marketing 4th test true or false
16. If a firm's demand curve is fairly elastic, a penetration pricing policy would be more suitable than a skimming pricing policy.
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A chemical company might use institutional ads to highlight its concern for the environment.
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A complete promotion blend may need to consider channel members (along the channel) as well as customers (at the end of the channel).
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A cooperative advertising program can help a producer achieve coordination and integration of ad messages in the channel of distribution
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A firm should not simply assume that its profits will grow if its sales grow
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A firm that adopts the integrated marketing communications concept tries to coordinate all of its promotion communications to a target customer to convey a consistent and complete message.
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A firm's total cost increases only when its variable cost increases
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A flexible-price policy is most often used where products are not standardized and where bargaining is common
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A good order getter tries to sell solutions to the customer's problems--not just physical products
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A low penetration price discourages competitors from entering the market.
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A marketing plan usually spells out the time schedule for a marketing strategy as well as the time-related details.
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A point-of-purchase sample given to consumers is a good example of sales promotion.
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A profit maximization pricing objective may lead to relatively low prices, especially if demand is very elastic
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A sales forecast is an estimate of how much an industry or firm hopes to sell to a market segment.
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A sales manager who wishes to supervise and control his salespeople's activities closely should pay them a straight salary instead of a straight commission.
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A sales-oriented pricing objective seeks some level of unit sales, dollar sales, or share of market--without referring to profit. A) True B) False
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A salesperson who completes routine sales made regularly to target customers is an order taker.
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A salesperson's main task might be order getting, order taking, or supporting, but sometimes one salesperson does
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A seasonal discount encourages buyers to stock products earlier than present demand requires
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A target return pricing objective seeks to obtain a specific level of profit--often stated as a percentage of sales or return on investment. A) True B) False
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Advertising can be useful in a marketing strategy for getting attention, holding interest, arousing desire, and obtaining action.
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Advertising is any paid form of nonpersonal presentation of ideas, goods or services by an identified sponsor. A) True B) False
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Agent middlemen--particularly manufacturers' agents and brokers--are often order getters.
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As output increases, a firm's average fixed cost probably will go down.
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Average fixed costs are lower when a large quantity is produced
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Basic list prices are the prices that final consumers or users are normally asked to pay.
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Comparative advertising makes specific brand comparisons using actual product names.
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Direct spoken communication between sellers and potential customers is personal selling.
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During the market maturity stage of the product life cycle, the basic promotion objective is persuading
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Early adopters are respected by their peers--and often are opinion leaders--so what they think about a product is especially important for reaching later adopter groups.
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Even though the cost per person may be higher and the number of persons reached may be smaller, specialized media is sometimes more effective than mass media.
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Firms in monopolistic competition may favor mass selling because they have differentiated their marketing mixes and have something to talk about.
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Firms with high markups and low turnover rates may earn lower profits than firms with low markups and high turnover rates. A) True B) False
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Flexible-price policies are most common in the channels and in direct sales to business customers because sales reps may need to make adjustments for market conditions. A)
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For communication to be effective, there must be a common frame of reference between the source and the receiv
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Good salespeople try to help customers buy by presenting both the advantages and disadvantages of a product--and showing how it will satisfy the customer's needs.
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In addition to mail, direct-response promotion may include telephone, print, e-mail, and the Internet.
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In total, advertising costs much less than personal selling and sales promotion.
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Integrated direct-response promotion has expanded beyond direct-mail advertising to include other media
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Items with lower markups may be more profitable--if the stockturn is higher.
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Leader pricing is typically used with well-known, widely used items which are not stocked heavily by consumers. A) True B) False
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Many middlemen seek advertising allowances from manufacturers to help them pay the cost of advertising the
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Market potential refers to how much a whole market segment will buy while sales forecast refers to how much one firm hopes to sell to that market segment.
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Mass selling is not as pinpointed as personal selling, but it can be a lower cost way to reach large numbers of potential customers at the same time
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Meeting competition and nonprice competition are both status-quo objectives.
