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300 Cards in this Set
- Front
- Back
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______ is the amount of money charger for a product or service. a. experience curve b. demand curve c. price d. wage e. salary |
c. price |
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Price is the only element in the marketing mix that produces_________ a. revenue b. variable costs c. expenses d. fixed costs e. stability |
a. revenue |
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Consumer perceptions of the product's value set the ______ for prices. a. demand curve b. floor c. ceiling d. variable cost e. image |
c. ceiling |
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Product costs set a(n) _________ to a product's price. a. demand curve b. experience curve c. floor d. ceiling e. break-even cost |
c. floor |
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Which of the following is a customer-oriented approach to pricing? a. value-based pricing b. sealed-bid pricing c. break-even pricing d. target profit pricing e. C and D |
a. value-based pricing |
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___ uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing. a. value-based pricing b. target costing c. variable costing d. price elasticity e. product image |
a. value-based pricing |
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In _____, price is considered along with the other marketing mix variables before the marketing program is set. a. target pricing b. value-based pricing c. variable costs d. price elasticity e. building the marketing mix |
b. value-based pricing |
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Value-based pricing is the reverse process of _____. a, variable cost pricing b. cost-plus pricing c. cost-based pricing d. good-value pricing e. value-added pricing |
c. cost-based pricing |
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With _____, price is set to match consumers' perceived value. a. variable cost pricing b. cost-plus pricing c. cost-based pricing d. good-value pricing e. value-added pricing |
d. value-based pricing |
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Measuring ______ can be difficult. A company might conduct surveys or experiments to test this in the different products they offer. a. price elasticity b. demand curve c. perceived value d. break-even pricing e. quantity supplied |
c. perceived value |
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Underpriced products sell very well, but they produce less revenue than they would have if price were raised to the _____ level. a. perceived value b. value-based c. variable d. demand curve e. price-floor |
a. perceived value |
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_____ involves charging a constant low price with few or no temporary price discounts. a. high-low pricing b. target pricing c. cost-plus pricing d. everyday low pricing (EDLP) e. penetration pricing |
d. everyday low pricing (EDLP) |
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_____ is a company's power to maintain or even raise prices without losing market share. a. variable cost b. pricing power c. target cost d. fixed cost e. unit cost |
b. pricing power |
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To maintain a company's _____, a firm must retain or build the value of its marketing offer. a. variable cost b. pricing power c. target cost d. fixed cost e. price elasticity |
b. pricing power |
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When there is price competition, many companies adopt ____ rather than cutting prices to match competitors/ a. pricing power b. value-added pricing strategies c. fixed costs d. price elasticity e. image pricing |
b. value-added pricing strategies |
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_____ pricing is product driven. The company designs what it considers to be a good product, totals the expenses of making the product, and sets a price that covers costs plus a target profit. a. value-based b. fixed cost c. cost-based d. variable e. skimming |
c. cost-based |
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Fixed costs _____ as the number of units produced increases. a. decrease b. increase c. divide in half d. remain the same e. increase at a diminishing rate. |
d. remain the same |
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Costs that do not vary with production or sales level are referred to as ___ a. fixed costs b. variable costs c. target costs d. total costs e. unit costs |
a. fixed costs |
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Costs that vary directly with the level of production are referred to as ____. a. fixed costs b. variable costs c. target costs d. total costs e. unit costs |
b. variable costs |
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Rent, electricity, and executive salaries are examples of ______. a. fixed costs b. variable costs c. total costs d. accumulated costs e. marketing costs |
a. fixed costs |
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_____ are the sum of the _____ and _____ for any given level of production. a. Fixed costs; variable; total costs b. Fixed costs; total; variable costs c. Variable costs; fixed; total costs d. total costs; fixed; variable costs e. break-even costs; fixed; total costs |
d. total costs; fixed; variable costs |
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Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This is known as _______. a. variable costs b. cost-plus pricing c. value-based pricing d. break-even pricing e. penetration pricing |
b. cost-plus pricing |
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Which of the following is a cost-based approach to pricing? a. value-based pricing b. going-rate pricing c. break-even pricing d. good-value pricing e. A and C |
c. break-even pricing |
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Break-even pricing, or a variation called ____, is when the firm tries to determine the price at which it will break even or make the profit it is seeking. a. competition-based pricing b. target profit pricing c. fixed cost d. value-based pricing e. customer-based pricing
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b. target profit pricing |
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Which of the following is an external factor that affects pricing decisions? a. the salaries of production management b. competiiton c. the salaries of finance management d. overall pricing objectives e. the company's overall marketing strategy |
b. competition |
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_____ that influence(s) pricing decisions include(s) the nature of the market and demand and competitors' prices. a. internal factors b. elasticity c. external factors d. target factors e. domestic factors |
c. external factors |
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Common ____ objectives include survival, current profit maximization, market share leadership, and leadership building. a. pricing b. management c. marketing mix d. cost-plus pricing e. image |
a. pricing |
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With target costing, marketers will first ____ and then ______. a. build the marketing mix; identify the target market b. identify the target market; build the marketing mix. c. design the product; determine its cost d. use skimming pricing; penetrating pricing e. determine a selling price; target costs to ensure that the price is met |
e. determine a selling price; target costs to ensure that the price is met |
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Price setting is usually determined by _____ in small companies. a. top management b. marketing departments c. sales departments d. divisional managers e. cross-functional teams |
a. top management |
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Price setting is usually determined by _____ in large companies. a. top management b. divisional managers c. product-line managers d. purchasing departments e. both B and C |
e. both B and C
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Under ______, the market consists of many buyers and sellers trading in a uniform commodity such as wheat, copper, or financial securities. a. pure competition b. monopolistic competition c. oligopolistic competition d. a pure monopoly e. anti-trust agreement |
a. pure competition |
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Under _______, the market consists of many buyers and sellers who trade over a range of prices rather than a single market place. a. pure competition b. monopolistic competition c. oligopolistic competition d. pure monopoly e. socialism |
b. monopolistic competition |
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Under ________, the market consists of a few sellers who are highly sensitive to each other's pricing and marketing strategies. a. pure competition b. monopolistic competition c. oligopolistic competition d. pure monopoly e. capitalism |
c. oligopolistic competition |
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Nonregulated monopolies are free to what the market will bear. However, they do not always charge the full price for a number of reasons. What is NOT one of those reasons? a. They don't want to attract competition b. They desire to penetrate the market faster with a low price c. They have a fear of government regulations d. They want to encourage government regulations e. They want to please a large group of consumers |
d. They want to encourage government regulations |
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The relationship between the price charged and the resulting demand level can be shown as the _________. a. demand curve b. variable curve c. target cost d. break-even pricing e. experience curve |
a. demand curve |
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Consumers usually perceive higher-priced products as ________. a. out of reach for most people b. having high quality c. having high profit margins d. having cost-based prices e. being in the introductory stage of the product life cycle |
b. having high quality |
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_______ describes how responsive demand will be to a change in price. a. price elasticity b. break-even pricing c. demand curve d. target cost e. supply |
a. price elasticity |
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If demand hardly changes with a small change in price, we can say the demand is ________. a. variable b. inelastic c. value-based d. at break-even pricing e. market penetrating |
b. inelastic |
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If demand changes greatly with a small change in price, we say the demand is ______. a. inelastic b. variable c. elastic d. value-based e. fixed |
c. elastic |
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When setting prices, the company must consider factors in its external environment. ______, including factors such as boom or recession, inflation, and interest rates affecting pricing decisions, can have a strong impact on the firm's pricing strategies. a. demand curve b. economic conditions c. target costing d. value-based pricing e. competitors |
b. economic conditions |
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When setting prices, the company must consider factors in its external environment. The company should set prices that will allow ______ to receive a fair profit. a. resellers b. producers c. consumers d. the elderly e. competitors |
a. resellers |
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When companies set prices, the government and social concerns are two ______ affecting pricing decisions. a. external factors b. internal factors c. economic conditions d. demand curves e. temporary influences |
a. external factors |
