Test 2 study guide
In which of the following does a producer direct marketing activities (primarily personal selling and trade promotion) toward channel members?
A push strategy
Which of the following is an example of vertical channel conflict?
A retailer complaining about receiving damaged electronics goods from a wholesaler
The primary purpose of _________ websites is to do more than just sell products or move them closer to a direct purchase.
brand community
After segmenting and defining their target markets, retailers must then decide ________.
how they will differentiate and position themselves
The goal of a push strategy is to _________.
induce channel members to carry and promote the product
Personal selling can be more effective than advertising in complex selling situations because it is __________.
interpersonal
Email marketing ________.
is an important business-to-business tool
Direct mail marketing ________.
is still heavily used by most retailers
P&G sales reps are integrated into Customer Business Development (CBD) teams. Each CBD team is assigned to a major P&G customer, such as Walmart, Safeway, or CVS Health. P&G has adopted a ________ sales force structure.
market
The massive shift in how and where people buy calls for _________.
massive shifts in how store retailers operate
In the context of advertising media, ________ is a measure of the percentage of people in the target market who are exposed to an ad campaign during a given period of time.
reach
A ________ has from 50 to more than 100 stores, including two or more full-line department stores.
regional shopping mall
Before meeting and greeting a buyer, a salesperson should ________.
research the buyer to prepare for the meeting
A direct marketing channel ________.
sells directly to the consumer
Which of the following indicates the length of a channel?
The number of intermediary levels in the channel
Which of the following correctly defines a product? A. A product is anything offered to a market that might satisfy a need or want. B. Products include tangible objects and services but not events or people. C. Products are only tangible objects offered to a market to satisfy a want or need. D. A product is not a part of the overall market offering. E. Products have two levels: the actual product and the augmented product.
A. A product is anything offered to a market that might satisfy a need or want.
Which is the final stage of the product life cycle? A. Decline B. Introduction C. Maturity D. Commercialization E. Growth
A. Decline
Which link in the service profit chain involves employee selection and training? A. Internal service quality B. Satisfied and loyal customers C. Satisfied and productive suppliers D. Healthy service profits and growth E. Greater service value
A. Internal service quality
__________ protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A. Product stewards B. Product managers C. Ombudsmen D. Brand managers E. Attorneys
A. Product stewards
Which of the following statements is true regarding standardizing products for international markets? A. Standardization decreases product design, manufacturing, and marketing costs. B. Standardization increases product design, manufacturing, and marketing costs. C. Standardization helps a company develop a different image in different countries. D. Standardization ensures that products will succeed in foreign markets. E. Markets and consumers all over the world are alike, so a company should always standardize international products.
A. Standardization decreases product design, manufacturing, and marketing costs.
Laws prohibit ________, meaning a manufacturer cannot require dealers to charge a specified retail price for its products. A. resale price maintenance B. price-fixing C. deceptive pricing D. price discrimination E. predatory pricing
A. resale price maintenance
New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing? A. Value-added pricing B. EDLP C. Cost-plus pricing D. High-low pricing E. Break-even pricing
A. Value-added pricing
________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Advertising
At which step in the personal selling process does a salesperson meet the customer for the first time?
Approach
What is the first step of the new product development process? A. Idea screening B. Idea generation C. Concept testing D. Marketing strategy and development E. Concept development
B. Idea generation
Which of the following statements about new product development strategy is correct? A. A new product will succeed as long as it is priced correctly. B. Innovation can be very expensive and very risky. C. New products are not a major source of growth for companies. D. Good advertising creates successful new products. E. New products are usually successful because consumers like new things.
B. Innovation can be very expensive and very risky.
Which of the following offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space, and capture a larger market share? A. Co-branding B. Multibranding C. Licensing D. Line extension E. Brand extension
B. Multibranding
Services cannot be stored for future use. Which characteristic of services does this describe? A. Intangibility B. Perishability C. Tangibility D. Inseparability E. Variability
B. Perishability
In which stage of the new product development process would a company use a hackathon? A. Idea screening B. Product development C. Idea generation D. Marketing strategy development E. Commercialization
B. Product development
Adding a new product line to an existing portfolio means that the line has _________. A. extended product line length B. increased product mix width C. altered its product mix consistency D. increased product support services E. differentiated its product mix depth
B. increased product mix width
Installing an innovation management system to collect, review, evaluate, and manage new product ideas represents a(n) __________ approach to new product development. A. crowdsourced B. intrapreneurial C. customer-centered D. systematic E. sequential
D. systematic
When a product is in the maturity stage of the PLC, the company tries to increase consumption by finding new users and new market segments for its brands. This attempt to increase consumption is known as ___________. A. milking the market B. modifying the market C. market maintenance D. market stimulation E. harvesting the market
B. modifying the market
Bath & Body Works uses _________ pricing when the company offers "three-fer" deals on its products (such as soaps, lotions, and moisturizers). A. captive-product B. product bundle C. two-part D. by-product E. product line
B. product bundle
Sale days, early-bird savings, and bonus earnings for store credit-card holders are promotions employed in which type of pricing strategy? A. Value-added pricing B. High-low pricing C. Everyday low pricing D. Cost-based pricing E. Good-value pricing
B. High-low pricing
During which stage of the PLC do firms decide whether to maintain, harvest, or drop products? A. Maturity B. Introduction C. Decline D. Growth E. Product development
C. Decline
When, if ever, is price discrimination allowed? A. If the seller can prove that it is allowable in certain states and local retailing areas, then it is legal. B. If the seller can substantiate that it is distributing internationally, then it is legal. C. If the seller can prove that its costs are different when selling to different retailers, then it is legal. D. If the seller can prove that its revenue is affected when selling to similar retailers, then it is legal. E. If the seller is selling via the Internet as its main channel, then it is legal.
