs, specifications, and prices D. a way for customers to offer feedback about products and services E. a method of generating surveys to collect customer feedback
B
A PR office's written materials would include ______. A. donations and volunteer activities B. DVDs and online videos C. annual reports, brochures, and articles D. news reports and interviews with media agencies E. conferences, grand openings, and educational programs
C
A company that takes its cues from what other companies in the same market are doing or plan to do is primarily which kind of company? A. analysis-centered B. market-centered C. competitor-centered D. niche-centered E. customer-centered
C
A program has been created to help families sign up for federal loan assistance. Which is the best body to advertise this type of program? A. all insurance companies B. a nonprofit organization C. the government D. a business firm E. Allstate
C
All of the following are best practice marketing strategies that can be used during the maturity stage of the product life cycle EXCEPT which? A. Increasing usage for current customers B. Modifying the marketing mix C. Defending the quality of the product D. Modifying the market E. Updating the product
C
An individual who represents a company to customers by prospecting, communicating, selling, or performing a similar service is known as ______. A. a spokesperson B. an order getter C. a salesperson D. an order taker E. a brand manager
C
Greg's Auto Shop has created an advertisement that shows it is the perfect solution for busy mothers who have children and jobs and need their car problems fixed as soon as possible. What type of execution style does this represent? A. fantasy B. mood or image C. lifestyle D. slice of life E. musical
C
Henry has been put in charge of sales in a state that his company is entering for the first time. Because the company branch is new, Henry begins by studying the market and creating a list of local businesses that use products similar to those his company sells. Which sales step does this illustrate? A. presentation B. approach C. prospecting D. closing E. preapproach
C
Juan's boss asked him to do a cost-benefit analysis of various intermodal transportation options to get the company's product to appropriate markets. Which of the following modes should Juan NOT analyze? A. airtruck B. fishyback C. Internet D. piggyback E. trainship
C
Lawson & Henry Accounting has a PR department that has recently reached out to shareholders to provide them with additional explanations of company strategy. This is an example of which PR function? A. lobbying B. development C. investor relations D. press relations E. product publicity
C
Mya is working to develop the marketing logistics for her company's line of furniture. There are many components and factors to consider, but what should be the ultimate goal of Mya's marketing logistics plan? A. to move product efficiently B. to maximize sales C. to earn a profit D. to meet customer requirements E. to add value at every channel
C
News conferences, speeches, and press tours are types of PR ______. A. media B. written materials C. special events D. lobbying E. audiovisual materials
C
One concern about the large amount of information contained in consumer databases is that they could be used for what unethical purpose? A. to offer feedback that helps customers B. to predict what new products customers might like C. to violate customer privacy D. to keep track of customer movements E. to target advertising to specific customers
C
Personal selling is defined as ______. A. representing customers and their concerns to the company B. nonpersonal communication with large groups of consumers C. presentations by the sales force to make sales and build relationships D. using short-term incentives to encourage purchasing E. sending mass emails to prospective customers
C
The leading company in a market tends to set the tone for that market in a number of ways, while smaller companies respond to its various behaviors. However, smaller companies also make changes for reasons that are not related to the market leader's behavior. Which of the following decisions can a small company make without ever considering the leader's behavior? A. distributing information about new products B. changing its prices C. repositioning its product to meet a specific need D. increasing promotional spending E. increasing or decreasing distribution coverage
C
The merging of entertainment and traditional advertisement is known as ______. A. advertising strategy B. alternative media C. Madison & Vine D. creative concept E. return on advertising investment
C
What is a blog? A. an online form that allows customers to leave comments about goods or services B. an automated stand at which customers can make purchases instantly C. an online journal where people post thoughts on a narrowly-defined topic D. a digital document containing images and descriptions of a company's products E. an electronic message used to inform people about goods or services
C
What is a corporate Web site, also known as a brand site? A. an ongoing list of topics on which people can comment and start conversations or dialogue B. an online journal focused on a specific topic C. an online presence designed to build customer goodwill rather than sell the company's products directly D. an online form customers can use to contact the company directly E. a digital collection of images and descriptions of the company's products
C
What is the definition of a voluntary retail chain? A. an association between a manufacturer and independent businesspeople who contract to operate one or more units in the owner's system B. a group of independent retailers who establish a central buying organization and conduct joint promotion efforts C. a wholesaler-sponsored group of independent retailers engaged in group buying and merchandising D. a retailing operation owned and operated by a manufacturer E. two or more outlets that are commonly owned and controlled
C
What is the definition of fixed costs? A. the sum of all company expenses B. costs that can never be recuperated by the company C. costs that do not vary with production or sales D. costs that vary directly with the level of production E. costs associated with charging sales tax
C
What is the first step to developing effective marketing communications? A. designing a message B. determining the communication objectives C. identifying the target audience D. choosing media E. selecting the media source
C
What makes a marketing Web site different from a corporate or brand Web site? A. Marketing Web sites answer customer questions via company contact, through a frequently-asked-questions page, or by similar means. B. Marketing Web sites provide information about products or services. C. Marketing Web sites try to sell products or services to customers who visit. D. Marketing Web sites attempt to build community and/or customer loyalty through games, forums, clubs, and similar tools. E. Marketing Web sites offer places for customers to leave feedback, such as reviews.
