MKTG 321 Final Exam study (Study Quizes)

Jamba Juice offers its customers a stamp card that allows them to receive a free smoothie after they have filled an entire card. This is an example of a ---------.

. frequent-user incentive

If any company decides to make changes in its marketing channels, the strategic significance is that channel decisions are________

. long-term commitments

A set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produced and distributed in the right quantities, to the right locations, and at the right time is called

. supply chain management.

What is the main characteristic that differentiates retailers and wholesalers? In what ways do retailers add value to products?

A retailer is an individual or organization that sells products to the final consumer. On the other hand, a wholesaler is an individual or organization that sells products that are bought for resale, for making other products or for general business operations. Retailers add value for customers by creating time, place, and possession utility and, in some cases, form utility. Retailers can add significant value to the supply chain, representing a critical link between producers and ultimate consumers.

Price is said to be the most flexible of the four variables in the Marketing Mix, but still subject to influence of several factors. List and explain three of them.

A. Pricing decisions can be complex because of the number of factors to be considered 1. There is considerable uncertainty about the reactions to price among buyers, channel members, and competitors. 2. Price is also an important consideration in marketing planning, market analysis, and sales forecasting. 3. It is a major issue when assessing a brand's position relative to competing brands. B. Organizational and Marketing Objectives 1. Marketers should set prices that are consistent with the organization's goals and mission. 2. Pricing decisions should also be compatible with the firm's marketing objectives. C. Types of Pricing Objectives 1. The types of pricing objectives a marketer uses have considerable bearing on the determination of prices. 2. Objectives such as increasing market share or raising cash require different pricing strategies. D. Costs 1. Costs must be an issue when establishing price. 2. In the short term, a firm may sell products below cost to match competition, to generate cash flow, or even to increase market share—but it is not sustainable to sell products below-cost over the long-term. 3. A marketer must be careful to analyze all costs associated with a product when establishing price. 4. To maintain market share and revenue in an increasingly price-sensitive market, many marketers have concentrated on reducing costs. 5. Labor-saving technologies, a focus on quality, and efficient manufacturing processes have brought productivity gains that translate into reduced costs and lower prices for customers. 6. Marketers must also consider the costs a product shares with others in the same product line, such as research and development, production and distribution costs. E.Other Marketing Mix Variables 1. Because of the interrelation of the marketing mix variables, pricing decisions can influence evaluations and activities associated with product, distribution, and promotion variables. 2. Price can affect demand. For many products, buyers associate better product quality with a high price and lower product quality with a low price. Price, therefore, can affect a buyer's overall image of a brand. 3. The price of a product is linked to various elements of its distribution. Premiumpriced products often are marketed through selective or exclusive distribution, whereas lower-priced products in the same product category may be sold through intensive distribution. 4. Price may also affect how a product is promoted. Bargain prices often are included in advertisements; premium prices are less likely to appear in advertising messages and are more likely to require personal selling efforts. F.Channel Member Expectations 1.When making pricing decisions, a producer must consider what distribution channel members expect. 2.Channel members often expect producers to give discounts for large orders and prompt payment. 3.Resellers may expect producers to provide support activities such as sales training, service training, sales promotions, repair advisory service, cooperative advertising, and perhaps a program for returning unsold merchandise to the producer. 4.Discounts and support activities have associated costs, and the producer must consider these costs when determining prices. G. Customers' Interpretation and Response 1.Marketers should address the following question when making pricing decisions: How will our customers interpret our prices and respond to them? a.Interpretation means what the price means or what it communicates to customers. b.Customer response refers to whether the price will move customers closer to purchase and the degree to which the price enhances their satisfaction with the purchase experience and the product. c. In evaluating what they receive when making a purchase, customers consider product attributes, benefits, advantages, disadvantages, the probability of using the product, and possibly the status associated with the product. d.In assessing the cost of the product, customers likely will consider its price, the amount of time and effort required to obtain it, and perhaps the resources required to maintain it after purchase. e.At times, customers interpret a higher price as higher product quality; they are especially likely to make this association when they cannot judge the quality of the product themselves.

.____ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other highly skilled specialists

Advertising agencies

Why profits typically decline for a company that first introduced a product during the growth stage of a product's life cycle?

Because competitors have entered the market

When companies decide to go for international marketing strategies , they generally do it to take opportunities to grow and innovate. Describe two specific reasons why companies decide for marketing their products abroad.

Companies that decide to market their products abroad are generally looking for opportunities to grow and expand their business. There is typically an orientation to: 1) reduce costs, being close to raw material suppliers; cheaper or more skilled labor; efficiencies in the distribution costs or lower taxes. 2) increase profits, by exploring economies of scale, scope; additional customer base; increasing the number of target markets; finding new target markets.

