Exam 4 Test Prep Marketing Strategy Rich Brown: Quiz Questions
At the end of the year, if Malek reaches his annual sales quota, he is given an extra $10,000. This is an example of
a bonus
Petros is the marketing manager for a pharmaceutical company. His team relies on a combination of personal selling and sales promotions directed toward pharmacies and medical facilities. This is an example of
a push strategy
When two or more brands are reviewed against each other on certain attributes, it is considered ______________ advertising
comparative
A value network perspective is a macro-level strategic approach that is being adopted by many firms in part because of the intense competition to cut ________ and maximize ________ every step of the way to market.
costs; process efficiencies
ESPN allows each user of the site to customize the homepage to display relevant information in a side column about a given user's favorite teams, including upcoming games, scores, and stories. Which element of the customer interface does this illustrate?
customization
Joachim purchased an alarm system for his car during a promotion. He considered the price during the promotion to be very attractive. However, he later learned that the firm set an artificially high reference price for the alarm system just before the promotion to make the advertised sale price more attractive. Joachim just experienced
deceptive pricing
During the ________ stage of the AIDA model, promotional messages are altered so that a customer feels they simply must have the product and can't live without it.
desire
A plastics manufacturer wants to ensure it can avoid critical interruptions in its supply chain, so it uses a(n) _______________ to manage much of the logistics and other processes.
enterprise resource planning system
Logistics and other processes are managed using sophisticated and integrated
enterprise resource planning system
What is the final element the marketing manager should implement in promotional strategy?
establish measures of results
When a company pays customers for their positive ratings on product user review sites, it may cross a(n) _______________ line
ethical
The fundamental philosophy behind ________ is to reduce investment in promotion and transfer part of the savings to lower price.
everyday low pricing
An expensive fashion line enters into an agreement with a high-end clothing store. This agreement prevents the clothing store from selling competing products. This is an example of
exclusive dealing
________ costs are incurred over time, regardless of volume, whereas ________ costs fluctuate with volume.
fixed; variable
_____________________________ is one of the three distinct advantages of personal selling.
immediate feedback
The affective steps of AIDA are
interest and desire
A clothing company sells its goods in physical stores, through their online website, through a paper catalog, and through a mobile app. This is an example of
omnichannel retailing
Sometimes referred to as pricing for maximum market share, ___________ can create a market entry barrier for other firms.
penetration pricing
Which of these is an intrinsic reward?
personal growth
A strategy of ________ addresses the objective of entering a market at a relatively high price point.
price skimming
Channel members add their value by bridging gaps in form, time, place, and ownership that naturally exist between
producers and consumers
The vast majority of advertising is ____________ advertising.
product
______________ affords the marketing manager an opportunity to develop a rational pricing strategy across a complete line of related items.
product line pricing
Creating a perception about price merely from the image the numbers provide the customer demonstrates _______________ pricing
psychological
Martha runs a hardware store. She learned that customers process the price of $9.99 as significantly lower than the price of $10.00 because of the reduced digit count in the price point. Accordingly, she follows this rule to set up the prices for all products. Martha uses a ____________ strategy.
psychological pricing
When targeted to members of a channel on which a firm relies to sell a product, ____________________ is an important element of a push strategy.
sales promotion
A modern interpretation of a(n) ______________ is a group of people connected through technology.
social network
Patty is in charge of overseeing the flow of activities among several entities for a chain of large retail stores. Her main objective is to coordinate these value-adding activities in a way that maximizes value and profit. She is in charge of
supply chain management
Zelda is opening an appliance store. She has estimated a monthly profit goal based on her anticipated expenses and earnings goals and uses it to set product prices. Zelda is implementing a ________ pricing strategy.
target return on investment (ROI)
__________________ provide an incentive to a channel member for performing some function in the channel that benefits the seller, such as stocking a product or performing a product service.
trade discounts
One drawback that is particularly relevant to ____________ is the user expectation of very quick and timely response to questions or comments.
In the context of social networks, _______________ is targeted at working professionals and offers some distinct advantages in terms of content relevant to a professional audience.
A technology company wants to increase sales for their newest product, so they decide to invest in advertising and direct marketing for the product. This is an example of
a pull strategy
An intermediary works with large consumer product manufacturers as well as small local retailers. The company buys large quantities of products from the manufacturers and sells them in smaller quantities to retailers to better match quantities needed for space constraints and inventory turnover requirements. The intermediary is performing the distribution function of
breaking bulk
________________ advertising is heavily used during the growth and early maturity stages of the product life cycle.
competitive
______________, one of the seven dimensions used by researchers to define a website interface, refers to the overall layout, design, and aesthetic appeal of a site.
context
n a(n) _____________ vertical marketing system, a channel member invests in backward or forward vertical integration by buying a controlling interest in other intermediaries.
corporate
The internal processes at Southwest Airlines are highly efficient, giving it a competitive advantage over other airlines. Southwest has a very efficient maintenance process and also has a very simple process of booking passengers. Because of these efficiencies, the company is able to offer customers an appealing mileage-driven pricing structure while also increasing the airline's profit margin. According to Michael Porter, Southwest's competitive advantage is based on
cost leadership
Devon runs Uncommon Cakes, a gourmet cupcake bakery. To set prices for her cupcakes, Devon looks at the cost of making each cupcake and then adds an additional amount on top of that to arrive at her price. Devon is using
cost-plus pricing
Which customer sales promotion refers to an instant price reduction at the point of sale, available in print media, online, or in-store, that encourages customers to "buy now?"
coupon
Intermediaries engage in _____________ when they accumulate products from several sources and then make those products available down the channel as a convenience for consumers.
