exam 2

Which of the following would be considered an upstream partner in a company's supply chain?

a firm that provides technical expertise in the production of a product

Acquisitions do not include ________.

developing a product

In a promotion mix, _____ involve(s) personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

direct marketing

the purpose of marketing is to

generate profitable revenue

In value- based pricing, marketers think about setting the right price to maximize their profit potential but, as well, leaving something for consumers to believe they paid a good price. This is called a consumer surplus. What is the consumer surplus in the following example? A Lego robotic set costs the company $88 to produce and they want to set a price floor of $120. Consumers see competitive sets for $400 although they are not everything that Lego offers. The Lego direct to consumer price on their website is $250.00. Given the value of Lego brand robotics sets, consumers believe that a fair price would be +25% more than the competition offers. What is the consumer surplus?

i. $320 ii. $300 iii. $250 iv. $280

Explain the differences between Advertising and Public Relations. What are the advantages of a company relying on PR rather than advertising?

i. PR is only for managing crisis situations ii. PR is potentially more engaging iii. PR works best for small companies iv. PR is likely to cost more in the long run

The Accor Hotel case presented in class focused on an agin lodging brand that was in need of modernization and, as well, what strategic decision?

i. Reposition as an adventure travel booking ii. expand into Asia and Africa iii. list with online travel agencies iv. merge with a global brand such as Marriott

Which of the following is the first step in developing an advertising program?

setting advertising objectives

Certain Whole Foods grocery stores in Washington and Oregon have begun using carts that automatically scan items so that customers do not have go through a check out line. This is an example of which stage in the New Product Development Process?

test marketing

A ______ consists of producers, wholesalers, and retailers acting as a unified system. The system can be dominated by any one of the interdependent members.

vertical marketing system

Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and More. Which of the following pricing strategies will Los Amigos likely use?

competition-based

Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is using a ________ approach to price the new moisturizer.

cost-plus

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. in this case, Kallton is using ____ to generate new product ideas.

crowdsourcing

Our class visitor from SNAP, John Eckhart, described four methods of attributing consumer choice within the digital journey to purchase a product or service. In order of easy to difficult, what were they?

i. regression modeling. incremental, last touch, every touch ii. last touch, purchase click through, first touch, incremental iii. first touch, last click, incremental, fractional iv. last touch, first touch, incremental, fractional

Our class visitor, Michelle Adams presented her firm's work in measuring interest in an ad or topic by employing what technique? When using this technique, how can she tell when a person is interested by what they are seeing/hearing?

i. the timing meter synchronized with the content ii. her interest meters registered high iii. three out of four respondents tested positively

which statement is most likely true about idea generation in the new product development process?

idea generation is usually followed by procedures that reduce the total number of ideas.

With each new generation of Apple iPhone, iPad, or Mac computer, new models start at a high price then work their way down as newer models are introduced. Apple initially uses a ______ strategy.

market-skimming

Victoria's Closet, a manufacturer of bohemian-style clothing and accessories, sells its products through its online website, a catalogue, and specifically boutiques that target women. Which kind of channel arrangement does Victoria's Closet employ to distribute its products?

multichannel distribution system

Karen Dodd is employed by Dell and responsible for calling on primary schools in her home state of Maine to promote the company's offerings. She demonstrates the Dell line of product including desktop computers, laptops, and tablets and fields questions from teachers and administrations alike. This is an example of which promotion too!?

personal selling

In a marketing communications mix, ____ refers to any short-term incentive encourages the purchase or sale of a product or service.

sales promotion

A detailed version of a product idea stated in meaningful consumer terms is a _____.

product concept

Foods International is developing a new gluten-free, chilli-flavored pretzel. The marketing strategy for the product has already been developed and presented ot top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. The company is somewhat unsure about the product's acceptance and they will need to build an expensive manufacturing facility. Once approves, the next step will most likely be ____.

test marketing

Which of the following applies to a marketing intermediary who buys brand name toothpaste from 10 different manufacturers, consolidates offerings, and then resells the various brands to 500 supermarkets in Florida?

transform the assortments of products made by producers into the assortments wanted by consumers

A _______ pricing strategy for an offering begins with an assessment of customer needs and perceptions. Then a target price is set based on customer perceptions of worth.

value-based