Marketing 350 test 4 - Flashcards

Q: institutional advertising.

The National Cheese Association\'s ad theme \"We are making better cheese for you\" is an example of:

Q: may be wise if a firm expects strong competition very soon after its product introduction.

A \"penetration pricing policy\":

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sales quota

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is the specific sales or profit objective a salesperson is expected to achieve.

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institutional advertising.

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The National Cheese Association's ad theme "We are making better cheese for you" is an example of:

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what is to be communicated by the words and illustrations.

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"Copy thrust" refers to:

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a combination plan.

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The most popular sales force payment method is:

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stays the same even if production stops temporarily.

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Total fixed cost

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should be supported by research evidence.

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Comparative advertising":

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does not consider cost variations at different levels of output.

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The basic problem with the average-cost approach is that it

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Total fixed cost

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Which of the following costs do not change with an increase in output?

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direct

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The _____ type of competitive advertising aims for immediate buying action.

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Combination

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With the ___________ method of payment, some salary and some commission are included.

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phony list prices

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Some customers encourage the use of ______________ by paying more attention to supposed price discounts than to the actual prices (and values).

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there are few substitutes.

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Skimming may maximize profits in the market introduction stage for an innovation, especially if

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work for producers calling on their intermediaries and their customers.

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Missionary salespeople

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may be wise if a firm expects strong competition very soon after its product introduction.

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A "penetration pricing policy":

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value in use pricing

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A firm that sets prices such that consumers will save 15% of their fuel costs by buying its products is employing _____.

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profit-oriented

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A focus on a target return or return on investment are characteristic of _____ pricing objectives.

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FTC

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In the United States, the _____ has the power to control unfair or deceptive business practices, including deceptive advertising.

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an order getter.

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A salesperson who seeks possible buyers with a well-organized sales presentation designed to get new business is:

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All of these alternatives are correct.

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A firm's sales training should cover

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"push money"

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Some manufacturers give ______________ to retailers to pass on to the retailers' salesclerks to encourage aggressive selling of specific items or lines.

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may be legal if the firm can prove that different prices were set based on different costs.

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Price discrimination:

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sets a price that will capture some of what customers will save by substituting the firm's product for the one currently being used.

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Value in use pricing

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offers the most incentive for the salesperson

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The commission method of payment:

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straight salary

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A salesperson on a(n) ________ earns the same amount regardless of how he or she spends time

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offers the most security for the salesperson.

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A straight salary

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Nonprice competition

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Which of the following is a status quo oriented pricing objective?

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Prepared sales presentation.

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Elise Noble works as a telephone salesperson for the Catalog Division of JC Penney. Her primary job is to call customers with Penney charge accounts to inform them about sale items and ask if they would like to order the sale items. Which of the following kinds of sales presentations would be best for Elise to use?

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cosmetics salespeople at a department store.

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"Push money" is most likely to be offered to:

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Attention, Interest, Desire, Action

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What does the AIDA concept stand for?

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$150.

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Consider the following demand schedule for a product; As the quantity demanded/sold increases from 3 units to 4 units, what is the marginal revenue?

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All of these alternatives are correct.

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A technical specialist:

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work with customers to resolve problems that arise with a purchase, usually after the purchase has been made.

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Customer service reps

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starts with an acceptable final consumer price and works backward to what producers can charge.

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Demand-backward" pricing:

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functional discount

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A trade discount is also called a _____.

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the total market is not growing.

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"Don't-rock-the-boat" thinking is most common when

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Bid pricing.

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A paving contractor wants to work on road construction contracts administered and paid for by the state government. The contractor submits a sealed proposal to the state department of transportation for each construction job. The proposal contains a description of how the contractor will fulfill the specifications for the job at a specified price. The contractor is engaging in:

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the number of times the average inventory is sold in a year.

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The stockturn rate is

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Prepared sales

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With the ____________ approach, the salesperson uses a memorized presentation that is not adapted to each individual customer.

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routinely completing sales made regularly to target customers.

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Order taking involves:

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one-price

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A _____ policy means offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities.

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$99.95

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Which of the following prices is most likely to be seen if a firm is using odd-even pricing?

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order-taking, supporting, and order-getting.

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The three basic sales tasks are:

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MySpace

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All of the following publicity tools are examples of one-way communication from a company to consumers or business customers EXCEPT:

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Commission

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The ____________ method of payment uses a percentage of dollar sales in calculating compensation.

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Basic list prices

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_____ are the prices final customers or users are normally asked to pay for products.

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A company with straight commission salespeople and low sales volume

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Which of the following is likely to have the lowest total personal selling expenses?

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Value pricing

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_____ means setting a fair price level for a marketing mix that really gives the target market superior customer value

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Prepared sales presentation

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Which of the following sales approaches is most to be suitable for simple order-taking?

