BUSML 3150 Final – Flashcards
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What are the two ways a firm can obtain new products? A. New product development and external research and development B. New product development and existing product modification C. Acquisitions and external research and development D. Mergers and acquisitions E. Acquisitions and new product development
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Acquisitions and new product development
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To create successful new products, a company must _______. A. understand its consumers, markets, and competitors, and develop products that deliver superior value B. wait and see what new products its competitors offer C. spend more on R&D than its competitors D. cut costs to keep the price of new products low E. avoid innovation and only improve existing, successful products
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Understand its consumers, markets, and competitors, and develop products that deliver superior value
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What is the first step in the new product development process? A. Consulting with R&D on the feasibility of the new product B. Screening new product ideas C. Generating new product ideas D. Setting the budget E. Building a prototype
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Generating new product ideas
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Once management has decided on its product concept and marketing strategy, it can evaluate the business attractiveness of the proposal, which involves ___________. A. building and testing a prototype B. conducting concept testing C. conducting a business analysis D. introducing the new product to the market E. conducting test marketing
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Conducting a business analysis
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During the introductory stage of the product lifecycle, ______________. A. sales rise quickly and profits are high B. sales fall and profits decline C. profits rise quickly and there is rapid market acceptance of the product D. sales rise quickly, but profits are nonexistent E. sales are slow and profits nonexistent
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Sales are slow and profits nonexistent
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Which stage of the product lifecycle normally lasts longer than the previous stages and poses strong challenges to marketing management? A. Decline B. Introduction C. Maturity D. Growth E. Product development
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Maturity
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Which of the following statements regarding socially responsible product decisions is correct? A. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition. B. When companies drop products, they do not have any legal obligations to suppliers, dealers, and customers. C. Consumers who have been injured by a product with a defective design cannot sue manufacturers or dealers. D. Manufacturers are generally not concerned with product liability. E. Manufacturers are not required to comply with laws regarding product quality and safety.
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The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.
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Which of the following statements regarding the marketing of international products and services is correct? A. Markets and consumers all over the world are alike, so a company should always standardize international products. B. The trend toward growth of global service companies will not continue and will actually decline. C. Advertising is one service industry that has not needed to globalize its operations. D. Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets. E. Markets and consumers around the world are now so similar that international product and services marketers no longer face special challenges when marketing in foreign countries.
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Because markets and consumers around the world differ widely, companies must usually adapt their product offerings in different world markets.
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Which of the following statements concerning new products is correct? A. Modified and improved products are considered new. B. To be considered new, the product must be something consumers have not seen before. C. Most new products succeed within two years of their introduction. D. A modified product is not considered a new product. E. Products that are merely improved in some way are not considered new.
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Modified and improved products are considered new.
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When Dr. Lawncare developed his revolutionary new solar powered lawnmower, he knew that during the introductory stage of the product lifecycle ___________. A. profits would rise quickly and there would be rapid market acceptance of his product. B. sales would be low but profits would be high C. sales would be slow and profits would level off or decline D. sales would fall and profits would drop E. sales would be slow and profits non-existent
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sales would be slow and profits non-existent
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Which of the following statements is true regarding standardizing products for international markets? A. Standardization increases product design, manufacturing, and marketing costs. B. Standardization helps a company develop a different image in different countries. C. Markets and consumers all over the world are alike, so a company should always standardize international products. D. Standardization decreases product design, manufacturing, and marketing costs. E. Standardization ensures that products will succeed in foreign markets.
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Standardization decreases product design, manufacturing, and marketing costs.
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Most products are at which stage of their product lifecycle? A. Introduction B. Product development C. Maturity D. Decline E. Growth
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Maturity
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Which of the following statements about new product development strategy is correct? A. A new product will succeed as long as it is priced correctly. B. Good advertising creates successful new products. C. New products are usually successful because consumers like new things. D. Innovation can be very expensive and very risky. E. New products are not a major source of growth for companies.
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Innovation can be very expensive and very risky.
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Which of the following is NOT a product life cycle (PLC) stage? A. Introduction B. Growth C. Decline D. Commercialization E. Maturity
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Commercialization
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To be more socially responsible, some companies are appointing _____________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems. A. product managers B. product stewards C. brand managers D. attorneys E. product champions
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Product stewards
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Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Goldtone is using ________ to generate new product ideas. A. marketing strategy development B. crowdsourcing C. test marketing D. business analysis E. concept development
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Crowdsourcing
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The Learning Institute recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Learning Institute managers will most likely use ________ next to arrive at a realistic number of ideas to adopt. A. concept development B. idea screening C. business analysis D. concept testing E. crowdsourcing
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Idea screening
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Which of the following is an external source of new product ideas for a company? . A. R&D B. Intrapreneurial programs C. Innovation D. Trade magazines E. Hackathons
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Trade magazines
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After ideas are screened, the next stage of the new product development process is _____. A. idea generation B. product development C. commercialization D. concept development and testing E. test marketing
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Concept development and testing
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Which of the following would be an appropriate strategy during the maturity stage of the product lifecycle? A. Modify the market, product offering and marketing mix. B. Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy. C. Shift some advertising from building product awareness to building product conviction and purchase. D. Select products to maintain, harvest or drop. E. Use promotional spending to inform consumers and get them to try the product.
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Modify the market, product offering and marketing mix.
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Through _____ a company can obtain new products by buying a whole company, a patent, or a license to produce someone else's product. A. product life cycle strategies B. new product development C. acquisition D. idea generation E. internal R&D
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Acquisition
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The price ceiling, the maximum price a company can charge, is set by ________. A. customer perceptions of the product's value B. revenue C. the marketing mix D. product costs E. competitors
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Customer perceptions of the product's value
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What are the three major pricing strategies used by marketers? A. Customer value-based pricing, cost-based pricing, and revenue-based pricing B. Customer value-based pricing, cost-based pricing, and government-based pricing C. Demand-based pricing, cost-based pricing, and competition-based pricing D. Demand-based pricing, revenue-based pricing, and government-based pricing E. Customer value-based pricing, cost-based pricing, and competition-based pricing
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Customer value-based pricing, cost-based pricing, and competition-based pricing
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Which of the following statements is true regarding how price might play an important role in helping to accomplish company objectives? A. Pricing can create excitement for a brand. B. Pricing has no effect on the loyalty and support of resellers. C. Pricing has no effect on customer loyalty. D. Pricing one product has no effect on the sales of other products. E. Pricing is not subject to government intervention.
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Pricing can create excitement for a brand
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Internal factors that affect pricing include ________. A. the company's overall marketing strategy, objectives, and demand B. the company's overall marketing strategy, objectives, and the nature of the market C. the nature of the market, demand, and the economy D. the company's overall marketing strategy, objectives, marketing mix, and other organizational considerations. E. the company's overall marketing strategy, the nature of the market, and demand
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The company's overall marketing strategy, objectives, marketing mix, and other organizational considerations
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A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company use? A.Captive-product pricing B. Market-skimming pricing C. Product bundle pricing D. Market-penetration pricing E. Product line pricing
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Market-penetration pricing
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When a company sets a high price as the initial price of a new product, it is pursuing a ________ new product pricing strategy. A. optional-product B. captive-product C. market-skimming D. by-product E. market-penetration
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Market-skimming
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What are the five product mix pricing situations? A. Two-part pricing, fixed fee pricing, captive-product pricing, by-product pricing, and product bundle pricing B. Product line pricing, optional-product pricing, captive-product pricing, by-product pricing, and discount pricing C. Product line pricing, optional-product pricing, captive-product pricing, everyday low pricing, and service pricing D. Product line pricing, optional-product pricing, captive-product pricing, by-product pricing, and product bundle pricing E. Product line pricing, optional-product pricing, captive-product pricing, by-product pricing, and product mix pricing
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Product line pricing, optional-product pricing, captive-product pricing, by-product pricing, and product bundle pricing
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Printer companies often charge a fairly low price for their ink jet printers (relative to costs) and a high price for replacement cartridges. These companies are using a strategy of ________ pricing. A. captive-product B. product line C. by-product D. two-part pricing E. product-bundle
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Captive-product
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Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which price adjustment strategy are these schools using? A. Dynamic pricing B. Allowance pricing C. Preferred pricing D. Promotional pricing E. Segmented pricing
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Segmented pricing
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Dynamic pricing is when companies continually adjust prices to meet the characteristics and needs of individual customers and situations. Where is this method especially prevalent today? A. Service industries B. Online buying C. Large retailers D. Grocery stores E. Franchises
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Online buying
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Which of the following statements is true regarding initiating price cuts? A. Firms never cut prices; they only raise them. B. When faced with falling demand, firms should not cut prices. C. Cutting price has no effect on costs. D. If faced with excess capacity, a firm should not cut its price. E. Cutting prices in an industry loaded with excess capacity might lead to price wars.
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Cutting prices in an industry loaded with excess capacity might lead to price wars
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Which of the following is a potentially effective action a company could take in response to a competitor's price cut? A. Increase both price and quality B. Reduce both price and quality C. Raise price D. Not assess the impact of the price cut E. Decrease perceived value
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Increase both price and quality
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Gillette charges a fairly low price for its razors (relative to costs) and a high price for razor blades. It is using a strategy of ___________ pricing. A. by-product B. product line C. two-part pricing D. product-bundle E. captive-product
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Captive-product
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Which of the following statements is true regarding initiating price increases? A. Wherever possible, the company should consider ways to meet higher costs or demand without raising prices. B. Price increases do not impact profits. C. Companies do not need to communicate reasons for price increases to customers. D. Prices should be increased when there is a lack of demand. E. Cost inflation is not a factor in price increases.