C
What must a company do before determining price? A. determine the sales tax it will charge B. survey employees about the advertised price C. determine the overall marketing strategy D. develop marketing materials E. decide how much of a discount it wants to give
C
When companies engage in benchmarking, what are they doing? A. struggling to maintain market share as compared to a set point in the past B. comparing their output and quality data at predetermined points over a course of many months or years to determine where the company can improve C. comparing their own products and processes to those of competitors in order to identify best practices and find ways to improve quality and performance D. predicting a competitor's plans in order to preempt them and gain market share E. identifying the competitor with the largest market share and creating ways to increase their own market share to overtake this competitor
C
Which example represents a difficulty with global advertisement? A. Global ads are not allowed to encourage customers to gamble. B. China prevents firms from advertising any alcoholic products. C. Canada bans junk food advertisements from children's TV. D. Firms must spend much more to advertise in foreign countries. E. India does not allow advertisers to use the words "the best."
C
Which of the following characterizes the wheel-of-retailing concept? A. Retail operations are becoming more global and multicultural. B. Retailers typically go through boom-or-bust cycles. C. New types of retailers evolve from low-status to higher-service operations. D. Business life cycles in retailing are gradually getting longer and more complex. E. Megaretailers are exerting more influence over suppliers.
C
Which of the following information is NOT included on the marketing strategy statement? A. Profit goals B. Planned value proposition C. Controlled test markets D. Distribution E. Target market
C
Which of the following is NOT a step in marketing channel management? A. selecting channel members B. evaluating channel members C. terminating channel members D. motivating channel members E. managing channel members
C
Which of the following is an example of a "small box" discount retailer? A. Mikasa B. Nordstrom Rack C. Dollar General D. Sheetz E. Marshalls
C
Which of the following is likely to have the smallest advertising budget? A. advertisements on Facebook B. Super Bowl television commercials C. advertisements in the New York Times D. advertisements on a smartphone app E. video commercials on a website
C
Which of the following is the process of identifying key competitors, assessing their objectives, strategies, strengths and weaknesses, and reaction patterns, and selecting which competitors to attack or avoid? A. market challenging B. competitive marketing C. competitive analysis D. market niching E. competitive advantage creation
C
Which of the following statements about standardization vs. adaptation of products in the international market is true? A. Standardization is detrimental to companies because it causes brand confusion, whereas adaptation allows for product differentiation across the globe. B. Standardization is unfavorable for companies because of high costs, so companies often adapt their products to keep costs low and to make global consumers happy. C. Standardization is beneficial to keep a consistent worldwide image and to lower manufacturing costs; however, companies often have to adapt to varying tastes and styles in an international market by appealing to specific consumer needs. D. Adaptation is the most favorable for companies because of low costs and customer value; however, companies often have to standardize their products to avoid brand confusion across the globe. E. Adaptation is unfavorable because it may be difficult for consumers to recognize the brand, so companies often use standardization to help create a standard product image, though this comes at a high cost.
C
Which of the following statements about wholesalers is NOT true? A. Wholesalers have reacted to rising costs by investing in automated warehouses and IT systems. B. Wholesalers must decide on product and service assortments, prices, promotion, and location. C. The distinction between large wholesalers and large retailers continues to grow. D. Wholesalers save customers money through the practice of bulk breaking. E. Wholesalers finance customers and suppliers to add value to the relationships.
