Exam 3 Study Bank

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The __________ close should only be used if the seller is confident that the prospective customer understands and agrees with the differentiating values of the salesperson's product.

Final objection close.

The most sever remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is __________ .

Fines

__________ consists of ads that are linked to searches conducted by consumers via online search engines.

Contextual advertising or search engine advertising

When Sears decided to enter Mexico with its retail facilities it engaged in contractual agreements with qualified local manufacturers to produce products that Sears was merchandising and selling in its new Mexican retailing facilities. This is an example of __________ for entering a foreign market.

Contract manufacturing

When Sears decided to enter Mexico with its retail facilities. Its strategy was to engage in contractual agreements with qualified local manufacturers to produce products that Sears was merchandising and selling in its new Mexican retailing facilities. Sears ultimately desired to buy out these producers and take over their operations. This is an example of __________ for entering a foreign market.

Contract manufacturing

With ________ domestic firms contractually engage with manufacturers or other firms (including retailers) to produce, deliver, merchandise, retail or sell their products or services in foreign markets.

Contract manufacturing

Michelin's ads emphasizing keeping one's family safe by selecting the correct tires and American Cancer Society ads aimed at de-marketing cigarettes and other tobacco products are among the better examples of _____________.

Fear appeals

___________ are employed to scare people into buying or not buying and using certain products.

Fear appeals

With respect to the principles of marketing communication, FAB stands for:

Features, attributes, benefits

A salesperson asks: "Is there any reason why we can't process your order and proceed with the shipment next week?" The salesperson is probably using a(n) ___________.

Final objection close

The __________ close should only be used if the seller is confident that the prospective customer understands and agrees with the differentiating values of the salesperson's product.

Final objection close

Even when production stops (i.e. no units produced), the firm still generally incurs some _________.

Fixed production costs

Even when production stops (i.e. no units produced), the firm still generally incurs some _________.

Fixed production costs.

___________ are tactical pricing elements that are intended to aid supply chain members in promoting the firm's product at the retail level.

Promotion allowances

Advertising, personal selling, sales promotion, publicity, and public relations comprise the firm's __________.

Promotion mix

Which of the following is not a common criticism of promotion?

Promotion provides too much information to consumers

_________ is a form of sales promotion in which sales personnel are incentivized to expend greater effort selling a specific product or brand.

Push money

Which global marketing strategy yields the longest production runs, lowest costs, and reinforces the "universality" of a brand's global image?

Straight extension strategy

The major distinction between voluntary chains and retailer cooperatives is who originated the distribution system.

True

The term "price competition" in a marketing context means that firms have opted to employ price aggressively as a major component of their marketing program.

True

The term "price competition" in marketing context means that firms have opted to employ price aggressively as a major component of their marketing program.

True

e. Social network selling

Which of the following is not a form of non-store retailing? a. Vending b. Party plan selling c. Telemarketing d. Direct mail e. Social network selling

The internal and external physical characteristics of stores that shape the retail store's image are referred to as:

Atmospherics

Six ounces of Keith's Gourmet Beef Jerky sells for $10.50. The fixed costs for its manufacturer totals $5,000, and each 8-ounce package of beef jerky has a variable cost of $6.50. Compute the dollar breakeven point.

$13,100

Six ounces of Keith's Gourmet Beef Jerky sells for $10.50. The fixed costs for its manufacturer totals $5,000,and each 8-ounce package of beef jerky has a variable cost of $6.50. Compute the dollar break even point.

$13,100

Rocky Mountain Gift Products sold its product through wholesalers and retailers--allowing the wholesalers a markup of 25 percent and retailers a markup of 40 percent. If the retail selling price is $100 and the manufacturer's cost is $30, what markup in dollars did Rocky Mountain Gifts Products receive on the sale of this product? (Select the closest answer)

$15.00

Rocky Mountain Gift Products sold its products through wholesalers and retailers--allowing the wholesalers a markup of 25 percent and retailers a markup of 40 percent. If the retail selling price is $100 and the manufacturer's cost is $30, what markup in dollars did Rocky Mountian Gifts Products receive on the sale of this product? (Select the closest answer)

$15.00

A retailer pays $75 for a leather jacket and desires a 65% mark-up on products of this type. What will be the price to consumers for this jacket (Select the closest answer)

$214

A retailer pays $75 for a leather jacket and desires a 65% mark-up on products of this type. What will be the price to consumers for this jacket (Select the closest answer)?

$214

On May 15, Ann's Café received a $265 invoice for restaurant supplies. The invoice offered the following terms, "3/14, n/30." If Ann pays the invoice by May 25, she should make her check out for: (Select the closest answer).

$255

A retailer pays a wholesaler $24.00 for an item and then sells it with a 50 percent markup based on cost. The retailer's selling price is: (Select the closes answer)

$36.00

The total fixed costs for a manufacturer of road maps is $25,000, and its unit variable cost is $3. The company sells 20,000 maps and just breaks even. What is the map's selling price? (Select the closest answer).

$4.25

A manufacturer sells a product for $35 to a wholesaler, and the wholesaler sells it to a retailer. The wholesaler's normal markup (based on selling price) is 20%. The retailer prices the item to consumers to include a 30% markup (also based on selling price). What is the selling price to the consumer? (Select the closest answer)

$63.00

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The producer can expect AVC of ____________ with the third doubling (within $.10).

$9.11

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units is produced. The producer expects an experience constant or rate of about .9. The producer can expect AVC of ____________ with the third doubling (within $.10).

$9.11

Blue Ridge Knives wants to set its selling price on a custom knife so that the retail list price will be $150--taking into account markups of 10 percent at wholesale and 30 percent at retail. At what price should Blue Ridge Knives sell the item to wholesalers? (Select the closest answer).

$95.00

2) Allocating

(Breaking Bulk) • Buying in relatively large quantities and selling in smaller quantities to other organizations or consumers Ex: Producer - Wholesaler - Retailer 1, 2, 3, or 4

3) Accumulating

(Making Bulk) • Buying units of the same product from many small producers; Offering larger amounts to buyers that prefer larger quantities - Diff types of grade A tomatoes - wholesaler - truck load of grade tomatoes The supply chain process of buying products from a large number of smaller producers and consolidating these purchases into larger quantities for resale to a large buyer

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The experience constant or experience rate is interpreted as:

*AVC declines by 10% with each doubling of cumulative output

Auction Companies

- Bring Buyers and Sellers together, sell goods through auction or bid process - Common for art, unique collectibles, estate liquidation, agricultural products, used vehicles and equipment An agent wholesaling middleman that assembles buyer and sellers into a physical facility staffed by dedicated auctioneers to competitively bid on products sold

Internet Auction Houses

- Bring Buyers and Sellers together, sell goods through auction or bid process online - Common for collectibles, antiques, sports memorabilia, electronics, toys, jewelry, and much more

Limited Service

- Cash & Carry - Drop Shippers - Truck Distributors - Rack Jobbers Merchant wholesalers that offer few services to support their producer suppliers and retailer customers.

In-Store Warehouse Clubs General Merchandise Retailers

- Department Stores - Discount Stores & Supercenters - Supermarkets - Convenience Stores - In-Store Warehouse Clubs

Non-Store Retailing

- Direct selling - telemarketing - direct marketing - vending Products are not sold from fixed retail facilities i.e. retail brick and mortar (B&M) stores

9) Financing & Risk Taking

- Financing: • Funding to expand operations • e.g., Fleming Foods -- most supply chain members offer this for their customers in the form of credit - Risk Taking: • Middlemen stock inventories • Inventories sometimes don't sell, products get damaged -- one is expecting to take some sort of risk by accepting ownership

Full Service

- General Merchandise - Producer/Retailer Cooperatives - Specialty A wholesaler that provides a wide range of important services to support its producer suppliers and its retail customer organizations.

2) Contractual VMS - 2b) Retailer Cooperative

- Unlike the voluntary chain which is organized by the wholesaler, the retailer co-op is set-up by retailers. However, they are fundamentally the same. Common in grocery and hardware industries: -- Grocery Industry: • Associated Wholesale Grocers, Wakefern, Associated Food Stores, Certified Grocers -- Auto Parts and Hardware: • True Value Hardware • Ace Hardware

Wholesalers

- do not make or consume the product. - They buy and store merchandise in large quantities from manufacturers and then resell the merchandise (usually in smaller quantities) to retailers, other wholesalers, manufacturers or other institutions.

Retailer-Owned Wholesaler Cooperative

- full service A wholesaling organization established by a series of retailers to establish their own wholesaling services • Hardware (Ace Hardware & True Value) • Grocery (Associated Wholesale Grocers, Certified Grocers)

Producer-Owned Wholesaler Cooperative

- full service Usually occurring in agricultural markets, a number of independent growers (producers) join together to establish a distribution and marketing organization • Farmers' Coops • Sunkist & Land-O-Lakes - Blue Diamond Growers is a producer's cooperative. - This ad is designed to stimulate primary demand for almonds to further sales for all growers

General Merchandise Wholesaler

- full service carries nearly all items needed by a customer Department Retail stores of wholesaling • Carry a wide range of products, but usually stock each product line in only limited depth EX: Fleming Foods & IGA, SUPERVALUE (serves the grocery industry), McKesson (drug industry) A full service merchant wholesaler that stocks a wide assortment of goods in limited depth and offers a wide range of services to its producer suppliers and its retail customers

Specialty/Limited Line Wholesaler

- full service - specialize on narrow product assortments, sometimes only a single line product A full service merchant wholesaler specializing in a limited number of product lines each stock in substantial depth Ex: - In Houston, Java Pura wholesales fair trade, organic, and limited production coffees - In the Pacific Northwest, Spiceland serves restaurants and grocers

Drop Shippers

- limited service - A limited service wholesaler that takes title to products but does not physically handle them, instead arranging to have these products shipped directly from the producer to the final buyer - buys and takes title from producer, but does not take possession of product - Typical for Bulk Products such as coal, coke, building materials - Product is sent directly to customer

Cash & Carry Wholesalers

- limited service A limited service wholesaler serving both organizational and consumer buyers specializing in self-service and low prices - Warehouses like Blakemore Cash and Carry, Office Club, Sam's Club, & Costco provide limited services. Appeal is low price.

Truck Jobbers / Distributors

- limited service - provide frequent deliveries in small quantities, lowering the risk of financial loss for retailers - Small Retail stores such as Gas Stations, Convenience Stores, Small Restaurants, Hotels, Business, Cafeterias, or Delis - Perishable or Semi-Perishable Products: usually national brands of dairy products, candies, breads & other bakery products, tobacco products, and snack foods Limited service wholesalers handle perishable or semi-perishable products that are delivered directly to small retail stores such as gas stations, convenience stores, and small restaurants

Rack Jobbers

- limited service - sell products on consignment - Retailer has low Risk, inexpensive: • Retailer provides floor space but never "own" the products (Rack Jobbers own the products). Retailers only pay rack jobbers when the products are sold. - Rack Jobbers has higher Risk: • (e.g. theft, damage, and product obsolescence) - Scrambled Merchandising: When a retailer offers an expanded mix of unrelated products Wholesalers that sell goods on consignment through retailers, generally providing stocking services and monitoring inventory

Merchant Wholesalers

- owns about 60%

Manufacturers' Agents

- specialize in selling & work on commission - Operate in geographically limited areas - ***Represent two or more non-competing producers - Used by firms too small to afford own sales force - Also used to: - Penetrate new geographic markets - Cover areas with low market potential - Introduce new products - Agent wholesaling middleman that sells all or part of a manufacturer's output on a commission basis in an assigned geographic territory

Which of the following is not an advantage of vertical marketing systems?

-improved cooperation between channel members -better service to ultimate consumers -reduced conflict in the channel -improved efficiencies and reduced costs

Under which of the following conditions is a tying contract likely to be declared as legal?

-the supplier alone can provide products of the required quality, as in the case of some franchise situations -a new small company is entering the market and desires full line representation -a supplier carries competing lines that can be offered to buyers, thereby assuring market access to competing firms

Consider the following data: TFC = $1,500,000 per year; price = $.79; AVC = $.39. What is the Unit Contribution? (Select the closest answer)

.39

Given the following data, answer the below questions: TFC = $1,500,000 per year. Price = $.79. AVC = $.39. What is the Unit Contribution? (Select the closest answer)

.39

Types of Wholesaling intermediaries: A major distinction between AGENT and MERCHANT WHOLESALING middlemen:

1) Merchant wholesalers take title to the products they sell, 2) while wholesaling Agents typically do not take title to the products they sell

VMS

1) Corporate - Total Ownership 2) Contractual - Legal Relationships 3) Administered - Strong Leadership

Common Channels of Distribution: Consumer Goods

1) Manufacturer > consumer 2) Manufacturer > intermediary/retailer > consumer 3) Manufacturer > wholesaler > intermediary/retailer > consumer

Common Channels of Distribution: Industrial Goods

1) Manufacturer > consumer (business) 2) Manufacturer > intermediary/retailer > consumer (business) 3) Manufacturer > wholesaler > intermediary/retailer > consumer (business)

Agent Wholesaling Middlemen

1) Manufacturers' Agents 2) Selling Agents 3) Brokers 4) Commission Merchants 5) Auction Companies 6) Internet Auction Houses

Channels Facilitate Exchange by:

1) Matching 2) Allocating 3) Accumulating 4) Sorting 5) Assorting 6) Storage & Inventory Management 7) Transportation 8) Communications 9) Financing & Risk Taking

For Example, Retailers Add Value by:

1) Providing Assortment: Enable customers to choose from a wide selection of products, brands, sizes, and prices at one location 2) Breaking Bulk/ Allocating: Enables customers to buy products in smaller, more useful quantities 3) Holding Inventory: Enables customers with limited storage space to know local retailers will have products they need at a convenient place when they want or need it available. 4) Providing Services: Offers services to customers such as seeing and testing products before buying, getting credit; layaway, and getting information/ help from salespeople

Relationship between Supply Chains and Logistics

1) Sources of parts & materials, farms, forests, mines 2) Aggregation of resources by assemblers 3) Processing and Manufacturing 4) Distribution of finished goods to intermediaries 5) Ultimate users of goods and services

Organic Specialties sells organic mixes for soups. The company produces 5,000 packages per day. The total variable cost for making one bag of Organic split pea soup is $3. The average fixed cost per bag is $.90. The company charges $6.50 per bag and earns a 40 percent profit. Calculate the break-even point in units.

1,300

Rocky Mountain Furniture Co. has total fixed costs of $100,000 a year. The owner estimates that average variable costs for its products are $135 next year. Products are sold directly to retailers through a broker. The broker's commission is included in the estimate for variable costs. The average selling price to retailers will be $175. If total industry sales are expected to be about $5,000,000 next year, what market share does Rocky Mountain Furniture need to break even?

10%

The rent for a booth at the local flea market is $150 per month with a $15 charge for utilities. The variable cost per picture frame sold is $5. The selling price for each frame is $20. Calculate the break-even point in units. (round to the nearest unit).

Six ounces of Keith's Gourmet Beef Jerky sells for $10.50. The fixed costs for its manufacturer totals $5,000,and each 8-ounce package of beef jerky has a variable cost of $6.50. Compute the dollar break even point.

13100

Cash discount terms of 2/10, net 60 on an invoice would--in effect-- amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice within the 10 days allowed.

Channel captains are associated with which type of channel structure?

Administered VMS

______ are forms of sales promotion directed at the sales force with the objective of motivating or incentivizing extra effort and improved performance.

Contests

General Mills, with its lines of cereal, snack foods, and baking products has substantial market position and brand equity making it possible to coordinate channel activities via is market power. This form of distribution illustrates a(n):

Administered VMS

Given the following data, answer the below questions: TFC = $1,500,000 per year. Price = $.79. AVC = $.39. Compute the annual breakeven point in units. (Select the closest answer).

3,750,000

Given the following data, find the break-even point in units: TFC = $1,500,000 per year; price = $.79; AVC = $.39. (Select the closest answer).

3,750,000

The Gulfport Cycle Shop bought 2 motorcycles for $2,000 and sold each one for $1,500. The markup percent(based on selling price)was closest to:

30%

The Gulfport Cycle Shop bought two motorcycles for a total of $2,000 and sold each one for $1,500. The markup percent(based on selling price)was closest to:

30%

DrainKing produces an excellent professional drain-cleaning machine sold to plumbing businesses. The total variable costs for making each unit are $325.00. DrainKing's average selling price for the unit is $750.00. DrainKing's fixed costs of production and sales are $4,500 per month. If DrainKing desires $10,000 in profit each month, how many units must it sell each month? (Select the closest answer)

A retailer pays a wholesaler $24.00 for an item and then sells it with a 50 percent markup based on cost. The retailer's selling price is: (Select the closes answer)

36.00

Assume that you are estimating the demand curve for a product using buy-response data and have collected the following via a survey: Price % Who Will Buy 5.00 1% 4.75 10% 4.50 25% 4.25 45% 4.00 60% 3.75 75% 3.50 90% Assume that research suggests that your target market consists of approximately 500,000 persons. You anticipate that each buyer will purchase an average of 1.5 units of the product. What level of demand can you expect at the $4.00 price? (round to the nearest unit).

450,000

450,000 units

Consider the following data: TFC = $1,500,000 per year, price = $.79; AVC = $.39. What is the Contribution Margin?

49%

Given the following data, answer the below questions: TFC = $1,500,000 per year. Price = $.79. AVC = $.39. What is the Contribution Margin? (Select the closest answer)

49%

When the US places limits on the amounts of certain products that can be imported into this country, they are employing ____________.

