Mktg 570 Exam 2

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How many levels of intermediaries are there in a direct sales channel?

0

Tucker's foods buy their fruit straight from the farm. They then make it into jam and other products and sell it on to wholesalers who in turn sell to retailers such as Sainsbury's. How many levels are there in this supply chain?

3

What does EPOS stand for?

Electronic point of sale

The ______ Mark shows consumers that the farmers that produced the products received a fair and stable price. They also have safe working conditions and stronger rights and treat the environment with care.

Fairtrade

The two principal participants in Schramm's communications model are media owner and client. True or false?

False

If a product is said to have a price inelastic demand curve, what does this mean?

If you change the price, sales volume will change very little.

Why is it more difficult to brand services than to brand goods?

It is harder to make a service consistent.

Parasuraman et al.'s model proposes five dimensions that contribute to service quality: tangibles, reliability, assurance, responsiveness and empathy. What is this model called?

SERVQUAL

If a marketing department follows the 'top down' planning model, what does it do?

Senior managers set objectives which are passed down to marketing staff.

Why is it generally harder for service industry managers to cope with peaks and troughs in demand for their products?

Service products cannot usually be stored.

What are the typical characteristics of services?

Services confer benefits; are intangible; are time- and place-dependent; are inconsistent; cannot be owned; and providers and consumers form part of the service

Under which conditions would market skimming be likely to be a viable strategy?

There is insufficient market capacity and competitors cannot make more of the product. There are no competitors. The demand for the goods in question is relatively price inelastic.

What is parallel importing?

Trade customers buy goods cheaper abroad, import them and undercut the manufacturer.

What is a pull strategy?

a communications strategy aimed at consumers

What is a push strategy?

a communications strategy aimed at distributors

What is a cartel?

a group of companies that get together and fix prices between them

What is a warehouse club?

a large store offering wholesale prices to members only

Matt has some great Christmas gifts for sale but not enough people come into his shop and see them. They tend to shop at bigger retailers instead. He cannot afford media advertising and so he decides to offer Christmas crackers for one penny each (well below what they cost him) to draw customers in. He puts a notice in the window advertising this bargain. What tactic is he using here?

a loss leader

What is a distribution channel?

a product's route through the supply chain

Which one of the following is not a component of a good business mission statement?

a statement of financial assets

What are businesses that represent, and sell goods on behalf of, other businesses in a specified market called?

agents

Dombey and Sons produce a sparkling drink from apples grown on their own farm. They employ a small French firm to sell the drink to wholesalers in France. This French firm is acting as:

an agent

One of the problems that comes from the intangibility of services is that they are perceived as higher risk purchases than goods are. Which of the following is most likely to reassure a customer who has paid in advance for a Centre Court seat at Wimbledon that they will in fact get to see the tennis?

an expensive and official looking ticket

Which of the following is not a PR technique?

an on-pack, free-prize draw

A Marketing information System (MkIS) comprises three main functions: data collection and storage, ______ and reporting.

analysis

AIDA is a sequential model showing the states of mind that a person may go through while deciding what to buy. What does AIDA stand for?

attention, interest, desire, action

Products are sold to target markets. Marketing Communications are addressed to target ______.

audiences

Where does after-sales service fit into the total product offering?

augmented product

Coca-Cola and Pepsi are two of the most powerful brands in the world and this presents a significant ______ to entry for other companies trying to launch new cola drinks.

barrier

Outsourcing has advantages and disadvantages. Name one advantage of outsourcing.

being able to draw on specialist expertise that the organisation does not have

Coca-Cola has an easily identified logo (its name written in a flowing script) and is usually packaged in a red can or its famously curvy bottle. What do these elements combine to form?

brand identity

What is the term for the volume of products sold that, at a given price, will cover the company's costs?

breakeven point

A ______ is a series of coordinated marketing activities designed to achieve specific objectives (e.g. to reposition a product or to educate people about its correct use).

campaign

Robert has recently been appointed Marketing Manager for a fashion company. He needs to know whether or not the company's products have a sustainable advantage in the marketplace. What kind of analysis does he need to do?

competitor analysis

As long as the product is sold for more than its variable cost, it is making a ______ towards the firm's fixed costs and profits.

contribution

Which of the following is not a market-based pricing method?

contribution pricing

DAGMAR is a hierarchy of effects model comprising awareness, comprehension, ______ and action.