C
Which term describes stocking a product in as many outlets as possible? A. exclusive distribution B. selective distribution C. intensive distribution D. all-inclusive distribution E. right to exclude distribution
C
Why might a company wish to avoid a competitor-centered approach to its marketing? A. Relying heavily on the damage negative consumer feedback causes to competitors provides the wrong focus. B. Marketing will fail to account for how a product compares to competing products on the market. C. Reacting to competitors may result in merely copying obsolete industry practices. D. Identifying competitor weaknesses highlights a company's own weaknesses. E. Finding a niche may not be enough to challenge a market leading company.
C
Your company has a blog that it uses to update customers concerning the latest services and discounts. It also uses the blog to post informational articles, marketing videos, and links to other important news stories in the industry. This is an example of ______. A. advertising efforts B. PR efforts C. both advertising and PR efforts D. development efforts E. lobbying efforts
C
Price-Adjustment Strategies
Companies adjust their basic prices to account for various customer differences and changing situations.
Test Marketing Risks and Cons and TYPES
Costs can be high Takes time that may allow competitors to gain advantages TYPES Standard Controlled Simulated
A banana company takes a market view of its competition by examining research on the nutritional value of its product and the benefits a banana's nutrition provides to buyers. As a result, the company identified several indirect competitors for its product. Which of the following is LEAST likely to appear on the banana company's indirect competitor list? A. a nutritional shake company B. a granola bar company C. a company that makes fortified cereal D. another banana company E. a vitamin pill company
D
A fast food company notices that frozen yogurt is becoming popular among consumers, so it decides to invest in a frozen yogurt machine. Initially, the fast food company sees a spike in sales of frozen yogurt, and then briefly afterward, the company experiences a rapid decline. The company is most likely experiencing which concept associated with the product life cycle? A. A product development B. A fashion C. An introduction stage D. A fad E. A style
D
A layer of marketing intermediaries that performs some work in bringing the product to the buyer is known as a ________. A. direct marketing channel B. indirect marketing channel C. advertising channel D. channel level E. marketing channel
D
A new smartphone enters the market, and after an initial slow climb in sales, the product sees a jump in sales and profits. Customers have mentioned that they heard about the new product through word of mouth and wanted to purchase the latest technology. Competitors are trying to keep up with this new product, which ultimately expands the market and decreases distribution costs. The company decides to lower the price of its product at the right time to attract more buyers and then experiences its highest profit rate. Based on this description, the product is most likely in which stage of the product life cycle? A. Introduction B. Product development stage C. Maturity stage D. Growth stage E. Decline
D
A sales quota is defined as ______. A. the number of salespeople a manager has reporting to him or her B. the number of days a salesperson works per week C. sales people who travel to call on customers face-to-face in the field D. a standard for the amount and type of sales a salesperson should make E. a team made from multiple business departments used to manage accounts
D
Barnes and Noble is an example of a(n) ______. A. department store B. off-price retailer C. discount store D. category killer E. specialty store
D
Falling demand in the face of strong price competition will most likely lead a company to ______. A. maintain prices and cut costs B. drop a fighter brand C. improve product quality and increase prices D. reduce prices E. increase prices
D
Hair Creations, a beauty salon, has slightly higher prices than other salons in the area, but the company justifies this by the fact that it gives aromatherapy hand massages with every haircut. Which major pricing strategy is Hair Creations using? A. cost-based pricing B. markup pricing C. break-even pricing D. value-added pricing E. competition-based pricing
D
Hector wants to analyze a direct consumer marketing channel for his business class. Which of the following scenarios should Hector use for his report? A. A food company sells pre-made pizzas to concession stands at a sports arena. B. An ice cream truck sells Good Humor brand treats to kids. C. A landscaping service sells shrubs to an office park. D. A woman sets up a table at a craft fair to sell wreaths she made from pine cones she gathered in the forest. E. Scouts go door-to-door selling cookies manufactured by the ABC Bakery.
