Marketing Final
The stages for establishing pricing are
1. development of pricing objectives 2. assessment of target market's evaluation of price 3. Evaluation of competitors' price 4. Selection of a basis for pricing 5. selection of a pricing strategy 6. Determination of a specific price
____ involves the use of digital networks to provide linkages between information providers and users.
Connectivity
The three major dimensions on which prices can be based are:
Cost, demand, Competition
____ uses the Internet, mobile, and interactive channels to develop communication and exchanges with customers.
Digital Marketing
A sharing of meaning defines
communication
H&M, a clothing company, communicates to its target customers by advertising in magazines, offering clothing information on its website, creating a periodic online newsletter, Facebook, and Twitter. These vehicles through which the coded message is transmitted from the source, H&M, to the receiver, the prospective customer, is called a(n)
communication channel
A ____ is created when a company matches its core competency to opportunities it has discovered in the marketplace.
competitive advantage
Amazon's pricing, service, and continuing investment in improving its website with additional product offerings give it a(n) ____ over many other retailers.
competitive advantage
When shopping for detergent, Josh looks at Tide, Fresh Start, Surf, and All and chooses the one that is on sale. These four brands make up his ____ set.
consideration
Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of use. The introduction of the iPad was an example of a _____ for Apple, something that an organization does extremely well and may give a company an advantage over its competition.
core competency
A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called
corporate culture
negotiated pricing
establishing a final price through bargaining between seller and customer
The 1990 Nutrition Labeling and Education Act directly prohibits
exaggerated health claims on food packages.
By offering both credit and financing through its GMAC division, General Motors is trying to help consumers
expand current buying power at the expense of future buying power.
Beth Hines is buying furniture for her apartment for the first time. She is spending considerable time and effort comparing the products that different stores offer. Which type of decision-making process is she using?
extended
When a customer is considering the purchase of a product in a less-familiar product category, that individual is likely to rely more heavily on
external reference prices
Product-related ethical issues arise when marketers
fail to disclose information to consumers about the risks associated with using a product.
The receiver's response to a message is ____ for the source.
feedback
A competitive advantage exists when a
firm matches a core competency to opportunities it has discovered in the marketplace.
Advertising, personal selling, sales promotion, and public relations are called
promotion mix ingredients
A marketing opportunity results from
the right combination of circumstances and timing that permits an organization to take action to reach a particular target market.
Price is
the value that is exchanged for products in a marketing transaction.
Companies that compete for the same limited financial resources of the same customers are known as ____ competitors.
total budget
A retailer is an organization that purchases products for the purpose of reselling them to
ultimate consumers
The equation a buyer applies to assess a product's value is
value= customer benefits - customer costs
In service marketing, the most important link to the customer is
well trained contact employees
In the consumer buying decision process, the information search stage
yields a group of brands that a buyer views as possible alternatives.
Distribution, price, promotion, and product are all elements of
Marketing Mix
The oldest form of exchange⎯trading of products⎯is known as
barter
The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as
cause-related marketing
Nordstrom, Macy's, and JCPenney are all considered
department stores
The first stage in the development of any advertising campaign is
identifying the advertising target audience.
The three basic forms that a product can take are
services, ideas, and goods
Which of the following characteristics distinguish online media from traditional marketing?
Addressability, interactivity, accessibility, connectivity, and control
____ strategy determines the means for utilizing resources in the functional areas of marketing, production, finance, research and development, and human resources to achieve the organization's goals.
Corporate
Lindsay was reviewing her bank statement for last month. She had paid her rent, her car payment, electric and phone bills, and made three trips to the grocery. Lindsay had also bought tickets to a Katy Perry concert and new clothes to wear to the concert. The money spent on Lindsay's rent, car, electric and phone bills was likely from her ____ , while the money spent on the concert tickets and new clothes was from her _____.
Disposable income; Discretionary income
Honey Farms is a maker of fine chocolates. The company's latest product, Fudge-Dipped Strawberries, is the premier product in its Fudge-Dipped line. The product is very expensive and targeted to upscale consumers. Which form of distribution would Honey Farms be likely to use for its new product?
