MKT3050 Final

Research shows that one referral is as valuable as

12 cold calls.

If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?

2,000 units.

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

Advertising agencies

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 of the following is NOT an advantage of using coupons?

Because so many manufacturers offer them, consumers have learned not to buy without some incentive, whether that pertains to a coupon, a rebate, or a refund.

______ attempts to stimulate demand for a specific brand by promoting the brand's features, uses, and advantages, perhaps through direct or indirect comparison with rival brands.

Competitive advertising

____ refers to customers' ability to regulate the information they view and the rate and sequence of their exposure to that information.

Control

Coupons have questionable success as an incentive for consumers to try a new brand or product for all of the following reasons except

Coupons reward current product users, win back former users, and encourage purchases in larger quantities.

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

Digital marketing

Which of the following occurs when consumers are communicating through word-of-mouth interactions to promote a product or company?

Earned media.

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

Electronic marketing.

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

False.

Advertisements that promote goods and services are called advocacy advertisements.

False.

Digital media refers to a marketing strategy that engages in the strategic process of distributing, promoting, and pricing products, and discovering consumer desires through social networks.

False.

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

False.

E-marketing includes the use of mobile phones, but not digital outdoor marketing devices.

False.

Earned media is not controllable like advertising.

False.

Following up involves listening to a customer's response after finishing the presentation and overcoming those objections.

False.

Organizational goals have little to do with pricing decisions.

False.

Predatory pricing involves having the ability to set prices so excessively high that only the highest income consumers can afford them. ​

False.

Pricing whereby the buyer absorbs all or part of the freight costs is freight absorption pricing.

False.

Promotion that focuses on creating awareness is only important when introducing a new product to the market.

False.

Which of the following is the best example of native advertising?

Fidelity Investments sponsors an article on the Forbes website that discusses whether to accept an employer's buyout offer.

Refer to Scenario 11.1. Lindsey has heard of Megabus and is now searching the website of Megabus.com for the schedule and fares of a trip between Buffalo, New York, and New York City. Lindsey is most likely in which of the following stages of the product adoption process?

Interest.

GlaxoSmithKline wants to price its newest medication product so that it earns a 35% return on investment. It chose this pricing objective because of the significant amount of resources it spent on research and development. What is one challenge of using return on investment as a pricing strategy?

It typically involves trial and error.

_______________ is digital advertising that matches the appearance and purpose of the content in which it is embedded.

Native advertising

____ are audio or video files that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers.

Podcasts

Brews and 'Cue is a bar with a country and western atmosphere. In addition to the bar, Brews and 'Cue sells barbecue meats, sandwiches, and meals. Woody, the owner of the business, has recently implemented temporary price reductions through clearance sales, discounts, and nightly drink specials. What is Woody most likely trying to do?

Raise cash quickly.

____ are offers of cash to customers who purchase a specific product, and ____ are offers of cash to customers who purchase a specific quantity of a specific product.

Rebates; money refunds

Which of the following issues is least important in using co-branding effectively?

The brands involved should be owned by different companies.

"The people who are in-the-know" are the early adopters.

True.

A communications channel is the vehicle used to transmit the coded message from the source to the receiver.

True.

A generic brand indicates only the product category.

True.

A seller can change prices quickly in a price-competition situation.

True.

A smart watch is an example of a type of digital media channel.

True.

Advertising is paid nonpersonal communication transmitted through mass media.

True.

Advertising objectives should be stated in clear, precise, and measurable terms.

True.

Amazon.com, eBay, Zappos, and a number of other companies engage in e-tailing through their websites.

True.

Costs are a major issue when establishing price.

True.

Demand for a product category rather than for a specific brand is called primary demand.

True.

Digital connections give consumers more control over pricing because it enables them to price compare and search for the lowest deals.

True.

Digital marketing uses all digital media to develop communication and exchanges with customers.

True.

Electronic marketing strategy and digital marketing strategy are often used interchangeably, but there are differences between them.

True.

Nonprice competition can be used to establish brand loyalty.

True.

Normally, if an advertising agency contracts for $200,000 of television time, it would receive a commission of $30,000 from the television station.

True.

Promotion can assist salespeople in finding likely sales prospects.

True.

Promotion decreases in importance during a product's decline stage.

True.

Public relations is a broad set of communication efforts used to create and maintain favorable relationships between the organizations and its stakeholders.

True.

Rejection can occur at the trial stage of the product adoption process. ​

True.

The fact that a gas station in Texas pays less for fuel than a gas station in Maine from a producer in Louisiana suggests that refineries are using which of the following pricing methods?

Zone pricing.

Advertising agencies typically receive

a 15% commission paid by the media from which it makes purchases.

Roomba is the ____ of the robotic vacuum cleaner made by iRobot.

brand name

If Glade, which markets Glade scented PlugIns and Glade scented candles and wax melts were to introduce Glade laundry detergent and dryer sheets with the same scents, this would be called ____ branding.

brand-extension

Brands that are promoted through comparative advertising are most likely to be

brands that are attempting to compete with market leaders.

