Principles of Marketing Final
If the product price is $100, average variable cost $40 per unit, and the total fixed costs are $120,000, what is the breakeven point?
2,000 units
_____________ is a sum of money that a producer gives to a reseller for each unit the reseller buys after an initial promotional deal is over.
A buy-back allowance
Pizza Hut is looking into magazine advertising for its pizza. The company wants to reach as many people as possible, but due to budget constraints Pizza Hut must reach consumers as efficiently as possible. What can Pizza Hut use to evaluate various magazines?
A cost comparison indicator
_______ offers the potential benefits of cost efficiency, repetition, and adding product value, while _____ is one of its disadvantages.
Advertising; slow feedback
Your company CEO is a very socially conscious individual who believes in prudently utilizing the resources of the company to promote causes that are good for the environment and society-at-large. She recently asked you to work with the firm's outside ad agency to develop an advertising campaign that articulates the company's concern about climate change.
Advocacy advertising
Which of the following is more likely to lead to underspending or overspending?
Arbitrary approach
____ links the purchase of an organization's products to support of philanthropic organizations favored by the target market.
Cause-related marketing
OES Office Systems' use of fax machines to carry its advertising messages to its business customers is which component of the communication process?
Communication channel
If Coca-Cola sets its twelve-pack price to match the price charged by PepsiCo, Coca-Cola is using which of the following pricing methods?
Competition-based
Energizer batteries would be classified as which type of product?
Convenience
Which of the following is the best example of a well-stated sales objective?
Each salesperson should bring in $25,000 in new sales by November 15.
_____ is an example of a trade name and _____ is a brand name owned by that company.
Ford Motor Company; Escape
Which of the following is most likely to stimulate customer loyalty?
Frequent-user incentives
Which stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy?
Growth
Which of the following is a reason why sales promotion has increased over the past 30 years?
Heightened concerns about value have made customers more responsive to promotional offers.
Michelle is hiring sales representatives for her insurance company. As she tries to attract and retain top-quality salespeople, which of the following is least likely to affect the decisions of potential hires?
How expensive the insurance plans being sold are
Labeling is important for three specific reasons, including promotional and legal reasons. What is the third reason?
Informational
Which of the following statements is true about team selling?
It is appropriate for expensive, complex, high-tech business products.
If a firm's promotional budget were extremely limited, for which of the following reasons would it be more likely to rely on personal selling as its main promotional tool?
It is easier to measure a salesperson's effects on sales than advertising's effects on sales.
Paulina works at the large corporate headquarters of a multinational company. She is a bit of a clean freak. Every week she cleans her office, including the windows. Her favorite window cleaner to use is Windex. In this case, Windex Window Cleaner is which of the following types of business products?
MRO supplies
Which of the following is not a public relations tool?
Product sample
____ is a broad set of communication efforts used to create and maintain favorable relationships between a company and its stakeholders.
Public relations
Which of the following is used to assess an organization's image among the public or to evaluate the effect of a specific public relations program?
Public relations audit
Newspaper ads for Blue Lagoon Pools offer discounted prices during October and discounted cleaning supplies for hot tubs in March. These are examples of which of the following uses of promotion?
Reducing sales fluctuations
Which of the following is a reason why the use of sales promotion has increased dramatically?
Retailers are demanding greater promotional efforts from manufacturers to boost profits.
Which type of pricing objective can reduce a firm's risk by helping to stabilize demand for its products?
Status quo
Carlos Suarez has been hired as sales manager at a new firm and is trying to come up with a sales force compensation method. He would like to have selling expenses relate directly to sales resources, an aggressive sales force, and minimization of non-selling tasks. What compensation method(s) would best fulfill his requirements?
Straight commission
Personal selling is changing in today's marketplace due to several factors. Which of the following is not a factor that impacts today's promotion through personal selling?
The difficulty in keeping customers because they are fickle
In which stage of a product's life cycle is the firm focused on establishing and fortifying the product's market position by encouraging brand loyalty?
