intro to mark -ch9-16

During the​ 1980s, Progressive added which type of marketing​ channel?

Direct

Prior to​ 1945, Progressive, like all insurance​ companies, used which of the following marketing​ channels?

Direct

The key to​ Hammerpress's capability to meet its​ customers' needs and budget​ goals, while maintaining its​ profitability, lies in which of the following pricing​ tactics?

Dynamic pricing

Which of the following statements does NOT describe​ price?

Price is the only element in the marketing mix that represents costs. Price is the only element in the marketing mix that produces revenue because all other elements represent costs. Price is also one of the most flexible marketing mix elements. Unlike product features and channel​ commitments, prices can be changed quickly.

First Flavor would best be described as assisting companies in which of the marketing mix​ elements?

Sales promotion

Which of the following best describes the advertising media first used with​ Kmart's "Big Gas​ Savings" and​ "Shipped My​ Pants" commercials?

Social Media

First Flavor does not use​ online, mobile, or social media to engage​ customers, indicating that First Flavor is not engaged in which of the​ following?

Social selling

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​ __________for promotion.

a push strategy A push strategy involves​ "pushing" the product through marketing channels to final consumers. 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, independent​ dealers, and other channel​ members, who in turn push John Deere products to final consumers.

A sales contest is considered a part of​ __________.

business promotions

Hammerpress utilizes different pricing strategies than other printing​ companies, which sell printers to the​ home-printing market at a low price point and then sell the continual ink cartridge purchases at a high price point. Which type of pricing strategy is​ this?

captive product pricing

The franchise organization is the most common type of​ __________ VMS​ (vertical marketing​ system).

contractual The franchise organization is the most common type of contractual relationship. In this​ system, a channel member called a franchisor links several stages in the​ production-distribution process.

A large ink jet printing company enters the letter press market and sells its printing services at a loss just to drive Hammerpress out of business. This is an example of​ _________.

predatory pricing

The first step in the personal selling process is​ __________.

prospecting

15. Marketing management must first​ __________ when developing an advertising program.

set advertising objectives The first step that needs to be considered when developing an advertising program is to set​ objectives, which should be based on engaging customers and building customer relationships by communicating customer value.

Which of the following best describes Burger​ King's pricing strategy regarding its chicken nuggets during​ McDonald's Monopoly​ promotion?

​Competition-based pricing

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 Simply adapting the operations that work well in the home country is usually not enough to create success abroad.​ Instead, when going​ global, retailers must understand and meet the needs of local markets.

Distribution channels are more than simple collections of firms tied together by various flows. Which of the following is NOT a characteristic of distribution channels?

Channel systems stand still, restricting formation of new intermediary systems. Channel systems do not stand still - new types of intermediaries emerge and whole new channel systems evolve.

With regard to supply and​ demand, which of the following best represents the intentions of the​ fast-food company's slash on​ prices?

Demand will increase for its products

Profits increase during the​ __________ stage of the product life cycle.

Growth Profits increase during the growth stage as promotion costs are spread over a large volume and as unit manufacturing costs decrease.

Which of the following statements does not apply to the description of​ prices?

In recent decades price factors have gained increasing importance. In recent​ decades, nonprice factors have gained increasing importance. Nonprice features such as online buying and​ delivery, use of mobile​ applications, and rapid delivery of ordered​ items, are having a great impact on marketing and finally profitability

Which of the following best describes the value that was added when agents were added to​ Progressive's marketing​ channel?

Increased customer service

Which of the following is true regarding​ Progressive's advantage of adding a direct marketing channel in the​ 1980s?

Increased market share through streamlined marketing

Which of the following best describes Kmart's execution style in its advertisements

Mood

14. To which category of the marketing communication mix do sales​ presentations, trade​ shows, and incentive programs​ belong?

Personal selling Personal selling includes sales​ presentations, trade​ shows, and incentive programs.

__________ are huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores.

Power centers Power centers are huge unenclosed shopping centers consisting of a long strip of retail​ stores, including​ large, freestanding anchors such as​ Walmart, Home​ Depot, Costco, Best​ Buy, Michaels,​ PetSmart, and Office Depot. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store.

__________ advertising is more suitable for mature products.

Reminder Reminder advertising is used for products that are mature and are in use for a long period of time. The idea is to remind consumers about the existence of the brand or products. For​ example, Pepsi and Coke remind consumers of their existence in the market most often by sponsoring events or activities rather than directly selling their products.

What is predatory​ pricing?

Selling below cost with the intention of punishing a competitor Predatory pricing is selling below cost with the intention of punishing a competitor or gaining higher​ long-run profits by putting competitors out of business.

