Marketing 380 Exam 2
Jill needs to motivate her promotion team to focus not just on individual messages, but on the benefits of integrating all of the firm's marketing communications. Choose the benefits that Jill should discuss.
-Creating a unified brand personality -Achieving competitive advantage based on synergy -Looking at the components of the promotion mix from the customer's point of view
Getting ready to open Jim's Juice Bar, the owner has identified a target market: Jim will market to young professionals aged 18-34 who live within a certain distance of the store. In the next step of his marketing strategy process, Jim must specify elements of the retailing mix. These include all of the following except:
-Employment plan -?
Jim plans to rent a car during an upcoming business trip to Dallas. He expects to pay a rental rate similar to what he was charged last year in the same city. However, he could be persuaded to pay more under certain conditions. Which of the following conditions might influence Jim to pay more?
-He is offered an eco-friendly hybrid car. -He is offered a Range Rover or other top quality car at only a small premium.
You are in charge of developing profit centers for a new chain of waterside resorts. These will include restaurants, spas, and marinas. To ensure the proper use of transfer pricing within the organization, the company accountant has provided a list of relevant questions for you to answer. Which of the following questions appear(s) on her list?
-What rate should be charged by restaurant cleaning crews to mop the floors in the spas? -Should the spas charge resort employees who use its facilities the same access fee charged to guests? -When the restaurants rent boats for special dinners, what rental rate should be charged by the marinas? -When resort employees eat in the restaurants, should they pay the same menu prices as guests?
Sue is the daughter of a salesman, but she knows that her job in the same field will be different from her father's. Unlike many sales professionals in the past, Sue is likely to experience:
-Working in a team -A more dominant role for personal selling in the marketing mix -Prioritizing customer service over quick sales
Garden Wholesalers is a wholesaling intermediary representing manufacturers of home gardening tools. Choose the example(s) of utility this firm creates for consumers.
-Makes spades, pots, and other items available during prime planting seasons -Helps deliver young trees to local nurseries
A consultant has offered to help your team build mobile apps. She starts by explaining QR codes. Which of the following points does she make?
-Some mobile phones are equipped with dedicated QR readers. -QR stands for Quick Response
A 5 percent increase in the price of milk that results in a 2 percent decrease in the quantity of milk demanded yields a price elasticity of demand for milk of:
0.4
Drew is a sales manager with Fastenal - an industrial distributor of supplies for manufacturing, facility managers, and other industrial customers. He currently supervises 7 people and is wondering the typical or optimal number of first-line sales representatives that he should supervise. Based on the text, what do you recommend as the optimal number for him to supervise?
6
Which of the following wholesaling intermediaries delivers goods to the consumers?
A commission merchant
Which of the following is an example of a volume pricing objective?
A market-share objective
Which of the following is an example of a specialty store?
A men's shoe store
Which of the following statements is true of venture teams?
A venture team's flexible lifespan may extend over a number of years.
Which of the following terms refers to the combination of physical characteristics and amenities that contribute to a store's image?
Atmospherics
Which of the following statements is true regarding the maturity stage of the product lifecycle?
During this stage differences between competing products diminish.
Which of the following best describes the function of social media tools?
Enable users to communicate with each other online
_____ explains that motivation depends on the aspirations people have of their ability to perform a job, and how performance relates to attaining rewards they desire.
Expectancy theory
During the maturity stage of the product lifecycle, the industry sales curve for a product reaches a minimum point as competitors exhaust the supply of potential customers.
False
Transportation and delivery expenses typically account for 25 percent of the cost of a product.
False, 10%
Which of the following categories of organizations is most likely to have the longest distribution channel?
Firms producing nonperishable consumer goods
Which of the following is the first main activity involved in benchmarking?
Identifying the strengths and weaknesses of a firm's internal processes
Which of the following is a principal method used in sales training?
In-house classes
Samsung is set to launch a new model of smartphones. Which of the following types of promotion should the company use to drive initial sales for its new model?
Informative advertising
Which of the following distribution strategies seeks to distribute a product through all available channels in a trade area?
Intensive distribution
Which of the following statements is most likely to be true about a convenience retailer?
It appeals to customers by having an accessible location, rapid checkout, extended store hours, and adequate parking.
Which of the following is a major disadvantage associated with the skimming pricing strategy?
It attracts competition as potential competitors enter into the market observing the high financial returns obtained by innovative firms.
Which of the following is true of an IMC strategy?
It begins with consumer wants or needs.
Which of the following actions can the Consumer Product Safety Commission (CPSC) take to ensure product safety?
It can order product recalls or redesigning of faulty products.
Which of the following is true about a social media marketing plan?
It identifies and describes methods for monitoring, measuring, and managing the SMM effort.
Which of the following is true of pure competition?
It presupposes a market condition where sellers produce homogenous products.
Which of the following is true with regard to managing a social media marketing campaign?
It requires knowledge of the benefits and drawbacks of the different social media platforms.
Which of the following products is most likely to be promoted through advertisements rather than through personal selling?
Laptops
_____ are increasingly taking on the role of channel captain within many distribution networks.
Large-scale retailers
Which of the following statements is accurate about sales promotion?
NOT -Sales promotion has increased dramatically, primarily at the expense of personal selling.
Scott has an 8-year-old Labrador Retriever who's starting to suffer from arthritis. On a recent trip to his veterinarian, the doctor recommended that Scott start using a prescription anti-inflammatory and pain medication for his dog. The veterinarian thinks a new drug, Previcox is extremely effective but relatively expensive at $1 per dose which is given daily. The drug sales representative has provided the veterinarian with a promotion opportunity where new customers can receive a VISA gift card of $12 when a new prescription is filled. The drug company is offering the veterinarian and their customers a(n):
NOT coupon
The first step in the sales process is to:
NOT approach the potential customer determine the potential customers
What is the major determinant of a successful salesperson?
NOT -He or she aspires to higher career goals.
Demand for the hiking sandals marketed by the SoftShoe Company is highly elastic. As a pricing strategy consultant, you have been hired to help the firm reduce this elasticity. Choose the recommendation you would be least likely to make.
NOT Promise to undercut the price of any comparable brand.
The use of social media in marketing and other aspects of business is expected to continue to grow exponentially over the next decade. Many great career opportunities currently exist in the field, and others will be created as the market evolves. You are excited about the career possibilities in this new field and you have been preparing yourself to take advantage of them. You did a self-assessment and determined that you would love to be the person who is responsible for running a firm's total social media program. Given this, which of the following social media jobs should you pursue?
NOT brand manager
Which of the following is the most widely used Internet function?
NOT internet
The logistics manager of a major manufacturer is aware that there is a lack of communication and coordination among the physical distribution departments that he is overseeing. Specifically, the materials handlers are lobbying upper management for a packaging system that would make their department more efficient; but it would increase costs for other departments exponentially because of the adjustments they would need to make to accommodate the new packaging system. There is certainly room for discussion on the matter for the future but, for now, the manager has to ward off a problem that threatens to be serious. What is the manager's concern?
NOT logistics
Some supermarkets now offer in-store bank branches, photography studios, and Starbucks or Dunkin' Donuts outlets. This is an example of:
NOT supercenters
In order to ensure that it gets the most out of its social media marketing efforts, a firm needs to create a social media marketing (SMM) plan. An effective SMM plan should begin with:
NOT -The company's methods for monitoring, measuring and managing the plan efforts -A budget for the SMM initiative
Which statement best describes the similarities between retail convergence and scrambled merchandising?
NOT Both terms describe the practice of offering very dissimilar products at the same location in the hope of increasing overall sales.
You face a key decision for your swimwear store: whether or not to add an e-commerce site where consumers can directly purchase your products. You should weigh all of the following characteristics of e-commerce selling except:
NOT E-commerce selling is rarely used in conjunction with selling at brick-and-mortar stores.
You have been assigned the overwhelming task of managing all your firm's products in the decline stage. Which of the following steps are you least likely to take?
NOT develop strategies to identify a new target market and/or new customers
Your small retail outlet prides itself on selling environment-friendly premium coffee products. You purchase your beans from roasters who sell only fair trade-certified, Rainforest Alliance-certified, and organic-certified coffees. In fact, you are part of a co-op that assists small farmers through the certification process with grants and education. What vertical marketing process are you employing in distributing your products to your customers?
NOT functional integration
Dmitri recently opened a sporting goods store. There are several other sporting goods stores in his town, all of which have been open for several years. These rival businesses offer reasonably priced goods as well as such "extras" as appointments with equipment consultants, in-house equipment personalization, and special ordering of items not included in the regular store inventory. Dmitri knows that he needs to make his new business stand out if it is going to compete successfully with the established businesses.According to the wheel of retailing, what strategy would help Dmitri gain a foothold for his business in the local sporting goods market?
NOT offer a service that none of his rivals offer
A manufacturer of tablet computers has designed a unique new product that can network with satellites to access streaming video and television channels. This device does not need a Wi-Fi connection and can be accessed anywhere in the world by logging onto the site. Besides serving as a portable computer, this device bypasses the need for a consumer to purchase cable or personal satellite dish access. Which approach to pricing makes the most sense for the company to use first?
NOT set the price extremely low in order to capture more of the current market share
_____ refers to a company's messages about general management issues.
Nonmarketing public relations
Which of the following is a characteristic of a corporate culture that encourages ethical behavior?
Open communication exists between employees and managers.
Which of the following types of advertising is most likely to be used during the growth stage and the early part of the maturity stage of the product lifecycle?
Persuasive advertising
What types of utility are created by wholesaling intermediaries when they make a product available at a convenient location at the moment it is needed by the customer?
Place and time
When Microsoft introduced the latest edition of Age of Empires III, it provided a free download of one of the game scenarios. Addition of this link is most likely to influence which of the following characteristics of the product innovation?
Possibility of trial use
A bundle of physical, service, and symbolic attributes designed to satisfy a customer's needs and wants is called a(n):
Product
Which of the following is true of specialty products?
Purchasers begin shopping with complete information of the desired product.
New technology is being utilized by retail operations to reduce the amount of time to track inventory and record shipments. Companies such as Target and Walmart now require suppliers to attach a tiny chip with identification information to pallets and cases of products. This technology is called:
RFID
Which of the following is the most effective way for a sales manager to motivate salespeople to give their best?
Recognizing their efforts and offering simple incentives
Which of the following types of advertising is most likely to be used in the latter part of the maturity stage and throughout the decline stage of the product lifecycle?