creating assortments
When General Hospital was informed that a physician had been sued after performing an unsuccessful surgery, the administration informed all of the staff of the situation. In addition, the public relations staff immediately sent out a press release to allow the hospital to manage the message before people jumped to conclusions. This demonstrates
crisis management
When Jennifer bought her new Samsung phone, she couldn't wait to show her co-workers its new features, all of which were widely advertised by the company. The next day, three of them went out and bought the same phone. Which stage of the AIDA model was created through Jennifer's actions?
desire
The development of promotional strategies most likely involves decisions about
elements in the promotion mix
In the past, ________ allowed manufacturers to establish artificially high prices by limiting the ability of wholesalers and retailers to offer reduced or discounted prices.
fair trade laws
_________________________________________ is the last stage of the personal selling process.
following up with customers
A _________________ is the highest-potential start-up and growth mechanism for small-business owners, and it is an effective way to expand a distribution channel quickly and efficiently.
franchise organization
________________ measures the average number of times a person in a target market is exposed to a particular message
frequency
Firms and brands that continually attempt to operate in the ________ quadrant of the generic price-quality positioning map may damage their relationships with customers and not survive.
high price, low benefits
_____________ goods are appropriate for intensive distribution, as their sales rely on the consumer seeing the product, feeling an immediate want, and being able to purchase now.
impulse
Dalina saw an ad for a Medicare Advantage insurance plan, so she called an 800 number to get more information. This approach is used to identify and qualify prospects and is an example of
inbound telemarketing
California Milk Advisory Board has been running a national advertising campaign on television. The ad features "happy cows" and carries the tagline "Great cheese comes from happy cows. Happy cows come from California." The board developed a logo that is prominently displayed in the ads, and presumably the expectation is that a consumer would look for that logo on a wedge of cheese in the dairy case, selecting it over cheese from elsewhere. This is an example of ________________ advertising
institutional
The goal of ________________ is to share resources, especially knowledge-based resources, to effect optimally profitable relationships between two channel members.
partner relationship management (PRM) strategies
Comcast cable company wants Mickey to buy the full gamut of entertainment products, and the more he buys—digital television, premium channels, downloadable movies, local and long-distance phone service, cellular service, high-speed internet—the better the deal becomes compared to the total of the individual prices of each product. Comcast is using a _____________________ strategy
price bundling
When Delphi purchased her new cell phone, she was offered an opportunity to purchase a car charger and a cover together at a reduced price. The cell phone provider was using a ______________ strategy.
price bundling
In the film Legally Blonde, Elle Woods used a sherbet iBook in class, while everyone else used black laptops. This demonstrates how Apple is using _____________________ as a sales promotion approach.
product placement
P&G often shows ads of people using its products, such as a family using a Swiffer to pick up dog hair. This approach to advertising execution is called
slice of life
______________ remit monies to purchasers after the fact.
allowances
A countertop store will give customers a 10 percent discount if they pay their bills in full in 20 days; however, after 20 days they do not receive a discount. This is an example of a _______________
cash discount
In an administered vertical marketing system, the sheer size and power of one of the intermediaries places it in a position of control. The lead player in such situations may be referred to as the
channel captain
________________ enhance utilities by providing a wide array of specific functions including physical distribution functions, transaction and communication functions, and facilitating functions.
channel intermediaries
Marcia was describing a humorous ad to her friend, who asked her what product it was for. She said she didn't know because there were so many ads on TV that she got them all mixed up. This demonstrates the problem advertisers have with
clutter
_____________ power involves an explicit or implicit threat that a channel captain will invoke negative consequences on a channel member if it does not comply with the leader's request or expectations.
coercive
____________, one of the seven dimensions used by researchers to define a website interface, is a site's ability to enable transactions while keeping data secure.
commerce
Apple ran a series of humorous television ads in which two guys stood side by side while slinging barbs back and forth about features of the Mac versus the PC. This is an example of ________________ advertising
comparative
______________ strategies can be intensive, selective, or exclusive.
distribution
Maurice has just completed a new line of designer handbags. He wants the price to communicate to the customer that the handbags are high quality and exclusive, so he sets the price high. He knows that after this season, the price may need to decrease as the market evolves. Maurice is using a ________ strategy.
price skimming
_____________________ could result in overall higher prices for consumers since various competitors are all pricing the same to maximize their profits.
price-fixing
Who or what are potentially the best brand and message ambassadors?
the company's employees
At the __________ stage of the AIDA model, marketing managers use promotions to gain awareness of the offering with the market's innovators and early adopters.
attention
In the initial introduction of the Prius, Toyota put much effort into building awareness of the emerging need for hybrid cars and also educating potential customers about what a hybrid car actually is. This is an example of the _____________ stage in the AIDA model.
attention
The disadvantage of geographic sales orientation is
it does not support specialization of labor
To ensure that inventories of both raw materials and finished goods are sufficient to meet customer demand without undue delay, firms utilize sophisticated
just-in-time (JIT) inventory control systems
__________________________ are those who are responsible for managing large accounts and are skilled in developing complex solutions to a particular customer problem.
key account salespeople
A recent study found that about 70 percent of Americans consult either a user review site or an independent review site before
making a purchase
A vertical ________ system consists of vertically aligned networks behaving and performing as a unified system.
marketing
A distribution company purchases meat from farmers. It then controls the terms of the sale of the meat to grocery stores around the country, including the price and delivery dates. It also takes on the risks associated with handling the product. This company is acting as a(n)
merchant intermediary
Centrum Vitamin's offer to buy a bottle of 100 and get an extra mini-bottle of 20 is an example of using _____________________ a sales promotion approach.
multiple-purchase offers
Vache is a marketing manager for a large soft drink company. As the marketing manager, he
must understand the basics of promotion
Digital ads designed to blend in with the format and style of the content that is offered through a website are called __________ ads
native
