marketing exam 2

Which statement about average cost-pricing is true? It can result in losses if actual sales are higher than expected. It does not take the demand curve into account when setting prices. It can be used to set a price without an estimate of the quantity to be sold. It is more profitable if actual sales are lower than expected. It works better in practice than it does in theory.

"It does not take the demand curve into account when setting prices."

What is the best example of an advertising objective? "We want 35 percent of our target customers to be aware of our new product within the next two months." "We want to generate enough interest in our product that intermediaries will be willing to stock it." "We want to make older consumers aware of our product—since they have the greatest need." "We want to increase profits—and that will require significantly expanding sales of our product." "We want to win an advertising industry artistic award for the creative effort on the ad."

"We want 35 percent of our target customers to be aware of our new product within the next two months."

What decrease(s) with increasing output? Multiple Choice total cost sales commissions total variable cost average fixed cost per unit total fixed cost

"average fixed cost per unit"

One disadvantage of average-cost pricing is that average-cost pricing does not help understand how costs operate at different levels of output. average-cost pricing does not consider historical values. the average cost is rarely useful information in making pricing decisions. it is easy to lose money with average-cost pricing. average-cost pricing is a highly complicated method.

"average-cost pricing does not help understand how costs operate at different levels of output."

Total fixed cost would be zero if the quantity produced were zero. may vary in the short run but is more or less fixed in the long run. is the sum of all expenses that are closely related to output. is the sum of those costs that do not change in total no matter how much is produced. is the sum of all costs of manufacturing and distributing a product.

"is the sum of those costs that do not change in total no matter how much is produced."

Which strategy is most likely to be used in a push promotion to intermediaries in a sales channel? A retailer of flat-screen TVs runs ads in local newspapers. Consumers in a geographic area learn about a new flat-screen TV through television ads. Consumers in a geographic area contact a TV retailer to ask about a specific model of TV. A TV retailer provides free maintenance plans with every flat-screen TV a customer buys. A TV wholesaler includes a free flat-screen TV with every ten TVs that a retailer buys.

A TV wholesaler includes a free flat-screen TV with every ten TVs that a retailer buys.

Which statement about inventory and storage is true? A distribution center is used to avoid unnecessary storing costs. Only government agencies can store products in public warehouses. Decisions about inventory levels are usually not of concern to marketing managers, as inventory levels are best determined based on the amount of the product produced. Achieving customer service goals makes a large inventory almost inevitable. Minimizing storage costs will lead to lower total distribution costs.

A distribution center is used to avoid unnecessary storing costs.

What does the acronym AIDA stand for? Attention, Interest, Desire, Action Alertness, Interest, Develop, Appeal Attention, Involvement, Desire, Action Alertness, Involvement, Desire, Appeal Action, Involvement, Desire, Attention

Attention, Interest, Desire, Action

Which statement about promotional expenses is true? Promotion money is spent primarily on advertising. Promotion money spent on publicity is the most well spent. All the special sales promotions together add up to less money than advertisements. Firms spend more money on advertising than on sales promotion. Firms spend less money on advertising than on personal selling.

Firms spend less money on advertising than on personal selling.

What is true of the AIDA model of message planning? Obtaining action is the first step in the process of message planning. Focusing on a unique selling proposition that aims an unsatisfied need is a way to arouse desire. Convincing customers that the product can meet their needs is a way to hold interest. Arousing desire is the final step in the process. Holding interest is the easiest step in message planning.

Focusing on a unique selling proposition that aims an unsatisfied need is a way to arouse desire.

What is an example of paid media? word-of-mouth praise about a company's product Google ads Twitter tweets of a customer about a brand online customer reviews Facebook posts of a customer about a product

Google ads

Which statement accurately characterizes publicity? It is generally less useful than advertising for promoting a truly new product. It avoids paying media costs. It is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor. It is more expensive than all other promotion methods. It is more flexible than personal selling.

It avoids paying media costs.

