Mktg 570 Exam 2
How many levels of intermediaries are there in a direct sales channel?
0
Tucker's foods buy their fruit straight from the farm. They then make it into jam and other products and sell it on to wholesalers who in turn sell to retailers such as Sainsbury's. How many levels are there in this supply chain?
3
What does EPOS stand for?
Electronic point of sale
The ______ Mark shows consumers that the farmers that produced the products received a fair and stable price. They also have safe working conditions and stronger rights and treat the environment with care.
Fairtrade
The two principal participants in Schramm's communications model are media owner and client. True or false?
False
If a product is said to have a price inelastic demand curve, what does this mean?
If you change the price, sales volume will change very little.
Why is it more difficult to brand services than to brand goods?
It is harder to make a service consistent.
Parasuraman et al.'s model proposes five dimensions that contribute to service quality: tangibles, reliability, assurance, responsiveness and empathy. What is this model called?
SERVQUAL
If a marketing department follows the 'top down' planning model, what does it do?
Senior managers set objectives which are passed down to marketing staff.
Why is it generally harder for service industry managers to cope with peaks and troughs in demand for their products?
Service products cannot usually be stored.
What are the typical characteristics of services?
Services confer benefits; are intangible; are time- and place-dependent; are inconsistent; cannot be owned; and providers and consumers form part of the service
Under which conditions would market skimming be likely to be a viable strategy?
There is insufficient market capacity and competitors cannot make more of the product. There are no competitors. The demand for the goods in question is relatively price inelastic.
What is parallel importing?
Trade customers buy goods cheaper abroad, import them and undercut the manufacturer.
What is a pull strategy?
a communications strategy aimed at consumers
What is a push strategy?
a communications strategy aimed at distributors
What is a cartel?
a group of companies that get together and fix prices between them
What is a warehouse club?
a large store offering wholesale prices to members only
Matt has some great Christmas gifts for sale but not enough people come into his shop and see them. They tend to shop at bigger retailers instead. He cannot afford media advertising and so he decides to offer Christmas crackers for one penny each (well below what they cost him) to draw customers in. He puts a notice in the window advertising this bargain. What tactic is he using here?
a loss leader
What is a distribution channel?
a product's route through the supply chain
Which one of the following is not a component of a good business mission statement?
a statement of financial assets
What are businesses that represent, and sell goods on behalf of, other businesses in a specified market called?
agents
Dombey and Sons produce a sparkling drink from apples grown on their own farm. They employ a small French firm to sell the drink to wholesalers in France. This French firm is acting as:
an agent
One of the problems that comes from the intangibility of services is that they are perceived as higher risk purchases than goods are. Which of the following is most likely to reassure a customer who has paid in advance for a Centre Court seat at Wimbledon that they will in fact get to see the tennis?
an expensive and official looking ticket
Which of the following is not a PR technique?
an on-pack, free-prize draw
A Marketing information System (MkIS) comprises three main functions: data collection and storage, ______ and reporting.
analysis
AIDA is a sequential model showing the states of mind that a person may go through while deciding what to buy. What does AIDA stand for?
attention, interest, desire, action
Products are sold to target markets. Marketing Communications are addressed to target ______.
audiences
Where does after-sales service fit into the total product offering?
augmented product
Coca-Cola and Pepsi are two of the most powerful brands in the world and this presents a significant ______ to entry for other companies trying to launch new cola drinks.
barrier
Outsourcing has advantages and disadvantages. Name one advantage of outsourcing.
being able to draw on specialist expertise that the organisation does not have
Coca-Cola has an easily identified logo (its name written in a flowing script) and is usually packaged in a red can or its famously curvy bottle. What do these elements combine to form?
brand identity
What is the term for the volume of products sold that, at a given price, will cover the company's costs?
breakeven point
A ______ is a series of coordinated marketing activities designed to achieve specific objectives (e.g. to reposition a product or to educate people about its correct use).
campaign
Robert has recently been appointed Marketing Manager for a fashion company. He needs to know whether or not the company's products have a sustainable advantage in the marketplace. What kind of analysis does he need to do?
competitor analysis
As long as the product is sold for more than its variable cost, it is making a ______ towards the firm's fixed costs and profits.
contribution
Which of the following is not a market-based pricing method?
contribution pricing
DAGMAR is a hierarchy of effects model comprising awareness, comprehension, ______ and action.
