Marketing Final

A distributor refers to A. an imprecise term for intermediaries who perform a variety of distribution functions, including selling, maintaining inventories, extending credit, and so on. B. an intermediary who sells only to manufacturers. C. an intermediary who takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. D. an intermediary who sells only to consumers. E. an intermediary who sells only to other intermediaries.

A

A supply chain refers to A. the various firms involved in performing the activities required to create and deliver a product or service to ultimate consumers or industrial users. B. an inventory management system where the supplier determines the product amount and assortment a retailer needs and automatically delivers the appropriate items. C. mathematical formulas and calculations used in determining product volume and demand in order to generate the greatest revenue at the lowest cost. D. activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost. E. a specialized intermediary in the distribution chain responsible for the coordination of all production schedules

A

Advertising that promotes a specific brand's features and benefits is referred to as __________ advertising. A. competitive B. institutional C. differentiation D. pioneering E. reminder

A

Calculate a firm's total revenue (TR) using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000. A. $10,000 B. $50,000 C. $110,000 D. $150,000 E. cannot be determined with the information provided

A

Cost-plus pricing refers to A. summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price. B. setting the price of a line of products at a number of different price points. C. adding a fixed percentage to the cost of all items in a specific product class. D. setting prices to achieve a profit that is a specified percentage of the sales volume. E. increasing the price slightly to protect against undue profit losses from unforeseen environmental forces

A

Product placement refers to A. the consumer promotion that involves the use of a brand-name product in a movie, television show, video, or a commercial for another product. B. the relative value of a product's physical location based on line-of-sight positioning on a retailer's shelf. C. the placed on retailers' shelves or in showrooms based on the slotting fee paid by the manufacturer. D. the use of a brand-name product in a movie, television show, or commercial without the manufacturer's knowledge or permission, and without compensation. E. a variable fee paid by producers of movies, television products, or commercials to a manufacturer for the rights to use a product as a prop in one of their creative scenes

A

Publicity refers to A. a nonpersonal, indirectly paid presentation of an organization, product, or service. B. a short-term inducement of value offered to arouse interest in buying a product or service. C. methods used to get a nonpersonal, directly paid presentation of a company or its products. D. a paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. E. a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.

A

The __________ includes advertising, personal selling, sales promotion, public relations, and direct marketing. A. promotional mix B. promotion channel C. communication message D. marketing matrix E. media mix

A

When marketing channel members are engaged in assorting, storing, sorting, and transporting products and services, they are performing __________ functions. A. logistical B. merchandising C. facilitating D. implementation E. transactional

A

A channel captain refers to A. a member of a distribution channel that takes control through hegemony (power is not assigned, but assumed). B. a channel member (producer, wholesaler, or retailer) who coordinates, directs, and supports other channel members. C. a channel team member known for his or her expertise in cutting through red tape. D. a person responsible for implementing a firm's a mission statement, linking all members of the marketing channel through a common goal. E. the person with greatest authority who represents his or her channel in the distribution chain.

B

A firm's profit equation demonstrates that profit equals __________. A. Total cost + Total revenue B. Total revenue - Total cost C. Marginal revenue - Marginal cost D. Price × Quantity E. Total revenue + Marginal cost

B

Adding a fixed percentage to the cost of all items in a specific product class is referred to as A. target profit pricing. B. standard markup pricing. C. target return-on-investment pricing. D. customary pricing. E. everyday low pricing

B

Advertising, sales promotion, and public relations are often said to use __________ because they are used with groups of prospective buyers. A. cooperative selling B. mass selling C. customized selling D. collection selling E. paid selling

B

Any intermediary with legal authority to act on behalf of the manufacturer is referred to as a(n) __________. A. dealer B. agent C. retailer D. wholesaler E. distributor

B

Direct marketing refers to A. individualized communications programs specifically designed with a single customer in mind because the item being sold is unique to that customer. B. a promotion alternative that uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet. C. communication between a seller and a prospective buyer that can include face-to-face, telephone, and interactive electronic communication. D. a sales strategy whereby the exchange takes place at the time of engagement, such as selling produce at a local farmer's market. E. a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services

B

Factors that determine consumers' willingness and ability to pay for products and services are referred to as A. supply factors. B. demand factors. C. affordability factors. D. elasticity factors. E. macro environmental factors

B

From a marketing viewpoint, __________ is the money or other considerations (including other products and services) exchanged for the ownership or use of a product or service. A. value B. price C. barter D. currency E. a tariff

B

Skimming pricing refers to A. setting the lowest initial price possible when introducing a new or innovative product in order to skim sales from competitors. B. setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product. C. setting a low initial price on a new product to appeal immediately to the mass market. D. the practice of replacing promotional allowances with higher manufacturer list prices. E. setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it

B

The purpose of pioneering institutional advertisements is to A. promote a specific brand's features and benefits. B. inform people what a company is, what it can do, and where it is located. C. state the position of a company on an issue. D. reinforce previous knowledge of a product. E. promote the advantages of one product class over another

