marketing 3250 final

as reach blank frequency blanks

increases, decreases

An appliance company that sells elaborate home kitchen items is preparing to roll out a new oven that has four separate compartments, each capable of cooking in one of six unique ways, and a stovetop that has 8 separate burners with various types of cooktops to place over the burners. The entire unit is unlike any type of home cooking appliance currently on the market, and retails at a starting price of $6500. Which type of advertising will be BEST for the appliance company to use for this item?

infomercial

Which form of advertising is designed to build the general reputation of the organization and create goodwill toward the company and its brands?

institutional advertising

Wilson sells its famous green tennis balls in almost all major sports retailers as well as Target, Walmart, and Costco. Wilson engages in __________ distribution of its product.

intensive

When producers utilize____________, they place their brands in as many, but not all, outlets as possible.

intensive distribution

One of the MOST valuable aspects of a supply chain that includes a retailer marketing intermediary is that

it minimizes the number of contacts needed for a product to get from producer to consumer

which mobile marketing tool is most impacted by concerns over user safety and privacy?

location-based capabilities

In a breakeven analysis, when the total cost curve intersects the total revenue curve, profits will be zero. What is also TRUE at the point of intersection?

losses will be at their maximum level

Which is the MOST likely outcome attributed to conflict between supply chain's members?

lost opportunities and increased costs

Which is the percentage of the total sales in a product category going to a particular brand?

market share

Which measure of marketing effectiveness indicates the percentage of a brand's sales relative to the total sales of all brands in a particular product category?

market share

are very large retail stores that specialize in selling large volumes of merchandise at low prices.

mass merchandisers

In a situation with relatively elastic demand, marketing managers sometimes reduce price as an effective competitive tool. What is the potential downside of this approach?

may negatively impact brand image

Maximizing exposure of the advertising message to the target audience while minimizing waste coverage is the definition of

media strategy

allowance is when free products are given to a retailer, whereas a(n) allowance provides discounts or incentives to retailers.

merchandise, buying

Because of the way that consumers are increasingly accessing digital media, it is important for company websites to be accessible in a blank format

mobile

Effective promotion should include which of the following?

multiple communication channels

Which form of promotion involves direct, two-way communication?

personal selling

Which are considered to be traditional personalized promotional tools?

personal selling and direct marketing

is a two-way interactions, whereas is a one-way communication.

personal selling, advertising

The Kool-Aid Man is one of the most well-known examples of __________ advertising.

personality/symbol

Ninety percent of retail sales take place through

physical stores.

A company called ZeroTek is preparing to launch a groundbreaking new product that is unlike any other product on the market. Which type of advertising is ZeroTek MOST likely to roll out first?

pioneering

A large retailer (Company B) has marked down its 52" LCD televisions to $99, its 42" LCD televisions to $79, and its 32" LCD televisions to $50. After about 6 months of this pricing structure, two out of three of Company B's competitors—all smaller independent electronics stores—have gone out of business, and the third is struggling to keep its doors open. The third store finally closes, and Company B marks all of its LCD televisions up 500%. Which BEST describes what Company B has done?

predatory pricing

Dewanna is the Chief Marketing Officer for a mid-sized leather shoe and accessory company in the U.S. As a way to bolster online sales in August, she suggests the company run a Back-to-School BOGO (buy one, get one) promotion on their boots and sneakers. Which method of price adjustment is this?

price bundling

Which shows the ratio of the percentage change in quantity to the percentage change in price?

price elasticity

What is the primary intent of performing a breakeven analysis?

provide a rough idea of the level below which prices cannot fall

Which strategy ends up with more products on retailer's shelves?

push strategy

Which strategy is less aggressive to retailers?

push strategy

A consumer's expectation about the price of a given product is known as a(n)

reference price

Miller goes to McDonalds and sees a new menu item: a specialty cheeseburger that costs $32. He later goes to an upscale steakhouse and sees a specialty cheeseburger that costs $2.15. Which concept BEST accounts for Miller's confusion?

reference prices

Which indicates returns attributable directly to marketing investment?

return on investment

Dionne has been running a small restaurant in a busy part of the city for over 30 years. In the past 5 years, there has been a decline in profit and over the past 2 years, she's heard that customers are posting unfavorable reviews of their dining experiences on Yelp. She is dismissive of these reviews saying that people just like to be negative. Someone well versed in marketing would MOST likely tell Dionne that

she should take the reviews into account to see if there's any way she can fix the areas that customers are criticizing, after all, online reviews are the new equivalent to word of mouth.

