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379 terms

Marketing Final

STUDY
PLAY
The observation that consumers are generally more sensitive to price increases than to price decreases, suggests:
it is easier to lose customers with a price increase than gain customers with a price decrease.
For which of the following is demand likely to be most sensitive to price increases?
One brand of soft drink beverage.
Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand loyalty changes the demand curve for the firm's products:
reducing the price elasticity of demand for their product.
Assume the demand for electricity, a necessity good with few substitutes, is -0.2. If the electric company raised its rates by 10 percent, we would expect:
a 2 percent decrease in quantity demanded.
Which of the following is the most logical example of complementary products?
Hot dogs and hot dog rolls
When making a purchase decision, consumers do not care what costs a firm incurs. They weigh:
the sacrifice they must incur versus the benefits they expect to receive.
If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is:
price elastic.
If the Amador County Pest Control Association got together and all members agreed to charge 3 percent of the value of a home for a termite inspection letter, the association members would be engaging in:
horizontal price fixing.
A reference price might be considered deceptive if:
the reference point has been inflated or is fictitious.
_______________ is the practice of colluding with other firms to control prices.
Price fixing
sometimes, what consumers perceive as bait and switch marketing, advertising a low priced product and then only having a higher priced models, is in fact:
a miscommunication in the supply chain
there is no faster way to lose credibility with customers than to promise deliveries or run a promotion and not have the item when the customer expects it.
the importance of place in the four P's is best illustrated by what statement?
by reducing the number of transactions needed to move a product from the manufacturer to the customer, wholesalers and retailers make a supply chain:
more efficient
the reduce the need for inventory, EDI systems can reduce_____, the amount of time between the recognition that an order needs to be placed and the arrival of merchandise ready for sale
lead times
when Brian took over the position of puchasing manager for Gray Lumber Co, a regional retail and contractor's building materials supply company, he found a JIT system in place, but frequent problems. shipments were often late and without communication from the company's vendors and only superficial attempts to address problems. for companies like gray lumber, the critical factor in having a successful JIT system is
cooperation
the overall sacrifice a consumer is willing to make--money, time, energy--to acquire a specific product or service
price
a company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing
profit orientation
A pricing strategy implemented by firms when they have a particular profit goal as their overriding concern; uses price to stimulate a certain level of sales at a certain profit per unit
target profit pricing
a profit strategy that relies primarily on economic theory. if a firm can accurately specify a mathematical model that captures all the factors required to explain and predict sales and profits, it should be able to identify the price at which its profits are maximized
maximizing profit
a pricing strategy implemented by firms less concerned with the absolute level of profits and more interested in the rate at which their profits are generated relative to their investments; designed to produce a specific return on investment, usually expressed as a percentage of sales
target return pricing
a company objective based on the belief that increasing sales will help the firm more than will increasing profits
sales orientation
a competitor based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does no matter
premium pricing
a company objective based on the premise that the firm should measure itself primarily against its competition
competitor orientation
a firm's strategy of setting prices that are similar to those of major competitors
competitive parity
a competitor oriented strategy in which a firm changes prices only to meet those of the competition
status quo pricing
a company objective based on the premise that the firm should measure itself primarily according to whether it meets its customers' needs
customer orientation
shows how many units of a product or service consumers will demand during a specific period at different prices
demand curve
those that consumers purchase for status rather than functionality
prestige products or services
measures how changes in a price affect the quantity of the product demanded; specifically, the ratio f the percentage change in quantity demanded to the percentage change in price
price elasticity of demand
refers to a market for a product or service that is price sensitive; that is, relatively small changes in price will generate fairly large changes in the quantity demanded
elastic
refers to a market for a product or service that is price insensitive; that is, relatively small changes in price will not generate large changes in the quantity demanded
inelastic
refers to the change in the quantity of a product demanded by consumers due to a change in their income
income effect
refers to consumers' ability to substitute other products for the focal brand, thus increasing the price elasticity of demand for the focal brand
substitution effect
the percentage change in demand for product A that occurs in response to a percentage change in price of product B; see complementary products
cross price elasticity
products whose demand curves are positively related, such that they rise or fall together; a percentage increase in demand for one results in a percentage increase in demand for the other
complementary products
products for which changes in demand are negatively related; that is, a percentage increase in the quantity demanded for a product A results in a percentage decrease in the quantity demanded for product B
substitute products
those costs, primarily labor and materials, that vary with production volume
variable costs
those costs that remain essentially at the same level, regardless of any changes in the volume of production
fixed costs
the sum of the variable and fixed costs
total cost
technique used to examine the relationships among cost, price, revenue and profit over different levels of production and sales to determine the break even point
break-even analysis
the point at which the number of units sold generates just enough revenue to equal the total costs; at this point, profits are zero
break even point
equals the price less the variable cost per unit. variable used to determine the break-even point in units
contribution per unit
occurs when only a few firms dominate a market
oligopolistic competition
occurs when two or more firms compete primarily by lowering their prices
price war
occurs when there are many firms that sell closely related but not homogeneous products these products may be viewed as substitutes but are not perfect substitutes
monopolistic competition
occurs when different companies sell commodity products that consumers perceive as substitutable; price usually is set according to the laws of supple and demand
pure competition
a socially responsible movement that ensures that producers receive fair prices for their products
fair trade
