Exam 3 Marketing 350

The regrouping activity which involves putting together a variety of products to give a target market what it wants is called:
In _____ channel systems, the channel members agree by contract to cooperate with each other.
A channel of distribution:
is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.
A “channel captain”
might be any member of the channel (that is, at any level in the channel).
views the members of the channel as a unit.
should help to make the channel more efficient by reducing conflict.
Correct: All of these alternatives are correct.
Which of the following is true of selective distribution?
It is selling through only those intermediaries who will give the product special attention.
Intensive distribution is often very appropriate for:
convenience products and business supplies.
The regrouping activity which involves grading or sorting products into the grades and qualities desired by different target markets is called:
In a _____ the whole channel focuses on the same target market at the end of the channel.
vertical marketing system
The “regrouping activity” which involves breaking carload or truckload shipments into smaller quantities as products get closer to final customers is called:
“Discrepancies of quantity” occur because
producers seek economies of scale.
A major benefit of _____ is that it protects the products and simplifies handling during shipping.
Logistics, or physical distribution, is the ________________ part of the marketing mix.
The best way to ship computer parts from St. Louis, Missouri, to Columbus, Ohio, when the parts need to be at a factory in Columbus within three days is to use:
Products that require a high frequency of scheduled shipments would be least suited to travel by
A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.
supply chain
Physical distribution differs from logistics in that
physical distribution is another common name for logistics
As a mode of transportation, railroad freight would be least suited for ____
fresh fruit.
A cheese processor having regular need for regional storage of a large quantity of cheese probably should use ______________ warehouses.
_____ as a mode of transport serves a very limited number of locations but has a high dependability in meeting schedules
It is usually most economical to ship bulky nonperishable items, such as coal and iron ore, by
A cash-and-carry wholesaler does NOT:
grant credit.
are large, self-service stores which stress low price to get faster turnover.
A rack jobber is an example of
limited-function merchant wholesaler.
Which of the following statements about convenience stores is False?
Prices on individual items are usually lower than in a supermarket.
A(n) _____ is a blend of manufacturers’ agent and selling agent—handling the entire export function for several producers of similar but noncompeting lines.
combination export manager
Expanded assortment, reduced margins, and more information are characteristics of
the Internet.
____________ take over the whole marketing job of producers, not just the selling function.
Selling agents
Which of the following are NOT “conventional retailers”?
The trend toward scrambled merchandising can be explained by:
the fact that some retailers have traditionally used markups which seem “too high” to other retailers.
A grocery store or mass-merchandiser might rely on a _____ to decide which paperback books or magazines it sells.
rack jobber
Which of the following is NOT an example of sales promotion?
Secure favorable media coverage
“Promotion” includes:
personal selling, mass selling, and sales promotion
The _____ can help the promotion effort by spreading word-of-mouth information and advice among other consumers
early adopters
American Tourister, Inc.—a producer of luggage—is planning to introduce a new product line. The marketing manager is having her sales force call on retailers to explain American Tourister’s consumer advertising plans, the unique features of the new luggage, how the distributors can best promote it, and what sales volume and profit margins they can reasonably expect. This is an example of:
a “pushing” policy.
The MOST COMMON method of setting the marketing budget is to
use some predetermined percentage of past or forecast sales.
Which of the following groups is likely to be the first to adopt a new product?
A retailer’s promotion objective might be to ______________ its target market about its marketing mix.
Correct Any of these might be a promotion objective.
In the traditional communication model, the source can receive immediate feedback as the result of _______________.
Personal Selling
The best way to reach INNOVATORS is through:
impersonal and scientific information sources.
Communication with noncustomers, including labor, public interest groups, stockholders, and the government is generally referred to as
public relations.
Very large retail stores that carry not only foods—but all goods and services which consumers purchase ROUTINELY—are called:
Regarding discount houses, which of the following statements is TRUE?
The early discount houses emphasized hard goods.
While some conventional retailers cut price on competitive items, discount houses regularly sell all of their products at smaller markups.
As early discounters were able to offer full assortments, they also sought “respectability” and moved to better locations.
Discount houses are fast-turnover, price-cutting operations.
Correct All of these statements about discount houses are TRUE.