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A company sets not a single price, but rather a ______ that covers different items in its line that change over time as products move through their life cycles. a. pricing by-product b. pricing structure c. pricing loop d. pricing cycle e. pricing bundle |
b. pricing structure |
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Companies usually develop ______ rather than single products. a. product families b. product groupings c. product lines d. product brands e. product images |
c. product lines |
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A marketer must be familiar with the 5 major product mix pricing situations. Which of the following is NOT one of them? a. product line pricing b. optional-product pricing c. captive-product pricing d. unbundled product pricing e. by-product pricing |
d. unbundled product pricing |
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Which of the following does NOT support a market-skimming policy for a new product? a. The product's quality and image must support its higher price. b. Enough buyers must want the products at that price. c. Competitors should not be able to undercut the high price. d. Competitors should be allowed to enter the market easily. e. The cost of producing a smaller volume should not be so high that it negates the advantage of charging more per unit |
d. Competitors should be allowed to enter the market easily |
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All of the following conditions support market-penetration pricing EXCEPT which one? a. The market must be highly price sensitive b. Production and distribution costs must fall as sales volume increases c. The products' quality and image must support the price d. The low price must help keep out the competition e. A low price will produce more market growth |
c. The product's quality and image must support the price |
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A challenge for management in product line pricing is to decide on the price steps between the ______. a. various products in a line b. product mixes c. product groupings d. product lines e. various target markets |
a. various products in a line |
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Many producers who use captive-product pricing set the price of the main product ____ and set ____ on the supplies necessary to use the product. a. low; low markups b. high; low markups c. low; high markups d. high; high markups e. moderately: moderage markups |
c. low; high markups |
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When using price steps, the seller must establish perceived ______ that support the price differences among the products in the line. a. nonprice competition b. quality differences c. quantity levels d. images e. strategies |
b. quality differences |
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When management at Yamaha Motorcycles makes decisions on which type of saddlebags, handlebars, and seats for its bikes, they become engaged in _____. a. product line pricing b. optional-product pricing c. captive-product pricing d. by-product pricing e. value-based pricing |
b. optional-product pricing |
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Companies involved in deciding which item to include in the base price and which to offer as options are engaged in ______ pricing. a. product bundle b. optional-product c. captive-product d. by-product e. skimming |
b. optional-product |
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When Kodak sets the general price range of its cameras low and its related film high, it is practicing ______. a. market-penetration pricing b. market-skimming pricing c. product line pricing d. captive-product pricing e. price bundling |
d. captive-product pricing |
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Hotline Long Distance Service uses captive-product pricing for its phone call charges. Because this is a service, the price is broken into a fixed rate plus a ______. a. fixed rate usage b. variable usage rate c. standard usage rate d. volume usage rate e. fixed fee |
b. variable usage rate |
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When amusement parks and movie theaters charge admission plus fees for food and other attractions, they are following a(n) ______ pricing strategy. a. by-product b. optional-product c. captive-product d. skimming e. penetration |
c. captive-product |
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When product bundle pricing, sellers can combine several products and offer the bundle ______. a. as a working unit b. at a reduced price c. as a complete self-service package d. as a reward to loyal customers e. as a segmented pricing |
b. at a reduced price |
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A quantity discount is a price reduction to buyers who purchase ______. a. frequently b. large volumes c. close outs d. inferior merchandise e. superior merchandise |
b. large volumes |
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When a ski and snowboarding shop offers a price reduction to customers who buy during off-peak periods throughout the year, the firm is giving a(n) ____ discount. a. functional b. seasonal c. annual d. allowance e. credit |
b. seasonal |
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When General Motors provides payments or prices reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ______. a. trade discount b. functional discount c. allowance d. promotional allowance e. trade credit |
d. promotional allowance |
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By definition, this type of pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. a. segmented pricing b. variable pricing c. flexible pricing d. cost-plus pricing e. reference pricing |
a. segmented pricing |
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The New Age Gallery has 3 admission prices for students, adults, and seniors. All 3 groups are entitled to the same services. This form of pricing is called ______. a. time pricing b. location pricing c. customer-segment pricing d. revenue management pricing e. generational pricing |
c. customer-segment pricing |
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When a firm varies its price by the season, month, day, or even hour, it is using ____ pricing. a. revenue management b. penetration c. variable d. time e. value-added |
d. time |
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Airlines, hotels, and restaurants call segmented pricing _______. a. time pricing b. yield management c. location pricing d. segmented e. service pricing |
b. yield management |
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Which of the following refers to the prices that a buyer carries in his or her mind and refers to when looking at a given product? a. psychological prices b. reference prices c. promotional prices d. geographical prices e. dynamic prices |
b. reference prices |
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What type of pricing is being used when a company temporarily prices it product below the list price or even below cost to create buying excitement and urgency? a. segmented pricing b. psychological pricing c. referent pricing d. promotional pricing e. dynamic pricing |
d. promotional pricing |
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Under which type of geographic pricing strategy does each customer pay the exact freight for the product from the factory to its destination? a. basing-point pricing b. freight-absorption pricing c. FOB-origin pricing d. dynamic pricing e. zone pricing |
c. FOB-origin pricing |
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With the flexibility to adjust prices on a wide range of goods based on demand that the Internet offers, some companies are reversing the fixed pricing trend and using _____. a. geographical pricing b. dynamic pricing c. promotional pricing d. segmented pricing e. psychological pricing |
b. dynamic pricing |
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Most companies that conduct international business _______ to _________. a. adjust their prices; take local market conditions into considerations b. use promotional pricing; create excitement in new markets c. use geographical pricing; reduce delivery costs d. set a uniform price; maintain a consistent product image e. initiate price cuts; compensate for import tariffs and taxes |
a. adjust their prices; take market conditions into consideration |
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Which of the following is NOT a reason for a company to initiate a price cut? a. to boost sales b. to obtain prestige c. to dominate the market d. to relieve excess capacity e. to influence falling demand |
b. to obtain prestige |
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Which of the following is a reason for a company to raise its prices? a. to address the issue of over-demand for a product b. to win a larger share of the market c. to use excess capacity d. to boost sales volume e. to balance out decreasing costs |
a. to address the issue of over-demand for a product |
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When a competitor cuts its price, a company might decide to ____ if it believes it will not lose much market share or would lose too much profit by cutting its own price. a. reduce its production costs b. reduce its marketing costs c. maintain its current price and profit margin d. increase its marketing budget to raise the perceived value of its product e. increase its production costs to improve the quality of the product |
c. maintain its current price and profit margin |
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Which of the following is NOT on an effective action that a company can take to combat a competitor's price cut on a product? a. reduce price b. raise perceived value c. improve quality and increase price d. bundle products together e. launch a low-price "fighting brand" |
d. bundle products together |
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The Sherman, Clayton, and Robinson-Patman Acts are all federal laws that were enacted to curb the formation of ______. a. monopolies b. oligopolies c. competitive markets d. international markets e. limited partnerships |
a. monopolies |
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Federal legislation on price-fixing required that sellers set their prices ______. a. based on their fixed and variable costs b. without communication with competitors c. to achieve a specified profit margin d. with the intention of putting competitors out of business e. consistently throughout a region |
b. without communication with competitors |
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Price discrimination is legal under which of the following conditions? a. when a manufacturer and reseller have agreed upon a specified retail price for a product b. when a manufacturer sells to retailers in different markets c. if a seller can prove its costs are different when selling to different retailers d. if a seller advertises prices that are not actually available to consumers e. if a seller has not communicated with competitors before announcing prices |
c. if a seller can prove its costs are different when selling to different retailers |
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Which of the following is NOT a typical supply chain member? a. reseller b. customer c. wholesaler d. retailer's creditor e. producer |
e. producer |
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______ the manufacturer or service provider is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service a. downstream from b. upstream from c. separated from d. congruous to e. parallel with |
b. upstream from |
