Marketing 330 Final
the change in total revenue that results from selling one additional product unit.
Compared to marginal costs, marginal revenue is
the price they have to pay is more than they anticipated.
Consumers will be more price sensitive when
product mix breadth
Cotopaxi creates innovative outdoor products that not only inspires consumers to go on great adventures, but to look good while they're at it. It offers a variety of technical and lifestyle backpacks, including the Del Dia, the Luzon, the Inca, and the Tarak—each backpack line features a variety of styles, weights, and sizes. These different lines represent the company's
product
The intersection of social media and the ____ element of the marketing mix means that customers can now enjoy direct delivery via social and mobile technology.
are inexpensive, temporary, and moveable.
The key differences between purchasing a product from a vending machine versus from a kiosk is that kiosks
find qualified prospects.
The main goal of the first step in the personal-selling process is to
maintain or advance market positioning.
The main reason that firms seek to innovate their products is to
water transportation
This mode of transportation efficiently and cost-effectively ships traditional bulk commodities and consumer products from one international location to another.
selective
This type of distribution strategy allows brands to maintain strategic control over how their products are sold.
price bundling.
When Sony launched its new PS4 gaming system, the product was sold as a package that included the game console, game controllers, wireless headset, and one video game. This is an example of
push strategy.
When a company produces a good based on a sales forecast, stores them, and then waits until an order for the product is requested, this is known as a(n)
promote
When a company uses elegant packaging for its products, it's using that packaging to ________ its brand image.
marginal costs.
When a firm produces one additional unit of a product, this can result in a change in the total cost—a pricing concept known as
getting the message correct is an important part of the campaign's success or failure.
When creating advertisements, marketers need to understand that
new-to-the-market products
Which of the following makes up the smallest percentage of new products but carries the most potential (and risk) for the company introducing them?
Waymart Beverage located in Northeastern Pennsylvania sells various types of alcoholic and non-alcoholic beverages to local bars, pubs, restaurants, diners, and individuals.
Which of the following marketing channel descriptions illustrates a distributor?
The Independent Trading Company sells high-quality apparel from its own and other manufacturers to stores like Comfort Wear, which then resells to customers.
Which of the following marketing channel descriptions illustrates a wholesaler?
Each element exerts influence on different segments of the target market.
Which of the following reasons explains why a marketer would use different elements of the promotional mix to communicate product messages?
When accurately determining the costs of a product, it is important to understand that costs include the money, time, and effort expended to produce and market a product.
Which of the following statements about determining the costs of a product is true?
There are five distinct categories of buyers that exist in the digital retail environment and marketers must customize their campaigns for each one.
Which of the following statements about digital buying behavior is true?
They provide customers with high levels of interaction, service, and product knowledge.
Which of the following statements about sales representatives that practice direct selling is true?
Social media marketing utilizes electronic, two-way communication to share information, content and ideas.
Which of the following statements about social media and social media marketing is accurate?
Wholesalers purchase large quantities of product and sell off smaller quantities at a higher per-unit price.
Which of the following statements about wholesalers is accurate?
It offers an inconsistent variety and assortment of branded products from an array of suppliers.
Which of the following statements best characterizes an off-price retailer?
Retailers purchase and resell products to consumers for their personal or family use.
Which of the following statements best defines who retailers are in the supply chain?
a leasing agent buying coffee for prospective new tenants
Which of the following would be classified as a variable cost for a real estate leasing agency?
brochures
Which public relations tool is typically intended to inform and engage the public?
introduction
Which stage of the product life cycle is characterized by low or negative profits and companies may need to offer incentives to stores to convince them to carry the product?
Employees reflect the culture of a retail firm, and this in turn impacts the retailer's brand. If employees are unhappy or disgruntled, this will damage the brand.
Which statement is true about the pivotal role that employees play in ensuring a successful omnichannel retailing strategy?
closing the sale
Which step of the personal-selling process is often the most difficult because it requires the salesperson to overcome the fear of being rejected?
the presentation
Which step of the personal-selling process provides a forum for a salesperson to convey his or her organization's marketing message to a prospective customer?
employee sales promotions
Which type of promotion is based on incentives designed to increase sales for a product or brand?
False
While important, public relations is really only a necessary endeavor for corporate firms.
laggard
Wilbur does not like change. He thinks the cell phone he currently owns is just fine even though it doesn't have all the features of new phones on the market. Wilbur hopes that he doesn't lose this phone because the company doesn't make this style anymore and he doesn't want to get anything different. What type of adopter is Wilbur?
a different ad campaign.
You know when a product is revamped when it has all of the following features except
Test marketing
_____ involves introducing a new product in its final form to a geographically limited market to see how well the product sells and get reactions from potential users.
Coupons
________ have traditionally come in the form of printed vouchers but the expansion of mobile advertising has allowed companies to distribute these digitally.
Brand equity
________ is the value the firm derives from consumers' positive perception of its products.
promotion
"Chatter" reflects the intersection of social media and the _____ element of the marketing mix.
