MKT Exam 4 Study Guide

Marketing channels create four types of utility for consumers including _____________________, __________________________, _______________________, and _______________________.

1. Time 2. Place, 3. Possession, 4. Form

The fact that customers may buy "forward," or buy large amounts that keep them supplied for many months, is a drawback of ____________________.

Buying allowance

________________________ is the percentage of customers that stop using a product in a specific time period.

Churn rate

___________________, ________________________, and ________________________ are forms of competitive advertising.

Comparative, reminder, reinforcement

When Subaru's advertising campaign mentions the Subaru Forester being named a 2019 IIHS Top Safety Pick, it is using ______________ advertising.

Competitive

Product placement in television shows is becoming increasingly important due to ___________________________________________.

Consumers' greater ability to screen advertisements

Pandora and Spotify allow users to listen to music through the Internet or other device. Pandora and Spotify are engaging in _______________________.

Digital distribution

The increase in _____________________________________ is helping to reduce the cost of advertising for marketers and making advertising more frequent in mobile games and social media.

Digital media

Amy's Ice Cream offers its customers a stamp card that allows them to collect stamps for each purchase and then receive a free ice cream after they have filled an entire card with stamps. This is an example of a __________________________.

Frequent-user incentive

The Subaru Outback "Where the Heart Is" ad we watched in Chapter 16 is an example of ____________________advertising?

Institutional

Pioneer advertising is most appropriate during the ______________________ stage of the product life cycle.

Introductory stage

By promoting the fact that avocados are good for you and can be used to make tasty snacks, the California Avocado Grower's Exchange attempted to stimulate _____________________________________. a) primary demand. b) secondary demand. c) competition. d) comparison of orange juices. e) demand elasticity.

a) primary demand.

Eliminating a wholesaler from a marketing channel will ________________________________________________. a. not eliminate the functions performed by that wholesaler. b. eliminate the functions performed by that wholesaler. c. lead to lower costs but higher prices. d. reduce channel conflict. e. cut costs and lower prices.

a. not eliminate the functions performed by that wholesaler.

____________________ are items offered free or at minimal cost as a bonus for purchasing a product. a) Rebates b) Premiums c) Samples d) Merchandise allowances e) Coupons

b) Premiums

A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Home Depot and Lowe's. This form of sales promotion is called a(n) ________________________________. a) cooperative advertising. b) dealer listing. c) push money. d) dealer loader. e) advertising allowance

b) dealer listing.

Promotional efforts designed to reduce the risk to consumers for using a product for the first time seek to ______________________. A) stimulate demand. b) encourage product trial. c) create awareness. d) combat competitive promotional efforts. e) retain loyal customers.

b) encourage product trial.

Michael's, PetSmart, and Staples are all examples of __________________________________. a) department stores. b) off-price retailers. c) category killers. d) traditional specialty retailers. e) superstores.

c) category killers.

An open-air shopping center that features upscale specialty, dining, and entertainment stores, usually owned by national chains, is generally called a(n) _______________________________. a) regional shopping center. b) neighborhood shopping center. c) community shopping center. d) lifestyle shopping center. e) outlet shopping center.

d) lifestyle shopping center.

Starbucks has an agreement with PepsiCo through which Pepsi distributes Starbucks' coffee drink, Frappuccino, to grocery stores and other retail outlets. This is an example of ___________________________. a. horizontal channel integration. b. channel leadership. c. dual distribution. d. a strategic channel alliance. e. exclusive distribution.

d. a strategic channel alliance.

A large retailer selling food and most routinely purchased consumer products is a(n) _____________________________________. a) hypermarket. b) supermarket. c) discount store. d) Warehouse club e) Superstore

e) Superstore

When ASICS gives a portion of its profits to prostate cancer research for every pair of blue-themed Gel-Cumulus shoes sold, it is engaging in ____________________________________. a) promotion. b) integrated marketing communications. c) charity marketing. d) charitable promotion. e) cause-related marketing.

e) cause-related marketing.

A schedule in which advertisements run for set periods of time, alternating with periods in which no ads are run is known as _______________________.

flighting schedule

The two major types of product advertising are______________ and _____________.

pioneer and competitive

Large retailers such as Macy's and Kohl's are most likely to participate in which marketing channel? __________________________________________.

producers to retailers to consumers

In Chapter 14 we watched a video about Uniqlo, which is an example of a(n) ____________________ retailer.

specialty

Having products available when customers want them creates _______________________.

time utility

In the Jordan Belfort video we watched in Chapter 17, he recommended using active listening to build rapport with your customer. According to the textbook, this is an important task during the _________________step of the personal selling process.

Making the presentation

Recognition and recall tests are posttest methods based on _________________________.

Memory

Companies are increasingly using _______________________ to respond to changing consumer preferences to be able to buy a product wherever and whenever they desire.

Multichannel distribution

Katerina fell in love with a pair of shoes she saw Liza wearing on Instagram. Katerina immediately went to the Zappos app on her phone, found the shoes, and ordered them for herself. In this case Zappos is providing ____________________________ utility.

Place

As discussed in the Chapter 13 lecture, the Dunkin Donuts gift card is an example of __________________ utility created by marketing channels.

Possession

In the Chapter 15 lecture, we discussed how the Netflix show Stranger Things has generated free publicity worth tens of millions of dollars for more than 140 brands through ______________________.

Product placement

Communication through the use of annual reports, event sponsorships, and news stories is referred to as _________________________________.

Public relations

When Hershey introduced Hershey's Cookie Layer Crunch, it promoted directly to consumers and told them to ask for the product at their favorite stores. This is an example of a ________________________________ policy.

