Test #3 Marketing

Retailer

A business that sells goods or services directly to the public

Electronic data interchange

A computerized means of integrating order processing with production, inventory, accounting, and transportation

Intensive distribution

A form of distribution aimed at having a product available in every outlet where target customers might want to buy it

Marketing channel

A group of individuals and organizations that direct the flow of products from producers to customers within the supply chain.

Physical distribution

Activities used to move products from producers to consumers and other end users

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

Advertising agencies

Supply chain

All the activities associated with the flow and transformation of product from raw materials through to the end consumer.

Retailing

All the activities directly related to the sale of goods and services to the ultimate consumer for personal, nonbusiness use

Tying agreement

An agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well

Vertical channel integration

Combining two or more stages of the marketing channel under one management

Where do supply chains start?

Customers

Distribution

Decisions surrounding the transportation and storage of goods from producer to consumer.

The use of heavy advertising in the promotion mix is least likely to occur in which product life cycle stage?

Decline

Garcia Wholesale Plumbing has seen its sales in the Southeast triple in the past two years. Materials handling director Barb Peterson announces plans to the board for an Atlanta facility that will combine shipments received from Garcia's 25 suppliers for nearly immediate shipment to plumbing stores and contractors in the region. This new facility would be best classified as which of the following?

Distribution center

Selective distribution

Distribution that sends products to only a preferred group of retailers in an area

Exclusive distribution

Distribution that sends products to only one retail outlet in a given geographic area

Channel captain

Dominant and controlling member of a marketing channel

Which of the following wholesalers never take actual possession of the goods?

Drop shippers

Which of the following industries is most likely to employ combative promotional efforts?

Fast food

Which of the following is a full-service merchant wholesaler?

General merchandise wholesaler

What design element is used to attract attention, communicate an idea quickly, or communicate ideas that are difficult to put into words?

Illustrations

Greg Braddock is a physical distribution manager. He is currently developing and maintaining assortments of products that are adequate for customer demand. In which stage in the physical distribution system is Greg currently involved?

Inventory management

Operations management

Management of any aspect of the production system that transforms inputs into finished goods and services

Just-in-time

Method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near-term production, planning that what they need for longer-term production will arrive when needed.

Marketing intermediaries

Middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products

Which retail store invests the most in atmospherics?

Neiman Marcus

Danielle Robinson, account representative for EXpert Advertising, tells D'Orazio Tile Products that she is proposing to use 5 full-page, four-color ads in home-decorating magazines to achieve an increase in consumer and builder inquiries of 15 percent. This approach is an example of which of the following methods of determining advertising expenditure levels?

Objective-and-task

Freight forwarders

Organizations that consolidate shipments from several firms into efficient lot sizes

High-priced products usually depend heavily on which promotion mix ingredient?

Personal selling

Materials handling

Physical handling of tangible goods, supplies, and resources

____ is communication in news story form about an organization or its products that is transmitted through a mass medium at no charge.

Publicity

Which mode of transportation hauls more freight than any other?

Railroads

Public warehouses

Storage space and related physical distribution facilities that can be leased by companies

Warehousing

The design and operation of facilities for storing and moving goods

Which of the following is not an advantage of franchising for the franchisee?

The franchisee gives up a certain amount of control when participating in a franchise agreement.

Atmospherics

The physical elements in a store's design that appeal to consumers' emotions and encourage buying

Order processing

The receipt and transmission of sales order information.

Cycle time

The time needed to complete a process

Dual distribution

The use of two or more marketing channels to distribute the same product to the same target market

____ adds time and place utility to a product by moving it from where it is made to where it is purchased and used.

Transportation

Intermodal transportation

Two or more transportation modes used in combination

Storyboard

a blueprint that combines copy and visual material to show the sequence of major scenes in a commercial.

Promotion mix

a combination of promotional methods used to promote a specific product

Franchising

a contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

Competitive advertising

a form of advertising designed to influence demand for a specific brand

Advocacy advertising

a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks

Product placement

a form of advertising in which brand name goods or services are placed prominently within programming content that is otherwise devoid of advertising, demonstrating the convergence of programming with advertising content.

Comparative advertising

a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes

Product advertising

a form of advertising that touts the benefits of a specific good or service

Television home shopping

a form of selling in which products are presented to television viewers, who can buy them by calling a toll-free number and paying with a credit card

Category killer

a giant specialty store that carries a very deep assortment of a particular line and is staffed by knowledgeable employees

Cash-and-carry wholesalers

a limited-service wholesaler whose customers pay cash and furnish transportation

Feature article

a manuscript of up to 3,000 words prepared for a specific publication

Cost comparison indicator

a means of comparing the costs of advertising vehicles in a specific medium in relation to the number of people reached

Press conference

a meeting used to announce new product developments, officer changes, and company expansions

Publicity

a news story type of communication about an organization and/or its products transmitted through a mass medium at no charge

Advertising

a paid form of communication sent out by a business about a product or service.