Lennon works at a small insurance brokerage and spends much of her time finding and attempting to make connections with new clients. She has found she has the most success getting referrals from existing clients by asking if they have any friends or family who might be interested in talking to her about purchasing insurance. Which sales technique is this?

snowballing

what are specific sites or applications accesses by users?

social media

Unique visitors are more important to a marketing manager than total visitors because

some people visit the site multiple times

Which of the following is NOT a metric used to assess the logistical performance of distribution channels?

stock retainer rate

Which measures the number of times the inventory for a product is completely replenished in a given period?

stockturn rate

Which of the following metrics is NOT expressed in percentage terms?

stockturn rate

from where do tactical objectives flow?

strategic objectives

The total series of companies, exchanges, and transactions that produce goods and make them physically and commercially available to consumers is the

supply chain

Which are the short-term, narrow, operational decisions and actions that are used as part of larger marketing strategies?

tactics

Finding the gross ratings points depend on all of the following EXCEPT

the size of the target market.

one of the main ways that social media is evolving is

the trend towards building instant messaging and chat functions into platforms

To make meaningful comparisons using a brand development index, managers need

three or more distinct target markets

Which is NOT a primary tool of consumer sales promotion?

training programs

Brian took a job at a wholesaler, thinking only of the way wholesalers make products available to retailers. What he will realize when he starts working is that there is a flow moving in the opposite direction of money and valuable information, such as complaints.

true

Consumers are familiar with the Manufacturer's Suggested Retail Price (MSRP), but it might be illegal to sell products at that price.

true

Customer perceptions are more important than reality in setting prices.

true

Elastic demand characterizes discretionary items where a small change in the price of the items will have a noticeable effect on the number sold.

true

Jim's firm had worked for several years to get producers, retailed and wholesalers working together. This system, which proved beneficial to all, is known as a vertical marketing system.

true

One of the major problems marketers face with pricing is that although there are many "wrong" prices, there isn't one "right" price.

true

While consumers gain from artificially low prices in predatory pricing and price wars, they are harmed by the illegal practice of price-fixing.

true

While marketers must pay attention to the prices charged by competitors and the expectations of customers, the effective way to attract customers at fair prices is to emphasis benefits and non-price elements.

true

While some stores urge you to "eliminate the middleman" in transactions, significant value can be lost when manufacturers move to more direct marketing channels.

true

The process of transitioning from customer objections to closing the sale often involves

using trial closes

Which is the BEST example of producer that uses a push strategy in its retailing?

walmart

Which is an example of what is meant by the term "co-creation of value"?

yelp reviews

So Soxy is a sock manufacturer that creates socks and pantyhose out of raw silk, satin, and lace. What is the unit contribution of a pair of their bestselling lace pantyhose if they sell for $45 a pair and have a unit variable cost of $18 per pair?

$27

As a marketing professional, which of the following are LEAST effective when working with brand communities? Select all that apply.

- attempting to control or over-govern brand communities - allowing communities to moderate and govern themselves without brand interference

If a local clothing boutique is looking to expand their reach to customers by showcasing products that are available for purchase, which social media platforms or applications would be MOST helpful? Select all that apply.

- snapchat - facebook -instagram

Which is NOT a guideline for effective direct marketing? Select all that apply

-Ambiguous response methods are most effective; if a client is unsure how to respond, they are more likely to instigate contact with the company. -Creativity is more important than the offer or the information about the offer.

which is true regarding online retail?

-Consumers who read reviews on smartphones are more likely to buy than those who read reviews on desktop computers -Over half of adults under the age of 35 trust online reviews more than the opinions of friends and family. -Almost 9 in 10 online shoppers say reviews influence their purchase decision.

Which is TRUE of public relations? Select all that apply.

-Public relations is the management function of an organization that addresses the way the organization interacts with the public. -Public relations is one aspect of marketing that is utilized only in times of organizational crisis. - Public relations involves the execution of communications to earn the public's understanding and acceptance.

what is true regarding digital culture?

-consumers are growing comfortable with personalized messaging -digital media is valuable to both consumer and brand -consumer digital culture is consumer-centered

Which is an example of a consumer sales promotion? Select all that apply.