Administrative tariffs

Which of the following is not an advantage of vertical marketing systems?

All of the above are advantages

__________ are forms of sales promotion in which consumers or company employees compete with one another to win monetary or non-monetary prizes.

Contests

63.00

e. Convenience stores

7-Eleven, Quick-Trip and Circle K, and On the Run are all examples of _________. a. Supercenters b. Supermarkets c. Discount stores d. Category killers e. Convenience stores

3) Administered VMS

A VMS in which coordination of supply chain members is achieved by the size and power of on the supply chain members. - Strong Leadership *One member is dominant *Resulting 'power' is source of influence over channel activities *Non-dominant members see value in cooperating with "Channel Captain" - EX: Proctor and Gamble, General Electric, Walmart

a. Selling agent

A _________ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output. a. Selling agent b. Manufacturers' agent c. Drop shipper d. Broker e. Commission merchant

The biggest advantage of publicity is

A and b above are correct

For which of the following products would a retailer be LEAST likely to use odd pricing?

A designer evening dress

Which of the following channels for consumer goods is Avon using when it sells its products at the avon.com website?

A direct channel to consumers

In a corporate vertical marketing system,

A firm at one level of the channel owns the firms at the next level or owns the entire channel.

Common Channels of Distribution: Industrial Goods

A full service merchant wholesaler specializing in wholesale sales to organizational buyers

c. Rack jobber

A grocery store chain has decided to sell a small assortment of fast moving hardware items. However, it is not certain what stock to carry in which stores and does not want to leave the decision to the local store manager a. Cash and carry wholesaler b. Specialty wholesaler c. Rack jobber d. Manufacturers agent e. Broker

Which of the following retailers is most likely to be a member of a retailer cooperative?

A hardware store

Which of the following is least likely to be a condition necessary for employing a skimming pricing strategy?

A large, highly price-elastic market exists for the product

b. False

A major distinction between agent and merchant wholesaling middlemen is that wholesaling Agents take title to the products they sell while Merchant wholesalers do not. a. True b. False

Denton Plumbing, Inc. buys plumbing supplies, piping, fixtures, and tools from different manufacturers and resells them to construction companies. Denton is MOST LIKELY:

A merchant wholesaler

When large-scale retailers, such as Walmart and Target, vie with one another for sales and market share, they are engaging in ____________.

A mild form of horizontal channel conflict

c. Rack jobber

A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain's main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don't know what to order either. The chain should probably get help from a _____________. a. Cash and carry wholesaler b. Specialty wholesaler c. Rack jobber d. Manufacturers agent e. Broker

c. Employing an agent to handle sales to other intermediaries

A small manufacturer of children's clothing wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers? a. A direct channel to consumer, with sales via the internet b. Selling to wholesalers who, in turn, sell to furniture retailers c. Employing an agent to handle sales to other intermediaries d. Selling directly to large scale retailers of custom furniture

Which of the following retailers is most likely to be a member of a voluntary chain?

A supermarket

Lois Lane wants to open a convenience store in Cripple Creek Colorado. What kind of wholesaler will likely provide her chewing gum, tobacco products, candy bars, and other snack foods?

A truck jobber

e. Improves the channel's operating coordination, efficiency, and effectiveness

A vertical marketing system (VMS): a. Was the dominant form of distribution until the advent of the horizontal marketing system. b. Evolved because producers were not concerned with the needs of their middlemen c. Directs that all marketing functions be performed by the wholesaler d. Is an uncoordinated distribution channel in which retailers and wholesalers retain their freedom of operations e. Improves the channel's operating coordination, efficiency, and effectiveness

Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its product?

A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units are produced. The producer expects an experience constant or rate of about .9. The experience constant or experience rate is interpreted as:

AVC declines by 10% with each doubling of cumulative output

A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are $12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 units is produced. The producer expects an experience constant or rate of about .9. The experience constant or experience rate is interpreted as:

AVC declines by 10% with each doubling of cumulative output

The major benefits of sales promotion are:

Ability to generate sales by offering additional incentives to buy. Accelerate sales by encouraging "immediate action." Stimulate incremental sales volume beyond that generated by other forms of promotion. All of the above are benefits. (correct)

Vending Machines

Account for less than 1% of retail sales and have been declining by 1.5% per year since 1999 Expensive retailing format due to investment in equipment, high repair costs, and losses from theft and vandalism The sale of convenience and lower-cost durable goods through vending machines strategically located to provide time and place utility at prices to consumers that are higher than those charged in alternative retail formats

Assemblers are commonly found in the agricultural and fishery industries. Large food products producers (Hunt, Campbell, Star-Kist) do not want to buy direct from many small farmers or fishermen. They prefer to buy in large quantities from these assemblers that have already pooled these smaller quantities. The assembler is performing which channel function?

Accumulating

Assemblers are commonly found in the agricultural and fishery industries. Large food products producers (Hunt, Campbell, StarKist) do not want to buy direct from many small farmers or fishermen. They prefer to buy in large quantities from these assemblers that have already pooled these smaller quantities. The assembler is performing which channel function?

Accumulating

Bringing together relatively small quantities purchased from suppliers and combining these quantities into a single larger shipment for sale to a buyer is called:

Accumulating

The "making bulk" channel function is formally called:

Accumulating

Wal-Mart, because of its sheer size and market position is able to coordinate distribution activities through its market power. This is an example of the ______________ type of VMS.

Administered

____________ include such forms as customs barriers, quotas on the amount of product that can be imported, export subsidies, or unnecessarily restrictive standards for imported goods.

Administrative tariffs

_________ is any form of one-way, paid communication delivered en masse through electronic, print, or Internet-based media with the purpose of informing, reminding, or persuading.

Advertising

____________ is any form of communication that is conveyed via a "non-personal medium."

Advertising

Customers who purchase higher value consumer durable products such as electronics, appliances, sporting goods equipment generally demand more information and often welcome the "expert" advice. Which forms of promotion is best suited to these products?

Advertising and personal selling

When consumers engage in high-involvement, extensive decision making, for major durable goods, which elements of the promotional mix should be emphasized?

Advertising and personal selling

During the introductory stage of the product life cycle the promotion objectives are to stimulate primary demand by communicating product benefits, create brand awareness, and stimulate trial. The most appropriate form of promotion to accomplish these tasks are __________ .

Advertising and sales promotion

The forms of promotion most important for lower unit value consumer convenience goods are:

Advertising and sales promotion

The use of ____________ is most appropriate for consumers engaged in low involvement decisions.

Advertising and sales promotion

13. Kellogg's "Share Your Breakfast" campaign used Facebook as the primary medium for its 2011 award-winning advertising campaign. In its ads, Kellogg urged consumers to submit their breakfast photos. Kellogg, for each photo, donated money to a nonprofit organization that provided free breakfasts to schoolchildren. This is an example of ____________ .

Advocacy advertising

Diet Coke's "Red Dress Online Initiative" used traditional and online media to draw attention to women's heart disease as the number one killer of women. This is an example of ____________.

Advocacy advertising

Kellogg's "Share Your Breakfast" campaign used Facebook as the primary medium for its 2011 award-winning advertising campaign. In its ads, Kellogg urged consumers to submit their breakfast photos. Kellogg, for each photo, donated money to a nonprofit organization that provided free breakfasts to schoolchildren. This is an example of ____________ .

Advocacy advertising

Using __________ firms attempt to communicate their positions on important issues. The purpose is to influence the opinions of targeted audiences concerning the issue. Often the general public is the primary target audience.

Advocacy advertising

Firms that are pursuing a strategy of price competition are more likely to:

Aggressively use lower prices to buy market share from competitors

2) Contractual VMS - 2c) Franchise

Agreement between franchisor and a number of independent franchisees. A form of contractual VMS in which contractual agreements are made between a manufacturer, wholesaler, or service provider (called franchisors) and independent business operators (franchisees) who purchase the right to own and operate one of the units in the franchisor's system. Ex: Coca Cola, wendy's, mcdonalds, etc.

For which of the following products would a manufacturer be most likely to offer a seasonal discount?

Air conditioning system

b. Supermarkets

Albertsons, Kroger's, Safeway, H.E.B, and A&P are nationally located corporate chains of ____________. a. Supercenters b. Supermarkets c. Discount stores d. Category killers e. Department stores

d. Specialty Wholesaler

Alice Garrett runs her own distribution business in which she stocks a full range of specialty gift item for resale to gift shops. Alice is probably a ________________ . a. Drop Shipper b. General Merchandise Wholesaler c. Retailer Cooperative d. Specialty Wholesaler

A value of "e" equal to -1.5 means that:

All of the above

As practiced today, telemarketing is used for which of the following?

All of the above

The AVC curve is typically 'u-shaped' because:

All of the above

The AVC curve is typically 'u-shaped' because: A. Scale economies initially drive unit variable costs down as sales volume increase. B. The experience curve tends to drive unit variable costs down as producers become more knowledgeable of how to make products. C. Unit variable costs tend to increase after some level of output due to 'diseconomies of scale' D. None of the above E. All of the above

All of the above

The key "public" that is targeted by a firm's PR efforts is _____.

All of the above

The key principles of effective marketing communications include:

All of the above

The likely consequences of firms choosing to engage in price competition include all of the following except __________. A. Higher probability of price wars with other firms. B. Lower overall profits for firms in the industry. C. Higher levels of scrutiny by federal and state regulatory agencies. D. Greater tendency for firms to collude with one another to maintain prices E. All of the above

All of the above

The television home shopping format appeals to some consumers for which of the following reasons?

All of the above

Which of the following are characteristics of comparative advertisements?

All of the above

With respect to telemarketing, which of the following techniques are employed for idenfying potential prospects?

All of the above

With respect to the coefficient of elasticity, a value of "e" equal to -1.5 means that: A. Demand changes by -1.5% for each 1% change in price B. For every 1% change in price, demand changes by -1.5 times that amount C. Demand is price elastic D. Demand and price are inversely related E. All of the above

All of the above

All of the above are being employed

Memorable advertising messages that are easy to recall and remember should possess which of the following characteristics?

All of the above are important

Which of the following is the key characteristic of IMC?

All of the above are important

When consumers assign "value" to products and services they take into account which of the following?

All of the above are part of the value equation.

When consumers assign "value" to products and services they take into account which of the following? A. The price of the product or service B. The benefits received from the product or service C. The emotional costs associated with obtaining the product or service D. The effort that must be expended in acquiring the product or service E. All of the above

All of the above are part of the value equation.

A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that:

All of the above are possible defenses against price discrimination charges.

The likely consequences of firms choosing to engage in price competition include all of the following except __________.

All of the above are potential consequences.

The key "publics" that are targeted by a firm's PR efforts include all of the following except _____.

All of the above are targeted. There are no exceptions.

By computing the advertising budget using ____________ , advertisers are implicitly, and incorrectly, assuming that sales causally drive advertising expenditures.

All you can afford, percent of sales

With the __________ budgeting approaches, funds allocated to advertising tend to increase when sales rise and decrease when sales decline.

All you can afford, percent of sales

Using ___________ the communications budget is essentially equal to any money left over after all other expenditures have been met.

All-You-Can-Afford

The method of advertising budgeting in which the budget is set based on how much money is left after covering all other expenses is the ____________ .

All-you-can afford method

Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amount to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate?

Allocating

Procter & Gamble sells in large quantities to Core-Mark, a large grocery wholesaler that supplies a large number of independent and chain grocers. Core-Mark then resells in smaller quantities to its retail grocery customers. Core-Mark is performing which channel function?

Allocating

The ____________ function is typically performed when wholesaling middlemen buy from very large manufacturers and resell in smaller quantities to smaller retailers.

Allocating

Which supply chain function breaks up the large quantities produced by manufactures into smaller quantities at the retail level from which you will choose.

Allocating

Brokers

An agent wholesaling middleman that functions to bring buyers and sellers together, possess no authority to negotiate terms, but do provide information to both parties on essential market conditions - Brings buyers and sellers together: -- Used only when needed -- Attempt to locate viable buyers for the seller's products - Have no authority to set prices or finalize sales: -- Buyers and sellers must reach agreement on final prices and other terms of the sale. -- They may assist in contractual negotiations - Typically work more for the seller because commission is paid by the seller: -- Some brokers may also represent buyers rather than sellers, but not both at the same time

With the __________, the salesperson presumes the buyer has made a positive decision and only minor points need to be clarified to "finalize the details of the sale."

Assumptive close

Armed with knowledge gathered in the early steps of the personal selling process, the seller is prepared to contact the prospect and, potentially, make an initial presentation. This is the ____ step in the personal selling process.

Approach

The _______ is the initial contact with a qualified prospect.

Approach

Merchant wholesalers:

Are independently owned firms that engage primarily in wholesaling and take title to products being distributed.

Which of the following is not a key question a firm must address when deciding whether it should "go global?"

Are the firm's domestic sales sufficient to finance a move to global markets?

Supervising sales personnel includes which of the following?

Assisting reps with goal setting Providing timely and frequent feedback on performance Coaching reps to help them identify areas needing improvement The ability to empathize with reps' personal and professional situations All of the above are essential components of supervision. (correct)

One of the primary keys to wholesaling and retailing success is matching the variety of products sold to the wants and needs of customers. This process is the ____________ channel function.

Assorting

Wal-Mart distribution centers bring together a large variety of different kinds of products from a wide range of manufacturers. Wal-Mart is performing the ______________ function when, based on what each store's needs are at the time, it combines a number of different products together for shipping to each of its Wal-Mart stores.

Assorting

When retailers such as Kroger or Winn-Dixie bring together a variety of different products to offer their customers, they are peforming the __________ channel function.

Assorting

When retailers such as Kroger or Winn-Dixie bring together a variety of different products to offer their customers, they are performing the __________ channel function.

Assorting

When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customer want, it is engaged in _______ .

Assorting

To close a sale, the salesperson may ask "Would you prefer delivery by UPS or FedEx?" Or, "Will you pay cash, or can we assist you with financing?" Such approaches are common with the _________.

Assumptive close

__________________ arises when a retailer performs some distribution and manufacturing activities, such as operating warehouses or designing private-label merchandise.

Backward integration

A tire retailer is advertising a very low price on a popular size tire. When a customer comes into the store, the clerk says the low-priced item is sold out, and tries to convince the customer to buy the top-of-the-line model--claiming the low priced model is not a very good buy even at the low price. This is an example of:

Bait pricing

Why not get rid of the Middlemen (Intermediaries) so the consumer can pay a lower price?

Because Middlemen (Intermediaries) Add Value and Help to Facilitate the Exchange - The value of the product and service increases as middlemen (e.g. retailer) performs functions. 1) Product is developed by manufacturer 2) Product is developed in several styles 3) Product is offered in convenient locations in quantities of one 4) Product is featured on floor display 5) Product can be bought on credit or put on layaway

d. Category killers

Best Buy (consumer appliances and electronics), Staples (office supplies, furniture, computers, and software), Home Depot (home building supplies and equipment), and Bed Bath & Beyond (home decorating products) are classified as ______________. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores

Burger King's simple but memorable "Have It Your Way" creative concept was the basic theme upon which subsequent advertising was based for more than 20 years. "Have It Your Way" was Burger King's _____________ .

Big Idea

Big idea

a. Producer's Coop

Blue Diamond is a _____________ in which almond growers have established their own wholesaling and distribution system. a. Producer's Coop b. Retailer's Coop c. Specialty wholesaler d. Truck distributor

Consumers who spread positive word-of-mouth about products or brands are called _________.

Brand evangelists

The power of __________ communications is based on the fact that somebody whom the message recipient knows and likes becomes the credible, believable, and trustworthy face of the brand.

Brand evangelists

The manager of the San Francisco Seafood Company knows the market for its Talapia is geographically quite large. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood can sell its Talpia only a few months each year, it does not need continuous market representation. The Talapia producers should use a:

Broker

Consumers normally pay for film and processing separately. When Eckerd Drugstores advertises one price for the cost of a roll of film and this price includes the cost of processing the film, they are using

Bundled pricing

Which of the following is not a potential reason why firms should consider engaging in global marketing?

By going global firms can avoid the risks associated with fluctuating exchange rates

In B2B selling, __________ presentations generally should be avoided in favor of hybrid presentations in which the seller listens as much, or more so, as he or she speaks.

Canned

When Nintendo sets a relatively low price on its game units to stimulate more demand for its game cartridges, it is using

Captive product pricing

For which of the following products is exclusive distribution most likely?

Cartier watches

Category killers

____________ offer substantial discounts and probably the best selection of brands for the types of products they merchandise. The retailing strategy is to attract customers through relatively lower-priced offerings and broader selections, thereby eliminating the competition.

Category killers

____________ are responsible for managing a group of related products stocked by a retail store.

Category managers

For which of the following products is exclusive distribution most likely?

Caterpillar tractors

For which of the following products is exclusive distribution most likely?

Caterpillar tractors &/or Cartier watches

__________ are employed when advertisers refuse to engage in the consent decree. The FTC can this remedy to force Firms to remove offending communications from circulation.

Cease and desist order

Celebrities tend to be perceived as credible sources that can influence consumer purchasing behaviors for which of the following reasons?

Celebrities often score high on all of the above

_________ are groups of two or more retail stores operated by th same entity.

Chain stores

a. Administered VMS

Channel captains are associated with which type of channel structure? a. Administered VMS b. Corporate VMS c. Contractual VMS d. Voluntary chain e. Franchise

_____ occurs when one supply chain member perceives that another supply chain member is making decisions in a manner that interferes with the ability of the first supply chain member to achieve its own objectives.

