Marketing Final
What are the four elements of a compensation plan for salespeople?
A fixed amount, a variable amount, expenses, and fringe benefits
Through _____ a company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product.
Acquisition
What are the two ways a firm can obtain new products?
Acquisitions and new product development
McDonald's operates the same basic fast-food look, layout, and operating model in its restaurants around the world but ________ its menu and design to local tastes.
Adapts
What do marketers need to adjust when using an adaptive global marketing strategy?
Adjust the marketing strategy and mix to each target market
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent?
Administered VMS
What are the five promotion mix tools used by marketers to communicate customer value?
Advertising, public relations, personal selling, sales promotion, and direct and digital marketing
What is the first step in marketing channel design?
Analyzing consumer needs
What are the four steps to designing marketing channels in their correct order?
Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives.
Producers vary in their ability to _________.
Attract qualified marketing intermediaries
Which of the following statements regarding the marketing of international products and services is correct?
Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets
_________ is a cost oriented pricing approach
Breakeven pricing
________ promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople.
Business
Printer companies often charge a fairly low price for their ink jet printers (relative to costs) and a high price for replacement cartridges. These companies are using a strategy of ________ pricing.
Captive product
A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer.
Channel level
Which of the following is NOT a product life cycle (PLC) stage?
Commercialization
________ is a global communication strategy of fully adapting advertising messages to local markets.
Communication adaptation
Which of the following statements is correct regarding the use of advertising as a promotional tool?
Consumers tend to view advertised products as more legitimate
A(n) _____ is made up of one or more independent producers, wholesalers, retailers, and consumers.
Conventional distribution channel
Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________.
Corporate VMS
What is omni-channel retailing?
Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas.
Crowdsourcing
The price ceiling, the maximum price a company can charge, is set by ________.
Customer perceptions of the product's value
________ refers to setting price based on buyers' perception of value rather than on the seller's cost.
Customer value based pricing
What are the three major pricing strategies used by marketers?
Customer value-based pricing, cost-based pricing, and competition-based pricing
After segmenting and defining their target markets, what should retailers do next?
Decide how they will differentiate and position themselves in the market
Standardization decreases product ________, __________, and ________ costs.
Design, manufacturing, marketing
What is the first decision made in sales force management?
Designing sales force strategy and structure.
Which of the following lists the six major sales force management decision steps in their correct order?
Designing sales force strategy and structure, recruiting and selecting salespeople, training salespeople, compensating salespeople, supervising salespeople, and evaluating salespeople
Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations function?
Development
What is the overall goal when retailers choose their product assortment?
Differentiate the retailer while matching target shoppers' expectations.
Which promotional tool engages directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships?
Direct and digital marketing
Which market entry strategy has the greatest amount of commitment, risk, control, and profit potential?
Direct investment
Which promotional tool is best suited to deliver a personalized and immediate message to a specific customer or customer community?
Direct marketing
In a(n) __________economy, fast growth in manufacturing results in rapid overall economic growth.
Emerging
When deciding on a global marketing organization, what do most companies do first?
Establish an export department
What is the final step in the seven-step personal selling process?
Follow-up
What is the first step in the new product development process?
Generating new product ideas
Many companies get involved in several international markets and ventures. They can be __________, with country managers who are responsible for salespeople, sales branches, distributors, and licensees in their respective countries.
Geographical organization
Which of the following are the three ways an international division's operating units can be organized?
Geographical organizations, world product groups, or international subsidiaries
An objective of trade promotion is
Getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space
What is a potentially effective action a company could take in response to a competitor's price cut?
Increase both price and quality
Twenty-Four7, a cosmetic firm located in the United States, markets its products in Asian and European countries through independent distributors. In this case, Twenty-Four7 has entered international markets through ________.
Indirect exporting
What are the two economic factors that reflect the country's attractiveness as a market?
Industrial structure and income distribution
Which advertising objective is used heavily when introducing a new product category?
Informative
Full-line forcing is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. Which of the following statements is true regarding full-line forcing?
It may or may not be legal
Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using?
Location based pricing
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
Market penetration pricing
Most products are at which stage of their product lifecycle?
Maturity
Which stage of the product lifecycle normally lasts longer than the previous stages and poses strong challenges to marketing management?
Maturity
Most companies today see their intermediaries as first-line customers and focus on ________ to forge long-term relationships with channel members.
Partner-relationship management
_______ is(are) demographic characteristic indicators of market potential.
Population size and growth
________ is when a company adds the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price.
Price escalation
How might price play an important role in helping to accomplish company objectives?
