UWRF MKGT EXAM 2

In Viña 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

Which of the following is an example of an indirect marketing channel?

Wine & Dine, which sells its picnic baskets to select novelty stores across the country

When the Twin Six Cafe provides gourmet menu options to its customers, as well as impeccable service—which even allows customers to hand-select their own cuts of meat— _______ is/are evident.

a core benefit, an actual product, and an augmented product

The manufacturer of Crest toothpaste provides free samples of its toothpaste to dentists and encourages them to distribute these samples to their patients and to inform the patients about advantages of using Crest. The manufacturer of Crest toothpaste is using ________.

a push strategy

Renee's, a company selling winter clothing in Chicago, ran a preseason promotion on some of its fur jackets, offering cash refunds if the snowfall in the customer's market area turned out to be below average. This exemplifies ________.

a rebate

Motorzone offers replacement parts for old Volkswagen Beetles. The company calculates shipping charges based on shipping parts from Boston, even though some parts actually ship from St. Louis. Motorzone most likely practices ________ pricing.

basing-point

A lumber mill takes in logs, turns them into 2 x 4's and other sizes needed for building construction. Wood chips created in the milling process are a(n) ________ that can be sold

by-product

What is usually the first step in cost-based pricing?

designing a good product

Think Ink is a growing company that sells a variety of inks for home and business printers. Management at Think Ink has decided to open a sales branch overseas to handle sales and distribution abroad. Think Ink is engaging in ________.

direct exporting

Flurrbies, a brand of unique winter accessories that quickly fell in and out of favor with customers, is an example of a ________.

fad

Which of the following kind of organization best represents a contractual association based on some unique product or service, a method of doing business, or a trade name or goodwill?

franchise

When McDonald's offers its products inside of a Walmart store, it is using a(n) ________.

horizontal marketing system

Kevin is a salesperson working for a company that manufactures gardening tools. He is involved in door-to-door sales and travels every day to call on customers. In his company, Kevin is most likely a part of the ________.

outside sales force

Which message execution style involves presenting survey data indicating that a brand is better than other brands?

scientific evidence

The discount offered by Glamor Gifts to customers who bought Valentine-themed merchandise the week following Valentine's Day is an example of a ________.

seasonal discount

Which of the following is NOT one of the publics to which a public relations department must answer?

suppliers

In the case of services, captive product pricing is called ________ pricing.

two-part

When amusement parks charge customers for admission and later for food and beverages, they are following a ________ pricing strategy.

two-part

Which of these steps is NOT one of the five As of the customer journey?

Authority

A charitable trust's appeal which states, "While you are trying to figure out what to get the man who has everything, don't forget the man who has nothing" is an example of a(n) ________ appeal.

Moral

By using ________ to contact potential customers, marketers sell directly to consumers.

outbound telephone marketing

Electron Corp. purchased Proton Corp. by buying all of its assets and ownership equity. This is an example of a(n) ________.

acquisition

Positioning a new chocolate bar brand as "the chocolate that forges bonds of friendship" is positioning based on ________.

beliefs and values

A couple designed their wedding around the Black & Decker's DeWalt brand. This is an extreme example of ________.

brand advocacy

Product placement in television programs and movies is an example of ________.

branded entertainment

Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new product development process.

business analysis

Once the prototype of Wainwright Industries' new riding lawnmower, made especially for women, passes product tests, the next step is ________.

business analysis

A manufacturer of a variety of technological devices asked its marketing department to develop inexpensive methods of building and maintaining brand awareness and excitement. The marketing department then recruited consumers who were early adopters of technological devices to spread the word about the company's new products. This is an example of ________.

buzz marketing

Morrill Motors splits the United States of America into 10 sales regions. Within each of those regions, the company has separate sales personnel selling the company's full line of products. Morrill Motors uses a ________ sales force structure.

complex

Waldo Stores will reward an all-expense-paid trip to Hawaii to anyone who correctly guesses the date on which Waldo Stores was first established in the Boston area. Which type of sales promotion is evident here?

contest

In ________, text-based ads and links appear alongside search engine results on sites such as Google, Yahoo!, and Bing.

