MAR 3023 FINAL EXAM

Share of mind means:

Asking a respondent what is the first brand they think of for a product/service category

Un-Aided recall of an ad means:

Asking the respondent what ads they remember seeing last week

Time Utility is defined as:

Availability of goods and services when consumer wants them

Shopping products/goods have which of the following characteristics?

Higher gross margins than convenience goods

Which of the following types of marketing involves marketers sending out letters, brochures, samples, and DVDs to consumers' address?

direct-mail marketing

The adverse marketing effects caused by Heterogeneity/Variability can be most affectively reduced by:

employee training and the standardization of processes

The group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware is the:

evoked set or consideration set

Which of the following is not a method of "impression management"?

extraordination

A premium promotion refers to:

giving a free gift with purchase

Which of the following is a deception or fraud concern for Internet users and marketers?

phishing, malware, cyber spying and spyware

Creating an advertising campaign requires an understanding of the target market your campaign will try to reach. It is also important to consider how different media options can help your campaign meet its goals. Since resources are always limited, you have to decide which media options should be prioritized and which are relatively less important. Imagine that you are a media planner a new fast food restaurant opening on FIU MMC's campus called Rody's Diet Gourmet. The primary target market for Rody's Diet Gourmet are people who are worried about their weight and are also willing to pay 50% more for healthy, good tasting, low calorie meals. You must create a three-month, multi-media campaign that will deliver both high frequency and reach for Rody's Diet Gourmet's target markets. Which medium is probably the most effective, but probably not cost efficient for promoting Rody's Diet Gourmet?

A TV advertisement aired during The Walking Dead featuring Selena Gomez.

What is a dealer sales contest (part of sales promotions)?

A contest designed and financed by a manufacture or distributor to motive their retailer's sales force to sell a specific group of products or a single product - provides a financial reward or prize to the winning salespeople.

What is one of the best ways to avoid the appearance of insincerity when using flattery?

Ask a question about the attribute/item you are complementing?

Creating an advertising campaign requires an understanding of the target market your campaign will try to reach. It is also important to consider how different media options can help your campaign meet its goals. Since resources are always limited, you have to decide which media options should be prioritized and which are relatively less important. Imagine that you are a media planner a new fast food restaurant opening on FIU MMC's campus called Rody's Diet Gourmet. The primary target market for Rody's Diet Gourmet are people who are worried about their weight and are also willing to pay 50% more for healthy, good tasting, low calorie meals. You must create a three-month, multi-media campaign that will deliver both high frequency and reach for Rody's Diet Gourmet's target markets. Which medium is the cheapest, but probably not effective for promoting Rody's Diet Gourmet?

A new website called www.thinrody.com that promotes healthy eating and provides lots of nutritional information about what to eat and the calorie count for all of Rody's Diet Gourmet dishes.

A stratified random sample is:

A probability sample constructed to represent randomly selected sub-samples of different groups within the total sample.

A generic brand is?

A product with no brand name. Only the product's description is listed.

________ and ________ do not take title to goods, and they perform only a few channel functions.

Brokers; agents

Which of the following is not a Pioneering Advantages of new product development?

Buyer Education

You work for a marketing agency advising a client considering whether to drop prices during an economic downturn. The client, a manufacturer of children's outdoor swing sets, believes that reducing prices would lead to more sales. The client is aware that lower prices would yield less revenue per sale. However, the client is unaware of any other possible negative consequences of dropping prices. How could the firm continuously sell the swing sets at different prices to different consumers?

By creating a second lower priced brand distributed by a new channel

What is the difference between Two-Part and Captive Market pricing?

Captive Market pricing uses higher prices for additional optional products and service after an initial purchase (Disneyland food), while Two-Part pricing uses higher prices for products after an initial discounted purchase for semi-required additional purchases (HP printer-HP Ink or Xbox console-Xbox games).

Who uses more coercion?

Channel members with low power

Comparative ads:

Compare the strengths and weaknesses of two or more brands

What are buyer-switching costs?