The growth stage
At what point does a firm maximize profit?
The point at which marginal cost equals marginal revenue
Which of the following target market characteristics are most important to consider before determining the promotion mix ingredients?
The size, geographic distribution, and demographic characteristics
Which of the following statements is true about salespeople?
They are often the knowledge experts for their firm.
The label on a new window air conditioner reads "uses up to 20% less energy." For what reason is this phrase most likely used?
To promote the product
____________ are reductions off the list price given by a producer to an intermediary for performing certain functions.
Trade discounts
Which of the following statements is not true about training salespeople?
Training programs for new sales personnel are never more than two weeks long.
Nicole is the owner of a group of women's clothing stores located throughout the Midwestern United States. Recently, she made a large purchase from a leading clothing manufacturer, and was given ____, which is a gift to a retailer who purchases a specified quantity of merchandise.
a dealer loader
In order to show consumers how well its blenders work and to stimulate sales, Vitamix often sets up temporary booths in stores where they have someone using the blender in a variety of ways. This is an example of
a demonstration.
A product line is defined as
a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.
Brand licensing agreements can fail for many reasons but usually not because of
a strong match between the product and the licensed brand.
Marketers of seasonal products tend to emphasize
advertising
One of the biggest problems associated with ____ as an element of promotion is the high absolute dollar outlay often required.
advertising
If a product's target market consists of millions of people, marketers are most likely to focus promotional efforts on
advertising and sales promotion.
You work for a company that is marketing a new line of bathing suits. These bathing suits have a unique style that differs from other bathing suits, and you want to spread awareness among consumers and spark their interest. The bathing suit will be sold in stores nationwide. Probably the best promotion mix elements to use in your integrated marketing communications strategy are
advertising and sales promotion.
The total amount of money a marketer allocates for advertising for a specific time period is the
advertising appropriation.
A concession in price in business markets to achieve a desired goal is called a(n)
allowance
An advertising campaign is typically developed by an individual or a few persons within the firm, an advertising department within the organization, or
an advertising agency.
Frieda is considering advertising her new restaurant on the radio to attract more customers. She knows that in order to attract listeners' attention on the radio, it will be important for her to
be both informal and conversational in tone.
Everything associated with the product, including its symbolism and experiences is the____________.
brand
If a brand is extended too many times, one major risk is that it can lead to _____.
brand dilution
If Subway made an agreement allowing another company to use its brand name on a new supermarket ready-to-eat sandwich, this would be called
brand licensing
iPod is the ____ of the MP3 player made by Apple, Inc.
brand name
The focus of personal selling is shifting from selling a specific product to
building long-term relationships with customers.
When Jamie and Cayden are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of
bundle pricing
Before the release of the newest iPhone by Apple Inc., an Apple juice brand used an actor dressed up like an apple to hold a sign encouraging those waiting in line to try its juice. The brand thought this would be a creative event that would spark an interest in Apple iPhone fans as they stood waiting in line with little else to do. This is an example of
buzz marketing.
Freddy works at Apple. Apple just released an upgraded product offering for its iPhone. While the entire marketing department is working on advertising and public relations for the iPhone launch, Freddy's assignment is to illustrate the highly visible features of the product in a print publication. Most importantly, he wants to show off and describe the improved features that differ from the previous version. To achieve his objective, Freddy would most likely use a(n)
captioned photograph.
Although a radio announcer can read several hundred words a minute, a one-minute advertising message should not exceed 150 words because most announcers cannot articulate words into understandable messages at faster rates. This illustrates the ____ consideration in effective communication.
channel capacity
Each communication channel has a limit on the volume of information it can handle effectively. This limit is called
channel capacity.
Labeling is ____________ packaging.
closely interrelated to
The step in developing an advertising campaign that directly precedes campaign execution is
creating the advertising message.
Jared is a salesperson for Whole Foods. In his position, he is primarily responsible for seeking repeat sales. Jared is most likely focused on
current-customer selling.