D
Keith's startup company is launching its first product and he wants it to be a big hit. Which pricing strategy should he implement? A. by-product pricing B. captive product pricing C. product bundle pricing D. market-penetration pricing E. optional product pricing
D
Keystone Broadband has simple product packages that offer customers cable and Internet services. However, the company has a network that spans several counties in two different states. Which sales force structure would work best for Keystone? A. outside B. customer C. inside D. territorial E. product
D
Munch Factory recently created a new line of whole-grain healthy snacks that are flying off the shelves. Every store wants to carry them. To do so, Munch Factory requires retailers to also carry its older line of trans fat snacks, which has been losing market share. What type of marketing channel is Munch Factory using? A. exclusive dealing B. cross-brand distribution C. intensive distribution D. full-line forcing E. exclusive territory
D
What is one concern raised about high-pressure direct-marketing ads, like slick mailings, intense direct-response TV ads, or focused face-to-face sales? A. High-pressure tactics have proliferated in recent years. B. High-pressure tactics have an unusually high potential for perpetuating fraud. C. High-pressure tactics leave customer information vulnerable to theft. D. High-pressure tactics may take unfair advantage of unsophisticated buyers. E. High-pressure tactics are impossible to avoid online.
D
Successful retailers define their ______ well and ______ themselves strongly. A. target markets, leverage B. industry, advertise C. segment, position D. target markets, position E. competition, market
D
Suppose your industry is known for its reassuring advertisements that feature only the benefits of the service you offer. How can you make your own ad campaign stand out more effectively? A. creating a song or jingle for your advertisement B. motivation for customers to take part in a census C. new emphasis on the company logo and tagline D. edgy advertisements featuring notable spokespersons E. government assistance in creating advertisements
D
There are 200 oats suppliers in a tri-state area. Among them, there is very little variation in price. This is an example of a ______. A. demand curve B. oligopolistic competition C. monopolistic competition D. pure competition E. pure monopoly
D
Using people from sales, marketing, engineering, and other departments to manage sales accounts is known as ______. A. complex sales force structure B. motivating salespeople C. sales quotas D. team selling E. workload approach
D
Value selling is defined as ______. A. the sales step where the customer is asked to order B. several steps that salespeople use to make a successful sale C. aiming to close a specific sale with a specific customer D. demonstrating superior value to customers for a fair sale E. researching buyers and buyer organizations before contacting them
D
AIDA Model
Get Attention Hold Interest Arouse Desire Obtain Action
What is the goal of market-penetration pricing? A. to generate buzz about a product that is not widely available B. to reward customers for product and brand loyalty C. to attract a small but profitable segment of the market D. to attract a large number of buyers quickly and win a large market share E. to offer products at different value levels to attract different types of customers
D
When Gillette sells low-priced razors that require high-priced blades, the company is using ______ pricing. A. product line B. product bundle C. optional product D. captive product E. by-product
D
When PR departments maintain relationships with governments and legislators in order to influence legislation, it is known as ______. A. press agency B. investor relations C. product publicity D. lobbying E. development
D
When a salesperson directly asks a customer to make an order, it is known as ______. A. the follow-up B. the preapproach C. the presentation D. the closing E. the demonstration
D
When marketers sponsor tours, festivals, or similar activities to help build their brands, it is known as ______. A. frequency marketing programs B. trade promotions C. sales promotions D. event marketing E. advertising specialties
D
Which of the following forms of direct marketing require a human salesperson to interact directly with a customer or a potential customer? A. online marketing B. kiosk marketing C. catalog marketing D. face-to-face marketing E. direct-mail marketing
D
Which of the following is NOT a cost? A. Internet marketing B. radio time C. T.V. advertisements D. organizational structure E. marketers' salaries
D
Which of the following is NOT a current trend or development in retailing? A. increase in new retail forms B. growth of green retailing C. decreased consumer spending D. increase in "mom and pop" stores E. growth of online retailing
D
Which of the following is NOT a supply chain management activity? A. production planning B. purchasing C. information systems D. hiring additional employees E. forecasting
D
Which of the following is NOT an example of how a retail store creates a desired atmosphere? A. Thomas Pink uses a "line-dried linen" scent in its stores. B. Cabela's stores resemble natural history museums. C. Title Nine strives to be a gathering spot for women. D. Nordstrom pledges to "take care of the customer, no matter what it takes." E. Six Flags theme parks release popcorn aromas.
