Exam 2 MKTG 101
What potential risk do marketers incur by using richer but more fragmented media and promotional mixes? A. Greater efficiency but less control over marketing messaging B. Better targeting but at a higher cost per consumer C. Mixed communications messaging and higher costs D. The inability to use mass and traditional media E. A communications hodgepodge for consumers
A communications hodgepodge for consumers
Product Line
A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets
Which of the following correctly defines a product? A. Products include tangible objects and services but not events or people. B. A product is anything offered to a market that might satisfy a need or want. C. A product is not a part of the overall market offering. D. Products have two levels: the actual product and the augmented product. E. Products are only tangible objects offered to a market to satisfy a want or need.
A product is anything offered to a market that might satisfy a need or want.
_________ direct(s) its marketing activities (primarily advertising, consumer promotion, and direct and digital media) toward final consumers to induce them to buy the product. A. A push strategy B. Product communications C. Personal selling D. A pull strategy E. Integrated communications
A pull strategy
In which of the following does a producer direct marketing activities (primarily personal selling and trade promotion) toward channel members? A. A personal selling strategy B. A pull strategy C. A push strategy D. Integrated communications E. Product communications
A push strategy
Communication effects of Advertising
Ad Recall, Brand Awareness, Message Association, Purchase Consideration, Brand Favorability.
Line filling
Adding more items within the present range of the line
________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A. Advertising B. Public relations C. Personal selling D. Social media E. Sales promotion
Advertising
Promotion Tools
Advertising, Personal Selling, Sales promotion, Public relations, Direct Marketing
Advertising Methods
Affordable method. Percentage-of-sales method. Competitive-parity method. Objective-and-task method.
Product
Anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy needs.
________ is the differential effect that knowing the brand name has on customer response to the product and its marketing. A. Customer equity B. Brand value C. Brand differentiation D. Brand equity E. Customer value
Brand equity
Store Brands
Brands created and owned by a reseller of a product or service.
Public relations
Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling unfavorable rumours, stories, and events.
For employee commitment to customer service, management must develop programs possessing the following critical components
Careful selection and hiring of frontline employees. Particular service strategy that frontline people need to act on. Training, support and incentives to be provided to employees with capacity.
Integrated Marketing Communications (IMC)
Carefully integrating and coordinating the company's many communication channels to deliver a clear, consistent, and compelling message about the organization and its products.
Celebrity Endorsers
Celebrity-audience matchup. Celebrity-brand matchup. Saturation/overexposure. Trouble factor.
Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand equity? A. National branding B. Private branding C. Co-branding D. Distributor branding E. Store branding
Co-branding
Pull strategy
Company spends a lot of money on consumer advertising and promotion to induce final consumers to buy the product, creating a demand vacuum that pulls the product through the channel
Creative concept
Compelling big idea that brings the advertising message strategy to life in a distinctive and memorable way
Product decisions and social responsibility
Consider public policy issues, regulations regarding acquiring or dropping products. patent protection, product quality and safety, and warranties..
Customer Effort:
Customers are often involved to a relatively great degree in production of many types of services
Media planning
Decide how to schedule the advertising over the course of a year.
Marketing strategy development
Designing an initial marketing strategy based on the product concept.
Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations function? A. Investor relations B. Public affairs C. Development D. Lobbying E. Press relations
Development
Product development
Develops concept into a physical product. Prototypes are made and subjected to physical tests.
Direct marketing
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Messages can be customized. Allows a dialogue between the marketing team and the consumer.
Idea screening
Evaluate against a set of company criteria for new products.
Licensing
For a fee, companies use names and symbols created by other companies.
Publicity
Information that concerns a person, product, company, event and that is disseminated through media to attract public interest.
Which of the following statements regarding packaging is correct? A. Innovative packaging can give a company an advantage over competitors and boost sales. B. Packaging does not provide any marketing opportunities. C. Product safety is not impacted by packaging. D. Packaging has not been influenced by environmental concerns. E. Packaging has not yet evolved to allow brands to interact directly with customers.
Innovative packaging can give a company an advantage over competitors and boost sales.
