MKTG EXAM 3

Brandless, inc. sells nearly 300 items in its website, almost all for just $ ______ each?

$3

When companies go global what questions must marketers ask?

1. To what extent will the company need to adapt its marketing communications to the specific styles and tastes of each local market? 2. Will the same product appeal to people there? 3. Will it have to be priced differently? 4. How does the company get the product into people's hands?

convenience store

Carry a limited number of frequently purchased items including basic food Products, newspapers, and sundries. Convenience store meet the needs of those who are pressed for time, who buy items in smaller quantities or who shop at irregular hours. Cater to consumers willing to pay a premium for the ease of buying staple items close to home.

vertical marketing system

Channel in which there is formal cooperation among channel members at two or more different levels: manufacturing, wholesaling, and retailing

Joe makes furniture out of wood and sells it to people in his town l. Before he can make the furniture he has to buy lumber from a local manufacturer. His system of getting furniture to customer is the ______.

Channel of distribution

To let employees and other stakeholders know definitively what is expected of them, many firms develop their own....

Code of ethics

Urban outfitters corporate created a _______ to help employees conducts business with honesty and integrity.

Code of ethics

hypermarket

Combine the characteristics of a warehouse store and supermarkets

Which of the following companies used a direct marketing channel? A). Holly Wreaths, a store that sells xmas ornaments to customers via its online click-to-order catalogs B). Fishhooks, a factory that manufactures fishing equipment that it ships to hobby stores worldwide C). Germfight, a factory that manufactures dental products that it distributes only to select department stores D). Blossoms, a company that sells its cosmetics exclusively through Rays retail store

A). Holly Wreaths, a store that sells xmas ornaments to customers via its online click-to-order catalogs

Standardization

Advocates argue that the basic needs and wants are the same everywhere. A focus on similarities among cultures means a firms doesn't have to make any changes to its marketing strategy to compete in foreign countries

Bottom up budgeting techniques

Allocating of the promotion budget based on identifying promotion goals and allocating enough money to accomplish them.

Embargo

An extreme quota that prohibits commerce and trade with a specified country altogether

Global warming

An increase in the average temperature of the earth's atmosphere (especially a sustained increase that causes climatic changes) *warming of the earth which will have a disastrous effect on the planet

Supermarkets

Are food stores that carry a wide selection of edible and nonedible products

Ashley works as an independent beauty consultant for Mary Kay. She sells Mary Kay products by holding parties, distributing catalogs, and occasionally, going door-to-door. Mary Kay uses a _______ marketing channel.

Direct

Speciality store

Have narrow and deep inventories. Don't sell a lot of Product line, but they offer a good selections of brands within the lines they do sell. Can tailor their assortment to the specific needs of a target consumer and they often offer a high level of knowledgeable service.

Fear appeal ads

Highlights the negative consequences of not using the advertised brand

Apple went into an exclusive partnership with Starbucks when it introduced iTunes. This allowed Starbucks customers to browse, download, and buy songs from apple. This type of broad marketing that connects commonalities across two different types of businesses is an example of ______

Horizontal marketing system

A five-foot high cardboard display of terry the polar bear, mascot of terry's protein shake, next to the shelf containing terry's products in a supermarket is an example of a (n) ______.

Point-of-purchase promotion

Philadelphia's Christmas Village located in Love Park can be considered a __________ because it appeared one day and will disappear in a month or two.

Pop-up store

Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and statewide media with information about community events and charity fundraisers sponsored by her company. This is an example of the ________ function of public relations.

Press releases

Power Pro, a leading manufacturer of lawn and garden equipment, releases a new line of cordless, lightweight, electric weed trimmers. To boost sales, Power Pro issues a 50 percent off coupon to the first 100 buyers at all Home Depot stores in the Northeast. Which element of the promotion mix has Power Pro used in this scenario?

Sales promotion

While other promotional mix elements, such as advertising, promote sales and brand image in the long-term, _______ helps a firm reach an immediate objective

Sales promotion

Logistics

The process of designing, managing, and improving the movement of products through the supply chain. Logistics includes purchasing, manufacturing, storage, and transport. Take place in both inbound and outbound functions

Inventory control

The process of ensuring your firm has an adequate amount of products and a wide enough assortment of them meet your customers' needs.

Integrated Marketing Communications (IMC)

The process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive, brand communication programs over time to targeted audiences.

