Marketing Module

As a member of the marketing team for a manufacturing company, you need to be familiar with methods that are available to your company to facilitate communication about and movement of your products and goods. Your company is facing some logistics and supply chain challenges and you have been asked to help find solutions for them. Choose the statement that does not accurately identify the best management approach to deal with each management challenge. a. Your company wants to improve and streamline transportation and warehousing functions, but does not yet possess the specialized knowledge and expertise needed to do that. It should consider outsourcing some of these functions to a specialist firm. b. The manufacturing company for which you work wants to consolidate the data from among all the firm's business units. RFID is the best approach. c. The manufacturing company for which you work wants to consolidate the data from among all the firm's business units. An Enterprise Resource Planning (ERP) system is the best approach. d. The business is growing so quickly that your company needs to reduce the human effort and error involved in tracking inventory and assets. Radio Frequency Identification (RFID) is the best approach.

b. The manufacturing company for which you work wants to consolidate the data from among all the firm's business units. RFID is the best approach.

Though some people may not automatically identify a service as a product, marketers know that products comprise services as well as goods; sometimes a product may be a combination of the two. You work for a database company and want to ensure that your product listings are accurate, so you refresh your memory by checking how other firms identify their products. Which of the following should be identified as pure goods? a. Gold Standard Gym has affordable rates for all. b. Abe has contracted a recycling company that collects his materials weekly. c. Quarets Photography will take pictures of Lyssa's wedding. d. A publishing company sells health-based curricula. e. Somaya just launched an online shoe company.

A publishing company sells health-based curricula; Somaya just launched an online shoe company.

Aiden is in charge of the supplies inventory at his manufacturing company. Which of the following items is not in Aiden's inventory? A. Garbage bags B. Smartphones C. Toner for the printer D. receipt paper E. USB devices

B. smartphones

direct channel

Carries goods directly from a producer to the business purchaser or ultimate user

unitizing

Combining as many packages as possible into each load that moves within or outside a facility

brand recognition

Consumer awareness and identification of a brand

horizontal conflict

Disagreements among channel members at the same level, such as two or more wholesalers or retailers

component parts and materials

Finished business products of one producer that become part of the final products of another producer.

convenience products

Goods and services consumers want to purchase frequently, immediately, and with minimal effort.

installations

Major capital investments in the B2B market.

containerization

Process of combining several unitized loads into a single, well-protected load for shipment.

message

a communication of information

public relations

a firm's communications and relationships with its various stakeholders, including customers, suppliers, stockholders, employees, the government, and the general public

direct selling

a marketing tactic in which a producer establishes direct sales contact with its product's final users

personal selling

a seller's promotional presentation conducted person-to-person with a buyer

advertising campaign

a series of related advertisements that use a single theme and appear in different media within a specified time period

sales agent

a third-party person or company who represents the producer to wholesalers and retailers

Radio Frequency Identification (RFID)

a tiny chip with identification information is placed on an item; that chip can then be read by a radio frequency scanner from a distance, making tracking easier

Goods-services continuum

a tool that marketers use to distinguish services from goods

You work for a food-processing plant that manufactures corn tortillas. You have been asked to review the activities of upstream management to determine if costs can be cut in that area. Which activities listed below will be your concern? a. Contacting the farming cooperative to negotiate the price of corn for your upcoming contract. b. Checking the feasibility of raising the price at which corn tortillas are sold to your business customers. c. Investigating the possibility of diversifying into producing not only corn tortillas but flour tortillas as well. d. Decreasing the cost resulting from returns due to improper handling and packaging of corn tortillas.

a. Contacting the farming cooperative to negotiate the price of corn for your upcoming contract.

You work for a small tech company that has recently introduced a new mobile application called "Streamline" into the market. The mobile application is aimed at helping individuals keep track of all their social media accounts in one place and streamlining the flow of information from one program to the next. For instance, if you update your Facebook page, your Twitter and Instagram accounts will also update. After identifying the target market and conducting market research, the marketing team decides that its first set of ad campaigns should be Web-based in order to draw appropriate audiences. When Alexa signs into her Facebook page, a banner pops up in the center of her browser advertising Streamline, the new mobile application. After clicking on the ad, Alexa learns that she can control all of her 11 social media accounts from one place. Which of the marketing communications steps is next? a. Feedback b. Encoding c. Decoding d. Channeling

a. Feedback

Integrated marketing communication (IMC) requires a big-picture view of promotional planning; a total strategy that includes all marketing messages. You work for a multinational beverage company headquartered in Singapore. You have been put in charge of developing comprehensive marketing communication packages and want to ensure that you maximize the benefits for your company. To reach this goal, you work with department heads around the world to ensure that marketing and communications objectives support the corporate mission and strategies, and keep all staff informed about new developments. You also work with external partners, including advertising and PR agencies, to achieve a cohesive message for your brand and products. Which of the following statements is most likely to be true about your IMC effort? a. IMC challenges the notion that your advertising, personal selling, direct marketing, and other components of the worldwide promotion mix must stand alone. b. Sending a unified positive message about your company is often not a priority. c. Developing multinational integrated marketing communication is likely to contribute to the duplication of communication efforts. d. Your target market will be identified after the company has established an IMC strategy.

a. IMC challenges the notion that your advertising, personal selling, direct marketing, and other components of the worldwide promotion mix must stand alone.