C. If the seller can prove that its costs are different when selling to different retailers, then it is legal.
Which of the following statements regarding packaging is correct? A. Product safety is not impacted by packaging. B. Packaging has not been influenced by environmental concerns. C. Innovative packaging can give a company an advantage over competitors and boost sales. D. packaging has not yet evolved to allow brands to interact directly with customers. E. Packaging does not provide any marketing opportunities.
C. Innovative packaging can give a company an advantage over competitors and boost sales.
________ marketing means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter. A. Intangible B. External C. Interactive D. Inactive E. Internal
C. Interactive
__________ is one major objective associated with a market-penetration pricing strategy. A. Avoiding everyday low pricing B. Skimming off small but profitable market segments C. Winning large market share D. Attracting buyers willing to pay a higher price E. Preventing customer dissatisfaction
C. Winning large market share
Which of the following describes layers of intermediaries performing some of the work to bring the product and its ownership closer to the final buyer?
Channel levels
In which stage of the selling process does the salesperson ask for an order?
Closing
When we see Hello Kitty on children's clothing, Disney characters on lunchboxes, and SpongeBob SquarePants on breakfast cereals, which form of brand sponsorship is being used? A. Store branding B. National branding C. Private branding D. Licensing E. Co-branding
D. Licensing
Of the following, which is true about pricing? A. Companies have no obligation to consider broader societal pricing concerns. B. Federal law is the overriding authority on pricing. C. Companies do not need to communicate reasons for price increases to customers. D. Price competition is a core element of our free-market economy. E. Companies usually are free to charge whatever prices they wish.
D. Price competition is a core element of our free-market economy.
________ is a measure of the sensitivity of demand to changes in price. A. Discount B. Variable cost C. A demand curve D. Price elasticity E. Price inelasticity
D. Price elasticity
Which type of consumer products and services are purchased less frequently, with consumers carefully comparing competing products in terms of suitability, quality, price, and style? A. Specialty products B. Industrial products C. Convenience products D. Shopping products E. capital products
D. Shopping products
Adjusting prices in real time to fit individual customer situations, locations, and buying behaviors is known as ________ pricing. A. psychological B. promotional C. cash rebate D. personalized E. segmented
D. personalized
The Ford Mustang is offered in several different models. Ford uses __________ pricing to determine the price steps between the different models. A. optional-product B. captive-product C. two-part D. product line E. product bundle
D. product line
__________ is perhaps the biggest advantage of social media.
Engagement and social sharing capabilities
Product mix width refers to ________. A. adding more items within the present range of the line B. the total number of items a company carries within all of its product lines C. lengthening the product line beyond its current range D. the number of different product lines the company carries. E. the number of items in the product line
D. the number of different product lines the company carries.
Which of the following incorporates the advantage of brands operating in different categories with the combined brands creating broader consumer appeal and greater brand equity? A. Distributor branding B. Private branding C. National branding D. Co-branding E. Store branding
D. Co-branding
Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations function?
Development
What is the overall goal when retailers choose their product assortment?
Differentiate the retailer while matching target shoppers' expectations
________ involves the use of technology-intensive platforms such as the internet, mobile networks and devices, and social media to engage directly with carefully targeted individual consumers, consumer communities, and businesses.
Digital marketing
When Doritos comes out with new flavors of its tortilla chips, what brand development strategy does it employ? A. Brand extension B. Store brand C. New brand D. Multibranding E. Line extension
E. Line extension
Kroger, headquartered in Cincinnati, Ohio, is one of the nation's largest grocery chains. It owns several brands sold in its stores, including Private Selection, Heritage Farm, and Simple. These brands represent which type of brand sponsorship? A. Private labels B. Co-brands C. Generic brands D. Manufacturer's brand E. Private brands
E. Private brands
Which of the following is considered part of an augmented product rather than that of an actual product or core customer value? A. Design B. Brand name C. Packaging D. Product features E. Warranty
E. Warranty
Ad agency Young & Rubicam's BrandAsset Valuator measures brand strength along four consumer perception dimensions. Brand ________ is defined in terms of how highly consumers feel the brand meets their needs. A. equity B. esteem C. differentiation D. knowledge E. relevance
E. relevance
To create successful new products, a company must _______. A. cut costs to keep the price of new products low while delivering acceptable quality B. obtain successful products through acquisitions instead of doing internal development C. focus its new product development efforts only on consumers and deliver value D. spend more on research and development (R&D) than its competitors and understand its consumers E. understand its consumers, markets, and competitors and develop products that deliver superior value to customers
E. understand its consumers, markets, and competitors and develop products that deliver superior value to customers
__________ is a retailing technique of carefully orchestrating the store's layout and displays, background music, colors, and smells.
