Marketing 409 - Exam 3 Study Questions

What are the stages of pricing?

-Survival: Setting Prices low to meet the prices of competitors - Profit: Businesses are going to make a profit. And if they have a profit objective that will set it at a acceptable level of profit for management. -Market Share: An organization usually prices products very low in order to receive market share points. - Cash Flow: Setting prices low for a short period of time to generate cash - Product Quality Image: This usually results in a higher price. It means that you are trying to price the product at a level that is above what your competitors are using for similar products. And you are trying to make it a premium quality product with a premium price.

Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe ____________.

55.00

What is a marketing strategy?

A Marketing strategy has two components: 1) Find and analyze a target market 2) Developing an effective marketing mix

What is negotiated pricing?

Occurs when final price is establish through bargaining between the seller and the customer.

What is Reference pricing?

means pricing a product at a moderate level and physically positioning it next to a more expensive model or brand in the hope that the customer will use the higher price as a reference price (i.e., a comparison price). Because of the comparison, the customer is expected to view the moderate price more favorably than he or she would if the product were considered alone. Reference pricing is based on the "isolation effect," meaning an alternative is less attractive when viewed by itself than when compared with other alternatives.

What is secondary-market pricing?

means setting one price for the primary target market and a different price for another market. Often the price charged in the secondary market is lower. For example, if America makes medicine and sell it to Americans it will be cheaper than if that same medicine was sent to Canada and sold to Canadians.

Kroger grocery store often uses ______ pricing to encourage customers to purchase more units of a single product and take advantage of lower, per-unit prices. Thus, customers save money when purchasing multiple items of the same product at one time versus buying only one item at different points in time.

multiple - unit

What is Direct Selling?

- There are individual sells people that represent a companies products, and that individual establishes his or her own companies base. - Might be initially established in a face-to-face, once it is established it does not have to continue to be face- to - face. Ex: Avon, or Herbalife

What are the major categories of sales promotion methods?

1) Consumer sales promotion methods - Aimed at individual consumers 2) Trade Sales Promotion Methods Aiming a sales promotion method at wholesalers or retailers, and usually is at retailers, to encourage them to take on the product or market the product more aggressively if they already carry the product.

What major distribution problems are resolved through marketing channels?

1) Discrepancy in assortment: consumers want broad assortments 2) Discrepancy in number: Consumers typically don't want a large number of products. Ex: Consumers just want a reasonable amount of detergent, not a whole factory size.

What are the major objectives of physical distribution management?

1) Meeting or exceeding customer service standards 2) Minimizing total distribution costs. Cost - Trade Offs: Giving one thing to get another to minimize one total distribution costs. Ex: trading off warehouse space for faster distribution in order to minimize total distribution costs.

What are the major functions of physical distribution?

1) Order Processing 2) Inventory Management 3) Materials handling 4) Warehouse 5) Transportation

What are two very important inventory management issues?

1) When to order? 2) How much or what quantity to order?

What is cost-based pricing?

A flat dollar amount or percentage is added to the cost of the product, which means marketers calculate and apply a desired level of profit to the cost of the product and apply it uniformly.

What is a Merchandise Allowance?

A money payment. The manufacturer tells the retail store that if they do certain things related to a product they will pay the store. Ex: if a store receives a packet going towards a display. The manufactures tells the store if they leave the display up for 1 week they will pay the store an allowance.

Customers receive the benefits of form utility from an intermediary when

A retailer decides to add a monogram to a product.

What is Straight Commission?

A sales person is paid a certain percentage of the sale. As in 12% of the total price. Sales management has the least amount of control over sales people. Sales people are driven to make a sale as soon as they can. Can still get a draw from the company : which is a certain amount of money. Kind of like a bonus. - these typically are some of the best and most driven sales people.

If Seagram's marketers found that the firm's Crown Royal bourbon was a prestige product and raised its price, which of the following would most likely happen?

Above some price level, the quantity demanded would begin to decrease.