Sergio generally makes cold calls on businesses to look for new prospects. He has many satisfied customers, but like many salespeople, he does not frequently utilize one of the best ways to find new prospects, which is through
customer referrals.
A commercial for a weight-loss program that explains that the customer pays only one dollar for every pound he or she wants to lose but specifies in fine print that the cost of meals is extra exemplifies ____ advertising.
deceptive
In the ______________, signs or symbols are converted by the receiver into concepts and ideas.
decoding process
A graph of the quantity of products marketers expect to sell at various prices if other factors remain constant is a
demand curve
Jaylen, Tony's sales manager, points out to him that his last shopper in the housewares department didn't seem interested or involved as he explained the new food processor to her. Jaylen suggests that Tony use a(n) ____ as part of his presentation next time.
demonstration
After the advertising budget is determined, the next step in creating an advertising campaign is
developing the media plan.
Increasingly, inside salespersons manage ___________________ and outside salespersons are more _______________.
digital approaches to sales; relationship oriented
A product item is a
distinct offering among an organization's products.
Chris is excited because he has obtained the price list of his company's major competitor. His supervisor, Homer, is also optimistic. However, he has much more experience in the industry than Chris and cautions him that just because they have access to their competitor's price list
doesn't mean they reflect the actual prices at which competitive products are sold.
For most firms in the United States, demand curves are
downward sloping.
A firm can identify changes in public opinion that affect it by conducting
environmental monitoring.
A major disadvantage of personal selling is that it
is very expensive per contact.
Channel capacity is determined by the
least efficient component of the communication process.
If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use
penetration pricing.
If REVO offers 20% off on Black Friday every year for its sunglasses, it is using _____.
periodic discounting
By promoting the fact that "orange juice is not just for breakfast anymore," the Florida Orange Growers Association attempted to stimulate
primary demand.
Old Navy sells only Old Navy-labeled clothing in its retail stores. The Old Navy brand is not sold in any other outlet. Old Navy is a ____ brand.
private distributor
Communication through the use of brochures, annual reports, event sponsorships, and news stories is referred to as
public relations
The three general types of media schedules are
pulsing, continuous, and flighting.
During the decoding process, the
receiver attempts to convert signs or symbols into concepts and ideas.
A specialty product
requires purchase planning, and the buyer will not accept substitutes.
Labels on nonedible items such as shampoos and detergents must include both
safety precautions and directions for use.
During the decline stage of the product life cycle,
sales rapidly decrease.
A product item is best described as a
specific version of a product.
Which of the following is not an advantage of using publicity-based public relations tools?
Control by media personnel of the content and timing of messages
Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and
MRO supplies.
Which of the following statements is not true about recruiting and training a sales force?
Marketers agree on a generally accepted set of traits for being an effective salesperson.
Which of the following statements is true about public relations?
Marketers cannot control whether the media choose to publish their public relations material.
Which of the following types of promotion informs potential customers about a product and what it is?
New introductory
Which of the following is the most commonly used type of publicity-based public relations tool?
News release
Which of the following factors does not dictate how many of each type of salesperson a particular company should have?
Number of marketing channels
____________ is setting the price lower than competing brands in order to enter a market and quickly gain a significant share of the market.
Penetration pricing
Kinesic communication is an element in which type of promotional method?
Personal selling
Which of the following is the most precise, enabling marketers to focus on the most promising sales prospects?
Personal selling
A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?
Reference pricing strategy
Which of the following involves building mutually beneficial long-term associations with a business customer through regular communications over prolonged periods of time?
Relationship selling
______ that generates loyal long-term customers is likely to be extremely profitable in repeat sales as well as the money saved in trying to find new customers.