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Wherever possible, the company should consider ways to meet higher costs or demand without raising prices
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A car buyer can choose a base model at one price, or one with a premium sound and navigation system at a higher price. This is an example of _______ pricing. A. by-product B. product line C. product-bundle D. captive-product E. optional-product
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Optional-product
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Many state colleges and universities charge one price for in-state students and a higher price for out-of-state students. Which form of segmented pricing are these schools using? A. promotional pricing B. customer-segment pricing C. time-based pricing D. location-based pricing E. product form pricing
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Location-based pricing
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Bath & Body Works offers "three-fer" deals on its soaps and lotions (such as three antibacterial soaps for $10). This is an example of _______ pricing. A. captive-product B. product-bundle C. by-product D. product line E. two-part pricing
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Product-bundle
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Geared2Beer, a craft beer brand, identifies a market segment that is willing to pay premium prices for its craft beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The company's pricing approach is referred to as ________. A. cost-plus pricing B. target costing C. value-added pricing D. EDLP E. target return pricing
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Target costing
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When Apple Computer Company introduced its iPhone, its priced the new product at $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a ___________________ new product pricing strategy. A. market-penetration B. market-skimming C. optional-product D. captive-product E. by-product
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Market-skimming
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Companies that use ________ continually adjust prices to meet the characteristics and needs of individual customers and situations. A. segmented pricing B. cash rebates C. psychological pricing D. promotional pricing E. dynamic pricing
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Dynamic pricing
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New, premium movie theaters offer features such as online reserved seating, high-backed leather executive chairs with armrests and footrests, the latest in digital sound, super-wide screens, and other amenities for which they charge a higher price. This is an example of which type of pricing? A. EDLP pricing B. High-low pricing C. Value-added pricing D. Cost-plus pricing E. Breakeven pricing
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Value-added pricing
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Which of the following is a cost-oriented pricing approach? A. High-low pricing B. Competition-based pricing C. Value added pricing D. Breakeven pricing E. EDLP pricing
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Breakeven pricing
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One major objective associated with a market-penetration pricing strategy is to ________. A. attract buyers willing to pay a higher price B. avoid everyday low pricing C. prevent customer dissatisfaction D. skim off small but profitable market segments E. win a large market share
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Win a large market share
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________ refers to setting price based on buyers' perception of value rather than on the seller's cost. A. Cost-based pricing B. Value-added pricing C. Customer value-based pricing D. Cost E. Good-value pricing
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Customer value-based pricing
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Which of the following statements is true regarding marketing channels and channel intermediaries? A. Very few producers use marketing channel intermediaries. B. Marketing channel decisions have no effect on other marketing decisions. C. Distribution systems cannot be used to give a company a competitive advantage. D. Distribution channel decisions involve only short-term commitments to other firms. E. Using marketing channel intermediaries means producers give up some control over how and to whom they sell their products.
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Using marketing channel intermediaries means producers give up some control over how and to whom they sell their products
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When assigning functions to channel members, it is important for producers to ________. A. assign functions to channel members who guarantee to lower the producers' costs B. assign functions to channel members who do not take risks C. assign functions to the channel members that can add the most value for the cost D. assign functions to firms they have worked with in the past E. assign functions to channel members not used by competitors
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Assign functions to the channel members that can add the most value for the cost
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A ________ consists of producers, wholesalers, and retailers acting as a unified system. A. horizontal marketing system B. conventional marketing system C. closed marketing system D. multichannel marketing system E. vertical marketing system
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Vertical marketing system
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Which of the following statements is true regarding channel organization? A. Channel members should act alone in their own short-run best interests before considering the interests of other channel members. B. Once a channel is organized and set, it rarely changes. C. In a well-organized channel, conflicts rarely occur. D. Channel organization is always based on formal interactions guided by strong organizational structures. E. Channel members are dependent on each other for the overall success of the channel.
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Channel members are dependent on each other for the overall success of the channel
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What are the four steps to designing marketing channels in their correct order? A. Setting channel objectives, analyzing consumer needs, identifying major channel alternatives, and evaluating the alternatives B. Identifying the design of competitors' channels, analyzing consumer needs, setting channel objectives, and evaluating channel alternatives C. Identifying the design of competitors' channels, setting channel objectives, analyzing consumer needs, and evaluating channel alternatives D. Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives. E. Analyzing consumer needs, setting channel objectives, identifying the design of competitors' channels, and evaluating the alternatives
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Analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating the alternatives
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Place steps of designing marketing channels in the correct order A. Identifying major channel alternatives B. Setting channel objectives C. Analyzing consumer needs D. Evaluating the alternatives
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1. Analyzing consumer needs 2. Setting channel objectives 3. Identifying major channel alternatives 4. Evaluating the alternatives
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When designing marketing channels, companies must determine the number of channel members to use at each level. The three strategies that are available to do this are ________ distribution. A. intensive, selective, and targeted B. intensive, selective, and exclusive C. open, closed, and franchise D. targeted, segmented, and global E. intensive, exclusive, and global
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Intensive, selective, and exclusive
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Which of the following statements is true regarding the selection of qualified channel members? A. To find and select qualified channel members, firms simply refer to a national online database. B. Producers vary in their ability to attract qualified marketing intermediaries. C. Selecting qualified channel members is largely controlled by government regulation. D. Established brands have no trouble finding and keeping qualified channel members. E. Firms select only qualified channel members in their immediate geographical area.
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Producers vary in their ability to attract qualified marketing intermediaries
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Most companies today see their intermediaries as first-line customers and focus on ________ to forge long-term relationships with channel members A. legal contracts B. government assistance C. promotional incentives D. partner relationship management E. discounted prices
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Partner relationship management
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What are the four major functions of marketing logistics? A. Warehousing, transportation, wholesaling, and retailing B. Warehousing, inventory management, transportation, and logistics information management C. Warehousing, inventory management, shipping, and receiving D. Warehousing, inventory management, transportation, and retailing E. Forecasting, order processing, transportation, and inventory management
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Warehousing, inventory management, transportation, and logistics information management
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Which of the following statements regarding marketing logistics is true? A. Marketing logistics have no effect on the environment and a firm's environmental sustainability efforts. B. Companies today are placing less emphasis on marketing logistics. C. Marketing logistics are not involved with the physical distribution of goods. D. Marketing logistics involve inbound logistics, outbound logistics, and reverse logistics. E. Marketing logistics involve outbound movement of products.
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Marketing logistics involve inbound logistics, outbound logistics, and reverse logistics
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A(n) _____ is made up of one or more independent producers, wholesalers, retailers, and consumers. A. corporate vertical marketing system B. administered vertical marketing system C. conventional distribution channel D. channel level E. franchise
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Conventional distribution channel
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A(n) _______ is made up of the company, suppliers, distributors, and, ultimately, customers who "partner" with each other to improve the performance of the entire system. A. marketing channel B. supply chain C. contact D. channel level E. value delivery network
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Value delivery network
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A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer. A. marketing channel B. value delivery network C. supply chain D. contact E. channel level
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Channel level
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Companies now use ________ and supply chain management software to help recruit, train, organize, manage, motivate, and evaluate relationships with channel partners. A. customer relationship management B. channel management C. distribution D. logistics E. partner relationship management
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Partner relationship management
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Companies today see channel members as first-line customers and practice strong ________. A. B2B selling B. partner relationship management C. trade promotions D. consumer advertising E. discount pricing
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Partner relationship management
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_______ involves reusing, recycling, refurbishing, or disposing of broken, unwanted, or excess products returned by consumers or resellers. A. Inventory management B. Reverse logistics C. Outbound logistics D. Warehousing E. Inbound logistics
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Reverse logistics
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Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this represent? A. Franchise B. Contractual VMS C. Corporate VMS D. Conventional distribution channel E. Administered VMS
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Administered VMS
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Which channel partners in a company's supply chain are upstream from a manufacturer or producer? A. Business distributors B. Customers C. Wholesalers D. Retailers E. Suppliers.
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Suppliers
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When setting channel objectives, companies should state the objectives in terms of ______. A. competitor's objectives B. expected profitability C. the length of the channel D. targeted levels of customer service E. exclusive distribution arrangements
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Targeted levels of customer service
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Full-line forcing is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. Which of the following statements is true regarding full-line forcing? A. It is always illegal. B. It is only illegal in Europe. C. It is only legal in New York, California and Texas. D. It is always legal. E. It may or may not be legal.
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It may or may not be legal
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Sherwin-Williams sells its paint and other branded products exclusively through company-owned retail stores. Sherwin-Williams has established a(n) _________. A. contractual VMS B. vertical marketing system C. corporate VMS D. conventional distribution channel E. administered VMS
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Corporate VMS
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What is the first step in marketing channel design? A. Identifying the types of intermediaries to use. B. Identifying the number of intermediaries to use. C. Setting channel objectives. D. Evaluating major channel alternatives. E. Analyzing consumer needs
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Analyzing consumer needs
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Producers of convenience products typically use ______ distribution. A. intensive B. franchise C. direct D. exclusive E. selective
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Intensive
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Which of the following describes a just-in-time logistics system? A. Just-in-time logistic systems eliminate the need for forecasting. B. Just-in-time logistics systems allow producers and retailers to carry large amounts of inventory. C. Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations. D. Just-in-time logistics systems greatly increase inventory-carrying and inventory-handling costs. E. Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed.
