AGBU 4340 TEST #2 CHAPTERS 10-17

________ and ________ do not take title to goods, and they perform only a few channel functions.

Brokers; agents

________ pricing refers to offering just the right combination of quality and gratifying service at a fair price.

Good-value

________ involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit.

Marketing logistics

Which of the following is a major step in selecting advertising media?

determining reach, frequency, and impact

Chapter 17 Amazon.com and GEICO approach customers via Web sites or mobile apps. This is an example of ________ marketing.

direct

Chapter 12 A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

marketing channel

The AIDA model identifies the characteristics of an effective ________.

marketing message

Specialty stores carry ________ with ________ within them.

narrow product lines; deep assortments

Communication through a telephone call is considered a part of a(n) ________ communication channel.

personal

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing.

customer-segment

Herbie Inc., a firm manufacturing sandwich makers, has fixed costs of $250,000, variable costs of $20 per unit of output, and expected unit sales of 50,000 units. What is the unit cost of a sandwich maker manufactured by Herbie?

$25

A farm supply company plans to launch a new premium type of Vetgun with a unit cost of $270 and wants to earn a 10 percent markup on its sales. The selling price of the Vetgun is ________. A) $275

$300

A company faces fixed costs of $100,000 and variable costs of $8 per unit. It plans to directly sell its product in the market for $12. How many units must it produce and sell to break even? A) 20,000

25,000

Sigma Inc. has 2,000 Type-A accounts, each requiring 35 calls per year, and 1,000 Type-B accounts, each requiring 15 calls per year. What is the sales force's workload?

85,000 calls

Chapter 16 Which of the following is true with regard to personal selling?

Personal selling entails personal presentations by a firm's sales force for the purpose of making sales and building customer relationships.

________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items.

High-low

________ includes all activities involved in selling goods and services to those buying for resale or business use.

Wholesaling

Chapter 1 What sets the ceiling for product prices?

customer perceptions of the product's value.

Which of the following statements best represents a contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the system represented by the contract? Sears, Target, and Kroger are examples of ________.

franchise corporate chains

The number of times an average person in the target market is exposed to a message is known as the ________ of the message.

frequency

Chapter 13 At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________.

full-service retailer

In a(n) ________, two or more companies at one level join together to follow a new marketing opportunity.

horizontal marketing system

Kirk's Comic Store has its own mobile app that users can download for free. The app lets users know about special events, discounts, and merchandise currently available in the store. Which of the following forms of marketing is exemplified from this scenario?

mobile marketing

Which of the following is a type of identity theft that uses deceptive e-mails and fraudulent Web sites to fool consumers into revealing their personal data?

phishing

A five-foot high cardboard display of Terry the polar bear, mascot of Terry's protein shake, next to the shelf containing Terry's products in a supermarket is an example of a(n) ________.

point-of-purchase promotion

Springfield, a convenience store, has recently begun to redesign and restock its stores to offer a more upscale environment with products such as house wines and fresh foods. This information indicates that Springfield has most likely changed its ________.

positioning

In the ________ stage of the selling process, a company first identifies qualified potential customers.

prospecting

Sales executives at Keiron Air Conditioners use phone directories to call customers and convince them to buy their air conditioners. Which form of direct marketing is used here?

telemarketing

vIn the ________, each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that region.

territorial sales force structure

Chapter 14 A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. Which of the following terms best describes this set of communications tools?

the promotion mix

________ are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.

Distribution centers

________ are manufacturer-owned and operated stores that offer prices as low as 50 percent below retail on a wide range of mostly surplus, discounted, or irregular items.

Factory outlets

Which of the following companies uses product bundle pricing?

Panizza, whose combo meals are priced lower than its individual components sold together

Which of the following is an example of a Third-party Logistics (3PL) provider?

UPS Business Solutions

The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ________.

atmosphere

Spartan Sportsgear is a company that sells sports equipment for adventure sports. It recently launched ExtremeSpartan.com to showcase products and provide testimonials of famous adventure sports athletes who use Spartan's products. It also includes videos and blogs. Which of the following best describes ExtremeSpartan.com?

branded community Web site

Which of the following is used to generate business leads, stimulate purchases, reward customers, and motivate salespeople?

business promotion

A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the company's new products. This is an example of ________.

buzz marketing

Using ________ pricing, companies are able to turn their trash into cash, allowing them to make the price of their main product more competitive.

by-product

Which of the following product mix pricing strategies involves pricing products that can only be used with the main product?

captive product pricing

When Verizon Wireless began offering the iPhone, it used its "Can you hear me now?" slogan to attack AT&T's rumored spotty service. This example best illustrates ________.

comparative advertising

Which of the following methods is used by companies to set their advertising budgets based on the industry average?

competitive-parity method

Which of the following types of marketing involves sending out letters, brochures, samples, and DVDs to consumers' addresses?

