MKT 291 Final- Chapters 9-18

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Chapter 9
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Developing New Products and Services
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good
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tangible attributes that a consumer’s five senses can perceive
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services
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intangible activities or benefits that an organization provides to satisfy consumer’s needs in exchange for money or something else of value
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convenience products
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items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort.
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shopping products
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items for which the consumer compares several alternatives on criteria such as price, quality, or style.
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specialty products
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items that the consumer makes a special effort to search out and buy
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unsought products
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items that the consumer does not know about or knows about but does not initially want
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derived demand
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sales of business products frequently result from the sale of consumer products. ie : more ford cars sold, more spray paint needed
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components
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items that become part of the final product ie. raw materials
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support products
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items used to assist in producing other products and services -installations, accessory equipment, supplies, industrial services
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Services delivered by:
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1) peoples or equipment 2) business firms or nonprofit organization 3) government agencies
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Four I’s of Service
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Intangibility Inconsistency Inseparability Inventory
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Intangibility
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service cant be touched or seen before the purchase decision. Tend to be performance, making it hard for consumers to evaluate
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Inconsistency
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quality varies with each person’s capabilities and day-to-day job performance.
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Inseparability
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the consumer cannot distinguish the service provider from the service itself. So the service it self could be performed well but the service provider might’ve been unpleasant causing an overall unhappy result.
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Inventory
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inventory handling costs that relate to their storage, perishability, and movement. -idle production capacity: service provider is available but there is no demand for the service
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gap analysis
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difference between the consumer’s expectations and his or her actual experiences
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product class
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categorized according to the industry in which the item belongs ie. ipad = tablet device
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product item
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a specific product that has a unique brand, size, or price
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product line
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a group of products or service items that are closely related because they satisfy a class of needs, are used together , are sold to the same customer group, are distributed through the same outlets, or fall within a given price range.
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product mix
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consists of all of the product lines offered by an organization. P&G: beauty & grooming, household care
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continuous innovation
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consumers dont need to learn new behaviors
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dynamically continuous innovation
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only minor changes in behavior are required
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discontinuous innovation
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making the consumer learn entirely new consumption patterns to use the product
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product line extension
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incremental improvement of an existing product line the company already sells. least risk. – risk of cannabalizing
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brand extension
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putting an established brand name on a new product in an unfamiliar market.
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protocol
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before development, identifies 1) a well-defined target market, 2) specific customer’s needs, and 3) what the product will be and do to satisfy customers
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Reasons for New-Product Failures
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– insignificant point of difference – incomplete market and product protocol before product development starts -not satisfying customer needs on critical factors -bad timing -no economical access to buyers -poor product quality -poor execution of the marketing mix: brand name, package, price, promotion, distribution -too little market attractiveness
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Organizational problems that cause product failure
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1) encountering groupthink in task force and committee meetings 2) Avoiding the “not-invented-here problem”
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New-Product Process
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7 stages an organization goes through to identify opportunity & convert them into salable products or services 1) New-Product strategy development 2) Idea Generation 3) Screening and Evaluation 4) Business analysis 5) Development 6) Market testing 7) Commercialization
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1) New-product strategy development
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-uses a SWOT analysis and environmental scanning
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2) Idea Generation
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open innovation- getting ideas from outside resources suggestions from : -employees and friends -customer and suppliers -research and development laboratories -competitive products -smaller firms, universities, and inventors crowdfunding: online community to help finance a new product
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3) Screening and Evaluation
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internal and external evaluation internal : evaluates technical feasibility, and go through Customer Experience Management (CEM) to make sure they have the skills to meet customer expectations external: concept tests; preliminary testing of a new-product idea.
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4) Business analysis
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-specifies features of the product and the marketing strategy needed to bring it to market. -assesses the total “business fit”
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5) Development
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– prototype of the product is created
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6) Market Testing
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expose actual consumers to the product 3 test markets: 1) standard test market: attempts to sell product through normal distribution channels. 2) controlled test markets: contracting the entire test program to an outside service 3) stimulated test markets: stimulated markets oftentimes in shopping malls
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7) Commercialization
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positions and launches the new product in full-scale production and sales
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Holding focus groups to generate ideas from potential customers is an example of:
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open innovation
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Inconsistency in services refers to the fact that:
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services depend upon the people who provide them, and the quality of that performance may vary from day to day or employee to employee
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A benefit of performing a SWOT analysis & an environmental scan during the new product strategy development process is that:
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they can help identify the strategic role the new product might serve in the firm’s portfolio
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business analysis stage
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involves specifying the product features and marketing strategy along with making financial projections needed to bring it to market
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which of the following is the best example of a shopping product?
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-reebok running shoes * -a ferrari -roget’s thesaurus -chobani greek yogurt -cash from an ATM
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Google’s driverless car is an extreme example of the complexity of which step of the new-product process?