The _____ says that new types of retailers enter the market as low-status, low-margin, low-price operators and then, if successful, evolve into more conventional retailers offering more services with higher operating costs and higher prices.
wheel of retailing theory
A retailer’s “Product” may include:
a particular assortment of goods and services.
special orders.
advice from salesclerks.
Correct All of these are included in a retailer’s “Product.”
Supermarkets are
large stores specializing in groceries with self-service and wide assortments.
The “wheel of retailing” theory says that:
new types of retailers enter as low-status, low-margin, low-price operators and eventually offer more services and charge higher prices.
The wheel of retailing concept
is consistent with the emergence of supermarkets in the 1930s.
__________ are a type of limited-function wholesaler that owns products they sell, but do not actually handle, stock, or deliver them.
“Retailing” refers to:
the sale of products to final consumers.
Which of the following is NOT retailing?
A vacuum cleaner manufacturer hires its own sales force to sell door to door.
A private ambulance service takes an accident victim to a hospital and charges him $100.
A group of students sell donuts to people passing by their dorm.
A book wholesaler has a mail-order catalog which offers discounts to final consumers who buy by mail.
Correct All of these are examples of retailing.
A national grocery store chain has decided to sell an assortment of hobby, gardening, and cook books. Buyers in the chain’s main office are not certain what to stock because they think that consumers in different areas of the country will probably be interested in different books. The store managers have said they don’t know what to order either. The chain should probably get help from a
rack jobber
Regarding supermarkets, which of the following is NOT true?
After-tax profits are very good—averaging 10 to 15 percent of sales.
Convenience (food) stores offer:
a limited assortment of “fill-in” items.
Compared to conventional retailers, which of the following types of retailers added more convenient service while reducing product assortment?
vending machines
Franchise operations:
currently account for about a third of all retail sales.
Have had to deal with a competitive threat posed by large retailers that have taken over wholesale functions.
Are using e-commerce to serve customers more effectively.
Face competitive pressure from shipping companies such as FedEx and UPS that make it easier for producers to ship directly to customers.
Are beginning to increase profitability by carefully selecting their retailer-customers.
Correct All of these alternatives are true.
A retailer’s “Place” may include:
a physical store and/or an online store.
store size and layout.
number of stores.
store hours.
Correct All of these are included in a retailer’s “Place.”
A large food retailer acquiring a cheese factory is an example of:
vertical integration
If Wilkinson were to sell Norelco the exclusive rights to produce and sell its brand of shavers in Japan for a 5 percent royalty on all sales, it would be using:
______________ means selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.
Intensive distribution
____ conflict occurs between firms at different levels in the channel of distribution.
Consumers usually want to shop for milk, meat, vegetables, and fruits at one convenient location. Grocery stores that offer all of these products help to alleviate this ___________.
discrepancy of assortment
A producer using several competing channels to distribute its products to its target market is using ______________ distribution.
In ______ channel systems, ordering is routinized, inventory and sales information is shared over computer networks, accounting is standardized, and promotion efforts are coordinated.
A convenience product would probably be sold using:
Intensive distribution.
is selling some of what the firm produces to foreign markets.
can be a way to get rid of surplus output.
can come from a real effort to look for new opportunities.
Correct All of these alternatives are correct.
Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems.
traditional channel
______________ (as a way to enter foreign markets) means selling the right to use some process, trademark, patent, or other right for a fee.
______________ means selling a product only through those intermediaries who will give the product special attention.
Selective distribution
A vertical marketing system owned and operated by a single firm is called a _____ channel system.
“Selective distribution” means selling through:
only those wholesalers and retailers who give the product special attention.
Using the ______ approach to entering international markets gives a firm complete control of marketing strategy planning in the foreign market.
direct investment
_____ distribution is commonly used for convenience products and business supplies.
If Walmart purchases a manufacturing plant to produce nothing but Walmart’s dealer brand of laundry detergent, Walmart is engaging in:
Vertical integration.
Which of the following is NOT an advantage of vertical integration?
Easier adjustment of discrepancies of quantity and assortment.
Intermediaries are needed MOST when the desired degree of market exposure is:
A selective distribution policy might be used to avoid selling to wholesalers or retailers that:
Place orders that are too small.
Make too many returns.
Request too much service.
Have poor credit.
Correct All of these alternatives are correct.
A type of vertical integration system that develops by acquiring firms at different levels of channel activity is called:
Direct _____ involves personal sales contact between a representative of the company and an individual consumer.
