Marketing 2
Which of the following is a recent trend in wholesaling?
Less distinction between large retailers and large wholesalers
Which promotion budgeting method wrongly views sales as the cause of promotion rather than as the result?
Percentage-of-sales
Recently, superstores that are actually giant specialty stores, such as Petco and Home Depot, have seen tremendous growth. These types of superstores are called __________.
category killers
Using a push strategy, a firm directs its promotional efforts toward __________.
channel members
A cluster of between 15 and 50 retail stores that usually contains a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and (sometimes) a bank is a __________.
community shopping center
Honest Tea's mission statement is "Honest Tea seeks to create and promote great-tasting, organic beverages. We strive to grow our business with the same honesty and integrity we use to craft our products, with sustainability and great taste for all." Additionally, the company uses only natural ingredients and promotes and practices fair trade with its suppliers. All of these combined suggests that Honest Tea is involved in which of the following sustainable marketing principles?
sense-of-mission marketing
__________ involves focusing the entire marketing process toward turning customers into buyers as they approach the point of sale.
shopper marketing
Logos, stationery, brochures, signs, business cards, buildings, and uniforms are all types of __________.
corporate identity materials
Direct mail is well suited for which of the following?
Direct, one-to-one communications
Which of the following correctly identifies what direct and digital marketing offer sellers?
Inexpensive, efficient, and fast
In the 1990s, which distribution channel did Progressive add?
Online, direct channel
Prior to 1945, Progressive, like all insurance companies, used which of the following marketing channels?
Direct
Which form of marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships?
Direct and digital marketing
Which of the following is true regarding Progressive's advantage of adding a direct marketing channel in the 1980s?
Increased market share through streamlined marketing
As with many companies, NutriSystem's marketing strategy hopes to achieve a brand community. Which of the following would be an example of NutriSystem's brand community?
Its customer interaction through social media, blogs, and website content.
NutriSystem includes Facebook, Twitter, blogs, and Instagram in its marketing strategy. This indicates that NutriSystem is involved in which type of marketing?
Social media
Which of the following best describes the advertising media first used with Kmart's "Big Gas Savings" and "Shipped My Pants" commercials?
Social media
Which of the following is a challenge to marketers regarding their use of social media?
Social networks are largely user controlled.
First Flavor does not use online, mobile, or social media to engage customers, indicating that First Flavor is not engaged in which of the following?
Social selling
What is meant by the term "the Internet of Things" (IoT)?
That everyone and everything may soon be connected digitally
Which of the following statements is true regarding salespeople?
The best salespeople are the ones who work closely with customers for mutual gain.
Advertising objectives can be classified based on three primary purposes. What are the three purposes?
To inform, persuade, or remind
When First Flavor promotes its products to other organizations as a marketing tool, the company may wish to showcase its product to numerous potential customers at once. Which promotional tool would you recommend to First Flavor?
Trade shows
Which of the following would best describe the marketing objective of a company utilizing First Flavor samples?
Urging short-term customer buying
It is common to see product placementslong dash—embedding brands as props within other programming, such as TV shows or movies. Product placements are a form of __________.
branded entertainment
Regardless of the size of the budget, to succeed, advertising must engage consumers and __________.
communicate well
When a company directly or indirectly compares its brand with one or more other brands in an advertisement, they are using __________.
comparative advertising
What are the four elements of a compensation plan for salespeople?
A fixed amount, a variable amount, expenses, and fringe benefits
If Brady, the owner of Hammerpress, strategically discounts the price of all gift cards by 20% during the holidays and runs a campaign to encourage gift card purchases, he is implementing which type of pricing?
Promotional
First Flavor would best be described as assisting companies in which of the marketing mix elements?
Sales promotion
Which type of advertising is important for mature, established brands?
Reminder
What is the first decision advertisers need to make when developing an advertising program?
Setting advertising objectives
In complex selling situations, personal selling can be very effective because it is __________.
interpersonal
Consumers may receive an email, supposedly from their bank or credit card company, saying that their account's security has been compromised. The sender asks them to log on to a provided web address and confirm their account and other personal information and then steals this private information. This is a fraudulent practice called __________.
phishing
A marketing website should be easy to use and visually appealing. To be effective, these websites must also be __________.
useful
Which of the following best describes Burger King's pricing strategy regarding its chicken nuggets during McDonald's Monopoly promotion?
Competition-based pricing
The fastest growing form of marketing is __________.
direct and digital marketing
NutriSystem uses direct-mail marketing for its products geared toward men. Which of the following is not an advantage of direct-mail marketing?
