business 321 exam 3

Product Sales Force structure

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

Territorial Force structure

A sales force organization that assigns each salesperson to an exclusive geographic territory in which the sales person sells the company's full line (territory sales rep=> territory managers=> regional managers=> director of sales

Customer (or market) sales force structure

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

_____________ involves first identifying and assessing competitors and then selecting which competitors to attack or avoid. A. competitor analysis B. self-competition C. blue ocean strategy D. perfect competition

A. competitor analysis`

Which of the following helps companies in setting sales force size? A. workload approach B. pull strategy C. push strategy D. top-down approach

A. workload approach

Disintermediation

the cutting out of marketing channel intermediaries by producers or the displacement of traditional resellers by new intermediaries.

Downstream partners

the marketing channels or distribution channels that look toward the customer, including retailers and wholesalers.

___________ are communities over the Internet where people congregate, socialize, and exchange views and information A. Corporate web sites B. Online social networks C. Digital Catalogs D. Content sponsorships

B. Online social networks

A ___________ VMS (Vertical Marketing System) integrates successive stages of production and distribution under single ownership. A. contractual B. corporate C. contingency D. conventional E. communal

B. corporate

Preapproach (2/7)

the process of learning as much as possible about a prospect, including needs, who is involved in the buying, and the characteristics and styles of the buyers. Objectives: • Qualify the prospect • Gather information • Make an immediate sale

Porsche is a German automobile manufacturer that competes against BMW and Audi, but only in the sports car and SUV segments of the automobile market. Porsche utilizes a(n) __________ strategy. A. overall cost leadership B. focus C. middle-of-the-roaders D. blue ocean

B. focus

Apple used an album by the band U2 to promote the Apple Watch announcement. Which of the following message execution styles is illustrated in this example? A. personality symbol B. musical C. fantasy D. lifestyle

B. musical

Specialty stores carry ___________ with ___________ within them. A. only convenience products; shallow assortments B. narrow product lines; deep assortments C. narrow product lines; shallow assortments D. wide product lines; shallow assortments

B. narrow product lines; deep assortments

A company that makes products that give high immediate satisfaction but may hurt consumers in the long run makes ____________ products. A. deficient B. pleasing C. salutary D. desirable

B. pleasing

Pedigree encourages associates to bring dogs to work and really do believe the "we're for dogs mission". This info indicates that pedigree is practicing ____________. A. consumerism B. sense-of-mission marketing C. innovative marketing

B. sense-of-mission marketing

Conflict that occurs between different levels of the same marketing channel is known as ___________ conflict. A. horizontal B. vertical C. multitiered D. equilateral E. communal

B. vertical

Which of the following is NOT a deception or fraud concern for Internet users and marketers? A. phishing B. viral marketing C. malware D. cyber spying

B. viral marketing

advertising strategy

the strategy by which the company accomplishes its advertising objectives and consists of: • Creating advertising messages • Selecting advertising media

corporate chains (organizational approach)

two or more outlets that are commonly owned and controlled. • Size allows them to buy in large quantities at lower prices and gain promotional economies • Macy's • CVS

Informative advertising

used when introducing a new product category to build primary demand

Which of the following would be considered a service retailer? A. factory outlets B. supermarkets C. barber shop D. jewelry stores

C. Barber shop

When Verizon began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ___________. A. informative advertising B. reminder advertising C. comparative advertising D.covert advertising

C. comparative advertising

In the _________, separate sales forces are set up for different industries. A. territorial sales force structure B. digital marketing system C. customer sales force structure D. geographical operations system

C. customer sales force structure

In the ________ stage of the selling process, a company first identifies qualified potential customers. A. preapproach B. follow-up C. prospecting D. presentation

C. prospecting

Which message execution style depicts average people using a product in an everyday setting? A. tone B. scientific evidence C. slice of life D. personality symbol

C. slice of life

The ___________ concept is specifically focused on the future welfare of consumers. A. strategic planning B. direct marketing C. societal marketing D. consumer business

C. societal marketing

Number of channel levels

Connected by several types of flows • Physical flow of products • Flow of ownership • Payment flow • Information flow • Promotion flow

comparative advertising

when a company compares its brand withother brands.

message execution

when the advertiser turns the big idea into an actual ad execution that will capture the target market's attention and interest. The creative team must find the best approach, style, tone, words, and format for executing the message.

