Principles to Marketing Final Exam Study Guide

Which of the following is especially crucial in the approach stage of the selling process? A) ensuring the customer understands the company's history B) telling the customer about the company's products C) listening to the customer D) presenting the solution that the customer needs E) overcoming the customer's objections

(C) listening to the customer

Which of the following is true about the sales force of a company? Salespeople rely on engineers and manufacturers to learn about customer needs. -The sales force plays a minor role in customer-company relationships. -Salespeople rarely visit in person with customers. -Salespeople represent customers to the company, championing customers' interests. -Salespeople do not have the authority to act on customers' objections.

-Salespeople represent customers to the company, championing customers' interests.

Stahl Inc. has 1.000 A-level accounts, each requiring 30 calls per year, and 3,000 B-level accounts, each requiring ten calls per year. If each salesperson at Stahl Inc. can make 1,500 sales calls per year, how many salespeople would be needed to meet the total workload? A) 25 B) 35 C) 40 D) 45 E) 60

40

________involves first identifying and assessing competitors and then selecting which competitors to attack or avoid A) Competitor analysis B) Self-competition C) Blue ocean strategy D) Quantitative analysis E) Perfect competition

A) Competitor analysis

____________are two or more outlets that are commonly owned and controlled. A) Corporate chains B) Convenience stores C) Off-price retailers D) Independent off-price retailers E Power centers

A) Corporate chains

_____________are offers of a trial amount of a product. A) Samples B) Coupons C) Premiums D) Rebates E) Price packs

A) Samples

Which type of store carries a deep assortment of a particular product line, has knowledgeable staff, and can be viewed as a giant specialty store? A) category killer B) convenience store C) factory outlet D) warehouse club E) off-price retailer

A) category killer

Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT A) company history B) current profitability ~ C) market share growth D) cash flow E) technological leadership

A) company history

In addition to sending samples of sheet music to schools, Gary sends school music directors messages with links to sample digital clips of the compositions. What kind of marketing is this? A) email marketing B) viral marketing C) kiosk marketing D) mobile marketing E) catalog marketing

A) email marketing

Press conferences, speeches, store openings, special events, newsletters, and store magazines are examples of______ activities used by retailers to promote themselves. A) public relations B) sales promotions C) personal selling D) affinity marketing E) social marketing

A) public relations

Happy Pet is a large pet food company that has convinced the retailers and the wholesalers of the New England area to resell its products. Happy Pet promises to reimburse the advertising costs to its retailers and wholesalers for advertising its products. This is an example of a(n) A) trade promotion B) point-of-purchase promotion C) sweepstake D) price pack E) advertising specialty

A) trade promotion

Bose offers $50 cash back to customers who purchase a new speaker and send in a proof of purchase. This is an example of a A)rebate B) POP promotion C) price pack D) premium E) sample

A)rebate

While using the ___________ method for setting an advertising budget, a company starts with total revenues, deducts operating expenses and capital outlays, and then devotes some portion of the remaining funds to advertising. a) integrated b) moving- average c) competitive-parity d) percentage-of-sales e) affordable

Affordable

________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping A) Shopper marketing B) Omni-channel retailing C) Test marketing D) Online marketing E) Consolidation marketing

B) Omni-channel retailing

_________ are huge unenclosed shopping centers consisting of a long strip of retail stores, including at least one large, freestanding anchor store like Walmart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store. A) Shopping malls B) Power centers C) Superstores D) Chain stores E) Regional shopping centers

B) Power centers

____________ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A) Franchising B) Retailing C) Brokering D) Wholesaling F Disintermediation

B) Retailing

Which of the following best explains the growth of telephone and online selling? A) the use of the Do Not Call Registry B) the ability to make up to 8 times as many more customer contacts per day than an outside salesperson C) the similarity in cost between the inside and outside sales forces D) the difficulty and expense of reaching some customers E) the preference of customers for face-to-face contact

B) The ability to make up to 8 times as many more customer contacts per day than an outside salesperson

An analysis conducted to determine what benefits target customers value and how they rate the relative value of various competitors' offers is known as A) customer lifetime value B) customer value analysis C) quantitative analvsis D) brand value propositior E) benchmarking