Channel conflict

Traditional Marketing Channels

Characteristics/Disadvantages of traditional marketing channels... - Independent Firms - Different Objectives & Priorities - Conflict Inevitable - Reduced Efficiency & Ultimate User Satisfaction

Companies such as Amazon that sell only via the Internet and mobile devices are referred to as __________.

Click-only (correct)

The most common method of sales force compensation is:

Combination programs that include both salary and commission or bonus incentives

Which of the following is not true about commission-only compensation plans for sales persons?

Commission-only plans tend to result in better service to customers. (correct)

Advertising in which brands are directly compared against one another are called _______ .

Comparative ads

Advertising in which a firm's brand is directly compared against those of competitors is called:

Comparative advertising

The FTC issued a ruling in 1979 that encourages the use of ____________ advertising (as long as the ads are truthful) arguing that consumers are armed with more data upon which to make informed choices.

Comparative advertising

The FTC issued a ruling in 1979 that encourages the use of ____________ advertising, as long as the ads are truthful arguing that consumers are armed with more data upon which to make informed choices.

Comparative advertising

The FTC issued a ruling in 1979 that encourages the use of ____________ advertising, as long as they are truthful arguing that consumers are armed with more data upon which to make informed choices.

Comparative advertising

The method of advertising budgeting in which the budget is set based on how much competitors may be spending is the ____________ .

Comparative parity method

With _________ IMC budgeting, the size of the promotion budget is based on industry comparisons.

Competitive parity

The ____________ is defined as those prices bounded by customer demand at the high end and costs at the low end.

Competitive price range

The simplest remedy available to the FTC against firms charged with false, misleading, or deceptive advertising is __________ .

Consent decree

Two-sided ads present both the positives and negatives for brand and then usually attempt to refute the negatives. The effectiveness of such as is explained by:

Consumer tendencies to counter-argue with the positive points may be diffused due perceived increased credibility of the ad

Which of the following is least associated with the concept of 'price competition?'

Consumers are more likely to be price inelastic

______ are forms of sales promotion directed at the sales force with the objective of motivating or incentivize extra effort and improved performance.

Contests

The primary benefit to consumers when buying from a vending machine is:

Convenience

__________ carry carefully selected lines of high-turnover consumer food and non-food products, along with various grades of fuel. The focus is to serve "rushed" consumers who place more emphasis on time and place utility as they purchase and are willing to pay higher prices.

Convenience stores

In a _______ , each level in the supply chain operates under independent ownership. In other words, the producers and their suppliers, as well as all downstream marketing intermediaries (wholesaling middlemen and retailers) are separate business entities.

Conventional supply chain

The positive rewards accruing to consumers from purchase and use of a brand along with the use of reminder advertising positively reinforce the consumer's brand purchase decision during the __________ stage of the Hierarchy of Communications Objectives.

Conviction and brand loyalty

Polo (Ralph Lauren) not only manufactures clothing but also operates its own retail stores (factory outlets). Polo is an example of a(n):

Corporate VMS

Chain stores with 11 or more retail units or locations are technically called as ______________ .

Corporate chains

______________ typically are well-financed and centrally operated. Their size and financial strength provides them with significant scale economies in purchasing and operations.

Corporate chains

The Polo outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure?

Corporate vertical marketing system

Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store. Such true 'factory outlets' are examples of:

Corporate vertical marketing systems.

The cost of advertising in a specific medium divided by the total number of message exposures from using that medium is used to determine the medium's ___________ .

Cost per thousand (correct)

Which of the following is the major disadvantage of nearly all cost-based pricing methods?

Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques

Which of the following is the major disadvantage of nearly all cost-based pricing methods?

Cost-based pricing techniques generally fail to account for consumer demand at the prices set with such techniques.

Custom Creamery located in South Dallas makes 2,000 pies per day. The total cost per raspberry-apple pie is $2.25. Its average fixed costs equal $1.00 per pie. The company has calculated that if its charges $4.25 per pie, it will realize a 30 percent profit on the total cost of each pie. What pricing method is Aristo Industries using?

Cost-plus pricing

Custom Creamery located in South Dallas makes 2,000 pies per day. The total cost per raspberry-apple pie is $2.25. Its average fixed costs equal $1.00 per pie. The company has calculated that if its charges $4.50 per pie, it will realize a 55 percent profit on the total cost of each pie. What pricing method is Custom Creamery using?

Cost-plus pricing

Break-even analysis is normally conducted during the __________ stage of the price setting process.

Cost-volume-profit analysis

The use of ___________ has been claimed to be a mild form of price discrimination because only price-conscious consumers are likely to take the time and effort to use them.

Coupons

Persuasive advertising is employed mainly to:

Create selective demand for individual brands

The first, critical step in the Hierarchy of Communications Objectives is _________ .

Creating awareness

Determining the Big Idea is part of the ______________ stage of advertising strategy development.

Creating the advertising message

An understanding of traditions, preferences, and dos and don'ts in foreign counties helps domestic firms avoid embarrassing marketing mistakes. Equally important, these insights can also provide opportunities to exploit important differences in wants, needs, values, and perceptions. These considerations reflect the importance of understanding how ____________ impact a firm's potential global marketing strategy.

Cultural differences

In India, LG introduced refrigerators that featured larger vegetable and water-storage compartments; electric surge-resistant power sourcing; and gaudily colored finishes that reflect regional preferences inside India. In Iran, LG markets a microwave oven that boasts a shish kebob preset button—makes sense, since this is a favorite dish throughout most of the Middle East. These are examples of ____________ impacting a firm's potential global marketing strategy.

Cultural differences

Nike unintentionally agitated Chinese officials after it released an ad in China that featured Lebron James destroying several culturally-esteemed Chinese figures in a Kung Fu-themed television promotion. Chinese politicians asserted that the ad violated regulations to maintain national dignity. These are examples of ____________ impacting a firm's potential global marketing strategy.

Cultural differences

South American business persons prefer to sit close to other another—truly nose-to-nose or side-by-side—when discussing business affairs. The American business person's propensity is to back away when someone infringes on his or her personal space. These are examples of ____________ impacting a firm's potential global marketing strategy.

Cultural differences

The average French husband uses about twice the amount of cosmetics and grooming products as his wife. Germans, the French, and Americans eat more packaged and branded spaghetti than Italian consumers. These are examples of ____________ impacting a firm's potential global marketing strategy.

Cultural differences

US business people prefer to get right to business and pursue tough "fast-to-fast" negotiating tactics. Chinese, Japanese, and other Asian businesspeople prefer to converse and socialize politely before entering business discussions. These are examples of ____________ impacting a firm's potential global marketing strategy.

Cultural differences

Every time you buy a protein shake at Discount Sport Nutrition (DSN) you can have your Discount Sport Nutrition card punched. When the card has 12 punches, your thirteenth shake is free. DSN is using a _____ discount.

Cumulative quantity

The key "public" that is targeted by a firm's PR efforts is _____.

Customers of the firm The firm's competitors The general public Legislators and politicians

The key "publics" that are targeted by a firm's PR efforts include all of the following except _____.

Customers of the firm The firm's competitors The general public The firm's employees All of the above are targeted. There are no exceptions. (correct)

A retail firm that uses leader pricing is:

Cutting the regular price on a few items with the hope of attracting customers.

Advertising by advocacy groups and governmental agencies that attempt to reduce demand for a product is called ________ .

De-marketing

When promotion is used to encourage consumers to purchase less, or at a later date, they are attempting to reduce demand for the advertised product. This promotion objective is called ________ .

De-marketing

With respect to the product life cycle, prices are usally lowest during the ___________ stage.

Decline

With respect to the product life cycle, prices are usually lowest during the ___________ stage.

Decline

The Communications Process from the message sender to the message receiver begins with the sender formulating the "message" and ends with _________ .

Decoding the message by the receiver

Friendship, Commerce, and Navigation (FCN) treaties with other countries typically cover all of the following except:

Define ethical standards of doing business between countries

Which of the following best defines the meaning of "e" - the coefficient of elasticity?

Defines the percent change in quantity demanded for every one percent change in price

Which of the following best defines the meaning of "e" - the coefficient of elasticity?

Defines the percent change in quantity demanded for every one percent change in price.

________ are responsible for delivering and stocking products for which an order has already been placed.

Delivery salespersons

_________ are responsible for delivering and stocking products for which an order has already been placed.

Delivery salespersons.

With respect to the coefficient of elasticity, a value of "e" equal to -1.5 means that:

Demand changes by -1.5% for each 1% change in price. For every 1% change in price, demand changes by -1.5 times that amount Demand is price elastic Demand and price are inversely related All of the above. (correct)

The "law of demand" is associated with:

Demand decreases as price increases.

Bounty paper towels employ _____________ in which the brand is presented in a way that emphasizes its absorbency and strength.

Demonstration advertising

___________ show the product actually being used. The specific objective is to highlight key benefits or features in a usage situation.

Demonstration advertising

___________ show the product actually being used. The specific objective is to highlight key benefits or features in a usage situation. This is an example of a(n) _________.

Demonstration advertising

_________ are owned and operated by corporate chains and carry a broad mix of product lines organized by "departments." Examples include JC Penney, Nordstrom's, Sears, Dillard's, and Macy's.

Department stores

____________ offer a full range of services including credit, delivery, generous return privileges, hair salons, travel services, automobile insurance, and (occasionally)restaurants. Sales personnel are expected to be helpful, courteous, and knowledgeable. Each department in inside the store operates as an autonomous unit that is responsible for its own buying, merchandising, revenue,and profits.

Department stores

d. All of the above are being employed

Department stores are facing serious competition from discount stores and category killers that offer the same or similar merchandise at lower prices. Which of the following actions are being taken by some department stores, such as Nordstrom, to combat these inroads? a. Target upscale shoppers who are less price-elastic b. Focus on higher margin products such as clothing, jewelry and cosmetics c. Individual departments may operate as upscale specialty stores stressing enhanced 'Atmospherics' d. All of the above are being employed e. Only a and b above

During the "structuring beliefs and attitudes" stage of the Hierarchy of Communications Objectives, the key to differentiating the advertiser's brand from competitors is to emphasize ___________ in promotion communications.

Determinant attributes

When __________ advertisers seek to determine the cost of advertising needed to achieve the desired objectives.

Determining the advertising budget

A channel consisting of only producers and final customers, with no middlemen providing assistance, is called ____________ distribution.

Direct

With __________ the marketer takes over those supply chain functions initially performed by third-party providers. Risks, as well as the costs of financial investments, rise as this strategy is employed.

Direct exporting

HP, in 2007, established two factories in India that manufactured personal computers. At about the same time, HP opened company-owned retail stores in more than 150 Indian cities. This is an example of _______ for penetrating a foreign market.

Direct investment

With __________ firms invest in and establish their own foreign-based assembly or manufacturing facilities.

Direct investment

Direct mail, telemarketing, on-line marketing, and direct response advertising are all components of ___________ .

Direct marketing

__________ consists of messages delivered through the mail; catalogs; telephone calls; direct response advertising and infomercials, in magazines or on television or radio; or through digitally-mediated communication sources such as tweets, texts, or emails.

Direct marketing

Bell and Howell advertises its high intensity flashlights regularly on TV and encourages consumers to place orders via the telephone, paying with their credit cards. Bell and Howell is employing ________ .

Direct response advertising

Lillian Vernon began her catalog empire with an advertisement for her purses in Seventeen magazine. Young ladies were encouraged to place orders via the telephone or mail. Lilian Vernon was employing _______.

Direct response advertising

Time Life regularly airs TV commercials promoting books, DVDs, and CDs. Consumers are shown 1-800 numbers and encouraged to use credit cards to make purchases. Time-Life is employing ___________.

Direct response advertising

Door-to-door selling and party plan selling are both examples of ________ .

Direct selling

Which of the following is true about how direct selling differs from direct marketing?

Direct selling is limited to face-to-face contact sales using door-to-door selling and party plan selling

All of the following are characteristics of direct selling except ___________.

Direct selling is the cheapest form of selling because no retail store-front is required

Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as ___________ .

Discount stores

provided in shallow, but reasonable, depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers.

Discount stores

_____________ is employed to create brand awareness, engage new viewers, and re-engage viewers who have visited websites in the past. This form of online advertising uses ads use graphics and rich media content (photos, videos, and audio) to encourage users to click on ads.

Display advertising

Core-Mark, a large grocery wholesaler, maintains a number of _____________ at key points in the United States that receive products from a large number of manufacturers in truckloads. Deliveries are received, sorted, accumulated, and reallocated to retailers in an efficient and timely manner.

Distribution centers

Large single story facilities designed specifically for performing the accumulating, sorting, and allocating functions as efficiently as possible are ____________.

Distribution centers

A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user

Distribution channel

A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves from producer to ultimate consumer or business user.

Distribution channel

b. Direct selling

Door-to-door selling and party plan selling are both examples of ___________. a. Telemarketing b. Direct selling c. In-store retailing d. Direct retailing e. Mail order selling

Todd Jeffries sells bulk lubricants and solvents to the many small machine shops in southern California. He takes title to the products but does not handle them. Instead, the lubricants and solvents are shipped in 25 to 50 gallon barrels directly from the producer to the machine shops. Todd is a:

Drop - shippers

Steve Johnson sells fiberglass resins and fiberglass fabrics to the many small sailboat manufacturers in Florida. He takes title to the products but does not handle them. Instead, the materials are shipped directly from the producer to the sailboat manufacturers. Steve is a:

Drop shipper

_________ are wholesaling middleman that buy and sell bulky commodities, such as coal and building materials. These products are very expensive to handle and ship, relative to their unit value. These wholesaling middlemen never physically handle the products they buy from their suppliers. The products are shipped directly from the supplier to the middlemen's' buyers.

Drop shippers

Buck Rogers sells fiberglass resins and fiberglass wire to the many small sailboat manufacturers in southern California. He takes title to the products but does not handle them. Instead, the resins are shipped in 50 gallon barrels directly from the producer to the sailboat manufacturers. Cole is a:

Drop-shipper

McDonald's product menu and its promotions vary greatly across the different countries in which it operates. The firm sensibly focuses substantial marketing mix attention on delivering products and messages that are popular and culturally acceptable across various nations and regions. McDonald's is using a(n) ______.

Dual customization strategy

Farmer Brothers distributes its coffee to restaurants, delis, vending operators, and coffee services through a variety of channels to reach essentially the same customers. Farmer Brothers is engaging in the practice commonly referred to as:

Dual distribution

Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___________ .

Dual distribution

The tendency for producers to employ multiple channels of distribution to reach the same target markets is called:

Dual distribution

_________ entails selling a product in a foreign market at prices substantially lower than it is priced in the domestic home market.

Dumping

Ford Motor, recently introduced a new, low-priced, and smallish model called the Figo in India. The Figo is targeted at tens of millions of Indian consumers who are only now able to afford their first car. This is example of ____________ impacting a firm's potential global marketing strategy.

Economic factors

Underdeveloped but emerging nations cannot afford the technical equipment that is the backbone of more developed, or industrialized, nations. This is example of ____________ impacting a firm's potential global marketing strategy.

Economic factors

e. Limited line (specialty) wholesaler

Electronics Supply stocks electronic repair parts and related supplies and tools from various producers. Joe's sells primarily to small electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Joe's is a ____________. a. Manufacturers agent b. Drop shipper c. Truck distributor /jobber d. Rack jobber e. Limited line (specialty) wholesaler

With respect to email advertising, which of the following is NOT true?

Emails sent to large numbers of consumers without their permission is an acceptable form of advertising. (correct)

Subsequent to the outbreak of mad cow disease in the US a few years ago, South Korea and other countries prohibited the importation of US-produced beef for a period of time. This was an example of a(n) _______.

Embargo

___________ are a complete ban on certain products imported from foreign countries into domestic markets.

Embargos

Perfumes, jewelry, and designer clothing are often advertised in pleasant settings or usage situations in an attempt to create a positive mood or image for the brand advertised. The advertising appeal employed is ____________.

Emotional appeal

When BMW airs advertising that emphasizes the performance, driving enjoyment, and style of its M4 they are employing _____________ .

Emotional appeals

____________ are employed in advertising to create a positive mood or image surrounding the product and its use. Usually there is no attempt to link the brand to any specific benefits or features.

Emotional appeals

____________ attempt to elicit affective or emotional responses from target audiences using humor, fear, and sex.

Emotional appeals

All of the following are important components of IMC except ___________.

Emphasis is placed on using cutting-edge digital media

A small manufacturer of custom cabinets wants to expand sales but does not wish to get involved directly with selling or any other marketing activities. The manufacturer probably will opt to employ which form of channel structure for reaching consumers?

Employing an agent to handle sales to other intermediaries

Noncumulative quantity discounts are primarily offered by a seller in order to:

Encourage larger individual orders

Noncumulative quantity discounts are primarily offered by a seller in order to:

Encourage larger individual orders.

After determining the target audience for an advertising campaign, firms must decide what the advertising should accomplish. Such decisions are done in which stage of the advertising process?

Establish advertising objectives

BP ran an effective institutional advertising campaign to improve its image after the Gulf oil spill. The purpose of the ads was to inform the public, affected citizens and businesses, and governmental agencies of its efforts to clean up the spill and its steps to ensure that it would not happen again. When BP decided on the purpose(s) of the campaign is was in which stage of the advertising process?

Establish advertising objectives

(n) _________ is the price of one nation's currency—the nation's dollar, pound, Euro, yen—in terms of another nation's currency.

Exchange rate

The reason why ____________ are important is that fluctuations make a nation's currency more or less valuable in comparison to other nations' currencies.

