Exam 5

Which of the following is particularly appropriate for pricey high-tech business products, such as jet aircraft and medical equipment?

A) Team selling

An advertising campaign is typically developed by an individual or a few persons within the firm, an advertising department within the organization, or

A) an advertising agency.

Tim has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to

A) approach.

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.

B) F.O.B. factory

____ are items offered free or at minimal cost as a bonus for purchasing a product.

B) Premiums

Recently the local television station communicated a news story about the new specialized medical mart opened by Cleveland Clinic. The story provided information about the various services that the new medical mart would offer and how to get in touch with the service providers. This story is most likely an example of

B) Publicity.

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

C) personal selling.

Frederick Griffith of Griffith's department stores tells his marketing director that he is tired of the constant price-centered advertising by the firm's agency. "We have the best customer service in town, and I feel that is what we should be hanging our hats on," he states. This statement is most appropriate for use in which of the following stages of campaign development?

D) Creating the platform

The difference between consumer sales promotion methods and trade sales promotion methods is

D) consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to buy.

As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use ____, which are the most widely used form of consumer sales promotion.

D) coupons

If Roberts Electronics finds that the average total cost of its radar detectors and the marginal cost of its radar detectors are both $85, then

E) average total cost is at its lowest level

Price is

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

Savanna is a sales person for Aeropostale. Her compensation is based on a set salary plus a commission based on sales. Savanna's compensation is based on a(an)

B) combination compensation plan.

The two groups of order takers in personal selling are

C) inside order takers and field order takers

A measure of sensitivity of demand in relation to changes in price is

D) price elasticity of demand.

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

A) institutional

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

A) price competition.

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

A) prospecting.

At the breakeven point

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

The advertising campaign for Crest toothpaste lets consumers know about its newest flavor, and also mentions its history as an established brand. The ad also mentions Crest's advantages and benefits. Crest's advertising would be classified as

B) reminder.

Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as

C) comparative.

The target audience for an advertising campaign is the

C) people toward whom the advertisements are directed

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

D) flighting.

Ethan is an operations unit manager for Morningstar Foods. So far in developing his monthly budget, he has identified the following costs: Overhead at $120,000; Packaging at $70,000; Advertising at $60,000; Salaries at $400,000; Food production at $90,000, and Distribution at $22,000. The fixed costs in this situation would be

D) overhead, advertising, and salaries

Price is a key element in the marketing mix because it relates directly to

D) the generation of total revenue.

If Target were to base its advertising appropriation on the amount that Walmart spends, it would be using the ____ approach.

E) competition-matching

The step in developing an advertising campaign that directly precedes campaign execution is

E) creating the advertising message.

If Pacific Power and Light increased its rates by 10 percent and experienced a 2 percent reduction in the demand for power, the demand would be

E) inelastic.

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.

E) prestige

The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the

E) sales presentation.