MKTG 3650 Exam 3 Review
A commonly employed method for assessing advertising's financial performance is which of the following______ .
Comparing sales before, during, and after the campaign
Which of the following are characteristics of comparative advertisements?
Competing brands are directly compared with one another, usually by name Positives of the advertised brand are emphasized, negatives of the competing brands arehighlighted Consumers already using the competing brands are more likely to pay attention to the ad Comparative ads provide consumers more information upon which to make a choice. All of the above. (correct)
The ____________ is defined as those prices bounded by customer demand at the high end and costs at thelow end.
Competitive price range
__________ consists of ads that are linked to searches conducted by consumers via online search engines.
Contextual advertising or search engine advertising
The most costly form of media scheduling is ________ media schedule.
Continuity
When Sears decided to enter Mexico with its retail facilities it engaged in contractual agreements withqualified local manufacturers to produce products that Sears was merchandising and selling in its newMexican retailing facilities. This is an example of __________ for entering a foreign market.
Contract manufacturing
When Sears decided to enter Mexico with its retail facilities. Its strategy was to engage in contractualagreements with qualified local manufacturers to produce products that Sears was merchandising and sellingin its new Mexican retailing facilities. Sears ultimately desired to buy out these producers and take over theiroperations. This is an example of __________ for entering a foreign market.
Contract manufacturing
The primary benefit to consumers when buying from a vending machine is:
Convenience
The positive rewards accruing to consumers from purchase and use of a brand along with the use ofreminder advertising positively reinforce the consumer's brand purchase decision during the __________stage of the Hierarchy of Communications Objectives.
Conviction and brand loyalty.
The most severe remedy available to the FTC against firms charged with false, misleading, or deceptiveadvertising is __________ .
Fines.
Which method for estimating demand curves is least appropriate for the marketer of a new product.
Using historical ratios.
Machines that dispense products, video game machines, and bank ATMs all illustrate which form of retailing?
Vending
____________ is most likely to arise when manufacturers attempt to bypass wholesalers or retialers and selldirect to consumers.
Verical supply chain conflict.
_________ is often considered to be sales promotion directed at intermediaries because the cost of theintermediary's advertising is shared in part by the manufacturer
Vertical cooperative advertising
A retailer pays $75 for a leather jacket and desires a 65% mark-up on products of this type. What will be theprice to consumers for this jacket (Select the closest answer)
$214
A retailer pays a wholesaler $24.00 for an item and then sells it with a 50 percent markup based on cost. Theretailer's selling price is: (Select the closes answer)
$36.00
A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVCassociated with various levels of cumulative production volume. Based on the first lot of 1,000 units, AVC are$12.50 per unit. You may assume that this level of AVC is attained at the point where the first 1,000 unitsare produced. The producer expects an experience constant or rate of about .9. The experience constant orexperience rate is interpreted as:
*AVC declines by 10% with each doubling of cumulative output
Consider the following data: TFC = $1,500,000 per year; price = $.79; AVC = $.39. What is the UnitContribution? (Select the closest answer)
.39
Cash discount terms of 2/10, net 60 on an invoice would, in effect, amount to borrowing at an annualinterest rate of about ________ percent if the buyer did not pay the invoice within the 10 days allowed.
14
Consider the following data: TFC = $1,500,000 per year; price = $.79; AVC = $.39. What is the ContributionMargin? (Select the closest anwswer)
49%
A company is attempting to estimate the number of salespersons needed to serve its projected client basefor the upcoming year. The following information has been compiled by the sales management team: (1)There are 500 customers that must be served; (2) Customers must be visited on average 10 times per year;(3) The average sales call lasts 1 hour; and, (4) there are 1,300 hours of selling time available per rep peryear. How many sales reps will be required? Pick the closest answer.
4
For which of the following products would a retailer be LEAST likely to use odd pricing?
A designer evening dress
Denton Plumbing, Inc. buys plumbing supplies, piping, fixtures, and tools from different manufacturers andresells them to construction companies. Denton is MOST LIKELY:
A merchant wholesaler
Which of the following is the key characteristic of IMC?
A unified message is delivered to all stakeholders. Two-way communications are employed to solidify relationships with stakeholders All elements of the communications program are fully coordinated Marketing research is employed to understand the needs of stakeholders. All of the above are important. (correct)
Which of the following is not considered to be joint venturing for penetrating foreign markets?
Indirect exporting
When the US places limits on the amounts of certain products that can be imported into this country, theyare employing ____________.
Administrative tariffs
_________ is any form of one-way, paid communication delivered en masse through electronic, print, orInternet-based media with the purpose of informing, reminding, or persuading.
Advertising
13. Kellogg's "Share Your Breakfast" campaign used Facebook as the primary medium for its 2011 award-winning advertising campaign. In its ads, Kellogg urged consumers to submit their breakfast photos.Kellogg, for each photo, donated money to a nonprofit organization that provided free breakfasts toschoolchildren. This is an example of ____________ .
