MKT 305 Chapter 9,10,12

Selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business is an illegal practice called _______.

predatory pricing

Over the years, U.S. air carriers have been accused numerous times of collusion when setting prices. This illegal practice is called _______.

price fixing

Many of Smashburger's competitors combine a burger, fries, and a drink offered at a reduced "combo" price. This practice is known as __________.

product bundle pricing

The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships

promotion mix / marketing communication mix

A retailer temporarily prices a few select items below cost to create excitement and pull consumers into the store. This is an example of _________ pricing.

promotional

When setting channel objectives, companies should state the objectives in terms of ______.

targeted levels of customer service

Channels often involve long-term commitments and companies have many alternatives. What type of criteria should be used if the company wants to keep the channel flexible so that it can respond to environmental changes?

Adaptability criteria

Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?

Administered VMS

How many outlets should we have?

Channel Width

multimodal transportation

Combining two or more modes of transportation Piggyback, fishyback, trainship, and airtruck

Which of the following is an example of horizontal channel conflict?

A Ford dealer complaining that another Ford dealer is advertising in its territory.

What is the most common type of a contractual VMS?

A franchise

What is a Marketing Channel?

A set of interdependent organizations that help make a product or services avaliable for use or consumption by the consumer or buisness user.

What is the first step in marketing channel design?

Analyzing consumer needs.

Which of the following is a cost-oriented pricing approach?

Breakeven pricing

The number of links or intermediaries in the channel. The longer the channel wider the coverage. the

Channel Length

One reason integrated marketing communications is necessary is​ __________.

Consumers don't distinguish between content sources the way marketers do

Which of the following statements is correct regarding the use of advertising as a promotional​ tool?

Consumers tend to view advertised products as more legitimate.

Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels

Content marketing

Logos, stationery,​ brochures, signs, business​ forms, business​ cards, buildings,​ uniforms, and company cars and trucks are examples of which promotional​ tool?Logos, stationery,​ brochures, signs, business​ forms, business​ cards, buildings,​ uniforms, and company cars and trucks are examples of which promotional​ tool?

Corporate identity materials

What are the two major elements in developing advertising​ strategy?

Creating advertising messages and selecting advertising media

Which of the following statements is true regarding oligopolistic competition?

Each seller is alert and responsive to competitors' pricing strategies and marketing moves

the Producer of the product gives only a limited number of dealers the exclusive right to distribute their products.

Exclusive distribution.

What do members of the marketing channel do?

Gather Infromation, Promotions, Contact, matching, Negotiation, Physical distribution, Financing, and Risk taking

Sadie's Restaurant has listened to its customers over the years and is now able to offer the right combination of quality and good service at a fair price. Which pricing strategy is Sadie's using?

Good-value pricing

When members at the same level in a channel join together. which acquires others to strengthen the market. Or when a producer buys another producer

Horizontal intergration

when Michael Kors bought Versace.

Horizontal intergration.

Which of the following is true regarding the price-demand relationship?

If demand is elastic, sellers will consider lowering their price.

Moving products and materials from suppliers to the factory is known as ________ logistics.

Inbound logistics

What is another name for Marketing logistics?

Physical Distrbution

4 traditional promotional mix

Product/ service,

Specific promotional tools used in​ _______ include press​ releases, sponsorships,​ events, and web pages.

Public Relations

What do you consider when designing a channel

Tkjbhe Channel Length, Channel Width, Market Coverage, and Dual Distribution.

What is the purpose of the promotion mix ?

To deliver a clear and compelling message from the company or brand.

New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?

Value-added pricing

Under which type of system does the customer share real-time data on sales and current inventory levels with the supplier, and the supplier then takes full responsibility for managing inventories and deliveries?

Vendor-managed inventory

Two or more levels combined under the management of one firm. Occurs when a company acquires a firm at another stage in the channel

Vertical Intergration.

what Marketing channel is managed by a single channel member to achieve efficient, low-cost distribution, that is aimed at Satisfying the target customer.