Consumer jury

a panel of a product's existing or potential buyers who pretest ads

Source

a person, book, document, website or record that provides information.

Captioned photograph

a photograph with a brief description of its contents

Community shopping center

a planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores

Unaided recall test

a posttest in which respondents are asked to identify advertisements they have seen recently but are not given any recall clues

Recognition test

a posttest in which respondents are shown the actual ad and are asked if they recognize it

Aided recall test

a posttest that asks respondents to identify recent ads and provides clues to jog their memories

Communication

a process through which you send messages to and receive messages from others.

Feedback

a receiver's response to a message

General-merchandise retailer

a retail establishment that offers a variety of product lines that are stocked in considerable depth

Category management

a retail strategy of managing groups of similar, often substitutable products produced by different manufacturers

Supply-chain management

a set of approaches used to integrate the functions of operations management, logistics management, supply management, and marketing channel management so products are produced and distributed in the right quantities, to the right locations, and at the right time

Neighborhood shopping center

a shopping center usually consisting of several small convenience and specialty stores.

News release

a short piece of copy publicizing an event or a product

Exclusive dealing

a situation in which a manufacturer forbids an intermediary to carry products of competing manufacturers

Convenience stores

a small self-service store that is open long hours and carries a narrow assortment of products, ususally convenience items

Target audience

a specific group of people for which you design your documents; can be categorized by age, gender, income

Traditional specialty retailers

a store that carries a narrow product mix with deep product lines

Viral marketing

a strategy to get consumers to share a marketer's message, often through e-mail or online video, in a way that spreads dramatically and quickly

Direct-response marketing

a type of marketing in which a retailer advertises a product and makes it available through mail or telephone orders.

Catalog marketing

a type of marketing in which an organization provides a catalog from which customers make selections and place orders by mail, telephone, or the internet

Power shopping center

a type of shopping center that features off-price and small stores combined with category killers

Lifestyle shopping center

a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment stores

Regional shopping center

a type of shopping center with the largest department stores, widest product mixes, and deepest product lines of all shopping centers

Superregional shopping center

a type of shopping center with the widest and deepest product mixes that attracts customers from many miles away

Agents

a wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few functions, and does not take title to goods.

One of the biggest problems associated with ____ as an element of promotion is the high absolute dollar outlay often required.

advertising

Threatt Production makes low-priced, convenience products that are widely available. It is most likely to focus its promotion efforts on

advertising

The basic issues or selling points that an advertiser wants to include in an advertising campaign is (are) the

advertising platform

Reinforcement advertising

advertising that assures users they chose the right brand and tells them how to get the most satisfaction from it

Institutional advertising

advertising that promotes organizational images, ideas, and political issues.

Pioneer advertising

advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product

Remainder advertising

advertising used to remind consumers about an established brand uses, characteristics and benefits

Commission merchants

agents that receive goods on consignment from local sellers and negotiate sales in large, central markets

Artwork

an advertisement's illustrations and layout

Strategic channel alliance

an agreement whereby the products of one organization are distributed through the marketing channels of another

Buzz marketing

an attempt to incite publicity and public excitement surrounding a product through a creative event

Industrial distributor

an independent business organization that takes title to industrial products and carries inventories

Wholesaler

an individual or organization that sells products that are bought for resale, for making other products, or for general business operations

Direct marketing

any direct communication to a consumer or business recipient designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business, for purchase of a product.

Noise

anything that interferes with, distorts, or slows down the transmission of information

Advertising platform

basic issues or selling points to be included in an advertising campaign

Arbitrary approach

budgeting for an advertising campaign as specified by a high-level executive in the firm

Objective-and-task approach

budgeting for an advertising campaign by first determining its objectives and then calculating the cost of all the tasks needed to attain them

Percent-of-sales approach

budgeting for an advertising campaign by multiplying the firm's past and expected sales by a standard percentage

Promotion tends to

capitalize on existing needs.

Laura Lucas and Marie Clark own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase the food items and cleaning supplies they need for their business. With the exception of the volume they purchase and the items' intended use, this grocery shopping trip is identical to a weekly trip by their families to a grocery store. Sam's is serving as a ____ wholesaler for these entrepreneurs.

cash-and-carry

Horizontal channel integration

combining organizations at the same level of operation under one management

Public relations

communication activities that create/maintain a positive image of a firm and its products.

