question

Which supply chain activities refer to the total set of managerial activities used by an organization to transform resource inputs into products, services, or both?

answer

Operations management

question

What is an example of a downstream firm in an organizations supply chain?

answer

A retail chain that sells the organizations products

question

What best describes the logistics management function in supply-chain management ?

answer

Moving the product through the marketing channel to end user, including warehousing

question

A food manufacturing company that manufactures processed foods is trying to increase sales of its products by making them available in all general and convenience stores rather than just in supermarkets and large department stores. What type of utility is the company trying to create in this case?

answer

Place Utility

question

Possession utility is created when?

answer

Customers have access to products to use or to store for future use

question

Form utility is created when?

answer

Products are assembled, prepared, or otherwise refined to suit individual customer needs.

question

The use of industrial distributors as a part of the distribution channel for business products is most effective when?

answer

the product is needed on demand to avoid high losses

question

What is true of industrial distributors?

answer

Industrial distributors are less likely to handle bulky items, or items that need specialized facilities.

question

A(n) ________ is an independent businessperson who does not take title to the goods, sells complementary products of several producers in assigned territories and is compensated through commissions.

answer

manufacturers' agent

question

What is a disadvantage of using manufacturers' agents in the distribution of business products?

answer

They are often reluctant to spend time following up sales and to provide market information to sellers.

question

Dell laptops and desktops are some of the most favored computer products both in and outside the United States. The firm sells to individual buyers directly while offering the option of customizing their computers to suit customer requirements. It also markets its laptop and desktop range through company-owned stores as well as via retail outlets such as Best Buy. This distribution strategy used by Dell through multiple marketing channels is known as:

answer

dual distribution

question

What characteristics is typical of the consumer market?

answer

Consumers often buy from retailers

question

What product is most likely to be distributed through shorter marketing channels?

answer

Automobiles

question

Which product categories is more likely to be marketed through a selective distribution strategy?

answer

Electronic goods

question

An exclusive distribution strategy is best suited for products that?

answer

are consumed over a long period of time.

question

Combining two or more stages of the marketing channel under one management is known as ?

answer

vertical integration

question

Which form of vertical marketing system combines all stages of the marketing channel, from producers to consumers, under a single owner?

answer

Corporate VMS

question

Which of the following is characteristic of an administered vertical marketing system?

answer

Domination of distribution systems by one of the channel members

question

Which of the following is an example of a contractual vertical marketing system?

answer

Retail-sponsored cooperatives, which own and operate their own wholesalers.

question

The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as ________.

answer

outsourcing

question

Which of the following physical distribution functions involves developing and maintaining an adequate assortment of products to meet customers' needs?

answer

Inventory management

question

Check My Work The inventory level that signals the need to place a new order is known as the ________.

answer

reorder point

question

Which of the following modes of transportation is the cheapest and best suited for transporting heavy, low-value, non-perishable goods such as coal, ores, chemicals, and heavy equipment?

answer

Waterways

question

When a manufacturer forbids an intermediary to carry products of competing manufacturers, the arrangement is known as ________

answer

Exclusive dealing

question

Under which of the following circumstances do courts rule tying agreements as illegal?

answer

When the supplier tries to move weaker products along with more popular items

question

________ includes all transactions in which the buyer intends to consume the product through personal, family, or household use.

answer

Retailing

question

________ are large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management.

answer

Department stores

question

A(n) ________ is a self-service, general-merchandise store offering brand name and private brand products at low prices

answer

Discount store

question

Supermarkets are:

answer

large self-service stores offering complete line of food products and some nonfood products

question

Which of the following retail organizations is said to combine the supermarket and discount store shopping in one location?

answer

Hypermarkets

question

Which of the following is a characteristic associated with warehouse showrooms?

answer

Vertical merchandise displays

question

Happy Hounds and Horses is a large retailing store that has a huge collection of products for pets that are sold at low prices. This store would be an example of a ________.

answer

category killer

question

Shopping centers that have several small convenience and specialty stores are known as ________.

answer

neighborhood shopping centers

question

A ________ is a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment stores.

answer

lifestyle shopping center

question

A power shopping center is a type of shopping center:

answer

that combines off-price stores with category killers

question

The physical elements in a store's design that appeal to consumers' emotions and encourage buying are collectively known as the store's ________.

answer

atmospherics

question

_______ refers to a retail strategy of managing groups of similar, often substitutable products produced by different manufacturers.

answer

Category management

question

Which of the following illustrates the idea of direct marketing?

answer

buying a pair of shoes off the internet

question

Which of the following is a disadvantage of catalog marketing?

answer

effectiveness limited to selected set of products

question

Which of the following represents a serious problem for online shopping?

answer

Online shopping presents the possibility of identify and credit card theft

question

_______ is an arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration

answer

Franchising

question

Which of the following is an advantage of franchise arrangements?