Vertical Marketing System

indirect marketing channel

a marketing channel containing one or more intermediary levels

According to Ms. Bena​ Shaw, OXO's Senior Brand Communications​ Manager, OXO's early growth was fueled primarily by increasing both product categories and the number of retailers with which it dealt.​ Accordingly, its promotions mix and marketing communications strategies were aimed at getting retailers to carry more of its products. This approach is called​ __________. A. personal selling B. a pull strategy C. a promotional mix strategy D. integrated marketing communications E. a push strategy

a push strategy

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________.

advertising

Margaret has been invited to a fancy dinner party and wants to bring a good bottle of wine as a gift for the host. Since she does not know much about wine, she will likely use the price of the wines as ________.

an indicator of quality

Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing.

captive-product

setting the promotion budget to match competitors outlays

competitive-parity method

A(n) _____ is made up of one or more independent producers, wholesalers, retailers, and consumers.

conventional distribution channel

Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________.

corporate VMS

engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

direct and digital marketing

Online marketers taking business from traditional brick-and-mortar retailers is an example of _____.

disintermediation

Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations.

dynamic pricing

carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products

integrated marketing communications

Producers of convenience products typically use ______ distribution.

intensive

a strategy in which they stock their products in as many outlets as possible .

intensive distribution

Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using?

location-based pricing

A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?

market-penetration pricing

When Apple Computer Company introduced its iPhone, its priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a ___________________ new product pricing strategy.

market-skimming

One key function performed by channel members is ___________, or shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging.

matching

A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.

optional-product

moving products from the factory to resellers and ultimately to customers

outbound logistics

Companies today see channel members as first-line customers and practice strong ________.

partner relationship management

personal customer interactions by the firm's sales force for the purpose of making sales and building customer relationships

personal selling

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

public relations (PR)

Smashburger is seeking to attract customers who eat out at casual dining restaurants, like P.F. Chang's and Applebee's. The average ticket price for customers at these restaurants is $13. For these customers, $13 is a __________ in considering the relative value of Smashburger's offerings.

reference price

Reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers is known as ________.

reverse logistics

Short-term incentives to encourage the purchase or sale of a product or service

sales promotion

the use of more than one but fewer than all of the intermediaries who are willing to carry a company's product

selective distribution.

Internal factors that affect pricing include ________.

the company's overall marketing strategy, objectives, and marketing mix

The length of a channel is indicated by ___________.

the number of intermediary levels

in the​ video, Ms. Shah emphasizes that​ OXO's primary advertising goals involve increasing depth and breadth of brand awareness. As​ such, the primary purpose of​ OXO's brand communications efforts is​ __________. A. to motivate B. to persuade C. to remind D. to compare E. to inform

to inform

A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system

value delivery network

According to the video, by offering an a la carte menu, premium ingredients, and gourmet side dishes, Smashburger is able to extract a price premium from its loyal customers. This type of pricing approach is referred to as __________ pricing.

value-added

Major Logistics Functions are?

warehousing, inventory management, transportation, logistics information management

What are the four major functions of logistics?

warehousing, inventory management, transportation, logistics information management

One major objective associated with a market-penetration pricing strategy is to ________.

win a large market share

________ refers to setting price based on buyers' perception of value rather than on the seller's cost.

Customer value-based pricing

What Logistic starts with the marketplace and works backwards to the factory or even to the source of supply

Customer-centered logistic

Which of the following statements is true regarding initiating price cuts?

Cutting prices in an industry loaded with excess capacity may lead to price wars.

Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations​ function?

Development

What is a another name for Marketing Channel

Distruibution channel

Appeals to different segments and has diversity of product offerings.

Dual Distribution.

Which advertising objective is used heavily when introducing a new product​ category?

Informative

The Number of marketing intermediaries strategies.

Intensive distribution Exclusive distribution Selective distribution

What are some logistic functions ?

Marketing/Physical, Customer-centered, Inbound, outbound and reverse logistics.

When advertisers determine the qualitative value of message exposure through a given​ medium, they are assessing​ ________.

Media Impact

Setting the promotion budget at a certain percentage of current or forecasted sales or as a % of the unit sales price

Percentage of sales method

Which advertising objective is best suited to building selective​ demand?

Persuasive

The public relations function of​ _______ is used to build and maintain national or local community relationships.

Public affairs

Which of the following is a potentially effective action a company could take in response to a competitor's price cut?

Reduce price.

________ advertising is utilized most often by​ mature, well-known brands.

Reminder

_______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers.

Reverse logistics

________ is a​ short-term incentive to encourage the purchase or sale of a product or service.

Sales Promotion

Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers is known as ________.

Supply Chain Management

Advertising appeals should have three characteristics. These characteristics​ are:

To be meaningful to be believable, and to be distinctive.

What is the goal of a pull​ strategy?

To build consumer demand

What is the goal of integrated marketing​ communications?

To deliver clear, consistent, and compelling messages about the organization and its brands.

Which of the following statements is true regarding initiating price increases?

Where it is possible, the company should consider ways to meet higher costs or demand without raising prices.

Generally, _________ is a​ company's most expensive promotional tool.

Personal Selling

UPS charges different prices for shipping depending on an item's destination. The more distant the city the package is being shipped to, the higher the price UPS charges. Which geographic pricing method is UPS using?

