Marketing Final 8-20

As production moves up, the average cost per unit decreases because ________.

fixed costs are spread over more units

A marketer making decisions about the headline, copy, illustration, and colors for a print ad is determining the message ________.

format

The long-run average cost (LRAC) curve indicates the ________.

per unit cost of output in the long run

Companies using target costing ________.

start with an ideal selling price and then target costs that will ensure that the price is met

While using integrated marketing communications, the communications process should start with a(n) ________.

audit of all potential customer touch points

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

authority

Which of the following is one of the four consumer perception dimensions used by ad agency Young & Rubicam to measure brand strength?

brand relevance

Variable costs change directly with the level of production.

True

Decoding is the process by which a sender puts his or her thoughts into a symbolic form.

false

Which of the following is a conventional consumer marketing channel?

producer to wholesaler to retailer to end consumer

Multimodal transportation refers to the combination of two or more modes of transportation.

true

Herbie Inc., a firm manufacturing sandwich makers, has fixed costs of $250,000, variable costs of $20 per unit of output, and expected unit sales of 50,000 units. What is the unit cost of a sandwich maker manufactured by Herbie?

25

The total production costs at Kellner Machine Works are $87,000 out of which $45,000 represent fixed costs. Which of the following is representative of the variable costs incurred by the company?

42000

Which of the following is an effect of the advancement of technology on marketing?

Consumers rely less on marketer-supplied information than in the past.

Which of the following questions is most important for product designers to consider while developing a product?

How would customers use and benefit from the product?

As a part of intensive distribution, dealers are expected to refrain from selling the products of the producers' competitors.

False

Attributes are the most desirable level for brand positioning because competitors can easily copy attributes.

False

Branding decisions include determining a product's price.

False

Customer perceptions of the product's value set the floor for prices.

False

For few companies, the package itself has become an important promotional medium.

False

Specialty products are consumer products and services that customers evaluate on suitability, quality, price, and style, by gathering information and making comparisons.

False

The "Stop. Think. Tylenol." ad slogan is an example of a moral appeal.

False

Using a push strategy, the producer directs its marketing activities (primarily advertising and consumer promotion) toward final consumers to induce them to buy the product.

False

Value-based pricing uses the sellers' perception of value as the key to pricing.

False

Features are a competitive tool for differentiating a company's product from competitors' products. Which question are companies LEAST likely to ask in a survey of buyers regarding product features?

How much would (a certain new feature) be worth to you?

Product line filling is overdone if it results in cannibalization and customer confusion.

True

Service ________ means that services cannot be stored for later sale or use.

Perishability

Which of the following is true of vertical marketing systems?

Producers, wholesalers, and retailers act as a unified system.

________ refers to the characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.

Product quality

PoolPak produces climate-control systems for large swimming pools. The company's customers are more concerned about service support for maintaining their systems than the initial price of the product. PoolPak specializes in and differentiates itself through both cutting-edge technologies used to build its high-value climate control systems as well as seamless quality service. PoolPak's prices are very high, but demand for its climate-control systems seems to be forever on the rise. This exemplifies ________.

a nonprice position

Which of the following product offerings is intangible?

a taxi ride

Ch 12 Heart of Midnight sells blue orchids to major florists around the world. Their key requirement is speed. Which of the following modes of transport will help them?

air carriers

Refer to the scenario below to answer the following question(s). Kimberly's Crown sells and designs jewelry. Despite the jewelry's popularity, products are available only through a few shopping stores across the country. What mode of transport should Kimberly use to ship its goods over long distances as quickly as possible?

air transport

Which of the following should be a manufacturer's first step when designing an effective marketing channel?

analyze consumer needs

Moral appeals ________.

are directed to an audience's sense of what is "right" and "proper"

Companies with lower costs ________.

can set lower prices that result in smaller margins but greater sales and profits

Producers of convenience products and common raw materials typically seek exclusive distribution, a strategy in which they stock their products in as many outlets as possible.

false

A(n) ________ consists of one or more independent producers, wholesalers, and retailers, each seeking to maximize its own profits, sometimes even at the expense of the system as a whole.

conventional distribution channel

A ________ VMS integrates successive stages of production and distribution under single ownership.

corporate

________ involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.

cost-based pricing

The fundamental asset underlying brand equity is ________, the value of customer relationships that the brand creates.

customer equity

________ pricing uses buyers' perceptions of value as the key to pricing.

customer value-based

________ logistics starts with the marketplace and works backward to the factory or even to sources of supply.

customer-centered

Which of the following shows the number of units the market will buy in a given time period, at different prices that might be charged?

demand curve

The affordable method involves setting promotion budgets to match competitors' outlays.

false

The producer informs each channel member what its responsibilities are, and what the terms of business are.

false

Which promotional tool is the most immediate, customized, and interactive?

direct marketing

Developing an effective integrated marketing mix program involves coordinating price decisions with product design, promotion, and ________ decisions.

distribution

Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. This reflects Bon Vivant's ________ pricing strategy.

everyday low

ch. 10 Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. This is an example of ________ pricing.

everyday low

Ocean Spray sells its air fresheners only through Ray's Drugs. This is an example of ________ distribution.

exclusive

With which of the following strategies would a company give only a limited number of dealers the right to distribute its products in their territories?

exclusive distribution

Ch 14 Mass marketers can expect consumers to distinguish between commercial message sources to maintain a clear image of a company and its brands.

false

Co-branding occurs when retailers and wholesalers create their own store brands.

false

Market offering includes everything from pure tangible goods to pure services, as well as combinations of goods and services. Which of the following is NOT a product or service?

free concert

With accumulated production experience and a higher volume of production, companies not only become more efficient but also ________.

