MKT Final
Which of the following is a disadvantage of using a magazine as an advertising medium? It consists of low-quality reproduction. It involves high costs. It has low credibility and image. It has a poor pass-along readership. It has low geographic selectivity.
It involves high costs
target costing
reverses the usual process of first designing a new product, determining its cost, and then asking "can we sell it for that?"
Idea Screening
screening new product ideas to spot good ones and drop poor ones as soon as possible
Market-skimming pricing (price skimming)
setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales
market penetration pricing
setting a low price for a new product in order to attract a large number of buyers and a large market share
Break-even pricing (target return pricing)
setting price to break even on the costs of making and marketing a product, or setting price to make a target return
competition-based pricing
setting prices based on competitors' strategies, prices, costs, and market offerings
cost-based pricing
setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk
Which of the following is a traditional direct marketing tool? Catalog Online Advertisement E-Mail Web site Blog
Catalog
The business analysis stage is the final step in the new product development process. True False
False
price elasticity of demand
how responsive demand will be to a change in price.
Which of the following is true of RFID or "smart tag" technology? "Smart tag" technology can de-automate the entire supply chain. "Smart shelves" can tell when it is time to reorder and can place orders automatically. The use of "smart tag" technology makes it difficult to know where a product is located physically within the supply chain. "Smart tag" technology eliminates the need for intermediaries and facilitates a direct marketing system. Retailers and suppliers using "smart technology" have higher risks of shoplifting and robbery.
"Smart Shelves" can tell when it is time to reorder and can place orders automatically.
A style
A basic and distinctive mode of expression.
Which of the following is an example of a firm utilizing public relations as a promotion tool? A firm providing interesting information about a product to the news media. A firm informing customers of special discounts on its website. A firm sending its catalog directly to customers through e-mail. A firm using a celebrity to endorse a product in a television commercial. A firm using its personal sales force at an expo to sell its products.
A firm providing interesting information about a product to the news media.
Which of the following is an example of a horizontal conflict in a distribution channel? A Nike shoe dealer complaining that the shoes provided to the dealer are defective. A Walmart executive complaining to a Pepsi executive for not replenishing stocks on time. A Gucci executive complaining to Gucci's suppliers of delays in shipping consignments. A FedEx agent complaining that a DHL agent is cutting off his business. A Ford car dealer complaining that another Ford dealer is underpricing the same models.
A ford car dealer complaining that another ford dealer in underpricing the same models
Maturity
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.
Which of the following statements is true of a product sales force structure? A product sales force structure is characterized by specialization along product lines. A product sales force structure uses a single sales force across different product lines. A product sales force structure organizes the sales force along customer or industry lines. A product sales force structure is used when a company has only one product line. A product sales force structure requires every salesperson to be an expert in all the product categories of the company.
A product sales force structure is characterized by specialization along product lines
How can a firm obtain new products?
Acquisition- the buying of a whole company New Product development efforts- original products, product improvements, product modifications, and new brands that the firm develops through its own research and development (R&D) efforts
________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising Personal Selling Sales promotion Direct Marketing Public Relations
Adveritising
Which of the following is true of advertising in the new marketing communications model? Advertisers are finding traditional media less expensive. Advertisers are spending more on broadcast advertising. Advertisers are using less targeted media to reach customers. Advertisers have replaced print catalogues with digital versions. Advertisers are increasingly shifting toward digital media.
Advertisers are increasingly shifting toward digital media
Which of the following is most likely a difference between advertising and sales promotion? Advertising can trigger quick sales, while sales promotions cannot. Advertising is not as effective in building long-term brand preferences as sales promotions. Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived.
Advertising can be used to build up a long-term image for a product while sales promotion effects can be short lived.
The salesperson should know how to meet and greet the buyer and get the relationship off to a good start in which step of the selling process? approach presetation preapproach prospecting qualifying
Approach
Online visitors can't buy anything at ESPN.com. Instead, the site creates a virtual experience for sports enthusiasts and fans that can be customized to meet their needs. This is most likely an example of a(n) ________. branded community website interactive website promotional website direct marketing website e-tailing website
Branded community website
Conventions, trade shows, and sales contests are types of ________. point-of-purchase promotions premiums trade promotions business promotions advertising specialties
Business promotions
Discount
price reduction offered as an incentive to purchase
A convenience store _____________. carries a limited line of high-turnover goods for consumer self-service. stocks narrow product lines that have wide, deep assortments involves high operation costs due to full-service customer assistance is a multi-channel food and discount retailer that targets niche markets markets to segments comprised mostly of white-collar workers.