B

The two-way flow of communication between a buyer and a seller, often in a face-to-face encounter, designed to influence a person's or group's purchase decision is referred to as A. sales promotion. B. personal selling. C. direct selling. D. advertising. E. public relations

B

Three common trade-oriented sales approaches are targeted uniquely to wholesalers, retailers, and distributers include: (1) allowances and discounts, (2) __________, and (3) training of distributor's salesforces. A. reminder advertising B. cooperative advertising C. pioneering advertising D. competitive advertising E. comparative advertising

B

Variable cost refers to A. the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. B. the sum of the expenses of the firm that change with the quantity of a product that is produced and sold. C. the total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and marginal cost. D. the average amount of money received for selling one unit of a product or simply the price of that unit. E. the change in total cost that results from producing and marketing one additional unit of a product

B

When a producer owns an intermediary at the next level down in the marketing channel, it is referred to as __________. A. horizontal integration B. forward integration C. parallel integration D. lateral integration E. backward integration

B

After a receiver responds to a message, the sender's interpretation of the response indicating whether the message was decoded and understood as intended during the communications process is referred to as __________. A. encoding B. receiver response C. feedback D. noise E. message

C

Any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor is referred to as __________. A. publicity B. sales promotion C. advertising D. personal selling E. direct marketing

C

Loss-leader pricing refers to A. a pricing method where the price the seller charges is below its customary price to attract customers. B. setting a low initial price and gradually but consistently increasing that price so as not to antagonize the consumer. C. deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well. D. a method of pricing based on a product's tradition, standardized channel of distribution, or other competitive factors. E. pricing a product between 8 and 10 percent lower than nationally branded competitive products

C

Messages on the interior and exterior of buses, subway cars, and taxis are referred to as A. transportation messages. B. public service announcements. C. transit advertising. D. public advertising. E. vehicle advertising

C

Pricing objectives refer to A. reconciling the prices charged by an organization to the values set forth in its business mission. B. taking specific steps to capitalize on an organization's internal strengths as they apply to price. C. specifying the role of price in an organization's marketing and strategic plans. D. taking specific steps to compensate for an organization's weaknesses as they apply to price. E. subjectively setting intrinsic values to all products and services offered by an organization

C

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as __________. A. integrated marketing systems B. horizontal marketing systems C. vertical marketing systems D. functional marketing systems E. cooperative marketing systems

C

Sales promotions where the consumer is offered the product free or at a greatly reduced price are referred to as A. deals. B. rebates. C. samples. D. premiums E. discounts

C

Showing ad copy to a panel of consumers and having them rate how they liked it, how much it drew their attention, and how attractive they thought it was, takes place during __________. A. focus groups B. portfolio tests C. jury tests D. theater tests E. performance tests

C

The process of conveying a message to others that requires six elements - a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding - is referred to as __________. A. exchange B. dialogue C. communication D. advertising E. feedback

C

The three approaches to setting advertising schedules are A. flexible, seasonal, and continuous. B. spontaneous, continuous, and intermittent. C. continuous, flighting, and pulse. D. daytime, primetime, and off-peak. E. sporadic, intermittent, and infrequent.

C

The three degrees of distribution density are A. intensive, extensive, and selective. B. extensive, concentrated, and selective. C. intensive, exclusive, and selective. D. extensive, pervasive, and concentrated. E. concentrated, exclusive, and intensive

C

With respect to advertising, CPM is defined as A. the cost of one medium relative to the costs of other media (e.g. direct mail versus television, radio, or outdoor), each of which are divided by the multiple of their respective reach and frequency. B. the reach multiplied by frequency divided by the cost of reaching 1,000 individuals or households. C. the cost of reaching 1,000 individuals or households with the advertising message in a given medium. D. the cost per minute of television or radio airtime. E. the number of consumers exposed to an advertising message, in thousands

C

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is referred to as __________. A. a strategic channel alliance B. multiple level selling C. parallel distribution D. dual distribution E. recursive distribution

D

Communication is the process of conveying a message to others and it requires six elements. These elements include: __________, a message, a channel of communication, a receiver, and the processes of encoding and decoding. A. a concept B. a brand C. a slogan D. a source E. an offer

D

Direct marketing channels refer to A. the distribution of products and services directly from the manufacturer's production site to end-users. B. the traditional chain of distribution from manufacturer to retailer to consumer. C. the use of agents who represent a single producer and are responsible for the entire marketing function of that producer. D. a method of distribution that allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson. E. a method of distribution that allows consumers to buy products through direct personal interaction with the manufacturer's representatives in order to provide more personalized service.