Step 3. Create Consistent Brand Messaging
"Eat Fresh" is featured consistently in all of Subway sandwich shop promotions and has helped to contribute to the brand's success. Which step of successful branding strategy does this example illustrate?
warehouse retailer
Because of the low prices offered at this type of retailer, customers can expect limited service. What type of retailer is this?
False
Closing a sale with a customer is the final step of the personal-selling process.
an advertising campaign.
A collection of coordinated advertisements that share a single theme is called
underpricing.
A common mistake that takes place during the price-choosing step of the price-setting process is when marketers choose to charge someone less than they are willing to pay—in other words, they engage in
positive increases in sales.
A result that can be used as a measure of success for a sales promotion is
employees that can reflect the culture of a retail firm.
A retailer that wants to ensure it maintains its brand across all retailing channels requires investment in
planned obsolescence.
A company that manufactures razors designs its products to function for about two years. The company gradually reduces the production of razor blades for the concerned product and develops an entirely new product to take over. The company prices the new product below the price of razor blades for the old product. The low supply and higher cost of razor blades for the old product compared to the new product forces consumers to buy the new product offered by the company. This scenario is an example of
intermodal transportation.
A company that ships products via ocean liner to a railway car, and then uses a truck to ship it to the retailer is using a transportation method known as
customer relationship management.
A company that tracks customers' shopping patterns and then sends them sales offers that complement their previous purchases is engaged in
customer relationship management.
A company uses a software program to capture and analyze consumer data to create and maintain customer profiles, including buying habits and purchasing patterns. It then uses this information to design individualized fulfillment strategies for its customers. The company is most likely engaged in
target market.
A company's choice of which social medium platform to use is driven by the
unbundling.
A computer manufacturer that used to sell its computer, monitor, and keyboard for one packaged price now sells each item separately. This is an example of
lifetime value (LTV)
A customer's ________ allows a company to predict whether that customer will generate the most profit over a long period of time.
price gouging.
A customer's need as opposed to a customer's choice is often what will drive a firm to engage in
push
A disadvantage of the ________ strategy is that it can cause a firm to produce more inventory than is necessary to meet the consumer demand.
brand mark; brand recognition
A family traveling in their car is looking for a place to eat off the highway. One of the children in the car sees a pair of Golden Arches of McDonald's in the distance and shouts that he wants to go there for a Happy Meal. The Golden Arches are a ________, which helps to increase ________.
penetration pricing
A firm may choose this pricing objective because it encourages a greater volume of purchases and therefore maximum revenue.
True
A firm that coordinates the use of advertising, sales promotion, personal selling, and public relations to deliver a clear and consistent message about its products is engaged in integrated marketing communications.
odd pricing
A key characteristic of this pricing tactic is that it takes advantage of a basic human processing error that causes people to see a specific price as much lower than its nearest round number.
way in which consumers interact with the message.
A main difference between social media and traditional media is the
price elasticity of demand.
A measure of price sensitivity that gives the percentage change in quantity demanded in response to a percentage change in price is known as
promotion
A new ice cream shop in town allows customers to create their own sundaes using various flavors of ice cream and toppings. The store owners have decided to have a contest for the most unique customer creation. They are asking customers to create a sundae, take a picture of their creation, and post it on their Facebook page as well as on Instagram so people can vote for their favorite. The winning creation will be featured on the shop's menu. This use of social media relates to which element of the marketing mix?
price elasticity.
A product's demand curve is directly related to a product's
customer equity.
A sales representative of Audi, an automobile manufacturer, diligently follows up with its customers to offer post-sales service that other companies do not offer. This action increases the firm's opportunity to improve the financial return on its investment in those customers. This method of judging CRM effectiveness is called
escalator clause.
A section in a contract that ensures that providers of goods and services do not encounter unreasonable financial hardship as a result of uncontrollable increases in the costs of or decreases in the availability of something required to deliver products to customers is referred to as a(n)
social media platform
A shoe retailer that sells sustainable footwear is developing an advertising campaign intended to target young consumers that spend most of their time online and care about reducing their carbon footprint. This retailer will most likely rely on which advertising tool to convey its message?
inelastic demand.
A situation in which a specific change in price causes only a small change in the amount purchased is referred to as
set of three or more companies directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer.
A supply chain refers to the
social media platform.
A website-based media channel that is used to facilitate communication and connection is referred to as a(n)
Brand loyal customers typically exhibit less price sensitivity.
According to your text, why are brand loyal customers an important contributor to a firm's long-term success and profitability?
customer focus.
After relocating for his job and moving into a larger apartment, Aslan needed to purchase several new pieces of furniture and other household items to fill the space. He made several large consecutive purchases on WayFair, an online furniture retailer. A WayFair sales representative, recognizing the flurr of activity on his account, categorized Aslan as a highly profitable customer and offered him executive account status. This type of CRM strategy is called
cookies
After typing "women's swimsuits" into her browser, ads for swimsuits began to show up in Carly's Facebook feed. This is a result of
brand extensions.