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Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations
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What are the four major functions of logistics? A. Warehousing, inventory management, transportation, logistics information management B. Warehousing, inventory management, transportation, retailing C. Retailing, inventory management, transportation, and logistics information management D. Inventory management, transportation, shipping, warehousing E. Warehousing, inventory management, retailing, logistics information management
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Warehousing, inventory management, transportation, logistics information management
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What are the four characteristics used to classify retailers? A. The amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized B. The amount of service they offer, the relative prices they charge, the target customers, and the size of the store C. The breadth and depth of their product lines, the relative prices they charge, the location of the store, and the size of the store D. The location of the store, the relative prices they charge, the target customers, and the size of the store E. The amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and the size of the store
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The amount of service they offer, the breadth and depth of their product lines, the relative prices they charge, and how they are organized
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What is omni-channel retailing? A. Selling products online B. Setting up franchises in different locations C. Allowing one supplier to sell to multiple retailers D. Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping E. Developing close partnerships between wholesalers and retailers
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Creating a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping
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Which of the following statements about retailer marketing decisions is correct? A. Retailers face three major marketing decisions: segmentation and targeting, store differentiation and positioning, and the retail marketing mix. B. Store location is not an important retail decision. C. Retailers do not have to segment and target their markets. D. Stores do not need to differentiate and position themselves. E. Retailers cannot differentiate themselves on their service mix.
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Retailers face three major marketing decisions: segmentation and targeting, store differentiation and positioning, and the retail marketing mix
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Retailers must decide on which three major product variables? A. Product assortment, services mix, and store atmosphere B. Product assortment, store atmosphere, and price C. Product assortment, services mix, and price D. Product assortment, price, and location E. Product assortment, services mix, and location
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Product assortment, services mix, and store atmosphere
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Which of the following statements about major retail trends is true? A. The lifecycle of new retail forms is increasing. B. Online buying is growing at a much brisker pace than retail buying as a whole C. The green movement has not yet affected retailing. D. The global expansion of major retailers into other countries has slowed down. E. Technology has had little impact on retailing
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Online buying is growing at a much brisker pace than retail buying as a whole
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The three major groups of wholesalers are ________. A. merchant wholesalers, full-service wholesalers, and limited service wholesalers B. merchant wholesalers, brokers and agents, and manufacturers' and retailers' branches and offices C. merchant wholesalers, brokers and agents, and full-service wholesalers D. merchant wholesalers, wholesale clubs, and big box stores E. merchant wholesalers, brokers and agents, and wholesale clubs
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Merchant wholesalers, brokers and agents, and manufacturers' and retailers' branches and offices
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Which of the following statements about wholesaling is true? A. Wholesalers do not need to segment their markets. B.Wholesalers do not need to differentiate themselves. C. Wholesalers do not make positioning decisions. D. Wholesalers do not need to define a target market. E. Wholesalers must make decisions regarding their marketing mix.
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Wholesalers must make decisions regarding their marketing mix
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___________ are the largest single group of wholesalers, accounting for roughly 50 percent of all wholesaling. A. Merchant wholesalers B. Agents C. Manufacturers' representatives D. Manufacturers' agents E. Brokers
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Merchant wholesalers
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The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called _______. A. experiential retailing B. showrooming C. off-price retailing D. shopper retailing E. mobile retailing
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Showrooming
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What is the overall goal when retailers choose their product assortment? A. Differentiate the retailer while matching target shoppers' expectations B. Offer as many products as they can fit on the shelves. C. Offer products that will appeal to as many segments as possible. D. Only choose products that will maximize profits. E. Offer the same products as their competitors.
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Differentiate the retailer while matching target shoppers' expectations
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One retail trend resulting from economic conditions is ________. A. green retailing B. the rise of megaretailers C. the growth of social media retailing D. tighter consumer spending E. pop-up stores
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Tighter consumer spending
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By practicing ______ retailing, today's retailers are increasingly adopting environmentally sustainable practices. A. off-price B. independent off-price C. green D. experiential E. service
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Green
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Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called ___________. A. retail convergence B. retail blending C. social media retailing D. megaretailing E. green retailing
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Retail convergence
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Which type of retailer carries a narrow product line with deep assortments within those lines, such as apparel stores, sporting goods stores, furniture stores, florists, and bookstores? A. Superstores B. Department stores C. Convenience stores D. Specialty stores E. Supermarkets
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Specialty stores
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After segmenting and defining their target markets, what should retailers do next? A. Decide on the product assortment. B. Decide how they will differentiate and position themselves in the market C. Decide on the level of service. D. Decide on the location. E. Decide on the store atmosphere
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Decide how they will differentiate and position themselves in the market
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______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale. A. Retailing B. Warehousing C. Shopper marketing D. Showrooming E. Internal marketing
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Shopper marketing
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________ refers to the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use. A. Shopper marketing B. Retailing C. Warehousing D. Wholesaling E. Manufacturing
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Retailing
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Macy's carries several product lineslong dash—typically clothing, home furnishings, and household goodslong dash—with each line operating as a separate department managed by specialist buyers or merchandisers. Macy's is best described as a(n) ________. A. superstore B. discount store C. off-price retailer D. specialty store E. department store
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Department store
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The retail marketing mix consists of which of the following? A. Product and service assortment, retail prices, promotion, and retail segmentation B. Product and service assortment, retail prices, promotion and store differentiation. C. Product and service assortment, retail prices, promotion, and location D. Product and service assortment, retail prices, promotion, and retail targeting E. Product and service assortment, retail prices, promotion, and store positioning
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Product and service assortment, retail prices, promotion, and location
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What are the five promotion mix tools used by marketers to communicate customer value? A. Advertising, public relations, personal selling, sales promotion, and direct and digital marketing B. Television advertising, radio advertising, online advertising, social media advertising, and outdoor advertising C. Advertising, business to business selling, personal selling, sales promotion, and direct and digital marketing D. Advertising, public relations, personal selling, sales promotion, and telemarketing E. Product, price, place, promotion, and advertising
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Advertising, public relations, personal selling, sales promotion, and direct and digital marketing
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Which of the following statements is true regarding the promotion mix? A. Public relations includes press releases, sponsorships, events, and Web pages B. Direct and digital marketing cannot be used to target individual consumers. C. Sales promotions are long-term incentives to encourage the purchase or sale of a product or service. D. Personal selling is not used to engage customers. E. Advertising is a personal form of marketing communication.
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Public relations includes press releases, sponsorships, events, and Web pages
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Integrated marketing communications must deliver company and brand messages that are ________. A. clear, consistent, and compelling B. clear, compelling, and controversial C. relevant, humorous, and exciting D. unique, current, and consistent E. informative, persuasive, and distinct
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Clear, consistent, and compelling
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Which of the following statements is correct regarding marketing communications today? A. New media formats have allowed marketers to reach smaller communities of consumers in more engaging ways B. Digital technologies have not yet had an impact on marketing communications. C. Television advertising is growing rapidly. D. Marketers are shifting toward mass marketing communication strategies. E. Consumers have changed very little in the past fifty years.
answer
New media formats have allowed marketers to reach smaller communities of consumers in more engaging ways
question
What are the four important decisions made when developing an advertising program? List them in order. A. Setting advertising objectives, setting the advertising budget, developing advertising strategy, and evaluating advertising effectiveness B. Developing message strategy, developing message execution, selecting media, and determining media timing C. Setting the advertising budget, setting advertising objectives, developing advertising strategy, and evaluating advertising effectiveness D. Setting advertising objectives, setting the advertising budget, developing message strategy, and determining media timing E. Setting advertising objectives, setting the advertising budget, determining the impact on sales and profits, and determining the return on investment
answer
Setting advertising objectives, setting the advertising budget, developing advertising strategy, and evaluating advertising effectiveness
question
In developing advertising strategies, marketers must make decisions regarding ___________________. A. organizing the advertising function; adaptation to international markets B. objectives and media C. budget and message D. budget and audience E. audience and media
answer
Organizing the advertising function; adaptation to international markets
question
________ is used by companies to build good relations with consumers, investors, the media, and their communities. A. Advertising B. Public relations C. Personal selling D. Telemarketing E. Sales promotions
answer
Public relations
question
Which of the following statements about public relations is correct? A. Public relations is not used to engage consumers. B. It is difficult to integrate public relations into social media. C. The lines between advertising and public relations are becoming more blurred. D. Public relations is used only to promote products. E. The impact of public relations on public awareness comes at a much higher cost than advertising.
answer
The lines between advertising and public relations are becoming more blurred
question
In the promotion mix, ________ refers to any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. A. advertising B. sales promotion C. personal selling D. public relations E. crowdsourcing
answer
Advertising
question
Which of the following statements is correct regarding the use of advertising as a promotional tool? A. Advertising allows marketers to communicate with buyers in a personal way. B. Advertising can reach masses of people only if they are geographically concentrated. C. The cost per exposure of advertising is high. D. Advertising reaches many people slowly. E. Consumers tend to view advertised products as more legitimate
answer
Consumers tend to view advertised products as more legitimate
question
________ is a short-term incentive to encourage the purchase or sale of a product or service. A. Sales promotion B. Personal selling C. Public relations D. Direct and digital marketing E. Advertising
answer
Sales promotion
question
Specific promotional tools used in _______ include press releases, sponsorships, events, and web pages. A. public relations B. advertising C. personal selling D. direct and digital marketing E. sales promotion
answer
Public relations
question
________ advertising is utilized most often by mature, well-known brands. A. Comparative B. Informative C. Attack D. Reminder E. Persuasive
answer
Reminder
question
Which advertising objective is used heavily when introducing a new product category? A. Persuasive B. Reminder C. Informative D. Attack E. Comparative
answer
Informative
question
Which advertising objective is best suited to building selective demand? A. Informative B. Persuasive C. Attack D. Reminder E. Humorous
answer
Persuasive
question
What is the goal of integrated marketing communications? A. To lower overall marketing expenditures B. To integrate communications via online and mobile technologies C. To maximize return on investment D. To have different media carry different messages about a brand E. To deliver clear, consistent, and compelling messages about the organization and its brands
answer
To deliver clear, consistent, and compelling messages about the organization and its brands
question
Which promotional tool is best suited to deliver a personalized and immediate message to a specific customer or customer community? A. Public relations B. Sales promotion C. Personal selling D. Advertising E. Direct marketing
answer
Direct marketing
question
Which promotional tool engages directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships? A. Sales promotion B. Personal selling C. Direct and digital marketing D. Public relations E. Advertising
answer
Direct and digital marketing
question
Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations function? A. Investor relations B. Lobbying C. Development D. Press relations E. Public affairs
answer
Development
question
Which of the following statements regarding the changing communications landscape is correct? A. In terms of communication, today's consumers are less empowered. B. The digital age has had little impact on marketing communications. C. The dominance of television, magazines, newspapers and other traditional mass media is declining D. Marketers today are shifting their efforts to mass marketing. E. More than ever, consumers are relying on marketers for information.
