Marketing Final: Quizzes and Homework
The Privacy Promise of the DMA members involves all of the following:
-companies must honor opt out requests -MA members must follow privacy rules -companies must agree to notify customers when any personal information is rented, sold or exchanged with others -members must remove names of consumers who do not wish to be contacted
What is an example of horizontal channel conflict?
A Ford dealer complaining that another Ford dealer is advertising in their territory
Which of the following statements is true regarding costs?
Average cost tends to decrease with accumulated production experience
How do brokers and agents differ from merchant wholesalers?
Brokers and agents do not take title and perform a limited number of specialized functions
What is true regarding the functions channel members perform?
Channel members create greater efficiencies than manufacturers could achieve on their own
In recent decades price factors have gained increasing importance
False
Price is the only element in the marketing mix that represents costs
False
Which of the following statements regarding a just-in-time logistics system is correct?
JIT logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations
Despite its potential strengths, public relations are occasionally described as a marketing stepchild for all the reasons except:
PR practitioners consider their job as simply communication
The third largest trading bloc, after NAFTA and the EU, is:
UNASUR
Which of the following statements regarding customer intimacy strategy is correct?
a customer intimacy strategy requires quickly responding to customer needs
What are the four elements of a compensation plan for salespeople?
a fixed amount, a variable amount, expenses, and salary
What does not portray the success of global expansion of major retailers?
adapting the operations that work well in the home country create success abroad
What is correct regarding advertising in the new marketing communications model?
advertisers are shifting towards digital media
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is considered
advertising
Which of the following best reflects the role of retailing in the distribution channel?
all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use
Market skimming prices are preferred in all of the following conditions except:
an initial low price is set by the companies
When a company provides superior value by leading its industry in price and convenience, it is pursuing what?
an operational excellence strategy
Which of the following statements does not accurately reflect PR's role in marketing?
as the usage of earned and shared digital content grows rapidly, PR is playing a smaller role in marketing content management
What is the first thing marketers must do when using value-based pricing?
assess customer needs and value perceptions
What is the stage in competitor analysis in which marketing management tries to find out competitors' objectives?
assessing competitors
In the AIDA model __________
attention leads to interest, which hopefully leads to desire and then action
What is the correct order of the six buyer-readiness stages?
awareness, knowledge, liking, preference, conviction, and purchase
Many company websites are now designed to do more than just sell product. These websites attempt to build closer customer relationships and generate engagement with and between the brand and its customers
brand community website
Product placements are a form of:
branded entertainment
Which of the following is a cost-based pricing approach?
break-even pricing
A sales contest is considered a part of:
business promotions
This involves cultivating opinion leaders and getting them to spread information about a product or a service to others in their communities
buzz marketing
Cheese makers in Wisconsin sell leftover brine to use for melting icy roads. Which product mix pricing strategy does this represent?
by-product pricing
Companies that make products that must be used along with a main product are using:
captive-product pricing
What is correct regarding market channel design?
channel alternatives should be evaluated against economic, control, and adaptability criteria
Channel members' performance should be evaluated against standards which include all of the following except:
channel management
Using a push strategy, a firm directs its promotional efforts toward:
channel members
Rather than standardizing their advertising globally, some companies follow a strategy of ____________, fully adapting their advertising messages to local markets
communication adaptation
Why should companies use mobile marketing responsibly?
companies risk angering already ad-weary consumers
In this method, companies set their promotion budgets to match competitor's outlays
competitive-parity method
Which orientation could result in a firm simply matching or extending industry practices rather than seeking new innovative ways to create more customer value?
competitor-centered
A preseason promotion offering a rebate is an example of:
consumer promotion
The franchise organization is the most common type of ___________
contractual vertical marketing system
Historically, _______ have lacked leadership and power, often resulting in damaging conflict and poor performance
conventional distribution channels
Channel members should be selected on the basis of all of the following attributes
cooperativeness, years in business, growth and profit record, reputation, NOT competitiveness
Shows the number of units the market will buy in a given time period at different prices
demand curve
A strategy in which the company concentrates on creating a product line and marketing program so that it comes across as the class leader in the industry is referred to as:
differentiation
Which form of marketing involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships?
direct and digital marketing
__________ involves engaging directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships
direct and digital marketing
A _______ has no intermediary levels
direct marketing channel
What is direct mail well suited for?
direct, one-to-one communications
Infomercials are a form of marketing considered a part of:
direct-response television marketing
Due to changes in technology, a recent trend is for product or service producers to cut out intermediaries and go directly to final buyers. This is one form of
disintermediation
What are the two main forms of online advertising?