The use of sales promotion has increased dramatically over the past 30 years, primarily at the expense of

Advertising

If Betty Crocker stated, "We want our advertising to increase customer awareness of our new flavors of cake mix by 25 percent in the next six months," this would be an example of a(n)

Advertising Objective; Advertising objectives should be stated in measurable terms and provide benchmarks and a time frame. This objective provides a measurable goal (increase in customer awareness) with a benchmark (increase by 25 percent) and a time frame (in the next six months).

What are Trade Sales Promotion Efforts?

Aimed generally at retailers, to attempt a retailer to take on a product and start selling it or to market that product more aggressively.

What is premium or push money?

Also called a PM or a Spiff A manufacturer makes an arrangement with retail store management is the arrangement is that sales people will receive a certain amount of money on each unit of the product store sold in that store.

What is a sales promotion?

Any activity and/ or material that acts as a direct inducement, offering added value or incentive for the products to resellers, sales persons, or consumers.

What are Money Refunds?

Any offer that is made by a manufacturer saying if you will send us multiple use of purchase we will send you a certain amount of money back. This is designed to get you to purchase the same product several times. This is used mostly for convenience goods.

Old Country Buffet notices that when they serve 501 customers at dinner instead of 500, their total revenue increases $12. This $12 increase represents Old Country Buffet's

Average revenue: the revenue generated per unit of output sold. It plays a role in the determination of firm's profit.

Roberts Tool & Die creates metal parts for manufacturers, including the aluminum posts for head rests in many automobiles manufactured in the United States. If the company observes that marginal costs and average total costs are both $39, then

Average total costs are at its lowest level : When marginal costs and average total costs are equal, average total costs are at its lowest level.

What happens when marginal costs and average total costs are equal?

Average total costs are at its lowest level.

Which of the following collection of retailers is most likely to be found at a power shopping center?

Babies 'R' Us, T.J. Maxx, Bed Bath & Beyond, and Home Depot

What differentiates a wholesale transaction from a retail transaction?

Buyers intention for purpose.

Which of the following products will most likely use the longest distribution channel?

Canned Vegetables: Less expensive, standardized products with long shelf lives can go through longer channels with many intermediaries. Complex and expensive items (automobiles), perishable products (milk), fragile products (fine china), and products with an exclusive image (luxury handbags) are likely to have shorter distribution channels. Therefore, canned vegetables are most likely have the longest distribution channel.

Many small restaurants visit Costco to purchase supplies for their food and operating items. While Costco is a retailer, it combines retailing with _____ functions, allowing small businesses that are able to supply their own transportation the ability to pay for and take their products immediately.

Cash-and -carry wholesaler: Small business customers can use Costco much like a family, that is can use the grocery store, paying cash for products and transporting them when they leave.

A(n) ____ is a very large specialty store that competes on the basis of lower prices and enormous product availability.

Category Killer

When a supermarket allocates space for different competing products on a shelf, it is engaging in

Category Management , this is a retail strategy of managing groups of similar, often substitutable products produced by different manufactures. This includes the allocation of space for competing products on a store's shelves.

What is differential pricing?

Charging different prices to different buyers for the same quality and quantity of product. For example, many movie theaters offer discounted tickets for seniors, and airlines often charge business passengers more because they book at the last minute.

What is Price Skimming?

Charging the highest possible price for a product during the introduction stage of its life cycle. . The seller essentially "skims the cream" off the market, which helps a firm to recover the high costs of R&D more quickly. This approach provides the most flexible introductory base price.

Budweiser often gathers market research information to determine the prices that Coors, Miller, and various craft breweries such as Sam Adams are charging for their products. Budweiser then attempts to set prices at a similar level as these other companies' products. What type of method is Budweiser utilizing?

Competition - based pricing : think - in competition based pricing, they want to set prices similar to the competition.

When Bounty paper towels are advertised as being the "Quicker Picker-Upper," suggesting that it cleans more efficiently than other paper towels, Bounty is using _____ advertising.