Marketers are concerned with distribution intensity, which is how many intermediaries will distribute the goods in a particular market. Select the description of the general categories of market coverage that is incorrect. a. In controlled distribution, the manufacturer is forced by law to sell its own products. b. In intensive distribution, items with wide appeal are distributed through as many channels as are available in a trade area. c. In exclusive distribution, a single wholesaler or retailer is granted the right to sell a product in a given area. d. In selective distribution, the manufacturer will often provide training and assistance to the limited number of dealers it chooses to distribute its product.

a. In controlled distribution, the manufacturer is forced by law to sell its own products.

According to the Ad Age article "PennWell acquires Oil & Gas Pipeline Conference" (March 21, 2013), "The pipeline and transportation sectors of the industry are experiencing phenomenal growth due to the resurgence of exploration and drilling in North America" (retrieved from http://adage.com/article/btob/pennwell-acquires-oil-gas-pipeline-conference/288678/). Pipelines rank third after railroads and motor carriers in ton-miles transported, but most people do not recognize pipelines as a major mode of transportation. Nevertheless, pipelines are the preferred method used for transporting crude oil, diesel fuel, kerosene, and gasoline in the United States. Why are pipelines an advantageous method of transport? a. Pipelines offer low maintenance and dependable transportation for a narrow but important range of products. b. Pipelines provide jobs for consumers because of the resurgence of exploration and drilling in North America. c. Pipelines have more locations than water carriers. d. Pipelines are versatile, carrying more ton-miles than any other mode of transport over more than 2 million miles of pipeline.

a. Pipelines offer low maintenance and dependable transportation for a narrow but important range of products.

Cassie is failing her "Marketing 101" course. She has to get at least a 97 percent on the next exam to ensure a passing grade this semester, but she is still confused about the difference between two key dimensions of brand personality: relevance and esteem. As her study partner, you want to help Cassie pass the exam. Select the description of this concept that you will urge Cassie to review. a. Relevance reflects the brand's pertinence to its target; esteem is a combination of quality perception and other opinions about the brand. b. Relevance refers to a brand's ability to stand out from competitors; esteem combines quality perception and knowledge about the brand. c. Relevance is based on knowledge about the brand; esteem is based on perceptions of uniqueness. d. Esteem reflects the brand's pertinence to its target; relevance is a combination of quality perception and other opinions about the brand.

a. Relevance reflects the brand's pertinence to its target; esteem is a combination of quality perception and other opinions about the brand

Organizations want to have a reputation for producing quality products with strong brand identities to give them an advantage in the marketplace. Brand equity, the added value of a brand name, has four dimensions. Choose the example that is not identified with the appropriate brand equity dimension. a. Ruben buys a Ferrari because he thinks it will set him apart from other drivers. This illustrates the dimension of esteem. b. Peyton buys his jeans from Gap because he likes their quality and because almost all his friends buy Gap jeans too. This illustrates the dimension of esteem. c. Marta buys a pair of Dr. Scholl's shoe inserts because she thinks they will help her feet while she is jogging. This illustrates the dimension of relevance. d. Gabriella buys her children Campbell's soup when they are sick because it comforts them and helps her feel she is helping by providing nutritious food. This illustrates the dimension of knowledge.

a. Ruben buys a Ferrari because he thinks it will set him apart from other drivers. This illustrates the dimension of esteem.

Ads based on fear, humor, or sex can be effective, but also face distinctive challenges. All of the following accurately describe these challenges except: a. Selective perception may be a problem for humorous ads. b. Sex-based ads are tricky when used in culturally diverse markets. c. People may tune out fear-based ads that seem implausible. d. Humor in an ad may distract consumers' attention from the brand.

a. Selective perception may be a problem for humorous ads.

