UNIT 3

A product in the maturity stage may require ______ advertising.

reminder

A business whose sales come primarily from retailing

retailer

Group of independent retailers who jointly establish a central buying organization and conduct joint promotion efforts.

retailer cooperative

_______ includes all the activities involved in selling products directly to final consumers for their personal non-business use.

retailing.

Which of the following is not one of the four basic types of compensation plans?

salary and commission

Short-term incentives to encourage the purchase or sale or a product or service.

sales promotion

Management sets standards that state the amount each salesperson should sell and how sales should be divided among the company's products with ____________.

sales quotas

New Wave Music Company has decided to switch to a customer sales force structure. Which advantage are they least likely to enjoy?

salespeople developing in-depth knowledge about product lines

_____ is the basis of al discount operations and is typically used by sellers of convenience goods. Retailers offering this level of service require customers to perform their own "locate-compare-select" process in order to save money.

self-service

The steps that salespeople follow when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up.

selling process

Using point-of-sale promotions and advertising to extend brand equity to "the last mile" and encourage favorable in-store purchase decisions

shopper marketing

A group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

shopping center

A store that carries a narrow product line with a deep assortment, such as apparel stores, sporting-goods stores, furniture stores, florists, and bookstores.

specialty store

At least four political-legal factors should be considered in deciding whether to do business in a given country. Which is not one of these factors?

state religion

A relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer's total needs for grocery and household products.

supermarket

A very large store that meets consumers' total needs for routinely purchased food and nonfood items. This includes supercenters, combined supermarket and discount stores, and category killers, which carry a deep assortment in a particular category.

superstore

A ______ is a tax levied by a foreign govt against certain imported products.

tariff

Using the phone to sell directly to customers.

telemarketing

A sales force organization that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company's full line.

territorial sales force structure

A company's total marketing mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called _______.

the promotion mix

Perform primarily a selling and delivery function. Carry a limited line of semiperishable merchandise (milk, bread, snack foods), which is sold for cash as deliveries are made to supermarkets, small groceries, hospitals, restaurants, factory cafeterias, and hotels.

truck wholesalers

wholesaler-sponsored group of independent retailers engaged in group buying and merchandising.

voluntary chain

A concept that suggests new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced.

wheel-of-retailing concept

Sell primarily to retailers and provide a full range of services. General merchandise wholesalers carry several merchandise lines, whereas general line wholesalers carry one or two lines in great depth. Specialty wholesalers specialize in carrying only part of a line.

wholesale merchants

A firm engaged primarily in wholesaling activities.

wholesaler

All the activities involved in selling goods and services to those buying for resale or business use.

wholesaling

Do not take title to goods. Main function is to facilitate buying and selling, for which they earn a commission on the selling price. Generally specialize by product line or customer type.

Brokers and agents

Direct marketing via television, including iTV advertising.

DRTV

Contractual association between a franchisor (a manufacturer, wholesaler, or service organization) and franchisees (independent businesspeople who buy the right to own and operate one or more units in the franchise system).

Franchise organization

Advertising has some shortcomings. Which is not one of them?

It slowly reaches many people

Offer fewer services than full-service wholesalers. Several types.

Limited-service wholesalers

______ becomes more important as competition increases. The objective is to build selective demand.

Persuasive advertising

________ means adjusting the marketing strategy and mix elements to each international target market

adapted global marketing

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called...

advertising

The dollars and other resources allocated to a product or company advertising program.

advertising budget

Setting the promotion budget at the level management think the company can afford.

affordable method

Represent either buyers or sellers on a more permanent basis than brokers do. 4 types.

agents

Some social critics say that globalization really means _________ the world's cultures.

americanizing

Firms that play it safe and do not enter the global market are likely to lose their chances to enter other markets __________.

and risk losing their home markets

Which sales management tool shows a salesperson which customers and prospects to see during the next 12 months and in which months, as well as which activities to carry out?

annual call plan

A comprehensive database ia a tremendous tool for the direct marketer. It should contain geographic, demographic, psychographic, and ________ data.

behavioral

Companies are doing less _____ and more _____ as a result of an explosion of more focused media that better match today's targeting strategies.

broadcasting; narrowcasting

Bring buyers and sellers together and assist in negotiation. Paid by the party who hired them and do not carry inventory, get involved in financing, or assume risk.

brokers

Carry a limited line of fast-moving goods and sell to small retailers for cash. Normally do not deliver.

cash-and-carry wholesalers

Direct marketing through print, video, or digital catalogs that are mailed to select customers, made available in stores, or presented online.

catalog marketing

Which type of superstore is actually a giant specialty store?

category killer

In recent years, many brick-and-mortar firms eventually became ______ in response to _______.

click and mortar; click-only competitors

The so-called dot-coms, which operate online and have no brick-and-mortar market presence.

click-only companies

Setting the promotion budget to match competitors' outlays.

competitive-parity method

NY Times on the web, ESPN.com, and Encyclopedia Britannica Online provide financial, research, and other information. They are called __________.

content sites

A joint venture in which a company contracts with manufacturers in a foreign market to produce the product or provide its service.

