Marketing Chapters 17, 18, 19
The Highland Racquet Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for Highland?
$30
Markum Industries determines that for its air compressors the following results are achieved at a price of $250: total costs = $250,000; variable costs per unit = $100; fixed costs = $175,000. Given these figures, Markum would break even at ____ units.
1,167
You are an experienced and very successful sales rep for a major consumer products company. You are having lunch with a group of newly hired sales reps who just got their assigned sales territories. This is a very ambitious group of new hires, which is evidenced by the fact that they offered to buy you lunch if you would let them pick your brain about successful sales tactics. Which of the following personal selling success tips will you share with the new hires?
Be thorough in your preapproach by doing your homework on your prospects.
Which of the following statements is true about team selling?
It is appropriate for expensive, complex, high-tech business products.
Which of the following statements is not true about the follow-up step of the personal selling process?
Salespeople should only follow up with dissatisfied customers
If a firm currently produces 2,500 products per month and decides to produce 2,501, it will incur
a marginal cost
Suppose State Farm Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n)
advertising objective
When Anheuser-Busch ran an advertising campaign featuring the slogan, "Know when to say when," it was using
advocacy advertising
Rick is a sales representative for Lucent Technologies. He has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature he needs. Rick feels he is ready for the ____ step of the personal selling process.
approach
Trading products is the oldest form of exchange, and is commonly known as
barter
Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.
breakeven
Stacey's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Stacey's method of approach is known as
cold canvassing
Dan is responsible for developing the promotional campaign for Under Armour's new line of footwear for teens. He will be writing advertising campaign objectives that are aimed at making the target customers' attitudes more favorable toward Under Armour, which should be stated in ____ terms.
communication
Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as
comparative
If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ____ approach.
competition-matching
When Volvo's advertising campaign mentions the Volvo CX60 has the highest safety rating of any European sedan, it is using _______ advertising.
competitive
You are the head of sales training for a major financial services firm in New York City. You are conducting a sales training class for a group of new sales trainees. You are a strong believer in using a structured approach to personal selling.Based on this information, which of the following personal selling process steps are you going to tell the trainees to perform first?
develop a database of potential customers
For most firms in the United States, demand curves are
downward sloping
Cheyenne calls to see if her customer's new hardwood floors were installed correctly
during the follow-up step
Even though salespeople do not use the exact same sales methods, they do go through the same general selling process.
false
Following up involves listening to a customer's response after finishing the presentation and overcoming those objections.
false
It is never good to ask customers questions while giving the sales presentation, as the customer may raise objections that the salesperson cannot overcome.
false
Using referrals falls under the approach step in the personal selling process.
false
Disney decided to run its new commercials for all of its theme parks several times a day for three weeks and then not at all for two weeks. It will then run the commercials again for three more weeks. Disney is using a ____ schedule for its advertising.
flighting
The maker of Huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising
frequency
Todd is developing a print advertisement for Aflac. He knows that the ______ is a critical component of the copy because _____.
headline; it is often the only part of the advertisement that is read
If Pacific Power and Light increased its rates by 10% and experienced a 2% reduction in the demand for power, the demand would be
inelastic
The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as
institutional advertising
A major disadvantage of personal selling is that it
is very expensive per contact
Tony tells his wife, Camilla, that his last sales call of the day at DuPont was a disaster. He explains that he never really figured out what the purchasing agent was looking for. Camilla, a sales trainer for another firm, hands Tony a book on
listening skills
Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's
marginal revenue
If Colgate-Palmolive wants to maximize profit on its toothpaste, it should operate at the point where
marginal revenue equals marginal cost
A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n)
media plan
While anticipating objections and countering them before they are asked is a good idea, one negative consequence of doing so is that the salesperson may
mention objections the customer had not thought of
Price is considered to be the variable in the marketing mix that is
most flexible
The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing ____ for the campaign.
objectives
If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through a
press conference
Safe Auto advertises its automobile insurance as "minimum coverage for minimum budgets." Safe Auto is engaging in
price competition
Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage containers. Sales have been declining in the past nine months and her management team is pressuring her to compete based on price discounts. However, Isabella is aware of the dangers associated with engaging in price competition. She knows that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.
price war
Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is
prospecting
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the
quantity demanded goes down
Jenny is making a sales presentation to a retailer that may be willing to carry her line of soaps. During the presentation, she will handle any objections as they are made. This is because when she anticipated and countered potential objections in prior presentations, she found that she
raised objections that the prospect would not have had.
Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?" exemplifies the use of ____ advertising.
reinforcement
The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an established brand. The ad also mentions Crest's advantages and benefits. Crest's advertising would be classified as
reminder
When marginal cost is equal to marginal revenue, the firm should
stop producing additional units to maximize profits
The cost per thousand (CPM) indicator shows
the cost to expose 1,000 people to a one-page magazine advertisement.
Price is a key element in the marketing mix because it relates directly to
the generation of total revenue
If a product has an inelastic demand and the manufacturer raises its price,
total revenue will increase
"Mrs. Brucker, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Cliff Davis, a salesperson at Midtown Ford, was using a(n) ____ when he made this statement.
trial close
Personal selling is generally the most expensive element in the promotion mix
true
Carla is stopped by a researcher at a shopping mall and asked what was the last television commercial she remembers seeing. This is an example of a(n)
unaided recall test
Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should
use price symbolically
If Carnival Cruise Lines increased the price of its seven-day cruise package by 10% and, as a result, experienced a 20% decline in customer bookings, Carnival's demand would be
elastic
Abby is a marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating
at a loss
The owner of Big Bike Motorcycles is opening a new retail location. Which of the following is most likely to be a fixed cost for Big Bike Motorcycles?
building rent
An advertising platform should consist of issues that are important to consumers. Selling features should be important to consumers and should be features that
competitive products lack
Kohl's, a department store featuring clothing and housewares, communicates in news story form about its organization and its efforts to support local children's hospitals. This information is transmitted through mass media at no charge and is therefore called
publicity
During the duration of an advertising campaign, Verizon Wireless ran television advertisements at a steady rate throughout the week and intensified its message with newspaper advertising in many major newspapers in the Sunday paper. Verizon Wireless used a(n)____ media schedule.
pulsing
In the cold canvass technique, the salesperson calls on potential customers without their prior consent.
true
One of the best ways to overcome a prospect's objections is to anticipate them and to deal with them before the prospect has an opportunity to mention them.
true