conviction
A sure way to go out of business is to set prices lower than ______.
costs
There are three key elements to price setting: competitors' prices, ______ perceptions of the product's value and costs.
customers
What is the term for using specialist software to analyse large amounts of data (held in a database) to predict trends and likely customer behaviour?
data mining
What type of cost is 'mark-up' pricing based on?
direct cost
Dizzy Designs make their clothes in the UK and then ship them to their own retail outlets in France, Spain and Germany. What kind of operation is this?
direct export
Which of the following is not a typical characteristic of a market-oriented company?
emphasis on short-term objectives
Luxury goods such as high fashion and designer clothing would normally have very few, (possibly only one), distribution outlets. What is the term for this?
exclusive distribution
Just like business reports, marketing plans often have an ______ summary at the beginning.
executive
Visto is a much loved British drink, widely available in the UK but nowhere else. Lately sales have been falling and the big supermarkets have cut back on their orders. Which of the following is most likely to be a successful extension strategy for this well-established drink?
exporting it to other countries
Advertising is generally a better promotional tool than sales promotion when it comes to closing a sale. True or false?
false
An organisation with an 'outside-in' approach focuses on the needs of the organisation first, and customers and the marketplace second. True or false?
false
Capital goods are usually classified as consumer products. True or false?
false
Cost and price are interchangeable terms. True or false?
false
In a SWOT analysis, strengths and weaknesses are external factors. True or false?
false
In marketing, 'place' is another term for location. True or false?
false
PR normally stands for Press Relations. True or false?
false
Products can be categorised as either goods or services. Very few have significant elements of both. True or false?
false
Services cannot be exported. True or false?
false
Services do not contribute to a country's economy as they do not result in any net increase in wealth. True or false?
false
The marketing mix is often known as the 3Ps. True or false?
false
The product life cycle is widely used as it is a precise and reliable sales forecasting tool. True or false?
false
FMCG stands for ______ consumer goods.
fast-moving
Fred runs a bakery. He has lots of bills to pay: electricity; rent for the shop; the staff's wages; flour for bread, cakes and pastries; etc. His accountant says it is important to classify these costs correctly so that he can set the right prices for his products. How would you classify the shop's rent?
fixed and indirect
A ______ is one of a chain of shops that are individually owned but licensed by a larger company to sell their products (e.g. the Body Shop or Baskin Robbins). The larger company also provides expertise.
franchise
XYZ Co has four sales teams: London & the South East, Wales & the Midlands, Northern England, and Scotland. What kind of organisational structure is this?
geographic organization
What is the most likely core benefit of a cross channel ferry service?
getting from Britain to France safely
For his basic sandwiches, Johnny checks out what other sandwich bars charge and charges approximately the same. What kind of pricing is this?
going-rate pricing
What is the general term for products that have a physical form (i.e. you can touch them)?
goods
The Quick Heat Company have a new range of central heating boilers designed for domestic use. They know that most homeowners buy boilers that are recommended by their heating engineer. Who should be the primary target audience for their new campaign?
heating engineers
The Quick Heat Company have a new range of central heating boilers designed for domestic use. They know that most homeowners buy boilers that are recommended by their heating engineer. Who is their target market for boilers?
homeowners
he International Chamber of Commerce has devised a set of rules for the interpretation of international terms and conditions. These rules set out how activities, costs and risks are to be split between the buyer and seller. What are they called?
incoterms
Truly new products, usually the result of a technological breakthrough such as the invention of laser surgery, are known as ______ products.
innovative
One obvious strategy to overcome fears associated with the service product's ______ is to turn it into something more tangible.
intangibility
Conferences and trade exhibitions are good places to gather competitive ______ quite openly.
intelligence
According to the GE McKinsey matrix, the best strategy for a product in a strong competitive position in a highly attractive market would be to do what?
invest for growth
What are people who work with information rather than in manufacturing or in more traditional service industries called?
knowledge workers
According to the UK advertising code administered by the Advertising Standards Authority (ASA), advertising should be:
legal, decent, honest and truthful
According to many retailers, what are the three secrets to their business success?
location, location and location
What is the function of transporting and storing physical goods for the various members of the supply chain known as?
logistics
According to Ansoff's matrix, a company that tries to increase sales by selling its existing products in a new market is following what kind of strategy?