Pull

The supply chain begins with_________________________ and ends with______________________________________.

Raw materials; organizations selling to the final customer

Dial Soap's advertising slogan "Aren't you glad you use Dial? Don't you wish everybody did?" exemplifies the use of _____________________ advertising.

Reinforcement

___________________ is best characterized as transactions in which the buyer intends to consume the product through personal, family or household use.

Retailing

The selling of merchandise in machines is generally called ____________________________.

Vending

Eva went to shop at a local store called Oscar's, but found out that if she wanted to take advantage of their low prices, she would have to become a member. Oscar's is an example of a ______________________________.

Warehouse club

Advertising, personal selling, sales promotion, and public relations are called ______________________________________________. a) promotion mix ingredients. b) marketing mix components. c) characteristics of a product. d) advertising tools. e) nonpersonal communication

a) promotion mix ingredients.

Category killers compete primarily on the basis of __________________________________. a) enormous product selection and sales expertise. b) low prices and enormous product availability. c) convenient locations and customer services. d) rock-bottom prices and moderate selections. e) one-stop shopping and product availability.

b) low prices and enormous product availability.

Toastie's offers customers a card that allows them to have a free sandwich or wrap for every seven that have been purchased and provides various discounts throughout the year. The primary promotional objective of programs such as this is _____________________________________. a) encouraging product trial. b) retaining existing customers. c) stimulating demand. d) combating competitive promotional offers. e) reducing sales fluctuations.

b) retaining existing customers.

When Coach agrees to pay Dillard's a certain proportion of the cost of providing television advertising and Sunday newspaper sales fliers emphasizing Coach purses, Coach is offering ____________________________. a. Merchandiser allowance b. Cooperative advertising c. Premium money d. Dealer loader e. A buying allowance

b. Cooperative advertising

A major benefit of using event sponsorship is that it _________________________.

can provide large amounts of free media coverage.

Anything that reduces the accuracy and clarity of communication is called ___________________________. a) distraction. b) feedback. c) interference. d) discordance. e) noise.

e) noise.

Sofia is driving to work on I-95 and notices a billboard for new salads at Wendy's. She reads the message and sees the pictures of the new salads. In this case, Sofia is the _____________________________ and Wendy's is the __________________________ of this communication. a) receiver; source b) audience; promoter c) decoder; coder d) communicatee; communicator e) feedback; noise

a) receiver; source

During the personal selling process, a salesperson, if possible, should handle objections when ______________________. a) they arise. b) the salesperson begins the trial close. c) the sales presentation is approximately half completed. d) when the customer appears to be unhappy or agitated. e) when the salesperson begins the sales presentation.

a) they arise.

The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about _______________________. a) store atmosphere. b) location. c) retail positioning. d) store image. e) the wheel of retailing.

b) location.

A marketing channel is defined as a group of individuals and organizations that ______________________________________. a. consumes about one-half of every dollar spent on products in the United States. b. directs the flow of products from producers to customers. c. links producers to other marketing intermediaries. d. manages transportation and warehousing functions. e. takes title to products and resells them.

b. directs the flow of products from producers to customers.

A small self-service store that is open long hours and carries a narrow product mix in an expedient location is best described as a ____________________________. a) discount store. b) department store. c) convenience store. d) supermarket. e) category killer.

c) convenience store.

_________________________________ is the performance of marketing-related activities by telephone. a) e-marketing. b) direct-response marketing. c) telemarketing. d) phone retailing. e) tel-selling.

c) telemarketing.

Fatima is a salesperson for American Eagle Outfitters. Her compensation is based on a set salary plus a commission based on sales. Fatima's compensation is based on a ____________________________. a. Cafeteria plan b. Salary plus bonus program c. Combination compensation plan d. Straight commission compensation plan e. Straight salary compensation plan

c. Combination compensation plan

Product placement is the strategic location of products within ___________________________________________. a.) in television commercials b.) in print advertisements c.) within entertainment media content d.) on billboards in busy intersections e.) on store shelves

c.) within entertainment media content

The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called ________________________________. a) prospecting. b) preapproach. c) approach. d) making the presentation. e) overcoming objections.

d) making the presentation.

Consumers receive the benefits of place utility when ________________________. a. they have to travel excessively to obtain products they want. b. retailers remain open 24 hours a day. c. they make purchases with credit and debit cards. d. products are available in locations where consumers want to buy them. e. they can stock up on products they need but not use them right away.

d. products are available in locations where consumers want to buy them.

After the advertising budget is determined, the next step in creating an advertising campaign is ________________________________. a) creating the advertising message. b) creating the advertising platform. c) evaluating the advertising objectives. d) executing the campaign. e) developing the media plan.

e) developing the media plan.

A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n) __________________________________. a) strip mall. b) neighborhood shopping center. c) off-price mall. d) lifestyle shopping center. e) outlet shopping center

e) outlet shopping center

A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n) ______________. a) trade salesperson. b) inside order taker. c) tech support worker. d) missionary salesperson. e) technical salesperson.

e) technical salesperson.

Reinforcement advertising is primarily targeted at ___________________. a) new potential target markets. b) users of competitors' brands and products. c) anyone who uses that type of product. d) all the stakeholders of an organization. e) the current users of a particular product

e) the current users of a particular product

A salesperson finds and analyzes information about each prospect's specific product needs, current use of and feeling about brands, and personal characteristics during _____________________________. a) prospecting. b) the approach. c) presentation preparation. d) overcoming objections. e) the preapproach.

e) the preapproach.