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According to the author, companies would benefit from thinking of a _____ instead of a supply chain. a. supply and demand chain b. demand chain c. channel of distribution d. distribution channel e. physical distribution |
b. demand chain |
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When suppliers, distributors, and customers partner with each other to improve the performance of the entire system, they are participating in a ______. a. value delivery network b. channel of distribution c. supply chain d. demand chain e. supply and demand chain |
a. value delivery network |
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Most producers today sell their goods to _____. a. final users b. final users and marketing members c. intermediaries d. the government at various levels e. competitors |
c. intermediaries |
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A company's channel decisions directly affect every_________. a. channel member b. marketing decision c. customer's choices d. employee in the channel e. competitor's actions |
b. marketing decision |
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Distribution channel decisions often involve _____ with other firms. a. short-term commitments b. long-term commitments c. major problems d. financial losses e. disagreements |
b. long-term commitments |
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Joe Blanco, like other producers, has discovered that his intermediared usually offer his firms more than it can achieve on its own. Which of the following is most likely an advantage that Joe creates by working with intermediaries? a. financial support b. fast service c. scale of operation d. working relationships with foreign distributors e. strategy development |
b. fast service |
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From the economic system's point of view, the role of marketing intermediaries is to transform the assortment of products made by producers into the assortment of products wanted by ____. a. channel members b. distributors c. consumers d. manufacturers e. marketers |
c. consumers |
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Producers benefit from using intermediaries because they _____. a. offer greater efficiency in making goods available to target markets b. bring a fresh point of view strategy development c. eliminate risk d. are generally backlogged with orders e. refuse to store products for longer than a couple of days |
a. offer greater efficiency in making goods available to target markets |
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Intermediaries play an important role in matching _____. a. dealer with customer b. supply and demand c. product to region d. manufacturer to product e. information and promotion |
b. supply and demand |
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What are the 3 gaps that separate goods and services from those who would use them? a. time, place, and form b. place, possession, and form c. time, place, and possession d. place, time, and need e. place, need, and distribution |
c. time, place, and possession |
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Which of the following is NOT a key function that intermediaries play in completing transactions? a. promotion b. information c. negotiation d. financing e. negotiation |
d. financing |
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Which of the following is NOT a key function that intermediaries play in helping to fulfill a completed transaction? a. physical distribution b. promotion c. financing d. risk taking e. storing goods |
b. promotion |
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In marketing terms, we say that the number of intermediary levels indicates the _______ of a channel. a. depth b. complexity c. involvement d. length e. width |
d. length |
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As a producer of goods, you would most likely be concerned that a greater number of channel levels means _____ and greater channel complexity. a. less profit b. less control c. more potential idea d. higher taxes e. less input |
b. less control |
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All of the institutions in a channel are connected by flows, including physical flow, flow of ownership, payment flow, information flow, and _______ flow. a. promotion b. acquisition c. customer d. return product e. by-product |
a. promotion |
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More than a simple collection of firms connected by various flows, a distribution channel is a(n)_____. a. added value chain b. complex behavioral system c. corporate marketing system d. vertical marketing system e. multichannel system |
b. complex behavioral system |
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An advantage of a channel of distribution over selling direct to consumers is that each channel member plays a ______ in the channel. a. time-saving part b. specialized role c. decisional role d. informational role e. disciplinary role |
b. specialized role |
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______ conflict, which occurs between different levels of the same channel, is more common that _______ conflict, which occurs among firms at the same level of the channel. a. horizontal; vertical b. vertical; horizontal c. contractual; corporate d. corporate; franchise e. wholesales; retailer |
b. vertical; horizontal |
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Historically, conventional channels have lacked the leadership to __________. a. assign channel member roles and attain efficiency b. attain efficiency and assign member roles c. assign member roles and manage conflict d. set standard pricing and promotions e. set standard pricing and packaging |
c. assign member roles and manage conflict |
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A conventional distribution channel consists of one or more _______ producers, wholesalers, and retailers. a. product-related b. independent c. contract d. estranged e. merchant |
b. independent |
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A channel consisting of one or more independent producers, wholesalers, or retailers that are seeking to maximize their own profits even at the expense of profits for the channel as a whole is a ________. a. vertical marketing system b. conventional distribution channel c. independent channel allocation d. vertical distribution structure e. administered vertical marketing system |
b. conventional distribution channel |
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An advantage of a vertical marketing system (VMS) is that it acts as a ____ system. a. unified b. more efficient c. modern d. customer-driven e. task-driven |
a. unified |
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A corporate VMS has the advantage of controlling the entire distribution chain under _______. a. a profit-maximizing strategic plan b. single ownership c. mass distribution d. a few intermediaries e. little contrl |
b. single ownership
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What are the 3 major types of vertical marketing systems? a. corporate, contractual, and chain b. contractual, corporate, and independent c. corporate, contractual, and administered d. administered, independent, and franchised e. corporate, contractual, and task |
c. corporate, contractual, and administered |
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A distinguishing feature of a contractual VMS is that coordination and conflict management among the independent members of the channel are attained through ________. a. oral agreements b. working partnerships c. limited liability corporations d. contractual agreements e. natural competitive forces |
d. contractual agreements |
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The most common type of contractual VMS agreement in business is the _____. a. franchise organization b.vertical marketing system c. conventional marketing channel d. corporate VMS e. scrambled systems |
a. franchise organization |
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Leadership in which type of marketing system is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members? a. horizontal marketing systems b. administered VMS c. corporate VMS d. conventional marketing channel e. dual distribution system |
b. administered VMS |
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In a ______, two or more companies at one level join together to develop a new marketing opportunity. a. franchise b. corporate VMS c. horizontal marketing system d. multichannel distribution system e. conventional distribution channel |
c. horizontal marketing system |
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Hybrid marketing systems are also called ______. a. dual distribution systems b. multichannel distribution systems c. administered franchises d. horizontal multichannel systems e. contractual marketing systems |
b. multichannel distribution systems |
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As marketing manager for Globe Imports and Exports, you want to start reaping the benefits of a multichannel distribution system. You will likely enjoy all of the following EXCEPT which one? a. expanded sales b. expanded market coverage c. selling at a higher gross margin d. opportunities to tailor products and services to the needs of diverse segments e. decreased conflict among members of the channel |
c. selling at a higher gross margin |
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The use of multichannel systems in the United States is ______. a. decreasing b. increasing c. holding steady d. spreading abroad fast e. declining abroad |
b. increasing |
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The major disadvantage of a multichannel system is that it is harder to control and it can generate _______. a. greater conflict b. less net profit c. fewer domestic sales d. inefficiency e. declining employee morale |
a. greater conflict |
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Due in a large part to advances in technology, ____ is a major trend whereby product and service producers are bypassing intermediaries and going directly to final buyers, or radically new types of channel intermediaries are emerging to displace traditional ones. a. the vertical marketing system b. the corporate marketing system c. disintermediation d. the corporate merger e. the hostile takeover |
c. disintermediation |
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In many industries, traditional intermediaries are dropping by the wayside because of changes in ___ and growth of _____ marketing. a. federal laws; business-to-business b. state and local laws; target c. franchise structure; independent d. technology; direct and online e. channel design; retail |
d. technology; direct and online |
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Designing a channel system calls for analyzing consumer needs, setting channel objectives, _______, and evaluation. a. establishing a budget b. identifying major channel alternatives c. seeking regulatory approval d. seeking legal advice e. measuring objectives |
b. identifying major channel alternatives |
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Which of the following should be the first step in designing a marketing channel? a. identifying channel objectives b. identifying what consumers want from the channel c. analyzing channel alternatives d. evaluating intermediaries e. exploring international opportunities |
b. identifying what consumers want from the channel |
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To increase a channel's service level, the channel must provide a greater assortment of products, more add-on services, and _____. a. lower prices b. more efficiency c. faster delivery d. better customer communication e. follow-up |
c. faster delivery |