Direct channel of distribution

The process through which goods are bought by the consumer directly from the producer.

disintermediation (of the channel of distribution)

The removal of intermediaries

locavorism

The trend for shoppers to actively look for products that come from farms within 50 to 100 miles of where they live.

Merchandise mix

The types or mix of products that are available for customers to purchase

Localization

The world is big that small- you need to tailor products and promotional messages to local environments. Each culture is unique with a distinctive set of behavioral and personality characteristics making the wants and needs different everywhere

In an oligopoly market

There are a relatively small number of sellers, each holding substantial market share, in a market with many buyers. Ex. Airline industry

Off-price retailers

These stores obtain surplus Merchandise from manufacturers and offer brand-name, fashion oriented goods at low prices. Ex. TJ MAXX, Marshall's, home goods

What is the purpose of the group 7?

To provide a way for these countries, democracies, with highly developed economies to deal with major economic and political issues that other countries and the international community face

Which of the following is a post testing technique used by telephone survey or personal interview to determine whether a person remembers seeing an ad during a specified period without giving the person the name of the brand?

Unaided recall

Coca-Cola drinkers began sharing pictures of themselves drinking coke on social media. As a result, Coca-Cola started a campaign which featured names on the outside of the bottles. Customer shared pictures online is a form of _____ that influenced advertising.

User generated content

Sams club can be considered a _____ because it sells bulk items for a low price.

Warehouse club

testimonial advertising

When a celebrity, an expert, or a normal man on the street states the products effectiveness

When does a MONOPOLY exist?

When one seller controls a market

When does nationalization occur?

When the domestic government reimburses a foreign owned company (often not for the full value) for its assets after taking it over.

When does perfect competition exist?

When there are many small sellers, each offering basically the same good or service. No single firm has a significant impact on quality, price of supply. Ex. Agricultural markets

horizontal marketing system

a channel arrangement in which two or more companies at one level agree to work together to get their product to the customer

Franchise organization

a contractual vertical marketing system that includes a franchiser who allows an entrepreneur to use the franchise name and marketing plan for a fee

Factory outlet store

a discount retailer, owned by a manufacturer, that sells off defective merchandise and excess inventory

In a licensing agreement..

a firm gives another firm the right to produce and market its product in a specific country or region in return for royalties on goods sold

Local content rules

a form of protectionism stipulating that a certain proportion of a product must consist of components supplied by industries in the host country or economic community

Retailer cooperative

a group of retailers that establishes a wholesaling operation to help them compete more effectively with the large chains

Corporate VMS

a single firm owns manufacturing, wholesaling, and retailing operations. The firm has complete control over all channel operations

Category killer

a very large specialty store that carries a vast selection of products in its category ex. Home Depot, toys r us, Best Buy, staples

joint venture

an agreement between two or more companies to share a business project or create a new entity

Standard of living

an indicator of the average quality and quantity of goods and services consumed in a country

nonstore retailing

any method used to complete an exchange with a product end user that does not require a customer visit to a store

multichannel promotional strategy

combine traditional advertising, sales promotion, and public relations activities with online buzz-building activities and social media

fair trade suppliers

companies that outsource production only to firms that pay workers in developing countries a fair/living wage

developing countries

countries with less productive economies and a lower quality of life. *countries in which the economy is shifting its emphasis from agriculture to industry

A straight extension strategy (standardization)

firm offers the same product in both domestic and foreign markets

reverse logistics

includes product returns, recycling and material reuse, and waste disposal

order processing

includes the series of activities that occurs between the time an order comes into the organization and the time the product goes out the door

merchant wholesalers

independent intermediaries that buy goods from manufacturers and sell to retailers and other B2B customers

Supercenters

large stores that combine a supermarket with a full-line discount store / lower priced merchandise

Franchising is a form of...

licensing that gives the Franchisee the right to adopt an entire way of doing business in the host country

Import quotas

limitations set by a government on the amount of a product allowed to enter or leave a country *reduce competition for their domestic industries

Competitive parity method

match competitor or industry average spending

Transportation and storage

occurs when retailers and other channel members move the goods from the production point to other locations where they can hold them until consumers want them

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

percentage of sales

____ are goods offered either free or at low cost as an incentive to buy a product; they may be in-pack, on-pack, or delivered through the mail.

premiums

Radio Frequency Identification (RFID)

product tags with tiny chips containing information about the item's content, origin, and destination

M-commerce

promotional and other e-commerce activities transmitted over mobile phones and other mobile devices, such as smart phones and personal digital assistants

