Marketing Final

The stages for establishing pricing are

1. development of pricing objectives 2. assessment of target market's evaluation of price 3. Evaluation of competitors' price 4. Selection of a basis for pricing 5. selection of a pricing strategy 6. Determination of a specific price

____ involves the use of digital networks to provide linkages between information providers and users.

Connectivity

The three major dimensions on which prices can be based are:

Cost, demand, Competition

____ uses the Internet, mobile, and interactive channels to develop communication and exchanges with customers.

Digital Marketing

A sharing of meaning defines

communication

H&M, a clothing company, communicates to its target customers by advertising in magazines, offering clothing information on its website, creating a periodic online newsletter, Facebook, and Twitter. These vehicles through which the coded message is transmitted from the source, H&M, to the receiver, the prospective customer, is called a(n)

communication channel

A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace.

competitive advantage

Amazon's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers.

competitive advantage

When shopping for detergent, Josh looks at Tide, Fresh Start, Surf, and All and chooses the one that is on sale. These four brands make up his ____ set.

consideration

Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.

core competency

A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called

corporate culture

negotiated pricing

establishing a final price through bargaining between seller and customer

The 1990 Nutrition Labeling and Education Act directly prohibits

exaggerated health claims on food packages.

By offering both credit and financing through its GMAC division, General Motors is trying to help consumers

expand current buying power at the expense of future buying power.

Beth Hines is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of decision-making process is she using?

extended

When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on

external reference prices

Product-related ethical issues arise when marketers

fail to disclose information to consumers about the risks associated with using a product.

The receiver's response to a message is ____ for the source.

feedback

A competitive advantage exists when a

firm matches a core competency to opportunities it has discovered in the marketplace.

Advertising, personal selling, sales promotion, and public relations are called

promotion mix ingredients

A marketing opportunity results from

the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.

Price is

the value that is exchanged for products in a marketing transaction.

Companies that compete for the same limited financial resources of the same customers are known as ____ competitors.

total budget

A retailer is an organization that purchases products for the purpose of reselling them to

ultimate consumers

The equation a buyer applies to assess a product's value is

value= customer benefits - customer costs

In service marketing, the most important link to the customer is

well trained contact employees

In the consumer buying decision process, the information search stage

yields a group of brands that a buyer views as possible alternatives.

Distribution, price, promotion, and product are all elements of

Marketing Mix

The oldest form of exchange⎯trading of products⎯is known as

barter

The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as

cause-related marketing

Nordstrom, Macy's, and JCPenney are all considered

department stores

The first stage in the development of any advertising campaign is

identifying the advertising target audience.

The three basic forms that a product can take are

services, ideas, and goods

Which of the following characteristics distinguish online media from traditional marketing?

Addressability, interactivity, accessibility, connectivity, and control

____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.

Corporate

Lindsay was reviewing her bank statement for last month. She had paid her rent, her car payment, electric and phone bills, and made three trips to the grocery. Lindsay had also bought tickets to a Katy Perry concert and new clothes to wear to the concert. The money spent on Lindsay's rent, car, electric and phone bills was likely from her ____ , while the money spent on the concert tickets and new clothes was from her _____.

Disposable income; Discretionary income

Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?

Exclusive

____ allows customers to express their needs and wants directly to a company in response to its marketing communications.

Interactivity

T-Mobile implements a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?

Market

When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies?

Marketing Concept

What type of competitive structure exists when a firm produces a product that has no close substitutes?

Monopoly

____ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit.

Nonprofit

The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this case, Decca Electric Corporation would be considered

Oligopoly

____ is the value of the benefit that is given up by selecting one alternative rather than another.

Opportunity Cost

bundle pricing

Packaging together two or more complementary products and selling them at a single price

If a company calls a meeting to announce a major news event, this is known as a

Press Conference

Marketing Ethics

Principles and standards that define acceptable marketing conduct

When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?

Promotion

____ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders.

Public Relations

While Silk Soymilk engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Silk Soymilk has a(n) ____ approach to marketing environmental forces.

Reactive

Which of the following statements about marketing environment forces is correct?

They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.

____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.

Value

The marketing concept is best defined as

a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals.

Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of

a strategic channel alliance

When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental

analysis

The strategic planning process begins with

analysis of the marketing environment

Rick is a sales representative for Lucent Technologies. He has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature he needs. Rick feels he is ready for the ____ step of the personal selling process.

approach

The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called

approach

One of the fastest-growing areas in mobile technology is the creation of ____ that help consumers to access more information about businesses

apps

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

break even point

Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.

breakeven

Routinized response behavior is what a consumer does when

buying frequently purchased, low-cost items that need little effort

differential pricing

charging different prices to different buyers for the same quality and quantity of product

The main characteristic of a ____ is that customers are satisfied to the point that they use a service repeatedly over a period of time.

client-based relationship

The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.

closing

After purchasing a new Lexus, Brandon sees an Infinity pass by on the street and begins to wonder if he made the right choice. Brandon is experiencing

cognitive dissonance

As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use ____, which are the most widely used form of consumer sales promotion.

coupons

Often when a company introduces a new product or line extension, its promotion will focus on ____ in order to initiate the product-adoption process.

creating awareness

When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ____ is an integral part of the process.

customer satisfaction

Any human or mechanical effort that adds value to a product is called

customer service

Compared with other types of retailers, department stores compete mainly on the basis of

customer services

A marketing channel is defined as a group of individuals and organizations that

directs the flow of products from producers to consumers

Consumers buying products online have dramatically affected the ____ variable of the marketing mix.

distribution

Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using

dual distribution

Which of the following refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing.

electronic marketing

Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in

environmental scanning

SiriusXM Radio is concerned about how the increasing use of smart phones will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access and delivery to prepare for this trend. Sirius XM's process is called

environmental scanning

The final stage of the selling process is

follow up

Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors.

generic

Initiatives intended to improve an organization's positive impact on society and the natural environment are called

green marketing

Services delivered through machinery such as computer kiosks, ATMs, and vending machines can reduce the ____ that comes from increased contact with human employees.

heterogeneity

Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and

heterogeneity

To formulate a marketing strategy, one must

identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.

Marissa goes to Target to purchase school supplies for her two children. As she is approaching the check-out counter, she sees a vase she just has to have and buys it immediately. Marissa's purchase of the vase is an example of

impulse buying

The amount of money received through wages, rents, investments, pensions, and subsidies is called

income

When using credit to make purchases, consumers are

increasing current buying power at the expense of future buying power.

According to Maslow's hierarchy of needs,

individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.

Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution channel.

industrial distributor

Personal trainers cannot complete their work without their clients present because of the ____ feature of services.

inseparability

Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called ____ advertising.

institutional

Walgreen's has set up a website that enables customers to converse with the company and communicate their needs and wants. This is an example of a(n) ____ website.

interactive

A price developed in the consumer's mind through experience with the product is called a(n)

internal reference price

A target market

is a specific group of customers on whom an organization focuses its marketing efforts.

Extended decision making is the type of consumer decision-making process that

is the most complex decision making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.

Personal selling goals include finding prospects, convincing prospects to buy, and

keeping customers satisfied

Marketers often provide consumers with free samples, sometimes coupled with coupons, to help them gain experience with their products and facilitate consumer

learning

Salina is shopping for low-calorie frozen dinners to take to work for lunch. Salina has always been mindful of the total calories and the number of fat grams in these dinners. However, after reading an article about the high sodium counts in frozen meals and the maximum grams of sodium a woman should eat daily, she now pays attention to the sodium as well. The changes in Salina's thought processes and behavior caused by this information is called

learning

When a consumer purchases products occasionally or needs information about an unfamiliar brand in a familiar product category, he or she will most likely engage in

limited decision making

The three most widely recognized types of consumer decision making are:

limited problem solving, extended problem solving, and routinized response behavior.

Ariana is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?

location

The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about

location

Location is important to a retailer because

location determines the trading area from which the store must draw its customers.

A group that has the willingness, ability, and authority to buy a product is a

market

Realizing an increase in both the number of consumers who are environmentally-conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a ____ while the strategic window is open.

market opportunity

A change in the minimum drinking age in any given state illustrates a change in the ____ for Miller Brewing.

marketing environment

When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a

marketing opportunity

Safeway Foods Corporation is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a

marketing strategy

Marketing managers strive to develop a marketing mix that

matches the needs of the target market.

A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n)

media plan

Price is considered to be the variable in the marketing mix that is

most flexible

Sydney won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at

motivating salespeople

Buyers' actions are affected by one or more internal energizing forces geared toward satisfying needs, which are called

motives

Anything that reduces the accuracy and clarity of communication is called

noise

During a one-minute television ad for Nike, the National Weather Service interrupts to announce a flash flood warning for surrounding counties. Such an occurrence is an example of ____ in the communication process.

noise

Sony Corporation has a particular approach for determining its advertising appropriation. A problem with this technique, however, is that the people in the marketing department have difficulty estimating the level of effort needed to achieve certain goals. This problem is characteristic of the ____ approach.

objective-and-task

The owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing ____ for the campaign.

objectives

Three primary methods of collecting information for environmental scanning are

observation, secondary sources, and marketing research.

Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the ____ approach to determine its advertising expenditures.

percent-of-sales

Kinesic communication is an element in which type of promotional method?

personal selling

Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is

personal selling

A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility.

philanthropic

McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ____ responsibility.

philanthropic

The two major types of product advertising are

pioneer and competitive

Marketing channels create four types of utility for consumers including

place, time, possession, and form

Procompetitive laws are those designed to

preserve competition

A measure of sensitivity of demand in relation to changes in price is

price elasticity of demand

Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage containers. Sales have been declining in the past nine months and her management team is pressuring her to compete based on price discounts. However, Isabella is aware of the dangers associated with engaging in price competition. She knows that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.

price war

reference pricing

pricing a product at a moderate level and displaying it next to a more expensive model or brand

When Julia goes to the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a copy of the book The Goal. At which stage of the consumer buying decision process is Julia?

problem recognition

The five major stages of the consumer buying decision process, in order, are

problem recognition, information search, evaluation of alternatives, purchase, and post purchase evaluation.

Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.

product

If the push policy is used in promoting a product, the firm

promotes only to the next marketing institution down the marketing channel.

Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization more positively and to accept its product is the role of

promotion

The element of the marketing mix used to increase awareness of a product or company is

promotion

Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ____ marketing tool.

promotional

Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is

prospecting

A marketing plan

provides a framework for implementing and controlling marketing activities.

Kohl's, a department store featuring clothing and housewares, communicates in news story form about its organization and its efforts to support local children's hospitals. This information is transmitted through mass media at no charge and is therefore called

publicity

The Sharper Image likes to use nonpersonal communication in news story form such as press releases for its new and improved products. This is an example of

publicity

If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the

quantity demanded goes down

Alton is reading a magazine ad for a new cologne. In the ad, he sees little more than a photo of a man riding horseback on a beach, and the name of the new cologne, Rugged. In this situation, Alton is a ___, one who ___.

receiver; decodes

Total buying power declines during periods of economic

recession

Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as

relationship marketing

Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)

retailer

Walmart, Macy's, Nordstroms, and Toys "R" Us are examples of

retailers

Direct selling, direct marketing, and vending machines are all examples of

retailing

Stacy is going to the store to buy milk and cereal. She will most likely use ____ in her consumer decision-making process.

routinized response behavior

Which of the following consumer decision-making processes will probably be used in purchasing toothpaste?

routinized response behavior

The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the

sales presentation

Albott Laboratories offers ceramic coffee mugs to its physician customers when it promotes a new drug. This example illustrates Albott's use of which one of the following elements of the promotion mix?

sales promotion

An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is

sales promotion

Hunt's decided to put a much larger share of its promotion budget into ____ because of the heavy reliance it will be placing on coupons in the second quarter.

sales promotion

The marketing concept focuses on

satisfying customers' needs in a way that helps to achieve organizational objectives

The Fisher-Price company produces toys and baby-related products. For the introduction of its line of nursery furniture for infants and small children, the Fisher Company will most likely use ____ distribution for the products.

selective

When a marketer makes an effort in promotion to point out the strengths and benefits of a specific brand, it is an attempt to build ____ demand.

selective

The continuum of tangibility goes from ____ on one end to ____ on the other end.

service-dominant products; good-dominant products

secondary-market pricing

setting one price for the primary target market and a different price for another market

A consumer's buying decisions are affected in part by the people around him or her. Such people and the forces they exert on an individual buyer are called

social influences

In contrast to industrial products, consumer products are often purchased because of

social influences

Sam's Club has developed a website that allows employees to create a profile and connect with co-workers for the purpose of getting acquainted and building a work related network. This is an example of a

social network

In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication

source

Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)

stakeholder

Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of non-selling tasks. What compensation method(s) would best fulfill his requirements?

straight commission

Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a

strategic business unit

Home Depot's synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both social initiatives and its business goals is an example of

strategic philanthropy

Managers at the Longshore Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called

strategic planning

An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.

strengths and weaknesses

A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.

supplementary

A set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produced and distributed in the right quantities, to the right locations, and at the right time is called​

supply chain management

Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of

supply chain management

Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.

sustainable competitive

Harley-Davidson's Harley Owner's Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) ____ over other motorcycle manufacturers.

sustainable competitive advantage

As their meeting concludes, Jamal rises and thanks Gina for taking the time to come by and explain her firm's new line of industrial fasteners. A handshake, which is best described as a form of _____ communication, concludes the session.

tactile

Periodic Discounting Pricing

temporary reduction of prices on a patterned or systematic basis

Random Discounting Pricing

temporary reduction of prices on an unsystematic basis

Technology is

the application of knowledge and tools to solve problems and perform tasks more efficiently

Possession utility is best described as

the customer having access to the product to use now or store and use later.

StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about

the marketing environment