Random Corp., a leading medical equipment manufacturer and seller, introduces low-cost nebulizers to the market. The firm provides free demonstrations of the nebulizers for its customers at its retail outlets. What is the likely advantage it can gain from word-of-mouth publicity? It can acquire loyal customers with greater lifetime value. It can easily control the promotional messages generated by its customers. It can easily measure the success rate of the promotion media. It can avoid getting negative reviews about the new product. It can maintain versatility in its message format.

It can acquire loyal customers with greater lifetime value.

Which statement is true of proactive customer service? It requires companies to wait for customers to complain before responding. Companies adopting this approach to customer service view unhappy customers as unprofitable. Use of social media to track customer complaints reduces a firm's efforts toward proactive customer service. It can be achieved by monitoring customer activity on the Internet and using big data analytics. Companies using proactive customer service wait for a significant number of customers to call in complaints so they can analyze if a problem requires attention.

It can be achieved by monitoring customer activity on the Internet and using big data analytics.

Which statements about publicity is true? It is any paid form of nonpersonal presentation of ideas, goods, or services by a sponsor. It is the main form of mass selling, which includes only the use of traditional media. If a firm has a really new message, publicity may be less useful than advertising. It includes posts on a company's website, viral videos, word-of-mouth communication, a company's Facebook page, and its "tweets" on Twitter. It tries to attract attention to the firm and its offerings through paid media promotions.

It includes posts on a company's website, viral videos, word-of-mouth communication, a company's Facebook page, and its "tweets" on Twitter.

What is true regarding JIT systems? JIT systems do not have backup inventory. JIT usually entails less frequent deliveries. JIT requires manufacturers to add new warehouses. JIT requires suppliers to respond to very short order lead times and the customer's production schedule. Manufacturers must locate their facilities next to important customers in order to practice JIT.

JIT requires suppliers to respond to very short order lead times and the customer's production schedule.

Jackson Motors, Inc. normally sells its electric motors to all buyers for $100. However, a competitor offered to sell similar motors to one of Jackson Motors' biggest customers for only $80 and Jackson Motors offered that customer—but not its other customers—a $80 selling price. According to the Robinson-Patman Act, Jackson Motors has not violated the law—it is just meeting competition. Jackson Motors is breaking the law unless it offers to sell motors to all of its customers for $80. Jackson Motors cannot lower its $100 selling price. Jackson Motors cannot use the "meeting competition in good faith" defense unless it beats its competitor's $80 selling price. Jackson Motors and its competitor are both guilty of price fixing.

Jackson Motors has not violated the law—it is just meeting competition.

A salesperson for an athletic shoe company is assigned the functions of order-getting, order-taking, and sales support. Is this a mistake by this company? No, because order-getters tend to be less well trained than order-takers. No, because sales support activities can require a great deal of technical knowledge. Yes, because order-takers are often required to develop sales presentations. No, because one employee may fulfill all three types of roles for some businesses. Yes, because supporting salespeople should always be involved in order-getting as well.

No, because one employee may fulfill all three types of roles for some businesses.

A company has invented a new type of vacuum cleaner and needs to decide how to make it available to its target market. This is a(n) ________ Exposure Price Promotion Product Place

Place

Logistics, or physical distribution, is the ________Blank part of the marketing mix. Possession Place Price Promotion Product

Place

________Blank are similar to banner ads but they usually cover an entire browser window. Retargeting ads Pop-up ads Directories Classified ads Cookies

Pop-up ads

What is true regarding price discrimination? Price discrimination by firms selling to final consumers is illegal, but it is usually legal in selling to intermediaries. Price discrimination is not covered by Federal laws, but in some states it is illegal. Price discrimination is always illegal. Price discrimination may be legal if the firm can prove that different prices were set based on different costs. A company can be found guilty of price discrimination even if they didn't know they were entering into a discriminatory agreement.

Price discrimination may be legal if the firm can prove that different prices were set based on different costs.

Customer service is part of Product. Place. Promotion. Price. Purchase.

