MKTG 380 -- Safavi -- WWU -- FINAL ASSIGNMENTS

Prestige pricing objectives emphasize:

quality and exclusivity.

The supply chain begins with:

the raw material inputs for the manufacturing process.

Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for website hosting. Currently, Parker imports the lights for $.99 each (including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. If Parker is currently selling 50 units a month, what is Parker's monthly profit or loss?

$0

A company incurs fixed costs of $35,000 and average variable costs of $7 per item. This company sells 10,000 units and just breaks even. The unit selling price for the product is:

$10.50

According to Brendan's Facebook ads manager stats, in the first three days of advertising, Brendan's ad has had nearly 1,000 impressions and 253 people who clicked through to his site. Brendan's click-through rate on this ad should be close to:

0.25.

Zhang Wei set up a Facebook ad for his mentor's coaching business, which resulted in 100,000 ad impressions and a 2% click-through rate. Not satisfied with his results, he has continued to tweak the ad's image, headline, and offer. Each time he's tested a revision of the ad, he has had the same number of impressions but has improved the number of clicks. Now he's set a goal to achieve a 3.6% click-through rate with the same number of impressions, so approximately how many clicks does he estimate he'll need to get from his newest ad?

3,600

A product is priced to sell for $12 with average variable costs of $8. The company's total fixed costs are $120,000. The minimum number of units that must be sold in order to the breakeven point with zero profits are:

30,000

Tom is selling water purification systems on an e-commerce site, and Tom wants to know his conversion cost for his latest Facebook ad. Tom is spending 40 cents each time a Facebook user clicks on his ad, and his conversion rate is 0.11. Which of the following best represents his conversion cost?

4

Mignon d'Armitage manufactures jewelry. This firm is planning to introduce a new necklace and is trying to determine how many units it must sell in order to break even. Fixed costs are $100,000 and variable costs for each unit will be $20. At the price of $45 each, the number of units that must be sold in order to break even is:

4,000

Six months ago, you calculated that your BeadsandBaubles.com conversion rate was 2.7% so you went looking for ways to encourage more purchases. You sensed that some visitors left the site without making a purchase because they felt overwhelmed by all the choices, inspiring you to introduce a new line of jewelry-making kits. Which of the following sets of numbers would indicate that your conversion rate improved this past month because of kit sales?

83 purchases out of 2,000 unique visitors

Under which of the following conditions is a product most likely to have an elastic demand?

Consumers can easily find close substitutes for the product

You are head of supply chain management at a major manufacturing company. Over the last few months, there have been some high-profile breakdowns in marketing and data coordination between your company and different members of your supply chain. You are meeting with the company's CEO to develop a strategy for preventing these breakdowns going forward. The CEO has tasked you with developing an online means through which your company can collaborate with its supply chain members more efficiently and effectively.

A private exchange

Which of the following methods of promotion is most likely to be used for promoting a consumer product targeted at a geographically dispersed market if the audiences are likely to respond to the same promotional messages?

Advertising

Which of the following is the best example of a consumer making a final purchase decision based on information found through social media?

After reading reviews in an online electronics forum, Matt places an order for a pair of Sony MDR-1A headphones from BestBuy.com.

_____ involves creating and distributing relevant and targeted material to attract and engage an audience, with the goal of driving them to a desired action.

Content marketing

Marketers face a new set of ethical and legal issues as social media becomes more essential to the success of the firm's marketing strategies. Moreover, as the social media landscape continues to evolve and expand, new ethical situations continue to appear. As a marketer, it is almost guaranteed that you or your organization will eventually make a mistake with your use of social media. Therefore, when you make that certain-to-occur mistake with social media, which of the following should you do?

Be accountable and take action to resolve the issue.

You're Bob Branson, owner of Branson's Heating and Air Conditioning. You want to attract new customers to your website by providing lengthy articles on home maintenance and encouraging visitors to ask for your advice. Which type of platform is best suited to your purpose?

