mkt 350 quiz

Direct selling, direct marketing, and vending machines are all examples of

.retailing

Stages for Establishing Prices

1. Development of pricing objectives 2. Assessment of target market's evaluation of price 3. Evaluation of competitors' prices 4. Selection of a basis for pricing 5. Selection of a pricing strategy 6. Determination of a specific price

One advantage of non price competition is that

A firm can build customer loyalty

Why is publicity viewed as being so much more important than advertising, sales promotion, or other forms of public relations

Credibility of the message

break-even point

Fixed costs / contribution per unit

Which of the following is most likely to stimulate customer loyalty

Frequent-user incentives

Todd is developing a print advertisement for KFC. He knows that the _____ is a critical component of the copy because_____

Headline; it is often the only part of the advertisement that is read.

Mostarda is an Italian-based mustard company. When marketers at Mostarda tried to determine demand for their product, they found that at 50 cents, consumers wanted 2,000 jars; at $1.00, they wanted 6,000 jars; and at $1.50, they wanted 4,000 jars. What can Mostarda conclude

Mostarda mustard is a prestige good

Chris Jarratt, account representative for Revel Advertising, tells Meek's that he is proposing to use 5 full-page, four- color ads in home- decorating magazines to achieve an increase in consumer and builder inquiries of 15 percent, This approach is an example of which of the following methods of determining advertising expenditure levels?

Objective-and-task

Michael is planning a promotional program for AirFam. AirFam is a supplier of new energy- saving engines used to produce air conditioners. His company needs to promote these engines to manufaturers of air conditioners, so he is most likely to use_____, because it provides immediate feedback. The disadvatage is that it is ______ than advertising to reach one customer

Personal selling; more costly

By promoting the fact that "orange juice is not just for breakfast anymore," the florida orange growers association attempted to stimulate

Primary Demand

If wilson sporting goods faces a standard demand curve the exists for most products, as it raises the price of tennis rackets, the.

Quantity demanded goes down

Newspaper ads for blue haven pools offer discounted prices during October and discounted cleaning supplies for hot tubs in March, are examples of which uses of Promo?

Reducing sales fluctuations

Latisha works for a promotional consultant who develops sweepstakes, games, coupons, and rebate plans for various marketers. Latisha is developing which of the following?

Sales Promotion Techniques

Which factor is least likely to affect pricing decisions?

Shifting stock values

Prashant is shopping for a new pair of athletic shoes. Since he is concerned about both the price and the quality aspects of a product, Prashant is most likely a ___ consumer.

Value-conscious

Taylor works for a company that buys snacks such as chips, cookies, and candy in bulk from manufacturers. Taylor's company then repackages them and sells them to vending companies who have vending machines at government institutions. Taylor most likely works for a(an) ___, while the vending machine company is a(an) _____.

Wholesaler; retailer

external reference price

a comparison price provided by others

If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this method is that

a drop in sales would cause a drop in the advertising budget

price elasticity of demand

a measure of the sensitivity of demand to changes in price

internal reference price

a price developed in the buyer's mind through experience with the product

A general-merchandise retailer offers WRONG X

a. products through the Internet and catalogs only. b. a single product line that is stocked in depth. c. few product lines with deep assortments of these lines. d. few choices of a large variety of product lines. e. a variety of product lines that are stocked in depth. wrong I put B

Mars Incorporated makes snickers candy bars. Mars will most likely focus its promotion efforts on.

advertising

Slow feedback, high- absolute- dollar outlay, and difficulty in measuring effects on sales are disadvantages of which promo mix ingredient?

advertising

The ___ stage of the personal selling process is when the salesperson asks the prospect to buy the product

closing

Ray- Bans plan of gathering information about the other brands sold in department stores, including their prices, would most likely be used in a ____ basis for pricing

competition

When deciding on its advertising allocation for the coming year, State Farm Insurance could choose to spend the same amount as Safe Auto, another auto insurance company, or it could allocate an amount that is 10% of last year's premiums. If State Farm uses the same amount as Safe Auto, this method of advertising appropriation is known as the ___ approach; if State Farm uses the amount based on last year's revenues, the method would be___:

competition-matching; percent-of-sales

If target were to base its advertising appropriation on the amount that walmart spends, it would be using the ____ approach

competitive matching

value conscious

concerned about price and quality of a product

.An arrangement in which a manufacturer pays a certain amount of retailer's media costs for advertising that manufactures product is

cooperative advertising

The Verbal portion of an ad, including headlines, body, and signature, is called the

copy

price and cost are very different when talking about members in the supply chain. With the addition of each intermediary, cost is added to a product, and that cost is passed along to consumers in terms of a higher price. Keystoning is the name for a common pricing practice among retailers. Retailers double the _________ of an item to assign a ________ to the item.

