MKTG Final Exam (7,8,9,10,12)

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Which of the following is true of RFID or "smart tag" technology?

"Smart shelves" can tell when it is time to reorder and can place orders automatically.

Suppose consumers' willingness to pay is $200. Price at:

$200

124. Chris Stemen, the owner of an independent gift store, is developing an advertising budget. Chris has totaled his company's revenues and deducted operating expenses and capital outlays. He intends to use a percentage of the remaining funds for advertising. Which budget setting method is Chris using? a. affordable method b. integrated method c. percentage-of-sales method d. competitive-parity method e. objective-and-task method

(a; p. 360; Moderate) {AACSB: Reflective Thinking}

132. You receive a report that says the 68% of your target market had been exposed to your ad campaign during a given period of time. This is an example of ________. a. reach b. frequency c. impact d. engagement e. qualitative value

(a; p. 367; Easy) {AACSB: Reflective Thinking}

134. Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and state-wide media with information about community events and charity fundraisers sponsored by her company. This is an example of the ________ function of public relations. a. press relations b. product publicity c. public affairs d. lobbying e. development

(a; p. 375; Easy) {AACSB: Reflective Thinking}

127. An ad for Mongoose mountain bikes shows a serious biker traversing remote and rugged but beautiful terrain and states, "There are places that are so awesome and so killer that you'd like to tell the whole world about them. But please, don't." This ad uses the ________ execution style. a. slice of life b. lifestyle c. fantasy d. scientific evidence e. personality symbol

(b; p. 363; Moderate) {AACSB: Reflective Thinking}

130. Apple recently ran ads featuring real people who had switched from Microsoft Windows-based PCs to Macs. When companies use people, actors, or sports celebrities as product endorsers, what kind of execution style is being used? a. personality symbol b. testimonial evidence c. scientific evidence d. lifestyle e. fantasy

(b; p. 366; Moderate) {AACSB: Reflective Thinking}

131. Mike's Bike Shop's readers will notice which of the following first in its new print advertisement? a. headline b. illustration c. copy d. subheadlines e. color

(b; p. 366; Moderate) {AACSB: Reflective Thinking}

125. Ideally, Modern Tool & Die Company's advertising message strategy will follow directly from the company's ________ strategy. a. objective b. cash refund c. broader positioning d. patronage reward e. operational

(c; p. 363; Moderate) {AACSB: Reflective Thinking}

128. When Taco Bell uses a Chihuahua, a small dog, to represent its product, which type of execution style is being used? a. mood or image b. fantasy c. personality symbol d. technical expertise e. musical

(c; p. 365; Easy) {AACSB: Reflective Thinking}

123. Expensive Coca-Cola television ads that build and maintain the brand are a type of ________. a. informative advertising b. comparative advertising c. persuasive advertising d. reminder advertising e. institutional advertising

(d; p. 359; Moderate) {AACSB: Reflective Thinking}

133. You are looking to advertise your new product, and you want good mass-marketing coverage and low cost per exposure. You should go with ________ as your advertising media. a. newspaper b. radio c. outdoor d. television e. direct mail

(d; p. 368; Challenging) {AACSB: Analytic Thinking}

126. In its advertisements, Timex promotes its affordable and sturdy watches. Fossil emphasizes style and fashion in its advertisements, while Rolex stresses luxury and status. These are all examples of ________ appeals. a. creative b. meaningful c. believable d. entertainment e. distinctive

(e; p. 363; Moderate) {AACSB: Reflective Thinking}

129. When Maxwell House shows one of its buyers carefully selecting coffee beans, which type of execution style is being used? a. mood or image b. fantasy c. personality symbol d. musical e. technical expertise

(e; p. 365; Moderate) {AACSB: Reflective Thinking}

135. The public relations department at a manufacturer of a variety of technological devices has been charged with developing inexpensive methods of building and maintaining brand awareness and excitement. To begin with, the public relations department has recruited consumers who are early adopters of technological devices to spread the word about the company's new products. This is an example of the public relations tool of ________. a. public service activities b. special events c. audiovisual materials d. corporate identity marketing e. buzz marketing

(e; p. 377; Easy) {AACSB: Reflective Thinking}

Products and Services fall into TWO broad classes based on the types of consumers that use them:

- Consumer Products - Business Products - products also include other marketable entities such as experiences, organizations, persons, places, and ideas

4 Services

- Intangibility - Inseparability - Variability - Perishability

Service Marketing also requires:

- Internal Marketing - Interactive Marketing

Major Brand Strategy Decisions involve:

- brand positioning - brand name selection - brand sponsorship - brand development

Marketing mix planning begins with:

- building an offering that brings value to target customers - the offering becomes the basis on which the company builds profitable customer relationships

Capital Items include: (business products)

- business products that aid in the buyer's production or operations, including installations and accessory equipment - installations consist of major purchases such as buildings (factories, offices) and fixed equipment (generators, drill presses, elevators, etc.)

Consumer Products Include:

- convenience products - shopping products - specialty products - unsought products

To differentiate their offers, beyond simply making products and delivering services, they are:

- creating and managing customer EXPERIENCES with their brands or company

Product planners need to think about products and services on three levels:

- each level adds more customer value - CORE CUSTOMER VALUE - ACTUAL PRODUCT - AUGMENTED PRODUCT

When developing products, marketers must first:

- identify the CORE CUSTOMER VALUE that consumers seek from the product - they must then design the ACTUAL product and find ways to AUGMENT it to create this customer value and the most satisfying customer experience

Brand Positioning

- marketers need to position their brands clearly in the target customers' minds. - they can position brands at any of three levels - at the lowest level: - PRODUCT ATTRIBUTES. (fluid absorbtion, fit, disposability) - BENEFITS (containment, skin-health benefits from dryness) - BELIEFS AND VALUES (strongest brands - emotional) - attributes - benefits - beliefs and values

What is the key element in the overall Market Offering?

- products

Materials and Parts include: (business products)

- raw materials and manufactured materials and parts

Pure Tangible Good

- such as soap, toothpaste, or salt - no services accompany the product

Product Line Length

- the major product line decision - the number of items in the product line

Pure Services

- the market offer consists primarily of a service - ex. a doctor's exam or financial services

Core Customer Value

- the most basic level which addresses the question "What is the buyer really buying?"

Service Variability

- the quality of services may vary greatly depending on who provides them and when, where, and how. ex. some hotels have reputations for providing better service than others, but also one employee will be cheerful and efficient whereas another standing just feet away may be unpleasant and slow

Actual Product

- the second level that product planners must turn the core benefit into - need to develop product and service features, design, a quality level, a brand name, and packaging. eg. Blackberry = actual product

Augmented Product

- third level that product planners must build around the core benefit and actual product by offering additional consumer services and benefits eg. Blackberry more than just a communication device - provides consumers with a complete solution to mobile connectivity problems

Pricing Factors

-Price Ceiling and price floor -Marketing strategies, objectives, and mix -Nature of the market and demand -Competitors strategies and prices

Brand Name Selection

1) should suggest something about product's benefits and qualities 2) easy to pronounce, recognize, and remember 3) should be distinctive 4) extendable 5) should translate easily into foreign languages 6) capable of registration and legal protection

How much would you charge individually vs. in bundle? EXAMPLE Word Processor Spreadsheet Willie $120 $100 Wendy $100 $120 • How much would you charge individually for the word processor?

100

Suppose consumers' willingness to pay is $200. Consumers' willingness to pay for other firm's product: $180. Other firm's price $170. Price at $

189 more than 10 dollars of utility but not loosing too much

Suppose consumers' willingness to pay is $200. Consumers' willingness to pay for other firm's product: $180. Other firm's price $190. Price at $

200 other firm is charging too much for product, more than its vaued

How much would you charge individually vs. in bundle? EXAMPLE Word Processor Spreadsheet Willie $120 $100 Wendy $100 $120 How much would you charge for the word processor and spreadsheet bundle?

220 would make 40 off of it (20 extra from both)

Bundling doesn't work if the combined valuation of products for one consumer is more than twice that of the other consumer. EXAMPLE Word Processor Spreadsheet Willie $90 $100 Wendy $160 $240 How much would you charge for the word processor and spreadsheet bundle?

400

Suppose average cost of first 100,000 calculators is $10 per calculator; after 200,000 cost is $9 per calculator; what is learning curve?

90% 9/10

10) ________ are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. Consumers spend much time and effort in gathering information and making comparisons about these products. A) Shopping products B) Convenience products C) Unsought products D) Industrial products E) Line extensions

100) The new felt-tip pens, multiple-cartridge pens, and quills are all examples of ________. A) product line filling B) multibranding C) megabranding D) product line inconsistencies E) licensed brands

102) Sony offers consumers more than just camcorders; it provides consumers with a complete solution to their picture-taking problems. This offering is called an augmented product.

104) Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

106) Branding can add consumer value to a product.

107) Because so many purchase decisions are made in stores, a product's packaging may be a seller's last and best chance to influence consumers.

109) Quaker produces a variety of cereals. This variety is called its product line.

110) Cannibalization and customer confusion about product differentiation are two potential results if line filling is overdone.

112) A company might stretch its product line upward to add prestige to its current products.

113) A company's product mix has four important dimensions: width, length, depth, and consistency.

115) Attributes are the least desirable level for brand positioning because competitors can easily copy attributes and customers are more interested in what attributes will do for them than in the attributes themselves.

118) Customers come to know a brand through a wide range of contacts and touch points, including word of mouth, personal interactions with company people, telephone interactions, and company Web pages.

119) An example of service variability is that within a given Marriott hotel, one registration-desk employee may be cheerful and efficient, whereas another may be unpleasant and slow.

121) In a service business, the customer and front-line service employee interact to create the service.

123) One aspect of managing service differentiation is the company's service delivery.

124) Customer retention is perhaps the best measure of qualitya service firm's ability to hang on to its customers depends on how consistently it delivers value to them.

24) What are the two dimensions of product quality? A) consistency and level B) performance and resistance C) design and innovation D) conformance and style E) feature and design

3) A product is a key element in the ________. At one extreme, it may consist of pure tangible goods or at the other extreme, pure services. A) market offering B) brand equity C) brand extension D) co-branding E) value chain

31) ________ involves designing and producing the container or wrapper for a product. A) Packaging B) Product line C) Service D) Branding E) Labeling

37) A ________ is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges. A) product line B) line extension C) private brand D) convenience product E) product bandwidth

42) A ________ consists of all the product lines and items that a particular seller offers for sale. A) product mix B) brand line C) consumer mix D) packaging mix E) line extension

47) Some analysts see ________ as the major enduring asset of a company, outlasting the company's specific products and facilities. A) brands B) convenience products C) specialty products D) unsought products E) staples

63) ________ occur(s) when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes. A) Line extension B) Product mix C) Interactive marketing D) Service variability E) Service intangibility

66) Which strategy involves weeding out weaker brands and focusing marketing dollars only on brands that can achieve the number-one or number-two market share positions in their categories? A) megabrand B) service inseparability C) social marketing D) unsought product E) undifferentiated

74) Because service quality depends on the quality of buyer-seller interaction during the service encounter, service marketers use ________ to train employees in the art of interacting with customers to satisfy their needs. A) interactive marketing B) service differentiation C) service productivity D) internal marketing E) external marketing

78) You have an upset stomach. Your spouse rushes to the corner convenience store for a bottle of Pepto-Bismol. This product is a(n) ________ product. A) convenience B) unsought C) specialty D) shopping E) augmented

8) Products and services fall into two broad classifications based on the types of consumers that use them. Which is one of these broad classes? A) industrial products B) specialty products C) supplies and services D) materials and parts E) convenience products

81) Which of the following capital items is NOT considered accessory equipment? A) buildings B) hand tools C) lift trucks D) desks E) chairs

82) Paper, pencils, lubricants, paint, nails, and brooms are examples of ________. A) supplies B) capital items C) raw materials D) specialty products E) installations

85) The Ad Council of America has developed dozens of ________ marketing campaigns, including classics such as "Smokey the Bear," "Keep America Beautiful," and "Only You Can Prevent Forest Fires." A) social B) brand equity C) service D) product line E) place

88) Helene Curtis began to market shampoo for normal hair. In an attempt to increase profits and use excess market capacity, Helene Curtis then marketed shampoo for oily hair and color-treated hair. This is an example of ________. A) line filling B) social marketing C) a shopping product D) an unsought product E) people marketing

A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) market-skimming pricing B) target costing C) deceptive pricing D) market-penetration pricing E) predatory pricing

A value-based pricing strategy most likely begins with ________. A) assessing customer needs B) designing a stylish product C) evaluating the product's costs D) promoting the product's benefits E) setting a price based on perceived value

Busch Stadium in St. Louis charges different prices for seats in different areas of the ball park, even though each seat costs the same for the owners of the stadium. What is this form of pricing called? A) location-based pricing B) market-skimming pricing C) product-form pricing D) time-based pricing E) market-penetration pricing

In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

NerdHerd Electronics sells three different sizes of televisions at three different prices. In this case, the company's pricing strategy is referred to as ________ pricing. A) product line B) optional-product C) by-product D) product bundle E) captive-product

Rent, electricity, and executive salaries that do not vary with production level are referred to as ________ costs. A) fixed B) variable C) break-even D) target E) promotional

The Sherman Act, Clayton Act, and Robinson-Patman Act are all federal laws that were initially adopted to curb the formation of ________. A) monopolies B) oligopolies C) competitive markets D) international markets E) limited partnerships

The relationship between the price charged for a product and the resulting demand level can be shown in a ________. A) demand curve B) supply curve C) elastic demand slope D) break-even chart E) inelastic demand slope

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________. A. concept testing B. concept development C. test marketing D. marketing strategy development E. crowdsourcing

There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products. An individual seller cannot charge more than the going market price without the risk of losing business to the other stores. What type of market does this example represent? A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a black market

Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________. A. test marketing B. portfolio analysis C. commercialization D. internal marketing E. business analysis

When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer sends the customer a check. A) cash rebate B) quantity discount C) promotional allowance D) flash sale E) functional discount

Which group is most likely offered functional discounts by manufacturers? A) trade-channel members that perform sales tasks B) consumers who buy products in large quantities C) buyers who pay their bills before the due date D) buyers who purchase merchandise out of season E) retailers that participate in advertising programs

Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product? A) The product's quality and image support its high price. B) Lower-priced alternatives can enter the market easily. C) Low prices promote more market growth than high prices. D) The product's price matches its manufacturing costs. E) A low-price position of the product is maintained.

Which of the following sets the lower limit for a product's pricing? A) product costs B) profits C) competition D) elements of the product mix E) consumer perceptions of value

Which of the following would most likely trigger a price increase? A) cost inflation B) reduced demand C) cheaper alternatives D) reduced expenses E) overproduction

Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) reference

________ costs are also known as overhead. A) Fixed B) Variable C) Target D) Capital E) Payroll

________ is the only element in the marketing mix that produces revenue. A) Price B) Place C) Promotion D) Product E) Profit

________ uses buyers' perceptions of what a product is worth as the key to pricing. A) Customer value-based pricing B) Target return pricing C) Cost-plus pricing D) Psychological pricing E) Competition-based pricing

______ involves the use of a successful brand name for new or modified products in a new category.

A brand extension

Orion Steel is the chief provider of metals to Accline Cars, which manufactures two models of vehicles-cars and large buses. Accline dealers sell the firm's cars to individual citizens, but buses are sold directly to government entities. In such a distribution channel, which of the following would be considered a vertical conflict?

A conflict between Accline cars and its dealers

Jupiter Steel is the chief provider of metals to Greystone Motors. Greystone Motors has two models of cars-one for commercial and ordinary consumers and another for professional car racing teams. Greystone Motors has designated dealers to sell its commercial cars to consumers, while racing cars are sold directly to the racing teams. In such a distribution channel, which of the following would be considered a horizontal conflict?

A conflict between two Greystone Motors car dealerships

Pastaliano is a restaurant based in Illinois that exclusively sells Italian food. Pastaliano sells the rights to its recipes to a British firm, Clover Trading, which then opens an outlet in London under the Pastaliano brand name. Which kind of channel arrangement does Pastaliano most likely have with Clover Trading?

A contractual vertical marketing system

Crowbar Records used to sell its music CDs through a network of retail outlets, record stores, and music dealers but stopped using these agents with the advent of MP3 technology. Crowbar now sells its music independently on its Web site, through personal mail, and on social networking sites. Which type of marketing system has Crowbar most likely adopted?

A direct marketing channel

Which of the following would be considered an upstream partner in a company's supply chain?

A firm that provides technical expertise in the production of a product

Logistic needs are generally best met by having

A long channel (many intermediaries)

Brand

A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors

In which of the following cases is crowdsourcing used for new product development? A) A company creates a forum where anyone can contribute new product ideas. B) A company hires a marketing agency to generate new product ideas. C) A company reviews the sales, costs, and profit projections of an existing product. D) A company depends on its R&D department to come up with new ideas. E) A company partners with a design agency to create a few prototypes.

A) A company creates a forum where anyone can contribute new product ideas.

Which of the following is true of advertising in the new marketing communications model? A) Advertisers are increasingly shifting toward digital media. B) Advertisers are spending more on broadcast advertising. C) Advertisers are finding traditional media less expensive. D) Advertisers are using less targeted media to reach customers. E) Advertisers have replaced print catalogues with digital versions.

A) Advertisers are increasingly shifting toward digital media.

What is the primary advantage of using television as an advertising medium? A) It involves a low cost per exposure. B) It supports a high degree of audience selectivity. C) It involves low absolute costs. D) It contains low ad clutter. E) It permits prominent exposure.

A) It involves a low cost per exposure.

Which statement is most likely true about the affordable method of setting an advertising budget? A) It typically overlooks how promotion affects sales. B) It always results in overspending on advertising. C) It is especially ideal for long-range market planning. D) It leads to an overly fixed annual promotion budget. E) It is most often used by firms with large advertising budgets.

A) It typically overlooks how promotion affects sales.

Which of the following is true of marketing strategies that are being developed in the new marketing communications model? A) They are more targeted, social, and engaging. B) They target much larger customer segments. C) They rely more on mass-media marketing techniques. D) They use very little alternative media. E) They include a greater number of print media ads.

A) They are more targeted, social, and engaging.

Which of the following is an example of branded entertainment? A) a company placing its product in a movie scene B) a company using a celebrity to endorse a product C) a company airing its advertisements in movie theaters D) a company using an acclaimed movie director to film an advertisement E) a company using a famous song in its advertisement

A) a company placing its product in a movie scene

Remington Motors releases a new line of hybrid electric vehicles called Electra. The line promises superior mileage and excellent horsepower in an environmentally friendly automobile. Remington decides to use advertising as the promotional tool for the car's launch. Which of the following would qualify as an advertisement for Electra? A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed" B) a press conference to discuss the various safety issues, actual mileage, and environmental features of Electra C) the use of dedicated sales personnel in dealer showrooms to explain the qualities of Electra to potential customers D) the involvement of a celebrity at the launch of Electra to endorse the hybrid car E) a buyers-only lottery where Electra buyers have a chance of winning a prize

A) a front-page notice of the release of Electra in all leading newspapers with the caption "Green Speed"

Which of the following would most likely have the longest duration in a market and be characterized by several periods of renewed interest? A) a style B) a fashion C) a fad D) a trend E) a drift

A) a style

Which of the following costs is most likely associated with commercialization? A) building or renting a manufacturing facility B) paying groups of consumers for participating in crowdsourcing activities C) determining a product's planned price, distribution, and marketing budget D) developing a prototype of a product E) using simulated tests to measure market capacity

A) building or renting a manufacturing facility

The stage in which a product concept is presented to groups of target consumers physically or symbolically is referred to as ________. A) concept testing B) concept development C) test marketing D) marketing strategy development E) crowdsourcing

A) concept testing

When an end user's problems and experiences define a new product, the approach is called ________. A) customer-centered new product development B) team-based new product development C) sequential product development D) supply/demand new product development E) systematic new product development

A) customer-centered new product development

A product has hit the ________ stage when sales plunge to zero, or they drop to a low level where they continue for many years. A) decline B) growth C) maturity D) ideation E) analysis

A) decline

In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A) direct marketing B) advertising C) public relations D) predictive analytics E) indirect procurement

A) direct marketing

Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal? A) find new market segments for the brand B) improve the overall quality of the product C) reduce mass media advertising expenses D) offer improved services to new buyers E) conduct controlled test marketing activities

A) find new market segments for the brand

In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit. A) growth B) decline C) maturity D) introduction E) commercialization

A) growth

Zephyr Inc., an electronics manufacturer, wants to enter the commercial tracking device market with its latest product, FindIt. Unlike other tracking devices, FindIt is very small and relatively cheap, but it can be used only within small areas as it has a low detection-range. Which type of advertising would be best for FindIt? A) informative advertising B) reminder advertising C) classified advertising D) comparative advertising E) personalized advertising

A) informative advertising

The third part of a marketing strategy statement describes the ________ of a new product. A) profit goals B) distribution C) marketing budget D) planned value proposition E) target market

A) profit goals

Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments. A) simulated test markets B) controlled test markets C) business analysis D) standard test markets E) concept development

A) simulated test markets

Which of the following media is most suitable for advertising a product that needs to be demonstrated? A) television B) radio C) newspaper D) magazine E) billboard

A) television

Wayne Industries, a retail and home improvement store, is developing a new lawnmower. The marketing strategy for the product has already been developed and presented. A prototype has also been developed by the company's R&D team. The prototype is now being tested rigorously to ensure that there are no product liability issues. Once the prototype of the lawnmower passes product tests, the next step is most likely to be ________. A) test marketing B) portfolio analysis C) commercialization D) internal marketing E) business analysis

A) test marketing

A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take? A) use aggressive sales promotions B) change features of the product C) improve product quality D) find new uses for the product E) explore new market segments

A) use aggressive sales promotions

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?