“Discrepancies of quantity” means:
the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users.
Intensive distribution is
selling a product through all responsible and suitable wholesalers or retailers who will stock or sell the product.
The regrouping activity which involves collecting products from many small producers so that the products can be handled more economically further along in the channel is called:
Traditional channel systems:
Exhibit little cooperation between channel members.
Coca-Cola’s carbonated soft drinks are available in millions of locations worldwide. This is an example of ____________ distribution.
A channel system in which the various members informally agree to cooperate with each other is called a(an) ______________ system.
administered channel
In _____ channel systems the amount of cooperation among members of the channel is very high.
Producers often have to use “multichannel distribution”:
because they want to sell both direct with a website and indirectly through intermediaries.
because big retail chains want to deal directly with producers.
because competitors use a variety of channels.
because present channel members are doing a poor job.
Correct All of these are valid reasons for producers to use multichannel distribution.
Reverse channels may be used to retrieve products from:
business customers.
business customers and intermediaries.
final consumers.
Correct All of these.
“Exclusive distribution” means selling through:
only one wholesaler or retailer in a particular geographic area.
Sunkist sells foreign companies the right to use the Sunkist brand on soft drinks and citrus juices sold outside the United States. Sunkist gets both an initial fee and a royalty on the sale of goods bearing its brand name. Sunkist is engaged in:
_____ is a manager who helps directs the activities of a whole channel and tries to avoid or solve channel conflicts.
A channel captain
Which of the following is typically the lowest risk approach for moving into international markets?
If a producer has a technically superior and expensive product—which has achieved brand preference—and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek:
Exclusive distribution
In a licensing agreement, the licensee
does most of the marketing strategy planning for the markets it is licensed to serve.
The 80/20 rule—that 80 percent of a company’s sales often come from just 20 percent of its customers—is a good reason for marketers to use:
selective distribution.
Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300?
Selective distribution
“Discrepancies of assortment” means:
the difference between the product lines the typical producer makes and the assortment wanted by final consumers or users.
Selective distribution:
is likely to reduce high administrative expenses caused by a large proportion of small orders.
may be suitable for all categories of products.
is becoming more popular.
is a good idea if some of the available intermediaries are not financially solid.
Correct All of these alternatives are correct.
“Intensive distribution” means selling through:
all responsible and suitable retailers or wholesalers.
To reduce conflicts in channels, a firm should:
Offer different products through each channel.
Provide some compensation to members of the older channel.
Treat channel partners fairly even when one partner is more powerful.
Focus on segments not currently served by existing channels.
Correct All of these alternatives are correct.
Intermediaries are needed LEAST when the desired degree of market exposure is:
InterContinental Hardware Co. buys carload quantities of bolts, screws, nuts, washers, and other hardware from a large producer in the Netherlands, breaks these shipments into smaller quantities, and sells them to other wholesalers and retail chains. This “regrouping activity” is called:
A wholesaler selling golf carts and mowers to golf courses might also carry grass seed and grass fertilizer. This would be an example of
The role of “channel captain”:
is to help a channel system compete more effectively with other channel systems.
Which of the following is the easiest way for a firm to enter foreign markets?
Licensing, in international marketing,
means a company selling the right to use a process, trademark, patent, or other right for a fee or royalty.
A good “channel captain” knows that:
marketing functions can be shifted and shared within a channel—but they cannot be completely eliminated.
Which of the following is NOT a Place decision?
Recruiting, selecting and managing the sales force.
Inventory refers to
the amount of goods being stored.
_____ means getting customers to ask intermediaries for the product.
More freight is carried more miles _____ than any other mode of transportation.
by railroads
In the communication process, the individual who decodes a message is also most likely to be which of the following?
The receiver of the message
During the sales decline stage
the total amount spent on promotion usually decreases as firms try to cut costs to remain profitable.
Because she frequently buys books at Amazon.com, Sophie Soleil set up an account and password at the website. Now, when she logs on and searches for a specific book, a note pops up at the center of her laptop screen saying: “Hello, Sophie, we have recommendations for you,” and proceeds to list other titles that Sophie might enjoy based on her previous purchases. Amazon can remember Sophie (and her previous purchases) because the online retailer uses:
___________ are basically manufacturers’ agents who specialize in international trade.
Export or import agents
____ conflict occurs between firms at the same level in the channel of distribution.
Intensive distribution at the retail level would probably be most appropriate for:
The traditional communication process does NOT include:
Which of the following could be considered part of a retailer’s “Product”?