Advocacy advertising
In general, one-sided ads work better when consumers:
Are better educated, Already agree with the advertiser's position Already prefer the advertiser's brand All of a,b,c above Only b and c above. (correct)
Which of the following is not a key question a firm must address when deciding whether it should "goglobal?"
Are the firm's domestic sales sufficient to finance a move to global markets?
Supervising sales personnel includes which of the following?
Assisting reps with goal setting Providing timely and frequent feedback on performance Coaching reps to help them identify areas needing improvement The ability to empathize with reps' personal and professional situations All of the above are essential components of supervision. (correct)
Consumers who spread positive word-of-mouth about products or brands are called _________.
Brand evangelists
Consumers who spread positive word-of-mouth about products or brands ina n attempt to influence theiropinions are called _________.
Brand evangelists
A _____ is an independent agent wholesaling middleman that brings buyers and sellers together and providesmarketing information to both parties.
Broker
Which of the following is not a potential reason why firms should consider engaging in global marketing?
By going global firms can avoid the risks associated with fluctuating exchange rates
Advertising in which a firm's brand is directly compared against those of competitors is called:
Comparative advertising
The method of advertising budgeting in which the budget is set based on how much competitors may bespending is the ____________ .
Comparative parity method
Government agencies allow consumers to initiate transactions with government agencies, such as when theypay their taxes, pay traffic fines, or renew automobile registrations via the Internet. The online marketingdomain involved is ____________ .
C2G
Which of the following is a key question a firm must address when deciding whether it should "go global?"
Can the firm adapt its business model to accommodate differences in global cultures and supplychain structures? Can the firm identify, understand, and effectively respond to differences in consumer preferencesand buying behaviors in global markets? Does the firm have the relevant expertise and experience to target global markets? Is the firm capable of managing and responding to the varying legal requirements in globalmarkets? All of the above must be addressed. (correct)
Which of the following is not a key question a firm must address when deciding whether it should "goglobal?"
Can the firm be sure that it can use its current business model in global markets?
When Nintendo sets a relatively low price on its game units to stimulate more demand for its gamecartridges, it is using
Captive product pricing.
For which of the following products is exclusive distribution most likely?
Caterpillar tractors
__________ are employed when advertisers refuse to engage in the consent decree. The FTC can use thisremedy to force firms to remove offending communications from circulation.
Cease and desist order
_____ occurs when one supply chain member perceives that another supply chain member is makingdecisions in a manner that interferes with the ability of the first supply chain member to achieve its ownobjectives.
Channel conflict.
Which of the following countries is responsible for producing the majority (86%) of counterfeit brandsflooding international markets?
China
Companies such as Amazon that sell only via the Internet and mobile devices are referred to as __________.
Click-only
With respect to telemarketing, which of the following techniques are employed for idenfying potentialprospects?
Cold-calling from existing phone lists. Random digit dialing Lists of current or past customers Lists purchased from third party vendors All of the above. (correct)
Advertising in which brands are directly compared against one another are called _______ .
Comparative ads
The key "public" that is targeted by a firm's PR efforts is _____.
Customers of the firm The firm's competitors The general public Legislators and politicians All of the above. (correct)
Nike unintentionally agitated Chinese officials after it released an ad in China that featured Lebron Jamesdestroying several culturally-esteemed Chinese figures in a Kung Fu-themed television promotion. Chinesepoliticians asserted that the ad violated regulations to maintain national dignity. These are examples of____________ impacting a firm's potential global marketing strategy.
Cultural differences
____________ are lower quality unauthorized copies of major brands.
Counterfeit brands
The first, critical step in the Hierarchy of Communications Objectives is _________ .
Creating awareness
Which of the following is the major disadvantage of nearly all cost-based pricing methods?
Cost-based pricing techniques generally fail to account for consumer demand at the prices set withsuch techniques.
Break-even analysis is normally conducted during the __________ stage of the price setting process.
Cost-volume-profit analysis
The key "publics" that are targeted by a firm's PR efforts include all of the following except _____.
Customers of the firm The firm's competitors The general public The firm's employees All of the above are targeted. There are no exceptions. (correct)
When promotion is used to encourage consumers to purchase less, or at a later date, they are attempting toreduce demand for the advertised product. This promotion objective is called ________ .
De-marketing
With __________ firms invest in and establish their own foreign-based assembly or manufacturing facilities.
Direct Investment
Which of the following is true about how direct selling differs from direct marketing?
Direct selling is limited to face-to-face contact sales using door-to-door selling and party planselling
_____________ is employed to create brand awareness, engage new viewers, and re-engage viewers who havevisited websites in the past. This form of online advertising uses ads that use graphics and rich mediacontent (photos, videos, and audio) to encourage users to click on ads.
Display advertising
Large single story facilities designed specifically for performing the accumulating, sorting, and allocatingfunctions as efficiently as possible are ____________.