Exchange rates

The Olympics Emporium is the only place in Dallas where a collector of Olympic memorabilia can buy a set of eight Olympic coins minted in 24K Gold priced at $15,000. What kind of distribution coverage strategy is being used?

Exclusive

_________ are being employed when a producer prohitits its dealers from carrying its competitors' products,

Exclusive dealing agreements

____________ is the most restricted form of distribution. This form of distribution is best suited to specialty goods and some shopping goods, as well as industrial equipment and installations.

Exclusive distribution

With an __________ policy, a manufacturer agrees to establish a single distributor in a restricted geographic area.

Exclusive territory

A manufacturer has set the initial price of its product below the product's AVC. The manufacturer assumes that the low price will be attractive to enough consumers so that market share can be acquired very rapidly. The producer further assumes that, as additional market share is attained, AVC will be reduced substantially. In fact, when total sales hit the 20,000 unit point, the producer expects AVC to drop below price. The manufacturer is most likely making use of:

Experience curve effects

Experience curve effects.

The _____________exempts most domestic firms from normal and standard antitrust regulations when they are marketing globally.

Export trading act

___________ permits US firms to create export partnerships other domestic corporations who can "merge" presumably complimentary competencies, capabilities, and resources, to promote, and distribute domestic products more effectively in global markets.

Export trading act

The term _________ means that a domestic marketer ships goods or delivers professional services outside the country in which the marketer is located.

Exporting

A retail store's __________ include building architecture and storefront, parking, landscaping,surrounding buildings, and the general drive-by appearance that contribute to the consumer's initial image of the store.

External Atmospherics

A salesperson asks: "Is there any reason why we can't process your order and proceed with the shipment next week?" The salesperson is probably using a(n) ___________.

FInal objection close

The __________ close should only be used if the seller is confident that the prospective customer understands and agrees with the differentiating values of the salesperson's product.

FInal objection close

With which geographic pricing strategy is the seller likely to have the lowest freight charge?

FOB mill pricing

With which geographic pricing strategy is the seller likely to have the lowest freight charge?

FOB mill pricing.

Yesterday Delta Press in Dallas, Texas shipped 1,000 books to a retailer in Florida, 150 books to a retailer in Georgia, and 50 books to a buyer in Montana, yet Delta Press paid no freight charges. Which geographic pricing strategy did Delta use?

FOB plant pricing

Yesterday Delta Press in Dallas, Texas shipped 1,000 books to a retailer in Florida, 150 books to a retailer in Georgia, and 50 books to a buyer in Montana. However, Delta Press paid no freight charges. Which geographic pricing strategy did Delta use?

FOB plant pricing

False, misleading, and deceptive advertising are regulated by the __________.

FTC Act of 1914

Direct Selling

Face-to-Face Interaction bw sales representative and buyers either at home or in the workplace Ex: Door-to-Door Selling and Party Plan Selling (Tupperware)

Wells Fargo provides the financial services that allow supply chain members (wholesaling and retailering intermediaries) to establish and operate their businesses. In this context, Wells Fargo is a(n) ________.

Facilitating agent

Transportation firms, such as trucking companies and railroads, assist other supply chain members (producers, wholesalers, and retailers) by transporting products from point of production to point of consumption. In the context of supply chains, these transportation firms are called _________.

Facilitating agents

Warehouses run by third party operators provide access to long-term and short-term specialized storage and inventory management facilities. In the context of supply chains, these warehousing firms are called _________.

Facilitating agents

_____________ are not directly involved in the transfer of title for products moved through distribution channels. They do, however, provide a range of specialized support services that allow supply chains to function more efficiently.

Facilitating agents

Grapevine Mills, located just outside of Dallas, TX is a fully enclosed 1.5 million square foot mall. The huge facility houses more than 200 well-known manufacturer and retail outlets, off-price retailers and unique specialty stores. In addition to a food court, the mall houses a variety of theme restaurants including Rainforest Cafe, Dick Clark's American Bandstand Grill, and the Eerie World Cafe. Grapevine Mills is classified as a _________.

Factory outlet mall

d. Corporate vertical marketing systems

Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store. Such true 'factory outlets' are examples of: a. Off-price retailing b. Retailer cooperatives c. Administered vertical marketing systems d. Corporate vertical marketing systems e. None of the above

__________ usually limit sales to products produced by a single manufacturer. These stores are owned and operated by the manufacturer and, therefore, exemplify corporate vertical marketing systems.

Factory outlets

Burroughs-Welcome, when deciding whether or not to lower the price for AZT, considered several issues before deciding to hold the line on its current price. BW's decision illustrates a classic case of penetration pricing based on the assumption that demand for AZT was highly price elastic.

False

Specialty Stores

Focus on selling a single line of products A limited line retailer specializes in a narrow assortment of consumer durable goods, stocking its lines in great depth and operating out of regional shopping malls. Specialty stores avoid price discounting and offer excellent service - Ex: Victoria's Secret, Bath & Body Works, Barnes & Noble, etc.

The ____________ also mandates that accounting controls be in place for purposes of monitoring the potential use of incentives by domestic firms for soliciting sales in foreign countries. Violations of the law can result in individuals being fined and, potentially, imprisoned.

Foreign Corrupt Practices Act

The _____________ made it illegal for US marketers to use bribes as promotional incentives intended to solicit new sales.

Foreign Corrupt Practices Act

Which of the following is not a benefit of business format franchises for franchisees?

Franchisees are paid royalties by franchisors to offset their initial investment in the franchise.

Texas Cable Corporation, sells heavy gauge wire cable to construction companies around the country. Customers pay shipping from Texas Cable's warehouse in Dallas. Recently, a new competitor in Florida has been taking away some of Texas Cable's Southern customers. If Texas Cable wants to compete in these distant markets, but not increase the cost of its product to other customers, it would probably switch to

Freight absorption pricing

Texas Cable Corporation, sells heavy guage wire cable to construction companies around the country. Customers pay shipping from Texas Cable's warehouse in Dallas. Recently, a new competitor in Florida has been taking away some of Texas Cable's Southern customers. If Texas Cable wants to compete in these distant markets, but not increase the cost of its product to other customers, it would probably switch to

Freight absorption pricing

Freight absorption pricing.

In order to offset the competitive disadvantage of FOB plant pricing, Texas Granite Company in Dallas could use _____ pricing to ship its products to building contractors and furniture restorers in any part of the United States.

Freight-absorption

With respect to assessing advertising effectiveness the number of times consumers comprising a target audience are repeatedly exposed to a given message during a specified period of time is called _______.

Frequency

_____________ treaties with other world governments are international legal agreements that generally establish terms for a variety of marketing relationships between firms operating in the United States and firms operating in foreign nations.

Friendship, Commerce, and Navigation (FCN)

If there is a traditional channel for consumer goods, it is:

From producer to wholesaler to retailer to consumer

Which of the following is not a major trend associated with IMC?

From the employment of large, corporate advertising firms to greater reliance on smaller, more specialized advertising production houses.

When a manufacturer requires that its dealers carry its entire line or the dealer will be dropped, the manufacturer is engaged in _______

Full-line forcing

US customers are finally acknowledging that drinking soda may not be good for their health. At the same time governmental, regulatory, and other public interest forces complain continuously about and increasingly threaten the soft drink industry. As a result, the best response by Coca-Cola and other soft drink producers whose revenues are threatened domestically probably is:

Further emphasizing sales in global markets to offset declining domestic sales

b. Administered VMS

General Mills, with its line of cereal, snack foods, and baking products has substantial market position and brand equity making it possible to coordinate channel activities via its market power. This form of distribution illustrates a(n): a. Contractual VMS b. Administered VMS c. Voluntary Chain d. Corporate VMS e. Franchise system

Discount Stores & Supercenters

General merchandise retailers who feature a wide assortment of product lines, each provided in shallow, but reasonable depth. Unlike department stores, they offer fewer services - A retailer consisting of a combined discount store and grocery store Ex: Target, Dollar Tree, Etc.

Which of the following is not a function of public relations?

Getting the firm's message to mass audiences very quickly. (correct)

For which of the following products is intensive distribution most likely to be employed?

Gillette razor blades

Organizations that operate in more than one country and consequently secure marketing, production, NPD, research and development, financial or supply chain advantages that are not available to firms operating in purely domestic markets are engaged in ________.

Global marketing

____________ involves all the processes through which products or services are conceptualized, developed, promoted, priced, and distributed internationally from one nation to another.

Global marketing

Which of the following is a distinct advantage of the smaller indepdent retailer over its coporate chain store competitors?

Greater flexibility in operational decision-making at the individual store level

Which of the following is not an advantage of coporate chain stores over smaller independent retailers?

Greater flexibility in operational decision-making at the individual store level

Comparative advertising in which competing brands are directly identified in advertising messages is employed beginning in this product life cycle stage.

Growth

During the ____________ stage of the PLC, advertising objectives shift to communicating brand superiority by promoting the brand's differentiating characteristics relative to competing brands.

Growth

Advertisers attempt to move consumers through a series of steps beginning with becoming aware of a brand and ending with conviction and loyalty to the brand. This set of steps is referred to as _______ .

Hierarchy of Communications Objectives

Little active information search and alternative evaluation occurs with low involvement decisions. Which promotional media are most effective at reaching and influencing consumers under these conditions?

High imagery advertising media, such as TV and billboards.

The strategy of market-skimming pricing is especially suited for new products because:

High initial prices can keep demand from exceeding supply

The strategy of market-skimming pricing is especially suited for new products because:

High initial prices can keep demand from exceeding supply.

The likely consequences of firms choosing to engage in price competition include all of the following except __________.

Higher probability of price wars with other firms. Lower overall profits for firms in the industry. Higher levels of scrutiny by federal and state regulatory agencies. Greater tendency for firms to collude with one another to maintain prices All of the above are potential consequences. (correct)

Products that are intended to convey prestigious or high quality images usually are priced _____________ .

Higher than other brands in the product category

Toys "R" Us employed its purchasing power with toy producers Mattel and Hasbro to coerce them into not selling to competing retailers such as Costco and Sam's Club. Toys "R" Us actions resulted in ___________ .

Horizontal channel conflict

Assume that a number of Texas oil refiners decide to work together to unformly restrict output with the goal of stablizing declining prices. These firms are likely to be accused of ____________ .

Horizontal price fixing

Assume that a number of Texas oil refiners decide to work together to unformly restrict output with the goal of stablizing declining prices. These firms are likelyl to be accused of ____________ .

Horizontal price fixing

Assume that a number of Texas oil refiners decide to work together to uniformly restrict output with the goal of stabilizing decline prices. These firms are likely to be accused of ____________ .

Horizontal price fixing

___________ entails pricing agreements between two or more Firms operating at the same supply chain level.

Horizontal price fixing

___________ entails pricing agreements between two or more firms operating at the same supply chain level.

Horizontal price fixing

___________ are employed to gain attention and, hopefully, create a positive "affective" response to the ad that can rub off on the product. The idea is "like the ad, like the brand."

Humor appeals

_______ involves every department in the firm becoming involved in developing and communicating messages to customers, channel members, other stakeholders, and publics to create a unified image of the organization and its products.

IMC

The first step in the advertising process is to ___________

Identify the target audience

The first step in the advertising process is to ___________ .

Identify the target audience

The US sugar industry has been protected from excessive foreign competition through America's imposition of __________ on imported sugar from other nations.

Import quotas

When the US places limits on the amounts of certain products that can be imported into this country, they are employing ____________.

Import quotas

Which of the following is not among the actions that category killers such as Best Buy have taken to effectively compete with department stores and internet retailers, such as Amazon?

Improved merchandising by expanding the merchandise mix

A vertical marketing system (VMS):

Improves the channel's operating coordination, efficiency, and effectiveness

A vertical marketing system (VMS):

Improves the channel's operating coordination, efficiency, and effectiveness.

d. Traditional supply chain

In a ______, each level in the supply chain operates under independent ownership. In other words, the producers and their suppliers, as well as all downstream marketing intermediaries (wholesaling middlemen and retailers) are separate business entities. a. Conventional supply chain b. Vertical marketing system c. Horizontal marketing system d. Traditional supply chain

Prices for products are usually at their highest point during the ________________ stage of the product's life cycle.

Introduction

Sales promotions, such as coupons and free samples, are employed to induce trial primarily in the ______ stage of the PLC.

Introduction

The disadvantages of licensing as a means for US firms to enter foreign markets include all but the following:

Increased costs associated maintaining the licensing arrangement

The majority of retailing establishments in the US today are:

Independent retailers

Most firms begin their global marketing efforts using _____________ . This is the simplest and least risky method for entering foreign markets.

Indirect exporting

Which of the following is not considered to be joint venturing for penetrating foreign markets?

Indirect exporting

Direct channels for products are most likely for _________ .

Industrial installation

Direct channels for products are most likely for _________ .

Industrial installations

Communications designed to relay information to consumers about product characteristics, their function, and availability are called ____________ communications.

Informative

Transportation, communications, banking and financial, utilities, and public services capabilities are each part of a country's _________.

Infrastructure

Sales staff working the sales floor in Best Buy or Dillard's are technically called ______.

Inside order takers

The primary tasks of _____________ are to answer customers' questions, take orders, and make suggestive sales.

Inside order takers

Subsequent to the now infamous Gulf oil spill in 2010 BP employed ____________intended to "clean up" its image by talking about the steps it has taken to clean up the Gulf and prevent future similar disasters.

Institutional advertising

____________ is intended to promote the image of an organization by highlighting specific activities in which the organization is engaged, people who represent the organization, and/or ideas and points of view espoused by the organization.

Institutional advertising

_______________ promotes organizations rather than products.

Institutional advertising

Institutional advertising.

_______________ promotes organizations rather than products.

Institutional advertising.

The acronym IMC stands for ________.

Integrated Marketing Communications

Vertical Marketing System (VMS)

Integrated supply chain in which producers, wholesalers, and retailers coordinate their actions to enhance efficiency and coordination in the supply chain by contractual arrangements, single ownership of multiple levels in the channel, or sheer size and power of one of the members Vertical Marketing Systems evolved to induce better cooperation and control in channel by: • Common ownership • Contracts • Power relationship - Advantages: - Improved cooperation between channel members - Better service to ultimate consumers - Reduced conflict in the channel - Improved efficiencies and reduced costs

Every suitable retail outlet is targeted. This type of distribution is best suited to consumer convenience goods and some shopping goods.

Intensive distribution

________ attempts to achieve maximum retail exposure for a product. Every suitable retail outlet is targeted. This type of distribution is best suited to consumer convenience goods and some shopping goods.

Intensive distribution

The term used when multiple transportation modes -- trains, planes, automobiles, trucks, pipelines, barges, etc. -- are employed to ship any item is ___________ .

Intermodal transportation

A retail store's _____________ include the decor, merchandise arrangement and crowding, general layout, background music, color schemes, scents, acoustics and noise levels, lighting, and cleanliness of stores.

Internal atmospherics

Retailers work hard to design in-store sensory environments that postively affect one or more of the consumers' five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusing on creating positive __________.

Internal atmospherics

Advertising is used extensively during the ____________ stage of the PLC to create awareness and stimulate product trial.

Introduction

Personal selling is employed to reach intermediaries and persuade them to stock and promote the product primarily during the __________ stage of the PLC.

Introduction

Logistics ("Me")

Inventory in motion or at rest throughout the Supply Chain Planning, implementation, control of the physical flow of parts, materials, semi-finished goods, finished goods, services, and information in supply chains.

Humphrey Studio sells reproductions of European antiques. Last year sales were disappointing. The studio owner decided to increase the price of each item by about 25%. The next year there was a 20% increase in units sold. The studio apparently experienced:

Inverse demand

Inverse demand.

Montana Coffee Traders operates a coffee shop inside of Kroger's Supermarket in Whitefish Montana. Evidently, in this specific case, Montana Coffee Traders is a ____________ .

Leased department retailer

d. Manufacturers agent

Jane Tuttle calls on the many gift shops at Estes Park, Colorado and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that she represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a ________________. a. Rack jobber b. Drop shipper c. Broker d. Manufacturers agent e. Sellers agent

b. Rack jobber

Joe Duncan sells a wide assortment of "Emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, provides the shelves and stocks to display, and monitors the inventory for his customers. Joe is a _______________. a. Selling agent b. Rack jobber c. Cash and carry wholesaler d. Truck wholesaler / jobber e. Manufacturers' agent

US-based firms can enter into arrangements with foreign firms to create local businesses in foreign markets. Both firms share ownership and control of the venture. This arrangement is termed _______ .

Joint ownership

A ____________ for penetrating international markets by US firms occurs when the US-based firm combines forces with a host firm in the foreign market to produce or market products or services in the host country.

Joint venturing

d. A selling agent

Kansas Textile Mills produces a range of high quality fabrics used in the fashion garment industry. Kansas has no desire to do its own marketing. Instead, it contracted Allied Distributors to take over its marketing functions. Apparently, Allied is ____________: a. A rack jobber b. A manufacturers' agent c. A broker d. A selling agent

Which of the following is not a federal law that regulates aspects of supply chain relationships?