B) customer value analysis

Which type of store carries a wide variety of product lines and has been squeezed in recent years between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other? A) warehouse clubs B) department store C) factory outlet D) merchant wholesaler E) category specialist

B) department store

Cinnabon's realization that it doesn't just sell cinnamon rolls but instead sells "irresistible indulgence" is an example of a firm taking a(n) A) narrow view B) market view C) industry view D) firm view E) competitor view

B) market view

Overstock.com, a Web seller that buys furniture, clothing, electronics, and more from a variety of producers at less-than-regular wholesale prices and then charges customers less than retail, is a(n)__________ A) specialty store B) off-price retailer C) factory outlet D) wholesale club E) category killer

B) off-price retailer

20) A manufacturer that offers cash or gifts to dealers to encourage the purchase of its products is using A) coupons B) push money C) promotional products D) premiums E) bonuses

B) push money

_____________refers to the standard that establishes the amount each salesperson should sell and how sales should be divided among the company's products. A) Conditional sale B) A bill of sale C)A sales quota D) Prospecting E) Satisficing

C)A sales quota

To decrease direct marketing abuses, government agencies are investigating do-not-mail lists, do-not-track-online lists, and ________________. a) Claimed fraudulent credit card changes b) Can-spam legislation c) Possibly deceptive television advertising d) Offerings of illegal products e) Bait-and-switch offers

Can-spam legislation

Which of the following methods is used by companies to set their advertising budgets based on the industry average? a) percentage- of - sales method b) affordable method c) competitive-parity method d) objective-and-task method e) regression method

Competitive-parity method

Which of the following is illustrated by an amateur 30-second video developed by a consumer telling the story of the online crafts marketplace, Etsy.com? a) personal selling b) consumer-generated messages c) consumer ethnocentrism d) sales promotions e) consumerism

Consumer-generated messages

Logos, uniforms, brochures, and company trucks are all examples of ________ that can be used to help a company create a visual image for the public. a. direct marketing b. social marketing c. public service activities d. corporate identity materials e. buzz marketing materials

Corporate identity materials

In building a connection to customer through catalogs, marketers want to ________________. a) offer a new brand experience b) create an emotional connection c) create word-of-mouth advertising d) develop a viral following e) perform marketing research

Create an emotional connection

After creating a message strategy statement, the advertiser must develop a compelling ____________ that will bring the message strategy to life in a distinctive and memorable way. a) creative concept b) customer strategy c) customer benefit d) execution style e) media vehicle

Creative concept

___________are useful articles imprinted with an advertiser's name, logo, or message that are given as gifts to consumers. A) Rebates B) Cents-off deals C) Premiums D) Promotional products E) Sweepstakes

D) Promotional products

Consists of short-term incentives to encourage the purchase of a product or service. A) Value selling B) Conditional sale C) Advertising D) Sales promotion E) Benchmarking

D) Sales promotion

From a(n) ___________ point of view, Pepsi might see its competition as Coca-Cola, Dr. Pepper, 7UP, and the makers of other soft drink brands. From a(n) point of view, however, the customer really wants "thirst-quenching." A) market; industry B) market; consumer C) industry; competitive D) industry; market E) company's; consumer's

D) industry; market

Integrated marketing communications require a company's mass-marketing advertisements, Webs-site, e-mails, and personal selling communications to all _______________. a) have equal portions of the advertising budget b) use independent communications directors c) develop separate marketing objectives d) engage the same target audience e) deliver a clear, consistent, and compelling message

Deliver a clear, consistent, and compelling message

Which of the following types of marketing involves sending out letters, brochures, samples and DVDs to consumers' addresses? a) direct-response marketing b) direct-mail marketing c) direct digital marketing d) kiosk marketing e) online marketing

Direct-mail marketing

Richard, a salesperson, works for Wellington Steelworks. After researching a qualified lead, Richard is preparing opening lines for meeting the customer for the first time. Which step of the selling process is he about to enter? A) follow-up B) handling objections C) approach D) presentation E) preapproach

