Marketing Exam 3

What is horizontal channel conflict?

A disagreement among two or more channel members at the same level

A retailer is an intermediary that sells to ______.

Consumers

Penetration, price lining, and bundle pricing are all types of what pricing approach?

Demand oriented

Oligopoly

Few sellers who are sensitive to each other's prices

The percentage change in quantity demanded relative to a percentage change in price is known as ______.

Price elasticity of demand

What promotion element plays the least important role in the postpurchase stage?

Public relations

Salespeople calling on wholesalers to encourage orders and providing sales assistance are typical of a(n) ________ strategy.

Push

The two channel strategies used by a manufacturer to assist in moving a product through the channel of distribution are the ______ strategies.

Push and pull

Which limited-service wholesaler furnishes the shelves that display merchandise in retail stores, performs all channel functions, and sells on consignment to retailers?

Rack jobbers

Selling agent

Represent a single producer, and are responsible for the entire marketing function of that producer

Percentage points of market share are known as ______.

Share points

When one firm's marketing channel is used to sell another firm's products it is known as a(n) ______.

Strategic channel alliance

In the ________ budgeting method of setting a promotion budget, the budget is set by matching the competitor's absolute level of spending or the proportion per point of market share.

competitive parity

Logistics management includes which two of these?

flow of raw materials and parts flow of finished products

In target pricing, ______.

manufacturers deliberately adjust the composition of a product to achieve the estimated price that consumers are willing to pay for it.

Current profit ________ and target ________ are two strategies used by firms that are pursuing a profit pricing objective.

maximization; return

The margins earned for each channel member and for the channel as a whole determines ______.

profitability

The pricing objective based on the quantity of product sold by a firm is called ______.

unit volume

What are the steps of the price setting process in order?

1. Identify pricing objectives and constraints 2. Estimate demand and revenue 3. Determine cost, volume, and profit relationships 4. Select an appropriate price level 5. Set list or quoted price 6. Make special adjustments

How long is the typical time frame for the long-range marketing plan?

2-5 years

It is estimated that ____ percent of online consumers account for ___ percent of the total online sales.

20:69

What helps to overcome "paralysis by analysis" in the implementation of a marketing program?

A bias for action

Opentable.com is a reservation mechanism for restaurants. It uses the Internet to allow consumers to reserve tables in many establishments throughout the United States. It is an example of ______.

A digital marketing channel

What channel intermediary does not take title to products, but instead brings a seller and buyer together?

Agent

Why might an efficient supply chain, rather than a responsive supply chain, fail to meet Dell's target market desires for a wide variety of customizable products?

An efficient supply chain might emphasize economies of scale that would reduce the variety of configurations offered.

In what ways does a channel captain manage potential conflict?

By using expertise By using a legitimate right By using economic influence

A ________ manager has responsibility for an entire product line, and attempts to reduce the possibility of one brand's actions hurting another brand in the same category.

Category

A(n) ________ allows a customer to design a personalized product via the Internet and helps the company become more knowledgeable about the customer.

Choiceboard

The promotional mix is a combination of ________ tools.

Communication

According to a generic business strategy framework, lower cost and differentiation are the two sources of ________.

Competitive advantage

Which are methods of setting a budget for promotion?

Competitive parity Objective and task All you can afford

In addition to the source of competitive advantage, a firm's ________ is identified in the determination of a generic business strategy.

Competitive scope

________ allow members to take advantage of volume discounts and give the impression of being part of a larger group.

Contractual systems

What is a cost focus strategy?

Controlling expenses and, in turn, lowering product prices targeted at a narrow range of market segments.

IKEA sells inexpensive furniture that requires self-assembly by cost-conscious customers. IKEA is using a ________ strategy.

Cost focus

A ________ strategy focuses on reducing expenses and, in turn, lowers product prices while targeting a broad array of market segments.

Cost leadership

Amazon and Orbitz are both part of _______ marketing channels.

Digital

Assuming that unit costs for a good or service will drop by some predictable percentage as production increases, and passing these savings along to the consumer in the form of reduced prices is known as ________ pricing.

Experience curve

What is cost leadership strategy?