Merchandise agents or brokers

provide services in exchange for commissions but never take title to the product

create assortments

providing a variety of products in one location so that customers can conveniently buy many different items from one seller at one time

Return on marketing

quantifying just how an investment in marketing has an impact on the firm's success, financially and otherwise

physical distribution

refers to activities that move finished goods from manufacturers to final customers

Tonality

refers to the mood or attitude the message conveys. Ex. Straightforward, humor, dramatic, romantic, sexy, fear

pop-up stores

retail experiences that "pop up" one day and then disappear after a period of one day to a few months

Dumping

selling products in a foreign country at lower prices than those charged in the producing country *an unethical and often illegal pricing practice

lifestyle format

shows a person attractive to the target market in an appealing setting (the person who buys it will attain the lifestyle

Unaided recall

tests by telephone survey or personal interview whether a person remembers seeing an ad during a specified period without giving the person the name of the brand

execution format

the basic structure of the message, such as comparison, demonstration, testimonial, slice of life, and lifestyle

Promotion mix

the communication elements that the marketer controls ex. Advertising, sales promotion, public relations, personal selling, direct marketing

return on investment

the direct financial impact of a firm's expenditure of a resource, such as time or money

World trade

the flow of goods and services among different countries - the value of all the exports and imports of the world's nations

Transportation

the mode by which products move among channel members

merchandise breadth

the number of different product lines available

Foreign exchange rate (forex rate)

the price of a nation's currency in terms of another currency

Retailing

the process by which organizations sell goods and services to consumers for their personal use

merchandise assortment

the range of products a store sells

Merchandise depth

the variety of choices available for each specific product line

Green customers

those consumers who are most likely to actively look for and buy products that are eco-friendly

Sustainability metrics

tools that measure the benefits an organization achieves through the implementation of sustainability ex. Material intensity, energy intensity, water consumption, toxic emissions, pollutant emissions

Gross sales

total of all income the firm receives from the sales of goods and services

Breaking bulk

wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers.

Limited service merchant wholesalers

wholesalers that provide fewer services for their customers.. less likely to provide services such as delivery, credit, or marketing assistance to retailers.

Code of ethics

written standards of behavior to which everyone in the organization must subscribe

Market share

The percentage of a market accounted for by specific firm, product lines, or brands

per capita GDP

GDP divided by the total population(number of people in a country)

You receive a report that says that the advertising media type you selected for your ad achieved a 68% reach. What does this 68% number mean?

68% of your target audience is exposed to your ad

In a state of monopolistic competition...

Many sellers compete for buyers in a market. Each firm offers a slightly different product, and each has only a small share of the market. Ex. Athletic shoe industry

How do you calculate gross margin ratio

= gross margin / net sales

Communication model

A good way to understand the basic of how any kind of message works

Expropriation is when...

A government seized a foreign company's asset without any reimbursement

Warehouse clubs

A newer version of a discount store. Customers buy many of the products in larger than normal packages and quantities. Ex. Costco, sams club, BJs

one-to-many model

A single marketer develops and sends messages to many consumers at once

slice of life advertising

A slice-of-life ad presents a (dramatized) scene from everyday life.. effective for everyday products such as peanut butter or headache remedies

U-Frame-It is a small company that has hired a local ad agency to put together an advertising campaign. Which of the following questions should be addressed before the others?

B. What are the message objectives of U-frame-It?

Business ethics

Basic values that guide the behavior of individuals within a business organization. These ethical values govern marketing planning decisions like what type of pricing they establish, what goes into their products, where they source raw materials, how they advertise etc.

Tom works for Villains inc. and he gives senator Scum $1,000 to help get a bill passed that will benefit Toms company. What is this called?

Bribery

Toward the end of the fiscal year, the owner of a small company came back from lunch concerned because he had learned that a business targeted to the same customers as his was planning on spending $150,000 on promotion. As soon as he arrived at the office, he called his financial manager and said, "I want to budget $150,000 for next year's promotion." Which method of promotional budgeting did the owner want to use? A) the objective-task method B) the percentage-of-sales method C) the competitive-parity method D) the bottom-up method E) the pull-push method Answer: C

Competitive parity method

consumer ethnocentrism refers to...

Consumers beliefs about products produced in their country vs those from another. * this causes consumes to be unwilling to try products made elsewhere

Franchising is a kind of _______ because the franchisee is contracted out by the franchisor. Together they coordinate the overall process related with the particular company.