All of the following are categories of new products except
how customers intend to pay for the product.
All of the following are considerations marketers must keep in mind when determining which pricing tactic to use for determining a final price except
to attract new market segments.
All of the following are functions of packaging design except
segregated channel operations.
All of the following are necessary for omnichannel retailing success, except
product adoption
All of the following are specific drivers of product innovation except
ad revenue.
All of the following are tests that marketers can use to measure the effectiveness of an advertising campaign except
brand.
All of the following represent augmented product components except
it is trying to elicit an immediate response or action—in this case, a purchase.
An ad that reads, "This offer will only last for 24 hours! Buy now or miss out!" is considered a form of direct response advertising because
True
An advantage of paid advertising is that it helps marketers control how their message is encoded.
volume maximization.
An e-card company may offer access to a new line of animated e-cards at an artificially low price to encourage customers to try the service out before committing. This is an example of
repurchased toothpaste from Amazon.
An example of a digital buyer who is engaged in product-focused shopping is someone who
False
An example of an integrated supply chain is one company giving another company the authorization to carry out certain commercial activities while maintaining control over, among other things, the supply of products being sold.
touch point.
Any point at which a customer and the company come into contact is called a
It will draw attention to the firm's products, maximize interest, and potentially bring in new clients.
Arnon is the marketing manager for Presenting Woodworks, a firm that designs and manufacturers wood benches, frames, and display tables for museums and art galleries. Because the firm has such a niche market, and has largely relied on word-of-mouth advertising, Arnon decides to launch a social media marketing campaign. The first thing he does is post images of both finished products and works-in-progress on Instagram. Next, he tweets out related product descriptions on Twitter. What will this social media marketing campaign do for Presenting Woodworks?
location-based advertising.
As Judy approaches Target, a notification advertising the store's weekly specials appears on her smartphone. This is best described as
communication focused on promoting positive relations between a firm and its stakeholders.
As a promotional mix element, public relations refers to
cookies
This invisible influence allows marketers to know what consumers are searching for and where they are searching.
pull strategy
Bob's Custom Millwork is a business that provides custom cabinetry and furniture for both businesses and individual consumers. Bob does not make any of his products until he receives an order from the customer. What type of marketing strategy does this represent?
recognition, associations, perceived quality, and loyalty
Brand equity is based on which of the following four dimensions?
private label; national
Brands that are developed by a retailer and sold only by that specific retailer are known as ________ brands, unlike ________ brands, which are managed and owned by the manufacturer.
its supply chain.
Brenda and Tim went to Carl's Custom Dining to buy a new dining room set. At the store they configured the set to their specifications in terms of size, finish, and style. The store sent the order out via the Internet to the manufacturer. The manufacturer, in turn, secured the correct type of wood from its supplier to complete the dining room set. When finished, the manufacturer shipped the product to its local warehouse where Carl's Custom Dining arranged for delivery to its store by a local trucking company. For Carl's Custom Dining, this is an example of
value.
By leveraging the resources and skills of its various component firms, a supply chain provides the end customer with
adopt a broad approach, focusing on the needs of the entire market.
CRM technologies allow marketers to do all the following except
low-learning
Cape Cod Potato Chips just launched a new chip flavor. This is an example of a ________ product.
fad
Chia Pets, Rubik's Cubes, mood rings, and fidget spinners are all examples of ________ products.
Walter, an employee at American Eagle, sending an email to Abercrombie & Fitch about a job opportunity.
Direct marketing can be offline or digital. All of the following are examples of digital media, except
False
During the decline stage, the firm will likely put forth a lot of effort to change a good's appearance or functionality in order to generate interest for the product.
growth
During which stage of the product life cycle does a company have to promote the differences between its brand and that of the competition, and attempt to portray its competitive advantage?
Identify the target audience.
During which step in building an advertising campaign must marketers conduct research to determine to whom they should direct their advertising efforts?
the approach step
During which step of the personal-selling process does the salesperson establish a rapport that sets a foundation for the relationship and asks open-ended questions to learn more about the prospect and his or her needs and wants?
message encoding.
Each of the following is a basic element of the promotional mix except
sales promotion
Each week Costco offers samples of various products including snack foods, frozen entrees, and bottled beverages to customers in the hopes of increasing sales of that product item. Sampling is which element of the promotional mix?
decrease the cost of storing a firm's inventory.
Effective pricing strategies can help a firm
click path
Ephraim is watching a YouTube video about how to restore antique furniture. The creator of the video recommends a brand of milk paint and includes a link in the details. Ephraim goes to the website and starts browsing. He notices the website has a blog that talks about all the different ways to use milk paint. One post recommends using a special type of brush that will allow the paint to spread evenly on the surface. The word "brush" is hyperlinked. Ephraim interacts with it and he's taken to a retail site associated with the milk paint brand. This scenario depicts the use of a _____ as a metric for measuring social media marketing success.
business analysis
Estimating the cost of a product, identifying the price at which a product will be sold, and estimating the demand for a product all take place in which stage of the new-product development process?
captive salesperson.
