Marketing Unit 2
Business goods
goods purchased by an organization for use in its operation
Parity
having equality or similarity
Endorsements
involves using a celebrity or public figure to represent and promote a company and that company's product
Two common pricing objectives involve increasing profits and improving _____________________
market share
Product exclusivity
only one product in a product category is granted sponsorship
Manufacturer brands
owned by the producer of the product
Focus Group
panel of consumers who discuss opinions about a topic under the guidance of a moderator
Products and entitlements are two examples of
premium signage
Prestige Pricing
pricing based on consumer perception
Target Pricing
pricing goods according to what the consumer is willing to pay
Commercialization
process that involves producing and marketing a new product
A _________________ is a group of closely related products that are sold by a company
product line
Sponsorship
promotional vehicles that financially support sports events
Price lining
selling all goods in a product line at specific price points
Promotional packages for _____________ may include licensing rights, stadium promotions, product sampling, signage, product sales, billboards, hospitality opportunities, receptions with the athletes, free tickets, and on-site merchandising opportunities
sponsors
Product presentation
step in the selling process that should be developed around the customer's needs and wants
Publicity
the free mention of a product or company in the media
Brand equity
the value a brand has beyond its actual functional benefits
Point of difference
unique product characteristic or benefit that sets the product apart from a competitor's product
Brand name
word or words, letters, or numbers representing a brand
A __________ is a name, symbol, or word or words, or design that identifies an organization and its products
Brand
Develop, link, and help are the three steps in establishing ____________
Brand equity
Which of the following is a way to determine a promotional budget?
Percentage of sales, competitive parity, objective-and-task method
____________________ is a branding strategy that combines one or more brands to increase customer loyalty and sales for each product.
Co branding
These forms of sales promotion offer some type of price reduction or free merchandise
Coupons and rebates
Companies who use a promotional mix use the same formula
False
Fads have a long life cycle
False
Gander Mountain and Cabela's are examples of generic brands
False
In sports marketing, companies give free publicity to sports figures by putting their images on cereal boxes or shirts
False
Many companies avoid using publicity in their promotional mix because it so costly.
False
Print and broadcast media offer many advantages over direct marketing and online advertising
False
Secondary research is original research, which is usually conducted for a specific market situation
False
Telephone sales is an example of indirect selling
False
The Sherman Anti-Trust Act encourages price fixing and predatory pricing.
False
Which of the following is the last of the steps in the selling process?
Follow-up
____________________ represent a general product category and do not carry a company or brand name
Generic brands
Which type of advertising is used to generate goodwill rather than used for direct sales?
Institutional advertising
___________________ is an agreement that gives a company the right to use another's brand name, patent, or other intellectual property for a royalty or fee
Licensing
When a brand becomes very popular, its value becomes a competitive advantage because most consumers equate the brand with quality
True
A company purchases banner ads when adding this type of advertising to its promotional mix
Online advertising
___________________ is the difference between the retail or wholesale price and the cost of an item
Markup
_____________________ is the third part of the product life cycle
Maturity
Which of the steps in selling involves learning about the products and the potential customers?
Pre-approach
Companies send these items out when they want news coverage for something they have done
Press release
____________________ is the values placed on the goods or services being exchanged
Price
________________ is illegal and involves competitors conspiring to set the same prices
Price fixing
____________________is/are part of management of the product life cycle
Product modification, market modification, and repositioning
Which of the following could be part of a promotional mix?
Promotion, advertising, and personal selling
Which of the following activities are associated with event marketing?
Sales, distribution, promotion
When a sponsor buys ______________, its name appears on the scoreboard, floorboards, rafters, or even on a rotating screen at a game
Signage
When doing market research, secondary research is conducted before primary research because secondary research may actually answer all or part of a research problem or question
True
Which of the following is a form of print media?
direct mail, outdoor advertising, magazines
________________ is the legal name of a company, such as Reebok
Trade name
A channel of distribution may be direct, indirect, or both
True
A focus group may be asked to evaluate a new product
True
A press kit consists of promotional materials that can be used by the media, such as fact sheets, background information, press releases, and videotapes.
True
Advertising rates usually depend on the circulation, or size, of the audience that will be exposed to the ad.
True
All of the major sports organizations, including the Olympics, NASCAR, PGA, NHL, MLB, NBA, WNBA, and NCAA use sponsorships to help finance their operations
True
Baseball cards for a popular player or special occasion may be produced in a limited edition rather than in very large quantities, which creates a demand higher than the supply and allows the producer to charge a larger amount of money
True
Before the sales process begins, a salesperson can prepare with prospecting and pre-approach strategies
True
Companies associate their products with well known sports organizations in order to reach new customers and strengthen their relationship with their existing customers
True
Customers familiar with an original product are likely to trust a new product with the same brand
True
Data mining is a process of collecting data from one or more existing databases and looking for and finding relationships among that data
True
Depending on the intended use of the product, the same product could be both a consumer good and a business good.
True
E-mail and the Internet are examples of direct marketing
True
For a business to be successful, it must know its customers
True
If a manufacturer sells directly to customers on its website and in its retail stores, plus sells wholesale to other retail stores, the manufacturer is using multiple channels of distribution
True
Licensed merchandise can bear the name, logo, or other characteristics of the licensor
True
Multi-product branding is used when the manufacturer uses one name for all its products
True
One of the ways companies get new ideas for products is by reading customer complaints and/or merchandise returns.
True
Place decisions involve how you get your product into the hands of your customers
True
Price helps determine a company's profit and loss
True
Product-line pricing involves setting different markup percentages for each product so that the average markup is achieved for the entire line of goods
True
Products need to have a point of difference to make them stand out in the marketplace
True
Qualitative research data is seldom useful to marketers because the data is drawn from inferences
True
Sales promotions are usually part of an advertisement or personal sales pitch
True
Sports organizations may use a set percentage, or portion, of last year's sales or the coming year's sales to decide on the amount of the promotional budget.
True
The government may restrict the use of certain words in brand names
True
The problem with using competitive parity for forming a promotional budget is that each company's objectives may not be the same
True
The purpose for sports promotion is to generate sales, attract a targeted audience, and help create a positive image
True
To increase its market share, a company may lower the price of its product to do so
True
Top sports endorsers come from all sports, but they have one thing in common-they all have successful careers and good public images
True
An _____________________contract may include a set number of public appearances by the sports figure at various events sponsored by the company
endorsement
License
fee paid to use logo
Trademark
a device that legally identifies registered brand ownership of a trade name
Press release
a newsworthy article that provides the basic information to answer questions such as who, what, where, when, and why
Product item
a specific model or size of a product
Public relations
activities that promote the image and communications a company has with its employees, customers, investors, and public
Institutional advertising
advertising with a goal of developing goodwill or a positive image
Promotional advertising
advertising with a goal of selling an item
Promotional mix
any combination of advertising, sales promotion, publicity, direct marketing, and personal selling having equality or similarity
Advertising
any paid promotion of an idea, good, or service by an identified sponsor
_________________ is a pricing strategy that involves selling several items as a package for a set price.
bundle pricing
In which step in a new product development are the financial aspects of making and marketing the product reviewed?
business analysis
Cost-plus pricing
calculating all costs and expenses and adding desired profit
intermediary brands
carries a name developed by the wholesaler, retailer, or catalog house
Repositioning
changing a product's image in relation to a competitor's image
Objective-and-task method
companies set these objectives for their promotional budgets and deciding what promotional activities are necessary to reach those objectives
Facility entitlements
company purchases promotional rights to an entire stadium
If you purchased a pair of Nike athletic shoes in a retail store, the shoes would be considered a _____________________ good
consumer