Study Guide Exam Final Marketing

Beacons are useful to retailers of all sizes because they

send real-time messages and offers to customers.

When service companies change high-contact services into low-contact services, the

service becomes less personalized.

Retailers play a major role in creating all of the following except

spatial utility.

Euan is planning three sales during the third quarter of the year at Party City. The first is at a week before Easter, the second is the week before Halloween, and the third is Black Friday. These sales would be considered to be

special-event pricing.

A narrow product mix with a deep product line would most likely be carried by

specialty retailers.

Organizations that opt to set ______ run the risk of de-emphasizing price as a competitive tool, potentially leading to a climate of nonprice competition, like that in which professionals such as accountants and attorneys often operate.

status quo objectives

A certain location of Hamish's restaurant has annual fixed costs of $200,000. If an average tab at the restaurant is $60 and the variable costs per tab is $20, how many groups of customers must Hamish's serve per year in order to break even?

5,000

Some grocery stores collect data on competitive prices

by using comparison shoppers.

Off-price retailers feature

deep discounts, few customer services, and central checkouts.

With respect to retailing, what is the "party plan"?

A consumer acts as a host and invites friends to view merchandise in a group setting, where a salesperson demonstrates the products.

Jeremy is a salesperson for IBM. In his position, he is primarily responsible for seeking repeat sales. Jeremy is most likely focused on

current-customer selling.

Millie's Cookie House sells cookies, pastries, and muffins. She offers 30 different types of cookies, 20 different types of pastries, and 10 types of muffins. While not all of these are available in-store, customers can special order or have the baked goods catered. The depth of the product mix that Millie's offers is ______________, while the width of the product mix is ___________________.

deep; narrow

In order to manufacture its vehicles, Toyota needs to purchase large robotic arms that become permanent fixtures in their assembly plants. These robotic arms are best described as

installations

Pharmaceutical firms often employ _______________ to inform doctors and hospitals about new drugs and market their benefits.

missionary salespeople

Companies are increasingly using _______ to respond to changing consumer preferences to be able to buy a product wherever and whenever they desire.

multichannel distribution

Many companies use more than one marketing channel to distribute their products to the same target market, a tactic called

multichannel distribution.

Marisol recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use

negotiated pricing.

Tim is a new product manager for a large biochemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that ___ is risky as well.

not introducing new products

Your company has a product that is struggling in its market. However, the product appears to have some strength left that can be exploited. Which of the following product deletion actions would be most appropriate for the product?​

​Reduce the price and implement a run-out strategy.

​When Old Spice came out with the "Smell like a Man" advertising campaign, the goal was to _____ the brand from one that appealed to older men to a new, younger target market.

​reposition

A _________ works outside established organizational divisions and has greater flexibility to apply innovative approaches to new products and markets.​

​venture team

​Marginal analysis involves examining

​what happens to a firm's costs and revenues when production is changed by one unit.

The Presto Company manufactures several types of household appliances, including blenders, waffle makers, and home deep fryers. Presto sells its products to retail stores such as Kohl's, Macy's, and J.C.Penney's, through its own sales force. Marilyn Wilson is one of Presto's salespeople and is responsible for stores headquartered in Region 1 of the United States. Marilyn has just come from a monthly meeting where she has been informed about the new stovetop grill that will be part of next season's lineup. Presto's marketing department has developed a promotional plan for the new grill and outlined that plan for the sales staff in the meeting. The promotional plan for the next 60 days will include television commercials that demonstrate the new grill, in-store rebates, and a customer contest for the best-grilled sandwich recipe. In addition, Marilyn and other members of the sales force will be given a free grill for their own home use so they can become more familiar with the product. Presto is also offering a free trip to New York City for their staff salesperson who has the highest dollar in sales to his or her stores. To encourage the retail stores to push this product, Presto will off

a sales contest; a buy-back allowance

Amy's Ice Cream offers its customers a stamp card that allows them to receive a free ice cream after they have filled an entire card. This is an example of a

frequent-user incentive.

When Herstyler adds an electrical component that automatically shuts off its curling irons when they have been left on for more than one hour, this improvement would best be classified as a(n)

functional modification.

