question

Promotion to business customers emphasizes personal selling. True or False

answer

True

question

The biggest advantage of this limited-function wholesaler is that they promptly deliver perishable products that regular wholesalers prefer not to carry.

answer

Truck wholesalers

question

Which of the following is NOT true about multichannel shopping?

answer

Consumers that inspect products in a brick-and-mortar store and buy at a lower from a different retailer online multi-shopping.

question

A customer who searches the Yellow Pages for information regarding a business is taking which of the following dual roles in the communication process?

answer

Receiver and initiator

question

A producer of disposable diapers is planning to introduce a new brand of diapers that is specially designed for large babies who are hard to fit with regular diapers. The company mails coupons for the new brand to all the consumers in its database of disposable diaper users. The coupons offer consumers a $2 discount off the regular price of a pack of diapers. The company sends an accompanying letter advising consumers to bring the coupons to their favorite store and use them. If the brand is not in stock, the letter encourages consumers to ask the store manager to stock the new brand. This promotion effort by the company is an example of:

answer

Pulling by customers.

question

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:

answer

a "pushing" policy.

question

Which of the following statements about limited-function wholesalers is TRUE? A. Cash-and-carry wholesalers serve small retailers but don't provide credit. B. Truck wholesalers sell perishable products that other wholesalers prefer not to carry. C. Rack jobbers specialize in nonfood products that sell in small quantities. D. All of these statements about limited-function wholesalers are TRUE. E. Catalog wholesalers sell hardware, jewelry, sporting goods, and general merchandise-often catering to small industrial or retailer customers.

answer

D. All of these statements about limited-function wholesalers are TRUE.

question

An online interactive approach allows a marketer to customize communication to the needs and responses of the customer. True or False

answer

True

question

Hershey's places a simple ad for its "Kisses" chocolates in SPORTS ILLUSTRATED. The ad shows only a photo of the product with no copy words. This is an example of a(n) ____________ promotion objective.

answer

Reminding

question

Which of the following strategies is most likely to be used in a push promotion to intermediaries in a sales channel?

answer

A TV wholesaler includes a free flat-screen TV with every ten TVs that a retailer buys

question

In addition to mail, direct-response promotion may include websites, broadcast, e-mail, and interactive media. True or False

answer

True

question

Retailer life cycles (from introduction to maturity) seem to be:

answer

getting shorter.

question

A producer is likely to focus its promotion effort on stimulating primary demand at what stage in the product life cycle?

answer

Market introduction

question

Which of the following products is most likely to be sold by a drop-shipper?

answer

Coal

question

Vending machine

answer

sales now include higher-margin products like bathing suits.

question

To encourage potential customers to buy a recently-released book, Amazon.com provides online reviews written by others who have already read the new book. This is an example of:

answer

publicity.

question

Which of the following is not a type of service wholesaler?

answer

Cash-and-carry

question

The right promotion blend depends on what the firm want to accomplish-so the objective must be clearly defined. True or False

answer

True

question

It's best to think of retailing on the Internet as just another example of how low-margin mass-merchandisers appeal to large target markets with discount prices. True or False

answer

False

question

Kelly Stich, marketing manager for Yummy Ice Cream Products, is thinking about some of her products and her promotion plans for the coming year. Yummy Ice Cream Products is introducing a new ice cream treat called PlanetSavers. This treat uses ice cream produced with environmentally friendly processes that save energy and protect the ozone. Yummy plans to send articles to magazines, local newspapers, and environmental groups that explain the environmentally safer treat. The product also has a unique texture and different flavor. If Yummy relies on a sales contest to stimulate sales of Cherry Walrus, this would be an example of:

answer

sales promotion.

question

Online interactive communication enables retailer websites to remember individual customers and automatically recall their past purchases. True or False

answer

True

question

The total cost of mass media may force a small firm to use promotion alternatives that are more expensive on a per contact basis. True or False

answer

True

question

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.

answer

wheel of retailing theory

question

A firm's annual sales meeting

answer

is a type of internal marketing effort which is a variation on the pushing approach.

question

Regarding automatic vending, which of the following statements is TRUE? A. Costs are relatively high because the machines are expensive to stock and repair. B. It is important for soft drinks, candy bars, and snack foods. C. All of these statements about automatic vending are TRUE. D. Although its growth has been spectacular, automatic vending still accounts for less than 2 percent of total U.S. retail sales. E. A major advantage is customer convenience.

answer

C. All of these statements about automatic vending are TRUE.

question

Drop-shippers have low operating costs because they do not actually handle the products they sell. True or False

answer

True

question

Agent wholesalers usually have higher operating expenses (as a percentage of sales) than merchant wholesalers. True or False

answer

False

question

A retail store that averages about $20 million in sales annually and specializes in groceries-with self-service and large assortments is a:

answer

supermarket.

question

Retailing includes all of the activities involved in reselling goods to final consumers, but it does not include the sale of services to final consumers since services must be produced in the presence of the consumer. True or False

answer

False

question

In addition to food, warehouse clubs carry homogeneous shopping goods. True or False

answer

True

question

The three general promotion objectives of informing, persuading, and reminding are all concerned with providing more information. True or False

answer

True

question

In the customer-initiated communication process:

answer

a customer initiates the communication process with a decision to search for information in a particular message channel.

question

Personal selling is likely to be an effective method of promotion for reaching the opinion leaders in the early adopter group. True or False

answer

True

question

Internationally, door-to-door selling is growing in popularity and, in the U.S., it accounts for more than 15 percent of all retail sales. True or False

answer

False

question

Many Internet retailing pioneers that had great ideas are not around today. Which of the following is a major reason for the failure of such Internet retailers?

answer

Failure to develop whole marketing strategies that met customer needs

question

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

answer

encoding

question

Very large retail stores that carry not only foods-but all goods and services that consumers purchase ROUTINELY-are called:

answer

supercenters.

question

Business firms in the late majority group

answer

tend to be conservative, smaller-sized firms with little specialization.

question

The traditional principles of communication are not important in customer-initiated interactive communication. True or False

answer

False

question

Direct marketing communication designed to prompt immediate feedback by customers is also called

answer

direct-response promotion.

question

The early majority group

answer

tends to avoid risk and waits to consider a new idea after many early adopters have tried it-and liked it.

question

Debbie Wood sells food products to grocery wholesalers and large supermarket chains in Tallahassee. She sells for several manufacturers with noncompeting lines of food products-earning a 5 percent sales commission. She neither handles nor owns the products she sells. Debbie is a:

answer

manufacturers' agent.

question

Wholesalers are adapting their marketing strategies and changes are under way even though they may be invisible to consumers. True or False

answer

True

question

Early adopters are respected by their peers-and often are opinion leaders-so what they think about a product is especially important for reaching later adopter groups. True or False

answer

True

question

Agent wholesalers are:

answer

mainly concerned with buying and selling.

question

Automatic vending accounts for 15 percent of total U.S. retail sales. True or False

answer

False

Marketing Principles Chapters 12&13 – Flashcards

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