Marketing Final

A combination compensation plan is the most effective method for motivating sales personnel to escalate their selling efforts.

False

A firm can survive in the long run only if its products are sold below cost.

False

A salesperson can perform only the functions of a specific type of salesperson.

False

Deceptive promotional practices today are common because of a lack of regulation.

False

Demand is best determined by a top management committee.

False

Generally, a salesperson's performance is judged by comparing it with predetermined standards rather than by comparing it with the performance of other salespeople.

False

Premium money is appropriate for promoting products sold through self-service.

False

Relative to the cost of advertising, the cost of publicity is high.

False

The preapproach is the first step in the personal selling process.

False

The primary product offered by the department stores is convenience

False

When sales go up, advertising should be increased; when sales decline, advertising should be decreased.

False

Advertisements for services use tangible cues to help customers understand the intangible attributes associated with a particular service.

True

Changes in buyers' attitudes, other components of the marketing mix, and uncontrollable environmental factors can influence demand.

True

Demand-based pricing relies on information concerning peak demand times and off-peak demand times.

True

Direct marketing is the selling of products outside the confines of a retail facility

True

Effective sales force motivation is achieved through a continual organized set of activities performed by the company's sales management.

True

Profit margins for marketing channel members must be considered when determining the price of a product.

True

Selecting a convenient location is important to the distribution of a nonprofit service.

True

Deanna asks Beverly what housecleaning service she would recommend in Oakview. Beverly responds that Pristine Cleaning is great if you can be assured that Tasha will be the person assigned to your house. Beverly's recommendation addresses which of the following service features?

Heterogeneity

Which of the following statements about customer contact in services marketing is false?

High-contact services are less expensive to deliver because they are typically equipment based.

Which of the following statements is NOT true about recruiting and training a sales force?

Marketers agree on a generally accepted set of traits for being an effective salesperson.

Historically, which of the following was developed in 1927 to supply milk, eggs, and other products for customers replenishing their iceboxes?

convenience stores

Logos, business cards, stationery, signs, and promotional materials that make firms immediately recognizable comprise their

corporate identity materials

____ provide businesses with copywriters, artists, production coordinators, media experts, researchers, and other highly skilled specialists.

advertising agencies

Suppose Liberty Mutual Insurance stated, "We want our advertising to increase our customer base for home and automobile insurance 10 percent by the end of the fiscal year." This would be considered a(n)

advertising objective

Which of the following perform the fewest functions?

agents and brokers

Elias, a sales representative, is returning from a week on the road. One of his activities this week is to develop ____, which are designed to identify the customers called on and to present detailed information about interaction with those clients.

call reports

Bling is a manufacturer of fashion jewelry that is expanding its use of direct marketing. Management has narrowed the options down to two but has not decided whether to use ____ where it would mail potential customers brochures featuring the company's entire product line or _____ where it would feature a handful of products on QVC or the Home Shopping Network.

catalog marketing; television home shopping

When ASICS gives a portion of its profits to prostate cancer research for every pair of blue-themed Gel-Cumulus shoes sold, it is engaging in

cause-related marketing

Samsung has been relatively happy with sales of its Galaxy S9 phone. However, when Apple came out with the newest iPhone X, Samsung released advertisements marketing all of the features and benefits its Galaxy phone has to offer. Samsung's promotional objective is to

combat competitive promotional efforts

A content analysis of an organization's messages, readability studies, and readership surveys are all tools used to conduct a(n)

communications audit

Analyzing __________ can help a firm identify patterns that may indicate the need for corrective action or suggest market opportunities that can be exploited.

complaints and reviews

Universal decided to run its new commercials for all of its theme parks several times a day for three weeks and then not at all for two weeks. It will then run the commercials again for three more weeks. Universal is using a ____ schedule for its advertising.

flighting

___ are support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers.

missionary salespeople

A single page of typewritten copy that has 300 words or less and describes a company event or product is called a:

news release

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

Ben, one of the staff members at the YMCA, suggested that the "Y" offer discounted memberships to senior citizens over the age of 65; however, they could only use the facility between the hours of 9:00 am and 4:00 pm. Ben's plan is most likely addressing the issue with ____, and relates to the ____ characteristic of services.

off-peak demand; perishability

Joseph donates his time to a nursing home every Friday after school. Sometimes this means he misses hanging out with his friends for certain events. However, Joseph is committed to volunteering at the nursing home because his grandfather is one of the residents. He only misses his regular routine at the nursing home for very special occasions. Because Joseph must sometimes sacrifice events with his friends to volunteer, this represents a(n)

opportunity cost

Which promotional method is most likely to be used in a push policy?