Lanham Trademark Act

Supermarkets

Large, self-service retail operations that carry complete lines of food products and carefully selected lines of complementary non-food items - Price competition is fierce - profits for them after taxes average LESS than 1% of sales Ex: Albertson's, Krogers

Warehouse Clubs

Large-scale, member-only, mass merchandisers that combine cash and carry wholesaling w/ discount retailing

The Wine Emporium features wines from all over the world. Along with its wines, the firm sells "The Complete Wine Guide" for $4.99. It sells this book at a price substantially below its regular retail price of $19.95 in order to attract wine shoppers to its store and increase its wine sales. This would be an example of:

Leader pricing

a. Rack jobber

Lee Gabriel Distributors, based on Denton, TX, sells fast moving hardware items to small independent grocers in rural Texas. Lee often provide the displays, stock the shelves, and monitors inventory for his clients, charging them only after sales have been made. Apparently, Lee is a _____________ a. Rack jobber b. Retailer's Coop c. Specialty wholesaler d. Truck distributor

When the US dollar is devalued relative to, say, the Euro, US goods purchased in foreign counties using the Euro tend to be ___________.

Less expensive

The supermarket form of retailing normally commands profit margines, on average, of:

Less than 5%

With __________ a US firm reaches an agreement with another firm in the targeted foreign market. In exchange for a royalty payment or fee, the foreign-based firm acquires the right to use a US firm's manufacturing process, brand or trademark, trade secret or patent, or some other item that delivers differentiating value.

Licensing

The typical Mountain Dew ad shows young adults enjoying the refreshing coolness of Mountain Dew while engaging in some fun activity, such as swimming and partying in a mountain lake. The advertising appeal used is __________.

Life style appeals

The typical Mountain Dew ad shows young adults enjoying the refreshing coolness of mountain while engaging in some fun activity, such as swimming and partying in a mountain lake. The advertising appeal used is __________.

Life style appeals

_________ appeals show the product being used within the context of someone enjoying a specific event or experience.

Life style appeals

Life style appeals.

_________ appeals show the product being used within the context of someone enjoying a specific event or experience.

Life style appeals.

In-store Retailing

Limited Line and General Merchandise - Specialty Stores - Off-price Retailers - Factory Outlets - Category Discounters

Joe's Electronics Supply stocks electronic repair parts and related supplies and tools from various producers. Joe's sells primarily to small electronic repair shops throughout the country that only want to order one or two items at a time. Orders are usually shipped out on UPS trucks. It appears that Joe's is a

Limited line (specialty) wholesaler

____________ specialize in specific product lines, often carrying only a single line. The merchandise mixes are described as "narrow" and "deep."

Limited line retailers

"Inventory in motion or at rest throughout the supply chain" is called:

Logistics

c. A truck jobber / distributer

Lois Lane wants to open a convenience store in Cripple Creek Colorado. What kind of wholesaler will likely provide her chewing gum, tobacco products, candy bars, and other snack foods? a. A desk jobber b. A commission merchant c. A truck jobber / distributer d. A manufacturer's sales office e. A broker

Which of the following is a strength of TV as an advertising medium?

Low cost per exposure Ability to reach large numbers of people Ability to manipulate imagery, sound, and motion to create a strong visual and emotional impact. Great flexibility in designing and delivering the advertising message. All of the above are strengths (correct)

The primary objective of ____________ in which customers accumulate points over time with each purchase is to encourage consumers to continue buying the firm's products.

Loyalty programs

With __________ customers accumulate "points" over time that can be redeemed for products or cash.

Loyalty programs

a. Vending

Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing? a. Vending b. Direct response advertising c. Direct selling d. Mechanical marketing e. None of the above

Marriott intends to add hotel operations in Belize and Honduras. It would like to partner with local investors who would own the hotels, but rely on Marriott to provide management services. Ultimately, Marriott wants to buy out the foreign investors. Marriott probably should be advised to use which method of entering a foreign market?

Management contracting

Some domestic US firms contract with partner firms in foreign markets for purposes of using the US firm's management expertise to run the partner firm's operations in the foreign markets. This is an example of __________ for entering a foreign market.

Management contracting

The Hilton hotel chain recently opened a Doubletree in Dubai, the capital of the United Arab Emirates. Local investors own the facility. Hilton manages the property for these local investors. This is an example of __________ for entering a foreign market.

Management contracting

In final step in the price setting process is __________.

Managing price

The final step in the price setting process is __________.

Managing price

The final step in the price setting process is __________.

Managing price.

Jane Tuttle calls on the many gift shops at Estes Park, Colorado and sells a variety of unique decorative glass items, wind chimes, and picture frames produced by the companies that he represents. The store owners order from Jane rather than from the different manufacturers she represents. Apparently, Jane is a:

Manufacturers' agent

Which of the following is false concerning the importance of global marketing?

Most large international firms are headquartered in the US

Sandra Locke sells gluten-free specialty food products to grocery wholesalers and large retail grocery chains in Tampa. She sells for several manufacturers with noncompeting lines of gluten-free foods and earns a 4% sales commission. Sandra does not own or inventory the products she sells. Evidently, Sandra is a: neither handles nor owns the products she sells.

Manufacturers' agent

When Nintendo video games were introduced into the United States, they were priced at an introductory price of $299. This price was $100 lower than the Sega games. Nintendo probably used _____ a pricing strategy to quickly gain a large share of the market.

Market penetration

Market penetration.

The expected price for sunscreen is in the $4 to $6 price range. The introductory price for Shade UVA Guard by Schering-Plough was $9.99 to recover its research and development costs. Schering-Plough was using a _____ strategy.

Market-skimming

The expected price for sunscreen is in the $4 to $6 price range. The introductory price for Shade UVA Guard by Schering-Plough was set high ($9.99) to recover its research and development costs. Schering-Plough was using a _____ strategy.

Market-skimming

The expected price for sunscreen is in the $4 to $6 price range. The introductory price for Sun UVA Guard by Coppertone was set high ($9.99) to recover its research and development costs. Coppertone was using a _____ strategy.

Market-skimming

a. Party plan selling

Mary Kay, Tupperware, Stanley Home Products, and Magic Chef all exemplify which form of direct selling? a. Party plan selling b. Door-to-door selling c. In-home selling d. Group selling

The supply chain function in which buyers and sellers are brought together to perform exchanges is:

Matching

The supply chain function in which buyers and sellers are brought together to perform exhanges is:

Matching

Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called ___________ by logisticians.

Materials Management

Managing the flow of parts and other factors of production into the manufacturing process has been traditionally called ___________ by logisticians.

Materials management

Movement of parts and materials from their sources of supply into the manufacturing process is called:

Materials management

During the _______ stage of the PLC, advertising is mainly used to announce product improvements, reach additional target segments, and demonstrate new ways that consumers could use the product.

Maturity

During the _________ stage of the PLC, a major purpose of advertising is to "buy market share" from competitors.

Maturity

During the __________ stage of the PLC, the primary role of sales promotions is to tempt consumers into "brand switching." Coupons, point-of-sale devices, premiums, and price incentives are needed to entice consumers away from competing brands.

Maturity

Informative messages are generally more appropriate during which stages of the PLC?

Maturity and decline

Reminder communications are generally more appropriate during which stages of the PLC?

Maturity and decline

The number of different product lines carried by a retailer is its ________ .

Merchandise breath

The classification system for in-store retailers employed in the text is based on the ______________ of the retailer.

Merchandise mix

The entire range of products stocked by a retailer is its _______.

Merchandise mix

Convenience Stores

Mini-supermarkets that carry carefully selected lines of high-turnover consumers food and non-food products, along w/ various grades of fuel - Major threat to supermarkets as " rushed" consumers want time and place utility and will pay higher prices for products at convenience stores

__________ don't actually get involved in making sales. Their job is to provide B2B customers and prospective customers with information, assist in promotion activities with the firm's supply chain partners, and generally work to build goodwill.

Missionary salesperson

Teresa Wilson works for Whitman Pharmaceutical Co. Teresa provide service support to pharmacies, hospitals, and physicians, but does not actively become involved in making sales. Teresa is compensated via salary. Teresa is a(n) _________.

Missionary salespersons

__________ don't actually get involved in making sales. Their job is to provide B2B customers and prospective customers with information, assist in promotion activities with the Firm's supply chain partners, and generally work to build goodwill.

Missionary salespersons

Department Stores

Most are owned and operated by corporate chains. In contrast to the narrow product mix of the limited line store, ___ offer a broad mix of product lines under one roof, and are organized by "department"

b. Manufacturers' agent

Navarro Electronics Instruments, a Denver-based producer of sophisticated test equipment employed in non-destructive testing, wants to tap the growing market for non-destructive testing in the Gulf states. Navarro uses its own sales force for its current market, but does not want to invest in additional sales reps in the Gulf until the market proves itself. Navarro would be wise to use a(n) _____________ to initiate sales on the Gulf states. a. Commission merchant b. Manufacturers' agent c. Selling agents d. Broker

When channel members haggle with one another over final prices and product placement within retail settings they are performing which channel function?

Negotiating

When channel members haggle with one another over final prices and product placement within retail settings they are performing which channel function?.

Negotiating

Convience stores, barber shops, hair stylists, manicurists, delies, and other small specialy stores tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices.

Neighborhood centers

Stores such as Family Dollar and Dollar General tend to located their facilities in ________________ in order to target consumers living nearby, attracting consumers who are primarily interested in a combination of convenience and lower prices.

Neighborhood centers

With respect to the Communications Process, physical/psychological barriers, distractions, and other impediments to successful communication are called ____________ .

Noise

When a seller attempts to employ promotion to shift the demand curve for its product to the right, such efforts represent:

Non-price competition

When firms seek to differentiate their product offerings by emphasizing different promotion techniques they are said to be employing ___________.

Non-price competition

When firms seek to differentitate their product offerings by emphasizing different promotion techniques they are said to be employing ___________ .

Non-price competition

____________ occurs when products are not sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending.

Non-store retailing

When setting prices, the price floor is usually defined by ______ of producing and marketing the product.

None of the above

The _____________ method of budgeting is the best approach to employ, although not normally the easiest.

Objective and task

Using the ____________ budgets are set by first identifying exactly what communications objectives are being pursued and then setting the budget to achieve them.

Objective and task

With ____________ IMC budgeting, the overall budget is built up from specific budgets allocated to each promotional activity that is needed to achieve objectives.

Objective and task

The method of advertising budgeting in which the budget is set based the ability of the budget to achieve specific adverting objectives is the ____________ .

Objective and task method (correct)

___________ include stores such as Ross Dress For Less, Dress Barn, T.J. Maxx, DSW Designer Shoe Warehouse, and Marshall's.

Off-price retailers

outdated or out-of-season brand name merchandise at prices that are often below those charged by other discount stores for comparable merchandise.

Off-price retailers

Organic Building Products Co. wants to keep its inventory low. Which of the following would be MOST likely to encourage customers to take over more responsibility for the storage function?

Offering a noncumulative quantity discount

b. Manufacturers' agent

Old Smokie, Inc. is a small producer of specialty equipment for smoking meats. The company does not have its own sales force and has just introduced a cooker which smokes meats 50% faster. The cooker will mostly likely be distributed by a ____________. a. Truck jobber b. Manufacturers' agent c. Drop shipper d. Broker e. Commission merchant

Promotion messages that point out only the positive aspect of a brand are called _________.

One-sided messages

In general, one-sided ads work better when consumers:

Only b and c above

John Larson is a sales representative for Whitman Manufacturing. John's primary job is to seek new customers, but he is also tasked with generating increased sales to existing customers. John is a(n) _________ .

Order getter

___________, as salespersons, usually work in the B2B arena, and are engaged in creative selling to prospect and qualify prospective customers.

Order getters

A typical Caterpillar salesperson calls on Cat's regional distributors, as well as larger agricultural and construction businesses to generate orders and maintain customer relations. This type of salesperson is a(n) ____________.

Outside order taker

A typical Caterpillar salesperson calls on its regional distributors, as well as larger agricultural and construction businesses is an example to generate orders and maintain customer relations. This type of salesperson is a(n) ____________.

Outside order taker

___________ are traveling salespersons who visit customers in the field and generate orders in the process. This form of selling is most common in B2B supply chains.

Outside order takers

___________ are specialized types of sales promotions that include end-of-aisle displays, window signs, special display racks, shelf coupon dispensers, and displays next to check-out counters.

POP materials

___________ materials are specialized types of sales promotions that include end-of-aisle displays, window signs, special display racks, shelf coupon dispensers, and displays next to check-out counters.

POP materials

Mary Kay, Tupperware, Stanley Home Products and Magic Chef all expemplify which form of direct selling?

Party plan selling

____________ has evolved to reduce some of the more egregious aspects of traditional door-to-door selling. With this form of selling, salespeople recruit prospects to host get-togethers at their homes or their places of work.

Party plan selling

The easiest to use and most frequently employed method of advertising budgeting is the ________ .

Percent of sales method

The method of advertising budgeting in which the budget is set based some fixed percent of existing or forecasted sales is the ____________ .

Percent of sales method

With ___________ IMC budgeting, the magnitude of sales determines the size of the budget, rather than promotion driving sales.

Percentage of Sales and All-You-Can Afford

With the ____________ of IMC budgeting, the total budget will decline when sales decline and increase as sales go up.

Percentage of Sales and All-You-Can Afford

ABC corporation expects sales of $1,500,000 for next year and the promotion budget is limited to 5% of sales, the total promotion budget will be $75,000. ABC has employed the ______ method of budgeting.

Percentage of sales

With __________ the IMC budget is set at some fixed percentage of the previous year's sales or next year's forecasted sales.

Percentage of sales

Which of the following pricing strategies would you suggest to a retailer that wishes to encourage price-sensitive shoppers to postpone their purchases for those products the retailer intends to place on sale until the planned time of the sale:

Periodic discounting

Which of the following pricing strategies would you suggest to a retailer that wishes to encourage price-sensitive shoppers to postpone their purchases until the planned time of the sale for those products the retailer intends to place on sale:

Periodic discounting

The communication process inherent in _____________ is useful for ascertaining the customer's wants and needs, imparting customized information to customers about products or services, and for developing customer relationships, even if the contact does not immediately result in a "sale."

Personal selling

When promotion messages are complex or when products benefits must be extensively demonstrated (e.g. computers, vacuum cleaners, DVD players), _________ is more appropriate.

Personal selling

_______ is the most influential component of the promotion mix and the only component that can effectively make the sale.

Personal selling

________ is the most important form of promotion for most industrial goods, particularly installations and major equipment, where product customization and demonstration are often essential.

Personal selling

_________ is an oral, personal, and often face-to-face communication between prospective buyers and sellers.

Personal selling

_________ should be used when products being marketed are complex enough such that their precise use or benefits must be explained or demonstrated to customers.

Personal selling

__________ should be used when products must be customized in order to best fit customers' special needs.

Personal selling

_____________ is an oral, one-on-one, often face-to-face communication between prospective buyers and sellers.

Personal selling

______________ is considered to be the only promotional medium capable of "closing" a sale and directly generating revenue for the Firm.

Personal selling

_________ should be used when products must be customized in order to best fit customers' special needs.

Personal selling.

Communications designed to convince consumers that a brand is the best solution to their purchasing problem are called ____________ communications.

Persuasive

Incentives, such as coupons, rebates, and other forms of sales promotion are best classified as _______ communications.

Persuasive

___________ is used during growth and maturity stages of the PLC to differentiate the firm's brand from competitors' brands.

Persuasive advertising

___________ is used during growth and maturity stages of the PLC to differentiate the firm's brand from competitors' brands.

Persuasive advertising (correct)

The physical movement of finished goods from producers to middlemen and, eventually, to consumers is:

Physical distribution

The physical movement of finished goods from producers to middlemen and, everntually, to consumers is:

Physical distribution

The purpose of ___________ to create awareness and trial for new products that are in the introductory stages of their product life cycles.

Pioneering advertising

_______________ is used to develop primary demand for the product category, rather than demand for individual brands.

Pioneering advertising

Which of the following companies is least likely to function as a channel captain in their respective supply chains?

Pizza Hut

Which of the following companies is least likely to function as a channel captain in their respective supply chains?

Pizza hut

The acronym "POD" stands for __________.

Point of Difference

POP in sales promotion terminology stands for _________.

Point of Purchase

The acronym "POD" stands for __________.

Point of difference

POP in sales promotion terminology stands for _________.

Point of purchase

d. Corporate VMS

Polo (Ralph Lauren) not only manufactures clothing, but also operates its own retail stores (factory outlets). Polo is an example of a(n): a. Contractual VMS b. Administered VMS c. Wholesaler-sponsored voluntary chain d. Corporate VMS e. Franchise system

Lowe's, Home Depot, Staples, Target, Walmart, Barnes & Noble, Bally's or LA Fitness Health Clubs, PETSMART, Old Navy, Best Buy, Bed, Bath & Beyond, and Toys-R-Us are typical are typically located in ____________.

Power centers

____________ are large un-enclosed shopping centers that are normally anchored by large category killers and off-price retailers rather than traditional department stores.

Power centers

Meg Ryan spends hours searching for data concerning sales prospects in the SEC's Edgar database, Hoover's, The Wall Street Journal, Standard & Poor's 500 Directory, and Dun & Bradstreet's Million Dollar Directory. Meg is engaged in _______ step of the personal selling process.

Pre-approach

Primarily a consideration with B2B selling, ____________ is a homework step in which as much is learned about the prospect as possible.

Pre-approach

Commonly employed methods for assessing advertising's communications performance include which of the following ______ .

Pre-testing ads in focus groups Post-campaign surveys Reach and frequency data Test markets to examine awareness and recall of ads All of the above. (correct)

A profit-oriented manufacturer of a consumer durable product faces a demand curve that is upward sloping to the right until extremely high prices are reached. For these latter prices, the demand curve tips over and is downward sloping. Which of the following pricing approaches is most consistent with the demand curve described?

Prestige pricing

A penetration pricing strategy is most likely to be used when pricing objectives focus on:

Preventing competitive entry by signaling competitors that profit potential is limited due to small or non-existent margins.

