Marketing Final Exam Study Guide

The _______ is a model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with a promotional message.

AIDA concept

Liam owns a laser car wash in New Jersey. His car wash is open six days a week and he employs two attendants to take payment and dry off the cars after they go through the automated wash. How would you classify Liam's product?

An intangible service

Craft Brewery wants to add a brown ale beer to its existing line of alcoholic products. The questions the company currently is asking itself are the following. What is the likely demand for the product? What impact would the new product probably have on total sales, profits, market share, and return on investment? How would the introduction of the product affect existing products! At what stage of new-product development process is this company?

Business analysis stage

_____ is a term that refers to a company's attempt to give the impression of environmental friendliness whether or not it is environmentally friendly.

Greenwashing

When developing a new product, which is true of a new-product development strategy?

It must be compatible with the objectives of the marketing department, the business unit, and the corporation.

When you purchase a gallon of milk, which of the following is creating exchange utility?

The supermarket

Which of the following is a function of marketing channel members?

They aid retailers in creating time, place, and exchange utility for customers.

When there are many substitutes available in the market for a particular product, consumers ______

can easily switch from one product to another, making demand more elastic

McDonald's is testing the Crispy Chicken Sandwich in two markets. McDonald's franchisees have asked for a Southern-style chicken sandwich as Chick-fil-A's threat to its business continues to grow. In test marketing, the greatest danger to McDonald's is in choosing a test-site city that ________

does not reflect market conditions in the new product's projected market area

Greenwashing is the term used to describe industrial processes that cause pollution above the permissible limit set by the government. true or false?

false

The marketing channel is the "upstream" portion of the supply chain that is charged with moving component parts or raw materials to the producer. true or false?

false

Which of the following statements is true of an effective promotional mix?

it meets the needs of the target market

A company's product sales as a percentage of total sales for that industry for the same type of product are known as _______

market share

Samsung is best known for its smartphones, tablets, and televisions. Years ago, when it decided to expand its business activities and operations into ship building and military hardware, it was gearing to offer ________

new product lines

Ketchup For All, a food manufacturing company, markets its tomato ketchup globally. As its consumers are well aware of the uses of ketchup, the company does not have to generate product awareness. The company, however, wishes to focus on convincing consumers to buy Ketchup For All's ketchup instead of other brands of ketchup. In this scenario, Ketchup For All must employ _________

persuasive promotion

The famous Oreo cookie has added to its brand. The Oreo company now sells piecrusts, ice cream cones, and cookie dough. Now Oreo can compete more broadly in the industry because of its

product line extension

Nike is known for its lean supply chain in which Nike managers aim to reduce as much waste as possible. In Nike's lean supply chain __________

products are built before demand occurs

For convenience, pricing objectives can be divided into three categories which are:

profit oriented, sales oriented, and status quo.

The _______ is the combination of advertising, personal selling, sales promotion, social media, and public relations and is used to reach the target market and fulfill an organization's overall promotion goals.

promotional mix

L&L, a beverage company, has launched a new energy drink. It sponsors a marathon in the city as part of its promotional strategy. It also issues a press release about the sponsorship and persuades media reporters of different newspapers to print it. L&L is generating _______

publicity

John is a drug rep for the Gladco pharmaceutical company, a leader in prescription allergy medications. John personally visits physicians to explain the benefits of new allergy products. By using a strategy of personal selling, John is using a _______ promotional strategy.

push

Eight million Ben & Jerry's pints carry a "Support Farm Aid" message as part of the grassroots efforts of Farm Aid, a nonprofit organization whose mission is to keep family farmers on their land. Ben & Jerry's partners with local dairies in Vermont. This is an example of __________

relationship integration

A company well known for its easy-to-cook breakfast cereals was facing stiff competition from the many players in the market. The company changed its campaign to focus on dietary needs rather than just convenience, thus targeting a segment of consumers looking for healthy diet. This is an example of a __________

repositioned product

Gilberto wears a Rolex watch because of its style, image, features, and status symbol. Gilberto would not buy a different brand as a substitute and shops carefully for a Rolex when he wants to purchase another watch. This scenario is an example of a(n)

specialty product

Using a price skimming strategy, Apple stakes out a price and then maintains and defends that price by significantly increasing the value of its products in future iterations. Apple prioritizes profits over market share, making people starve for the new upgraded product. Apple's price skimming strategy is most often used for a new product when _______

the product is perceived by the target market as having unique advantages

To consumers, value is based upon:

their perceived satisfaction

Captive brands allow the retailer to ask a price similar or equal to manufacturers' brands, and the retailer typically displays captive brands alongside mainstream products. true or false?

true

Five types of internal integration are sought by firms interested in providing top-level service to customers: relationship integration, measurement integration, technology and planning integration, material and service supplier integration, and customer integration. true or false?

true

During the off season, the Rues Hotel offers a 25% discount on its rooms to attract guests. The Rues Hotel is demonstrating the ________

use of price as a promotional tool

Which statement is a reason why many retailers are creating and promoting their own captive brands?

A captive brand strategy allows retailers to ask a price similar or equal to manufacturers' brands.

West Texas Traders provides expertise for a range of products within a category. The company markets and facilitates the sale of many different manufacturers' products to a grocery chain. However, West Texas Traders never takes ownership of any food products, so it would be considered a(n) __________

agent or broker

Which of the following is NOT a component of the AIDA model?

demand

Oriental Foods Inc. is a multinational food and beverage company. Its product labels focus oh being foods that are easy to make in 5 minutes or less for a complete meal that's great for lunch or a snack. In this case, Oriental Foods is using _______

descriptive labeling