-coupons -sampling -sweepstakes

Joe lives in New York and goes on vacation to San Diego, California, a place he has never visited before. While he's on vacation, he starts to notice that the banner ads that appear in his third-party text messaging app seem to be exclusively for restaurants and attractions in San Diego. Several of the ads catch his eye and by the end of his trip, he realizes that almost half of the restaurants he visited while on vacation were places he "discovered" because of the banner ads. What can be said about this scenario? Select all that apply.

-joe benefited from a location based capabilities built into his messaging approach - the mobile display ads that joe saw were affective

metrics are used to state promotional objectives. Select all that apply.

-psychological - behavioral

Although marketers must pay attention to the prices charged by competitors and the expectations of customers, what is the BEST way for a company to attract customers to their fair prices?

-showcasing non-price elements - emphasizing product benefits

In terms of search engine optimization, which is an effective and common approach? Select all that apply.

-using unique page names -using images with descriptions and alt text -planning for frequent site promotions

Devon's company presses vinyl records. Each record sells for $25. How many units will have the company break even if there are $15,000 in fixed costs and variable costs of $10 per unit?

1000

A new gaming PC with 27" monitor costs $2500. The unit variable cost associated with the PC is $500. What is the markup for this PC?

400%

Sebastian is acknowledged as an important glass artist. He is his own salesperson but uses his workshop as his storefront. He is planning to open his own gift shop so that his works can be displayed on shelves and display cases—while customers still get the personal attention of the artist. What is a major drawback to setting up his own shop?

A shop would require a significant financial investment and require constant attention.

Which is TRUE regarding the role of supply chains?

A supply chain exists to physically move materials and merchandise from supplier to producer to consumer.

Which condition must be met in order for an exchange to take place?

Both the buyer and the seller must see value in the exchange.

Which is TRUE of digital marketing?

Brands no longer control the ways that customers connect with them and with other consumers.

Which is used to compare media costs?

CPM

Christophe has just gotten a new job as a Junior Marketing Associate for a home security company. He had hoped he would be able to exercise his creativity and knack for sales by delivering pitches that he thought to be appropriate and effective for a particular situation or client, but was disappointed to learn that instead, he would be cold calling prospective clients and trying to sell them home security services by reading a prepared script. Which is TRUE of this situation?

Christophe had hoped to use adaptive selling techniques, but instead was required to deliver canned sales presentations.

Which fact related to Company A's new mobile device MOST likely indicates that a skimming strategy will not be the best choice when determining its pricing?

Company Z's competing mobile device will be released about 2 weeks after Company A's is released.

Comparative advertising focuses on which approach?

Comparing your product to that of your competition

What is TRUE regarding the overall success of auctions?

Customers have different perceived values of products.

Which BEST describes the way that manufacturers' promotions work?

Demand is increased, which can then be translated into price savings, which retailers can pass along to customers.

Public relations encompasses which of the following?

Determining stakeholder attitudes and fostering understanding between stakeholders and the organization Continuous and ongoing crisis management The organization's general life as a citizen of the communities in which it operates

Which is one of the MOST challenging pricing decisions that a marketer will face?

Establishing a price for new products without having any market experience from which to refer

Positioning influences the way customers see value in a product or service, and while the price is of major concern to the marketer, price has much less influence than effective positioning for the customer.

FALSE

Hand-Notted Rugs manufactures faux Persian rugs that look just like real hand-knotted carpets. Hand-Notted Rugs doesn't use retail outlets or online sales to sell its products. Instead, it works with a wholesaler that distributes to large retailers. Which statement is MOST accurate regarding Hand-Notted Rugs distribution strategy?

Hand-Notted uses an exclusive distribution strategy to create a bigger demand for its products.

which is not involved in the co-creation of value

Identification of basic needs and communication of information that will influence what the consumer wants to satisfy those basic needs

has significantly contributed to the complexity of promotion function.

Integrating digital communication with more traditional channels

The risk of using a competitive response for promotional budget-setting is that

It bases important budgetary decisions upon actions of competitors rather than on internally defined objectives.

which is true regarding omnichannel marketing?

It integrates various communication channels to accommodate consumer interests and desires

What can be said about evaluating outdoor advertising based on "cost per mile"?

It is inexpensive but probably less effective in delivering creative impact

Which is TRUE of the focus of promotional activities?