D
Which of the following is NOT an important condition for a market-skimming pricing strategy to be effective? A. There must be demand for the product at the higher price. B. Competitors should not be able to enter the market easily. C. The costs of producing a small volume cannot be prohibitively high. D. The product must be well established in the market when the highest price is charged. E. The product's quality and image must support its high price.
D
Which of the following is the best example of Internet fraud? A. convincing users to pay more for a product purchased online than they would pay for it in a physical store B. the use of display advertising programmed to avoid pop-up or spam blockers C. disguising customer feedback methods as online communities or blogs D. phony or deceptive practices used to obtain money or information, often packaged as online marketing E. buying or selling contact information for potential customers gathered online
D
Wholesalers add value by doing all of the following EXCEPT ______. A. risk bearing for various circumstances B. warehousing various types of goods C. buying and assortment building D. representing retail workers E. selling and promoting goods
D
Writing an email to a company to express approval of its television commercial is an example of which step in the communication process? A. noise B. decoding C. receiver D. feedback E. response
D
You work as a marketer in a small retail store specializing in office equipment. One day you get a call from a supplier who offers a 10-percent discount on a product line only if you put the product on more valuable shelf space where customers can easily see it. This is an example of ________. A. event marketing B. consumer promotions C. rebates D. trade promotions E. prospecting
D
Zentastic manufactures a line of premium hair products. To control costs, it created a wholesaling company to handle its product line plus others. Zentastic products are only sold in top salons under special contract, to avoid diluting the brand's perceived value. Which of the following describes this marketing dynamic? A. vertical marketing system dominated by the retailer B. conventional marketing channel dominated by the retailer C. horizontal business marketing system dominated by the producer D. vertical marketing system dominated by the producer E. indirect business marketing channel dominated by the wholesaler
D
A company that sells specialty food items via direct-mail catalogs would best improve the number of sales to its existing customers from using its customer database to ________. A. track a specific customer's previous purchases B. target potential customers for a line of specialty dishes C. make decisions about the layout of the catalog D. decide what to stock in retail stores E. create separate catalogs tailored to specific types of customers
E
A movie theater charging lower admission for young children and senior citizens is an example of ______. A. life-cycle stage pricing B. functional discounting C. time pricing D. product-form pricing E. customer-segment pricing
E
A newly-launched snack foods company decides, on examining the snack foods market, that it has little chance of becoming a market leader and does not want to challenge the leaders for market share. Because it is new to the market, it has no current market share to defend. Which of the following methods might the company use to enter the market? A. market directly to customers known to be loyal to other major industry participants B. compete only with small companies struggling to hang onto their own market shares C. position its snacks as meeting some overall consumer need other snacks do not meet, like nutrition or fun D. imitate the most popular snacks sold by the leading snack food companies E. create snacks that appeal to a niche market, such as people with wheat allergies
E
Based on customer feedback, a clothing company has adjusted its prices for sweaters down from $50 to $45. What will LEAST likely occur? A. The company will experience increased sweater demand. B. The company will retain customers. C. The company will see a large increase in profitability. D. The company will sell more sweaters. E. The company will see a decrease in sales.
E
Companies that connect directly with carefully-targeted consumers on a one-to-one basis are using what method? A. retailing B. public relations C. intermediary sales D. advertising E. direct marketing
E
Eduardo is an Arizona-native attending the state-run University of Illinois. When he goes to the 10:00 p.m. movie with his friends, he shows his student I.D. to get the $6 discount rate. Which of the following determined the price of his ticket? A. time-based pricing B. location-based pricing C. product-form pricing D. geographical pricing E. customer-segment pricing
E
Eloise works for a marketing firm and is meeting with her clients to discuss marketing options. She discusses with them the various types of direct marketing. The clients seem most interested in direct-mail marketing. Eloise points out that there are disadvantages in using direct-mail marketing. What is she likely to tell them? A. Direct-mail marketing provides less capability to tailor messages to the audience. B. Direct-mail marketing is mostly ignored by customers that are targeted. C. With direct-mail marketing, it is difficult to target an entire demographic or geographic area. D. Direct-mail marketing requires customers to have a street address to make contact. E. Direct-mail marketing has higher costs compared to other direct marketing methods.