Competitive Advertising; Competitive Advertising tries to stimulate demand for a specific brand by promoting its features, uses and advantages relative to competing brands.

Stones Custom Choppers is a motorcycle repair and maintenance shop specializing in customizing and restoring motorcycles to their customers' specifications. Rebuilds and custom bikes typically cost $20,000 and up, and each one is unique to the customer's size, interest, and personality. What type of pricing is most appropriate for the company?

Cost Plus , projects involving custom-made products such as custom motorcycle would most likely employ cost-plus pricing where a percentage is applied to the costs of materials to determine the price

Inventory-carrying cost

Cost of storage, insurance, taxes, obsolescence. - As your inventory gets higher, you are going to save higher unit cost. - have to develop a total cost curve by adding the vertical distances under each line.

Order Processing Cost

Cost that are associated with placing or processing an order, down sloping to the right, and trying to encourage you to order more

The Local Oak Restaurant offers dinner specials daily priced at $8.00 each and typically prepares 50 units of the special entrée. The restaurant knows that at $8.00 all 50 of the entrees will be sold and some customers who arrive later in the evening may not be able to get the special. What type of pricing is the Local Oak Restaurant implementing?

Customers pay a higher price for products when demand is high, and a lower price when demand is low.

The Old Country Buffet charges $12 per person for its dinner buffet. However, consumers who dine at the restaurant between 4 p.m. and 6 p.m. are charged an "Early Bird Discount" of $9 per person. What type of pricing is the Old Country Buffet utilizing?

Demand : demand - based pricing since a lower price is charged for an off-peak time of dining at the restaurant.

What is the first step in establishing prices?

Development of a pricing objective. - goals that describe what a frim wants to achieve through pricing.

Which type of stores offer a wide assortment of products, has high inventory turnover, and operates with low margins and high sales volume.

Discount Store: Discount stores are self-service general-merchandise outlets that offer products at low prices. They have lower profit margins than conventional retailers, but higher sales volume. To keep inventory turnover high, they have a wide assortment of products.

What is product line pricing?

Establishing and adjusting the prices of multiple products with a product line.

Sandy recently leased her first apartment and is purchasing accessories and décor. She enjoys shopping at HomeGoods and believes she is saving a lot of money since the store's sales tickets include information about "their price" and "our price." The information provided on the sales tag is called a(n)

External Reference Price : A comparison price provided by others such as retailers or manufacturers.

With prestige products, a firm will always be able to sell more at a higher price. True or False?

False, with prestige products, demand tends to increase with higher sells. After a certain point, however, raising the price backfires: if the price goes too high, the quantity demand goes down.

Traditional Specialty Retailers

Generally Specialize in just one or two lines, and you primarily see them in large malls. Ex: Victoria Secret or Foot Locker

What is a functional Middle man?

If title is not taken to the product, then they are a functional middle man.

______ combines price and quality attributes, which consumers use to differentiate among competing brands.

Image and Value: Value combines price and quality attributes, which consumers use to differentiate among competing brands

What is Supply Management?

In its broadest form, refers to the processes that enable the progress of value from raw material to final customer and back to redesign and final disposition. (purchasing, procurement, sourcing)

What is Logistics Management ?

Involves planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants.

Pierre runs a grocery store and is working with his suppliers in the planning and implementation of the flow of products from the manufacturer to his store. The goal is to make the transportation and storage of products more efficient and effective. He is engaging in _____ management.

Logistics Management

What are marketing objectives?

Looking at the objectives for the current product on what we want this product to achieve from a strategic stand point

You've been hired as a pricing analyst to assist a firm in setting their prices. The company wants to maximize its profits, and profit maximization is achieved when

Marginal Cost equal Marginal Revenue

When Disney World wants to have at least 90 percent of its customers indicating they had a memorable and satisfying experience at the park hotels, this is an example of _____.