Promotion

Throughout the world, Samsung sells its televisions through retailers. What is probably a reason for using strategy? Samsung's customers prefer to buy direct from Samsung. Samsung's customers do not know which intermediaries sell its televisions. Samsung has limited financial resources. Samsung could more effectively serve customers by selling to them through its website. Samsung believes that some intermediaries can serve customer needs better than Samsung and at lower cost.

Samsung believes that some intermediaries can serve customer needs better than Samsung and at lower cost.

A 16-year-old took a picture of herself with her smartphone and used a filter make her head into a taco from Taco Bell and then shared it with her friends. Which social media platform did she most likely use? Snapchat Facebook Pinterest Tumblr Twitter

Snapchat

When a firm is interested in earning word-of-mouth publicity from customers, which approach would help the firm? The firm should discourage referral programs, as they do not always promote positive word-of-mouth. The firm should ask for recommendations from satisfied customers. The firm should show high performance, though it can be inconsistent. To maintain reliability, the firm should offer social media content that cannot be easily shared. The firm should make the customers believe that all of its products are great and should be recommended.

The firm should ask for recommendations from satisfied customers.

Two firms are operating within the same industry. The first firm responds to customer complaints after its customers communicate their problems. However, the second firm does not wait for its customers to complain. Instead, the company monitors customers' online activity, collecting big data from social media, learning what problems exist, and resolving them before complaints come in. What can be best concluded from this scenario? The first firm follows a proactive approach, while the second firm follows a reactive approach to customer service. The first firm focuses on retaining existing customers, while the second firm focuses on damage control. Both firms focus on damage control. The first firm follows a reactive approach, while the second firm follows a proactive approach to customer service. Both companies utilize a proactive approach to customer retention.

The first firm follows a reactive approach, while the second firm follows a proactive approach to customer service.

What is true about paid media? The promotional messages are not directly generated by the company or brand. The organization doing the advertising is the source of the message. Paid media can be positive or negative. The brand communicates the promotional messages through a message channel it directly controls. Third parties such as journalists or customers generate the promotional messages.

The organization doing the advertising is the source of the message.

How does earned media create challenges for a company or brand? The promotional messages posted are not considered trusted information sources. The promotional messages created by customers are out of a marketing manager's control. Earned media does not help a firm attract a potentially large audience. Earned media lets customers easily avoid company-generated messages. Earned media attracts customers to websites.

The promotional messages created by customers are out of a marketing manager's control.

Which statement about a salesperson's role is true? The salesperson rarely serves as a link between the firm and its customers. The salesperson represents the customers' interests inside the selling firm. The salesperson also holds titles such as management specialist or chief engineer. The salesperson only aims to sell the customer. A salesperson is seldom responsible for negotiating prices or diagnosing technical problems.

The salesperson represents the customers' interests inside the selling firm.

Which statement is true about promotion objectives for social media? They aim for growing customer equity. They are always easy to measure. They do not have any great impact on a small company's bottom line. They create more brand awareness and encourage trial. They focus on discouraging any brand familiarity among customers.

They aim for growing customer equity.

What is true of distribution centers? They are designed to facilitate the flow of products through the channel. They are the same as public warehouses. They are not places where regrouping activities such as bulk-breaking are performed. They increase storing costs. They are designed to eliminate all storage.

They are designed to facilitate the flow of products through the channel.

Which statement accurately represents referral programs used by online companies? They are high-cost. They are simple to use. They cannot experiment with various compensation plans. They can offer compensation to the customer who recommends, but not to the new customer. They always easily target customers with price resistance.

They are simple to use.

When a firm offers advertising allowances to firms further along in a channel, what is the likely benefit it gets? They encourage advertising or promoting of the firm's products locally. They involve intermediaries and producers sharing in the cost of ads. They allow for coordination and integration of ad messages in the channel. They set the allowance amount as a percent of the retailer's actual purchases. They offer incentives that encourage retailers to stock up on a product.