Exclusive
____ allows customers to express their needs and wants directly to a company in response to its marketing communications.
Interactivity
T-Mobile implements a program of texting its current customers to find out what changes they would like to see in the services provided. The firm is exhibiting characteristics associated with which of the following orientations?
Market
When Campbell's introduced a line of low-sodium soups in response to customer demand, it was following which one of the following philosophies?
Marketing Concept
What type of competitive structure exists when a firm produces a product that has no close substitutes?
Monopoly
____ marketing includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit.
Nonprofit
The Decca Electric Corporation produces light bulbs that are used in refrigerator manufacturing. Currently, only three other companies produce bulbs used in the production of refrigerators, with Decca as the leader in market share. In this case, Decca Electric Corporation would be considered
Oligopoly
____ is the value of the benefit that is given up by selecting one alternative rather than another.
Opportunity Cost
bundle pricing
Packaging together two or more complementary products and selling them at a single price
If a company calls a meeting to announce a major news event, this is known as a
Press Conference
Marketing Ethics
Principles and standards that define acceptable marketing conduct
When DuPont develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?
Promotion
____ is a broad set of communication activities used to create and maintain favorable relations between the organization and its stakeholders.
Public Relations
While Silk Soymilk engages in environmental scanning and analysis, the company is more likely to change its products and marketing strategies to adapt to environmental forces rather than trying to influence these forces. Silk Soymilk has a(n) ____ approach to marketing environmental forces.
Reactive
Which of the following statements about marketing environment forces is correct?
They influence customers by affecting their lifestyles, standards of living, and preferences and needs for products.
____ is a customer's subjective assessment of benefits relative to costs in determining the worth of a product.
Value
The marketing concept is best defined as
a philosophy stating that an organization should try to satisfy customers' needs through a coordinated set of activities that allows the organization to achieve its goals.
Starbucks has an agreement with Pepsi Co. through which Pepsi distributes Starbucks' coffee drink, Frappucino, to grocery stores and other retail outlets. This is an example of
a strategic channel alliance
When PepsiCo takes the information collected through research and attempts to assess and interpret what it means for its soft-drink marketing efforts, PepsiCo is engaged in environmental
analysis
The strategic planning process begins with
analysis of the marketing environment
Rick is a sales representative for Lucent Technologies. He has reviewed a prospect's account and credit history, identified product needs, and gathered the appropriate literature he needs. Rick feels he is ready for the ____ step of the personal selling process.
approach
The stage of the personal selling process in which the salesperson attempts to make a favorable impression, gather information about the customer's needs and objectives, and build a rapport with the prospective customers is called
approach
One of the fastest-growing areas in mobile technology is the creation of ____ that help consumers to access more information about businesses
apps
Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the
break even point
Suppose managers at Caterpillar have determined the costs associated with producing hay balers are equal to the price that they charge for the hay balers. This indicates that Caterpillar is producing at the ____ point.
breakeven
Routinized response behavior is what a consumer does when
buying frequently purchased, low-cost items that need little effort
differential pricing
charging different prices to different buyers for the same quality and quantity of product
The main characteristic of a ____ is that customers are satisfied to the point that they use a service repeatedly over a period of time.
client-based relationship
The ____ stage of the personal selling process is when the salesperson asks the prospect to buy the product.
closing
After purchasing a new Lexus, Brandon sees an Infinity pass by on the street and begins to wonder if he made the right choice. Brandon is experiencing
cognitive dissonance
As Quaker Oats tries to decide how to introduce its new line of breakfast bars, it considers all the advantages and disadvantages of the various consumer sales promotion methods. After careful consideration, Quaker Oats decides to use ____, which are the most widely used form of consumer sales promotion.
coupons
Often when a company introduces a new product or line extension, its promotion will focus on ____ in order to initiate the product-adoption process.
creating awareness
When managers at Logistics Pro are developing their strategic plan, they use a market orientation as a guide to ensure that ____ is an integral part of the process.
