MKT 320 Summer 2021 Exam #2

Great Marketing Channel

Unintended secondary channel that often flow illegally obtained or counterfeit product toward customers

bar codes

Universal product codes (UPCs) are also known as _____ because the numerical codes appear as a series of thick and thin vertical lines.

can accommodate a broader range of customer demands.

Unlike off-price retailers, specialty shops:

Collectors (social media user)

Use RSS feeds to collect information and vote for websites online

False

Website metrics refer to clicks, click-through rates, and percentage of traffic. True/False

marketing department, business unit, corporation

When developing a new product strategy, you should link the new-product development process with the objectives of the:

Receivers

When marketers play the role of message _____ they develop and adapt messages and spot new communication opportunities

trialability

When predicting or explaining the rate of acceptance and diffusion of a new product, the degree to which it can be sampled on a limited basis is its ______.

Product advertising

Which form of advertising promotes the benefits of a specific good or service?

Informative promotion

Which form of promotion is most suitable to promote complex and technical products such as automobiles, computers, and investment services?

It allows companies to take advantage of cheaper labor and not have to contend with trade barriers and tariffs encountered and thus increases the demand for imported products worldwide.

Which is an advantage for companies that globalize their supply chains?

It is the amount of time between order placement and receipt of the customer's payment following order shipment.

Which of the following best defines the order-to-cash cycle?

It minimizes the order-to-cash cycle in a firm's order fulfillment process.

Which of the following describes third-party logistics company (3PL)?

Transacting sales without taking title to products it sells

Which of the following is NOT a function of the retailer?

Wide color capabilities

Which of the following is NOT an advantage of newspaper as an advertising media?

Although customers are on social media, they rarely think that a given brand is also there.

Which of the following is NOT true about an effective listening system?

Listen to customers.

Which of the following is the first stage in creating an effective social media plan?

Establish pricing goals.

Which of the following is the first step in the four-step process of setting the right price of a product?

A profit maximization objective may require a bigger initial investment than the firm can commit to or wants to commit to.

Which of the following is true of establishing pricing goals?

They may help differentiate a firm's product from the competition.

Which of the following is true of nontraditional channels?

The more standardized a product is, the longer its distribution channel can be and the greater the number of intermediaries that can be involved without driving up costs.

Which of the following is true when choosing a marketing channel?

Natural lighting, either from windows or skylights, can lead to increased sales.

Which of the following is widely believed to be true of the audio and visual factors creating a store's atmosphere?

They offer a nearly complete selection of merchandise within a single product category and use self-service, discount prices, high volume, and high turnover to their advantage.

Which of the following represents the thinking behind single-line specialty discount stores such as Foot Locker?

They sell items from a full-line discount stock to customers who are drawn in primarily by the food on sale.

Which of the following represents the thinking behind supercenters?

Postage stamp pricing is adopted when the marketing manager wants total costs to be equal for all purchasers of identical products.

Which of the following statements is true of geographic pricing for freight?

Chain store

Which retail operation is part of a group of the same stores owned and operated by a single organization?

Social media have drastically changed the advertising business from an industry based on mass-media models to one based on relationships and conversations.

Which statement correctly states the impact of social media on consumer behavior?

Interpersonal communication

Which term refers to direct, face-to-face communication between two or more people?

Encoding

With regards to the communication process, which term refers to the conversion of a sender's ideas and thoughts into a message, usually in the form of words or signs?

one-brand-name strategy

Yater's Inc. is a food and beverage company based in the United States. The company decides to market and sell its products in all European countries under the same brand name. In this scenario, Yater's Inc. has decided to use a(n) _____.

mass communication

Zee TV, a commercial television broadcast network, uses billboards, television, magazines, and newspaper advertising to create awareness about upcoming shows and to inform viewers about the new episodes of its existing shows. Zee TV uses _____ to promote its television programs.

Pioneering

_____ advertising is designed to stimulate primary demand for a new product or product category.

A warranty

_____ is a confirmation of the quality or performance of a good or service.

Product placement

_____ is a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product; on the Internet; or at special events.

Suggestion selling

_____ is a selling technique that seeks to broaden customers' original purchases with related items.

Price skimming

_____ works when there is strong demand for a good or service.

Gray marketing

______ channels are unintended secondary channel that often flow illegally obtained or counterfeit product toward customers.