direct-mail marketing

Lifebelt Insurance sells insurance only through its door-to-door salespeople. What type of marketing channel does Lifebelt use?

direct

Neal Murphy sells his company's unique products on television programs. He hosts a 30-minute show in which he demonstrates and explains the advantages of the product. At the end of the show, a toll-free number is displayed on the screen that can be used by viewers to place their orders for the product. Which of the following forms of advertising is evident here?

direct-response television advertising

Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. This reflects Bon Vivant's ________ pricing strategy.

everyday low

Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of ________ distribution.

exclusive

The ________ organization is a common type of contractual relationship.

franchise

Delia's is a clothing retailer that targets teenage girls. The company runs coordinated promotions for its catalogs, Web site, and retail outlets. It uses the same models in its catalog, print ads, and Web site. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all aspects. From this information, we can infer that Delia's is using ________.

integrated marketing communication

Whitelight sells its toothpastes in many convenience stores across the country. This is an example of ________ distribution.

intensive

Music Mogul has arrangements with several stores and retail chains to place their DVDs and digital music machines in prime spots such as near billing counters and at store entrances. Consumers can buy DVDs by depositing payment or they can buy music online via the touch-screen interface on the machine. Which form of marketing is illustrated in this scenario?

kiosk marketing

One of the functions performed by a PR department is ________, which involves building and maintaining relations with legislators and government officials to influence legislation and regulation.

lobbying

In a bid to attract more customers in a market that has several competitors, Barrymore's Bakery slashed the prices of all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?

market-penetration pricing

Chapter 11 When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the ________ pricing strategy.

market-skimming

Which of the following is NOT one of a wholesaler's channel functions?

off-price retailing

Which of the following product mix pricing strategies involves pricing additional or accessory products sold along with the main product? A) inclusive product pricing

optional-product pricing

Before calling on a prospect, the salesperson should learn as much as possible about the organization and its buyers. This step is known as ________.

preapproach

Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices so deeply that it sells below costs, effectively pushing smaller companies with less purchasing power out of the market. Savings for You is most likely guilty of ________.

predatory pricing

Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and statewide media with information about special events and charity fundraisers sponsored by her company. This is an example of the ________ function of public relations.

press relations

When sellers set prices after talking to competitors and engaging in collusion, they are involved in ________.

price fixing

Johnson Business Solutions maintains one sales force for its copy machines and a separate sales force for its computer systems. Johnson Business Solutions utilizes a(n) ________.

product sales force structure

The owner of Second Avenue wants to establish a community clothing drive to collect clothes for a local children's shelter. The owner is planning to set up collection barrels outside Second Avenue. In this case, which of the following public relations tools is being used by the owner?

public affairs

Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events?

public relations

Which of the following promotion tools involves building up a positive corporate image and handling unfavorable stories and events?

public relations

Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product.

pull

In the context of media timing, ________ means scheduling ads unevenly over a given time period.

pulsing

In Viña del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies ________.

pure competition

John Deere does very little promoting of its lawn mowers and garden tractors to final consumers. Instead, John Deere's sales force works with Lowe's, Home Depot, independent dealers, and other channel members, who in turn sell John Deere products to final consumers. According to this information, which of the following promotion mix strategies is being used by John Deere?

push strategy

You receive a report that 68 percent of your target market has been exposed to your ad campaign during a given period of time. Which of the following aspects of media selection is represented by this information?

reach

Which of the following promotion categories is most likely to include the use of displays, discounts, coupons, and demonstrations?

sales promotion

A(n) ________ is an individual who represents a company to customers by prospecting, communicating, selling, servicing, information gathering, and/or relationship building.

salesperson

Price discrimination is legal when a ________.

seller can prove its costs are different when selling to different retailers

A ________ is a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit.

shopping center

Randy keeps getting unwanted and annoying e-mails from several marketing firms unknown to him. The number of these e-mails is alarmingly high in his inbox. Which of the following best describes these e-mails?

spam

Companies using target costing ________.

start with an ideal selling price and then target costs that will ensure that the price is met

Chapter 15 Which of the following is most likely an objective of informative advertising?

suggest new uses for a product

Happy Pet is a large pet food company that has convinced the retailers and the wholesalers of the New England area to resell its products. Happy Pet promises to reimburse the advertising costs to its retailers and wholesalers for advertising its products. This is an example of a ________.

trade promotion

Costs that change with the level of production are referred to as ________.

variable costs

When KFC came into conflict with its franchisees over the brand's Unthink KFC repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.

vertical

Uptown-Clean Crew is a company that provides house-cleaning services in major urban and suburban areas. Marketers at Uptown-Clean Crew developed a short, humorous video promoting the company's services and posted it online. Soon the video was a rage as customers who saw the video found it hilarious and they passed it on to their friends and colleagues calling it the "Uptown comedy." Which form of marketing is illustrated from this scenario?

viral marketing