Marketing, Exam 2

Electrowhip, a company that manufacturers blenders and electric whisks, has decided to use a market-penetration pricing strategy. Which of the following, if true, proves their decision to be a wise one?

Electrowhip operates in a market with many competitors.

All of the following are disadvantages of test marketing EXCEPT that test marketing​ ________.

Encourages dishonesty among particpants

Which of the following questions is most important for product designers to consider while developing a​ product?

How would customers use and benefit from the​ product?

Service​ ________ means that services cannot be​ seen, tasted,​ felt, heard, or smelled before they are bought.

Intangibility

Which of the following statements is true of viral​ marketing?

It is the digital version of word-of-mouth marketing.

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new​ markets, the company increases its promotion expenditure to counteract competitive responses.​ Kellogg's is in the​ ________ stage of the product life cycle.

Maturity

Which of the following companies uses product line pricing?

Mobile Point, which launched a range of cell phone models, each priced according to its features

The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. This is an example of an

Oligopolistic competition

Kevin is a salesperson working for a company that manufactures gardening tools. He is involved in door-to-door sales and travels every day to call on customers. In his company, Kevin is most likely a part of the ________.

Outside sales force

Which of the following is true with regard to personal​ selling?

Personal selling entails personal presentations by a firm's sales force for the purpose of making sales and building customer relationships.

refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

Product Quality

In the​ ________ stage of the new product development​ process, products undergo rigorous tests to make sure that they perform safely and​ effectively, or that consumers will find value in them.

Product development

1. A group of business entrepreneurs who worried about their teenage children drinking and driving decided there must be some way to approach this problem proactively. They came up with an idea for a pair of blurry goggles. They believed looking through the goggles would simulate what the world looks like when someone is seriously intoxicated. They developed a crude pair of blurry goggles to show prospective customers. This crude pair of goggles is known as a​ ________.

Prototype

Which of the following would most likely improve coordination between marketing and sales?

Salespeople should participate in marketing planning sessions by sharing firsthand customer knowledge.

Erica wants to replace her old washing machine with a new one. In order to get the maximum value for her​ money, she plans to spend substantial time and effort in gathering information and making product comparisons before making the actual purchase. In this​ instance, Erica is planning to buy​ a(n) ________ product.

Shopping

Which of the following is most likely true of a sales force?

The performance difference between an average salesperson and a top salesperson is generally substantial.

Integrated marketing communications require a company's mass-market advertisements, Web site, e-mail, and personal selling communications to all have ________.

The same look feeling and message

Which of the following statements is true regarding​ today's marketing​ communications?

Today's consumers are better informed about products and services.

Travis Computing Systems earns most of its revenue from sales and in-person computer services. The sales force at Travis recently began telemarketing and Web selling. How would telemarketing and Web selling most likely benefit Travis?

Travis sales reps would be able to service hard-to-reach customers more effectively.

Which of the following is the most likely circumstance for a company to decide to do little or no test​ marketing?

When the costs are low

Which of the following characterizes standardized global advertising?

a more consistent worldwide image

Glasis is a type of paint made specifically for use on cars. An ad in Motor Trend magazine advising consumers to request their auto body shops to use Glasis paint is an example of how a company uses ________.

a pull strategy

Boson Corp. is introducing consumers to its new car with the help of an advertisement campaign. This introductory campaign most likely aims to affect the ________ stage of buyer-readiness.

awareness

As a manufacturer increases price, the ________ drops.

break even volume

Companies with lower costs​ ________.

can set lower prices that result in smaller margins but greater sales and profits

Multiprint, a printer manufacturing firm, sells ink cartridges for each of its specific models. Only Multiprint cartridges are compatible with Multiprint printers, and no two of the firm's models share the same specifications. What type of pricing does Multiprint use?

captive product pricing

While comparing hotel rates on Google's search engine, Brenda came across text-based ads and links alongside the search results. This form of advertising is known as ________.

contextual advertising

When selecting a media​ vehicle, the media planner looks both at the total cost of using a medium and at the​ _______

cost per thousand persons reached

The New Age Gallery has three admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________.

customer-s e g m e n t e d p r i c i n g

Which of the following is a major step in selecting advertising​ media?

determining reach, frequency, and impact

Markup percentage on cost

dollar markup/cost

Markup percentage on selling price

dollar markup/selling price

Which of the following is an advantage of using digital​ catalogs?

eliminates printing and mailing costs

Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. This reflects Bon Vivant's ___________ pricing strategy.