Focuses on lowering product prices while targeting a broad array of market segments

Which of these are the primary capabilities of the Internet that provide building blocks for buyer-seller relationships? (Select all that apply)

Interactivity Individuality

What is an advantage of direct marketing?

It can be customized to match the needs of a target market.

Which of the following product categories is the best example of an oligopoly?

Jetliners

Assorting, storing, sorting, and transporting are ________ functions of intermediaries.

Logistical

Select two common types of marketing plans.

Long-range and annual

Identifying results that deviate from plans to diagnose their causes and take new actions is known as ______.

Management by exception

Which of the following are true about supply chains?

Managers must often make trade-offs between efficiency and responsiveness of their supply chains. Choice of a supply chain should reflect customer needs.

The order in which each promotional tool is introduced and the frequency of its use during the campaign is set by a ______ schedule.

Promotional

What is a differentiation focus strategy?

Requires products to have significant points of difference to target a single or a few target markets

Form of ownership, level of service, and merchandise line are ways that ________ can be classified.

Retail outlets

The process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal is known as ______ logistics.

Reverse

Both single- and limited-line stores that carry a tremendous depth of merchandise are often referred to as ______.

Specialty outlets

If the Director of Marketing Research can advise other directors but cannot give them direct orders, this is an example of a(n) ________ position.

Staff

According to the price equation, to find the actual price, you should do which of the following to the list price? (Select all that apply)

Subtract incentives and allowances, add extra fees

The integration and organization of information and logistics activities across firms in a supply chain in order to create and deliver products and services to provide value to customers is referred to as ______ management.

Supply chain

Which of the following is a reason that a producer would use a manufacturer's branch to perform wholesaling activities?

There are no intermediaries to perform these activities.

What are two important benefits provided by retailers?

They provide value in the form of consumer utilities. They have a positive impact on the economy.

The strategic management process can be plagued by which of the following problems?

Too much time may be spent creating plans that are too complex to implement, planners and their plans may have lost sight of their customers' needs.

Professionally managed and centrally coordinated marketing channels that are designed to achieve channel economies and maximize marketing impact are known as ______.

Vertical marketing channels

What two questions would be asked by a firm looking to increase differentiation according to the four action grid?

What factors should be created that an industry has never offered? Which factors should be raised or improved well above an industry standard?

Price differentials under the Robinson-Patman act are legal under what two circumstances?

When price differences result from changing market conditions, and when price differences attempt to meet competitors' prices and do not injure competition

A(n) _______ buys products from manufacturers and resell them to retailers.

Wholesaler

In a consumer market, an intermediary who sells to other intermediaries is called a(n) ______.

Wholesaler

Manufacturer's agent

Works for several producers carrying noncompetitive merchandise in an exclusive territory

Charging different prices for a product in order to maximize revenue for a set amount of capacity at any given time is known as ________ pricing.

Yield management

The typical relationship between price and demand is shown as ______.

a downward sloping demand curve

Depth of product line means that a store carries ______.

a large assortment of each item

Vertical price fixing might occur between ______.

a manufacturer and a retailer in the same channel

A product or program champion is ______.

able to cut the red tape within an organization and move the program forward

Logistics involves ______.

activities that focus on getting the right products to the right place at the right time at the lowest possible cost

Which are deviations that should be identified by the marketing manager during the evaluation phase of the strategic management process?

actual results exceed goals actual results fall short of goals

Each intermediary in the marketing channel ______.

adds value in terms of the functions it performs

A one-price policy means there is one price for ______.

all buyers of the product

In a general merchandise store, the ______ of product line is large but the _______ of products is often limited.

breadth; depth

How does a firm decrease costs according to the four action grid?

by eliminating and reducing prevailing industry factors that are no longer necessary

Compared to other company objectives, the sales objective ______.

can be translated more easily into meaningful targets for marketing managers

Which limited-service wholesaler takes title to merchandise but sells only to buyers who call on them, pays cash for merchandise, and furnishes their own transportation for merchandise?

cash and carry wholesalers

One of the greatest marketspace opportunities is creating form utility, such as the ability of _______.

consumers to customize or personalize a product

Organizations choosing competitor-oriented approaches to set prices might use which two pricing strategies?

customary pricing loss-leader pricing

Which two are among the reasons that consumers typically shop and buy online?

customization control

What are the three steps in the promotional decision process?