Service Features
Intangibility, Perishability, Inseparability, Heterogeneity(Variability), Fluctuating Demand.
________ marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. A. Intangible B. Inactive C. External D. Internal E. Interactive
Interactive
Which link in the service profit chain involves employee selection and training? A. Satisfied and productive suppliers B. Greater service value C. Satisfied and loyal customers D. Internal service quality E. Healthy service profits and growth
Internal service quality
Idea generation
Internal sources and External sources
The Product Life Cycle
Introduction. Growth. Maturity. Decline.
Business analysis
Involves a review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.
Brand equity
Is the positive differential effect that knowing the brand name has on customer response to the product or service. Is a valuable asset that offers many competitive advantages.
Line stretching
Lengthening the product line beyond the current range
When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and SpongeBob SquarePants on breakfast cereals, which form of brand sponsorship is being used? A. Private branding B. Co-branding C. National branding D. Licensing E. Store branding
Licensing
Adjust line length by
Line Filling and Line Stretching
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ? A. Multibranding B. New brand C. Line extension D. Brand extension E. Store brand
Line extension
Multibrands (Multi-brand strategy, also known as individual branding)
Market two or more brands of the same company in the same product category under the guise of different brand name
Which of the statements is true regarding media and message decisions? A. Media and message decisions should be closely coordinated. B. Message decisions are now more important than media decisions. C. Media and message decisions are independent of each other. D. Media and message decisions have no impact on results. E. Media and message decisions have no relationship to budgeting.
Media and message decisions should be closely coordinated.
Which of the following offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share? A. Multibranding B. Co-branding C. Licensing D. Line extension E. Brand extension
Multibranding
Commercialization
Must decide on timing, where to introduce the product. Includes a new product launch plan.
Brand sponsorship options include
National Brands, Store Brands, and Licensing
Frequency
Number of times a person is exposed to the message.
Why do new products fail?
Overestimation of market size. Design problemsoIncorrectly positioned, priced, or advertised. Pushed despite poor marketing research findings. High development costs. Competitive reaction.
Which of the following statements is true about public relations and a company's overall integrated marketing communications efforts? A. PR is now the more dominant media than other forms. B. PR should be blended smoothly with promotion activities. C. PR should be planned first, then advertising second. D. PR has no value within a social media context. E. PR should have a separate budget from marketing communications.
PR should be blended smoothly with promotion activities.
Advertising
Paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Reaches masses of geographically dispersed buyers at a low cost per exposure.
Reach
Percentage of people exposed to ad.
Services cannot be stored for future use. Which characteristic of services does this describe? A. Perishability B. Intangibility C. Inseparability D. Tangibility E. Variability
Perishability
Personal selling
Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. Allows relationship building.
Which of the following uses promotional tools such as presentations, trade shows, and incentive programs to engage customers, make sales, and build customer relationships? A. Personal selling B. Direct selling C. Sales promotion D. Advertising E. Public relations
Personal selling
________ advertising is used when a company is attempting to build brand preference and prompt customers to purchase now. A. Persuasive B. Attack C. Reminder D. Comparative E. Informative
Persuasive
Kroger, headquartered in Cincinnati, Ohio, is one of the nation's largest grocery chains. It owns several brands sold in its stores, including Private Selection, Heritage Farm, and Simple. These brands represent which type of brand sponsorship? A. Co-brands B. Private brands C. Manufacturer's brand D. Private labels E. Generic brands
Private brands
Test marketing
Product and program are introduced in realistic market settings. Can be expensive and time consuming, but better than making a major marketing mistake.
Which of the following statements regarding the important decisions in the development and marketing of individual products is correct? A. How a product is branded is separate from the development and marketing of individual products. B. Determining product support services is not part of the development of individual products. C. Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design. D. Packaging decisions are not an important part of developing individual products. E. Product labeling is no longer subject to legal regulation.
Product attributes that communicate and deliver benefits to the consumer include quality, features, and style and design.