Selection of brands.
Width and depth of product assortment.
Reputation for fairness.
Helpfulness of salespeople.
Correct All of these are parts of a retailer’s “Product.”
All of the following are advantages of using trucks EXCEPT:
serving a limited number of locations.
A wine producer wants a supermarket manager to display its wines in a desirable end-of-aisle location, but the supermarket manager refuses to give that valuable real estate to this producer. This is an example of __________ conflict.
A firm acquiring another firm at a different level of activity within a channel of distribution is called:
vertical integration.
Considering weight, which one of the following transporting modes usually has the LOWEST cost?
The ______________ concept says that all transporting, storing, and product-handling activities of a business and a channel system should be thought of as part of one system which should seek to minimize the cost of distribution for a given customer service level.
physical distribution
The AIDA model’s four basic promotion jobs are concerned with:
attention, interest, desire, action.
The innovators are the group of customers who
are likely to be mobile and have many contacts outside their local social group and community.
Which of the following is an example of inbound communication with a customer seeking new hiking boots? (Timberland is a brand of hiking boots)
A searches for and then visits the website of a Timberland to read about boots.
The major function of auction companies is to:
provide a place where buyers and sellers can complete a transaction.
is mass selling that avoids paying media costs.
Radio frequency identification tags can
make it easy for computers to monitor inventory.
help computers to order needed stock.
track storing costs.
transmit details about carton contents.
Correct All of these alternatives are correct for RFID tags.
A marketing manager might greatly improve his marketing mix by:
shifting the storing job to a specialized storage facility.
adjusting the time products will be held by channel members.
encouraging final consumers to store some products for future consumption.
sharing the storage function (and costs) with intermediaries.
Correct All of these would improve the marketing mix.
A broker’s “Product” is:
information about what buyers need and what supplies are available.
In this method of budgeting, the spending level might be based on the number of new customers desired and the percentage of current customers that the firm must retain to leverage investments in already established relationships.
Basing the budget on the job to be done
Which of the following are sales promotion activities aimed at the company’s own sales force?
_________ covers all of the activities involved in the sale of products to final consumers.
The two basic types of merchant wholesalers are:
service and limited function.
The main difference between retailing and wholesaling is that:
Wholesaling involves selling mainly to other merchants and business customers, but retailing involves selling mainly to final consumers.
Any distraction that reduces the effectiveness of the communication process is called
________ offer “hard goods” at substantial price cuts to customers.
Discount houses
usually operate with low margins on individual items.
As a percentage of GDP, which of the following most likely characterizes logistic costs incurred in developing economies in Africa?
25 to 30 percent
Which of the following transportation modes is “best” at handling a variety of goods?
Which of the following statements about single- and limited-line stores is TRUE?
Many are small, with high expenses relative to sales.
They usually believe in a “buy low and sell high” philosophy.
Such stores face the costly problem of having to stock some slow-moving items in order to satisfy their target markets.
Most conventional retailers are single- or limited-line stores.
Correct All of these statements about single- and limited-line stores are TRUE
Manufacturers’ agents:
don’t cost the producer anything until something sells.
A typical problem for limited-line retailers is that:
many of the items they carry are slow moving.
Typically the _____ is responsible for building good distribution channels and implementing “place” policies.
sales manager
account for about a third of all retail sales.
often provide franchise holders with training.
usually receive fees and commissions from the franchise holder.
are especially popular with services retailers.
Correct All of these alternatives are correct for franchisors.
Scrambled merchandising is carrying
any product lines that a store thinks that it can sell profitably.
Logistics decisions include all of the following except:
prices to charge for delivery.
Regarding supermarkets, which of the following statements is TRUE?
None of these statements is TRUE.
____________ wholesalers are service wholesalers that carry a wide variety of nonperishable items.
General merchandise
usually operate with low margins on individual items.
are now the primary place to shop for many frequently purchased consumer products.
generally run a self-service operation.
are concerned with maintaining high inventory turnover.
Correct All of these alternatives are correct for mass-merchandisers.
Piggyback service means
loading truck trailers on railcars to increase flexibility.