developing, executing, and assessing the promotional program

Select two ways that firms can seek competitive advantage, according to a generic business strategy?

differentiating itself by developing points of difference in its product offerings, becoming the low-cost producer in the markets in which it competes

Within an IMC program, customizing communication with ______ results in improved attitudes and thus solidifies customer relationships.

direct marketing

Annual marketing plans place a heavy emphasis on which elements?

elements of the marketing mix segmentation, targeting and positioning revenue and expense projections

As it pertains to implementation, "paralysis by analysis" is the tendency to ______.

excessively analyze a problem instead of taking action

Stores that carry a broad product line, with limited depth, are referred to as ________ stores.

general merchandising

Personalization allows customers to

generate the desired information on a seller's website to meet individual needs.

What are the steps involved when aligning a supply chain with a marketing strategy?

harmonize the supply chain with the marketing strategy understand the customer understand the supply chain

Which are guidelines for improving the implementation of marketing programs?

have a responsible program champion communicate goals and the means of achieving them

When franchisees like car dealerships believe they are located too close to each other, ______ might arise.

horizontal channel conflict

Analysis using share points can help managers determine ______.

how to make resource allocation decisions

Despite the Sherman Act and its implications for price fixing, a "manufacturer's suggested retail price" (MSRP) is

illegal only when enforced through coercion.

Which topics would be covered by long-range marketing plans?

marketing decisions covering product additions and deletions, new marketing initiatives that will be carried out in the next two years

Which profit-oriented pricing objective is common in many firms because the targets can be set and performance measured quickly?

maximizing current profit

Goals and marketing metrics allow a manager to ______.

measure the effectiveness of marketing activities

Marketing ROI is the application of modern ______.

measurement technologies to understand, quantify, and optimize marketing spending

A marketing manager considers pricing objectives and constraints to ______.

narrow the range of choices among the variety of pricing strategies

The all-you-can afford method of promotion budgeting has been criticized for ______.

not being based on the promotion-sales relationship nor on promotion objections

In the percentage of sales method of promotion budgeting, funds are allocated to promotion as a percentage of ______.

past or anticipated sales

Value is defined as ______.

perceived benefits divided by price.

The ________ method for promotion budgeting is a simple approach, but may not correctly allocate funds that may be necessary when a product faces an actual or anticipated downturn.

percentage of sales

What are the two dimensions of choice as it relates to reasons consumers shop and buy online?

product and service selection assistance in making choices

Common approaches to pricing are oriented around which four elements?

profit demand competition cost

Price elasticity of demand is expressed as percentage change in ________ divided by the percentage change in ________.

quantity demanded; price

Which three items would be subtracted from the list price in order to arrive at the final price of a product?

rebates, discounts, trade-ins

A pricing objective of increasing sales can have the disadvantage of leading to price cuts that may ______.

reduce the revenues of related products in the firm's line

What are two benefits associated with reverse logistics?

reduced waste in landfills lowered operating costs for companies

Experience curve pricing entails ______.

reducing prices in a systematic way over time based on the learning effect

A blue ocean strategy would suggest that companies ______.

reimagine the marketplace

Which would be considered an output metric for innovation?

revenue growth due to new products or services

Adding a fixed percentage to the cost of all items in a specific product class is known as ________ pricing.

standard markup

Cost-plus pricing entails ______.

summing total units costs and adding a fixed percentage or fee to arrive at a price

Decisions regarding which two factors affect the selection of a marketing channel and intermediaries?

target market coverage buyer requirements

Which two are profit-oriented approaches to setting a price?

target return pricing target profit pricing

Which could be part of a cost focus strategy?

targeting a narrow range of market segments offering lower prices than competitors

How do a firm's channel members affect the price a firm can charge for its products?

the channel members must earn a profit, which raises the price

A corporate vertical marketing system is described as ______.

the combination of successive stages of production and distribution under a single ownership

Bundle pricing refers to ______.

the marketing of two or more products in a single package price.`

For managers to make use of share points for resource allocation decisions, they must estimate ______.

the revenues associated with each point of market share the market share for the product possible cannibalization effects on other products

Which two contribute to the difficulty in accurately measuring the impact of multichannel marketing?

the task of assigning credit to various channels for their roles, and the large amount of data collected about all stages of the purchase decision process

What are the three functions performed by intermediaries in a marketing channel?

transactional functions logistical functions facilitating functions

The Clayton Act specifically prohibits which two practices that might arise in channel management?

tying arrangements exclusive dealing

What two practices are legal, but sometimes viewed as anticompetitive and possibly in violation of the Clayton Act?

vertical integration dual distribution

Blake recently started a security system company. Blake gives Joe, a digital media consultant, a security system for his home if Joe will produce Facebook advertising for Blake's company. This is an example of ______.