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development
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When a manager at target announced to customers, “there is no wait in checkout lanes 2 and 5,” he recognized a need to manage his:
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idle production capacity
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Which of the following products at the time of their introduction was the best example of a continuous innovation?
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Blu-Ray player
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Chapter 10:
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Managing Successful Products, Services, and Brands
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product life cycle
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Introduction Growth Maturity Decline
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Introduction
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-sales grow slowly and profit is minimal -starts with looking for primary demand: desire for the product class rather than a specific brand -later gets selective demand: based on the brand skimming pricing: setting a high initial price penetration pricing: setting a low initial price (tries to defer additional competitors)
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Growth
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-rapid increase in sales (profit usually peaks) growing repeat purchasers
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Maturity
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a slowing of total industry sales or product class revenue. competitors begin to leave
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Decline
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when sales drop -usually because of environmental changes (out-of -date) either delete or harvest: delete: completely dropping the product harvest: retains product but reduces marketing costs
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diffusion of innovation
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a product spreading through the population
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product modification
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altering one or more of a product’s characteristics, such as its quality, performance, or appearance, to increase the product’s value. ex. product bundling
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Market modification strategies
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-finding new customers -increasing a product’s use -creating a new use situation
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Product Repositioning
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changing the place a product occupies in a consumer’s mind 4 triggers for repositioning: -reacting to a competitor’s position -reaching a new market -catching a rising trend -changing the value offered
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brand personality
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a set of human characteristics associated with a brand name
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brand equity
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the added value a brand name gives to a product beyond the functional benefits provided
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creating brand equity
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-brand awareness -brand performance/brand imagery -consumer judgments/feelings -consumer-brand connection
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Branding Strategies
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-multiproduct strategy -multibranding strategy -private branding strategy -mixed branding strategy
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multiproduct strategy
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uses one name for all its products in a product class
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multibranding strategy
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gives each product a distinct name
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private branding
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when a company manufactures products but sells them under the brand name of a wholesaler or retailer
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mixed branding
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a firm markets products under its own name and that of a reseller because the segment attracted to the reseller is different from its own market
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SEVEN Ps of services marketing
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-product -price -place -promotion -people -physical environment -process
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off-peak pricing
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charging different prices during different seasons of the year and different times of the day or days of the week to reflect variations in demand for the service
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When selecting a brand name, it should: (1) suggest product features; (2) be memorable, distinctive and positive; (3) fit the company or product image; (4) have no legal or regulatory restrictions; (5) __________; and (6) have favorable phonetic and semantic associations in other languages.
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be simple and emotional
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Dentyne gum introduced a Split2Fit pack, which is compact package design intended to be separated into two halves to better fit into a pocket or a small purse, or two keep two halves in separate places.This is an example of which type of benefit that packaging can provide?
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functional benefits
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Michelin has added a “run-flat” feature to its higher-priced tire lines so that they can travel up to 50 miles at 55 miles per hour after suffering total air loss. The marketing strategy Michelin used is called_____?
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-trading up
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The acronym CEM in services marketing stands for __________.
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Customer experience management
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Which of the following statements concerning the pricing of services is most accurate?
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Service pricing plays a role in balancing consumer demand for services.
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7 Ps
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product price place promotion AND people physical environment process
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Following the 2010 Deepwater Horizon disaster, BP paid for a series of TV advertisements promoting Gulf Coast tourism, probably helping this area to have a record-setting year. This ad campaign was an attempt to stimulate __________ demand.
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primary demand
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Quaker Oats makes the FDA-approved claim that oatmeal, as part of a low-saturated-fat, low-cholesterol diet, may reduce the risk of heart disease. It is primarily using which of the following product repositioning strategies for this product?
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catching a rising trend
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Which of the following products is the best example of a product that might experience an introduction, a decline, and then a resurgent reintroduction as part of its normal product life cycle?
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Fashion (trend) products
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Chapter 11
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Pricing Products and Services
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price equation
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all the factors that increase or decrease the final price of an offering
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value
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perceived benefits/ price
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Common Pricing Approaches
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1) Demand-Oriented pricing 2) Cost-Oriented pricing 3) Profit-Oriented pricing 4) Competition-Oriented pricing
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Demand Oriented Pricing
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-skimming:new or innovative product- high price -penetration: high competition- low price -prestige: ex rolex watches -odd-even: few dollars or cents under an even number -target pricing: working backwards to see what they can charge wholesalers based on what the consumer will pay -bundle pricing: 2 or more products using a package price -yield management pricing: the charging of different prices to maximize rev. at any given time. i.e. airlines
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Cost-Oriented Pricing
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standard mark-up pricing: adding a fixed percentage to the cost of all items in a specific product class cost-plus pricing: summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at a price
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Profit -oriented pricing
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-Target profit pricing -Target return-on-sales pricing : specific % of the sales volume – Target return-on-investment pricing
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Competition-oriented pricing
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-Customary pricing: standardized i.e. vending machine -Above-, At-, or Below Market Pricing -Loss-leader pricing: sell product below its customary price to attract attention to it.
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Price elasticity
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% change in qty demanded relative to % change in price
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Total Rev
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= P * Q
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Total Profit