When a purchasing agent from Ford Motor Co. is trying to find information about a new type of component that might be used in the production of a new Ford SUV, the most common message channel for him to search is:
the Internet.
Convenience (food) stores:
try to earn better profits by high margins on a narrow assortment which turns over quickly.
A retailer’s target customers are young, well educated, and mobile—with many contacts outside their local social group and community. They are eager to try new ideas and are willing to take risks. These target customers are:
In the customer-initiated communication process:
a customer initiates the communication process with a decision to search for information in a particular message channel.
Compared to a warehouse, a DISTRIBUTION CENTER is:
set up to speed the flow of products toward the consumer.
Multichannel distribution:
May involve using both direct and indirect channels simultaneously.
May offer producers a way to reach customers they would not be able to reach with a single channel.
Is becoming more common.
May create channel conflict.
Correct All of these alternatives are correct.
_____ is the intentional coordination of every communication from a firm to a target customer to convey a consistent and complete message.
Integrated marketing communications
The physical distribution ________________________ is how rapidly and dependably a firm can deliver merchandise in demand through the appropriate channels
customer service level
“Scrambled merchandising” refers to:
retailers carrying any product lines they can sell profitably.
A number of independent drugstores are working with a wholesaler to obtain economies of scale in buying. They were organized by this wholesaler after a recent meeting to discuss ways of competing with corporate chains. These drugstores are now part of a:
voluntary chain.
Which of the following chains is the largest food retailer in the U.S.?
A marketing manager who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost should use:
Warehouse clubs such as Sam’s Club and Costco
usually operate in large, no-frills facilities.
have been successful targeting small-business customers.
emphasize homogeneous shopping products.
usually charge consumers an annual membership fee.
Correct All of these alternatives are true for warehouse clubs
Large self-service retail stores that emphasize lower margins to get faster turnover—especially on “soft goods”—are called:
A “supercenter”:
tries to provide all of a customer’s routine needs—at a low price.
A tire manufacturer currently produces tires in small quantities as they are ordered. The company learns that it can reduce costs significantly by producing one type of tire at a time in large quantities and storing its unsold tires for later sale. Should the company switch to large quantity production?
Only if the economies of scale in production are greater than the additional inventory carrying cost.
Sales promotion can be aimed at:
a company’s own sales force.
final consumers or users.
Correct Any or all of these is correct.
Public warehouses:
provide flexibility because the user pays only for the space used.
costs include the costs of damage, theft, and reduced value if products get out-of-date.
costs can be reduced in the channel if suppliers are reliable about meeting delivery schedules.
too few products is likely to reduce a firm’s costs, sales, and profits.
decisions are more difficult to make when demand is irregular.
Correct All of these alternatives about storing are true.
The primary function of a ______________ is to speed the flow of products and avoid unnecessary storing costs.
distribution center
Compared to private warehouses, PUBLIC warehouses:
may not always be conveniently available or adequate for current product line
Distribution centers:
Are designed to facilitate the flow of products through the channel.
EDI was developed in response to which of the following problems?
Computer system differences among firms
The best way to ship a large shipment of coal (which is a heavy and bulky good) from Pennsylvania to California at a relatively low cost would be to use:
Regarding alternative transporting modes, which of the following statements is TRUE?
Waterways usually provide the lowest cost way of shipping heavy freight.
Airways are quickest.
Pipelines offer reliability in moving oil and natural gas.
Trucks serve the most locations.
Correct All of these statements are TRUE.
A(n) _____ is a special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs.
distribution center
Just-in-time (JIT) delivery
reduces customers’ physical distribution costs.
Most physical distribution decisions involve trade-offs between
costs, consumer service levels, and sales.
The slowest transportation is typically by
“Logistics” is concerned with:
reducing spatial separations between producers and consumers.
transporting, storing, and handling of physical goods along channel systems.
transporting, storing, and handling of physical goods within individual firms.
physical distribution.
Correct All of these are included in Logistics.
A _________ aims at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service.
specialty shop
Limited-line stores
specialize in certain lines of related products rather than a wide assortment.
____ are merchant wholesalers that provide all the wholesaling functions.
Service wholesalers
Specialty shops generally:
want to be known for the distinctiveness of their product assortment and the special services they offer.