AAs the new sales representative for Parkland Electronics, Angelique is responsible for calling on hospital management and selling electronic hospital equipment such as blood pressure cuffs, scales, and heart monitors. Angelique knows that she needs to be friendly with the administrative assistants in the management offices in order to make sure that Parkland's information brochures and new product diagrams actually get to the management staff. In this situation, Angelique is exhibiting her knowledge that administrative assistants are often ________ in the buying decision process.

gatekeepers

Modifying a product to have _______ may enable a company to charge a higher price by creating customer loyalty and lowering customer sensitivity to price.

higher quality

1-800-FLOWERS, Carnival Cruise Lines, and JetBlue contract to U.S. businesses some of their customer service and tech support. These companies then have staff answer customer support calls from their own homes. This practice is known as

homesourcing

Scott works at an auto dealer. His company pays the internet site AutoWurld.com to act as a neutral third party that provides access to an unlimited amount of vehicle listings and sales transactions. Melvin is in charge of monitoring this site to look for deals. His firm pays $395 a month for access. AutoWurld.com is an example of a(n)

independent B2B e-commerce site.

Salespeople strive to match their influencing tactics to the prospect. Most prospects respond to

information exchange and recommendations.

Stores that buy manufacturers' seconds, overruns, returns, and off-season production and sell these products at below wholesale prices, are called

off-price retailers.

Some services are time sensitive, meaning that a significant number of customers desire the service around the same time. This point in time is called

peak demand.

The primary function of most wholesalers is to

perform physical distribution of products from manufacturers to retailers.

The "White Sale" that many department stores have every year a few weeks after Christmas is an example of

periodic discounting.

Allison's company plans to release a new version of its signature television set. This television will have more advanced features, including better sound quality, higher definition, and more smart capabilities. It plans to discontinue the older version once this newer version is launched. This is an example of a

product modification.

The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds is

product positioning.

Celia is beginning her week as a sales representative for Initech. She decides to start the day by developing a list of potential customers, which is called

prospecting.

Malik works for F1 where his responsibilities include maintaining favorable relationships between the organization and its stakeholders. Malik is most likely employed in

public relations

Ah Lam is making a sales presentation to a retailer that may be willing to carry her line of soaps. During the presentation, she will handle any objections as they come up. This is because when she anticipated and countered potential objections in prior presentations, she found that she

raised objections that the prospect otherwise would not have thought of.

Research has shown that consumers visit websites, blogs, and online forums to receive electronic word-of-mouth communication about goods, services, and companies primarily because the sites

reduce risk and save search effort.

The willingness and readiness of employees to meet the needs of the customer while providing the service is an important dimension of service quality called

responsiveness

Landry Restaurants, Inc. owns a number of different restaurants, including the Rain Forest Cafe and their recent addition, the T-Rex Cafe. Both the Rain Forest and T-Rex restaurants differentiate themselves from their competitors by offering a unique dining experience. At the Rain Forest Cafe you can dine under a ceiling of lush tropical forest plants while you are viewing the enormous aquarium with exotic fish. Periodically, the rain forest explodes with the sound of waterfalls and birds. Giant stuffed monkeys, parrots, and other jungle creatures are planted within the landscape. The Rain Forest Cafe also contains a gift shop, where customers can purchase T-shirts, hats, and other items emblazoned with the Rain Forest logo. The newer T-Rex Cafe has a similar approach to the uniqueness of the dining experience. The T-Rex Cafe offers guests a hands-on prehistoric experience, including educational, interactive computer screens. Customers can also pan for precious gems and fossils in Discovery Creek or feast on food from the Kitchen of Fire. The T-Rex Cafe also has a gift shop, where customers can purchase items with the T-Rex logo or build their very own stuffed dinosaur, through "Build-a-

retail positioning

Most pricing objectives based on ____ are achieved by trial and error because not all cost and revenue data are available when prices are set.

return on investment

Running a big sale in order to generate enough cash to pay creditors can occur in a situation in which a firm's primary pricing objective is

survival.

Peter works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Peter's company then repackages them and sells them to vending companies that have vending machines at government institutions. Peter most likely works for a(n) _____,while the vending machine company is a(n) _____.

wholesaler; retailer

Target released a promotional campaign with the tagline, "Expect more. Pay less." Which of the following pricing strategies is Target most likely using? ​

​Psychological pricing

​During the new-product development process, two of the stages designed to reject possible product ideas that are likely to fail are _____, which analyzes a product idea to see if it matches an organization's objectives and resources, and _____, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product.

​screening; concept testing

Mecklin Steel Company leases a warehouse in Birmingham, Alabama, to serve Deep South markets that are large enough and stable enough to make a long-term commitment to fixed facilities. This is a

private warehouse.

Nathan tells his wife, Milena, that his last sales call of the day at Global Dynamics was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Alison, a sales trainer for another firm, hands Nathan a book on

listening skills.