Barter

________ of product line refers to the variety of different items in different categories that a store carries.

Breadth

You sell picture frames at your business, and because they're flying off the shelves you decide to give your salaried managers a 5% raise. What does this do to your break-even point?

Fixed costs increase, so the break-even point does as well.

Pricing objectives involves specifying the role of price in what two areas of an organization?

In its marketing and strategic plans

______ account for most of the retail establishments in the United States.

Independent retailers

Which are emphasized today, as companies try to more effectively implement their strategic marketing plans?

allowing for marketing actions to be frequently assessed and adjusted, making sure planning activities are shared throughout the organization

According to the price equation, the actual price is the list price less _____, plus extra fees.

incentives and allowances

Which is related to the dramatic growth of direct marketing?

increasing interest in customer relationship management

Many logistics costs are interrelated; for example, increasing inventory costs with additional warehouses should result in ______.

reduced transportation costs

What strategy emphasizes the simultaneous pursuit of product or marketing program differentiation and lower cost in newly configured industries and markets?

Blue ocean strategy

Electronic shopping agents that search websites to compare prices and product or service features are called ______.

Bots

A shoe store that offers running shoes, dress shoes, and children's shoes is said to have ________ of product line.

Depth

A ________ strategy requires products to have significant points of difference to target one or only a few market segments.

Differentiation focus

When two or more competitors explicitly or implicitly set prices, this practice is called ________ price fixing.

Horizontal

The number of R&D projects would be considered a(n) ______.

Input metric for innovation

If a product manager has the authority to issue orders to the marketing assistant that works for him or her, this is an example of a(n) ______ position.

Line

Those activities that focus on getting right amount of the right products to the right place at the right time at the lowest possible cost are known as ______.

Logistics

What is monopolistic competition?

Many sellers who compete on non-price factors

When a marketing organization uses a combination of market-based groupings and product groupings to implement its plans, it results in a ______.

Matrix organization

A ________ quantity discount is based on the amount purchased in a single order, and encourages a large individual purchase.

Noncumulative

According the the value equation, an increase or a decrease in ______ will affect value.

Perceived benefits

Movement along a demand curve implies a change in ______.

Price charged

When a line of products is priced at a number of different specific pricing points, the ______ strategy is being used.

Price lining

How does a skimming pricing strategy approach price setting?

Prices are set high initially and then lowered in a series of steps.

When a manufacturer produces several products that are substitutes for one another and others that complement these products, it should use ______.

Product-line pricing

In logistics, flow refers to ______.

activities to move a products from the source of raw materials to consumption

Customerization uses ______ and ______ to expand the exchange environment beyond a transaction to make the shopping and buying an enjoyable, personal experience.

choiceboards personalization systems

While considering your competition in promotional budgeting is important, use of ________ budgeting may not be effective if you have different promotional objectives that will be implemented with different expenditures.

competitive parity

Select the responses sellers hope to create through its use of direct marketing tactics.

lead generation traffic generation direct orders

A marketing manager uses price lining when he ______.

sells several groups of the same type of product, with each group priced at different specific pricing points

Which activity takes place once the design of the promotional program is complete?

set the promotion schedule

In administered vertical marketing systems, coordination is achieved through one channel member influencing another, often based on ______.

size

An administered vertical marketing system is described as ______.

the coordination of production and distribution through the size and influence of one channel member

In choosing a supply chain, it is important to make sure that what the supply chain is capable of doing well is consistent with what two things?

the targeted customer's needs the firm's marketing strategy

When using competition-oriented pricing approaches, price setters stress ______.

what "the market" is doing

When it comes to selecting a marketing channel, what is the critical dimension of profitability?

willingness of channel members to share channel costs

Individuals working for the real-estate company Century 21 to bring together buyers and sellers of residential homes would be considered ______.