C) approach

The lighting in Jake's Steak Restaurant is dim. The chairs are covered in leather and each table is covered with a white linen cloth. The colors are limited to earth tones with an occasional splash of red. Patrons cannot hear any kitchen noises, only a pleasant melody that seems familiar but unrecognizable. The smells are extraordinarily varied. This is a description of the restaurant's ___________. A) promotions B) target C) atmosphere D) services mix E) product assortment

C) atmosphere

Omni-channel retailing includes all of the following except _____ A) cross-shopping on mobile devices B) integrating available shopping channels C) boosting online selling options D) omitting digital selling options E) increasing in-store shopping channels

C) boosting online selling options

Sears, Target, and Kroger are examples of ________ A) voluntary chains B) retailer cooperatives C) corporate chains D) franchise organizations E) warehouse clubs

C) corporate chains

The early _________ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts. A) department stores B) hypermarkets C) discount stores D) supermarkets E) full-service retailers

C) discount stores

Which type of retailer usually carries more specialty goods at high prices and is more likely to provide customers with assistance in every phase of the shopping process? A) self-service retailer B) limited-service retailer C) full-service retailer D) independent retailer E) off-price retailer

C) full-service retailer

Which of the following is the first step taken in the competitive intelligence system? A) collect published data and information from the field B) check, interpret, and organize gathered information C) identify the vital types of competitive information needed D respond to inquiries from managers about competitors E) create a new brand image and marketing concept for the firm

C) identify the vital types of competitive information needed

When a company provides superior value by leading its industry in price and convenience, it has obtained A) product leadership B) focus C) operational excellence D) customer intimacy E) differentiation

C) operational excellence

Sales force management includes all of the following EXCEPT -recruiting -evaluating -paying -supervising -training -salespeople.

paying

Which of the following promotion tools involves buildings up a good corporate image and handling unfavorable stories and events? a) sales promotion b)personal selling c)direct and digital marketing d)public relations e) advertising

public relations

____________creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Shopper marketing B) Point-of-purchase marketing C) Social media marketing D) Virtual marketing E) Omni-channel retailing

E) Omni-channel retailing

Which of the following steps in the selling process is most focused on ensuring customer satisfaction and repeat business? A) preapproach B) demonstration C) handling objections D) qualifying prospects E) follow-up

E) follow-up

Which of the following is an advantage of using digital catalogs? a) lists the phone number of interest prospects b) coordinate with direct-response television ads c) points customers to the nearest kiosk d) eliminates printing and mailing costs e) creates emotional contact with customers

Eliminates printing and mailing costs

Which of the following is an objective of persuasive advertising? a) communicate customer value b) correct false impressions c) describe available services and support d) keep the brand in a customer's mind during off-seasons e) engage customers and create brand community

Engage customers and create brand community

James is looking for a new suit for a job interview. He is shopping at Smith & Jones, a well-regarded menswear store. While he looks at various style and uses his smartphone to scan codes, the menswear shopping app provides him with suggestions for shirts, ties, and shoes that would complete the ensemble he needs to make a strong, positive impact at his interview. The ability of the app to provide this information serves to_____________. a) enrich the shopping experience b) annoy James c) complicate the shopping experience d) use James' data plan e) interrupt the shopping experience

Enrich the shopping experience

10) In the territorial sales force structure, each salesperson is responsible for selling a single, exclusive product across different geographical regions. T/F

False

During the prospecting step of the selling process, the salesperson meets the customer for the first time. T/F

False

In a complex sales force structure, salespeople can be specialized by customer and territory; product and territory; product and customer; or territory, product, and customer. T/F

False

Sales promotion consists of long-term incentives to encourage the purchase of a product or service. T/F

False

The direct mail medium has very low cost per exposure. T/F

False

While a company can choose to participate in public service activities, doing so has no impact on public goodwill toward the company. T/F

False

If a company ________, it should adopt a product sales for structure in which the sales force specializes along product lines - specializes in a single product - manufactures a small number of simple products - maintains that product specialization is counterproductive - has numerous complex products - lacks salespeople with superior technical know-how , it should adopt a product sales force structure in which the sales

Has numerous complex products

Explain the concept of integrated marketing communications (IMC).