E
Helen is taking her car to a quick-service oil change outlet. She only wanted the basic $29 oil change, but the manager sold her on getting a radiator flush as well, for an extra $39. What pricing structure does the store use? A. product bundle pricing B. by-product pricing C. captive product pricing D. product line pricing E. optional product pricing
E
Minh's company is experiencing tremendous growth, so he is thinking about contracting with a third-party logistics provider. He's received a lot of input from his staff on the idea. Which of the following statements should he ignore? A. A 3PL provider can produce 30 percent cost savings. B. A 3PL provider understands complex logistics environments. C. A 3PL provider can move product more efficiently. D. A 3PL provider is totally focused on getting product to market. E. A 3PL provider will require substantial oversight from staff.
E
Nathan's company is an intermediary in the marketing channel for an appliance manufacturer. His company helps the manufacturer complete transactions. Which of the following key functions would Nathan's company NOT perform? A. negotiation B. matching C. promotion D. contact E. distribution
E
Tech-No, a technology company that develops cutting edge electronics, decides to develop a new smartphone that has similar software compared to its competitor. The competitor files a lawsuit against Tech-No because the competitor feels that this is a violation of public policy concerning which of the following? A. Product safety B. Warranty C. Dropped product D. Product acquisition E. Patent protection
E
The need for ______ is an area of continuing vulnerability for the wholesale industry. A. increased profits B. creating innovation C. efficient marketing mix D. automated warehousing E. ever-greater efficiency
E
Through its own research and development efforts, a company plans and produces original products in response to replacing aging products in the product life cycle. This definition is associated with which of the following concepts? A. Marketing strategy B. Concept testing C. Idea generation D. Idea screening E. New-product development
E
To reposition itself in the modern retail marketplace, which question does Sears need to answer? A. "How do we increase our stock price?" B. "How do we promote our existing brands?" C. "How do we benefit from the Kmart merger?" D. "What will our marketing slogan be?" E. "Why should people shop here?"
E
Under ______ the market consists of many buyers and sellers trading in a uniform commodity. A. demand competition B. monopolistic competition C. oligopolistic competition D. impure competition E. pure competition
E
What does a company use to coordinate different message channels to deliver a clear, consistent, and compelling message? A. marketing communications mix B. socially responsible communication C. personal communication D. non-personal communication E. integrated marketing communications
E
What is direct-mail marketing? A. marketing through print, video, or digital catalogs that are made available in stores or presented online B. marketing by using automatic dispensers to provide products or information automatically to customers who interact with them C. direct marketing including infomercials and interactive television advertising D. using the telephone to sell products and services directly to customers E. marketing that occurs by sending an offer, announcement, reminder, or other item directly to a person at a particular address
E
What is the term for a company that substantially raises prices to increase revenue greatly at consumers' expense? A. time-based pricer B. predatory pricer C. dynamic pricer D. price fixer E. price gouger
E
When you begin research in order to buy an external hard drive at your local electronics store, you realize that one hard drive comes with a free jumpdrive as part of the purchase. Which type of consumer promotion is this? A. business contests B. price packs C. rebates D. advertising specialties E. premiums
E
Which of the following articulates a true statement about retail technology? A. Retail stores are not bringing online technologies into their stores. B. Technology does not change what a retailer can actually sell in a store. C. In the future, in-store and online shopping will remain totally separate. D. Retail technologies have not grown in importance. E. Consumers expect the same speed and control in offline and online shopping.
E
Which of the following best describes Samsung's motivation for developing new products? A. Samsung aimed to stop spending money on developing innovative products, so the company started developing knock-offs of its competitor, Sony. B. Samsung's profits were contingent on replicating its competitors' products. C. Samsung's marketing research indicated that customers wanted inexpensive, generic products. D. Samsung's original products were passing marketing tests with a "Wow" response. E. Samsung's marketing research indicated that its products should improve the customer's experience and provide cutting-edge technology that would change people's lives.
