bcor 350 exam 3
In___________, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs.
segmented pricing
One major objective associated with a market-penetration pricing strategy is
to win a large market share
Which of the following statements is true regarding advertising in the new marketing communications model?
Advertisers are shifting toward digital media.
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
An administered VMS
A discount store (for example, Target, Kohl's, or Walmart) sells standard merchandise at lower prices. To do this, discount stores accept which of the following two conditions?
Lower margins and selling higher volume
Which of the following statements about retailer marketing decisions is correct?
Many retailers identify three critical factors for retail success: location, location, and location.
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
Market Penetration pricing
Which of the following is a reason that producers use marketing channels and channel intermediaries?
Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.
__________involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers.
REVERSE LOGISTICS
Which of the following is a potentially effective action a company could take in response to a competitor's price cut?
Reduce the price
What are the four major functions of logistics?
Warehousing, inventory management, transportation, and logistics information management
Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of
captive-product pricing.
Channel members' performance should be evaluated against standards which include all of the following except
channel management.
Channel members should be selected on the basis of all of the following attributes except
competitiveness.
Market skimming prices are preferred in all of the following conditions except
an initial low price is set by the companies.
To which category of the marketing communication mix do sales presentations, trade shows, and incentive programs belong?
personal selling
are huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores.
power centers
Some sellers use 00-cent endings on regularly priced items and 99-cent endings on discount merchandise. This is an example of pricing referred to as
psychological pricing.
is the promotion mix tool that consists of any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
advertising
Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called
retail convergence.
One framework for designing an effective message is the AIDA model. In the AIDA model
attention leads to interest, which hopefully leads to desire and then action
Companies that use _________ continually adjust prices to meet the characteristics and needs of individual customers and situations
dynamic pricing
When Apple introduced its iPhone, it priced the new product at $599, considerably higher than either its iPod or competing cellular phones. Apple Computer was pursuing a _____________ new product pricing strategy
market skimming
Major factors for changing the face of today's marketing communications include all of the following except
marketers are going for mass marketing.
One key function performed by channel members is __________, shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.
matching
have shifted the balance of power between retailers and producers
megaretailers
are the largest single group of wholesalers, accounting for roughly 50% of all wholesaling.
merchant wholesalers
Deceptive pricing
occurs when retailers set an artificially high "regular price" and then advertise a "sale price," which is actually close to their everyday price.
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of
optional-product pricing.
Companies now use ____________and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners.
partner relationship management
Archer Daniels Midland Co is the world's largest processor of soybeans, corn, and wheat. In the 1990s, the Justice Department found it guilty of regularly meeting with competitors when setting prices. ADM was guilty of
price-fixing
Federal legislation on ________ states that sellers must set prices without talking to competitors.
price-fixing
Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10). This is an example of
product bundle pricing
The pricing method in which sellers combine several products and offer a reduced price is known as
product bundle pricing
Specific promotional tools used in ___________ include press releases, sponsorships, events, and Web pages.
public relations
Techniques that can be used by sellers for avoiding customers' perception of price gouging include all of the following except
rationing products to customers.
Assume a competitor has cut prices and a company determines it should respond. Potential actions that the company could initiate include
reducing price, raising perceived value, improving quality and increasing price, and launching a low-price "fighter brand."
One type of contractual retail association is a _______________, which is a group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts.
retailer cooperative
Which of the following is an example of horizontal channel conflict?
A Ford dealer complaining that another Ford dealer is advertising in its territory
contains between 15 and 50 retail stores. It normally contains a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank.
A community shopping center
Which one of the following statements does NOT portray the success of global expansion of major retailers?
Adapting the operations that work well in the home country create success abroad.
Which of the following statements does not accurately reflect PR's role in marketing?
As the use of earned and shared digital content grows rapidly, PR is playing a smaller role in marketing content management.
Distribution channels are more than simple collections of firms tied together by various flows. Which of the following statements is NOT a characteristic of distribution channels?
