MKT300 quizlet

Which of the following is the best example of puffery?

"You have tried the rest, now try the best."

Kyle estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Kyle, the total cost of opening the new branch and remaining open for one year will be

$550,000.

The knowledge retailers gain from their store personnel, the Internet browsing and buying activities of customers, and the data they collect on customer shopping habits can be used in

CRM

Sellers using an EDLP pricing strategy often communicate their strategy through the creative use of a reference price.

False

When Sony released its PlayStation 4 game console, it charged a high price, attracting the most avid game players. This was a market penetration pricing strategy.

False

What is one of the drawbacks of using a price skimming strategy?

Firms must consider the high costs associated with producing a small volume of product.

In a retail supply chain, the ________ records the purchase information and electronically sends it to the corporate office.

POS terminal

Cost-based methods do not recognize the role that consumers' or competitors' prices play in the marketplace.

True

Assume the demand for electricity, a necessity with few substitutes, is −0.2. If the electric company raised its rates by 10 percent, we would expect

a 2 percent decrease in quantity demanded.

Advertising agencies often provide the IMC function of comparing their customer's target audience with the viewer, listener, or reader profile of the communication channel being considered. The agency is most likely trying to avoid noise problems associated with

a poor choice of medium.

Star Heating and Air Conditioning Company specializes in electric heat pumps. Francis keeps track of the price of natural gas, knowing that

an increase in the price of natural gas will increase demand for his electrical heating systems.

When her salespeople bring in five new customers, Denisha gives them a $1,000 payment. This is an example of a

bonus

A useful technique that enables managers to examine the relationships among cost, price, revenue, and profit over different levels of production and sales is called

break-even analysis.

Because PSAs are a special class of advertising,

broadcasters to devote a specific amount of free airtime to them.

When a firm is just starting out or entering a new market, it often

cannot choose from whom it buys or to whom it sells.

Getting a commitment from the customer to purchase your product is also known as

closing the sale

Which of the following are considered typical financial compensation for sales representatives?

commissions

Imagine that a management consulting firm wants to sell a bank a new system for finding checking account errors. The consulting firm's salesperson has learned about the customer during the qualification stage, and the salesperson should now

conduct additional research and develop plans for meeting with the customer.

Which of the following is a public relations tool?

donating a portion of profits to a charitable cause

Juan's family has owned and operated a small chain of conventional supermarkets for many years. Competition from a variety of other kinds of retailers has adversely affected the business. To address the new competitive reality, Juan wants to apply what he recently learned as a marketing major and he has recommended that his family's business should

emphasize fresh, locally sourced perishables.

If you are hired as a sales manager, you will be responsible for recruiting, selecting, training, motivating, and compensating sales staff as well as

evaluating the sales force.

Windsor Locks produces organic food products like stone-ground grits and wild rice. The company has limited production capacity and wants to carefully control where its products are sold. Windsor Locks will likely choose ________ distribution intensity.

exclusive

Even the best marketing communication can be wasted if the sender does not first

gain the attention of the consumer.

Kalani is the head of marketing for a nonprofit agency that supports the arts. She just received the go-ahead from her board of directors to conduct the agency's first-ever advertising campaign. Her first step will be to

identify the target audience.

Each generation of cell phones has provided greater clarity, range, security, and multifunctionality. If marketers of cell phones use these features as a basis for pricing, they would be using ________ pricing.

improvement value

In the past, ________ controlled supply chains

manufacturers

Retailers use ________ to communicate with or sell to consumers through wireless handheld devices.

mobile commerce

The Salvation Army runs a campaign over the Christmas holidays called the Mobile Bell Ringer. Volunteers send text messages to their friends' cell phones asking them to donate. Which type of marketing communication does this represent?

mobile marketing

In a vertical marketing system, if the system is ________, conflict is less likely to occur.

more formal

From the consumer's perspective the individual elements of an IMC strategy can be viewed on two axes: ________ and

passive and interactive; offline and online

Integrated marketing communications (IMC) represents the ________ element of the six Ps.

promotion

Roberto wants customers in his specialty tobacco store to feel at home, as if they were in their personal smoking den. He uses lighting, music, and soft chairs to create a "look and feel" that will get customers to relax and return. Roberto is focusing on which aspect of the marketing mix?

promotion

In the United States, the regulation of advertising involves a complex mix of laws and informal restrictions designed to

protect consumers from deceptive practices.