It is less expensive than mass media.
Many consumers today rent DVDs from a vending machine called Redbox that can be found in retail stores and other locations. Redbox is which type of direct marketing tool?
Kiosk
The Kmart commercials depicted in the video utilized both advertising and entertainment. This is known as which of the following?
Madison & Vine
Which of the following statements about personal selling is correct?
Many customers are unable to distinguish the salesperson from the company.
Which execution style shows one or more "typical" people using the product in a normal setting?
Slice of life
What is the digital version of word-of-mouth marketing?
Viral marketing
Some companies still treat sales and marketing as separate functions. One effect this can have is to __________.
damage customer relationships
Advertising appeals should have three characteristics. These characteristics are __________.
to be meaningful, to be believable, and to be distinctive
A fast-food restaurant determines the cost of producing its chicken nuggets then adds a percentage to that cost to determine the price charged to consumers. This indicates that the restaurant is utilizing which of the following pricing strategies?
Cost-plus pricing
Within each retail establishment of Kmart, external vendors stock and maintain the magazine department of the stores, but do not actually take possession of the product. Which type of wholesaler best describes these vendors?
Limited-service wholesalers
In order to achieve depth of awareness of the OXO brand, which of the following media strategies does the company utilize?
Personal: social media
Buyers have increased their use of direct and digital marketing because they are __________.
easy, convenient, and private
Digital marketing can link brands to important moments in customer's lives. This aspect of digital marketing is called __________.
real-time marketing
Which of the following statements about advertising is correct?
In addition to businesses, advertising is used by many types of organizations.
Which type of advertising is heavily used for new product category introductions?
Informative
__________ consists of activities designed to engage and build good relations with the company's various publics.
Public relations
Retailers must decide on which three major product variables?
Product assortment, services mix, and store atmosphere
Some sellers require that dealers not handle competitor's products. This strategy is called __________.
exclusive dealing
One consumer promotion tool is __________, which are goods offered free or at a low cost as an incentive to buy a product.
premiums
In which type of competition do fast-food restaurants operate?
sMonopolistic competition
What are the four major functions of logistics?
Warehousing, inventory management, transportation, and logistics information management<b>
What is the focus of the selling process?
Getting new customers
Which factor sets the floor on setting a product's price?
Product costs
On a break-even chart, the break-even volume is located __________.
at the intersection of total revenue and total costs
The amount of money charged for a product is its __________.
price
The public relations function of __________ is used to build and maintain national or local community relationships.
public affairs
What are the four broad characteristics used to classify retail stores?
Service, product lines, price, and organization
Which of the following is least likely to be a competitor of Kmart?
Tiffany's
Retailing today requires __________, which means creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping.
omni-channel retailing
Which budget-setting method does OXO utilize?
Affordable
Which of the following statements is true regarding costs?
Average cost tends to decrease with accumulated production experience.
When Sam Farber started OXO and launched never-before-seen products that were targeted at people with dexterity problems, in which stage of buyer-readiness was his target market?
Awareness
Which of the following would represent a niche online social networking site?
Birdpost
Which of the following is a potential disadvantage to using blogs for marketing?
Blogs are a user-controlled medium.
Hammerpress utilizes different pricing strategies than other printing companies, which sell printers to the home-printing market at a low price point and then sell the continual ink cartridge purchases at a high price point. Which type of pricing strategy is this?
Captive product pricing
Which of the following statements regarding marketing channel design is correct?
Channel alternatives should be evaluated against economic, control, and adaptability criteria.
Which of the following statements is correct regarding the functions channel members perform?
Channel members create greater efficiencies than manufacturers could achieve on their own.
Which of the following statements regarding public policy and pricing is correct?
Companies can, under some circumstances, price items below cost.
In 2001, Apple opened its first Apple stores in the United States. These stores were owned and operated by Apple. This is an example of which type of vertical marketing system (VMS)?
Corporate
Procter & Gamble organizes its sales reps into teams, and each team is assigned to a major account (such as Safeway or Walmart). Which type of sales force structure is P&G using in this example?
Customer
__________ involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships.
Direct and digital marketing
Which of the following statements regarding international distribution channels is correct?
Due to logistics costs in China, the majority of companies can only access affluent areas of major cities.
According to the text, what can be the ultimate direct marketing medium, assuming it is used correctly?
Which of the following is an objective for business promotions?
Generating business leads
According to the text, what is the toughest public policy issue now confronting the direct marketing industry?