You work for a local politician who has allegedly been linked to a local scandal. As the head of the politician's communications team, you are strategizing ways to address this issue, especially since it is an election year, and he or she wants to run for national office. You think that the best approach in addressing this problem is employing media marketing, but you still have to figure out which medium is best. You want to use a medium that is credible, flexible, and reaches wide audiences. You are not particularly concerned about cost because you believe that the expense is worth it. Which of the following media can best help you accomplish your goal? a. Television b. Radio c. Billboards d. Magazines e. Newspaper

a. Television

You have been asked to supervise a new intern, who inquires about the benefits of having combined goods and services businesses. Rather than explicitly tell him or her the answer, you explain to him or her how these types of businesses operate, so he or she can make an inference about the benefits. To illustrate the purpose of combined goods and services businesses, you tell your intern that sometimes, the combination of a primary good with additional services defines the complete product to the customer and better satisfies their needs. To further illustrate your point, you explain that local coffee shops offer coffee and breakfast as primary goods. However, they also provide free Wi-Fi to make customers more comfortable, encouraging longer stays and extra beverage or food purchases. Based on the information provided, what can your intern infer about the benefits of combined goods and services businesses? a. These businesses aim to better satisfy their customers by offering goods and services that complement each other. b. These businesses can make more strategic investments because they have combined goods and services. c. These businesses fail to assess markets and prices appropriately, and may decline in market competitiveness. d. These businesses experience an increase in revenue faster than single good or service businesses. e. These businesses can choose to sell either their goods or their services, depending on demand.

a. These businesses aim to better satisfy their customers by offering goods and services that complement each other.

You are preparing a seminar for your colleagues on the topic "How Marketers Protect Brand Equity." Which of the following pairs of terms and examples should you use when you explain the symbol that distinguishes a product? a. brand mark, Nike swoosh b. trade symbol, McDonalds golden arches c. trademark, McDonalds golden arches d. brand design, Nike swoosh

a. brand mark, Nike swoosh

Your company is studying new product opportunities in the business market. However, the firm has lost out in the past because of heavy price competition in the consumer market, so the CEO prefers to steer clear of the type of business product likeliest to face the same challenge. Which type of business product would you advise the CEO to avoid? a. supplies b. equipment c. component parts d. installations e. consulting services

a. supplies

promotional mix

advertising, personal selling, sales promotion, public relations, direct marketing, and public relations

The promotional mix must be tailored not only to a product's characteristics but also to its stage in the product lifecycle. Fill in the blanks with the terms from the drop-down list that would best complete each sentence. a. As a new product grows and matures, ______ gains in importance relative to other promotional tools. b. A product in early decline will typically experience reductions in _______. c. When newly introduced, a product can benefit from both personal selling and _____ types of promotion.

advertising; advertising and sales promotion; nonpersonal

comparative advertising

an approach that emphasizes advertising messages with direct or indirect comparisons to dominant brands in the industry

publicity

an aspect of public relations where marketers seek unpaid placement of news about the company or a product in mass media or on social media

Enterprise Resource Planning (ERP) system

an integrated software package that consolidates data from among the firm's units

marketing intermediary

an organization that operates between producers and consumers to help bring the product to market

You work for a marketing company that specializes in researching market shares and profits related to miscellaneous consumer products. To ensure that the data you have collected are accurate, you categorize the consumer products of interest according to the customers' buying behavior: convenience, shopping, and specialty purchases. Choose the product that would be best described as a shopping purchase. a. A pack of breath mints b. A house c. A bag of pet food d. A liposuction procedure

b. A house

You work for a weight loss company that is advertising a new weight loss smoothie. Here is a transcript of the first commercial to be aired on a local food network channel: "Do you have ten or more pounds of excess weight to shed? If so, you should be drinking Blast Berry before every meal! Blast Berry is a weight-loss supplement, and the first of its kind to be approved by the Food and Drug Administration. In a random controlled study, 75 percent of the research participants who used Blast Berry along with exercise dropped an average of 23 pounds within two months of following the program. Blast Berry costs $19.99 for a month's supply and works for those who stick to the plan. Drink one serving before each of the three major meals of the day, and see the weight come off!" Which of the following basic tasks of effective messaging does this message fail to accomplish? a. Gaining the receiver's attention b. Communicating competitive advantage and positioning c. Achieving understanding by both the receiver and sender d. Stimulating the receiver's needs and suggesting an appropriate way to satisfy those needs

b. Communicating competitive advantage and positioning

You are in charge of ensuring that all labels used on your food company's packages are in compliance with the law. To remind employees of this responsibility, you distribute a checklist of label requirements. Which of the following does not appear on your checklist? a. Utilize a standard format for nutritional information. b. Disclose the company's website URL. c. Provide the amounts of calcium and vitamins. d. Disclose major food allergens.

b. Disclose the company's website URL.