Farouk was recently hired by Monet, an office supplies company, to sell its specific line of printer ink to different greeting card manufacturers. When he introduces himself, he specifically states that he is a sales associate for Monet Office Supplies. Farouk may best be described as
inventory management.
Firms must be careful to avoid a stockout, which is something firms track while performing the logistical function of
False.
Firms should communicate different messages to customers using different promotional mix elements to ensure success.
fashion product.
First introduced in 1935 and highly popular in the early 1980s, Sperry Top-Sider shoes are once again a hit with young adult consumers. These shoes are an example of a
innovation.
For product marketers, the creation of a new or significantly improved product offering is referred to as
new category entry.
Gen Ex Innovations Inc. is a leading multinational corporation that manufactures various consumer goods. It enters the video gaming industry by developing a new gaming console, Edge. Gen Ex hopes that Edge will help it compete better in the already-established gaming console market. In this scenario, Gen Ex has introduced a
promote its brand image.
Hanger Tea is a tea product that supplies tea bags in the shape of T-shirts on little hangers. These tea hangers literally hang off the rim of a cup or a mug. This form of unique packaging is a way for the tea company to
potential customers who click on its ad are only visiting the page they land on and then leaving the website.
If a company has a high bounce rate,
omnichannel retailing.
If a customer can shop from a retailer using their smartphone or desktop or by visiting a brick-and-mortar store, the store is engaging in
price skimming.
If a firm sets prices high for a period of time after a product launches, and then decreases it over time for the purpose of increasing profits on each unit sold, it is focusing on a pricing objective known as
prestige pricing
If luxury brands such as Versace clothing, Lexus automobiles, and Dom Perignon champagne wanted to promote an image of superior quality and exclusivity to customers, they would most likely use which pricing tactic?
Demand is inelastic and total revenue fell from November to December.
In November the appliance store priced its front-loading washing machines at $899.00 and sold 50 units. In December they reduced the price to $799.00 and sold 53 units. Which of the following statements is accurate regarding this situation?
reminder advertising.
In advance of the holiday season, companies like Harry & David Gourmet Gifts might send out emails to previous or existing customers to let them know that they should order their product favorites "now" to ensure that they arrive in time for the holidays. This form of advertising is known as
Identify the target audience.
In order to know who to direct their advertising to, marketers must first know who their consumers are. Marketers must demonstrate this knowledge during which step in building an advertising campaign?
core product, actual product, and augmented product
In order to know why customers purchase certain products, marketers need to understand which three product components?
objectives
In order to meet the goals of a social media campaign, certain activities, or ________, need to be set and completed.
True
In social media marketing, the conversation around the product or campaign is more important than the company's marketing message.
Holding off on marketing a new and vastly improved cancer drug until it recovered investments on the existing drug
In the context of new product development, which of the following actions by Farmel Inc., a pharmaceutical firm, is unethical?
crisis management.
In the early 2000s, the Mattel Company was faced with a major problem with some of its toys due to faulty magnets and high levels of lead-based paint. When the company realized it was facing a serious problem, it immediately involved federal agencies on product safety, recalled millions of toys from the shelves, and launched a massive campaign to inform consumers about the recall. In addition, the company set up a link on its webpage and posted updates regularly. Mattel's actions can be classified as
product development
In the new product development process, immediately after a firm conducts a business analysis, it may move on to create a prototype of the good, which takes place during which next stage of the process?
Determine profitability.
In the new product development process, what primary goal must a firm accomplish during Stage 5: Business Analysis?
product development
In this stage of the new product development process, a firm may conduct a concept test or create a prototype to determine whether the product can meet customer needs and generate a profit.
Retailers allow manufacturers to focus on product development and production.
In what way do retailers provide value to product manufacturers?
specialty retailer
In which of the following retailers would a customer be most likely to find the best sales assistance to help with their purchase?
It is a growing industry as companies look for unique ways of engaging customers.
Which of the following is true about non-store retailing?
suppliers and other vendors.
Infrastructure needs to be in place to ensure a fully integrated shopping experience. This involves having successful relationships with
conversion rate
Irina has moved into a studio apartment and is looking for a Murphy bed to save space. She browses various retail and social media sites. One ad on Google catches her eye: it is an ad for a style of Murphy bed that was recommended by HGTV. She clicks on the ad and sees that the price and style of the bed is exactly what she's been looking for. She proceeds to make a purchase. This scenario depicts the use of a _____ as a metric for measuring social media marketing success.
False
Jamal is the marketing manager for Trophy Farms. His use of marketing research, direct marketing, and public relations to communicate the value of Trophy Farms' products is a strategy that reflects the use of various promotional mix elements.
direct selling
Jenna is a sales representative for Tupperware. She will often go to people's homes to demonstrate effective and innovative ways to use its products. This form of non-store retailing is known as
kiosk.