Costs incurred when a buyer purchases one product, which cannot be transferred to a competitive product's use at a later point in time

What does it mean to harvest a product?

Cut advertising to zero but keep producing and selling the product.

________ is the product life cycle (PLC) period when sales fall off and profits drop.

Decline

What is Joint Demand?

Demand for two different products that when combined make the product useful and are not useful without each other

Markdown % =

Dollar Amount of Markdown / Original Price

What does the media department do in an ad agency?

Evaluates which TV shows, or radio shows, or magazines, etc. provide the most desirable reach and frequency for the least amount of money

The appropriate steps to take, in the correct order, when handling a disagreement or objection are:

Feedback => Question => (possibly acknowledge and/or apologize) => Answer => Confirm

What are the four recommended steps to handling an "Objection" (i.e., when a customer/[prospect says no to a salesperson)?

Feedback, question, answer, confirm

A brand extension is:

Giving new products the same name as old products.

What is the difference between image and premium pricing?

Image pricing higher prices for products with no product differentiation other than the branding and packaging (wine), while premium pricing uses higher prices for products that are superior with performance and/or design (Lexus - Toyota).

What is Derived Demand?

Industrial demand that is created by consumer demand

A story board that is used when developing an advertisement for TV:

Is a written script for the ad, Depicts a sequence of major scenes with pictures/drawing and captions and Is a detailed planning tool

What is the major reason a distribution channel exist?

It is more efficient than the manufacture selling directly to the consumer because it reduces the number of transactions

You are a salesperson for Microsoft. Bill Gates has resumed control of Microsoft and quickly bundled Windows with Microsoft Office as a single software package. Tomorrow you are meeting with Michael Dell in an attempt to get his agreement to include the Windows/Microsoft Office bundled software on all future Dell computers. Your boss, Bill Gates, is very excited and expects this agreement with Dell to increase Microsoft's total revenues by 25%. Failure is not an option! If Michael Dell doubts the bundle software's ability to increase his profits and market share (scepticism), then what should you do?

Listen to his concerns, rephrase and/or acknowledge his concern, ask additional questions about his concern, provide a proof source to alleviate his concerns (e.g., statistical computations clearly delineating the costs savings to Dell, market share increases that have resulted from lower price points for computers in the past, and show how the bundled prices statistically increases his profit margin), and then ask if you have alleviated his concerns.

Which if the following is considered a scare resource in new product development?

Location in geographic space; Consumers' perceptual space; & Shelf space

You work for a marketing agency advising a client considering whether to drop prices during an economic downturn. The client, a manufacturer of children's outdoor swing sets, believes that reducing prices would lead to more sales. The client is aware that lower prices would yield less revenue per sale. However, the client is unaware of any other possible negative consequences of dropping prices. What is the most typical negative psychological result that happens when a brand's price is lowered?

Lowering the price will result in some consumers perceiving the swing sets to be of lower quality.

The wheel of retailing is based on the concept that:

New retailers will continuously immerge with more efficient retailing methods and thus replace older retailers

________ are communities over the Internet where people congregate, socialize, and exchange views and information.

Online social networks

Creating an advertising campaign requires an understanding of the target market your campaign will try to reach. It is also important to consider how different media options can help your campaign meet its goals. Since resources are always limited, you have to decide which media options should be prioritized and which are relatively less important. Imagine that you are a media planner a new fast food restaurant opening on FIU MMC's campus called Rody's Diet Gourmet. The primary target market for Rody's Diet Gourmet are people who are worried about their weight and are also willing to pay 50% more for healthy, good tasting, low calorie meals. You must create a three-month, multi-media campaign that will deliver both high frequency and reach for Rody's Diet Gourmet's target markets. Recommend the advertising medium that is both effective and cost-efficient in reaching the target market Rody's Diet Gourmet.

