Marketing exam 4

Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their auto body shops to use Glasis paint is an example of how a company uses ________.

A Pull strategy

What is a category killer? Provide an example and a description of a category killer.

A category killer is a giant specialty store that carries a very deep assortment of a particular line. They feature stores the size of airplane hangars that carry a very deep assortment of a particular line. Category killers are found in a wide range of categories, including electronics, home-improvement products, books, baby gear, toys, linens and towels, party goods, sporting goods, and even pet supplies.

The manufacturer of Crest toothpaste provides free samples of its toothpaste to dentists and encourages them to distribute these samples to their patients and to inform the patients about advantages of using Crest. The manufacturer of Crest toothpaste is using ________.

A push strategy

Describe the levels of service that retailers can offer. Provide an example of each type of retailer.

Amount of service can include self-service to serve customers who are willing to perform their own locate-compare-select process to save time and money. It is the basis of all discount operations and typically used by retailers selling convenience goods. Examples include supermarkets, Target, and Kohl's. It can also include limited-service retailers that provide more sales assistance because they carry more shopping goods about which customers need information. Examples include Sears and JCPenney. The third type is full-retailers that assist customers in every phase of the shopping process. These stores usually carry more specialty goods for which customers need or want assistance or advice. Examples include Nordstrom or Neiman Marcus.

The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ________.

Atmosphere

Boson Corp. is introducing consumers to its new car with the help of an advertisement campaign. This introductory campaign most likely aims to affect the ________ stage of buyer-readiness.

Awareness

Which of the following wholesaler's channel functions is exemplified by buying in carload lots and then dividing these lots into small quantities?

Bulk breaking

A ________ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer.

Channel level

To ________, a marketer would most likely ask target audience members whether they remember the message, how many times they saw it, and what points they remember.

Collect feedback

Describe the types of products that are intensively distributed and provide examples.

Convenience products and common raw materials must be available where and when consumers want them; examples include chewing gum, soft drinks, and toothpaste. Student examples will vary.

________ sell standard merchandise at lower prices by accepting lower margins and selling higher volume.

Discount Stores

The Bookworm began delivering books directly to customers through mail instead of selling through brick-and-mortar companies. This is an example of ________.

Disintermediation

One of the message structure issues that a marketer must handle is whether to ________.

Draw a conclusion or not (present strongest arguments first or last)

Cabela's stores are as much natural history museums for outdoor enthusiasts as they are retail outlets. This information indicates that Cabela's is practicing ________.

Experiential retailing

Department stores carry narrow product lines with deep assortments within those lines. (T/F)

False

The number of products supplied indicates the length of a channel. (T/F)

False

The ________ organization is the most common type of contractual relationship.

Franchise

Which of the following companies uses a direct marketing channel?

Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-to-order catalogs

Outline the steps in developing effective marketing communications.

In preparing marketing communications, the marketer's first task is to identify the target audience and its characteristics. Next, the marketer has to determine the communication objectives and define the response sought, whether it is awareness, knowledge, liking, preference, conviction, or purchase. Then a message should be constructed with an effective content and structure. Media must be selected, both for personal and nonpersonal communication. The marketer should find highly credible sources to deliver messages. Finally, the communicator must collect feedback by watching how much of the market becomes aware, tries the product, and is satisfied in the process.

Which of the following statements is true regarding the affordable method for setting a promotion budget?

It completely ignores the effects of promotion on sales.

For which product would a company use an exclusive distribution strategy?

Luxury cars

Marketing management must make four important decisions when developing an advertising program. Briefly describe these four decisions.

Marketing management should first set advertising objectives, which can be classified by primary purpose: to inform, persuade, or remind. Next, the advertising budget needs to be determined, which will often depend on the product's stage in the product life cycle. The third step is to develop an advertising strategy, which involves message decisions and media decisions. The last step is to evaluate the effectiveness of the advertising campaign.

Which of the following most likely requires the smallest advertising budget?

Mature brands

An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Gigi Hadid and offered readers a $2-off coupon when they tried the new makeup. In terms of the communication model, the sender of this message is ________.

Maybelline

Movie Giants offers DVD rentals through its Web site. It also offers DVD rentals via Star City stores. This is an example of a(n)________ distribution system.

Multichannel

Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result.

Percentage of sales

In-store demonstrations, displays, sales, and loyalty programs are examples of ________.

Personal selling

________ becomes more important as competition increases. With this type of advertising, a company's objective is to build selective demand.

Persuasive

Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of ________ activities used by retailers to promote themselves.

Public Relations

Explain why a public relations campaign can be a more cost-effective option for corporations than an advertising campaign.