Contractual VMS

Contractural VMS

Cooperation is enforced by contracts that spell out each members rights and responsibilities and how they will cooperate. This means that the channel members can have more impact as a group than they could alone.

The signature red and white Target logo, signage that says, "Expect more, pay less," and the white dog with bulls eye that appears in commercials are a part of targets ________. All of these components create the same look across all locations to achieve consistency.

Corporate identity

Nita can visit her local supermarket and buy a dozen roses, a gallon of milk, two birthday cards, a bag of cat litter, and a pan for roasting a turkey. This illustrates how channels of distribution benefit consumers by ________.

Creating assortments

United Airlines recently received a lot of complaints and negative comments because of an incident with a passenger that went viral on the web. As a result, United Airlines is using ________ to rebuilt their reputation.

Crisis management

Many producers are shifting away from using intermediaries or replacing traditional channels with new types in order to distribute their products to consumers. This is known as _______.

Disintermediation

independent intermediaries

Do business with many different manufacturers and customers. Can keep prices low and serve customers throughout the world.

Warehousing

Enables marketers to provide time utility to consumers by holding on to products until consumers need them

Protectionism

Enforced rules on foreign firms to give home companies an advantage

Net income

Excess of total revenues over total expenses

comparative advertising

Explicitly names one or more competitors

Dinea loves branded apparel and accessories, but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discounted, or irregular goods at significantly lower costs. This type of retail store is referred to as a(n) _______.

Factory outlet

channel intermediaries

Firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. An older term for intermediaries is middlemen.

Wholesaling intermediaries

Firms that handle the flow of products from the manufacturers to the retailer or business user.

The Group 7 is compromised of what countries?

France, Germany, Italy, Japan, the UK, and the US.

You just found out that TGI Friday's just granted you the right to use its trademark, business systems and processes. As a result you will be opening a restaurant according to these specifications this fall. What is this considered?

Franchising

In order to deliver a clear and consistent message about itself and it's brands to its target market, companies utilize ________

Integrated marketing communications

Annual and quarterly financial reports are both examples of _______ activities.

Investor relations

A company that relies on a pull strategy

Is counting on consumers to demand it products. This popularity will the convenience retailers to respond by stocking these items

Material handling

Is the moving of products into, within, and out of warehouses.

channel of distribution

Is the series of firms or individuals that facilitate the movement of a product from the producer to the final customer

Objective task method

Is used when the firm first defines the specific communication goals it hopes to achieve. It then tries to figure out how much advertising, sales promotion, buzz marketing, it will take to meet the goal.

An ad for Mongoose mountain bikes shows a serious biker traversing remote and rugged but beautiful terrain and states, "there are places that are so awesome and so killer that you'd like to tell the whole world about them. But please, don't." This ad use the _____ appeal.

Lifestyle

Homegrown Café chooses to serve its customer products that it purchases from supplies that are located a maximum of 50 miles away. Which strategy is it practicing?

Locavorism

A producer of beverages and snack foods wants to market its products to the 14-22 year old demographic, providing incentives to respond instantly to time-sensitive offers. Which of the following forms of direct marketing would this producer MOST likely choose? A. M-commerce B. Direct-response TV C. Direct Mail D. Telemarketing

M-commerce

To request a car through Uber you download the app, create an account with your credit card information, use the service, and pay all within the app. Since this transaction is processed completely through the app it is a form of

M-commerce

Service retailers examples

Massage envy, Amazon.com, Eskimo joes

A product invention strategy (localization)

Means a company develops a new product as it expands foreign markets

push strategy

Means that the company wants to move its product by convincing channel members to offer them and entice their customers to select these items- it pushes them through the channel. This approach assumes that if consumers see the product on store shelves, they will be motivated to make a trial purchase

Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________. A) wholesaling broker B) merchant wholesaler C) agent wholesaler D) manufacturer's agent E) manufacturer's representative

Merchant wholesaler

conventional marketing system

Multilevel distribution channel in which members work independently. Relationships are limited to simply buying and felling from one another.

Automatic vending

New vending machines that use touch screens and accept credit card or mobile payments to dispense many different products

Non-store retailing includes ALL of the following except _____?