Price is a measure of the utility that exists or is perceived to exist in a product.

Price

_______ is variously called rent, tuition, interest, fee, toll, wage, commission, dues, salary, bribe, blackmail, and more.

Price

________ is variously called rent, tuition, interest, fee, toll, wage, commission, dues, salary, bribe, blackmail, and more.

Price

_________ is the only marketing mix element that generates revenue for the firm

Price

_________ is the only marketing mix element that generates revenue for the firm.

Price

__________ is a measure of the utility that exists or is perceived to exist in a product.

Price

__________ is the amount of money or other form of remuneration that is charged for products or services.

Price

In the price setting process, __________ are considered to be the role that price is expected to play in the firm's marketing program.

Price objectives

In the price setting process, __________ are the fundamental approaches to setting and managing price to achieve the firm's objectives.

Price strategies

Understanding costs faced by the firm when making pricing decisions is important because:

Prices must be set with a knowledge of the costs required to make and sell the product.

___________ are tactical pricing elements that are intended to aid supply chain members in promoting the firm's product at the retail level.

Pricing allowances

___________ are tactical pricing elements that typically reduce the computed base price of a product and help firms manage demand for the product.

Pricing discount

___________ are tactical pricing elements that typically reduce the computed base price of a product and help firms manage demand for the product.

Pricing discounts

Which distribution channel is a small manufacturer of specialty wood gift products sold to gift shops most likely to use? Assume that the manufacturer is not able to afford its own sales force.

Producer to agent to retailer

Cajun Fire is a small producer of jalapeno and habanero pepper sauces. It does not have its own sales force. Which channel of distribution is it most likely to use?

Producer to agent to retailer to consumer

Which distribution channel is the manufacturer of small fireproof safes for businesses most likely to use?

Producer to industrial distributor to user

The most common channel of distribution for consumer goods is _______ .

Producer to wholesaler to retailer to consumer

The most common channel of distribution for consumer goods is _______ .

Producer à Wholesaler à Retailer à Consumer

In Russia, greeting cards are not sent to men celebrating their 40th birthdays. Traditional Russians still honor the belief that big events or gestures intended to celebrate this milestone are tantamount to inviting "the Death" into his life. Hallmark does not produce and sell 40th birthday greeting cards in Russia. Hallmark is using a(n) _________ for tapping the Russian market.

Product adaptation strategy

When Hallmark markets Happy Birthday [Mom or Dad] greeting cards in Japan, messages are far more ceremonial and formal. This change illustrates a(n) _________ for penetrating an international market.

Product adaptation strategy

Consider the following statement: "If the net profit margin on each sales dollar earned is 5%, a supply chain operational savings of $5,000 yields the same return to the Firm's bottom line as would a sales increase of $100,000." This statement reflects:

Profit leveraging of costs

For featuring Lego Sets prominently in its store window, Toy Emporium, a store that carries educational toys, received a free motorized Ferris Lego Wheel kit, valued at $150. This is an example of a:

Promotional allowance

Revlon cosmetics paid one-half of the advertising cost for the large retail chain Macy's to run a series of ads on local cable TV channels. Each of the ads emphasized that Macy's carried the complete line of Revlon products. This would be an example of a:

Promotional allowance

For featuring Lego Sets prominently in its store window, Toy Emporium, a store that carries educational toys, received a free motorized Ferris Lego Wheel kit, valued at $150. This is an example of a:

Promotional allowance.

Firms typically will attempt to characterize likely customers in terms of easily identifiable geographic and demographic characteristics and then employ various directories and databases to locate people with these characteristics. This step in the personal selling process is ___________.

Prospecting

Sales promotions are employed to solicit interest in a firm's products. The objective is to generate interest that leads to requests for further information. This step in the personal selling process is ___________.

Prospecting

With B2C sales, firms often rely on inquiries by email, social media, or inquiries made to the sellers' websites to identify potential customers. This step in the personal selling process is ___________.

Prospecting

With respect to the personal selling process, _______ is the process of identifying potential customers and is the first step in the personal selling process.

Prospecting

With respect to the personal selling process, _______ is the process of identifying potential customers and is the first step in the process.

Prospecting

_________ are used to increase the retail price of an imported product such that it generally matches or exceeds the price of domestically produced goods.

Protective tariffs

Typical goals of ____________ are to garner positive news releases, arrange interviews between the media and the firm's spokespersons, lobby governmental agencies, support charitable events, and engage in corporate (institutional) advertising.

Public relations

_________ is a strategic communication process that builds mutually beneficial relationships between organizations and their publics."

Public relations

_________ is the organized effort by a firm in an attempt to manage the publicity it receives; create positive attitudes toward the firm, its product, and its policies; and foster positive relationships with various internal and external publics.

Public relations

_____________ is an attempt by Firms to manage the publicity it receives by seeking to enhance the image of the firm and its products, or to communicate important company information to key publics.

Public relations

Managing media relations, publicity, lobbying, and investor relations are generally handled by the firm's ___________.

Public relations staff

A TV station runs a story about a company that is deemed to be "newsworthy." The company that is the subject of the news story does not pay for or directly sponsor the message. This is an example of ______ .

Publicity

______________ is any message about a product, organization, person, or event that is communicated via non-personal media and is not paid for by a sponsor.

Publicity

The biggest advantage of publicity is

Publicity is generally free Publicity is generally viewed a more credible because it originates from an independent source

Mild claims of superiority in advertising are referred to as _________.

Puffery

A ______ promotion strategy builds sales by promoting aggressively to the final buyer, usually the ultimate consumer. By stimulating demand with the final buyer, intermediaries are forced to stock and sell the product to satisfy this demand.

Pull

Procter and Gamble employs extensive television and print advertising to create demand for its personal care products with consumers. Coupons, gifts, and premiums are employed at the point of purchase to stimulate trial and brand switching behaviors, as well as to create brand preference. P&G is employing a _________ promotion strategy.

Pull

With _________ promotion, advertising is directed at ultimate consumers in order stimulate demand and influence intermediaries to stock the product advertised.

Pull

Producers employ a wide range of promotions directed at intermediaries to motivate their selling efforts. Examples include dealer contests for middlemen's sales personnel, trade shows, slotting fees for retailers, and promotional allowances. These promotional tools are considered to be elements ____________ promotion.

Push

With ______ promotion, advertising and other promotion techniques are directed at intermediaries to convince them to stock the advertiser's products.

Push

With ________ promotion strategies producers heavily promote to wholesale and retail intermediaries. In turn, retailers actively promote the product to ultimate consumers. This strategy relies heavily on the aggressive selling efforts of the manufacturer's sales force to work with wholesalers and/or retailers.

Push

Some manufacturers give ______________ to retailers to pass on to the retailers' sales clerks to encourage aggressive selling of specific items or lines.

Push money

Some manufacturers give ______________ to retailers to pass on to the retailers' salesclerks to encourage aggressive selling of specific items or lines.

Push money

b. Manufacturers' agent

Q19: ____________________ specialize in selling and work on a commission basis. They operate in limited geographic areas and represent two or more non-competing producers. a. Rack jobbers b. Manufacturers' agents c. Selling agents d. Auction companies

b. Allocating

Q5: Aggregate Chemical Supply is a large wholesaler of chemical products. Aggregate buys in large quantities from its suppliers and then resells these chemicals in smaller amount to its customers across the Southwest US. Which supply chain (channel) function is being performed by Aggregate? a. Accumulating b. Allocating c. Sorting d. Assorting

The key questions asked during the _________ step of the personal selling process are: Does the prospect need and want the product? And, does the prospect have the resources to buy the product?

Qualifying

Producers offer ___________ to encourage customers to buy in larger amounts or to make most of their purchases from the same seller.

Quantity discounts

Producers offer ___________ to encourage customers to buy in larger amounts or to make most of their purchases from the same seller.

Quantity discounts.

Rack jobber

Joe Duncan sells a wide assortment of "emergency" home repair items (fuses, electrical tape, small packets of nails) to grocery and convenience stores. He owns the products he handles, provides the shelves and stocks the display, and monitors the inventory for his customers. Joe is a:

Rack jobber

With respect to telemarketing, ____________ is (are) useful for cold-calling on prospects who may have unlisted numbers.

Random digit dialing

When Ford airs advertising that focuses on the functional characteristics of its cars, such as quality, reliability, gas mileage, warranties, and service they are employing ____________ in their ads.

Rational appeals

With respect to the appeals than can be employed in promotion, the type of appeal that emphasizes communicating information about concrete benefits, functions, or characteristics that are associated with the product are called ______ .

Rational appeals

With respect to assessing advertising effectiveness the number or percentage of consumers in a particular target audience exposed to a specific advertising message in a given period of time is called __________.

Reach

________ are essentially refunds that amount to price reductions for products already purchased.

Rebates

The likely consequences of firms choosing to engage in non-price competition include all of the following except __________.

Reduced ability to raise prices

The likely consequences of firms choosing to engage in non-price competition include all of the following except __________.

Reduced ability to raise prices.

Which of the following is not a benefit of business format franchises for the franchisors?

Reduced exposure to potential federal and state regulation.

Which of the following is not a response by supermarkets to improve their profit margins?

Reduced reliance on techology to cut costs

Which of the following is not a response by supermarkets to improve their profit margins?

Reduced reliance on vendor assistance to help manage inventory and restock shelves

The benefits of direct investment as a means of entering foreign markets include all of the following except:

Reduced risk of foreign governmental restrictions on operations

1) Matching

Reducing the number of transactions (more efficient), buyers and sellers are brought together to perform exchanges - intermediaries minimize transactions and the cost of distribution for producers and customers The supply chain function of bringing buyer and sellers together to complete an exchange

Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes stimulate added sales inducing the perception that consumers are getting a 'deal.' Alberston's is using:

Reference pricing

Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes to induce the perception that you are getting a 'deal' to stimulate added sales. Albertson's is using:

Reference pricing

America's largest ___________ is the Mall of America, located outside of Minneapolis. The mall contains over 800 stores, including 100 restaurants and nightclubs. The mall also hosts a theme park, hotels, miniature golf courses, and water slides.

Regional center

The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a fivescreen cinema, and is populated by more than 200 select retail department stores, specialty stores, and restaurants for its patrons to visit. The Galleria is a ____________.

Regional center

_____________ are major shopping centers, usually fully enclosed. These centers are anchored by several major department stores that are intermingled with a variety of specialty stores. Most of these well-branded specialty stores belong to corporate chains or ownership groups.

Regional centers

When firms employ a one-product, one-message marketing mix to tap all foreign markets and this program is basically the same as their domestic marketing program, they are employing as ________.

Straight extension strategy

John is considering the purchase of a new car. As he evaluates the brands in which he is most interested he is becoming increasingly concerned with the trade-offs between performance, style, quality, and comfort and price. He is also beginning to think about the other "costs" of acquiring the car such as what others will think of his choice. John apparantley is evaluating the ___________ of the alternatives being considered.

Relative values

John is considering the purchase of a new car. As he evaluates the brands in which he is most interested he is becoming increasingly concerned with the trade-offs between performance, style, quality, and comfort and price. He is also beginning to think about the other "costs" of acquiring the car such as what others will think of his choice. John apparently is evaluating the ___________ of the alternatives being considered.

Relative values

___________ employed to keep the brand in consumers' minds. Letting them know that the brand is available and continues to be a viable choice.

Reminder advertising

Willingness of consumers to postpone buying a particular product during periods of excess demand.

Responsiveness of quantity demanded to price changes

2) Contractual VMS - Legal Relationships 2a) (Wholesaler Sponsored) Voluntary Chain

Retailers agree by contract to buy from only one wholesaler who, in turn, agrees to provide each retailer with all its products and required services. Common in grocery and hardware industries: - Grocery Industry: • IGA Fleming Foods, SUPERVALU - Auto Parts and Hardware: • Western Auto • Sentry Hardware

b. Specialty stores

Retailers like The Gap, Victoria's Secret, Bath & Body Works, or Barnes & Noble Booksellers, Hardrock Café, Red Lobster, and On the Border are classified as ____________. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores

____________ includes all activities involved in selling goods and services to ultimate consumers for their own personal use.

Retailing

_______________ exist and operate as the last link in supply chains, primarily making sales to ultimate consumers.

Retailing intermediaries

Amazon.com sells products via the Internet predominantly to ultimate consumers for their own personal or household use. Amazon is a(n) __________.

Retailing intermediary

Tariffs imposed on foreign products that are intended to raise money for domestic governments are _______.

Revenue tariffs

Tariffs that impose tax rates per pound, per gallon, or other unit on imported products are called _______.

Revenue tariffs

For which of the following products is selective distribution most likely?

Revlon cosmetics

c. A broker

Ritchie Bass Construction specializes in demolishing buildings and, as a result, recycles much of the steel recovered from these buildings. Ritchie currently has about 300 tons of steel to sell and is looking for interested buyers. Ritchie probably should seek the services of a: a. A rack jobber b. A scrap jobber c. A broker d. A selling agent

In addition to regulating discriminatory pricing activities, the ___________ also limits firms' use of promotional allowances as they attempt to incentivize middlemen.

Robinson-Patman Act

Missionary sales personnel promote the firm's products to prospective customers and then encourage those prospects to place orders with the firm's normal field sales personnel. Missionary sales personnel are usually compensated via:

Salary-only plans (correct)

___________ are technical experts in industries where products must be tailored to the needs of specific customers.

Sales engineers

___________ are trained in engineering or the sciences. These sales people offer their technical expertise to advise clients on product specifications and functions, and assist with systems design and installation.

Sales engineers

___________ are technical experts in industries where products must be tailored to the needs of specific customers.

Sales engineers.

___________ supports and augments advertising and personal selling efforts. It consists of activities that provide short-term incentives aimed at inducing desired responses from customers.

Sales promotion

____________ is a paid form of communication that is temporarily used to stimulate purchases, as well as enhance salesperson and dealer effectiveness.

Sales promotion

_____________ includes the use of coupons, games, contests, free samples, rebates, frequent-flyer programs, in-store displays, in-store product demonstrations, free gifts, and travel vacations for salespeople.

Sales promotion

______________ is probably the best promotional tool for stimulating impulse purchases and brand switching for low involvement consumer convenience goods.

Sales promotion

______________ is probably the best promotional tool for stimulating new product trial and encouraging brand switching for consumer convenience goods.

Sales promotion

Normally employed to supplement the Firm's advertising and personal selling efforts, the range of short-term paid incentives that are used to stimulate purchase are _______.

Sales promotions

Normally employed to supplement the firm's advertising and personal selling efforts, the range of short-term paid incentives that are used to stimulate purchase are _______.

Sales promotions

The range of short-term paid incentives that are used to encourage the sale of specific products or brands are ____________.

Sales promotions

The purpose of __________ as a form of sales promotion is to introduce customers to new products and to stimulate trial.

Samples

c. Dual distribution

Samsung sells its smart phones via display centers located in Best Buy, through wireless carriers such as Verizon, and directly to buyers via its website. Samsung is employing ___ . a. Multi-channel marketing and distribution b. Direct distribution c. Dual distribution d. Retail distribution

e. Manufacturers agent

The AVC curve is typically 'u-shaped' because:

Scale economies initially drive unit variable costs down as sales volume increase. The experience curve tends to drive unit variable costs down as producers become more knowledgeable of how to make products. Unit variable costs tend to increase after some level of output due to 'diseconomies of scale' All of the above. (correct)

Smaller independent retailers face high failure rates. Which of the following is NOT among the possible actions can cut down on the odds of failure for these smaller retailers?

Seek to become part of an established network marketing system

____________ limits the sale of products to a smaller range of retail outlets. This form of distribution is most appropriate for shopping and some specialty products that are tailored to meet the needs of well-defined market segments.

Selective Distribution

Selective distribution

A _____ essentially substitutes for a manufacturer's marketing department by marketing the firm's entire output.

Selling agent

Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center. Each of the companies designs and produces computer components. Sophie has almost complete control of all marketing activites since the engineers who started the companies lack marketing experience and want to focus on what they do best --- inventing things. Sophie is paid a substantial commission on all sales. She is a:

Selling agent

The typical markup (expressed as a percent) is the:

Selling price minus the cost of the item, divided by the selling price--times 100.

Channel of Distribution

Sequence of organizations and individuals through which finished consumer goods move

________ are intended to either make one feel more attractive by using a product by attaching sensual or even erotic imagery to the product

Sex appeals

A prospective member is considering an LA Fitness membership. In her discussion with the sales rep the prospective member asks "what can you do to sweeten the deal?" The sales rep may respond by saying "I can waive the $100 initiation fee if you sign up now." The sales rep has used a(n) ___________.

Sharp angle close

Using the ____________ the buyer asks for a concession, such as free delivery or additional features as part of the sale.

Sharp angle close

Selling Agents

Similar to Manufacturers' Agents, except that they sell an entire product mix in all markets served An agent wholesaling middleman that has total responsibility and authority to sell a manufacturer's products. The selling agent essentially takes the place of the manufacturer's own marketing department - Have exclusive rights to manufacturers' products in all geographic areas - Function as an independent marketing department - Authority to make decisions in all areas of the marketing mix - Excellent alternatives for smaller, less well-financed firms that lack the assets or expertise to market their own products

Commission Merchants

Similar to brokers, but given certain powers brokers do not possess: • For example, they have the authority to set prices, establish terms of the sale, make the sale, and manage delivery of the product to buyers. Work on a commission basis: • Arrange for storage, inspection, and transportation to larger regional markets for goods to be sold Typically Represent Sellers of: - Agricultural Goods - Grain - Produce Livestock Agent wholesaling middlemen working primarily in agricultural markets that sell grain, produce, or livestock usually with the authority to set prices, establish terms of the sale, close sales, and manage delivery of the product to buyers

Tide laundry detergent commercials often show the average homemaker enjoying brighter, cleaner laundry as a result of using Tide's latest formula. The advertising appeal employed is _____________.