Reminder advertising
_____ is a technology that secures a website by encrypting information and providing authentication.
SSL
Gourmet restaurants and fast food chains cater to the same want satisfaction-a place to eat. However, at the gourmet restaurants you experience finely prepared cuisine served by a highly trained wait staff while at the fast food chains you may have to serve yourself. Which of the following characteristics of services best represents this difference?
Service standards show wide variations.
Christopher who is a hair stylist owns Curlz, the best salon in Los Angeles. The clients swear by Christopher, and brides and bridesmaids flock to him for all weddings in LA. Christopher's name has become synonymous with the service at Curlz. Which of the following characteristics of services best explains this association?
Services are inseparable from the service providers.
_____ typically have a long marketing channel.
Standardized products
Cumulative quantity discounts tend to bind customers to a single supply source.
TRUE
Which of the following exempted interstate fair-trade contracts from compliance with antitrust requirements, thus freeing states to keep these laws on their books if they so desired?
The Miller-Tydings Resale Price Maintenance Act of 1937
According to the text, which of the following factors has led to increased use of the Internet for making purchases by consumers in China?
The availability of local online payment systems.
You've attempted to maximize profits on sales of your bakery's gluten-free bread by taking a number of steps: for example, by responding quickly to competitors' discounts, setting target return objectives, and marketing the product as a necessity for people who are allergic to wheat. Unfortunately, profits still haven't reached your goals. You hope to explain the disappointing results to your partners in a way that won't reflect poorly on your marketing judgment. Which of the following explanations do you choose?
The demand curve for the product is unclear.
The A.G. Harding company has been charged with price discrimination under the federal Robinson-Patman Act. Which of the following would be the best defense against the charge?
The price differential is justified as they do not exceed the cost differences resulting from selling to various classes of buyers.
Now that you're working in a physical distribution capacity, you need to understand the differences among freight carriers. Primarily, your company delivers its goods via FedEx, UPS, and the United States Postal Service. These carriers have the following properties in common:
They are common carriers.
Which of the following is most likely to be true of hypermarkets?
They are giant one-stop shopping facilities that offer wide selections of grocery and general merchandise products at discount prices.
Which of the following is true of pipelines as a transportation alternative?
They can accommodate shipments of only a small number of products.
Which of the following is true of private carriers?
They do not offer services for hire.
Which of the following is true of contract carriers?
They establish agreements with individual customers and operate exclusively for particular industries.
Which of the following is most likely to be true of consumer innovators?
They often act as opinion leaders from whom others seek advice.
Which of the following is true of the role of distribution channels in a firm's marketing strategy?
They standardize exchange transactions by setting expectations for products including the transfer process itself.
_____ make regular deliveries to retailers, perform sales and collection functions, and promote product lines.
Truck jobbers
Homeshoring is the practice of hiring workers to do jobs from home.
True
Which of the following is a posttest that assesses advertising effectiveness after it has appeared in a print or broadcast medium?
Unaided recall test
Which of the following functions as a manufacturer's representative?
a broker
Which of the following wholesaling intermediaries carries inventory?
a commission merchant
Which of the following comes closest to providing pure service?
a fitness gym
Which of the following marketing intermediaries will most economically cover the markets for products sold in small units?
a merchant wholesaler
Most firms that use a customer-oriented organizational structure to strengthen their relationship with the largest customers adopt:
a national accounts organization
Adecco systems has a website service which allows the company to interact with its suppliers and share all types of data related to e-marketing. This innovative website can be regarded as:
a private exchange
Lakeview Industries contracts with Marine Motor Distributors to sell their newly patented outboard engine. In exchange for exclusive dealership rights, Marine Motor has agreed to carry the full line of boating accessories offered by Lakeview. This arrangement can be described as an example of:
a tying agreement
Rigala.com is an online shopping store that sells a wide variety of products. The company saves the shipping information of customers when they place orders to save time during future purchases. The company sends an email to the customer after the purchase of the product and provides a tracking number that allows them to track their order. All these strategies have helped the company to increase the sale of their products online. Which of the following features of online shopping is attracting consumers to the website in the above scenario?
access and convenience
A VMS that achieves channel coordination when a dominant channel member exercises its power is called a(n) _____ marketing system.
administered
Which of the following terms refers to a series of stages consumers go through in learning about a new product, trying it, and deciding whether to purchase it again?
adoption process
Which of the following is a marketing intermediary who may or may not take possession of the goods but never takes title?
agent
Which of the following modes of transportation is the costliest?
air freight
Fresh, a company that manufactures personal care products such as soaps and shampoos, decides to produce and market dishwashing liquid and cleaners. This decision of the company represents:
an increase in product mix width.
The criteria for sales evaluations have changed to include customer satisfaction, profit contribution, and customer retention as measures of success. This change was motivated by:
an increasingly long-term orientation that results from greater quality management and customer relationship building efforts.
Hootsuite is a social media management software that allows users to manage multiple social network profiles, keep track of brand mentions, and send regular updates to their Twitter account. Hootsuite is an example of a(n) _____
app
Snaptell allows shoppers to retrieve more information about products while shopping in brick-and-mortar stores. It is an example of a(n) _____.
app
In the _____ stage of the sales process, the salesperson contacts the potential customer for the first time.
approach
Sales promotion techniques were originally intended:
as short-term incentives aimed at producing immediate buying responses.
Vending machines are an example of:
automatic merchandising
Fastenal was one of the first business-to-business suppliers to offer vending machines or kiosks in manufacturing facilities to enable their customers' employees to "purchase" supplies such as gloves and safety equipment including goggles, ear protection, and masks. This innovation enabled the customers to track their purchases and hold employees accountable for using supplies. This is an example of:
automatic merchandising
Your insurance firm depends on trained telemarketers to sell its policies. After a bad experience with a call center overseas, the company has set aside a large space in its headquarters which all its callers will use. Your firm is now engaged in:
backshoring
The process through which a manufacturer attempts to gain greater control over inputs in its production process, such as raw materials, is called _____ integration.
backward
The owners of an organic restaurant have purchased the farm that supplies their fresh herbs and vegetables. This is an example of which type of vertical marketing system or process?
backward integration
Which of the following products is most likely to have a long distribution channel?
bars of soap
People are asked to select unidentified products on the basis of available advertising copy in a(n):
blind product test
Odyssey is a website where the host regularly posts photos and articles on his favorite travel destinations and his experiences therein. Users of the site are allowed to respond or post comments on these articles. Odyssey is an example of a _____.
blogging site
Which of the following elements of a print advertisement focuses on informing, persuading, and stimulating buying action?
body copy
The pricing technique used to determine the number of products that must be sold at a specified price to generate enough revenue to cover total cost is known as _____ analysis.
breakeven
A Swedish telephone maker transfers phones costing $10 to produce to its U.S. subsidiary for a transfer price of $20. The U.S. subsidiary sells the phones to retailers for $25 each and spends $5 per phone in promotion and distribution expense. The U.S. subsidiary:
breaks even on the deal because it spends all its revenues.
An independent wholesaling intermediary who brings together buyers and sellers but represents only one of the parties and receives a fee when the transaction is completed is a ______________.
broker
Which of the following financial incentives is designed to give retailers discounts on goods?
buying allowance
A company introduced a new low calorie version of one of its popular cold drinks. As a result, the sales of the original cold drink started decreasing because consumers preferred its low calorie version. This situation is known as:
cannibalization.
Walmart is the largest retailer in the world and is known for being very demanding with its suppliers. Walmart exerts control over its suppliers due to its large size and buying capacity and manufacturers often acquiesce to the demands made by Walmart. Walmart is an example of a channel _______.
captain
Possession utility can occur even if the actual title is not transferred, as in the case of:
car rentals
The price reduction offered to a customer, business user, or marketing intermediary in return for prompt payment of a bill is called a _____ discount.
cash
Paisley Lane Soaps recently contracted with a chain of grocery stores to provide organic bar soap to the chain. These volume orders are the company's first commercial venture as they have primarily sold directly to consumers. Typically, Paisley Lane Soaps charges $6 per bar of soap but has contracted with the grocery store chain for $3.50 per bar. In addition, Paisley Lane Soaps has negotiated a 2% discount on the order if the grocery store chain pays in full within 10 days of product delivery. This practice is called:
cash discounts
_____ have profit responsibility for their product group and help retailers in maximizing the sales for the whole group of products not just the particular manufacturer's product.
category managers
Best Transport Solutions provides trucking services to various furniture manufacturers. The regular rate that Best Transport would charge for moving furniture from a company's warehouse to a specific retail store is referred to as the _____ rate.
class
Clarke's, a popular and high-end brand of men's formalwear, has just five main distributors to cater to the five zones in the country: north, south, east, west, and central. According to the information given in this case, Clarke's uses:
closed sales territories
Which of the following terms represents businesses that provide transportation services as for-hire carriers to the general public?
common carriers
A _____ contains around 10 to 30 retail stores with a branch of a local department store or some other large store as a primary tenant, and it serves 20,000 to 100,000 people in a trading area extending a few miles from its location.
community shopping center
A new product innovation that is consistent with the values and experiences of potential adopters and attracts new buyers at a relatively rapid rate is said to have high _____.
compatibility
Retailers such as Home Depot and Lowe's, who offer to meet and beat the best price offered by their competitors, use the strategy of _____ pricing.
competitive
The _____ of a social media marketing plan examines and evaluates the competitors' presence in social media, including the platforms and tools they select and their overall effectiveness.
competitive analysis
The process by which buyers ask a number of potential suppliers to submit price quotes on a proposed purchase or contract, of which the lowest will be accepted, is called:
competitive bidding
Which of the following is a method for subjecting a product idea to additional study before actual development by involving consumers through focus groups, surveys, in-store polling, and similar strategies?
concept testing
Jose is visiting Boston on a business trip and has heard that the North End is known for its restaurants and entertainment venues. He checks TripAdvisor to see the list of restaurants and those rated highest by members. He also reads reviews and narrows his choice to Mamma Maria's which is ranked #3 of 133 restaurants in the North End. How has TripAdvisor assisted Jose in his purchasing decision process?
conducting research
Individuals who purchase new products almost as soon as these products reach the market are called _____.
consumer innovators
Most people don't think of what they purchase from their yoga instructor as a product. But because you're a marketer, you realize that a yoga class is a product because it delivers _____.
consumer want satisfaction
When a logistics manager combines several unitized loads into a single, well-protected load for shipment, it is called:
containerization
Jason's Foods is a manufacturer of organic food products. The company is planning to market its products through social media sites and has developed effective strategies for the marketing campaign. The marketing team plans to use messages that focus on the health benefits of organic foods in order to generate greater awareness about its products and engage its target audience in the conversation. In doing so, the marketing team of Jason's Foods would be engaging in _____.
content marketing
Matt Reed works for the marketing team at a mobile manufacturing company and is responsible for creating content and generating discussions on social media sites regarding the company's product releases and other lifestyle conversations. His responsibilities in the marketing team are similar to those of a _____.
content programmer
A VMS that coordinates channel activities through formal agreements among participants is called a(n) _____ marketing system.
contractual
Casey's General Store is a popular ______-type retailer offering gasoline, snacks, extended store hours, and rapid checkout service.
convenience
Consumer goods such as soap, milk, and deodorants are generally classified as _____ products.
convenience
_____ are software used by online companies to automatically collect data from Internet browsers in order to track their customers' shopping and viewing habits.
cookies
A vertical marketing system (VMS) in which a single owner operates the entire marketing channel is called a(n) _____ marketing system.
corporate
Before a multi-state computer company can charge for onsite computer repairs for the business's computer equipment, the company needs to establish __________.
cost centers
With regard to sales promotion, magazines, newspapers, and package inserts are the standard methods of distributing:
coupons
While developing a social media marketing campaign, marketers can make it easy for potential customers to participate in the conversation by:
creating a specific landing page for the marketing campaign.