The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about

location

Category killers compete primarily on the basis of

low prices and enormous product availability.

The major characteristic of a private brand is that

manufacturers are not identified on the product.

If Tom's of Maine wants to maximize profit on its toothpaste, it should operate at the point where

marginal revenue equals marginal cost.

Adidas is establishing a ______ pricing objective to maintain or increase its product's sales in relation to total industry sales.

market share

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

price competition.

To take advantage of the demand for toys leading up to Christmas, Party City opens _____ called "Toy City" that is only in operation for a few weeks and closes them again after the Christmas shopping season is over.

pop-up stores

An evaluation performed before an advertising campaign begins is a

pretest

The pricing strategy that assumes that demand is relatively inelastic over certain price ranges is called

price lining.

Reference pricing is

pricing a product at a moderate level and positioning it next to a more expensive model or brand.

Who judges service quality?

Customers

Which of the following countries was the world's first service economy?

United States

A price-skimming strategy assumes that

the initial demand is highly inelastic.

The Aerie is an upscale lounge that caters to young professionals who enjoy drinks after work in a casual and comfortable setting. The Aerie has a specialty cocktail menu with items that its owner and head bartender, Alec Valentine, created. All cocktails on the specialty menu are $15 each and include a variety of alcohol or liquors and are "hand-crafted." Alec has priced his cocktails so that he earns a 70% profit margin on each sale. Thus, the total costs to prepare each specialty cocktail are 30% of the retail price. Last month, Alec sold 1,250 specialty cocktails. How much profit did Alec's Aerie business earn on the sale of specialty cocktails?

$13,125

Which of the following types of promotion informs potential customers about a product and what it is?

New introductory

_____________ is a paid, nonpersonal communication about an organization and its products transmitted to a target audience through mass media.

Advertising

Which of the following is NOT an advantage of using coupons?

Because so many manufacturers offer them, consumers have learned not to buy without some incentive, whether that pertains to a coupon, a rebate, or a refund.

What is a primary difference between business and consumer buyers?

Business buyers generally place larger orders than consumer buyers.

____ may stabilize supply, reduce costs, and increase channel member coordination.

Channel integration

Which of the following is NOT an advantage of using publicity-based public relations tools?

Control by media personnel of the content and timing of messages

Spencer Scarbrough of Scarbrough's department stores tells his marketing director that he is tired of the constant price-centered advertising by the firm's agency. "We have the best customer service in town, and I feel that is what we should be hanging our hats on," he states. This statement is most appropriate for use in which of the following stages of campaign development?

Creating the platform

After selecting a pricing strategy, what is the next step in the establishment of prices?

Determining a specific price​

Select the greatest advantage of horizontal channel integration.

Efficiencies in advertising, marketing research, and purchasing are increased.

Which of the following characteristics is unique to pricing more so than other variables of the marketing mix? ​

Flexibility

What assumption does breakeven analysis make that limits its overall usefulness?

It relies on demand for a product being inelastic.

____ is the development of a product that is closely related to one or more products in a firm's existing product line but is designed specifically to meet somewhat different customer needs.

Line extension

Siobhan wants to establish a fashion wholesaling firm. Because of the risks involved in the rapid obsolescence of high-fashion items, Siobhandoes not want to establish an organization in which she has title to the garments. Which of the following types of wholesale establishments has she ruled out?

Merchant wholesaler

Wegmans recently placed an order with the Applegate Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Wegmans is ordering 100 cases of hotdogs. Wegmans orders this product on a regular basis. What type of purchase does this week's purchase represent?

Modified rebuy

Elizabeth is an account executive for a financial services firm that specializes in employee benefits services. She is meeting with the owner of a small business that has grown to the level where it needs to provide extended employee benefits. Elizabeth is happy to help the small business owner and is excited about the opportunity to gain another customer. The company owner has purchased other insurance services such as property and casualty for the business, but has never purchased a group insurance plan and anticipates that it will take a considerable amount of time in the purchase process since this represents a significant decision for the company and its employees. What type of business purchase does this represent?

New-task

Which of the following is an example of a functional modification? ​

Planters Nuts redesigns the packaging of its nut products so they are easier for those with arthritis to open.