Experiential retailing
________ are the objectives of business promotions.
Generating business leads, stimulating purchases, rewarding customers, and motivating salespeople
Which of the following recognizes that improved logistics mandates teamwork across the company and the entire supply chain?
Integrated supply chain management
Which type of distribution strategy involves stocking the product in as many outlets as possible?
Intensive
Cookies that track what consumers do in the digital space and apps that track the real-time locations of consumers have raised concerns about which public policy issue?
Invasion of privacy
__________ is perhaps the toughest public policy issue now confronting the direct marketing industry.
Invasion of privacy
Producers of a strong brand sometimes sell it to dealers only if the dealers will take some or all of the rest of its line. This is known as full-line forcing. Which of the following statements is true regarding full-line forcing?
It may or may not be legal.
Which of the following statements about blogs is correct?
Many marketers now use influencer blogs.
Which of the statements is true regarding media and message decisions?
Media and message decisions should be closely coordinated.
Successful retailers of the future must adopt which type of buying experience that is both seamless and integrates multiple types of media?
Omni-channel marketing
Which of the following statements is true about public relations and a company's overall integrated marketing communications efforts?
PR should be blended smoothly with promotion activities.
________ advertising is used when a company is attempting to build brand preference and prompt customers to purchase now.
Persuasive
Which of the following is NOT a common trade promotion tool?
Price packs
Which of the following BEST describes a company's efforts to engage customers, persuasively communicate customer value, and build customer relationships?
Promotion mix
_________ is used to build and maintain national or local community relationships and is one of the functions of public relations.
Public affairs
Which consumer promotion tool is like coupons, except that the price reduction occurs after the purchase rather than at the retail outlet?
Rebates
Which of the following describes the activities that play an important role in connecting brands to consumers in the final phases of the buying process?
Retailing
________ are short-term incentives to encourage the purchase or sale of a product or service
Sales promotions
Which of the following statements about personal selling is correct?
Salespeople are often the only direct contact with a customer.
Which of the following statements is correct regarding sellers and their use of digital marketing?
Sellers have opportunities to engage in real-time marketing.
_________ entails managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers.
Supply chain management
Which is an action taken to address consumer privacy issues?
The General Data Protection Regulation
Which of the following statements about sales promotions is correct?
The heavy use of sales promotions has resulted in promotion clutter.
Which of the following statements about public relations is correct?
The lines between advertising and public relations are becoming more blurred.
Which of the following is related to antitrust concerns?
The size and dominance of companies like Amazon, Apple, and Google
Which is an example of a retailer using augmented reality?
The Sherwin-Williams Color Visualizer app lets you "Color It Before You Paint It!" by uploading actual room images and painting them virtually.
What is the definition of consumer omni-channel navigation behavior?
The buyer's use of multiple marketing channels, both digital and nondigital, across stages of the consumer buying decision process
What is the goal of advertising?
To help move consumers through the buying process
After recruiting and selecting salespeople, what is the next major step in sales force management?
Training salespeople
Organic search results ________.
are selected and ranked by algorithms as most useful and relevant to the search term and searcher
Over the past decade, in one campaign after another, Samsung has run ads smugly depicting iPhone owners as either disappointed in their phones or secretly envious of people using the latest Galaxy model. This is an example of ________ advertising.
comparative
Total digital advertising spending now makes up ________ of all U.S. advertising spending.
over half
Consumers may receive an email, supposedly from their bank or credit card company, saying that their account's security has been compromised. The sender asks consumers to log on to a provided web address and confirm their account and other personal information and then steals this private information. This is a fraudulent practice called ________.
phishing
One consumer promotion tool is _______, which are goods offered either free or at low cost as an incentive to buy a product.
premiums
REI, Williams-Sonoma, and LensCrafters are examples of ________, stores that carry a narrow product line with a deep assortment.
specialty stores
When setting marketing channel objectives, companies should state the objective in terms of ________.
targeted levels of customer service
The structure decision is simple if the company sells only one product line to one industry with customers in many locations. In that case the company would use a ________ sales force structure.
territorial
When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of the types of intermediaries, the number of intermediaries, and __________.
the responsibilities of channel members
Firms spend ________ on personal selling as they do on advertising.
up to three times as much
The digital version of word-of-mouth marketing that involves creating videos, ads, and other marketing content that is so infectious that customers will seek them out or pass them along to their friends is called _______.
viral marketing
To set its sales force size, a company can first group accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account. It then determines the number of salespeople needed to call on each class of accounts the desired number of times. This is called the ________ approach.
workload
It's time for the Super Bowl, and the end-of-the-aisle displays at the supermarket feature chips, dips, and soft drinks. What type of sales promotion tool is this?
Point-of-purchase