Analysis has shown that ingredients account for less than 5 percent of a perfume's cost. So if a perfume costs $135 or more per ounce, it reflects the marketer's adoption of a pricing objective that focuses on:
creating image or prestige
When a considerable amount of analytical decision making by the customer is involved in purchasing a product or service, the salesperson will probably use:
creative selling
You are conducting interviews for new sales representatives for your electronics firm. You are primarily looking for candidates that you believe can be successful in developing new business and selling to new customers. Your current staff is full of sales representatives who are exceptional at generating repeat sales. You will be looking for personal sales personnel who are proficient in which kind of sales task?
creative selling
You are conducting interviews for new sales representatives for your electronics firm. You are primarily looking for candidates that you believe can be successful in developing new business and selling to new customers. Your current staff is full of sales representatives who are exceptional at generating repeat sales.You will be looking for personal sales personnel who are proficient in which kind of sales task?
creative selling
The sales manager of your fitness center has convinced several members to buy the center's nutritional counseling service as well as its personal training package. You are pleased at this accomplishment in ____ selling.
cross
When marketing partners share the cost of a promotional campaign that meets their mutual needs, they are said to be engaged in:
cross-promotion
Sherwin Williams develops strong relationships with contractors and facility managers to develop loyalty and encourage them to purchase a majority of their paint and supplies from the store. Sherwin Williams provides incentives to contractors and bases prices according to the volume of paint a contractor purchases within a given quarter. Sherwin Williams includes the cumulative volume purchased on each invoice so each contractor can track their purchases and estimate the amount of rebate or refund they could earn at the end of each quarter. Sherwin Williams is utilizing a(n):
cumulative quantity discounts
When shifts in consumer preferences bring about an absolute slump in industry sales, a product is said to be in the _____ stage of the product lifecycle.
decline
_____ are the retail stores that incur relatively high operating costs because of the wide range of services they offer.
department stores
Variations in each product a firm markets in its mix are referred to as the _____ of its product mix.
depth
The process of qualifying a sales prospect involves:
determining a potential customer's needs, income, and purchase authority.
After identifying a target market, a retailer must:
develop marketing strategies to attract chosen customers to its stores or websites.
American Siding and Windows uses a team of inside sales representatives to contact homeowners by telephone and schedule appointments to provide free estimates on home improvement projects such as new windows, sun rooms, siding and awnings. The company's promotional efforts can be classified as:
direct marketing
David is recently divorced and his ex-wife took most of their kitchen equipment when she relocated. He's decided to host a Pampered Chef party and invite friends who enjoy cooking. He knows that they will enjoy sampling various dips and dishes and will likely buy an item or two. He can purchase Pampered Chef items at a discount and may even earn free items as a benefit of hosting the party. Pampered Chef is classified as a(n):
direct slaes retailer
A _____ charges low prices and offers fewer services.
discount house
A mail-order wholesaler is a limited-function merchant wholesaler that:
distributes catalogs instead of sending sales representatives to contact customers.
John works for an ice-cream manufacturer. His department focuses on keeping the finished products fresh as well as ensuring that they reach the retailers on time as the products are highly perishable. In addition, his department decides on which flavors of ice cream should be sent to which retailers in various trade areas. John is most likely involved with:
downstream management
AAA Insurance Company specializes in property and casualty insurance for individuals such as automobile and home insurance. The company has their own branch offices across the United States with representatives who only market AAA insurance policies. In addition, consumers can get quotes and purchase via the AAA web portal. AAA Insurance also works with independent insurance agents as a way to maximize their coverage in the marketplace. AAA insurance is utilizing ______.
dual distribution
In addition to traditional drug stores, Dr Scholl's foot care company sells its products through convenience stores as well as through telemarketing to podiatrists. Which of the following is being employed by Dr Scholl's foot care company to sell its products?
dual distribution
Big Martin Corporation uses its website to target customers and promote its products. Big Martin is engaged in:
e-marketing
In the context of the analysis of sales tasks, when technical support personnel help to install, set up, and maintain equipment for one of their customers, they are:
engaging in missionary sales activities.
At the _____ stage in the consumer adoption process, buyers consider the likely benefits of the product.
evaluation
Bremer Jewelry has two locations in Illinois within 60 miles of each other and is the only jewelry store to carry the Hearts on Fire diamond jewelry line. Bremer has negotiated with Hearts on Fire to be the only retailer within a 150-mile radius of both store locations and believes that this arrangement provides a competitive advantage to the store. What type of distribution does Bremer Jewelry have with Hearts on Fire?
exclusive distribution
Which of the following distribution strategy seeks to distribute a product through a single wholesaler or retailer in a specific geographic region?
exclusive distribution
Secure networks used for e-marketing and accessible through a firm's website by external customers, suppliers, or other authorized users for purposes of collaboration are called:
extranets
A blind product test is a method of posttesting the effectiveness of advertisements and during this method respondents do not see copies of the magazine after their initial reading but are asked to recall the ads from memory.
false
A blogging site is a social media platform where users post news items and hold conversations on specified topics.
false
A bonus pack is an item given free or at a reduced cost with purchases of other products.
false
A cash-and-carry wholesaler performs most wholesaling functions including financing and delivery.
false
A college education is an example of a pure product on the goods-services continuum.
false
A customer shopping at Sports Authority for new running gear is assisted by a salesperson in the shoe department. This is an example of inside selling.
false
A dual pricing strategy provides more flexibility to set prices with changing market conditions than a market-differentiated pricing strategy.
false
A full-service retailer usually sells convenience products that people can purchase without any assistance.
false
A grocery store places tags on shelves just below the products that list the product name, UPC number, a store code, and the regular price of the product. This regular price is called the market price.
false
A leader merchandise is a product offered by retailers to customers at less than cost to attract them to stores.
false
A market development strategy concentrates on developing new products for existing markets.
false
A meat packing unit's downstream management would oversee storage and warehousing of meat as well as the transportation of the meat to its plant where it is processed and packed.
false
A price of $ 9.97 is less likely to appeal to customers than $ 9.95 or $ 9.99.
false
A skimming pricing strategy is commonly used as a market entry price for distinctive goods and services with high initial competition.
false
A standard worldwide pricing policy is more likely to succeed in foreign markets with high marketing costs.
false
A supercenter is usually larger than a hypermarket.
false
A sweepstakes chooses winners from a group of people who have purchased the product.
false
A tourism ad promoting Vermont as a winter holiday destination is an example of product advertising.
false
A value-added service is a basic service that customers normally receive and expect.
false
All companies follow a standard format for social media marketing plans.
false
All firms attempt to maximize profits.
false
Although developing a commercial website with interactive features can cost as little as $30, putting it online can cost tens of thousands of dollars a month for a spot on the server of a Web host.
false
An agent, who connects small companies with the consumers, always takes possession of the goods as well as the title.
false
An effective salesperson uses order-processing techniques to expand an existing business relationship.
false
An online community manager is the primary decision maker who runs the firm's social media program.
false
Antitrust legislation has eliminated all monopolies including the temporary monopolies, such as those created through patent protection.
false
Basing-point pricing policy always calculates the freight charges from the point or location from which the goods are actually shipped.
false
Business and government purchasers often legally enter into contracts with favored suppliers instead of using competitive bidding.
false
Compared to first adopters, later adopters rely more heavily on impersonal information sources while purchasing new products.
false
Compared with personal selling, advertising, and sales promotion, expenditures for public relations usually are high in most firms.
false
Consultative selling involves offering multiple goods or services to the same customer.
false
Consumer innovators are individuals who rely on the experiences of initial buyers before making trial purchases.
false
Cost per impression is a direct marketing technique that relates the cost of an ad to the number of people who click it.
false
Creative selling mainly deals with maintaining existing business with customers.
false
Direct-response retailing does not include home shopping that sells merchandise through telephone orders.
false
Due to intense competition in the market, present-day sales promotion techniques mainly focus on providing short-term incentives to customers in order to obtain a purchase.
false
Everyday low pricing is a pricing strategy that relies on short-term cost-cutting tactics such as coupons and rebates.
false
Exclusive distribution allows greater market coverage than any other distribution strategy.
false
Exporters who adopt market-differentiated pricing seldom change the price of their products.
false
Freight carriers often charge class rates as a reward for either regular business or a large shipment.
false
Full-cost pricing allocates fixed costs that can be directly attributed to the production of the specific priced item.
false
Guerilla marketing is an expensive marketing technique.
false
If a product or service being sold requires relatively little special handling, marketers typically emphasize personal selling in their promotional mix.
false
If consumers can easily find close substitutes for a good or service, the product's demand tends to be inelastic.
false
In the case of convenience stores, customers usually compare prices, assortments, and quality levels at competing outlets before making purchase decisions.
false
Increased competition in the marketplace forces an innovative company to bring down the price of a product even lower than its eventual level under a nonsequential skimming procedure.
false
List price is the amount the consumer actually pays for a product.
false
Majority of e-marketing activities are business-to-consumer transactions.
false
Marc is a wholesaling intermediary who brings buyers and sellers together, sometimes representing buyers and sometimes representing sellers, but never both in the same transaction. This information indicates that Marc is a commission merchant.
false
Marketers who have adopted a product-line pricing strategy have one major advantage in that they have no difficulty making price changes on individual items.