Zoe is a salesperson in the sales division of HP. Today Zoe is focused on researching a list of potential sales leads. Zoe wants to look at these sales leads and determine how likely they are to buy from the company, the type of products they will likely need, and whether they have a sales history with the firm. She also wants to determine who the key decisions makers are in the buying decision-making process at these sales leads so she can identify who will have the most influence. In the process of her research, Zoe makes extensive use of the firm's CRM system to forecast sales and manage leads. Zoe is most likely at which stage of the personal selling process?

Preapproach

You are the marketing manager for a company that makes and markets designer sunglasses. Recently, your boss suggested to you that the company should try to get its sunglasses worn by more actors and actresses in movies. He asked you to look into what it would take to make that happen. ​ Which of the following promotion activities is your boss referring to with this idea?

Product placement

In its advertisement, Timberland gives a close-up of one of its boots to show its fine craftsmanship. At the bottom of the advertisement is "Est. 1973," followed by the phrase "Best Then. Better Now." What type of pricing objective is Timberland using?

Product quality

Which of the following statements about reseller markets is false?

Resellers are not concerned with how much space the product takes up as long as it has a high price.

______ can be considered a public relations tool because what a company executive says publicly at meetings or to the media can affect the organization's image.

Speeches

Besides generic names, what other types of names are very difficult to protect?

Surnames and geographic names

"Is the demand strong enough?" is a question that marketers ask during the ____ phase of new-product development.

business analysis

Businesses follow a defined buying decision process in order to ensure the goods and services they purchase will meet their organization's needs. The process has multiple stages, and in one of the stages the business will evaluate each component of potential purchase. This includes evaluating the quality, design, materials and any other relevant aspect of the purchase. This evaluation takes place in which of the following stages of the business buying decision process?

Third stage - Search for potential products

Which of the following statements is NOT true about training salespeople?

Training programs for new sales personnel are never more than two weeks long.

Which of the following best illustrates how a firm can use a symbol to make an intangible product more tangible?

Traveler's Insurance umbrella

A producer is not likely to receive ____ from an industrial distributor.

aggressive promotion of its brand

Which of the following is the best example of the promotional objective of combating competitive promotional efforts?

After Ford promotes the towing capacity of its F-series trucks, Chrysler soon emphasizes the towing capacity of its Dodge trucks.

Glenn is shopping for a new coat at Marshalls and finds a North Face down jacket that he really likes. He knows that the North Face brand is considered to be high quality and that it's usually very expensive. He's pleasantly surprised to see the price—the "suggested retail price" is $199 and Marshalls' price is $99. Glenn decides to purchase the coat even though it's a little more expensive than he originally thought he'd spend on the jacket. What type of pricing strategy is Marshalls using to price the North Face jacket and other merchandise?

Comparison discounting

A market share objective

can be used effectively whether total industry sales are rising or falling.

______ does not necessarily take into account supply and demand, but it is straightforward and easy to implement.

Cost-based pricing

Which retail store invests the most in atmospherics?

Neiman Marcus

John is preparing to evaluate one of his sales representatives, Tessa. His evaluation of her performance for the prior year led to his conclusion that she often lacked key product information at sales presentations. At their upcoming session, he will most likely do which of the following?

Recommend that she attend a training program

Jo operates an upscale shop that does both pet grooming and human manicures and pedicures. She is targeting a market segment of people who place great value on their dogs and are concerned with their own appearance, yet pressed for time. No other businesses meet the needs of these consumers. Which strategic issue in retailing does Jo appear to have addressed?

Retail positioning

_______ is an activity or material, or both, that acts as a direct inducement, offering added value or incentive for the product, to resellers, salespeople, or consumers

Sales promotion

Which of the following statements is NOT true about the follow-up step of the personal selling process?

Salespeople should only follow up with dissatisfied customers.

To prevent channel conflict, producers or other channel members may do all of the following except

combine reseller markets.

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?

When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

If a product's target market consists of millions of people, marketers are most likely to focus promotional efforts on

advertising and sales promotion.

Shondra owns a carpet-cleaning firm. If her objective is to produce immediate sales of her services, her firm's promotion mix should probably stress

advertising and sales promotion.

Melissa is interested in upgrading to a new sofa for her apartment. She looks online to see what new models her favorite sofa brand has available and can get information on the style and color; however, she can't actually sit on the sofa to determine its comfort level. Melissa is able to evaluate the ____ modifications to the sofa, but not the ____ modifications.

aesthetic; functional

In establishing sales promotion objectives, a marketer should always

align objectives with the organization's overall objectives.

Marketers can determine whether a product is price elastic by

analyzing total revenues as prices change.

Client-based relationships are least likely to be developed by

appliance repairmen.