Pricing can create excitement for a brand
GE Healthcare employs different sales forces for diagnostic imaging, life sciences, and integrated IT products and services. GE Healthcare has adopted a(n) ______ sales force structure.
Product
________ involves changing the products to meet local requirements, conditions, or wants.
Product adaptation
The retail marketing mix consists of
Product and service assortment, retail prices, promotion, and location
Retailers must decide on which three major product variables?
Product assortment, services mix, store atmosphere
What are the five product mix pricing situations?
Product line pricing, optional-product pricing, captive-product pricing, by-product pricing, and product bundle pricing
Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10). This is an example of _______ pricing.
Product-bundle
What is the first step in the personal selling process?
Prospecting and qualifying
The public relations function of _______ is used to build and maintain national or local community relationships.
Public affairs
________ is used by companies to build good relations with consumers, investors, the media, and their communities.
Public relations
________ advertising is utilized most often by mature, well-known brands.
Reminder
The trend of ________ has resulted in different types of retailers now selling the same products at the same prices to the same consumers.
Retail convergence
Which of the following statements about retailer marketing decisions is correct?
Retailers face three major marketing decisions: segmentation and targeting, store differentiation and positioning, and the retail marketing mix.
_______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers.
Reverse logistics
During the introductory stage of the product lifecycle, __________________.
Sales are slow and profits nonexistent
What are the four important decisions made when developing an advertising program? List them in order.
Setting advertising objectives, setting the advertising budget, developing advertising strategy, and evaluating advertising effectiveness
In a(n) ________ economy, the vast majority of people engage in simple agriculture.
Subsistence
Geared2Beer, a craft beer brand, identifies a market segment that is willing to pay premium prices for its craft beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The company's pricing approach is referred to as ________.
Target costing
When setting channel objectives, companies should state the objectives in terms of ______.
Targeted levels of customer service
What are the four sales force structures a company can use?
Territorial, product, customer, and complex
Which of the following statements is true regarding the global marketing environment today?
The World Trade Organization (WTO) helps promote trade between nations.
What are the four characteristics used to classify retailers?
The amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized
Which of the following statements regarding the changing communications landscape is correct?
The dominance of television, magazines, newspapers and other traditional mass media is declining.
Which of the following statements regarding socially responsible product decisions in correct?
The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition
What occurs during the presentation step in the personal selling process?
The salesperson tells the buyer a value story
Internal factors that affect pricing include ________.
The company's overall marketing strategy, objectives, marketing mix, and other organizational considerations.
Closing a sale with a particular customer is a short-term ________ orientation, but the selling process must also take a ________ orientation and look at the long term.
Transactional; relationship
A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system.
Value delivery network
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing?
Value-added pricing
A ________ consists of producers, wholesalers, and retailers acting as a unified system.
Vertical marketing system
What are the four major functions of marketing logistics?
Warehousing, inventory management, transportation, and logistics information management
One major objective associated with a market-penetration pricing strategy is to ________.
Win a large market share
Countries can set ________, which is a limit on the amount of foreign imports that they will accept in certain product categories.
a quota
In the promotion mix, ________ refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
advertising
At which step in the personal selling process does a salesperson meet the customer for the first time?
approach
When assigning functions to channel members, it is important for producers to ________.
assign functions to the channel members that can add the most value for the cost
Venezuela produces oil in surplus, whereas Guyana produces rice in surplus and El Salvador produces coffee in surplus. These nations have little hard currency to pay for purchases from other countries and frequently exchange involves a(n) ________.
barter
The lines between advertising and public relations are becoming more ______.
blurred
Integrated marketing communications must deliver company and brand messages that are ________.
clear, consistent, and compelling
After ideas are screened, the next stage of the new product development process is _____.
concept development and testing
Once management has decided on its product concept and marketing strategy, it can evaluate the business attractiveness of the proposal which involves ___________
conducting a business analysis
In the current economy, consumers have become more _____ oriented.
deal
Macy's carries several product lineslong dash—typically clothing, home furnishings, and household goodslong dash—with each line operating as a separate department managed by specialist buyers or merchandisers. Macy's is best described as a(n) ________.
department store
Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations.
dynamic pricing
Channel members are dependent on _________ for the overall success of the channel.
each other
Innovation can be very ___________ and very ___________
expensive, risky
What is the simplest way to enter a foreign market?
exporting
Online buying is growing at a much _________ pace than retail buying as a whole
faster
By practicing ______ retailing, today's retailers are increasingly adopting environmentally sustainable practices.
green
After the presentation and demonstration step in the sales process, a salesperson should next be prepared to _______.
handle objections
Using marketing channel intermediaries means producers give up some control over ______ and ________ they sell their products.
how, to whom
The Learning Institute recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Learning Institute managers will most likely use ________ next to arrive at a realistic number of ideas to adopt.
idea screening
Marketing logistics involve _________, ________, and _________.
inbound logistics, outbound logistics, reverse logistics.