answer
The dominance of television, magazines, newspapers and other traditional mass media is declining
question
The public relations function of _______ is used to build and maintain national or local community relationships. A. lobbying B. press relations C. development D. public affairs E. investor relations
answer
Public affairs
question
Advertising appeals should have three characteristics. These characteristics are: A. to be meaningful, to be believable, and to be distinctive B. to be meaningful, to be believable, and to be humorous C. to be meaningful, to be distinctive, and to use scientific evidence D. to be believable, to be distinctive and to be consumer generated E. to be meaningful, to be believable, and to use scientific evidence
answer
To be meaningful, to be believable, and to be distinctive
question
Personal selling can be very effective in complex selling situations because it involves ________ interactions and engagement between salespeople and individual customers. A. profitable B. non-personal C. competitive D. informal E. interpersonal
answer
Interpersonal
question
Which of the following statements about personal selling is correct? A. Salespeople sell; they do not have a role in creating value for the customer. B. The role of personal selling is very consistent from company to company. C. Many customers are unable to distinguish the salesperson from the company. D. Personal selling is a fairly new profession. E. The sales force should work separately from other marketing functions.
answer
Many customers are unable to distinguish the salesperson from the company
question
Which of the following lists the six major sales force management decision steps in their correct order? A. Designing sales force strategy and structure, recruiting and selecting salespeople, training salespeople, supervising salespeople, evaluating salespeople, and compensating salespeople B. Designing sales force strategy and structure, recruiting and selecting salespeople, training salespeople, compensating salespeople, supervising salespeople, and evaluating salespeople C. Evaluating salespeople, designing sales force strategy and structure, recruiting and selecting salespeople, training salespeople, compensating salespeople, and supervising salespeople D. Designing sales force strategy and structure, recruiting and selecting salespeople, training salespeople, evaluating salespeople, compensating salespeople, and supervising salespeople E. Recruiting and selecting salespeople, training salespeople, designing sales force strategy and structure, evaluating salespeople, compensating salespeople, and supervising salespeople
answer
Designing sales force strategy and structure, recruiting and selecting salespeople, training salespeople, compensating salespeople, supervising salespeople, and evaluating salespeople
question
What are the four sales force structures a company can use? A. Territorial, international, product, and service B. Inside, outside, individual, and team based C. Geographic, territorial, product, and customer D. Simple, complex, inside, and outside E. Territorial, product, customer, and complex
answer
Territorial, product, customer, and complex
question
What is the first step in the personal selling process? A. Handling objections B. Approach C. Prospecting and qualifying D. Preapproach E. Presentation and demonstration
answer
Prospecting and qualifying
question
Closing a sale with a particular customer is a short-term ________ orientation, but the selling process must also take a ________ orientation and look at the long term. A. relationship; transactional B. profit; relationship C. transactional; profit D. company; relationship E. transactional; relationship
answer
Transactional; relationship
question
Which of the following statements regarding sales promotions is correct? A. Sales promotions are offered only to consumers B. In the current economy, consumers have become more deal oriented C. The use of sales promotions has declined in recent years D. Sales promotions offer buyers long-term incentives to purchase a good or service E. Sales promotions are not used by not-for-profit organizations
answer
In the current economy, consumers have become more deal oriented
question
Promotional tools offered to consumers include ________. A. coupons, rebates, off-list discounts, and price packs B. coupons, sales contests, samples, and price packs C. rebates, coupons, samples, and push money D. trade shows, coupons, samples, and push money E. rebates, coupons, price packs, and samples
answer
Rebates, coupons, price packs, and samples
question
Which of the following statements about coordinating marketing and sales is correct? A. Marketing and sales do not require coordination. B. Coordinating marketing and sales has little effect on customer relations. C. The sales force only needs to coordinate its efforts with marketing planners. D. Coordination between marketing and sales is not necessary because companies today see them as the same function. E. Coordinating marketing and sales can be improved by increasing communication between the two groups.
answer
Coordinating marketing and sales can be improved by increasing communication between the two groups
question
After the presentation and demonstration step in the sales process, a salesperson should next be prepared to _______. A. handle objections B. immediately close the sale C. follow up with the customer D. prospect the customer E. approach qualified customers
answer
Handle objections
question
GE Healthcare employs different sales forces for diagnostic imaging, life sciences, and integrated IT products and services. GE Healthcare has adopted a(n) ______ sales force structure. A. complex B. customer C. product D. territorial E. market
answer
Product
question
What is the first decision made in sales force management? A. Evaluating salespeople. B. Recruiting and selecting salespeople. C. Designing sales force strategy and structure. D. Compensating salespeople. E. Training salespeople.
answer
Designing sales force strategy and structure
question
Place the steps in sales force management in order A. Compensating salespeople B. Evaluating salespeople C. Supervising salespeople D. Training salespeople E. Designing sales force strategy and structure F. Recruiting and selecting salespeople
answer
1. Designing sales force strategy and structure 2. Recruiting and selecting salespeople 3. Training salespeople 4. Compensating salespeople 5. Supervising salespeople 6. Evaluating salespeople
question
Justin, Inc., a U.S.-based watch manufacturer, sells its products in China, Russia, France, and India. To manage sales, Justin appoints a number of sales representatives to each location. Justin has adopted a ________ sales force structure. A. product B. customer C. complex D. market E. territorial
answer
Territorial
question
________ promotions are used to generate business leads, stimulate purchases, reward customers, and motivate salespeople. A. Sales force B. Clutter C. Trade D. Business E. Consumer
answer
Business
question
Which of the following statements is true regarding salespeople? A. Most salespeople lack common sense and social skills. B. Salespeople must be fast talkers. C. Salespeople do not play a role in solving customer problems. D. The best salespeople are the ones who work closely with customers for mutual gain. E. Salespeople are not well educated.
answer
The best salespeople are the ones who work closely with customers for mutual gain
question
At which step in the personal selling process does a salesperson meet the customer for the first time? A. Preapproach B. Qualifying C. Prospecting D. Presentation E. Approach
answer
Approach
question
What are the four elements of a compensation plan for salespeople? A. A fixed amount, a variable amount, expenses, and commission B. A fixed amount, a variable amount, expenses and salary C. A fixed amount, a variable amount, salary and commission D. A fixed amount, a variable amount, stock ownership, and fringe benefits E. A fixed amount, a variable amount, expenses, and fringe benefits
answer
A fixed amount, a variable amount, expenses, and fringe benefits
question
Which of the following are objectives of trade promotions? A. Getting more sales force support for current or new products and getting salespeople to sign up new accounts B. Generating business leads, stimulating purchases, rewarding customers, and motivating salespeople C. Urging short-term customer buying and gaining customer loyalty D. Boosting consumer brand involvement and short-term buying E. Getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space
answer
Getting retailers to carry new items and more inventory, buy ahead, or promote the company's products and give them more shelf space
question
In complex selling situations, personal selling can be more effective than advertising because it is ______________. A. less engaging than advertising B. only used for face to face customer interactions C. interpersonal D. designed to reach large groups of consumers E. nonpersonal
answer
Interpersonal
question
Which of the following occurs during the presentation step in the personal selling process? A. The salesperson tells the buyer a value story. B. The salesperson meets the buyer for the first time. C. The salesperson closes the deal. D. The salesperson attempts to "razzle dazzle" the buyer. E. The salesperson handles objections.
answer
The salesperson tells the buyer a value story
question
What is the final step in the seven-step personal selling process? A. Prospecting B. Follow-up C. Qualifying D. Presentation E. Closing
answer
Follow-up
question
It's time for the Super Bowl, and the end-of-the-aisle displays at the supermarket feature chips, dips, and soft drinks. What type of sales promotion tool is this? A. Sponsorship B. Premium C. Sample D. Point-of-purchase E. Allowance
answer
Point-of-purchase
question
Which of the following statements is true regarding the global marketing environment today? A. The World Trade Organization (WTO) helps promote trade between nations. B. Most nations are very similar in their political-legal environments. C. Monetary regulation is no longer an important consideration in deciding whether to do business in a particular country. D. A free trade zone is an area where products are traded free. E. Since the world has become a global community, culture has become an unimportant consideration when conducting business in foreign countries.