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Total Rev – Total Cost
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Break Even Analysis
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FC/ Unit Price – Unit Variable Cost
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Price Constraints
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-Demand for the Product Class, Product, and Brand -Newness of the Product: stage in product lifecycle -Cost of producing and marketing the product -Competitor’s prices -Legal and Ethical Considerations
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Legal & Ethical Considerations
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-price fixing -price discrimination: different prices to different buyers -deceptive pricing: i.e. bait and switch -predatory pricing: super low price to drive competitors out of the market
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Steps in setting a final price
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1) Select an Approximate price 2) Set the list or quoted price -One-price policy (fixed) -Flexible-price policy 3) Make special adjustments to the list or quoted price -discounts -allowances
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Discounts
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1) Quantity : deals for large qty 2) Seasonal 3) Trade: to reward wholesalers or retailers 4) Cash
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Allowances
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-trade-in allowances: trade in a car -promotional allowances: advertising to promote a product
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Chapter 12
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Managing Marketing Channels & Supply Chains
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Marketing channel
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individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users
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Intermediaries
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-middleman -broker/agent -wholesaler -retailer -distributor -dealer
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3 main intermediary functions
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-transactional -logistical -facilitating
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Transactional Functions
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-Buying -Selling -Risk Taking
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Logistical Functions
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-Assorting -Storing -Sorting -Transporting
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Facilitating
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-Financing -Grading -Marketing information and research
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time utility
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having a product or service when you want it
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place utility
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having a product or service available where consumers want it
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form utility
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enhancing a product or service to make it more appealing to buyers
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possession utility
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entails efforts by intermediaries to help buyers take possession of a product or service, such as having airline tickets delivered by a travel agency
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direct channel
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the producer and the ultimate consumer deal directly with each other
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indirect channels
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intermediaries are inserted between the producer and consumers and perform numerous channel functions
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internet marketing channels
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employ the internet to make products and services available for consumption or use by consumers or organizational buyers
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direct marketing channels
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allows consumers to buy products by interacting with various advertising media without a face-to-face meeting with a salesperson. ex. mail-order selling, direct-mail sales, catalog sales, telemarketing, tv home shopping
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multichannel marketing
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the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online -seek to integrate a firm’s electronic marketing and delivery channels.
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dual distribution
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an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
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strategic channel alliances
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one firm’s marketing channel is used to sell another firm’s products
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vertical marketing systems
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professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact
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3 types of vertical marketing systems
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-corporate -contractual -administered
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corporate vertical marketing
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combination of successive stages of production and distribution under a single ownership
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forward integration
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doing manufacturing and owning stores (apple, ralph lauren)
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backward integration
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a retailer may own a manufacturing company (kroger, tiffany’s)
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contractual vertical marketing
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independent production and distribution firms integrate their effort on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone. -most important of 3
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3 variations of contractual vertical marketing
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1) wholesaler-sponsored voluntary chains 2) Retailer-sponsored cooperatives 3) manufacturer-sponsored retail franchise:
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wholesaler-sponsored voluntary chains:
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wholesaler that develop a contractual relations with small, independent retailers to standardize & coordinate buying practices.
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Retailer-sponsored cooperatives:
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small, independent retailers form an organization that operates a wholesale facility cooperatively
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manufacturer-sponsored retail franchise
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prominent in auto industry, where a manufacturer such as ford licenses dealers to sell its cars subject to various sales and service conditions
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franchising
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a contractual arrangement between a parent company and an individual or firm
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administered vertical marketing system
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achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership
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3 factors affecting channel choice
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1) target market coverage 2) buyer requirements 3) profitability
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intensive distribution
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when a firm tries to place its products or services in as many outlets as possible
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exclusive distribution
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when only one retail outlet in a specific geographical area carries the firm’s products
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selective distribution
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when a firm selects a few retail outlets in a specific geographical area to carry its products
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4 buyer requirements
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-information -convenience -variety -pre or postsale services
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channel conflict
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arises when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals.
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Vertical conflict
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occurs between different levels in a marketing channel -disintermediation : when a channel member bypasses another member
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Horizontal conflict
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occurs between intermediaries at the same level in a marketing channel, such as between two or more retailers or two or more wholesalers that handle the same manufacture’s brands.
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logistics
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activities focused on getting the right amount of the right products to the right place at the right time at the lowest possible cost.
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logistics management
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the practice of organizing the cost-effective flow of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption to satisfy customer requirements
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supply chain
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the various firms involved in performing the activities required to create and deliver a product or service to consumers or industrial users.
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supply chain management