personal selling

Dividing the percentage change in quantity demanded by the percentage change in price gives the:

price elasticity of demand

In some retail stores, ______ improve(s) the dressing room experience by letting customers view clothing in a different light and requesting a clerk bring the item in different colors or sizes without having to leave the dressing room.

smart mirrors

Mikhail works on developing press releases for a nonprofit organization looking for new ways to encourage recycling among consumers and businesses. Mikhail is engaging in

social marketing

Off-price retailers and category killers are both:

specialty retailers

Louis is reading the online report of the tuition and fees he owes for this semester of college. Since he has signed up for online banking, he pays the amount immediately. The amount Louis just paid is considered to be

the price

When coupons are returned, they help manufacturers determine whether

they reached the intended target market

When Buick buys batteries from Delco (both of which are divisions of General Motors), ____ pricing occurs.

transfer

Consumers are ________________likely to tell other people about a bad customer service experience compared to a good one.​

two times more

Distribution for nonprofit organizations is:

typically characterized by short channels

Eva went shopping at a local store called Threadgill's but found out that if she wanted to take advantage of its low prices, she would have to become a member. Threadgill's is an example of a

warehouse club

Facing competition from Walmart as a low-cost retailer, Target has updated its _____ to be a mass merchandiser of inexpensive yet chic goods. To accomplish this, it has entered into design partnerships to offer low-cost goods made by famous designers.

retail positioning

Premium-priced products are usually marketed through

selective or exclusive distribution

The el Rey del Mar Golf Club found that with annual fixed costs of $60,000, its breakeven point is 2,000 members when the membership charge is $60 per person per year. What is the variable cost per person for el Rey del Mar?

$30

Forever 21, a clothing company, communicates to its target customers by advertising in magazines, offering clothing information on its website, creating a periodic online newsletter, and using Instagram and Twitter. These vehicles through which the coded message is transmitted from the source, Forever 21, to the receiver, the prospective customer, are called

communication channels

Suppose that the frozen foods division of Amy's purchases food trays and boxes from the packaging division. The form of pricing used to charge the frozen foods division is called

transfer pricing

Which of the following gives the marketer an opportunity to demonstrate the product in an environment where it most likely would be used?

Direct selling

A hair stylist who gives good haircuts in the morning but tends to give haircuts of lesser quality in the afternoon is suffering from the challenges associated with intangibility.

False

If an organization is large and has a large promotional budget, it should utilize all four promotional methods

False

Service quality is defined as the company's perception of how well a service meets or exceeds customer expectations.

False

Malia works for a consumer packaged goods firm in the marketing department. She is trying to assess the effectiveness of a recent public relations campaign to improve the image of her firm, and, therefore, its sales. She is trying to determine which news releases her firm sent out were actually published in newspapers. What should she do to get that measurement?

Hire a clipping service

Toyota's act of giving the opinion leaders a new vehicle for two weeks is best described as an example of

buzz marketing

Which of the following is an image with a brief description that can be used to illustrate new or improved products?

captioned photograph

Molly Bloom is in charge of advertising for her company and has produced a 30-second television spot to promote one of the company's new products. One of her assistants just out of college believes that the commercial has too much visual and audio information packed into such a small amount of time. The assistant is specifically concerned about limits in the receiver's

channel capcity

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

Toyota managers know that if they cut the price on its small sport utility vehicle, the RAV4, Honda and Ford follow suit with the prices on their small sport utility vehicles. Toyota managers rarely take this step, knowing that price cuts are unlikely to give them an advantage in a(n)

oligopoly

Fairmont Austin drops the price of a suite from $264 to $234 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ____ product.

prestige

Myrna is attending an Arbonne free facial event her friend Sam is putting on. After the free facial, Myrna agrees to buy some of the products she likes. Before she makes her payment, Sam gives her a form. The form says that if Myrna writes down the names and numbers of five friends that Sam can call, she will receive 10% off her next Arbonne purchase. At which stage is Sam in the personal selling process regarding the form she is asking Myrna to fill out?

prospecting

John is preparing to evaluate one of his sales representatives, Tessa. His evaluation of her performance for the prior year led to his conclusion that she often lacked key product information at sales presentations. At their upcoming session, he will most likely do which of the following?

recommend that she attend a training program

Catherine is out shopping with her friends for the day. While evaluating a decision to purchase a handbag, she says, "People notice when you buy the most expensive brand of a product." Catherine is most likely a _____ consumer.

status-conscious

Which of the following are the most important factors affecting the routing and scheduling of sales calls?