employs irregular but not necessarily illegal methods; generally, it legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by their manufacturer
gray market
an attempt by a vendor to dictate or control the retail price
retail price maintenance (RPM)
the pattern of buying both premium and low priced merchandise or patronized both expensive, status-oriented retailers and price orientated retailers
cross-shopping
loss leader pricing take the tactic of leader pricign one step further by lowering the price below the stores cost
loss leader pricing
a deceptive practice of luring customers into the store with a very low advertised price on an item (the bait), only aggressively pressure them into purchasing a higher priced model (the switch) by disparaging the low priced item, comparing it unfavorably with the higher priced model, or professing an inadequate supply of the lower priced item
bait and switch
a firm's practice of setting a very ow price for one or more of its products with the intent to drive its competition out of business; illegal under botht he Sherman Act and the Federal Trade Commission Act
predatory pricing
the practice of selling the same product to different resellers (wholesalers, distributors, or retailers) or to the ultimate consumer at different prices; some, but not all, forms of price discrimination are illegal
price discrimination
the practice of colluding with other firms to control prices
price fixing
occurs when competitors that produce and sell competing products collude, or work together, to control prices, effectively taking price out of the decision process for consumers
horizontal price fixing
occurs when parties at different levels of the same marketing channel (e.g. manufacturers and retailers) collude to control the prices passed to consumers
vertical price fixing
refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless value chain in which merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, as well as to minimize system-wide costs while satisfying the service levels their customers require
supply chain management
those firms engaged in buying, taking title to, often storing, and physically handling goods in large quantities, then reselling the goods (usually in smaller quantities) to retailers or industrial or business users
wholesalers
the set of institutions that transfer the ownership ofand move goods from the point of production to the point of consumption; consists of all the institutions and marketing activities in the marketing process
marketing channel
the integration of two or more activities for the purpose of planning, implementing, and controlling the efficient flow of raw materials, in process inventory, and finished goods from the point of origin to the point of consumption
logistic management
a facility for the receipt, storage, and redistribution of goods to company stores or customers; may be operated by retailers, manufacturing, or distribution specialists
distribution channel
the black and white bar code found on most merchandise
universal product code (UPC)
an electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment
advanced shipping notice
the computer to computer exchange of business documents from a retailer to a vendor and back
electronic data interchange (EDI)
a secure communication system contained within one company, such as between the firms buyers and distribution centers
intranet
a collaborative network that uses internet technology to link businesses with their suppliers, customers, or other businesses
extranet
the time between the decision to place an order and the receipt of merchandise
cycle time
an approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailers inventory levels in each of its stores
vendor managed inventory (VMI)
the stock level at which a new order is placed
reorder point
an inventory management system that uses an EDI throuh which a retailer sends sales information to a manufacturer
collaborative planning, forecasting, and replenishment (CPFR)
strategy in which orders for merchandise are generated at the store level on the basis of demand data captured by POS terminals
pull supply chain
strategy in which merchandise is allocated to stores on the basis of historical demand, the inventory position at the distribution center, and the stores' needs
push supply chain
the person who coordinates deliveries to distribution centers
dispatcher
the process of recording the receipt of merchandise as it arrives at a distribution center or store
receiving
the process of going through the goods upon receipt to ensure they arrived undamaged and that the merchandise ordered was the merchandise received
checking
tiny computer chips that automatically transmit to a special scanner all the information about a containers contents or individual products
radio frequency identification (RFID) tags
cross-docked
a distribution method whereby merchandise is unloaded from the shippers' truck and within a few hours reloaded onto trucks going to stores. these items are prepackaged by the vendor for a specific store
floor ready merchandise
merchandise that is ready to be placed on the selling floor immediately
ticketing and marking
creating price identification labels and placing them on the merchandise
pick ticket
a document or display on a screen in a forklift truck indicating how much of each item to get from specific storage areas
just in time (JIT) inventory systems
inventory management systems designed to deliver less merchandise on a more frequent basis than traditional inventory systems; the firm gets the merchandise "just in time" for it to be used in the manufacture of another product, in the case of parts or components, or for sale when the customer wants it, in the case of consumer goods; aka quick response(QR) systems in retailing
quick response
an inventory management system used in retailing; merchandise is received just in time for sale when the customer wants it; see JIT systems
lead time
the amount of time between the recognition that an order needs to be placed and the arrival of the needed merchandise at the seller's store, ready for sale
supply chain
the group of firms that make and deliver a give set of goods and services
channel conflict:
the conflict occurs when supply chain members are not in agreement about their goals, roles or rewards
independent (conventional) supple chain
a loose coalition of several independently owned and operated supply chain members--a manufacturer, a wholesaler, and a reailer--all attempting to satisfy their own objectives and maximize their own profits, often at the expense of the other members
vertical marketing system
a supply chain in which the members act as a unified system; there are 3 types: administrated, contractual, and corporate
administered vertical marketing system
a supply chain system in which there is no common ownership and no contractual relationships, but the dominant channel member controls the channel relationship
contractual vertical marketing system
a system in which independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination and to reduce conflict
franchising
a contractual agreement between a franchisor and a franshisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor
corporate vertical marketing system
a system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities, retail outlets, and design studios
strategic relationship (partnering relationship)
a supply chain relationship that the members are committed to maintaining long term, investing in opportunities that are mutually beneficial; requires mutual trust, open communication, common goals, and credible commitments
CPFR.