contract manufacturing

Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarette, beverage, and gasoline sales?

convenience stores

Two or more outlets that are commonly owned and controlled. Strongest in department stores, discount stores, food stores, drugstores, and restaurants.

corporate chain

Logos, stationary, brochures, signs, business forms, business cards, buildings, uniforms, and company vehicles are all examples of _______ that can be used to help a company create an identity that the public immediately recognizes.

corporate identity materials

__________ are designed to build customer goodwill and to supplement other sales channels, rather than sell the company's products directly.

corporate web sites

A sales force organization in which salespeople specialize in selling only to certain customers or industries.

customer/market sales force structure

A store that carries several product lines—typically clothing, home furnishings, and household goods—with each line operated as a separate department managed by specialist buyers or merchandisers.

department store

Entering a foreign market by developing foreign-based assembly or manufacturing facilities.

direct investment

Marketing that occurs by sending an offer, announcement, reminder, or other item directly to a person at a particular address.

direct-mail marketing

According to research, which of the following is one of the four key talents a successful salesperson should possess?

disciplined work style

A store that carries standard merchandise sold at lower prices with lower margins and higher volumes.

discount store

Do not carry inventory or handle the product. on receiving an order, they select a manufacturer, who then ships the merchandise directly to the customer. They operate in bulk industries, such as coal, lumber, and heavy equipment.

drop shippers

Which is not a mode of entry that companies use when they decide to sell in a foreign country?

embargo

Service differentiation among retailers has

eroded

Entering foreign markets by selling goods produced in the company's home country, often with little modification.

exporting

What are the three categories of off-price retailers?

factory outlets; independent off-price retailers; warehouse/wholesale clubs

Which step in the sales process is essential if the salesperson wants to ensure customer satisfaction and repeat business?

follow-up

Provide a full line of services; carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance. Includes wholesale merchants and industrial distributors.

full-service wholesalers

A ______ is one that, by operating in more than one country, contains marketing, production, research and development, and financial advantages that are not available to purely domestic competitors.

global firm

The qualities that buyers like most in salespeople include empathy, honesty, dependability, thoroughness, follow-through, and ________.

good listening

Prospecting is the step in the selling process in which the salesperson ________.

identifies qualified potential customers

What are the two goals of direct marketing?

immediate response and long-lasting relationship

Why do most stores cluster together?

increase customer pulling power.

Which is not a disadvantage of product sales force structure?

increased customer delivery time

Which type of wholesalers sell primarily to manufacturers than retailers?

industrial distributors

________ are major exporters of manufactured goods, services, and investment funds. They trade goods among themselves and export goods to other types of economies for raw materials and semi-finished goods.

industrial economies

What does the term "viral marketing" mean?

internet version of word-of-mouth

A cooperative venture in which a company creates a local business with investors in a foreign market, who share ownership and control.

joint ownership

_______ is a method of entering a foreign market that involves a company coming together with a foreign company to produce or market products or services.

joint venture

Entering foreign markets through developing an agreement with a licensee in the foreign market.

licensing

A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.

management contracting

What is not one of the benefits for the seller in direct marketing?

mass reach

______ are the largest group of wholesalers. Independently owned businesses that take title to all merchandise handled. The group can be divided into the two broad types of full-service and limited-service.

merchant wholesalers

Ring-tone giveaways, mobile games, and ad-supported content to text-in contests and sweepstakes are all examples of _______ marketing.

mobile

What is a primary benefit to consumers from database marketing?

more offers matching their interests

Retail assortments are looking more and more alike because...

national-brands have placed their products almost everywhere.

Advertisers are increasingly shifting larger portions of their budgets to media that cost less and target more effectively. All of the following benefit from this shift except:

network television

In recent years, ______ has been growing fast. This includes selling to final consumers through direct mail, catalogs, telephone, and internet.

non-store retailing.

Bias against bids made by American companies is an example of an __________

nontariff trade barrier

Developing the promotion budget by (1) defining specific objectives, (2) determining the tasks that must be performed to achieve these objectives, and (3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.

objective-and-task method

A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail. These include factory outlets owned and operated by manufacturers; independent off-price retailers owned and run by entrepreneurs or by divisions of larger retail corporations; and warehouse (or wholesale) clubs selling a limited selection of goods at deep discounts to consumers who pay membership fees.

off-price retailer

Efforts to market products and services and build customer relationships over the internet.

online marketing

Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.

percentage-of-sales method

Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships.

personal selling

Which is a type of identity theft that uses deceptive emails and fraudulent websites to fool customers into revealing their personal data?

phishing

__________ are goods offered either free or at low cost as an incentive to buy a product.

premiums

A sales force organization in which salespeople specialize in selling only a portion of the company's products or lines.

product sales force structure

These tools are part of what mix? Advertising, sales promotion, personal selling, public relations, direct marketing.

promotion mix

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumor, stories, and events.

public relations

Scheduling ads unevenly or ______ builds awareness that is intended to be carried over to subsequent advertising periods.

pulsing

Which promotional strategy relies mostly on personal selling and trade promotion toward channel members?

push