Relationship selling
In one corner of its magazine advertisement for office copiers, Lexmark places a small box asking for the names and addresses of individuals or companies seeking more information. Lexmark has included this box to facilitate ____ for this communication.
feedback
Aggressive pricing is typical during the ____ stage of the product life cycle.
growth
Products such as light bulbs, canned soft drinks, and ice cream sandwiches are usually priced using ______, which usually results in a ____.
multiple-unit pricing; lower per unit price
During the introduction stage of a successful product, profits are usually
negative and increasing.
Of the different types of brands, the one that has experienced the steadiest growth is
private distributor.
The "Got milk?" print campaign is advertising that stimulates demand for a ____, known as ____ advertising.
product category; pioneer
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.
A consumer contest is an example of
sales promotion
An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers is
sales promotion.
Janie is the manager of Human Resources for Zappos.com. She is currently reviewing the sales force compensation method used at Zappos.com to determine if there is a better way to manage compensation. Janie knows that the ____ method is easy to administer, yields more predictable selling expenses, and provides sales managers with a large degree of control over salespeople.
straight salary
Tim is a salesperson for DuPont. His college degree is in engineering, with a minor in physical science. Tim is most likely a(n)
technical salesperson.
A trademark signifies
that the owner has exclusive use of a brand and others are prohibited from using it.
During the personal selling process, a salesperson, if possible, should handle objections when
they arise.
Raine will sometimes take orders from customers, but her primary job is to assist retailers with restocking shelves, setting up displays, providing in-store demonstrates, and giving out free samples. Raine is most like a
trade salesperson.
Integrated marketing communications allow an organization to coordinate and manage its promotional efforts to
transmit consistent messages.
Mrs. Troy, you would agree that this is the most attractive car interior in this price range, wouldn't you?" Drew Davis, a salesperson at Midtown Ford, was using a(n) ____ when he made this statement.
trial close
Competition-based pricing is
used when costs and revenues are secondary to competitors' prices.
Bentley is shopping for a new coat at Stein Mart and finds a North Face down jacket that he really likes. He knows that the North Face brand is considered to be high quality and that it's usually very expensive. He's pleasantly surprised to see the price—the "suggested retail price" is $199 and Stein Mart's price is $99. Bentley decides to purchase the coat even though it's a little more expensive than he originally thought he'd spend on the jacket. What type of pricing strategy is Stein Mart using to price the North Face jacket and other merchandise?
Comparison discounting
You and your marketing team are conducting a series of focus groups with potential customers of a new product your firm is launching next year. The purpose of these focus groups is to find out what potential customers consider most important in the selection and use of this new product.
Creating the advertising platform
You are the head of sales training for a major financial services firm in New York City. You are conducting a sales training class for a group of new sales trainees. You are a strong believer in using a structured approach to personal selling.
Develop a database of potential customers.
Department stores such as Kohl's and Macy's are interested in learning how much their competitors are charging for similar merchandise. Which of the following practices might these retailers utilize to identify competitors' prices?
Employing comparative shoppers who systematically collect data on prices at competing stores
_____________ identifies changes in public opinion affecting an organization.
Environmental monitoring
Tammy works at ITZ, a new makeup brand. Her company has decided that they want to lead the makeup industry in product quality. They have assessed the market and determined that women will associate higher-priced makeup with being higher in quality. What is the next step that Tammy's company must do?
Evaluate competitors' prices
Which one of the following terms is the best description of what happens in the third stage of the product adoption process?
Evaluation
You are a senior sales and marketing analyst for a major retailing firm in Wisconsin. The marketing manager just stopped by your office with a very frustrated look on her face. She tells you that she is confused as to why, every time the company raises the sales price of its products, total revenue for the company declines.
The demand for the company's products is elastic, so total revenue declines when prices are raised.
You are reading the quarterly financial report of one of your competitors. You expected to see their total sales revenue decline because they had a large price increase during the quarter. You were certain that the price increase would lead to an equivalently large decrease in their total sales revenue. To your surprise, their total sales revenue actually increased in the quarter.
The demand for the company's products is inelastic, so total sales revenue increases when prices are raised.