When First Flavor promotes its products to other organizations as a marketing​ tool, the company may wish to showcase its product to numerous potential customers at once. Which promotional tool would you recommend to First​ Flavor?

Trade shows

Which of the following would best describe the marketing objective of a company utilizing First Flavor​ samples?

Urging​ short-term customer buying

When does persuasive advertising become comparative​ advertising?

When a company directly or indirectly compares its brand to others Persuasive advertising can change into comparative advertising when a company directly or indirectly compares its brand with one or more other brands. Comparative advertising is also referred to as attack advertising because the intent of the advertising is to compete with and compare to other existing brands. Comparative advertising campaigns may create controversy.

Any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor is considered​ __________.

advertising Any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor is considered a major promotion tool under the broad category of advertising.

Market skimming prices are preferred in all of the following conditions except​ __________.

an initial low price is set by the companies In market penetrating​ pricing, companies set a low initial price to penetrate the market quickly and​ deeply, mainly to attract a large number of buyers quickly and win a large market share. This is another method of pricing which is different than the market skimming prices.

When companies set their promotion budgets to match​ competitor's outlays, they are using the​ __________ method.

competitive-parity Companies use the​ competitive-parity method by setting their promotion budgets to match​ competitors' outlays. They monitor​ competitors' advertising or get industry promotion spending estimates from publications or trade associations and then set their budgets based on the industry average.

Channel members should be selected on the basis of all of the following attributes except​ __________.

competitiveness

New product development starts with ______.

idea generation. New product development starts with the generation of​ ideas, which is a systematic search for new product ideas. A company may generate hundreds of ideas from internal sources as well as from external sources such as​ customers, suppliers, and distributors

Major factors for changing the face of​ today's marketing communications include all of the following except​ __________.

marketing are going for mass marketing Marketing strategies are changing. As mass markets have​ fragmented, marketers are shifting away from mass marketing. More and​ more, they are developing focused marketing programs designed to engage customers and build customer relationships in more narrowly defined​ micro-markets.

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. More than any other​ department, PR has always been responsible for creating relevant marketing content. With the use of technology and social​ media, PR is playing a bigger role in marketing content management.

Which of the following best describes the highest price that a customer is willing to pay for a​ fast-food chain's​ products?

Customer perception

__________ development focuses on finding new ways to solve customer problems

Customer-centered new product Customer-centered new product development focuses on finding new ways to solve customer problems and create more​ customer-satisfying experiences. Successful new product development begins with a thorough understanding of what consumers need and value.​ Customer-centered new product development focuses on finding new ways to solve customer problems and create more​ customer-satisfying experiences.

L.L. Bean has turned its flagship store into a​ full-fledged outdoor adventure​ center, which is an example of​ __________.

Experiential retailing Many retailers practice experiential retailing. For​ example, L.L. Bean has turned its flagship Freeport store and campus into a​ full-fledged outdoor adventure​ center, where customers can​ hike, bike,​ golf, kayak, or even go seal watching or fishing at nearby Cisco Bay.

What​ action(s) can a company take in order to bring marketing and sales functions​ together?

Let brand managers tag along on sales calls.

The Kmart commercials depicted in the video utilized both advertising and entertainment. This is known as which of the​ following?

Madison​ & Vine

__________ have shifted the balance of power between retailers and producers.

Megaretailers Megaretailers have shifted the balance of power between retailers and producers. A small handful of retailers now controls access to enormous numbers of​ consumers, giving them the upper hand in their dealings with manufacturers.

__________ are the largest single group of wholesalers.

Merchant wholesalers Merchant wholesalers are the largest single group of​ wholesalers, accounting for roughly 50 percent of all wholesaling.

In which type of competition do​ fast-food restaurants​ operate?

Monopolistic competition

The goal of the​ competition-based pricing is​ __________.

Not to match or beat competitors' price.** The goal of the​ competition-based pricing is not to match or beat​ competitors' prices.​ Rather, the goal is to set prices according to the relative value created versus competitors. If a company creates greater value for​ customers, higher prices are justified

13. __________ retailing refers to the creation of a seamless​ cross-channel buying experience.

Omni-channel Omni-channel retailing refers to creating a seamless​ cross-channel buying experience that integrates​ in-store, online, and mobile shopping.

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 Public relations practitioners are interested in sales and profits. Marketing managers and PR practitioners do not always speak the same​ language, while mangers are interested in sales and​ profits, PR practitioners consider their jobs as simply communicating.

Hammerpress must decide how to price the standard​ run-rate items it​ sells, such as business​ cards, wedding​ invitations, and posters. Which type of pricing strategy is​ this?

Product line pricing

If​ Brady, the owner of​ Hammerpress, strategically discounts the price of all gift cards by​ 20% during the holidays and runs a campaign to encourage gift card​ purchases, he is implementing which type of​ pricing?

