MKTG 330 Final Exam Study Guide

The protectionist strategy in which a company sells its exports to another country at a lower price than it sells the same product in its domestic market is referred to as

dumping

New product adopters that tend to conform to group norms and values and have closer ties to social groups and their communities are known as

early adopters

Nora is in the market for a new HD television. She has spent quite a bit of time gathering information and thinking about the purchase. She has asked her friends for opinions about the models they own and is happy that she has a wide variety of models from which to choose. Nora is most likely what type of adopter?

early majority

Southwest Airlines offered a summer sale in which it reduced its domestic flights by a small percentage. Because of this decrease in price, there was a significant increase in quantity demanded. This is an example of ________ demand.

elastic

Salespeople that work in territories guided by a ________ approach generally demonstrate specific item expertise.

product

When a consumer connects thoughts about a brand to memories about a brand, this is known as

brand associations

Which of the following groups comprises the traditional methods of non-store retailing?

kiosks, vending machines, direct selling, television home shopping

A customer's ________ allows a company to predict whether that customer will generate the most profit over a long period of time.

lifetime value (LTV)

Which data analysis tool allows firms to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers?

lifetime value analysis

This form of sales promotion is popular in the airline and hotel business.

loyalty programs

Successful branding consists of four key steps. What is the focus of delivering a quality product?

making sure the product provides value to the customers that will be using it

Whereas traditional advertising media offers _____; social media advertising offers _____.

one-way communication; two-way communication

Salespeople that work the field by traveling to potential or existing customers with the intent to sell is characteristic of which type of salesperson?

outside salesperson

Visible marketing influences on online purchasing behavior include paid display advertising, sponsorship, paid search, and

paid stories

Paid search is online advertising in which a company

pays to be a sponsored result of a customer's web search

When this component of brand equity is high, it usually results in higher sales prices and customer satisfaction.

perceived quality

A company that manufactures razors designs its products to function for about two years. The company gradually reduces the production of razor blades for the concerned product and develops an entirely new product to take over. The company prices the new product below the price of razor blades for the old product. The low supply and higher cost of razor blades for the old product compared to the new product forces consumers to buy the new product offered by the company. This scenario is an example of

planned obsolescence

If a company has a high bounce rate,

potential customers who click on its ad are only visiting the page they land on and then leaving the website.

The ________ step of the personal-selling process involves identifying key decision makers, reviewing account histories, identifying product needs, and preparing sales presentations.

pre-approach

Which of the following is an example of paid display advertising?

banner ad

A company will use _____ as a public relations tool because they allow individuals to share their thoughts and knowledge with the public.

blogs

Everyone recognizes the Apple ________ for its white packaging and bitten apple logo.

brand

A retailer that wants to ensure it maintains its brand across all retailing channels requires investment in

employees that can reflect the culture of a retail firm

Which of the following public relations tools most focuses on creating a positive association among consumers about what a company and its brand stand for?

event sponsorship

Social media objectives should be all of the following except

flexible

Which of the following terms are key to understanding how advertising fits into the promotional mix?

paid and nonpersonal

Which of the following is true of coupons?

Coupons are prone to fraud in the form of misredemption practices

A product's demand curve is directly related to a product's

price elasticity

which of the following statements accurately defines a product?

A product is the specific combination of goods, services, or ideas that a firm offers to its target market.

In the new product development process, what primary goal must a firm accomplish during Stage 5: Business Analysis?

Determine profitability

Closing a sale with a customer is the final step of the personal-selling process.

False

The promotion mix is all the activities that communicate the value of a product and persuade customers to buy it

False

In the context of new product development, which of the following actions by Farmel Inc., a pharmaceutical firm, is unethical?

Holding off on marketing a new and vastly improved cancer drug until it recovered investments on the existing drug

During which step in building an advertising campaign must marketers conduct research to determine to whom they should direct their advertising efforts?

Identify the target audience

Which of the following is true of co-branding?

If one brand receives negative publicity, it could impact the co-branding partner in a negative way

Which of the following statements best characterizes an off-price retailer?