General Mills (manufacturer of a variety of food products) might engage Target, Costco, Wal-Mart and Kroger in a:
each party wants something from the other.
The basic motivating factor in designing supply chains is:
reduce inventories needed to satisfy retailers' demand.
Because manufacturers with JIT systems produce merchandise closer to the time of sale, they can
quick-response
In retailing, a just-in-time delivery system is called a _____________ system.
Customers will send and receive information from stores and manufacturers.
In addition to merchandise and payments, information flows throughout a supply chain. Which of the following is NOT a good characterization of the flow of information in a supply chain?
Noise
Which of the following is NOT a communication channel used in the IMC process?
focus his efforts on his customer target markets.
Gerald knows which IMC communication channels are available and knows how he will measure the results of his IMC efforts. To implement his IMC efforts, Gerald also needs to:
receiver
In the IMC communication process, the _____________________ is the person who reads, hears, or sees and processes the message being communicated
Awareness stage.
In the AIDA model, the "think" stage is the:
transmitter
In the IMC communication process, the _____________________ develops the marketing communication message.
have customers post reviews and comments about the products and services
Companies can gain a competitive advantage using the Internet to:
Direct marketing
Darren wanted to develop an Internet marketing effort for his small publishing firm. He knew, however, that he did not want to use the kind of advertising that would look like spam, so he was looking at other IMC components. Which would give him the best opportunity to generate responses and transactions?
free samples and point-of-purchase displays
Karen manages cosmetic counters in a regional department store chain. She wants to increase sales during the summer, hoping that will generate repeat business during the holiday season. Because Karen is selling personal care products in a department store, she will most likely use __________________ sales promotions.
corporate blog
A _________________ can be used to create positive word of mouth, help customers form a community and develop long-term relationships between customers and the company.
Personal selling
______________________ could involve face-to-face, video teleconferencing, telephone or Internet communication and interaction between a buyer and a seller.
Integrated marketing communications (IMC)
represents the promotion dimensions of the four Ps; encompasses a variety of communication disciplines--general advertising, personal selling, sales promotion, public relations, direct marketing, and electronic media--in combination to provide clarity, consistency, and maximum communicative impact
sender
the firm from which an IMC message originates; the sender must be clearly identified to the intended audience
transmitter
an agent or intermediary with which the sender works to develop the marketing communications; for example, a firm's creative department or an advertising agency
encoding
the process of converting the sender's ideas into a message, which could be verbal, visual or both
communication channel
the medium--print, broadcast, the internet--that carries the message
receiver
the person who reads, hears, or sees and processes the information contained in the message or advertisement
decoding
the process by which the receiver interprets the senders message
noise
any interference that stems from competing messages, a lack of clarity in the message, or a flaw in the medium; a problem for all communication channels
feedback loop
allows the receiver to communicate with tender and thereby informs the sender whether the message was received and decoded properly
AIDA model
a common model of the series of mental stages through which consumers move as a result of marketing communications: awareness leads to interests, which leads to desires which leads to actions
Brand awareness
measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers
aided recall
occurs when consumers recognize a name (e.g. of a brand) that has been presented to them
top-of-the-mind awareness
a prominent place in people's memories that triggers a response without them having to put any thought into it
lagged effect
a delayed response to a marketing communication campaign
advertising
a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future
personal selling
the 2 way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision
sales promotions
special incentives or excitement-building programs that encourage the purchase of a productt or service, such as coupons, rebates, contests, free samples, and point of purchase displays
direct marketing
sales and promotional techniques that deliver promotional materials individually to potential customers
m-commerce (mobile commerce)
communicating with or selling to consumers through wireless hand-held devices such as cellular phones
public relations
the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media
blog (weblog or web log)
a web page that contains periodic posts; corporate blogs are a new form of marketing communications
social shopping
the use of the internet to communicate about product preferences with other shoppers
objective-and -task method
an IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs
rule-of-thumb
budgeting methods that base the IMC budget on either the firm's share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted
competitive parity
a firm's strategy of setting prices that are similar to those of major competitors
