MKT MGT - Exam 2

Pioneering advertising tends to be used during the ______ stage of the PLC. Introductory, growth, and maturity Maturity Introductory Both introductory and growth Growth

Both introductory and growth

Bob's Oil-change is a one-person small business in town. He has a annual fixed cost of $49,000. Additionally, he pays himself $50,000 per year. Bob charges $25.99 for an oil change which is the lowest price in the town. The cost of all the materials for each vehicle's oil change is $ 9.49. Bob works 250 days a year and puts in 9 hours per day from 8 AM to 5 PM, less an hour for lunch. Bob has to service an average of about ____ vehicles per day so as to not lose any money for the year. 16 (2 per hour) cannot be determined from the information provided 64 (4 per hour) 24 (3 per hour)

24 (3 per hour)

If price of a can of Pepsi is $0.25 at HyVee and it costs $0.18 cents for HyVee to make it available on the shelves for customers, HyVee's contribution margin is 25 cents 18 cents 7 cents cannot be determined from the information provided

7 cents

_______________ is often part of an overall positioning strategy built on prestige, scarcity, and premium pricing. Exclusive distribution Widespread distribution Intensive distribution Selective distribution Convenience distribution

Exclusive distribution

______________________ is a characteristic of a great sales presentation. Explaining the value proposition Focusing on technology Emphasizing features over benefits Maximizing change conflict Developing win-lose solutions

Explaining the value proposition

One can eliminate intermediaries, AND their functions. True False

FALSe

The presence of channel members INCREASES costs to the end consumers. True False

FAlse

The presence of channel members INCREASES costs to the end consumers. True False

False

______ measures the average number of times a person in the target market is exposed to the message. Frequency Relevancy Noise Impact Reach

Frequency

_________________ refers to sourcing materials and knowledge inputs from external suppliers to the point at which production begins. Outbound logistics Order processing Reverse logistics Enterprise resource planning (ERP) systems Inbound logistics

Inbound logistics

In a push strategy ________________________. Members of the channel are targeted for promotion End users drive the distribution of the new product Members typically rely on advertising The focus is on end users

Members of the channel are targeted for promotion

__________________ require that a certain percentage markup be applied to all products. Minimum markup laws Fair trade laws Loss leader products State fair trade laws

Minimum markup laws

____________ has (have) the advantage of interactive capabilities. Television Online and social media Direct mail Radio Newspaper

Online and social media

Be careful with a __________________ strategy. Because price is a cue for developing customer perceptions of product quality, the value proposition may be reduced if a low price belies the product's actual quality attributes. Target ROI Value pricing Price skimming Competitor-based pricing Penetration pricing

Penetration pricing

When a firm's objective is to gain as much market share as possible, a likely pricing strategy is _________________, sometimes also referred to as pricing for maximum marketing share. Target ROI Competitor based pricing Value pricing Price skimming Penetration pricing

Penetration pricing

___________________ is the most popular approach to promotion budgeting. All-you-can-afford method Percent-of-sales method Desire and action method Objective-and-task method Comparative parity method

Percent-of-sales method

Giovanni's Gems is a high-quality Italian leather goods store in Manhattan. Giovanni runs an Internet site where people can buy his products and he will charge the same delivery fee to any location within the 48 contiguous states. Giovanni utilizes ______________. Zone pricing FOB pricing Post office pricing Geographically driven pricing

Post office pricing

______ measures the percentage of individuals in a defined target market who are exposed to an ad during a specified time period. Noise Impact Frequency Reach Relevancy

Reach

_____________ is any business activity that creates value in the delivery of goods and services to consumers for their personal, nonbusiness consumption and is an essential component of the supply chain. Depth of merchandise Retailing Variety Breadth of merchandise Customer touchpoint

Retailing

Among the several components of the product, which is the most dynamic in a competitive market place? [If more than one answer appears to be correct, choose the best answer.] competitive perceptions augmented core benefits aspirational benefits

augmented

Which of the following statements holds true for a buying center? each person in the buying center plays only one role buying centers are most commonly used in new-buy situations one person in the buying center can play mutiple roles buying centers engage in team selling several people in the buying center can play the same role

buying centers are most commonly used in new-buy situations one person in the buying center can play mutiple roles several people in the buying center can play the same role

Companies lose customers all the time. This is called: [Mark all answers that are correct to receive the full points. Each wrong answer results in partial loss of points assigned to the question; however, negative overall score for the question is prohibited.] customer switching customer disloyalty customer mortality customer migration customer hatred customer churn

customer switching customer mortality customer migration customer churn

Which of the following intermediaries DO NOT take possession of the product? Jobber Agent Retailer Merchant Broker

Agent Broker

The cognitive step of the AIDA model is __________________________. Desire Interest Attention Advertising Remembering action

Attention

___________ is not a source of channel power. Referent power Expert power Consumer power Reward power Legitimate power

Consumer power

What does the acronym CPM stand for in marketing? Cost per Millenia Cost per Million Cost per Thousand Cost per Hundred

Cost per Thousand

Heather runs Cute Cakes, a gourmet cupcake bakery. To set prices for her cupcakes, Heather looks at the cost of making each cupcake and then adds an additional amount on top of that to arrive at her price. Heather is demonstrating _____________. Markup on sales price Cost-plus pricing Price war Average-cost pricing Target return pricing

Cost-plus pricing

__________________ is (are) considered by the customer when making a purchasing decision. Disintermediation costs for the customer Costs incurred by the customer in acquiring that bundle of benefits Costs incurred by the seller in serving the customer Opportunity costs of choosing one offering over another Time invested in the purchasing process

Costs incurred by the customer in acquiring that bundle of benefits Opportunity costs of choosing one offering over another Time invested in the purchasing process

Ask your friends which country produces the best perfume and most likely the answer will be "France." This shows the issue that international consumer marketers face of _________. Manufacturing Fitting the product to the culture Brand strategy Country-of-origin effect Quality

Country-of-origin effect

Prospecting for new customers is a _____________________. Replacement for branding Critical function in maintaining growth Way to build trust Replacement for lead generation Tool to reinforce customer awareness

Critical function in maintaining growth

Which of the following statements are true? Marketers perfer that markets be in equilibrium. Demand creates supply. In the marketplace, marketers have more power than consumers. Consumers' perceived value dictates price. Consumers balance their self-interests with their social-consciousness.