They encourage advertising or promoting of the firm's products locally.

________Blank means setting a fair price level for a marketing mix that really gives the target market superior customer value. Uniform pricing Target pricing Consumer surplus Value pricing Status quo pricing

Value pricing

Which statement concerning value pricing is false? Value pricing tries to build customer loyalty. Companies using value pricing deliver on their promises. Value pricing involves setting a fair price level for a marketing mix that meets customers' needs. Value pricing means using the lowest prices. The focus of value pricing is on the customer's requirements—and the whole strategy.

Value pricing means using the lowest prices.

Clairol Corp. is introducing a new brand of shampoo in a highly competitive market. Wholesalers might be willing to handle the new product, except that retailers are already complaining about overcrowded shelf space. Therefore, Clairol has decided to spend $10 million on TV advertising and send free samples to 3,000,000 households to convince consumers of the new product's superiority and to get them to ask for it at their retail stores. Clairol is using dual distribution. a pulling strategy. direct marketing. a pushing policy. a sampling distribution.

a pulling strategy.

The regrouping activity that involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called sorting. wholesaling. accumulating. assorting. bulk-breaking

accumulating

Order getters most likely are primarily concerned with establishing relationships with new customers and developing new business. sell to the regular or established customers, complete most sales transactions, and maintain relationships with their customers. usually handle all adjustments or complaints. routinely complete sales made regularly to target customers. are usually responsible for answering any final questions and completing the sale.

are primarily concerned with establishing relationships with new customers and developing new business.

The form of digital advertising that works best for brand building and whose effectiveness can be measured by using good tracking tools is mobile advertising. banner ads. directories and classifieds. social network advertising. search advertising.

banner ads.

What would be the most effective way for a firm to convince an intermediary to carry a less well-known product? by demonstrating customer demand for the product by making the product the cheapest offering on the market by instituting a vertical marketing system by requesting exclusive distribution by engaging independent distributors to promote the product

by demonstrating customer demand for the product

An order-taking sales rep would be most appropriate for a producer of cleaning materials—calling on regular customers. designer clothing—calling on possible new retailers. laptop computers—selling to companies who don't yet have any computers. airplanes—calling on possible corporate jet customers. a new brand of DVD system—calling on wholesalers.

cleaning materials—calling on regular customers.

One problem with digital advertising is ________Blank, which is when a person or software program automatically clicks on an ad without having any interest in the ad's subject. click fraud pay-per-click click-through clickstreaming fake clicks

click fraud

Which sales promotion activity is aimed primarily at final users of a product? sales contests meetings coupons merchandising aids training materials

coupons

Point-of-purchase ads for a product work best in which stage of the adoption process? awareness interest evaluation and trial decision confirmation

decision

Competitive advertising tries to develop selective demand rather than primary demand. keep a product's name before the public. promote the competitive products of an industry rather than a particular firm. build demand for a product category. create goodwill for a firm.

develop selective demand rather than primary demand.

When rice producers from China sold rice for a lower price in Japan than the price charged in China, it appeared the Chinese rice producers were engaging in price fixing. reduced price lists. agricultural rebate. overstocking. dumping.

dumping.

Comparative ads for a product work best in which stage of the adoption process? awareness interest evaluation and trial decision confirmation

evaluation and trial

The stage of the adoption process in which persuasive ads for a product work best is awareness. interest. evaluation and trial. decision. confirmation.

evaluation and trial.

When McDonald's corporate headquarters offers a local McDonald's franchise to only one franchisee on Bourbon Street in New Orleans, it is an example of ________Blank distribution. intensive operational selective exclusive administered

exclusive

If a producer's marketing manager wants intermediaries to take over all responsibility for promoting a product, the marketing manager should probably use exclusive distribution. selective distribution. intensive distribution. a vertically integrated distribution system. any of these, since every channel member must support a product with promotion.

exclusive distribution.