answer
The World Trade Organization (WTO) helps promote trade between nations
question
What are the two economic factors that reflect the country's attractiveness as a market? A. Free trade zones and tariffs B. Monetary regulations and income distribution C. Attitudes toward international buying and monetary regulation D. Industrial structure and political stability E. Industrial structure and income distribution
answer
Industrial structure and income distribution
question
Which market entry strategy has the greatest amount of commitment, risk, control, and profit potential? A. Joint ownership B. Direct exporting C. Licensing D. Direct investment E. Indirect exporting
answer
Direct investment
question
There are two extremes for global marketing strategies. At one extreme is ________ global marketing, and at the other is ________ global marketing. A. cultural; uniform B. direct; indirect C. regional; local D. standardized; uniform E. standardized; adaptive
answer
Standardized; adaptive
question
What do marketers need to adjust when using an adaptive global marketing strategy? A. Adjust the price, and marketing mix B. Adjust the product, prices, and promotion C. Adjust the product and price D. Adjust the price and marketing strategy E. Adjust the marketing strategy and mix to each target market
answer
Adjust the marketing strategy and mix to each target market
question
When deciding on a global marketing organization, what do most companies do first? A. Set up a joint venture. B. Create an international division. C. Hire international marketing consultants. D. Become a global organization. E. Establish an export department.
answer
Establish an export department
question
Which of the following are the three ways an international division's operating units can be organized? A. Geographical organizations, regional organizations, or global organizations B. Local offices, foreign offices, or global offices C. Geographical organizations, world product groups, or international subsidiaries D. Local product groups, regional product groups, or world product groups E. Export departments, sales departments, or marketing departments
answer
Geographical organizations, world product groups, or international subsidiaries
question
MyGym has more than 250 franchisees located in 31 countries. This approach to foreign market entry is best described as __________. A. licensing B. direct exporting C. joint ownership D. direct investment E. management contracting
answer
Licensing
question
When MyGym first introduced franchises in Mexico, the company quickly identified significant language and cultural differences. For instance, in the U.S., parents planning birthday parties were accustomed to two-hour parties. In Mexico, however, families were accustomed to four-hour parties. So Mexican MyGym franchisees offered four hours parties. What type of product approach did MyGym ultimately take in its Mexican market? A. Product innovation B. Product invention C. Straight product extension D. Standardization E. Product adaptation
answer
Product adaptation
question
MyGym is exploring the idea of offering music programs in adult fitness centers. In the context of international marketing, this type of product approach is consistent with the concept of __________. A. product adaptation B. product modification C. straight product extension D. product invention E. new product development
answer
Product invention
question
When MyGym set up its "Master Franchise" in Mexico, it staffed the franchise with local Mexican managers and staff who oversaw and coordinated operations in Mexico. What type of global marketing organization did MyGym use? A. An international subsidiary B. A global organization C. A geographical organization D. An export department E. A world product group
answer
A geographical organization
question
When MyGym management began evaluating overseas market expansion, it first looked at countries in which English was fairly common so that the company would not have to greatly modify its marketing programs. The marketing approach the company took in addressing its new global markets is best described as __________. A. International brand extension B. adapted global marketing C. indirect exporting D. standardized global marketing E. international marketing
answer
Standardized global marketing
question
________ is a global communication strategy of fully adapting advertising messages to local markets. A. Product invention B. Dual adaptation C. Product adaptation D. Communication adaptation E. Straight extension
answer
Communication adaptation
question
Many companies get involved in several international markets and ventures. They can be __________, with country managers who are responsible for salespeople, sales branches, distributors, and licensees in their respective countries. A. export departments B. world product groups C. international divisions D. international subsidiaries E. geographical organizations
answer
Geographical organizations
question
In a(n) ________ economy, the vast majority of people engage in simple agriculture. A. industrializing B. raw material exporting C. emerging D. industrial E. subsistence
answer
Subsistence
question
________ involves changing the products to meet local requirements, conditions, or wants. A. Communication adaption B. Promotion C. Product invention D. Product adaptation E. Price
answer
Product adaptation
question
In a(n) __________economy, fast growth in manufacturing results in rapid overall economic growth. A. raw materials exporting B. subsistence C. income distribution D. industrial E. emerging
answer
Emerging
question
University Boutiques promotes its brand in new international markets by providing rights to local boutiques to use its patented designs and brand name. In this case, University Boutiques' market-entering strategy is referred to as ________. A. licensing B. joint ownership C. exporting D. management contracting E. contract manufacturing
answer
Licensing
question
_______ is(are) demographic characteristic indicators of market potential. A. Monetary and trade regulations B. Government bureaucracy C. Political stability D. Population size and growth E. National priorities
answer
Population size and growth
question
The simplest way to enter a foreign market is through ________. A. importing B. exporting C. joint venturing D. direct investment E. tariffs
answer
Exporting
question
________ involve(s) the direct exchange of goods and services. A. Emerging economies B. A raw material exporting economy C. A subsistence economy D. Barter E. Industrial economies
answer
Barter
question
_______ economies are major exporters of manufactured goods, services, and investment funds. A. Subsistence B. Industrial C. Emerging D. Income distribution E. Raw material exporting
answer
Industrial
question
Countries can set ________, which is a limit on the amount of foreign imports that they will accept in certain product categories. A. a tariff B. a quota C. duties D. exchange controls E. nontariff trade barriers
answer
A quota
question
Venezuela produces oil in surplus, whereas Guyana produces rice in surplus and El Salvador produces coffee in surplus. These nations have little hard currency to pay for purchases from other countries and frequently exchange involves a(n) ________. A. barter B. fine C. quota D. tariff E. excise
answer
Barter
question
McDonald's operates the same basic fast-food look, layout, and operating model in its restaurants around the world but ________ its menu and design to local tastes. A. licenses B. adapts C. directs D. imports E. exports
answer
Adapts
question
Twenty-Four7, a cosmetic firm located in the United States, markets its products in Asian and European countries through independent distributors. In this case, Twenty-Four7 has entered international markets through ________. A. joint venturing B. joint ownerships C. direct investment D. franchising E. indirect exporting
answer
Indirect exporting
question
________ is when a company adds the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. A. Product invention B. Price escalation C. Product adaptation D. Straight extension E. Communication adaptation
answer
Price escalation
question
Which of the following statements is most likely true about the new product development process? A. The first step in developing a new product involves determining any budgetary or distribution limitations. B. Most firms discourage employees from contributing new product ideas because of legal concerns. C. In most cases, concept testing is followed by concept development. D. A product concept should be developed for each idea before it goes through idea screening. E. Customers, competitors, distributors, and suppliers are major sources of new product ideas.
answer
Customers, competitors, distributors, and suppliers are major sources of new product ideas
question
________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk. A. Competition-based B. Value-added C. Cost-based D. Good-value E. Demand-based
answer
Cost-based
question
Kelly Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? A. SoftStar B. BlueHill C. the consumer D. Abundon E. Kelly Pinker
answer
Abundon
question
Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________. A. self-service retailer B. off-price retailer C. full-service retailer D. supermarket E. convenience store
answer
Full-service retailer
question
In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. A. direct marketing B. advertising C. public relations D. predictive analytical E. indirect procurement
answer
Direct marketing
question
Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children's ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard? A. prospecting B. qualifying C. follow-up D. handling objections E. presentation and demonstration
answer
Presentation and demonstration
question
When adapting advertising messages, media may also need to be adapted internationally because media availability and regulations vary from country to country. This illustrates ________. A. communication extension B. product invention C. communication adaptation D. straight product extension E. product adaptation
answer
Communication adaptation
question
Original products, product improvements, product modifications, and new brands that the firm development through its own research and development (R&D) efforts
answer
New product development
question
The systematic search for new product ideas is what step in the new product development 1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
answer
Idea generation
question
A company invites broad communities of people - customers, employees, independent scientists and researchers, and even the public at large - into the innovation process
answer
Crowdsourcing
question
Helps spot good ideas and drop poor ones as soon as possible is what step in the new product development 1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
answer
Idea screening
question
An attractive idea must be developed into a product concept is what step in the new product development 1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
answer
Concept development and testing
question
Last step in new product development
answer
Commercialization
question
A detailed version of the idea stated in meaningful consumer terms A. Product concept B. Product idea C. Product image D. Concept Testing
answer
Product concept
question
An idea for a possible product that the company can see itself offering to the market A. Product concept B. Product idea C. Product image D. Concept Testing
answer
Product idea
question
The way consumers perceive an actual or potential product A. Product concept B. Product idea C. Product image D. Concept Testing
answer
Product image
question
Calls for testing new product concepts with groups of target consumers; concepts may be presented symbolically or physically A. Product concept B. Product idea C. Product image D. Concept Testing
answer
Concept Testing
question
Designing an initial marketing strategy for introducing this car to the market is what step in the new product development 1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
answer
Marketing strategy development (consists of 3 parts: describes the target market, outlines the products' planned price, describes the planned long-run sales)
question
Involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is what step in the new product development 1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
answer
Business analysis
question
R&D or engineering develops the product concept into a physical product is what step in the new product development 1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
answer
Product development
question
The stage at which the product and its proposed marketing program are introduced into realistic market settings; Gives the marketer experience with marketing a product before going to the great expense of full introduction is what step in the new product development 1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
answer
Test marketing
question
A type of test market where new products and tactics are tested among controlled panels of shoppers and stores
answer
Controlled test markets
question
A type of test market where new researchers measure consumer responses to new products and marketing tactics in laboratory stores or simulated online shopping environments
answer
Simulated test markets
question
Introducing the new product into the market is what step in the new product development 1. Idea generation 2. Idea screening 3. Concept development and testing 4. Marketing strategy development 5. Business analysis 6. Product development 7. Test marketing 8. Commercialization
answer
Commercialization
question
Where do new product ideas come from in the idea generation phase of new product development?
answer
Internal sources (internal social networks and intrapreneurially programs), external sources (customers, competitors, distributors, and suppliers aka crowdsourcing)
question
T or F: In consumer goods, 70 to 90 percent of all new products fail within the first year
answer
True
question
When company cannot recover its costs to produce and market product
answer
Absolute failure
question
Product returns a profit but fails to achieve sales, profit, or market share goals.