Carries a limited line of high-turnover goods for consumer self-service
The promotion of products and services through printed material with multiple pages that sell multiple products has been traditionally referred to as ________ marketing. television viral telephone catalog e-mail
Catalog
A(n) ________ is the variable amount in a salesperson's compensation. salary commission bonus profit-sharing plan incentive
Comission
A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. community shopping center warehouse club superstore neighborhood shopping center regional shopping mall
Community shopping center
Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and More. Which of the following pricing strategies will Los Amigos likely use? good-value cost-plus break-even competition-based target costing
Competition-based
The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as ________. test marketing marketing strategy development concept testing crowdsourcing concept development
Concept Testing
More than 80 percent of McDonald's restaurants worldwide are owned and operated by franchisees. This illustrates a(n) ________ marketing system. contractual vertical direct administered vertical corporate vertical horizontal
Contractual Vertical
____________________ uses buyers' perceptions of what a product is worth as the key to pricing. Customer value-based pricing Cost-plus pricing Target return pricing Competition-based pricing Psychological pricing
Customer value-based pricing
Studio 19 is a dance studio geared to adults who want to learn ballroom and Latin dance. When individuals call the studio, they're encouraged to access the website to receive a $25 e-coupon entitling them to a free half hour of dance instruction. Once they become patrons, text messages are sent to share news about featured dance instructors and upcoming special events. Which of the following promotion mix tools does Studio 19 employ to reach target customers? Crowdcasting Direct Marketing Personal Selling Retailing Public Relations
DIrect Marketing
Which of the following are the fastest-growing forms of marketing? Standardized and Customized Internal and External Differentiated and Undifferentiated Direct & Digital Mass and Targeted
Direct & Digital
Eric Dylan is the marketing director of a charity that raises funds to help provide educational services to children and families in developing countries. Eric targets a selective market of individuals who have recently donated to international charities by sending letters with charity information and donation instructions. Eric uses ________ in this scenario. mass marketing digital marketing kiosk marketing direct-mail marketing telephone marketing
Direct-mail marketing
AirNetwork, a telecommunications company, sponsors a rock concert by a famous band in order to further its brand visibility. This is an example of a(n) ________. event marketing program trade promotion price pack point-of-purchase promotion premium
Event marketing program
Many athletic stadiums enter into contractual agreements with national beverage companies and food franchises to distribute only their brand-name products at the respective venues. This is an example of ________. selective distribution horizontal price fixing disintermediation exclusive dealing horizontal integration
Exclusive dealing
An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________. factory outlet category killer specialty store superstore warehouse club
Factory Outlet
Fashions are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity. True False
False, Fads.
Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent? franchise organization corporate chain voluntary chain independent retailer retail cooperative
Franchise Organization
In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit. introduction commercialization maturity growth decline
Growth
Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices is referred to as ________ pricing. high-low category killer discount every day low predatory
High-Low
The new product development process usually starts with ________. idea generation concept development idea screening market strategy development
Idea generation
Moving products and materials from suppliers to the factory is known as ________ logistics. outbound reverse inventory downstream inbound
Inbound
A 30-minute or longer advertising program on television that markets a single product is called a ________. catalog phishing program infomercial spambot podcast
Infomercial
Inglast, a chocolate producer, is faced with a class action suit when customers found pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used? Personalized Informative Reminder Classified Comparative
Informative
Producers of convenience products and common raw materials typically seek ________ distribution—a strategy in which they stock their products in as many outlets as possible. intensive comprehensive exclusive exponential selective
Intensive
Which of the following is true of the product life cycle (PLC)? All products generally go through all five stages of the PLC. It is generally difficult to forecast the sales level at each PLC stage. The PLC concept can be applied to styles but not to fashions and fads. Product forms have longer life cycles than product classes. All products pass through the stages of PLC in the same order.