false
Marketing channels increase the number of marketplace contacts necessary to make a sale.
false
Message research assesses how well a particular medium delivers the advertiser's message, where and when to place the advertisement, and the size of the audience.
false
Most buyers prefer basing-point pricing policies compared to other policies used by sellers to handle transportation costs.
false
Most of the specialty stores are chain outlets with large-scale operations.
false
Motor carriers concentrate on shipping raw materials while railroads typically haul bulk shipments of manufactured products.
false
Not-for-profit organizations tend to distribute their products through long, multi-level channels using wholesalers as intermediaries.
false
Other things being equal, stores that offer more services charge smaller markups to cover their costs.
false
Patients cannot sue a pharmaceutical company over the alleged defects of its products, if the FDA has approved the use of the medication.
false
Paul and Amanda have 6 season tickets to the St. Louis Cardinals - a major league baseball team. During the season, they often offer their unused tickets to the highest bidder - especially when the Cardinals play the Chicago Cubs. This practice, known as "scalping" is illegal in all US cities.
false
Penetration pricing is likely to be utilized when demand for a good or service is highly inelastic.
false
Personal selling and advertising are part of the marketing activities involved in a sales promotion.
false
Phishing is the voice equivalent of vishing.
false
Pipelines can accommodate shipments of a large number of products.
false
Precall planning involves making unsolicited sales calls on randomly selected prospects.
false
Proactive MPR responds to an external situation that has potential negative consequences for an organization.
false
Product strategies are essentially the same for consumer and business markets.
false
Public relations efforts such as publicity frequently offer lesser credibility than other promotional techniques.
false
Pure-play e-retailers, even with no real experience of selling and satisfying customers, have been more successful than traditional retailers who entered e-business.
false
Rebates are usually granted to customers by retailers.
false
Sales offices carry inventory and process orders for customers from available stock.
false
Sales promotions often lead to sales and profit growth in the long run.
false
Service firms market primarily through long distribution channels.
false
Shopping products typically cost less than convenience purchases.
false
Social media marketing seeks to control the content and message received by the audience.
false
Specialty retailers typically attract customers by offering the products at the lowest possible prices.
false
Step outs occur when a company refuses to participate in price escalation between competitors.
false
Taking steps to determine that a potential customer has the need, financial capability, and authority to make a purchase is called canvassing.
false
Team selling is usually a temporary arrangement intended to serve the customer from the initial contact through the initial sale.
false
The biggest advantage of a physical distribution system is that its components are independent and hence, a decision in one area is unlikely to affect the functioning of the other components.
false
The content programmer of a social news site decides which news postings get the most prominent display on the site.
false
The decision about whether to delete products from the product line is usually faced during the late growth and early maturity phases of the product lifecycle.
false
The effectiveness of a salesperson is measured entirely on the basis of the sales volume and profitability.
false
The pricing strategies seldom influence consumer perceptions of a retailer.
false
The seller's image is very important for those marketers who sell convenience products.
false
The supply chain begins with the movement of finished products through the marketing channel to customers.
false
The term "societal marketing" refers to buyer-seller communications in which the customer controls the amount and type of information received from a marketer through such channels as the Internet and virtual reality kiosks.
false
The term "tariff" refers to the tax exemption granted to domestic producers in order to increase their competitiveness in the international markets.
false
Web services require compatible hardware and software systems to exchange data over a network.
false
When a manufacturer of vinegar, ordinarily used as a food ingredient, promotes its use as a metal cleaner, the manufacturer is attempting to extend the product's lifecycle by changing its package.
false
When a producer grants exclusive rights to a wholesaler or retailer to sell its products in a specific geographic region it practices intensive distribution.
false
When the elasticity of demand or supply is greater than 1.0, then that demand or supply is said to be inelastic.
false
Wholesaling intermediaries are specialists in production or manufacturing functions.
false
It's often less expensive to attract new customers than to market different products to existing customers.
false
When a major pharmaceutical scandal shook people's belief in the Federal Drug Administration, the public relations department devised an IMC strategy to positively influence public perception. An evaluation of the effectiveness of the IMC strategy reported a positive change in the public perception of the government agency. In the context of the communication process, this change in perception represents _____.
feedback
When potential buyers call up to place their orders after seeing a telemarketing promotional message for a product, it is an example of:
feedback
Bits Inc., a manufacturer of server processors, sends out its trained salespeople to inform prospective and existing customers about its latest range of processors and provide demonstrations. The promotional effort adopted by this company is an example of:
field selling
Carlos has always been interested in the medical profession and took advanced biology and human anatomy courses in college so he could pursue his dream of working in the medical device industry. He's now employed with Stryker who is a leading medical device company offering specialized products such as artificial joints and surgical tools. Carlos works in the orthopedics division and often demonstrates his company's products with surgeons in the operation room at hospitals and enjoys the opportunity to train physicians on new equipment or devices. Carlos has an office in his apartment and works with physicians, hospitals and medical offices in his 2-state territory. Stryker provides a company car, computer, and expense account so Carlos can minimize his out-of-pocket expenses when traveling to meet with prospects and customers. Which of the following sales channels is most appropriate to describe Carlos' position with Stryker?
field selling
The most expensive sales method overall is:
field selling, largely because of the travel costs of sales personnel.
Promoting the use of oatmeal as a cholesterol reducer and antacids as a calcium supplement are most likely to be examples of extending the lifecycle of the product by:
finding new uses
Aaron Corporation is an insurance firm that provides a range of consumer directed health insurance products. The company has detailed personal information of its patients including their date of birth, email address, health related and occupation details, and address. Which of the following types of software can the company use to protect the consumer information from hackers?
firewall
To prevent intrusions, companies install combinations of hardware and software called _____ to keep unauthorized Web users from tapping into private corporate data.
firewalls
Which of the following is TRUE regarding the use of advertising when products are in the maturity phase of the product lifecycle?
firms typically reduce advertising and sales promotion expenditures
Firms may also choose to introduce new products into markets in which they have already established positions to try to increase overall market share. These new offerings are called _____ brands.
flanker
The process through which a firm attempts to control downstream distribution is called _____ integration.
forward
Macy's focuses on fashion-oriented merchandise, backed by a complete array of customer services. Hence, Macy's can be regarded as a:
full-service retailer.
A retail establishment that carries a wide variety of product lines, stocking all of them in some depth is referred to as a _____.
general merchandise retailer
To be most effective, a firm's social media marketing campaign should be well-structured, and it should include a number of key phases. The first phase of the campaign should be ___________. The last phase of the plan should be _______________.
goal setting; measurement
Jesse would never have thought that his own trademarked children's toys would be flooding a parallel market and competing against him. Now he needs to contact his attorney to see what remedy he has in order to mitigate his damages. What kind of marketing channel conflict is Jesse experiencing?
gray market conflict
Mobile computer tablets were introduced a few years ago. Due to its increasing popularity and high profit levels, the number of companies making these tablets has increased. At the same time, differentiated products for different market segments have begun to emerge. Mobile computer tablets appear to be in the _____ stage of the product lifecycle.
growth
In which stage of a product's life cycle is the firm focused on establishing and fortifying the product's market position by encouraging brand loyalty?
growth stage
In an attempt to expand viewership of the television show Mystery Science Theater 3000 in its early days, the producers encouraged viewers to make copies of the show on videotapes and give them to friends. The closing credits included the words "Keep circulating the tapes!" This is an example of:
guerrilla marketing
Wholesaling intermediaries create place utility by:
helping deliver goods and services for purchase at convenient locations.
Direct-response retailing that runs promotions on cable TV networks to sell merchandise through telephone orders is called:
home shopping
Ramon is a sales representative for a medical device company and works with orthopedic surgeons. During his discussions with surgeons about their work and the type of tools or devices that would help them perform better, he began to receive several interesting suggestions that Ramon passed along to the new product development team. What stage in the new-product development process does this represent?
idea generation
There are six phases in the new product development process. All of these phases would benefit from planning and scheduling tools like PERT (Program Evaluation and Review Technique) or CPM (Critical Path Method), except:
idea generation
A negative cash discount is used by a seller to:
improve its liquidity position and cut collection expenses.
The Lands' End catalog provides a toll-free number for customers to call and place orders. The staff is pleasant and knowledgeable and will place orders and answer questions. This is an example of a(n):
inbound telemarketing effort.
Which of the following factors will increase the importance of personal selling in the promotional mix?
increasing emphasis on productivity
Promotional campaigns conducted by a firm during the introductory stage of a product lifecycle generally focus on:
informing the market about the product and explaining its features.
Cleveland Solvents has field sales staff, a customer service department, and two individuals who manage the "tech hotline." These individuals not only answer technical questions from customers, they also identify customer needs and recommend products that can fill those needs. They have the ability to initiate and close sales on the spot. These individuals are essentially participating in:
inside selling
Telemarketers who combine field selling with a strong customer orientation using both inbound and outbound communications are engaging in:
inside selling
Your clients don't need to be sold a product—they have already subscribed to your expensive premium service. But they do need to be able to call on you when they have a problem with the service or when they require special consideration. You provide technical support, solve problems, and make sure the customer is included in special events that your company sponsors. You also make certain that everyone who is a premium subscriber is sent an annual gift, compliments of your company. Because you don't meet your customers face-to-face, you sometimes call yourself an electronic concierge! What kind of sales are you involved in?
inside selling
Promotion of a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographic location, or government agency is called _____ advertising.
institutional
The American Heart Association runs ads in major magazines promoting its mission and successes. These ads are examples of _____ advertising.
institutional
By enabling the coordination of all promotional activities to produce a unified, customer-focused promotional message, e-marketing helps reach consumers through:
integrated marketing
Frito Lay is owned by Pepsi and has a variety of billion dollar brands such as Doritos, Cheetos, Lays, and Ruffles. These famous snack brands are available in a wide variety of sizes at almost every store location and vending center - from gas stations, to dollar stores, grocery stores, drug stores and super centers. Which level of distribution intensity does Frito Lay utilize?
intensive
Bubble, a company that manufactures gums and candies, distributes its products through all possible channels. One can pick up a Bubble's product from just about anywhere—department stores, general stores, convenience stores, and even local pharmacies. Which of the following distribution strategy is being employed by Bubble?
intensive distribution
At the _____ stage in the consumer adoption process, potential buyers begin to seek information about the product.
interest
Although research shows that most consumers dislike the practice of telemarketing and more than 220 million have signed up for the national Do Not Call Registry, organizations still use telemarketing because:
it is cost effective; the average call costs are low.