Brokers

The process that automatically groups consumers with similar buying intentions, preferences, and behaviors and predicts future purchases is called ______.

Collaborative filtering

Campbell's Soup has been able to lower its prices because of product development and supply chain systems for its products that have wide appeal. Campbell's is using a ________ strategy.

Cost leadership

Selling via the Internet reduces which pricing constraint?

Cost of changing prices

The practice of not only customizing a product or service but also personalizing the marketing and overall shopping and buying interaction for each customer is referred to as ______.

Customerization

A ________ strategy requires products to have significant points of difference in product offerings, brand image, higher quality, advanced technology, or superior service to charge a higher price while targeting a broad array of market segments.

Differentiation

A(n) ________ business strategy is one that can be adopted by any firm, regardless of the product or industry involved, to achieve a competitive advantage.

Generic

The management at Target stores was angry with Goodyear Tire Company about its decision to also sell its brand through Walmart. This is an example of ______.

Horizontal channel conflict

Quantitative goals and specific marketing metrics were developed in an earlier stage of the strategic marketing process in order to do what during the evaluation phase?

Identify deviations

Broker

Independent entities who bring together buyers and sellers, with whom they do not have continuous relationships

Advertising and personal selling help reduce the buyer's anxiety in the ________ stage of the buying decision, but public relations pays only a small role at this stage.

Postpurchase

When a pharmaceutical company uses the phrase "Ask your doctor if Zetia is right for you" in its print advertising, it is an example of a(n) ________ strategy.

Pull

Which of the following are true of online consumers?

They are more affluent and better educated than the general population. They are likely to be younger than the general population.

Netflix is able to suggest movies for its existing customers based on their previous viewing and ratings, through the use of ______.

collaborative filtering

A website that emphasizes the actual sale of products and services must include which design elements?

content commerce context

Which are challenges facing direct marketers in global markets today?

countries with less reliable and secure mail systems countries with mandatory "opt-in" requirements lack of credit and credit cards in different parts of the world

According to the four action grid, a firm can increase differentiation by ______.

creating and raising industry factors that are new and improved relative to existing conditions in the marketplace

GE sells its large appliances directly to home and apartment builders but uses retail stores like Lowe's to sell to consumers, in a strategy known as ______.

dual marketing

Individuality in a buyer-seller relationship means that marketers must treat customers as individuals and empower them to ______.

influence the timing and extent of the buyer-seller interaction, have a say in the kind of products and services they buy, and have a say in the information they receive

What are the approaches used in viral marketing?

Embed a message in a product that customers then pass along, make a website so compelling that viewers will want to share it, offer incentives such as discounts or coupons

When Facebook allows you to upload a picture of yourself and to show your preferences to your friends, Facebook is leveraging the _____ capability of the Internet.

Individuality

What is pure competiton?

Many sellers who follow the market price for identical, commodity products

An effective ________ displays on a computer screen the actual results that vary significantly from plans, which alerts managers to potential problems and may ultimately lead to improved marketing ROI.

Marketing dashboard

What are two of the most meaningful measures of retailing's impact on the global economy?

Number of employees, sales volume

The best approach to promotion budgeting is ________, though it requires careful judgment.

Objective and task

Higher levels of complexity, risk, and ancillary services for a product will result in the use of more ________ in the promotional mix.

Personal selling

According to a survey of business executives, about 40 percent of a strategy's potential is lost due to ______.

Poor implementation

What factors must be taken into consideration to determine the "right" price for a product? 1. Will enough money be made to pay for the development and production of the product? 2. Will the product produce more money than competitors' products? 3. Will it generate enough sales dollars to pay for the marketing of the product? 4. What costs can we eliminate in order to make more money on the product? 5. Will the product provide a profit for the company? 6. What are customers willing to pay for the product?

1, 3, 5, 6

Trade-in and promotional ________ are reductions for list or quoted prices for performing some activity.

Allowances

A pricing constraint firms face is the price that its _________ are currently charging and likely to charge in the future.

Competitors

What is a characteristic of bundle pricing?

Consumer value is enhanced by not having to make separate purchases.