It offers an inconsistent variety and assortment of branded products from an array of suppliers

Arnon is the marketing manager for Presenting Woodworks, a firm that designs and manufacturers wood benches, frames, and display tables for museums and art galleries. Because the firm has such a niche market, and has largely relied on word-of-mouth advertising, Arnon decides to launch a social media marketing campaign. The first thing he does is post images of both finished products and works-in-progress on Instagram. Next, he tweets out related product descriptions on Twitter. What will this social media marketing campaign do for Presenting Woodworks?

It will draw attention to the firm's products, maximize interest, and potentially bring in new clients

During which step in building an advertising campaign would marketers conduct a recognition test?

Measure the effectiveness of advertising

Which of the following exemplifies a characteristic of the Apple iPhone's core product component?

Overall benefits of the Apple iPhone include communication, information, and connection

which of the following would be a goal of a social media campaign?

Raise brand awareness

Which of the following statements describes the key advantage of paid advertising?

The purchaser decides how to present the message to the public

An advantage of paid advertising is that it helps marketers control how their message is encoded.

True

Companies interested in improving customer relationships often formalize the process by making customer relationship management a large part of their marketing strategy.

True

The stage of the product life cycle in which marketing costs rise due to competition as each firm tries to find ways to gain market share is the maturity stage.

True

The ultimate goal of CRM is to achieve customer satisfaction.

True

Traditional media relies on some form of programming or news to entice consumers to tune in at a specific time or to read specific content.

True

Price is the amount of money, time, or effort that

a buyer exchanges with a seller to obtain a product

Direct marketing media can be offline or digital. An example of offline media is

a local bank calling up customers to invite them to sign up for a new interest-free credit card.

Rational appeals typically focus on all of the following topics except

admiration

When features of a product are listed on the packaging, this gives consumers a way to compare the benefits of different, similar products. In this way, the packaging is serving to

advertise and promote the product it contains

Product claims made through the use of ________ cannot technically be proven false, so its use is considered legal.

advertising puffery

A collection of coordinated advertisements that share a single theme is called

an advertising campaign

A disadvantage of this type of PR tools is that due to its length, customers do not always make the effort to read through its entirety.

annual reports

Marketing channels within the supply chain are important because they

are intermediaries through which the flow of products travel

The ________ rate is the percentage of users who take a desired action, like making a purchase.

conversion

The measure of the quantity of purchase dollars each customer spends on the company's products is referred to as share of

customer

A company can determine the value of its CRM program by calculating its

customer equity ratio

A company uses a software program to capture and analyze consumer data to create and maintain customer profiles, including buying habits and purchasing patterns. It then uses this information to design individualized fulfillment strategies for its customers. The company is most likely engaged in

customer relationship management

The process by which companies get new customers, keep the customers they already have, and grow the business by increasing their share of customers' purchases is referred to as

customer relationship management

All of the following are the five categories of adopters for a new product except

delayed majority

One of the benefits of selling via a(n) ________ marketing channel is that it allows the seller to interact with consumers without going through an intermediary.

direct

Celeste is a company representative for Tastefully Simple. She holds parties at the homes of her family and friends where she demonstrates various uses for the company's products. Celeste works as a(n)

direct retailer

Firms can use all of the following metrics to measure the effectiveness of its public relations campaigns except

direct revenue

When a truck delivers produce from local farms to the markets where consumers can then purchase the produce, the produce is traveling

downstream

Products that take longer for consumers to see the benefits of or that do not have a good infrastructure in place to support them are called

high-learning products

What is the name of the promotional strategy that involves coordinating the various promotional mix elements to provide consumers with a clear and consistent message about a firm's products?

integrated marketing communications

Profit ________ is the amount a product sells for above the total cost of the product itself.

margin

Different factors can vary the overall cycle of a product's life. Those factors include a marketer's estimates of the length of a product's life, the product type, and the product's

marketing mix

What is the term used for the inbound movement and storage of materials in preparation for those materials to enter and flow through the manufacturing process?