customer satisfaction
Any human or mechanical effort that adds value to a product is called
customer service
Compared with other types of retailers, department stores compete mainly on the basis of
customer services
A marketing channel is defined as a group of individuals and organizations that
directs the flow of products from producers to consumers
Consumers buying products online have dramatically affected the ____ variable of the marketing mix.
distribution
Del Monte markets ketchup for household use to supermarkets through grocery wholesalers. It markets ketchup for institutional use through industrial distributors and food brokers. Del Monte is using
dual distribution
Which of the following refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing.
electronic marketing
Collecting information from secondary sources such as business, government, trade, and general-interest publications plays an important role in
environmental scanning
SiriusXM Radio is concerned about how the increasing use of smart phones will affect the future sales of its satellite radio service. The company decides to gather information about the changing trends in music access and delivery to prepare for this trend. Sirius XM's process is called
environmental scanning
The final stage of the selling process is
follow up
Due to limited resources, a consumer decided to serve Hawaiian Punch to a New Year's Eve party crowd instead of Korbel champagne. As a result of this action, Korbel and Hawaiian Punch can be viewed as ____ competitors.
generic
Initiatives intended to improve an organization's positive impact on society and the natural environment are called
green marketing
Services delivered through machinery such as computer kiosks, ATMs, and vending machines can reduce the ____ that comes from increased contact with human employees.
heterogeneity
Services have six basic characteristics: intangibility, inseparability of production and consumption, perishability, client-based relationships, customer contact, and
heterogeneity
To formulate a marketing strategy, one must
identify and analyze a target market and develop a marketing mix to satisfy individuals in that market.
Marissa goes to Target to purchase school supplies for her two children. As she is approaching the check-out counter, she sees a vase she just has to have and buys it immediately. Marissa's purchase of the vase is an example of
impulse buying
The amount of money received through wages, rents, investments, pensions, and subsidies is called
income
When using credit to make purchases, consumers are
increasing current buying power at the expense of future buying power.
According to Maslow's hierarchy of needs,
individuals first satisfy the most basic needs and then try to fulfill needs at the next level up.
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
Personal trainers cannot complete their work without their clients present because of the ____ feature of services.
inseparability
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
Walgreen's has set up a website that enables customers to converse with the company and communicate their needs and wants. This is an example of a(n) ____ website.
interactive
A price developed in the consumer's mind through experience with the product is called a(n)
internal reference price
A target market
is a specific group of customers on whom an organization focuses its marketing efforts.
Extended decision making is the type of consumer decision-making process that
is the most complex decision making behavior, which comes into play when a purchase involves unfamiliar, expensive, or infrequently bought products.
Personal selling goals include finding prospects, convincing prospects to buy, and
keeping customers satisfied
Marketers often provide consumers with free samples, sometimes coupled with coupons, to help them gain experience with their products and facilitate consumer
learning
Salina is shopping for low-calorie frozen dinners to take to work for lunch. Salina has always been mindful of the total calories and the number of fat grams in these dinners. However, after reading an article about the high sodium counts in frozen meals and the maximum grams of sodium a woman should eat daily, she now pays attention to the sodium as well. The changes in Salina's thought processes and behavior caused by this information is called
learning
When a consumer purchases products occasionally or needs information about an unfamiliar brand in a familiar product category, he or she will most likely engage in
limited decision making
The three most widely recognized types of consumer decision making are:
limited problem solving, extended problem solving, and routinized response behavior.
Ariana is planning to open an upscale dress boutique. She is evaluating ease of movement to and from sites, vehicular traffic, types of stores in the area, and transportation networks. Which strategic retailing issue is she concerned with at the time?
location
The kinds of products being sold and the availability of public transportation are both factors that influence a retailer's decision about
location
Location is important to a retailer because
location determines the trading area from which the store must draw its customers.