Intuitiv Manufacturing's large plastics molding machine suddenly broke down during its day shift. When considering the purchase of available alternatives, Intuitiv decided to rent one for the next two years instead of buying one. In this situation, the large plastics molding machine it rented would be classified as
an installation.
All of the following are examples of publicity-based public relations tools except
annual reports
Developing a relationship on the first visit is becoming increasingly important in the _____________ stage of the personal selling process.
approach
Saffie is a marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year in order to find the breakeven point. Saffie knows this is an important financial statistic because below the breakeven point, the firm is operating
at a loss
A Sony laptop that has an "Intel" logo on its keyboard is an example of
co-branding
Duncan Hines Brownie Mix has revised its packaging with the words "Real Hershey's Chocolate In the Mix" on its box. This is an example of
co-branding
Haley's client group has been gradually shrinking and she is looking for new prospective clients. She has decided to spend a couple of days approaching potential customers without any prior consent. Haley's method of approach is known as
cold canvassing.
Fernanda is a salesperson for Aeropostale. Her compensation is based on a set salary plus a commission based on sales. Fernanda's compensation is based on a
combination compensation plan.
A sharing of meaning defines
communication
Garrison is responsible for developing the promotional campaign for Pearl Izumi's new line of bicycle clothing for teens. He will be writing advertising campaign objectives that are aimed at making the target customers' attitudes more favorable toward Pearl Izumi, which should be stated in ____ terms.
communication
The Toyota Corporation is developing its promotional plan for the coming year and is considering several types of advertising to communicate its messages. Toyota will likely advertise its vehicle, the RAV4, on TV, on its website, in major national magazines, and through Facebook. It is possible that the ads could focus on the features of the RAV4 and its most likely competitor, the Honda CR-V. Other forms of advertising that can be considered are ads that feature all of the Toyota brands in a single ad, while mentioning only the Toyota brand and its company's strengths. Finally, Toyota will probably continue to advertise updates of its cash cow brands, the Camry and the hybrid versions of its SUVs.
comparative advertising.
Although they become part of a larger product, ____ can often be easily identified and distinguished on the larger product.
component parts
Brand name awareness is an important element of brand equity because a familiar brand is more likely to be in a customer's ____ than an unfamiliar brand.
consideration set
Individual-sized boxes and packages that do not require refrigeration are both benefits of the ____ function of packaging.
convenience
The verbal portion of an advertisement, including headlines, body, and signature, is called the
copy
A tool that allows an advertiser to compare the costs of several media vehicles within a specific medium relative to the number of persons reached by each vehicle is called a(n)
cost comparison indicator.
Your friend Mary is highly critical of marketing. She claims that promotion creates needs among people so that they are unsatisfied with what they got. Since you are so knowledgeable in marketing, you tell your friend Mary that promotion doesn't _______________, but it does ____________________.
create needs; capitalize on them
After compiling a list of potential customers, a salesperson must
evaluate whether each prospect is able, willing, and authorized to buy the product.
An advantage of the arbitrary approach for determining the advertising appropriation is that it is
expedient
In order to have some of its cereals highlighted in a mailing sent out by Safeway, Kellogg has agreed to pay a portion of their costs associated with the advertising mailer. Kellogg's payment is designed to
facilitate reseller support.
A firm may decide that all packages should be similar and include one major element of the same design. This approach to promote an overall company image is called
family packaging
The purpose of the ____ stage in personal selling is to determine customers' problems and questions about using the product.
follow-up
Reductions for transportation and other costs related to the physical distance between buyer and seller are known as
geographic pricing.