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Companies should state their channel objectives in terms of targeted levels of _____. a. co-op advertising b. fair prices c. customer service d. efficiency and reduced conflict e. profitability |
c. customer service |
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When a company is identifying its major channel alternatives, it should consider its choices in terms of types, number, and _____ of intermediaries. a. size b. power c. responsibilities d. competitors e. none of the above |
c. responsibilities |
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Which type of product might require a more direct marketing channel to avoid delays and too much handling? a. lower-priced products b. perishable products c. high-priced products d. products in their maturity stage e. products in their decline stage |
b. perishable products |
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When determining the number of channel members to use of each level, 3 strategies are available: intensive, exclusive, and _______. a. multichannel b. selective c. international d. direct e. extensive |
b. selective |
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Sometimes a producer chooses only a few dealers in a territory to distribute its products or services. Generally these dealers are given a right to ______ distribution. a. exclusive b. selected c. intensive d. administered e. corporate |
a. exclusive |
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Which type of distribution is used when the producer wants more than on, but fewer than all, of the intermediaries who are willing to carry its products? a. exclusive b. selective c. intensive d. dual e. multichannel |
b. selective |
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When establishing the responsibilities of channel members, the producer must establish a list price, give a fair set of discounts of intermediaries, and define each channel member's ______. a. sales volume b. territory c. legal rights d. customers e. mission |
b. territory |
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Channel members should be evaluated using all of the following criteria EXCEPT which one? a. economic factors b. control c. adaptive leadership d. channel leadership e. none of the above |
d. channel leadership |
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When a company compares the likely sales, costs, and profitability of different channel alternatives, it is using _____ criteria to evaluate its channel options. b. adaptive c. economic d. control e. distribution |
c. economic |
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It is common for international marketers to ____ their channel strategies for each country. a. extend b. adapt c. restrict d. seek approval for e. eliminate |
b. adapt |
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China and India each contain more than one billion people. However, the profitable markets are actually much smaller than they appear because of ____. a. inadequate distribution systems b. indifference toward Western products c. government control d.high regional taxes e. the religious caste system |
a. inadequate distribution systems |
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Marketing channel management calls for selecting, managing, ______, and evaluating channel member over time. a. reducing conflict b. reducing waste c. motivating d. pruning e. reinstatin |
c. motivating |
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A company should think of its intermediaries as both its ______ and _______. a. competitors; partners b. customers; partners c. competitors; marketers d. customers; marketers e. customers; competitors |
b. customers; partners |
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Most companies practice strong PRM to forge long-term relationships with channel members. What does PRM stand for? a. primary relationship management b. potential relationship management c. perennial relationship management d. partner relationship management e. personnel roster maintenance |
d. partner relationship management |
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Sometimes a seller requires its dealers to abstain from handling competitors' products in an arrangement called _________. a. exclusive distribution b. exclusive dealing c. selective distribution d. exclusive pricing e. disintermediation |
b. exclusive dealing |
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Exclusive dealing is legal as long as it does not ______ or tend to create a monopoly, and as long as both parties enter into the agreement _____. a. substantially lessen competition; coercively b. restrict trage; voluntarily c. substantially lessen competition; voluntarily d. interfere with competitors; forcefully e. create a smaller market; permanently |
c. substantially lessen competition; voluntarily |
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Exclusive territorial agreements are normal practices in _______. a. vertical marketing systems b. franchises c. integrated marketing systems d. horizontal marketing systems e. supply chain management |
b. franchises |
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_______ describes those arrangements whereby the produced of a strong brand sells its brand to a dealer only if the dealer will take some or all the rest of the line. a. exclusive distribution b. exclusive dealing c. exclusive tying d. a tying agreement e. disintermediation |
d. a typing agreement |
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Marketing logistics involves getting the right product to the right customer in the right place at the right time. Which of the following is NOT included in this process? a. planning the physical flow of good and service b. implementing the plan for the flow of goods and services c. controlling the physical flow of goods, services, and information d. gathering customer's ideas for new products e. planning the flow of logistics information to meet customer requirements at a profit |
d. gathering customer's ideas for new products |
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Marketing logistics involves which of the following types of distribution? a. outbound and inbound b. outbound, inbound, and reverse c. outbound and reverse d. inbound and reverse e. outbound |
b. outbound, inbound, and reverse |
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Which of the following is NOT an area of responsibility for a logistics manager? a. information systems b. warehousing c. marketing d. inventory e. purchasing |
c. marketing |
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Which of the following innovations has created opportunities for significant gains in distribution efficiency? a. typing agreements b. web-based logistics systems c. partner relationship management d. contractual vertical marketing systems e. storage warehouses |
b. web-based logistics systems |
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The goal of marketing logistics should be to provide a ______ level of customer service at the least cost. a. maximum b. targeted c. moderate d. minimum e. competitive |
b. targeted |
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The difference between distribution centers and storage warehouses is that distribution centers are designed to ______. a. store goods for loner periods b. hold larger volumes c. move goods rather than just store them d. primarily be owned by the manufacturer e. be automated |
c. move goods rather than just store them |
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To reduce inventory management costs, many companies use a system called ______, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation. a. reduction-inventory management b. just-in-time logistics c. limited inventory logistics d. supply chain management e. economic order quantity |
b. just-in-time logistics |
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With the use of _____,or "smart tag" technology, a company is able to know exactly where a product is located within the supply chain. a. RFID b. PRM c. VMS d. IT e. 3PL |
a RFID |
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Which of the following transportation modes is used for digital products? a. trucks b. rail c. the internet d. air e. ship |
the internet |
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In choosing a transportation mode for a product, shippers must balance the considerations of speed, dependability, cost, and ______. a. weight b. customer service c. availability d. distance e. company reputation |
c. availabilty |
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Match these intermodal transportation combinations with the terms below: rail and trucks, water and trucks, and water and rail a. fishyback; airtruck; and trainship b. piggyback; airtruck; and fishyback c. trainship; fishyback; and piggyback d. piggyback; fishyback; and trainship e. piggyback; fishyback; and birdyback |
d. piggyback; fishyback; and trainship |
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Companies manage their supply chains through______. a. skilled operators b. information c. the internet d. transportation modes e. competitors |
b. information |
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When major producers or suppliers work directly with a major retailer in ordering and shipping products, they often use ______ to save time and money. a. dual distribution modes b. continuous inventory replenishment systems c. the internet d. their own trucking and distribution systems e. integrated distribution |
b. continuous inventory replenishment systems |
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Julie Newmar recognizes that her company needs to provide better customer service and trim distribution costs through teamwork, both inside the company and among all the marketing channel organizations. Julie will begin the practice of _______. a. integrated logistics management b. supply chain management c. customer relationship management d. horizontal marketing system management e. disintermediation |
a. integrated logistics managment |
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What is the goal of integrated supply chain management? a. reduce costs b. increase services with minimal cost c. harmonize all of the company's logistics decisions d. reduce conflict and increase cooperation among channel members e. all of the above |
c. harmonize all of the company's logistics decisions |
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Smart companies coordinate their logistics strategies and forge strong partnerships with suppliers and customers to improve customer service and reduce channel costs through____. a. cross-functional teams b. cross-company teams c. partnering d. cross-functional, cross-company teams e. segregated departmentalization |
d. cross-functional, cross-company teams |
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The success of each channel member depends on the performance of _____. a. key channel members b. the entire supply chain c. the channel captain d. the manufacturer e. the wholesaler |
b. the entire supply chain |
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Today, a growing number of firms now outsource some or all of their logistics to ______. a. cross-functional teams b. disintermediaries c. channel members d. third-party logistics providers e. competitors |
d. third-party logistics providers |
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______ includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. a.franchising b. retailing c. brokering d. wholesaling e. disintermediation |
b. retailing |
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In recent years, ______ has(have) been growing fast. This includes selling to final consumers through direct mail, catalogs, telephone, and the Internet. a. specialty stores b. shopping centers c. superstores d. nonstore retailing e. e-commerce |