Coordinating marketing and sales can be improved by
increasing communication between the two groups.
________ economies are major exporters of manufactured goods, services, and investment funds.
industrial
Producers of convenience products typically use ______ distribution.
intensive
When designing marketing channels, companies must determine the number of channel members to use at each level. The three strategies that are available to do this are ________ distribution.
intensive, selective, and exclusive
In complex selling situations, personal selling can be more effective than advertising because it is ______________.
interpersonal
Personal selling can be very effective in complex selling situations because it involves ________ interactions and engagement between salespeople and individual customers.
interpersonal
University Boutiques promotes its brand in new international markets by providing rights to local boutiques to use its patented designs and brand name. In this case, University Boutiques' market-entering strategy is referred to as ________.
licensing
When a company sets a high price as the initial price of a new product, it is pursuing a ________ new product pricing strategy.
market-skimming
Wholesalers must make decisions regarding their __________.
marketing mix
___________ are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling.
merchant wholesalers
The three major groups of wholesalers are ________.
merchant wholesalers, brokers and agents, and manufacturers' and retailers' branches and offices
______ and ______ products are considered new
modified and improved
An appropriate strategy during the maturity stage of the product lifecycle would involve....
modifying the market, product offering, and marketing mix
The best salespeople are the ones who work closely with customers for __________.
mutual gain
Dynamic pricing is when companies continually adjust prices to meet the characteristics and needs of individual customers and situations. Where is this method especially prevalent today?
online buying
A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing.
optional product
In developing advertising strategies, marketers must make decisions regarding ___________________.
organizing the advertising function; adaptation to international markets
Which advertising objective is best suited to building selective demand?
persuasive
It's time for the Super Bowl, and the end-of-the-aisle displays at the supermarket feature chips, dips, and soft drinks. What type of sales promotion tool is this?
point of purchase
Public relations includes
press releases, sponsorships, events, and Web pages.
The government may __________.
prevent companies from adding products through acquisitions if the effect threatens to decrease competition
Cutting prices in an industry loaded with excess capacity might lead to ______________.
price wars
Just-in-time logistics systems allow _______ and _______ to carry small inventories to last for only a few days of operations.
producers, retailers
To be more socially responsible, some companies are appointing _____________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
product stewards
New media formats have allowed marketers to
reach smaller communities of consumers in more engaging ways.
Promotional tools offered to consumers include ________.
rebates, coupons, price packs, and samples
Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called ___________.
retail convergence
________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use.
retailing
________ is a short-term incentive to encourage the purchase or sale of a product or service.
sales promotion
When Dr. Lawncare developed his revolutionary new solar powered lawnmower, he knew that during the introductory stage of the product lifecycle _______________
sales would be slow and profits non-existent
Many customers are unable to distinguish the ________ from the company.
salesperson
Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which price adjustment strategy are these schools using?
segmented pricing
_______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale.
shopper marketing
The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called _______.
showrooming
Which type of retailer carries a narrow product line with deep assortments within those lines?
specialty stores
There are two extremes for global marketing strategies. At one extreme is ________ global marketing, and at the other is ________ global marketing.
standardized; adaptive
Which channel partners in a company's supply chain are upstream from a manufacturer or producer?
suppliers
Companies now use partner relationship management and _________ software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners.
supply chain management
Justin, Inc., a U.S.-based watch manufacturer, sells its products in China, Russia, France, and India. To manage sales, Justin appoints a number of sales representatives to each location. Justin has adopted a ________ sales force structure.
territorial
When initiating price increases,
the company should first consider ways to meet higher costs or demand without raising prices.
One retail trend resulting from economic conditions is ________.
tighter consumer spending
Advertising appeals should have three characteristics. These characteristics are:
to be meaningful, to be believable, and to be distinctive
_________ is an external source of new product ideas for a company?
trade magazines
To create successful new products, a company must _____________
understand its consumers, markets, and competitors, and develop products that deliver superior value
To create successful new products, a company must ________.
understand its consumers, markets, and competitors and develop products that deliver superior value