Charles Schwab, an equity investment company, will face the risk of cannibalization from its e-tail channel, Schwab.com, if:
it makes price cuts and creates competition with the parent company.
In the context of the consumer diffusion process, "_____" constitute the final group of consumers that make trial purchases of a new product.
laggards
_____ pricing refers to a pricing strategy in which marketers offer prices slightly above cost to avoid violating minimum-markup regulations and to earn a minimal return on promotional sales.
leader
Sales managers can best foster an ethical work environment by:
letting employees know what is expected of them.
A series of related products offered by one company is called a product _____.
line
Mommy & Little Tots manufactures products for mothers-to-be as well as newborn infants. Their products include maternity wear, diapers, wipes, burp clothes, and swaddling blankets. These products constitute the "product _____" at Mommy & Little Tots.
line
_____ pricing is a pricing policy in which products are offered to consumers at less than cost to attract them to stores in the hope that they will buy other merchandise at regular prices.
loss leader
You own an enchanting Victorian bed-and-breakfast facility in Ashland, Oregon, home of the annual Oregon Shakespeare Festival. The symbol for your in-season rates is, when the Bard's plays are being enacted on the stages. In season, you have a two-night minimum-stay requirement. When the festival season has ended, however, you have trouble filling your rooms. Using the tool of yield management, what action will you take to maximize profits?
lower your rates to $$ and remove the minimum-stay requirement
Which of the following terms refers to the amount by which a retailer reduces the original selling price of a product?
markdown
A _____ strategy concentrates on finding new markets for existing products.
market development
Aldi is a chain of discount supermarkets based in Germany. The company has recently started opening stores across the United States. Based on this information, the product development strategy being pursued by Aldi is known as a _______ strategy.
market development
More than 90 percent of cereal is consumed at breakfast, but ads for Kellogg's Cracklin' Oat Bran say that it tastes like oatmeal cookies and makes "a great snack anytime." Kellogg's is implementing a strategy of _____ with this product.
market penetration
When a state decides to double the tax on alcoholic beverages and consequently, increases their market price, the state is aiming at:
market suppression
The chief financial officer (CFO) of an automotive manufacturer is reviewing the revenue earned from the sale of all-terrain vehicles in South America. Because the selling price of the vehicles has been changed frequently, the CFO wanted to analyze the impact of these changes particularly during the rainy season. Which global pricing strategy is being used to price these vehicles?
market-differentiated
A penetration pricing strategy is called _____ pricing when it implements the premise that a lower-than-market price will attract buyers and move a brand from an unknown newcomer to brand-recognition or brand-preference stage.
market-minus
Since it involves the use of a high price relative to prices of competing products or services, the skimming pricing strategy is sometimes referred to as _____ pricing.
market-plus
Which of the following best represents a set of activities that move production inputs and other goods within factories, warehouses, and transportation terminals?
materials handling system
Doug is a business analyst for a leading manufacturer of sports shoes. A careful analysis of market conditions reveals that there is actually an excess supply in the market for sprinting shoes. Doug infers that the sprinting shoes are in the _____ stage of the product lifecycle.
maturity
During which of the following stages in the product lifecycle, do industry sales of the product level out?
maturity stage
In which of the following stages of the product lifecycle, do market supplies exceed the demand, as a result of which a firm can increase its sales only at the expense of its competitors?
maturity stage
A major assumption of the economic theory is that, firms will focus on:
maximizing gains and minimizing losses.
Setting the timing and sequence for a series of advertisements is known as:
media scheduling
A _____ provides space for permanent showrooms and exhibits, which manufacturers rent to market their goods.
merchandise mart
A blog posting, such as a Tweet, that contains only a few words is called a(n) _____.
microblog
Which of the following is a pricing technique that is used to evaluate consumer demand by comparing the number of products that must be sold at a variety of prices to cover total cost with estimates of expected sales at the various prices?
modified breakeven analysis
Compared to other broadcast media, cable advertising is more likely to attract specialized audiences and encourage niche marketing. This characteristic of cable advertising is known as _____.
narrowcasting
Megan sells a high-end line of cosmetics. All of her customers are family members and friends. She sells these products through an informal gathering at her home, where she demonstrates the products and explains how to use them. Some of her existing customers share their experiences and list the benefits of the product. This type of personal selling is known as:
network marketing
Which of the following types of personal selling relies on lists of family members and friends of the salesperson who organizes a gathering of potential customers for an in-home demonstration of products?
network marketing
Which of the following entities is responsible for all phases of a development project, including screening decisions, developing product specifications, and coordinating product testing?
new-product department
A one-time reduction in list price typically offered at the time of sale is referred to as a(n):
noncumulative discount.
There are many clothing retailers in Ida's city, but she sells her line of sweaters in only about a dozen boutiques. Ida's approach to distribution intensity yields the following benefit(s):
not all of the above
A(n) _____ stocks only designer labels or well-known brand name clothing at prices equal to or below regular wholesale prices.
off-price retailer
The top marketing manager of your company has asked you to make recommendations about your sales representatives who make up the sales force for your business-to-business auto parts customers. These territories are geographically structured and the goal is to move away from territory-based sales to customer-oriented sales; as a result, these sales reps may be reassigned.Based on this project request, what element of the sales force management process will you focus on?
organizing the sales force
_____ are shopping centers that house only off-price retailers.
outlet malls
_____ refers to a personal selling approach in which customers comes to the seller's place of business to buy products largely on their own initiative.
over-the-counter selling
As a new salesperson, you are concerned with how your decisions will affect your customers, your sales team, and your company. You notice that many of your workmates accept gifts and perks from clients, even though that practice is frowned upon by management and discouraged according to what you have read in the handbook. Some colleagues have been reprimanded for accepting gifts from customers just in the short time you have been with the company. What will be your focus regarding ethical business practice?
personal ethical behavior
An e-business vendor who creates products, such as clothing or computers, to the exact specifications of individual customers is practicing:
personalization
The LifeguardStore.com is an Internet-based business serving customers by providing products which meet their swim, lifeguard or facility needs. The company offers a dedicated team of consultants to work with swim teams across the globe to design and deliver apparel appropriate for their needs. Once designed, a dedicated web portal is created so members of the swim team can purchase their items directly from The LifeguardStore.com. The ability to customize products for swim teams is an example of the _____ capability of e-marketing.
personalization
Which of the following modes of transportation is typically associated with high frequency of shipment?
pipelines
The trade-oriented promotion that consists of a display or other promotion located near the site of the actual buying decision is known as:
point-of-purchase advertising.
Sandra is surfing the Web. After entering a popular site for attorneys, a separate window suddenly appears on the screen promoting a new line of legal software. This is an example of a _____ ad.
pop-up
Chelsey is an account executive with Enterprise Rent-A-Car and works with body shop and automotive service providers as well as insurance agents. Chelsey knows that many automobile owners have car rental riders as part of their automobile insurance and when their car is damaged from a storm or accident, they could receive a rental car while their vehicle is being repaired. When Chelsey meets with her customers, she typically promotes the features and benefits of Enterprise such as how Enterprise provides exceptional service and goes above and beyond to pick-up customers at their preferred location and give them their rental vehicle. In addition, most of Enterprise's fleet of vehicles are less than 2 years old and are well maintained to provide a comfortable driving experience. Chelsey tells her agent and body shop owner clients that by using Enterprise's services, their customers will have higher levels of customer satisfaction with their repair experience and that translates into loyalty for the insurance agent. During which step in the personal selling process will Chelsey share this information?
presentation
In the _____ stage of the sales process, a salesperson describes a product's features and relates them to the customer's needs.
presentation
Jennifer is looking for a wedding present for her fiance and is considering buying him a watch. She likes luxury items and is willing to spend between $4,000 and $10,000 on the gift. She visits several jewelry stores and realizes that the prices are the same for Rolex and Philippe Patek brand watches and each store tells her these brands are never discounted. What type of pricing objective is utilized by Rolex and Philippe Patek?
prestige
A firm that permits variable prices for different customers is adopting _____.
price flexibility
The role of a sales representative in the promotion process has changed from that of persuader to that of a:
problem solver
A _____ often leads new-product development programs, including creation of new-product ideas and recommendations for improving existing products.
product manager
A popular morning TV program shows its host and guests drinking beverages from mugs that have been engraved with the logo of a popular coffee chain. This is an example of:
product placement
A car manufacturer has developed different models of a car to suit the pricing needs of different classes of customers. It offers a low-end version for price conscious customers and luxury cars for high-end customers. This is an example of _____ pricing.
product-line
A cosmetics company offers incentives to its retailers for advertising its new shampoo by placing it in a special display unit near the billing counters. This incentive offered by the manufacturer is an example of a _____.
promotional allowance
_____ is a personal selling function that involves identifying potential customers.
prospecting
Wholesaling intermediaries help producers in transporting by:
purchasing in economical truck load lots and then reselling in smaller quantities.
_____ is a cash reward paid to retail salespeople for every unit of a product they sell.
push money
You sell a leading brand of speedboat. Many visitors to your showroom are enthusiastic young adults who would love to own your product but cannot afford it. When dealing with them, you must pay particular attention to which step in the sales process?
qualifying
Which of the following modes of transportation provides the most efficient way for moving bulky commodities over long distances?
railroads
Which of the following functions poses a great challenge to sales managers?
recruitment and selection
Marketers offer rebates in order to:
reduce the price paid for a product by customers.
With reference to the five characteristics of a product innovation, a product innovation is said to have a greater _____, if it is superior to previous ideas reflected in terms of lower price, physical improvements, or ease of use.
relative advantage
Advertising that reinforces previous promotional activity by keeping the name of a good, service, organization, person, place, idea, or cause before the public is called _____ advertising.
reminder
The Poison Prevention Packaging Act:
requires drug manufacturers to place their products in packages that are child resistant yet accessible to all adults.
Most companies today invest heavily in cyber security initiatives to be vigilant about confidentiality and not allow consumer's personal information or other data to accidentally become available to unauthorized parties. The field of cyber security in this context is related to which of the following ethical and legal issues?
respect privacy
Carson cares deeply about the environment and strives to eat clean by choosing foods that are natural and contain no artificial ingredients. When buying fresh produce, he's willing to pay more for organic and loves that organic produce is more widely available - from Fresh Market, Whole Foods, Meijer, Kroger and even Aldi's. He especially likes shopping at Aldi's where he can save money when buying fresh, organic produce. This is an example of:
retail convergence
_____ represent the distribution channel to most consumers because of their direct contact with the ultimate consumers.
retailers
Channels designed to return goods to their producers are called _____ channels.
reverse
Your company's leathergoods are very well received in the marketplace. But you still have not been able to resolve the issue of packaging. These bags and briefcases have to be packaged substantially so your customer receives a flawless product, but you have to come up with a solution that will allow the consumer to recycle all that packaging in some way. You decide to solicit suggestions from the staff on how to either implement a recycling program or devise some other packaging methodology that is environmentally friendly. What marketing channel are you managing? Select the best answer from the choices below.
reverse channel
A new product committee is a group in an organization that:
reviews and approves new-product plans that arise elsewhere in the organization.