answer

The franchiser gains fast and selective product distribution without incurring the cost of constructing and operating its own outlets.

question

A(n) ________ is an individual or organization that sells products that are bought for resale, making other products, or general business operations.

answer

wholesaler.

question

___ are limited service wholesalers that transport products directly to customers for inspection and selection.

answer

Truck wholesalers.

question

_______ are independently owned businesses that take title to goods, assume risks associated with ownership, and generally buy and resell products to other wholesalers, business customers, or retailers.

answer

Merchant wholesalers.

question

_____ are full-service, specialty-line wholesalers that own and maintain display racks in stores.

answer

rack jobbers.

question

the term 'drop shippers' refers to:

answer

limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products.

question

Which of the following statements is true of services provided by commission merchants and brokers?

answer

They offer the representation of competing product lines.

question

Manufacturers' agents are intermediaries who:

answer

represent two or more sellers and usually offer customers complete product lines

question

Which of the following is true of sales offices?

answer

They bring together buyers and sellers temporarily.

question

A major goal of integrated marketing communications is to:

answer

send a consistent message to consumers.

question

Converting meaning into a series of signs or symbols is known as _____

answer

encoding

question

Anything that reduces a communication's accuracy and clarity is called ______

answer

noise

question

Feedback refers to:

answer

a receiver's response to a decoded message

question

In the typical communication process, the receiver is the person who:

answer

decodes the message

question

______ refers to demand for a product category rather than for a specific brand of product.

answer

primary demand

question

Which of the following methods is used to stimulate primary demand for a product?

answer

Informing potential consumers about the product's features and uses

question

Which of the following statements about promotion mix is true?

answer

Advertising is extremely cost-efficient when it reaches a vast number of people at a low cost per person.

question

Which of the following is an advantage of advertising?

answer

Even though the cost per person reached may be low, high absolute costs can limit, and sometimes preclude, use of advertising in a promotion mix.

question

communicating through the movement of head, eyes, arms, hands, legs, or torso is known as ____

answer

kinesic communication

question

Which of the forms of communication occurs when either person varies the physical distance between them?

answer

Proxemic communication

question

Which of the following is an example of tactile communication?

answer

An executive shakes hands with his counterpart from the client company to seal a deal between the companies

question

____ is an activity that offers a direct inducement, such as a free sample, a game, or coupons, that offers an added value or incentive for the product to resellers, salespeople, or consumers.

answer

sales promotion

question

Which of the following elements is usually a major component of a promotion mix for organizations selling to industrial markets?

answer

Personal selling

question

For which of the following products does the promotion mix concentrate more on advertising than on personal selling?

answer

Computers

question

Which of the following statements is true of promotion mixes with respect to the product life cycle?

answer

In the growth and maturity stages, consumer services require heavy emphasis on advertising.

question

Promoting a product only to the next institution down the marketing channel is known as the _____

answer

push policy

question

Which of the following depicts the flow of communication along the marketing channel with a pull promotional strategy?

answer

producer-consumers

question

Which of the following statements about word-of-mouth marketing is true?

answer

Word-of-mount marketing is linked to new customer acquisition when there is customer involvement and satisfaction.

question

Which of the following is a medium for electronic word-of-mouth communication?

answer

Social network

question

_______ refers to an attempt to incite publicity and public excitement surrounding a product through a creative event.

answer

buzz marketing

question

Viral marketing refers to:

answer

the strategy of getting consumers to share a marketer's message in a way that spreads dramatically and quickly

question

For which of the following product types is word-of-mouth marketing known to be most effective?

answer

Expensive, luxury products

question

The strategic location of products or product promotions within entertainment media content to reach the product's target market is known as ________.

answer

product placement

question

Which of the following arguments is used by those who defend promotion of products such as tobacco and alcohol?

answer

As long as it is legal to sell tobacco and alcohol, promoting that product should be allowed.

question

______ is paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media.

answer

Advertising

question

Institutional advertising:

answer

promotes organizational images, ideas, and political issues.

question

Advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product is known as ___

answer

pioneer advertising

question

Which of the following is true of pioneer advertising?

answer

It focuses on stimulating demand for a particular brand in a product category.

question

What is the purpose of reinforcement advertising?

answer

To assure current users that they have made the right brand choice and tell them how to get the most satisfaction from that brand

question

Which of the following is usually the first step in the process of creation of an advertising campaign?

answer

Identifying and analyzing the target audience

question

Which of the following is true of the advertising platform?

answer

It consists of the basic selling points that an advertiser wishes to include in a campaign.