John sells tourist souvenirs from a cart near where cruise passengers disembark. In the winter, he brings his cart to the airport and sells his goods there. John operates a
indirect marketing channel with two intermediaries
Just Clean is a body care brand that manufactures soaps, shaving creams, body sprays, lotions, and lip balms. It makes most of its sales online or from its booth at trade shows. At a recent trade show, the purchasing manager of a beauty supplies wholesaler approached the owner of Just Clean and offered to buy a bulk supply of soaps and body sprays. This purchasing manager would in turn sell these products to other small boutiques, and these boutiques would then sell to the customers. What type of marketing channel is being depicted in this scenario?
television home shopping
Kendra has just demonstrated how to use a new brand of food processor for interested buyers. After she completes her demonstration and explains the different add-on options, she encourages customers to order the product by dialing the number on the screen. If they call within the next hour, they can receive a 10 percent discount off their purchase. Kendra 'is involved in what type of non-store retailing?
portability and small format.
Kiosks can be readily relocated to areas of high foot traffic due to their
persuasive advertising.
Loft, a women's clothing retailer, emails customers about Black Friday sales in advance of Black Friday to give customers a sneak peek at what will be available to purchase at deeply discounted prices. For many years, Loft has been known to extend the Black Friday sales by a few days to bring in more customers. This kind of advertising is known as
purchasing activities such as volume discounts.
Logistics impacts the price element of the marketing mix through
sortation.
Lucy works in a distribution center for a vitamin and nutritional supplement company. Part of her job entails gathering all goods with similar characteristics in one area of the distribution center. From there, she can facilitate the proper inventory controls to ensure that no expired vitamins or supplements are shipped to stores for sale. Lucy's job involves product
transportation
Managing ________ is one of the most important logistics function for retailers and every other member of the supply chain because it is essential to keep customers satisfied.
sales promotion
Marketers of Kashi energy bars may sample their products at Whole Foods and Trader Joe's grocery stores. After completing this sampling effort, Kashi goes back to compare sales at each store of these stores against a day that when its marketers were not out sampling products. This scenario exemplifies the measurement of which element of the promotional mix?
penetration pricing
Marketers of food and service businesses will often use this new product pricing strategy as a way to encourage a greater volume of purchases.
frequency
Marketers use the ________ metric for a count of how often a consumer is exposed to a promotional message.
markup pricing
Marketers use this pricing tactic because it provides a good estimate of a potential profit for planning purposes.
emotional appeal
Marketers use this type of appeal when they want people to become more connected to the product and brand.
superior quality and exclusivity.
Marketers will price certain products using prestige pricing as a way to promote an image of
sentiment analysis
Marketers will rely on this type of analysis to gauge how consumers are responding to their content.
price bundling
Marketers will use this pricing tactic because it allows them to charge higher prices for the packaged products.
are intermediaries through which the flow of products travel.
Marketing channels within the supply chain are important because they
handling objections
Martha, a sales associate for Carlton Cards, is at a potential customer's office making her sales presentation. Which step of the personal selling process will Martha move to after her presentation concludes?
True
Multiple consumer segments might visit the same digital retail site for a variety of reasons.
What is new about this new product?
New product development can raise several ethical issues for a firm. One of those issues is when it attempts to launch a product that features only minor changes. In other words, this raises which question?
doing everything possible to avoid failure.
New product launches do not come without risks. However, there are many ways that firms can reduce these risks. These ways include all of the following except
maximize profit from dedicated users.
Not to be confused with volume maximization, profit maximization is designed to
"America Runs on Dunkin'"
Of the following list of products, which would be considered a product idea?
manufacturer; private-label
On the store shelf at Walgreens, there are two types of sunscreen. Coppertone Sport Spray, which is a ________ brand, and Walgreens Continuous Spray Sport, which is a ________ brand.
growth
Once a product passes through the introduction stage of its life cycle, the next stage it immediately enters is the ________ stage.
False
One drawback of social media is that it fails to reach more than just the people that may be interested in the product.
direct
One of the benefits of selling via a(n) ________ marketing channel is that it allows the seller to interact with consumers without going through an intermediary.
a one-stop shopping format.
One of the key differentiators between supercenters and supermarkets is that supercenters provide consumers with
to increase the convenience of the product.
Packaging serves four main functions. When it provides a customer with a container that can be reused, then the packaging is being used
pays to be a sponsored result of a customer's web search.
Paid search is online advertising in which a company
Pharmex should let the customer's opinion guide the idea generation and screening processes.
Pharmex is a company that develops, produces, and markets prescription drugs. Pharmex plans to develop a new drug for migraines. The proposed drug will reduce the severity of migraines with no discernible side effects. What must Pharmex do to reduce the risk of new product failure?
False
Product mix breadth refers to the number of products within each product line.
high-learning products.
Products that take longer for consumers to see the benefits of or that do not have a good infrastructure in place to support them are called
margin
Profit ________ is the amount a product sells for above the total cost of the product itself.
the result of the price charged to customers multiplied by the number of units sold.