market development
Miranda owns a chain of handbag shops across England and Wales. She has spotted a good location to set up a shop in Edinburgh but her handbags are not well known in Scotland and there is quite a lot of competition. She thinks it is worth a try anyway and decides to undercut the competition, at least until she gets known. What pricing strategy is Miranda following?
market penetration
What is an alternative term for a distribution channel?
marketing channel
A retailer decides to launch its own version of Marmite. What kind of new product is this?
me-too
PR may use the same ______ (e.g. television, radio or Internet) as advertising but in a very different way.
media
The use of different types of channel (e.g. high street stores as well as the internet) to reach the same potential target market is known as _____ distribution.
multichannel
When developing a corporate mission statement, it is important to think in terms of customer ______, rather than the products the company makes.
needs
Football Mania have booked an expensive ad slot during the FA Cup final. Unfortunately, there are technical problems and the ad is not shown. According to Schramm's communications model, what is this an example of?
noise
Which of the following is a well-used marketing evaluation and control method?
none of the above
What is product placement?
paying for your product to be used as a prop in entertainment or cultural media
The Quick Heat Company sells all sorts of standalone fires (e.g. paraffin heaters and electric fan heaters). Most of their customers are businesses who have a short-term problem such as a heating breakdown. In order to increase sales, they have decided to try and persuade people who live in rented accommodation, and who may want to increase the warmth of their homes without investing in the property, to buy these fires. Who is the primary target market for this campaign?
people who live in rented accommodation
The Quick Heat Company sells all sorts of standalone fires (e.g. paraffin heaters and electric fan heaters). Most of their customers are businesses who have a short-term problem such as a heating breakdown. In order to increase sales, they have decided to try and persuade people who live in rented accommodation, and who may want to increase the warmth of their homes without investing in the property, to buy these fires. Who should be the primary target audience for their marketing communications campaign?
people who live in rented accommodation
There are 7Ps in the services marketing mix. What are the additional 3Ps?
people, physical evidence and process
Where does brand image fit into the total product offering?
perceived product
ABC company have forecast approximately £10 million sales for the coming year. They have decided to allocate £200,000 (2% of turnover) to marketing. Which budget setting method are they using?
percentage of sales method
The less ______ the service, the more likely it is that it can be performed remotely (i.e. without customer and service provider being present at the same time).
personal
Advertising, public relations and sales promotion are three of the four traditional techniques of the promotional mix. What is the fourth?
personal selling
The tangible aspects of a service are known as ______ evidence.
physical
A concert ticket is primarily an example of which element of the marketing mix?
physical evidence
Few companies sell just one product; some sell thousands. Their products are collectively referred to as their product ______.
portfolio
Woods and Co is one of the largest office furniture suppliers in the UK. They outsource manufacturing overseas, sell direct and keep their prices low. New firms who do not have Woods' economies of scale find it impossible to compete. What kind of pricing is Woods and Co using?
pre-emptive pricing
Marie is a software developer who works freelance. She wants her customers to really value her work and so she consistently sets her prices higher than the competition. Sometimes she loses work because of this, but often she wins the contract. What kind of pricing is she using?
prestige pricing
The 4Ps are product, promotion, place and ______.
price
A cinema's automated booking service is primarily part of which of the marketing mix elements?
process
Some fast food chains have detailed instructions about how staff should prepare the food. There are timers to tell them when the chips are cooked and even painted footprints on the floor to show where they should stand. Which element of the marketing mix are they trying to control?
process
Place, or distribution, is often summed up as getting the right ______ to the right place at the right time.
product
The total package that makes up and surrounds a product including all supporting features such as branding, packaging, servicing and warranties is known as the total ______ offering.
product
What is the final stage of the new product development process?
product launch
Johnny has recently opened a sandwich bar but he is not sure what prices to charge for his various products. His customers tell him they would never pay more than £4.00 for a sandwich and so he sets his top price at £4.00. What kind of pricing is he using?
psychological price barriers
What are the axes on the Boston Consulting Group (BCG) matrix labelled?
relative market share and market growth rate
hat kind of intermediary is Tesco?
retailer
Sales ______ minus costs = profit.
revenue
Rolex sells its watches through a number upmarket retail partners (e.g. department stores and jewellers) with comparatively few stores. What is this type of distribution strategy called?
selective distribution
The _______ element of a product is now often the key (if not only) way to differentiate a goods item (physical product) from its competitors.