When companies decide to invest in digital marketing, there are usually strategic changes they have to do in the marketing mix. Name and explain two of them.

Companies that make an investment in digital marketing must be ready for adjusting the marketing mix in one or all its components. Typical PRODUCT changes are related to unique offers available online only. Changes might also happen in the PRICE, as it might be more flexible and easily comparable with competitors. Major changes may take place in the way companies communicate in their PROMOTION, as many creative ways are made available through social media and in not rarely in a much more interactive way with customers, as it would in traditional media (tv, radio, newspaper for example). Finally, companies may also have to change their methods of delivery as DISTRIBUTION channels tend to be more dynamic when digital marketing is involved impacting the processing of orders speed of communications with channel members and customers

When Volvo's advertising campaign mentions the Volvo CX60 has the highest safety rating of any European sedan, it is using _______ advertising.

Competitive

Which phase of the Product life cycle is a downward turn in sales leading to the demise of a product?

Decline

. ____ uses the Internet, mobile, and interactive channels to develop communication and exchanges with customers. While electronic media that function using digital codes are called______.

Digital marketing; digital media

Luke is a transportation coordinator for Volkswagen of North America. In order to move a large order of vehicles from a plant in Germany to Chicago, he is planning to use both waterways and railroads. The combining and coordinating of these two modes of transportation in order to take advantage of benefits offered by each of the different types of carriers is called______________.

Intermodal transportation

Ariana is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?

Location

Price is considered to be the variable in the marketing mix that is_______.

Most flexible.

__________ is anything that reduces an integrated marketing communication's clarity and accuracy

Noise

Which of the following best describes wholesalers?

Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users

Explain the difference between price competition and non-price competition and name the conditions for these methods to be effective.

Price competition emphasizes price as an issue and matching or beating competitors' prices. To compete effectively on a price basis, a firm should be the low-cost seller; Must be willing and able to change prices frequently to meet competitors' pricing; May lead to price wars. Non-price competition emphasizes factors other than price to distinguish a product from competing brands. A major advantage is a firm can build customer loyalty. Only effective if: A company can distinguish its brand from others; Buyers are able to perceive these distinguishing characteristics and view them as important; The company promotes the brand to establish its superiority.

. In the context of Marketing Communications, what is PR (public relations) and for what purposes is it used?

Public relations (PR) are communication efforts used to create and maintain favorable relations between an organization and its stakeholders. PR is generally used to create a positive image of the company in general or when Companies may have to deal with unexpected and unfavorable publicity resulting from: an unsafe product; an accident Page 2 of 2 resulting from product use; a controversial actions of employees or some other negative event or situation.

What is the number one reason why does a company need to know what stage of the product life cycle its products are in?

To adapt its marketing strategies

Which of the following is an overall goal of the promotional mix?

To persuade consumers to buy

Why should a benchmark statement be included in advertising objectives?

Without a reference point, it is difficult to determine to what degree objectives have been accomplished

Netflix sells its movie services using its website while Red Box sells its movie services using vending machines. From a customer's point of view, Netflix is using ____ and Red Box is using ___.

a direct-marketing channel; a type of retailer.

. Mary and Julian both are buying new iPhones this week. Mary goes to the Apple store because she wants to actually see the phone before she makes a final decision. Julian knows that he does not need to see the phone, because he just wants to update from his older version. Mary is purchasing her phone through_____, while Julian is purchasing his through ___.

a retailer; a direct-marketing channel.

All of the following are key areas of sales force management except:

coordinating sales promotion efforts.

A marketing channel is defined as a group of individuals and organizations that____:

directs the flow of products from producers to customers

The last stage in the development of any advertising campaign is______________

evaluating the effectiveness of advertising.

Product placement is the strategic location of products ________________.

within entertainment media content

2) Look at the following examples of product changes. Identify the type of product modification: a. A few years ago, Apple released a new model of the iPhone equipped with the intelligent personal assistant Siri______________ b. Gap introduces a popular summer T-shirt in a new color. ______________ c. Kraft begins changing the packaging of its snack foods to make them easier for elderly customers to open. ______________ d. Prada decided to change the design of one of its more expensive handbags. ______________ e. Smartphones are being made waterproof in case of accidents. ______________ f. A coffee shop decides to offer its coffees made with organic milk. ______________

A few years ago, Apple released a new model of the iPhone equipped with the intelligent personal assistant Siri __functional_ b. Gap introduces a popular summer T-shirt in a new color. _______aesthetic_______ c. Kraft begins changing the packaging of its snack foods to make them easier for elderly customers to open. __functional_ d. Prada decided to change the design of one of its more expensive handbags. __________aesthetic_______ e. Smartphones are being made waterproof in case of accidents. ______quality________ f. A coffee shop decides to offer its coffees made with organic milk. ____quality______

Jake, a sales representative is returning from a week on the road. One of his activities this week is to develop ____, which are designed to identify the customers called on and to present detailed information about interaction with those clients.