Outdoor billboards on FIU's MMC campus (assuming FIU will allow it) featuring physically fit FIU students/staff

You work for a marketing agency advising a client considering whether to drop prices during an economic downturn. The client, a manufacturer of children's outdoor swing sets, believes that reducing prices would lead to more sales. The client is aware that lower prices would yield less revenue per sale. However, the client is unaware of any other possible negative consequences of dropping prices. What pricing strategy would allow you to charge the original price to some customers and lower prices to price sensitive buyers?

Periodic Discount Pricing

You are a salesperson for Microsoft. Bill Gates has resumed control of Microsoft and quickly bundled Windows with Microsoft Office as a single software package. Tomorrow you are meeting with Michael Dell in an attempt to get his agreement to include the Windows/Microsoft Office bundled software on all future Dell computers. Your boss, Bill Gates, is very excited and expects this agreement with Dell to increase Microsoft's total revenues by 25%. Failure is not an option! What type of promotional strategy is Bill using to persuade Dell to accepting the bundled software package?

Personal Selling

What is the difference between Price Signaling and Premium Pricing?

Price Signaling pricing higher prices for products with no product differentiation other than the branding and packaging (wine), while premium pricing uses higher prices for products that are superior with performance and/or design (Lexus - Toyota).

Services can best be described as processes rather than outcomes. Which of the following is a technique for graphically describing the service process?

Process Blueprinting

You are a salesperson for Microsoft. Bill Gates has resumed control of Microsoft and quickly bundled Windows with Microsoft Office as a single software package. Tomorrow you are meeting with Michael Dell in an attempt to get his agreement to include the Windows/Microsoft Office bundled software on all future Dell computers. Your boss, Bill Gates, is very excited and expects this agreement with Dell to increase Microsoft's total revenues by 25%. Failure is not an option! Bill Gates' Price Bundling strategy fits into what type of firm objective?

Product Line Balancing

Competitive ads:

Provide the benefits of one brand only

If you want to exploit consumer who are unwilling to incur search costs and you want to reward consumers willing to incur search costs, then what type of pricing strategy should you use?

Random discounting

If you want to exploit consumers who are unwilling to incur search costs and you want to reward consumers willing to incur search costs, then what type of pricing strategy should you use?

Random discounting

To counteract perishability issues with services businesses should?

Require reservations and charge for missed appointments; Use differential pricing such as off-peak-pricing; and Use part-time employees

Brand licensing is:

Selling a brand name to another firm so that firm can use the name on their product / products.

Professional Pricing means:

Selling a high but round number to signal quality, such as $300/hr.

Geographic pricing strategies in marketing refers to:

Selling at higher prices due a lack of competitors based on location restrictions

Skim Pricing means:

Selling at higher prices when the product is new and then slowly lowering the price over time

Price Bundling refers to:

Selling two or more products together, in the hopes that the more popular product will help sell the less popular products

Promotion includes:

Selling, sales promotions, publicity, and advertising

A Recognition post-test means:

Showing the ad to the respondent and asking them if they remember seeing it

Which of the following is considered a free rider advantage?

Technology; Buyer education; Employee Training; & Infrastructure Development

What is a Jobber in the distribution channel?

The jobber is a specialized distributor that performs special tasks/jobs and/or services that the channels traditional wholesalers avoid

In advertising, what is reach?

The number of people who see an ad.

Power in distribution channels is determined by:

The percentage of your business the supplier or customer represents and the percentage of their business you represent; Your ease of replacing the other channel member (what are your alternatives); Their ease of replacing you (what are their alternatives); and The asset specific investments by you and the asset specific investments by them

The calculation of Brand Equity is primarily based on:

The premium price consumer's will pay for a branded product as compared to the price they would pay for a generic product.

The Cross-Elasticity Coefficient (also known as cross-price elasticity) means or indicates that:

The ratio of the change in quantity demanded of product A to a price change in product B

A line family brand is:

The same name for all products the company produces within a product line.

What is "lead time" in the order cycle process?

The time is takes for an order arrive after the order is placed

How does a pre-test potentially bias a respondent in an advertising simulation/test?