Estee Lauder manufactures MAC cosmetic products and also owns the MAC retail stores. This is an example of a ________ marketing system.

Corporate vertical

Pricing approaches that consider the production and marketing costs and then add enough to cover direct expenses, overhead, and profit are ______ approaches.

Cost-oriented

Manufacturers often use intermediaries to distribute their products because intermediaries ______.

Create value for buyers

Hershey changes the amount of chocolate in its candy bars depending on the price of raw chocolate rather than changing the price of the product because this product is sold with ________ pricing.

Customary

What marketing channel allows consumers to buy products by interacting with various print or electronic media instead of a face-to-face meeting with a salesperson?

Direct to consumer marketing

An arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product is known as ______.

Dual distribution

When a 1 percent decrease in price produces more than a 1 percent increase in quantity sold, the product or service is ______.

Elastic

The practice of replacing promotional allowances with lower manufacturer list prices is known as ________ pricing.

Everyday low

What are two general methods for quoting prices related to transportation costs?

FOB origin pricing Uniform delivered pricing

Which three of the following must be done before an approximate price level can be selected?

Identify pricing objectives and constraints Estimate demand and revenue Determine cost, volume, and profit relationships

For business products, a(n) ________ performs a variety of marketing channel functions, including selling, stocking, delivering a full product assortment, and financing.

Industrial distributor

The marketing channel for business products sometimes features a(n) ________, which in many ways is like a wholesaler in consumer channels.

Industrial distributor

When a 1 percent decrease in price results in less than a 1 percent increase in quantity sold, demand for the product or service is ______.

Inelastic

Although it is not always the case, many firms expect the unit cost of a product to drop significantly as the accumulated volume sold increases, an effect known as the ________ effect.

Learning

When a firm sells more product than is necessary to cover its total costs, it will ______.

Make a profit

Firms often pursue ________ as a pricing objective when industry sales are relatively flat or declining.

Market share

Pure monopoly

One seller who sets the price for a unique product

Organizations using ________ pricing set the initial price low for the introduction of the new product to appeal immediately to the mass market.

Penetration

The ability to attract price sensitive customers and discourage competitors from entering a market make which pricing strategy appealing?

Penetration

What element of the marketing mix has a unique role in that it is the place where all other business decisions come together?

Price

Cost-oriented approaches to pricing consider which three things in the setting of a product's price?

Production costs Profit Overhead

In what pricing strategy are prices lowered in a series of steps with the demand by those who really desire the product being satisfied at the highest prices?

Skimming pricing

In ________ pricing, an organization estimates what consumers are willing to pay for a product, and works backward, accounting for markups by retailers and wholesalers, to determine what it can charge for the product.

Target

When a board of directors determines a specific profit goal, marketing managers usually implement a(n) ______ objective.

Target return

Fixed cost divided by unit price less unit variable cost is known as ______.

The break even point

Organizations can be most effective using skimming pricing under which two conditions?

The product is protected by patent. The customer understands and highly values the product.

In what way does the demand curve for prestige pricing differ from the typical demand curve?

There is a point below which a reduced price reduces sales volume, resulting in a backwards C-shaped curve.

The pricing objective known as ________ can be counterproductive if it is achieved by drastic price cutting that drives down profit.

Unit volume

Creative marketers engage in _________ when they increase product and service benefits while maintaining or decreasing price.

Value pricing

A characteristic feature of a prestige demand curve is that as price is lowered, the curve turns back to the left toward its initial level. Why is this so?

because of reduced demand

Adding a fixed percentage or fixed fee to the total costs for a product is known as ________ pricing.

cost plus

In the long run, a firm's ______ and those of its distributors set a baseline for a product's price, allowing the firm to both survive and get its product to consumers.

costs

Select all of the following that are benefits of a penetration pricing strategy.

discourages competitors production costs drop with increased volume potential to gain market share

The ______ effect states that the unit cost of many products and services declines by 10 to 30 percent each time a firm's experience at producing and selling them doubles.

learning

A strategic channel alliance involves ______.

one firm's marketing channel being used to sell another firm's products

What are three types of franchise arrangements?

service-sponsored retail manufacturer-sponsored retail manufacturer-sponsored wholesale

The newer a product and the earlier it is in its life cycle, ______.

the higher the price that can usually be charged