It should include anyone with whom the company wants to exchange

Lorna's Old-Fashioned Bakery is a large manufacturer of baked goods. Lorna's products are sold in major grocery stores nationwide. The bakery has been in business for 65 years. Over this time, Lorna's interactions with its supply chain has evolved from mostly price-focused transactions to a more flexible system, which focuses on trust, cooperation, and customer satisfaction. What can be said about this evolution?

Lorna's has transitioned to focusing on relationship marketing over time.

What is a key benefit of receiving sales data in near real time?

Managers can use metrics reserved for strategic planning to make tactical decisions.

Why are page views of greater interest to marketing managers than hits?

Many hits come from automated searches. Not all hits are from current or potential customers. page views represent people who go to a website and view at least some of the information.

In terms of supply chains, what is the BEST description of marketing intermediaries?

Marketing intermediaries are the wholesalers and retailers within a supply chain.

Why is it dangerous to evaluate media solely based on "cost per mile"?

Media outlets differ vastly in their abilities to communicate information.

How do marketers view frequent stockouts?

Negatively, as stockouts represent lost sales and poor supply-chain efficiency.

John is trying to figure out what to charge customers in the landscaping business he is starting. He knows what the labor costs are, and how to include the materials (plants, mulch, etc.) that he will use in the price. He thought he could add these two together, add an amount for profit and general expenses, and he'd have a fair price. Is he right?

No. He needs to calculate any other expenses and add those into the price.

which is true of qualitative research as it relates to online reviews?

Standard analytic techniques are applicable to much of what is written in online reviews and can be helpful to brands.

Why is it necessary that data relating to tactical outcomes be readily available to managers?

Tactical outcomes typically have short time horizons.

A mobile phone accessory manufacturer has relationships with many retail stores. These outlets are affiliated with both large, national companies and smaller, independent outlets. While the company offers promotional assistance and incentives to the large retail outlets, it rarely works that way with the smaller ones. In fact, much of the interactions between the company and the small retail outlets seem to be difficult, using threats of cancelled inventory deliveries and, in some cases, very large and infrequent inventory delivery. Which statement is TRUE of the power relationship between the phone accessory manufacturer and its retailers?

The manufacturer exercises coercive power over the small stores and reward power over the large retailers.

A junior marketing associate who is working to run the social media for a small brand believes that he is doing something incorrectly. Which of the following is MOST likely to cause ineffective social media marketing?

The messaging on the brand's Instagram, Twitter, and Facebook accounts are all written in the same voice, but offer different promotions and consumer information on the brand's products.

Generally speaking, which is TRUE in regards to the product life cycle curve and pricing?

The price will go down, along with costs of making the product, the further along the product is in its maturation.

Which is common for all marketing objectives?

They specify how marketing managers want the future to look in some way.

Marci has started a small bakery that she is running from a rented kitchen space. She decides that the best way to structure pricing for her baked goods is to figure out how much she needs to make to cover the cost of her kitchen rental and a 10% profit for herself. She thinks that figuring out this figure will be a good way to arrive at a fair cost to charge her customers for baked goods. If you were Marci's business partner, what is your BEST response regarding this plan?

This pricing plan will not be effective because there are other expenses that have not been accounted for, including labor and materials/supplies.

Which of the following is NOT one of the potential sources of conflict in supply chains?

Which sales associates will oversee reordering and stocking issues

An example of an integrated marketing communications strategy is

a political candidate who sends out mailers, has internet and radio advertisements, and holds meet and greet events

Which is the BEST explanation for why the pull strategy is more expensive?

advertising expenses

is NOT one of the four primary factors that influence price

analyst expectations

How should social and digital tools and technology should be considered in your overall marketing mix?

as related, distinct elements

A furniture retailer advertises leather loveseats for $350 as part of its Black Friday promotions. Cory and Evan are excited to furnish their new home, so they go to the store in hopes of buying one of the leather loveseats. When they get there, they tell the salesperson that they want to look at the leather loveseats that are on sale, and the salesperson shows them the leather living room sets that contain a loveseat, a sectional sofa, and an armchair. Cory and Evan tell the salesperson that they are only looking for a loveseat and do not have room for all pieces of the furniture. Eventually the salesperson tells Cory and Evan that it is not possible to buy a loveseat alone, that loveseats are only available with the whole living room set. Which pricing practice does this MOST closely resemble?

bait and switch

For an exchange to take place, a marketer knows that

both the buyer and seller see value being created in the exchange.