question

_____ refers to the total amount of money a marketer allocates for advertising for a specific time period.

answer

Advertising appropriation

question

The objective-and-task approach to determine advertising appropriation involves:

answer

determining what the firm wants to achieve with the campaign and then calculating the cost of all the tasks needed to attain these goals

question

Which of the following approaches to determining the advertising appropriation involves a high-level executive of the firm specifying the advertising budget for the advertising campaign, without taking other factors into consideration?

answer

Arbitrary approach

question

A company's ________ specifies the media vehicles to be used and the schedule for running advertisements.

answer

media plan

question

_____ refers to the percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period.

answer

Reach

question

Which of the following types of media schedules is characterized by advertisements that run for set periods of time, alternating with periods in which no ads run?

answer

flighting schedule

question

The storyboard for an advertisement refers to:

answer

a blueprint that combines copy and visual material to show the sequence of major scenes in a commercial.

question

Why should an advertiser pick a magazine over a newspaper as a medium of advertising?

answer

Magazines allow demographic selectivity for target markets.

question

Which of the following form(s) a part of the copy of an advertisement?

answer

Color scheme

question

The physical arrangement of the illustration and copy of a print advertisement is known as the ______

answer

layout

question

A(n) ________ refers to a posttest in which respondents are asked to identify advertisements they have seen recently but are not given any clues to help them remember.

answer

unaided recall test

question

The traditional form of compensation for an advertising agency involved:

answer

a commission from the media used for an advertisement campaign.

question

_____ refers to communication in news story form about the organization, its products, or both, transmitted through a mass medium at no cost.

answer

publicity

question

a news release is:

answer

a short piece of copy publicizing an event or a product.

question

A(n) ________ is a manuscript of up to 3,000 words prepared for a specific publication.

answer

feature article

question

Which of the following research tools for evaluating public relations effectiveness involves content analysis of messages, readership surveys, or readability studies?

answer

communications audit

question

______ identifies changes in public opinion affecting an organization.

answer

environmental monitoring

question

Which of the following would an organization undertake as part of a communications analysis?

answer

Conduct a content analysis of the advertising messages it uses

question

_____ refers to paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation.

answer

Personal selling

question

Which of the following statements about personal selling is true?

answer

Personal selling gives marketers the greatest freedom to adjust a message to satisfy customers' information needs.

question

Which element of the personal selling process involves developing a database of potential customers?

answer

Prospecting

question

Which of the following statements about referrals is true?

answer

Referrals do not technically qualify to be classified under prospecting since they do not involve cold calling.

question

Which of the following tasks is associated with the preapproach element of the personal selling process?

answer

Assessing credit histories and problems of potential customers

question

What type of approach does a salesperson use when he or she calls on potential customers without prior consent?

answer

Cold canvas approach

question

Which of the following statements about the personal selling process is true?

answer

Anticipating and countering an objection in a sales presentation is one of the best ways to countering objections, but is also a risky approach

question

A salesperson who sells to new customers and increases sales to current customers is known as a(n) _____

answer

order getter

question

____ are support salespeople, usually employed by a manufacturer, who assist the producer's customers in selling to their own customers.

answer

missionary salespeople

question

Which of the following is an example of support personnel?

answer

missionary salespeople

question

Relationship selling differs from traditional selling due to its:

answer

adoption of a long term perspective..

question

Which of the following types of products is best suited for personal selling through the team selling approach?

answer

Medical equipment

question

Which of the following suggestions should be followed for attracting and retaining a top sales force?

answer

Sales personnel should be given on-the-job, individual instructions into the sales role

question

_______ refers to a sales manager's responsibility that involves developing a list of qualified applicants for sales positions.

answer

recruiting

question

Which of the following is measure of a firm's sales goals stated in terms of profit?

answer

return on investment

question

In which of the following conditions is a straight commission compensation plan for salespeople considered to be particularly useful?

answer

When the company uses contractors and part-timers

question

Which of the following is a disadvantage of the straight salary compensation plan for salespeople?

answer

Closer supervision of salespeople is required.

question

Which of the following is considered to be one of the most important factors affecting the routing and scheduling of sales calls?

answer

Geographic shape of the sales territory

question

A retailer offers buy-one-get-one-free sales on its shoes.This is an example of _____

answer

sales promotion

question

_______ are written price reductions used to encourage consumers to buy a specific product.

answer

coupons

question

Cents-off offers, money refunds, and rebates are examples of ___

answer

Sales promotion methods

question

______ are sales promotion methods in which individuals compete for prizes based primarily on chance.

answer

consumer games

question

A(n) ________ is a temporary price reduction to resellers for purchasing specified quantities of a product.

answer

buying allowance

question

A buy-back allowance refers to:

answer

a sum of money given to a reseller for each unit bought after an initial promotion deal is over.

question

A(n) ________ is a gift to a retailer that purchases a specified quantity of merchandise.

answer

dealer loader

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