IMC calls for recognizing all touch point where the customer may encounter the company and its brand. While implementing IMC , the company

Which of the following is the first step in developing an effective integrated communications and promotion program? a) designing a message b) identifying the audience c) determining the communications objectives d) collecting feedback e) choosing the media through which to send a message

Identifying the audience

When starting their business, John and Bard would most likely have benefitted from understanding_____________. a) social media b) buzz marketing c) public relations campaigns d) network television advertising e) integrated marketing communications

Integrated marketing communications

Which of the following statement is true regarding the affordable method for setting a promotions budget? a) It is mostly used by large businesses. b) It completely ignores the effects of promotion on sales. c) It tends to place promotion first among spending priorities d) It leads to a certain annual promotion budget e) It almost always results in overspending

It leads to a certain annual promotion budget

Green Garden is a click-and-mortar company that sells gardening and landscaping goods and equipment. When customers are unable to find a product they need on the shelves of their local Green Gardens store, customers order the product online with the help of the in-store ordering machine. Which of the following best describes the ordering machine? a) Kiosks b) Digital catalog c) Podcasts d) Tablet e) Online networks

Kiosks

____________ are everywhere these days, from self-service hotel and airline check-in devices to in-store ordering devices that let you order merchandise not carried in the store. a) Informercials b) Viral videos c) Kiosks d) Podcasts e) Catalogs

Kiosks

What is a disadvantage of a viral success? a) Many people will see the marketing message b) The cost per exposure is relatively low c) Word-of-mouth is strong d) Publicity is always good e) Marketers have little control over where the message ends up

Marketers have little control over where the message ends up

Which terms refer to the qualitative value of message exposure through a given medium? a) reach b) turnover rate c) efficiency d) media impact e) frequency

Media impact

Which kind of social media networks are smaller communities likely to join or create? a) blog b) niche c) internet d) video e) commercial

Niche

Which of the following is the most logical budget-setting method? a) percentage-of-sales method b) affordable method c) competitive-parity method d) objective-and-task method e) push method

Objective-and-task method

Online marketing includes marketing via the Internet using company websites, e-mail, marketing, blogs, and ________________. a) direct mail brochures b) live demonstrations c) samples d) online video e) focus groups

Online video

By using________ to contact potential customers, marketers sell directly to consumers. a) undercover marketing b) outbound telephone marketing c) affinity marketing d) multi-level marketing e) ambush marketing

Outbound telephone marketing

Advertising objectives should be based on the marketing mix, positioning, and ___________. a) differentiation b) past decisions about the target market c) costs of different media choices d) ability to create special events e) novelty of the product advertised

Past decisions about the target market

Encouraging customers to switch brands is most likely the objective of ________ advertising. a) informative b) reminder c) covert d) persuasive e) institutional

Persuasive

Josh received an e-mail stating that he had won a lottery of $500,000 from Lottors Corporation. The e-mail asked Josh to send his bank account details and social security number to transfer cash directly to his account. Josh did not remember buying any lottery tickets and so was apprehensive about providing his bank details without verification. Which of the following is illustrated from this scenario? a) Adware b) Viral marketing c) Telemarketing d) Cyberbullying e) Phishing

Phishing

Pepsi being prominently featured on episodes of Empire is an example of ________. a) advertainment b) buzz marketing c) personal selling d) sales promotion e) product placement

Product placement

_____________ is very believable because news stories, features, sponsorships, and events seem more real and believable to readers than ads do. a) Differentiated Marketing b) Public Relations c) Direct Marketing d) Sales Promotion e) Personal Selling

Public Relations

A product in the maturity stage will most likely require_______________ advertising. a) informative b) comparative c) persuasive d) reminder e) covert

Reminder

Online ads that incorporate animation, video, sound, and interactivity are called ________. a) search-related ads b) rich media ads c) content-based ads d) digital catalogs e) parody ads