Marketing Objective; a marketing objective stats what is to be accomplished through marketing activities

Tri-County Supply is a wholesaler that works in the home construction industry, providing building supplies such as doors, windows, gutters, and other components used in home construction. Tri-County Supply takes ownership of the components, which means that it assumes the risk associated with the products if it is unable to sell them to home builders. Tri-County Supply is a

Merchant Wholesaler, which is an interdependently - owned business that takes the title of goods, assumes ownership risks and resells products to the wholesalers, business customers, or retailers.

​ Why might a competitor's price list not reflect the actual prices at which the competitive products are sold?

Negotiation is often involved in the final selling price.

Brett is evaluating how consumers buy his company's products. He is thinking of adding various types of _____ retailing such as publishing a catalog, hiring telemarketers, and online shopping

Nonstore

Becky has started a company selling homemade cookies online. As the company has grown, Becky has decided to hire a third party to handle her physical distribution tasks so that she can focus on serving existing customers and attracting new ones. She has been using _____ for physical distribution of the cookies.

Outsourcing: Becky has been outsourcing the task of physical distribution. Outsourcing is the contracting of tasks to a third party. She has outsourced the physical distribution tasks to firms that have special expertise in the area of shipping so she can free up resources for other tasks.

What is Bundle Pricing?

Packaging together of two or more products, usually of a complementary nature, to be sold for a single price. To be attractive to customers, the single price generally is markedly less than the sum of the prices of the individual products.

Jessica invites a sales representative from The Pampered Chef, a company that sells kitchen tools, to her home. The representative brings sample products and makes a sales presentation to Jessica and 10 of her friends. Once the presentation is over, the representative takes orders from Jessica and the guests. This is an example of

Party Plan

Inbound Telemarketing

People that are available for phone calls from potential costumers, the call is coming from the outside coming in.

The strategic location of products or product promotions within entertainment media content to reach the product's target market.

Placement : Product Placement is the strategic location of products or product promotions within entertainment media content to reach the product's target market.

product positioning

Position a product in the mind of buyers as to having specific quality or benefit.

Best Buy is a national retailer specializing in entertainment, appliances, computers, and stereo equipment. Best Buy is considered a category killer retailer since they have a wide range of merchandise in limited product categories and are able to negotiate special discounts from suppliers due to their ability to purchase in bulk. Best Buy encourages customers to shop the competition but make their purchase from Best Buy—either online or in the stores since Best Buy will meet or exceed any advertised price on any of its products. What type of practice is Best Buy implementing through its price-match guarantee?

Price Competition

The practice of employing price differentials that tend to injure competition by giving one or more buyers a competitive advantage over other buyers is known as

Price discrimination

Price Leaders

Price leadership is when a leading firm in its sector determines the price of goods or services. This can leave the leader's rivals with little choice but to follow its lead and match the prices if they are to hold onto their market share.

The _____ pricing objective is utilized to recover research and development expenses and create the impression that its products may last longer, are more durable, and are better than competitors' products

Product Quality : The product quality pricing objective is utilized to recover research and development expenses and create the impression that its products may last longer, are more durable, and are better than competitors products.

Producers commonly provide intermediaries with discounts, or reductions, from list prices and they are classified into five categories. Which of the following is not a type of discount offered to business markets?

Quality

You are a brand manager for a major retailer and your team has been airing a series of television commercials with the help of an outside ad agency. The vice president of your company does not believe the ads have been effective and wants you to do some research to find out whether customers have seen the ads. Which of the following should you use?

Recognition Test: A recognition test is a posttest in which respondents are shown the actual ad and are asked if they recognize it.

Sarah is a sales representative for Dana Holding Corporation, a manufacturer of axles, drive shafts, and other car parts. She spends her time listening to her clients, which include auto manufacturers, to understand their organizations. She also understands their needs and challenges and provides support to her clients after the sale. Which type of selling is Sarah engaged in?

Relationship Selling; Relationship is the building of mutually beneficial long-term associations with a customer through regular communications over prolonged periods of time.