You have recently been hired to work in the marketing department of a company that manufactures and distributes baby food. During orientation, you are told that baby food is a convenience product because it is a good that families want to purchase frequently, immediately, and with minimal effort. This summary makes sense to you because you have a younger brother, and you recall that whether baby food was on sale or not, your parents bought it because they needed to feed your brother. You also remember that because convenience products are typically cheap, retailers must sell large volumes in order to make a profit. Based on the information provided in the scenario above, which of the following would you be least likely to emphasize in the marketing mix for your company's baby food products? a. Using many sales outlets b. Hiring a personal selling staff c. Running ads d. Keeping price low

b. Hiring a personal selling staff

You are one member of the marketing team for a wine distributor who sells exclusively through your own chain of high-volume shops. Your team wants to explore other available marketing channels, including sales over the Internet and product placement in specialty retailers. In order to come to a consensus, you want to outline some basic questions regarding distribution channels and present them to the team for discussion. The discussion should include all of the following questions except which one? a. What restrictions exist for shipping to communities that ban the sale of alcohol? b. How will exploring new distribution channels affect relationships with current intermediaries? c. How many intermediaries are necessary for adequate market coverage? d. Will selling at other retail outlets diminish control over marketing the product?

b. How will exploring new distribution channels affect relationships with current intermediaries?

Paul Lindsay is a logistics manager for a farm equipment manufacturer; he needs to move several tractor-trailers of farm equipment from the Midwest manufacturing plant to the East Coast distribution centers. This heavy equipment must travel a long distance—across country—and then over land to the various wholesalers that distribute them. What intermodal operation will allow Paul to combine long-hauling capacity with overland flexibility? a. Run-through b. Piggyback c. Fishyback d. Birdyback

b. Piggyback

You have a colleague who swears by using breakeven analyses. He or she has not been on the job long enough to be able to understand the reasons why this tool isn't always reliable. Which of the following reasons should you share with him or her? a. Not everyone in the company understands or uses breakeven analyses. b. The company's accounting system does not clearly distinguish between fixed and variable costs. c. Breakeven analysis is hard to calculate; and it is difficult to explain how the results are derived. d. Breakeven analysis is outdated.

b. The company's accounting system does not clearly distinguish between fixed and variable costs.

You work for a young grassroots art organization that does not have a lot of funds to invest in marketing efforts but wants to create a name for the company. As a muralist, you have considerable experience beautifying schoolyards and alleys with your paintings, and suggest to your executives that you use graffiti to spread the company's name in certain neighborhoods. Because your company specializes in art, you think this would be the perfect way to market the company and its long-term social mission to fill abandoned park walls with community art and develop community gardens. Your company agrees with the idea, so you partner with other muralists and paint the company's logo in creative ways on abandoned city walls. At first, your company receives bad publicity for the stunt, but it generates a lot of inquiries about your artwork because potential customers are intrigued by your company's level of creativity and innovation. Which of the following statements is true about the scenario described above? a. Guerilla marketing enhanced the credibility of the organization and increased its sales. b. This marketing strategy is usually effective because competitors are less likely to be using the same approach. c. This form of advertising is likely to cost about the same as more traditional advertising. d. Buzz marketing like the type described in the scenario is a cheap way to promote a company, but it is usually ineffective because it can offend some people.

b. This marketing strategy is usually effective because competitors are less likely to be using the same approach.

Read the following excerpt from the article, "Lines separating sales channels blur: Manufacturers, direct sellers, retailers, invade each other's turf" by Tom Collinger in Ad Age (March 30, 1998) and then choose the best answer to the question posed below. Conflict in the channels has produced a total blurring of the lines that once separated them. First, there's the blur between manufacturers and retailers. Then, there's the explosion of discount outlet malls, which proudly expose the highest image-oriented brand names to the consumer—direct from the manufacturers.... In addition, because of the proliferation of these malls as legitimate channels, sales for the brands in this channel are in the multimillion-dollar range. Finally, there is the manufacturer and direct-seller blur caused by those manufacturers that recognize the need to gain back some of the control they have lost to retailers.... Some manufacturers have mined niches in the market where they believe direct selling is somehow less objectionable to their retail partners.... Access to the consumer through the Internet will only continue to blur the manufacturer/direct-seller lines, altering the fundamental selling proposition for manufacturers forever (retrieved from http://adage.com/article/news/lines-separating-sales-channels-blur-manufacturers-direct-sellers-retailers-invade-s-turf/66410/). What type of marketing channel conflict is being discussed in the above excerpt? a. Horizontal conflict b. Vertical conflict c. Strategic conflict d. Channel cooperation

b. Vertical conflict

The following statements link various changing circumstances (causes) with effects on the breakeven point. Which of these statements is inaccurate? a. When automation replaces workers, fixed cost increases while variable cost decreases; the effect on breakeven point varies. b. When a recession cuts demand, breakeven point increases. c. When a price war forces a price cut, breakeven point increases. d. Hiring extra staff causes breakeven point to increase. e. A price increase results in a breakeven point decrease.

b. When a recession cuts demand, breakeven point increases.