Rich media ads

Audience quality, audience engagement and editorial quality are most likely to be considered when a media planner________. a) decides on media timing b) selects an execution style c) selects a media vehicle d) evaluates return on investments e) measures the communication effects of an advertisment

Selects a media vehicle

Which of the following best describes permission-based e-mail marketing? a) sending unsolicited, unwanted commercial e-mail messages b) sending requests to users to join online social networking communities c) sending e-mail pitches only to customers who "opt-in" d) offering free promotional materials to new customers e) gathering demographic details for customer databases

Sending e-mail pitches only to customers who "opt-in"

Most clients of Second Avenue have learned about the store through word-of-mouth communication. This small retailer of quality secondhand children's clothing thrives on the sale of a vast inventory of children's clothing placed on consignment. " Because small children grow so quickly," Second Avenue's owners commented," they often outgrow many of their clothes before they've hardly been worn!" Second Avenue provides a way for people to sell their children's clothing, earn a few dollars, and buy the next larger size. " We're extremely picky about the condition of the clothing we stock," the owner stated, " but we sell most items at a 60-percent discount." Which of the following media options would be the LEASR costly for Second Avenue's promotional efforts? a) periodic advertising in a local newspaper that follows a regular monthly schedule b) daily advertisements on a cable television station c) daily commercials during the local evening news d) a billboard placed on the nearest interstate highway e) a billboard placed in a supercent

a) periodic advertising in a local newspaper that follows a regular monthly schedule

Which of the following is the last step in the selling process? A) qualifying B) handling objections C) demonstration (D)follow-up E) approach

approach

Marketers now view themselves as ________ that create and share brand messages and conversations with and among customers across a mix of paid, owned, earned, and shared communication channels. a) promotion managers b) public relations mangers c) sales managers d) content marketing managers e) account managers

content marketing managers

Shifting away from mass marketing, marketers are developing ________ which are designed to build closer relationships with customers in more narrowly defined micro-markets. a) focused marketing programs b)horizontal diversification programs c)backward integration strategies d) new pull strategies e) new push strategies

focused marketing programs

The key is to _________ traditional mass media with online, mobile, and social media to best engage customers, communicate the brand message, and enhance the customer's brand experiences. a) prioritize b) integrate c)utilize d)design e)spend on

integrate

Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tools are approximately $1 million. "You might say we have all our eggs in one basket," says owner Arthur Deetz. It is critical that a competent sales force be maintained in order to nurture those few but large accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is crucial. 9) For sales managers to understand how the members of the Reliable Tools sales force spend their time, the salespeople must submit a(n) A) expense report (B) time-and-duty analysis C) mobile conferencing schedule D) sales forecast E) incentive plan

B) time-and-duty analysis

The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature. In recent years, owner Gary Zahn has served as the local representative of several musical instrument manufacturers, providing a contact person for three local schools. He sends a sample of a manufacturer's products to schools that request a demonstration or presentation. "If we don't have it, we can definitely get it for you," Gary tells all Treble Clef visitors and customers. Most walk-ins are particularly interested in a specific piece of sheet music from a particular era or just browsing among the hundreds of music knick-knacks in the store. Gary spends most of his time making presentations to beginners at the local schools and making biweekly visits to the schools to deliver instruments, make minor repairs, or pick up instruments to ship to the manufacturer for more complicated repairs. After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could benefit a variety of customers. He began with a simple Web site that provided information about the store and the types of gifts and services available. The site received so much response that Gary added a question-and-answer option. Questions poured in, ranging from "Where can I get sheet music for 'Hello, Dolly?" to "Do you carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at Elmhurst School to repair it?" The Web site is now able to accept credit card orders, and gifts can even be wrapped and shipped for no extra charge. "This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our novelties sales have doubled!" 18) Gary sends samples of sheet music to schools for demonstration or presentation. Which of the following types of marketing is being illustrated from this statement? A) kiosk marketing B) viral marketing C) direct-mail marketing D) telemarketing E) direct-response television marketing

B) viral marketing

A competitor analysis requires the assessment of all of the following EXCEPT the competitors'________________. A) objectives B)organizational hierarchy C) strategies D) strengths and weaknesses E) reaction patterns