A group that has the willingness, ability, and authority to buy a product is a
market
Realizing an increase in both the number of consumers who are environmentally-conscious and the number of consumers who are seeking vehicles that use less gasoline, several car manufacturers have developed hybrid automobiles. This is an example of identifying and capitalizing on a ____ while the strategic window is open.
market opportunity
A change in the minimum drinking age in any given state illustrates a change in the ____ for Miller Brewing.
marketing environment
When the right combination of circumstances occurs at the right time to allow an organization to take action toward a target market, the firm is faced with a
marketing opportunity
Safeway Foods Corporation is involved in identifying and analyzing a target market. The firm then develops a marketing mix to satisfy individuals in that market to gain long-term competitive advantages. Based on this example, Safeway is creating a
marketing strategy
Marketing managers strive to develop a marketing mix that
matches the needs of the target market.
A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n)
media plan
Price is considered to be the variable in the marketing mix that is
most flexible
Sydney won a hot-air balloon ride and dinner for two for being the top revenue-producing mortgage loan officer at her company for the month of October. This contest exemplifies a company's efforts at
motivating salespeople
Buyers' actions are affected by one or more internal energizing forces geared toward satisfying needs, which are called
motives
Anything that reduces the accuracy and clarity of communication is called
noise
During a one-minute television ad for Nike, the National Weather Service interrupts to announce a flash flood warning for surrounding counties. Such an occurrence is an example of ____ in the communication process.
noise
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 owner of a professional baseball team asks the account representative of an advertising agency to develop an advertising campaign to bring more teenagers to the ballpark. At this point, the account representative logically begins to discuss establishing ____ for the campaign.
objectives
Three primary methods of collecting information for environmental scanning are
observation, secondary sources, and marketing research.
Colin 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
Kinesic communication is an element in which type of promotional method?
personal selling
Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is
personal selling
A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility.
philanthropic
McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ____ responsibility.
philanthropic
The two major types of product advertising are
pioneer and competitive
Marketing channels create four types of utility for consumers including
place, time, possession, and form
Procompetitive laws are those designed to
preserve competition
A measure of sensitivity of demand in relation to changes in price is
price elasticity of demand
Isabella is a product manager for The Container Store, a retailer of plastic bins and other storage containers. Sales have been declining in the past nine months and her management team is pressuring her to compete based on price discounts. However, Isabella is aware of the dangers associated with engaging in price competition. She knows that competitors can also change prices quickly and aggressively, which can result in a(n) ____ that will be harmful to both companies.
price war
reference pricing
pricing a product at a moderate level and displaying it next to a more expensive model or brand
When Julia goes to the first class of her Operations Management course, she finds out that in addition to the textbook she already purchased, she also needs a copy of the book The Goal. At which stage of the consumer buying decision process is Julia?
problem recognition
The five major stages of the consumer buying decision process, in order, are
problem recognition, information search, evaluation of alternatives, purchase, and post purchase evaluation.
Deciding to add gel insoles to its running shoes would be a change in the ____ element of the marketing mix for Nike.
product
If the push policy is used in promoting a product, the firm
promotes only to the next marketing institution down the marketing channel.
Communication that builds and maintains favorable relationships by informing and persuading one or more audiences to view an organization more positively and to accept its product is the role of
promotion
The element of the marketing mix used to increase awareness of a product or company is
promotion
Boca Burger's website features information about products, recipes, and nutritional values, but customers cannot actually purchase products from the website. This website is most likely used primarily as a ____ marketing tool.
promotional
Sayyid's company has launched a new product line, and he is put in charge of sales. He decides his first step will be to find potential customers in the company's sales records. Sayyid is
prospecting
A marketing plan
provides a framework for implementing and controlling marketing activities.