Public relations can have a strong impact on public awareness at a much lower cost than advertising can. The company does not pay for the space or time in the media. Rather, it pays for a staff to develop and circulate information and to manage events. If the company develops an interesting story or event, it could be picked up by several different media, having the same effect as advertising that would cost millions of dollars. And it would have more credibility than advertising.

Describe public relations and any three of its main functions.

Public relations departments build good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. Some of its functions are: -Product publicity: publicizing specific products -Public affairs: building and maintaining national or local community relations -Lobbying: building and maintaining relations with legislators and government officials to influence legislation and regulation -Press relations: creating and placing newsworthy information in the new media to attract attention to a person, product, or service associated with the company -Investor relations: maintaining relationships with shareholders -Development: working with donors or members of nonprofit organizations to gain financial or volunteer support

Retail stores can be classified in terms of several characteristics. Name four of them.

Retail stores can be classified based on the amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized.

Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________.

Reverse Logistics

________ is a type of service offered by those retailers who serve customers that are willing to perform their own "locate-compare-select" process in order to save money.

Self-Service

Which term refers to looking at merchandise at a traditional store and then purchasing the merchandise online?

Showrooming

You want to advertise your new product. You want good mass marketing coverage and low cost per exposure. You also want to combine sight, sound, and motion and make the advertisement appealing to the senses. You should choose ________ as your advertising media.

Television

What are the advantages of multichannel distribution systems? Illustrate your answer with an example.

The multichannel distribution system is a method or structure in which a single company sets up two or more sales and marketing channels to reach one or more customer segments—through a brick and mortar store, an online marketplace like Amazon or eBay, a large retailer, wholesale, direct marketing or resellers Multichannel distribution systems exist when a single firm sets up two or more marketing channels to reach one or more customer segments. Such a system offers advantages to firms facing large and complex markets. It allows the firms to expand sales and market coverage. It allows firms to tailor their products and services to the specific needs of diverse customer segments. Larger bottom-line profits may result.

Describe the six buyer-readiness stages along with the marketing strategies used at each stage.

The six buyer-readiness stages are awareness, knowledge, liking, preference, conviction, and purchase. A marketer might use teaser ads to create interest, anticipation, and curiosity at the awareness stage. Next, marketers want to inform potential buyers of the product's high quality and its many features. Beyond knowledge, marketers want to move consumers to have stronger feelings about the product, going from liking to preference to conviction, or believing that a product is the best for them. A combination of promotion tools can be used to create positive feelings and a customer connection with the brand. The final stage is purchase, which marketers may influence through the use of premiums, upgrades, or rebates.

A company's channel decisions directly affect the prices of its products. (T/F)

True

Like retailers, wholesalers must decide on product and service assortments, prices, promotion, and place. (T/F)

True

Many shoppers now check out merchandise online and then buy it in-store. This process is called webrooming.

True

Marketers can choose from two basic promotion mix strategies—push promotion or pull promotion. Compare these two strategies.

Using the pull strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product; if the pull strategy is effective, consumers will then demand the product from channel members, who will in turn demand it from producers. Using a push strategy, the producer focuses instead on the channel members, persuading them to carry the product and promote it to final consumers.

A ________ is made up of the company, suppliers, distributors, and customers who partner to improve the performance of the entire system.

Value delivery network

When KFC came into conflict with its franchisees over the brand's Unthink KFC repositioning, which emphasized grilled chicken over its traditional Kentucky fried chicken, KFC experienced ________ conflict.

Vertical

While using integrated marketing communications, the communications process should start with a(n) ________.

audit of all potential customer touch points

Which of the following is a major step in selecting advertising media?

determining reach, frequency, and impact

Which of the following is an environmental factor that affects channel objectives and design?

economic conditions

HP's advertising agency assembles words and illustrations into an advertisement that conveys the company's intended brand message. In the context of the communication process, HP is ________.

encoding

The greater the number of channel levels in a marketing channel, the ________.

greater the channel complexity

Based on the target audience, the communicator makes decisions regarding what will be said, who will say it, when it will be said, where it will be said, and ________.

how it will be said

Carey David's wholesale company helps retailers train salesclerks, improve store layouts and displays, and set up inventory control systems. According to this information, which of the following wholesaler's channel functions does Carey David provide?

management services and advice

In addition to segmenting and targeting the correct market, which of the following is NOT an area in which marketers must make decisions?

manufacturing schedules

Pepsi being prominently featured on episodes of Empire is an example of ________.

product placement

Advertising has numerous goals. Which of the following is NOT one of those goals?

to work with lobbyists and legislators in developing industry regulations