Blogging and forums

Breakeven sales volume is calculated as:

Breakeven point (in units) = Total Fixed Costs/Contribution Margin

Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for website hosting. Currently, Parker imports the lights for $.99 each (including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. If Parker's shipping charges increased to $.75 a strand, what would happen?

Breakeven volume would increase

Xbox's Twitter team holds the Guinness World Record for being the most responsive brand on social media. Which important objective does their social media approach achieve?

Build customer relationships

Which of the following is true of using publicity as a promotional strategy?

Companies have less control over whether the press publishes good or bad news.

Which of the following is a limitation of breakeven analysis?

Consumer demand for products or services is not considered.

The Metrics Group is a firm that helps companies improve the performance of their websites. The firm rates the effectiveness of the website based on the percentage of website visitors making purchases through the site. Which of the following measures is being used by the firm while assessing the effectiveness of the websites?

Conversion rate

Which of the following actions is most likely to be taken by a company in order to implement the value pricing objective?

Convincing consumers that the quality of their lower-priced product is the same as that of a comparatively higher-priced product sold by a competitor

A frequent source of confusion between the concepts of cooperative advertising and comparative advertising is the similarity of their terms. The fact is that:

Cooperative advertising involves sharing the cost of placing the ad while comparative advertising refers to the competitive advantage of sponsor's products over the competition.

Some of the critics of advertising claim that:

Create false needs to persuade people to work day and night for money to buy unnecessary goodies to generate profit for few corporate stakeholders.

You work for an investment bank that is marketing a new credit card. As part of your company's marketing strategy, you come up with an animated penguin who is associated with your services, and your company comes up with the slogan, "Shopping with kings." Your ad campaign is 6) viewed by millions around the country through television commercials, online ads, direct mail, and celebrity sponsors. Which of the following would be considered feedback?

Customers apply for your bank's credit card

According to the AIDA concept, which of the following is the first function of a promotional message?

Gaining the potential consumer's attention

Cutco is a manufacturer of high-end cutlery for the home chef and markets their products through a sister company, Vector Marketing who often contracts with college students who are independent sales representatives for the company. Vector provides free product and sales training to their independent sales representatives and encourages them to take food with them on sales calls such as apples, cucumbers, tomatoes or other fresh produce so that prospective customers can actually use the knives and experience the Cutco difference. In addition, Cutco is relatively famous for their kitchen shears that can cut through a penny and during training, all Vector Marketing representatives are taught how to show the versatility and value of the shears. Which step in the sales process would a Vector Marketing representative have customers use the knives or kitchen shears?

Demonstration

You begin every work day by stopping by the local premium coffee shop for a latte. They recognize you when you come in and just hand you your regular order. Recently, a number of events happened at the same time: you got a promotion with a higher salary; your regular coffee shop increased its prices; and a competitor moved into the same shopping center, offering lower prices. ​ Required: During your vacation, you have the luxury of time to reflect on your workday pattern of coffee consumption. Looked at from a marketing perspective, which action could you choose to show that your demand is more elastic?

Discovering that you enjoy the taste of the competitor's coffee

In addition to traditional drug stores, Dr Scholl's foot care company sells its products through convenience stores as well as through telemarketing to podiatrists. Which of the following is being employed by Dr Scholl's foot care company to sell its products?

Dual distribution

Your clients don't need to be sold a product - they have already subscribed to your expensive premium service. But they do need to be able to call on you when they have a problem with the service or when they require special consideration. You provide technical support, solve problems, and make sure the customer is included in special events that your company sponsors. You also make certain that everyone who is a premium subscriber is sent an annual gift, compliments of your company. Because you don't meet your customers face-to-face, you sometimes call yourself an electronic concierge! What kind of sales are you involved in?

Inside selling

Market ___, which refers to the condition when suppliers make just enough of a product and price it in a way that consumers buy it all, rarely happens and is usually temporary.