It is generally difficult to forecast the sales level at each PLC stage.
Which of the following is a shortcoming of advertising? It can be too customized and only attracts small, niche markets. It reaches targeted customers too slowly in most cases. It only provides one-way communication. It does not allow dramatization of the brand or company. It is the most costly promotional tool for companies.
It only provides one-way communication
Green Gardens sells gardening and landscaping goods and equipment. The marketing department places an unmanned machine in the store with touchscreen technology to provide product information. Consumers can use this machine to learn about the company's products and services. The company's marketing form is best referred to as ________ marketing. interactive telephone mobile personalized kiosk
Kiosk
Appliance maker Whirlpool assigns individual teams of salespeople to big retail customers such as Sears, Lowe's, Best Buy, and Home Depot. Each Whirlpool sales team aligns with the large customer's buying team. Whirlpool has most likely adopted a ________ sales force structure. team-based complex territorial product Correct! market
Market
The first generation Apple iPod was introduced in 2001 and sold for $500. The following year a mini version was introduced for $250. Apple initially used a strategy to price their digital music innovation. deceptive predatory market-skimming target costing market-penetration
Market-skimming
_________ are sets of interdependent organizations that help make the product or service of a company available for use by consumers or business users. Marketing channels Upstream channels Research and development channels Raw material suppliers Backward integration channels
Marketing Channels
Under , the market consists of many buyers and sellers trading over a range of prices rather than a single market price. oligopolistic competition pure competition a pure monopoly monopolistic competition a pure monopsony
Monopolistic competition
________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. Omni-channel retailing Shopper marketing Test marketing Online markeeting Consolidation marketing
Omni-channel retailing
________ might appear anywhere on an Internet user's screen when a user is browsing through an article, and they are often related to the information being viewed. Viral advertisements Online display ads Social media sites Digital catalogs Printed catalogs
Online Display ads
Computer World sells laptops separately from accessory products such as docking stations, anti-virus software, and external hard drives. This is referred to as pricing. by-product market-penetration optional pricing a product bundle product line
Optional pricing
__________ is the only element of the marketing mix that produces revenue. Price Promotion Place Prpfit Product
Price
GE employs different sales forces within different product and service divisions of its major businesses. For example, within GE Infrastructure, the company has separate sales forces for aviation, energy, transportation, and water processing products and technologies. GE has most likely adopted a ________ sales force structure. territorial customer market complex product
Product
Karen Rogers is a salesperson for Solar Panels Inc. She attends builder trade shows to identify potential customers in an effort to build long-term profitable relationships. Karen Rogers is engaging in which step of the selling process? preapproach demonstration approach prospecting presentation
Prospecting
________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. Retailing Sole sourcing Manufacturing Procurement Warehousing
Retailing
When Toyota announces a product recall on its Camry model due to a faulty igniter, they are using to coordinate with dealers and car owners. Inbound logistics Reverse logistics Inventory logistics Disintermediation Outbound logistics
Reverse logistics
In a marketing communications mix, ________ refers to any short-term incentive that encourages the purchase or sale of a product or service. sales promotion advertising public relations crowdsourcing personal selling
Sales promotion
Grace and her fiancé visit several furniture stores in and around their hometown of Milwaukee. They use their smartphones to capture information about manufacturers and pricing, and ultimately decide to purchase their favorite items online. This is referred to as ________. showrooming warehousing wholesaling retailing franchising
Showrooming
The ________ style of advertising shows ordinary people clearly using a product in a normal setting. slice of life technical expertise testimonial evidence personality symbol mood or image
Slice of life
A company's external sources of new product ideas include its ________. salespeople managers suppliers manufacturing staff engineers
Suppliers
Price
The amount of money exchanged for a good or service
Which of the following statements is true of consumer promotions? They include the use of display allowances. Correct! They include a wide range of tools like samples, coupons, and refunds. They are primarily used to generate business leads and reward customers. Their primary objective is to persuade resellers to carry a brand. They include the use of conventions and trade shows.
They include a wide range of tools like samples, coupons, and refunds.