Voluntary chains (organizational approach)

wholesale-sponsored groups of independent retailers that engage in group buying and common merchandising. • IGA • Western Auto

Setting channel objectives (channel design decision 2)

• Determine targeted levels of customer service • Balance consumer needs against costs and customer price preferences

Analyzing consumer needs (channel design decision 1)

• Find out what target consumers want from the channel • Identify market segments • Determine the best channels to use • Minimize the cost of meeting customer service requirements

Major product variable decisions include:

• Product assortment • Services mix • Store atmosphere

Factors to consider when setting the advertising budget

• Stage in product life cycle • Market share • Competition

Evaluating Major alternatives (channel design decision 4)

•Economic criteria Company compares the likely sales, costs, and profitability of different channel alternatives. •Control issues Other things being equal, the company prefers to keep as much control as possible. •Adaptability criteria The company wants to keep the channel flexible so that it can adapt to environmental changes.

Lifebelt insurance sells insurance only through door-to-door salespeople. What type of marketing channel does Lifebelt use? A. inclusive B. multitiered C. indirect D. direct E. selective

D. Direct

___________ becomes more important as competition increases. With this type of advertising, a company's objective is to build selective demand. A. institutional advertising B. Informative advertising C. Reminder advertising D. Persuasive advertising

D. Persuasive advertising

Recently, a class-action lawsuit was brought against BigBurger, charging that its food has contributed to the nationwide obesity epidemic. The suit was eventually dismissed, but many critics continue to point out the health dangers of typical "fast food" menu items. These critics are most likely concerned that the fast food industry has used ___________. A. deceptive promos B. deceptive pricing C. deceptive packaging D. harmful products

D. harmful products

___________ are retailers that offer some sales assistance because they carry more shopping goods about which customers might need information A. self-service retailers B. full-service retailers C. off-price retailers D. limited-service retailers E. specialty-service retailers

D. limited-service retailers

Firms that serve small segments not being pursued by other firms are called ___________. A. market followers B. market challengers C. market leaders D. market nichers

D. market nichers

During the prospecting stage, a salesperson needs to identify the good leads and screen out the poor ones through a process known as _________. A. closing B. satisficing C. presenting D. qualifying

D. qualifying

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-New York was overcharging guests and providing poor service. The Imperial hotel was experiencing ____________ conflict. A. equilateral B. vertical C. multitiered D. communal E. horizontal

E. horizontal

True or False: Direct marketing seldom occurs on a one-to-one, interactive basis.

False

Outside sales force

Outside salespeople who travel to call on customers in the field

types of message execution

Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial or endorsement

Sales force management

The analysis, planning, implementation, and control of sales force activities. It includes designing sales force strategy and structure and recruiting, selecting, training, supervising, compensating and evaluating the firm's salespeople.

advertising clutter

Today's consumers, can choose what they watch and don't watch. Increasingly, they are choosing not to watch ads

True or False: Normative marketing ethics: considers how firms should be acting.

True

True or False: Category killers are giant specialty stores that carry a very deep assortment of a particular line.

True.

Administered VMS

VMS that coordinates successive stages of production and distribution through the size and power of one of the parties. • P&G

Complex Sales force structure

When a company sells a wide variety of products to many types of customers over a broad geographic area, it often combines several types of sales force structures

Horizontal Marketing System

a channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.

Franchise Organization

a contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process.

Manufacturers' and retailers' branches and offices

a form of wholesaling by sellers or buyers themselves, rather than through independent wholesalers.

Retailer cooperatives (organizational approach)

a group of independent retailers that band together to set up a joint-owned, central wholesale operation and conduct joint merchandising and promotion efforts. • Ace Hardware • Associated Grocers

primary demand

advertising which involves messages promoting the benefits of a general product category

selective demand

advertising which involves the placement of advertising messages intended to persuade customers about the benefits of the brand

Advertising

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

Merchant wholesalers

are the largest group of wholesalers and include: • Full-service wholesalers that provide a full set of services • Limited service wholesalers that provide few services and specialized functions

public relations

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 rumors, stories, and events

department stores (Product Line classifications)

carry wide ranges of product category (ex. Burlington)

Everyday Low Pricing (EDLP)

charging constant, everyday low prices and offering few sales or discounts.