Profits are simply revenue minus costs; but revenue is
each advertisement is surrounded by content that is unique for each consumer.
Regarding social media,
maturity
Reminder advertising is most common during which stage of the product life cycle?
product accumulation.
Saiyid is the facility manager of a large storage warehouse owned by a furniture supply company. Sayid is in charge of tracking all orders that come in, consolidating them, and then releasing them for delivery only after enough goods are ordered to fill each of the shipping vehicles. Saiyid is practicing
maturity
Sales are highest during the ________ stage.
outside salesperson
Salespeople that work the field by traveling to potential or existing customers with the intent to sell is characteristic of which type of salesperson?
unbundling
Scotts Fertilizer has a four-step program for lawn care. Each step features a different product. Scotts sells the fertilizer as a set containing one bag of each of the four-step products. If Scotts decided to sell each product individually rather than as a set, it would be an example of which pricing strategy?
distribution intensity
Select the term that refers to the number of outlets a marketer chooses to sell through.
reference price.
Since consumers have the tendency to compare prices on almost everything they buy, marketers should attempt to capitalize on this tendency when setting prices by determining the price consumers will consider fair and reasonable for a product. This is known as the
promotional mix.
Sophia is a marketing manager at PinVid Inc., a new DIY craft store, who plans to use advertising and sales promotions to communicate the value of a new How-To video series that the company just launched. Advertising and sales promotions reflect elements of the firm's
elastic
Southwest Airlines offered a summer sale in which it reduced its domestic flights by a small percentage. Because of this decrease in price, there was a significant increase in quantity demanded. This is an example of ________ demand.
developed and sold only by a specific retailer.
Store brands, unlike manufacturer brands, are typically
price gouging
Stores that overcharge on basic items such as bottled water are capitalizing on consumers' lack of choice during times of great need. This is characteristic of which type of pricing strategy?
introduction
Stretch Fit is an athletic sock manufactured by a footwear company that specializes in running shoes and cross-trainers. These soft, comfortable socks are made of a unique fabric that when worn, stretches to fit any size or shape foot. In addition, they contain moisture-wicking, beads that both massage the foot and help prevent odor. With its first-to-market promotional campaign, Stretch Fit managed to capture a large percentage of its target market. Based on this description, Stretch Fit is at which stage of its product life cycle?
employees
Success or failure of an omnichannel retailing strategy is totally dependent on the firm's ________. Therefore, it is necessary to keep them happy, satisfied, and well-trained.
maturity
Sun Tech Corp., a company that manufactures audio entertainment systems, develops the Xom-Bass audio system. Within a year, Xom-Bass sells over 475,000 units and sales begin to level off, since the market is now saturated, and competition is fierce. Xom-Bass reaches a stage in the product life cycle where Sun Tech's efforts are concentrated on profitability and maintaining Xom-Bass's market share. Based on this description, the Xom-Bass audio system is in the ________ stage of the product life cycle.
seasonal discounts.
Sunny Pines campground, located in the Midwest, promotes the months of September and October as its value camping months. During this time, it offers reduced rates on camper rentals and campgrounds. It does this, in part, because the weather is not as favorable for camping at this time. The pricing tactic Sunny Pines is using to encourage camping during these months is most likely
inventory management.
The Centers for Disease Control has noted that the mosquitos and deer ticks are going to be especially problematic this season and are advising people to stock up on bug repellant and citronella candles. This makes it especially important for all local stores and pharmacies to ensure effective
inelastic.
The Daily Gazette charges $1.00 for its newspaper and has 150,000 subscribers. The publishers decided to reduce the price of the paper to $0.75 in hopes of attracting new subscribers. However, the price reduction resulted in only 500 new subscribers. This represents demand that is
supply chain
The Kayaker is a new bistro that just opened along the river. It recently received a dozen new patio dining sets from a wholesaler that specializes in restaurant furnishings. The bistro's buyer worked with a sales agent to find pieces that would create a rustic look to complement the natural surroundings. Once the pieces for each dining set were selected, the sales agent entered the details into its ordering system and emailed the custom order to its manufacturer. Upon receipt, the manufacturer assembled the order and shipped it off to the local warehouse. There, the warehouse manager arranged to have the dining sets delivered straight to The Kayaker. Rather than use its normal shipping firm, it used a local short-haul trucking company. This scenario depicts the wholesaler's ________ in action.
informative advertising
The Marigold Company has just introduced a new gardening tool intended for beginner gardeners. The company wants to increase consumer awareness about this new product, so its marketers will engage in which type of advertising?
Create a consistent brand image.
The Sherpani brand is a product leader in lifestyle bags for women. The brand is inspired by modern alpine culture. The firm makes great effort to reflect this culture in its bags' modern, natural, and minimal design and in the natural, eco-friendly materials it uses to create its products. Which step of successful branding strategy does Sherpani exemplify?
accessibility; limited
The ________ of convenience retailers makes up for their ________ variety and assortment of merchandise.
conversion
The ________ rate is the percentage of users who take a desired action, like making a purchase.
pre-approach
The ________ step of the personal-selling process involves identifying key decision makers, reviewing account histories, identifying product needs, and preparing sales presentations.
follow-up
The ________ step of the personal-selling process is a critical step in creating customer satisfaction and building long-term relationships with customers.