Off-price retailers

_______ buy at less-than-regular wholesale prices and charge consumers less than retail prices for goods

Off-price retailers

Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company. Kiltmark produces flour-based edible products, which it distributes to a wholesale company called Yellowstar Trading. Yellowstar Trading then sells Kiltmark products to the discount retailer, Stroos. Stroos sells the products to consumers. Which of the following is considered a marketing intermediary in these transactions? A) only Kiltmark B) only Stroos C) only Yellowstar Trading D) both Yellowstar Trading and Stroos E) both Stroos and Mintel Agro

Only Yellowstar trading. It's an intermediary between kiltmark and stroos

PPS is a distributor and supplier of medical equipment and supplies. The company uses sales representatives in order to get the products to the end users. The sales reps go on sales calls to existing customers and visit prospective customers. What kind of sales forces does PPS use?

Outside sales force

Which is a better indicator of economic health, GDP or per capita GDP?

Per capita GDP bc it is adjusted for the population size of each country

______ is a company's most expensive promotion tool. U.S. firms spend up to three times as much on this form of promotion as they do on any other.

Personal selling

Kraft has adapted its popular Oreo cookie to the unique taste of consumers all around the world, whether its mango-and-orange flavored Oreos in the Asia pacific region, green tea Oreos in China, a chocolate and peanut variety in Indonesia, or banana and dulce de leche in Argentina. This is an example of _____.

Product adaptation because the company is adapting (changing) it's product to appeal to the taste of consumers all over the world.

To successfully market the corvette to the European market, General Motors had to make the automobiles shorter and narrower. GM chose to use a ______ strategy with the corvette.

Product adaption

Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation comedy about empty nesters. The conditions of the agreement state that the situation comedy will feature only the Starbucks brand of coffee. What kind of advertising technique is being used in this example?

Product replacement

Runners in the Broad Street Run wear a race bib that tracks each runners individual time because of its electromagnetic material. The ability to track each runner is made possible by ______.

RFID

Toro ran a clever preseason promotion on some of its snow blower models, offering some money back if the snowfall in the buyer's market area turned out to be below average. This is an example of a ________.

Rebate

A product adaption strategy (modified localization)

Recognizes that in many cases people in different cultures do have strong and different product preferences

Many to many model

Recognizes the huge impact of social media and uses of word of mouth communication

economic infrastructure

Refers to the availability of the resources (transportation, distribution networks, financial institutions, communications networks, and energy resources) that make doing business in a country possible

Coca-Cola television ads that build and maintain brand awareness are a type of ______.

Reminder advertising

Gross Donestic Product (GDP)

The most commonly used measure of economic health. * the total dollar value of goods and services a country produces within its borders in a year

Kelly was invited to examine a free copy of a new magazine called costal living. If she did not enjoy the magazine, she could write "refused" on the invoice for her subscription, which would arrive about three weeks after the free magazine. The magazine publisher was using ______.

Sampling

Department store

Sells a wide variety of products (clothes, furniture, housewares) in separate organized section of the store

Just-in-time (JIT)

Set up delivery of goods just as they are needed on the production floor, minimizing the cost of holding inventory while ensuring the inventory will be there when customers need it

Extortion occurs when...

Someone in authority extracts payment under duress

Bribery occurs when...

Someone voluntarily offers payment to get an illegal advantage

Several years ago, the Paradise Surf Shop was the only surf-gear store catering to women. It carried everything the serious female surfer needed to ride the waves. Paradise Surf Shoo is best described as a(n)

Speciality store

Toys R Us is a huge retail store that sells an incredible assortment of toys, games, electronics, craft projects, etc. despite selling so many different products, the staff is very knowledgeable. Toys R Us could be categorized as a ________.

Specialty store & category killer

Retailers like Sony style orchestrate every aspect of the shoppers store experience.. even the subtle fragrance of vanilla and mandarin orange (designed exclusively for Sony) that wafts down on customers. Sony style is carefully managing the _____?

Store atmosphere

In February 2000, the United States imposed a tax on imported steel in an effort to protect about 5,000 U.S jobs. Another name for this levied tax is a(n) _____.

Tariff

Tariffs

Taxes on imported goods. To give domestic competitors an advantage in the market place by making foreign competitors goods more expensive than their own products

Apple ran ads featuring real people who had switched from Microsoft Windows PCs to Macs. When companies use people, actors, or sports celebrities to express the products effectiveness, what kind of execution format is being used?

Testimonial

Aided recall

Tests use the name of the brand and some times other clues to prompt for answers.

Gross margin

The amount of sales revenue that is in excess of the cost of goods sold

Cost of goods sold

The cost of inventory or goods that the firm has sold

Net sales

The gross sale minus the amount for returns and promotional or other allowances give to customers

Percentage of sales method

The most common top down technique. Marketing communication budget is based on last years sales of an estimate for the present years sale