A customer service rep's main job is to take orders. find a remedy when something goes wrong with a firm's marketing mix after a purchase. get new orders. set up retail displays for retail customers. listen to customer complaints.

find a remedy when something goes wrong with a firm's marketing mix after a purchase.

What should be the focus of a promotional effort that utilizes social media? increasing target customers' purchase likelihood getting target customers to follow a brand encouraging customers to try a product getting more young people interested in a product introducing a brand to potential new customers

increasing target customers' purchase likelihood

A prepared sales presentation' is the best approach for most selling situations because the company can control what the sales rep says. usually involves many questions, to be sure each customer's needs are fully understood. is common with high-value items, to be sure the customer learns about all of the technical details. is best when a lot of time is available for a sales presentation. involves the sales representative doing most of the talking.

involves the sales representative doing most of the talking.

A channel of distribution is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user. is only needed when products must be stored. must include one or more intermediaries. is only needed when products are sold indirectly. None of the answers are correct.

is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.

Regarding personal selling, good sales managers know that many orders are lost simply because the salesperson didn't ask for the order. salespeople should spend the same amount of time with each prospect. the sales rep has very little influence on a prospect's response. good salespeople are born—not taught. None of these alternatives are correct.

many orders are lost simply because the salesperson didn't ask for the order.

A women's clothing store purchases a line of clothing from a distributor and adds 100% to the cost to arrive at the selling price. This is called profit margin. markup. prestige pricing. list price.

markup.

Traditional channels of distribution do not perform bulk-breaking activities. are usually preferred to other distribution arrangements. are easier to control than corporate channel systems. may involve little or no cooperation among channel members. are usually controlled through strong legal contracts.

may involve little or no cooperation among channel members.

A company has developed a reputation for poor customer service over the past couple of decades. Which practice will help the company turn its reputation around? taking a reactive approach to customer service over a proactive approach replacing existing customers with new customers limiting customer service reps' role in personal selling limiting the sales function to only the salespeople in the company monitoring customers' complaints by accessing big data from social media and the Internet

monitoring customers' complaints by accessing big data from social media and the Internet

Estimates suggest that _______Blank of most firms' total carbon emissions come from transportation. very little about a quarter more than half about 75 percent almost all

more than half

Physical distribution differs from logistics in that logistics deals with storing, and physical distribution does not. logistics uses JIT to coordinate activities among firms, and physical distribution does not. logistics includes customer service decisions, and physical distribution does not. logistics includes transporting goods, and physical distribution does not. none of these answers is correct, as physical distribution is another common name for logistics.

none of these answers is correct, as physical distribution is another common name for logistics.

The fastest-growing approach to distributing coupons is handling them out at the store entrance. printing them in newspapers. mass mailings. online. through word-of-mouth.

online.

Whenever Zoe is looking for a new book to read, she goes to Martha Smith's Pinterest page. Martha always recommends a good selection of books. In this case, Martha is in the role of opinion leader. blogger. intermediary. market researcher. product tester.

opinion leader.

Which description of salespeople is correct? order takers: sell to the regular or established customers supporting salespeople: routine completion of sales made regularly to target customers order getters: help the order-oriented salespeople missionary salespeople: supporting salespeople who provide technical assistance customer service reps: work to close orders after other salespeople have started them

order takers: sell to the regular or established customers

Which description of the three basic sales tasks is correct? order-taking involves various activities aimed at getting sales in the long run supporting role involves routine completion of sales made regularly to target customers order-getting involves seeking possible buyers with a sales presentation order-getting and order-taking are essentially the same thing order getters are seldom salespeople

order-getting involves seeking possible buyers with a sales presentation

The three basic sales tasks are order-closing, order-opening, and sales-promoting. order-taking, missionary selling, and order-getting. order-taking, order-managing, and order-getting. order-taking, supporting, and order-getting. order-closing, supporting, and order-promoting.

order-taking, supporting, and order-getting.

