Introduction to Marketing

Which of the following describes the pull dynamic of distribution using digital media?

A woman uses her iPhone app to locate the nearest Starbucks

Which of the following is more likely to lead to underspending or overspending?

Arbitrary approach

If a company is introducing a brand into a market where it already has one or more brands, it would likely choose which of the following bases for positioning the new product?

Avoiding competition positioning

An individual knows that a product exists, but has little information regarding the product and does not seek additional information. In what stage of the product adoption process is that person?

Awareness

____ are web-based journals in which writers can editorialize and interact with other Internet users.

Blogs

____ connects customers with marketers as well as other customers.

Connectivity

Which of the following statements is true regarding digital marketing?

E-marketing includes digital outdoor signs or displays

Select the greatest advantage of horizontal channel integration.

Efficiencies in advertising, marketing research, and purchasing are increased

Which of the following is a full-service merchant wholesaler?

General merchandise wholesaler

Which is the best example of noise that originates with the communications channel in the communication process?

Lidya can't load web pages to do research because her Wi-Fi is down

Internet sites that allow users to share photos, videos, and podcasts are called which of the following?

Media-sharing sites

At what point does a firm maximize profit?

The point at which marginal cost equals marginal revenue

A product line is defined as

a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.

One of the fastest-growing areas in mobile technology is the creation of ____ that help consumers to access more information about businesses.

applications (apps)

Some critics, including consumer groups and government officials, suggest that certain products should not be promoted because they

are potentially harmful

The effectiveness of an advertising campaign can be measured

before, during, and after the campaign through the use of pretests, inquiries, and posttests

The part of a brand that can be spoken including letters, numbers, and words is the

brand name

A market share objective

can be used effectively whether total industry sales are rising or falling

A major benefit of using event sponsorship is that it

can provide large amounts of free media coverage

Promotion tends to

capitalize on existing needs.

An important goal of physical distribution is reducing the time it takes to complete

cycle time

The main objective of physical distribution should be to

decrease costs while increasing service

Off-price retailers feature

deep discounts, few customer services, and central checkouts.

Primary demand is defined as

demand for a product category

A firm can identify changes in public opinion that affect it by conducting

environmental monitoring

Expensive, high-quality products that are purchased infrequently often reach consumers through

exclusive distribution

A run-out policy of product deletion

exploits any strengths left in the product.

Changes that affect a product's versatility, effectiveness, convenience, or safety are called ____ modifications.

functional

A product that is simply labeled with the product category is considered a

generic brand

Pricing strategies and methods

help direct and structure the selection of a final price.

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

heterogeneity

A(n) ____ is a concept, philosophy, or image.

idea

Promotion helps consumers because it

informs consumers and places them in a position to specify the products that they seek.

Measuring effectiveness during a campaign is usually accomplished by using

inquiries

The three levels of brand loyalty from strongest to weakest are

insistence, preference, recognition

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

institutional

One way service businesses communicate a higher level of service quality to their customers is by having their employees be clean, sharp looking, and dressed in appropriate uniforms. This is a way to address the ____ characteristic of services.

intangibility

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines

integrated marketing communications.

Convenience products typically use

intensive distribution

The four major stages of a product life cycle include

introduction, growth, maturity, and decline.

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

inverse

Public relations

is an element of promotion that should be handled on a continuous basis

Product deletion

may be opposed by management

Extreme-value stores tend to sell

name brand, nonperishable items

A limited-line wholesaler would be expected to carry a ____ product mix.

narrow and deep

A shopping center that contains stores owned by manufacturers who make a special effort not to conflict with traditional retailers is a(n)

outlet shopping center

If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using

outsourcing

Selective demand is demand for a

particular brand

The target audience for an advertising campaign is the

people toward whom the advertisements are directed

The fact the services cannot be inventoried and then sold at a later date is called

perishability

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

personal selling

Order processing, inventory management, materials handling, warehousing, and transportation are the activities that define

physical distribution

The two major types of product advertising are

pioneer and competitive

The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds is

product positioning.

Consumers receive the benefits of place utility when

products are available in locations where consumers want to buy them

Minerals, chemicals, timber, and agricultural products are considered

raw materials.