Distribution centers
Noncumulative quantity discounts are primarily offered by a seller in order to:
Encourage larger individual orders.
___________ includes using the Internet and mobile devices to communicate with and make sales tocustomers, as well using electronic media to transfer money and make financial banking transactions.
E-commerce (correct) Online marketing (correct) Telemarketing Direct response marketing TV sales.
Underdeveloped but emerging nations cannot afford the technical equipment that is the backbone of moredeveloped, or industrialized, nations. This is example of ____________ impacting a firm's potential globalmarketing strategy.
Economic factors
___________ are a complete ban on certain products imported from foreign countries into domestic markets.
Embargos.
Perfumes, jewelry, and designer clothing are often advertised in pleasant settings or usage situations in anattempt to create a positive mood or image for the brand advertised. The advertising appeal employed is____________.
Emotional appeal
All of the following are important components of IMC except ___________.
Emphasis is placed on using cutting-edge digital media.
A small manufacturer of custom cabinets wants to expand sales but does not wish to get involved directlywith selling or any other marketing activities. The manufacturer probably will opt to employ which form ofchannel structure for reaching consumers?
Employing an agent to handle sales to other intermediaries
_________ are being employed when a producer prohitits its dealers from carrying its competitors' products,
Exclusive dealing agreements
____________ is the most restricted form of distribution. This form of distribution is best suited to specialtygoods and some shopping goods, as well as industrial equipment and installations.
Exclusive distribution
With an __________ policy, a manufacturer agrees to establish a single distributor in a restricted geographicarea.
Exclusive territory
The term _________ means that a domestic marketer ships goods or delivers professional services outside thecountry in which the marketer is located.
Exporting
With which geographic pricing strategy is the seller likely to have the lowest freight charge?
FOB mill pricing.
Yesterday Delta Press in Dallas, Texas shipped 1,000 books to a retailer in Florida, 150 books to a retailer inGeorgia, and 50 books to a buyer in Montana. However, Delta Press paid no freight charges. Whichgeographic pricing strategy did Delta use?
FOB plant pricing
False, misleading, and deceptive advertising are regulated by the __________.
FTC Act of 1914
Warehouses run by third party operators provide access to long-term and short-term specialized storageand inventory management facilities. In the context of supply chains, these warehousing firms are called_________.
Facilitating agents
_____________ are not directly involved in the transfer of title for products moved through distributionchannels. They do, however, provide a range of specialized support services that allow supply chains tofunction more efficiently.
Facilitating agents.
The physical movement of finished goods from producers to middlemen and, everntually, to consumers is:
Physical distribution
The ____________ mandates that accounting controls be in place for purposes of monitoring the potential useof incentives by domestic firms for soliciting sales in foreign countries. Violations of the law can result inindividuals being fined and, potentially, imprisoned.
Foreign Corrupt Practices Act
Texas Cable Corporation, sells heavy guage wire cable to construction companies around the country.Customers pay shipping from Texas Cable's warehouse in Dallas. Recently, a new competitor in Florida hasbeen taking away some of Texas Cable's Southern customers. If Texas Cable wants to compete in thesedistant markets, but not increase the cost of its product to other customers, it would probably switch to
Freight absorption pricing.
In order to offset the competitive disadvantage of FOB plant pricing, Texas Granite Company in Dallas coulduse _____ pricing to ship its products to building contractors and furniture restorers in any part of the UnitedStates.
Freight-absorption
With respect to assessing advertising effectiveness the number of times consumers comprising a targetaudience are repeatedly exposed to a given message during a specified period of time is called _______.
Frequency
_____________ treaties with other world governments are international legal agreements that generallyestablish terms for a variety of marketing relationships between firms operating in the United States andfirms operating in foreign nations.
Friendship, Commerce, and Navigation (FCN)
If there is a traditional channel for consumer goods, it is:
From producer to wholesaler to retailer to consumer
Which of the following is not a major trend associated with IMC?
From the employment of large, corporate advertising firms to greater reliance on smaller, morespecialized advertising production houses.
US customers are finally acknowledging that drinking soda may not be good for their health. At the sametime governmental, regulatory, and other public interest forces complain continuously about andincreasingly threaten the soft drink industry. As a result, the best response by Coca-Cola and other softdrink producers whose revenues are threatened domestically probably is:
Further emphasizing sales in global markets to offset declining domestic sales
Which of the following is not a function of public relations?
Getting the firm's message to mass audiences very quickly.
For which of the following products is intensive distribution most likely to be employed?
Gillette razor blades
Organizations that operate in more than one country and consequently secure marketing, production, NPD,research and development, financial or supply chain advantages that are not available to firms operating inpurely domestic markets are engaged in ________.
Global marketing
____________ involves all the processes through which products or services are conceptualized, developed,promoted, priced, and distributed internationally from one nation to another.