Kohl's, a department store featuring clothing and housewares, communicates in news story form about its organization and its efforts to support local children's hospitals. This information is transmitted through mass media at no charge and is therefore called
publicity
The Sharper Image likes to use nonpersonal communication in news story form such as press releases for its new and improved products. This is an example of
publicity
If Wilson Sporting Goods faces a standard demand curve that exists for most products, as it raises the price of its tennis rackets, the
quantity demanded goes down
Alton is reading a magazine ad for a new cologne. In the ad, he sees little more than a photo of a man riding horseback on a beach, and the name of the new cologne, Rugged. In this situation, Alton is a ___, one who ___.
receiver; decodes
Total buying power declines during periods of economic
recession
Today, establishing long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges is known as
relationship marketing
Kate owns a refreshment-stand business at the community ballpark. She goes to a warehouse store like Sam's and purchases snacks and canned soda that she will sell at her refreshment stand. Kate is considered a(n)
retailer
Walmart, Macy's, Nordstroms, and Toys "R" Us are examples of
retailers
Direct selling, direct marketing, and vending machines are all examples of
retailing
Stacy is going to the store to buy milk and cereal. She will most likely use ____ in her consumer decision-making process.
routinized response behavior
Which of the following consumer decision-making processes will probably be used in purchasing toothpaste?
routinized response behavior
The salesperson must attract and hold the prospect's attention, stimulate interest, and spark a desire for the product during the
sales presentation
Albott Laboratories offers ceramic coffee mugs to its physician customers when it promotes a new drug. This example illustrates Albott's use of which one of the following elements of the promotion mix?
sales promotion
An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is
sales promotion
Hunt's decided to put a much larger share of its promotion budget into ____ because of the heavy reliance it will be placing on coupons in the second quarter.
sales promotion
The marketing concept focuses on
satisfying customers' needs in a way that helps to achieve organizational objectives
The Fisher-Price company produces toys and baby-related products. For the introduction of its line of nursery furniture for infants and small children, the Fisher Company will most likely use ____ distribution for the products.
selective
When a marketer makes an effort in promotion to point out the strengths and benefits of a specific brand, it is an attempt to build ____ demand.
selective
The continuum of tangibility goes from ____ on one end to ____ on the other end.
service-dominant products; good-dominant products
secondary-market pricing
setting one price for the primary target market and a different price for another market
A consumer's buying decisions are affected in part by the people around him or her. Such people and the forces they exert on an individual buyer are called
social influences
In contrast to industrial products, consumer products are often purchased because of
social influences
Sam's Club has developed a website that allows employees to create a profile and connect with co-workers for the purpose of getting acquainted and building a work related network. This is an example of a
social network
In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication
source
Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)
stakeholder
Jose Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of non-selling tasks. What compensation method(s) would best fulfill his requirements?
straight commission
Within a business organization, a profit center that is self-supporting in terms of sales, markets, production, and other resources is known as a
strategic business unit
Home Depot's synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both social initiatives and its business goals is an example of
strategic philanthropy
Managers at the Longshore Corporation are engaged in a complex process of revising their organization's mission and goals and developing corporate strategy, marketing objectives, marketing strategy, and, eventually, a marketing plan. This process is called
strategic planning
An analysis of ____ examines internal factors that give the organization certain advantages and disadvantages in meeting the needs of its target markets.
strengths and weaknesses
A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.
supplementary
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 is called
supply chain management
Walmart is working with its suppliers, using tools such as electronic billing, purchase order verification, and bar code technology, to integrate data used to improve overall performance. This is an example of
supply chain management
Because of its highly efficient and low-cost distribution system, Walmart has a ____ advantage over Kmart.
sustainable competitive
Harley-Davidson's Harley Owner's Group (HOG) helps to foster strong relationships between riders and their motorcycles, giving it a(n) ____ over other motorcycle manufacturers.
sustainable competitive advantage
As their meeting concludes, Jamal rises and thanks Gina for taking the time to come by and explain her firm's new line of industrial fasteners. A handshake, which is best described as a form of _____ communication, concludes the session.
tactile
Periodic Discounting Pricing
temporary reduction of prices on a patterned or systematic basis
Random Discounting Pricing
temporary reduction of prices on an unsystematic basis
Technology is
the application of knowledge and tools to solve problems and perform tasks more efficiently
Possession utility is best described as
the customer having access to the product to use now or store and use later.
StarKist Tuna announced a dolphin-safe policy and stopped buying tuna from fishing vessels that net dolphins. This decision indicates a response to concerns about
the marketing environment