answer
Relative failure
question
Why do new products fail? (8 reasons)
answer
1. Company can't support fast growth 2. Unclear product benefits/positioning product to leverage a fad 3. Poor match between features and customer desires/bad brand extensions 4. The product defines a new category and requires substantial consumer education but doesn't get it (aka poor promotion) 5. The product is revolutionary, but there's no market for it/price is too high. 6. Overestimation of market size 7. No discernible benefits 8. Inferior products
question
Place the stages of product life cycle in order A. Growth B. Maturity C. Product development D. Decline E. Introduction
answer
1. Product development 2. Introduction 3. Growth 4. Maturity 5. Decline
question
First stage of product life cycle
answer
Product development
question
Last stage of product life cycle
answer
Decline
question
Begins when the company finds and develops a new product idea is what stage of the product life cycle -Sales are zero 1. Product development 2. Introduction 3. Growth 4. Maturity 5. Decline
answer
Product development
question
A period of slow sales growth as the product is introduced in the market is what stage of the product life cycle -Profits are nonexistent because of heavy expenses 1. Product development 2. Introduction 3. Growth 4. Maturity 5. Decline
answer
Introduction
question
A period of rapid market acceptance and increasing profits is what stage of the product life cycle 1. Product development 2. Introduction 3. Growth 4. Maturity 5. Decline
answer
Growth
question
A period of slowdown in sales growth because the product has achieved acceptance by most potential buyers is what stage of the product life cycle 1. Product development 2. Introduction 3. Growth 4. Maturity 5. Decline
answer
Maturity
question
Most products spend the longest time in this stage of the product life cycle than in any other phase 1. Product development 2. Introduction 3. Growth 4. Maturity 5. Decline
answer
Maturity
question
A period when sales fall and profits drop is what stage of the product life cycle 1. Product development 2. Introduction 3. Growth 4. Maturity 5. Decline
answer
Decline
question
Companies must identify products in the decline stage and decide whether to _____, ______, or ____them
answer
Maintain (repositioning or reinvigorating brand), harvest (reducing various costs, hoping that sales hold up), drop (sell the product to another firm or simply liquidate it at salvage value)
question
T or F: All products follow all 5 stages of the product life cycle
answer
False
question
Has the longest life cycles A. product class B. product form C. brand
answer
Product class
question
Have the standard PLC shape A. product class B. product form C. brand
answer
Product form
question
Life cycle can change quickly because of changing competitive attacks and responses A. product class B. product form C. brand
answer
Brand
question
The amount of money charged for a product or service -The sum of all the values that customers give up to gain the benefits of having or using a product or service
answer
Price
question
Only value in the marketing mix that produces revenue
answer
Price
question
-Uses buyers' perceptions of value as the key to pricing -Price is considered along with all other marketing mix variables before the marketing program is set A. Value-based pricing B. Cost-based pricing C. Competition-based pricing D. Break-even pricing (target return pricing)
answer
Value-based pricing
question
-Offering the right combination of quality and good service at a fair price -Introducing less-expensive versions of established brand name products or new lower-price lines A. Break-even pricing (target return pricing) B. Good-value pricing C. Value-added pricing D. Competition-based pricing E. Cost-plus pricing (markup pricing)
answer
Good-value pricing (type of value-based pricing)
question
-Attach value-added features and services to differentiate their offers and thus support their higher prices -Adding amenities and charging more rather than cutting services to maintain lower prices A. Break-even pricing (target return pricing) B. Good-value pricing C. Value-added pricing D. Competition-based pricing E. Cost-plus pricing (markup pricing)
answer
Value-added pricing (type of value-based pricing)
question
Adding a standard markup to the cost of the product A. Break-even pricing (target return pricing) B. Good-value pricing C. Value-added pricing D. Competition-based pricing E. Cost-plus pricing (markup pricing)
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Cost-plus pricing (markup pricing)
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The firm tries to determine the price at which it will break even or make the target return it is seeking A. Break-even pricing (target return pricing) B. Good-value pricing C. Value-added pricing D. Competition-based pricing E. Cost-plus pricing (markup pricing)
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Break-even pricing
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-Involves setting prices based on competitors' strategies, costs, prices, and market offerings -Consumers base their judgments of a product's value on the prices that competitors charge for similar products A. Break-even pricing (target return pricing) B. Good-value pricing C. Value-added pricing D. Competition-based pricing E. Cost-plus pricing (markup pricing)
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Competition-based pricing
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-The relationship between the price charged and the resulting demand level -Shows the number of units the market will buy in a given time period at different prices that might be charged
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Demand curves
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How responsive demand will be to a change in price
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Price elasticity of demand
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If demand hardly changes with a small change in price
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Inelastic demand
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If demand changes greatly with a change in price
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Elastic demand (If demand is elastic sellers will consider lowering their prices to produce more revenue)
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If demand is elastic sellers will consider _____ their prices to produce more revenue
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Lowering
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Many companies that invent new products set high initial prices to skim revenues layer by layer from the market
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Market-skimming pricing (price skimming)
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Setting prices across an entire product line is which product mix pricing strategy A. Product line pricing B. Optional-product pricing C. Captive-product pricing D. By-product pricing E. Product bundle pricing
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Product line pricing
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Pricing optional or accessory products sold with the main product is which product mix pricing strategy A. Product line pricing B. Optional-product pricing C. Captive-product pricing D. By-product pricing E. Product bundle pricing
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Optional-product pricing
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Pricing products that must be used with the main product (i.e., video games and video game consoles) is which product mix pricing strategy A. Product line pricing B. Optional-product pricing C. Captive-product pricing D. By-product pricing E. Product bundle pricing
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Captive-product pricing
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Pricing low-value products that get rid of or make money on them is which product mix pricing strategy -Company seeks a market for these products to help offset the costs of disposing of them and help make the price of the main product more competitive A. Product line pricing B. Optional-product pricing C. Captive-product pricing D. By-product pricing E. Product bundle pricing
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By-product pricing
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Pricing bundles of products sold together at a reduced price is which product mix pricing strategy A. Product line pricing B. Optional-product pricing C. Captive-product pricing D. By-product pricing E. Product bundle pricing
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Product bundle pricing
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Adjusting prices for psychological effect; consumers usually perceive higher-priced products as having higher quality
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Psychological prices
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Prices that buyers carry in their minds and refer to when looking at a given product
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Reference prices
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A psychological pricing tactic in which numeric value is utilized to affect the customer's perception of product value.
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Odd/even pricing (odd pricing (19.99) often seen as more of a deal, while even pricing (65.00) is often used to distinguish luxury items)
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Reducing the amount of product in a package
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Downsizing (an example of perceived price change vs. actual change - canned tuna: the product looks the same, you pay the same, but the weight of the tuna is reduced by 5.8%)
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Saves search costs of finding lowest overall prices -Prices low all the time, no coupons or sale specials -Charging constant, everyday low prices with few sales or discounts
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EDLP
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The ideas that most inexperienced consumers use price as an indicator of quality and price becomes crucial when consumers have little knowledge about certain products/brands describes the _____ relationship
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Price-quality
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Provides the thrill of the chase for the lowest price -Consumers hunt for the cheapest price -Charging higher prices on an everyday basis coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices
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High/low pricing
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Selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business A. Predatory pricing B. Retail (or resale) price maintenance C. Deceptive pricing D. Scanner fraud
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Predatory pricing (sellers must set prices without talking to competitors otherwise price collusion is suspected)
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Seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade
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Robinson-Patman Act
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-A manufacturer cannot require dealers to charge a specified retail price for its product -They can suggest retail prices, but cannot refuse to sell or punish dealer by shipping late A. Predatory pricing B. Retail (or resale) price maintenance C. Deceptive pricing D. Scanner fraud
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Retail (or resale) price maintenance
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Occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers A. Predatory pricing B. Retail (or resale) price maintenance C. Deceptive pricing D. Scanner fraud
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Deceptive pricing
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A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
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Marketing channel
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Transform the assortments of products made by producers into the assortments wanted by consumers
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Marketing intermediaries
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-Marketing channels that have no intermediary levels - the company sells directly to the consumers and they own their own retailer -Useful because they allow for maximum control over presentation to the end-user and positioning efforts
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Direct marketing channels
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-Marketing channels that contain one or more intermediaries -Can greatly expand the reach to targeted end-users. -Builds on the distribution expertise of channel partners. -Relinquishes control of downstream activities.