Global marketing
The benefits of direct investment as a means of entering foreign markets include:
Greater control of operations and marketing activities Lower operational and production costs Enhanced brand image and brand power in the host country Easier to adopt products to local tastes and desires All of the above (correct)
With respect to telemarketing, ____________ is (are) useful for cold-calling on prospects who may haveunlisted numbers.
Random digit dialing
Advertisers attempt to move consumers through a series of steps beginning with becoming aware of a brandand ending with conviction and loyalty to the brand. This set of steps is referred to as _______ .
Hierarchy of Communications Objectives
Toys "R" Us employed its purchasing power with toy producers Mattel and Hasbro to coerce them into notselling to competing retailers such as Costco and Sam's Club. Toys "R" Us actions resulted in ___________ .
Horizontal channel conflict.
Assume that a number of Texas oil refiners decide to work together to unformly restrict output with the goalof stablizing declining prices. These firms are likely to be accused of ____________ .
Horizontal price fixing
___________ entails pricing agreements between two or more firms operating at the same supply chain level.
Horizontal price fixing
_______ involves every department in the firm becoming involved in developing and communicatingmessages to customers, channel members, other stakeholders, and publics to create a unified image of theorganization and its products.
IMC
The first step in the advertising process is to ___________ .
Identify the target audience
A _____ essentially substitutes for a manufacturer's marketing department by marketing the firm's entireoutput.
Selling agent
The disadvantages of licensing as a means for US firms to enter foreign markets include all but the following:
Increased costs associated maintaining the licensing arrangement.
Transportation, communications, banking and financial, utilities, and public services capabilities are eachpart of a country's _________.
Infrastructure
Sales staff working the sales floor in Best Buy or Dillard's are technically called ______.
Inside order takers
The acronym IMC stands for ________.
Integrated Marketing Communications
The term used when multiple transportation modes -- trains, planes, automobiles, trucks, pipelines, barges,etc. -- are employed to ship any item is ___________ .
Intermodal transportation
A retail store's _____________ include the decor, merchandise arrangement and crowding, general layout,background music, color schemes, scents, acoustics and noise levels, lighting, and cleanliness of stores.
Internal atmospherics
Retailers work hard to design in-store sensory environments that postively affect one or more of consumers'five senses in order to increase the likelihood of a positive emotional experience. These retailers are focusingon creating positive __________.
Internal atmospherics
Personal selling is employed to reach intermediaries and persuade them to stock and promote the productprimarily during the __________ stage of the PLC.
Introduction
Informative messages are generally more appropriate during which stages of the PLC?
Introduction and growth
Humphrey Studio sells reproductions of European antiques. Last year sales were disappointing. The studioowner decided to increase the price of each item by about 25%. The next year there was a 20% increase inunits sold. The studio apparently experienced:
Inverse demand.
A ____________ for penetrating international markets by US firms occurs when the US-based firm combinesforces with a host firm in the foreign market to produce or market products or services in the host country
Joint Venturing
With __________ a US firm reaches an agreement with another firm in the targeted foreign market. Inexchange for a royalty payment or fee, the foreign-based firm acquires the right to use a US firm'smanufacturing process, brand or trademark, trade secret or patent, or some other item that deliversdifferentiating value.
Licensing
"Inventory in motion or at rest throughout the supply chain" is called:
Logistics
The primary objective of ____________ in which customers accumulate points over time with each purchase isto encourage consumers to continue buying the firm's products.
Loyalty programs
The advantages of using manufacturers' representatives include all of the following except:
MRs are a fixed cost on the firm's income statement
As practiced today, telemarketing is used for which of the following?
Making sales via the telephone Engaging in customer service and relationship management Gathering customer information Prospecting for new customers All of the above. (correct)
Some domestic US firms contract with partner firms in foreign markets for purposes of using the US firm'smanagement expertise to run the partner firm's operations in the foreign markets. This is an example of__________ for entering a foreign market.
Management contracting
The final step in the price setting process is __________.
Managing price.
The need to understand the importance of global marketing is based on
Many large corporations producing products commonly purchased in the US are headquartered in foreign countries International logistics and transportation costs are rapidly declining making it possible for evensmall firms to penetrate global markets American-made goods are favorably perceived in many foreign countries Marketing via the Internet has become increasingly easy and has opened international markets All of the above. (correct)
The expected price for sunscreen is in the $4 to $6 price range. The introductory price for Sun UVA Guard byCoppertone was set high ($9.99) to recover its research and development costs. Coppertone was using a_____ strategy.
Market-skimming
Managing the flow of parts and other factors of production into the manufacturing process has beentraditionally called ___________ by logisticians.
Materials Management
Movement of parts and materials from their sources of supply into the manufacturing process is called:
Materials management
During the _______ stage of the PLC, advertising is mainly used to announce product improvements, reachadditional target segments, and demonstrate new ways that consumers could use the product.
Maturity
During the _________ stage of the PLC, a major purpose of advertising is to "buy market share" fromcompetitors.