Abundon

Leadership over production and distribution is assumed through the size and power of one or few dominant channel members

Administered vertical marketing system

Sonic Shack, an audio equipment retailer, signs an agreement with PineWire, a renowned electronics company, to sell PineWire products. The deal requires Sonic Shack to provide PineWire products with superior displays, shelf space, and promotion compared to competing products. Sonic agrees to these terms as PineWire products command a huge share in the market. Which of the following types of channel arrangements do PineWire and Sonic Shack most likely have?

Administered vertical marketing system

Which of the following is most likely a difference between advertising and sales promotions?

Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately.

2) Price is the only element in the marketing mix that produces ________. A) revenue B) variable costs C) expenses D) fixed costs E) stability

Answer: A Diff: 1 Page Ref: 275 Skill: Concept

34) The relationship between the price charged and the resulting demand level can be shown as the ________. A) demand curve B) variable cost C) target cost D) break-even chart E) experience curve

Answer: A Diff: 1 Page Ref: 283 Skill: Concept

35) ________ describes how responsive demand will be to a change in price. A) Price elasticity B) Break-even pricing C) The break-even chart D) Target costing E) Supply

Answer: A Diff: 1 Page Ref: 283 Skill: Concept

40) When companies set prices, the government and social concerns are two ________ affecting pricing decisions. A) external factors B) internal factors C) economic conditions D) demand curves E) temporary influences

Answer: A Diff: 1 Page Ref: 284 Skill: Concept AACSB: Ethical Reasoning

57) By definition, this type of pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. A) segmented pricing B) variable pricing C) flexible pricing D) cost-plus pricing E) reference pricing

Answer: A Diff: 1 Page Ref: 290 Skill: Concept

5) ________ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. A) Value-based pricing B) Target return pricing C) Variable costs D) Price elasticity E) Product image

Answer: A Diff: 2 Page Ref: 276 Skill: Concept

10) Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the ________ level. A) perceived value B) value-based C) variable D) demand curve E) price-floor

Answer: A Diff: 2 Page Ref: 277 Skill: Concept

15) Costs that do not vary with production or sales level are referred to as ________ costs. A) fixed B) variable C) target D) total E) unit

Answer: A Diff: 2 Page Ref: 278 Skill: Concept

17) Rent, electricity, and executive salaries are examples of ________ costs. A) fixed B) variable C) total D) accumulated E) marketing

Answer: A Diff: 2 Page Ref: 278 Skill: Concept

29) Price setting is usually determined by ________ in small companies. A) top management B) marketing departments C) sales departments D) divisional managers E) cross-functional teams

Answer: A Diff: 2 Page Ref: 282 Skill: Concept

31) Under ________, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) anti-trust agreements

Answer: A Diff: 2 Page Ref: 282 Skill: Concept

39) A company should set prices that will allow ________ to receive a fair profit. A) resellers B) producers C) consumers D) the elderly E) competitors

Answer: A Diff: 2 Page Ref: 284 Skill: Concept

44) A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) price skimming B) trial pricing C) value pricing D) market-penetration pricing E) prestige pricing

Answer: A Diff: 2 Page Ref: 285 Skill: Concept

47) A challenge for management in product line pricing is to decide on the price steps between the ________. A) various products in a line B) product mixes C) product groupings D) product lines E) various target markets

Answer: A Diff: 2 Page Ref: 286-287 Skill: Concept

55) Trade or functional discounts are offered by manufacturers to which of the following? A) channel members who perform tasks that the manufacturer would otherwise have to perform B) consumers who earn a price reduction for buying in bulk C) intermediaries such as financing institutions as a cost of doing business with them D) manufacturers that agree to exclusive distribution contracts E) the government market and other organizations that require bid proposals

Answer: A Diff: 2 Page Ref: 290 Skill: Concept

64) When a manufacturer offers a ________, customers buy products from manufacturers' dealers within a specified time period and the manufacturer sends the customer a check. A) cash rebate B) special event price C) dealer reduction D) promotional pricing reward E) discount allowance

Answer: A Diff: 2 Page Ref: 294 Skill: Concept

70) Which of the following is a reason for a company to raise its prices? A) to address the issue of overdemand for a product B) to win a larger share of the market C) to use excess capacity D) to boost sales volume E) to balance out decreasing costs

Answer: A Diff: 2 Page Ref: 298 Skill: Concept

73) The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ________. A) monopolies B) oligopolies C) competitive markets D) international markets E) limited partnerships

Answer: A Diff: 2 Page Ref: 301 Skill: Concept AACSB: Ethical Reasoning

16) Costs that vary directly with the level of production are referred to as ________ costs. A) fixed B) variable C) target D) total E) unit

Answer: B Diff: 1 Page Ref: 278 Skill: Concept

23) Break-even pricing, or a variation called ________, is when the firm tries to determine the price at which it will break even or make the profit it is seeking. A) competition-based pricing B) target return pricing C) fixed cost D) value-based pricing E) customer-based pricing

Answer: B Diff: 1 Page Ref: 279 Skill: Concept

41) A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles. A) pricing by-product B) pricing structure C) pricing loop D) pricing cycle E) pricing bundle

Answer: B Diff: 1 Page Ref: 285 Skill: Concept

45) ________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share. A) Market-skimming B) Market-penetration C) Below-market D) Value-based E) Leader

Answer: B Diff: 1 Page Ref: 285 Skill: Concept

53) With product bundle pricing, sellers can combine several products and offer the bundle ________. A) as a working unit B) at a reduced price C) as a complete self-service package D) as a reward to loyal customers E) as segmented pricing

Answer: B Diff: 1 Page Ref: 289 Skill: Concept

54) A quantity discount is a price reduction to buyers who purchase ________. A) frequently B) large volumes C) close outs D) inferior merchandise E) superior merchandise

Answer: B Diff: 1 Page Ref: 290 Skill: Concept

62) ________ prices are the prices that a buyer carries in his or her mind and refers to when looking at a given product. A) Psychological B) Reference C) Promotional D) Geographical E) Dynamic

Answer: B Diff: 1 Page Ref: 291 Skill: Concept

6) In ________, price is considered along with the other marketing mix variables before the marketing program is set. A) target return pricing B) value-based pricing C) variable costs D) price elasticity E) cost-based pricing

Answer: B Diff: 2 Page Ref: 276 Skill: Concept

12) When there is price competition, many companies adopt ________ rather than cutting prices to match competitors. A) pricing power B) value-added pricing strategies C) fixed costs D) price elasticity E) image pricing

Answer: B Diff: 2 Page Ref: 277-278 Skill: Concept

25) Which of the following is an external factor that affects pricing decisions? A) the salaries of production management B) competition C) the salaries of finance management D) overall pricing objectives E) the company's overall marketing strategy

Answer: B Diff: 2 Page Ref: 280 Skill: Concept

32) Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) socialism

Answer: B Diff: 2 Page Ref: 282 Skill: Concept

36) If demand hardly changes with a small change in price, we say the demand is ________. A) variable B) inelastic C) value-based D) at break-even pricing E) market penetrating

Answer: B Diff: 2 Page Ref: 283 Skill: Concept

38) Each of the following economic factors can have a strong impact on a firm's pricing strategy EXCEPT ________. A) an economic boom B) the reseller's reaction to price changes C) an economic recession D) inflation E) interest rates

Answer: B Diff: 2 Page Ref: 284 Skill: Concept

49) Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing. A) product bundle B) optional-product C) captive-product D) by-product E) skimming

Answer: B Diff: 2 Page Ref: 287 Skill: Concept

51) Hotline Long Distance Service uses captive-product pricing for its phone call charges. Because this is a service, the price is broken into a fixed rate plus a per-call ________. A) fixed rate usage B) variable usage rate C) standard usage rate D) market usage rate E) fixed fee

Answer: B Diff: 2 Page Ref: 287 Skill: Concept

48) When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line. A) nonprice competition B) value differences C) quantity levels D) images E) strategies

Answer: B Diff: 2 Page Ref: 287 Skill: Concept AACSB: Communication

60) Consumers usually perceive higher-priced products as ________. A) not within reach of most people B) having a higher quality C) having high profit margins D) popular brands E) being in the introductory stage of the product life cycle

Answer: B Diff: 2 Page Ref: 291 Skill: Concept

67) The Internet offers ________, where the price can easily be adjusted to meet changes in demand. A) captive pricing B) dynamic pricing C) basing-point pricing D) price bundling E) cost-plus pricing

Answer: B Diff: 2 Page Ref: 295-296 Skill: Concept AACSB: Use of IT

68) Price escalation in international markets is most likely to result from the higher costs of selling in another country and differences in market conditions or ________. A) cultural preferences B) selling strategies C) regional tastes D) customer perceptions E) language barriers

Answer: B Diff: 2 Page Ref: 297 Skill: Concept AACSB: Multicultural and Diversity

69) Which of the following is NOT a reason for a company to initiate a price cut? A) to boost sales B) to obtain prestige C) to dominate the market D) to relieve excess capacity E) to influence falling demand

Answer: B Diff: 2 Page Ref: 298 Skill: Concept

74) Federal legislation on price-fixing requires that sellers set their prices ________. A) based on their fixed and variable costs B) without communication with competitors C) to achieve a specified profit margin D) with the intention of putting competitors out of business E) consistently throughout a region

Answer: B Diff: 2 Page Ref: 301 Skill: Concept AACSB: Ethical Reasoning

1) ________ is the amount of money charged for a product or service. A) Experience curve B) Demand curve C) Price D) Wage E) Salary

Answer: C Diff: 1 Page Ref: 275 Skill: Concept

13) ________ pricing involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for the company's efforts and risks. A) Value-based B) Fixed cost C) Cost-based D) Variable E) Skimming

Answer: C Diff: 1 Page Ref: 278 Skill: Concept

42) Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________. A) market-level pricing B) market-competitive pricing C) market-skimming pricing D) market-price lining E) market-price filling

Answer: C Diff: 1 Page Ref: 285 Skill: Concept

3) Consumer perceptions of the product's value set the ________ for prices. A) demand curve B) floor C) ceiling D) variable cost E) image

Answer: C Diff: 2 Page Ref: 275 Skill: Concept

4) Product costs set a(n) ________ to a product's price. A) demand curve B) experience curve C) floor D) ceiling E) break-even cost

Answer: C Diff: 2 Page Ref: 275 Skill: Concept

7) Value-based pricing is the reverse process of ________ pricing. A) variable cost B) cost-plus C) cost-based D) good-value E) value-added

Answer: C Diff: 2 Page Ref: 276 Skill: Concept

9) Measuring ________ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. A) target returns B) fixed costs C) perceived value D) break-even pricing E) variable costs

Answer: C Diff: 2 Page Ref: 276 Skill: Concept

19) The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that adds a standard mark-up to the cost of the product. This approach to pricing is called ________ pricing. A) value-based B) fixed cost C) cost-plus D) variable E) skimming

Answer: C Diff: 2 Page Ref: 279 Skill: Concept

20) The simplest pricing method is ________. A) value-based pricing B) going-rate and sealed-bid pricing C) cost-plus pricing D) break-even analysis E) target return pricing

Answer: C Diff: 2 Page Ref: 279 Skill: Concept

22) Which of the following is a cost-based approach to pricing? A) value-based pricing B) going-rate pricing C) break-even pricing D) good-value pricing E) A and C

Answer: C Diff: 2 Page Ref: 279 Skill: Concept

26) ________ that influence pricing decisions include the nature of the market and demand. A) Internal factors B) Elasticity factors C) External factors D) Target factors E) Domestic factors

Answer: C Diff: 2 Page Ref: 280 Skill: Concept

33) Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) capitalism

Answer: C Diff: 2 Page Ref: 283 Skill: Concept

37) If demand changes greatly with a small change in price, we say the demand is ________. A) inelastic B) variable C) elastic D) value-based E) fixed

Answer: C Diff: 2 Page Ref: 283 Skill: Concept

46) All of the following conditions support market-penetration pricing EXCEPT which one? A) The market must be highly price sensitive. B) Production and distribution costs must fall as sales volume increases. C) The product's quality and image must support the price. D) The low price must help keep out the competition. E) A low price will produce more market growth.

Answer: C Diff: 2 Page Ref: 286 Skill: Concept

50) It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product. A) low: low markups B) high: low markups C) low: high markups D) high: high markups E) moderately: moderate markups

Answer: C Diff: 2 Page Ref: 287 Skill: Concept

52) When amusement parks and movie theaters charge admission plus fees for food and other attractions, they are following a(n) ________ pricing strategy. A) by-product B) optional-product C) captive-product D) skimming E) penetration

Answer: C Diff: 2 Page Ref: 287 Skill: Concept

58) The New Age Gallery has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________. A) time-based pricing B) location pricing C) customer-segment pricing D) revenue management pricing E) generational pricing

Answer: C Diff: 2 Page Ref: 291 Skill: Concept

61) Consumers use price less to judge the quality of a product when they ________. A) lack information B) lack skills to use the product C) have experience with the product D) are shopping for a specialty item E) cannot physically examine the product

Answer: C Diff: 2 Page Ref: 291 Skill: Concept

65) Under which type of geographic pricing strategy does each customer pay the exact freight for the product from the factory to its destination? A) basing-point pricing B) freight-absorption pricing C) FOB-origin pricing D) dynamic pricing E) zone pricing

Answer: C Diff: 2 Page Ref: 295 Skill: Concept

71) When a competitor cuts its price, a company might decide to ________ if it believes it will not lose much market share or would lose too much profit by cutting its own price. A) reduce its production costs B) reduce its marketing costs C) maintain its current price and profit margin D) increase its marketing budget to raise the perceived value of its product E) increase its production costs to improve the quality of the product

Answer: C Diff: 2 Page Ref: 299 Skill: Concept

66) Which of the following is the opposite of FOB-origin pricing? A) basing-point pricing B) freight-absorption pricing C) uniform-delivered pricing D) freight-absorption pricing E) zone pricing

Answer: C Diff: 3 Page Ref: 295 Skill: Concept

75) Price discrimination is legal under which of the following conditions? A) when a manufacturer and reseller have agreed upon a specified retail price for a product B) when a manufacturer sells to retailers in different markets C) if a seller can prove its costs per unit are different when selling to different retailers D) if a seller advertises prices that are not actually available to consumers E) if a seller has not communicated with competitors before announcing prices

Answer: C Diff: 3 Page Ref: 302 Skill: Concept AACSB: Ethical Reasoning

63) What type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) referent pricing D) promotional pricing E) dynamic pricing

Answer: D Diff: 1 Page Ref: 293 Skill: Concept

8) With ________ pricing, price is set to match consumers' perceptions of product value. A) variable cost B) cost-plus C) cost-based D) value-based E) every day low

Answer: D Diff: 2 Page Ref: 276 Skill: Concept

11) ________ involves charging a constant low price with few or no temporary price discounts. A) High-low pricing B) Target return pricing C) Cost-plus pricing D) Everyday low pricing (EDLP) E) Penetration pricing

Answer: D Diff: 2 Page Ref: 277 Skill: Concept

14) Fixed costs ________ as the number of units produced increases. A) decrease B) increase C) divide in half D) remain the same E) increase at a diminishing rate

Answer: D Diff: 2 Page Ref: 278 Skill: Concept

18) ________ are the sum of the ________ and ________ for any given level of production. A) Fixed costs: variable: total costs B) Fixed costs: total: variable costs C) Variable costs: fixed: total costs D) Total costs: fixed: variable costs E) Break-even costs: fixed: total costs

Answer: D Diff: 2 Page Ref: 278 Skill: Concept

27) Of the following, a company would be LEAST likely to set prices low to ________. A) prevent competition from entering the market B) stabilize the market C) create excitement for a product D) prepare for an easy exit from a market E) match a competitor

Answer: D Diff: 2 Page Ref: 281 Skill: Concept

43) Which of the following would NOT support a market-skimming policy for a new product? A) The product's quality and image must support its higher price. B) Enough buyers must want the products at that price. C) Competitors are not able to undercut the high price. D) Competitors can enter the market easily. E) The cost of producing a smaller volume is not so high that it negates the advantage of charging more per unit.

Answer: D Diff: 2 Page Ref: 285 Skill: Concept

56) When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________. A) trade discount B) functional discount C) allowance D) promotional allowance E) trade credit

Answer: D Diff: 2 Page Ref: 290 Skill: Concept

59) When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing. A) revenue management B) penetration C) skimming D) time-based E) value-added

Answer: D Diff: 2 Page Ref: 291 Skill: Concept

72) Which of the following is NOT on an effective action that a company can take to combat a competitor's price cut on a product? A) reduce price B) raise perceived value C) improve quality and increase price D) bundle products together E) launch a low-price "fighting brand"

Answer: D Diff: 2 Page Ref: 300 Skill: Concept

21) Which of the following presents the strongest reason that markup pricing generally does NOT make sense? A) Sellers earn a fair return on their investment. B) By tying the price to cost, sellers simplify pricing. C) When all firms in the industry use this pricing method, prices tend to be similar. D) This method ignores demand. E) With a standard markup, consumers know when they are being overcharged.

Answer: D Diff: 3 Page Ref: 279 Skill: Concept

28) With target costing, marketers will first ________ and then ________. A) build the marketing mix: identify the target market B) identify the target market: build the marketing mix C) design the product: determine its cost D) use skimming pricing: use penetrating pricing E) determine a selling price: target costs to ensure that the price is met

Answer: E Diff: 2 Page Ref: 281 Skill: Concept

30) Price setting is usually determined by ________ in large companies. A) top management B) divisional managers C) product-line managers D) purchasing departments E) both B and C

Answer: E Diff: 2 Page Ref: 282 Skill: Concept

24) Which of the following statements about a break-even chart is true? A) It is used to determine how the customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It shows the level of earnings a company has during an accounting period. D) It is a tool marketers use to examine the relationship between supply and demand. E) It uses variable costs, the unit price, and fixed costs.

Answer: E Diff: 3 Page Ref: 279 Skill: Concept

101) A service is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need.

103) Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort.

105) Style is a larger concept than design. Design describes the appearance of a product.

108) Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics.

111) A company can stretch its product either upward or downward, but not both directions.

114) Dove marketers can go beyond the brand's cleansing cream properties and talk about the resulting benefit of softer skin. This is known as product attributes in brand positioning.

116) Retailers and wholesalers who have created their own brandssuch as Wal-Mart's Sam's Choice beverages and food productsare participating in co-branding.

117) When a company introduces a new brand name in the same product category, it is called line extension.

120) Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided.

122) The service-profit chain is the set of all product lines and items that a particular seller offers for sale.

125) Good service recovery can turn angry customers into loyal customers and can even win more customer purchasing and loyalty than if no problem had occurred in the first place.