Which metric compares a brand's performance in a target group to brand performance among all target groups?

brand development index

Which metric for product-related tactical success is NOT measured in percentage terms?

brand development index

Which metric for product-related tactical success does NOT relate directly to the target market?

brand growth rate

Which gives the percentage of a particular target group that purchases a brand for the first time?

brand trial rate

Which indicates the number of units that must be sold at a specified price to just cover costs?

breakeven quantity

A carefully scripted and practiced sales presentation describes which approach?

canned sales presentation

Which measures how well-exposed a brand is within retail stores?

category shelf facings

What is TRUE regarding communication and benefit delivery in digital marketing?

communication and benefit delivery have significant overlap within digital marketing.

which is the most central tool used in digital marketing?

company/brand websites

If Apple launches a suite of television commercials that directly points out the differences between the iPhone X and the Samsung Galaxy 10, which type of advertising would that be considered?

comparative

Marketers not only must balance the revenue and cost perspectives of pricing, they must also balance the

competitive and consumer dimensions

Consistency between strategic and tactical objectives important because

consistency assures that tactics do not work against strategies.

Adding incentives or inducements for consumers to buy products sooner, rather than later, describes

consumer sales promotions

Chick-fil-A is a chain of fast food restaurants that specializes in chicken sandwiches. It is a well-known example of a franchise opportunity. What type of relationship does Chick-fil-A have within its supply chain?

contractual vertical marketing system

In a(n) __________ vertical marketing system, the manufacturer exerts the MOST control.

corporate

In which sort of vertical marketing system does a manufacturer exert the most control?

corporate VMS

pricing is advantageous in two ways: (1) when accurately assessed it covers variable costs, and (2) it is generally viewed by customers as being fair.

cost based (both)

Auctions are successful because

customers have different perceived value for products.

Which is NOT a likely source of conflict within supply chains?

deciding who is responsible for recording products and materials

Which execution style is MOST likely to be used in an infomercial for an organic all-purpose cleaning solution?

demonstration

Elan Emagines creates and sells unique handcrafted children's toys made of sustainable, ethically-sourced materials. After developing a new 3D puzzle, the marketing team is working on price setting. The team has decided that their goal is to sell 150 units in 3 months. They have also determined that the average number of units sold by their competitors in a similar product category is around 5,000 units per year, and Elan Emagines can expect to get about 15-20% of those sales. What is the next step in the price setting process for the marketing team?

determine cost, volume, and profit relationships

are the techniques through which marketers use digital media to build to connections between brands and customers

digital media tools

For over a decade, Ron's company used a very traditional retail model for its products, that is, working with wholesalers to distribute to retailers. A new chief marketing officer (CMO) has been hired in an effort to help revive stagnant sales. The first thing the CMO discusses with her team is cutting the wholesaler out of the equation and revamping the company's website to sell product to consumers. The CMO is recommending a(n)

direct retail supply chain

The level of availability for the product or service is referred to as

distribution intensity

Marlo travels a lot for both work and recreation. Over time, she has learned that there are a few places in the continental United States wherein the cost for an airline ticket is almost always cheaper about 3 days out from departure than it is 3 weeks or even 3 months out from departure. Conversely, there are several destinations that she has learned will continually increase in cost the closer to departure date she gets. Which concept BEST relates to what Marlo has observed?

dynamic pricing

demand characterizes discretionary items wherein a small change in the price of the items with noticeably affect the number of items sold.

elastic

A significant disadvantage of cost-based pricing is that it is difficult to get accurate information about what customers would consider the true price.

false

If a store advertises it has "wholesale prices," it cannot sell to the final consumers of a product.

false

It is not unusual to see price mark-downs such as 50% off. A company does not to establish that products were sold at price as long as it can show it had been offered at that price for a reasonable period of time.

false

The total set of companies, exchanges, and transactions that produce goods and make them physically and commercially available to consumers is the definition of "place" in the marketing mix.

false

Retailer ______________ is the ability of a retailer to attract consumers in a producer's target market or markets.

fit

Which measures schedule intensity and is the product of reach and average frequency?

gross ratings points

This model postulates that people must pass through cognitive and emotional states before taking an action.

hierarchy effects model

The major sources of conflict in supply chains are the differing goals, differing ideas of who should be responsible for what, and

how target markets are seen

The risk of using intuition and instinct to set a promotion budget is that

if wrong, it can be wasteful and undisciplined