Equilibrium

Bremer Jewelry has two locations in Illinois within 60 miles of each other and is the only jewelry store to carry the Hearts on Fire diamond jewelry line. Bremer has negotiated with Hearts on Fire to be the only retailer within a 150-mile radius of both store locations and believes that this arrangement provides a competitive advantage to the store. What type of distribution does Bremer Jewelry have with Hearts on Fire?

Exclusive distribution

DaVon, a sales representative with Global Drone, a manufacturer of drones for the consumer market was meeting with representatives from Best Buy and demonstrating how easy the drones are to operate and maneuver. One of the Best Buy team members said, "These are easy to use but I'm concerned about the lightweight material and that they might be easily damaged." Based on this statement from the Best Buy team member, what stage in the selling process is DaVon now?

Handling objections

Bubble, a company that manufactures gums and candies, distributes its products through all possible channels. One can pick up a Bubble's product from just about anywhere—department stores, general stores, convenience stores, and even local pharmacies. Which of the following distribution strategy is being employed by Bubble?

Intensive distribution

TechnoMarket, a retailer of consumer electronics, has branches in 13 states. As the company's marketing manager, you're looking for a website that will enable employees to access details regarding new products and their functionality, check inventory levels, and transfer stock to other stores. You do not want customers to have access to this data. Which of the following would best suit your purpose?

Intranet

Which of the following is a disadvantage associated with product-line pricing?

It does not provide flexibility for making price changes on individual items

You've just landed a new job as the chief marketing officer for John Deere, manufacturer of agricultural, construction, and gardening equipment. You want to make sure you're using the best distribution channel strategy for reaching both B2B and B2C sales. In evaluating your company's needs, what do you decide is the best approach?

Market factors, especially the fact that you're marketing to two very different groups, suggest that dual distribution is the best strategy.

The top marketing manager of your company has asked you to make recommendations about your sales representatives who make up the sales force for your business-to-business auto parts customers. These territories are geographically structured and the goal is to move away from territory-based sales to customer-oriented sales; as a result, these sales reps may be reassigned.Based on this project request, what element of the sales force management process will you focus on?

Organizing the sales force

As a new salesperson, you are concerned with how your decisions will affect your customers, your sales team, and your company. You notice that many of your workmates accept gifts and perks from clients, even though that practice is frowned upon by management and discouraged according to what you have read in the code of conduct handbook. Some colleagues have been reprimanded for accepting gifts from customers just in the short time you have been with the company. Which of the following best describes this activity?

Personal ethical behavior

Which of the following is the most effective method to promote products when the customers of a firm are geographically concentrated?

Personal selling

Chelsey is an account executive with Enterprise Rent-A-Car and works with body shop and automotive service providers as well as insurance agents. Chelsey knows that many automobile owners have car rental riders as part of their automobile insurance and when their car is damaged from a storm or accident, they could receive a rental car while their vehicle is being repaired. When Chelsey meets with her customers, she typically promotes the features and benefits of Enterprise such as how Enterprise provides exceptional service and goes above and beyond to pick-up customers at their preferred location and gives them their rental vehicle. In addition, most of Enterprise's fleet of vehicles are less than 2 years old and are well maintained to provide a comfortable driving experience. Chelsey tells her agent and body shop owner clients that by using Enterprise's services, their customers will have higher levels of customer satisfaction with their repair experience and that translates into loyalty for the insurance agent. During which step in the personal selling process will Chelsey share this information?

Presentation

Brandon recently completed law school, passed the bar exam and began working for a prestigious law firm in Dallas, TX. The firm has a strict dress code and Brandon is required to wear business suits, dress shirts, ties, and dress shoes. He is investing in a new wardrobe and visited Men's Discount Warehouse to purchase new clothes. He shared his situation with Tim, his sales representative, and Tim told him that if he bought 2 suits, he would receive 2 dress shirts, 3 ties, and 2 pairs of socks for free. Which of the following statements is TRUE regarding this example

Promotions such as this are legal when differences in price reflect cost differentials

You work for a clothing manufacturer whose executives recently decided they were going to sever their ties with four of their manufacturing partners in Guatemala due to dismal labor conditions. Your superiors believe this is a public relations-worthy topic, and they want your consumers and stakeholders to know about their decision. Which of the following steps can they take to ensure their various publics are aware of their decision to sever ties with the Guatemalan manufacturers?