14) Most manufactured materials and parts are sold directly to ________. Price and service are the major marketing factors; branding and advertising tend to be less important. A) consumers B) industrial users C) brand extensions D) co-branders E) wholesalers

16) ________ consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization. A) Person marketing B) Organization marketing C) Internal marketing D) Service variability E) Intelligence marketing

17) ________ consists of activities undertaken to create, maintain, or change attitudes toward particular people. A) Corporate image marketing B) Person marketing C) Social marketing D) Organization marketing E) Intermarket marketing

18) ________ involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, and regions. A) Idea marketing B) Place marketing C) Organization marketing D) Social marketing E) Interactive marketing

2) ________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything. A) Line extensions B) Services C) Brands D) Consumer products E) Supplements

20) Public health campaigns to reduce alcoholism, drug abuse, smoking, and obesity are all examples of ________. A) specialty products B) social marketing C) shopping products D) consumer products E) responsibility marketing

21) Developing a product or service involves defining the benefits that it will offer. These benefits are communicated and delivered by ________ such as quality, features, and style and design. A) private brands B) product attributes C) consumer products D) product mixes E) marketing tools

22) ________ is one of the marketer's major positioning tools because it has a direct impact on product or service performance; it is therefore closely linked to customer value and satisfaction. A) Packaging B) Product quality C) Total quality management D) Specialty product marketing E) Positioning

26) A stripped-down model without any extras is the starting point; a company can create a higher-level model by adding ________. A) co-branding B) features C) product quality D) service variability E) markets

28) A sensational ________ may grab attention and produce pleasing aesthetics, but it does not necessarily improve a product's performance. A) design B) style C) experience D) service-profit chain E) augmented product

29) ________ contributes to a product's usefulness as well as to its looks. A) Style B) Design C) Package D) Brand E) Functionality

30) A(n) ________ is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service. A) service B) brand C) co-branding D) internal marketing E) external marketing

32) In recent years, product safety and environmental responsibility have become major ________ concerns. A) branding B) packaging C) labeling D) service E) product line

34) The ________ requires sellers to provide detailed nutritional information on food products. A) Fair Packaging and Labeling Act of 1966 B) Nutritional Labeling and Educational Act of 1990 C) Labeling Act of 1970 D) Packaging Act of 1970 E) Federal Trade Commission Act of 1990

39) Berkowitz Piano Company can expand its product line in one of two common ways. Which of the following is one of those ways? A) internal marketing B) line filling C) product mix D) social marketing E) line mixing

4) To differentiate themselves, many companies are going beyond products and services, they are developing and delivering customer ________. A) quality B) experiences C) brands D) product lines E) events

41) When a company lengthens its product line beyond its current range, it is ________. A) product line filling B) product line stretching C) product mixing D) increasing product depth E) building brand equity

44) Product mix ________ refers to the number of versions offered of each product in the line. Crest toothpaste comes in 13 varieties, ranging from Crest Multicare to Crest Baking Soda formulations. A) length B) depth C) height D) width E) perimeter

50) The total financial value of a brand is estimated through the process of brand ________. A) differentiation B) valuation C) extensions D) positioning E) equity

51) The fundamental asset underlying brand equity is ________--the value of the customer relationships that the brand creates. A powerful brand is important, but what it really represents is a set of loyal consumers. A) the customer mix B) customer equity C) line equity D) service variability E) the service encounter

55) All of the following are a manufacturer's sponsorship options for a product EXCEPT ________. A) manufacturer's brand B) multibrands C) private brand D) licensed brand E) co-branding

57) An increasing number of retailers and wholesalers have created their own ________, also called store brands. A) unsought products B) private brands C) specialty products D) service variability E) shopping products

6) The third level of a product that product planners must consider is a(n) ________ around the core benefit and actual product that offers additional consumer services and benefits. A) brand equity B) augmented product C) brand extension D) industrial product E) image

67) Major brand marketers often spend huge amounts on advertising to create brand ________ and to build preference and loyalty. A) extension B) awareness C) packaging D) internal marketing E) preference

71) ________ means that services cannot be separated from their providers, whether the providers are people or machines. A) Service intangibility B) Service inseparability C) Service variability D) Service perishability E) Service heterogeneity

72) Which of the following is NOT one of the links in the service-profit chain, linking service firm profits with employee and customer satisfaction? A) internal service quality B) evidence management C) satisfied and productive service employees D) satisfied and loyal customers E) healthy service profits and growth

75) All of the following are methods for developing a differentiated service offer, delivery, or image EXCEPT ________. A) offering innovative features B) increasing the quantity of service by giving up some quality C) having more reliable customer-contact people D) developing symbols and branding E) designing a superior delivery process

83) General Electric's campaign stating, "We bring good things to life" is an example of ________. A) personal marketing B) corporate image marketing C) product quality D) product line E) social marketing

9) ________ are products and services bought by final consumers for personal consumption. These include convenience products, shopping products, specialty products, and unsought products. A) Services B) Consumer products C) Line extensions D) Industrial products E) Straight extensions

90) Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even though the Kroger tuna costs $0.15 less per can. Chicken of the Sea has brand ________. A) extension B) equity C) specialty D) service E) valuation

93) An apparel marketer is planning to launch an existing brand name into a new product category. Which brand development strategy is being implemented? A) line extension B) brand extension C) multibranding D) new brands E) rebranding

97) Gina's Nail Salon is serious about pleasing its customers. Employees are trained to immediately and pleasantly respond to any customer complaints, and they are empowered to offer discounts and free add-ons to customers who believe they have received anything less than the best service. Gina's Nail Salon focuses on ________. A) differentiating its offer B) good service recovery C) internal marketing D) image marketing E) productivity

Combining several products and offering the collection at a reduced price is referred to as ________ pricing. A) by-product B) product bundle C) captive-product D) optional-product E) product line

Costs that change directly with the level of production are referred to as ________ costs. A) fixed B) variable C) target D) capital E) payroll

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC. A. introduction B. maturity C. growth D. decline E. incubation

Glow, a gift card store, offers a price reduction to customers who buy Christmas cards the week after Christmas. In this case, the store offers a ________. A) functional discount B) seasonal discount C) promotional allowance D) trade-in allowance E) quantity discount

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features? A. product development B. introduction C. growth D. maturity E. adoption

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas. A. marketing strategy development B. crowdsourcing C. concept development D. business analysis E. test marketing

Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as ________ pricing. A) by-product B) two-part C) optional-product D) segmented E) promotional

Pricing a product based on consumers' reference prices is referred to as ________ pricing. A) geographical B) psychological C) allowance D) by-product E) captive-product

Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. A) high-low B) value-added C) target return D) everyday low E) cost-plus

Qriosity Inc. released a new antivirus program at half-price to attract buyers. This is most likely an example of ________. A) market-skimming pricing B) market-penetration pricing C) optional-product pricing D) by-product pricing E) allowance pricing

Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt. A. crowdsourcing B. idea screening C. concept testing D. concept development E. business analysis

Which of the following is a drawback of using blogs as a marketing medium?

The content of a blog is difficult to control.

Which of the following is true of free trade zones?

They are groups of nations organized to work toward common goals.

Which of the following is true of downstream channels in a company's supply chain?

They form an intermediary link between the company and its customers

Which of the following statements is true of consumer promotions?

They include a wide range of tools like samples, coupons, and refunds.

__ costs refer to the sum of the fixed and variable costs for any given product

Total

Benefits of the online channel

Tracking customer browsing and purchase behavior allows "fly-by-wire" and micro-targeting. • Customer information can be used to anticipate customer needs and wants in real time. • Use data to maximize value of most profitable customers.

# of Channels: The Internet.

Transactional efficiency • Cost of transactions • Cost of distribution • Integration with firm processes • Integration with supply chain Communication costs of firm Advertising Providing product information to customers Customer service Market research Form of communication Participants Firms and consumers Consumers among themselves •Interactivity •Monologue •Dialogue Communication costs of consumer (Land's End) Searching for product information (comparisons) Discussions about products, applications Post-sales support Communicating preferences •Addressability •One-on-one •One to many

Most efficient for short hauls of high-value merchandise and is highly flexible in routing and time schedule

Trucks

T/F: A channel level is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer

True

T/F: A company that has no intermediary levels sells its products directly to its customers

True

T/F: A horizontal marketing system can develop between a company and its competitor

True

T/F: Companies selling perishable products generally prefer direct marketing, which minimizes delays

True

T/F: Customer-centered logistics starts with the marketplace and works backward to the factory

True

T/F: Disintermediation occurs when product or service producers cut out intermediaries and sell directly to final buyers

True

T/F: In exclusive dealing, a producer may agree not to sell to other dealers in a given area

True

T/F: Marketing channel design calls for analyzing consumer needs, setting objectives, identifying major channel alternatives, and evaluating those alternatives

True

T/F: Supply chain mgt involves managing both upstream and downstream value-added flows of materials

True

T/F: With a vendor-managed inventory system, the supplier takes full responsibility for managing inventories and deliveries

True

The full mix of benefits on which a brand is differentiated and positioned is known as the brand's ________.

Value proposition

In an effort to differentiate its offerings from its competitors, Pegasus Computers decided to add an extra USB port in all its laptops besides providing a free pair of Delphi power bass headphones with every Pegasus laptop. Although the additional features increased the price of the laptops by $500, Pegasus was confident that the strategy would help boost demand for its laptops substantially. This is an example of ________.

Value-added pricing

Difference between value and cost-based pricing

Value‐based pricing uses the buyers' perceptions of value, not the sellers cost, as the key to pricing. Price is considered before the marketing program is set. • Value‐based pricing is customer driven • Cost‐based pricing is product driven

Innovators are characterized as

Venturesome

In a ________, producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate.

Vertical Marketing System

Producers, wholesalers, and retailers act as a unified system. In such a structure, one channel member owns the others, has contracts with them, or has so much power that they all cooperate

Vertical marketing system

10) Producers benefit from using intermediaries because they ________. A) offer greater efficiency in making goods available to target markets B) bring a fresh point of view to strategy development C) eliminate risk D) are generally backlogged with orders E) refuse to store products for longer than a few days

11) Rent, electricity, and executive salaries that do not vary with production level are referred to as ________ costs. A) fixed B) variable C) break-even D) target E) promotional

12) ________ costs are also known as overhead. A) Fixed B) Variable C) Target D) Capital E) Payroll

17) All of the institutions in a channel are connected by various flows. These include physical flow, flow of ownership, payment flow, information flow, and ________ flow. A) promotion B) acquisition C) customer D) return product E) by-product

2) ________ is the only element in the marketing mix that produces revenue. A) Price B) Place C) Promotion D) Product E) Profit

21) In ________, the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

22) There are more than 20 stores on a street in Sao Paulo that specialize in selling the same quality and brand of wheat products. An individual seller cannot charge more than the going market price without the risk of losing business to the other stores. What type of market does this example represent? A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a black market

24) An advantage of a vertical marketing system (VMS) is that it acts as a ________ system. A) unified B) more efficient C) modern D) customer-driven E) task-driven

25) The relationship between the price charged for a product and the resulting demand level can be shown in a ________. A) demand curve B) supply curve C) elastic demand slope D) break-even chart E) inelastic demand slope

28) A firm uses ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. A) market-skimming pricing B) target costing C) deceptive pricing D) market-penetration pricing E) predatory pricing

28) The most common type of contractual agreement in business is the ________. A) franchise organization B) vertical marketing system C) conventional marketing channel D) corporate VMS E) administered VMS

30) Which of the following conditions is most likely essential for implementing a successful market-skimming pricing strategy for a product? A) The product's quality and image support its high price. B) Lower-priced alternatives can enter the market easily. C) Low prices promote more market growth than high prices. D) The product's price matches its manufacturing costs. E) A low-price position of the product is maintained.

34) The major disadvantage of a multichannel system is that it is harder to control and it can generate ________. A) channel conflict B) less net profit C) fewer domestic sales D) inefficiencies E) declining employee morale

4) When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ________. A) value delivery network B) channel of distribution C) supply chain D) demand chain E) all of the above

4) Which of the following sets the lower limit for a product's pricing? A) product costs B) profits C) competition D) elements of the product mix E) consumer perceptions of value

44) Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ________ distribution. A) exclusive B) selective C) intensive D) administered E) corporate

5) ________ uses buyers' perceptions of what a product is worth as the key to pricing. A) Customer value-based pricing B) Target return pricing C) Cost-plus pricing D) Psychological pricing E) Competition-based pricing

50) China and India each contain more than one billion people. However, companies can access only a small percentage of these potential markets due to ________. A) inadequate distribution systems B) indifference toward Western products C) high regional taxes D) the religious caste system E) insurmountable language barriers

50) When a manufacturer offers a ________, a customer buys a product from a manufacturer's dealer within a specified time period, and the manufacturer sends the customer a check. A) cash rebate B) quantity discount C) promotional allowance D) flash sale E) functional discount

53) Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) reference

65) Through the use of ________, or "smart tag" technology, a company is able to locate exactly where a product is within the supply chain. A) RFID B) PRM C) VMS D) IT E) 3PL

7) A value-based pricing strategy most likely begins with ________. A) assessing customer needs B) designing a stylish product C) evaluating the product's costs D) promoting the product's benefits E) setting a price based on perceived value

71) Lancaster Box Company wants to provide better customer service while trimming distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Lancaster Box is thinking of ________. A) integrated logistics management B) supply chain management C) customer relationship management D) horizontal marketing system E) disintermediation

81) Staples Office Supply opened an online store that created competition with many of its dealers. The corporate office created a ________ conflict. A) vertical B) problematic C) no-win D) horizontal E) intermediation

90) Which product will most likely be exclusively distributed? A) BMW cars B) Levi's blue jeans C) Bazooka bubble gum D) Prairie Farms yogurt E) Coca-Cola

91) Tiffany & Co jewelry can only be found in a limited number of intermediaries. This is an example of ________ distribution. A) exclusive B) intensive C) quality D) high-end E) independent

94) Max Samuelson is a high-end fashion designer who markets his clothing lines through a limited number of highly reputable retailers. Max uses ________. A) exclusive distribution B) exclusive dealing C) exclusive territorial agreements D) full-line forcing E) tying agreements

96) Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to ________ transport. A) water B) rail C) pipeline D) air E) none of the above

Which of the following is an example of a horizontal conflict in a distribution channel?

a Ford car dealer complaining that another Ford dealer is underpricing the same models

New Brands

a company may believe that the power of its existing brand name is waning, so a new brand name is needed - or it may create a new brand when it enters a new product category for which none of its current brand names are appropriate

Which of the following is an example of a combination of sales promotions and direct marketing?

a company sending an e-mail to a customer about a discount on a product during a holiday season

Convenience Product

a consumer product or service that customers usually buy frequently, immediately, and with minimal comparison and buying effort

Shopping Product

a consumer product or service that the customer, in the process of selecting and purchasing, usually compares on such attributes as: - suitability - quality - price - style

Specialty Product

a consumer product or service with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort

Unsought Product

a consumer product that the consumer either does not know about or knows about but does not normally consider buying

a product concept is

a detailed version of a product idea stated in meaningful consumer terms

Product line

a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges

Which of the following is an example of a nontariff trade barrier?

a host-country regulation

Brand Sponsorship

a manufacturer has four sponsorship options: - national brand (manufacturer's brand) - private brand (store brand, distributor brand) - licensed brand - co-brand (2 companies team up)

Price Elasticity of demand

a measure of the relationship between a change in the demand of a particular good and a change in its price. Is often used when discussing price sensitivity

Business Product

a product bought by individuals and organizations for further processing or for use in conducting a business - based on the PURPOSE for which the product is purchased

Consumer Product

a product or service bought by final consumers for personal consumption

which of the following is most likely true of a product in the maturity stage of the production cycle?

a slowdown occurs in sales growth

Which of the following is most likely an example of a business promotion tool?

a trade fair showcasing a new audio system developed by an electronics firm

29. _____ define the task that advertising must do with a specific target audience during a specific period of time. a. Advertising objectives b. Advertising budgets c. Advertising strategies d. Advertising campaigns e. Message decisions

a. Advertising objectives

30. _____ can be classified by primary purpose—whether the aim is to inform, persuade, or remind. a. Advertising objectives b. Advertising budgets c. Advertising strategies d. Advertising campaigns e. Advertising logos

a. Advertising objectives

46. A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching customer with more engaging messages is ________. a. Madison & Vine b. Wall St. & Fifth Ave c. Buzz marketing d. opinion leaders e. DVR zap

a. Madison & Vine

32. _____ becomes more important as competition increases. The company's objective is to build selective demand. a. Persuasive advertising b. Informative advertising c. POP promotion advertising d. Patronage advertising e. Reminder-oriented advertising

a. Persuasive advertising

59. ______ is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. a. Reach b. Qualitative value c. Format d. Premium e. Frequency

a. Reach

74. Which of the following is not a reason that the use of public relations by companies has often been limited and scattered? a. The cost of public relations can be prohibitive. b. The public relations department is usually located at corporate headquarters. c. Many public relations professionals see their jobs as simply communicating, not necessarily brand building. d. The public relations department is busy dealing with stockholders, employees, government officials, the press, and other publics. e. Communication between marketing managers and public relations specialists can be difficult.

a. The cost of public relations can be prohibitive.

65. In selecting media vehicles, the planner must balance media cost measures against several media impact factors. First, the planner should balance costs against the media vehicle's ________. a. audience quality b. audience attention c. editorial quality d. timing e. pass-along audience

a. audience quality

50. After creating message strategy statements, the advertiser must develop a compelling ________ that will bring the message strategy to life in a distinctive and memorable way. a. big idea b. customer strategy c. customer benefit d. execution style e. media vehicle

a. big idea

56. Product placement in television programs and movies is an example of ________. a. branded entertainment b. advertainment c. brand contact d. audience engagement e. pulsing

a. branded entertainment

14. Advertising, sales promotion, personal selling, public relations, and direct marketing are all ________. a. communications channels that should be integrated under the concept of integrated marketing communications. b. communications channels focused more on narrowcasting than broadcasting c. promotional tools used for push strategies but not pull strategies d. promotional tools used for pull strategies but not push strategies e. promotional tools adapted for use in mass marketing

a. communications channels that should be integrated under the concept of integrated marketing communications.

63. The media planner looks both at the total cost of using a medium and at the _____. a. cost per thousand persons reached b. cost of premium offers c. cost of the magazine it is using d. opportunity cost e. continuity cost

a. cost per thousand persons reached

70. Advertising media costs ________ from country to country. a. differ vastly b. remain about the same c. use POP promotions d. are impossible to compare e. are usually comparable

a. differ vastly

121. If you are attempting to create primary demand toward your product, you will use ________ ads. a. informative b. persuasive c. reminder d. developmental e. cooperative

a. informative

38. Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result. a. percentage-of-sales b. affordable c. competitive-parity d. objective-and-task e. regression

a. percentage-of-sales

Pearl Sands Resort and Spa is a popular summer attraction located in hilly town of Rockten. They usually attract customers in the summer. During the pre-summer period, Pearl Sands Resort began sponsoring shows on TV, and putting up billboards around Rockten and the surrounding towns advertising the resort. The ads hinted at the coming summer, and how the resort has always been the place to go for a welcome break from everyday life. Which of the following approaches has Pearl Sands Resort used? a. pull strategy b. publish-subscribe method c. direct marketing d. push strategy e. vertical integration

a. pull strategy

27. Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while business-to-business companies are more likely to emphasize a ________ promotion strategy. a. pull; push b. push; pull c. pulse; pull d. continuity; pulse e. pulse; continuity

a. pull; push

26. Which promotional strategy relies mostly on personal selling and trade promotion toward market channel members? a. push b. blitz c. pull d. buzz e. pulse

a. push

118. An e-mail from Amazon.com offers free shipping on your next purchase of more than $35. This is an example of ________. a. sales promotion b. personal selling c. public relations d. an advertising objective e. a push strategy

a. sales promotion

68. One way to measure the ________ effect of advertising is to ________ past sales and past advertising expenditures. a. sales; compare b. promotion; disregard c. copy; disregard d. sales; disregard e. profit; identify

a. sales; compare

41. Which of the following is an element of developing an advertising strategy? a. selecting advertising media b. using sophisticated statistical models c. setting advertising objectives d. evaluating advertising campaigns e. setting the advertising budget

a. selecting advertising media

35. After determining its advertising objectives, the company's next step in developing an advertising program is to ________. a. set its advertising budget b. use advertising specialty c. use cash refund offers d. use coupons e. develop its message decisions

a. set its advertising budget

Service

an activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything

Total Quality Management (TQM)

an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes

Product

anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

11) Intermediaries play an important role in matching ________. A) dealer with customer B) supply and demand C) product to region D) manufacturer to product E) information and promotion

13) Costs that change directly with the level of production are referred to as ________ costs. A) fixed B) variable C) target D) capital E) payroll

14) Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction? A) physical distribution B) promotion C) financing D) risk taking E) storing goods

16) To a producer of goods, a greater number of channel levels means ________ and greater channel complexity. A) less distance between producer and end consumer B) less control C) more potential ideas D) higher taxes E) fewer channel partners

16) ________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking. A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added

18) A distribution channel is more than a collection of firms connected by various flows; it is a(n) ________ in which people and companies interact to accomplish individual, company, and channel goals. A) added value chain B) complex behavioral system C) corporate marketing system D) vertical marketing system E) multichannel system

19) An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a ________ in the channel. A) time-saving part B) specialized role C) decisional role D) informational role E) disciplinary role

19) Which of the following is an external factor that affects pricing decisions? A) the marketing mix B) competition C) top management D) marketing objectives E) marketing strategy