gain economies of scale

________ contributes to a product's usefulness as well as to its looks.

good design

Department stores such as Kohl's and JCPenney's practice high-low pricing by ________.

having frequent sale days for store credit-card holders

Service companies can differentiate their service delivery by ________.

having more able and reliable customer-contact people

In a(n) ________, two or more companies at one level join together to follow a new marketing opportunity.

horizontal marketing system

A manufacturing plant is designed to produce 2000 flat-screen TVs per day. But demand is higher than that. If the company tries to increase its production to 2500 TVs per day, the average costs will ________ because ________.

increase; the plant becomes inefficient

________ management is the logistics concept that emphasizes teamwork-both inside the company and among all the marketing channel organizations-to maximize the performance of the entire distribution system

integrated logistics

Companies with higher costs ________.

intentionally pay higher costs so that they can add value through higher quality and claim higher prices and margins

Through ________, a service firm orients and motivates its customer-contact employees and supporting service people to work as a team to provide customer satisfaction.

internal marketing

Product mix ________ refers to the total number of items a company carries within its product lines.

length

Some companies obtain the rights to use the names or symbols previously created by other manufacturers for a fee. This process is known as ________.

licensing

From the economic system's point of view, the role of ________ is to transform the assortments of products made by producers into the assortments wanted by consumers.

marketing intermediaries

Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price.

monopolistic competition

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

Atlas Imports and Exports sells products directly to consumers via the Atlas Web site, and through local retailers as well. Which of the following is evident here?

multichannel distribution system

Which of the following is the most logical budget-setting method?

objective-and-task method

________ logistics involves moving products from the factory to resellers and ultimately to customers.

outbound

Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result.

percentage-of-sales

Elmo Inc., a Michigan-based manufacturer of athletic shoes, uses professional athletes in its ad campaigns to help sell its products. This is an example of ________ marketing.

person

Communication through a telephone call is considered a part of a(n) ________ communication channel.

personal

Extel Inc., a home appliance manufacturer, uses sales representatives to sell its products to wholesalers and individual customers. This is an example of ________.

personal selling

Which of the following promotional tools is the most effective in building up buyers' preferences, convictions, and actions?

personal selling

________ are a specialized means of shipping petroleum, natural gas, and chemicals from sources to markets.

pipelines

Tourism Australia's global marketing campaign, "There's nothing like Australia" is an example of ________ marketing.

place

The Great Recession of 2008 to 2009 triggered a shift in consumer attitudes toward ________.

price and quality

An increasing number of retailers and wholesalers have created their own ________, also called store brands.

private brand

Refer to the scenario below to answer the following question(s). Ruben Delgado built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors. But after two years, the maker of novelty pens and pencils had to rethink his strategy when his contract with Elmore ended. The new felt-tip pens, multiple-cartridge pens, and quills offered by Ruben Delgado are examples of ________.

product line filling

A ________ consists of all the product lines and items that a particular seller offers for sale.

product mix

Communications programs need to be developed for specific niches, individuals, and ________.

products

A newspaper article announced that Connect Wireless, the sixth-largest wireless carrier in a country, was changing its name to M-Mobile and that to begin the makeover process it had replaced spokesperson Robert Garmon with Catherine Naylor. Which of the following elements of a promotion mix is represented in this example?

public relations

Using a(n) ________ strategy, the producer directs its marketing activities toward final consumers to induce them to buy the product.

pull

Business-to-consumer companies are more likely to emphasize a ________ promotion strategy, while business-to-business companies are more likely to emphasize a ________ promotion strategy.

pull, push

Under ________, the market consists of many buyers and sellers trading in a uniform commodity

pure competition

Refer to the scenario below to answer the following question(s). Alden Manufacturing produces small kitchen appliances-blenders, hand mixers, and electric skillets-under the brand name First Generation. Alden attempts to target newlyweds and first-time home buyers with this brand. Which of these is NOT a way in which pricing can accomplish company objectives?

raise prices to create excitement for a brand

Suppose Amazon.com has offered you free shipping on your next purchase of more than $35. This offer is an example of ________.

sales promotion

Refer to the scenario below to answer the following question(s). Kimberly's Crown sells and designs jewelry. Despite the jewelry's popularity, products are available only through a few shopping stores across the country. What distribution strategy does Kimberly's Crown use?

selective

Refer to the scenario below to answer the following question(s). John Mayes opened Sparkle Janitorial in 2005. John began his business by acquiring two contracts for office cleaning services from two local manufacturing facilities. For two years, John and his wife, Barb, performed the cleaning services alone. After acquiring three additional cleaning contracts in 2007, John hired two employees. "Up to that point, we had room to grow but we really had no advertising plan," John stated. "We were relying mostly on word-of-mouth." John and Barb could have drawn attention to their services in several ways by using effective integrated marketing communications. Which of the following is NOT a part of an IMC strategy?

strategic planning

Research shows that the advertiser is often better off asking questions and allowing ________.

the buyer to reach their own conclusions

he break-even volume is the point at which ________.

the total revenue and total cost curves intersect

As mass markets have fragmented, marketers have shifted away from mass marketing.

true

Downstream marketing channel partners, such as wholesalers and retailers, form a vital link between the firm and its customers.

true

Electronic data interchange is the digital exchange of data between organizations, which primarily is transmitted via the Internet.

true

Marketing channel management calls for selecting, managing, and motivating individual channel members and evaluating their performance over time.

true

Multichannel marketing occurs when a single firm sets up two or more marketing channels to reach one or more customer segments.

true

A well-known cosmetic company in New York City added new product lines in order to increase its business. In other words, it ________.

widened its product mix