False
The broad focus of customer relationship management allows companies to spend time and money prospecting for new customers rather than trying to obtain maximum profits from customers they already have.
seasonal discounts.
The concept of "best rates" during months when a good or service is not typically purchased is a characteristic of
sells products for one manufacturer.
The difference between a wholesaler and a distributor is that a distributor
a brand mark.
The distinctive white Target dog with a red bull's-eye around its left eye makes the Target brand easily recognizable among consumers, even if there is no Target store within the vicinity. The Target dog is an example of
it is the stage where a customer thinks about the product's value and whether to try it out.
The evaluation stage of the consumer adoption is unlike the other five stages in that
price
The fact that customers can now use their mobile devices to pay for a product reflects the intersection of social media and the _____ element of the marketing mix.
clearly define the pricing objectives.
The first step in the price setting process is to
provide consumers with a clear and consistent message about the firm's products.
The goal of an integrated marketing communications strategy is to coordinate the various promotion mix elements to
stimulate quicker and more frequent purchases of a product.
The goal of sales promotion is to
loyalty programs
This form of sales promotion is popular in the airline and hotel business.
selective
The maker of a perfume will only distribute its product to certain upscale nation-wide department stores. Its product cannot be found in other places that might stock perfume, like off-price retailers or drugstores. This is an example of ________ distribution.
integrated marketing communications.
The makers of Lay's potato chips recently introduced its Do Us a Flavor marketing campaign to allow customers to come up with a new potato chip variety. The company used various promotion mix elements to provide a consistent message about the campaign. Television advertisements with celebrities explained the contest and encouraged people to vote; customers were allowed to use Facebook to enter their ideas; advertisements were placed in numerous magazines; and customers created YouTube videos to showcase their ideas. This type of promotional strategy is referred to as
distributor.
The marketing channel that sells products for only a single manufacturer or for a set of noncompeting companies is called a(n)
promotion.
The marketing mix element where most of an organization's communications with the marketplace occurs is
customer.
The measure of the quantity of purchase dollars each customer spends on the company's products is referred to as share of
customer focus.
The measurement of how well a CRM program prioritizes customers based on each customer's profitability is referred to as
new.
The most common ethical issue in new-product development involves the Federal Trade Commission's definition of the term
False
The most common ethical issue in new-product development involves the Federal Trade Commission's definition of the term improved.
break-even analysis.
The point at which the costs of producing a product equal the revenue made from selling the product is calculated during a
planned obsolescence.
The practice in which companies frequently come out with new models of a product that make existing models obsolete is an ethical issue related to new-product development and is termed
diffusion
The process by which new products are likely to be adopted, the rate at which they will be adopted, and the process through which the products will spread into markets is referred to as
diffusion.
The process by which new products are likely to be adopted, the rate at which they will be adopted, and the process through which the products will spread into markets is referred to as
False
The promotion mix is all the activities that communicate the value of a product and persuade customers to buy it.
dumping
The protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is reffered to as
creating content
The social media marketing team for a new car is shooting pictures and videos for its campaign. In which stage of development is this social media marketing campaign?
True
The stage of the product life cycle in which marketing costs rise due to competition as each firm tries to find ways to gain market share is the maturity stage.
warehousing
The storage, movement, and production of materials and finished goods falls under which specific logistical function?
direct marketing.
The total number of activities a seller engages in to encourage the exchange of goods and services with the buyer is known as
True
The ultimate goal of CRM is to achieve customer satisfaction.
integrate related companies so they function as one organization.
The ultimate objective of supply chain management is to
True
The ultimate objective of supply chain management is to integrate related companies in order to facilitate coordinating activities across the supply chain in a manner that improves the entire chain's performance.
advertising.
The use of pretests and posttests are two tools used to measure the effectiveness of
laggards
These adopters can be a challenge for marketers because they are not easily motivated or persuaded to make a change.
nonpersonal advertising
This form of advertising uses media to transmit a message to a large number of individuals rather than marketing to consumers face-to-face.
It communicates class and sophistication.
Tiffany & Co. is a luxury jewelry brand. Its iconic Tiffany blue box, along with its suede pouch, have been used for more than 100 years. How does Tiffany's packaging help to promote the brand's image?
volume maximization.
To encourage customers to buy more, firms will offer their products and services at lower prices. This is a key characteristic of the pricing objective known as
convenience
To help a viewer feel positively toward a product or brand, advertisers might use all of the following except
share of customer.
To judge the effectiveness of its CRM strategy, Apple might use its CRM data to guide contacts that lead to service appointments, warranty extensions, and future purchases. As the quantity of the purchase dollars increase, the more effective the CRM strategy will likely be. This is known as
True
Traditional media relies on some form of programming or news to entice consumers to tune in at a specific time or to read specific content.
innovators
Two key defining characteristics of this group of adopters are that they tend to be younger and unafraid to take risks with new products.
resembles almost all other work environments where employees are "on a payroll."