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market introduction

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Pioneering advertising is often needed during the ______________ stage of the product life cycle.

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prestige pricing.

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The idea that people will pay extra for "quality" and status is the idea behind

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Phony list prices.

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A jewelry store advertises a one-carat diamond engagement ring as being discounted 50 percent off the original price of $10,000, for a sale price of $5,000. However, the ring was never put on sale at the original price, and its actual cost to the retailer was only $1,500. This jewelry store could be accused of using:

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Job description

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A __________ is a written statement of what a salesperson is expected to do.

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seek to get as much profit as possible.

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Profit maximization pricing objectives:

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Pioneering

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____________ advertising tries to develop primary demand for a product category rather than demand for a specific brand.

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Growth in unit sales, dollar sales, or share of market

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Sales-oriented pricing objectives include:

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Awareness

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Pioneering ads for a product work best in which stage of the adoption process?

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straight salary

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A salesperson on a(n) ________ earns the same amount regardless of how he or she spends time.

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tries to develop selective demand for a specific brand.

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Competitive advertising

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protect certain limited-line retailers from "ruinous" price competition.

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"Unfair trade practice acts":

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net sales minus cost of goods sold.

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Gross margin is expressed as

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is the sum of those costs which do not change in total no matter how much is produced.

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Total fixed cost:

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average-cost pricing.

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Setting prices by adding a "reasonable" markup to a firm's average cost is called:

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zero

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At zero output, total variable cost is

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Prepared sales

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With the ___________ approach, the salesperson assumes that a customer faced with a particular stimulus will say yes to his request for an order.

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Straight salary

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A salesperson who earns the same gross pay each month is in what type of compensation program?

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case study.

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When a company includes "stories" and/or videos on its website of how it has helped individual customers solve an important problem, this is an example of a:

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Value pricing

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_____ means setting a fair price level for a marketing mix that really gives the target market superior customer value.

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is different from bait pricing in that the marketing manager really expects to sell leader priced items.

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Leader pricing:

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All of these alternatives are correct.

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Marketing managers should make specific strategy decisions about:

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Television

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The advertising medium of __________ has a wide reach, is good for getting attention and for demonstrations, but it is expensive, has a lot of clutter, and in many cases has a less selective audience.

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markup chain.

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The sequence of markups firms use at different levels in a channel is referred to as a

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Any or all of these are correct.

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Salespeople are likely to be responsible for:

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Consultative selling approach

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The __________ involves developing a good understanding of the individual customer's needs before trying to close the sale.

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prepared sales presentation.

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A sales presentation in which the sales rep does most of the talking, using a "canned" presentation to obtain a "yes" answer to a "trial close" is a:

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level of compensation.

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The two basic decisions to be made in developing a compensation plan are the method of payment and

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It does not consider the effect of price on the quantity that consumers will want.

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Identify a disadvantage of break-even analysis.

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selling price—unless otherwise stated.

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The text says "markup" means percent of:

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Price

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_____ is what a customer must give up to get the benefits offered by the rest of a firm's marketing mix.

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Institutional

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______________ advertising tries to develop goodwill for a company or even an industry—instead of a specific product.

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Average fixed cost per unit

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Which of the following costs decrease with increase in output?

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Packaging materials.

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Which of the following is an example of a variable cost for a producer?

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Skimming price

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When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200. What pricing policy was Apple using in its initial price strategy?

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usually involves a slow reduction in price over time.

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A "skimming pricing policy":

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total revenue and total cost.

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The price that maximizes profit is the one that results in the greatest difference between

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All of these alternatives are correct.

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Quantity discounts are offered by sellers to:

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tries to keep the product's name before the public.

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Reminder advertising

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competitive

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Advertising which tries to develop selective demand for a specific brand rather than a product category is called ______________ advertising.

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may be wise if a firm expects strong competition very soon after its product introduction.

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A "penetration pricing policy"

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direct competitive

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A supermarket manager should use ______________ advertising to increase store traffic during the middle of the week.

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cost-oriented and demand-oriented price setting.

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According to the text, the two basic approaches to price setting are

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None of these alternatives is correct.

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A prepared sales presentation:

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order takers

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A Wendy's fast-food restaurant needs ______________ to serve its customers.

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skimming

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A _____ price policy tries to sell the top of the demand curve at a high price before aiming at more price-sensitive customers.

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total variable cost.

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The sum of those changing expenses which are closely related to output is called:

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prestige pricing.

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Setting relatively high prices to suggest high-quality or high-status is:

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Sales quota

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___________ is the specific sales or profit objective a salesperson is expected to achieve.

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Evaluation and trial

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Persuading ads for a product work best in which stage of the adoption process?