Publish a press release

A manufacturer wants to increase purchase rates of its product and reward those consumers who make multiple purchases. It decides to use a consumer-oriented sales promotion that has an expiration date and requires the purchaser to submit a proof of purchase. Which sales promotion will the manufacturer use?

Rebate

Which of the following is the most effective way for a sales manager to motivate salespeople to give their best?

Recognizing their efforts and offering simple incentives

Gianni of Gianni's Pizzeria has hired you to design a pizza ordering app for his business. Gianni says that one of his goals is to maximize the amount of revenue he gets from each transaction. Which design feature do you recommend to him to help achieve this objective?

Recommending side items and drinks

Your company's leather goods are very well received in the marketplace. But you still have not been able to resolve the issue of packaging. These bags and briefcases have to be packaged substantially so your customer receives a flawless product, but you have to come up with a solution that will allow the consumer to recycle all that packaging in some way. You decide to solicit suggestions from the staff on how to either implement a recycling program or devise some other packaging methodology that is environmentally friendly. What marketing channel are you managing? Select the best answer from the choices below.

Reverse channel

Sales of Kathleen's baked goods have begun to increase dramatically. She is selling online, but many customers in her core region are asking about local outlets where they can make immediate purchases. Kathleen has no desire to open and operate a retail outlet herself, but she also does not want her product sold beside a generic cookie in a supermarket. What type of distribution will Kathleen investigate for her premium baked goods?

Selective distribution

The SRC refers to the concept of

Self-Reference Criterion by which an individual interprets the behavior of other people according to his/her frame of reference.

When a major distributor of beauty supplies went out of business, you were able to acquire large amounts of combs, brushes, hairpins, and other accessories that you sell in your small chain of four stores. You will be restocking your stores with this merchandise for the next nine months. What kind of warehouse facility will you use for your inventory?

Storage warehouse

Advertising for some products can contribute to the lower cost of product unit when:

The cost structure of the product is heavily oriented to the fixed costs where allocation of it to a higher volume of production reduces lower fixed costs per unit and thereby the lower unit cost

If the price elasticity of demand for new hybrid cars is 1.25 and for gasoline is 1.0, what was the effect on the prices of a new hybrid car and on gasoline?

The price of the hybrid car fell by 8 percent, and the price of gasoline increased by 10 percent.

Your boss, George, manages the small men's shoestore where you work. A few months back, the owner asked him to start using social media to promote the store. Since then George has experimented with a whole bunch of different strategies and styles of social media posts to see "what works," but everyone agrees that nothing is working. If they ask for your advice, what would be your best recommendation?

To define the store's brand and create a cohesive online presence around it

Jordan graduated in May with a degree in professional selling and accepted a position with Whirlpool as a sales representative. Jordan will be living in Michigan near the corporate headquarters for the first three months of employment with other recently hired sales representatives. The company will be providing a structured classroom typesetting to share information about its products, services, and sales process. In addition, Jordan and other sales representatives will be living in corporate housing that have a variety of appliance models including competitors, GE and Samsung. What management function most closely describes Jordan's first few months with Whirlpool?

Training

"Revolutionary" is the word you'd use to describe the new kind of paint your company has developed for crafters and artists, so customers will need some instruction on how to use this new product before they decide to try it. Your best option for using social media to promote this product is:

YouTube videos

Product placement is a form of advertising where:

a company pays a fee to have its products displayed prominently in a film or TV show

References to the Internet's global reach have to do with its:

ability to eliminate the geographic limitations of local business.