Form

______ utility are the elements of the composition and appearance of a product that make it desirable.

demand-supply integration (DSI)

-Type of internal supply chain integration -Integrates the supply-management and demand-generating functions of an organization -Enhances customer satisfaction

3D printing

1) Rapid prototyping processes use systems that are low cost, small in size, fast, easy to use, and often suitable for an office environment. 2) Collective term for all rapid prototyping activities.

Product modification

a change in one or more of a product's characteristics.

Reverse Channel

a channel that enables customers to return products or components for reuse or remanufacture

strategic channel alliance

a cooperative agreement between business firms to use the other's already established distribution channel

competitive advertising

a form of advertising designed to influence demand for a specific brand

pioneering advertising

a form of advertising designed to stimulate primary demand for a new product or product category

Continuous media schedule

a media scheduling strategy in which advertising is run steadily throughout the advertising period; used for products in the later stages of the product life cycle

Seasonal media schedule

a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used

AIDA concept

a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message; the acronym stands for attention, interest, desire, and action

status quo pricing

a pricing objective that maintains existing prices or meets the competition's prices

independent retailer

a retailer owned by a single person or partnership and not operated as part of a larger retail institution

mom-and-pop store

a small store run by the proprietor with few or no hired assistants

convivence store

a small store, located near a residential area, that is open long hours seven days a week and carries a limited line of high turnover convivence goods

chain store

a store that is part of a group of the same stores owned and operated by a single organization

supply chain orientation

a system of management practices that are consistent with a "systems thinking" approach

Drop and Shop

a system used by several retailers that allow customers to bring used products for return or donation at the entrance of the store

Pulsing media schedule

advertising combines continuous scheduling with flighting

Flighted media schedule

advertising is run heavily every other month or every two weeks

factory outlet

bargain retailer owned by the manufacturer whose products it sells

Social Media Metrics

buzz, interest, participation, search engine, influence, sentiment analysis, web site metrics

comparitive advertising

compares two o more specifically named o shown competing brands on one or more specific attributes

Steps in Social Media Marketing Campaign

1. Identify strategy and goals 2. Target audience 3. Campaign: experiment and engage 4. Budget 5. Monitor and change

Owned

A brand's presence on social platforms is _____ media

Franchise

A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area

Sales oriented pricing

A category of pricing objectives that focus on increasing total amount of income from sales

profit oriented pricing

A category of pricing objectives that focus on profit for the business

releases a software update to fix the cell phone's overheating problem.

A cell phone manufacturing company is said to functionally modify one of its products if it:

advocacy advertising

A form of institutional advertising that is typically used to safeguard against negative consumer attitudes and to enhance the company's credibility among consumers who already favor the company's position is called ___________.

supermarket

A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products

The mobile simply wouldn't offer any discernible benefit compared to existing products.

A mobile telephone manufacturer markets a limited-edition cell phone model with 126 different functions. The campaign failed across all 50 states in the United States. Which of the following is the most likely reason?

True

A product category includes all brands that satisfy a particular type of need. True/False

Complexity

A product characteristic that impacts the rate of adoption is:

tangible goods services ideas

A product could be:

Interpersonal

A salesperson speaking directly with a customer is an example of _____ communication.

Elastic demand

A situation in which consumer demand is sensitive to changes in price is called:

elastic

A situation in which consumer response is sensitive to changes in price exhibits ______ demand.

The product's distributor

A source suggested to Rubbermaid the idea of the Sidekick, a litter-free lunch box. Rubbermaid could place some of its plastic containers inside a lunch box and sell the box as an alternative to plastic wrap and paper bags. The source saw this opportunity because of being closer to the consumers than the manufacturer was and, thus, more aware of customer needs. Which of the following was likely the source?

omni-channel marketing

creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping

action

AIDA stands for attention, interest, desire, and __________

flighted

A_____ media schedule is a strategy in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times.

sender

Advent Automobiles Inc. has launched a new sport utility vehicle (SUV). It's advertising firm develops a marketing message and places advertisements in leading newspapers and on social media sites to inform consumers about the new SUV and its various features. In the context of the communication process, Advent Automobiles is the _____.

True

Advertising can affect the way consumers rank a brand's attributes. True/False

Institutional Advertising

Advertising that promotes organizational images, ideas, and political issues

True

Advertising, public relations, and sales promotion are generally impersonal, one-way means of mass communication. True/False

price

Among the following, that which is given up in an exchange to acquire a good or service is known as ______.