A _____ is a type of conventional limited-line store that is usually small and has a distinct “personality.”
specialty shop
Which of the following is a strategy to combat consumer showrooming?
Integrating online and brick-and-mortar store operations.
Wholesaling is concerned with the activities of:
manufacturers who set up branch warehouses at separate locations.
persons or establishments that sell to industrial, institutional, and commercial users.
persons or establishments that sell to retailers.
Correct All of these alternatives are correct.
The ____________ says that retailers should offer low prices to get faster turnover and greater sales volumes by appealing to larger markets.
Mass-merchandising concept
___________ stores are usually strong in customer services, including credit, merchandise return, delivery, and sales help.
Jason Everson represents producers of several noncompeting industrial product lines. When he visits his clients, he carries a catalog from each one of the producers he represents. He goes through the catalogs with his clients and then places orders on their behalf with the producers, who pay Jason a commission based on what he sells. Jason is a(n):
Manufacturer’s agent.
A drop-shipper is an example of a(n)
limited-function merchant wholesaler.
The idea that retailers will start to sell a new product that offers a profit margin higher than what they achieve on their traditional product line is consistent with the
scrambled merchandising concept.
____ provide a place where buyers and sellers can come together and bid to complete a transaction.
Auction companies
A corporate chain is defined as
a firm that owns and manages more than one store.
Regarding retailing, which of the following statements is FALSE?
Single-line mass-merchandisers have not been successful—probably because their assortments are so limited.
The “mass-merchandising” concept:
focuses on increasing sales and speeding turnover by lowering prices.
The main difference between agent wholesalers and merchant wholesalers is:
that agent wholesalers do not own the products they sell—while merchant wholesalers do.
Are designed to maximize efficiency.
Identify the characteristics of vending machines and door-to-door retailing.
Added convenience and higher than conventional margins, usually reduced assortment.
Which of the following retailers was the first to adopt the mass-merchandising concept?
The product line of a limited line retailer would best be described as:
a small range of one specific type of product.
Vending machine
sales now include higher-margin products like bathing suits.
Which of the following would be considered a retailing “category killer”?
Office Depot (office supplies)
PayLess (drugstores)
Lowe’s (home improvements)
Barnes and Noble (books)
Correct All of these are “category killers.”
Expanded assortment and/or reduced margins and service are characteristic of
Early adopters
tend to be opinion leaders.
Relative to other promotion methods, _____ can usually be implemented quickly and get results sooner.
sales promotion
Another term for direct marketing is:
direct-response promotion.
Which of the following strategies is most likely to be used in a push promotion to intermediaries in a sales channel?
A TV wholesaler includes a free flat-screen TV with every ten TVs that a retailer buys
Which of the following is the main type of “mass selling”?
Merchandising aids and promotional allowances are sales promotion activities aimed at
In the customer-initiated interactive communication process:
the buyer starts the process.
The adoption curve
emphasizes the relations among groups and shows that individuals in some groups act as leaders in accepting a new idea.
“Promotion” does NOT include:
introductory price dealing.
Compared with other promotion methods, PERSONAL SELLING:
provides more immediate feedback.
In customer-initiated interactive communication:
interactive technology plays a big role.
Which of the following would NOT be an example of sales promotion?
A flyer placed on a homeowner’s door announcing a new lawn service.
The EARLY MAJORITY have a lot of contact with:
the mass media, salespeople, and early adopter opinion leaders.
The Canyonlands Corporation is introducing a new product next month. To prepare for the introduction, the marketing manager is having his sales force call on distributors to explain the unique features of the new product, how the distributors can best promote it, and what sales volume and profit margins they can reasonably expect. In addition, Canyonlands is budgeting 2 percent of its estimated sales for magazine advertising. This is an example of:
a “pushing” policy.
Which of the following adopter groups is most important to “sell”—given the importance of opinion leaders?
Early adopters
The early majority group
tends to avoid risk and waits to consider a new idea after many early adopters have tried it—and liked it.
Point-of-purchase materials, coupons, trade shows, calendars, merchandising aids, and sales training materials are all examples of:
sales promotion.