In the fall of 2014, Coca-Cola brought back Surge, its answer to PepsiCo's Mountain Dew. It had first offered Surge for sale in 1996 but had stopped production in 2002. Surge was marketed as a novelty, a revival of the brand for nostalgic consumers. Assuming that buyers would want this specialty, limited-production item quickly in order to show it off to friends, the company also featured next-day delivery, exclusively from Amazon. Which of the following price levels was most likely associated with the Surge revival? a. a volume discount level b. a prestige item level c. a value pricing level d. a reentry level e. a parity level

b. a prestige item level

Your family owns a commercial bakery that has always partnered with large food distributors that sell and deliver to supermarkets around the United States. You and your sister have recently taken over from the older generation and may consider other distribution options. Your sister is especially interested in shortening the distribution channel. Having more channel strategy experience than her, you explain that moving in this direction could involve all of the following actions except: a. buying delivery trucks with cooling systems to retard spoilage b. choosing a logistics company experienced in cross-country shipping c. hiring a sales force experienced in selling baked goods d. planning a direct selling program to demonstrate the special characteristics of your packaging

b. choosing a logistics company experienced in cross-country shipping

You are a business consultant and have a contract with the Small Business Administration (SBA) to conduct training seminars for people seeking loans from the SBA to start new businesses. The SBA wants to give these prospective business owners as much information as possible so they have a greater chance of success. You are conducting a seminar on the different types of products that target business markets. Choose the type of business product that tends to have a long life and be very expensive, together with the correct example of such a product. a. installation; large conference table b. installation; customized computer system c. component; high-grade lumber d. equipment; fork lift

b. installation; customized computer system

The director of marketing at your company has asked you to evaluate the cost-cutting potential of using marketing intermediaries. You point out to his or her that intermediaries will save money in some, but not all, of your marketing activities. In which of the following activities would marketing intermediaries be ineffective in saving money? a. warehousing product b. manufacturing product c. selling to multiple customers d. delivering product e. maintaining inventory

b. manufacturing product

Which of the following is not among the three foundations of pricing strategy? a. potential demand b. margin c. competition d. costs

b. margin

Selena is embarrassed. After explaining to her boss how the company's CVP (cost-volume-profit) relationship affects its pricing strategy, she realizes that she left out a key variable. Reviewing her notes, she sees that she included price, sales volume, and profit margin. What did Selena leave out? a. breakeven margin b. price sensitivity of consumers c. past pricing history d. pricing regulations

b. price sensitivity of consumers

Which of the following is not typically a fixed cost? a. Wi-Fi access b. raw materials c. rent d. equipment leases e. insurance policies

b. raw materials

trademark

brand for which the owner claims exclusive legal protection

manufacturer brands

brand name owned by a manufacturer or other producer

A new restaurant just opened in your town. Fill in the blanks with the word(s) from the drop-down list that would best complete each passage about brand loyalty toward this restaurant or a competitor. Words may be used more than once. Your friend Fred mentions that he has seen a billboard with the eatery's name and may try it; from your marketing class, you know this stage of brand loyalty is called ________________________. An element of the marketing mix that is important to reach consumers like Fred is _________________________. It turns out that your neighbor, Sue, has eaten at the new restaurant and urges you to make a reservation soon. "I had a great experience!" she says. Sue's stage of brand loyalty is called _________________________. However, you tell Sue that you're not interested in the new restaurant. Whenever you eat out, you'll only go to your favorite place: Cheesecake Factory. Your stage of brand loyalty toward Cheesecake Factory is called _________________________________.

brand recognition; promotion; brand preference; brand insistence

private brands

brands offered by wholesalers and retailers

Fill in the blanks with the word or phrase from the drop-down list that best completes each passage. Many online retailers, such as Amazon, use _______ distribution centers that accept large, consolidated shipments to be divided into smaller ones. Logistics managers must control the movement of goods _______ plants, warehouses, and transportation terminals. _________ involves combining as many packages as possible into each load moved within a facility. _________ is the process of combining several unitized loads into a single well-protected load for shipment.

break-bulk; inside; unitizing; containerization

You are reviewing the various factors that will affect your company's choice between advertising and personal selling as a primary promotional tool. Fill in the blanks with the terms from the drop-down list that would best complete each sentence. Personal selling would be the better choice if the company decides to pursue ________ markets. Advertising would be the better choice if the company's products are ________________ standardized and _____________ in unit value. Personal selling would be the better choice if the company's products are ____________ or ____________.

business; highly/ low; customized/ complex

logistical cost control

businesses reexamine each link in their supply chains to identify activities that don't add value for customers

As a restaurant marketer, you are responsible for setting prices on each menu item. Your new appetizer is a fruit-and-nut salad, with a total ingredient cost of $5. The industry's standard markup is 25 percent. What should you charge for this appetizer? a. $6.00 b. $5.25 c. $6.25 d. $6.50 e. $5.75

c. $6.25

Company A and Company B both raised their prices by 30 percent. While A enjoyed a substantial increase in profits, B's profits plunged downward. Based on this information, which of the following is the most likely explanation for the companies' different outcomes? a. A's product is higher quality than B's. b. A has a history of high prices, while B has only charged low prices. c. B's customers are more price sensitive than A's customers. d. A has more customers than B. e. A's product offers better value than B's.

c. B's customers are more price sensitive than A's customers.