Channel systems stand still, restricting formation of new intermediary systems.
Which of the following statements is true regarding initiating price cuts?
Cutting prices in an industry loaded with excess capacity might lead to price wars.
__________ is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line
Full-line forcing
Which of the following describes a just-in-time logistics system?
Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.
Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using?
Location-based pricing
are the largest single group of wholesalers.
Merchant wholesalers
Which of the following statements about setting an advertising budget is correct?
New products typically need relatively large advertising budgets to build awareness and to gain consumer trial.
___________ refers to the creation of a seamless cross-channel buying experience.
Omni-channel retailing
Which of the following statements about major retail trends is true?
Online buying is growing at a much brisker pace than retail buying as a whole.
Despite its potential strengths, public relations are occasionally described as a marketing stepchild because of all of the following reasons except
PR practitioners consider their job as simply communication.
In making products and services available to consumers, channel members add value. Key functions performed by the marketing channels include all of the following except
PRICING
Which element of the promotional mix is most effective in building up buyers' preferences, convictions, and actions?
Personal selling
the practice of pricing products below cost to harm competitors.
Predatory pricing
The retail marketing mix consists of which of the following?
Product and service assortment, retail prices, promotion, and place
Retailers must decide on which three major product variables?
Product assortment, services mix, and store atmosphere
Which PR tool improves public goodwill by having companies contribute money and time?
Public Service Activities
is the promotion mix tool that consists of short-term incentives to encourage the purchase or sale of a product or service.
Sales promotion
What is predatory pricing?
Selling below cost with the intention of punishing a competitor
involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale.
Shopper marketing
Which PR tool uses news conferences, speeches, brand tours, sponsorships, multimedia presentations, and educational programs?
Special Events
carry narrow product lines with deep assortments within those lines.
Speciality stores
are core PR strengths and that plays well into the use of online, mobile, and social media.
Storytelling and engagement
Which of the following statements regarding the changing communications landscape is correct?
The dominance of television, magazines, newspapers, and other traditional mass media is declining.
Which of the following statements about public relations is correct?
The lines between advertising and public relations are becoming more and more blurred.
Which method for setting the total budget for advertising is the most difficult to use?
The objective-and-task method
What are the three characteristics that advertising appeals should have?
To be meaningful, to be believable, and to be distinctive
What is the goal of integrated marketing communications?
To build clear, consistent, and compelling company and brand messages
What is the overall objective of advertising in an advertising program?
To help engage customers and build customer relationships
What is the purpose of the Robinson-Putnam Act?
To prevent unfair price discrimination
Which wholesaler channel function helps reduce inventory holding costs and the risks of suppliers and customers?
Warehousing
When does persuasive advertising become comparative advertising?
When a company directly or indirectly compares its brand to others
Which of the following statements is true regarding initiating price increases?
Wherever possible, the company should consider ways to meet higher costs or demand without raising prices.
Which of the following statements about wholesaling is true?
Wholesalers must make decisions regarding their marketing mix.
Annual reports, brochures, articles, and company newsletters and magazines are all which type of PR tool?
Written materials
UPS charges different prices for shipping depending on which region of the United States the item is being shipped to. The more distant the city the package is being shipped to, the higher the price UPS charges. Which geographic pricing method is UPS using?
Zone pricing
John Deere does very little promoting of its lawn mowers, garden tractors, and other residential consumer products to final consumers. Instead, John Deere's sales force works with Lowe's, The Home Depot, and other channel members. This is an example of using
a push strategy for promotion.
. A company wants to reach a large number of geographically dispersed buyers at a low cost per exposure. Which element of the promotional mix should the company use?
advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is considered
advertising.
Netflix recruits "Grammasters," influencers who have large Instagram followings. They travel around the world taking photos and creating videos. This is an example of using ____________ as a personal communication channel.
buzz marketing
Companies that make products that must be used along with a main product are using
captive-product pricing.