National Brands
Products are marketed under the manufacturer's own name
Which of the following BEST describes a company's efforts to engage customers, persuasively communicate customer value, and build customer relationships? A. Marketing mix B. Advertising and public relations mix C. Personal and direct selling mix D. Content marketing mix E. Promotion mix
Promotion mix
_________ is used to build and maintain national or local community relationships and is one of the functions of public relations. A. Press relations B. Lobbying C. Development D. Investor relations E. Public affairs
Public affairs
Media Impact
Qualitative value of message exposure through a given medium.
Push strategy
Sales force and trade promotion are used to push the product through channels
________ are short-term incentives to encourage the purchase or sale of a product or service. A. Sales promotions B. Sales presentations C. Personal selling D. Advertisements E. Public relations
Sales promotions
Continuity Pattern of Ads
Scheduling ads evenly within a given period
Pulsing Pattern of Ads
Scheduling ads unevenly over a given time period
Flighting Pattern of Ads
Seasonal ads
Major Advertising Decisions
Setting advertising objectives. Setting the advertising budget. Developing advertising strategy- Message decisions- Media decisions. Evaluating advertising campaigns.
Which type of consumer products and services are purchased less frequently, with consumers carefully comparing competing products in terms of suitability, quality, price, and style? A. Convenience products B. Industrial products C. Capital products D. Shopping products E. Specialty products
Shopping products
Sales promotion
Short-term incentives to encourage the purchase or sale of a product or service. Offers strong incentives to buy.
Client Relationship
Similar to customer relationship but typically more intense
Message execution styles for advertising
Slice of Life Fantasy Mood or image Scientific evidence Testimonial evidence
Advertising objectives
Specific communication task to be accomplished with a specific target audience during a specific period of time.
Concept testing
Testing new-product concepts with groups of target consumers to find out if the concepts have strong consumer appeal.
Nailit Cosmetics is advertising its newest line of nail polishes, made from a nontoxic, water-based nail polish with amazing summer colors. Nailit is selling the products in specially designed bottles that make application easier. Which of the following is a core customer value for Nailit's line of polishes? A. The natural ingredients B. The products' revolutionary packaging C. The nontoxic properties of the products D. The Nailit brand E. The desire to have beautiful nails
The desire to have beautiful nails
New product development
The development of new products (new-to-the world products), product improvements, product modifications.
Which of the following statements about public relations is correct? A. The impact of public relations on public awareness comes at a much higher cost than advertising. B. The lines between advertising and public relations are becoming more blurred. C. Public relations is only used to promote products. D. Public relations cannot be used to engage consumers. E. Public relations now captures a substantial portion of the overall marketing budgets of many firms.
The lines between advertising and public relations are becoming more blurred.
Product line length
The number of items (or a set of products) in a product line offered by a company that are similar in function and benefit
Line Length
The number of items (or a set of products) in a product line offered by a company that are similar in function and benefit.
Product Placement (PPL)
The placement of a product within a movie tv show music.
Product mix
The set of all of the product lines and items that a particular seller offers for sale.
The Promotion Mix
The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships
Line Extension
The use of an established brand name for a new item in the same product category. Extending a product line to new forms, styles, colors, sizes, ingredients, or flavors within a product category.
What is the goal of advertising? A. To help move consumers through the buying process B. To create consumer communities C. To define a product's value D. To provide feedback on products and services E. To create interest and consumer hype
To help move consumers through the buying process
Which of the following is a pure tangible good? A. A spa treatment B. Toothpaste C. A meal at a restaurant D. Financial advice E. A medical checkup
Toothpaste
Which of the following statements about service marketing is correct? A. Training current employees better and hiring new ones with more skills can increase service productivity. B. Service marketers do not need to differentiate their offerings. C. It is easier to define service quality than product quality. D. Due to the variability of services, top service companies set modest service-quality standards. E. Companies should strive to streamline services to increase efficiency.
Training current employees better and hiring new ones with more skills can increase service productivity.
Brand extension
Using existing brand name to enter a completely different product class
Advertising media:
Vehicles through which advertising messages are delivered to their intended audiences
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value? A. Brand name B. Design C. Warranty D. Packaging E. Product features
Warranty
Objective-and-Task Method
a company allocates a certain amount of money to its marketing budget based on specific objectives
Competitive-parity Method
a company spends the same amount of money on advertising and marketing as its competitors.