Maturity
During the __________ stage of the PLC, the primary role of sales promotions is to tempt consumers into"brand switching." Coupons, point-of-sale devices, premiums, and price incentives are needed to enticeconsumers away from competing brands.
Maturity
Teresa Wilson works for Whitman Pharmaceutical Co. Teresa provides service support to pharmacies,hospitals, and physicians, but does not actively become involved in making sales. Teresa is compensated viasalary. Teresa is a(n) _________.
Missionary salesperson
__________ don't actually get involved in making sales. Their job is to provide B2B customers and prospectivecustomers with information, assist in promotion activities with the firm's supply chain partners, andgenerally work to build goodwill.
Missionary salespersons
Which of the following is false concerning the importance of global marketing?
Most large international firms are headquartered in the US
Stores such as Family Dollar and Dollar General tend to locate their facilities in ________________ in order totarget consumers living nearby, attracting consumers who are primarily interested in a combination ofconvenience and lower prices.
Neighborhood center
Convience stores, barber shops, hair stylists, manicurists, delis, and other small specialy stores tend tolocate their facilities in ________________ in order to target consumers living nearby, attracting consumerswho are primarily interested in a combination of convenience and lower prices.
Neighborhood centers
With respect to the Communications Process, physical/psychological barriers, distractions, and otherimpediments to successful communication are called ____________ .
Noise
The _____________ method of budgeting is the best approach to employ, although not normally the easiest.
Objective and task
Using the ____________ budgets are set by first identifying exactly what communications objectives are to bepursued and then setting the budget to achieve them.
Objective and task
The most recommended method of setting the advertising budget is the _______
Objective and task method
Organic Building Products Co. wants to keep its inventory low. Which of the following would be MOST likelyto encourage customers to take over more responsibility for the storage function?
Offering a noncumulative quantity discount
The easiest to use and most frequently employed method of advertising budgeting is the ________
Percent of sales method
With ___________ IMC budgeting, the magnitude of sales determines the size of the budget, rather thanpromotion driving sales.
Percentage of Sales and All-You-Can Afford
ABC corporation expects sales of $1,500,000 for next year and the promotion budget is limited to 5% ofsales, the total promotion budget will be $75,000. ABC has employed the ______ method of budgeting.
Percentage of sales
_________ is an oral, personal, and often face-to-face communication between prospective buyers andsellers.
Personal selling
_________ is a measure of the utility that exists or is perceived to exist in a product.
Price
_________ is the only marketing mix element that generates revenue for the firm.
Price
In Russia, greeting cards are not sent to men celebrating their 40th birthdays. Traditional Russians stillhonor the belief that big events or gestures intended to celebrate this milestone are tantamount to inviting"the Death" into his life. Hallmark does not produce and sell 40th birthday greeting cards in Russia. Hallmarkis using a _________ for tapping the Russian market.
Product adaptation strategy
When Hallmark markets Happy Birthday [Mom or Dad] greeting cards in Japan, messages are far moreceremonial and formal. This change illustrates a _________ for penetrating an international market.
Product adaptation strategy
___________ are more appropriate when specialized skills, knowledge, and experience are needed to sellspecific products.
Product-based sales force organizations
Advertising, product placement, personal selling, sales promotion, publicity, and public relations comprisethe firm's __________.
Promotion mix
Which of the following is not a common criticism of promotion?
Promotion provides too much information to consumers.
_________ are used to increase the retail price of an imported product such that it generally matches orexceeds the price of domestically produced goods.
Protective tariffs.
_________ is a strategic communication process that builds mutually beneficial relationships betweenorganizations and their publics."
Public relations
Managing media relations, publicity, lobbying, and investor relations are generally handled by the firm's___________.
Public relations staff
______________ is any message about a product, organization, person, or event that is communicated vianon-personal media and is not paid for by a sponsor.
Publicity.
With _________ promotion, advertising is directed at ultimate consumers in order stimulate demand andinfluence intermediaries to stock the product advertised.
Pull
The likely consequences of firms choosing to engage in non-price competition include all of the followingexcept __________.
Reduced ability to raise prices.
Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay atcompeting grocery stores for the same brand. Albertson's hopes to stimulate added sales by inducing the perception that consumers are getting a 'deal.' Alberston's is using:
Reference pricing.
In addition to regulating discriminatory pricing activities, the ___________ also limits firms' use ofpromotional allowances as they attempt to incentivize middlemen.
Robinson-Patman Act
Which of the following is not true with respect to using salary-only compensation plans for sales personnel?
Salary-only plans offer the best option for motivating sales personnel to increase their selling efforts.
___________ are technical experts in industries where products must be tailored to the needs of specificcustomers.
Sales engineers.
____________ is a paid form of communication that is temporarily used to stimulate purchases, as well asenhance salesperson and dealer effectiveness.
Sales promotion
Normally employed to supplement the firm's advertising and personal selling efforts, the range of short-term paid incentives that are used to stimulate purchase are _______.