If usage rate decreases what should also happen in inventory management?

Reorder point should also decrease

Larry runs an upscale tanning salon targeting customers who wish to tan in a luxurious and private environment. These customers do not wish to be seen at the salon and want to be treated like royalty. To do so, he has private entrances and private areas for each guest, luxurious amenities, and a staff eager to assist clients. No other tanning salons meet the needs of these customers. What strategic issue in retailing has Larry addressed for his tanning salon?

Retail Positioning

______ pricing objectives generally require some amount of trial and error since not all data and inputs are available when first setting prices.

Return on Investment: ROI pricing objectives generally require some amount of trial and error since not all data and inputs are available when first setting prices.

What is the primary difference between Supermarkets are larger in size than superstores.

Supermarkets offer routinely purchased products in addition to products found at superstores.

Occasionally, firms may utilize a ______ pricing objective by temporarily setting prices low even below costs in order to generate higher levels of sales.

Survival : Occasionally, firms may utilize a survival pricing objective by temporarily setting prices low even below costs in order to generate higher levels of sales.

What are the key characteristics of sales promotion?

Tend to be combined with other forms of marketing form of communication as in advertising or PR, it is not normal to see sales promotion as stand alone. - Sales promotion efforts are usually short term, but there are a few exceptions. Sales promotion efforts are not very predictable, which makes it hard to know when your competitor will or will not use sales promotion.

What is Outbound Telemarketing

The business initiates calls out to customers, it has been limited though by hostile regulations. EX: LA Fitness calling people to try to make them potential members. Exceptions to this is marketing researchers, and politicians. They can call Hostile Regulations are not on them

What is Marginal Revenue?

The change in total revenue that occurs when a firm sells an additional unit of a product.

Versace's men's cologne "Gucci Guilty" is most likely considered a prestige product. If the marketing managers at Versace wanted to test the elasticity of the demand to confirm its prestige product status, which of the following outcomes would they likely expect?

The demand for the product would diminish at a certain higher price point. - prestige products tend to sell better at higher prices than lower ones, but after a certain point, if the price goes too high, the quantity demanded goes down.

What is the Operating Margin in Sales Force?

The difference between the total cost of selling products and the sales revenue that you get from these sales. You want to maximize the difference between what your cost are and what your revenue is. - so you add sales people until you reach a max in turns of your operating margin.

What is a Scan Back Allowance?

The goal is to rebuild the inventory of the retailer. This is usually done after some type of consumer sales promotion effort that may have reduced inventory at the retailer level. - this is based up on scanner data, usually at a self-service environment where scanners are used to check people out. Ex: you are able to buy a certain amount of a product back at a reduced price during a certain period of time

What is Cooperative Advertising?

The manufacturer makes an offer to a retailer that sells that manufacturers products saying they will pay the retailers portion of an advertising bill if they advertise in the local store.

What are the major elements of developing a marketing mix?

The marketing mix components are highly interrelated. You cant hold on to a marketing strategy for to long like Timex watch did with "It takes a licking and keeps on ticking" , they began to lose market share because they took to long to change their market strategy.

What is a party plan?

When a consumer acts as a host and invites friends and associates to view merchandise in an informal atmosphere.

What are sales Contests?

The producer or manufacturer sponsors a sales contest amongst retail stores. Ex: One store in retail will compete with another store, or people with in a store will compete against each other. Or the person could compete against himself or herself for a previous time period.

What is a Buying Allowance?

The producer puts the product on sale for a short time period, this sale has a greater discount than a typical discount.

What is nonstore retailing?

The selling of products outside the confines of a retail facility. This can include strategies like catalog marketing, direct-response marketing, telemarketing, television home shopping, and online retailing.

What is price lining?

The strategy of selling goods only at certain predetermined prices that reflect explicit price breaks. For instance, a shop may sell men's ties only at $22 and $37. This strategy is common in clothing and accessory stores. It eliminates minor price differences from the buying decision—both for customers and for managers who buy merchandise to sell in these stores. The basic assumption in price lining is that the demand for various groups or sets of products is inelastic.