conviction

A sure way to go out of business is to set prices lower than ______.

costs

There are three key elements to price setting: competitors' prices, ______ perceptions of the product's value and costs.

customers

What is the term for using specialist software to analyse large amounts of data (held in a database) to predict trends and likely customer behaviour?

data mining

What type of cost is 'mark-up' pricing based on?

direct cost

Dizzy Designs make their clothes in the UK and then ship them to their own retail outlets in France, Spain and Germany. What kind of operation is this?

direct export

Which of the following is not a typical characteristic of a market-oriented company?

emphasis on short-term objectives

Luxury goods such as high fashion and designer clothing would normally have very few, (possibly only one), distribution outlets. What is the term for this?

exclusive distribution

Just like business reports, marketing plans often have an ______ summary at the beginning.

executive

Visto is a much loved British drink, widely available in the UK but nowhere else. Lately sales have been falling and the big supermarkets have cut back on their orders. Which of the following is most likely to be a successful extension strategy for this well-established drink?

exporting it to other countries

Advertising is generally a better promotional tool than sales promotion when it comes to closing a sale. True or false?

false

An organisation with an 'outside-in' approach focuses on the needs of the organisation first, and customers and the marketplace second. True or false?

false

Capital goods are usually classified as consumer products. True or false?

false

Cost and price are interchangeable terms. True or false?

false

In a SWOT analysis, strengths and weaknesses are external factors. True or false?

false

In marketing, 'place' is another term for location. True or false?

false

PR normally stands for Press Relations. True or false?

false

Products can be categorised as either goods or services. Very few have significant elements of both. True or false?

false

Services cannot be exported. True or false?

false

Services do not contribute to a country's economy as they do not result in any net increase in wealth. True or false?

false

The marketing mix is often known as the 3Ps. True or false?

false

The product life cycle is widely used as it is a precise and reliable sales forecasting tool. True or false?

false

FMCG stands for ______ consumer goods.

fast-moving

Fred runs a bakery. He has lots of bills to pay: electricity; rent for the shop; the staff's wages; flour for bread, cakes and pastries; etc. His accountant says it is important to classify these costs correctly so that he can set the right prices for his products. How would you classify the shop's rent?

fixed and indirect

A ______ is one of a chain of shops that are individually owned but licensed by a larger company to sell their products (e.g. the Body Shop or Baskin Robbins). The larger company also provides expertise.

franchise

XYZ Co has four sales teams: London & the South East, Wales & the Midlands, Northern England, and Scotland. What kind of organisational structure is this?

geographic organization

What is the most likely core benefit of a cross channel ferry service?

getting from Britain to France safely

For his basic sandwiches, Johnny checks out what other sandwich bars charge and charges approximately the same. What kind of pricing is this?

going-rate pricing

What is the general term for products that have a physical form (i.e. you can touch them)?

goods

The Quick Heat Company have a new range of central heating boilers designed for domestic use. They know that most homeowners buy boilers that are recommended by their heating engineer. Who should be the primary target audience for their new campaign?

heating engineers

The Quick Heat Company have a new range of central heating boilers designed for domestic use. They know that most homeowners buy boilers that are recommended by their heating engineer. Who is their target market for boilers?

homeowners

he International Chamber of Commerce has devised a set of rules for the interpretation of international terms and conditions. These rules set out how activities, costs and risks are to be split between the buyer and seller. What are they called?

incoterms

Truly new products, usually the result of a technological breakthrough such as the invention of laser surgery, are known as ______ products.

innovative

One obvious strategy to overcome fears associated with the service product's ______ is to turn it into something more tangible.

intangibility

Conferences and trade exhibitions are good places to gather competitive ______ quite openly.

intelligence

According to the GE McKinsey matrix, the best strategy for a product in a strong competitive position in a highly attractive market would be to do what?

invest for growth

What are people who work with information rather than in manufacturing or in more traditional service industries called?

knowledge workers

According to the UK advertising code administered by the Advertising Standards Authority (ASA), advertising should be:

legal, decent, honest and truthful

According to many retailers, what are the three secrets to their business success?

location, location and location

What is the function of transporting and storing physical goods for the various members of the supply chain known as?

logistics

According to Ansoff's matrix, a company that tries to increase sales by selling its existing products in a new market is following what kind of strategy?