E
Which of the following illustrates a benefit direct marketing via the Internet provides to buyers? A. ease of selling both to end-users and to other businesses B. lower marketing costs C. ease of gathering feedback about products or services D. ability to target small groups or individuals E. ability to access a vast selection of items and compare them instantly
E
Which of the following is an example of setting an advertising budget based on the percentage-of-sales method? A. basing the budget on what a project manager believes is achievable B. basing the budget on what is left after deductions in the company are made C. basing the budget on how much money the company has at the time D. basing the budget on the industry's common consensus of a sensible budget E. basing the budget on how well a similar product did the year before
E
Which of the following most accurately describes a cash discount? A. a price reduction for turning in an old item when buying a new one B. a price reduction for buyers purchasing items in off-peak periods C. a price reduction for buyers who purchase large volumes D. a price reduction rewarding dealers for participating in sales programs E. a price reduction for buyers who pay bills promptly
E
Which of the following statements about legal issues in the US regarding products is most likely false? A. If a consumer is injured by a defective product design, then the consumer may sue the manufacturer. B. Companies dropping a product have a legal obligation to inform their suppliers and dealers. C. A company has a legal obligation to obey US patent laws when developing new products. D. Through legislation, the government regulates product quality and safety. E. A company can legally make its product similar to another company's established product if it is unaware of the other company's patent.
E
Which of the following statements about price is FALSE? A. Price is the only element in the marketing mix that produces revenue. B. Price refers to the value of goods and services. C. Price is a major factor in buyer's decisions. D. Price can be changed quickly. E. Price is the easiest aspect of the marketing mix for most marketers to determine.
E
Why might a company prefer contextual advertising over display advertising online? A. Contextual advertising is cheaper than display advertising. B. Contextual advertising contains more content than display advertising. C. Contextual advertising can be adapted to more online situations than display advertising. D. Contextual advertising is interactive while display advertising is not. E. Contextual advertising is tailored to a Web user's needs or interests while display advertising is not.
E
Promotion-product placement
Embedding brands as props within other programming
Search engines and portals
Ex: Google, Yahoo
Exclusive Distribution
Giving limited number of dealers the exclusive right to distribute the company's products in their territories
GRP and equasion
Gross rating points = REACH x FREQUENCY
Persuasive Advertising
Important with increased competition to build selective demand
Where new ideas come from?; Crowdsourcing-
Inviting broad communities of people- customers, employees, independent scientists and researchers, and even the public at larger- into the new-product innovation process
Everyday low pricing (EDLP)
Involves charging a constant, everyday low price with few or no temporary price discounts
High-low pricing
Involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items
Paradigm shift in marketing relationship between customers and vendors/manufacturers
Marketers are creating deep consumer involvement and a sense of customer community surrounding their brands- making brands a meaningful part of consumers' conversations and lives. Ex: Web sites, blogs, in person events, and video sharing.
Content Sites
New York Times, ESPN
Customter value-based pricing; Good-value pricing
Offering just the right combination of quality and good service at the right price.
Cost-based pricing
Setting prices based on the cost of producing, distributing, and selling the product plus a fair rate of return for effort and risk.
PPC
Pay per click
Price-Adjustment Strategies; Geographical pricing
Setting prices for customers located in different parts of the country/world
Opt-In Email
Practice of sending e-mail messages to people who request information More successful then sending general promotional messages through mass media, Cost effective
Product mix pricing situations; By-product-
Pricing low-value by-products to get rid of, or make money
Product mix pricing situations; Optional product-
Pricing optional or accessory products sold with main products
Product mix pricing situations; Captive Product-
Pricing products that must be used with the main product
Psychological pricing & Reference Pricing
Pricing that considers the psychology of prices and not simply the economics; the price is used to say something about the product. Ref. Pricing Prices that buyers carry in their minds and refer to when they look at a given product.
Price-Adjustment Strategies; Discount and Allowance pricing
Reduces prices to reward customer responses such as paying early or promoting the product Discount: A straight reduction in price on purchases during a stated period of time or in larger qualities. Allowance: Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.
SERP
Search Engine results page
SEO
Search engine optimization- results from the combined art and science of having a particular URL listed near the top of search engine
Pricing WITHIN channel levels; Predatory Pricing
Selling below cost with the intention of punishing a competitor or gaining higher long-term profits by putting competitors out of business
Permission based email
Sending e-mail pitches only to customers who "opt-in.'
Market skimming
Setting a high price for a new product to skim maximum revenues layer by layer from segments willing to pay high prices. Fewer, but more profitable sales
Market penetration
Setting a low price for a new product in order to attract a large number of buyers and a large market share.