Yield management is strategic control of inventory. It maximizes revenue or profits from fixed perishable resources. What are the three rights of yield management?
right customer at the right time for the right price
When wholesalers transport and stock products in inventory, they accept the possibility of spoilage, theft, or obsolescence. This function performed by the wholesaling intermediary is referred to as _____.
risk taking
The overall direction and control of the personal selling effort is in the hands of a firm's:
sales managers
Which of the following sales promotion techniques produces a higher response rate than most other promotions?
sampling
During which of the following stages of a new-product development process, ideas with commercial potential are separated from those not meeting company objectives?
screening
Keith is a marketer for Olympus cameras. He arranged for an agreement with a search engine whereby Olympus would pay the search engine for listing its products among the top three results whenever a computer user ran a search for digital cameras. This is an example of:
search marketing
Sales of Kathleen's baked goods have begun to increase dramatically. She is selling online, but many customers in her core region are asking about local outlets where they can make immediate purchases. Kathleen has no desire to open and operate a retail outlet herself, but she also does not want her product sold beside a generic cookie in a supermarket. What type of distribution will Kathleen investigate for her premium baked goods?
selective distribution
A _____ pricing strategy permits marketers to control demand in the introductory stages of a product's life cycle and then adjust productive capacity to match changing demand.
skimming
Online shopping has been influenced by the increased availability of _______________.
smart phones
Which of the following types of social media platforms allow their users to create an online profile of biographical data including photos and information such as employment, education, and relationship status, and to invite friends to join their circle?
social networking sites
The number of sales representatives who report to a first-level sales manager is referred to as:
span of control
Beaux, a clothing boutique store, specializes in high-end evening wear for women. Most of the dresses are custom-made for their elite customers. Beaux is an example of a store offering _____ products.
specialty
Which of the following is a customer-oriented sales promotion technique?
specialty advertising
Which of the following is a sales promotion technique that places the manufacturer's name, address, and marketing message on useful articles that are then distributed to target customers?
specialty advertising
Which of the following is a method of testing alternate ads by dividing a cable TV audience or a publication's subscribers in two, using two different ads, and then evaluating the relative effectiveness of each?
split run
Companies should apply caution and commonsense when making their products available for sale via the Internet. Which of the following products would be most likely to be sold using the Internet?
sports apparel
The manager of a retail furniture store desires to increase the number of prestige sales of pieces handcrafted from natural materials. Which strategy should the manager use to meet this sales objective?
stage an area on the floor in each room highlighting the pieces and their uses
You are conducting a business startup workshop sponsored by the Small Business Administration. The workshop attendees are all aspiring business owners who are excited yet fearful about the prospect of starting their own businesses. Earlier in the workshop, you asked the attendees to complete a questionnaire about their major concerns in starting a new business. The majority of the respondents indicated their biggest concern is lack of business experience. Based on this concern, which of the following business strategies is most appropriate for these workshop attendees?
start their business as a franchisee
An offering within a product line, such as a specific size of liquid detergent, is known as a(n) _____.
stock-keeping unit
The management at Granger Industries is evaluating their distribution system to determine if cost-cutting measures will impact performance. Ralph, an employee with experience in the implementation of total quality management programs, suggests that the company should consider synergies between elements of the distribution system instead of judging each activity on its own merits. Ralph is trying to avoid:
suboptimization.
A schedule of the amounts of a good or service that will be offered for sale at different prices during a specified period is referred to as _____.
supply
The business department in Skandsoft Technologies, a computer software company, consists of technically trained, nonmarketing experts such as engineers or programmers. A salesperson continues to play the lead role in most sales situations while technical experts add value to the sales process. Which form of personal selling is being used by this organization?
team selling
When visiting one of his major accounts, Matt is accompanied by finance and product specialists. These specialists are able to answer specific questions so that a customer can make a purchase decision. This is an example of _____.
team selling
Which of the following is the most frequently used form of direct marketing?
telemarketing
Which type of non-store retailing both allows products to be easily demonstrated and allows time for prospective customers to become well informed about the product?
television home shopping
One important advantage of personal selling over most advertising is:
the ability to actually demonstrate the good or service.
The marketing team at Sienna Technologies has decided to use social media to market the firm's products, and is in the process of creating a social media marketing (SMM) plan. Currently, the marketing team at Sienna Technologies is preparing a report on the various social media platforms and tools being used by its primary competitors. In which of the following sections of the SMM plan is this most likely to be included?
the competitive analysis
The AIDA concept refers to the steps in:
the consumer purchase decision process.
The supply chain begins with:
the raw material inputs for the manufacturing process.
Personal selling is likely to be the primary component of a firm's promotional mix when:
the transactions frequently involve trade-ins.
The breakeven point is the point at which:
total revenue from sales equals total cost.
Brandi is an account executive with Wirtz Beverage, a wine and spirits distributor with an extensive catalog of brands. She typically meets with restaurants, bars and hotels to market her products and assists customers in developing their beverage menu to generate sales revenue and meet customer's needs. Recently, she had the opportunity to offer customers a great deal - if they ordered 5 cases of wine (assorted brands), they could receive the 6th case at 50% off retail. Wirtz Beverage offered this promotion in order to reduce warehouse inventory and shift inventory from their warehouses to the customer's business location. This is an example of a(n):
trade allowance
The payment offered to a channel member for performing marketing functions is called a _____.
trade discount
Which of the following trade promotion techniques give especially effective opportunities to introduce new products and generate sales leads?
trade shows
A credit allowance given for a used item when a customer purchases a new item is known as a _____.
trade-in
Which of the following services provided by a wholesaling intermediary would be an example of the intermediary's creating place utility for consumers?
transporting
drop shipperAlejandro is the manager of a combination gas station and convenience store located at the intersection of two busy highways. Recently he was approached by the owner of a new company, Fro2Go, about the possibility of placing their product in his store. Fro2Go places its frozen yogurt dispensers in convenience stores throughout the state. Every week, a company representative visits each location to check on status of the dispensers, deliver fresh frozen yogurt supplies, and remove any old or expired product.What kind of independently owned wholesaling intermediary is Fro2Go?
truck wholesaler
Typically, bread and dairy products are delivered to stores by wholesale intermediaries called:
truck wholesalers
A company may limit its growth potential when it concentrates on a single product.
true
A firm that has an existing relationship with a customer is allowed to call that customer even if the customer has signed up for the national Do Not Call Registry.
true
A functional discount is a payment to a channel member or a buyer for performing marketing functions.
true
A marketing channel is an organized system of marketing institutions and their interrelationships that enhances the physical flow and ownership of products from producer to consumer or business user.
true
A negative cash discount is an attempt by sellers to improve their liquidity positions, reduce their bad-debt losses, and cut collection expenses.
true
A private exchange is also called c-business because of its relatively more collaborative nature.
true
A product can fulfill its mission of satisfying consumer needs only if it ensures safe operation.
true
A product development strategy might include flanker brands that are introduced into the market to increase the overall market share of the company.
true
A retailer's customer service strategy can support the efforts of the retailer in building demand for a line of merchandise.
true
A third-party (contract) logistics firm is a company that specializes in handling logistics activities for other firms.
true
Adrian works with the marketing team of an automobile company. He oversees the look and feel of the online communities that the company uses to market its products. His role is similar to that of a social media designer.
true
Advertising specialties help reinforce previous or future advertising and sales messages.
true
Almost half of all eBay transactions occur at fixed prices.
true
An IMC strategy helps marketers create a unified personality for the product by choosing the right elements from the promotional mix to send the message.
true
An assessment center is a testing approach used by sales managers to measure a candidate's skills, knowledge, and ability.
true
An assumption behind the task-objective approach is that marketers can measure the productivity of each promotional dollar.
true
An enterprise resource planning (ERP) system is a software system that consolidates data from among a firm's various business units.
true
As consumers are willing to exert considerable effort to obtain specialty products, producers can promote them through relatively few retail locations.
true
B2B e-marketing refers to the use of the Internet for business transactions between organizations.
true
Benchmarking is the method of measuring quality by comparing performance against industry leaders.
true
Both vendors and retailers use the strategy of category management.
true
Buyers of a particular new car model are being offered zero-percent financing. This is an example of a promotional allowance.
true
Cable advertising offers marketers access to more narrowly defined target audiences than other broadcast media can provide.
true
Chain stores usually obtain merchandise at lower prices from manufacturers compared to their independent rivals.
true
Common carriers cannot conduct their operations without permission from the appropriate regulatory authority.
true
Common carriers move freight via all modes of transport.
true
Companies can improve their positioning on the search list of search engines by paying a particular fee.
true
Companies test market their new-product offerings to measure consumer reactions under normal competitive conditions.
true
Concept testing is a marketing research project that attempts to measure consumer attitudes and perceptions about the new product idea.
true
Convenience of location is unimportant to a consumer who wants to buy a specialty product.
true
Cooperatives help independent retailers to compete with chains by providing volume buying power.
true
Coupons are the most widely used forms of consumer-oriented sales promotion.
true
Creative selling can generate buzz for a product.
true
Creative selling is typically utilized to develop new business by adding new customers or introducing new products or services.
true
Cross-selling services and products to existing customers is less expensive than trying to find new customers for the same services.
true
Customer service standards state the goals and define acceptable performance for the quality of service that a firm expects to deliver to its customers.
true
Direct mail and advertising campaigns are effective in identifying prospective customers.
true
Direct selling is an important option for goods requiring extensive demonstrations in persuading customers to buy.
true
Direct-mail marketing relies heavily on database technology to manage lists of names and segment them according to the objectives of the promotional campaign.
true
Directing consumers to a specific landing page for a marketing campaign, rather than the company's home page first, helps potential consumers to participate in a conversation with the marketers.
true
Drop shippers take title to the goods but never physically handle or even see the merchandise.
true
Dual distribution is the movement of products through more than one channel to reach the firm's target market.
true
During the introductory stage of the product lifecycle, the public becomes acquainted with the item's merits and begins to accept it.