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Most firms operate in monopolistic competition instead of pure competition.
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Most sales managers offer their salespeople a "combination plan" because this method of compensation provides a balance between incentive and security. A) True B) False
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Order getters are even more important for business products than for consumer products.
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Personal selling involves direct spoken communication between sellers and potential customers.
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Pricing objectives and policies should flow from company-level objectives.
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Product advertising tries to sell a specific product, while institutional advertising tries to develop goodwill or improve an organization's relations with various groups.
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Promotion is communicating information between seller and buyer to influence buyer attitudes and behavior
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Promotion to business customers emphasizes personal selling.
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Regarding sales force compensation, straight salary gives the most security for a salesperson, while straight commission gives the most incentive.
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Retail order getters are usually needed for unsought products, and are desirable for some shopping products. A) True B) False
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Sales promotion can be aimed at middlemen, at final consumers, or even at a firm's own employees.
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Salespeople often are responsible for representing the customer inside their own company as well as representing their company to the customer. A
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Some advertising media are "must buys" because they are obvious choices to reach the target audience.
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Status quo pricing objectives might focus on meeting competition, avoiding competition, or stabilizing prices
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Stocking allowances are given to a middleman to get shelf space for a product. A) True B) False
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The AIDA sequence can help a sales manager evaluate a possible sales presentation.
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The Federal Trade Commission can require firms to use "corrective advertising" or "affirmative disclosures," if it decides a particular advertisement is unfair or deceptive. A) True B) False
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The adoption curve concept suggests that some groups within a market tend to be leaders in accepting new ideas.
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The idea behind a pulling policy is that customer demand helps to pull the product through the channel.
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The informing objective in Promotion is simply a matter of educating the consumer about the firm's product. A) True B) False
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The message channel may be as important as the message itself in influencing the receiver.
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The term "3/10, net 30" means that a 3 percent discount off the face value of the invoice is allowed if the invoice is paid within 10 days, and that otherwise the full face value is due within 30 days. A) True B) False
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The three general promotion objectives of informing, persuading, and reminding are all concerned with providing more information.
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Turning a strategy into a profitable business usually requires money, people, and other resources, such as production capacity, as well as a marketing plan
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When a firm's advertising says "our motorcycles will outperform any other brand," it is using competitive advertising to develop selective demand.
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. When the target market is large and spread out, mass selling may be less expensive than personal selling.
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"Pushing" a product through a channel relies on very aggressive promotion to final consumers to try to get them to ask middlemen for the product.
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A good marketing strategy will work well throughout the different stages of the product life cycle.
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A marketing manager can choose from only two promotion methods--personal selling and mass selling. A
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A salesperson who aggressively seeks out possible buyers with a well-organized sales presentation designed to sell a product is a missionary sales rep.
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Aggressive spending on promotion can usually make up for other types of mistakes. A)
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In the traditional communication process, a receiver tries to deliver a message to a source through a message channel. A) True B) False
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Monopolistic competition may result in high costs--and therefore it does not do a good job of serving consumers the way they want to be served.
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Order takers should work on improving the whole relationship with the customer, not just on completing a single transaction
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Producers of business products generally spend a larger percent on advertising than do producers of consumer products
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Profit maximization objectives lead to high prices and monopolies--and are generally not in the public interest.
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The "consultative selling" sales presentation is fast and requires little skill.
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The AIDA model focuses on markets as a whole while the adoption curve model focuses on individuals. A) True B) False
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The basic idea behind integrated marketing communications is that it is critical for all of the different firms in a channel of distribution for a product to have an input in developing the advertising campaign for the product.
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The basic job of pioneering advertising is to persuade, not inform.
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The price most consumers expect to pay for a product is called the leader price.
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"Noise" in the traditional communication process is any distraction that reduces the effectiveness of the communication process. A) True B) False
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"Demand-backward pricing" involves a producer estimating an acceptable final consumer price and working backward to determine what the producer can charge in the channel.
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"Meeting competition" in "good faith" is allowed as a defense in price discrimination situations.
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