A specialty product

requires purchase planning, and the buyer will not accept substitutes.

If a company's products require differentiation at the point of purchase, it will most likely use

selective distribution

Using only some of the available outlets to distribute a product is called

selective distribution

A channel member that markets all of a manufacturer's goods, has authority over price, promotion, and distribution, but does not take title to the product is a

selling agent

Consumers are changing ____ and consumption behaviors to fit with emerging technologies and trends.

their information searches

The full and legal name of an organization is called the

trade name

____ uses the Internet, mobile, and interactive channels to develop communication and exchanges with customers.

Digital marketing

____ are more consumer-driven than traditional media.

Digital media

In which stage of the product life cycle do profits begin to decrease?

Growth

______________ can be ideas and creative materials, songs, movies, books, or electronics that are developed to educate or entertain.

Intellectual property

Pioneer advertising is used during which of the following product life-cycle stages?

Introduction

_______________ involves developing and maintaining adequate assortments of products to meet customers' needs.

Inventory management

What assumption does breakeven analysis make that limits its overall usefulness?

It relies on demand for a product being inelastic

________ that can allow almost real-time measurement and evaluation should be embedded at the onset of a social media strategy.

Key performance indicators

In a franchise agreement, which of the following is a franchisee not responsible for?

National advertising campaign

Public relations materials include which of the following?

Newsletters

Which of the following would be used in setting the price of a new product if considerable competition is expected?

Penetration pricing

____________ is setting the price lower than competing brands in order to enter a market and quickly gain a significant share of the market.

Penetration pricing

A product that has more features than those of its competition, or that is perceived to be of higher quality, warrants using which type of pricing strategy?

Premium pricing

____ relates to perceptions of value and is the most flexible element of the marketing mix.

Pricing

Which of the following is the most commonly used channel for distributing business products?

Producer, organizational buyers

Which mode of transportation hauls more freight than any other?

Railroads

Which of the following includes activities such as manufacturing, research, sales, advertising, and shipping, as well as involving all entities that facilitate product distribution?

Supply-chain management

In creating the advertising message, which of the following is not recommended when creating a slogan?

The slogan should be accompanied by a spokescharacter

Why are line extensions more common than new products?

They are less expensive and lower-risk

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

Warehouse club

Due to the use of cookies, many websites are able to track visitors when they return to their websites. This helps them track how often the visitor views the website and in what products he or she shows an interest. Some websites have capitalized on this by providing product recommendations to users when they return to their websites based on their past activity. This is an example of

addressability

The ability of a marketer to identify customers before they make a purchase is called

addressability

The use of a pull policy may require heavy expenditures for

advertising and sales promotion

When a company promotes its position on a public issue, this is specifically referred to as ____ advertising.

advocacy

Changes that affect the sensory appeal of a product by altering its taste, texture, sound, smell, or visual characteristics are called ____ modifications.

aesthetic

The three major ways to modify a product include

aesthetic, quality, and functional changes.

A product mix is best described as

all products offered by a firm

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

an advertising agency

One of the most important benefits of e-marketing is the ability of marketers

and customers to share information

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

brands that are attempting to compete with market leaders

Break-even analysis is a tool that marketers are likely to employ during the ____ stage of the new-product development process.

business analysis

Products are classified as being business or consumer products according to the

buyer's intended use of the product.

Marketing channel members are likely to experience misunderstandings, frustration, and poorly coordinated strategies as a result of

channel conflict caused by inefficient communication between channel members

The ability of a product to provide the same level of quality over time is called

consistency

The core product element

consists of a product's fundamental utility or main benefit and usually addresses a fundamental need of the consumer.

To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when

consumers perceive all products in a market to have essentially the same quality, design, and features.

The three primary bases for developing prices are

demand, competition, and cost

If a product is priced based on how many or how few people want it at a particular time and place, ____ pricing is being used.

demand-based

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n)

department store

When determining how a product is conceived, planned, produced, and even its physical appearance and its specific characteristics, one is really talking about the product's

design, styling, and features.

When establishing prices, a marketer's first step is to

develop pricing objectives.

The fact that senior citizens are charged a lower price at movie theaters than younger adults is an example of ____ pricing.

differential

Electronic media that function using digital codes are called

digital media.