You are contemplating adding direct selling activities to your existing bricks-and-mortar retail business to increase sales. You are concerned, however, that the negative aspects of direct selling outweigh the positive. Which of the following is a negative aspect of direct selling that you must mitigate in some way to be successful? a. Direct selling is a less expensive form of retailing. b. Products are presented at convenient locations for customers. c. It may be more expensive and time-consuming than using an intermediary. d. Products are presented at convenient times for customers. e. Customers get personal attention.

c. It may be more expensive and time-consuming than using an intermediary.

You work for a multinational food corporation that specializes in breakfast foods. For the last ten years, your breakfast bars have dominated the market and been found on the tables of 65 percent of the families in the United States. In the last three quarters, however, your product has not been performing as well; you think the younger generation of parents perceives your bars, incorrectly, as high in sugar and fat and is unaware of their healthy ingredients. Your company develops a series of buy-one-get-one-free promotions and arranges for retailers to hand out samples at their stores. Despite all the resources you invest in this promotional campaign, the product's performance does not improve over time. Why is the approach to marketing described in the scenario ineffective? a. The goals for the promotional campaign were too broad. b. The company chose the wrong target market. c. The company's promotional objective was inappropriate given its marketing needs. d. The prices for the product were too high for young families.

c. The company's promotional objective was inappropriate given its marketing needs.

Company X is enjoying a spurt in sales of the stuffed animals it manufactures. To meet demand, the firm is spending more than ever before on cotton stuffing. However, its marketers note that they are spending less for stuffing per toy than in the past. Based on this information, what is the most likely explanation for the difference between overall spending and per-toy spending? a. The factory is operating less efficiently. b. Competition has decreased. c. The factory is operating more efficiently. d. The firm is importing cotton stuffing from abroad. e. Competition has increased.

c. The factory is operating more efficiently.

You work for an organization that wants to use a celebrity spokesperson to advertise its new smoking cessation programs. The company enlists the support of a local music celebrity who is well known and well liked. The celebrity has previously endorsed a local restaurant, is supporting the campaign of a local politician, and is known to partner with a local music program that works with blind children. This celebrity also is known to support awareness for lung cancer initiatives because his or her brother was a pack-a-day smoker for three decades and died of Stage IV lung cancer. Which of the following might be a drawback of working with this particular celebrity on promoting your organization's cause? a. This celebrity spokesperson is expensive and probably behaves badly. b. The celebrity is not a credible source of information. c. There is marketplace confusion surrounding this celebrity. d. The celebrity's body of professional work is not impressive.

c. There is marketplace confusion surrounding this celebrity

reverse channels

channel designed to return goods to their producers

Media Selection

choosing a form of media for advertising

supply chain

complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers

variable costs

costs that change with the level of production

fixed costs

costs that remain stable at any production level within a certain range

You have noticed that the most profitable diners at your restaurant are repeat customers, so you've developed a program to reward their loyalty. On every fifth visit, they will receive a free dessert and specialty coffee. Which of the following statements about this reward program is accurate? a. Advertising could not be used to further the same promotional objective. b. It is likely to stimulate primary demand. c. Its promotional objective is to create awareness of your restaurant. d. Advertising could be used to further the same promotional objective.

d. Advertising could be used to further the same promotional objective.

Public relations refers to a firm's communications and relationships with its various publics, including customers, suppliers, the government, employees, and stakeholders. The publicity that a company garners involves unpaid placement of significant news about the company in a published medium or through favorable presentations on the radio, Internet, or television. Why are consumers more likely to believe information that stems from the marketing aspect of public relations than they are to believe claims in advertising? a. Because many consumers appreciate when news comes directly from marketers instead of being filtered through a media organization. b. Because published information typically reflects bad news about companies, products, executives, and ideas. c. Because this information tends to be nonelectronic. d. Because many consumers consider news more credible when it comes from a media organization than when it comes directly from a marketer.

d. Because many consumers consider news more credible when it comes from a media organization than when it comes directly from a marketer

Which of the following statements about cross-promotion is inaccurate? a. The partners share promotional costs. b. It may utilize a mix of promotional tools. c. Its importance in the marketing world is likely to increase over time. d. Its effectiveness is limited to complementary products.

d. Its effectiveness is limited to complementary products.

According to the Ad Age article "PennWell acquires Oil & Gas Pipeline Conference" (March 21, 2013), "The pipeline and transportation sectors of the industry are experiencing phenomenal growth due to the resurgence of exploration and drilling in North America" (retrieved from http://adage.com/article/btob/pennwell-acquires-oil-gas-pipeline-conference/288678/). Pipelines rank third after railroads and motor carriers in ton-miles transported, but most people do not recognize pipelines as a major mode of transportation. Nevertheless, pipelines are the preferred method used for transporting crude oil, diesel fuel, kerosene, and gasoline in the United States. What are some drawbacks to transporting via pipeline? a. Pipelines are undependable methods of transportation over time. b. Pipelines move products quickly through a long network. c. Pipelines cannot be carried across the entire United States. d. Pipelines are a relatively slow method of transportation.

d. Pipelines are a relatively slow method of transportation.