Invasion of privacy
A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions?
Lower margins and selling higher volume
Which type of market consists of many buyers and sellers trading over a range of prices rather than a single market price?
Monopolistic competition
Which of the following statements regarding catalog marketing is correct?
Printed catalogs can drive online and mobile sales.
Although Kmart received praise for creating one of the funniest commercials of its time, the company was also criticized for it, causing marketers to combat the negativity through press releases. Which of the following marketing mix elements is mostly aligned with the marketers' decision to issue press releases?
Public relations
In which type of market does no buyer or seller have much impact on setting the going market price?
Pure competition
Many manufacturers have to pay retailers to get shelf space. This is an example of which type of promotion?
Push money
__________ is the promotion mix tool that consists of short-term incentives to encourage the purchase or sale of a product or service.
Sales promotion
Once the company has set its structure, what is the next strategic decision it faces?
Sizing the sales force
According to the text, what is the fastest-growing sales trend today?
Social selling
A company holds a news conference to announce a new product launch. Which PR tool are they using in this example?
Special events
Which type of retailer carries narrow product lines with deep assortments within those lines?
Specialty stores
During a sales presentation, which of the following would best fit a relationship marketing approach?
Tell a value story.
How is price determined using cost-plus pricing?
The price is set by adding a standard mark-up to the cost of the product.
What isIn selecting a media vehicle, media planners need to determine the cost of the vehicle's reach. To measure this, they use a method known as __________. media impact?
The qualitative value of exposure to a message
Which method for setting the total promotion budget is the most difficult to use?
The objective-and-task method
What is the goal of integrated marketing communications?
To deliver clear, consistent, and compelling company and brand messages
In terms of location, most stores today cluster together. What is the primary reason for this?
To increase their customer pulling power
What is the purpose of the Robinson-Patman Act?
To prevent unfair price discrimination
Which of the following statements is correct regarding different types of markets?
Under oligopolistic competition each seller is alert and responsive to competitors' pricing strategies and marketing moves.
When would a competitor most likely react to a firm's price change?
When the number of firms involved is small
One reason there is a need for integrated marketing communications is that __________.
consumers don't distinguish between content sources the way marketers do.
Many marketers today create, inspire, and share brand messages and conversations with customers across a mix of communication channels. In this regard they view themselves as __________.
content marketing managers
Monster.com provides more of a transactional service to clients outside of the United States. Which of the following is most likely the reason it markets differently outside of the United States?
cultural differences
Basic price adjustments known as __________ are used to reward customers for certain responses.
discounts and allowances
Which of the following approaches did Monster.com use to enter the Chinese market?
joint venture
Assume a competitor has cut prices and a company determines they should respond. Effective actions that the company could initiate include __________.
launch a low-price fighter brand
Nonpersonal communication channels include __________.
major media, atmospheres, and events
Companies now use __________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate channel partners.
partner relationship management
Honest Tea puts its money back into the communities where it purchases its ingredients. This might indicate that Honest Tea is helping to combat which social issue of marketing?
poor service to disadvantaged consumers
Recently, Amazon.com has been accused of __________, which is the practice of selling products below cost to harm competitors.
predatory pricing
After the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________.
the responsibilities of channel members
A recent study showed that more than two-thirds of advertisers are planning video ad campaigns that stretch across multiple viewing platforms. This is called __________.
video convergence
One major objective of a market-penetration pricing strategy is to __________.
win a large market share
One form of influence that carries great weight, especially for products that are expensive, risky, or highly visible is __________.
word of mouth
Which of the following is the correct order of the six buyer-readiness stages?
Awareness, knowledge, liking, preference, conviction, and purchase
Which of the following is a cost-based pricing approach?
Break-even pricing
Cheese makers in Wisconsin sell their leftover brine to local city and county highway departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this represent?
By-product pricing
What are the three major factors identified in the text that are changing today's marketing communications landscape?
Consumers, marketing strategy, and digital technologies
Which type of message appeal does OXO utilize?
Rational
Price is the only part of the marketing mix that __________.
produces revenue
What is the first step in the media selection process?
Determining reach, frequency, impact, and engagement
Which public relations function is used to work with donors or members of nonprofit organizations to gain financial or volunteer support?
Development
During the 1980s, Progressive added which type of marketing channel?
Direct
Which element of the marketing communications mix does OXO most heavily utilize?
Direct marketing
What are the two main forms of online advertising?