display ads and search-related ads
One primary PR responsibility is to create content that:
draws consumers to a brand
Buyers have increased their use of direct and digital marketing because they are:
easy, convenient, and private
In the communication process, putting thought into symbolic form is called:
encoding
Market penetration prices are preferred in all of the following conditions except:
enough buyers must want the product at a higher price
Sales reports, call reports, and expense reports are all used in the process of
evaluating salespeople
What is meant by the term "Internet of Things"
everyone and everything may soon be connected digitally
LL Bean has turned its flagship store into a full-fledged outdoor adventure center, which is an example of:
experiential retailing
Market leaders can expand total market demand by:
finding new users of the product, promoting new uses for the product, and encouraging more usage of its products
What is true concerning new product pricing strategies?
for a market-skimming strategy to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more
Which of the following statements regarding green retailing is correct?
green retailing initiatives extend to helping consumers be more environmentally responsible
Retailers such as Macy's and JC Penney charge higher prices on an everyday basis, but run frequent promotions to lower prices temporarily on selected items. This is an example of:
high-low pricing
What is the first thing a company does when analyzing competitors?
identify the company's competitors
Developing effective marketing communications starts with:
identifying the target audience
What is correct regarding advertising?
in addition to businesses, advertising is used by many types of organizations
Which type of advertising is heavily used for new product category introductions?
informative
Highlighting benefits and qualities is a part of which type of advertising?
informative advertising
The concept of ___________ recognizes that providing better customer service and trimming distribution costs require teamwork
integrated logistics management
As marketers adopt richer but more fragmented media and promotion mixes to reach their diverse markets, they risk creating a communications hodgepodge for consumers; to prevent this, companies have adopted the concept of:
integrated marketing communications
Disadvantages of direct marketing to sellers include:
interaction with limited number of customers
Social media is ideal for starting and participating in customer conversations and listening to customer feedback, because social media is:
interactive
What is the toughest public policy issue now confronting the direct marketing industry?
invasion of privacy
If demand is elastic, what will sellers consider?
lowering their price
In competitive positioning, ____________ are runner-up firms that want to hold their share without rocking the boat
market followers
Defining competitors as "companies that are trying to satisfy the same customer need or build relationships with the same customer group" is using a:
market point of view
Major factors for changing the face of today's marketing communications include all of the following except:
marketers are going for mass marketing
The largest single group of wholesalers
merchant wholesalers
Advantages of mobile marketing include all of the following except:
mobile marketing may risk irritating consumers
What is correct regarding retailer pricing decisions?
most retailers seek either high markups on lower volume or low markups on higher volume
What is correct about setting an advertising budget?
new products typically need relatively large advertising budgets to build awareness and gain consumer trial
The goal of competition-based pricing is:
not to match or beat competitor's price
Retailing today requires _______, which means creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping
omni-channel retailing
The creation of a seamless cross-channel buying experience
omni-channel retailing
Which of the following statements about major retail trends is true?
online buying is growing at a much brisker pace than retail buying as a whole
The hottest growth area for Home Depot in the U.S. has been attributed to:
online sales
Retailers must decide on which three major product variables?
product assortment, services mix, and store atmosphere
The pricing method in which sellers combine several products and offer a reduced price is known as:
product bundle pricing
Pricing method used to determine the price steps between different models
product line pricing
A company offers a discount to a grocer in exchange for in-store advertising and additional sales support. This is an example of:
promotional allowances
Identifies qualified potential customers and is the first step in the personal selling process
prospecting
Under ________, the market consists of many buyers and seller trading in a uniform commodity
pure competition
Paying retailers to get shelf space is an example of:
push money
Techniques that can be used by sellers for avoiding customers' perception of price gouging includes all of the following except:
rationing products to customers
Digital marketing can link brands to important moments in customer's lives. This aspect of digital marketing is called:
real-time marketing
This type of advertising is more suitable for mature products
reminder
Firms producing consumer electronics, furniture, and home appliance brands typically distribute their products:
selectively
What is predatory pricing?
selling below cost with the intention of punishing a competitor
What are the four broad characteristics used to classify retail stores?
service, product lines, price, and organization
marketing managers must first do what when developing an advertising program?
set advertising objectives
What is target costing?
setting a price and then setting costs that will ensure that the price is met
Which execution style shows one or more "typical" people using the product in a normal setting?
slice of life
Which of the following statements regarding mobile marketing is correct?