When a respondent is questioned about a product or service their senses are enhanced regarding future exposure (perhaps for an hour or more) and if the ad is presented immediately following the pre-test, then bias is likely to result.

You are a salesperson for Microsoft. Bill Gates has resumed control of Microsoft and quickly bundled Windows with Microsoft Office as a single software package. Tomorrow you are meeting with Michael Dell in an attempt to get his agreement to include the Windows/Microsoft Office bundled software on all future Dell computers. Your boss, Bill Gates, is very excited and expects this agreement with Dell to increase Microsoft's total revenues by 25%. Failure is not an option! Bill Gates instructs you to first mirror Michael Dell when you meet him and then later lead Michael Dell. What must you do?

You must first use the same rate, tonality and volume of speech as well as similar body language as Michel Dell. Once he is comfortable with you, increase your rate of speech, volume, and use a gestures.

When a prospect exhibits skepticism, the salesperson should solve this objection with:

a proof source

the ingratiating strategy referred to as "opinion conformity" refers to:

agreeing with the prospect regarding tastes and preferences in order to build similarity, trust and to establish that both parties individual preferences are similar.

The adverse marketing effects caused by Intangibility can be most affectively reduced by:

ambiance enhancement, nice brochures, and/or new equipment

"Profiling" refers to:

an attempt to identify the distinguishing characteristics of a group

Home Depot and PetSmart are examples of ________.

category killers

Travelurcity.com is a Web site that lets users search for the best vacation deals. Once decided, the user then books the air tickets for the place he or she has chosen. Travelurcity.com has a flight-ticket schedule and guide that is maintained by Flamingo Airways' Web site where users are redirected for booking air tickets. Which of the following best describes Flamingo Airways' promotion strategy?

content sponsorship

What is the name given to the text or the verbal part of an advertisement?

copy

When Procter & Gamble (P&G) developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser?

informative advertising

The fact that services are used or consumed at the time of their creation is an example of the service characteristic of:

inseparability

What is experience curve pricing?

introducing a product at a price below cost in the hopes of long-term profits.

Beside cost, what is the main advantage of using publicity in the promotional mix?

it is perceived as being objective or having more credibility

If a retailer prices coffee at cost to draw customers into the store, and makes no profit on that coffee, then the product is being used as:

loss leader

The decisions about reach, frequency, and impact of an advertisement fall into the category of ________ decisions.

media

High brand equity provides a number of competitive advantages, including:

more trade leverage in bargaining with distributors and retailers; the ability to charge a higher price than competitors; the ease with which new products can be launched; some defense against price competition

Coca-Cola cups prominently featured on episodes of American Idol are an example of ________.

product placement

Which of the following is a step in the selling process?

qualification; closing; objection handling; and probing

Changing a product's image in consumers' minds is called:

repositioning

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentines Day is an example of a ________.

seasonal discount

Arlene saw a supermarket ad featuring a pilgrim salt and pepper set. Although the ad was for Publix, Arlene thought the ad was for her favorite supermarket, Whole Foods. This is an example of:

selective distortion

Which of the following means that consumers do not remember all the information they see, read, or hear even minutes after exposure to it?

selective retention

Audience quality, audience engagement, and editorial quality are most likely to be considered when a media planner ________.

selects a media vehicle

Push in distribution means to:

stimulate sales by working with channel members very closely (getting channel members to support your product)

In advertising, what is frequency?

the number of times someone sees an ad.

Price impacts the rest of the marketing mix in many ways, which of the following does price impact?

the type of customer and competition the organization will attract; perceptions of quality; and perceptions of prestige

When a salesperson uses a supplification strategy he/she attempts to:

to make people feel sorry for them and therefore buy from them.

In order to solve an objection known as a "misunderstanding" you need:

to question the objection and then clarify the misunderstanding

In order to solve an objection known as "indifference" you need:

to question their indifference and develop new needs

Inseparability can be most affectively reduced by:

using electronic means of service delivery

The adverse marketing effects caused by Inseparability can be most affectively reduced by:

using electronic means of service delivery