Demand creates supply. Consumers' perceived value dictates price. Consumers balance their self-interests with their social-consciousness.

A ________________ has no intermediaries and operates strictly from producer to end-user consumer or business user. Agent intermediary Channel distribution Indirect channel Direct channel Merchant intermediary

Direct channel

You Are Here, a personal navigation system company, has contracted its manufacturing to a firm in Malaysia for five years. Now that You Are Here has explosive growth, it wants to purchase the manufacturing facility. This market entry method is _________. Direct foreign investment Joint venture Licensing Strategic alliance Direct sales force

Direct foreign investment

______________ are direct, immediate reductions in price provided to purchasers. Allowances Total costs Variable costs Fixed costs Discounts

Discounts

The simplest and most common method of organizing a company sales force is the ______ method. Product organization Workload type Market organization Customer type Geographic orientation

Geographic orientation

___________ involves the unauthorized diversion of branded products into global markets. Black Marketing Gray Marketing Guerrilla Marketing Market Development

Gray Marketing

The ____ the reach, the _____ the overall advertising campaign will be. The relationship between reach and the cost of an advertising campaign depends on many factors There is no relationship between reach and the cost of an advertising campaign Greater; more expensive Greater; less expensive

Greater; more expensive

In the __________ stage, advertising tends to increase and eventually peaks. Decline Growth Introduction Maturity

Growth

Firms which use price skimming strategies, especially on product introductions, even when all the bugs have yet to be worked out of the product, are operating in the _______ price/_____ benefits quadrant. High, low High, high Low, high Low, low

High, low

___________________ is the application of marketing concepts and strategies inside an organization. Direct marketing Personal selling Publicity Integrated marketing communications Internal marketing

Internal marketing

Geoff works at an Aspen ski shop. He has just gotten a shipment of new snowboards and realizes that the company has priced its snowboards higher than the rest of the boards in his shop. Since Geoff took a marketing class in college, he knows that the company is using ______________. Prestige pricing Reference pricing Price bundling Product line pricing Captive pricing

Prestige pricing

______________ is a critical component that plays into a customer's assessment of the value afforded by a firm and its offerings. Cost Service Quality Price Value

Price

Jean Claude has just completed a new line of designer handbags. He wants the price to communicate to the customer that the handbags are high quality, so he sets it high. He knows that after this season, the price will lower. Jean Claude is using _______________. Competitor-based pricing Target ROI Value pricing Price skimming Penetration pricing

Price skimming

A company's core cost advantages translate directly to an edge over its competitors based on much more flexibility in its __________________ as well as its ability to translate some of the cost savings to the bottom line. Pricing strategies Value ratio Quality Cost leadership Service

Pricing strategies

Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between ___________________. Consumers and transporters Producers and consumers Producers and transporters Producers and retailers

Producers and consumers

Carol Ann is trying to explain to one of her ticket counter associates the differences in price associated with concert tickets. She explains that the lowest-priced tickets are in the least desirable seats and the highest-priced tickets are in the most desirable seats, with the rest of the ticket prices falling somewhere in between. Carol Ann is describing ____________________. Prestige pricing Reference pricing Product line pricing Price bundling Captive pricing

Product line pricing

Doug runs a hardware store. He learned that customers process the price of $9.99 as significantly lower than the price of $10.00 because of the reduced digit count in the price point. Accordingly, he follows this rule to set up the prices for all products. Doug uses _____. One-price strategy High/low pricing Everyday low pricing (EDLP) Psychological pricing Variable pricing

Psychological pricing

Which of the following can be an UNPAID promotion? Sales promotion Publicity Public Relations Interactive promotion

Publicity

Ford launched a promotion to sell all of its 2017 inventory of Ford Fusion by giving dealers an additional incentive of $500 for each car they sold. This is an example of: Pricing strategy Push strategy Product strategy Pull Strategy

Push strategy

XYZ Office Supplies offers customers a $0.50 coupon for turning in their empty printer cartridges. XYZ collects the cartridges and then returns them to the producer for recycling. This is an example of __________. Enterprise resource planning (ERP) systems Reverse logistics Outbound logistics Inbound logistics Order processing

Reverse logistics

The ____ is the source of the message. Sender Media Noise Feedback Receiver

Sender

A major benefit that intermediaries provide to the market place is reconciling the different philosophies of consumers and producers. True False

T

Sudan should be classified as being in the __________ stage of development. Maturity Traditional society High mass consumption Take-off Preconditions for take-off

Traditional society

Introducing one intermediary into a channel can contribute to greatly _______________ that are necessary to complete an exchange. Disintermediation Reducing transactions Transportation and storage functions Creating assortments Facilitating functions

Transportation and storage functions

With __________________, customers are allowed—even encouraged—to haggle about prices. Variable pricing Psychological pricing High/low pricing One-price strategy Everyday low pricing (EDLP)

Variable pricing

In deciding on the right balance between control and flexibility in a channel, marketing managers must consider all of the following except _______________. Cost issues among the various options Weather conditions in target markets The type of products involved Likelihood that major changes will occur in the customer or competitive marketplace that would necessitate restructuring the channel Strength of belief in the accuracy of the sales forecast

Weather conditions in target markets