False

Apps are software applications that run entirely within existing online platforms. True/False

False

As the product enters the maturity stage, prices generally begin to stabilize. True/False

price

At a local supermarket, Giada saw a box of plant fertilizer that retails at $25 but was marked down to $20.99. Given this information, $20.99 is the _____.

earned media

Based on a public relations or publicity model that gets customers talking about the brand

owned media

Based on brands becoming publishers of their own content in order to maximize the brand's value to customers

paid media

Based on the traditional ad model, whereby a brand pays for media space

price skimming

Because it denotes a high price relative to the prices of competing products, ______ is sometimes called a "market-plus" approach to pricing.

microblog

Blogs with strict post length limits are called ___________.

Profit

Brita LED (light emitting diode) lighting uses comparative advertising to emphasize the benefits of using LEDs over CFLs (cathode filament lamps). The advertisements emphasize that Brita's LEDs cost less than CFLs and other brands of LEDs, last longer, consume less energy, and need to be replaced less frequently than CFLs. In this scenario, which of the following advertising appeals is used in Brita's ads?

Offshoring Advantages

Cheap labor, production costs are lower.

Traditional Media

Communication that was well-established before the Internet age; books, newspapers, magazines, etc.

False

Customers are always skeptical about the reasons for retailer errors; however, their reactions to mistakes such as product stockouts and unexpectedly poor-quality products are limited to casual indifference. True/False

False

Daily Farm, a food and beverage manufacturing firm, is known for its unique variety of table sauces. To offer more variations to its customers, Daily Farm recently launched an olive and pepper sauce. According to new product development, this new sauce would be categorized as an improved product. True/False

Inactives (social media user)

Do none of these things

decide how much to charge for a product.

Firms that indulge in price fixing

True

Google+ Hangouts, a popular facet of the fledgling Google+ social network, allows individuals around the world to video chat in real time. True/False

sales after the cost of the goods sold is subtracted

Gross margin is how much the retailer makes as a percentage of ______.

Product lines

Groups of closely related product items are:

Discontinuous innovations

Hakimo Corp., a manufacturer of audio equipment, has developed a unique wireless speaker system that runs on solar power. The speakers can operate for 16 hours after being exposed to the sun for 2 hours. This product, which is radically different from anything available in the market, falls into which category of new products?

By choosing the right distribution channel

How can firms that provide services, such as hair salons and financial services, improve delivery of their services?

advertising

Impersonal, one-way mass communication about a product or organization that is paid for by a marketer is called ___________.

Flighted

In a _____ media schedule, advertising is run heavily every other month or every two weeks.

Facilitating

In channel functions performed by intermediaries, ______ functions are research and financing.

True

In the case of private brands, overhead is low and there are no marketing costs. True/False

Critics

In the categories of social media users, _________ post comments, ratings, and reviews of products and services on blogs and forums.

Compatibility

Incompatible products diffuse more slowly than compatible products

Exchanged utility

Increased value of a product that is created as its ownership is transferred

convience products

Inexpensive items that merit little shopping effort

False

Informative promotion typically becomes the main promotion goal when the product enters the growth stage of its life cycle. True/False

False

Insurance, burial plots, and similar items fall under the convenience product category. True/False

True

It really does not matter whether the product is "new to the world" or some other category of new product. If it is new to a potential adopter, it is an innovation in this context. True/False

provide a quick response to the customer using customer care software.

Kate is a customer care executive at a telecommunications service provider. She receives a complaint from a customer about an unnecessary $10 charge on his phone bill. If the company follows the customer service management process, Kate is most likely to:

Admiration

La Wear, a very expensive brand of clothing and accessories, promotes its products by appointing famous personalities as its brand ambassadors. Given this information, which of the following types of advertising appeals is used by La Wear?

Offshoring Disadvantages

Longer shipping lanes can expose shipments to natural disasters and extreme weathers Political instability and trade restrictions can halt or slow shipments

Joiners (social media user)

Maintain a social networking profile and visit other sites

True

Many drugstores also carry an extensive selection of cosmetics, health and beauty aids, seasonal merchandise, greeting cards, toys, and some non-refrigerated convenience foods. True/False

True

Marketers have found that social news sites are useful for creating conversations around relevant issues. True/False

Family branding

Marketing several different products under the same brand name is called:

Eliminate all nonessential marketing expenses and let sales decline.

