Principles of Marketing test 3 (warm ups)
What is a vertical marketing system (VMS)?
A channel arrangement in which producers, wholesalers, and retailers act as a unified system
Which of the following statements is correct regarding price changes?
A company that wishes to dominate a market could potentially do so by lowering its prices.
Marketers now have access to fragmented media and promotion mixes to reach diverse audiences. To ensure these are coordinated and organized, what must marketers do?
Adopt the concept of integrated marketing communications
Which of the following statements is correct regarding marketing communications today?
Advertisers are now able to engage smaller customer segments with more personalized, interactive content.
What are the four steps to designing marketing channels, in the correct order?
Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives
Which of the following statements is true regarding channel organization?
Channel members are dependent on each other for the overall success of the channel.
Which of the following identifies the six major sales force management steps in the correct order?
Designing sales force strategy and structure, recruiting and selecting salespeople, training salespeople, compensating salespeople, supervising salespeople, and evaluating salespeople
Which of the following statements regarding marketing logistics is true?
Logistics should provide a targeted level of customer service at the least cost.
Marketing channels perform many key functions. Which of the following is NOT one of those key functions?
Manufacturing
Which of the following statements about personal selling is correct?
Many customers are unable to distinguish the salesperson from the company.
What are the two major elements of advertising strategy?
Message decisions and media decisions
_______ is the use of online, mobile, and social media to engage customers, build stronger customer relationships, and augment sales performance.
Social selling
Marketers must consider external considerations in establishing pricing. Which of the following represents those external considerations?
The nature of the market, demand, and environmental factors
Marketers use three major pricing strategies: _____________.
customer value-based pricing, cost-based pricing, and competition-based pricing
Personal selling can be very effective in complex selling situations because it involves ________ interactions and engagement between salespeople and individual customers.
interpersonal
A company's pricing strategy is affected by internal factors such as __________.
overall marketing strategy, objectives, marketing mix, and organizational considerations
Most companies today see their intermediaries as first-line customers and focus on ________ to forge long-term relationships with channel members.
partner relationship management
Companies use _________ to build good relations with consumers, investors, the media, and their communities.
public relations
Closing a sale with a particular customer is a short-term ________ orientation, but the selling process must also take a ________ orientation and look at the long term.
transactional; relationship
The four major functions of marketing logistics are ____________.
warehousing, inventory management, transportation, and logistics information management
Which of the following statements is correct regarding supply chains and the value delivery network?
A company's channel decisions directly impact all other marketing decisions.
A skimming pricing strategy is most likely to succeed for which of the following conditions?
Competitors should not be able to enter the market quickly.
Of the following, which is NOT one of the product-mix pricing situations?
Penetration pricing
A mega-retailer opens a store in a new area. They charge prices that are below cost to drive local stores out of business. This retailer has engaged in which of the following?
Predatory pricing
At which step of the selling process does the salesperson tell the "value story" to the buyer, showing how the company's offer solves the customer's problems?
Presentation
Which of the following statements is true regarding the selection of qualified channel members?
Producers vary in their ability to attract qualified marketing intermediaries.
Price ceilings are set by customer perceptions of the product's value. Which of the following sets the floor for the price that a company charges?
Product Cost
Stories, sponsorships, events, and webpages are a part of which type of promotional tool?
Public relations
What are the four important decisions made when developing an advertising program in order?
Setting objectives, setting the budget, developing strategy, and evaluating effectiveness
Which of the following statements about public relations is correct?
The lines between advertising and public relations are becoming more blurred.
________ are the four promotion mix tools used by marketers to communicate customer value.
Advertising, public relations, personal selling, and sales promotion
Which of the following are four the major types of sales promotion tools?
Consumer, trade, business, and sales force
Which of the following pricing strategies would a company use to attract a large number of buyers quickly and win a large market share?
Market-penetration pricing
When competitors set prices by talking with each other, they are engaging in which of the following?
Price-fixing
When Microsoft or Apple sells software as a package, it is engaging in what type of pricing?
Product-bundle pricing
___________ are promotional tools that can be used to attract consumers.
Rebates, coupons, price packs, and samples
Marketers adjust prices based on ________ pricing, whereby different customers pay different prices for the same product or service.
customer-segment
When designing marketing channels, companies must determine the number of channel members to use at each level. The three strategies that are available to do this are ________ distribution.
intensive, exclusive, and selective