Dividing fixed costs by the number of units produced yields

average fixed costs.

An advertising platform is the

basic issue or selling point that an advertiser wishes to include in an advertising campaign.

Bethany and Joseph are preparing budgets for a new product as well as finalizing plans for the full-scale marketing and manufacturing of the new UtiliBot. They are in the ____ phase of the new-product development process.

commercialization

If an advertising campaign is aimed at increasing brand awareness and consumers' knowledge of a product's features, the advertising objective should be stated in terms of

communication

The concept of level of quality is relative because it cannot be described without

comparing it to other products.

When Subaru's advertising campaign mentions the Subaru Forester being named a 2018 IIHS Top Safety Pick, it is using _______ advertising.

competitive

The difference between consumer sales promotion methods and trade sales promotion methods is

consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to carry the product and/or to market it more aggressively.

Individual-sized boxes and packages that do not require refrigeration are both benefits of the ____ function of packaging.

convenience

When Coach agrees to pay Dillard's a certain proportion of the cost of providing television advertising emphasizing Coach purses, Coach is offering

cooperative advertising.

A(n) ____ is a concept, philosophy, or image.

idea

Marketers begin to make decisions about labeling, packaging, branding, pricing, and promotion during

product development.

Benjamin is concerned about not having enough air conditioning units in inventory during June, July, and August so he keeps extra inventory to guard against stockouts during this critical period. Benjamin is keeping

safety stock.

A representative product taken from a lot or batch, evaluated, and purchased refers to

sampling

Sam's Club and Costco are examples of

warehouse clubs.

Which method of business buying is necessary when products are highly homogeneous and examination of each item is NOT feasible?

Sampling

Adara owns and operates a gift and interior store called The Gingerbread House. She works hard to put together beautiful arrangements and displays throughout the store and always features a burning scented candle and light music. She hopes these efforts will encourage her customers to buy more. Adara is focusing on

atmospherics.

The jolly green giant used by the Green Giant Company facilitates the development of

brand associations.

The part of a brand that can be spoken including letters, numbers, and words is the

brand name.

Before the release of the newest iPhone by Apple Inc., an Apple juice brand used an actor dressed up like an apple to hold a sign encouraging those waiting in line to try its juice. The brand thought this would be a creative event that would spark an interest in Apple iPhone fans as they stood waiting in line with little else to do. This is an example of

buzz marketing.

Malik works for F1 where his responsibilities include maintaining favorable relationships between the organization and its stakeholders. Malik is most likely employed in

public relations.

Logos, business cards, stationery, signs, and promotional materials that make firms immediately recognizable comprise their

corporate identity materials.

One approach to measuring the effectiveness of publicity-based public relations is to

count the number of exposures in the media.

When produce companies such as Dole Bananas bypass wholesalers and sell directly to retailers, it is likely to

create channel conflict between Dole and these wholesalers.

Often when a company introduces a new product or line extension, its promotion will focus on ____ in order to initiate the product-adoption process.

creating awareness

Increasingly, inside salespersons manage _______ and outside salespersons are more _______.

digital approaches to sales; relationship oriented

In the Sunday paper, Mary sees a flyer for a collector's edition Nativity set that is available to purchase by filling out and mailing in a form or by calling a 1-800 number. This is an example of

direct-response marketing.

Client-based relationships are most likely to be developed by

doctors

Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic ff

intangibility

If Norwegian Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Norwegian's demand would be

elastic

All of the following are major steps in developing new products except

evaluation of competitors' efforts.

A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n)

factory outlet mall.

The final stage of the selling process is

following up.

Product deletion

may be opposed by management.

The major drawback to using aesthetic modifications is

that the value of the modification is determined subjectively.

Private distributor brands are owned by

wholesalers or retailers.

Which of the following statements is true about customers' interpretation and response to price?

​At times, customers interpret a higher price as higher product quality.

Selective demand is demand for a

particular brand.

Laura Spencer sees a lovely pair of earrings on a television network and calls a toll-free number to order them, paying with her credit card. This is an example of

television home shopping.

Sonequa is a concert promoter who works for singer Beyoncé. She works very hard to make sure most of Beyoncé's concerts are sold out because she understands the concept of perishability, which means

that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again for that specific concert.

Sales force objectives are generally established for

the total sales force and for each salesperson.

During the search for products and evaluation of possible suppliers stage of the business buying decision process, marketers sometimes use ____ analysis to examine the quality, design, materials, and possibly item reduction in order to acquire the product in the most cost-effective way.

value