2) ________ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. A) Downstream from B) Upstream from C) Separated from D) Congruous to E) Parallel with

20) ________ conflict, which occurs between different levels of the same channel, is more common than ________ conflict, which occurs among firms at the same level of the channel. A) Horizontal; vertical B) Vertical; horizontal C) Contractual; corporate D) Corporate; franchise E) Wholesaler; retailer

22) A conventional distribution channel consists of one or more ________ producers, wholesalers, and retailers. A) product-related B) independent C) contract D) estranged E) merchant

23) A channel consisting of one or more independent producers, wholesalers, or retailers that seek to maximize their own profitseven at the expense of profits for the channel as a wholeis a(n) ________. A) vertical marketing system B) conventional distribution channel C) independent channel allocation D) corporate VMS E) administered vertical marketing system

23) Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

25) A corporate VMS has the advantage of controlling the entire distribution chain under ________. A) a profit-maximizing strategic plan B) single ownership C) mass distribution D) a few intermediaries E) little control

29) Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members? A) horizontal marketing system B) administered VMS C) corporate VMS D) multichannel distribution system E) conventional marketing channel

29) The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________. A) market-skimming pricing B) market-penetration pricing C) value-added pricing D) target costing E) deceptive pricing

3) Another term for the supply chain that suggests a sense and respond view of the market is ________. A) supply and demand chain B) demand chain C) channel of distribution D) distribution channel E) physical distribution

30) In a ________, two or more companies at one level join together to develop a new marketing opportunity. A) franchise B) horizontal marketing system C) corporate VMS D) multichannel distribution system E) conventional distribution channel

31) Hybrid marketing systems are also called ________. A) dual distribution systems B) multichannel distribution systems C) administered franchises D) horizontal multichannel systems E) contractual marketing systems

33) The use of multichannel systems in the United States is ________. A) decreasing B) increasing C) holding steady D) spreading abroad fast E) declining abroad

37) Designing a channel system calls for analyzing consumer needs, setting channel objectives, ________ and evaluation. A) establishing a budget B) identifying major channel alternatives C) seeking regulatory approval D) seeking legal advice E) measuring objectives

38) Which of the following should be the first step in designing a marketing channel? A) identifying channel objectives B) identifying what consumers want from the channel C) analyzing channel alternatives D) evaluating intermediaries E) exploring international opportunities

42) Which type of product might require a more direct marketing channel to avoid delays and too much handling? A) lower-priced products B) perishable products C) high-priced products D) products in their maturity stage E) products in their decline stage

43) When determining the number of channel members to use at each level, three strategies are available: intensive, exclusive, and ________ distribution. A) multichannel B) selective C) international D) direct E) extensive

45) Which type of distribution is used when the producer wants more than one, but fewer than all, of the intermediaries who are willing to carry its products? A) exclusive B) selective C) intensive D) administered E) corporate

46) Pricing a product based on consumers' reference prices is referred to as ________ pricing. A) geographical B) psychological C) allowance D) by-product E) captive-product

46) When establishing the responsibilities of channel members, the producer establishes a list price, sets discounts for intermediaries, and defines each channel member's ________. A) sales volume B) territory C) legal rights D) customers E) mission

48) ________ prices are carried in buyers' minds and used when looking at a given product. A) Captive-product B) Reference C) Promotional D) Geographical E) Dynamic

49) It is common for international marketers to ________ their channel strategies for each country. A) extend B) adapt C) restrict D) seek approval for E) eliminate

52) A company should think of its intermediaries as both its ________ and ________. A) competitors; partners B) customers; partners C) competitors; marketers D) customers; employees E) competitors; customers

54) Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called ________. A) exclusive distribution B) exclusive dealing C) selective distribution D) exclusive pricing E) disintermediation

56) Exclusive territorial agreements are normal in ________. A) vertical marketing systems B) franchises C) integrated marketing systems D) horizontal marketing systems E) supply chain management

59) Marketing logistics involves which of the following distribution flows? A) outbound and inbound B) outbound, inbound, and reverse C) inbound and reverse D) outbound and reverse E) outbound

6) A company's channel decisions directly affect every ________. A) channel member B) marketing decision C) customer's choices D) employee in the channel E) competitor's actions

61) Which of the following innovations has created opportunities for significant gains in distribution efficiency? A) tying agreements B) Web-based logistics systems C) partner relationship management D) contractual vertical marketing systems E) storage warehouses

62) The goal of marketing logistics should be to provide a ________ level of customer service at the least cost. A) maximum B) targeted C) moderate D) minimum E) competitive

64) To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation. A) reduction-inventory management B) just-in-time logistics C) limited inventory logistics D) supply chain management E) economic order quantity

69) Companies manage their supply chains through ________. A) skilled operators B) information C) the Internet D) transportation modes E) competitors

7) Distribution channel decisions often involve ________ with other firms, particularly those that involve contracts or relationships with channel partners. A) short-term commitments B) long-term commitments C) major problems D) financial losses E) disagreements

70) Using ________, retailers can share real-time data on sales and current inventory levels with suppliers who take responsibility for ordering and delivering products to retailers, thereby saving time and money. A) dual distribution modes B) continuous inventory replenishment systems C) the Internet D) their own trucking and distribution systems E) integrated distribution

74) The success of each channel member depends on the performance of ________. A) key channel members B) the entire supply chain C) the channel captain D) the manufacturer E) the wholesaler

79) Joanie Calvert is experiencing a disagreement with intermediaries in the channel over who should do what and for what rewards. Joanie is experiencing ________. A) channel delusion B) channel conflict C) channel disintermediation D) channel mismanagement E) channel intermediation

85) Which of the following is an example of a multichannel distribution system? A) Wal-Mart locating to several countries B) J. C. Penney's catalog and retail store sales C) Avon's door-to-door distribution D) Starbuck's location inside of book stores E) a hotel providing guest privileges at a health spa across the street

87) When Netflix began delivering DVDs directly to customers through the mail instead of using a brick-and-mortar system, Netflix was following the trend of ________. A) indirect marketing B) disintermediation C) a franchise system D) exclusive distribution E) selective distribution

9) Providing extra amenities to differentiate and support high-priced products is referred to as ________ pricing. A) high-low B) value-added C) target return D) everyday low E) cost-plus

95) Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should consider using ________ as its main carrier. A) rail B) air C) truck D) the Internet E) water

Combining several products and offering the collection at a reduced price is referred to as ________ pricing. A) by-product B) product bundle C) captive-product D) optional-product E) product line

Selling accessory products along with the main product is referred to as ________ pricing. A) product bundle B) optional-product C) market-penetration D) by-product E) product line

31. _____ is used heavily when introducing a new product category. The objective is to build primary demand. a. Persuasive advertising b. Informative advertising c. Comparative advertising d. Patronage advertising e. Institutional advertising

b. Informative advertising

47. _____ is the first step in creating effective advertising messages—deciding what general message will be communicated to consumers. a. Eliminating advertising clutter b. Message strategy c. Media opportunity d. Rewarding consumers e. Selecting the medium

b. Message strategy

49. _____ tend to be plain, straightforward outlines of benefits and positioning points that the advertiser wants to stress. a. Sales promotions b. Message strategy statements c. Creative concept statements d. Big idea statements e. Branded entertainment plans

b. Message strategy statements

19. _____ is the company's most expensive promotion tool. a. Advertising b. Personal selling c. Mass media d. Public relations e. Publicity

b. Personal selling

Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. a. interactive marketing b. advertising c. public relations d. Personal selling

b. adversiting

55. The goal of ________ is to make ads themselves so entertaining or useful that people want to watch them. a. branded entertainment b. advertainment c. audience engagement d. continuity scheduling e. pulse scheduling

b. advertainment

36. Using the ________ method for setting an advertising budget, the company starts with total revenues, deducts operating expenses and capital outlays, and then devotes some portion of the remaining funds to advertising. a. percentage-of-sales b. affordable c. competitive-parity d. objective-and-task e. moving-average

b. affordable

117. Tara Keegan owns Live Well, a small chain of health stores offering a variety of natural health products and related services. In order to implement integrated marketing communications, Tara has hired a marketing communications director, whose job it will be to ensure that each ________ will deliver a consistent and positive message about the company. a. public relations message b. brand contact c. advertisement d. logo e. media vehicle

b. brand contact

6. The promotion mix is the company's primary communication activity; the marketing mix must be coordinated for the greatest communication impact. What is not included in the entire marketing mix? a. product b. competitor c. price d. place e. promotion

b. competitor

Which of the following is most likely a difference between advertising and sales promotions? A) Advertising is a sales-directed form of communication, while sales promotions are endorsed as company news. B) Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately. C) Advertising can be used to dramatize product offers, but sales promotion cannot be used for this purpose. D) Advertising can trigger quick sales, while sales promotions cannot. E) Advertising is not as effective in building long-term brand preferences as sales promotions are.

B) Advertising is an invitation to buy the product, while a sales promotion is an incentive to buy the product immediately.

________ advertising would most likely result in advertising wars between competitors. A) Reminder B) Comparative C) Personal D) Informative E) Classified

B) Comparative

Which of the following is a disadvantage of using a magazine as an advertising medium? A) It has a poor pass-along readership. B) It involves high costs. C) It has low geographic selectivity. D) It has low credibility and image. E) It consists of low-quality reproduction.

B) It involves high costs.

Which of the following is true of public relations? A) It provides quick incentives to make product purchases. B) It is not a sales-directed form of communication. C) It involves training a dedicated sales force to meet customers. D) It cannot be used to dramatize a product or company. E) It is the most widely used promotional tool.

B) It is not a sales-directed form of communication.

Which of the following is true of direct marketing? A) Its marketing message is fixed and does not change according to the customer's requirements. B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships. C) It is presented as company news rather than as a sales-directed communication. D) It does not involve any interaction between the company and its customers. E) It is an impersonal promotion tool that hinders two-way communication.

B) It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.

Which of the following is a shortcoming of advertising? A) It does not allow dramatization of the brand or company. B) It only provides one-way communication with customers. C) It is too customized and only attracts small, niche markets. D) It reaches targeted customers too slowly in most cases. E) It is the most costly promotion tool for companies.

B) It only provides one-way communication with customers.

Which statement is most likely true about the affordable method of setting an advertising budget? A) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish. B) Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues. C) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year. D) Spending on advertising is calculated as a percentage of the unit sales price. E) Spending on advertising is based on a competitor's advertising outlays.

B) Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues.

A product concept is ________. A) the most promising product idea that develops at the brainstorming stage B) a detailed version of a product idea stated in meaningful consumer terms C) the way consumers perceive an actual or potential product D) a detailed strategy to promote the launch of a new product E) a product idea that is generated through crowdsourcing

B) a detailed version of a product idea stated in meaningful consumer terms

Which of the following promotion mix approaches involves a producer promoting a product to different channel members who in turn promote the product to customers? A) direct marketing B) a push strategy C) the publish-subscribe method D) a pull strategy E) vertical integration

B) a push strategy

The aim of ________ is to make ads so engaging or useful that people want to watch them. A) branded entertainment B) advertainment C) social advertising D) subliminal advertising E) infotainment advertising

B) advertainment

An innovation management system would most likely be used by ________. A) managers to update details about customer information B) brand managers to collect, review, and evaluate new product ideas C) suppliers to access inventory information D) product managers to track logistics of a new product E) human resource managers to update information on employee incentives

B) brand managers to collect, review, and evaluate new product ideas

Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas. A) marketing strategy development B) crowdsourcing C) concept development D) business analysis E) test marketing

B) crowdsourcing

The new product development process usually starts with ________. A) idea screening B) idea generation C) concept development D) concept testing E) market strategy development

B) idea generation

Quest Inc. recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Quest managers will most likely use ________ next to arrive at a realistic number of ideas to adopt. A) crowdsourcing B) idea screening C) concept testing D) concept development E) business analysis

B) idea screening

Which of the following steps of the new product development process would most likely use an R-W-W framework? A) idea generation B) idea screening C) concept testing D) test marketing E) commercialization

B) idea screening

Inglast, a chocolate producer, is faced with a class action suit when customers find pieces of plastic in boxes of cocoa powder. Inglast settles the case and then releases an advertising campaign to show the new and improved safety seals on all containers of cocoa powder. Which kind of advertisement has Inglast most likely used? A) classified B) informative C) comparative D) personalized E) reminder

B) informative

In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features? A) product development B) introduction C) growth D) maturity E) adoption

B) introduction

In a sequential new product development process, concept testing is most likely to be followed by ________. A) idea screening B) marketing strategy development C) business analysis D) product development E) test marketing

B) marketing strategy development

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC. A) introduction B) maturity C) growth D) decline E) incubation

B) maturity

According to the text, the most logical budget-setting method in advertising is the ________ method. A) adaptive-control B) objective-and-task C) competitive-parity D) affordable E) percentage-of-sales

B) objective-and-task

As a result of ________, a company cannot make its product illegally similar to a competitor's already established product. A) anti-monopoly laws B) patent laws C) antitrust laws D) product warranties E) product liability

B) patent laws

Which of the following promotion tools will most likely make a consumer feel the need to listen and immediately respond to a seller? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

B) personal selling

Which of the following types of promotion tools requires the most interaction with a customer? A) digital advertising B) personal selling C) sales promotion D) public relations E) television advertising

B) personal selling

In a sequential new product development process, once a product or service passes the business test, it moves into ________. A) concept development B) product development C) test marketing D) strategy development E) commercialization

B) product development

In a marketing communications mix, ________ refers to any short-term incentives to encourage the purchase of a product or service. A) advertising B) sales promotion C) personal selling D) crowdsourcing E) public relations

B) sales promotion

Which of the following is an example of narrowcasting using advertisements? A) running an ad for a new line of cars on cable TV B) showing ads for diapers to would-be mothers in hospitals C) handing out promotional leaflets for a new restaurant to passers-by D) showing video game ads at a college football game E) uploading movie ads on Web sites like YouTube

B) showing ads for diapers to would-be mothers in hospitals

The ________ style of advertising shows ordinary people clearly using a product in a normal setting. A) personality symbol B) slice of life C) mood or image D) testimonial evidence E) technical expertise

B) slice of life

An ad that shows real-life examples of people whose lives have changed due to a product is an example of the ________ style of advertising. A) scientific evidence B) testimonial evidence C) technical expertise D) mood or image E) fantasy

B) testimonial evidence

42. Traditionally, the creative department developed good advertisements, and then the media department selected the best media for carrying those advertisements to desired target audiences. This often caused ________. a. sales promotions b. friction c. advertising specialty d. integrated service e. marketing myopia

b. friction

15. The concept of ________ marketing communications suggests that the company must blend the promotion tools carefully into a coordinated ________. a. affordable; promotion mix b. integrated; message c. mass; integration d. segmented; brand image e. brand contact; image

b. integrated; message

17. To produce better communications consistency, a unified company image, and greater sales impact, some companies hire a(n) ________. a. advertising agency b. marketing communications director c. public relations specialist d. personal sales force e. media planner

b. marketing communications director

116. A.Y. McDonald, a manufacturer of pumps and plumbing valves, employs regional salespeople to sell its products to wholesalers and cities. This is an example of ________. a. sales promotion b. personal selling c. public relations d. direct marketing e. advertising

b. personal selling

Purina Dog Chow sells more than the same size store brand dog food even though the store brand dog food costs $0.50 less per bag. This is known as brand

Brand equity

The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands is known as _______.

Business buying process

11) ________ are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. A) Shopping products B) Unsought products C) Specialty products D) Industrial products E) Line extensions

12) ________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying. These products require a lot of advertising, personal selling, and other marketing efforts. A) Specialty products B) Line extensions C) Unsought products D) Shopping products E) Staples

15) ________ are industrial products that aid in the buyer's production or operations, including installations and accessory equipment. A) Materials B) Parts C) Capital items D) Specialty items E) Supplies

19) ________ is defined as the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well being and that of society. A) Unsought product marketing B) Internal marketing C) Social marketing D) Product line E) Interactive marketing

23) ________ is an approach in which all the company's people are involved in constantly improving the products, services, and business processes. A) Product quality B) Brand equity C) Total quality management D) Specialty product marketing E) Positioning

27) In assessing which new features to add to a product, a company must weigh each feature's ________ to customers versus its ________ to the company. A) cost; line extension B) cost; service C) value; cost D) service; line extension E) equity; cost

33) At the very least, the ________ identifies the product or brand. It might also describe several things about the product and promote the brand. A) line extension B) social marketing C) label D) specialty product E) package

35) ________ has been affected by the need to include unit pricing, open dating, and nutritional information. A) Branding B) Packaging C) Labeling D) Product line filling E) Product mixing

36) Many companies now use a combination of phone, e-mail, fax, Internet, and other technologies to provide ________ . A) labeling information B) brand equity C) support services D) packaging advantages E) product mixes

40) An alternative to product line stretching is ________, adding more items within the present range of the line. A) product mix B) interactive marketing C) product line filling D) co-branding E) service marketing

43) Product mix ________ refers to the number of different product lines the company carries. Procter & Gamble markets 250 brands organized into many product lines. A) length B) height C) width D) perimeter E) depth

45) The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. A) length B) depth C) consistency D) width E) perimeter

48) A key element in a company's relationship with consumers, a ________ represents consumers' perceptions and feelings about a product and its performance. A) product line B) product experience C) brand D) service E) product attribute

49) Which of the following is NOT one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength? A) brand differentiation B) brand knowledge C) brand valuation D) brand esteem E) brand relevance

5) Product planners need to consider products and services on three levels. Each level adds more customer value. The most basic level is the ________, which addresses the question, "What is the buyer really buying?" A) actual product B) augmented product C) core customer value D) co-branding E) exchange

52) Which of the following is the lowest level on which marketers can position their brands in target customers' minds? A) interactive marketing B) internal marketing C) product attributes D) strong beliefs and values E) added service

54) Which of the following is NOT a desirable quality for a brand name? A) It should suggest something about the product's benefits and qualities. B) It should be easy to pronounce, recognize, and remember. C) The brand should almost always be a long word to get attention. D) The name should translate easily into foreign languages. E) It should be distinctive.

56) In the competition between ________ and ________ brands, retailers have the advantages of controlling what products will be stocked, where products will be stocked, what prices will be charged, and which products will be featured in print promotions. A) national; manufacturer's B) store; private C) national; private D) store; licensed E) private; distributor

59) ________ occurs when two established brand names of different companies are used on the same product. A) A brand extension B) Brand equity C) Co-branding D) Internal marketing E) Cannibalization

60) In most ________ situations, one company licenses another company's well-known brand to use in combination with its own. A) brand extension B) brand equity C) co-branding D) internal marketing E) line extension

61) Which of the following is an advantage offered by co-branding? A) Manufacturers do not have to invest in creating their own brand names. B) Retailers have exclusive products that cannot be purchased from competitors. C) A company can expand its existing brand into a category it otherwise might have difficulty entering alone. D) Advertising, sales, promotion, and marketing must be carefully coordinated. E) Brand equity is stabilized.

64) A ________ involves the use of a successful brand name to launch new or modified products in a new category. A) line extension B) product line C) brand extension D) private brand E) brand symbol

68) While advertising campaigns can help to create name recognition, brand knowledge, and maybe even some brand preference, brands are not maintained by advertising but by ________. A) marketing experience B) line extensions C) brand experience D) product mix E) word-of-mouth elements

70) ________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought. A) Service inseparability B) Service variability C) Service intangibility D) Service perishability E) Service heterogeneity

77) A hickory rocking chair, handmade by an Amish woodcarver in Lancaster, Pennsylvania, from locally grown wood is an example of a(n) ________. A) convenience product B) shopping product C) specialty product D) service E) augmented product

80) Which of the following does NOT belong to the materials and parts group of industrial products? A) farm products such as wheat B) natural products such as iron ore C) repair and maintenance items D) petroleum E) lumber

91) A manager of a Holiday Inn said, "We have power and value in the market and people are willing to pay for it." This manager is referring to ________. A) social marketing B) specialty products C) brand equity D) line filling E) product length

92) Costco's Kirkland products are an example of a(n) ________. A) organizational brand B) support brand C) private brand D) sponsorship brand E) manufacturer's brand

95) Manor Plaza Barber's customers have noticed that the quality of a haircut depends on who provides it as well as when, where, and how it is provided. What have the customers noticed? A) service intangibility B) service inseparability C) service variability D) service perishability E) service distinction

99) What type of consumer products does Marks manufacture? A) industrial B) convenience C) specialty D) shopping E) unsought

A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n)________ approach. A. intradepartmental new product development B. sequential new product development C. team-based new product development D. simulated test market E. controlled test market

Chef Brown's Health Food Store sells nutritional, energy-producing foods. Product prices are adjusted frequently to meet the needs of individual customers and situations. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing. A) zone B) competition-based C) dynamic D) basing-point E) penetration

Consumers rely less on price to judge the quality of a product when they ________. A) lack information about the product B) are unable to research the product C) have prior experience with the product D) are unable to judge the quality of the product E) rely on cues from sellers to differentiate a high or low price

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n.)________. A. form B. fashion C. fad D. style E. drift

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product? A. test marketing B. idea screening C. business analysis D. marketing strategy development E. concept testing

How do firms that use captive-product pricing make up for the low prices of their main products? A) They reduce the cost of the captive products. B) They provide the captive products as freebies. C) They set high markups on the captive products. D) They increase the price of the main products. E) They offer the captive products and main products together at a reasonable price.