Slice of life appeals

___________ appeals show the product being used by the "typical consumer" in a normal setting.

Slice of life appeals

___________ appeals show the product being used by the "typical consumer" in a normal setting.

Slice of life appeals (correct)

A reduction from list price given to middlemen to get shelf space for a product is a:

Slotting allowance

One of the major difficulties of zone-delivered pricing is determining zone boundaries _____________ .

So as to avoid charges of illegal price discrimination

One of the major difficulties of zone-delivered pricing is determining zone boundaries _____________.

So as to avoid charges of illegal price discrimination

The firm's promotion mix consists of all of the following except _______ .

Social media

Which of the following is not a form of non-store retailing?

Social network selling

For which of the following products is a manufacturer most likely to use intensive distribution?

Soft drinks

For an advertising message about a product or brand to be "determinant" it must focus on or emphasize ____________.

Some point of difference (POD)

a. Selling agent

Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center. Each of the companies designs and produces computer components. Sophie has almost complete control of all marketing activities since the engineers who started the companies lack marketing experience and want to focus on what they do best - inventing things. Sophie is paid a substantial commission on all sales. She is a ___________. a. Selling agent b. Manufacturers agent c. Broker d. Specialty wholesaler e. Truck jobber

Merril Lynch, an investment firm, sorts investment opportunties based on "risk" and "return" from which its clients to choose. Merril-Lynch is peforming which channel function?

Sorting

Merrill Lynch, an investment firm, sorts investment opportunities based on "risk" and "return" from which its clients to choose. Merrill-Lynch is performing which channel function?

Sorting

When eggs are packaged into different sizes (medium, large, jumbo) and grades (A or AA) or lumber products, such as 2x4 studs, are graded according to number and severity of knots or splits, which channel function is being performed?

Sorting

When producers and channel intermediaries separate products into categories based on differences in "grade," or some other aspect of "quality," they are performing the ___________ channel function.

Sorting

The message _________ is the apparent originator of the message and can be a person, a company, or an inanimate figure, such as a cartoon character.

Source

Which of the following is not a major determinant of source credibility?

Source attractiveness

The perceived believability, expertise, and trustworthiness of the message source can be important for assuring acceptance of the message and is called __________ .

Source credibility

Family and friends typically score high on those factors that contribute to source credibility except:

Source expertise

A full-service wholesaler in Dallas takes title to the products it stocks and sells i.e. a complete line of home repair products for small, independently owned hardware stores. This wholesaler is a:

Specialty (limited line) wholesaler

Sales promotion include all of the following except ___________ .

Specialty advertising

Retailers like The Gap, Victoria's Secret, Bath & Body Works, or Barnes & Noble Booksellers, Hardrock Café, Red Lobster, and On The Border are classified as:

Specialty stores

____________ attempt to avoid price competition, prefering instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortemts of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff.

Specialty stores

_________ is a form of sales promotion in which sales personnel are incentivized to expend greater effort selling a specific product or brand.

Spiff

_________ is a form of sales promotion in which sales personnel are incentivized to expend greater effort selling a specific product or brand.

Spiff (correct)

Vending is a relatively expensive form of retailing due to costs associated with all of the following except ____________.

Spoilage of products not purchased before their expiration date.

An LA Fitness salesperson may offer to "waive your enrollment fee if you sign-up today." The sales person is using the ___________ .

Standing room only close

With the ____________ close the seller urges the prospect to buy immediately in order to receive, for example, a special price or free gift before some deadline passes.

Standing room only close

d. Drop shipper

Steve Johnson sells fiberglass resins and figerglass fabrics to many small sailboat manufacturers in Florida. He takes title to the products but does not handle them. Instead, the materials are shipped directly from the producer to the sailboat manufacturers. Steve is a _____________. a. Cash & carry wholesaler b. Manufacturers agent c. Specialty wholesaler d. Drop shipper e. Selling agent

Which of the following is not one of the purposes of advertising?

Stimulate immediate action in retail settings

The objectives of promotion during the growth stage of the PLC are primarily to:

Stimulate selective demand

The inventory numbers given to products stocked by retailers are called:

Stock Keeping Units

Which channel function creates time utility for consumers?

Storage

Domino's opened pizza stores throughout Asia during the 1990s using the same positioning strategy employed in domestic US markets. This strategy, however, did not resonate with Asian consumers. In their minds 30-minute delivery promises were not sufficient to offset the pizza's comparative mediocrity. The failure of Domino's in the Asian market illustrates the dangers of using a ____________ for penetrating global markets.

Straight extension strategy

Procter & Gamble (P&G) markets its Pringle's potato chips brand using the same product formulation in each international market. It is able to satisfy 80% of world demand through only six flavors and one package design. P&G is using a(n) ____________.

Straight extension strategy

Rolex has used the same simple positioning message of elegance, precision, and durability for decades in all its global markets. It is the world's 72nd most dominant brand. The Rolex global marketing strategy is a(n) ___________.

Straight extension strategy

South Africa's De Beers, the world's largest diamond producer, uses glossy high-image advertising with little copy in upscale publications to convey its prestige messages in all international markets served. The same message and associated marketing program are employed in all its markets. De Beers is using a(n) ______.

Straight extension strategy

The sequence of organizations and individuals through which finished consumers goods move is called:

The channel of distribution

Amanda is examining advertising, social media posts, and company websites, as well as talking to sales people to acquire information as she considers alternative DVD players for purchase. Which stage in the Hierarchy of Communications Objectives is illustrated in this example?

Structuring beliefs and attitudes

During the __________ stage of the Hierarchy of Communications Objectives, the key to differentiating the advertiser's brand from competitors is to emphasize determinant attributes in promotion communications.

Structuring beliefs and attitudes

China sold Chinese-manufactured glass for solar panels in Europe at prices well below local retail prices. China's dumping practice permitted its glass industry to increase its export market share by 500% during a three-year period. This practice probably was made possible by China's use of _______ for this industry.

Subsidies

Often domestic governments help fund the costs associated with producing and marketing certain products, such as gasoline, steel, and electronics to make them more price-competitive in foreign markets. These governments are using ____________.

Subsidies

When Chinese wireless providers received governmental funding that partially underwrote the high costs of development and production, they were able to lower their domestic retail prices, making them competitive with foreign providers. The Chinese government was employing __________.

Subsidies

____________ are slowly dying and probably will be phased out incrementally as consumer demand shifts in favor of the greater convenience of e-commerce and preferences for smaller, local retail facilities over big-box retailers.

Supercenters

additional services such as fast food restaurants, dry cleaning, banking, check cashing, automobile servicing, and optical centers.

Supercenters

Albertsons, Kroger's, Safeway, H.E.B., and A&P are nationally located corporate chains of ______________ .

Supermarkets

The channel of distribution for consumer products does not include which of the following?

Suppliers of component parts to the producer

The channel of distribution for consumer products does not include which of the following?

Suppliers of component parts to the producer.

_________ are groups of independent firms involved in the process of making products or services available for use or consumption by organizations or consumers.

Supply chains

_________ is a form of sales promotion in which consumers (usually) submit an entry that entitles them to take part in and potentially win one or more prizes.

Sweepstakes

The ____________ is the set of message recipients toward which advertising is directed and may be the market to which the Firm's products are targeted.

Target audience

The ____________ is the set of message recipients toward which advertising is directed and may be the market to which the firm's products are targeted.

Target audience

Taxes levied on foreign products that are imported into domestic markets are called ________.

Tariffs

Jenny Craig has used Marie Osmond as a celebrity spokesperson to endorse its program and products. This an example of _____________.

Testimonial advertising

Weight loss products often use _______________ showing real people endorsing a product because they have successfully used the product to lose weight.

Testimonial advertising

__________ attempt to use endorsers who appear likeable and believable to attest to the product's utility and value.

Testimonial advertising

__________ attempt to use real persons as endorsers who appear likeable and believable to attest to the product's utility and value.

Testimonial advertising

The main difference between agent middlemen and merchant wholesalers is:

That agent middlemen do not own the products they sell--while merchant wholesalers do.

a. Accumulating

The "making/creating bulk" channel function is formally called: a. Accumulating b. Allocating c. Sorting d. Assorting e. Negotiating

The sequence of organizations and individuals through which finished consumers goods move is called:

The Channel of Distribution

b. Corporate vertical marketing system

The Polo outlet at Grapevine Mills, a large factory outlet center, is an example of which channel structure? a. Administered vertical marketing system b. Corporate vertical marketing system c. Franchise system d. Retailer cooperative e. Voluntary chain

d. Voluntary chain

The VMS in which a large scale wholesaler brings together or sponsors a number of independent retailers is called a ____________. a. Retailer cooperative b. Producer cooperative c. Vertical wholesale system d. Voluntary chain e. Voluntary wholesale system

Which of the following is not a strength of advertising in magazines?

The ability to precisely target certain demographics and geographics. Hight quality reproduction of ads (high quality paper and print). Significant levels of "pass-along readership." Readers tend to be highly involved with magazine's content leading to higher levels of attention to and interest in ads related to the magazine's content. All of the above are strengths, none are weaknesses. (correct)

The number of sales persons needed to serve the firm's customers is determined by all of the following except ________.

The average size of the customer firm (correct)

When setting prices, the price floor is usually defined by ______ of producing and marketing the product.

The average total costs

When setting prices, the price floor is usually defined by ______ of producing and marketing the product.

The average total costs (correct)

When a seller offers a cash discount with terms of 3/10, n/60, this means:

The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entire amount is due in 60 days.

d. Suppliers of component parts to the producer

The channel of distribution for consumer products does not include which of the following? a. The producer b. Intermediaries, such as wholesalers and retailers c. Ultimate consumers of the distributed product d. Suppliers of component parts to the producer

With respect to the Communications Process, the promotional medium selected to transmit the message to the receiver is called ____________ .

The communications channel

A producer has a few territories where many big customers are concentrated, but most of its target customers are spread all over the country.

The company should use its own sales branches in the concentrated territories and agents, probabaly manufacturers' agents, in the others--assuming the concentrated territories are large enough to support sales branches.

e. The supply chain

The entire set of organizations that are involved in supplying component parts to producers, these producers, and the organizations involved in moving finished goods to consumers is _____________. a. Logistics management b. Materials management c. Physical distribution d. The channel of distribution e. The supply chain

The target audiences for a firm's public relations effort is least likely to include which of the following?

The firm's competitors

d. Who organizes them

The main difference between retailer cooperatives and voluntary chains is ______________. a. Their offensive vs. defensive postures b. The length of the distribution channel c. The types of promotion used d. Who organizes them e. Their pricing strategies

d. Brokers

The manager of the San Francisco Seafood Company knows the market for its Talapia is geographically quite large. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood can sell its Talapia only a few months each year, it does not need continuous market representation. The San Francisco Seafood and other Talapia producers should use: a. Selling agents b. Manufacturers' agents c. Drop shippers d. Brokers e. Commission merchants

In which of the following situations is a manufacturer's exclusive territory agreement with a dealer likelty to be declared illegal?

The manufacturer forbids the dealer from selling outside his territory

b. Producer > Wholesaler > Retailer > Consumer

The most common channel of distribution for consumer goods is ___ . a. Direct from producer to consumer b. Producer > Wholesaler > Retailer > Consumer c. Producer > Retailer > Consumer d. Producer > Agent > Retailer > Consumer

c. Physical distribution

The movement of finished goods from the manufacturer into the hands of final consumers is ___________. a. Logistics management b. Materials management c. Physical distribution d. Supply chain management

b. Materials management

The movement of parts and materials from their sources of supply into the manufacturing process is ____________. a. Logistics management b. Materials management c. Physical distribution d. Supply chain management

When consumers assign "value" to products and services they take into account which of the following?

The price of the product or service The benefits received from the product or service The emotional costs associated with obtaining the product or service The effort that must be expended in acquiring the product or service

a. Whether they are set-up by wholesalers or by retailers

The primary distinction between voluntary chains and retailer cooperatives is: a. Whether they are set-up by wholesalers or by retailers b. Voluntary chains tend to offer more benefits to members than do coops c. Retailer cooperatives tend to be more profitable than voluntary chains d. Voluntary chains are limited to hardware stores, while coops serve the grocery industry

b. The merchant wholesaler takes title, the agent does not.

The primary factor that distinguishes between a merchant wholesaler and an agent middleman is: a. The agent takes title, the merchant wholesaler does not. b. The merchant wholesaler takes title, the agent does not. c. The merchant wholesaler provides many more services than does the agent. d. Wholesalers account for a larger sales volume than do agents. e. None of the above.

Which of the following is least likely to cause problems when employing historical data to estimate demand curves?

The seller introduced several new products that were considered to be category extensions during the time in question.

Which of the following is least likely to cause problems when employing historical data to estimate demands curves?

The seller introduced several new products that were considered to be category extensions during the time in question.

Joe lives in Hawaii and is a frequent buyer of antiques on Internet auction sites. He is used to paying higher shipping costs than his brother who lives in Colorado and who also likes to buy antiques on the Internet. The price differential is most likely because:

The seller probably was using zone-delivered pricing.

a. Less than 5%

The supermarket form of retailing normally commands profit margins, on average, of: a. Less than 5% b. 5% - 10% c. 10% - 15% d. 15% - 20% e. More than 20%

d. Matching

The supply chain function in which buyers and sellers are brought together to perform exchanges is: a. Allocating b. Assorting c. Accumulating d. Matching e. Batching

For which of the following is a legitimate (legal) reason for a manufacturer to drop or "refuse to deal" with a supply chain member?

The supply chain member fails to meet sales objectives or fails to adequately service buyers of the producer's products

a. Dual distribution

The tendency for producers to employ multiple channels of distribution to reach the same target markets is called __________________. a. Dual distribution b. Multiple channel distribution c. Channel adaptation d. Channel proliferation e. None of the above

The primary factor that distinguishes between a merchant wholesaler and an agent is:

The wholesaler takes title; the agent does not.

A primary weakness of sales promotions is:

Their use may build customer loyalty to the deal, rather than to the brand

The major advantage to using the competitive parity of IMC budgeting is:

There are no real advantages.

A primary weakness of sales promotions is:

They are easily duplicated by competitors and may lead to sales promotion wars

Memorable advertising messages that are easy to recall and remember should possess which of the following characteristics?

They should be "believable" They should be distinctive in that they should stand out from similar messages offered by competitive brands They should be "determinant" in that some unique feature or benefit that is associated with the brand should be emphasized.

Factory outlet malls usually are located in outlying, rural areas in order to:

To avoid conflict with traditional retailers located in regional and power centers that may sell the same brands.

A retailer might expect a stocking allowance:

To offset the handling costs for a new product.

d. Drop shipper

In price determination, given a particular selling price, the break-even point is where:

Total costs of the product equals total sales revenue from the product.

With respect to advertising, a medium's "reach" multiplied by its "frequency" is used to determine______ .

Total impressions provided by the medium. (correct)

The __________ of 1988 provided more specific descriptions of the sort of practices that were prohibited under the Foreign Corrupt Practices Act.

Trade act

All of the following are considered to be economic factors affecting a firm's global marketing strategy except __________.

Trade barriers

_____ are reductions from the list price offered to middlemen in payment for marketing functions they will perform.

Trade or functional discounts

__________ involves the physical movement of finished goods, raw materials, and component parts between channel members.

Transportation

The use of coupons, free samples, displays, and other point-of-sale techniques assume that consumers are at which stage in the Hierarchy of Communications Objectives?

Trial and purchase

When marketers of automobiles offer to let consumers "take a car home" for an extended test drive and offer generous return policies, they are emphasizing objectives at which stage of the Hierarchy of Communications Objectives?

Trial and purchase

_____ carry a selected line of perishable products and deliver them by trucks to retail stores.

Truck jobbers

Avis in some of its early ads began by pointing out that Avis was not the largest car rental company and then essentially discounted the "deficiency" by stating "...we try harder.'' Avis was employing ___________ .

Two-sided messages

Promotional message pointing out both the positive features and negative deficiencies (and then refuting the negatives) are called ___________ .

Two-sided messages

__________ exist(s) when a supplier agrees to provide a product to a supply chain member only if that member will buy additional products from the supplier.

Tying agreements

When franchisors demand that their franchisees buy all products from the franchisor in order to assure the quality of franchise's products, they are employing ______________

Tying contracts

Which of the following is being used when a manufacturers engages in "full-line forcing."

Tying contracts

Off-Price Retailers

Typically sell brand-name merchandise that is priced very low A retail institution, often in the apparel industry, that has a narrow and deep product assortment, low prices, and few customer services. Off-price retailers specialize in selling seconds, production overruns, discontinued, outdated or out-of-season merchandise. Ex: Marshalls, Ross, TJ Maxx, etc.

Which method for estimating demand curves is least appropriate for the marketer of a new product.

Using historical ratios

Telemarketing

Using telephones to prospect for new customers, improve customer service, speed payment on past due accounts, and gather marketing-related data

1) Corporate VMS

VMS in which single organization owns multiple levels of the supply chain to enhance coordination and efficiency Total Ownership One member of the supply chain has vertically integrated, either forward or backward (or both) to own and control much of the supply chain. *Common ownership of two or more levels in a single channel *Maximizes control of quality, image, sales, processes, customer satisfaction EX: - Liz Claiborne, Kimberly Clark, Sherwin-Williams, Sears, Goodyear - Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturers of the products sold in the store.