NutriOats, an oatmeal cookie product, has been in the market for more than seven years and is now in its decline stage. In this case, which of the following strategies would be successful in marketing NutriOats?

Conversationalists (social media user)

People who post status updates on social networking sites and microblogging services

Trading up

Persuading customers to buy a higher-priced item than they originally intended to buy is called:

Critics (social media user)

Post comments, ratings, and reviews of products and services on blogs and forums

Critics

Posting comments and ratings and reviewing products and services on blogs and forums are activities of which category of social media users?

Its retailers convince consumers to buy Pride's products.

Pride Apparel is a firm that designs and manufactures women's clothing and accessories. It sells its merchandise to retailers without further involvement. Given this information, which of the following statements is true of Pride?

Creator (social media user)

Produce and share online content like blogs, websites, articles, and videos

Functional modification, Quality modification, Style modification

Product modification may refer to which of the following?

customer expectations for service vary greatly.

Providing great customer service is one of the most challenging elements in the retail mix because:

True

Push money is the money that manufacturers offer to channel intermediaries to encourage them to "push" products—that is, to encourage other members of the channel to sell their products. True/False

Spectator (social media user)

Read blogs, listen to podcasts, watch videos, and consume media

a measure of the firm's effectiveness in generating profits with the available assets.

Return on investment (ROI) for a firm is

True

Sales promotion's greatest strength is in creating strong desire and purchase intent. True/False

Inelsatic demand

Situation in which an increase or a decrease in price will not significantly affect the demand for a product

elastic demand

Situation in which consumer demand is sensitive to changes in price

False

Social commerce sites combine basic elements of e-commerce without the overwhelming distraction of social online media. True/False

False

Specialty products normally require wide distribution to sell sufficient quantities to meet profit goals. True/False

offer lower prices for customers and lead to greater customer satisfaction

Supply chain analytics programs have many objectives that, if realized, would ______.

as long as that of the product form

The PLC for a brand that was the first and last competitor in a product form market is ______.

Trialability

The degree to which a product can be tried on a limited basis

Observability

The degree to which the benefits or other results of using the products can be observed by others and communicated to target customers

screening

The first filter in the product development process is:

Complexity

The more complex the product, the slower is its diffusion

Predatory pricing

The practice of charging a very low price for a product with an intent to drive competitors out of business or out of a market is called:

Big data analytics

The process of discovering patterns in large data sets for the purposes of extracting knowledge and understanding human behavior is called:

Online retailing (e-tailing)

The retailing of goods online

True

The three most important functions of packaging are to contain and protect products; promote products; and facilitate the storage, use, and convenience of products. True/False

screening

To rate concept (or product) alternatives, concept tests are often used at the ______ stage.

product life cycle

introduction, growth, maturity, decline

non-traditional channels

non-physical (often electronic) channels that facilitate the unique market access of products and services

Retailing Mix (6 P's)

product, place, promotion, price, presentation, personnel

Direct marketing

sales and promotional techniques that deliver promotional materials individually

multichannel marketing

the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online

Promotional Mix

the combination of promotional tools—including advertising, public relations, personal selling, sales promotion, and social media—used to reach the target market and fulfill the organization's overall goals

Form Utility

the elements of the composition and appearance of a product that make it desirable

Time Utility

the increase in customer satisfaction gained by making a good or service available at the appropriate time

order to cash cycle

the length of time it takes an organization to receive payment for an order

Direct retailing

the selling of products by representatives who work door-to-door, office-to-office, or at home sales parties

Automatic vending

the use of machines to offer goods for sale

dual channels

the use of two or more channels to distribute the same product to target markets

place utility

the usefulness of a good or service as a function of the location at which it is made available

product line extensions

•Adding additional products to an existing product line

product mix

•All products that an organization sells

Specialty Products

•Particular items for which consumers search extensively and are reluctant to accept substitutes

diffusion of innovation

•Process by which the adoption of an innovation spreads

Unsought

•Products unknown to the potential buyer or known products that the buyer does not actively seek

Shopping products

•Require comparison shopping •More expensive and found in fewer stores

Product line depth

•is the number of product items in a product line.