If a product passes both the concept test and the product test, the next step is most likely to be ________. A. marketing strategy development B. product development C. test marketing D. business analysis E. concept development

Metro Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________ pricing. A) time-based B) location-based C) customer-segment D) by-product E) product form

Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market. In this case, Penny Bank is using ________. A) market skimming B) psychological pricing C) predatory pricing D) deceptive pricing E) cost-plus pricing

Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________. A) mass production B) cost-plus pricing C) target costing D) value-added pricing E) target return pricing

The second part of a marketing strategy statement describes the ________ of a new product. A. marketing mix strategy B. profit goals C. planned price D. target market E. planned value proposition

Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) pure monopsony

Value-based pricing is the reverse process of ________ pricing. A) good-value B) target costing C) cost-based D) value-added E) competition-based

When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________. A) elastic B) flexible C) inelastic D) variable E) cyclical

Which of the following conditions is most likely essential for implementing a successful market-penetration pricing strategy for a product? A) The product's quality supports its high price. B) Alternative products can enter the market easily. C) The market for the product is highly price sensitive. D) Prices increase incrementally as sales volume increases. E) Production costs rise with an increase in marketing efforts.

Which of the following is true of the product life cycle (PLC.? A. All products generally go through all five stages of the PLC. B. All products pass through the stages of PLC in the same order. C. It is generally difficult to forecast the sales level at each PLC stage. D. The PLC concept can be applied to styles but not to fashions and fads. E. Product forms have longer life cycles than product classes.

Which of the following pricing strategies is the opposite of FOB-origin pricing? A) basing-point pricing B) dynamic pricing C) uniform-delivered pricing D) freight-absorption pricing E) zone pricing

Which of the following sets the upper limit for a product's pricing? A) profits B) product costs C) consumer perceptions of value D) elements of the product mix E) competition

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings. A. Market strategy development B. Concept testing C. Test marketing D. Concept development E. Business analysis

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. A) Competition-based B) Value-added C) Cost-based D) Good-value E) Demand-based

________ pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers. A) Predatory B) Psychological C) Deceptive D) Cost-plus E) Allowance

________ refers to the amount of money charged for a product or service. A) Payroll B) Profit C) Price D) Cost E) Salary

Which of the following is most likely true of a product in the maturity stage of the product life cycle? A) Sales are zero, and the company's investment costs mount. B) New competitors enter the market. C) A slowdown occurs in sales growth. D) Sales increase with decreasing competition. E) New distribution channels are acquired.

C) A slowdown occurs in sales growth.

________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A) Sales promotion B) Personal selling C) Advertising D) Public relations E) Direct marketing

C) Advertising

________ involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy a company's objectives. A) Vendor analysis B) Portfolio analysis C) Business analysis D) SWOT analysis E) Concept analysis

C) Business analysis

Which of the following is an effect of the advancement of technology on marketing? A) Fragmented markets have assimilated into a few mass markets. B) Marketers go through more intermediaries to connect with consumers. C) Consumers rely less on marketer-supplied information than in the past. D) Marketers have increasingly moved toward mass-marketing techniques. E) Marketers tend to supply less information to consumers than in the past.

C) Consumers rely less on marketer-supplied information than in the past.

Which of the following is true of the product life cycle (PLC)? A) All products generally go through all five stages of the PLC. B) All products pass through the stages of PLC in the same order. C) It is generally difficult to forecast the sales level at each PLC stage. D) The PLC concept can be applied to styles but not to fashions and fads. E) Product forms have longer life cycles than product classes.

C) It is generally difficult to forecast the sales level at each PLC stage.

Which of the following is a disadvantage of standardization of advertising messages? A) It gives rise to higher advertising costs. B) It complicates the advertising process. C) It is less responsive to local market needs. D) It tends to suffer from poor coordination. E) It gives rise to inconsistent messages.

C) It is less responsive to local market needs.

Lizar Telecommunications are manufactures of cell phones and related accessories. Michael Starr, a movie director, contacted Lizar to help fund his new movie. Lizar agreed to provide funding on the condition that Lizar cellphones be used in the movie, and that the brand be prominent in its scenes. What kind of advertising technique has Lizar adopted here? a. vertical integration b. product placement c. advertainment d. genofencing e. subliminal advertising

b. product placement

Which of the following is true of personal selling? A) It is the most effective promotional tool for geographically dispersed buyers. B) It allows firms to dramatize product offers through arts and visuals. C) It is the most expensive promotional tool for companies to utilize. D) It is an ineffective method for building long-term customer relationships. E) It presents a firm's message as news rather than as a sales-directed communication.

C) It is the most expensive promotional tool for companies to utilize.

________ is the stage where a product and its proposed marketing program are introduced into realistic market settings. A) Market strategy development B) Concept testing C) Test marketing D) Concept development E) Business analysis

C) Test marketing

Which of the following is a disadvantage of using online, mobile, and social media for advertising? A) The costs are high. B) Audience selectivity is low. C) The audience controls ad exposure. D) The interactive capabilities are low. E) There is little scope for personalization.

C) The audience controls ad exposure.

Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product? A) test marketing B) idea screening C) business analysis D) marketing strategy development E) concept testing

C) business analysis

Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal? A) change distributors B) offer coupons for the toy C) change the packaging of the toy D) launch an online advertising campaign E) cut prices of the toy to attract new customers

C) change the packaging of the toy

Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate? A) standard test markets B) inventory tracking C) controlled test markets D) simulated test markets E) direct commercialization

C) controlled test markets

A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________. A) stabilization B) rebranding C) decline D) progression E) segmentation

C) decline

A company that uses telephone marketing to sell its products to customers is most likely using the promotion tool of ________. A) advertising B) public relations C) direct marketing D) retailing E) merchandising

C) direct marketing

Dazed is a bar which mostly plays trance music and has a dedicated day every week for local bands to perform. To build strong customer relations, Dazed sends text messages to customers, telling them about happy hours, bands playing that week, dedicated genre nights, and other activities. Which of the following promotion mix tools does Dazed employ to reach target customers in this scenario? A) public relations B) personal selling C) direct marketing D) crowdcasting E) retailing

C) direct marketing

Flurrbies, a line of winter accessories by a leading fashion label, quickly fell in and out of favor with customers. Flurrbies represents an example of a(n) ________. A) form B) fashion C) fad D) style E) drift

C) fad

When a product hits the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition. A) production B) decline C) maturity D) test marketing E) conception

C) maturity

The second part of a marketing strategy statement describes the ________ of a new product. A) marketing mix strategy B) profit goals C) planned price D) target market E) planned value proposition

C) planned price

A ________ is the way consumers perceive an actual or potential product. A) product audit B) product feature C) product image D) product framework E) product concept

C) product image

Lazer Telecom, a cell phone manufacturer, has signed a contract with a production house to fund a new movie. The conditions of the agreement state that the movie will feature Lazer Telecom phones onscreen. What kind of advertising technique has Lazer Telecom most likely adopted in this example? A) geofencing B) advertainment C) product placement D) vertical integration E) subliminal advertising

C) product placement

A company which uses a press release to explain the resignation of a former CEO is using ________ to maintain its brand image. A) personal selling B) sales promotion C) public relations D) direct marketing E) advertising

C) public relations

Pearl Sands is a resort in the town of Willington. It attracts the maximum number of customers in the summer. In the spring, Pearl Sands sponsors shows on TV and puts up billboards in Willington and the surrounding towns. The billboards advertise Pearl Sands as an ideal holiday spot, whether for a weekend getaway in the summer heat or for a family vacation. This is an example of a ________ strategy. A) push B) vertical integration C) pull D) publish-subscribe E) direct marketing

C) pull

Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage. A) cross-sectional B) simultaneous C) sequential D) team-based E) systematic

C) sequential

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach. A) intradepartmental new product development B) sequential new product development C) team-based new product development D) simulated test market E) controlled test market

C) team-based new product development

If a product passes both the concept test and the product test, the next step is most likely to be ________. A) marketing strategy development B) product development C) test marketing D) business analysis E) concept development

C) test marketing

In the competitive-parity method of setting an advertising budget, the budget is set based on ________. A) a percentage of future sales B) the total revenues that a company makes C) the amount spent by similar companies in the same industry D) objectives set by the company and the cost required to accomplish them E) a percentage of current sales

C) the amount spent by similar companies in the same industry

Fads are characterized by their ________. A) enduring nature that spans several generations B) low rates of adoption by consumers C) unusually high sales and rapid decline D) basic and distinctive modes of expression that seldom become unpopular E) non-attainment of the last two stages of the product life cycle

C) unusually high sales and rapid decline

Which of the following best describes the personality symbol style of advertising? A) using ordinary people to show how a product affects them in their daily lives B) using scientific evidence to support claims about a product in an advertisement C) using an animated character or mascot to represent a product in an advertisement D) using a technical expert to recommend a product in an advertisement E) using a celebrity to endorse a product in an advertisement

C) using an animated character or mascot to represent a product in an advertisement

A company launching a new product must first decide ________. A) where to launch the product B) the sample size of the market C) when to launch the product D) the viability of a global launch E) the budget for print advertising

C) when to launch the product

P&G introduced its Duncan Hines ready-to-spread frosting in a small geographic area. When General Mills became aware of the product, it rushed to market its own Betty Crocker ready-to-spread frosting, which eclipsed the Duncan Hines product introduction. General Foods was able to enter the ________ stage of the new-product development process before P&G could.

Commercialization

Industrial products and services include raw materials, buildings, fixed equipment, supplies, services, and __________.

Computers and desks

Coca Cola wants Coke to be "within an arm's reach of desire at every beverage occasion." Advantages to Coke of intensive distribution include:

Consumer convenience

Marketing system in which independent firms at different levels of production and distribution join together through binding agreements

Contractual vertical

Franchise organization most likely follows:

Contractual vertical marketing system

What are the different aspects of your product?

Core Customer Value, Actual Product, Augmented Product

Combines successive stages of production and distribution under single ownership, where channel leadership is established through common ownership

Corporate vertical

Introduction stage goals

Create Awareness for product and brand

Decline Stage Strategy

Cut costs, no development Simplify product line Minimal advertising Consider exiting with grace

1) We define a ________ as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. A) private brand B) service variability C) service D) product E) service encounter

13) ________ are those products purchased for further processing or for use in conducting a business. A) Unsought products B) Specialty products C) Shopping products D) Industrial products E) Accessories

25) Which of the following types of quality refers to freedom from defects and consistency in delivering a targeted level of performance? A) private brand B) product C) total quality management D) conformance E) adherence

38) The major product line decision involves ________. A) line stretching B) moving the line upward or downward C) product line filling D) product line length E) product packaging

46) A company can increase its business in four ways. Which is NOT one of these ways? A) It can add new product lines, thus widening its product mix. B) It can lengthen its existing product lines. C) It can add more versions of each product and thus deepen its product mix. D) It can discontinue some of its lines. E) It can increase the consistency of its product mix.

53) The strongest brands go beyond attributes or benefit positioning; they are positioned on ________. A) desirable benefit B) good packaging C) service inseparability D) strong beliefs and values E) customer image

62) A company has four choices when it comes to developing brands. What is NOT one of those choices? A) line extension B) brand extension C) multibrands D) width and depth extension E) new brands

65) Which of the following is a potential drawback of multibranding? A) Consumers may become confused about the image of the main brand. B) An overextended brand name might lose its specific meaning for consumers. C) Different product features can appeal to consumers with different buying motives. D) The company's resources may be spread over too many brands. E) The company can occupy more retail shelf space.

69) Service providers must consider four special characteristics when designing marketing programs. Which is NOT one of these characteristics? A) intangibility B) inseparability C) perishability D) interactive marketing E) variability

7) Product planners must design the actual product and find ways to ________ it in order to create the bundle of benefits that will provide the most satisfying customer experience. A) promote B) package C) brand D) augment E) present

73) Through ________, the service firm trains and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction. A) service inseparability B) service intangibility C) service variability D) internal marketing E) external marketing

79) Mabel Lu is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) ________ product. A) convenience B) unsought C) specialty D) shopping E) augmented

87) Which of the following is the most important for product designers to consider as they develop a product? A) which product features can be added to create higher-level models B) how the product appears C) what the product's technical specifications are D) how customers will use and benefit from the product E) how the product is packaged to attract spontaneous purchases

89) Which of the following is(are) examples of product line depth? A) hamburger and cheeseburger B) hamburger and fries C) Coke and Diet Coke D) A and C E) all of the above

96) The impossibility of a barber storing haircuts for later sale is an example of which of the following? A) service intangibility B) service inseparability C) service variability D) service perishability E) low-context services

Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) uniform-delivered

In a sequential new product development process, which of the following is true of the product development step? A. Product development is usually followed by a business analysis of the product. B. Product development involves introducing a product into realistic market settings. C. Product development avoids testing products on actual customers due to liability concerns. D. Product development is usually followed by test marketing. E. Product development helps top management review profit projections.

Internal sources of new product ideas for a company include its ________. A. customers B. distributors C. suppliers D. employees E. competitors

Introducing a new product into the market is called ________. A. test marketing B. segmentation C. product development D. commercialization E. market penetration

Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra? A. sales outsourcing B. product modification C. industry repositioning D. product harvesting E. marketing mix modification

Vac "N" Sew, a consumer electronics outlet, offers a price reduction of $100 when customers bring in a used vacuum cleaner and exchange it for a new vacuum cleaner or sewing machine. This is an example of a ________. A) functional discount B) cash discount C) seasonal discount D) trade-in allowance E) by-product allowance

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) geographical pricing D) promotional pricing E) dynamic pricing

When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs, the firm is granting ________. A) cash discounts B) seasonal discounts C) quantity discounts D) promotional allowances E) trade-in allowances

When a firm varies the price of a product by the season, month, day, or even hour, without changing product features, it is using ________ pricing. A) product form B) market-penetration C) market-skimming D) time-based E) value-added

Which of the following statements is most likely true about the product life cycle? A. Throughout the product introduction stage, sales are zero. B. The growth stage is the longest stage of the product life cycle. C. Profits are nonexistent in the growth stage. D. Growth is a period of rapid market acceptance and increasing profits. E. Maturity is the period when sales fall off but profits continue to rise.

________ costs refer to the sum of the fixed and variable costs for any given level of production. A) Target B) Marginal C) Value-based D) Total E) Break-even

________ pricing involves charging a constant low price with few or no temporary price discounts. A) High-low B) Target return C) Cost-plus D) Everyday low E) Market-skimming

Which of the following statements is most likely true about the product life cycle? A) Throughout the product introduction stage, sales are zero. B) The growth stage is the longest stage of the product life cycle. C) Profits are nonexistent in the growth stage. D) Growth is a period of rapid market acceptance and increasing profits. E) Maturity is the period when sales fall off but profits continue to rise.

D) Growth is a period of rapid market acceptance and increasing profits.

Which statement is most likely true about idea generation in the new product development process? A) Idea generation is most effective when it occurs after idea screening. B) Most companies set a limit for the number of ideas generated to simplify the process. C) Intrapreneurial programs enable customers to contribute to the idea generation process. D) Idea generation is usually followed by procedures that reduce the total number of ideas. E) A company can either develop ideas through internal or external sources but not through both.

D) Idea generation is usually followed by procedures that reduce the total number of ideas.

________ advertising is used heavily when introducing a new product category. A) Reminder B) Comparative C) Personal D) Informative E) Persuasive

D) Informative

What is the primary disadvantage of outdoor advertising? A) It provides low flexibility. B) It permits low repeat exposure. C) It provides poor positional selectivity. D) It provides little audience selectivity. E) It has high message competition

D) It provides little audience selectivity.

Which of the following is a disadvantage of a team-based approach to new product development? A) It lengthens the time required to get the right products to market. B) It involves the use of a rigid, sequential product development approach. C) A bottleneck at one place can seriously hinder the entire project. D) Organizational confusion and tension are likely to affect the process. E) The process is highly ineffective for products with short life cycles.

D) Organizational confusion and tension are likely to affect the process.

In a sequential new product development process, which of the following is true of the product development step? A) Product development is usually followed by a business analysis of the product. B) Product development involves introducing a product into realistic market settings. C) Product development avoids testing products on actual customers due to liability concerns. D) Product development is usually followed by test marketing. E) Product development helps top management review profit projections.

D) Product development is usually followed by test marketing.

________ advertising primarily maintains brand relationships and is important for mature products. A) Comparative B) Persuasive C) Personalized D) Reminder E) Classified

D) Reminder

Which of the following is an example of a firm utilizing public relations as a promotion tool? A) a firm using its personal sales force at an expo to sell its products B) a firm sending its catalog directly to customers through e-mail C) a firm informing customers of special discounts on its Web site D) a firm providing interesting information about a product to the news media E) a firm using a celebrity to endorse a product in a television commercial

D) a firm providing interesting information about a product to the news media

Introducing a new product into the market is called ________. A) test marketing B) segmentation C) product development D) commercialization E) market penetration

D) commercialization

The team-based new product development approach saves times because departments work closely together in ________. A) divisional teams B) problem-solving teams C) self-managed groups D) cross-functional teams E) independent groups

D) cross-functional teams

Which of the following is a function of an integrated marketing communications system? A) designing products using environmentally friendly techniques B) allowing suppliers or vendors to manage the inventory of products C) controlling production levels by feedback received from customers D) delivering a consistent message on the product to each brand contact E) sharing company forecasting details with shareholders

D) delivering a consistent message on the product to each brand contact

Internal sources of new product ideas for a company include its ________. A) customers B) distributors C) suppliers D) employees E) competitors

D) employees

ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting certain safety standards in its waste disposal. ColaBlue remedies the problem by adding higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image? A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides B) tying up with local restaurants to promote exclusive sales of ColaBlue soft drinks C) lowering prices of ColaBlue's products in the short term D) holding a press conference to explain the remedial steps that ColaBlue has taken E) making new advertisements for ColaBlue products and sponsoring shows on television

D) holding a press conference to explain the remedial steps that ColaBlue has taken

The objective of ________ advertising is to build primary demand. A) reminder B) comparative C) personal D) informative E) persuasive

D) informative

Which technique is used by firms to deliver a unified and consistent image about their organizations and brands to consumers? A) logistics information management B) inventory control segmentation C) niche market penetration D) integrated marketing communications E) global marketing management

D) integrated marketing communications

Which of the following best describes the term "Madison and Vine"? A) utilizing the slice of life style of advertising B) emphasizing reach over impact in advertising C) using social media for advertising a brand D) merging advertising with entertainment E) voicing social concerns through advertising

D) merging advertising with entertainment

Tilt Entertainment, a gaming design firm, has developed a new game called World Below. In order to get wider distribution, Tilt participates in the Gaming Entertainment Expo, which is attended by both sellers and consumers. Tilt sends a team of representatives for game presentation and negotiation and a team of professional gamers to showcase World Below at the Expo. The company also sends a team to sell its other games to consumers at the Expo. Which promotion mix tool has Tilt used in this scenario? A) crowdsourcing B) public relations C) advertising D) personal selling E) crowdcasting

D) personal selling

In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. A) business analysis B) idea generation C) concept screening D) product development E) test marketing

D) product development

Tavera, an automobile company, experienced a significant decline in sales over the last 10 months of its flagship car, Tetra. In response, Tavera reduced its R&D, advertising, and sales expenditures for Tetra in an attempt to improve short-run profits. Which term best describes Tavera's actions with regards to Tetra? A) sales outsourcing B) product modification C) industry repositioning D) product harvesting E) marketing mix modification

D) product harvesting

Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A) intradepartmental teams B) idea generation teams C) product audit committees D) product stewards E) listening officers

D) product stewards

A ________ strategy involves a company spending a lot of money on advertising and promotion to induce consumers into buying the product by creating a demand vacuum. A) push B) direct marketing C) vertical integration D) pull E) publish-subscribe

D) pull

Some products that have entered the decline stage can be cycled back to the growth stage through ________. A) concept testing B) test marketing C) sole sourcing D) repositioning E) data mining