Brand
a name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors
Percentage-of-Sales Method
based on a predetermined percentage of past sales or a forecast of future sales.
Affordable Method
based on what a company thinks it can afford to spend on marketing.
Marketers now have a richer mix of media and content approaches with consumers being bombarded by many brand messages. The result is that __________. A. companies do not target successfully or efficiently B. consumers don't distinguish between content sources the way marketers do C. consumers may believe similar brands are all the same D. companies fail to integrate brand messages and positioning E. companies fail to integrate their various communication channels
companies fail to integrate their various communication channels
Over the past decade, in one campaign after another, Samsung has run ads smugly depicting iPhone owners as either disappointed in their phones or secretly envious of people using the latest Galaxy model. This is an example of ________ advertising. A. native B. comparative C. reminder D. informative E. brand integration
comparative
The goal of integrated marketing communications is to _________. A. maximize return on investment with increased revenue across all brands B. have different media carry different messages about a brand in an integrated way C. lower overall marketing expenditures while delivering increased results D. deliver clear, consistent, and compelling messages about the organization and its brands E. integrate communications via online and mobile technologies at a lower cost per impression
deliver clear, consistent, and compelling messages about the organization and its brands
Adding a new product line to an existing portfolio means that the line has _________. A. differentiated its product mix depth B. extended product line length C. increased product mix width D. altered its product mix consistency E. increased product support services
increased product mix width
The goal of a push strategy is to _________. A. induce channel members to carry and promote the product B. save money by only focusing on consumers C. increase sales calls to distributors D. build trade demand E. give channel members additional media incentives to carry the product
induce channel members to carry and promote the product
Groups of _________ products consist of materials and parts, capital items, and supplies and services. A. specialty B. shopping C. convenience D. unsought E. industrial
industrial
Correcting false impressions and suggesting new uses for a product are objectives associated with ________ advertising. A. comparative B. attack C. reminder D. persuasive E. informative
informative
Buyers look for signals of service quality, drawing conclusions about quality from the place, people, price, equipment, and communications that they can see to address the issue of service ________. A. Invariability B. variability C. perishability D. intangibility E. inseparability
intangibility
A service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. This process is known as ___________. A. external marketing B. internal marketing C. interactive marketing D. service differentiation E. supplier and vendor marketing
internal marketing
The three functions of __________ include identifying, describing, and promoting the product. A. product lines B. packaging C. product design D. labeling E. innovation
labeling
Stories, sponsorships, events, and webpages are promotional tools used in ________. A. public relations B. personal selling C. advertising D. direct selling E. sales promotion
public relations
In the context of advertising media, ________ is a measure of the percentage of people in the target market who are exposed to an ad campaign during a given period of time. A. frequency B. media impact C. reach D. media engagement E. qualitative value
reach
Ad agency Young & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand ________ is defined in terms of how highly consumers feel the brand meets their needs. A. equity B. relevance C. differentiation D. esteem E. knowledge
relevance
When a company lengthens a product line by adding more items beyond its current range, it is ________. A. increasing the width of its product mix B. decreasing the width of its product mix C. decreasing the depth of the line D. stretching the line E. filling the line
stretching the line
Product mix width refers to ________. A. lengthening the product line beyond its current range B. the total number of items a company carries within all of its product lines C. the number of items in the product line D. the number of different product lines the company carries E. adding more items within the present range of the line
the number of different product lines the company carries
Line Width
the number of different product lines the company carries.
Line Depth
the number of versions offered of each product in the line.
Crowdsourcing
the practice of engaging a crowd or group for a common goal such as innovation, problem solving, or efficiency. obtaining new product ideas from a wide range of potential sources such as customers, industry experts, academics, and the public at large via internet and mobile application.
Firms spend ________ on personal selling as they do on advertising. A. half as much B. up to 10 times as much C. far less D. the same amount E. up to three times as much
up to three times as much
Which budgeting method involves setting a company's promotion budget to match the standard outlays for the industry? A. Competitive-parity method B. Affordable method C. Objective-and-task method D. Percentage-of-profits method E. Percentage-of-sales method
Competitive-parity method