d. nonstore retailing |
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________ is the basis of all discount operations and is typically used by sellers of convenience goods. Retailers offering this level of service require customers to perform their own "locate-compare-select" process in order to save money. a. limited-service b. self-service c. full-service d. specialty-service e. wholesale |
b. self-service |
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_______, such as Sears, provide more sales assistance because they carry more shopping goods about which customers need information. Their increased operating costs result in higher prices. a. self-service retailers b. full-service retailers c. off-price retailers d. limited-service retailers e. specialty-service retailers |
d. limited-service retailers |
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Which type of stores usually carry more specialty goods for which customers like to be "waited on" and have much higher operating costs, which are passed along to the customer? a. self-service stores b. category killer stores c. full-service stores d. independent sores e. off-price stores |
c. full-service stores
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Which of the following retailers likely require the most emphasis on salespeople to assist customers? a. limited-service retailers b. full-service retailers c. self-service retailers d. megaretailers e. off-price retailers |
b. full-service retailers |
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_______ carry narrow product lines with deep assortments within those lines. a. chain stores b. specialty stores c. convenience stores d. discount stores e. off-price stores |
b. specialty stores |
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Specialty stores carry ______ with ______ within them. a. convenience items; mostly staples b. narrow product lines; deep assortments c. narrow product lines; shallow assortments d. wide product lines; shallow assortments e. wide product lines; deep assortments |
b. narrow product lines; deep assortments |
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Which type of store carries a wide variety of product lines and differentiated itself through service, but has been squeezed between more focused and flexible specialty stores on the one hand and more efficient, lower-priced discounters on the other? a. chain b. department c. factory outlet d. merchant wholesaler e. independents |
b. department |
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____ are facing slow sales growth because of slower population growth and the rapid growth of out-of-home eating. a. convenience stores b. department stores c. chain stores d. supermarkets e. hypermarkets |
d. supermarkets |
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Which type of retailer tends to be the most frequently shopped? a. department stores b. convenience stores c. supermarkets d. superstores e. off-price retailers |
c. supermarkets |
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Which type of small store carries a limited line of high-turnover convenience goods and makes most of its revenues from cigarette, beverage, and gasoline sales? a. convenience stores b. department stores c. chain stores d. supermarkets e. hypermarkets |
a. convenience stores |
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Which type of store is much larger than regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and services? a. category killer stores b. chain stores c. factory outlet stores d. superstores e. off-price retailers |
d. superstores |
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Which type of retail store is most similar to a hypermarket? a. department store b. convenience store c. supermarkets d. superstores e. off-price retailers |
d. superstores |
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Which type of superstore is actually a giant specialty store? a. category killer b. chain c. factory outlet d. shopping center e. independent |
a. category killer |
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_____ retailers in the United States are growing faster than product retailers. a. discount b. merchant c. service d. specialty e. off-price |
c. service |
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_____ sell standard merchandise at lower prices by accepting lower margins and selling higher volume. a. merchant wholesaler b. discount stores c. full-service retailers d. limited-service retailers e. factory outlets |
b. discount stores |
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The early ____ cut expenses by offering few services and operating in warehouse-like facilities in low-rent, heavily traveled districts. a. chain stores b. department stores c. discount stores d. off-price retailers e. full-service retailers |
c. discount stores |
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_____ have filled the low-priced, high-volume gap by buying at less than regular wholesale prices and charging consumers less than retail. a. off-price retailers b. discount stores c. convenience stores d. chain store e. limited-service retailers |
a. off-price retailers |
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Which of the following is NOT one of the main types of off-price retailer? a. independents b. factory outlets c. warehouse clubs d. category killers e. membership warehouses |
d. category killers |
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______, which buy at less than regular wholesale prices and charge consumers less than retail, are owned and run by entrepreneurs or are divisions of larger retail corporations. a. discount stores b. warehouse clubs c. superstores d. independent off-price retailers e. full-service retailers |
d. independent off-price retailers |
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_____ are sometimes several stores grouped together. These stores offer prices as low as 50% below retail on a wide range of mostly surplus, discounted, or irregular items. a. category killers b. factory outlets c specialty stores d. superstores e. power centers |
b. factory outlets |
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Manufacturers send last year's merchandise and seconds to ____, while they send new merchandise to department stores. a. convenience stores b. chain stores c. factory outlets d. retailers e. power centers |
c. factory outlets |
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_____ operate in warehouse-like facilities, sell a limited selection of items, and offer new frills. Customers pay annual membership fees and able to purchase goods at deep discounts. a. warehouse clubs b. independent off-price retailers c. factory outlets d. discount stores e. superstores |
a. warehouse clubs |
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_______ are two or more outlets that are commonly owned and controlled. a. chain stores b. convenience stores c. off-price retailers d. independent off-price retailers e. power centers |
a. chain stores |
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The main difference between _____ organizations and other contractual systems is that these systems are normally based on some unique product or service. a. voluntary chain b. retailer cooperative c. franchise d. agent e. warehouse-club |
c. franchise |
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Merchandising _____ are corporations that combine several different retailing forms under central ownership. a. conglomerates b. agents c. brokers d. franchises e. independents |
a. conglomerates |
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Retail assortments are looking more and more alike because ______. a. customers today are more focused on service differentiation b. national-brand manufacturers have placed their products almost everywhere c. market segmentation has proven ineffective d. stores are clustered together to increase their customer pulling power e. more stores are practicing "experiential retailing" |
b. national-brand manufacturers have placed their products almost everywhere |
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Until retailers ____ and ____ their markets, they cannot make consistent decisions about product assortment, services, pricing, advertising, store decor, or any of the other decisions that must support their positions. a. compete with; position b. target; compete with c. define; profile d. limit; serve e. divest; eliminate |
c. define; profile |
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Service differentiation among retailers has ____. a. increased b. eroded c. stayed the same d. franchised e. tripled |
b. eroded |
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Too many retailers fail because they try to have "something for everyone" and end up satisfying no market well. Successful retailers _____ their target markets well and position themselves strongly. a. increase b. franchise c. wholesale d. define e. position |
d. define |
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A retailer's ____ should differentiate the retailer while matching target shoppers' expectations. One strategy is to offer merchandise that no other competitor carries. a. agent b. broker c. product assortment d. chain stores e. distribution strategy |
c. product assortment |
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A store that uses ______ creates realistic environments in which customers can try products before they buy them. a. an enhanced services mix b. experiential retailing c. atmosphere control d. store differentiation and positioning e. high-low pricing |
b. experiential retailing |
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All retailers would like to achieve ____ while charging ____, but the two seldom happen together. a. low volume; high markups b. low volume; low markups c. high volume; high markups d. high volume; low markups e. high volume; cut-rate markups |
c. high volume; high markups |
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____ may include in-store demonstrations, displays, contests, and visiting celebrities. a. franchises b. sales promotions c. agent promotions d. broker promotions e. product life-cycling |
b. sales promotions |
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Press conferences and speeches, store openings, special events, newsletters, magazines, and public service activities are examples of ways that retailers use _______. a. public relations b. sales promotions c. high markups d. the wheel-of-retailing concept e. retail convergence |
a. public relations |
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According to many retailers, what is the most important factor in retailing success? a. fair prices b. good atmosphere c. helpful employees d. location e. service |
d. location |
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Why do most stores cluster together? a. to decrease competition b. to increase their customer pulling power c. to take advantage of tax breaks d. to create retailer cooperatives e. to differentiate themselves from power centers |
b. to increase their customer pulling power |
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______ were the main form of retail cluster until the 1950s. a. department stores b. discount stores c. independent off-price retailers d. central business districts e. independent stores |
d. central business districts |
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A ______ is a group of retail businesses planned, developed, owned, and managed as a unit. a. merchant wholesaler b. franchise c. shopping center d. supermarket e. hypermarket |
c. shopping center |
