Marketing Unit 2

Business goods

goods purchased by an organization for use in its operation

Parity

having equality or similarity

Endorsements

involves using a celebrity or public figure to represent and promote a company and that company's product

Two common pricing objectives involve increasing profits and improving _____________________

market share

Product exclusivity

only one product in a product category is granted sponsorship

Manufacturer brands

owned by the producer of the product

Focus Group

panel of consumers who discuss opinions about a topic under the guidance of a moderator

Products and entitlements are two examples of

premium signage

Prestige Pricing

pricing based on consumer perception

Target Pricing

pricing goods according to what the consumer is willing to pay

Commercialization

process that involves producing and marketing a new product

A _________________ is a group of closely related products that are sold by a company

product line

Sponsorship

promotional vehicles that financially support sports events

Price lining

selling all goods in a product line at specific price points

Promotional packages for _____________ may include licensing rights, stadium promotions, product sampling, signage, product sales, billboards, hospitality opportunities, receptions with the athletes, free tickets, and on-site merchandising opportunities

sponsors

Product presentation

step in the selling process that should be developed around the customer's needs and wants

Publicity

the free mention of a product or company in the media

Brand equity

the value a brand has beyond its actual functional benefits

Point of difference

unique product characteristic or benefit that sets the product apart from a competitor's product

Brand name

word or words, letters, or numbers representing a brand

A __________ is a name, symbol, or word or words, or design that identifies an organization and its products

Brand

Develop, link, and help are the three steps in establishing ____________

Brand equity

Which of the following is a way to determine a promotional budget?

Percentage of sales, competitive parity, objective-and-task method

____________________ is a branding strategy that combines one or more brands to increase customer loyalty and sales for each product.

Co branding

These forms of sales promotion offer some type of price reduction or free merchandise

Coupons and rebates

Companies who use a promotional mix use the same formula

False

Fads have a long life cycle

False

Gander Mountain and Cabela's are examples of generic brands

False

In sports marketing, companies give free publicity to sports figures by putting their images on cereal boxes or shirts

False

Many companies avoid using publicity in their promotional mix because it so costly.

False

Print and broadcast media offer many advantages over direct marketing and online advertising

False

Secondary research is original research, which is usually conducted for a specific market situation

False

Telephone sales is an example of indirect selling

False

The Sherman Anti-Trust Act encourages price fixing and predatory pricing.

False

Which of the following is the last of the steps in the selling process?

Follow-up

____________________ represent a general product category and do not carry a company or brand name

Generic brands

Which type of advertising is used to generate goodwill rather than used for direct sales?

Institutional advertising

___________________ is an agreement that gives a company the right to use another's brand name, patent, or other intellectual property for a royalty or fee

Licensing

When a brand becomes very popular, its value becomes a competitive advantage because most consumers equate the brand with quality

True

A company purchases banner ads when adding this type of advertising to its promotional mix

Online advertising

___________________ is the difference between the retail or wholesale price and the cost of an item

Markup

_____________________ is the third part of the product life cycle

Maturity

Which of the steps in selling involves learning about the products and the potential customers?

Pre-approach

Companies send these items out when they want news coverage for something they have done

Press release

____________________ is the values placed on the goods or services being exchanged

Price

________________ is illegal and involves competitors conspiring to set the same prices

Price fixing

____________________is/are part of management of the product life cycle

Product modification, market modification, and repositioning

Which of the following could be part of a promotional mix?

Promotion, advertising, and personal selling

Which of the following activities are associated with event marketing?

Sales, distribution, promotion

When a sponsor buys ______________, its name appears on the scoreboard, floorboards, rafters, or even on a rotating screen at a game

Signage

When doing market research, secondary research is conducted before primary research because secondary research may actually answer all or part of a research problem or question

True

Which of the following is a form of print media?

direct mail, outdoor advertising, magazines

________________ is the legal name of a company, such as Reebok

Trade name

A channel of distribution may be direct, indirect, or both

True

A focus group may be asked to evaluate a new product

True

A press kit consists of promotional materials that can be used by the media, such as fact sheets, background information, press releases, and videotapes.

True

Advertising rates usually depend on the circulation, or size, of the audience that will be exposed to the ad.

True

All of the major sports organizations, including the Olympics, NASCAR, PGA, NHL, MLB, NBA, WNBA, and NCAA use sponsorships to help finance their operations

True

Baseball cards for a popular player or special occasion may be produced in a limited edition rather than in very large quantities, which creates a demand higher than the supply and allows the producer to charge a larger amount of money

True

Before the sales process begins, a salesperson can prepare with prospecting and pre-approach strategies

True

Companies associate their products with well known sports organizations in order to reach new customers and strengthen their relationship with their existing customers

True

Customers familiar with an original product are likely to trust a new product with the same brand

True

Data mining is a process of collecting data from one or more existing databases and looking for and finding relationships among that data

True

Depending on the intended use of the product, the same product could be both a consumer good and a business good.

True

E-mail and the Internet are examples of direct marketing

True

For a business to be successful, it must know its customers

True

If a manufacturer sells directly to customers on its website and in its retail stores, plus sells wholesale to other retail stores, the manufacturer is using multiple channels of distribution

True

Licensed merchandise can bear the name, logo, or other characteristics of the licensor

True

Multi-product branding is used when the manufacturer uses one name for all its products

True

One of the ways companies get new ideas for products is by reading customer complaints and/or merchandise returns.

True

Place decisions involve how you get your product into the hands of your customers

True

Price helps determine a company's profit and loss

True

Product-line pricing involves setting different markup percentages for each product so that the average markup is achieved for the entire line of goods

True

Products need to have a point of difference to make them stand out in the marketplace

True

Qualitative research data is seldom useful to marketers because the data is drawn from inferences

True

Sales promotions are usually part of an advertisement or personal sales pitch

True

Sports organizations may use a set percentage, or portion, of last year's sales or the coming year's sales to decide on the amount of the promotional budget.

True

The government may restrict the use of certain words in brand names

True

The problem with using competitive parity for forming a promotional budget is that each company's objectives may not be the same

True

The purpose for sports promotion is to generate sales, attract a targeted audience, and help create a positive image

True

To increase its market share, a company may lower the price of its product to do so

True

Top sports endorsers come from all sports, but they have one thing in common-they all have successful careers and good public images

True

An _____________________contract may include a set number of public appearances by the sports figure at various events sponsored by the company

endorsement

License

fee paid to use logo

Trademark

a device that legally identifies registered brand ownership of a trade name

Press release

a newsworthy article that provides the basic information to answer questions such as who, what, where, when, and why

Product item

a specific model or size of a product

Public relations

activities that promote the image and communications a company has with its employees, customers, investors, and public

Institutional advertising

advertising with a goal of developing goodwill or a positive image

Promotional advertising

advertising with a goal of selling an item

Promotional mix

any combination of advertising, sales promotion, publicity, direct marketing, and personal selling having equality or similarity

Advertising

any paid promotion of an idea, good, or service by an identified sponsor

_________________ is a pricing strategy that involves selling several items as a package for a set price.

bundle pricing

In which step in a new product development are the financial aspects of making and marketing the product reviewed?

business analysis

Cost-plus pricing

calculating all costs and expenses and adding desired profit

intermediary brands

carries a name developed by the wholesaler, retailer, or catalog house

Repositioning

changing a product's image in relation to a competitor's image

Objective-and-task method

companies set these objectives for their promotional budgets and deciding what promotional activities are necessary to reach those objectives

Facility entitlements

company purchases promotional rights to an entire stadium

If you purchased a pair of Nike athletic shoes in a retail store, the shoes would be considered a _____________________ good

consumer