service
Two diners complain about a restaurant's slow service but are delighted to be given a free bottle of wine and canapés to make the wait less tedious. In the end, they thoroughly enjoy their evening. In terms of services marketing, what is this a good example of?
service recovery
What is the term given to the total (and frequently complex) environment in which a service is delivered?
servicescape
Sales promotions are ______-term, special offers and other added-value activities intended to induce buyers to buy, or try, a product.
short
What is the first stage of the marketing planning process?
situation analysis
The Oxo family starred in one of the most famous, and long-running, ad campaigns in the UK. It showed the family in typical situations, usually culminating in them sitting down to eat an Oxo-inspired meal. What kind of creative execution is this?
slice of life
What is a staple product?
something people always like to have and so purchase regularly (e.g. soap)
Mary is getting married and she wants everything on the day to be perfect, especially the dress. What kind of product is a wedding dress?
specialty
The market for organic fruit is booming as more and more people try to follow a healthier lifestyle. The Green Apple Company is the UK market leader and able to command high prices for its excellent products, especially locally grown strawberries. Where are the strawberries most likely to be placed on the Boston Consulting Group (BCG) matrix?
star
Services are transient. They happen at a particular time and cannot be ______ for later sale or use.
stored
What does SBU stand for?
strategic business unit
Maria is the Marketing Manager for Wholefoods Ltd. She is working on the firm's marketing plan. Her forecasts show that, if they carry on as they have been doing, they are likely to miss their sales revenue targets by £500,000. She needs some new ideas. What kind of analysis has Maria undertaken?
strategic gap analysis
McKinsey's 7S framework helps analyse organisations and improve their effectiveness. The seven elements to be coordinated are: shared values, structure, systems, style and what?
strategy, staff and skills
SWOT is one of the most commonly used analysis tools in business, but what does it analyse?
the organisation's current situation
What is a 'service encounter'?
the time during which a customer receives a service
What is the core product or benefit of a winter coat?
the warmth it provides
Porter's five forces is an industry analysis model. The five forces are: inter rivalry of competitors, bargaining power of customers, bargaining power of suppliers, threat of new entrants and what?
threat of substitutes
Apart from business growth, there are a number of other good reasons for selling products internationally. Which of the following are valid reasons?
to spread risk the firm has excess production capacity to extend the product life cycle
'Promotion' and 'Marketing Communications' are interchangeable terms.
true
A business mission statement is an explicit form of words that captures the broad aims of the company. True or false?
true
A supply chain is a network of businesses and organisations through which goods pass to get to their final destination. True or false?
true
Ansoff's Matrix illustrates the ways companies can grow through increasing sales opportunities. True or false?
true
Broadband provision is an example of a service industry.
true
Car insurance and IT consultancy are products. True or false?
true
Charging a high price for products tends to encourage new competition into a market. True or false?
true
Firms rarely compete on the basis of their products' physical features alone. True or false?
true
Going out to tender is a common way for prices to be set for government contracts, particularly for public works such as bridge building. True or false?
true
In a free market, a product's price would be set by the forces of demand and supply. True or false?
true
Increases in leisure time are one of the reasons behind the growth of service industries.
true
It is usually cheaper for an international company to sell standard consumer products all over the world, however cultural differences are likely to force them to make some adaptations. True or false?
true
Mark-up pricing is common in retailing. True or false?
true
Most new products are commercial failures. True or false?
true
One of the primary functions of packaging is to protect goods in transit. True or false?
true
Radio is a mass medium. True or false?
true
The Internet has opened up new channels of distribution. True or false?
true
At each stage in the supply chain, ______ is added to the bought in product (i.e. it is transformed into something more desirable and so can command a higher price).
value
Ivan runs a bakery. He has lots of bills to pay: electricity; rent for the shop; the staff's wages; flour for bread, cakes and pastries; spelt for his special spelt loaf; etc. His accountant says it is important to classify these costs correctly so that he can set the right prices for his products. How would you classify the cost of the spelt?
variable and indirect
Teatimes Ltd. are famous for their speciality teas. They are about to introduce two new teas based on their best-selling English Breakfast blend: Welsh Afternoon tea and Scottish Nightcap tea. What kind of new products are these?
variant
Price ______ start when two or more competitors continually undercut each other's prices.
wars
Which of the following could be classed as a durable good?
washing machine
What are marketing metrics?
ways to measure marketing effectiveness