cost;price

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

Ray-ban has decided to promote the new sunglass line as an "affordable luxury" and plans significant promotional expenditures. With these objectives, which of the following should Ray - Ban use to price its product line

demand based pricing

Prestige sensitivity

drawn to products that signify prominence and status

The major levels of intensity at which a company can choose to distribute its products are ____ distribution.

exclusive, selective, and intensive

Disney decided to run its new commercials for all of its theme parks several times a day for three weeks and then not at all for two weeks. It will then run the commercials again for three more weeks. Disney is using a _____ schedule for its advertising

flighting

The maker of huggies diapers is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. This is advertising.

frequency

Low cost, unusual, novel marketing ideas that generate buzz and conversation are all characteristics of what out-of-the-box nontraditional marketing method

guerilla marketing

Television is a popular advertising medium among companies selling products and services that are consumed by mass markets because it:

has the ability to reach large audiences in a relatively cost-efficient manner

Jillian Michaels uses infomercials to demonstrate her fitness products and encourage customers to call and receive a free video with more info about her products. This promo effort is directed at

identifying products

The first stage in the development of any advertising campaign is.

identifying the advertising target audience

For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.

inverse

One of the main disadvantages of publicity is

lack of control

If Nokia decides to make changes in its marketing channels, the strategic significance is that channel decisions are

long-term commitments

Category killers compete primarily on the basis of

low prices and enormous product availability.

During a one minute television ad for Nike, the national weather service interupts to announce a flash flood warning for surrounding counties. This is an example of ____ in the communication process

noise

If State Farm decided that it wanted to increase its number of customers by 10% in the coming year, it would most likely use the ___ approach to advertising allocation:

objective-and-task

If Ray-ban selected the prices for its new sunglasses to be $60,$70, or $80, this would most likely be an example of using _____ pricing to enhance its distinctive positioning strategy.

odd-even

factor that affect pricing decisions (8)

organizational and marketing objectives pricing objectives costs other maketing mix variables channel member expectations customer interpretation and resonse competition legal and regulatory issues

Selective demand is demand for a

particular brand

While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is that

people often discontinue their positive behavior after the contest is over

Heather is concerned about the effectiveness of Meek's promotional messages, and is seeking an approach with immediate feedback. Heather is most likely to achieve this through

personal selling

Wheaties used to offer two free golf balls with the purchase of a twin pack of Wheaties cereal featuring Tiger Woods. This is an example of a:

premium

When marketers emphasize price as an issue and match or beat the prices of other companies, they are using

price competition

When marketers emphasize price as an issue and match or beat the prices of the other companies, they are using

price competition

A measure of sensitivity of demand in relation to changes in price is (x2)

price elasticity of demand

A measure of sensitivity of demand in relation to changes in price is

price elasticity of demand.

Given Ray - Ban's plan for positioning the new sunglass line, they should use a _____ strategy when introducing their new products

price skimming

Which of the following is not a public relations tool

product sample

Consumers receive the benefits of place utility when

products are available in locations where consumers want to buy them.

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

Advertising, personal selling, sales promotion, and public relations are called

promotion mix ingredients

Ben, a salesperson for DiVentures, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase diving equipment. This process is called

prospecting

During the duration of an advertising campaign, Verizon Wireless ran television ads at a steady rate throughout the week and intensified its message with newspaper ads in many major newspapers in the Sunday paper. Verizon wireless used a ____ media schedule.

pulsing

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ____ discount.

quantity

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

Since Victoria's Secret has decided to use nonprice competition, it distinguishes its brand through all but which of the following (x2)

rebates

Since North Face has decided to use nonprice competition, it distinguishes its brand through all but which of the following?

rebates.

Any organization that purchases products for the purpose of reselling them to ultimate consumers is a(n):​

retailer

The cost of ____ is usually substantially lower than the cost of _____

retaining existing customers; acquiring new customers

When McDonalds uses the monopoly game in which customers receive game peices with each visit and try to assemble a set of properties to win prizes, McD' is utilizing.

sales promotion

In the gillette advertisement that claims, " Gillette, the best a man can get," Gillette is the communication______

source

price-conscious

striving to pay low prices

The cost per thousand indicator shows

the cost to expose 1,000 people to a one- page magazine ad

Price is a key element in the marketing mix because it relates directly to

the generation of total revenue

At the breakeven point,

the money a company brings in from selling products equals the amount spent producing the products.

Price is

the value that is exchanged for products in a marketing transaction.

When a salesperson asks the customer to buy the product several times throughout the sales presentation in an effort to uncover hidden objections, it is called

trial closing