market development

Miranda owns a chain of handbag shops across England and Wales. She has spotted a good location to set up a shop in Edinburgh but her handbags are not well known in Scotland and there is quite a lot of competition. She thinks it is worth a try anyway and decides to undercut the competition, at least until she gets known. What pricing strategy is Miranda following?

market penetration

What is an alternative term for a distribution channel?

marketing channel

A retailer decides to launch its own version of Marmite. What kind of new product is this?

me-too

PR may use the same ______ (e.g. television, radio or Internet) as advertising but in a very different way.

media

The use of different types of channel (e.g. high street stores as well as the internet) to reach the same potential target market is known as _____ distribution.

multichannel

When developing a corporate mission statement, it is important to think in terms of customer ______, rather than the products the company makes.

needs

Football Mania have booked an expensive ad slot during the FA Cup final. Unfortunately, there are technical problems and the ad is not shown. According to Schramm's communications model, what is this an example of?

noise

Which of the following is a well-used marketing evaluation and control method?

none of the above

What is product placement?

paying for your product to be used as a prop in entertainment or cultural media

The Quick Heat Company sells all sorts of standalone fires (e.g. paraffin heaters and electric fan heaters). Most of their customers are businesses who have a short-term problem such as a heating breakdown. In order to increase sales, they have decided to try and persuade people who live in rented accommodation, and who may want to increase the warmth of their homes without investing in the property, to buy these fires. Who is the primary target market for this campaign?

people who live in rented accommodation

The Quick Heat Company sells all sorts of standalone fires (e.g. paraffin heaters and electric fan heaters). Most of their customers are businesses who have a short-term problem such as a heating breakdown. In order to increase sales, they have decided to try and persuade people who live in rented accommodation, and who may want to increase the warmth of their homes without investing in the property, to buy these fires. Who should be the primary target audience for their marketing communications campaign?

people who live in rented accommodation

There are 7Ps in the services marketing mix. What are the additional 3Ps?

people, physical evidence and process

Where does brand image fit into the total product offering?

perceived product

ABC company have forecast approximately £10 million sales for the coming year. They have decided to allocate £200,000 (2% of turnover) to marketing. Which budget setting method are they using?

percentage of sales method

The less ______ the service, the more likely it is that it can be performed remotely (i.e. without customer and service provider being present at the same time).

personal

Advertising, public relations and sales promotion are three of the four traditional techniques of the promotional mix. What is the fourth?

personal selling

The tangible aspects of a service are known as ______ evidence.

physical

A concert ticket is primarily an example of which element of the marketing mix?

physical evidence

Few companies sell just one product; some sell thousands. Their products are collectively referred to as their product ______.

portfolio

Woods and Co is one of the largest office furniture suppliers in the UK. They outsource manufacturing overseas, sell direct and keep their prices low. New firms who do not have Woods' economies of scale find it impossible to compete. What kind of pricing is Woods and Co using?

pre-emptive pricing

Marie is a software developer who works freelance. She wants her customers to really value her work and so she consistently sets her prices higher than the competition. Sometimes she loses work because of this, but often she wins the contract. What kind of pricing is she using?

prestige pricing

The 4Ps are product, promotion, place and ______.

price

A cinema's automated booking service is primarily part of which of the marketing mix elements?

process

Some fast food chains have detailed instructions about how staff should prepare the food. There are timers to tell them when the chips are cooked and even painted footprints on the floor to show where they should stand. Which element of the marketing mix are they trying to control?

process

Place, or distribution, is often summed up as getting the right ______ to the right place at the right time.

product

The total package that makes up and surrounds a product including all supporting features such as branding, packaging, servicing and warranties is known as the total ______ offering.

product

What is the final stage of the new product development process?

product launch

Johnny has recently opened a sandwich bar but he is not sure what prices to charge for his various products. His customers tell him they would never pay more than £4.00 for a sandwich and so he sets his top price at £4.00. What kind of pricing is he using?

psychological price barriers

What are the axes on the Boston Consulting Group (BCG) matrix labelled?

relative market share and market growth rate

hat kind of intermediary is Tesco?

retailer

Sales ______ minus costs = profit.

revenue

Rolex sells its watches through a number upmarket retail partners (e.g. department stores and jewellers) with comparatively few stores. What is this type of distribution strategy called?

selective distribution

The _______ element of a product is now often the key (if not only) way to differentiate a goods item (physical product) from its competitors.