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Indirect marketing channels
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Target, grocery stores, etc. that you go into as the consumer A. Retailer B. Wholesaler C. Agents
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Retailer
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Buys products from producers and then sells to consumers, kind of invisible to customers -Most of the food industry A. Retailer B. Wholesaler C. Agents
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Wholesaler
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Help producer sell product to consumers but don't actually own the product A. Retailer B. Wholesaler C. Agents
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Agents
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-Involves the use of multiple direct channels, or the use of both direct and indirect channels by sellers -Often used to reach two or more customer segments, or to sell distinct lines
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Dual distribution
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Process by which traditional intermediaries are eliminated as companies question the value added by layers in the distribution channel
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Disintermediation
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A strategy in which they stock their products in as many outlets as possible so that they can be available where and when consumers want them A. Intensive distribution B. Exclusive distribution C. Selective distribution
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Intensive distribution
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Chanel conflict that occurs among firms at the same level of the channel
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Horizontal conflict
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Channel conflict that occurs between different levels of the same channel -More common
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Vertical conflict
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Producer gives only a limited number of dealers the exclusive right to distribute its products in their territories -Luxury brands A. Intensive distribution B. Exclusive distribution C. Selective distribution
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Exclusive distribution
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The use of more than one but fewer than all of the intermediaries who are willing to carry a company's products -Consumer electronics, furniture, and home appliance brands A. Intensive distribution B. Exclusive distribution C. Selective distribution
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Selective distribution
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Involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit A. Customer-centered logistics B. Outbound logistics C. Inbound logistics D. Reverse logistics E. Supply chain management F. Marketing logistics
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Marketing logistics
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Starts with the marketplace and works backward to the factory or even to sources of supply A. Customer-centered logistics B. Outbound logistics C. Inbound logistics D. Reverse logistics E. Supply chain management F. Marketing logistics
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Customer-centered logistics
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Moving products from the factory to resellers and ultimately to customers A. Customer-centered logistics B. Outbound logistics C. Inbound logistics D. Reverse logistics E. Supply chain management F. Marketing logistics
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Outbound logistics
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Moving products and materials from suppliers to the factory A. Customer-centered logistics B. Outbound logistics C. Inbound logistics D. Reverse logistics E. Supply chain management F. Marketing logistics
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Inbound logistics
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Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers A. Customer-centered logistics B. Outbound logistics C. Inbound logistics D. Reverse logistics E. Supply chain management F. Marketing logistics
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Supply chain management
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Most companies must store their goods while they wait to be sold A. Warehousing B. Inventory management C. Transportation D. Just-in-time logistics E. Integrated logistics management
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Warehousing
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Managers must maintain the delicate balance between carrying too little inventory and carrying too much A. Warehousing B. Inventory management C. Transportation D. Just-in-time logistics E. Integrated logistics management
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Inventory management
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Providing better customer service and trimming distribution costs requires teamwork, both inside the company and among all the marketing channel organizations A. Warehousing B. Inventory management C. Transportation D. Just-in-time logistics E. Integrated logistics management
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Integrated logistics management
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Includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use
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Retailing
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A store that carries several product lines-typically clothing, home furnishings, and household goods-with each line operated as a separate department managed by specialist buyers or merchandisers A. Specialty store B. Department store C. Supermarket D. Convenience store E. Discount store F. Off-price retailer G. Superstore
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Department store
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A relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer's total needs for grocery and household products A. Specialty store B. Department store C. Supermarket D. Convenience store E. Discount store F. Off-price retailer G. Superstore
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Supermarket
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Most frequently visited type of retail store A. Specialty store B. Department store C. Supermarket D. Convenience store E. Discount store F. Off-price retailer G. Superstore
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Supermarket
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A relatively small store located near residential areas, open 24/7, and carrying a limited line of high-turnover convenience products at slightly higher prices A. Specialty store B. Department store C. Supermarket D. Convenience store E. Discount store F. Off-price retailer G. Superstore
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Convenience store
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A store that carries standard merchandise sold at lower prices with lower margins and higher volumes A. Specialty store B. Department store C. Supermarket D. Convenience store E. Discount store F. Off-price retailer G. Superstore
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Discount store
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A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail A. Specialty store B. Department store C. Supermarket D. Convenience store E. Discount store F. Off-price retailer G. Superstore
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Off-price retailer
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These include factory outlets owned and operated by manufacturers, independent off-price retailers owned and run by entrepreneurs or by divisions of larger retail corporations, and warehouse (or wholesale) clubs selling a limited selection of goods at deep discounts to consumers who pay membership fees A. Specialty store B. Department store C. Supermarket D. Convenience store E. Discount store F. Off-price retailer G. Superstore
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Off-price retailer
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A very large store that meets consumers' total needs for routinely purchased food and nonfood items A. Specialty store B. Department store C. Supermarket D. Convenience store E. Discount store F. Off-price retailer G. Superstore
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Superstore
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This includes supercenters, combined supermarket and discount stores, and category killers, which carry a deep assortment in a particular category A. Specialty store B. Department store C. Supermarket D. Convenience store E. Discount store F. Off-price retailer G. Superstore
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Superstore
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Refers to how managers manipulate the design of the building, interior space, layout of aisles, texture of carpets and walls, scents, colors, shapes, and sounds experienced by customers to achieve a certain effect
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Atmospherics
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In retail atmospherics, the atmosphere influences _____ which influences ______
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Emotional response, behavior
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Includes all the activities involved in selling goods and services to those buying them for resale or business use
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Wholesalers
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Independently owned businesses that take title to all merchandise handled A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Merchant wholesalers
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Provide a full set of services: carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Full-service wholesalers
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Sell primarily to retailers and provide a full range of services A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Wholesale merchants
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-Sell to manufacturers rather than to retailers -Provide several services, such as carrying stock, offering credit, and providing delivery -May carry a broad range of merchandise, a general line, or a specialty line A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Industrial distributors
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Offer fewer services to their supplier and customers A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Limited-service wholesalers
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Carry a limited line of fast-moving goods and sell to small retailers for cash A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Cash-and-carry wholesalers
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Perform primarily a selling and delivery function -Carry a limited line of semiperishable merchandise (such as milk, break, snack foods), which is sold for cash as deliveries are made to supermarkets, small groceries, hospitals, restaurants, factory cafeterias, and hotels A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Truck wholesalers (or truck jobbers)
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Do not carry inventory or handle the product -On receiving an order, they select a manufacturer, who then ships the merchandise directly to the customer -Operate in bulk industries, such as coal, lumber, and heavy equipment A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Drop shippers
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Serve groceries and drug retailers, mostly in nonfood items -Send delivery trucks to stores, where the delivery people set up toys, paperbacks, hardware items, health and beauty aids, or other items -Price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory records A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Rack jobbers
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Farmer-owned members that assemble farm produce for sale in local markets -Often attempt to improve product quality and promote a co-op brand name, such as Sun-Maid raisins, Sunkist oranges, or Diamond nuts A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors
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Producers' cooperatives
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Send catalogs to or maintain Web sites for retail, industrial, and institutional customers featuring jewelry, cosmetics, specialty foods, and other small items -Its primary customers are businesses in small outlying areas A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors L. Brokers M. Agents
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Mail-order or Web wholesalers
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Bring buyers and sellers together and assist in negotiation -Paid by the party who hired them and do not carry inventory, get involved in financing, or assume risk A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors L. Brokers M. Agents
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Brokers
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Represent either buyers or sellers on a more permanent basis than brokers do A. Merchant wholesalers B. Full-service wholesalers C. Limited-service wholesalers D. Cash-and-carry wholesalers E. Truck wholesalers (or truck jobbers) F. Drop shippers G. Rack jobbers H. Producers' cooperatives I. Mail-order or Web wholesalers J. Wholesale merchants K. Industrial distributors L. Brokers M. Agents
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Agents
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Represent two or more manufacturers of complementary lines -Often used in such lines as apparel, furniture, and electrical goods -Hired by small manufacturers who use agents to open new territories or cover territories that cannot support full-time salespeople A. Manufacturers' agents B. Selling agents C. Purchasing agents D. Commission merchants E. Manufacturers' and retailers' branches and offices
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Manufacturers' agents
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Have contractual authority to sell a manufacturer's entire output -Serves as a sales department and has significant influence over prices, terms, and conditions of sale -Found in product areas such as textiles, industrial machinery and equipment, coal and coke, chemicals, and metals A. Manufacturers' agents B. Selling agents C. Purchasing agents D. Commission merchants E. Manufacturers' and retailers' branches and offices
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Selling agents
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Generally have a long-term relationship with buyers and make purchases for them, often receiving, inspecting, warehousing, and shipping the merchandise to buyers -Help clients obtain the best goods and prices available A. Manufacturers' agents B. Selling agents C. Purchasing agents D. Commission merchants E. Manufacturers' and retailers' branches and offices
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Purchasing agents
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Take physical possession of products and negotiate sales -Used most often in agricultural marketing by farmers who do not want to sell their own output -Take a truckload of commodities to a central market, sell for the best price, deduct a commission and expenses, and remit the balance to the producers A. Manufacturers' agents B. Selling agents C. Purchasing agents D. Commission merchants E. Manufacturers' and retailers' branches and offices
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Commission merchants
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Wholesaling operations conducted by sellers or buyers themselves rather than operating through independent wholesalers A. Manufacturers' agents B. Selling agents C. Purchasing agents D. Commission merchants E. Manufacturers' and retailers' branches and offices
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Manufacturers' and retailers' branches and offices
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Any communication by marketers that informs, persuades, reminds, and builds relationships with potential buyers of a product to influence an opinion or elicit a response - Informing potential customers of the availability of the product, its price, and its place
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Promotion
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Goal of introduction phase of product life cycle A. Inform B. Persuade C. Remind
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Inform (create awareness and generate primary demand for product)
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Goal of growth phase of product life cycle A. Inform B. Persuade C. Remind
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Persuade
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Goal of maturity phase of product life cycle A. Inform B. Persuade C. Remind
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Persuade
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Goal of decline phase of product life cycle A. Inform B. Persuade C. Remind
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Remind
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-Producer is reaching out to end consumer, trying to get consumer to want product so consumer demands from retailer and retailer demands from producer -The company promotes directly to final consumers, creating a demand vacuum that "pulls" the product through the channel -The producer directs its marketing activities toward final consumers to induce them to buy the product
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Pull strategy
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The company "pushes" the product to resellers, who in turn "push" to consumers -Involves pushing the product through marketing channels to final customers -The producer directs its marketing activities toward channel members to introduce them to carry the product and promote it to final consumers
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Push strategy
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Consists of the specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools that the company uses to engage consumers, persuasively communicate customer value, and build customer relationships
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Promotional mix
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Is there more advertising in business to consumer or business to business?