A product item is a

distinct offering among an organization's products.

Vertical channel integration

is made possible by purchasing the operations of a link in the channel

Location is important to a retailer because

location determines the trading area from which the store must draw its customers.

Category killers compete primarily on the basis of

low prices and enormous product availability

As consumers become more informed about their options, the demand for

low-priced products has grown.

A marketer that wanted to include detailed information in advertisements would most likely use

magazines

Advertising that stimulates demand for a product category by informing potential customers about the product's features, uses, and benefits is called

pioneer advertising

Marketing channels create four types of utility for consumers including

place, time, possession, and form

A positive review of a product or service posted on a(n) ____________ can result in a substantial increase in sales of the product or service.

popular blog

When an organization sets a number of prices for selected groups of merchandise, this is commonly referred to as

price lining.

To determine the breakeven point in units, divide the fixed costs by

price minus variable costs

Products used directly in the production of a final product but that are not easily identifiable are categorized as

process materials.

If the push policy is used in promoting a product, the firm

promotes only to the next marketing institution down the marketing channel

The coordination of all the activities involved with the flow and transformation of supplies, products, and information throughout the supply chain to the ultimate consumer is called

supply-chain management

Drop shippers

take title to but not physical possession of the good

A merchant wholesaler

takes title to goods, assumes risk associated with ownership, and buys and resells products

Digital media have created opportunities for companies to

target specific markets

At the breakeven point,

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

Order processing is defined as

the receipt and transmission of sales order information

Multichannel distribution is characterized as

the use of a variety of marketing channels to ensure maximum distribution

Marketers call the Internet a pull medium because

users determine which websites they are going to view.

Product placement is the strategic location of products

within entertainment media content

Business products are

classified according to their characteristics and intended uses.

One disadvantage of test marketing a new product is that

competitors may copy the product.

Product placement in television shows is becoming increasingly important due to

consumers' greater ability to screen advertisements

The three major types of nonstore retailing are

direct marketing, direct selling, and automatic vending

The marketing of products to ultimate consumers through face-to-face sales presentations either at home or the workplace is called

direct selling

When a firm identifies old technologies that can be exploited in new ways or develops new business models to give customers more than they've come to expect from current products in a specific market, it is engaging in

disruptive innovation

For communication to occur, both the sender and receiver of information must

have a common understanding of the symbols, words, and pictures used to transmit information

An ad's ____ is designed to attract readers' attention and develop interest so that they will read the entire advertisement.

headline

Advertising, personal selling, sales promotion, and public relations are called

promotion mix ingredients

Price leaders, comparison discounting, and special-event pricing are applications of

promotional pricing.

Communication through the use of brochures, annual reports, event sponsorships, and news stories is referred to as

public relations

The three general types of media schedules are

pulsing, continuous, and flighting

Because practically all marketers provide some services, ____ typically do not exist in today's business environment.

pure goods

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is

quality

If a business decides to reduce its prices once in a while on an unsystematic basis, it is using

random discounting.

Convenience products are

relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.

Most pricing objectives based on ____ are achieved by trial and error because not all cost and revenue data are available when prices are set.

return on investment

Often, a new product is launched in stages during commercialization. This gradual introduction of the product is known as

rollout

A manufacturer-owned operation that provides services usually associated with agents is a

sales office

A consumer contest is an example of

sales promotion

A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a(n)

cost comparison indicator

Some promotional programs are unsuccessful because marketers fail to generate awareness of

critical issues among a significant portion of target market members

An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is

sales promotion

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called ____ products.

shopping

In contrast to industrial products, consumer products are often purchased because of

social influences

During the maturity stage

some competitors are forced out.

A narrow product mix with a deep product line would most likely be carried by

specialty retailers

Off-price retailers and category killers are both

specialty retailers

When developing an advertising campaign, benchmarks need to be included in the

statement of advertising objectives

When marginal cost is equal to marginal revenue, the firm should

stop producing additional units to maximize profits.

A retailer is an organization that purchases products for the purpose of reselling them to

ultimate consumers

Competition-based pricing is

used when costs and revenues are secondary to competitors' prices.

Communication can be viewed as a circular process because

during feedback, the receiver can be viewed as the source of the message while the original source becomes the receiver