Zone pricing

Which promotional tool is best suited to deliver a personalized and immediate message to a specific customer or customer​ community?

Direct Marketing channel

In an effort to build awareness of its​ brand, OXO has built a Facebook following of more than​ 75,000 fans, it engages with its customers via​ Twitter, and it maintains an active blogger outreach program. The company also advertises regularly on​ food-related websites like FoodNetwork.com. Building awareness to build primary demand is used for which advertising​ objective? A. Informative B. Reminder C. Attack D. Comparative E. Persuasive

Informative

Full-line forcing is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. Which of the following statements is true regarding full-line forcing?

It may or may not be legal.

How much of the market should be covered or exposed by a product or service.

Market Coverage.

Which of the following is a reason that producers use marketing channels and channel intermediaries?

Marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers.

what involves planning, implementing and controlling the physical flow of goods, services and related information from points of origin to points of consumption to meet customer requirements at a profit.

Marketing logistics / Physical distribution

Channel Members?

Middlemen, Resellers, Wholesalers, Retailers, Industrial distributors, Dealers, Brokers and Agents.

Developing the promotion budget by defining a specific promotion objectives, determining the tasks needed to achieve these objectives and estimating the cost of performing these tasks. The sum of these task is the promotion budget.

Objectives and task method

One popular method of branded entertainment is​ ________, which embeds brands as props within other​ programming, for​ example, television shows and movies.

Product Placement

A promotion strategy that calls for spending a lot consumer advertising and promotion to induce final consumer to buy the product, creating a demand ( Rihanna adv. universal red lippy)

Pull Strategy

A promotion strategy that calls for using the sales of force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers

Push strategy

Companies who primarily direct their promotional activities to channel members are using​ a(n) ______

Push strategy.

Which technology could one day make the entire supply chain intelligent and automated?

Radio frequency identification

The​ _____________ message execution style shows one or more​ "typical" people using the product in a normal setting.

Slice of life

Which of the following statements about public relations is​ correct?

The lines between advertising and public relations are becoming more and more blurred.

Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10). This is an example of _______ pricing.

product line

A key element of Smashburger's pricing strategy is determining price steps between its quarter-pound, one-third pound, and half-pound hamburgers. The practice of setting prices for different products offered by a company within a single category is known as __________.

product line pricing

In the promotion​ mix, ________ refers to any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor.

Advertising

The dollar and other resources allocated to a product or a company advertising program

Advertising budget

Which of the following describes a just-in-time logistics system?

Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.

what is the marketing communication / promotion mx

Advertising, Sales Promotion, Personal selling, Public Relations, Direct and digital marketing

setting the promotion budget at the level management thinks the company can afford

Affordable Method

Specific promotional tools used in​ ______ include direct​ mail, catalogs, online and social​ media, mobile​ marketing, and more.

Direct and digital marketing

Which promotional tool engages directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer​ relationships?

Direct and digital marketing

to inform OXO offers a satisfaction guarantee on all of its products, the details of which are included on all of its packaging. More​ recently, the company has also utilized social media platforms like Facebook and Twitter to send a​ clear, compelling message about its guarantee program to customers. This best depicts which of the following​ concepts? A. Sales promotion B. Push strategy C. Digital marketing D. Integrated marketing communications E. Advertising strategy

Integrated marketing communications

marketing intermediaries

Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C).

Although traditional media channels offer greater consumer​ reach, generating desired sales effects might require repeated exposures. OXO management believes it is hard to justify the higher costs of channels such as print and television commercials to reach consumers effectively. This example best illustrates which of the following​ concepts? A. Return on advertising investment B. Advertising budgeting C. Push strategy D. Integrated marketing communications E. Advertising strategy

Return on advertising investmentF

Which of the following statements regarding the changing communications landscape is​ correct?

The dominance of television, magazines, newspapers and other traditional mass media is declining.

Smashburger is investigating adding a half-pound burger to the menu at a lower price point. It has performed market-pricing experiments, with the new burger listed at either $4.29 or $3.99. The company has found little change in sales at the lower price. Based upon this finding, one could say that demand for the new burger is ___________.

price inelastic

The Ford Mustang is offered in several different models. Ford will use __________ pricing to determine the price steps between the different models.

product line

Which channel partners n a company's supply chain are upstream from a manufacturer or producer?

suppliers

Geared2Beer, a craft beer brand, identifies a market segment that is willing to pay premium prices for its craft beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The company's pricing approach is referred to as

target costing

What is integrated marketing communications?

the company carefully intergrates and coordinates its many communication channels to deliver a clear and consistent and compelling message about the organization and its brands.