Principles of Marketing Final

Which of the following statements about handling objections is true?

A salesperson should view objections as requests for more information

Calypso Motors recently rolled out its hatchback, Proteus. Proteus combines the attractiveness of a luxury car with the excellent agility of a sports car. Calypso Motors is confident that Proteus will appeal to both sports car enthusiasts as well as the luxury segment. Which of the following types of market segmentation is evident here?

Benefit segmentation

Many marketers use the self-concept premise that people's possessions contribute to and reflect their identities—that is, "we are what we consume." According to this premise, consumers ________.

Buy products to support their self-images

Consumer perceptions of the product's value set the ________ for prices.

Ceiling

Which of the following is a major disadvantage of a multichannel system?

Channel conflict

Danita is in charge of new business development for her advertising agency. She recently made a sales presentation to the administration of Northwest Medical System to discuss the creative approaches her agency would use to differentiate Northwest Medical from its competition. Danita ended the presentation by asking, "When would you like our firm to begin working on your new brand awareness campaign?" In which stage of the selling process would such a question most likely be asked?

Closing the sale

During the _____ stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin.

Commercialization

To measure the ________ effects of an ad after it has aired, the advertiser can evaluate how the ad affected consumer recall, product awareness, and preference.

Communication

CONNECTIONS is a small company that uses a marketing strategy in which its limited resources are employed to target a large share of two small market segments. CONNECTIONS most likely uses which of the following marketing strategies?

Concentrated marketing

Rapid Pharmacy decides to target several market segments and designs separate offers for each. This market-coverage strategy is known as ________

Differentiated marketing

Advertisers are often concerned with the noise level in a medium. The medium that is assumed to have the lowest noise level is:

Direct Mail

________ occurs when product or service producers cut out intermediaries and go directly to final buyers or when radically new types of channel intermediaries displace traditional ones.

Disintermediation

Which of the following is an advantage of adding new channels in a multichannel distribution system?

Expanding sales and market coverage

Right after closing, Joshua, a senior sales manager at Halcyon Technologies called up the customer to ensure that she was satisfied with Halcyon's products. By calling the customer, Joshua also wanted to ensure repeat business. In this instance, Joshua is in the ________ stage of the selling process.

Follow-up

Claritas uses hundreds of demographic variables in its PRIZM system when classifying residential neighborhoods. This system breaks down over 250,000 neighborhood areas in the United States into 66 types based on consumer behavior and lifestyle. Each of the types has a name that theoretically describes the type of people living there, such as Upward Bound, Boomtown Singles and Monday and Brains. PRIZM is an example of ____________.

Geodemographic segmentation

The phase of the product life cycle in which healthy profits usually begin to appear is the _____ stage.

Growth

Billboard advertisements often have to compete for a driver's attention with traffic, passengers, radio, or other billboards. Billboard advertising would be described as:

Having a low noise level

The management of two Panizza restaurants have an ongoing disagreement over the discount rate given to students from the local high school. This is an example of ________ conflict.

Horizontal

A penetration pricing strategy tends to be most effective:

In Price-sensitive markets

When Procter & Gamble (P&G) developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser?

Informative Advertising

Robin works in a manufacturing company in Ohio. She sells products and handles customer requests via the company's online live chat feature. In her company, Robin is most likely a part of the ________.

Inside sales force

_____ is distribution aimed at maximum market coverage. It is used for many convenience goods and supplies that need to be available in every outlet where the potential customer might want to buy them.

Intensive distribution

Which of the following statements is most likely true of public relations?

It can have the same impact on public awareness as advertising at much lower costs

For which of the following would a company use an exclusive distribution strategy?

Luxury cars

TelStar Plastics is in the process of dividing a market into distinct groups of buyers with different needs, characteristics, and behaviors who might require separate products or marketing programs. Which of the following is this firm doing?

Market Segmentation

QUIL sets a low price for a new product in order to attract a large number of buyers and a large market share are using the ________ strategy.

Market-penetration pricing

Pacer sets a high price for a new product with the intention of reducing the price in the future. It is using the ________ pricing strategy

Market-skimming

A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

Marketing channel

Which stage in the Product Life Cycle normally lasts longest and poses strong challenges to marketing managers?

Maturity

Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and through local retailers as well. Which of the following is evident here?

Multichannel distribution system

________ becomes more important as competition increases. With this type of advertising, a company's objective is to build selective demand.

Persuasive Advertising

Recent research of cell phone features (e.g., calendar, push-to-talk, text messaging) used a two-dimension _____ with the axes ranging from low- to high-technological advancement and high-entertainment to high utility to show how the products are perceived by consumers.

Positioning map

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) ________.

Positioning statement

When Microsoft introduced its Windows NT network operating system, it gave buyers free Web-server software. At the same time, Netscape was trying to sell similar Web-server software for $4,999. Once Microsoft got a lion's share of the market, and Netscape's market share declined substantially, Microsoft began charging an above-market price for its Web-server software. Many people thought Microsoft was guilty of:

Preadatory Pricing

Melissa Price is a member of the sales force at Urban Fashions, a Houston based manufacturer of women's apparel. Melissa is preparing for a first meeting with a wholesaler who is a potential customer. She is learning as much as she can about her prospect and his organization. Melissa is in the ________ step of the personal selling process.

Preapproach

South Africa's Competition Commission accused South African Airways of conspiring with its partner, Germany's Lufthansa, to set prices on flights between Cape Town, Johannesburg, and Frankfurt. As a result, the two airlines were charged with:

Price Fixing

Johnson Business Solutions maintains one sales force for its copy machines and a separate sales force for its computer systems. Johnson Business Solutions utilizes a(n) ________.

Product sales force structure

Which of the following is the first step in the personal selling process?

Prospecting and qualifying

You receive a report that 68% of your target market has been exposed to your ad campaign during a given period of time. Which of the following aspects of media selection is represented by this information?

Reach

A product in the maturity stage will most likely require ________ advertising.

Reminder

Swiper Inc. uses ________ distribution to sell their products. This kind of distribution involves the use of more than one but fewer than all of the intermediaries who are willing to carry a company's products.

Selective

Which of the following is true about the customer sales force structure?

Separate sales forces are set up for different industries, serving current customers versus finding new ones, and serving major accounts versus regular accounts.

After determining its advertising objectives, a company's next step in developing an advertising program is to ________.

Set an advertising budget

________ are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.

Social classes

For which of the following products would the intensive distribution strategy most likely be used?

Soft drinks

Which of the following is most likely an objective of informative advertising?

Tell the market about a new product

In the ________, each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that region.

Territotial sales force structure

Sara Lee, the maker of Ball Park franks, has decided to introduce its new Ball Park hot dog buns in a limited market consisting of only four cities and to closely monitor the reactions of potential customers to the product and marketing program. Sara Lee is going to use:

Test Marketing

When KFC came into conflict with its franchisees over the brand's "Unthink KFC" repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.

Vertical

Which of the following is a major tool used by PR professionals?

news