Unlike a sales structure built around independent sales representatives, one built around captive salespeople
sell products for many companies on a contractual basis.
Unlike captive salespeople, independent salespeople
allows for location-based advertising.
Unlike straight social media marketing, mobile marketing
remain constant and do not vary based on the number of units produced or sold.
Unlike the variable costs of a business, fixed costs
paid stories.
Visible marketing influences on online purchasing behavior include paid display advertising, sponsorship, paid search, and
Choosing advertising tools.
Wanderlust Tours is a travel company that is planning its next advertising campaign. It is at the stage during which it must consider its target audience and choose a channel for best communicating with that audience. At which step is Wanderlust Tours in building its advertising campaign?
The content you see on social media is based on your media profile and prior usage.
What does it mean to say that social media is customizable?
Companies are now more likely to price match their competitors.
What effect has social media had on the way companies price their products?
to promote positive relations between a firm and its stakeholders
What is the aim of a public relations campaign?
setting a goal
What is the first step in a social media marketing campaign?
integrated marketing communications
What is the name of the promotional strategy that involves coordinating the various promotional mix elements to provide consumers with a clear and consistent message about a firm's products?
materials management
What is the term used for the inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process?
relationship-based
What sort of strategies must companies embrace for an integrated supply chain to work?
persuasive
What type of advertising attempts to increase demand for an existing product?
persuasive
What type of advertising is common during the growth stage of the product life cycle as firms compete directly and attempt to take market share from one another?
price skimming
When Apple released its first iPhone in 2007, it charged customers $599. Shortly thereafter, it reduced the price to $399 for the exact same device. Apple's decision to set a relatively high price for a period of time after the product launched and then decrease the price to a level that would be more sustainable over time reflects which pricing strategy?
They typically exhibit less sensitivity to price.
Which of the following is true of brand-loyal customers?
ease in navigation, quick load time, mobile friendliness, and superior customer service tools
When designing a website for a firm, developers must keep in mind how to use the design to promote exceptional customer experiences. Excellent website design comprises which of the following criteria?
transportation method.
When determining its distribution intensity, a marketer considers all of the following except the
reference prices.
When marketers care that a consumer's price sensitivity increases the higher a product's price is relative to expectations, they are acknowledging the consumer's
pricing objectives should be an extension of the firm's marketing objectives.
When setting pricing objectives, it is important for the firm to have a clear understanding of its marketing objectives because
search engine optimization.
When you type in "comfortable jeans," the website for Jazzy Jeans appears first in the list. This is an example of
brand recognition
Which component of brand equity represents the degree to which customers can identify the brand under a variety of circumstances?
lifetime value analysis
Which data analysis tool allows firms to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers?
Firms should not charge less for a product if consumers are willing to pay more for it.
Which of the following about underpricing is true?
Ava came home from school talking about the jelly bracelets that everyone was wearing.
Which of the following best describes the awareness stage of the consumer adoption process?
The customer pays for the jewelry purchased from a retailer, who pays the wholesaler, who pays the jewelry manufacturer.
Which of the following examples illustrates an upstream flow in the supply chain?
Overall benefits of the Apple iPhone include communication, information, and connection.
Which of the following exemplifies a characteristic of the Apple iPhone's core product component?
Bed, Bath, and Beyond sends Daisy a coupon for 20 percent off her next purchase via postal mail, however, Daisy does not receive the coupon because she recently moved and forgot to have her mail forwarded.
Which of the following exemplifies a customer touchpoint?
Contests can be expensive to administer.
Which of the following is a drawback of contests?
consumers feeling like they are being forced to see advertisements
Which of the following is a drawback of social media for advertisers?
Marketers using a coordinated message make it easy for customers to recognize their messages, regardless of medium.
Which of the following is a reason for using an integrated marketing communications strategy?
The manufacturer has not demonstrated a demand for its product.
Which of the following is a reason that a retailer might choose not to work with a manufacturer?
Jiffy Lube Oil Change
Which of the following is an example of a service retailer?
banner ad
Which of the following is an example of paid display advertising?
determining the target audience
Which of the following is essential to selecting the correct combination of social media platforms for a social media marketing campaign?
sales presentations
Which of the following is not a tool for public relations?
The new product is certain to be accepted by the market.
Which of the following is not an advantage of a product line extension?
A women's athletic wear maker is the sponsor of an all-female triathlon that raises money for breast cancer.
Which of the following is the best example of a firm's use of PR to facilitate positive associations with its brand?
In the absence of a promotional message, marketers can use ________ to promote a product and help it stand out among the vast array of product choices faced by consumers.
packaging
The primary differentiator among the three levels of distribution is
the number of outlets through which a product is sold.
Packaging serves four main functions. When it provides a customer with a container that can be reused, then the packaging is being used
to increase the convenience of the product.