A common form of tactile communication in U.S. business activities is
handshaking
Laws, government regulations, and industry self-regulation ______________ deceptive promotion.
have helped decrease
As Alejondro reads the copy for South Beach Hotel's upcoming magazine ad in Southern Living, he worries that no one will spend the time to read all the details of the facilities his resort has to offer. Wanting to have the greatest impact, Alejondro focuses his creative efforts on the
headline
A(n) ____ is a concept, philosophy, or image.
idea
The _____ design element of an advertisement is used to attract attention, communicate an idea quickly, or communicate ideas that are difficult to put into words; the ____ is the physical arrangement of the illustration, headline, subheadline, body copy, and the signature.
illustration; layout
The manufacturers of Miracle-Gro have square boxes of the plant food that serve as a flower-pot liner. The customer just puts the box inside the flower pot, fills it with potting soil, and then adds water. The Miracle-Gro chemical is activated by the water and begins feeding the plant. This would be an example of ____ packaging.
innovative
Facilities, factories, and production lines with very large equipment are all classified as
installations
In order to manufacture its vehicles, Toyota needs to purchase large robotic arms that become permanent fixtures in their assembly plants. These robotic arms are best described as
installations
Advertising that aims to create a more favorable view of a company as a whole in the eyes of various stakeholders is called ____ advertising.
institutional
If Domino's uses digital media along with more traditional newspaper ads to create a more synchronized and consistent message for customers, it is most likely engaging in
integrated marketing communications.
Scenario 10.1Use the following to answer the questions. Megabus is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound bus line, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on a NeOn bus from Buffalo, New York, to New York City is $50.00 round trip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greyhound's traditional line is that there are more departure times and more stops in smaller towns along the way.Refer to Scenario 10.1. Casey is searching the website of Megabus.com for the schedule and fares of a trip between Buffalo, New York, and New York City. Casey is most likely in which of the following stages of the product adoption process?
interest
New introductory promotion is most likely to be used during the ____ stage of the product life cycle.
introduction
For most products, a(n) ____ relationship exists between the price of a particular product and the quantity demanded.
inverse
A product is a price leader when
it is sold at less than cost in the hope that sales of other products will increase.
Head nodding, winking, hand gestures, and arm motions are all forms of ____ communication.
kinesic
While Alec's grandfather still prefers using a land line, he just bought his first cell phone. Alec's grandfather is most likely oriented toward the past and is a member of the ____ group.
laggards
Jenna Reese is working on developing a magazine advertisement for Planet Fitness, a health and fitness club. She knows what she wants the advertisement to say and the illustrations she wants to use, but she is having a tough time putting it all together. Jenna is having trouble determining the
layout
An advertiser that wanted to use a medium that allows for good reproduction quality, a long life to its message, demographic selectivity, and the ability to provide detailed information would likely choose
magazines
In marketing, family packaging means
making all of a company's or product line's packaging look similar.
Everything But Water, a retailer of swimwear, employs a commonly used cost-based pricing method called
markup pricing.
The Kia Soul automobile is currently positioned as a vehicle for young adults. Kia's message to the target market is that it is exciting, youthful, and trendy. However, Max and his friends who are 20-somethings just like the music and the hamster spokescharacters. They don't care about the car itself. The message that Kia originally encoded and the meaning Max and his friends ultimately decoded
may be different because of noise.
A list of the exact magazines, newspapers, and television stations in which an advertisement will appear, along with the dates and times, is a(n)
media plan
Pharmaceutical firms often employ _______________ to inform doctors and hospitals about new drugs and market their benefits.
missionary salespeople
One of Cory's responsibilities as a marketing manager for a motorcycle parts manufacturer is to maintain market share. Cory believes that the company's products are most likely in the maturity stage of the product life cycle. In order to maintain market share, Cory should suggest that the company requires
moderate to large advertising expenditures.
Georgina recently put her house on the market at an asking price of $260,000. She realizes, however, that in order to sell the house, she may have to use
negotiated pricing.
Ray works as a salesperson at an automobile dealership. He is most likely focused on
new-business sales.
Zack Pride is an experienced salesperson who has worked for the same company for 20 years. When he is informed that he must attend a training seminar the following Tuesday, he believes it will most likely be about
new-product information.