A brand's product website, blog, and social media pages like Facebook or Instagram are examples of ________media earned indirect paid specific owned

owned

A firm with a product in the market maturity stage of the product life cycle is most likely to focus on which basic promotion objective? pioneering publicizing informing lagging persuading

persuading

The City Foods grocery store has a program whereby customers can place their order online, City Foods employees will pick and pack the customer's groceries, and an independent contractor will deliver the groceries to the customer's home. This program is best described as a function of City Foods' ________ system physical distribution channel vertical marketing system market positioning supply chain

physical distribution

Unfair trade practices legislation prohibits very high markups at the retail level. allows manufacturers to set retail prices for branded products. prohibits price fixing among retailers. allows intermediaries to sell below cost. protects certain limited-line retailers from "ruinous" price competition.

protects certain limited-line retailers from "ruinous" price competition

Just-in-time (JIT) delivery is always the best approach. reduces customers' physical distribution costs. increases storing and handling costs. shifts responsibility for physical distribution activities forward in the channel. requires customers to have high quality standards in physical distribution activity.

reduces customers' physical distribution costs.

Shirtable makes and sells a high-end hoodie sweatshirt through an online website. After a recent order, Janee received a discount code she could give to a friend. She sent the code to her friend Alabama, and when Alabama used the discount code, Janee received a five-dollar credit on a future purchase. Shirtable is using a(n) product promotion activity. owned media system. viral management technique. referral program. advertising allowance.

referral program.

One major difference between reminder advertising and pioneering advertising is that reminder advertising focuses on selective demand, while pioneering advertising tries to develop primary demand. reminder advertising is less likely to use "soft sell" ads. reminder advertising is emphasized in the early stages of the product life cycle. pioneering advertising is emphasized in the later stages of the product life cycle. reminder advertising promotes the institution, while pioneering advertising stimulates future demand.

reminder advertising focuses on selective demand, while pioneering advertising tries to develop primary demand.

What is an example of a fixed cost? Multiple Choice outgoing freight packaging material expense wages rent sales commissions

rent

Faced with the threat of antitrust action, stockholder demands, and public interest groups, some large corporations set a(n) ________Blank pricing objective. increasing target return "aggressive" competition profit maximization increasing market share satisfactory long-run target return

satisfactory long-run target return

Some top managers seek only enough profits to convince stockholders that they are "doing a good job." The pricing objective of such managers is satisfactory returns. the status quo. nonprice competition. profit maximization. meeting competition.

satisfactory returns.

When a firm considers the keywords used by target customers in internet searches and designs a website so that it ranks high in a search engine's unpaid results, it is called a search engine query. online search regularization. product optimization. process regularization. search engine optimization.

search engine optimization.

Order-getting salespeople would be required for helping a buyer plan and install a computer and software for use as a website server. helping drug retailers figure out better ways to display and promote their products. seeking orders from supermarket buyers for a new brand of high protein diet supplement that has been added to the company's line. helping an indecisive consumer in a supermarket select the kind of meat she should buy for dinner. handling a complaint from a furniture store about a shipment that is late.

seeking orders from supermarket buyers for a new brand of high protein diet supplement that has been added to the company's line.

Order takers are concerned with establishing relationships with new customers and developing new business. selling to regular customers, completing most sales transactions, and maintaining relationships with their established customers. seeking possible buyers with a well-organized sales presentation designed to sell a good, service, or idea. selling unsought and heterogeneous shopping products. working with customers to resolve problems that arise with a purchase, usually after the purchase has been made.

selling to regular customers, completing most sales transactions, and maintaining relationships with their established customers.

A target return figure of zero implies setting negligible sales targets. setting a price level that will just recover costs. setting a price that helps attain previous year's high profitability. setting a price that would match the industry standard profit margin. setting a price at which competition will be zero.

setting a price level that will just recover costs.

Comparative advertising is usually ignored by consumers. is illegal according to the FTC. should be supported by research evidence. must focus on major consumer benefits to be legal. is legal in every country.

should be supported by research evidence.