When developing a good promotion blend, a marketing manager should:
determine who the firm is trying to influence
A producer of household batteries for flashlights, radios, and other small electronic devices wants to increase its sales relative to its competitors. The company enters into an arrangement with a supplier of bicycles to develop an incentive for retail buyers to order more batteries. Salespeople for the battery company tell each buyer that for every 20 cases of batteries ordered, the buyer will get a new bicycle. The buyer can keep the bicycle, or use it as part of an in-store contest promotion. The battery company’s promotion effort aimed at retail buyers is:
Pushing in the channel.
_____ is a promotion activity that tries to spark immediate interest in the consumer.
Sales promotion
Communicating with customers is known as the ________________ portion of the marketing mix.
Identify the traditional communication process.
Source-Encoding-Message channel-Decoding-Receiver-Feedback.
is any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.
Selecting an effective promotion blend to reach a firm’s promotion objectives requires careful consideration of the:
nature of competition.
promotion budget available.
product life cycle stage.
Correct All of these should be considered.
“Promotion” is MAINLY concerned with:
telling the target market that the right Product is available in the right Place at the right Price.
The source deciding what it wants to say and translating it into words or symbols that will have the same meaning to the receiver is termed as
“Noise” (in the traditional communication process) refers to:
any distractions that reduce the effectiveness of the communication process.
_____ is communicating information between the seller and potential buyer or others in the channel to influence attitudes and behavior.
Which of the following shows the correct sequence of market acceptance of a new idea, as represented in the adoption curve?
Innovators, early adopters, early majority, late majority, laggards.
During the market growth stage of the product life cycle, a producer would focus promotional efforts on creating ___________ demand for its own brand.
Blending the firm’s promotion efforts to convey a complete and consistent message is the goal of:
Integrated marketing communications.
_____ prefer to do things the way they have been done in the past and are very suspicious of new ideas.
Laggards or nonadopters
The best way to reach EARLY adopters is through:
salespeople and mass media.
Determining the blend of promotion methods is a strategy decision which is the responsibility of the
marketing manager.
Primary demand is
the demand for the general product idea.
The AIDA model consists of
Attention, Interest, Desire, and Action.
A “good” retail strategy planner knows that:
the failure rate among beginning retailers is quite high.
Chains formed by independent retailers to run their own buying organizations and conduct joint promotion efforts are called:
cooperative chains.
Which of the following would be considered a retailing “category killer”?
Petsmart (pet supplies)
Best Buy (electronics)
Home Depot (home improvements)
IKEA (furniture)
Correct All of these are “category killers.”
Specialty shops:
rely heavily on knowledgeable salesclerks.
Which of the following is LEAST likely to be sold by a supercenter?
Trash compactor
Lacey Springs Apple Co. buys fresh apples in truckload quantities, regroups the heterogeneous commodities into homogeneous lots according to grade and quality, and then sells them to retailers. This “regrouping activity” is called:
______________ sell hardware, jewelry, and sporting goods out of a catalog to small industrial or retail customers that other wholesalers may not call on.
Catalog Wholesalers
A wholesaler-sponsored retail chain is called a:
voluntary chain.
If a producer has a technically superior and expensive product—which has achieved brand preference—and wants retailers to provide aggressive promotion and maximum customer service, this producer should seek
Exclusive distribution.
“Sales promotion”:
can complement a firm’s personal selling and mass selling efforts.
Door-to-door selling at consumers’ homes:
meets some consumers’ needs for convenience.
is gaining popularity in international markets.
started in the pioneer days.
is losing popularity in the United States.
Correct All of these alternatives are true for door-to-door selling.
When a supermarket manager decides to offer online ordering at the store’s website, this is a decision about:
Direct-response promotion usually relies on a(n) _____ database to target specific prospects.
customer relationship management
Retailer-sponsored groups formed by independent retailers that run their own buying organizations and conduct joint promotion efforts are called:
Cooperative chains.
Regarding supermarkets, which of the following statements is TRUE?
Supermarket net profits after taxes usually are about 1 percent of sales—or less.
The percentage of new retailing ventures which fail during their first year is:
.A retailer’s “Price” may include:
delivery charges.
discount policies.
frequency of sales.
store credit card.
Correct All of these are included in a retailer’s “Price.”
According to the text, single-line stores are also known as
limited-line stores
The “total cost approach” to physical distribution management:
might suggest a high-cost transporting mode if storing costs could be reduced enough to lower total distribution costs.
Which of the following is NOT a likely advantage of vertical integration?
Lower capital requirements.

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