During a one-minute television ad for Adidas, the National Weather Service interrupts to announce a flash flood warning for surrounding counties. Such an occurrence is an example of ____ in the communication process.
noise
Ben is responsible for the promotions and public relations of his firm, which produces rubber tires. A recent development in technology may change the way in which the rubber for tires is produced, allowing it to be sourced from the roots of dandelion plants. Ben would like to have a story run on the evening news or in the local newspaper about this development, but he knows that this story is likely to be rejected by media personnel because the material is
not newsworthy.
Greg is responsible for the marketing promotions of a small firm of consultants. It is most likely that his firm will use ____ to create and implement its advertising campaigns.
one or two individuals
Generally, promotion mixes for companies with extremely limited promotional budgets tend to concentrate on
personal selling
Organizations that sell products to industrial markets or a few wholesalers tend to focus their promotion efforts on
personal selling
The two major types of product advertising are
pioneer and competitive.
Paul has just finished compiling a list of potential customers and evaluating their ability, willingness, and authority to buy. He knows his next step in the personal selling process is to
preapproach
Blue Bunny produces a variety of ice cream flavors and lines of varying qualities. The higher quality ice cream varieties are priced higher than the basic ones. Blue Bunny is using ____ to price its ice cream.
premium pricing
If promotion does not do its job of stimulating demand, then the
price of the promoted product is likely to increase.
All of the following are psychological techniques except
price skimming.
Scenario 12.2Use the following to answer the questions.Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Ray-Ban lines that are sold through more selective stores. In determining the price for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands.Refer to Scenario 12.2. Given Ray-Ban's plan for positioning the new sunglass line, they should use a ____ strategy when introducing their new product.
price-skimming
A marketer is most likely to set prices according to a cash-flow objective when a
quick return on investment is desired.
Minerals, chemicals, timber, and agricultural products are considered
raw materials
Fruit of the Loom is launching a new advertising campaign. Within the first six months of the campaign, the media planners want the new advertisement's _____ to be 25% of the target market and the _____ to be four times.
reach; frequency
A major reason why Best Buy stopped using ___________ is because consumers perceived the redemption process as too complicated. It was also easy for them to forget about. Therefore, it had minimal use as a sales promotion method.
rebates
Factors such as climate, seasons, and holidays tend to lead to the promotional objective of
reducing sales fluctuations.
Convenience products are
relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort.
Alex is a sales manager for a wholesale auto parts company. To motivate his sales force to increase their sales to retailers, he has created a(n) _____ where he will give the salesperson with the most dollar sales in the next month a two-night stay at a nearby resort hotel.
sales contest
Hormel Food Corp decided to put a much larger share of its promotion budget into ____ because of the heavy reliance it will be placing on coupons in the second quarter.
sales promotion
Quizno's is conducting a contest in which customers are asked to name a new sandwich. The winner gets a free sandwich each day for one year and an appearance in one of the company's TV commercials. This contest illustrates Quizno's use of the ____ elements of the promotion mix.
sales promotion
When a manufacturer rewards retailers based on the number of pieces moved through their scanners, this sales promotion method is known as a
scan-back allowance.
When individuals' behaviors are tracked from television sets to checkout counters using equipment provided by the marketer, this is known as
single-source data.
During the maturity stage
some competitors are forced out.
A new soft drink company took out a national advertisement announcing its new butterscotch-flavored soda. However, while people in one part of the country recognized they were talking about a soft drink, others believed it was an ice cream drink. Still others use the term to refer to something mixed with alcoholic drinks. Therefore, there was much confusion about the term and what it means. The mistake here lies with the
source
In the Gillette advertisement that claims, "Gillette, the best a man can get," Gillette is the communication
source
As Brenda and Troy search for a new home, they are interested only in houses built by a particular builder. This purchase is characteristic of a(n) ____ product.
specialty
The Gomez are going on a vacation back to Texas. When they lived there, Gabiella Gomez loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gabriella, Blue Bell represents a(n) ____ product.