A company engages primarily in the manufacture of touch-sensitive LCD monitors. The company prices its products so that it earns a 20 percent return on investment. Which pricing objective is the company following? meet competition unit sales growth nonprice competition target return share of market

target return

A manufacturer spends a large amount of money on research and development, leading to the introduction of a product that is likely to present the firm with a breakthrough opportunity. The manufacturer prices the product with the goal of achieving a 20 percent return on its investment within two years. Which type of pricing objectives is the company using? target return profit maximization nonprice competition meeting competition dollar or unit sales growth

target return

A scholarship program sells chocolate bars to fund the nonprofit. Its goal is to sell enough chocolate to fund that year's scholarship recipients; in this case, $20,000. This organization is using a ________Blank pricing objective. target return profit maximization nonprice competition meeting competition dollar or unit sales growth

target return

The early majority group tends to have the greatest contact with salespeople. tends to cling to the status quo and think it's the safe way. prefers to do things the way they have been done in the past and are very suspicious of new ideas. tends to avoid risk and waits to consider a new idea after many early adopters have tried it—and liked it. can help the promotion effort by spreading word-of-mouth information and advice among other consumers.

tends to avoid risk and waits to consider a new idea after many early adopters have tried it—and liked it.

Discrepancy of quantity means there are more producers than consumers. there are more consumers than producers. the difference between the product lines the typical producer makes and the assortment wanted by consumers or final users. consumers want more products than producers can make. the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers.

the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers.

The early majority have a lot of contact with innovators. the mass media only. the mass media, salespeople, and early adopter opinion leaders. impersonal and scientific information sources. salespeople only.

the mass media, salespeople, and early adopter opinion leaders.

In the promotion blend during the market maturity stage of the product life cycle, the total amount spent on promotion usually decreases. the total amount spent on promotion may rise as competition increases. the basic promotion objective is informing. the promotion emphasis starts to shift from building primary demand to building selective demand. mass selling decreases.

the total amount spent on promotion may rise as competition increases.

Advertising allowances offered by producers can be illegal unless they are made available for products of "like grade and quality." to all customers on proportionately equal terms. to all buyers in equal dollar amounts. on all products sold by the producer. within an FTC approved agreement.

to all customers on proportionately equal terms.

Which advertising objective is the best example of a specific advertising objective? to increase a firm's market share by 20 percent this year to increase consumer awareness of the product to help attract new retailers on the West Coast to sell the company "image" to senior citizens to increase store traffic

to increase a firm's market share by 20 percent this year

Channel systems in which the various channel members make little or no effort to cooperate with each other are considered ________ traditional channel vertically integrated direct-to-customer channel franchising administered channel

traditional channel

Reminder advertising tries to develop primary demand for a product category rather than demand for a specific brand. tries to keep the product's name before the public. means making specific brand comparisons using actual product names. tries to develop selective demand for a specific brand. informs potential customers about the new product and helps turn them into adopters.

tries to keep the product's name before the public.

What features apply to the advertising medium of magazines? very targeted, good detail, some "pass along"; but inflexible and has long lead times flexible, timely, local market; but may be expensive, has a short life, and no "pass along" flexible, repeat exposure, inexpensive; but "mass market" and very short exposure selected audience, flexible, can be personalized; but relatively expensive per contact and hard to retain attention demonstrations, good attention, and wide reach; but expensive in total, has a lot of clutter, and not always selective audience

very targeted, good detail, some "pass along"; but inflexible and has long lead times

When an auto repair shop calls an auto parts wholesaler to order the parts to fix a wrecked vehicle, the person who answers the repair shop's questions is most likely a missionary salesperson. technical specialist. wholesaler's order getter. supporting salesperson. wholesaler's order taker.

wholesaler's order taker.

A government agency charges motorists a toll for using a bridge. The toll is dropped when the cost of the bridge is paid. In other words, the government's target return figure was 20 percent. one. 10 percent. 100 percent. zero.

zero