High-low pricing

charging higher prices on an everyday basis, coupled with frequent sales and other price promotions

Corporate VMS

combine successive stages of production and distribution under single ownership. • Polo/ Ralph Lauren

Value delivery network

composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system.

vertical conflict

conflict that occurs between different levels of the same marketing channel

Contractual VMS

consist of independent firms at different levels of production and distribution who join together through contracts. • Franchise

Franchises (organizational approach)

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

Horizontal conflict

disagreement among 2 or more channel members at the same level

Channel conflict

disagreement among channel members over goals, roles, and rewards: • Horizontal conflict • Vertical conflict

Brokers and agents

do not take title, perform a few functions, and specialize by product line or customer type. • Brokers bring buyers and sellers together and assist in negotiations. • Agents represent buyers or sellers

superstores (Product Line classifications)

find everything under one roof (ex: Walmart)

Upstream partners

firms that supply raw materials, components, parts, information, finances, and expertise needed to create a product or service

direct marketing

form of advertising which allows business and non-profit organizations to communicate directly to customers through a variety of media

Prospecting (1/7)

identifies qualified potential customers through referrals from • Customers • Suppliers • Dealers • Internet

persuasive advertising

important with increased competition to build selective demand.

Reminder advertising

important with mature products to help maintain customer relationships and keep customers thinking about the product.

Wholesaling

includes all activities involved in selling goods and services to those buying for resale or business use. -merchant wholesalers -brokers & agents -manufacturer's and retailers' branches and offices

retailing

includes all of the activities in selling goods or services directly to final consumers for their personal, non-business use.

Segmentation targeting, differentiation, and positioning

involve the definition and profile of the market so the other retail marketing decisions can be made.

Qualifying

involves identifying good customers and screening out poor ones by looking at • Financial ability • Volume of business • Needs • Location • Growth potential

What is positive marketing ethics?

looks at marketing ethics from the perspective of "what is", how do firms act and violations of ethical conduct

Price policy

must fit the target market and positioning, product and service assortment, competition, and economic factors. • High markup on lower volume • Low markup on higher volume

Vertical marketing systems (VMS's)

provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system. • Corporate marketing systems • Contractual marketing systems • Administered marketing systems

limited-service retailers

provide more sales assistance because they carry more shopping goods about which customers need information

workload approach

sales force size refers to grouping accounts into different classes to determine the number of salespeople needed.

full-service retailers

salespeople assist customers in every phase of the shopping process

category killers (Product Line classifications)

sell items that are redeemed at the same product line (ex: Best Buy, Home Depot)

self-service retailers

serve customers who are willing to perform their own "locate-compare-select" process to save time or money

marketing channel (distribution channel)

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

convenience stores (Product Line classifications)

smaller in size, limited snacks, items like batteries (ex: any store connected to a gas station)

Specialty stores (Product Line classifications)

stores that carry one or very few product categories. (ex: ski shops, Victoria's Secret-narrow product lines; deep assortment)

Multichannel distribution systems

systems in which a single firm sets up two or more marketing channels to reach one or more customer segments.

Identifying Major Alternatives (channel design decision 3)

-Types of intermediaries: refers to channel members available to carry out channel work. Most companies face many channel member choices. Number of Marketing intermediaries: -intensive distribution -selective distribution -exclusive distribution

Classification Characteristics

-amount of service -product lines -relative prices -organization

Channel Design Decisions

-analyze consumer needs -setting channel objectives -identifying channel alternatives -evaluating channel alternatives

Organizational approach

-corporate chains -voluntary chains -retailer cooperatives -franchise organizations

Relative price classifications

-discount stores (Walmart) -off-price retailers (ross, Marshall's) -factory outlets (coach outlet) -warehouse clubs (Costco-sell in bulk)

Product Line classifications

-specialty stores -department stores -convenience stores -superstores -category killers

7 selling process steps

1. prospecting 2. preapproach 3. approach 4. presentation & demonstration 5. handling objections 6. closing 7. follow-up