Promotional

It is likely that salespeople at First Flavor try to identify potential business customers to utilize the​ Peel-n-Taste product in their marketing campaigns. Which of the following best describes this step of personal selling​ process?

Prospecting

Which of the following is not a step in an effective sales management​ process?

Prospecting

Although Kmart received praise for creating one of the funniest commercials of its​ time, the company was also criticized for​ it, causing marketers to combat the negativity through press releases. Which of the following marketing mix elements is mostly aligned with the​ marketers' decision to issue press​ releases?

Public relations

Which one of the following statements is not true regarding social​ selling?

Social selling has changed the fundamentals of selling.

__________ reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?"

Target-added pricing Target costing reverses the usual process of first designing a new​ product, determining its​ cost, and then​ asking, "Can we sell it for​ that?" Instead, it starts with an ideal selling price based on customer value considerations and then targets costs that will ensure that the price is met.

16. Which of the following statements does not reflect the role of salespersons within a​ company?

The concept of​ salesperson-owned loyalty describes the loyalty that salespersons have toward the company.

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 Netflix recruits​ "Grammasters," influencers who have large Instagram followings. The Grammasters travel around the world taking photos and creating video content of familiar sets and scenes from popular original Netflix shows and posting them to​ Instagram, letting Netflix bingers engage even more deeply with their favorite Netflix series.

Companies that make products that must be used along with a main product are using​ __________.

captive-product pricing Companies that make products that must be used along with a main product are using ​captive-product pricing. Examples of captive products are razor blade​ cartridges, video​ games, printer​ cartridges, single-serve coffee​ pods, and​ e-books. Producers of the main products​ (razors, video-game​ consoles, printers,​ single-cup coffee brewing​ systems, and tablet​ computers) often price them low and set high markups on the supplies

Channel members' performance should be evaluated against standards which include all of the following except​ __________.

channel management Channel management is the responsibility of the corporation and is not used in the performance evaluation of channel members

The aim of​ transaction-oriented marketing is to help salespeople​ __________.

close a specific sale

Toro ran a preseason promotion on its snowblower models offering a rebate if the snowfall in the​ buyer's market area turned out to be below average. This is an example of​ __________.

consumer promotion

Historically, _______ have lacked leadership and power, often resulting in damaging conflict of poor performance.

conventional distribution channels Historically, conventional distribution channels have lacked leadership and​ power, often resulting in damaging conflict and poor performance. One of the biggest channel developments for years has been the emergence of vertical marketing systems that provide channel leadership.

Through a company invites broad communities of people into the innovation process.

crowdsourcing Through​ crowdsourcing, a company invites broad communities of peoplelong dash​customers, ​employees, independent scientists and​ researchers, and even the public at largelong dashinto the innovation process. Thus new ideas can be sought from both internal and external sourcing.

​__________ uses​ buyers' perceptions of value as the key to pricing.

customer value-based pricing Customer value based pricing uses​ buyers' perceptions of value as the key to pricing.​ Value-based pricing means that the marketer cannot design a product and marketing program and then set the price. Price is considered along with all other marketing mix variables before the marketing program is set

A(n) _______ has no intermediary levels.

direct marketing channel A direct marketing​ channel, has no intermediary levels - the company sells directly to consumers. For​ example, Mary Kay Cosmetics and Amway sell their products through home and office sales parties and online Web sites and social​ media; companies ranging from GEICO insurance to Omaha Steaks sell directly to customers via​ Internet, mobile, and telephone channels.

Market penetration prices are preferred in all of the following conditions except​ __________.

enough buyers must want the product at a higher price In​ market-skimming pricing, enough buyers must want to buy the product because the initial price is very high. Rather than setting a high initial price to skim off small but profitable market​ segments, some companies use​ market-penetration pricing by setting a low initial price to penetrate the market quickly and deeply.

Tiffany and Neiman Marcus are classified as​ __________ retailers.

full-service Full-service retailers, such as​ high-end specialty stores​ (for example, Tiffany and​ Williams-Sonoma) and​ first-class department stores​ (such as Nordstrom and Neiman​ Marcus), assist customers in every phase of the shopping process.​ Full-service stores usually carry more specialty goods for which customers need or want assistance or advice.

The first task for a communicator in preparing marketing communications is to​ __________.

identify the target audience In preparing marketing​ communications, the​ communicator's first task is to identify the target audience and its characteristics.

When iPhone was first introduced into the​ market, Apple highlighted its benefits and qualities. This type of advertising is referred to as​ __________.

informative advertising Whenever a new product or service is introduced in the​ market, the manufacturers advertise its benefits and qualities. This becomes more important when the product or service is brand new and uses sophisticated technology.