Call reports

. The _____ design element of an advertisement is used to attract attention, communicate an idea quickly, or communicate ideas that are difficult to put into words; the ____ is the physical arrangement of the illustration, headline, sub headline, body copy, and the signature.

Illustration; layout

You are the marketing manager for a multi-state auto dealership in the Southeast United States. It is that time of year when your fleet of autos goes through a major model year change. You are putting the final touches on your pricing strategy to facilitate this change in your inventory of autos. Which of the following pricing strategies will you use to facilitate this model year change?

Periodic discounting

In the context of marketing promotion strategies, what are the main differences between Personal Selling and Sales Promotion ?

Personal Sales is typically a paid personal communication that attempts to informs customers and persuades them to buy products in an exchange situation. It is normally done on regular basis, face to face, one-to-one and as such, very costly. But its main advantage is the immediate feedback. Classical example would be car dealers or jewelry stores. Sales Promotion main characteristic is its temporary effect, typically done on a campaign basis. Most common technique are coupons and free trials. It can be done by existing companies, for example Subway coupons on the mail, or for new business or new products, like the cosmetic industry does frequently when launching a new fragrance or lotion.

Personal selling is changing in today's marketplace due to several factors. Which of the following is not a factor that impacts today's promotion through personal selling?

The difficulty in keeping customers because they are fickle.

What is direct marketing? Give three examples of it.

The use of the telephone and other nonpersonal media to introduce products to consumers, who then can purchase the products through the mail, telephone, or the Internet is called direct marketing. Typical examples would be telemarketing, catalogs, couponing, online retailing, direct mail, email marketing.

Look at the following examples of products. Identify whether the product is in the introduction, growth, maturity, or decline stage of the product life cycle: a. Smartphone______________ b. Print Encyclopedias______________ c. Google Glass______________ d. Quaker Oats______________ e. 3-D Television______________ f. Coca-Cola Classic______________ g. CD Players______________ h. Tablet Computers______________

a. growth b. decline c. introduction d. maturity e. decline f. maturity g. decline h. growth

Brands that are promoted through comparative advertising are most likely to be__________

brands that are attempting to compete with market leaders.

Verizon encourages customers to post reviews on its company website or Facebook page in the hopes of increasing the company's_____________.

credibility

. The major levels of intensity at which a company can choose to distribute its products are ____ distribution.

exclusive, selective, and intensive

Which of the following is a way that a business can extend the life cycle of an established product?

finding new uses for the product

Supermarkets, discount stores, and hypermarkets can all be classified as____:

general merchandise retailers.

Laws, government regulations, and industry self-regulation ______________ deceptive promotion.

have helped decrease

Considering the Principles of Marketing, pricing strategies and methods____________

help direct and structure the selection of a final price.

A major disadvantage of personal selling is that it_____________.

is very expensive per contact

Personal selling goals include finding prospects, convincing prospects to buy, and_________.

keeping customers satisfied

Category killers compete primarily on the basis of____________.

low prices and enormous product availability

Hobby Lobby encourages customers to visit their website and "like" their Facebook page. It also enlists customers to post feedback on their company, refer to articles of interest to other Hobby Lobby customers, and offer suggestions for future electronic communication. Hobby Lobby is using a positive marketing strategy for its Facebook page and company website because customer generated content appears________________.

more authentic than company-generated content.

The target audience for an advertising campaign is the________________

people toward whom the advertisements are directed.

Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called______:

personal selling.

Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called ____ advertising.

pioneer advertising; competitive advertising

Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is_______.

prospecting.

Suppose Toyota also offered the dealership salespeople a trip to Hawaii for anyone who could sell ten of the new vehicles within the first month they were available? This tactic would be an example of ____ marketing, while the TV commercials described above would be an example of ____ marketing.

push; pull

. 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.

Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)_________.

retailer

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

retaining existing customers; acquiring new customers

One trend that has caused consumer-generated information to gain importance is______.

the increase of consumers using digital media to publicize their own product reviews.

Brittany is choosing the type of media for a new promotional campaign for Halls cough drops. She knows that each type of media has both benefits and disadvantages. She is considering the Internet as a form of media. Which of the following is NOT a disadvantage of the Internet as a promotional medium?

the message must be short and simple.

At the breakeven point,_________

the money a company brings in from selling products equals the amount spent producing the products.

According to the Principles of Marketing, Price is best defined as________.

the value that is exchanged for products in a marketing transaction.