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the integration and organization of information and logistics activities across firms in a supply chain for the purpose of creating and delivering products and services that provide value to consumers.
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Supply Chain marketing strategy steps
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1) understand the customer 2) understand the supply chain 3) harmonize the supply chain with the marketing strategy
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total logistics cost
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expenses associated with transportation, materials, handling and warehousing, inventory, stockouts, order processing, and return products handling
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customer service
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ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience
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reverse logistics
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a process of reclaiming recyclable and reusable materials, returns, and reworks from the point of consumption or use for repair, remanufacturing, redistribution, or disposal
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A channel intermediary that acts on behalf of the seller but does not take title to products is called a(n)
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agent/broker
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Adding a wholesaler to the marketing channel for consumer products is most common for
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low-cost, low-unit value items.
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Kroger supermarkets operate manufacturing facilities that produce everything from aspirin to cottage cheese for sale under the Kroger label. This example shows that Kroger uses:
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-backward integration
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Chapter 13
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Retailing and Wholesaling
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retailing
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includes all activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use
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classifying retail outlets
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1) form of ownership 2) level of service 3) merchandise line
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form of ownership
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-independent retailer -corporate chain -contractual systems (chains, franchises)
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level of service
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-self-service -limited service (walmart) -full service (nordstrom)
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type of merchandise line
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-depth of line: large assortment of each item -breadth of line: variety of different items a store carries
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scrambled merchandising
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offering several unrelated product lines in a single store
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non-store retailing
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-automatic vending -direct mail and catalogs -television home shopping -online retailing -telemarking -direct selling
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Retailing mix
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the activities related to managing the store and the merchandise in the store, which includes retail pricing, store location, retail communication, and merchandise
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retail pricing
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-markup (original markup, maintained markup) -markdown -off-price retailing (TJ MAXX)
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Store Location
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central business district: the oldest retail setting, the community’s downtown area. regional shopping centers: 50-150 stores anchor stores (Macys, Sears, Saks)
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multichannel retailers
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retailers that use a combination of traditional store formats and non-store formats, such as catalogs, television and online retailing.
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Shopper Marketing
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the use of displays, coupons, product samples, and other brand communications to influence shopping behavior in a store
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category management
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an approach to managing the assortment of merchandise to maximize sales and profits in the category
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wheel of retailing
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a concept that describes how new forms of retail outlets enter the market
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retail life cycle
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the process of growth and decline that retail outlets experience over time -early growth -accelerated development -maturity -decline
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merchant wholesalers
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independently owned firms that take title to the merchandise they handle
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manufacturer’s agents
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agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory
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brokers
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independent firms or individuals whose principal function is to bring buyers and sellers together to make sales
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Jason felt the restaurant was too expensive for his taste as soon as he looked at the menu posted on the outside wall by the entrance and saw the price of a burger was $10. A product used in this was is a ____ item
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benchmark
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The _________ is a concept that describes how new forms of retail outlets enter the market and change over time
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-wheel of retailing
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One of the biggest problems an online retailer faces is
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-customers tendencies to get to the checkout and leave the website without concluding the purchase
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specialty discount outlets focus on one type os product such as office supplies or electronics (best buy) at competitive prices. they are referred to as ____________ because they often dominate the market
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-category killers
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two general types of franchises: product-distribution and _______
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business-format franchises
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A retailer buys a painting for $200. She sets the selling price at $450. When the painting doesn’t sell she raises the price to $800 to appeal to a different market. The painting sells for $800 the next day. That was the Maintained markup?
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800-200= $600 -difference between the retailer’s cost and the final selling price
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direct selling is likely to grow in markets
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– outside the united states
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the retailing mix includes retail communication, merchandise, and which two other elements?
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store location and retail pricing
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What is the difference between the original markup and the maintained markup?
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original markup is the difference between retailer cost and initial selling price, maintained markup is the difference between the final selling price and retailer cost (gross margin)
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Chapter 14
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Integrated Marketing Communication and Direct Marketing
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promotional mix
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the combination of one or more of the communication tools used to inform, persuade, or remind prospective buyers
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integrated marketing communications
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the concept of designing marketing communications programs that coordinate all promotional activities to provide a consistent message across all audiences
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communication
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the process of conveying a message to others, and it requires six elements: a source, a message, a channel of communication, a receiver, and the process of encoding and decoding
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encoding
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the process of having the sender transform an idea into a set of symbols
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decoding
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the reverse, the process of having the receiver take a set of symbols, the message, and transform the symbols into an idea
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noise
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extraneous factors that can work against effective communication by distorting a message or the feedback received.
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Communication Alternatives
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-advertising -personal selling -public relations -sales promotion -direct marketing