B)organizational hierarchy

A large retailer of home improvement and construction products offers "how-to" classes for do-it-yourselfers, featuring instructions on how to complete home improvement projects using products sold at its stores. This is an example of how the retailer has differentiated itself through its _________ A) product assortment B)services mix C) segmentation D) atmosphere E) pricing

B)services mix

Spartan Sportsgear is a company that sells sports equipment for adventure sports. It recently launched ExtremeSpartan.com to showcase products and provide testimonials of famous adventure sports athletes who use Spartan's products. It also includes videos and blogs. Which of the following best describes ExtremeSpartan.com? a) brand community website b) digital catalog c) social network d) podcast e) blog

Brand community website

John Mayes opened Sparkle Janitorial in 2005. John began by acquiring two contracts for office cleaning services from two local manufacturing facilities. For two years, John and his wife, Barb, performed the cleaning services alone. After acquiring three additional cleaning contracts in 2007, John hired two employees. "Up to that point, we had room to grow, but we had no advertising plan," John stated. "We were relying mostly on word-of-mouth." By 2010, Barb hired another two full-time employees to begin Sparkle's new endeavor: carpet cleaning in homes and offices. "Competition was getting tough for both of our services at that point," Barb added. "We ran a local radio spot three times each week. Then we had an advertiser print coupons on placemats. That gave us a little more exposure." John and Barb Mayes admit that they never realized the value of a sound promotional plan before now. "We wish we would have put together something catchy with a jingle long before now," they said. John and Barb could have drawn attention to their services in several ways by using effective integrated marketing communications. Which of the following is NOT a part of an IMC strategy? a)public relations b) personal selling c) direct marketing d) strategic planning e) sales promotion

Strategic planning

You want to advertise your new product. You want good mass marketing coverage and low cost per exposure. You also want to combine sight, sound, and motion and make the advertisement appealing to the senses. You should choose ________ as your advertising media. a) newspaper b) radio c) magazines d) television e) direct mail

Television

An integrated social marketing campaign likely could include all of the following EXCEPT_________________. a) Facebook pages b) Twitter postings c) Instagram photos d) Television ads e) Youtube videos

Television ads

Which of the following is a reason a consumer would follow a company's blog? a) The blog offers fresh insights or new ideas about the company or products b) The blog provides the consumer with familiar information c) The blog allows consumers to communicate with each other d) A well-followed blog gives the company influence in the marketplace e) Consumers know that companies want them to follow the blog postings

The blog offers fresh insights or new ideas about the company or products

Which of the following is NOT a major public relations tool? a) trade shows and conferences b) stationery, logos, and uniforms c) public service activities d) videos e) annual reports and brochures

Trade shows and conferences

Advertising is the least used of the major promotions tools, although it has great potential for building consumer awareness and reference. T/F

True

As mass markets have fragmented, marketers have shifted away from mass marketing. T/F

True

Direct and digital marketing includes catalog, e-mail, direct mail, social media, and mobile marketing. T/F

True

Personal selling involves interpersonal interactions between salespeople and individual customers. T/F

True

When using public relations, the company pays for space and time in the media. T/F

True

While cuts in advertising may appear to do little short-term harm to sales, reducing and spending may cause long-term damage to a brand's image and market share. T/F

True

In what situation is a complex sales force structure used? - when a company sells a narrow variety of products to few types of customers over a broad geographic area - when a company sells a wide variety of products to many types of customers over a broad geographic area - when a company sells a wide variety of products to many types of customers over a small geographic area - when a company sells a wide variety of products to few types of customers over a s mall geographic area - when a company sells a narrow variety of products to many types of customers over a small geographic area

When a company sells a wide variety of products to many types of customers over a broad geographic area

Which of the following statements is true regarding the vital importance of the media-planning function? a) With changing technologies, media costs are declining b) brand content is usually created in-house by the company c) which media to use is sometimes more critical than the creative elements of the messaging. d) market targeting has declined in importance in the planning stages. e) because so many consumers use the same mobile and social media applications, messaging can be less focuses.

Which media to use is sometimes more critical than the creative elements of the messaging.