D

Enhancing a product or service to make it more appealing to buyers is __________ utility. A. time B. place C. possession D. form E. transactional

D

For a promotional campaign, the hierarchy of effects refers to the stages a prospective buyer goes through, which include: A. awareness, interest, evaluation, trial, and rejection. B. interest, adoption, and brand loyalty. C. cognitive, affective, and behavioral. D. awareness, interest, evaluation, trial, and adoption. E. see an ad, try the product, buy the product, and repeat purchase

D

In a marketing context, the acronym IMC refers to __________. A. interactive media convergence B. internal marketing communications C. integrated marketing collaboration D. integrated marketing communications E. international marketing communications

D

Pretests refer to A. tests conducted before an advertisement is placed in various media to determine which medium best reaches its intended target market. B. tests conducted among company personnel to determine which advertising campaign most closely matches the firm's goals and objectives. C. tests conducted with an advertisement for a product to prospective consumers under realistic purchase conditions to see if they will buy. D. tests conducted before an advertisement is placed to determine whether it communicates the intended message or to select between alternative versions of the advertisement. E. sample ad campaigns that are submitted by competing advertising agencies prior to receiving a formal contract for that account

D

Price fixing refers to A. an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. B. the practice of charging a very low price for a product with the intent of driving competitors out of business. C. the practice of charging different prices to different buyers for goods of like grade and quality. D. a conspiracy among firms to set prices for a product. E. a seller's requirement that the purchaser of one product also buy another product in the line

D

Publicity tools refer to A. methods of tying charitable contributions of a firm directly to the customer revenues produced through the promotion of one of its products. B. methods used to get a nonpersonal, directly paid presentation of a company or its products. C. short-term inducements of value offered to arouse interest in buying a product or service. D. methods of obtaining nonpersonal presentation of an organization, product, or service without direct cost. E. free space or time donated by the media.

D

Target pricing refers to A. a method of selecting specific prices wholesalers and retailers are willing to pay based upon the elasticity of each given item. B. a method of charging different prices to maximize revenue for a set amount of capacity at any given time. C. the practice of simultaneously increasing product and service benefits while maintaining or decreasing price. D. estimating the price that ultimate consumers would be willing to pay for a product, then working backward through markups taken by retailers and wholesalers to determine what price to charge wholesalers. E. a method of estimating the price that ultimate consumers would be willing to pay for a product, then determining how much wholesalers wish to charge its customers, deliberately adjusting the composition and features of the product to achieve the price to consumers

D

The __________ element of the marketing mix consists of communication tools, including advertising, personal selling, sales promotion, public relations, and direct marketing. A. product B. price C. place D. promotion E. advertising

D

The ratio of the firm's sales revenues or unit sales to those of the industry (competitors plus the firm itself) is referred to as A. target return on sales. B. industry profit. C. unit volume. D. market share. E. profit

D

When one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals, it is referred to as __________. A. distributor dissension B. marketing channel discord C. partnership divergence D. channel conflict E. channel dissonance

D

A channel of communication refers to A. the selection of either paid or non-paid forms of information dissemination. B. a similar understanding and knowledge that a sender and receiver apply to a message. C. an open-ended dialogue between the marketing department and the firm responsible for developing the IMC program. D. a social network-based forum that allows customers to communicate their likes, dislikes, suggestions, and concerns to an organization 24 hours a day, 365 days a year. E. the means (salesperson, advertising media, or public relations tools) of conveying a message to a receiver during the communication process.

E

A manufacturer using __________ is setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. A. skimming pricing B. penetration pricing C. price lining D. odd-even pricing E. prestige pricing

E

A retailer refers to A. an intermediary who sells only to other intermediaries. B. any intermediary between a manufacturer and industrial markets. C. an intermediary who sells to other distributors. D. an intermediary who takes possession of a product, alters it in some way, and then sells it to the ultimate consumer. E. an intermediary who sells to consumers

E

Another name for pioneering advertising is __________ advertising. A. differentiation B. persuasive C. prospecting D. awareness E. informational

E

Directing the promotional mix at ultimate consumers to encourage them to ask retailers for the product is referred to as a __________. A. push strategy B. intense strategy C. inertia strategy D. exclusivity strategy E. pull strategy

E

Frequency refers to A. the number of different advertisements, sales promotions, or publicity events in an IMC campaign for a product or service. B. the total number of times an advertisement is aired on television or radio. C. the average number of times a firm airs an advertisement. D. the number of times an advertisement can be shown before it begins to lose its effectiveness. E. the average number of times a person in the target audience is exposed to an advertisement.

E

The number of different people or households exposed to an advertisement is referred to as A. scope. B. share. C. CPM. D. rating. E. reach

E

The ratio of perceived benefits to price is referred to as A. the price-quality relationship. B. customer value pricing. C. value-added pricing. D. value analysis. E. value

E

The type of appeal used to suggest to the audience that the product will increase the attractiveness of the user is referred to as a(n) __________. A. authoritarian appeal B. coercive appeal C. family appeal D. fear appeal E. sex appeal

E

Yield management pricing refers to A. controlling the production of products based upon seasonal demand. B. deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well. C. charging the same prices during different times of the day or days of the week to reflect variations in supply for the service. D. offering significant price discounts to wholesalers who agree to purchase products in advance for a period of a year or more at a time. E. charging different prices to maximize revenue for a set amount of capacity at any given time

E