Test 3

The Bentley Agency places $2,500 in radio spots and $17,500 in television spots for Darnell Insurance in June. For its efforts this month, the agency "traditionally" would receive ____ in compensation.

$3000

Kohl's pays $16.50 for a six-ounce bottle of cologne and sells it for $25.95. Its markup as a percentage of cost is approximately ____ % for this product.

57

The "Got milk?" print campaign is advertising that stimulates demand for a ____, known as ____ advertising.

;competitive

When a company promotes its position on a public issue, this is specifically referred to as ____ advertising.

Advocacy advertising

The effectiveness of an advertising campaign can be measured

Before, during, and after the campaign through the use of pretests, inquiries, and post tests

Some grocery stores collect data on competitive prices

By using full time comparison shoppers

A major benefit of using event sponsorship is that it

Can provide large amounts of free media coverage

If Walmart were to base its advertising appropriation on the amount that Target spends, it would be using the ____ approach.

Competition-matching

Customers rely on ____ for product availability, breaking larger quantities into smaller ones, technical advice and service, financial assistance, and suitable assortments.

Full service wholesalers

What is the primary distinction between superstores and hypermarkets?

Hypermarkets are larger and have more types of products than superstores

Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called ____ advertising.

Institutional

An independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise is a(n)

Manufactures agent

When encoding the message, the source should use signs that have

Meanings that the target market will understand

The limitations in using publicity-based public relations tools stem primarily from the fact that

Media personnel control the content of the communication

Which of the following has a target market of consumers who live within two to three miles of its stores, or within a few minutes' walking or driving time?

Neighborhood shopping center

Which of the following best describes wholesalers?

Organizations or individuals who buy products for resale to government, reseller, producer, and institutional users.

If a company calls a meeting to announce a major news event, this is known as a

Press conference

A single page of typewritten copy that has 300 words or less and describes a company event or product is called a

Press release; captioned photography

___ is a broad set of communication efforts used to create and maintain favorable relationships between a company and its stakeholders.

Public relations in promotion mix

When Alice buys organic produce for her household using a channel with just one intermediary, that intermediary is classified as a

Retailer

Walmart, Macy's, Nordstrom, and Toys "R" Us are examples of

Retailers

Off-price retailers and category killers are both

Specialty retailers

Which type of retail outlet can have up to 200,000 square feet?

Superstores

When products are presented to television viewers, who can purchase them by calling a toll-free number and paying with a credit card, ____ is being used.

Television home shopping

Reinforcement advertising is primarily targeted at

The current users of a particular product

Possession utility is best described as

The customer having access to the product to use now or store and use later

When Cadillac buys headlights from Delco (both of which are divisions of General Motors), ____ pricing occurs.

Transfer

Kawasaki places several motorcycles in "pods" in order to load them efficiently using forklifts. This system of materials handling is called

Unit loading

According to the text, physical distribution cost tradeoffs enable firms to

Utilize resources for greatest cost effectiveness

The manufacturers of Whizz, a new laundry detergent, are developing their promotional plan for the first year. They know they want to use an integrated communications strategy and are considering the use of advertising through TV and magazines, coupons, public relations, sales promotion, and viral marketing. They are not sure when to use each of these methods, however, and have asked for your advice. Refer to Scenario 15.2. Since Whizz is a new product, which of the following promotional methods would you leastrecommend?

a price reduction sales promotion

When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends and through social media. After a few weeks, a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas. Refer to Scenario 15.1. Toyota's act of giving the opinion leaders a new vehicle for two weeks is best described as an example of

buzz marketing

Each communication channel has a limit on the volume of information it can handle effectively. This limit is called

channel capacity

Soft drink companies advertise that their products beat the competition in national "taste tests," and they refer to the rival brands by name. This type of advertising is best described as

comparative

If a store has areas for men's apparel, women's apparel, housewares, cosmetics, and jewelry and competes mostly on the basis of service, it is most likely a(n)

department store

Store ABC is a retailer that sells brand-name and private-brand products at low prices. It is a self-service store. Which of the following is true about Store ABC?

discount store

Which type of retailer generally accepts lower margins than traditional retailers in exchange for higher sales volume?

discount stores

Multichannel distribution is characterized as

distribution channels that typically carry exclusive products, such as Rolex watches

Merchant wholesalers can be divided into two basic categories:

full and limited service

Laws, government regulations, and industry self-regulation ______________ deceptive promotion.

have helped decrease

If UPS decided to outsource all of its marketing efforts to the Ads Agency, which specializes in advertising, sales promotion activities, and public relations, UPS would likely be striving to practice

integrated marketing communications

Channel capacity is determined by the

least efficient component of the communication process

Merchant wholesalers who specialize in just a few functions and pass others along to other intermediaries or customers are called

limited service wholesalers

When shopping for products, business customers often prefer to deal with _____, while consumers typically buy from

manufacturers or channel intermediaries; retailers

Which of the following is a reason integrated marketing communication is increasingly being accepted?

more precisely targeted promotional tools

Food King grocery stores offer candy bars in the checkout lanes for $0.99 rather than $1.00. This use of _____ pricing should help increase sales of the candy bars.

odd number

Matthew McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continuing slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the ____ approach to determine its advertising expenditures.

percent of sales

When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends and through social media. After a few weeks, a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas. Refer to Scenario 15.1. Which of the following is not an integrated communications tactic used by Toyota?

personal selling

If researchers at Merck Pharmaceuticals develop a cure for prostate cancer, the best way to announce this to the public and get wide media coverage would be through a

press conference

Price leaders, comparison discounting, and special-event pricing are applications of

promotional pricing

A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?

reference pricing strategy

Direct selling, direct marketing, and vending machines are all examples of

retailing

Using only some of the available outlets to distribute a product is called

selective distribution

Batteries Plus is a chain of small stores that sell a wide variety of batteries for everything from cameras to automobiles. Batteries Plus would best be described as a(n)

single line retailer

When individuals' behaviors are tracked from television sets to checkout counters using equipment provided by the marketer, this is known as

single source data

When developing an advertising campaign, benchmarks need to be included in the

statement of advertising objectives

Cindy goes to Walmart and buys some clothing, a DVD, and all the groceries she needs for her family. What type of retailer is this particular Walmart?

superstore

In an administered VMS, informal coordination brings about a high level of interorganizational management. Nonetheless,

the channel members remain autonomous

All of the following are reasons a company would likely emphasize advertising in its promotion mix except

the company's products are seasonal in nature

You are the general manager of the machining products division of a diversified manufacturing company in Des Moines, Iowa. You primarily produce machining products for sale to wholesalers around the world. However, you periodically get requests from other divisions in your company to purchase your products. You treat these purchase requests the same as a purchase request from a non-affiliated entity. You sell your machining products to other internal divisions at a price that is equivalent to a market-based cost.This is an example of which of the following types of business pricing?

transfer pricing

What type of wholesaler transports a limited line of products directly to customers for immediate inspection and selection?

truck jobbers

The best way to reduce overall distribution costs is to

use a total cost approach to analyze and evaluate the entire system

Target has worked closely with suppliers such as Calphalon to offer customers a high-quality, branded product that is only available in Target stores. Due to these partnerships, Target has established a high level of perceived _______ among their customers since they provide a large range of brand-name merchandise at reasonable or below-competition prices.

value

Which of the following is a large-scale, members-only, retailer that combines cash-and-carry wholesaling with discount retailing?

warehouse club

All of the following are differences between warehouse clubs and discount stores, except

warehouse clubs require a membership and discount stores do not

If a manufacturer decides to use a push policy to promote its products, it is most likely to focus its efforts on

wholesalers