true
Economic theory attempts to derive correct equilibrium prices in the marketplace by comparing supply and demand.
true
Even if a new product tests well in the market and reaches the commercialization stage, it may still take a while to catch on with the general public.
true
Every online marketer is inherently a global marketer who must understand the internal and external conditions that affect global pricing strategies.
true
Every online marketer is inherently a global marketer.
true
Field selling is more expensive than other selling options and often requires considerable technical expertise.
true
Firms that practice homeshoring experience the benefit of reduction in the use of energy and other natural resources thereby decreasing their impact on the environment.
true
For consumers to pay prices either above or below what they consider the going rate, they must be convinced they are receiving fair value for their money.
true
Girl Scouts selling cookies door-to-door exemplify cold-call selling.
true
Gray goods are products manufactured abroad under license from a U.S. firm and then sold in the U.S. market in competition with that firm's own domestic output.
true
Horizontal conflict causes problem between different types of marketing intermediaries that handle similar products.
true
If potential buyers can observe an innovation's superiority in a tangible form, the adoption rate increases.
true
If producers set up closed sales territories that substantially decrease competition, then it is in violation of the Federal Trade Commission Act and provisions of the Sherman and Clayton Acts.
true
In a cold calling situation, the approach and presentation often take place at the same time.
true
In essence, a department store is a series of limited-line and specialty stores under one roof.
true
In piggyback operations, highway trailers and containers ride on railroad flatcars, thus combining the long-haul capacity of the train with the door-to-door flexibility of the truck.
true
Installations' marketers typically focus their promotional efforts on employing highly trained sales representatives, often with technical backgrounds.
true
Instituting a companywide code of ethics helps guide salespeople to ethical behavior in personal selling.
true
It is more challenging for companies to defend against insiders stealing classified information than the attacks that come from outside organizations.
true
Legal provisions against pollution and conservation laws have increased the importance of reverse channels.
true
Lifestyle centers seek to offer the intimacy and easy access of neighborhood village retailing with a fashionable cachet.
true
Limited-line retailers cater to the needs of people who want to select from complete lines in purchasing particular products.
true
Lower off-season prices and higher peak-season prices for lodging at resorts illustrate the use of yield management as a strategy to generate revenues for a largely fixed-cost industry.
true
Lysol sanitizing wipes entered the market at a low sales price and was supported by heavy couponing. As the initial trial period passed, the pricing slowly rose and the couponing became more infrequent. This activity is an example of penetration pricing.
true
Manufacturer-owned facilities are beneficial when products are perishable and need rigid control of distribution to avoid spoilage.
true
Manufacturers of specialty or luxury goods limit the number of retailers that can carry their products.
true
Many consumers shop for reasons other than just purchasing needed products.
true
Many government and organizational procurement departments do not pay set prices for their purchases.
true
Marketers direct some parts of their social media marketing efforts toward trust building in order to facilitate the two-way conversation between the company and the consumer.
true
Marketers generally view the goal of social media marketing as developing a conversation with potential customers.
true
Marketers often use blog postings to educate consumers and business customers about new products.
true
Marketing efforts aimed at creating brand awareness will have a broader target audience compared to those aimed at strengthening relationships with existing customers.
true
Marketing public relations (MPR) refers to focused PR activities that directly support marketing goals.
true
Markup can be expressed as a percentage of the total cost of the product or the selling price.
true
Markups are determined partly on the basis of marketers' judgments of the amounts that consumers will pay for a product.
true
Merle Norman, a cosmetics manufacturer, sells its products exclusively through its own retail stores. This is an example of forward integration of distribution channels.
true
Missionary selling is an indirect sales approach that focuses on promoting goodwill for the firm.
true
Negotiated pricing policies seek to eliminate the economic waste that would result from obtaining and processing bids for relatively minor purchases.
true
Network marketing is a form of field selling in customers' homes.
true
New-product committee members spend less time conceiving and developing their own new-product ideas than reviewing and approving new-product plans that arise elsewhere in the organization.
true
Nonmarketing public relations refer to a company's messages about general management issues.
true
Odd pricing originated as a way to force clerks to make change, thus serving as a cash-control device.
true
Online sellers can quickly communicate the benefits and features of their products to customers through consultative selling.
true
Order processing becomes the primary task in situations in which needs are readily identified and are acknowledged by the customer.
true
Over-the-counter personal selling efforts are frequently supplemented with other promotions such as special sales events, new product introductions, and direct-mail appeals.
true
Overall organizational objectives and more specific marketing objectives guide the development of pricing objectives, which in turn lead to the development and implementation of more specific pricing policies and procedures.
true
Penetration pricing is often used in a market in which a new product is likely to face strong competition when introduced.
true
Personal selling is an important component of the promotional mix for a firm that markets to relatively few potential customers.
true
Personal selling is more costly and time consuming compared to other types of promotion.
true
Phishing involves the use of authentic-looking email or pop-up messages to get unsuspecting victims to reveal personal information.
true
Point-of-purchase advertising encourages retailers to improve on-site merchandising.
true
Price setting is based on the marketer's ability to strike a balance between desired profits, and the customer's perception of a product's value.
true
Prices of electronic equipment and automobiles tend to fluctuate far less than prices of crops such as sugarcane and bananas.
true
Pricing decisions are influenced by a variety of legal constraints imposed by federal, state, and local governments.
true
Product liability insurance has become an essential element for any new or existing product strategy.
true
Product recalls and repairs are handled through reverse channels.
true
Rack jobbers are full-function merchant wholesalers that market specialized lines of merchandise to retailers.
true
Railroads control the largest share of the freight business in the United States as measured by ton-miles.
true
Recruiting and selecting successful salespeople are among the greatest challenges faced by a sales manager.
true
Relationship selling involves regular contacts between sales representatives and customers over an extended period.
true
Retail convergence results in blurring of distinctions between types of retailers and the merchandise mix they offer.
true
Retail outlets are the contact points between the channel members and ultimate consumers.
true
Retailers practice scrambled merchandising to boost sales volume.
true
Sales promotions encourage immediate action as they impose limited time frames.
true
Sales quotas are specified sales or profit targets that salespeople are expected to achieve.
true
Salespeople involved in creative selling use well-planned strategies to seek new customers by proposing innovative solutions to customer's needs.
true
Salespeople involved order-processing tasks persuade their wholesale or retail customers to carry more complete inventories of their firm's merchandise.
true
Sam watches an ad on TV for a new laptop from Sony. This ad is an example of product advertising.
true
Sampling produces a higher response rate compared to other forms of promotions.
true
Setting the timing and sequence for a series of advertisements is called media scheduling.
true
Social media efforts customize marketers' approach to targeted audiences more than many types of traditional marketing.
true
Social media includes different forms of electronic communication.
true
Social media marketing content focuses on its audience rather than promoting the company outright.
true
Standardized modular shipping containers maximize savings by limiting loading, unloading, and other handling.
true
Tandy Corporation has its own distribution network that transports its products to its own retail stores. This is an example of a corporate marketing system.
true
Team selling creates relationships between companies rather than between individuals.
true
Team selling offers a distinct competitive advantage in sales situations that call for detailed knowledge of new, complex, or rapidly changing technologies.
true
Telemarketing is the most frequently used form of direct marketing and provides high returns to the marketers on their expenditures.
true
The Internet has provided more power to customers to control the prices of goods and services.
true
The aspect of public relations most directly related to promoting a firm's products is publicity.
true
The breakeven point is the point at which total revenue equals total cost.
true
The complete sequence of suppliers and activities that contribute to the creation and delivery of goods and services is known as the supply chain.
true
The concept of span of control refers to the number of sales representatives who report to first-level sales managers.
true
The diffusion process focuses on the speed at which an innovative product is accepted or rejected by all members of a community or social system.
true
The economic theory assumes that firms behave rationally which in turn results in an effort to maximize gains and minimize losses.
true
The first presentation being made to a potential customer is likely to be more detailed than that used for an existing customer.
true
The follow-up step in the sales process allows the salesperson to psychologically reinforce the customer's original decision to buy.
true
The global status of an industry will influence a firm's pricing strategies in international markets.
true
The goal of an ad is to improve the likelihood that a customer will buy a particular good or service.
true
The government monitors transfer pricing closely because it is an easy way for companies to avoid taxes on profits.
true
The level of competition for business in the market is an important criteria considered by retailers while selecting the target market.
true
The majority of the firms measure the success of their social media marketing plan in terms of their social media presence.
true
The objective of media selection is to achieve adequate media coverage without advertising beyond the identifiable limits of the potential market.
true
The process of communicating promotional messages begins with encoding.
true
The purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.
true
The response rates for direct-mail marketing are measurable and higher compared to other types of advertising.
true
The screening and business analysis stages of new-product development, determine the product's financial and technical requirements.
true
The steps in a sales process follow the AIDA (attention, interest, desire, action) concept.
true
The strategy of selective distribution involves distributing a product through a limited number of channels.
true
The term "suboptimization" refers to a condition that results when individual operations achieve their objectives but interfere with progress toward broader organizational goals.
true
The term industrial distributor commonly refers to intermediaries in the business market that take title to the goods.
true
The two most common cost-oriented pricing procedures are the full-cost method and the incremental- cost method.
true
The wheel of retailing attempts to explain the patterns of change in retailing.
true
Tide detergent is available in a variety of formulations but Procter and Gamble should be concerned that any addition to the Tide detergent product line could cannibalize sales of existing products.
true
To be identified as a qualified prospect, a customer must have both the resources and the authority to make purchase decisions.
true
To create strong, long-lasting relationships with customers, salespeople must demonstrate high ethical standards and communicate honestly at all times.
true
Unitizing combines as many packages as possible into each load that moves within or outside a facility.
true
Unsought products are marketed to consumers who may not yet recognize any need for them.
true
Variety stores offer an extensive range and assortment of low-price merchandise.
true
Vending machines and convenience food stores are not affected by the wheel of retailing because their strategy for customer satisfaction is based on location and convenience, not pricing.
true
Virtual private networks are less expensive compared to leasing dedicated lines for information traveling over public communications media.
true
When a beverage company acquires a water purification plant, it is an example of backward integration of distribution channels.
true
When discounts become normal elements of a competitive marketplace, other marketing mix elements gain importance in purchase decisions.
true
When the list price of a product is discounted by the value of a used product that is turned in at the time of sale, the transaction is called a sale with a trade-in.
true
A wiki is a Web page that anyone can edit.
true
State laws requiring sellers to maintain minimum prices for comparable merchandise are called _____ laws.
unfair-trade
When the price of Cheerios cereal is displayed as 14.7 cents per ounce, this is an example of _____ pricing.
unit
Tim works for an ice-cream manufacturer. Tim's department handles the supplies of dairy, nuts, and sweeteners that go into the daily production. In addition, they make sure that the suppliers give them good quality products at an optimal price as the freshness of these products ensures the quality of the company's ice cream. Tim is most likely involved with:
upstream management
Since each purchase decision possesses unique circumstances, presentations are:
usually flexible and can be modified to suit customer needs.