Display ads and search-related ads
The key to Hammerpress's capability to meet its customers' needs and budget goals, while maintaining its profitability, lies in which of the following pricing tactics?
Dynamic pricing
Promotional pricing tactics include __________.
discounts, special-event pricing, and limited time offers
Which of the following is an example of horizontal channel conflict?
A Ford dealer complaining that another Ford dealer is advertising in their territory.
Which of the following tools can be used as both consumer and trade promotions?
Contests, premiums, and displays
Which wholesaler channel function helps reduce inventory holding costs?
Warehousing
One primary PR responsibility is to create content that __________.
draws consumers to a brand
Developing effective marketing communications starts with __________.
identifying the target audience
Which of the following statements regarding dynamic pricing is correct?
Dynamic pricing could cause consumer resentment and damage customer relationships.
Which of the following statements regarding advertising in the new marketing communications model is correct?
Advertisers are shifting toward digital media.
A company wishes to reach a large number of geographically dispersed buyers at a low cost per exposure. Which element of the promotional mix should the company use?
Advertising
Which promotional tool is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor?
Advertising
Which of the following best reflects the role of retailing in the distribution channel?
All the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use
What does the process of designing marketing channels start with?
Analyzing consumer needs
What is the first thing marketers must do when using value-based pricing?
Assess customer needs and value perceptions.
How do brokers and agents differ from merchant wholesalers?
Brokers and agents do not take title and perform a limited number of specialized functions.
__________ involves cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities.
Buzz marketing
Which of the following was likely not a reason NutriSystem decided to use direct and digital media?
Consumers spend less time and money online than ever before.
What are the two major elements of advertising strategy?
Creating messages and selecting media
Which of the following best describes the highest price that a customer is willing to pay for a fast-food chain's products?
Customer perception
Which of the following correctly identifies the three major pricing strategies used by marketers?
Customer valuedash-based pricing, cost-based pricing, and competition-based pricing
Which of the following statements about price is correct?
Customers have put increasing pricing pressures on many companies.
Which of the following statements is true regarding initiating price cuts?
Cutting prices in an industry with excess capacity may lead to price wars.
__________ occurs when retailers set an artificially high "regular price" and then advertise a "sale price" which is actually close to their everyday price.
Deceptive pricing
With regard to supply and demand, which of the following best represents the intentions of the fast-food company's slash on prices?
Demand will increase for its products.
Kmart would be classified best as which type of retailer?
Department store
What is the first decision made in sales force management?
Designing sales force strategy and structure
Delta Faucet partnered with Warrior Dash, which sponsored several 5k mud run races around the country over the summer. At each event, Delta built a huge custom shower station, complete with 184 Delta showerheads, where mud-soaked competitors could meet and wash off after the race. This is an example of which type of promotion?
Event marketing
Which of the following statements is true concerning new product pricing strategies?
For a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.
Which of the following is an objective for trade promotions?
Getting retailers to carry new items and more inventory
Which of the following statements regarding green retailing is correct?
Green retailing initiatives extend to helping consumers be more environmentally responsible.
Which of the following would NOT be a consideration for decision making in designing the full sales promotion program?
How to set it apart from other promotion mix elements
Which of the following is true regarding the pricedash-demand relationship?
If demand is elastic, sellers will consider lowering their price.
Which of the following statements regarding customer valuedash-based pricing is correct?
In using this strategy, companies often find it hard to measure the value customers attach to their product.
Which of the following best describes the value that was added when agents were added to Progressive's marketing channel?
Increased customer service
Which of the following statements about retailer marketing decisions is correct?
Many retailers identify three critical factors for retail success: location, location, and location.
Which of the following is a reason that producers use marketing channels and channel intermediaries?
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
Which of the following are the largest group of wholesalers, accounting for roughly 50 percent of all wholesaling?
Merchant wholesalers
Which of the following would be best suited for marketers to engage customers anywhere and at any time during the buying and relationship-building processes?
Mobile marketing
Which of the following best describes Kmart's execution style in its advertisements?
Mood
Which of the following statements regarding retailer pricing decisions is correct?
Most retailers seek either high markups on lower volume or low markups on higher volume.
Which of the following statements about setting an advertising budget is correct?
New products typically need relatively large advertising budgets to build awareness and to gain consumer trial.
It is likely that salespeople at First Flavor try to identify potential business customers to utilize the Peel-n-Taste product in their marketing campaigns. Which of the following best describes this step of personal selling process?
Prospecting
Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products __________.
selectively
Which of the following statements about major retail trends is true?