Promotion

communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence an opinion or elicit a response

Private warehouses

company-operated facilities for storing and shipping products

Troy Products Company advertises a specific product heavily, and Carbone Products Company wants to offset the effects of that advertising. In this case, Carbone would most likely employ ____ advertising.

competitive

Coding process

converting meaning into a series of signs or symbols

Decoding process

converting signs and symbols into concepts and ideas

A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a(n)

cost comparison indicator

All members of the supply chain should determine their position in the chain, identify their partners and their roles, and establish partnerships whose focus is

customer relationships

A goal of physical distribution is to reduce ____ or how long it takes to complete a process.

cycle time

An important goal of physical distribution is reducing the time it takes to complete

cycle time

A commercial for a weight-loss program that explains that the customer pays only one dollar for every pound he or she wants to lose but specifies in fine print that the cost of meals is extra exemplifies ____ advertising.

deceptive

Receiver

decodes the message.

Off-price retailers feature

deep discounts, few customer services, and central checkouts

Primary demand

demand for a product category rather than for a specific brand

Selective demand

demand for a specific brand

Competition-matching approach

determining an advertising budget by trying to match competitors' advertising outlays

Inventory management

developing and maintaining adequate assortments of products to meet customers' needs

Wholesalers frequently help retailers with developing a marketing strategy, especially as it relates to the ____ component of the marketing mix.

distribution

Illustrations

drawings, photographs, maps, graphs, tables, charts, cartoons, etc. in an article

Pretest

evaluation of advertisements performed before a campaign begins

Posttest

evaluation of advertising effectiveness after the campaign

In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is to

facilitate news coverage of the event

Cooperative advertising efforts between manufacturers and retailers demonstrate the promotional objective of

facilitating reseller support.

The Rain Forest Cafe and T-Rex Cafe are usually located in tourist-dense areas or large shopping malls in order to capture walk-by traffic. If the restaurants' primary focus was to obtain customers who are walking by, they would definitely not want which of the following locations?

free-standing buildings

Megacarriers

freight transportation firms that provide several modes of shipment

General-merchandise wholesalers

full service wholesalers with a wide product mix but limited depth within product lines

Merchant wholesalers can be divided into two basic categories:

full-service and limited service

Specialty-line wholesalers

full-service wholesaler that carry only a single product line or a few items within a product line

Limited-line wholesalers

full-service wholesalers that carry only a few product lines but many products within those lines.

Rack jobbers

furnish the racks or shelves that display merchandise in retail stores, perform all channel functions, and sell on consignment to retailers

Supermarkets, discount stores, and hypermarkets can all be classified as

general merchandise retailers

Superstores

giant retail outlets that carry food and nonfood products found in supermarkets, as well as most routinely purchased consumer products

To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia. This type of integration is called

horizontal

Retail positioning

identifying an unserved or underserved market segment and serving it through a strategy that distinguishes the retailer from others in the minds of consumers in that segment

The first stage in the development of any advertising campaign is

identifying the advertising target audience

Supply management

in the broadest terms, refers to the process that enables the progress of value from raw material to final customer and back to redesign and final disposition.

Manufacturer's agents

independent intermediaries that represent two or more sellers and usually offers customers complete product line

Merchant wholesalers

independently owned firms that take title to the merchandise they handle

Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution channel.

industrial distributor

The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students are as well as how outstanding its academic programs are. This type of promotion would best be characterized as

institutional advertising

The coordination of promotion and other marketing efforts for maximum informational and persuasive impact defines

integrated marketing communications

Producers of convenience products such as soft drinks, toothpaste, and breath mints are most likely to use ____ distribution.

intensive

Brokers

intermediaries that bring buyers and sellers together temporarily

Selling agents

intermediaries that market a whole product line or a manufacturer's entire output

Public relations

is an element of promotion that should be handled on a continuous basis.