Wendy's fast-food restaurant chain priced several of its more popular menu items at $.99 while raising the price of some of its upgraded meal deals. This pricing strategy is an example of _____ pricing because the chain is trying to improve the customer's perception of the ratio of benefits received to the product's price.

Value

_______ is the ratio between the utility you receive from a product and the price you give up in exchange for that product is its value.

Value

_______ is the ratio between the utility you receive from a product and the price you give up in exchange for that product.

Value

Last summer, to earn money for their college tuition, George and Tom operated a food kiosk at Clearwater Beach, Florida for 3 months. They sold soft drinks, chips, crackers, and candy bars. A month before they were planning to open, Larry found a location that rented for $500 a month and a small refrigerator unit which they rented for $60 per month. Alan found distributors for the food products as well as for the paper products that they would need. Alan also purchased a business license for $80 and bought 3-month's worth of liability insurance for $100. The cups, straws, napkins, and extra sales people needed to staff the stand are all examples of:

Variable costs

e. All of the above are advantages.

Which of the following is an advantage of vertical marketing systems? a. Improved cooperation between channel members b. Better service to ultimate consumers c. Reduced conflict in the channel d. Improved efficiencies and reduced costs e. All of the above are advantages.

Last summer, to earn money for their college tuition, George and Tom operated a foods kiosk at Clearwater Beach, Florida for 3 months. They sold soft drinks, chips, crackers, and candy bars. A month before they were planning to open, Larry found a location that rented for $500 a month and a small refrigerator unit which they rented for $60 per month. Alan found distributors for the food products as well as for the paper products that they would need. Alan also purchased a business license for $80 and bought 3-months' worth of liability insurance for $100. The cups, straws, napkins, and extra sales people needed to staff the stand are all examples of:

Variable costs

When production stops (i.e. no units produced), _________becomes zero.

Variable costs of production

When production stops (i.e. no units produced), _________becomes zero

Variable costs of production.

Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing?

Vending

d. Spoilage of products not purchased before their expiration date

Vending is a relatively expensive form of retailing due to costs associated with all of the following except ____________. a. Investment in equipment b. Upkeep on equipment c. Theft and vandalism of equipment d. Spoilage of products not purchased before their expiration date

_____________ is when a firm performs more than one set of activities in a marketing channel or supply chain.

Vertical integration

Estee Lauder Co.now sells most of its flagship products directly online. This choice, made around 2000, resulted in substantial __________ with the various high-end retailers.

Vertical supply chain conflict

____________ is most likely to arise when manufacturers attempt to bypass with wholesalers or retialers and sell direct to consumers.

Vertical supply chain conflict

The VMS in which a large scale wholesaler brings together or sponsors a number of independent retailers is called a:

Voluntary chain

c. Discount stores

Walmart, Kmart, Target, Big Lots, Dollar Tree, Dollar General, and Family Dollar are all classified as __________. a. Off price retailers b. Specialty stores c. Discount stores d. Category killers e. Department stores

a. Administered

Walmart, because of its sheer size and market position, is able to coordinate distribution activities through its market power. This is an example of the ______________ type of VMS. a. Administered b. Corporate c. Retailer Cooperative d. Voluntary chain e. Contractual

____________ engage in both wholesale- and retail-level selling. They attract smaller businesses who can purchase at wholesale prices. Consumers usually pay about 5% more for products than do business customers. Business and consumers generally pay a small annual membership fee.

Warehouse clubs

_____________ are large-scale, member-only, mass merchandisers that combine cash and carry wholesaling with discount retailing.

Warehouse clubs

d. Broker

When Jon Jones decided to sell 10 acres of land, he contacted Leona Anderson. She showed the land to a potential buyer who wanted to build a home on the site, explained the market conditions for land in the area, and helped negotiate the terms of the sale. She left the final decision about the sale up to Jon and the young couple. Smalley is most likely a __________. a. Selling agent b. Manufacturers agent c. Drop shipper d. Broker e. Commission merchant

c. Sorting

When producers and channel intermediaries separate products into categories based on differences in some aspect of "quality" they are performing the __________ channel function. a. Accumulating b. Allocating c. Sorting d. Assorting

d. Assorting

When the UNT Bookstore brings together the range of books, supplies, sundries, and gifts it believes customer want, it is engaged in ______________ . a. Accumulating b. Allocating c. Sorting d. Assorting

The major distinction between a retail and a wholesale transaction is:

Whether the product will be used by an organization or by a consumer.

Whether a given transaction is classified as a wholesale sale or as a retail sale essentially depends on:

Whether the product will be used by an organization or by a consumer.

The primary distinction between voluntary chains and retailer cooperatives is:

Whether they are set-up by wholesalers or by retailers

c. Storage

Which channel function creates time utility for consumers? a. Accumulating b. Allocating c. Storage d. Assorting e. Sorting

e. Franchisees are paid royalties to offset their initial investment in the franchise

Which of the following is NOT a benefit of business format franchises for franchisees? a. Risk of failure is reduced b. Economies of scale are obtained in purchasing and promotion c. Franchisees can better compete with larger corporate chains on a cost and price basis d. Franchisees have access to management expertise from the franchisor e. Franchisees are paid royalties to offset their initial investment in the franchise

d. Reduced exposure to potential federal and statue regulation

Which of the following is NOT a benefit of business format franchises for the franchisors? a. Risk is shared with franchisees b. Quicker to expand the franchise geographically to other market areas c. Less capital is needed by the franchisor for expansion d. Reduced exposure to potential federal and statue regulation

a. Reduced reliance on technology to cut costs

Which of the following is NOT a response by supermarkets to improve their profit margins? a. Reduced reliance on technology to cut costs b. Vendor assistance to help manage inventory and restock shelves c. Adding higher margin non-food product lines and services d. Adding private label brands e. Using promotional mechanisms to build store loyalty

d. Improved merchandising by expanding the merchandise mix

Which of the following is not among the actions that category killers such as Best Buy have taken to effectively compete with department stores and internet retailers, such as Amazon? a. Price matching on select merchandise b. Adding value-enhancing services c. Liberal return policies d. Improved merchandising by expanding the merchandise mix e. Enhanced customer relationship management

c. A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon

Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute its product? a. A well established, international company b. A large cereal manufacturer that has developed a gluten-free cereal line c. A well-established Southern firm that wants to expand its market area by making its products available for the first time in Washington state and Oregon d. An international sporting goods manufacturer that wants to add a line of snow toboggans. e. A company that wants to introduce product line extensions to its current market

The main difference between retailer cooperatives and voluntary chains is:

Who organizes them

Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operating supplies) from manufacturers and resells these products to other business users. When making sales to its customers, Grainger is engaged in _____________.

Wholesaleing

___________ include all activities involved in the marketing and distribution of goods and services from one business to other businesses.

Wholesaling

Wholesaling intermediary

d. Commission merchant

Wilson Farms, a Colorado-based grower, is harvesting its annual sugar beet crop. Wilson has contracted with Henry Taylor & Co. to take possession of the crop, and sell it at the produce market in Denver. Taylor & Co. is empowered to negotiate prices and arrange for any shipping, inspection, and storage that may be required. Taylor & Co. probably is a(n) ___ . a. Broker b. Manufacturers' agent c. Selling agent d. Commission merchant

The power of __________ communications is based on the fact that somebody whom the message recipient knows and likes becomes the credible, believable, and trustworthy face of the brand.

Word-of-Mouth

___________ communications entail informal person-to-person communication between a non-marketing communicator and a prospective customer about the ownership or characteristics of a product or brand.

Word-of-Mouth

c. Discount stores

______________ offer a wide assortment of product lines, each provided in shallow, but reasonable depth. Product lines are organized by departments, few services are provided, the retail setting is austere, and prices are set low to attract price-sensitive consumers a. Off price retailers b. Specialty stores c. Discount stores d. Category killers e. Department stores

c. Factory outlets

______________ usually limit sales to products produced by a single manufacturer. These stores are owned and operated by the manufacturer, and therefore, exemplify corporate vertical marketing systems. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores

a. Drop shippers

___________ are wholesaling middlemen that buy and sell bulky commodities, such as coal and building materials. These products are very expensive to handle and ship, relative to their unit value. These wholesaling middlemen never physically handle the products they buy from their suppliers. The products are shipped directly from the supplier to the middlemen's buyers. a. Drop shippers b. Agents c. Commission merchants d. Merchant wholesalers e. Retailer cooperatives

e. Department stores

____________ are owned and operated by corporate chains and carry a broad mix of product lines organized by "departments." Examples include JC Penney, Nordstrom's, Sears, Dillard's and Macy's. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores

a. Off-price retailers

____________ include stores such as Ross Dress for Less, Dress Barn, TJ Maxx, DSW Designer Shoes Warehouse, and Marshalls. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores

b. Non-store retailing

____________ occurs when products are sold from fixed retail facilities and consist of four basic types: direct selling, telemarketing, direct marketing, and vending. a. In-store retailing b. Non-store retailing c. Internet retailing d. Social network retailing e. Out-bound retailing

e. Department stores

____________ offer a full range of services including credit, delivery, generous return privileges, hair salons, travel services, automobile insurance, and (occasionally) restaurants. Sales personnel are expected to be helpful, courteous, and knowledgeable. Each department is inside the store and operates as an autonomous unit that is responsible for its own buying, merchandising, revenue, and profits. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores

a. Off-price retailers

____________ sell seconds, production overruns, discontinued, outdated or out-of-season brand name merchandise at prices that are often below those charged by other discount stores for comparable merchandise. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores

e. Convenience stores

_____________ carry carefully selected lines of high-turnover consumer food and nonfood products, along with various grades of fuel. The focus is to serve "Rushed" consumers who place more emphasis on time and place utility as they purchase and are willing to pay higher prices. a. Supercenters b. Supermarkets c. Discount stores d. Category killers e. Convenience stores

d. Category killers

_____________ offer substantial discounts and probably the best selection of brands for the types of products they merchandise. The retailing strategy is to attract customers through relatively lower-priced offerings and broader selections, thereby eliminating the competition. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores

d. Warehouse clubs

______________ are large-scale, member-only, mass merchandisers that combine cash and carry wholesaling with discount retailing. a. Supercenters b. Supermarkets c. Discount stores d. Warehouse clubs e. Convenience stores

a. Supercenters

______________ are slowly dying and probably will be phased out incrementally as consumer demand shifts in favor of the greater convenience of e-commerce and preferences for smaller, local retail facilities over big-box retailers a. Supercenters b. Specialty stores c. Discount stores d. Category killers e. Department stores

c. A truck jobber / distributer

______________ carry a select line of perishable products and deliver them by trucks to retail stores. a. Full-service wholesalers b. Rack jobbers c. Truck jobbers / Truck Distributors d. Commission merchants e. Drop shippers

a. Party plan selling

______________ has evolved to reduce some of the more egregious aspects of traditional door-to-door selling. With this form of selling, salespeople recruit prospects to host get-togethers at their homes or their places of work. a. Party plan selling b. Direct selling c. In-home selling d. Sponsored selling e. Group selling

a. Supercenters

_______________ are combination supermarkets and discount stores with additional services such as fast food restaurants, dry cleaning, banking, check cashing, automobile servicing and optical centers. a. Supercenters b. Specialty stores c. Discount stores d. Category killers e. Department stores

A manufacturer could try to defend itself against charges of price discrimination under the Robinson-Patman Act by claiming that:

any price differences were to "meet competition in good faith." the price differences did not injure competition. the price differences were justified on the basis of cost differences. the products were not of "like grade and quality."

Channel Captains

are generally large producers or retailers A large retailer, wholesaler, or manufacturer with sufficient power to influence the decisions of other members of a supply chain.

Factory Outlets

are owned and operated by the manufacturer, so they exemplify corporate vertical marketing systems - EX: Levi's outlet, Van Heusen Outlet, etc.

Retailers

are the final business within a supply chain which links manufacturers to consumers.

Manufacturers

are the producers of a finished product

b. Specialty stores

attempt to avoid price competition, preferring instead to differentiate themselves by precisely targeting customer segments with narrow and deep assortments of specialized product lines and by providing superior customer service and friendly, knowledgeable and even highly attractive sales staff. a. Off-price retailers b. Specialty stores c. Factory outlets d. Category killers e. Department stores

bait pricing

A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and provides marketing information to both parties.

broker

When Jon Jones decided to sell 10 acres of land, he contacted Leona Anderson. She showed the land to a potential buyer who wanted to build a home on the site, explained the market conditions for land in the area, and helped negotiate the terms of the sale. She left the final decision about the sale up to Titus and the young couple. Smalley is most likely a:

broker

Wholesalers

do not make or consume the product. They buy and store merchandise in large quantities from manufacturers and then resell the merchandise (usually in smaller quantities) to retailers, other wholesalers, manufacturers or other institutions.

__________ communication entails any positive or negative opinions or experiences by potential, current, or former customers about products, brands, or marketing organizations transmitted through digital media.

eWom

2) Contractual VMS

exist between supply chain members dictating how relationships between members should be conducted

Burroughs-Wellcome, when deciding whether or not to lower the price for AZT, considered several issues before deciding to hold the line on its current price. BW's decision illustrates a classic case of penetration pricing based on the assumption that demand for AZT was highly price elastic.

false

___________ are employed to scare people into buying or not buying and using certain products.

fear appeals

freight absorbtion

Supply Chain

is a set of firms that make and deliver a given set of goods and services to the ultimate consumer

leader pricing

Category Killers

mass merchandise discounters that specialize in selling products in limited categories A type of retail organization that has a narrow but very deep product assortment, low prices, and moderate customer services. The retail strategy is to "destroy" the competition in a specific product category - EX: Staples, Home Depot, Best Buy, Bed Bath & Beyond - have faced intense competition from internet sales during the last decade, leading to a number of bankruptcies and merges - In response they have adopted the following strategies: - Price Matching Guarantees - Adding Services difficult for Internet Providers to Match - Improving Relationship Management - Offering liberal Return policies

Physical Distribution

movement of finished goods from the manufacturer (production) into the hands of final consumers

Materials Management

movement of parts and materials from their sources of supply into the manufacturing process The management of the physical flow of parts, materials, and other factors of production into the manufacturing process.

When firms seek to differentitate their product offerings by emphasizing different promotion techniques they are said to be employing ___________ .

non-price competition

_________ is a measure of the utility that exists or is perceived to exist in a product.

price

__________ is the amount of money or other form of remuneration that is charged for products or services.

price

In the price setting process, __________ are considered to be the role that price is expected to play in the firm's marketing program.

price objectives

rack jobber

reach

Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes to stimulate added sales by inducing the perception that consumers are getting a 'deal.' Alberston's is using:

reference pricing

________ are intended to either make one feel more attractive by using a product by attaching sensual or even erotic imagery to the product

sex appeals

Supply Chain ("Us")

the entire set of organizations that are involved in supplying component parts to producers, these producers, and the organizations involved in moving finished goods to consumers

Assuming the law of demand holds true for a specific demand curve, high prices are not likely to be profitable for the seller because too few units will be sold to cover the firms total fixed costs.

true

The term "price competition" in a marketing context means that firms have opted to employ price aggressively as a major component of their marketing program.

true

Which method for estimating demand curves is least appropriate for the marketer of a new product.

using historical ratios

value

_______ is the ratio between the utility you receive from a product and the price you give up in exchange for that product.

value

variable costs

5) Assorting

• Bringing together the "assortment" of goods from which customers can select; primarily done by wholesalers and retailers The supply chain process making available to buyers the combinations and quantities of products they desire, creates variety - Creating Assortments: For example, providing an assortment of produce (that matches consumer wants and needs) to buyers.

Agent Wholesaling Middlemen

• DO NOT take title to goods, but may take possession • Provide limited services (e.g. credit/delivery, physical facilities to conduct business) • Expected to have "Expert" knowledge of products and markets An independent organization engaged primarily in wholesaling but does not take title to the products it sells. Acts as an independent sales force on behalf of other firms working strictly on a commission basis.

Franchisor Advantages

• Fast Expansion • Shared Risk • Less Capital

8) Communications

• Gathering and Disseminating information about products - Gathering Info about Markets: • Wholesalers, retailers collect information and pass back up the channel • Producers conduct marketing research, pass down channel to wholesalers, retailers - Disseminating Info about Products: • Advertising, promotion • All channel members get involved

Merchant Wholesalers

• Independently OWNED organizations that take title to goods they distribute. • Account for over 60% of all U.S. wholesale transactions. An independently owned organization that buys goods from producers and resells those goods primarily to other supply chain members. An independently owned organization that engages primarily in wholesaling

7) Transportation

• Physical movement of merchandise from points of production to points of consumption

Franchisee Advantages

• Risk Reduction • Managerial Expertise • Buying Power • Scale economies in promotion

4) Sorting

• Separating products in like 'grades' and 'quality-levels' desired by customers • Generally follows accumulating bulk EX: When eggs are sorted and packaged into different sizes (Medium, Large, Jumbo) and grades (A or AA)

6) Storage & Inventory Management

• Temporarily holding the product to create time and place utility until consumers are ready to buy them, Ex: seasonal products • Usually means 'warehousing'

Intermediary firms help channels or supply chains CRAM:

◦ Create more value by increasing efficiency ◦ facilitate more Routine execution of established processes ◦ simplify Assortments ◦ Minimize uncertainty within the channel or supply chain

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