specialty
When a copywriter and an artist combine the copy with the visual material for a television commercial, it usually is done through use of a
storyboard
Target has worked closely with suppliers such as Calphalon to offer customers a high-quality, branded product that is only available in Target stores. Due to these partnerships, Target has established a high level of perceived _______ among their customers since they provide a large range of brand-name merchandise at reasonable or below-competition prices.
value
The Palace Confectionary Co is a small business located in the northeastern United States. The owner of Palace Confectionary is calculating the projected costs for the coming year. There is rent for the building; salaries for the retail employees; raw materials of sugar, chocolate, and other ingredients; wrappers for packaging of individual pieces of candy; boxes; and radio advertising. Palace's ______ are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers.
variable costs
Marginal analysis involves examining
what happens to a firm's costs and revenues when production is changed by one unit.
Scenario 12.2Use the following to answer the questions.Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Ray-Ban lines that are sold through more selective stores. In determining the price for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands.Refer to Scenario 12.2. 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
Scenario 17.1 Use the following to answer the questions. Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to various motorcycle retail stores around the country. Jafrum does not manufacture these items, but sells them to other retailers and also sells its merchandise through its website. Larry Thompson is one of the salespeople for Jafrum, and is responsible for obtaining new customers, increasing sales to current customers, and visiting the retail stores throughout the country. Recently, he has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by adding new customers. Larry's current compensation is based on a $1,000 per month draw, plus 5% of all sales over $100,000. His salary last year totaled $42,000. Management has given Larry the choice of going to a compensation plan where he will earn 15% of all sales, but no draw. Refer to Scenario 17.1. Larry selects several motorcycle stores that are not currently his customers. He then obtains and analyzes information about the current brands of motorcycle accessories they stock, their sales trends, and credit history. Larry is engaged in which of the following?
The preapproach
A content analysis of an organization's messages, readability studies, and readership surveys are all tools used to conduct a(n)
communications audit.
If local Shell gasoline stations look at BP stations' prices as the primary method of determining its own prices, Shell is using ________
competition-based pricing, which considers costs to be less important than competitor's prices.
When Volvo's advertising campaign mentions the Volvo S60 has the highest safety rating of any European sedan, it is using _______ advertising.
competitive
Logos, business cards, stationery, signs, and promotional materials that make firms immediately recognizable comprise their
corporate identity materials.
Customer density and distribution are important factors in
creating sales territories.
A package of aluminum foil at HEB supermarket has only a white package with black letters stating "aluminum foil." This product is an example of a ____ brand.
generic
Achieving greater penetration of the market is typically a business goal during the ____ stage of the product life cycle.
growth
Zach is developing a print advertisement for Aflac. 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
Pricing strategies and methods
help direct and structure the selection of a final price.
Nate is an operations unit manager for Morningstar Foods. So far in developing his monthly budget, he has identified the following costs: overhead at $120,000; packaging at $70,000; advertising at $60,000; salaries at $400,000; food production at $90,000; and distribution at $22,000. The fixed costs in this situation would be
overhead, advertising, and salaries.
Paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation is
personal selling
Paid personal communication that attempts to inform and persuade customers to purchase products in an exchange situation is called
personal selling.
Signs, counter pieces, racks, and self-service cartons are all forms of
point-of-purchase displays.
An evaluation performed before an advertising campaign begins is a
pretest
Olivia has been doing research for a smartphone manufacturing company. She has just been reviewing the results of several focus groups and has found that for customers, value is a function of the product's
price and quality attributes.
A spokesperson for Mott's apple juice encourages television audiences to use its juice in the winter by serving it hot with a cinnamon stick. In this instance, Mott's is using promotion to
reduce sales fluctuations.
An ad for a multivitamin that claims, "We still bring you everything you need to get through your day in one vitamin," would most likely be considered ____ advertising.
reminder
Mr. Sandwich offers customers a card that allows them to have a free sub for every seven that have been purchased and provides various discounts throughout the year. The primary promotional objective of programs such as this is
retaining existing customers.