The concept of​ __________ recognizes that providing better customer service and trimming distribution costs require teamwork.

integrated logistics management The concept of integrated logistics management recognizes that providing better customer service and trimming distribution costs require​ teamwork, both inside the company and among all the marketing channel organizations.

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 (IMC) 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​ (IM. Guided by an overall IMC​ strategy, the company works out the roles that the various promotional tools and marketing content will play and the extent to which each will be used. It carefully coordinates the promotional activities and the timing of when major campaigns take place.

Form the producer's point of view, a greater number of levels of marketing channel means _________.

less control and greater channel complexity By having several levels within a marketing channel the producers will have less control. Also the channel complexity will be​ greater, almost proportional to the number of channels

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 Actually it is the explosion in product variety that has created a need for improved logistics management.

Federal legislation on​ __________ states that sellers must set prices without talking to competitors.

price-fixing Federal legislation on​ price-fixing states that sellers must set prices without talking to competitors.​ Otherwise, price collusion is suspected.​ Price-fixing is illegal per selong dashthat ​is, the government does not accept any excuses for​ price-fixing.

In making products and services available to consumers, channel member add value. Key functions performed by the marketing channels include all of the following except​ __________.

pricing Members of the marketing channel perform many​ functions, but pricing is not one of them. Reaching an agreement on price so that ownership or possession can be transferred is conducted by the function of negotiation.

The pricing method in which sellers combine several products and offer a reduced price is known as​ __________.

product bundle pricing Using product bundle​ pricing, sellers combine several products and offer the bundle at a reduced price. For​ example, fast-food restaurants bundle a​ burger, fries, and a soft drink at a​ "combo" price.

Marketers should carefully consider public policy issues and regulations regarding all of the following except​ __________.

product development

​__________ is the first stage of the product life cycle

product development Product development begins when the company finds and develops a new product idea. During product​ development, sales are​ zero, and the​ company's investment costs mount.

Wholesalers add customer value through the​ __________ they offer.

products and services Wholesalers add customer value through the products and services they offer. They are often under great pressure to carry a full line and stock enough for immediate delivery.

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 In using psychological pricing​, sellers consider the psychology of​ prices, not simply the economics. For​ example, consumers usually perceive​ higher-priced products as having higher quality. Even small differences in price can signal product differences.

Under​ __________, the market consists of many buyers and sellers trading in a uniform commodity.

pure competition. Under pure​ competition, the market consists of many buyers and sellers trading in a uniform​ commodity, such as​ wheat, copper, or financial securities. No single buyer or seller has much effect on the going market price.

Techniques that can be used by sellers for avoiding​ customers' perception of price gouging includes all of the following except​ __________.

rationing products to customers

In​ __________pricing, 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 In segmented​ pricing, 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 takes several forms. For​ example, museums, movie​ theaters, and retail stores may charge lower prices for students and senior citizens.

__________ and​ __________ are core PR strengths and that plays well into the use of​ online, mobile, and social media.

storytelling;engagement The web and social media are important PR channels.​ Websites, blogs, and social media such as​ YouTube, Facebook,​ Instagram, Snapchat,​ Pinterest, and Twitter are providing new ways to reach and engage people.​ However, storytelling and engagement are core PR strengths and that plays well into the use of​ online, mobile, and social media.

If the product passes both the concept test and the product​ test, the next step is​ __________.

test marketing If the product passes both the concept test and the product​ test, the next step is test marketing​, the stage at which the product and its proposed marketing program are tested in a realistic market setting

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 Although public relations have the power to engage consumers and make a brand part of their lives and conversations it can have a strong impact at a much lower cost than advertising can. Interesting brand​ stories, events,​ videos, or other content can be picked up by different media or shared virally by​ consumers, giving it the same or even greater impact than advertising that would cost millions of dollars.

One of the disadvantages of product and service standardization for international market is​ __________.

varying worldwide market Markets and consumers around the world differ widely. Companies must usually respond to these differences by adapting their product offerings.

A​ fast-food restaurant determines the cost of producing its chicken nuggets then adds a percentage to that cost to determine the price charged to consumers. This indicates that the restaurant is utilizing which of the following pricing​ strategies?

​Cost-plus pricing

In the​ 1990s, which distribution channel did Progressive​ add?

​Online, direct channel

Techniques that can be used by sellers for avoiding​ customers' perception of price gouging includes all of the following except​ __________.

​low-price fighter items The company might launch a​ low-price "fighter ​brand"long dashadding a​ lower-price item to the line or creating a separate​ lower-price brand. This is necessary if the particular market segment being lost is price sensitive and will not respond to arguments of higher quality.