smartphones can be very useful in shopping situations
One of the challenges of social media marketing is that:
social media is largely user controlled
Market nichers who focus on companies such as Walmart or GM are referred to as:
specific customer nicher
These core PR strengths play well into the use of online, mobile, and social media
storytelling and engagement
Helping salespeople to "work smart" by doing the right things in the right way is the goal of ________, while getting them to work hard is the goal of _____________
supervision; motivation
This calls for socially and environmentally responsible actions that meet the present needs of consumers and needs of future generations
sustainable marketing concept
What is true regarding salespeople?
the best salespeople are the ones who work closely with customers for mutual gain
After the company has defined its channel objectives, it should identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and:
the responsibilities of channel members
Based on consumerism, the traditional sellers' rights include all of the following except:
the right to be protected against questionable products and marketing practices
Many amusement parks charge a daily ticket or season pass charge plus additional fees for food and other in-park features. This is called:
two-part pricing
The company, suppliers, distributors, and customers who "partner" with one another to improve the performance of the entire system make up the:
value delivery network
Luxury automobile manufacturers typically add quality, services, and other features to differentiate their offers and thus support their higher price. This is an example of:
value-added pricing
What is not a characteristic of distribution channels?
channel systems stand still, restricting formation of new intermediary systems
The aim of transaction-oriented marketing is to help salespeople:
close a specific sale
Regardless of budget size, to succeed advertising must engage consumers and:
communicate well
Some sellers require that dealers not handle the competitor's products. This strategy is called:
exclusive dealing
The 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
full-line forcing
Tiffany and Neiman Marcus are classified as:
full-service retailers
What is an objective for business promotions?
generating business leads
What is an objective for trade promotions?
getting retailers to carry new items and more inventory
The first task for a communicator in preparing marketing communications is to:
identify the target audience
In complex selling situations, personal selling can be very effective because:
it is interpersonal
From the producer's point of view, a greater number of levels of marketing channel means
less control and greater channel complexity
What actions can a company take in order to bring marketing and sales functions together?
let brand managers tag along to sales calls
Companies today are placing greater emphasis on logistics for several reasons, except
limited product variety has created problems for logistics management
Techniques that can be used by sellers for avoiding customers' perception of price gouging include all of the following except
low-price fighter items
A discount store sells standard merchandise at lower prices. To do this, discount stores accept these two conditions:
lower margins and selling higher volume
Most companies manage their international activities by first:
organizing an export department
Offering lower prices than competitors is what competitive strategy?
overall cost leadership
Companies now use this to help recruit, train, organize, motivate, manage, and evaluate channel partners
partner relationship management and supply chain management software
Which of the following statements about PR is correct?
the lines between advertising and PR are becoming more and more blurred
The reasons for considering PR, which has greater impact at a much lower cost than advertising, include
the possibility of stories to be picked up by different media
How is price determined using cost-plus pricing?
the price is set by adding a standard mark-up cost to the cost of the product
Wholesalers add customer value through:
the products and services they offer
What is benchmarking used for?
to assess competitor's strengths and weaknesses
The most preferred orientation for companies is:
to be market oriented
What is the goal of integrated marketing communications?
to deliver clear, consistent and compelling company and brand messages
In terms of location, most stores today cluster together. What is the primary reason for this?
to increase their customer pulling power
Advertising objectives can be classified based on their primary purpose. What are the three purposes?
to inform, persuade, or remind
What is the intent of advertainment?
to make ads and brand content into something that people actually want to watch
What is the goal of a blue-ocean strategy?
to make competition irrelevant by finding uncontested market spaces
What is the digital version of word-of-mouth marketing?
viral marketing
Which wholesaler channel function helps reduce inventory holding costs?
warehousing
What are the four major functions of logistics?
warehousing, inventory management, transportation, and logistics information management
When does persuasive advertising become comparative advertising?
when a company directly or indirectly compares its brand to others
When would a competitor most likely react to a firm's price change?
when the number of firms involved is small
What is a concern when using optional-product pricing?
which products to include in the base price and which to offer as options
What is true regarding wholesaling?
wholesalers must make decisions regarding their marketing mix
One major objective of a market-penetration pricing strategy is to:
win a large market share
One form of influence that carries great weight, especially for products that are expensive, risky, or highly visible is:
word of mouth
Annual reports, brochures, articles, and company newsletters all represent which type of PR tool?
written materials
What are the forms of digital direct marketing?
online marketing, social media marketing, and mobile marketing
What tools can be used as both consumer and trade promotions?