A ________ advertising schedule uses a base level of advertising during some periods followed by periods of increased advertising.

pulsing

Denman tells a colleague about a major prospect he plans to call on in the next few days and asks the colleague to pretend to be a customer while he makes his sales presentation. Denman and his colleague are engaged in

role-playing

If a manufacturer isn't happy with either intensive or exclusive distribution, a logical choice, which incorporates some features from both, would be ________ distribution.

selective

When Burroughs Wellcome introduced the first anti-AIDS drugs, it initially set the price at $10,000 for a year's supply. Burroughs Wellcome was probably pursuing a(n) ________ pricing strategy.

skimming

Regardless of the objective of an advertising campaign, each campaign's objectives must be

specific and measurable.

Of the following retailers, the best example of a category killer is

staples

Byron gave the manager of his convenience store a set of binoculars so she could see the gasoline prices charged by the other convenience store at that intersection. Byron told the manager to always match the gasoline prices of the other store. Byron is using a ________ pricing strategy.

status-quo

When the price for Blu-ray players dropped, the demand for DVD players went down, so DVD players and Blu-ray players are

substitute products.

Stimulation Market Inc. manufactures educational toys. The company recently started buying paint for its toys from a Brazilian firm. This Brazilian company is part of Stimulations Markets'

supply chain

Some consumers make it a point to go shopping the day after Christmas to stock up on discounted wrapping paper and bows for the following year. These consumers are

taking advantage of seasonal discounts

Naomi tells her sales representatives the goal is to generate at least a 15 percent return on investment for all of the industrial building supplies they sell. Naomi is using a ________ pricing strategy.

target return

The sender of an IMC message hopes the receivers are

the people for whom the message was originally intended.

Who usually makes the final decision regarding the use of distribution center versus direct store delivery?

the retailer

Manufacturers use cash discounts primarily because it allows them to benefit from

the time value of money

Jonah is starting a career in selling, but he eventually wants to become a senior manager. A selling career may help Jonah achieve that goal by providing

visibility to management.

appeals help consumers make purchase decisions by offering facts in advertising messages and strong arguments built around relevant issues, explaining key benefits of the firm's products and services.

Informational

Which of the following is true of competitive parity?

It does not allow firms to exploit the unique opportunities or problems they confront in a market.

Marcie's Mats creates custom mats for homes. She operates out of two stores in the New York City metropolitan area. These are used to display sample mats and show the selection of available materials. Marcie is wondering where to store the basic mats that have been manufactured in advance and are customized on request. She is considering using a distribution center. Would this be a good decision?

No, the expense of a distribution center is not warranted for this amount of inventory.

Rita knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Rita was considering

Rita knew that her established customers liked her product much better than her competitor's. She was planning to expand into new markets, and she was considering pricing. She was leaning toward charging a higher price than competitors to help demonstrate that hers was a high-quality product. Rita was considering

________ give both members of the relationship an incentive to pool their strengths and abilities and exploit potential opportunities together.

Shared goals

The basic goal of integrated marketing communications is to

communicate the value proposition to the target market.

Higher-income consumers visiting ________ feel like they are on a treasure hunt, searching for a bargain.

extreme-value retailers

When businesses support cultural or sporting events, such as the St. Jude Walk/Run to End Childhood Cancer, this is known as cause-related marketing.

false

In determining the price of his company's new financial planning software, Ricardo is assessing how much better his company's software is as compared to alternative products available in the market. Ricardo is using ________ pricing.

improvement value

With more frequent shipments associated with quick response (QR) systems, a retailer is

more likely to have what customers want.

When using the objective-and-task method of IMC budgeting for multiple products and services, how often must the process be repeated?

once, for each individual product and service

What type of sales training has revolutionized the way training happens in many firms?

online training

As an omnichannel retailing operation matures, as in the case of Walmart, what tends to happen to its organizational structure?

operational integration of all channels

Each year in December, Anheuser-Busch runs television ads featuring the Clydesdale horses pulling a stagecoach with an Anheuser-Busch logo. The message is low-key, wishing everyone well during the holiday season. This is an example of ________ advertising.

reminder

Unlike product, promotion, or place, price is the only part of the marketing mix

that generates revenue.

Telemarketing and cold calls have become less popular as sales tools because

their success rate is low.

In the IMC communication process, the ________ encodes the marketing communication message.

transmitter

Van sells sports equipment and wants to get customers into his store. He knows from past experience that sales generate customer traffic, particularly when he puts children's baseball equipment on sale. Van may consider a leader pricing strategy.

true

When manufacturers such as Avon sell directly to consumers, they perform both production and retailing activities.

true

When the price of milk goes up, demand does not fall significantly, because people still need to buy milk. However, if the price of T-bone steaks rises beyond a certain point, people will buy fewer of them because they can turn to the many substitutes for this cut of meat. This refers to price elasticity of demand.

true

When two competing retailers have a disagreement, it is an example of a horizontal channel conflict.

true

f you had a small business and needed a sales force but did not wish to hire anyone, you could use the services of an independent agent.

true