Online buying is growing at a much brisker pace than retail buying as a whole.
Which of the following correctly identifies forms of digital direct marketing?
Online marketing, social media marketing, and mobile marketing
At certain stages of the buying process, which element of the promotional mix is most effective in building up buyers' preferences, convictions, and actions?
Personal selling
Which promotional tool includes presentations, trade shows, and incentive programs?
Personal selling
By offering free shipping, which of the following retail marketing mix elements is Kmart not focusing on?
Product and services assortment
Hammerpress must decide how to price the standard run-rate items it sells, such as business cards, wedding invitations, and posters. Which type of pricing strategy is this?
Product line pricing
__________ identifies qualified potential customers and is the first step of the personal selling process.
Prospecting
One study found that the best salespersons have four traits in common: intrinsic motivation, a disciplined work style, the ability to close a sale, and the ability to build relationships with customers. Knowing this would be most useful at which stage of sales force management?
Recruiting and selecting salespeople
Which of the following statements regarding segmented pricing is correct?
Segmented pricing practices can cause consumer resentment.
What is target costing?
Setting a price and then setting costs that will ensure that the price is met
Which of the following statements regarding mobile marketing is correct?
Smartphones can be very useful in shopping situations.
Which of the following statements regarding initiating price increases is correct?
The company should consider ways to meet higher costs or demand without raising prices.
Which of the following statements regarding the changing communications landscape is correct?
The dominance of television, magazines, newspapers, and other traditional mass media is declining.
Which of the following statements regarding marketing logistics is correct?
The goal of marketing logistics should be to provide a targeted level of customer service at the least cost.
Which of the following statements about public relations is correct?
The lines between advertising and public relations are becoming more and more blurred.
Which of the following statements regarding marketing channel behavior and design is correct?
The success of individual channel members depends on the overall channel's success.
Which of the following best describes the type of buyer Kmart is trying to reach with its free shipping?
The omni-channel buyer
CVS pharmacy stores have recently stopped selling cigarettes. For cigarette manufacturers, this highlights the challenge of __________ channel members.
selecting
What is the intent of advertainment?
To make ads and brand content into something that people actually want to watch
Which of the following is a concern when using optional-product pricing?
Which products to include in the base price and which to offer as options
Which of the following statements regarding wholesaling is correct?
Wholesalers must make decisions regarding their marketing mix.
Annual reports, brochures, articles, and company newsletters all represent which type of PR tool?
Written materials
Monster.com takes the marketing approach of changing its strategy to better suit each separate target markets. Which of the following best describes the marketing strategy of Monster.com?
adapted global marketing
Walmart has a lot of power and exerts strong influence on the suppliers they buy from. This channel power is an example of a(n) __________ vertical marketing system (VMS).
administered
Kmart did not create the "Ship My Pants" and "Big Gas Savings" commercials. Instead, they hired a(n) __________ named Draftfcb.
advertising agency
One framework for designing an effective message is the AIDA model. In the AIDA model __________.
attention leads to interest, which hopefully leads to desire and then action
One new technology being adopted by retailers is __________. For example, when opted-in customers enter a store, a signal wakes up an app on their smartphone or tablet, which welcomes them and alerts them to location-specific rewards and personalized product recommendations within the store.
beacon technology
Many company websites are now designed to do more than just sell product. These websites, known as __________ websites, attempt to build closer customer relationships and generate engagement with and between the brand and its customers.
brand community
NutriSystem maintains a website that engages consumers and includes videos, blogs, activities, and other features that build closer customer relationships and generate engagement. This indicates that NutriSystem employs a(n) __________.
brand community website
Honest Tea organizes its marketing activities from the point of view of the consumer, indicating they market by which principle?
consumer-oriented marketing
In selecting a media vehicle, media planners need to determine the cost of the vehicle's reach. To measure this, they use a method known as __________.
cost per 1,000
To bring the message strategy to life in a distinctive and memorable way, advertisers develop what is known as the "big idea". This big idea becomes the __________.
creative concept
Honest Tea does not advertise its products on television, in magazines, or on billboards. As such, the company does not interrupt important television programs or litter pages of magazines, indicating that the company is not involved in which of the following criticisms of marketing?
cultural pollution
The concept of salesperson-owned loyalty means that __________.
customers become loyal to salespeople as well as the companies they represent
Two external factors which must be considered in pricing decisions are __________.
demand and the nature of the market
A(n) __________ shows the number of units the market will buy in a given time period at different prices.
demand curve
Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of __________.