What is Operations Management?

The total set of managerial activities used by an organization to transform resource inputs into goods, services, or both.

What is a premium ?

These are free gifts with the product. In the package or on the package.

What is Direct Response Marketing ?

They advertise certain products in media as in magazine or on TV in a add. - Products here often are unique. Ex: CitiKitty - a product that teaches your cat how to use the toilet, or the Snuggie.

Which of the following describes an advantage of using industrial distributors?

They can perform needed selling activities for local markets at a relatively low cost.

What is multiple - unit pricing?

This is used to encourage customers to purchase more units of a single product and take advantage of lower, per - unit prices.

The popular cleaning products Tide and Downy are both brands that are part of the Procter and Gamble family. Some formulas of Tide include Downy—thus, the Tide brand would purchase Downy from the Downy division of Procter and Gamble. This purchase would involve _____ pricing.

Transfer : Transfer pricing occurs when one unit in an organization sells a product to another unit.

Eric is a wholesaler who deals with individual bakers who want to sell their bread to independent restaurants and grocery stores. Every morning, he picks up bread from the bakers and visits the grocery stores and restaurants that purchase whatever bread he has that day. Eric is a

Truck Jobber, also called a truck wholesaler. Truck jobbers are limited-service wholesalers that transport products directly to customers for inspection and selection. Eric visits his customers on a regular route and they are able to choose whatever bread they need that day.

A manufacturer may try to prohibit intermediaries from selling its products outside designated sales territories to tighten control over distribution of its products. True or False?

True

Stepan is a global manufacturer of chemicals such as surfactants and polymers that are sold to manufacturers such as Procter and Gamble for use in their shampoos, laundry detergent, and soap products. Stepan competes with a variety of other chemical suppliers and knows that in general, they are a higher-priced and higher-quality supplier. However, Stepan doesn't know exactly how much their competitors charge for similar products. Which of the following practices should Stepan utilize to identify the prices competitors are charging for similar products?

Using consumer pricing surveys : the most ethical approach to obtaining pricing information is to use marketing research.

What are rebates?

Usually done for shopping goods, that are more expensive for a one time purchase. -usually done for consumer electronics as in a digital camera and cars. - Takes a while for rebates to happen though

What is a undifferentiated marketing strategy?

We assume that peoples needs for products in a product category are pretty much the same, so we can take a single marketing mix and aim it at everyone.

What is a concentrated marketing strategy?

We design a marketing mix and use market segmentation and aim this marketing mix just at a segment of the market.

What is a differentiated marketing strategy?

We develop multiple marketing mixes and we aim them at separate marketing segments.

When does a new marketing channel begin?

When the form of the product substantially changes. Ex: if we are looking at the marketing channel for bread it would not begin with the wheat farmer, it would begin with the baker - producer making the bread.

What is form utility from an intermediary?

When the intermediary assembles, prepares, or otherwise refines the product to suit individual consumer needs. Ex: the retailer offering to add a monogram to a product.

What is a Combination sales approach?

You combine straight salary and straight commission, you are paid a based salary on a monthly basis, then you are paid some type of commission based up on your sells. - the bonuses in this type of industry are substantial. It can be quite significant if the goal is missed as in missing a 50% goal, you don't get the bonus.

What is Straight Salary?

a sales person is paid a cent amount independent of what they actually sell. With this sales management has the most amount of control over sales people.

What is a self-liquidated premium?

an offer by the manufacturer that they can make you a special deal related to the product you are buying Ex: if it is a cereal company, they may have an offer on the back for cereal bowels . - It is called a self-liquidated premium because the company is not making a profit, they are simply covering their cost. Premium means free.

What is Psychological Pricing?

attempts to influence a customer's perception of price to make a product's price more attractive. Psychological pricing strategies encourage purchases based on consumers' emotional responses, rather than on economically rational ones. These strategies are used primarily for consumer products, rather than business products, because most business purchases follow a systematic and rational approach.