contextual advertisements

In an attempt to set the company apart from its competitors, Central Parcel Service (CPS) has its employees wear brown uniforms and drive brown trucks. What type of public relations tool is being used by CPS?

corporate identity materials

What sets the ceiling for product prices?

customer perceptions of the product's value

The New Age Gallery has three admission prices for students, adults, and seniors, even though all three groups are entitled to the same services. This form of pricing is called ________ pricing.

customer-segment

When Heinz introduced EZ Squirt packaging and new colors such as Blastin' Green and Awesome Orange to revitalize consumer buying, the company was modifying the ________.

distribution

The decision to use an NBA star player to communicate the desirability of Nike basketball shoes represents the ________ process of the communication model.

encoding

At Neiman Marcus, a first-class department store, customers shop for high-end products and they are assisted in every phase of the shopping process. Neiman Marcus is a ________.

full-service retailer

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to counteract competitive responses. Kellogg's is in the ________ stage of the product life cycle.

growth

Managers at the Imperial Hotel-Chicago complained that the chain's overall image was hurt because Imperial Hotel-Dallas was overcharging guests and providing poor service. The Imperial Hotel was experiencing ________ conflict.

horizontal

New product development starts with ________.

idea generation

When P&G developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by P&G for the Mr. Clean Magic Eraser?

informative advertising

Delia's is a clothing retailer that targets teenage girls. The company runs coordinated promotions for its catalogs, Web site, and retail outlets. It uses the same models in its print ads and Web site. Delia's works to make sure its public relations activities as well as its sales promotions harmonize with its advertising in all aspects. From this information, we can infer that Delia's is using ________.

integrated marketing communication

Whitelight sells its toothpastes in many convenience stores across the country. This is an example of ________ distribution.

intensive

PharmaCom serves millions of customers across several Asian countries after joining forces with foreign investors to create local businesses in which they share possession and control. PharmaCom now has several joint pharmaceutical manufacturing sites in China, Japan, and Korea. This is an example of ________.

joint ownership

Marbles Inc. has placed vending machines in most of its retail stores in Florida. Consumers can order a pack of marbles by just selecting their requirements on the touch screen. Which term best describes such machines?

kiosk

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 ________.

line filling

Hilton helps others run their hotels by providing the management know-how. This type of joint venture is known as ________.

management contracting

Carey David's wholesale company helps retailers train salesclerks, improve store layouts and displays, and set up inventory control systems. According to this information, which of the following wholesaler's channel functions does Carey David provide?

management services and advice

Whizz Corp. wishes to introduce a new hybrid car into mature markets in developed countries with the goal of gaining mass-market share quickly. Which of the following pricing strategies would help the firm meet its goal?

market-penetration pricing

Midnight Magic, a perfume manufacturing company, plans to release a new fragrance during the holiday season at $99 per bottle. The company intends to bring the price down to $49 within six months of its release to attract buyers who couldn't afford the initial price. Which of the following pricing strategies is Midnight Magic using?

market-skimming pricing

A ________ is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.

marketing channel

Gant Hardware is a huge chain of hardware stores. GantHardware.com helps customers conduct product research and also lets them order directly online or redirects them to the nearest Gant retail store. Which of the following best describes GantHardware.com?

marketing website

Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store " and "buy online, reserve in store" for pickup. This is an example of ________.

omni-channel retailing

Alex Smith rents storage space to college students who go home for the summer but do not want to haul all of their property home and back. The business is profitable during the summer months, but when the storage space is unoccupied in the off-season, Alex loses money. Which of the following characteristics of service is most likely the source of Alex's problem?

perishability

After selecting a sweater on the Land's End Web site, Kelly was asked to fill in details for the customer database. Kelly was given a form that required her to fill in her name, date of birth, and e-mail address. Kelly then checked a box that was next to the following statement: "Yes, I would like to receive weekly promotional information from Land's End online." Which of the following practices is evident from this scenario?

permission-based e-mail marketing

Melissa Price is a member of the sales force at Urban Fashions, a Houston-based manufacturer of women's apparel. Melissa is preparing for a first meeting with a wholesaler who is a potential customer. She is learning as much as she can about her prospect and his organization. Melissa is in the ________ step of the personal selling process.