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A ____ contains from 40 to 200 stores, is like a covered mini-downtown, and attracts customers from a wide area. a. community shopping center b. neighborhood shopping center c. strip mall d. regional shopping center e. power center |
d. regional shopping center |
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A ____ contains between 15 and 40 retail stores, typically including a branch of a department store or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. a. community shopping center b. neighborhood shopping center c. strip mall d. regional shopping center e. power center |
a. community shopping center |
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Most shopping centers are ____ that generally contain between 5 and 15 stores and are close and convenient for consumers. a. community shopping centers b. power centers c. strip malls d. lifestyle center e. factory outlets |
c. strip malls |
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Today's trend in retail clusters is toward ____, huge unenclosed shopping centers consisting of a long strip of retail stores, including large, freestanding anchors such as Wal-Mart. Each store has its own entrance with parking directly in front for shoppers who wish to visit only one store. a. shopping malls b. power centers c. superstores d. chain stores e. regional shopping centers |
b. power centers |
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A _____ is a smaller mall with upscale stores, convenient locations, and expensive atmosphere. It is typically located near affluent residential neighborhoods. a. regional shopping center b. lifestyle center c. community shopping center d. franchise e. power center |
b. lifestyle center |
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What was the first warehouse store chain? a. Sam's Club b. Price Club c. T G & Y d. Ben Franklin's e. Costco |
b. Price Club |
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According to the _____ concept, new retailing forms often begin as low-margin, low-price, low-status operations to challenge established retailers, then become successful, and eventually take the place of the established retailers they had challenged. a. agent b. broker c. wheel-or-retailing d. warehousing e. product life cycle |
c. wheel-of-retailing |
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Mail-order, television, phone, and online shopping are all examples of _______. a. the wheel-of-retailing concept b. nonstore retailing c. off-price retailing d. full-service retailing e. wholesaling |
b. nonstore retailing |
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Which of the following has NOT contributed to the growth in online business? a. easier-to-use Web sites b. more interesting and attractive Web sites c. the inaccessibility of shopping centers d. improved online service e. increasingly sophisticated search engines |
c. the inaccessibility of shopping centers |
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_____ seems to explain the initial success and later troubles of department stores, supermarkets, and discount stores, and the recent success of off-price retailers. a. franchising b. merchant wholesaling c. the wheel-of-retailing concept d. warehousing e. retail convergence |
c. the wheel-of-retailing concept |
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More growth in online retailing is expected from _____ retailers than other retail types. a. click-and-brick b. click-only c. brick-and-mortar d. independent e. franchised |
a. click-and-brick |
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The merging of consumers, products, prices, and retailers is called _______. a. retail conglomeration b. consumer convergence c. price merging d. retail convergence e. retail clustering |
d. retail convergence |
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Retail convergence means greater ____ for retailer and greater difficulty in _____ offerings. a. differentiating; pricing b. sales; differentiating c. profit margins; sales d. competition; differentiating e. branding; differentiating |
d. competition; differentiating |
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The rise of huge mass merchandisers and specialty superstores, along with retail mergers and acquisitions, has created a core of ______. a. category killers b. franchises c. superpower megaretailers d. power centers e. lifestyle centers |
c. superpower megaretailers |
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Touch-screen kiosks, customer-loyalty cards, handheld shopping assistants, and self-scanning checkout systems are all examples of how retailers use technology to _______. a. control inventory costs b. send information between store c. interact with suppliers d. produce more accurate forecasts e. connect with customers |
d. produce more accurate forecasts |
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Most _______ retailers are still significantly behind ______ retailers in terms of global expansion. a. African; Peruvian b. European; American c. American; European and Asian d. Asian: American e. Asian; African |
c. American; European and Asian |
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____, the world's second largest retailer after Wal-Mart, has embarked on an aggressive mission to extend its role as a leading international retailer. a. McDonald's b. The Gap c. Carrefour d. Toys "R" US e. Costco |
c. Carrefour |
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_____ includes all activities involved in selling goods and services to those buying for resale or business use. a. wholesaling b. retailing c. franchising d. discounting e. disintermediation |
a. wholesaling |
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____ buy mostly from producers and sell mostly to retailers and industrial consumers. a. independents b. factory outlets c. wholesalers d. discount stored e. megaretailers |
c. wholesalers |
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In which wholesaler's channel function might a wholesaler's sales forces help manufacturers reach many small customers at a low cost? a. bulk-buying b. selling and promoting c. buying and assortment building d. warehousing e. rack-jobbing |
b. selling promoting |
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Which of the following is NOT one of a wholesaler's channel functions? a. financing b. risk bearing c. providing market information d. off-price retailing e. bulk-breaking |
d. off-price retailing |
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In which wholesaler's channel function might a wholesaler hold inventories, thereby reducing the inventory costs and risk of suppliers and customers? a.bulk-breaking b. buying and assorting building c. warehousing d. financing e. transporting |
c. warehousing |
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In which wholesaler's channel function might wholesalers provide quicker delivery to buyers because they are closer than the producers? a. buying and assortment building b. financing c. transportation d. risk bearing e. warehousing |
c. transportation |
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Which of the following is NOT one of the major classifications of wholesalers? a. merchant wholesalers b. agents c. manufacturers' sales branches and offices d. specialty wholesalers e. brokers |
d. specialty wholesalers |
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____ are the largest group of wholesalers. The group can be divided into the 2 broad types of full-service and limited-service a. brokers b. manufacturer sales c. agents d. merchant wholesalers e. specialty wholesaler |
d. merchant wholesalers |
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In order to ____, wholesalers can propose automatic reordering systems, set up management-training and advising systems, or even sponsor a voluntary chain. a. define their target markets b. identify more profitable customers c. determine product and service assortments d. build better relationships with customers e. settle on pricing |
d. build better relationships with customers |
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____ and ___ differ from merchant wholesalers in 2 ways: they do not take title to goods, and they perform only a few functions. a. full-service wholesalers; limited-service wholesalers b. brokers; agents c. branches; office d. power centers; independent wholesalers e. independent wholesalers; off-price retailers |
b. brokers; agents |
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The ______ brings buyers and sellers together and assists in negotiations. a. agent b. broker c. retailer d. wholesaler e. retail convergence |
b. broker |
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_____, or manufacturers' representatives, represent a buyer or seller on a more permanent basis. a. brokers b. franchises c. agents d. retailers e. intermediaries |
c. agents |
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Like retailers, wholesalers must _____ their target markets and _____ themselves effectively, for they cannot serve everyone. a. define; position b. position; define c. discount; franchise d. franchise; discount e. identify; compare |
a. define; position |
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Which of the following types of limited-service wholesalers is owned by farmer members and assembles farm products to sell in local markets? a. cash-and-carry wholesaler b. drop shipper c. rack jobber d. producer's cooperative e. truck jobber
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d. producer's cooperative |
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Which of the following types of wholesalers sell primarily to manufacturers rather than to retailers? a. wholesaler merchants b. industrial distributors c. cash-and carry wholesalers d. rack jobber e. drop shippers |
b. industrial distributors |
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Most wholesalers are not _____- minded. Many are behind the times in personal selling--they still see selling as a single salesperson talking to a single customer instead of as a team effort. a. absent b. promotion c. management d. franchise e. profit |
b. promotion |
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Today's large, progressive wholesalers have successfully reacted to rising costs by _____. a. locating in low-rent, low-tax area b. investing in information technology systems c. investing little money in equipment or systems d. increasing their markup e. reducing promotional activities |
b. investing in information technology systems |
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Savvy wholesalers realize that their only reason for existence comes from adding value by increasing the efficiency and effectiveness of the ____. a. retailer b. industry c. distribution system d. end customer e. entire marketing channel |
e. entire marketing channel |
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A company's total marketing communications mix consists of a special blend of advertising, sales promotion, public relations, personal selling, and direct-marketing tools that the company uses to communicate customer value and build customer relationships. This is also called ______. a. direct marketing b. integrated marketing c. the promotion mix d. competitive marketing e. target market |
c. the promotion mix |
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The use of short-term incentives to encourage the purchase or sale of a product or service is called _____. a. direct marketing b. sales promotions c. personal selling d. public relations e. publicity |
b. sales promotions |
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Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called _______. a. sales promotion b. direct marketing c. advertising d. personal selling e. public relations |