Movie theaters charge matinee pricing during the day and resorts give weekend and seasonal discounts. This is illustrative of a pricing strategy. market-skimming time-based value-added product form market-penetration
Time-based
Sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers are collectively called ________ promotions. sales force point-of-purchase trade business consumer
Trade
Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring is a used vacuum cleaner or sewing machine. This is an example of . functional discount cash discount by-product allowance trade-in allowance seasonal discount
Trade-in allowance
Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida? Help a company develop a direct channel selling system. Increase the amount of work that must be done by producers and consumers. Buy small quantities of products from producers and break them down into narrow assortments for customers. Facilitate the production of products without direct customer feedback. Transform the assortments of products made by producers into the assortments wanted by consumers.
Transform the assortments of products made by producers into the assortments wanted by consumers
When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries. True False
True
The growth of the Internet caused many traditional companies to ________ in response to customer demands and a changing marketplace. expand their outside sales forces use traditional direct marketing forms adopt direct-mail marketing use omni-channel retailing develop retail transaction sites
Use omni-channel retailing
A ________ is made up of a company, its suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. value delivery network manufacturing chain disintermediation system distribution center marketing intermediary
Value delivery network
Clenzo is a company that provides house cleaning services in major urban and suburban areas. Marketers at Clenzo developed a short, humorous video promoting the company's services and hope that customers who see the video will be so entertained that they will pass the video on to their friends and colleagues. The marketers at Clenzo are using techniques to facilitate ________. catalog marketing contextual advertising viral marketing display advertising direct-mail marketing
Viral marketing
Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying costs and risks for both suppliers and customers. Which channel function does Electronics Storage primarily provide? warehousing showrooming assortment building financing transporting
Warehousing
A company launching a new product must first decide ________. the budget for print advertising the viability of a global launch how to launch the product when to launch the product the sample size of the market
When to launch the product
________ includes all the activities involved in selling goods and services to those buying them for resale or business use. Wholesaling Sole sourcing Franchising Crowdsourcing Showrooming
Wholesaling
Crowdsourcing
a company invites broad communities of people—customers, employees, independent scientists and researchers, and even the public at large—into the innovation process
A fashion
a currently accepted or popular style in a given field
product concept
a detailed version of the new product idea stated in meaningful consumer terms
Introduction
a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction
business analysis
a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives
A fad
a temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity
Cost-plus pricing (markup pricing)
adding a standard markup to the cost of the product
Value-added pricing
attaching value-added features and services to differentiate a company's offers and charging higher prices
product development
begins when the company finds and develops a new prod- uct idea. During product development, sales are zero, and the company's invest- ment costs mount.
Concept testing
calls for testing new product concepts with groups of target consumers
Promotional pricing
companies will temporarily price their products below list price and sometimes even below cost to create buying excitement and urgency
Fixed costs (overhead)
costs that do not vary with production or sales level
Variable costs
costs that vary with the quantity of output produced
The relationship between the price charged for a product and the resulting demand level can be shown in a(n) . demand curve inelastic demand slope supply curve elastic demand slope break-even chart
demand curve
Marketing Strategy development
designing an initial marketing strategy for a new product based on the product concept
Commercialization
introducing a new product into the market
product line pricing
management must determine the price steps to set between the various products in a line
Customer-centered new product development
new product development that focuses on finding new ways to solve customer problems and create more customer-satisfying experiences
Good-value pricing
offering just the right combination of quality and good service at a fair price
optional product pricing
offering to sell optional or accessory products along with the main product
Growth
period of rapid market acceptance and increasing profits
Which of the following sets the lower limit for a product's price? product costs competition elements of the product mix consumer perception of value profits
product costs
PLC stages
product development, introduction, growth, maturity, decline
Allowances
reductions in price given to final consumers, customers, or channel members for doing something or accepting less of something
Team-based new product development
various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness
segmented pricing
the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs
Product Life Cycle (PLC)
the course of a product's sales and profits over its lifetime
Decline
the period when sales fall off and profits drop
Test marketing
the stage of new product development in which the product and its proposed marketing program are tested in realistic market settings
Total costs
the sum of the fixed and variable costs for any given level of production
The moral of the product life cycle is that companies must continually innovate; otherwise, they risk extinction. True False
true
Customer value-based pricing
uses buyers' perceptions of value as the key to pricing