preapproach

Kathy Champe, a public relations specialist for a regional chain of pharmacies, regularly contacts members of the local and statewide media with information about community events and charity fundraisers sponsored by her company. This is an example of the ________ function of public relations.

press relations

A number of top fashion-modeling agencies would most likely be charged with ________ for jointly determining what commissions they charge for models.

price fixing

Vidal Sassoon shampoos contain different amounts of scent according to the country in which they are sold. This is an example of ________.

product adaptation

Daizy's is a shop that carries only plus-size clothing. According to this information, Daizy's differentiates itself from its competitors based on _______

product assortment

Champion, Inc. is a manufacturer of lunch boxes, school bags, and school stationery. Charles Payton, the CEO of Champion, hopes to sell the products at a low price to penetrate the market quickly. Noticing that themed envelopes aren't selling well, Charles Payton decides to offer customers a special "letter writing" kit. He prices the kit-which comprises letter paper, matching envelopes, and pens-at $5, even though the combined prices of the individual items is $8. Which of the following pricing strategies is he using?

product bundle pricing

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets?

product line pricing

Orion is planning to give away free mouse pads imprinted with the company logo and name to anyone who enters their store on the day they launch their new laser mouse. What kind of sales promotion is Orion planning?

promotional products

La Belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at $99 per item. La Belle reasons that customers in search of luxury goods will prefer its product because they are likelier to believe that high price indicates superior quality. What price adjustment strategy is evident in its reasoning?

psychological pricing

You receive a report that 68 percent of your target market has been exposed to your ad campaign during a given period of time. Which of the following aspects of media selection is represented by this information?

reach

A product in the maturity stage will most likely require ________ advertising.

reminder

Mark's Markers, a manufacturer of white board markers, has required its dealers to charge a specified retail price for its markers. Mark's is most likely guilty of ________.

retail price maintenance

Many firms hire celebrities to appear in their advertisements. Which step of the communication process is represented?

selecting the message source

A hickory rocking chair, handmade by a French woodcarver in northern Quebec from locally grown wood, is an example of a(n) ________.

specialty product

GameStop sells only video games and systems, offering a narrow product line with a deep assortment within that line. GameStop is a(n) ________.

specialty store

Yummy Peanut Butter created a new coconut-flavored peanut butter that it tested in a small number of representative cities. The company plans to use the results to forecast national sales and profits. Which of the following did the firm use?

standard test markets

Heineken beer is sold successfully in the same form around the world. Which of the following product strategies is illustrated in this example?

straight product extension

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

Hannah Adams is a senior sales manager in Elmo Corp., a rapidly growing company manufacturing personal computers and printers. In order to handle sales effectively, Hannah insists on using the services of different groups of people from different departments within the company such as the sales, marketing, technical support, and finance departments. In this instance, Hannah makes use of ________.

team selling

At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance work in cross-functional groups to save time and money in the new product development process. Fantastic Flavors uses a ________ approach.

team-based new product development

Sales executives at Keiron Air Conditioners use phone directories to call customers and convince them to buy their air conditioners. Which form of direct marketing is used here?

telemarketing

A pharmaceutical ad features a world-renowned heart surgeon describing the benefits of a medication. Which of the following message execution styles is illustrated in this example?

testimonial evidence

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the policies developed by ________.

the NAFTA

Sam, the owner of a small company, learned that a competitor was planning to spend $150,000 on promotion in the next financial year. As soon as he learned this, Sam called his finance manager and said, "I want to spend $150,000 on promotion next year." In this case, which method of promotional budgeting does Sam use?

the competitive-parity method

Steelz Inc. has designed a process that manufactures an improved version of steel more efficiently, which will save the firm both money and resources. In considering the launch of this new steel in the market, the firm must first decide on ________.

timing

Shoe Trends, a company that manufactures formal shoes for men and women, offers to give its customers $10 for an old pair of shoes when they buy a new pair. In essence, they're reducing the price of the new shoes by $10. What is this type of price adjustment called?

trade-in allowance

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

Designing international channels that take into account the entire global supply chain and marketing channel, thus forging an effective global value delivery network, recognizes a company must have a ________.

whole-channel view

________ VMS is a vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties.

Administered

________ occurs when two established brand names of different companies are used on the same product.

Co-branding