Using a push strategy, a firm directs its promotional efforts toward
channel members
When companies set their promotion budgets to match competitor's outlays, they are using the ___________method.
competitive parity
Logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and company cars and trucks are all types of
corporate identity materials.
The public relations function of __________ is used to work with donors or members of nonprofit organizations to gain financial or volunteer support.
development
A ___________ has no intermediary levels
direct marketing channel
Tiffany and Neiman Marcus are classified as
full-service retailers.
When iPhone was first introduced into the market, Apple highlighted its benefits and qualities. This type of advertising is referred to as
informative advertising.
From the producer's point of view, a greater number of levels of marketing channel mean
less control and greater channel complexity.
Nonpersonal communication channels include
major media, atomospheres, and events.
When a single firm sets up two or more marketing channels to reach one or more customer segments, it is using a m
multichannel distribution system
Companies today see channel members as first-line customers and practice strong
partner relationship management.
The Ford Mustang is offered in several different models. Ford will use ______________ to determine the price steps between the different models
product line pricing
The public relations function of _____________ is used to build and maintain national or local community relationships
public affairs
consist of activities designed to engage and build good relations with the company's various publics.
public relations
__________ advertising is more suitable for mature products.
reminder
Marketing management must first ___________ when developing an advertising program.
set advertising objectives
The ___________ execution style shows one or more "typical" people using the product in a normal setting.
slice of life
Which channel partners in a company's supply chain are upstream from a manufacturer or producer?
suppliers
When setting channel objectives, companies should state the objectives in terms of
targeted levels of customer service.
The reasons for considering public relations, which has a greater impact at a much lower cost than advertising, include
the possibility of stories to be picked up by different media
When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and
the responsibilities of channel members.
A retail trend resulting from weak economic conditions is
tighter consumer spending
The first step in developing an effective marketing communications program is
to identify the target audience
Using ____________, the customer shares real-time data on sales and current inventory levels with the supplier. The supplier then takes full responsibility for managing inventories and deliveries.
vendor-managed inventories
_______ is a strategy in which the seller requires that dealers not handle competitors' products.
EXCLUSIVE DEALING
Which of the following statements is true concerning new product pricing strategies?
For a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more.
L.L. Bean has turned its flagship store into a full-fledged outdoor adventure center, which is an example of
experiential retailing.
By performing the channel function of __________, wholesalers' sales forces help manufacturers reach many small customers at a low cost.
financing
By practicing ____________, today's retailers are increasingly adopting environmentally sustainable practices
green retailing
The first task for a communicator in preparing marketing communications is to
identify the target audience.
Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Because she does not know much about wine, she will likely use the price of the wines as an
indicator of quality
The concept of _______________ recognizes that providing better customer service and trimming distribution costs require teamwork.
integrated logistics management
What is the first step in marketing channel design?
Analyzing consumer needs
In the content of a message, marketers often use _________ appeals such as joy, love, humor, fear, and guilt.
emotional
Market penetration prices are preferred in all of the following conditions except
enough buyers must want the product at a higher price
As marketers adopt richer but more fragmented media and promotion mixes to reach their diverse markets, they risk creating a communications hodgepodge for consumers. To prevent this, companies have adopted the concept of
integrated marketing communications.
The length of a channel is indicated by the number of
intermediary levels
Companies today are placing greater emphasis on logistics for several reasons, which include all of the following except
limited product variety has created problems for logistics management.
Techniques that can be used by sellers for avoiding customers' perception of price gouging includes all of the following except
low price fighter items.
One reason there is a need for integrated marketing communications is that
consumers don't distinguish between content sources the way marketers do.
The franchise organization is the most common type of ____________VMS (vertical marketing system).
contractual
Producers of _____________ typically use intensive distribution for their products.
convenience goods
Historically, ______________ have lacked leadership and power, often resulting in damaging conflict and poor performance.
conventional distribution channels
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a
corporate VMS
Specific promotional tools used in _____________ include direct mail, catalogs, online and social media, mobile marketing, and more.
direct and digital marketing