Sales promotion techniques were originally intended:

as short-term incentives aimed at producing immediate buying responses

Odyssey is a website where the host regularly posts photos and articles on his favorite travel destinations and his experiences therein. Users of the site are allowed to respond or post comments on these articles. Odyssey is an example of a _____.

blogging site

Oneview is a social media platform that provides a space for its users to save, organize, and tag links of their favorite websites. The users can also share these links with other members of the platform. Oneview is an example of a _____.

bookmarking site

Pinterest members can save links to online resources, share links with friends, and comment on other people's links. Pinterest is a combination ___-___ site.

bookmarking-social networking

Psychological pricing is based on the premise that:

certain prices or price ranges make products more appealing to buyers than others.

Amazon boasts a very high _____ when using banner ads placed on CNN.com based upon the percentage of people who are exposed to the advertisement and follow the link to view the advertisement.

click-through rate

Retailers such as Home Depot and Lowe's, who offer to meet and beat the best price offered by their competitors, use the strategy of _____ pricing.

competitive

Pricing is a highly visible component of a firm's marketing mix and an easy tool for obtaining a differential advantage over competitors. However, when competitors continually undercut each other to gain that advantage, it can lead to a price war that damages all companies involved. When firms have identical or very similar products and price information is readily available - for example, Coca-Cola and Pepsi - a common pricing approach to avoid price wars is:

competitive-parity pricing.

Analysis has shown that ingredients account for less than 5 percent of a perfume's cost. So if a perfume costs $135 or more per ounce, it reflects the marketer's adoption of a pricing objective that focuses on:

creating image or prestige.

The process of qualifying a sales prospect includes:

determining a potential customer's needs, financial resources eligibility to purchase, and purchase authority.

John works for an ice-cream manufacturer. His department focuses on keeping the finished products fresh as well as ensuring that they reach the retailers on time as the products are highly perishable. In addition, his department decides on which flavors of ice cream should be sent to which retailers in various trade areas. John is most likely involved with:

downstream management

AAA Insurance Company specializes in property and casualty insurance for individuals such as automobile and home insurance. The company has their own branch offices across the United States with representatives who only market AAA insurance policies. In addition, consumers can get quotes and purchase via the AAA web portal. AAA Insurance also works with independent insurance agents as a way to maximize their coverage in the marketplace. AAA insurance is utilizing ______. ​

dual distribution

A demand is said to be inelastic when the:

elasticity of demand is less than 1.

The most expensive sales method overall is:

field selling, largely because of the travel costs of sales personnel.

A new pizza restaurant recently opened near a college campus and organized a marketing campaign using Pi day - March 14th by delivering free sample pizzas to residence hall common areas and other campus locations. This is an example of:

guerrilla marketing

A firm with $50,000 in fixed costs, selling price of $25 per unit, and variable costs of $5 a unit is currently operating at breakeven volume. If sales decrease 50 units and costs remain the same, the firm will:

have a loss of $1,000

Generally speaking, a successful website is one that attracts a ____ number of visitors who convert into a ____ number of paying customers.

high; significant

When the same branded product is carried in competing retail pharmacies, discount houses, department stores, and convenience stores, the marketing channel conflict that can result is referred to as:

horizontal conflict

Fred Wilson, a journalist working for a popular news channel, has a vast knowledge of electronic gadgets. His reviews of these products are highly regarded and trusted by others. Wilson also runs a weekly show on the channel called "The Technocrat," where he analyzes the latest high-tech gadgets. Much like his reviews, Wilson's show enjoys a wide viewership, and is believed to have a considerable impact on the buying decisions of the audience. Fred Wilson can be regarded as a(n) _____.

influencer

Gigi Hadid is an international fashion model with contracts with Maybelline and has over 4.5 million followers on Instagram. She's on a quest to find the best cheeseburger in New York City and recently posted that her favorite was from J.G. Melon on 3rd Avenue. According to the text, Gigi Hadid is considered a(n) _________ since she has the capability to affect the opinions and actions of others through social media.