everyday low

Dollar sales

fixed cost + profit goal/contribution margin

Unit volume

fixed cost + profit goal/price - variable cost

Break-even sales

fixed costs/contribution margin

Break-even volume

fixed costs/price - unit variable cost

Consumers are less likely to use price to judge the quality of a product when they​ ________.

have experience with the product

If demand hardly changes with a small change in​ price, the demand is​ ________.

inelastic

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

informative advertising

Robin works in a manufacturing company in Ohio. She sells products and handles customer requests via the company's online live chat feature. In her company, Robin is most likely a part of the ________.

inside sales force

Which of the following statements about​ break-even analysis is​ true?

it is calculated using variable costs, the unit price, and fixed cost

In response to price cuts from competitors, a cereal company with several more expensive and higher quality cereals introduced a lower-priced option to its product line. This is an example of which of the following responses to a competitor's price cut?

launching a "fighter brand"

Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using?

market-skimming pricing

A charitable trust's appeal which states, "While you are trying to figure out what to get the man who has everything, don't forget the man who has nothing" is an example of a(n) ________ appeal.

moral

Contribution margin

price - variable cost/price

A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they charge for models.

price fixing

Which term refers to prices that buyers carry in their minds and check with when they look at a given​ product?

reference prices

Dollar markup

selling price - cost

An ad for a new convection oven shows a busy professional woman serving dinner to her family. The convection oven is seen in the background, and the headline reads, "The latest development in time travel." This is an example of what type of execution style?

slice of life

Hannah Adams is a senior sales manager in Elmo Corp., a rapidly-growing company manufacturing personal computers and printers. In order to handle sales effectively, Hannah insists on using the services of different groups of people from different departments within the company such as, the sales, marketing, technical support, and finance departments. In this instance, Hannah makes use of ________.

team selling

Sales executives at Keiron Air Conditioners use phone directories to call customers and convince them to buy their air conditioners. Which form of direct marketing is used here?

telemarketing

Snappy Cameras is launching a new advertising campaign to demonstrate the high quality of its digital cameras. Which media option would give the audience the most control over exposure to the ads and interactive capabilities?

the internet

ROI price formula

unit cost + ROI * investment/unit sales

Markup price formula

unit cost/(1 - desired return on sales)

unit cost formula

variable cost + fixed costs/unit sales

Costs that change with the level of production are referred to as​ ________.

variable costs

1. Which of the following is true with regard to​ services?

...

Which of the following statements is true regarding the old​ mass-media communications​ model?

...

Which of the following statements is most likely true regarding the​ objective-and-task method of budget​ setting?

....

Which of the following is the practice of inviting broad communities of​ customers, employees, independent​ researchers, and members of the public into the new product innovation​ process?

1. Crowdsourcing

Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive​ R&D. The executives then planned to filter out the best ideas during the​ ________ stage.

1. Idea screening

Stahl Inc. has 1,000 Type-A accounts, each requiring 30 calls per year, and 3,000 Type-B accounts, each requiring 10 calls per year. If each salesperson at Stahl Inc. can make 1,500 sales calls per year, how many salespeople would be needed to meet the total workload?

40

Which of the following statements is true about public relations?

An effective public relations program continues over months or even years

VLX Global sells directly to final consumers and avoids intermediaries while catering to a broad group of demographic segments. Which major online marketing domain is evident here?

B to C

Symmonds​ Inc., a company manufacturing breakfast​ cereals, has extended its special Crispo cereal brand into a full line of breakfast cereals plus protein​ shakes, fruit and sandwich​ spreads, butter, and doughnuts. This is an example of​ ________.

Brand Extension

A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the​ company's new products. This is an example of​ ________.

Brand evangelists

Neutron Inc. is conducting a business analysis to determine which of the many newly developed apps should be released. To estimate​ sales, the company must​________.

Consider the sales history of similar products

The fundamental asset underlying brand equity is​ ________, the value of customer relationships that the brand creates.

Customer Equity

Renkel Cosmetics sends a sample of the newest cosmetics line to all premium members' addresses. Which of the following best describes Renkel's form of marketing?

Direct mail marketing

SparkClean is a company that specializes in producing cleaning products for automobiles. In order to promote its products, SparkClean sends a complimentary sample of its products to auto-enthusiasts. Which form of marketing is SparkClean involved in?

Direct mail marketing

Which of the following statements is true of direct​ marketing?

Direct marketing offers sellers a low-cost alternative for reaching their markets.