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profit maximization

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An "all the traffic will bear" pricing objective is a ______________ objective.

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sales manager's

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It is usually the _________ job, perhaps with help from specialists in technology, to decide what types of sales technology tools are needed and how they will be used.

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selling to regular customers, completing most sales transactions, and maintaining relationships with their established customers.

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Order takers are concerned with:

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Meeting competition

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Which of the following is a status quo pricing objective?

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pay-per-click.

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When an advertiser pays a fixed amount (e.g. 70 cents) each time a Web surfer clicks on the advertiser's ad and links to the advertiser's website, this process is called a(n):

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Close sale

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Put the steps of the personal selling process in order: Prospect for new customers; Select target customer; Preplan sales call and presentation; Make sales presentation; ______________; and Follow up after the sales call.

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cookie

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When a previous visitor to Amazon.com returns to the site, the online retailer will instantly have information about that visitor because of the ___________ it placed on the visitor's computer during the first visit.

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Robinson-Patman Act

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Which act prohibits price discrimination unless it is based on cost differences or the need to meet competition?

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Target return

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Which of the following is a profit-oriented pricing objective?

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Consultative selling

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With the ___________ approach, the customer and the salesperson work together to satisfy the customer's needs and solve the problem.

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total sales revenue is at its highest.

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A telecommunications company offers its salespeople a traditional straight commission compensation plan based on a percentage of dollar sales. The company will incur the highest total personal selling expenses when:

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Prepared sales presentation

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Which sales presentation would be "best" for convenience (food) store clerks?

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behavioral targeting.

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When an online ad is delivered to a person's computer based on previous websites that person has visited, this is called:

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All

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Which of the following is not an example of price?

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Confirmation

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Reminder ads come under which stage of the adoption process in advertising?

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odd-even pricing

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Some retailers commonly use prices that end in certain numbers. They seem to assume that their customers see prices with these numbers as substantially lower. This is:

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Straight salary

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The _________ compensation plan increases the amount of sales supervision needed.

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comparing pricing alternatives.

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Break-even analysis can be useful for:

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Markup pricing

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Which of the following is an example of a cost-oriented price setting approach?

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All of these alternatives are correct.

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Customers are likely to be more price sensitive when:

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leader pricing

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A CVS drugstore that is trying to attract customers by advertising a special bargain price on a popular brand of cold remedy during the cold season is using:

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tax deductions

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All of the following are payment methods for personal selling except

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Price lining

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_____ is setting a few price levels for a product line and then marking all items at these prices.

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firms set their own prices for some period of time—rather than letting daily market forces determine their prices.

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Prices are called "administered" when:

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Banner

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________ ads are small rectangular boxes that usually include text, graphics, and sometimes video to create interest.

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advertising allowances.

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Price reductions given to channel members to encourage them to advertise or otherwise promote a firm's products locally are:

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Product bundle pricing

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_____ involves setting one price for a set of products.

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help explain technical details as needed.

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"Technical specialists":

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A specific level of profit.

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What is the objective of a target return strategy?

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direct competitive

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A supermarket manager should use ______________ advertising to increase store traffic during the middle of the week.

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basic list

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Final customers or users are normally asked to pay ______________ prices for products they buy.

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All of these are correct.

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People who help order-oriented salespeople—but don't try for orders themselves are:

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Confirmation

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Reminder ads for a product work best in which stage of the adoption process?

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Discounts

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______________ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself.

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should be supported by research evidence.

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"Comparative advertising":

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the change in total cost that results from producing one more unit.

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Marginal cost is:

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Depreciation

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Which of the following is an example of a fixed cost?

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Target return

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Which of the following pricing objectives is a producer seeking when the producer tries to obtain some percent return on his investment?

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stays the same even if production stops temporarily.

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Total fixed cost

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a seasonal discount.

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A discount that is offered to encourage buyers to stock earlier than present demand requires is:

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a need to meet competition and cost differences

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The Robinson-Patman Act says that to be legal, price differences must be based on:

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a way for a producer to get more promotion for its advertising dollar.

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Cooperative advertising is:

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Evaluation and trial

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Comparative ads for a product work best in which stage of the adoption process?

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Personal selling.

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For many firms, the largest single operating expense is:

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All

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Marginal analysis:

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and intermediaries sharing in the cost of local advertising.

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"Cooperative advertising" involves producers:

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Decision

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Point-of-purchase ads for a product work best in which stage of the adoption process?

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tries to sell the whole market at one low price.

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A penetration pricing policy

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stocking allowance.

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A reduction from list price given to intermediaries to get shelf space for a product is a:

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are used in an effort to control the minimum price of imported products.

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Antidumping laws:

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price movement down the demand curve.

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Over time, a skimming policy usually involves

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