disintermediation
Monster.com offers job boards for employers and potential employees around the world. The number of available jobs fluctuates as global income distribution fluctuates. Which of the following environmental forces best describes this situation?
economic
In the content of a message, marketers often use __________ appeals such as joy, love, humor, fear, and guilt.
emotional
In the communication process, putting thought into symbolic form is called __________.
encoding
Sales reports, call reports, and expense reports are all used in the process of __________ salespeople.
evaluating
L.L.Bean has turned its flagship store and campus in Freeport, Maine into a full-fledged outdoor adventure center. There, customers can hike, kayak, or go seal watching at nearby Cisco Bay. This is an example of __________.
experiential retailing
After the presentation and demonstration step in the sales process, a salesperson should next be prepared to __________.
handle objections
At Honest Tea, there are no salespeople who attempt to coerce consumers into buying their product. Instead they rely on word-of-mouth, which indicates the company is not involved in which of the following criticisms of marketing?
high pressured selling
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Because she does not know much about wine, she will likely use the price of the wines as a(n) __________.
indicator of quality
Cross-functional teamwork within the company, building logistics partnerships, and third party logistics are all important elements of __________.
integrated logistics management
Social media is ideal for starting and participating in customer conversations and listening to customer feedback. This is because social media is __________.
interactive
One drawback to viral marketing is that __________.
marketers cannot control where users pass along the message
One key function of channel members is __________, which involves shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.
matching
To avoid being intrusive and annoying, most legitimate email marketers practice __________, which means sending email pitches only to customers who "opt in."
permission based email marketing
A large ink jet printing company enters the letter press market and sells its printing services at a loss just to drive Hammerpress out of business. This is an example of _________.
predatory pricing
Monster.com's products and services strategy around the globe is best described as which of the following?
product adaptation
Whirlpool washers and dryers are offered in many different models. Whirlpool will use __________ pricing to determine the price steps between the different models.
product line
A soda pop company offers a discount to a grocer. In exchange, the grocer agrees to provide in-store advertising for the soda pop and additional sales-support. This is an example of __________.
promotional allowances
Specific promotional tools used in __________ include press releases, sponsorships, events, and web pages.
public relations
Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called __________.
retail convergence
Retailers need to differentiate and position their store and make decisions regarding their retail marketing mix. Before making those decisions, retailers must first __________.
segment and define their target market
When setting channel objectives, companies should state the objectives in terms of __________.
targeted levels of customer service
The length of a channel is determined by __________.
the number of intermediary levels
Internal factors that affect pricing include __________.
the company's overall marketing strategy, objectives, and marketing mix
One recent retailing trend resulting from economic conditions is __________.
tighter consumer spending
The company, suppliers, distributors, and customers who open double quote"partnerclose double quote" with one another to improve the performance of the entire system make up the __________.
value delivery network
Which factor sets the ceiling on setting a product's price?
Customer's value perceptions
__________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line.
Full-line forcing
What are the three main types of off-price retailers?
Independents, factory outlets, and warehouse clubs
Which of the following statements regarding a just-in-time logistics system is correct?
Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
A company has set a low price on a new product it introduced. They want to maximize their market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
Market-penetration pricing
Beyond the nature of the market, demand, and the economy, what other factors in a firm's external environment must a company consider when setting prices?
Resellers, the government, and social concerns
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound and super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
Gillette charges a fairly low price for their razors (relative to costs) and a high price for razor blades. They are using a strategy of __________ pricing.
captive-product
One form of __________ is when movie theaters charge one price for adults and a different price for senior citizens.
customer-segment pricing
The strategy of __________ means that the firm attempts to offer the right combination of quality and good service at a fair price.
good-value pricing
Retailers such as Macy's and JC Penney charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of __________.
high-low pricing
When Apple Computer Company introduced their iPhone, they priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a(n) __________ pricing strategy.
market-skimming
Many personal care companies combine toothpaste with a toothbrush at a reduced price. This is an example of __________ pricing.
product-bundle
Helping salespeople to open double quote"work smartclose double quote" by doing the right things in the right ways is the goal of __________, whereas getting them to work hard is the goal of __________.
supervision; motivation
When the only goal of personal selling is to close a sale, a company is using a(n) __________ approach.
transaction-oriented
Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and other in-park features. This is called __________.
two-part pricing
Luxury automobile manufacturers typically add quality, services, and other features to differentiate their offers and thus support their higher price. This is an example of __________.
value-added pricing
Using __________, the customer shares real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries.
vendor-managed inventory