c. advertising |
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Which of the 5 major promotion tools includes building up a positive corporate image and handling unfavorable stories and events? a. sales promotion b. personal selling c. direct marketing d. public relations e. direct marketing |
d. public relations |
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Which of the following is NOT an aspect of the promotion mix? a. advertising b. sales promotions c. public relations d. strategic positioning e. direct marketing |
d. strategic positioning |
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The promotion mix is the company's primary communication activity; the marketing mix must be coordinated for the greatest communication impact. What is NOT included in the entire marketing mix? a. product b. competitor c. price d. place e. promotion |
b. competitor |
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Today's consumers do not need to rely on marketer-supplied information about products and services because they can use _____ to seek out a wealth of information. a. public relations b. direct marketing c. the Internet and other technologies d. mass market media e. informative advertising |
c. the Internet and other technologies |
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Which of the following is NOT a factor in the changes occurring in today's marketing communications? a. mass markets have fragmented, and marketers are shifting away from mass marketing b. changes in communication technologies are changing how companies and customers communicate with each other c. mass-media companies routinely invest millions of dollars in the mass media d. mass media no longer capture the majority of promotional budgets e. consumers are better informed about products and services |
d. mass media no longer capture the majority of promotional budgets |
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Which of the following is NOT an example of a specialized and highly-targeted media that an advertiser might use to reach smaller customer segments? a. cable television channels b. e-mail c. podcasts d. magazines e. product placement in video games |
d. magazines |
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Companies are going less _____ and more ____ as a result of an explosion of more focused media that better match today's targeting strategies. a. marketing; media b. media; sales c. narrowcasting; broadcasting d. broadcasting; narrowcasting e. advertising; word-or-mouth |
d. broadcasting; narrowcasting |
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In the "chaos scenario" predicted by some advertising industry experts, the old mass-media communications model will be increasingly abandoned in favor of ____. a. public relations b. direct marketing c. push and pull strategies d. the possibilities of new digital technologies e. buzz marketing |
d. the possibilities of new digital technologies |
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All of the following are reasons that marketers are losing confidence in television advertising EXCEPT ______. a. mass media costs continue to increase b. television offers a high cost per exposure c. many viewers are using video on demand and TiVo-like systems d. younger consumers are using different media e. audience size is on the decline |
b. television offers a high cost per exposure |
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Companies often fail to integrate their various communications to consumers because _____. a. historically, consumers have been able to distinguish between message sources b. advertising departments are reluctant to work with public relations professionals c. communications often come from different parts of the company d. personal selling and sales promotion are in direct conflict e. they have failed to understand the concept of brand contact |
c. communications often come from different parts of the company |
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Advertising, sales promotion, personal selling, public relations, and direct marketing are all _____. a.communications channels that should be integrated under the concept of integrated marketing communications b. communications channels focused more on narrowcasting than broadcasting c. promotional tools used for push strategies but not all pull strategies d. promotional tools used for pull strategies but not all push strategies e. promotional tools adapted for use in mass marketing |
a. communications channels that should be integrated under the concept of integrated marketing communications |
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The concept of ____ marketing communications suggests that the company must blend the promotion tools carefully into a coordinated ____ a. affordable; promotion mix b. integrated; message c. mass; integration d. segmented; brand image e. brand contact; image |
b. integrated; message |
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With the use of integrated marketing communications, a company's mass-market advertisements, Web site, e-mail, and personal selling communications all have ____. a. equal portions of the advertising budget b. independent communications directors c. separate communications directors d. the same target audience e. the same message, look, and feel |
e. the same message, look, and feel |
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To produce better communications consistency, a unified company image, and greater sales impact, some companies hire a(n) _____. a. advertising agency b. marketing communications director c. public relations specialist d. personal sales force e. media planner |
b. marketing communications director |
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Advertising has some shortcomings. What is NOT one of them? a. it is impersonal b. it can be very costly c. it slowly reaches many people d. it carries on one-way communications e. it doesn't make audiences feel the need to respond |
c. it slowly reaches many people |
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_____ is the company's most expensive promotion tool. a. advertising b. personal selling c. mass media d. public relations e. publicity |
b. personal selling |
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Which promotional tools is most effective in building up buyers' preferences, convictions, and, most importantly, actions? a. mass-market advertising b. segmented advertising c. sales promotion d. public relations e. personal selling |
e. personal selling |
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Sales promotion includes a wide assortment of tools. Which is NOT one of these tools? a. contests b. premiums c. telephone surveys d. coupons e. cents-off deals |
c. telephone surveys |
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____ consists of short-term incentives to encourage the purchase or sale of a product or service. a. a patronage reward b. a segmented promotion c. advertising d. sales promotion e. publicity |
d. sales promotion |
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"Buy it now" is the message of _________. a. personal selling b. advertising c. a nonpersonal communication channel d. sales promotion e. publicity |
d. sales promotion |
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Which type of promotional tool is nonpublic, immediate, customized, and interactive? a. segmented advertising b. sales promotions c. public relations d. brand contacts e. direct marketing |
e. direct marketing |
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Which promotional strategy calls for spending a lot on advertising toward final consumers? a. push b. blitz c. pull d. buzz e. pulse |
c. pull |
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Which promotional strategy relies mostly on personal selling and trade promotion toward market channel members? a. push b. blitz c. pull d. buzz e. pulse |
a. push |
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Business-to-consumer companies are more likely to emphasize a _____ promotion strategy, while business-to-business companies are more likely to emphasize a _____ promotion strategy. a. pull; push b. push; pull c. pulse; pull d. continuity; pulse e. pulse; continuity |
a. pull; push |
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Which of the following is NOT 1 of the 4 important decisions made when developing an advertising program? a. setting advertising objectives b. setting the advertising budget c. developing advertising strategy d. selecting a target market e. evaluation advertising campaigns |
e. evaluating advertising campaigns |
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_____ define the task that advertising must do with a specific target audience during a specific period of time. a. advertising objectives b. advertising budgets c. advertising strategies d. advertising campaigns e. message decisions |
a. advertising objectives |
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____ can be classified by primary purpose--whether the aim is to inform, persuade, or remind. a. advertising objectives b. advertising budgets c. advertising strategies d. advertising campaigns e. advertising logos |
a. advertising objectives |
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____ is used heavily when introducing a new product category. The objective is to build primary demand. a. persuasive advertising b. informative advertising c. comparative advertising d. patronage advertising e. institutional advertising |
b. informative advertising |
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_____ becomes more important as competition increases. They company's objective is to build selective demand. a. persuasive advertising b. informative advertising c. POP promotion advertising d. patronage advertising e. reminder-oriented advertising |
a. persuasive advertising |
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Persuasive advertising becomes _____ when a company directly or indirectly compares its brand with one or more other brands. a. informative advertising b. reminder advertising c. comparative advertising d. POP promotion advertising e. institutional advertising |
c. comparative advertising |
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A product in the maturity stage may require _____ advertising. a. informative b. comparative c. persuasive d. reminder e. cooperative |
d. reminder |
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After determining its advertising objectives, the company's next step in developing an advertising program is to ______. a. set its advertising budge b. use advertising specialty c. use cash refund offers d. use coupons e. develop its message decisions |
a. set its advertising budget |
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Using the _____ method for setting an advertising budget, the company starts with total revenues, deducts operative expenses and capital outlays, and then devotes some portion of the remaining funds to advertising. a. percentage-of-sales b. affordable c. competitive-parity d. objective-and-task e. moving-average |
b. affordable |
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A company decide on its promotion budget by using 4 common methods to set the total budget for advertising. What is NOT one of these methods? a. the affordable method b. the percentage-of-sales method c. the integrated method d. the competitive-parity method e. the objective-and-task method |
c. the integrated method |
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Though the ______ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending, selling price, and profit per unit, it wrongly views sales as the cause of promotion rather than the result. a. percentage-of-sales b. affordable c. competitive-parity d. objective-and-task e. regression |