D) repositioning

Mercury Electric, a leading manufacturer of kitchen appliances, releases a new line of blenders called SpinPro. To boost sales, Mercury Electric gives scratch-and-win coupons to all buyers and provides a three-day trip to Hawaii for the winner. Which element of the promotion mix has Mercury Electric used in this scenario? A) public relations B) crowdsourcing C) advertising D) sales promotion E) personal selling

D) sales promotion

Which of the following is the first step in developing an advertising program? A) setting the advertising budget B) developing an advertising strategy C) developing a brand message D) setting advertising objectives E) evaluating advertising campaigns

D) setting advertising objectives

The first part of a marketing strategy statement describes the ________ of a new product. A) planned price B) marketing budget C) marketing mix strategy D) target market E) planned long-run sales

D) target market

Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness. A) cross-sectional B) simultaneous C) sequential D) team-based E) systematic

D) team-based

Which of the following promotion tools would best reach a geographically dispersed mass audience in a short period of time? A) direct mailing B) telephone marketing C) door-to-door selling D) television advertising E) printed-catalog marketing

D) television advertising

Price Discrimination

DIFFERENT PRICE FOR DIFFERENT PEOPLE/ DIFFERENT VERSIONS • Time: Matinees are $4.00 (segmented) • Demographics: "Student rate" • Place/convenience: Home delivery, Vending machines a pricing strategy that charges customers different prices for the same product or service -Personalized pricing -Segmented pricing -time/location pricing Charge different prices to consumers with different valuations

Maturity Stage Strategy

Defend market share against competition Consider "freshening" brand (line extensions, usage occasions) not just for breakfast any more"; disposable digital cameras Production and distribution efficiently to lower costs

Creates shortest distribution channel between a producer and a consumer

Direct marketing

Producer has guaranteed full control over product sales

Direct marketing channel

Channel conflict

Disagreement over the roles of marketing channel members Channel producers and intermediaries need to agree on -price policies -conditions of sale -territorial rights -and services provided by each party

Highly automated and designed to receive goods from various plants and supplies, take orders, fill them efficiently, and deliver goods to customers as quickly as possible

Distribution center

58) For a fee, some companies ________ names or symbols previously created by other manufacturers, names of well-known celebrities, and/or characters from popular movies and books, any of which can provide an instant and proven brand name. A) service B) market C) package D) brand E) license

76) When the Twin Six Cafe provides gourmet menu options to its customers, as well as impeccable servicewhich even allows customers to hand-select their own cuts of meat________ is(are) are evident. A) only an actual product B) only an augmented product C) only a core benefit D) both a core benefit and an actual product E) a core benefit, an actual product, and an augmented product

84) "I love New York" is an example of ________. A) corporate image advertising B) person marketing C) organization marketing D) social advertising E) place marketing

86) To achieve their social change objectives, social marketing programs ________. A) utilize only the promotional P of the marketing mix B) utilize only the promotional and product Ps of the marketing mix C) work to influence individuals' behavior to improve their well-being D) utilize all of the Ps in the marketing mix E) C and D

94) Each new iPod product introduction advances the causes of democratizing technology and approachable innovation. iPod, an expert at fostering customer community, has been ranked one of the Breakaway Brands by the brand consultancy Landor Associates. iPod is positioned on ________. A) attributes B) benefits C) variation D) selection E) beliefs and values

Setting a price for products that must be used along with a main product is known as ________ pricing. A) by-product B) market-penetration C) product line D) product bundle E) captive-product

The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing. A) good-value B) value-added C) cost-plus D) competition-based E) target return

Which of the following is an economic factor that affects the pricing decisions of a company? A) market-penetration practices B) top management decisions C) promotional activities D) reseller policies E) interest rates

Which of the following is true of the growth stage of the product life cycle? A. New competitors avoid the market. B. Prices tend to increase significantly. C. Early adopters stop buying the product. D. Profits are nonexistent at this stage. E. Sales start climbing quickly.

Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location? A) basing-point pricing B) freight-absorption pricing C) FOB-origin pricing D) zone pricing E) uniform-delivered pricing

Which of the following statements about break-even analysis is most likely true? A) It determines how customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It is used to determine the maximum price that can be set on a product. D) It is a tool marketers use to examine the relationship between supply and demand. E) It fails to consider customer value and the relationship between price and demand.

Which of the following statements is most likely true about the new product development process? A. The first step in developing a new product involves determining any budgetary or distribution limitations. B. Most firms discourage employees from contributing new product ideas because of legal concerns. C. In most cases, concept testing is followed by concept development. D. A product concept should be developed for each idea before it goes through idea screening. E. Customers, competitors, and suppliers are major sources of new product ideas.

________ pricing refers to selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business. A) Oligopolistic B) Captive C) Dynamic D) Zone E) Predatory

Which of the following statements is most likely true about the new product development process? A) The first step in developing a new product involves determining any budgetary or distribution limitations. B) Most firms discourage employees from contributing new product ideas because of legal concerns. C) In most cases, concept testing is followed by concept development. D) A product concept should be developed for each idea before it goes through idea screening. E) Customers, competitors, and suppliers are major sources of new product ideas.

E) Customers, competitors, and suppliers are major sources of new product ideas.

Which of the following is true about the introduction stage of a new product? A) Profits are typically high. B) Promotion spending is relatively low. C) Less money is needed to attract distributors. D) Companies tend to avoid basic versions of the product. E) Sales growth tends to be slow.

E) Sales growth tends to be slow.

Which of the following is true of the growth stage of the product life cycle? A) New competitors avoid the market. B) Prices tend to increase significantly. C) Early adopters stop buying the product. D) Profits are nonexistent at this stage. E) Sales start climbing quickly.

E) Sales start climbing quickly.

Which of the following is true of consumers in the new marketing communications model? A) They are more reliant on traditional methods of marketing for product information. B) They are less informed than before about companies and product marketing techniques. C) They are more reliant on mass-media marketing methods for product information. D) They are less powerful than before in affecting the way a company markets its products. E) They are better equipped to find product and brand information on their own.

E) They are better equipped to find product and brand information on their own.

Which of the following is an example of a combination of sales promotions and direct marketing? A) a company giving discounts on their product prices in order to gain a brand image B) a company releasing a nationwide television ad about every buyer having a chance to win a lottery prize C) a company holding a press conference to talk about their new product D) a company's sales representatives meeting customers directly to present customized offerings E) a company sending an e-mail to a customer about a discount on a product during a holiday season

E) a company sending an e-mail to a customer about a discount on a product during a holiday season

Which of the following is an internal source of new product ideas for a company? A) trade magazines B) marketing research firms C) government agencies D) competitor's ads E) intrapreneurial programs

E) intrapreneurial programs

Trainstar, a sportswear equipment manufacturer, releases a new line of energy drinks called VitaZing. The television ad for the energy drink shows people jogging, working out in a gym, and doing aerobics. The actors then take a break to drink VitaZing, which visibly re-energizes them and leads them to continue exercising. Which advertising style is most likely used in the VitaZing ad? A) scientific evidence B) technical expertise C) personality symbol D) testimonial evidence E) lifestyle

E) lifestyle

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit? A) adaptive-control method B) objective-and-task method C) competitive-parity method D) affordable method E) percentage-of-sales method

E) percentage-of-sales method

In a promotion mix, ________ occurs when a firm's sales force makes individual presentations to consumers for the purpose of promoting sales and building customer relationships. A) advertising B) public relations C) crowdsourcing D) merchandising E) personal selling

E) personal selling

The primary objective of ________ advertising is to build selective demand. A) reminder B) classified C) personal D) informative E) persuasive

E) persuasive

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events. A) personal selling B) sales promotion C) direct marketing D) advertising E) public relations

E) public relations

A company that offers an early bird discount to the first fifty purchasers of a new product is using the promotional tool of ________. A) direct marketing B) public relations C) advertising D) personal selling E) sales promotion

E) sales promotion

A company's external sources of new product ideas include its ________. A) managers B) salespeople C) engineers D) manufacturing staff E) suppliers

E) suppliers

In which of the following cases is little or no test marketing most likely recommended for a new product? A) when the product requires a major investment B) when management is unsure of the projected demand for the product C) when the risks associated with introducing the product are high D) when management is unsure of the marketing program for the product E) when the costs of developing and introducing the product are low

E) when the costs of developing and introducing the product are low

Gives a limited number of dealers the sole rights to distribute a company's products in their territories

Exclusive Distribution

The Memphis Rock chain of restaurants has a deal with WestEnd Cola, according to which it will serve only WestEnd sodas at its restaurants. What strategy has most likely been adopted by WestEnd Cola?

Exclusive dealing

Strategy when a seller requires only certain dealers carry its products

Exclusive distribution

Growth Stage Strategy

Extend channels- broader Advertise in mass media Defend against "me too" entrants Price to gain market share

Cost-based pricing relies on consumers' perceptions of value to drive pricing.

Everyday low pricing is a cost-based pricing strategy.

Federal legislation on price-fixing states that sellers must set prices after talking to customers and competitors.

Freight-absorption pricing is used for market skimming and holding on to monopolistic markets.

If demand hardly changes with a small change in price, the demand is said to be elastic.

If demand is elastic rather than inelastic, sellers typically consider increasing their prices.

In small companies, prices are typically set by the sales or marketing departments.

Pricing strategies usually remain the same as a product passes through its life cycle.

The demand curve shows the number of units the market will buy in a given time period at similar prices.

The simplest pricing method is break-even pricing, which involves adding a standard markup to the cost of a product.

When World Movers, a house mover, sells boxes and pads that must be used in moving a household's furniture, the company is practicing dynamic pricing.

When using product bundle pricing, sellers combine several products and offer the bundle at an increased price for increased profit.

When using product line pricing, a firm sets one price for all products in the line based on average manufacturing costs.

LEARNING CURVE

Factors influencing pricing decisions. • X% learning curve means that as cumulative production doubles, direct labor costs per unit drop to X% of original level

T/F: A multichannel marketing system is one in which a producer sells to multiple markets using the same distributional channel

False

T/F: According to the text, the goal of any logistics system should be to maximize sales, not profits

False

T/F: Inbound logistics involves managing the flow of products from an intermediary to a customer

False

T/F: Introducing intermediaries into a distribution chain increases the number of direct channel transactions between a manufacturer and its customers

False

T/F: in a vertical marketing system, producers do not use intermediaries to sell their products

False

Product costs set a(n) ________ to the price a company can charge for its product(s)

Floor

How do you create value?

Functional -"I want Brenna's shoes" Self-Expressive -"I use a Mac because I'm a creative person" Emotional -Hallmark cards make you feel warm

A manager in a garment manufacturing company decided to replace the plastic shopping bags currently used in his company with bags made of recyclable material. Consequently, he asked the operations office to gather relevant information and send a list of alternatives to him. In the business buying process, the manager is preparing a(n) ______.

General needs description

Azure Air, an airline company, offers attractive prices to customers with tighter budgets. A no-frills airline, it charges for all other additional services, such as baggage handling and in-flight refreshments. Which of the following best describes Azure Air's pricing method?

Good-value pricing

2 or more companies at one level join together to follow a new marketing opportunity

Horizontal marketing system

Executives at an automobile manufacturing company conducted a brainstorming session for selected employees. This session resulted in a large number of ideas for developing new cars after extensive R&D. The executives then planned to filter out the best ideas during the ________ stage.

Idea screening

When talking about services, inseparability refers to

Inability to separate services from providers

In supply chain management, moving products and materials from suppliers to the factory is known as

Inbound logistics

Dips in the economy and the instant price comparisons made possible by the Internet have contributed to ________.

Increased consumer price sensitivity

________ advertising is used heavily when introducing a new product category.

Informative

Type of Adopters

Innovators~2.5% Early adopters~13.5% Early Majority~34% Late Majority~34% Laggards~16%

Product distribution strategy that involves stocking a product in as many outlets as possible

Intensive

Distribution Intensity Decisions

Intensive Distribution - Convenience products, brand exposure, consumer convenience Exclusive Distribution -Controlling over the service level to end consumers, Restricting distributors from carrying competing brands Selective Distribution

Product Life cycle

Introduction Growth Maturity Decline

Which of the following is most likely a benefit of contract manufacturing?

Investing companies that are new entrants in international markets get a chance to start faster.

Value-Based Pricing

Is the best pricing Setting price based on buyer's perceptions of value rather than on seller's cost Depends on: • user characteristics/goals • usage situation • perceived benefits (Southwest Example)

VALUE-BASED PRICING

Is tied to the rest of the marketing mix

Which of the following is true of direct marketing?

It is suited for highly targeted marketing efforts and for building one-to-one customer relationships.

An advantage of cost-plus pricing is

It's easy

________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services.

Joint venturing

iclicker: The "core" value for a Dunkin' Donuts coffee is

Keeps you going

Relative to standard test marketing, controlled test marketing is

Less costly Faster

______ occurs when a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes.

Line extension

Andrew Levitt runs a retail store in Norristown. Andrew's store stocks cold weather products as Norristown mostly has sub-zero temperatures. Which of the following is evident here?

Local marketing

Rage, a leading motor vehicle manufacturer, introduces a new superbike model. It invites proposals from independent dealers who are willing to set up exclusive showrooms that only sell Rage's superbikes. Chosen dealers will sell and service the superbikes, and Rage will oversee national advertising. This is most likely an example of a(n.)________.

Manufacturer-sponsored retail franchise system

Which of the following is true about business-to-business e-procurement?

Many buyers now use the power of the Internet to pit suppliers against one another and search out better deals, products, and turnaround times on a purchase-by-purchase basis.

When marketers at Fair & Leigh Inc. selected the Millennial's, a demographic group that includes many college students, as an untapped group of potential customers for their new line of products, they were engaging in ____________.

Market targeting

Sets of interdependent organizations that help make the product or service of a company available for use by consumers or by business users

Marketing channels

Review Push vs. Pull and lifecycle Which of these tend to be most used in the growth stage of the product lifecycle?

Mass media advertising

Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the PLC. A) introduction B) maturity C) growth D) decline E) incubation

Maturity

Growth stage goals

Maximize market share of product and brand

Maturity stage goals

Maximize profit / demand for product and brand

During the growth stage of the product lifecycle, the primary goal is usually to:

Maximize share

Simulated test markets

Measure consumer responses to new products and marketing tactics in laboratory stores or simulated online shopping environments not as subject to competitor interference

Decline stage goals

Milk brand and cut costs

Clara's, a cosmetics manufacturer, sells many of its products through retail outlets. However, the firm sells a few expensive, popular products only through direct selling methods. What kind of channel arrangement does Clara's follow for all of its products together?

Multichannel distribution system

Faber Motors manufactures three lines of cars: high-end security cars for government agencies, commercial cars for consumers and individuals, and professional racing cars. The high-end security cars are sold directly to government buyers by the company. The consumer cars are sold through dedicated dealers who only sell Faber's lines at their outlets. For its professional racing cars, Faber collaborates with Radium Tires, an innovative and renowned tire manufacturer. Faber provides the engine and body, while Radium provides the tires and its expertise on the racing industry. Which term best describes Faber's channel arrangements?

Multichannel distribution system

Involves combining two or more systems of transportation to move products

Multimodal transportation

________ involves combining two or more systems of transportation to move products.

Multimodal transportation

Controlled test markets

New products and tactics are tested among controlled panels (groups) of shoppers and stores pros- less costly faster less subject to competitive interferrencr compared to standard

Buyers who face a ________ usually go through all stages of the buying process.

New task buying situation

Price ceiling

No demand above this point

Price Floor

No profits below this point

"To busy multitaskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web." This is an example of a(n) _______________.

Positioning statement

Dominant firm with cost leadership

Primary concern in pricing has to do with achieving economies of scale and scope and preventing entry. • Southwest example

Differentiated product market

Primary concern in pricing has to do with consumers' willingness to pay, rather than competitors' behavior. • iPhone example ppl dont determine willingness to pay for iphone based on price of samusung

Information needs (buyers)

Primary information • Education about basic product benefits • Demonstrations and training • Advice and consultation on early use • Comparative information • Product comparisons (e.g., versus competition) • Prices, special promotions • Quality assurance • Customization of transaction or product • Build to order, complex contract terms, etc.

Create Core Customer Value: model ->

Product attributes - branding - packaging - labelling - product support services

Which of the following refers to the course that a product's sales and profits take over its lifetime?

Product life cycle

A _________ consists of all the product lines and items that a particular seller offers for sale

Product mix

________ segmentation divides buyers into different segments based on social class, lifestyle, or personality characteristics.

Psycho-graphic

In Vina del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. No individual shop dares charge more than the going price without fearing loss of business to other shops. This exemplifies __________.

Pure competition

Companies often use simple (non-marketing) approaches to pricing.

SIMPLE APPROACHES • Cost recovery (cost-plus pricing) • Matching competitors (competitive-parity or going rate pricing) • Targeting a specific profit level (target profit pricing—based on break-even)

______ are the standards stating the amount salespersons should sell and how sales should be divided among the company's products.

Sales quotas

What are the difference between products and services?

Service intangibility -services cannot be seen, tasted, felt, or heard before purchase Inseparability -services cannot be separated from their providers Variability -the quality of services depends on who provides them and when, where and how Perishability -services can not be stored for later sale or use

Manor Plaza Barber's customers have noticed that the quality of a haircut depends on who provides it as well as when, where, and how it is provided. What have the customers noticed?

Service variability

Service Perishability

Services cannot be stored for later sale or use ex. some dentists charge patients for missed appointments because the service value existed only at that point and disappeared when the patient did not show up

Market-skimming pricing (price skimming)

Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales. Market skimming makes sense only under certain conditions. First, the product's quality and image must support its higher price, and enough buyers must want the product at that price. Second, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more. Finally, competitors should not be able to enter the market easily and undercut the high price.

Market-penetration pricing

Setting a low price for a new product in order to attract a large number of buyers and a large market share. Several conditions must be met for this low-price strategy to work. First, the market must be highly price sensitive so that a low price produces more market growth. Second, production and distribution costs must decrease as sales volume increases. Finally, the low price must help keep out the competition, and the penetration pricer must maintain its low-price position. Otherwise, the price advantage may be only temporary.

Which of the following is most likely an advantage of social media marketing?

Social media are targeted and personal.

Which statement is most likely true about the affordable method of setting an advertising budget?

Spending on advertising is calculated after operating expenses, and capital outlays are deducted from total revenues.

Consumer adoption process

Stages consumers go through in learning about a new product, trying it, and deciding whether to purchase it again

Managing a portfolio of brands (BCG).

Stars: • High growth & share • Profit potential • May need heavy investment to grow Question Marks • High growth, low share • Build into Stars/ phase out • Requires cash to hold market share Cash Cows • Low growth, high share • Established, successful SBU's •Produces cash Dogs • Low growth & share • Low-profit potential

Which of the following is an example of inbound telemarketing?

Sterrns Media advertises its services by sending letters to potential customers and prompting them to contact the firm through a toll-free number.

Gainville Inc. manufactures android phones. Each new Gainville phone launch advances the cause of democratizing technology. Gainville, an expert in fostering customer community, engages customers at a deep, emotional level, and has been ranked one of the Breakaway Brands by the brand consultancy Kendell Associates. Gainville is most likely positioned on ________.

Strong beliefs and values

________ refers to buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.

System selling

A break-even chart shows the total cost and total revenue expected at various sales volume levels of a product.

A small percentage improvement in price can generate a large percentage increase in profitability.

Andy Candy Stores prices its candy displays at ten different price levels, ranging from $2.00 per pound to $4.95 per pound. This is an illustration of price steps.

Market skimming makes sense when a product's quality and image support its higher price, and enough buyers want the product at that price.

Price discrimination is allowed if a seller can prove that its costs are different when selling to different retailers.

Target costing starts with an ideal selling price based on customer value considerations and then aims at costs that will ensure that the price is met.

Target return pricing is a variation of break-even pricing.

The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade.

The price that a company should charge in a specific country depends on the nature of the wholesaling and retailing system in that country.

Under oligopolistic competition, the market consists of only a few large sellers.

Used too frequently, promotional pricing can have a negative effect of decreasing a brand's value in the eyes of customers.

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

John assured his venture capitalists an earning of 25-percent return on equity when he began his IT startup. In order to achieve this result, he will most likely use which of the following pricing approaches?