Sales promotions
Sophie Taylor sells the entire output of several small companies based in Colorado Springs' Tech Center.Each of the companies designs and produces computer components. Sophie has almost complete control ofall marketing activites since the engineers who started the companies lack marketing experience and want tofocus on what they do best --- inventing things. Sophie is paid a substantial commission on all sales. She isa:
Selling agent
___________ appeals show the product being used by the "typical consumer" in a normal setting.
Slice-of-life appeals
One of the major difficulties of zone-delivered pricing is determining zone boundaries _____________ .
So as to avoid charges of illegal price discrimination
The firm's promotion mix consists of all of the following except _______ .
Social media
When eggs are packaged into different sizes (medium, large, jumbo) and grades (A or AA) or lumberproducts, such as 2x4 studs, are graded according to number and severity of knots or splits, which channelfunction is being performed?
Sorting.
The perceived believability, expertise, and trustworthiness of the message source can be important forassuring acceptance of the message and is called __________ .
Source credibility
Family and friends typically score high on those factors that contribute to source credibility except:
Source expertise
_________ is a form of sales promotion in which sales personnel are incentivized to expend greater effortselling a specific product or brand.
Spiff
Domino's opened pizza stores throughout Asia during the 1990s using the same positioning strategyemployed in domestic US markets. This strategy, however, did not resonate with Asian consumers. In theirminds 30-minute delivery promises were not sufficient to offset the pizza's comparative mediocrity. Thefailure of Domino's in the Asian market illustrates the dangers of using a ____________ for penetrating globalmarkets.
Straight extension strategy
Kellogg markets its Pringle's potato chips brand using the same product formulation in each internationalmarket. It is able to satisfy 80% of world demand through only six flavors and one package design. Kellogg isusing a ____________.
Straight extension strategy
Rolex has used the same simple positioning message of elegance, precision, and durability for decades in allits global markets. It is the world's 72nd most prominant brand. The Rolex global marketing strategy isa ___________.
Straight extension strategy
South Africa's De Beers, the world's largest diamond producer, uses glossy high-image advertising with littlecopy in upscale publications to convey its prestige messages in all international markets served. The samemessage and associated marketing program are employed in all its markets. De Beers is using a ______.
Straight extension strategy
Which global marketing strategy yields the longest production runs, lowest costs, and reinforces the"universality" of a brand's global image?
Straight extension strategy
Often domestic governments help fund the costs associated with producing and marketing certain products,such as gasoline, steel, and electronics to make them more price-competitive in foreign markets. Thesegovernments are using ____________.
Subsidies.
When Chinese wireless providers received governmental funding that partially underwrote the high costs ofdevelopment and production, they were able to lower their domestic retail prices, making them competitivewith foreign providers. The Chinese government was employing __________.
Subsidies.
_________ are combination supermarkets and discount stores with additional services such as fast foodrestaurants, dry cleaning, banking, check cashing, automobile servicing, and optical centers.
Supercenters
The channel of distribution for consumer products does not include which of the following?
Suppliers of component parts to the producer.
A commonly employed method for assessing advertising's financial performance is which of the following______ .
Test markets to assess the campaign's effect on sales.
__________ attempt to use real persons as endorsers who appear likeable and believable to attest to theproduct's utility and value.
Testimonial advertising
The main difference between agent middlemen and merchant wholesalers is:
That agent middlemen do not own the products they sell--while merchant wholesalers do.
When setting prices, the price floor is usually defined by ______ of producing and marketing the product.
The average variable costs
When a seller offers a cash discount with terms of 3/10, n/60, this means:
The buyer gets a discount of 3 percent if the bill is paid within 10 days; otherwise the entireamount is due in 60 days.
The sequence of organizations and individuals through which finished consumer goods move is called:
The channel of distribution
The target audiences for a firm's public relations effort is least likely to include which of the following?
The firm's competitors
In which of the following situations is a manufacturer's exclusive territory agreement with a dealer likely tobe declared illegal?
The manufacturer forbids the dealer from selling outside his territory.
Which of the following is true concerning the importance of global marketing?
The proportion of US goods exported to other countries has doubled in the last 10 years International logistics and transportation costs are rapidly declining making it possible for evensmall firms to penetrate global markets American-made goods are favorably perceived in many foreign countries Marketing via the Internet has become increasingly easy and has opened international markets All of the above. (correct)
Which of the following is least likely to cause problems when employing historical data to estimate demandcurves?
The seller introduced several new products that were considered to be category extensions duringthe time in question.
Which of the following is a legitimate (legal) reason for a manufacturer to drop or "refuse to deal" with asupply chain member?
The supply chain member fails to meet sales objectves or fails to adequatly service buyers of theproducer's products.
The major advantage to using the competitive parity of IMC budgeting is:
There are no real advantages.
A primary weakness of sales promotions is:
They can easily be copied by competitors
Memorable advertising messages that are easy to recall and remember should possess which of the followingcharacteristics?