contests, premiums, displays
In ___________, the company makes agreements with manufacturers in the foreign market to produce its product or provide its service
contract manufacturing
Logos, stationary, brochures, signs, business cards, buildings and uniforms are all types of:
corporate identity materials
In selecting a media vehicle, media planners need to determine the cost of the vehicle's reach. To measure this, they use a method known as:
cost per 1,000
A tool considered useful for assessing competitor strengths and weaknesses is:
customer value analysis
This is used to determine the benefits that target customers value and how customers rate the relative value of various competitors' offers
customer value analysis
What uses buyers' perceptions of value as the key to pricing?
customer value-based pricing
Which of the following correctly identifies the three major pricing strategies used by marketers?
customer value-based pricing, cost-based pricing, and competition-based pricing
Which factor sets the ceiling on setting a product's price?
customer's value perceptions
The concept of salesperson-owned loyalty means that:
customers become loyal to salespeople as well as the companies they represent
Which of the following statements about price is correct?
customers have put increasing pricing pressures on many companies
Which of the following statements is true regarding initiating price cuts?
cutting prices in an industry with excess capacity may lead to price wars
When retailers set an artificially high "regular price" and then advertise a "sale price" which is actually close to their everyday price
deceptive pricing
What is the first decision made in sales force management?
designing sales force strategy and structure
A company has set a low price on a new product it introduced. They want to maximize their market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use?
market-penetration pricing
One drawback to viral marketing is that:
marketers cannot control where users pass along the message
Why do producers use marketing channels and channel intermediaries?
marketing channel members are able to transform the assortments of products made by producers into the assortments wanted by consumers
One key function of channel members is __________, which involves shaping offers to meet the buyer's needs, including activities such as manufacturing, grading, assembling, and packaging
matching
These have shifted the balance of power between retailers and producers
megaretailers
At certain stages of the buying process, which element of the promotional mix is most effective in building up buyers' preferences, convictions, and actions?
personal selling
To which category of the marketing communication mix do sales presentations, trade shows, and incentive programs belong?
personal selling
Which promotional tool includes presentations, trade shows, and incentive programs?
personal selling
Critics have charged that some companies use ________, causing their products to become unfashionable before they actually should need replacement
planned obsolescence
Huge unenclosed shopping centers consisting of a long strip of retail stores including freestanding anchor stores
power centers
The practice of selling products below cost to harm competitors
predatory pricing
The amount of money charged for a product is its:
price
Federal legislation on __________ states that sellers must set prices without talking to competitors
price-fixing
Key functions performed by marketing channels does not include
pricing
A company has a ______________ orientation when it is not customer-centered and is also not competitor-centered
product
The first step in the personal selling process is:
prospecting
What is not a step in an effective sales management process?
prospecting
Some sellers use 00-cent endings on regular priced items and 99-cent endings on discount merchandise. This is an example of pricing referred to as:
psychological pricing
Activities designed to engage and build good relations with the company's various publics
public relations
Specific promotion tools including press releases, sponsorships, events, and web pages are used in:
public relations
In which type of market does no buyer or seller have much impact on setting the going market price?
pure competition
What type of advertising is important for mature, established brands?
reminder
This promotional mix tool consists of short-term incentives to encourage the purchase or sale of a product or service
sales promotion
Products with low immediate appeal that may benefit consumers in the long run
salutary
Retailers need to differentiate and position their store and make decisions regarding their retail marketing mix. Before making those decisions, retailers must first:
segment and define their target market
In ________ pricing, the company sells a product or service at two or more prices, even though the difference in prices is not based on differences in costs
segmented
Which of the following statements regarding segmented pricing is correct?
segmented pricing practices can cause consumer resentment
Which one of the following statements is not true regarding social selling?
social selling has changed the fundamentals of selling
What is the key idea in a market nicher strategy?
specialization
Which type of retailer carries narrow product lines with deep assortments within those lines?
specialty stores
What reverses the usual process of first designing a new product, determining its cost, and then asking, "Can we sell it for that?"
target costing
Which of the following statements regarding initiating price increases is correct?
the company shoulder consider ways to meet higher costs or demand without raising prices
What does not reflect the role of salespersons within a company?
the concept of salesperson-owned loyalty describes the loyalty that salespersons have toward the company
What is true regarding the changing communications landscape?
the dominance of TV, magazines, newspapers and other traditional mass media is declining
What is true regarding marketing logistics?
the goal of marketing logistics should be to provide a targeted level of customer service at the least cost
