MKT 350 Test 4

Mostarda is an Italian-based company. When marketers at Mostarda tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Mostarda conclude?

Mostarda mustard is a prestige good

Chris Jarratt, accountant representative for Revel Advertising, tells Meek's that he is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15%. This approach is an example of which of the following methods of determining advertising expenditure levels?

Objective-and-task

Which of the following is not a public relations tool?

Product sample

Refer to Scenario 18.2. If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this method is that

a drop in sales would cause a drop in the advertising budget

One advantage of nonprice competition is that

a firm can build customer loyalty

Mars Incorporated makes Snickers candy bars. Mars will most likely focus its promotion efforts on

advertising

Slow feedback, high absolute-dollar outlay, and difficulty in measuring effects on sales are disadvantages of which promotion mix ingredient?

advertising

The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.

closing

Refer to Scenario 21.1. Ray-Ban's plan of gathering information about the other brands sold in department stores, including their prices, would most likely be used in a ____ basis for pricing

competition

If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ____ approach.

competition-matching

Refer to Scenario 18.2. When deciding on its advertising allocation for the coming year, State Farm Insurance could choose to spend the same amount as Safe Auto, another auto insurance company, or it could allocate an amount that is 10% of last year's premiums. If State Farm uses the same amount as Safe Auto, this method of advertising appropriation is known as the ____ approach; if State Farm uses the amount based on last year's revenues, the method would be ____.

competition-matching; percent-of-sales

An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is

cooperative advertising

The verbal portion of an advertisement, including headlines, body, and signature, is called the

copy

As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decided to use ____, which are the most widely used form of consumer sales promotion.

coupons

Why is publicity viewed as being so much more important than advertising, sales promotion, or other forms of public relations?

credibility of the message

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

Which of the following is most likely to stimulate customer loyalty?

frequent user incentives

Low cost, unusual, novel marketing ideas that generate buzz and conversation are all characteristics of what out of the box non traditional marketing method?

guerilla marketing

Television is a popular advertising medium along companies selling products and services that are consumed by mass markets because it:

has the ability to reach large audiences in a relatively cost-efficient manner

Todd is developing a print advertisement for KFC. 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

Jillian Michaels uses infomercials to demonstrate her fitness products and encourage customers to call and receive a free video with more information about her products. This promotional effort is directed at

identifying prospects

The first stage in the development of any advertising campaign is

identifying the advertising target audience

One of the main disadvantages of publicity is

lack of control

During a one-minute television ad for Nike, the National Weather Service interrupts to announce a flash flood warning for surrounding counties. This is an example of ___ in the communication process.

noise

Refer to Scenario 18.2. If State Farm decided that it wanted to increase its number of customers by 10% in the coming year, it would most likely use the ___ approach to advertising allocation.

objective-and-task

Refer to Scenario 21.1. If Ray-Ban selected the prices for its new sunglasses to be $60, $70, or $80, this would most likely be an example of using ____ pricing to enhance its distinctive positioning strategy.

odd-even

Selective demand is demand for a

particular brand

While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that

people often discontinue their positive behavior after the contest is over

Heather is concerned about the effectiveness of Meek's promotional messages, and is seeking an approach with immediate feedback. Heather is most likely to achieve this through

personal selling

Michael is planning a promotional program for AirFam. AirFam is a supplier of new energy-saving engines used to produce air conditioners. His company needs to promote these engines to manufacturers of air conditioners, so he is most likely to use ____, because it provides immediate feedback. The disadvantage is that it is ___ than advertising to reach one customer

personal selling; more costly

Wheaties used to offer two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of

premium

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

price competition

A measure of sensitivity of demand in relation to changes in price is

price elasticity of demand

Refer to Scenario 21.1. Given Ray-Ban's plan for positioning the new sunglass line, they should use a ____ strategy when introducing their new product

price-skimming

By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange Growers Association attempted to stimulate

primary demand

Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization more positively and to accept its product is the role of

promotion

Advertising, personal selling, sales promotion, and public relations are called

promotion mix ingredients

Refer to Scenario 21.1. Ray-Ban has decided to promote the new sunglass line as an "affordable luxury" and plans significant promotional expenditures. With these objectives, which of the following should Ray-Ban use to price its product line?

promotional

Ben, a salesperson for DiVentures, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase diving equipment. This process is called

prospecting

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

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

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

rebates

Newspaper ads for Blue Haven Pools offer discounted prices during October and discounted cleaning supplies for hot tubs in March, are examples of which of the following uses of promotion?

reducing sales fluctations

The cost of ____ is usually substantially lower than the cost of ____.

retaining existing customers; acquiring new customers

When McDonals's uses the Monopoly game in which customers receive game pieces with each visit and try to assemble a set of properties to win prizes, McDonald's is utilizing

sales promotion

Latisha works for a promotional consultant who develops sweepstakes, games, coupons, and rebate plans for various marketers. Latisha is developing which of the following?

sales promotion techniques

In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication

source

The cost per thousand (CPM) indicator shows

the cost to expose 1,000 people to a one-page magazine advertisement

When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called

trial closing