What is customary pricing?

certain goods are priced on the basis of tradition. This is a less common pricing strategy now than it was in the past. An example would be the 25-cent gumballs sold in gumball machines—the price has remained at that level for probably as long as you can remember.

What is markup pricing?

commonly used by retailers, a product's price is derived by adding a predetermined percentage of the cost, called markup, to the cost of the product.Markups normally reflect expectations about operating costs, risks, and stock turnovers. Wholesalers and manufacturers often suggest standard retail markups that are considered profitable. This is also convenient and a lot of retailers favor this method.

In-N-Out Burger is a fast-food hamburger chain headquartered in California that owns and operates every location, resisting franchising any new locations. By owning every location and not franchising, In-N-Out operates a(n) _____ and has no plans of adopting a(n) _____.

corporate VMS; contractual VMS

The following passage is an often-expressed critique of one of the two types of decision-making structures: Another disadvantage of this structure is that the organization may become fragmented. Business units may lose their sense of team spirit and cooperation. Some business units may put their own interests ahead of those of the company as a whole. Innovative ideas that once spread through the company quickly may now remain within individual business units. Which one of the following decision-making structures is this critique referring to?

decentralized organizational structure

If a retailer is reviewing its inventory and notices that the usage rate for one of the products it stocks has decreased, the retailer should

decrease its reorder point - In inventory management, the reorder point = (order lead time = usage rate) + safety stock. If usage rate decreases, then the reorder point should also decrease.

Hannah is reading through one of her favorite magazines. She notices an ad for a complete set of mint-condition state quarters. To order the coins, she would have to dial a toll-free number or mail in a form printed on the ad. This is an example of

direct-response marketing

Richland Technologies produces smartphone accessories. In order to have enough capital to manufacture its latest batch of accessories, Richland Technologies secured a loan with its inventory as collateral. Instead of moving the collateral to a warehouse, the bank making the loan hired a company to set up a _____ to provide security over the collateral at Richland Technologies' facility.

field public warehouse : Many public warehouses furnish security for products used as collateral for a loan. A field public warehouse is established by the public warehouse at the owner's inventory location. In this example, the field public warehouse was established at Richland Technologies' facility to protect the inventory used as collateral.

What is odd-even pricing?

involves ending a price with certain numbers. Through this strategy, marketers try to influence buyers' perceptions of the product. It aligns with the belief among many retailers that consumers respond more positively to odd-number prices, such as $4.99, than to whole-dollar prices, such as $5, for items where customers are looking for value. Odd pricing is the strategy of setting prices using odd numbers that are slightly below whole-dollar amounts.

Sony Pictures Television, the production company behind the television show Breaking Bad, made several marketing mix decisions that were related to distribution. All of the following are distribution decisions, except

leasing a billboard in Times Square to feature the star of the show: The Times Square billboard is a promotion decision. The airing and streaming of the show, the official web site, and the musical core are all distribution decisions.

What is Supply Chain Management?

refers to the coordination of all the activities involved with the flow and transformation of supplies, products, and information throughout the supply chain to the ultimate consumer. It integrates the functions of operations management, logistics management, supply management, and marketing channel management so that products are produced and distributed in the right quantities, to the right locations, and at the right times. SCM involves all entites that facilitate product distribution.

What is a SWOT analysis?

strengths, weaknesses, opportunities, threats

What is penetration Pricing?

the strategy of setting a low price for a new product. The main purpose of setting a low price is to build market share quickly to encourage product trial by the target market and discourage competitors from entering the market.

When the Quaker Oats Company manufactures its Quaker Chewy Bars, it places several boxes of the bars into larger shipping boxes that are then stacked onto pallets. These pallets can then be easily moved around using forklifts in a process called

unit loading - this is the process of putting one or more boxes on a pallet or skid that can be loaded efficiently using mechanical means such as forklifts, trucks, or conveyer systems.