MKTG 350 Exam 3 Review

What is a wholesaler?

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

Retailers help satisfy customers' needs by providing which of the following?

A mix of services relating to the products they sell An assortment of products geared toward their target market Products in the quantities their customers wish to buy

Which of the following is an example of power being exerted within a marketing channel?

Although all companies in the channel are independent, one large retailer controls what a small supplier can do.

Assuming the economy and other factors stay the same, a downward-sloping demand curve for a product shows which of the following?

As price decreases, demand increases. As price increases, demand decreases.

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

Break-even analysis

Which of the following are considered part of the five Cs of pricing?

Channel members Company objectives Customers Competition Costs

In the second step taken to convey the message, what do marketers do?

Decide what appeal would be most effective

Which of the following terms refers to the number of channel members used at each level of the marketing channel?

Distribution intensity

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

Everyday low pricing

Which pricing strategy is involved when a company adopts retail prices that are typically somewhere between the product's regular price and the sharply discounted sale prices that competitors occasionally offer?

Everyday low pricing

Which federal agency has the general purpose of regulating interstate and international communications?

FCC

What does an integrated CRM facilitate?

Handling customer complaints Expediting returns Targeting future promotions

Which pricing strategy features frequent sales, during which prices are lowered for a short time?

High/low pricing

Which pricing strategy should retailers use to tap into consumer excitement about buying something at a special low price for a limited time?

High/low pricing

Which statement about marketing channels is true?

IMC combines the channels so that together they exceed the total of the individual channels.

Which of the following are true of an advertising plan?

It analyzes the marketing and advertising situation. It identifies the objectives of the advertising campaign. It indicates how a firm can determine whether the campaign was successful.

Television is one of the most effective media outlets an advertiser can use in executing an ad campaign. There are, however, downsides to using this approach. What are some disadvantages of using television?

It is expensive to use. It may increase awareness of competitors' products.

Who usually benefits from price discrimination?

Large firms

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

Manufacturer to consumer

Channel members include which of the following?

Manufacturers Retailers Wholesalers

Which of these are included in the "processes" aspect of retail strategy?

Ordering merchandise Transmitting credit card sales

Which of the following factors cause fulfillment centers to operate a little differently when processing online orders than orders shipped to stores?

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

When a new product or service is launched, what type of pricing strategy attempts to attract customers quickly by offering a very low price at first?

Penetration pricing

Which supply channel partners make merchandise flow directly to the customer?

Retail store Fulfillment center

Adding value to products and services sold to consumers in households for their personal or family use is known as:

Retailing

Unlike Estée Lauder, which is a large and established firm with the resources to provide its own sales force to sell its products, what will smaller firms probably need to rely on to help to distribute their products?

Supply chain intermediaries

A company that manufactures shampoo has been unable to persuade a large retail outlet to purchase its products, because the retailer makes and sells mostly its own brand of shampoo. What marketing problem has the manufacturer encountered?

The channel is vertically integrated.

What factors determine how difficult it is for a manufacturer to persuade retailers to purchase its products?

The degree to which the channel is vertically integrated The relative power of the manufacturer and retailer The strength of the manufacturer's brand

Which statement is true about business relationships in supply chains?

They are based on meeting each other's needs.

Which statements about service retailers are true?

They include health clubs and dry cleaners. They are a large part of the retail industry. They primarily sell services rather than merchandise.

Which of the following should a subhead contain?

an action verb

Which of the following best describes when an ad campaign should be assessed?

at all points of a campaign

Personal selling is an important component of many IMC programs, especially in Blank______ settings.

business-to-business (B2B)

Advertising, personal selling, sales promotion, direct marketing, and public relations are among the many communication disciplines that make up IMC, which refers to integrated marketing Blank______.

communications

In a Blank______, members of the channel pursue their own goals and maximize their own profits, regardless of the effect on other channel members.

conventional marketing channel

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

corporate

The graph that shows how many units of a product or service consumers will want during a specific period at different prices is known as the Blank______curve.

demand

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

driving its competition out of business

Advertisers combine two main types of appeals:

informational and emotional

The goal of a(n) ___ strategy is to generate profit and establish a new product or service in the market as quickly as possible.

market penetration

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

marketing channel

blank ______ media channels, which include radio and television, are a good way to reach large numbers of anonymous audience members.

mass

When a company uses its advertising budget to purchase airtime or print pages, it is conducting a(n) Blank______ buy

media

One of a retailer's most fundamental activities in fulfilling the needs of the target market is to provide the ideal blend of Blank______ and Blank______.

merchandise; service

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

partnering relationship

What IMC strategy involves a two-way flow of communication between a buyer and a seller and is designed to influence the buyer's purchase decision?

personal selling

A firm sets extremely low prices for its products so that most customers will stop shopping elsewhere. This will cause other companies to go out of business and leave the firm with no more competition. The firm has engaged in Blank______.

predatory pricing

Which of these is important for the manufacturer and retailer to consider when determining how to position a brand and the products that fall under the brand?

price

Which of the following terms describes a firm's actions when it sells the same product to different resellers at different prices?

price discrimination

What term describes scheming with other companies to control prices?

price fixing

What term describes the slightly exaggerated claims made by retailers?

puffery

______ refers to a set of a business activities that add value to products and services sold to consumers for their personal or family use.

retailing

Which of the following is NOT an actual distribution intensity level considered by manufacturers?

retentive

What is the first component in the communication process?

sender

In a Blank______ relationship, the supply chain members are partners who intend to maintain the relationship for quite some time and invest in ventures that will be profitable for all involved.

strategic

A pricing Blank______ is the general way a company decides how its prices will be determined over the long term, based on the five Cs of pricing.

strategy

Which component of a print ad should use short, simple words and describe the primary benefit of the product?

subhead

Which of the following is NOT a type of retailer that falls under the general merchandise retailing category?

wholesalers