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advertising
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any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor
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personal selling
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the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision
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public relations
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a form of communication management that seeks to influence the feelings, opinions, or beliefs held by customers, stockholders, suppliers, employees, and others about a company and its products or services
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publicity
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a non-personal, indirectly paid presentation of an organization, product or service
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sales promotion
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a short-term inducement of value offered to arouse interest in buying a product or service
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direct marketing
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uses direct communication with consumers to generate a response in the form of an order, a request for further information, or a visit to a retail outlet.
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The product life cycle
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-Introduction stage: to inform -Growth stage: to persuade -Maturity state: to remind -Decline stage: to phase out
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push strategy
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directing the promotional mix to channel members to gain their cooperation in ordering and stocking product
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pull strategy
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directing the promotional mix at ultimate consumers to encourage them to ask the retailer for a product ie “ask your doctor if zetia is right for you”
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promotion decision process
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1) developing 2) executing 3) assessing the promotion program
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1) developing the promotion program
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-identify the target audience -specify the objectives -set the budget -select the right promotional tools -design the promotion -schedule the promotion
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2) executing the promotion program
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-pretest the promotion -carry out the promotion
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3) assessing the promotion program
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-posttest the promotion -make needed changes
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hierarchy of effects
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1) awareness 2) interest 3) evaluation 4) trial 5) adoption
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methods for setting the promotional budget
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-percentage of sales -competitive parity -all you can afford -objective and task
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lead generation
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the result of an offer designed to generate interest in a product or service and a request for additional information
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traffic generation
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the outcome of a direct marketing offer designed to motivate people to visit a business
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Factors such as the need for improved reliability and security in postal systems and new government regulations represent important challenges for __________ in the global market.
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Direct Marketing
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Which element of the promotional mix has the inherent weaknesses of high absolute costs and difficulty in receiving good feedback?
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-advertising
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Integrated marketing communications (IMC) is
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the concept of designing marketing communications programs that coordinates all promotional activities to provide a consistent message across all audiences.
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The promotional mix consists of communication tools that include advertising, personal selling, sales promotion, direct marketing, and __________.
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-public relations
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In the hierarchy of effects, the stage between interest and trial is known as __________.
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evaluation
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promotional objective of the decline state of the product life cycle
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-phase out
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Chapter 15
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advertising, sales promotion and public relations
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5 stages in the hierarch of effect:
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awareness, interest, evaluation, trial and adoption
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product advertisements
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3 forms: 1) pioneering (informational) -used in the introductory stage of the product life cycle 2) competitive (persuasive) -promotes a specific brand’s features & benefits -common form is comparitive advertising 3) reminder -reinforces previous knowledge of a product -usually in mature stage of the life cycle
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institutional advertisements
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designed to build goodwill or an image for an organization, rather than promote a specific product or service
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4 forms of institutional advertisements
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-Advocacy -Pioneering: used to tell what a company is, what it can do, or where it is located -Competitive: promote advantages of one product class over another -Reminder: simply bring the company’s name to the attention of the target market again
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Developing the Advertising Program
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-Identifying the target market -specifying advertising objectives -setting the advertising budget -designing the advertisement -selecting the right media -reach: the # of different people exposed to an ad -different media alternatives -scheduling the advertising
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Different media alternatives
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-Television -Radio -Magazines -Newspapers -Yellow Pages -Internet -Outdoor -Direct Mail
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Scheduling Advertising
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3 basic approaches: 1) continuous schedule 2) flighting schedule : reflect seasonal demand 3) pulse (burst) schedule: increases in demand, heavy periods of promotion, intro of new product
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Executing the Advertising Program
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-Pretesting the Advertising -portfolio tests: placed with several ads and ask for their impression of the ads -jury tests: showing the ad to a panel of consumers and having them rate how they liked it -theater tests -Carrying out the Advertising program -full-service agencies -limited service agencies -in-house advertising
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Assessing the Advertising Program
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-Posttesting -aided recall -unaided recall -attitude tests -inquiry tests -sales tests -Making needed changes
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Sales Promotion
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1) consumer-oriented sales promotions -directed towards the ultimate consumers 2) trade-oriented sales promotions -directed towards wholesalers, distributors, or retailers
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consumer-oriented sales promotions
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-coupons -deals -premiums -contests -sweepstakes -samples -loyalty programs -point-of-purchase displays -rebates -product placements : in a movie or show
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trade-oriented sales promotions
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-allowances & discounts -cooperative advertising : manufacturer will pay a % of the retailer’s local ad expense for advertising the manufacturer’s products -training of distributors’ salesforce
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publicity tools
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methods of obtaining non-personal presentation of an organization, product, or service without direct cost
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buy one get one half off is an example of a ____
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deal
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which would be conducted before an advertisement was placed in any medium
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-jury test
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one disadvantage associated with television
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it has a perishable message
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click fraud refers to
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the deceptive clicking of ads solely to increase the amount advertisers much pay
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Chapter 16
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Using Social Media to Connect with Consumers
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classifying social media
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1. media richness 2. self-disclosure : more personal
question