If used on an ongoing basis, _____________ can reduce the price for customers who would buy at the regular price and may also cheapen a product's image.

cents-off offers

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

closing

Radio and television signals as well as ink on the paper of a magazine or newspaper are all considered

communication channels.

When Subaru's advertising campaign mentions the Subaru Forester being named a 2018 IIHS Top Safety Pick, it is using _______ advertising.

competitive

Frito-Lay entices consumers to its websites through contests and games, but it cannot force people to visit its websites due to the ____ characteristic of online media.

control

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.

The percentage change in quantity demanded caused by a percentage change in price is much greater for products with

elastic demand.

Claudia, a marketer at the local zoo, has been using digital media to promote new exhibits and events. Claudia finds that digital media is a good way to promote events when the zoo does not have a large promotional budget. At the moment, Claudia is working on a strategic process for developing a(n) _________________ for a sustainable seafood event the zoo is holding for its members, most of whom are very active on the zoo's Facebook page. She decides Facebook is the appropriate social media channel she wants to use to reach consumers. Claudia determines the appropriate pricing for the event as well as the best way to distribute and promote the event through its Facebook page. To promote the event more successfully, she is also going to look at past Facebook poll results, member postings, and responses to corporate messages to determine what its members would truly desire to get out of the event. Claudia plans to incorporate this into the digital promotion she will release for the upcoming event through Facebook.

electronic marketing strategy

Personal selling is used most commonly in the B2B market as well as in the B2C market for

high-end products.

The first stage in the development of any advertising campaign is

identifying the advertising target audience.

Head nodding, winking, hand gestures, and arm motions are all forms of ____ communication.

kinesic

Channel capacity is determined by the

least efficient component of the communication process.

General Mill's Honey Nut Cheerios, a ____ brand, is likely to be found on the shelf next to Honey Nut Toasted Oats, a ____ brand that has very similar coloring and styling for its package.

manufacturer; private

Global marketers such as Alibaba have embraced technology that enables them to form better relationships and communicate with customers. One of the benefits of e-marketing that Alibaba enjoys is that

marketers and customers can share information.

The producers of Gillette razor blades use a marketing strategy that includes large advertising expenditures and more price flexibility for the various types of blades offered. Based on this example, razor blades are in the ____ stage of the product life cycle.

maturity

Recognition and recall tests are posttest methods based on

memory.

Collin travels around to various established customers to see what new office supplies they need. His customers have come to depend on him to check their supplies. Collin is part of the

outside sales force.

Carina's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Carina would best be classified as a(n)

outside salesperson.

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

personal selling.

Aaron Mahnke is the host of Lore, which posts true life scary stories biweekly. Users love Lore because they enjoy listening to scary stories. Marketers like Lore because they can sponsor content and become affiliated with this popular show. Users can access Lore by going onto the site and accessing the audio content, or they can subscribe through Stitcher and receive new content automatically. Lore is most likely a

podcast.

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

price competition.

When Texas Instruments first introduced its line of graphing calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy initially used by Texas Instruments is called

price skimming.

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of

product price.

If Kate Spade offers to reduce the price of its women's handbags when retailers buy more than 100 pieces, the designer is offering a ____ discount.

quantity

The cost of ____ is usually substantially lower than the cost of ____.

retaining existing customers; acquiring new customers

The purpose of ______ discounts is to help the seller maintain steady production throughout the year.

seasonal

Organizations that opt to set ______ run the risk of de-emphasizing price as a competitive tool, potentially leading to a climate of nonprice competition, like that in which professionals such as accountants and attorneys often operate.

status quo objectives

Running a big sale in order to generate enough cash to pay creditors can occur in a situation in which a firm's primary pricing objective is

survival.

A support salesperson who usually advises customers on product characteristics and application, system design, and installation procedures is a(n)

technical salesperson.

Dan leads his company's clients through the installation procedure of their new industrial equipment. He also helps answer their questions about product characteristics and system design both before and after their purchases. Dan is a

technical salesperson.

The process of putting one's thoughts (meaning) into signs (symbols) is called

the coding process.

Consumers are changing ____ and consumption behaviors to fit with emerging technologies and trends.

their information searches

The Hawkins Candy Company is a small business located in the northeastern United States. The owner of Hawkins Candy is calculating the projected costs for the coming year. There is rent for the building; salaries for the retail employees; raw materials of sugar, chocolate, and other ingredients; wrappers for packaging of individual pieces of candy; boxes; and radio advertising. Hawkins' ______ are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers.

variable costs

The amount of profit a channel member expects depends on

what the intermediary could earn if it were handling a competing product instead.

Samsung provides users with the chance to download a weather ______________ onto its Galaxy S8 smartphone. Once downloaded, users can see current conditions, a local radar, a ten-day forecast, and tropical weather information if relevant.

widget

If a company increased its price from $100 to $120 and the quantity demanded fell by 40%, the price elasticity of demand for this product is

−2.