materials management

The most common ethical issue in new-product development involves the Federal Trade Commission's definition of the term

new

A key characteristic of this pricing tactic is that it takes advantage of a basic human processing error that causes people to see a specific price as much lower than its nearest round number.

odd pricing

If a customer can shop from a retailer using their smartphone or desktop or by visiting a brick-and-mortar store, the store is engaging in

omnichannel retailing

Whereas traditional advertising media offers _____; social media advertising offers _____

one-way communication; two-way communication

Social media invites consumers to share feedback related to their perceptions of a product's value; this feedback impacts marketers' decisions related to the _____ element of the marketing mix.

price

If a firm sets prices high for a period of time after a product launches, and then decreases it over time for the purpose of increasing profits on each unit sold, it is focusing on a pricing objective known as

price skimming

The intersection of social media and the ____ element of the marketing mix means that customers can now enjoy direct delivery via social and mobile technology.

product

A distribution center functions much like a warehouse but performs additional activities. Which of the following is not one of the activities performed by a distribution center?

product removal

Although each public relations tool has its own role, all public relations tools generally serve the same function for a firm, which is to

promote a positive image and educate stakeholders about the firm's developments

Footage from a GoPro of a fireman trying to save a kitten was uploaded to YouTube and viewed 5 million times in one week. This tactic relates to which area of the marketing mix?

promotion

Amanda read an article that she found on Facebook about new workout trends. At the end of the article, she realized that it was actually sponsored by a company selling workout videos. This company effectively integrated social media into its marketing mix by utilizing a(n) _____ tactic known as _____.

promotional; native advertising

A disadvantage of the ________ strategy is that it can cause a firm to produce more inventory than is necessary to meet the consumer demand.

push

Banks and financial services that encourage people to think about their retirement planning often use ________ appeals to reach their target audience.

rational

Justine went to the specialty grocery store by her office after work. When looking at the offerings at the meat counter, she was surprised to see ground beef selling for $4.49/lb. At her normal grocery store, she can get the same quality beef for $3.29/lb., a price Justine feels is reasonable. $3.29/lb. for ground beef is Justine's

reference price

Unlike a sales structure built around independent sales representatives, one built around captive salespeople

resembles almost all other work environments where employees are "on a payroll."

In digital marketing, as compared to other types of marketing,

results can be easily measured.

A product labeled "new and improved" would fall within the category of a

revamped product

Which element of the promotional mix refers to the set of communication tools designed to stimulate quicker and more frequent purchases of a product?

sales promotion

Roland owns a sporting goods store in the Midwest. During the winter months, he prices his baseball and camping gear at reduced prices in hopes of selling the equipment year-round. This is an example of a(n)

seasonal discount

The difference between a wholesaler and a distributor is that a distributor

sells products for one manufacturer

A pet accessories company learns that people are buying more of its pet beds after featuring a series of videos showing kittens and puppies fast asleep and cuddling together in these beds. This finding is reflective of a(n)

sentiment analysis

Marketers will price certain products using prestige pricing as a way to promote an image of

superior quality and exclusivity

Useful as a temporary means of staying in business, ________ is the process of lowering prices to the point at which revenue just covers costs, allowing the business to endure a difficult time.

survival pricing

A company's choice of which social medium platform to use is driven by the

target market

Consumers will be more price sensitive when

the price they have to pay is more than they anticipated

All of the following are included among the "7 Rs" of logistics except

the right packaging

What is the aim of a public relations campaign?

to promote positive relations between a firm and its stakeholders

Managing ________ is one of the most important logistics function for retailers and every other member of the supply chain because it is essential to keep customers satisfied.

transportation

Scotts Fertilizer has a four-step program for lawn care. Each step features a different product. Scotts sells the fertilizer as a set containing one bag of each of the four-step products. If Scotts decided to sell each product individually rather than as a set, it would be an example of which pricing strategy?

unbundling

Marcelo is preparing a monthly report for his supervisor regarding plant operations. While Marcelo is happy to report that production increased by 20 percent this month, he needs to let his supervisor know that material charges, delivery costs and utilities to run the plant also increased significantly. These represent the plant's ________ costs.

variable