Target return pricing

Team-based new product development

information Economic

Tends to deteriorate as it goes through intermediaries Suppliers are typically lower cost providers of complex information than channel intermediaries Where information is critical, channels tend to become shorter (fewer levels)

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

Test marketing

67. Scheduling ads unevenly, or ________, builds awareness that is intended to be carried over to the next advertising period. a. continuity b. pulsing c. hard hitting d. sequencing e. segmenting

b. pulsing

2. The use of short-term incentives to encourage the purchase or sale of a product or service is called ________. a. direct marketing b. sales promotions c. personal selling d. public relations e. publicity

b. sales promotions

12. All of the following are reasons that marketers are losing confidence in television advertising except ________. a. mass media costs continue to increase b. television offers a high cost per exposure c. many viewers are using video on demand and TiVo-like systems d. younger consumers are using different media e. audience size is on the decline

b. television offers a high cost per exposure

51. The big idea or the creative concept may emerge as a(n) ________, a phrase, or a combination of the two. a. appeal b. visualization c. differentiation d. verbalization e. statement

b. visualization

Which of the following is a direct digital marketing tool?

blog

Mintel Agro provides raw materials in the form of agricultural products to Kiltmark Food Company. Kiltmark produces flour-based edible products, which it distributes to a wholesale company called Yellowstar Trading. Yellowstar Trading then sells Kiltmark products to the discount retailer, Stroos. Stroos sells the products to consumers. Which of the following is considered a marketing intermediary in these transactions?

both Yellowstar Trading and Stroos

Actual product

brand name features design quality level packaging

____ involves a review of the sales, costs, and profit projections for a new product .. out whether they satisfy a company's objectives

business analysis

A company can expand its products in two ways:

by LINE FILLING or LINE STRETCHING

1) ________ refers to the amount of money charged for a product or service. A) Payroll B) Profit C) Price D) Cost E) Salary

10) ________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. A) Competition-based B) Value-added C) Cost-based D) Good-value E) Demand-based

12) Channel members add value by bridging the major gaps of ________ that separate goods and services from those who would use them. A) time, place, and form B) place, possession, and form C) time, place, and possession D) place, time, and need E) place, need, and distribution

15) A company designs what it considers to be a good product, calculates the expenses of making the product, and sets a price that adds a standard markup to the cost of the product. This approach to pricing is called ________ pricing. A) value-added B) good-value C) cost-plus D) competitor-based E) break-even

20) Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices for its watches, and Radox managers select an ideal selling price. Managers then determine the costs to create watches that meet the ideal selling price. The company's pricing approach is referred to as ________. A) mass production B) cost-plus pricing C) target costing D) value-added pricing E) target return pricing

21) Historically, conventional channels have lacked the leadership to ________. A) assign channel member roles and attain efficiency B) attain efficiency and assign member roles C) assign member roles and manage conflict D) set standard pricing and promotions E) set standard pricing and packaging

24) Under ________, the market consists of a few large sellers who are highly sensitive to each other's pricing and marketing strategies. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) pure monopsony

26) When demand hardly changes with a small change in the price of a product, then the demand for the product is best described as ________. A) elastic B) flexible C) inelastic D) variable E) cyclical

26) Which of the following are the three major types of vertical marketing systems? A) corporate, contractual, and chain B) contractual, corporate, and independent C) contractual, corporate, and administered D) administered, independent, and franchised E) contractual, corporate, and task

3) Which of the following sets the upper limit for a product's pricing? A) profits B) product costs C) consumer perceptions of value D) elements of the product mix E) competition

32) As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one? A) expanded sales B) expanded market coverage C) selling at a higher gross margin D) opportunities to tailor products and services to the needs of diverse segments E) A and C

35) Due in a large part to advances in technology, ________ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones. A) the vertical marketing system B) the corporate marketing system C) disintermediation D) the corporate merger E) the hostile takeover

39) To increase a channel's service level, it must provide a greater assortment of products, more add-on services, and ________. A) lower prices B) more efficiency C) faster delivery D) better terms E) follow-up

40) Companies should state their channel objectives in terms of targeted levels of ________. A) co-op advertising B) efficiency C) customer service D) conflict reduction E) profitability

41) When a company is identifying its major channel alternatives, it should consider its choices in terms of types, number, and ________ of intermediaries. A) size B) power C) responsibilities D) capacity E) none of the above

47) Consumers rely less on price to judge the quality of a product when they ________. A) lack information about the product B) are unable to research the product C) have prior experience with the product D) are unable to judge the quality of the product E) rely on cues from sellers to differentiate a high or low price

48) When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using ________ criteria to evaluate its channel options. A) selective B) adaptive C) economic D) control E) distribution

5) Most producers today sell their goods to ________. A) final users B) final users and marketing members C) intermediaries D) the government at various levels E) competitors

51) Marketing channel management calls for selecting, managing, ________, and evaluating channel members over time. A) reducing conflict B) reducing waste C) motivating D) pruning E) all of the above

52) Which of the following pricing strategies is the opposite of FOB-origin pricing? A) basing-point pricing B) dynamic pricing C) uniform-delivered pricing D) freight-absorption pricing E) zone pricing

55) Chef Brown's Health Food Store sells nutritional, energy-producing foods. Product prices are adjusted frequently to meet the needs of individual customers and situations. For example, long-time customers receive discounts. This strategy is most likely an example of ________ pricing. A) zone B) competition-based C) dynamic D) basing-point E) penetration

55) Exclusive dealing is legal as long as it does not ________ or tend to create a monopoly and as long as both parties enter into the agreement ________. A) substantially lessen competition; coercively B) restrict trade; for a cause C) substantially lessen competition; voluntarily D) interfere with competitors; forcefully E) create a smaller market; permanently

6) Value-based pricing is the reverse process of ________ pricing. A) good-value B) target costing C) cost-based D) value-added E) competition-based

60) Which of the following is NOT an area of responsibility for a logistics manager? A) information systems B) warehousing C) marketing D) inventory E) purchasing

63) The difference between distribution centers and storage warehouses is that the former are designed to ________. A) store goods for longer periods B) hold larger volumes C) move goods rather than just store them D) primarily be owned by the manufacturer E) be automated

66) Which of the following transportation modes is used for digital products? A) trucks B) rail C) the Internet D) air E) ship

67) In choosing a transportation mode for a product, shippers must balance the considerations of speed, dependability, cost, and ________. A) weight B) customer choice C) availability D) distance E) company reputation

76) In designing its marketing channel, Chairs for Every Occasion has moved from a make-and-sell view of its business, which focused on productive inputs and factory capacity as a starting point for marketing planning, to a sense-and respond view, which begins instead with the needs of target customers. With this new view, Chairs for Every Occasion is developing its ________. A) supply chain B) wholesaler chain C) demand chain D) logistics E) vertical marketing system

78) Steve's Physco Skates sells its products to Wal-Mart, who then sells them to the consumer. This is an example of a(n) ________. A) direct marketing channel B) producer channel C) indirect marketing channel D) retailer channel E) corporate vertical marketing system

8) Joe Blanco, like other producers, has discovered that his intermediaries usually offer his firm more than it can achieve on its own. Which of the following is most likely an advantage that Joe creates by working with intermediaries? A) financial support B) fast service C) scale of operation D) working relationships with foreign distributors E) promotional assistance

83) Which of the following is an example of a manufacturer-sponsored retailer franchise system? A) fast-food restaurants such as McDonald's and Burger King B) Starbucks operating within Target stores C) Ford and its network of independent franchised dealers D) licensed bottlers that bottle and sell Coca-Cola to retailers E) motels such as Holiday Inn and Ramada Inn

84) When McDonald's offers its products inside of a Wal-Mart store, it is following a ________. A) conventional distribution channel B) corporate VMS C) contractual VMS D) administered VMS E) horizontal marketing system

9) From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ________. A) channel members B) distributors C) consumers D) manufacturers E) marketers

97) When Home Depot allows key suppliers to use its stores as a testing ground for new merchandising programs, it is implementing a ________. A) shared services B) partnership management C) shared projects D) third-party project E) cross-functional, cross-company team

66. _____ means scheduling ads evenly within a given period. ________ means scheduling ads unevenly over a given time period. a. Pulsing; Continuity b. Continuity; Hard hitting c. Continuity; Pulsing d. Pulsing; Hard hitting e. Sequencing; Routing

c. Continuity; Pulsing

18. Advertising has some shortcomings. What is not one of them? a. It is impersonal. b. It can be very costly. c. It slowly reaches many people. d. It carries on one-way communications. e. It does not make audiences feel the need to respond.

c. It slowly reaches many people.

________ attempts to influence the attitudes and perception of consumers, stockholders, and stakeholders towards companies, brands, politicians, celebrities, and not-for-profit organizations. a. Cause marketing b. Lobbying c. Public relations d. Personal selling

c. Public relations

73. _____ use several tools, including the news, speeches, and special events. a. Advertising agencies b. Advertising specialists c. Public relations professionals d. Computer programmers e. Media planners

c. Public relations professionals

52. Advertising appeals should have three characteristics. Which is not one of these characteristics? a. They should be meaningful. b. They must be believable. c. They must show lifestyle. d. They should be distinctive. e. They should position the brand.

c. They must show lifestyle.

3. Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. a. sales promotion b. direct marketing c. advertising d. personal selling e. public relations

c. advertising

69. Which of the following is not a benefit of standardized global advertising? a. lower advertising costs b. greater global advertising coordination c. appeal to different demographics differ d. consistent worldwide image e. coordinated message between mass media outlets and online advertising

c. appeal to different demographics differ

13. Companies often fail to integrate their various communications to consumers because ________. a. historically, consumers have been able to distinguish between message sources b. advertising departments are reluctant to work with public relations professionals c. communications often come from different parts of the company d. personal selling and sales promotion are in direct conflict e. they have failed to understand the concept of brand contact

c. communications often come from different parts of the company

122. Avis positioned itself against market-leading Hertz by claiming, "We're number two, so we try harder." This is an example of ________. a. informative advertising b. reminder advertising c. comparative advertising d. persuasive advertising e. none of the above

c. comparative advertising

33. Persuasive advertising becomes ________ when a company directly or indirectly compares its brand with one or more other brands. a. informative advertising b. reminder advertising c. comparative advertising d. POP promotion advertising e. institutional advertising

c. comparative advertising

39. Which method of setting an advertising budget relies on analyzing competitors' spending? a. affordable method b. percentage-of-sales method c. competitive-parity method d. objective-and-task method e. integrated method

c. competitive-parity method

54. Ads that are built around dream themes use which type of execution style? a. mood or image b. musical c. fantasy d. slice of life e. scientific evidence

c. fantasy

57. In an ad, the second thing the reader typically notices is the ________, which must effectively entice the target audience to read the block of text. a. copy b. illustration c. headline d. advertising specialty e. color

c. headline

64. ER and ABC World News Tonight are both examples of ________, specific media within each general media type. a. editorial quality b. audience attention c. media vehicles d. advertising specialty e. micromedia

c. media vehicles

62. Advertisers are increasingly shifting larger portions of their budgets to media that cost less and target more effectively. All of the following benefit greatly from this shift, except ________. a. outdoor advertising b. cable television c. network television d. digital satellite television systems e. Internet advertising

c. network television

119. Mariah Goldberg, a marketing manager for a manufacturer of children's toys, is looking for ways to reach potential customers who typically avoid salespeople and advertisements. Which of the following would be the most economical promotional tool for Mariah to use? a. direct marketing b. sales promotions c. public relations d. brand contacts e. personal selling

c. public relations

25. Which promotional strategy calls for spending a lot on advertising toward final consumers? a. push b. blitz c. pull d. buzz e. pulse

c. pull

120. Clean and Clear, a large producer of all-natural hair care and beauty products, is most likely to use which of the promotion mix strategies? a. push b. pull c. push and pull d. pulse e. continuity

c. push and pull

60. The advertiser must decide on the desired media impact, known as the ________ of a message through a given medium. a. reach b. illustration c. qualitative value d. copy e. frequency

c. qualitative value

53. _____ is the message execution style that depicts one or more typical people using the product in a normal setting. a. lifestyle b. fantasy c. slice of life d. personality symbol e. testimonial evidence

c. slice of life

21. Sales promotion includes a wide assortment of tools. Which is not one of these tools? a. contests b. premiums c. telephone surveys d. coupons e. cents-off deals

c. telephone surveys

7. Today's consumers do not need to rely on marketer-supplied information about products and services because they can use ________ to seek out a wealth of information. a. public relations b. direct marketing c. the Internet and other technologies d. mass market media e. informative advertising

c. the Internet and other technologies

37. A company decides on its promotion budget by using four common methods to set the total budget for advertising. What is not one of these methods? a. the affordable method b. the percentage-of-sales method c. the integrated method d. the competitive-parity method e. the objective-and-task method

c. the integrated method

1. A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ________. a. direct marketing b. integrated marketing c. the promotion mix d. competitive marketing e. target marketing

c. the promotion mix

Which term refers to a tool used by managers to supervise their salespeople?

call plan

Which of the following is a traditional direct marketing tool?

catalog

How do Channel Members add value

channel members add value by bridging the major gaps of time, place, and possession, that separate goods and services from those who would use them

Standard test markets

choose one city with one standard strategy, ads on tv and price that would be used nationwide but is only in a city NOT nationwide Pros- test market saving money less risky in predicting regular market Cons- test market representative of whole most predicitive bc of actual markets competitors interfere with test market- visible to competitors

introducing a new product into the market is called

commercialization

Multibrands

companies often market many different brands in a given product category eg. P&G sells four brands of laundry detergent, etc.

Consumers see products as:

complex bundles of benefits that satisfy their needs

Person Marketing

consists of activities undertaken to create, maintain, or change attitudes or behaviour toward particular people - everyone uses person marketing to build their reputations

Every time a search is made using keywords related to construction, search engines display text-based advertisements and links to Regan Builders, a construction firm. The marketing tool used by Regan Builders is best referred to as a ________.

contextual advertisement

Cost Based pricing

cost recovery cost of product plus margin

________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.

cost-based

Producers use marketing intermediaries because they:

create greater efficiency in making goods available to target markets

Provider - customer interaction

customer is also present as the service is produced - a special feature of services marketing - both the provider and customer affect the service outcome

1) Which of the following is NOT a typical supply chain member? A) resellers B) customers C) intermediaries D) government agencies E) raw materials supplier

14) ________ costs refer to the sum of the fixed and variable costs for any given level of production. A) Target B) Marginal C) Value-based D) Total E) Break-even

15) In marketing terms, we say that the number of intermediary levels indicates the ________ of a channel. A) depth B) complexity C) involvement D) length E) width

27) A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________. A) agents and brokers B) working partnerships C) limited liability incorporation D) contractual agreements E) natural competitive forces

36) In many industries, traditional intermediaries are dropping by the wayside because of changes in ________ and the growth of ________ marketing. A) federal laws; business-to-business B) state and local laws; target C) franchise structure; independent D) technology; direct and online E) channel design; retail

42) When Luxury Motors gives price reductions to its new car dealers to reward them for participating in advertising and sales support programs, the firm is granting ________. A) cash discounts B) seasonal discounts C) quantity discounts D) promotional allowances E) trade-in allowances

45) When a firm varies the price of a product by the season, month, day, or even hour, without changing product features, it is using ________ pricing. A) product form B) market-penetration C) market-skimming D) time-based E) value-added

47) Channel members should be evaluated using all of the following criteria EXCEPT which one? A) economic factors B) control C) adaptive criteria D) channel leadership E) none of the above

49) What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency? A) segmented pricing B) psychological pricing C) geographical pricing D) promotional pricing E) dynamic pricing

53) Most companies practice strong PRM to forge long-term relationships with channel members. What does PRM stand for? A) primary relationship management B) potential relationship management C) perennial relationship management D) partner relationship management E) personnel roster maintenance

54) Computer Works is a computer accessories manufacturer based in Brazil. All customers in South America pay the same freight charge, $20, when they order products from the company. All customers in North America pay a freight charge of $50. The company's pricing strategy is referred to as ________ pricing. A) basing-point B) FOB-origin C) freight-absorption D) zone E) uniform-delivered

57) If the producer of a strong brand agrees to sell its brand to a dealer only if the dealer will take some or all of the rest of the line, the result is ________. A) exclusive distribution B) exclusive dealing C) always illegal D) a tying agreement

58) Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which one of the following is NOT included in this process? A) planning the physical flow of goods and services B) implementing the plan for the flow of goods and services C) controlling the physical flow of goods, services, and information D) gathering customer's ideas for new products E) A and C

68) In the proper order, identify the correct terms for these intermodal transportation combinations: rail and truck, water and truck, water and rail. A) fishyback; airtruck; trainship B) piggyback; airtruck; fishyback C) trainship; fishyback; piggyback D) piggyback; fishyback; trainship E) piggyback, fishyback; birdyback

73) Smart companies coordinate their logistics strategies and forge strong partnerships with suppliers and customers to improve customer service and reduce channel costs through ________. A) cross-functional teams B) cross-company teams C) partnering D) cross-functional, cross-company teams E) segregated departmentalization

75) Today, a growing number of firms now outsource some or all of their logistics to ________. A) cross-functional teams B) disintermediaries C) channel members D) third-party logistics providers E) competitors

77) Proud Pets, a producer of clothing and accessories for pets, has recently partnered with a regional chain of pet stores. Which of the following would Proud Pets be LEAST likely to expect from its new channel member? A) promoting its products through advertising B) assembling and packaging its products for final sale C) distributing relevant marketing research information D) identifying raw materials and other productive inputs E) negotiating on its products' prices

8) ________ pricing involves charging a constant low price with few or no temporary price discounts. A) High-low B) Target return C) Cost-plus D) Everyday low E) Market-skimming

80) When two Taco Bell restaurants have a disagreement over who should be able to sell in quantity at a discount to the local high school band, they are in a ________ conflict. A) vertical B) problematic C) no-win D) horizontal E) functional

88) Chewing gum is stocked in many outlets in the same market or community; in fact, it is placed in as many outlets as possible. This is an example of ________ distribution. A) exclusive B) selective C) multichannel D) intensive E) disintermediated

89) Which product(s) will most likely be intensively distributed? A) Olympus digital cameras B) BMW cars C) Guess blue jeans D) Coca Cola E) Nike running shoes

92) Why is it important for manufacturers to be sensitive to the needs of their dealers? A) Dealers have few legal rights. B) Poorly performing dealers will be replaced. C) Dealers fail to provide value to the entire channel system. D) Dealer support is essential to creating value for the customer. E) Manufacturers cannot break commitments to channel.

98) UPS Supply Chain Solutions, which handles all of its clients' "grunt work" associated with logistics, is an example of ________. A) integrated logistics management B) a distribution center C) selective distribution D) a third-party logistics provider E) a cross-functional, cross-company team

45. The Internet, video on demand, and DVRs (digital video recorders) present which of the following problems for marketers? a. Consumers are watching less television. b. Consumers have difficulty attending to specific advertising messages due to advertising clutter. c. Audiences are less interested in media consumption. d. Consumers have more choices about what to watch or not watch. e. Television advertising is becoming more expensive.

d. Consumers have more choices about what to watch or not watch.

8. Which of the following is not a factor in the changes occurring in today's marketing communications? a. Mass markets have fragmented, and marketers are shifting away from mass marketing. b. Changes in communication technologies are changing how companies and customers communicate with each other. c. Mass-media companies routinely invest millions of dollars in the mass media. d. Mass media no longer capture the majority of promotional budgets. e. Consumers are better informed about products and services.

d. Mass media no longer capture the majority of promotional budgets.

22. _____ consists of short-term incentives to encourage the purchase or sale of a product or service. a. A patronage reward b. A segmented promotion c. Advertising d. Sales promotion e. Publicity

d. Sales promotion

10. Companies are doing less ________ and more ________ as a result of an explosion of more focused media that better match today's targeting strategies. a. marketing; media b. media; sales c. narrowcasting; broadcasting d. broadcasting; narrowcasting e. advertising; word-of-mouth

d. broadcasting; narrowcasting

75. Logos, stationery, brochures, signs, business forms, business cards, buildings, uniforms, and company trucks are all examples of ________ that can be used to help a company create an identity that the public immediately recognizes. a. direct marketing b. social marketing c. public service activities d. corporate identity materials e. special events

d. corporate identity materials

48. Developing an effective message strategy begins with identifying ________ that can be used as advertising appeals. a. sales promotions b. premium promotions c. advertising specialties d. customer benefits e. emotions

d. customer benefits

58. Which of the following is not one of the major steps in media selection? a. deciding on reach, frequency, and impact. b. choosing among major media types. c. selecting specific media vehicles. d. deciding on format elements. e. deciding on timing

d. deciding on format elements.