Department stores

large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management

Distribution centers

large, centralized warehouses that focus on moving rather than storing goods

Supermarkets

large, self-service stores that carry a complete line of food products, along with some nonfood products

Warehouse clubs

large-scale members-only establishments that combine features of cash-and-carry wholesaling with discount retailing

Because Coke is such a popular product and the company is so powerful, Coca-Cola is in a position to exert considerable control over channel structures and the way Coke is marketed. This is an illustration of channel ____ in the distribution channel.

leadership

Mail-order wholesalers

limited-service wholesalers that sell products through catalogs

Drop shippers

limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products

Truck wholesalers

limited-service wholesalers that transport products directly to customers for inspection and selection

Sales branches

manufacturer-owned intermediaries that sell products and provide support services to the manufacturer's sales force

Sales offices

manufacturer-owned operations that provide services normally associated with agents

Vertical marketing system

marketing channel managed by a single channel member to achieve efficient, low-cost distribution at satisfying target market customers

Direct selling

marketing products to ultimate consumers through face-to-face sales presentations at home or in the workplace

Full-service wholesalers

merchant wholesalers that perform the widest range of wholesaling functions

Limited-service wholesalers

merchant wholesalers that provide some services and specialize in a few functions

When using the percentage-of-sales approach for determining the advertising appropriation, marketers

multiply the firm's past sales plus a factor for expected changes in sales times a standard percentage

The public relations department at Lowe's Home Improvement submits one page of typewritten copy to national newspapers and news web sites to announce its one-day, nationwide clean-up-local-parks event. This is an example of a

news release

Sony Corporation has a particular approach for determining its advertising appropriation. A problem with this technique, however, is that the people in the marketing department have difficulty estimating the level of effort needed to achieve certain goals. This problem is characteristic of the ____ approach.

objective-and-task

The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as

outsourcing

Word-of-mouth communication

personal informal exchanges of communication that customers share with one another about products, brands, and companies

Logistics management

planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants.

If promotion does not do its job of stimulating demand, then the

price of the promoted product is likely to increase.

Pull policy

promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel

Push policy

promoting a product only to the next institution down the marketing channel

Pioneer promotion

promotion that informs consumers about a new product

When a salesperson varies the physical distance between himself and a customer he is using

proxemic communication

When Hershey Dark Chocolate Kisses were introduced, Hershey promoted directly to consumers and told them to ask for the product at their favorite stores. This is an example of a ____ policy.

pull

Suppose Toyota also offered the dealership salespeople a trip to Hawaii for anyone who could sell ten of the new vehicles within the first month they were available? This tactic would be an example of ____ marketing, while the TV commercials described above would be an example of ____ marketing

push; pull

If a consumer is shown a particular advertisement and asked if she has seen it before, a(n) ____ is being performed.

recognition test

warehouse showrooms

retail facilities in large, low-cost buildings with large on-premises inventories and minimal services

Online retailing

retailing that makes products available to buyers through computer connections

A manufacturer-owned operation that provides services usually associated with agents is a

sales office

Refer to Scenario 17.2. If the manufacturers of Whizz were to partner with Whirlpool to place a bottle of Whizz in each new washer that is purchased during the first year, this would be an example of

sales promotion

Discount stores

self-service, general merchandise stores offering brand name and private brand products at low prices

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n)

specialty retailer

The move to sell Land's End products inside of Sears' stores may lead to potential problems with the customer's perception of Lands' End quality, in part due to the functional and psychological picture in the consumer's mind of Sears' stores. This picture is called the ____ of Sears.

store image

Off-price retailers

stores that buy manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

Hypermarkets

stores that combine supermarket and discount store shopping in one location

Chelsea Collins walks her client, Kaptain Korn president Steve Gonski, through her agency's proposed television campaign for the product's introduction. In doing so, she moves from square to square on the

storyboard

Jack Ingalls gets a shopping list from his wife. On the list are a potted plant, fresh salmon, motor oil, bread, milk, and a birthday cake. To make just one stop to save time, Jack should go to a(n)

supermarket

Channel power

the ability of one channel member to influence another member's goal achievement

Advertising appropriation

the advertising budget for a specific time period

Layout

the arrangement of all key parts of a publication without including specific content

Integrated marketing communications

the coordination of marketing messages through every promotional vehicle to communicate a unified impression about a product

Advertising campaign

the creation and execution of a series of advertisements to communicate with a particular target audience

Channel capacity

the limit on the volume of information a communication channel can handle effectively

Communications channel

the medium of transmission that carries the coded message from the source to the receiver

Nonstore retailing

the selling of products outside the confines of a retail facility

Media plan

the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience

Automatic vending

the use of machines to dispense products

Telemarketing

the use of the telephone as an interactive medium for promotion and sales

Channel decisions are important to marketers mostly because

they involve long-term commitments and affect customer accessibility.

The reasons a vertically integrated channel can be more effective against competition is because of all of the following except

tightly controlled and bureaucratic management style.

Wholesaling

transactions in which products are bought for resale, for making other products, or for general business operations

Copy

verbal portion of advertisements

Regional issues

versions of a magazine that differ across geographic regions

Levitz Furniture locates in huge, low-cost buildings, maintains large, on-premises inventories, and offers minimum service. Levitz is a

warehouse showroom