service

Two diners complain about a restaurant's slow service but are delighted to be given a free bottle of wine and canapés to make the wait less tedious. In the end, they thoroughly enjoy their evening. In terms of services marketing, what is this a good example of?

service recovery

What is the term given to the total (and frequently complex) environment in which a service is delivered?

servicescape

Sales promotions are ______-term, special offers and other added-value activities intended to induce buyers to buy, or try, a product.

short

What is the first stage of the marketing planning process?

situation analysis

The Oxo family starred in one of the most famous, and long-running, ad campaigns in the UK. It showed the family in typical situations, usually culminating in them sitting down to eat an Oxo-inspired meal. What kind of creative execution is this?

slice of life

What is a staple product?

something people always like to have and so purchase regularly (e.g. soap)

Mary is getting married and she wants everything on the day to be perfect, especially the dress. What kind of product is a wedding dress?

specialty

The market for organic fruit is booming as more and more people try to follow a healthier lifestyle. The Green Apple Company is the UK market leader and able to command high prices for its excellent products, especially locally grown strawberries. Where are the strawberries most likely to be placed on the Boston Consulting Group (BCG) matrix?

star

Services are transient. They happen at a particular time and cannot be ______ for later sale or use.

stored

What does SBU stand for?

strategic business unit

Maria is the Marketing Manager for Wholefoods Ltd. She is working on the firm's marketing plan. Her forecasts show that, if they carry on as they have been doing, they are likely to miss their sales revenue targets by £500,000. She needs some new ideas. What kind of analysis has Maria undertaken?

strategic gap analysis

McKinsey's 7S framework helps analyse organisations and improve their effectiveness. The seven elements to be coordinated are: shared values, structure, systems, style and what?

strategy, staff and skills

SWOT is one of the most commonly used analysis tools in business, but what does it analyse?

the organisation's current situation

What is a 'service encounter'?

the time during which a customer receives a service

What is the core product or benefit of a winter coat?

the warmth it provides

Porter's five forces is an industry analysis model. The five forces are: inter rivalry of competitors, bargaining power of customers, bargaining power of suppliers, threat of new entrants and what?

threat of substitutes

Apart from business growth, there are a number of other good reasons for selling products internationally. Which of the following are valid reasons?

to spread risk the firm has excess production capacity to extend the product life cycle

'Promotion' and 'Marketing Communications' are interchangeable terms.

true

A business mission statement is an explicit form of words that captures the broad aims of the company. True or false?

true

A supply chain is a network of businesses and organisations through which goods pass to get to their final destination. True or false?

true

Ansoff's Matrix illustrates the ways companies can grow through increasing sales opportunities. True or false?

true

Broadband provision is an example of a service industry.

true

Car insurance and IT consultancy are products. True or false?

true

Charging a high price for products tends to encourage new competition into a market. True or false?

true

Firms rarely compete on the basis of their products' physical features alone. True or false?

true

Going out to tender is a common way for prices to be set for government contracts, particularly for public works such as bridge building. True or false?

true

In a free market, a product's price would be set by the forces of demand and supply. True or false?

true

Increases in leisure time are one of the reasons behind the growth of service industries.

true

It is usually cheaper for an international company to sell standard consumer products all over the world, however cultural differences are likely to force them to make some adaptations. True or false?

true

Mark-up pricing is common in retailing. True or false?

true

Most new products are commercial failures. True or false?

true

One of the primary functions of packaging is to protect goods in transit. True or false?

true

Radio is a mass medium. True or false?

true

The Internet has opened up new channels of distribution. True or false?

true

At each stage in the supply chain, ______ is added to the bought in product (i.e. it is transformed into something more desirable and so can command a higher price).

value

Ivan runs a bakery. He has lots of bills to pay: electricity; rent for the shop; the staff's wages; flour for bread, cakes and pastries; spelt for his special spelt loaf; etc. His accountant says it is important to classify these costs correctly so that he can set the right prices for his products. How would you classify the cost of the spelt?

variable and indirect

Teatimes Ltd. are famous for their speciality teas. They are about to introduce two new teas based on their best-selling English Breakfast blend: Welsh Afternoon tea and Scottish Nightcap tea. What kind of new products are these?

variant

Price ______ start when two or more competitors continually undercut each other's prices.

wars

Which of the following could be classed as a durable good?

washing machine

What are marketing metrics?

ways to measure marketing effectiveness


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