Comparing social and traditional media
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-Ability to reach large and niche audiences -Expense and access -Training and the number of people involved -Time to Delivery -Permanence -Credibility and social authority
question

Performance measures linked to outputs or revenues
answer

-users/members -fans -share of voice (online chatter) -page views -visitors -unique visitors -average page views per visitor -interaction rate -click-through rate: clicked on link -fan source
question

Privacy
answer

how much convergence is too much?
question

Mobile Marketing has led to important smart phone apps, including which of the following
answer

price-comparison searches
question

sometimes used as a performance measure, a brand’s share or percentage of all the online social media chatter related to a product category or topic is referred to as
answer

-share of voice
question

Chapter 17
answer

Personal Selling and Sales Management
question

sales management
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planning the selling program and implementing and evaluating the personal selling effort of the firm
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relationship selling
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the practice of building ties to customers based on a salesperson’s attention and commitment to customer needs over time
question

order taker
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a salesperson who processes routine orders or reorders for products that were already sold by the company
question

order getter
answer

a salesperson who sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service. -50 hour weeks
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Personal Selling Process
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1) Prospecting 2) Preapproach 3) Approach 4) Presentation 5) Close 6) Follow-Up
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Presentation Formats
answer

1) Stimulus-Response -personality based 2) Formula Selling Format – informative 3) Need-Satisfaction -adaptive selling -consultative selling: problem recognition
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3 closing strategies
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1) trial close 2) assumptive close 3) urgency close : ‘this deal ends today”
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Sales Management Process
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1) sales plan formulation 2) sales plan implementation 3) salesforce evaluation
question

Sales Plan Formulation
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sales plan tasks: 1) setting objectives 2) organizing the salesforce 3) developing account management policies
question