They should be "believable" They should be distinctive in that they should stand out from similar messages offered bycompetitive brands They should be "determinant" in that some unique feature or benefit that is associated with thebrand should be emphasized. All of the above are important (correct)
For which of the following products is selective distribution most likely?
Tommy Bahama men's clothing
The use of coupons, free samples, displays, and other point-of-sale techniques assume that consumers areat which stage in the Hierarchy of Communications Objectives?
Trial and purchase
_____ carry a select line of perishable products and deliver them by trucks to retail stores.
Truck jobbers
The major distinction between a retail and a wholesale transaction is:
Whether the product will be used by an organization or by a consumer.
The primary distinction between voluntary chains and retailer cooperatives is:
Whether they are set-up by wholesalers or by retailers
Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operatingsupplies) from manufacturers and resells these products to other business users. When making sales to itscustomers, Grainger is engaged in _____________.
Wholesaling
___________ includes all activities involved in the marketing and distribution of goods and services from onebusiness to other businesses.
Wholesaling
The power of __________ communications is based on the fact that somebody whom the message recipientknows and likes becomes the credible, believable, and trustworthy face of the brand.
Word-of-Mouth
A penetration pricing strategy is most likely to be used when pricing objectives focus on:
Preventing competitive entry by signaling competitors that profit potential is limited due to small ornon-existent margins.
Cajun Fire is a small producer of jalepeno and habanero pepper sauces. It does not have its own sales force.Which channel of distribution is it most likely to use?
Producer to agent to retailer to consumer
Consider the following statement: "If the net profit margin on each sales dollar earned is 5%, a supply chainoperational savings of $5,000 yields the same return to the Firm's bottom line as would a sales increase of$100,000." This statement reflects:
Profit leveraging of costs
For featuring Lego Sets prominently in its store window, Toy Emporium, a store that carries educational toys,received a free motorized Ferris Lego Wheel kit, valued at $150. This is an example of a:
Promotional allowance.
Some manufacturers give ______________ to retailers to pass on to the retailers' sales clerks to encourageaggressive selling of specific items or lines.
Push money.
Producers offer ___________ to encourage customers to buy in larger amounts or to make most of theirpurchases from the same seller.
Quantity discounts.
____________ includes all activities involved in selling goods and services to ultimate consumers for their ownpersonal use.
Retailing
_______________ exist and operate as the last link in supply chains, primarily making sales to ultimateconsumers.
Retailing intermediaries
_________ are groups of independent firms involved in the process of making products or services availablefor use or consumption by organizations or consumers.
Supply chains
Department stores are facing serious competition from discount stores and category killers that offer thesame or similar merchandise at lower prices. Which of the following actions are being taken by somedepartment stores, such as Nordstrom, to combat these inroads?
Target upscale shoppers who are less price-elastic Focus on higher margin products such as clothing, jewelry, and cosmetics Individual departments may operate as upscale specialty stores stressing enhanced "atmospherics." All of the above are being employed (correct)
Estee Lauder Co. now sells most of its flagship products directly online. This choice, made around 2000,resulted in substantial __________ with the various high-end retailers through which it had been selling.
Verical supply chain conflict.
The VMS in which a large scale wholesaler brings together or sponsors a number of independent retailers iscalled a:
Voluntary chain
Grainger Worldwide buys a wide range of industrial products (mainly maintenance, repair, and operatingsupplies) from manufacturers and resells these products to other business users. Grainger is a _____________.
Wholesaling intermediary
The total fixed costs for a manufacturer of road maps is $25,000, and its unit variable cost is $3. Thecompany sells 20,000 maps and just breaks even. What is the map's selling price?
$4.25
Organic Specialties sells organic mixes for soups. The company produces 5,000 packages per day. The totalvariable cost for making one bag of Organic split pea soup is $3. The average fixed cost per bag is $.90. Thecompany charges $6.50 per bag and earns a 40 percent profit. Calculate the break-even point in units.
1,300
Rocky Mountain Furniture Co. has total fixed costs of $100,000 a year. The owner estimates that averagevariable costs for its products are $135 next year. Products are sold directly to retailers through a broker.The broker's commission is included in the estimate for variable costs. The average selling price to retailerswill be $175. If total industry sales are expected to be about $5,000,000 next year, what market share doesRocky Mountain Furniture need to break even? (Select the closest answer)
10%
Factory outlet malls contain a variety of stores, some of which are owned and operated by the manufacturersof the products sold in the store. Such true 'factory outlets' are examples of:
Corporate vertical marketing systems.
In a corporate vertical marketing system,
A firm at one level of the channel owns the firms at multiple levels in the channel.
When large-scale retailers, such as Walmart and Target, vie with one another for sales and market share,they are engaging in ____________.
A mild form of horizontal channel conflict.
Lois Lane wants to open a convenience store in Cripple Creek Colorado. What kind of wholesaler will likelyprovide her chewing gum, tobacco products, candy bars, and other snack foods?