Which of the following is a function of an integrated marketing communications system? a. designing products using environmentally-friendly techniques b. sharing company forecasting details with shareholders c. allowing suppliers or vendors to manage the inventory of products d. delivering a consistent message on the product to each brand contact e. controlling production levels by feedback received from customers

d. delivering a consistent message on the product to each brand contact

Samsung recently released the Galaxy Gem Smartwatch, a wearable digital watch. Samsung has started an advertising campaign that focuses on this new product, making consumers aware of the Smartwatches specific functionality. What is they type, or primary purpose, of this advertising? a. reminder advertising b. celebration advertising c. network advertising d. informative advertising

d. informative advertising

9. Which of the following is not an example of a specialized and highly-targeted media that an advertiser might use to reach smaller customer segments? a. cable television channels b. e-mail c. podcasts d. magazines e. product placement in video games

d. magazines

40. The most logical budget-setting method is the ________ method because it is based on accomplishing specific promotion goals. a. percentage-of-sales b. affordable c. competitive-parity d. objective-and-task e. exponential smoothing

d. objective-and-task

4. Which of the five major promotion tools includes building up a positive corporate image and handling unfavorable stories and events? a. sales promotion b. personal selling c. direct marketing d. public relations e. direct marketing

d. public relations

71. Lobbying, or building and maintaining relations with legislators and government officials to influence legislation and regulation, is part of ________. a. outdated business ethics b. press relations c. press agencies d. public relations e. a mass market strategy

d. public relations

34. A product in the maturity stage may require ________ advertising. a. informative b. comparative c. persuasive d. reminder e. cooperative

d. reminder

23. "Buy it now" is the message of ________. a. personal selling b. advertising c. a nonpersonal communication channel d. sales promotion e. publicity

d. sales promotion

5. Which of the following is not an aspect of the promotion mix? a. advertising b. sales promotions c. public relations d. strategic positioning e. direct marketing

d. strategic positioning

11. In the "chaos scenario" predicted by some advertising industry experts, the old mass-media communications model will be increasingly abandoned in favor of ________. a. public relations b. direct marketing c. push and pull strategies d. the possibilities of new digital technologies e. buzz marketing

d. the possibilities of new digital technologies

Botsford, a U.S. firm, builds automotive transmissions in its manufacturing facility in Taiwan to capitalize on the availability of cheap labor. Botsford's involvement in foreign markets is most likely through ________.

direct investment

direct marketing

The process in which printed catalogs, brochures, samples, and DVDs are distributed to customers using highly selective mailing lists is known as ________.

direct-mail marketing

For over ten years, Erudite, a publishing and educational company that produces college textbooks, has been selling its books online through studysmart.com, a popular online retailer that sells textbooks published by different companies. Recently, Erudite stopped selling its books through studysmart.com and set up its own website for selling its books. This change in channel organization is called ________.

disintermediation

A direct mail campaign offering a rebate on a new car is probably best suited for

driving purchases

13) Which of the following is NOT a key function that intermediaries play in completing transactions? A) promotion B) information C) matching D) financing E) negotiation

17) The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing and marketing costs. The pricing strategy used by the company is referred to as ________ pricing. A) good-value B) value-added C) cost-plus D) competition-based E) target return

18) Which of the following statements about break-even analysis is most likely true? A) It determines how customer-perceived value changes with value-added pricing. B) It is a tool used to calculate fixed costs. C) It is used to determine the maximum price that can be set on a product. D) It is a tool marketers use to examine the relationship between supply and demand. E) It fails to consider customer value and the relationship between price and demand.

51) Which of the following pricing strategies charges the same price plus freight to all customers, regardless of their location? A) basing-point pricing B) freight-absorption pricing C) FOB-origin pricing D) zone pricing E) uniform-delivered pricing

72) What is the goal of integrated supply chain management? A) to reduce costs B) to increase services with minimal cost through teamwork C) to harmonize all of the company's logistics decisions D) to reduce conflict and increase cooperation among channel members E) all of the above

82) Which of the following is an example of horizontal channel conflict? A) managers of two separate Holiday Inns disagreeing over what constitutes poor service B) United Airlines competing with Northwest Airlines for customers C) disgruntled factory workers complaining about a small pay raise D) the BMW dealership in Fort Wayne complaining that the BMW dealership in Indianapolis is situated too close E) A and D

86) Blockbuster offers DVD rentals through its Total Access online rental service and through its bricks-and-mortar stores. This is an example of a(n)________. A) contractual VMS B) administered VMS C) horizontal marketing system D) conventional distribution channel E) multichannel distribution system

93) Caterpillar, the famous heavy equipment manufacturer, has a reputation for working in harmony with its worldwide distribution network of independent dealers. Caterpillar has shared its successes with its dealers and protected its dealers during difficult economic times. This is an example of ________. A) intensive distribution B) integrated logistics management C) disintermediation D) third-party logistics E) partner relationship management

Setting a price for products that must be used along with a main product is known as ________ pricing. A) by-product B) market-penetration C) product line D) product bundle E) captive-product

61. For a long time, _____ has dominated in the media mix of national advertisers. a. the Internet b. newspapers c. television d. radio e. direct mail

e. direct mail

24. Which type of promotional tool is nonpublic, immediate, customized, and interactive? a. segmented advertising b. sales promotions c. public relations d. brand contacts e. direct marketing

e. direct marketing

28. Which of the following is not one of the four important decisions made when developing an advertising program? a. setting advertising objectives b. setting the advertising budget c. developing advertising strategy d. selecting a target market e. evaluating advertising campaigns

e. evaluating advertising campaigns

44. To succeed, an advertisement must ________. a. have a significant budget b. have a high entertainment value c. have a high frequency d. make a meaningful appeal e. gain attention and communicate well

e. gain attention and communicate well

43. Soaring media costs, focused target marketing strategies, and the growing array of new media have increased the importance of ________. a. the affordable method of setting a promotion budget b. the competitive-parity method of setting a promotion budget c. using humor to capture audience attention and interest d. implementing branded entertainment e. media planning

e. media planning

72. Which of the following functions is least likely to be performed by a public relations department? a. product publicity b. lobbying c. public affairs d. investor relations e. media vehicle selection

e. media vehicle selection

20. Which promotional tool is most effective in building up buyers' preferences, convictions, and, most importantly, actions? a. mass-market advertising b. segmented advertising c. sales promotion d. public relations e. personal selling

e. personal selling

16. With the use of integrated marketing communications, a company's mass-market advertisements, Web site, e-mail, and personal selling communications all have ________. a. equal portions of the advertising budget b. independent communications directors c. separate marketing objectives d. the same target audience e. the same message, look, and feel

e. the same message, look, and feel

___ pricing involves charging a constant low price with a few or no temporary price discounts

everyday low

The simplest way to enter a foreign market is through ________.

exporting

Line Extension

extending an existing brand name to new forms, colours, sizes, ingredients, or flavours of an existing product category eg. cheerios line of cereals includes Honey Nut, Frosted, etc.

Brand Extension

extending an existing brand name to new product categories eg. Kellogg's has extended its Special K cereal brand into a full line of cereals plus lines of crackeers, fruit crisps, snack and nutrition bars, etc

103) In creating customer value, it is more important for a company to build relationships with downstream channel partners than with upstream supplier partners.

false

104) With the success of the Internet, few producers sell through intermediaries today.

false

108) It is safe to say that distribution channels are fairly simple behavioral systems in which people and companies interact to accomplish individual company and channel goals.

false

109) Judy Smith is the manager of the local McDonald's franchise in Carterville. Recently the home office did not let her participate in co-op advertising like the other McDonald's in her district. Now she is irritated and demands fairness. This is an example of horizontal conflict.

false

111) When Sherwin Williams Paint Company has single ownership of integrated, successive stages of production and distribution, it has created a corporate VMS.

false

116) The faster the delivery, the greater the assortment provided, and the more add-on services supplied, the more the channel's service level is restricted.

false

117) Intensive distribution seeks many outlets in a market, while selective distribution seeks only one outlet in a given market area.

false

120) Distribution systems are relatively consistent from county to country, making it easy for international marketers to design channels.

false

122) Some major corporations such as Procter & Gamble and General Motors have developed logistics systems that both maximize customer service and minimize distribution costs.

false

124) When shipping large amounts of bulk products such as forest products, coal, sand, or rock over long distances, a company should choose large trucks because of their low cost per ton shipped.

false

How does Ikea use target costing?

flat pack- saves money on shipping ikea effect- makes customers think they accomplished something by building it so they dont have to hire people to go and put the furniture together for them like other furniture stores offers high quality to customers

In which of the following steps of the selling process does a salesperson make sure that there is proper installation and support after a buyer receives the initial order?

follow-up

Elastic Demand

for each 1% drop in price there is a greater than 1% increase in quantity demanded

Inelastic Demand

for each 1% drop in price there is a less than 1% increase in quantity demanded

Conformance Quality

freedom from defects and consistency in delivering a targeted level of performance - beyond quality level, high quality also can mean high levels of quality consistency

The Stage Gate Process for New Product Development

funnel down ideas to get rid of bad ones to get good ideas idea generation idea screening concept development and testing marketing strategy development business anaylsis product development test marketing commercialization

In which of the following steps of the selling process does a salesperson seek out, clarify, and overcome any customer disapproval to buying?

handling objections

holding a press conference to explain the remedial steps that ColaBlue has taken

TruMart, a leading retail chain, decides to open a restaurant inside its stores, so the firm partners with MeatMe, a popular burger chain. MeatMe opens a restaurant inside TruMart. The MeatMe chain of restaurants also has a deal with Westman Cola to serve only Westman soft drinks at its outlets. This arrangement will benefit all three companies. What kind of channel arrangement is being followed in this case?

horizontal marketing system

Japan is a major exporter of manufactured goods, services, and investment funds. Japan also exports its goods to other types of economies for raw materials and semifinished goods. The country's industrial structure is referred to as a(n) ________ economy.

industrial

The objective of ________ advertising is to build primary demand.

informative

Zephyr Inc., an electronics manufacturer, wants to enter the commercial tracking device market with its latest product, FindIt. Unlike other tracking devices, FindIt is very small and relatively cheap, but it can be used only within small areas as it has a low detection- range. Which type of advertising would be best for FindIt?

informative advertising

Product Line Filling

involves adding more items within the present range of the line

A company has 4 choices when it comes to developing brands:

it can introduce: - line extensions - brand extensions - multibrands - new brands

Introduction Stage Strategy

keep prices high (skim) seek innovators through selected channels Promotional budget is very high

Montano Boutiques promotes its brand in new international markets by providing rights to local boutiques to use its patented designs and brand name. In this case, Montano Boutiques' market-entering strategy is referred to as ________.

licensing

lifestyle

In which of the following structures does a company organize its sales force along client or industry lines?

market sales-force structure

Quality Level

marketer must first choose: - that will support the product's positioning

Why are diamonds so valuable and water so cheap?

marketing can create value that has no intrinsic value marketing created value for diamonds through advertising

in a sequential new product development process, concept testing is most likely to be followed by

marketing strategy development

Greater Service Value

more effective and efficient customer value creation and service delivery, which results in... (satisfied and loyal customers)

Satisfied and Productive Service Employees

more satisfied, loyal, and hard-working employees, which results in... (greater service value)

Product Line Stretching

occurs when a company lengthens its product line beyond its current range

Glenda is searching airline schedules on HolApp, a mobile Web application. While browsing the application, a banner appears on the mobile screen showcasing offers and discounts on air tickets. The banner is best referred to as a(n) ________.

online display advertisement

Internal Marketing

orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction

A(n) ________ sales-force structure combines several types of sales force organizations.

overlay - complex

Kola, a leading soft drink manufacturer, has recently forayed into the Middle East markets. Based on its research that consumers in the Middle East prefer sweeter drinks, it is manufacturing soft drinks with extra sugar to meet the local requirements. In this scenario, Kola is using a(n) ________ strategy to market its product.

product adaptation

Robert Solis is a salesman in a company that specializes in event management. He uses the Internet to identify potential companies with which his company can build long-term profitable relationships. Which step in the selling process does this scenario depict?

prospecting

The purpose of a quota is to ________.

protect local employment

In a promotion mix, ________ performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling unfavorable rumors and events.

public relations

pull

Consistency of the product mix

refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way (Campbell soups stay consumer products and go through same distribution channels)

Product mix width

refers to the number of different product lines the company carries

Product mix depth

refers to the number of versions offered for each product in the line (chunky soup, condensed soup, etc.)

Product mix length

refers to the total number of items a company carries within its product lines

Which term refers to the fixed amount in a salesperson's compensation?

salary

sales promotion

Fruity Loop, a leading manufacturer of fruit-juices, introduces a new range of potato chips. To promote this new product, it offers a packet of potato chips free with every bottle of Fruity Loop juice. Which of the following promotion tools is Fruity Loop using in this case?

samples

Satisfied and Loyal Customers

satisfied customers who remain loyal, repeat purchase, and refer other customers, which results in... (Healthy service profits and growth)

What are the difference between products and services? Airline Example

service intangibility - cant test out a plane before buying a ticket Inseparability -cant just take the plane yourself, have pilots perishability -once plane takes off you can't fill an empty seat- with goods you can put left overs in inventory

Service Inseparability

services are produced and consumed at the same time and cannot be separated from their providers (ex. if a service employee provides the service, then the employee becomes a part of the service)

Service Intangibility

services cannot be seen, tasted, felt, heard, or smelled before they are bought (ex. ppl undergoing cosmetic surgery cannot see the result before the purchase, airline passengers have nothing but a ticket and a promise that they and their baggage will arrive safely at the intended destination)

Which of the following is the first step in developing an advertising program?

setting advertising objectives

Target costing

starts with an ideal selling price based on consumer value considerations and then targets costs that will ensure that the price is met Tata Nono car ex How much can average middle class Indian family afford? Strip down car to have most basic structure and needs they could make so that famalies can buy one

Internal Service Quality

superior employee selection and training, a quality work environment, and strong support for those dealing with customers, which results in.. (satisfied and productive service employees)

Healthy Service Profits and Growth

superior service firm performance

Supplies and Services include: (business products)

supplies include operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms)

Reaching service profits and growth begins with:

taking care of those who take care of customers

The Fashion Store, a new startup, sets product prices so that revenue .. manufacturing and marketing costs. the pricing strategy used by the competitor is ___ pricing

target return

Loretta Inc., a U.S.-based watch manufacturer, sells its products in France, China, Russia, and India. To manage sales, Loretta appoints a number of sales representatives to each location. Sales representatives report to area managers, and area managers coordinate sales in their respective areas before reporting to regional managers. Loretta has most likely adopted a ________ sales-force structure.

territorial

if a product passed both the concept test and the product test, the next step is most likely

test marketing

Performance Quality

the ability of a product to perform its products

Packaging

the activities of designing and producing the container or wrapper for a product

Service Profit Chain

the chain that links service firm profits with employee and customer satisfaction

Product Quality

the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

Brand Equity

the differential effect that knowing the brand name has on customer response to the product and its marketing - a powerful brand has high brand equity

Labelling

the label IDENTIFIES the product or brand, such as the name Sunkist stamped on oranges - the label may also DESCRIBE several things about the product - who made it, where it was made, when it was made, its contents, how it is used, and how to use it safetly - finally, the label may help to PROMOTE the brand, support its positioning, and connect with customers

Augmented Product

the level at which close contenders compete most -delivery and credit -after sale service -product support -warranty

Co-branding

the practice of using the established brand names of two different companies on the same product

Accent Software faces the following conditions. All of these support Accent's use of a market-penetration pricing strategy EXCEPT ________.

the product's quality and image support a high price

Product Mix (or Product Portfolio)

the set of all product lines and items that a particular seller offers for sale

Social Marketing

the use of commercial marketing concepts and tools in programs designed to influence individuals' behaviour to improve their well-being and that of society

Service Companies face 3 major marketing tasks:

they want to increase their - service differentiation - service quality - service productivity

Corporate Image Advertising

to market themselves and polish their images

Interactive Marketing

training service employees in the fine art of interacting with customers to satisfy their needs

101) Producing a product or service and making it available to buyers requires building relationships not just with customers, but also with key suppliers and resellers in the company's supply chain.

true

102) The term supply chain may be too limited because it takes a make-and-sell view of the business.

true

105) Imaginative distribution systems can be used to gain a competitive advantage.

true

106) A major role played by intermediaries is to buy large quantities of products from many producers and break them down into the smaller quantities and broader assortments wanted by consumers.

true

107) Members of the marketing channel may help a company complete transactions by performing key functions such as promotion and negotiation.

true

110) In a conventional distribution channel, no channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict.

true

112) When the NewWay Dry Cleaners and The Easy Laundromat in your hometown join forces to follow a new marketing opportunity, they are forming a horizontal marketing system.

true

113) Always Fresh Produce Company has a route selling to more than 100 groceries, schools, and restaurants at wholesale prices. Last week the owners opened up a walk-in discounted consumer produce outlet. Always is now using a multichannel distribution system.

true

114) Disintermediation as a trend is on the rise in U.S. business.

true

115) Disintermediation has occurred when an online marketer takes business away from traditional brick-and-mortar retailers.

true

118) The producer and intermediaries need to agree on the terms and responsibilities of each member, including price policies, conditions of sale, territorial rights, and specific services to be performed by each party.

true

119) Generally speaking, a company's marketing channel objectives are influenced by the level of customer service sought, the nature of the company, its products, its marketing intermediaries, its competitors, and the environment.

true

121) Under the strategy of exclusive distribution, a seller allows only certain retail outlets to carry its products.

true

123) The key to managing inventory is to balance the costs and benefits of holding larger inventories with the costs and benefits of holding less.

true

125) Integrated logistics management aims to provide better customer service and trim distribution costs through teamwork, both inside the company and among all the marketing channel organizations.

true

Reverse logistics refers to moving ________.

unwanted, excess products from resellers to producers

Clenzo is a company that provides house cleaning services in major urban and suburban areas. Marketers at Clenzo developed a short, humorous video promoting the company's services and hope that customers who see the video will be so entertained that they will pass the video on to their friends and colleagues. The marketers at Clenzo are using techniques to facilitate ________.

viral marketing

Can ideas also be marketed?

yes

What is Brand Equity?

• A set of assets--namely • Awareness • Perceived Quality • Loyalty • Associations (examples) • That add/subtract value to the product • That are linked to the Brand name & symbol

When to use penetration pricing

• Elastic demand (established market) • Low barriers to entry • Economies of scale (learning curve) effects • Desire to gain pioneering advantage

When to use skim pricing

• Inelastic demand • Product protected by patents/difficult to duplicate • Short term profit objective • Price is seen as surrogate for quality

Pubic Relations

• More credible • Lower cost • Less control • Can be used to break through clutter

Logistics Needs (buyers)

• Product variety • Assortment available at point of sale • Breadth and depth of offerings • Convenience/accessibility • Ease of locating point of sale • Travel time • Immediacy of availability • Time between order and receipt of goods • Lot size flexibility • Minimum order size or product size

Idea Screening: Roger's framework

• Relative Advantage • Compatibility- w/ existing lifestyle and behavior • Complexity- how hard to use this product • Divisibility- you can try it out ex renting • Communicability

Logistics economic

• Tends to improve as intermediaries hold inventory • Suppliers are typically higher cost providers of high logistical services than channel intermediaries • Where critical to the end-user, channels tend to become longer (more levels)

Refer to the scenario below to answer the following questions. Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his two-year contract with Elmore ended. Herb built a company reputation on the manufacture and distribution of a variety of wooden writing utensils with customized engravings. Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable. Herb Marks established a brand name, known merely as Marks, and decided to expand on it. Herb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors. He even added a line of various grades of personalized stationery and business cards. Perhaps Herb's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Marks, as well as nurture existing accounts. "We make an excellent product," Herb Marks stated, "and we honor a good guarantee on everything we sell. But let's face itwe face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Marks brand was fast-becoming synonymous with top-notch customer service. Part of the purchase package brought personal visits from the Marks representative, before the purchase and long after. 98) An easier, more comfortable, more stylish transfer of thought onto paper is the ________ of Herb's offerings. A) tangible good B) core customer value C) actual product D) augmented product E) pure service

Selling accessory products along with the main product is referred to as ________ pricing. A) product bundle B) optional-product C) market-penetration D) by-product E) product line

The strategy of setting a low initial price to attract a large number of buyers quickly and win a large market share is referred to as ________. A) market-skimming pricing B) market-penetration pricing C) value-added pricing D) target costing E) deceptive pricing

Under ________, the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A) pure competition B) monopolistic competition C) oligopolistic competition D) a pure monopoly E) a pure monopsony

Which of the following is an external factor that affects pricing decisions? A) the marketing mix B) competition C) top management D) marketing objectives E) marketing strategy

________ prices are carried in buyers' minds and used when looking at a given product. A) Captive-product B) Reference C) Promotional D) Geographical E) Dynamic

________ pricing is when a firm tries to determine the price at which it will break even or make the profit it is seeking. A) Competition-based B) Target return C) Cost-plus D) Good-value E) Value-added

________ is used to study the course of a product's sales and profits for the duration that it is produced and sold in the market. A) A sequential product development process B) A product life cycle C) Business analysis D) Vendor analysis E) Portfolio analysis

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