You decide to start a dog-walking service because you notice a number of trends that suggest a high demand for this type of service. You are trying to convince your brother to partner with you in this business, but one of his comments suggests that he doesn't understand the nature of a service. Which of the following comments did your brother make? a. Perishability means that the unused service capacity from one time period cannot be stored for future use. b. Services are tied to the individuals who provide those services. Therefore, if a customer has a negative experience with the service provider, he or she may not return even if the service itself was impeccable. c. Consumers who have a need that can only be satisfied by an intangible task are often willing to pay someone to perform that task. Marketers call this a service. d. Standardized services are easier to provide than unstandardized services.

d. Standardized services are easier to provide than unstandardized services.

This morning your boss, a product manager, assigned you to a group of coworkers who are focused on new product development. However, by the time you got home and started to tell your roommates about it, you forgot what the group is called. You do remember that it is the most common organizational arrangement for developing new products. Choose the most likely name of the group. a. The New Brand Development Department b. The Product Manager's New Product Development Division c. The New Product Innovation Department d. The New Product Venture Team

d. The New Product Venture Team

You work in the marketing department of a household cleaning products manufacturer. When the CEO found that online purchase of consumer-packaged goods had reached only 1 percent of the $666 billion in sales in 2013, he or she charged your team with devising a plan to change that picture. Your research has shown that home delivery of cleaning supplies becomes economically feasible only when the total price hits $20 to $30. Which of the following pricing objectives should the team use for its action plan? a. Profitability objectives b. Prestige objectives c. Meeting competition objectives d. Volume objectives

d. Volume objectives

Airbnb, the online home rental business, has partnered with the Hearst publishing company to create Airbnb Magazine. This is primarily an example of: a. line extension b. retail branding c. national branding d. brand extension e. online branding

d. brand extension

A job description posted on Monster.com reads as follows: The individual will oversee each of the Skin Care Division's lotion and lip balm lines. In particular, he or she will be expected to maximize the profitability of all brands within those lines. This description suggests the company is looking for a: a. brand manager. b. product manager. c. line manager. d. category manager. e. profit manager.

d. category manager

selective demand

demand for a specific brand based on attributes important to potential purchasers

four types of distribution channels

direct channel, channels using marketing intermediaries, dual distribution, reverse channels

vertical conflict

disagreements among channel members at different levels

Fill in the blanks with the word from the drop-down list that best completes each passage. A marketing channel, also called a "_________ channel," is one critical component of a distribution strategy. Marketing channels provide the means by which goods and services flow from the _________ to the consumer or business user. Most marketing channels involve at least one _________ or middleman, but the simplest marketing channel is a direct channel. Reverse channels involve the return of goods to their producers, for example, by ________ or recall.

distribution; producer; intermediary; recycling

The director of marketing at your firm is very interested in developing new packages. However, he or she doesn't want a scattershot development process; he or she wants the development team to prioritize the first objective of packaging. This means he or she will instruct the team to put its emphasis on: a. product differentiation. b. trade dress. c. promotion. d. cost effectiveness. e. physical protection.

e. physical protection

You and a coworker, Liam, are discussing the merits of different media options for placement of your firm's advertising. The options include TV, radio, direct mail, magazines, and outdoor. "I'm concerned about people's limited attention spans," says Liam. "However, its low cost is a big advantage because of our tight budget." "The short lead time for placing ads will be especially helpful, since we often change prices on short notice," you comment. "And it's great for targeting our local market." Which of the following media options are you and Liam discussing? a. TV b. magazines c. direct mail d. outdoor e. radio

e. radio

noise

forms of interference with the transmission of a message that reduce its effectiveness

specialty products

higher-end products offering unique characteristics that compel buyers to purchase particular brands

brand extension

implies attaching a popular brand name to a new product in an unrelated product category

services

intangible products ex. haircuts, car repairs, dental work

business services

intangible products firms buy to facilitate their production and operating processes

Three levels of distribution intensity

intensive, exclusive, selective

Companies face different challenges depending on the type of brand they choose to market. Each type has a distinct set of characteristics. Fill in the blanks with the word(s) from the drop-down list that would correctly describe these characteristics. The type of product sold with the ____________________ branding effort is classified as __________________. Some manufacturers refuse to produce _________________________ brands. When Nabisco began to offer its Ritz cracker brand in different sizes and in salt-free, whole-wheat, and low-fat varieties, it was engaging in __________________________..