Sales plan implementation
answer

-salesforce recruitment and selection -salesforce training -salesforce motivation and compensation
question

salesforce evaluation
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-quantitative assessment : sales quota -behavioral evaluation
question

salesforce automation
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the use of technology to make he sales function more effective and efficient
question

All of the following are output measures of sales objectives outlined in a sales plan EXCEPT:
answer

-sales calls made
question

In the personal selling process, a telemarketer who calls phone numbers from a purchased list and asks the head of the household, “Are you happy with your current mobile phone service provider?” is engaged in __________.
answer

-prospecting
question

Which type of personal selling presentation format is the most consistent with the marketing concept?
answer

– Need-Satisfaction presentation format
question

Chapter 18
answer

Implementing Interactive and Multichannel Marketing
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marketplace
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buyers and sellers engage in face-to-face exchange relationships in a material environment characterized by physical facilities and mostly tangible objects
question

marketspace
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an internet-enabled Digital environment characterized by face-to-face screen exchange relationships and electronic images and offerings
question

interactive marketing
answer

two-way buyer seller electronic communication in a computer-mediated environment in which the buyer controls the kind and amount of information received from the seller
question

choiceboard
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an interactive, internet-enabled system that allows individual customers to design their own product or services by answering a few questions and choosing from a menu of product or service attributes, prices, and delivery options (Nike tennis shoes)
question

collaborative filtering
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a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. -“customers who bought this item also bought….”
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personalization
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consumer-initiated practice of generating content on a marketer’s website that is custom tailored to an individual’s specific needs and preferences -creating a personalized MyYahoo! page
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permission marketing
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the solicitation of a consumer’s consent to receive email and advertising based on personal data supplied by the consumer.
question

customer experience
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the sum total of the interactions that a customer has with a company’s website, from the initial look at the home page through the entire purchase decision process.
question

7 website design elements that drive customer experience
answer

1. Context 2. Content 3. Customization 4. Connection 5. Communication 6. Community 7. Commerce
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context
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a website’s aesthetic appeal and functional look and feel of the site’s layout and visual design
question

content
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all digital information on a website, including the presentation form (text, video, audio)
question

customization
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the ability of a site to modify itself to or be modified by each individual user
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connection
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the network of linkages between a company’s site and other sites
question

communication
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dialogue that unfolds between the website and its users
question

community
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user-to-user communications hosted by the company
question

commerce
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website’s ability to conduct sales transactions for products and services -the amount of time per month visitors spend on their website is “stickness” & used to gauge customer experience
question

online consumers
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the subsegment of all internet users who employ this technology to research products and services and make purchases.
question

why consumers buy and shop online
answer

-convenience -choice -customization -communication -cost -control
question

bots
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electronic shopping agents or robots that comb websites to compare prices or service features
question

eight-second rule
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customers will abandon their efforts to enter and navigate a website if download time exceeds eight seconds.
question

communication
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1) marketer-to-consumer email notification 2) consumer-to-marketer buying and service requests 3) consumer-to-consumer chat rooms and instant messaging
question

web communities
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websites that allow people to meet online and exchange views on topics of common interest
question

viral marketing
answer

an internet enabled promotional strategy that encourages users to forward marketer-initiated messages to others via email, social networking websites and blogs
question

cost
answer

-showrooming: when a shopper visits a retail store to inspect merchandise but then goes online to compare prices from other retail and online sellers -dynamic pricing: the practice of changing prices for products and services in real time in response to supply and demand conditions. (airline tickets)
question

cookies
answer

computer files that a marketer can download onto the computer and mobile phone of an online shopper who visits the marketer’s website
question

behavioral targeting
answer

uses information provided by cookies for directing online advertising from marketers to those online shoppers whose behavioral profiles suggest they would be interested in such advertising
question

cross-channel shopper
answer

an online consumer who researches products online and then purchases them at a retail store -95% of consumers do this (opposite of showrooming)
question

A recent Disney Online M.O.M. (Mom on a Mission) study found that today’s mother __________.
answer

stays connected with family and friends through social networks like Facebook
question

Which of the following statements regarding cross-channel shoppers is most accurate?
answer

Sales arising from cross-channel shoppers dwarf exclusive online retail sales
question

The primary purpose of transactional websites is to
answer

convert an online browser into an online buyer
question

To which element of the marketing mix is viral marketing most closely related?
answer

promotion
question

Retailer-sponsored cooperatives:
answer

small, independent retailers form an organization that operates a wholesale facility cooperatively

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