A truck jobber
Which of the following manufacturers would be most likely to use a manufacturers' agent to distribute itsproduct?
A well-established Southern firm that wants to expand its market area by making its productsavailable for the first time in Washington state and Oregon
Assemblers are commonly found in the agricultural and fishery industries. Large food products producers(Hunt, Campbell, StarKist) do not want to buy direct from many small farmers or fishermen. They prefer tobuy in large quantities from these assemblers that have already pooled these smaller quantities. Theassembler is performing which channel function?
Accumulating
Bringing together relatively small quantities purchased from suppliers and combining these quantities into asingle larger shipment for sale to a buyer is called:
Accumulating
The "making bulk" channel function is formally called:
Accumulating
Merchant wholesalers:
Are independently owned firms that engage primarily in wholesaling and take title to productsbeing distributed.
One of the primary keys to wholesaling and retailing success is matching the variety of products sold to thewants and needs of customers. This process is the ____________ channel function.
Assorting
When retailers such as Kroger or Winn-Dixie bring together a variety of different products to offer theircustomers, they are peforming the __________ channel function.
Assorting
The manager of the San Francisco Seafood Company knows the market for its Talapia is geographically quitelarge. Price and supply conditions vary considerably from season to season. Since San Francisco Seafood cansell its Talapia only a few months each year, it does not need continuous market representation. SanFrancisco Seafood and other Talapia producers should use:
Brokers
Polo (Ralph Lauren) not only manufactures clothing but also operates its own retail stores (factory outlets).Polo is an example of a(n):
Corporate VMS.
______________ typically are well-financed and centrally operated. Their size and financial strength providesthem with significant scale economies in purchasing and operations.
Corporate chains
_________ are owned and operated by corporate chains and carry a broad mix of product lines organized by"departments." Examples include JC Penney, Nordstrom's, Sears, Dillard's, and Macy's.
Department stores.
A _____ consists of the set of people and firms involved in the transfer of title to a product as it moves fromproducer to ultimate consumer or business user.
Distribution channel
Steve Johnson sells fiberglass resins and fiberglass fabrics to the many small sailboat manufacturers inFlorida. He takes title to the products but does not handle them. Instead, the materials are shipped directlyfrom the producer to the sailboat manufacturers. Steve is a:
Drop shipper
Todd Jeffries sells bulk lubricants and solvents to the many small machine shops in southern California. Hetakes title to the products but does not handle them. Instead, the lubricants and solvents are shipped in 25to 50 gallon barrels directly from the producer to the machine shops. Todd is a:
Drop-shipper.
Sandra Locke sells gluten-free specialty food products to grocery wholesalers and large retail grocery chainsin Tampa. She sells for several manufacturers with noncompeting lines of gluten-free foods and earns a 4%sales commission. Sandra does not own or inventory the products she sells. Evidently, Sandra is a:
Manufacturers' agent.
Joe Duncan sells a wide assortment of "emergency" home repair items (fuses, electrical tape, small packets ofnails) to grocery and convenience stores. He owns the products he handles, provides the shelves and stocksthe display, and monitors the inventory for his customers. Joe is a:
Rack jobber
A grocery store chain has decided to sell a small assortment of fast moving hardware items. However, it isnot certain what stock to carry in which stores and does not want to leave the decision to the local storemanager. The chain could use a:
Rack jobber.
The Galleria in Dallas is anchored by a Westin Hotel, has an ice-skating rink, offers a five-screen cinema, andis populated by more than 200 select retail department stores, specialty stores, and restaurants for itspatrons to visit. The Galleria is a ____________.
Regional center
The AVC curve is typically 'u-shaped' because:
Scale economies initially drive unit fixed costs down as sales volume increase. The experience curve tends to drive unit variable costs down as producers become moreknowledgeable of how to make products. Unit variable costs tend to increase after some level of output due to 'diseconomies of scale' All of the above. (correct)
Smaller independent retailers face high failure rates. Which of the following is NOT among the possibleactions which can cut down on the odds of failure for these smaller retailers?
Seek to become part of an established network marketing system.
A producer has a few territories where many big customers are concentrated, but most of its targetcustomers are spread all over the country. How should the company structure its sales program?
The company should use its own sales branches in the concentrated territories and agents,probabaly manufacturers' agents, in the others--assuming the concentrated territories are largeenough to support sales branches.
The primary factor that distinguishes between a merchant wholesaler and an agent is:
The wholesaler takes title; the agent does not.
Which of the following is being used when a manufacturer engages in "full-line forcing."
Tying contracts.
A manufacturer could try to defend itself against charges of price discrimination under the Robinson-PatmanAct by claiming that:
any price differences were to "meet competition in good faith." the price differences did not injure competition. the price differences were justified on the basis of cost differences. the products were not of "like grade and quality." All of the above are possible defenses against price discrimination charges. (correct)