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Business to consumer
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Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events A. Advertising B. Public relations C. Sales promotion D. Personal selling E. Direct and digital marketing
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Public relations
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Coupons and samples are examples of A. Advertising B. Public relations C. Sales promotion D. Personal selling E. Direct and digital marketing
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Sales promotion
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Personal customer interactions by the firm's sales force for the purpose of engaging customers, making sales, and building customer relationships -An individual is representing a manufacturer and works with an individual customer to sell a product A. Advertising B. Public relations C. Sales promotion D. Personal selling E. Direct and digital marketing
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Personal selling
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Is there more personal selling in business to consumer or business to business?
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Business to business
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Engaging directly with carefully targeting individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships A. Advertising B. Public relations C. Sales promotion D. Personal selling E. Direct and digital marketing
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Direct and digital marketing
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A specific communication task to be accomplished with a specific target audience during a specific period of time is known as the ______ objective
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Advertising
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4 methods for setting advertising budget
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1. Affordable method 2. Percentage-of-sales method 3. Competitive-parity method 4. Objective-and-task method
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Set the promotion budget at the level they think the company can afford Advertising budget setting method: A. Affordable method B. Percentage-of-sales method C. Competitive-parity method D. Objective-and-task method
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Affordable method
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Setting their promotion budget at a certain percentage of current or forecasted sales Advertising budget setting method: A. Affordable method B. Percentage-of-sales method C. Competitive-parity method D. Objective-and-task method
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Percentage-of-sales method
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Setting their promotion budgets to match competitors' outlays -They monitor competitors' advertising or get industry promotion spending estimates from publications or trade associations and then set their budgets based on the industry average Advertising budget setting method: A. Affordable method B. Percentage-of-sales method C. Competitive-parity method D. Objective-and-task method
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Competitive-parity method
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Company sets its promotion budget based on what it wants to accomplish with promotion -Defining specific promotion objectives -Determining the tasks needed to achieve these objectives -Estimating the costs of performing these tasks Advertising budget setting method: A. Affordable method B. Percentage-of-sales method C. Competitive-parity method D. Objective-and-task method
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Objective-and-task method
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Represents the merging of advertising and entertainment in an effort to create new avenues for reaching consumers with more engaging messages
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Madison & Vine
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Make ads and brand content themselves so entertaining, or so useful, that people want to watch them
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Advertainment
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Involve making the brand an inseparable part of some other form of entertainment or content
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Brand integrations
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Bring the message strategy to life in a distinctive and memorable way
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Creative concept
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Advertising media is all about determining -______, ____, ______, and _____
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Reach, frequency, impact, engagements
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A measure of the percentage of people in the target market who are exposed to an ad campaign during a specific time Advertising media: A. Reach B. Frequency C. Impact D. Engage
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Reach
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A measure of how many times the average person in the target market is exposed to a message Advertising media: A. Reach B. Frequency C. Impact D. Engage
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Frequency
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The qualitative value of message exposure through a given medium Advertising media: A. Reach B. Frequency C. Impact D. Engage
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Impact
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Relevance of ad content is much more important than how many people it reaches Advertising media: A. Reach B. Frequency C. Impact D. Engage
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Engage
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Analyzing, planning, implementing, and controlling sales force activities -Includes designing sales force strategy and structure as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm's salespeople
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Sales force management
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Each salesperson is assigned to an exclusive geographic area and sells the company's full line of products or services to all customers in that territory -Increases salesperson's desire to build local customer relationships that in turn improve selling effectiveness How can sales forces be organized? A. Territorial sales force structure B. Product sales force structure C. Customer sales force structure
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Territorial sales force structure
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The salesforce specializes along product lines How can sales forces be organized? A. Territorial sales force structure B. Product sales force structure C. Customer sales force structure
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Product sales force structure
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A company organizes its sales force along customer or industry lines How can sales forces be organized? A. Territorial sales force structure B. Product sales force structure C. Customer sales force structure
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Customer sales force structure
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A type of sales force organization where a company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account -It then determines the number of salespeople needed to call on each class of accounts the desired number of times It is called the _____ approach
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Workload
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When recruiting and selecting salespeople, note that the best salespeople have four key talents:
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Intrinsic motivation, a disciplined work style, the ability to close a sale, the ability to build relationships with customers
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How do you evaluate salespeople?
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Sales reports, call reports, expense reports
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Describes the feeling that salespeople have about their opportunities, value, and rewards for good performance
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Organizational climate
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How do you motivate salespeople?
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Positive incentives, sales meetings, sales contests
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Place the personal selling process steps in order A. Closing B. Presentation and demonstration C. Preapproach D. Prospecting and qualifying E. Follow-up F. Handling objections G. Approach
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1. Prospecting and qualifying 2. Preapproach 3. Approach 4. Presentation and demonstration 5. Handling objections 6. Closing 7. Follow-up
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Place the new product development steps in order A. Test market B. Business analysis C. Idea screening D. Market strategy and development E. Concept development and testing F. Idea generation G. Commercialization H. Product development
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1. Idea generation 2. Idea screening 3. Concept development and testing 4. Market strategy and development 5. Business analysis 6. Product development 7. Test market 8. Commercialization
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Include a wide range of tools - from samples, coupons, refunds, premiums, and point-of purchase displays to contests, sweepstakes, and event sponsorships A. Consumer promotions B. Trade promotions C. Business promotions
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Consumer promotions
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Can persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to customers A. Consumer promotions B. Trade promotions C. Business promotions
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Trade promotions
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_______ tend to push more, putting more of their funds into personal selling
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Business to business
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____ tend to pull more, putting more of their funds into advertising
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Business to consumer
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3 types of media in the digital space
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Paid, owned, earned
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-Anything you as a company are paying for -Native advertising because it comes up as part of your user experience -Print -Television A. Paid B. Owned C. Earned
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Paid
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Company has control over what content is on this page -Brochure -Retail stores -Company website A. Paid B. Owned C. Earned
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Owned
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Consumers are creating content -Word of mouth -Facebook -Twitter What type of media?
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Earned
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Three primary ways to enter an international market
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Exporting, joint venturing, direct investment
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Company may passively export its surpluses from time to time, or it may make an active commitment to expand exports to a particular market A. Exporting B. Joint venturing C. Direct investment
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Exporting
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Joining with foreign companies to produce or market products or services A. Exporting B. Joint venturing C. Direct investment
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Joint venturing
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Simple way for a manufacturer to enter international market; the company enters into an agreement with a licensee in the foreign market -Buys the right to use the company's manufacturing process, trademark, patent, trade secret, or other item of value A. Licensing B. Contract manufacturing C. Management contracting
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Licensing
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Company makes agreements with manufacturers in the foreign market to produce its produc or provide its service A. Licensing B. Contract manufacturing C. Management contracting
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Contract manufacturing
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The domestic firm provides the management know-how to a foreign company that supplies the capital A. Licensing B. Contract manufacturing C. Management contracting
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Management contracting
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Consist of one company joining forces with foreign investors to create a local business in which they share possession and control
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Joint ownership
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The development of foreign-based assembly or manufacturing facilities A. Exporting B. Joint venturing C. Direct investment
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Direct investment
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Same marketing mix worldwide
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Standardization
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In ______ global markets, companies essentially using the same marketing strategy approaches and marketing mix worldwide
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Standardized
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Adjust marketing strategy and mix elements to each target market
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Adaptation
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In ______ global marketing, the producer adjusts the marketing strategy and mix elements to each international target market, resulting in more costs but hopefully producing a larger market share and return
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Adapted
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Product decisions: -Sell the same product in the new market -Marketing a product in a foreign market without making significant changes to the product A. Straight extension B. Product adaptation C. Product invention D. Pattern advertising
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Straight extension
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Product decisions: -Develop a brand new product for that new market -Creating something new to meet the requirements of a given country A. Straight extension B. Product adaptation C. Product invention D. Pattern advertising
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Product invention
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-Plan globally, act locally. -Broad outlines or basic positioning is given, but details can be adapted. -Assuming that there are some differences in culture and consumer behavior even if primary function is the same. -Standardization plus localization! A. Straight extension B. Product adaptation C. Product invention D. Pattern advertising
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Pattern advertising
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Standardized strategies are more likely to work when cultural factors are _____
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Similar (and when target customers are in cosmopolitan urban areas)
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Consists of one or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, perhaps even at the expense of the whole system A. Conventional distribution channel B. Vertical marketing system C. Horizontal marketing system D. Multichannel distribution systems
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Conventional distribution channel
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Consists of producers, wholesalers, and retailers acting as a unified system. One channel member owns the others and has contracts with them, or wields so much power that they must all cooperate A. Conventional distribution channel B. Vertical marketing system C. Horizontal marketing system D. Multichannel distribution systems
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Vertical marketing system
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Integrates successive stages of production and distribution under single ownership A. Corporate vertical marketing system B. Contractual vertical marking system C. Administered vertical marketing system
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Corporate vertical marketing system
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Consists of independent firms at different levels of production and distribution that join together through contracts to obtain more economies or sales impact than each could achieve alone A. Corporate vertical marketing system B. Contractual vertical marking system C. Administered vertical marketing system
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Contractual vertical marking system
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Leadership is not assumed through common ownership or contractual ties but through the size and power of one or a few dominant channel members. Manufacturers of a top brand can obtain strong trade cooperation and support from resellers A. Corporate vertical marketing system B. Contractual vertical marking system C. Administered vertical marketing system
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Administered vertical marketing system
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Two or more companies at one level join together to follow a new marketing opportunity. They can combine financial, production, or marketing resources to accomplish more than any one company could alone A. Conventional distribution channel B. Vertical marketing system C. Horizontal marketing system D. Multichannel distribution systems
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Horizontal marketing system
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A single firm sets up two or more marketing channels to reach one or more customer segments A. Conventional distribution channel B. Vertical marketing system C. Horizontal marketing system D. Multichannel distribution systems
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Multichannel distribution systems