a. percentage-of-sales |
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Which method of setting an advertising budget relies on analyzing competitors' spending? a. affordable method b. percentage-of-sales method c. competitive-parity method d. objective-and-task method e. integrated method |
c. competitive-parity method |
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The most logical budget-setting method is the _____ method because it is based on accomplishing specific promotion goals. a. percentage-of-sales b. affordable c. competitive-parity d. objective-and-task e. exponential smoothing |
d. objective-and-task |
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Which of the following is an element of developing an advertising strategy? a. selecting advertising media b. using sophisticated statistical models c. setting advertising objectives d. evaluating advertising campaigns e. setting the advertising buget
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a. selecting advertising media |
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Traditionally, the creative department developed good advertisements, and then the media department selected the best media for carrying those advertisements to desired target audiences. This often caused ________. a. sales promotions b. friction c. advertising specialty d. integrated service e. marketing mypoia |
b. friction |
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Soaring media costs, focused target marketing strategies, and the growing array of new media have increased the importance of ______. a. affordable method of setting a promotion budget b. the competitive-parity method of setting a promotion budget d. implementing branded entertainment e. media planning |
e. media planning |
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To succeed, an advertisement must _______. a. have a significant budget b. have a high entertainment value c. have a high frequency d. make a meaningful appeal e. gain attention and communicate well |
e. gain attention and communicate well |
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The Internet, video on demand, and DVRs present which of the following problems for marketers? a. consumers are watching less television b. consumers have difficulty attending to specific advertising message due to advertising clutter c. audiences are less interested in media consumption d. consumers have more choices about what to watch or not watch e. television advertising is becoming more expensive |
d. consumers have more choices about what to watch or not watch |
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A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching customers with more engaging messages is ______. a. Madison & Vine b. Wall St. & Fifth Ave c. Buzz marketing d. opinion leaders e. DVR zap |
a. Madison & Vine |
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______ is the first step in creating effective advertising messages-- deciding what general message will be communicated to consumers. a. eliminating advertising clutter b. message strategy c. media opportunity d. rewarding consumers e. selecting the medium |
b. message strategy |
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Developing an effective message strategy begins with identifying ________ that can be used as advertising appeals. a. sales promotions b. premium promotions c. advertising specialties d. customer benefits e. emotions |
d. customer benefits |
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_____ tend to be plain, straightforward outlines of benefits and positioning points that he advertiser wants to stress. a. sales promotion b. message strategy statements c. creative concept statements d. big idea statements e. branded entertainment plans |
b. message strategy statements |
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After creating message strategy statements, the advertiser must develop a compelling _____ that will bring the message strategy to life in a distinctive and memorable way. a. big idea b. customer strategy c. customer benefit d. execution style e. media vehicle |
a. big idea |
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The big idea or the creative concept may emerge as a(n) _______, a phrase, or combination of the two. a. appeal b. visualization c. differentiation d. verbalization e. statement |
b. visualization |
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Advertising appeals should have 3 characteristics. Which is NOT one of these characteristics? a. they should be meaningful b. they must be believable c. they must show lifestyle d. they should be distinctive e. they should position the brand |
c. they must show lifestyle |
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_______ is the message execution style that depicts one or more typical people using the product in a normal setting. a. lifestyle b. fantasy c. slice of life d. personality symbol e. testimonial evidence |
c. slice of life |
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Ads that are built around dream themes use which type of execution style? a. mood or image b. musical c. fantasy d. slice of life e. scientific evidence |
c. fantasy |
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The goal of _____ is to make ads themselves so entertaining or useful that people want to watch them. a. branded entertainment b. advertainment c. audience engagement d. continuity scheduling e. pulse scheduling |
b. advertainment |
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Product placement in television programs and movies is an example of ______. a. branded entertainment b. advertainment c. brand contact d. audience engagement e. pulsing |
a. branded entertainment |
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In an ad, the 2nd thing the reader typically notices is the _____, which must effectively entice the target audience to read the block of text. a. copy b. illustration c. headline d. advertising specialty e. color |
c. headline |
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Which of the following is NOT one of the major steps in media selection? a. deciding on reach, frequency, and impact b. choosing among major media types c. selecting specific media vehicle d. deciding on format elements e. deciding on timing |
d. deciding on format elements |
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______ is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. a. reach b. qualitative value c. format d. premium e. frequency |
a. reach |
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The advertiser must desired media impact, known as the ______ of a message through a given medium. a. reach b, illustration c. qualitative value d. copy e. frequency |
c. qualitative value |
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For a long time, ________ has/have dominated in the media mix of national advertisers a. the Internet b. newspapers c. television d. radio e. direct mail |
direct mail |
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Advertisers are increasingly shifting larger portions of their budgets to media that cost less and target more effectively. All of the following benefit greatly from this shift, EXCEPT______. a. outdoor advertising b. cable television c. network television d. digital satellite television systems e. internet advertising |
c. network television |
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The media planner looks both at the total cost of using a medium and at the ________. a. cost per thousand persons reached b. cost of premium offers c. cost of the magazine it is using d. opportunity cost e. continuity cost |
a. cost per thousand persons reached |
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ER and ABC World News Tonight are both examples of ______, specific media within each general media type. a. editorial quality b. audience attention c. media vehicles d. advertising specialty e. micromedia |
c. media vehicles |
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In selecting media vehicles, the planner must balance media cost measures against several media impact factors. First, the planner should balance costs against the media vehicle's ____. a. audience quality b. audience attention c. editorial quality d. timing e. pass-along audience |
a. audience quality |
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_____ means scheduling ads evenly within a given period. _____ means scheduling ads unevenly over a given time period. a. pulsing; continuity b. continuity; hard hitting c. continuity; pulsing d. pulsing; hard hitting e. sequencing; routing |
c. continuity; pulsing |
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Scheduling ads unevenly, or _____, builds awareness that is intended to be carried over to the next advertising period. a. continuity b. pulsing c. hard hitting d. sequencing e. segmenting |
b. pulsing |
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One way to measure the ______ effect of advertising is to ____ past sales and past advertising expenditures. a. sales; compare b. promotion; disregard c. copy; disregard d. sales; disregard e. profit; identify |
a. sales; compare |
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Which of the following is NOT a benefit of standardized global advertising? a. lower advertising costs b. greater global advertising coordination c. appeal to different demographics differ d. consistent worldwide image e. coordinated message between mass media outlets and online advertising |
c. appeal to different demographics differ |
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Advertising media costs ________ from country to country. a. differ vastly b. remain about the same c. use POP promotions d. are impossible to compare e. are usually comparable |
a. differ vastly |
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Lobbying, or building and maintaining relations with legislators and government officials to influence legislation and regulation, is part of _______. a. outdated business ethics b. press relations c. press agencies d. public relations e. a mass market strategy |
d. public relations |
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Which of the following function is LEAST likely to be performed by a public relations department? a. product publicity b. lobbying c. public affairs d. investor relations e. media vehicle selection |
e. media vehicle selection |
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_____ use several tools, including the news, speeches, and special events a. advertising agencies b. advertising specialists c. public relations professionals d. computer programmes e. media planners |
c. public relations professionals |
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Which of the following is NOT a reason that the use of public relations by companies has often been limited and scattered? a. the cost of public relations can be prohibitive b. the public relations department is usually located at corporate headquarters c. many public relations professionals see their jobs as simply communicating, not necessarily brand building d. the public relations department is busy dealing with stockholders, employees, government officials, the press, and other publics e. communication between marketing managers and public relations specialists can be difficult |
a. the cost of public relations can be prohibitive |
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Logos, stationery, brochures, signs, business forms business cards, buildings, uniforms, and company trucks are all examples of ____ that can be used to help a company create an identify that the public immediately recognizes. a. direct marketing b. social marketing c. public service activities d. corporate identity materials e. special events |
d. corporate identity materials |