Geographic size and shape of a sales territory

Newspaper ads for Cody Pools offer discounted prices during October and discounted cleaning supplies for hot tubs in March. These are examples of which of the following uses of promotion?

reducing sales fluctuations

What should marketers do to promote the consistency and reliability of their services most effectively?

Train employees and develop standard procedures for dealing with customers

Which of the following statements is NOT true about training salespeople?

Training programs for new sales personnel are never more than two weeks long

Stores increasingly offer more merchandise on their websites than they stock in stores.

True

While traveling for their family vacation, the Browns realize they left their phone charger at home. They purchase a charger in the airport using their credit card, but never interact with a person. What type of retailing did this transaction most likely involve?

vending

If a retailer orders a quantity of merchandise to be delivered to his store in Albuquerque and is quoted a price that does not include shipping charges, the retailer is paying a(n) ____ price.

F.O.B. factory

The approach step is an important step for gathering information about a buyer's needs and objectives.

True

A direct-response information form found in a magazine advertisement that allows customers to send for more information has a primary objective of

identifying prospects

An important difference between for-profit and nonprofit marketing is that

the goals of the nonprofit organization differ from the goals of the for-profit organization.

Which of the following is the best example of the promotional objective of combating competitive promotional efforts?

After Ford promotes the towing capacity of its F-series trucks, Chrysler soon emphasizes the towing capacity of its Dodge trucks.

Which is the best example of noise that originates with the communications channel in the communication process?

Ellen can't load web pages to do research because her Wifi is down

Which of the following has a target market of consumers who live within two to three miles of its stores, or within a few minutes' walking or driving time?

Neighborhood shopping center

What type of discount is given to a business purchaser for performing activities such as transporting, storing, and selling?

Trade

You are the head of marketing for a major oil company based in the United States. Recently, your company was involved in a major oil spill off the coast of Alaska where millions of barrels of crude oil were accidentally released into the Gulf of Alaska. The negative publicity for your company has been fast and furious since the spill occurred. However, your company took a very proactive approach in managing the disaster and the resulting publicity. Now your CEO wants to assess how effective the company has been in repairing its image.

a public relations audit

The lush tropical plants and aquarium are part of the ____ of the Rain Forest Cafe.

atmospherics

Communication can be viewed as a circular process because

during feedback, the receiver can be viewed as the source of the message while the original source becomes the receiver.

Little Caesars is considering using magazine advertising. The company wants to reach as many people as possible, but due to budget constraints, Pizza Hut must reach consumers as efficiently as possible. What can Little Caesars use to evaluate various magazines?

a cost comparison indicator

In order to show consumers how well its blenders work and to stimulate sales, Vitamix often sets up temporary booths in stores where they have someone using the blender in a variety of ways. This is an example of

a demonstration

Red Bull sponsored Red Bull Stratos, a space-diving project in which skydiver Felix Baumgartner sky dived from the Earth's stratosphere. The move fit well with Red Bull's affiliation with extreme sports. This would best be an example of

buzz marketing

Ethan works as a salesperson at an auto dealership. His annual bonus has been calculated based on the volume of cars sold during the year. Next year, however, the calculation for the bonus will also include information from customer comments. The new bonus calculation is most likely designed to improve Ethan's

employee performance

Luis operates a store called Fleet Feet Sports, which sells running apparel, shoes, and accessories. Luis enjoys operating Fleet Feet Sports, especially because he has ready access to management expertise and promotional support. He was able to open Fleet Feet Sports with limited capital. However, there are disadvantages Luis faces as well. For him, one of the biggest disadvantages is that he does not have complete control over his operation. Fleet Feet Sports is most likely a

franchise

An ad's ____ is designed to attract readers' attention and develop interest so that they will read the entire advertisement.

headline

During which stage of the product life cycle is pioneer advertising most appropriate?

introduction

Hector Acosta 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

As their meeting concludes, Jacob rises and thanks Esme 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

Drop shippers

take title to but not physical possession of the goods.

Sellers using nonprice competition are not concerned with prices charged by competitors.

false

Dawkins Industries wants to hire an intermediary to help with the distribution of its products. Management needs an intermediary that will represent the company as sellers, but also wants to retain control over pricing and promotion decisions. It should most likely hire a

manufacturers' agent

Shazad owns Changez, a salon specializing in the unique hair needs of minority populations. Recently, Shazad has been trying to improve the quality of service received by his customers. However, he has experienced difficulty in finding ways to standardize and control the salon's quality of service. Shazad's problem illustrates which of the following unique features of service?

heterogeneity