influencer

Cleveland Solvents has field sales staff, a customer service department, and two individuals who manage the "tech hotline." These individuals not only answer technical questions from customers, they also identify customer needs and recommend products that can fill those needs. They have the ability to initiate and close sales on the spot. These individuals are essentially participating in:

inside selling

Sales professionals who utilize inbound telemarketing and their extensive knowledge to assist customers via phone and also support a field sales force are known as:

inside selling professionals

Almost all fast-food restaurants offering a short menu with low prices to compete with the other restaurants. These are intended to attract very price conscious consumers and are usually a "dollar menu" or offered at prices such as $.99 and $1.49. This approach is referred to as:

value pricing.

As an avid sports fan yourself, you've got a fantastic idea for an online business. Each customer will create a profile identifying his or her favorite teams, and when those teams do well, your website will automatically send an email to the customer promoting the teams' gear and other memorabilia. You'll be engaging in:

interactive marketing

Blunk is a service that allows users to send updates through posts that contain only a few words. These updates are sent to the users who have signed up to receive them. Blunk can be regarded as a(n) _____.

microblog

The communication process can be disrupted by _____ when inappropriate advertising media or poor radio or TV reception interfere with message transmission and reduce its effectiveness?

noise

When General Motors introduced the Saturn, it priced the SL sports sedan at $2,000 less than the Toyota Corolla DLX and $1,500 less than comparable Nissan and Honda automobiles. This is an example of the _____ pricing strategy.

penetration

Brad is a sales representative for a Kettle Chips and is preparing for a Super Bowl promotional campaign. He's contacting each of his grocery and convenience accounts with an opportunity to install an end-of-aisle display with graphics of the Super Bowl teams and a display of several varieties of chips. This is known as _____, a type of trade-oriented promotion.

point-of-purchase advertising

In the absence of other cues:

price is an important indicator of product quality to consumers.

Sounder's Chowder House is a successful chain of fish restaurants in the Pacific Northwest. Several years ago, the company launched a website offering about 32 different products, including chowders, frozen fish and chips, and shrimp cocktail sauce. As the company's new marketing director for online sales, you've studied the analytics and found that 79% of sales are coming from just six products. Based on this data, the first thing you want to reevaluate is the company's:

product offering.

When a men's clothing store sells suits at four price levels ($295, $455, $525, and $650), the store's retail policy is _____ pricing.

product-line

In communicating a promotional message, decoding refers to the:

receiver's interpretation of the message transmitted through the communication channel.

A skimming pricing strategy is more commonly used by firms to:

set a market-entry price for distinctive goods or services with little or no initial competition.

Badoo is a global, multilingual, social media platform that provides an opportunity for its members to meet new people in their locality, share daily activities, and post opinions on different topics. Badoo is a type of _____.

social networking site

The Tostitos BCS National Championship game features the top two college football teams competing for the national title. The Tostitos brand name is included in the event's name because Frito-Lay, the manufacturer, paid for:

sponsorship

What a disaster! So far, 13 people have been hospitalized due to a strain of bacteria found in the lettuce your company packages for sale in grocery stores. You've met with the executive team to determine the best way to handle this crisis, and you've decided the best option is to:

tap into the immediacy of all social media channels to start notifying the public of your product recall.

Consumers shopping on BargainSmartphones.com enjoy many benefits, but the main reason they prefer this website over others is:

the ability to easily find the best deals.

The breakeven point is the point at which:

total revenue from sales equals total cost.

Peach, a cosmetic company, sells its products only through some independent representatives. To buy a Peach product, customers will have to contact a representative and place an order for the products they need. This information indicates that Peach:

uses a direct selling strategy

Adrienne runs an online bookkeeping and accounting service for small business owners. Adrienne advises all clients to protect themselves from hackers by:

using different passwords for all of their accounts.