New sales personnel often find prospecting frustrating because it:
usually offers no immediate payback.
A pricing strategy that emphasizes benefits of a product in comparison to the price and quality levels of competing offerings is called _____ pricing.
value
Which of the following is the purpose of adopting a meeting-competition pricing objective?
value pricing
The purpose of test marketing new-product offerings is to:
verify that the product will perform well in a real-life environment.
A planned channel system designed to improve distribution efficiency and cost-effectiveness by integrating various functions throughout the distribution chain is called a(n) _____ marketing system.
vertical
Your first exposure to channel conflict came when you decided to offer your handmade soap through your own website in addition to the skin care boutiques that carry it. The retailers lost no time complaining to your sales representatives. You were involved in ________conflict.
vertical
Marketers aim to design an appropriate marketing mix to draw the intended target market. During a meeting with company executives, Roy suggests that one way to engage the target market and ensure that its members continue to be loyal customers is by allowing them to return their gadgets in exchange for workable or new parts when customers file complaints that their products no longer work. Required: In thinking about how to best market new products, which of the following components of the product variable is described above?
warranty
Which mode of transportation is very slow in speed, is low cost and offers very high levels of flexibility in handling?
water
The first question marketers ask when they begin to develop strategies for any marketing effort including social media is:
who are we trying to reach?
The traditional channel for consumer goods proceeds from producer to:
wholesaler to retailer to user.
_____________ are tiny interactive applications that Internet users can copy and add to their own pages to play music, video, or slide shows
widgets
The number of product lines a firm offers is referred to as the _____ of its product mix.
width
The Nestle Company is celebrating 150 years of success and has evolved from a single product company - sweet condensed milk to over 2000 brands across such categories of baby food, bottled water, pet food, drinks, ice cream, nutritional foods, and chocolate. These various product categories reflect the product ______ of Nestle.
width
_________ make up the majority of online shoppers.
women
A pricing strategy that allows marketers to vary prices based on such factors as demand, even though the cost of providing those goods or services remains the same is called
yield management
_____ is a pricing strategy that allows marketers to vary prices based on such factors as demand, even though the cost of providing those goods or services remains the same.
yield management
Tulip World exports flowers around the globe, using standard worldwide prices. But its marketing director realizes that the success of this pricing strategy could be undermined by certain market changes. Choose the change(s) he has in mind.
-New trade restrictions are imposed in some of the countries where the firm does business. -Domestic tulip suppliers undercut Tulip World's prices. -Tulip World's prices no longer reflect its unit export costs. -Foreign marketing costs rise significantly.
You want to improve your performance in field selling, so you have set out to build your skills in the order processing part of the job. Those skills will be related to several tasks, including:
-Pointing out needs to the customer -Identifying customer needs -Completing orders
As a radio sales professional, you meet frequently with marketers who are skeptical of radio's value in a world with so many new media options. Choose the point(s) you make in your sales pitch.
-The diversity of stations allows advertisers to easily target their audiences. -Radio is now one of the fastest-growing media options. -Radio is relatively low-cost. -Stations routinely adapt their programming to local preferences.
In selecting the target market for your gourmet tea store, you were influenced by multiple factors. These included:
-The number of people who appreciate and will go out of their way to buy gourmet tea. -How much profit you can make by selling to gourmet tea enthusiasts. -How stiff the competition will be from other tea merchants or sellers of substitute products.
Freight carriers are classified as common carriers, contract carriers, and private carriers. Which of the transactions below was completed using a contract carrier?
A motor carrier transports automobiles in intrastate, interstate, and foreign commerce.
You work in the procurement department of a large hospital. While training a new assistant, you realize that he has limited knowledge of competitive bidding, the major purchasing procedure you use. Choose the key point(s) you must convey to him.
Before soliciting bids for surgical supplies, we develop detailed specifications for the items we want to buy.
When you choose a career in personal selling, you are promoting your company and the products or services it offers. How do you communicate the advantages of your goods and services over those of the competition?
Focus on the customer; follow through; know the industry and the competition; exceed customer expectations.
Which of the following products would most likely have an inelastic demand curve?
HP genuine ink for an HP printer
You are worried about adding too high a markup to the watches you sell at your jewelry store. To reduce this markup and still cover costs, you will focus on:
Increasing inventory turnover rate
International water carriers operate with oceangoing, deep-water ships. How will this mode of freight transportation be affected by expansion of the Panama Canal?
Larger-sized ships will be able to pass through the all-water route from Asia to the Atlantic Coast of the United States.
Betty is convinced that certain prices will boost sales of her gourmet chocolates more than other prices. Which of the following price policies could she apply?
Odd pricing 2: 3:
In your new job, you will be responsible for upstream management of the firm's supply chain. This means you will be managing all of the following except:
Outbound logistics
You are the marketing manager for a multi-state auto dealership in the Midwest. It is that time of year when your fleet of autos goes through major model year changes. You are putting the final touches on your pricing strategy to facilitate getting your inventory of autos low enough to make room for the new models. What is the practical problem involved in using your current sales and commission data to make pricing decisions?What pricing strategy solution would best address that problem?
Problem: You have a clearer knowledge of the supply side of the pricing equation than you do of the demand side. Solution: Periodic discounting to keep pace with demand.
Brandon recently completed law school, passed the bar exam and began working for a prestigious law firm in Dallas, TX. The firm has a strict dress code and Brandon is required to wear business suits, dress shirts, ties, and dress shoes. He is investing in a new wardrobe and visited Men's Discount Warehouse to purchase new clothes. He shared his situation with Tim, his sales representative and Tim told him that if he bought 2 suits, he would receive 2 dress shirts, 3 ties and 2 pairs of socks for free. Which of the following statements is TRUE regarding this example?
Promotions such as this are legal when differences in price reflect cost differentials
Today's salesperson often employs a combination of personal selling approaches in order to provide high levels of customer service and satisfaction. What is one advantage of team selling in business-to-business sales situations?
Team selling forms relationships between companies rather than between individuals.
As usage of social media marketing continues to increase, marketers are learning that content is a big key to success of any campaign. More specifically, they understand that an effective social media marketing campaign (SMM) has which of the following qualities:
The chosen keywords in the campaign are targeted specifically for the campaign
You would like to apply breakeven analysis to know when your startup tutoring venture will turn a profit. Which of the following considerations must you take into account?
The hourly wage you pay your tutors. The rent you pay your office landlord. The hourly price you intend to charge for tutoring.
You work for an auto parts manufacturer that has traditionally had an immense marketing budget. Company executives, however, recently reallocated some of the company's marketing funds to production. Consequently, the company needs to cut marketing costs. You decide to pitch an idea to the automobile manufacturer with whom you work most closely—to use cross-promotion to market both companies' products. Which of the following is detrimental to using cross-promotion?
The parties involved must compromise in order to work well together.
As a field salesperson for a firm that builds custom software for large corporations, Fred relies heavily on consultative selling. His reasons include all of the following except:
To meet his quota, he aims to close quick sales
Which of the following statements best describes the impact of Internet technology on the retail sector?
Traditional brick-and-mortar retailers have expanded and thrived by incorporating Internet retail.
Developing a customer service strategy for your sporting goods store, you know that services can add value to the shopping experience. Your business partner agrees, but makes a comment that shows he doesn't really understand this type of strategy. Identify his comment.
We don't need to decide whether to charge customers for gift wrapping.
CallowayGolf.com is a popular website for consumers who enjoy golf and are seeking information about the products and/or those who wish to order directly from the website. CallowayGolf.com notices that its _______ is relatively low with very few visitors actually purchasing from the website. However, it believes the website is effective for ______ shoppers who typically visit locally-owned golf retailers to sample the clubs and make a purchase.
conversion rate; web-to-store
After years of using full-cost pricing in a niche market for luxury watches, you find your competition has slowly increased its market share each year with discounted prices. Focus groups have confirmed that the image of your watches is still one of success and prestige, but more people are willing to consider substitutes. Incremental cost-pricing could enable you to increase profits and unsettle your competitor's complacency. You know that changing to incremental-cost pricing does have a significant downside problem. But you are also aware that you can prevent that from happening. What is the downside problem and which solution can you take to prevent its happening?
downside is losing your niche market. solution is to take solid measures to isolate your markets for lower-priced watches from your higher-priced models
You work for a multinational corporation that manufactures a series of home goods, cosmetics, pet supplies, foods, and beverages. As a newly appointed head of development, you want to familiarize yourself with the company's product lines. Required: Which of the following combinations of items represents a product line?
frozen tacos, salsa, and shredded cheese
Which of the following is an example of a good promotional objective?
increase the consumer base by 10% as a result of the online-based interactive ad
Which elements of retail strategy would be most important for a company that has just decided to construct a brick-and-mortar storefront?
location and store atmospherics
Businesses must manage logistics in order to maximize customer value. What are three methods for managing logistics?
logistical cost control; RFID technology; enterprise resource planning (ERP) systems
The top marketing manager of your company has asked you to make recommendations about your sales representatives who make up the sales force for your business-to-business auto parts customers. These territories are geographically structured and the goal is to move away from territory-based sales to customer-oriented sales; as a result, these sales reps may be reassigned. Based on this project request, what element of the sales force management process will you focus on?
organizing the sales force
Which of the following might be classified as an unethical sales practice?
persuading a customer to purchase a product or service that does not meet a customer's need
On a recent trip to the grocery store, Jackson noticed an in-store tasting event for a new line of yogurt-based dips. The store was providing product sampling and a coupon for .50 off the purchase price. Jackson tried the French Onion flavor and liked it so much he decided to purchase it for an upcoming party at his home. Which characteristic influencing adoption rates does this represent?
possibility of trial use
One of the main ways in which a wholesaling intermediary can cut the costs of buying and selling between manufacturers and customers is by __________________.
representing multiple producers and reducing the number of transactions
While stocking the shelves with a new soup, the store manager notes a difference in price between the 16-ounce can and the 32-ounce can. Which type of pricing strategy is the soup manufacturer using?
unit pricing