least; generic; private; line extension

A cowboy hat manufacturer was interested in knowing how to price his or her work based on data rather than "gut feelings." He or she found that pricing concepts involve a language of special terms. Fill in the blanks with the word or phrase from the drop-down list that is among these special terms and would best complete each sentence. Words may be used more than once. _________ refers to the portion of sales revenue left over after paying the product costs of cowboy hats. Target _________ are often based on norms in the hat industry. Cost-based pricing for cowboy hats uses the __________ plus a target _________ to calculate the sales price. Another term for margin is ________________.

margin; markup percentages; product costs/markup precentage; gross profit

Companies go to great lengths to enhance and protect the identities of their brands. Fill in the blanks with the word(s) from the drop-down list that would best describe the methods commonly used to achieve these objectives. Words may be used more than once. A brand logo is the same as a brand _______________. A brand __________________ is a symbol or pictorial design. The combination of visual cues that creates Starbucks' total image is its ______________________. The mermaid on every Starbucks cup is part of its ___________________.

mark; mark; tradedress; brandmark

sales promotion

marketing activities that provide a short-term incentive to make a purchase

wholesalers

marketing intermediary who takes title to the goods, stores them in warehouses, and distributes them to retailers, other distributors, and sometimes end consumers

dual distribution

movement of products through more than one channel to reach the firm's target market

raw materials

natural resources that become part of a final product

advertising

paid non personal communication about an organization and its products transmitted to a target audience through mass media channels

shopping products

products more expensive than convenience items and ones where the shopper lacks complete information prior to the buying process

generic products

products sold without any efforts at branding

accessory equipment

products such as power tools, computers, and office furniture that typically cost less and last for shorter periods than installations

primary demand

seeks to build demand for a product category, not for a particular brand within that category

intensive distribution

seeks to distribute a product through all available retailers in a trade area

Fill in the blanks with the word or phrase from the drop-down list that best completes the sentence. Warehousing is the location of stock and the number of warehouses the firm maintains, while inventory control is the quantity of stock the firm maintains at each _______. Using _________ is a component of handling materials appropriately in the factory, in the warehouse, and in the transport terminals. Activities for moving products within plants, warehouses, and transportation terminals comprise the ________ system.

site; protective packaging; materials handling

sender

source of the message communicated to the receiver

brand mark

symbol or pictorial design that distinguishes a product

goods

tangible products that customers can see, hear, smell, taste, and/or touch ex. televisions, shovels, cereal

brand equity

the added value the brand gives to a product in the marketplace

price

the amount of funds required to purchase a product

Integrated Marketing Communications (IMC)

the coordination of all promotional activities to produce a unified, customer-focused promotional message

line extension

the development and implementation of new sizes, styles, or related product offerings

distribution channel

the individuals and organizations who manage the flow of product from producers to consumers

downstream management

the management of finished product storage, outbound logistics, marketing and sales, and customer service

upstream management

the management of raw materials, inbound logistics, and warehouse and storage facilities

channel

the medium for delivering a message, such as a salesperson, a PR outlet, a website, or an advertising medium

breakeven analysis

the method for determining the amount of product that must be sold at a given price to generate sufficient revenue to cover total costs—both fixed and variable

distribution intensity

the number of percentage of intermediaries (usually retailers) through which a manufacturer distributes its good in a particular market

brand name

the part of a brand that can be spoken and distinguishes a firm's offerings from those of its competitors

decoding

the receiver's interpretation of the message

feedback

the receiver's response

supplies

the regular products a firm uses in daily operations

cost-volume profit (CVP)

the relationship between prices, demand, and overall profitability

AIDA concept

the steps consumers take in reaching a purchase decision

direct marketing

the use of direct communications to generate a response in the form of an order, a request for further communication, or a visit to a place of business

trade dress

the visual cues used in branding that create an overall look differentiating a brand or product from competitors

encoding

translating a message into understandable terms and transmitting it through a communications channel

intermodal operations

utilizing a combination of transport modes to improve customer service and achieve cost advantages

When choosing a pricing strategy, marketers must consider the foundational elements of costs, potential demand, and competition. Many factors can affect these elements. Fill in the blanks with the word or phrase from the drop-down list that best completes the passage. The relationship between price and demand _________ overtime. Some companies choose to sell a product below its production price. This strategy is __________________. Competition ______________ affects a firm's pricing strategy more than cost.

varies; unsustainable; sometimes

selective distribution

when a firm chooses only a limited number of retailers in a market area to handle its line

exclusive distribution

when a producer sells to only a small number of retailers or grants exclusive rights to a wholesaler or retailer to sell its products in a specific geographic region

brand preference

when buyers choose a product over a competitor based on experience

brand insistence

when consumers refuse alternatives and search extensively for the desired product

cross-promotion

when marketing partners share the cost of a promotional campaign that meets their mutual needs