Customer value-based pricing
Setting price based on buyers' perception of value rather than cost.
Cost-based pricing; Break-even (target profit) pricing
Setting price to break even on the costs of making and marketing a product, or setting price to make a target return.
Product mix pricing situations; Product line-
Setting prices across an entire product line
Competition based pricing
Setting prices based on competitor's strategies, prices, costs, and market offerings
Opt-out email
Spam: unsolicited, unwanted commercial e-mail messages.
Price-Adjustment Strategies; Promotional pricing
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales. ex: loss leaders, special event pricing, cash rebates, low-interest financing, longer warranties, free maintenance
Product Life-Cycle
The course of a product's sales and profits over its lifetime
Disintermediation
The cutting out of marketing channel intermediaries by product or service producers or the displacement of traditional re sellers by radical new types of intermediaries
IMC- Integrated marketing communications
The integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.
Positioning
The way a product is defined by consumers on important attributes—the place the product occupies in consumers' minds relative to competing products
Click and mortar companies
Traditional brick-and-mortar companies that have added online marketing to their operations.
Criteria for test marketing; DONT TEST
When costs of developing and introducing the product are low When management is already confident about the new product
Criteria for test marketing; TEST
When introducing a new product requires a BIG INVESTMENT When the risks are HIGH When management is NOT SURE of the PRODUCT or its marketing program
Indirect Channels
a marketing channel containing one or more intermediary levels firms that help the company to promote, sell, and distribute its goods to final buyers
Frequency
a measure of how many times the average person in the market is exposed to the message
Reach
a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time
Price Elasticity
a measure of the sensitivity of demand to changes in price
Introduction in Product Life Cycle
a period of slow sales as the product is introduced in the market Profits are nonexistent in this stage because of the heavy expenses of product introduction
Maturity in Product Life Cycle
a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition.
Marketing Channels
a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
Price-Adjustment Strategies: Dynamic pricing
adjusting prices continually to meet the characteristics and needs of individual customers and situations
Advertising
any PAID form of non personal presentation and promotion of ideas, good, or services by an identified sponsor
Direct Marketing
connecting directly with carefully targeted segments or individual consumers, often on a one-to-one interactive basis an interactive form of marketing using one or more advertising media to effect a measurable response and/or transaction at any location, with this activity stored in a database
Examples of Direct marketing
personal selling, direct mail, catalog, telephone, direct-response television, kiosk, digital, online direct marketing
Pricing ACROSS channel levels ; Deceptive Pricing
occurs when a seller state prices or price savings that mislead consumers or are not actually available to consumers
Decline in Product Life Cycle
period when sales fall and profits drop
Pricing ACROSS channel levels ; Robinson-Patman Act
prevents unfair price discrimination by ensuring that the seller offer the same price terms to customers at a given level of trade
Product mix pricing situations; Product Bundle
pricing bundles of products together
Pricing WITHIN channel levels; Price Fixing
sellers muse set prices without talking to competitors
Price-Adjustment Strategies; Segmented pricing; 3 types of segmented pricing
selling a product or service at two or more prices, where the difference in prices is not based on difference in costs 1.Customer Segment- Dennys senior citizen menu 2. Product-form- Round trip Air to China (economy vs. business class) 3. Time-based pricing- matinees, Happy Hour
Intensive Distribution
stocking the product in as many outlets as possible
Growth in Product Life Cycle
the period of rapid market acceptance and increasing profits
Click-Only Companies
the so-called dot-coms, which operate online only and have no brick-and-mortar market presence. E.g. e-tailers (Amazon, Expedia)
Promotion Mix
the specific blend of promotion that the company uses to persuasively communicate customer value and build customer relationships
Where new ideas come from?; Idea generation
the systematic search for new-product ideas
Selective distribution
the use of more than one but fewer that all of the intermediaries who are willing to carry the company's products
Informative Advertising
used when introducing a new product category to build primary demand
Pricing ACROSS channel levels ; Retail (or resale) price maintenance-
when a manufacturer requires a dealer to charge a specific retail price for its products. Law prohibits this.
Product development in Product Life Cycle
when the company finds and develops a new-product idea. During product development, sales are zero, and the company's investment costs mount