percentage of sales
a method of setting an IMC budget based on a fixed percentage of forecasted sales
affordable budget
a method of setting an IMC budget in which the firm first forecasts their sales and expenses, excluding IMC. the difference between the forecasted sales and expenses plus desired profit is reserved for the IMC budget
frequency
measure of how often the audience is exposed to a communication within a specific period of time
reach
measure of consumers' exposure to marketing communications; the percentage of the target population exposed to a specific marketing communication, such as an advertisement, at least once
gross rating points (GRP)
measure used for various media advertising--print, radio, or TV; GRP= reach X frequency
web tracking software
used to assess how much time viewers spend on particular Web pages and the number of pages they view
Click-through tracking
a way to measure how many times users click on banner advertising on Web sites
online couponing
a promotional web technique in which consumers print a coupon directly from a site and then redeem the coupon in a store
online referring
a promotional web technique in which consumers fill out an interest or order form and are referred to an offline dealer or firm that offers the product or service of interest
search engine marketing (SEM)
a tool that allows firms to show up in searches based on the keywords potential customers use
click-through rate (CTR)
an online measure of reach, CTR equals the number of times a potential customer clicks on an ad divided by the number of impressions
impressions
the number of times and online ad appears in front of a user
relevance
describes how useful an ad message is to a consumer doing an internet search
networking.
It is not easy to break into markets where trust between the seller and buyer is extremely important. An effective way to generate leads used by professionals and those selling services is:
Follow-up
________________ stage in the personal selling process corresponds to the performance assessment stage in the B2B selling process.
where the customer is in their buying process.
Like any effective salesperson, Frazer walks into a customer's office, shakes hands, looks the customer in the eye, and smiles. After exchanging pleasantries, Frazer will try to create interest his company's product, and establish:
establish goals for meeting with the customer.
Tina has identified an attractive potential customer for her bio-diesel home power system. She knows the customer is very concerned about the environment and has considerable financial resources. The customer is also a respected leader among wealthy environmentalists in the area. Next Tina will:
reliability
Ryan knows the attitudes his customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. Ryan knows he needs to convey _____________, delivering the right services and on time.
persuasive
P&G's Tide laundry detergent has been around since 1948 and is still a market leader. P&G has used ___________________ advertising to reposition Tide several times over its PLC.
broadcasters to devote a specific amount of free time to them.
Because PSAs are a special class of advertising, FCC rules require:
primary demand
The "Got Milk?" ads are an extremely effective ___________________ campaign
specific and measurable.
Regardless of what the objective of the advertising campaign is, each campaign's objectives must be:
meaningful to the consumer.
Wal-Mart's "Everyday low prices" selling proposition is effective primarily because it is:
advertising
a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future
advertising plan
a section of the firm's overall marketing plan that explicitly outlines the objectives of the advertising campaign, how the campaign might accomplish those objectives, and how the firm can determine whether the campaign was successful
pull strategy
designed to get consumers to pull the product into the supply chain by demanding it
push strategy
designed to increase demand my motivating sellers--wholesalers, distributors, or sales people--to highlight the product, rather that the products of competitors and thereby push the product onto consumers
informative advertising
communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase
persuasive advertising
communication used to motivate consumers to take action
reminder advertising
communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle
product-focused advertisements
used to inform, persuade, or remind consumers about a specific product or service
institutional advertisements
used to inform, persuade, or remind consumers about issues related to places, politics, an industry, or a particular corporation
primary demand advertising
ads designed to generate demand for the product category or an entire industry
PSA
advertising that focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing
social marketing
the application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment
selective demand
demand for a specific brand
unique selling proposition (USP)
a strategy of differentiating a product by communicating its unique attributes; often becomes the common theme or slogan in the entire advertising campaign
informational appeal
used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides
emotional appeal
aims to satisfy consumers' emotional desires rather than utilitarian needs
media planning
the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience
media mix
the combination of the media used and the frequency or advertising in each medium
media buy
the actual purchase of airtime or print pages
mass media
channels that are ideal for reaching large numbers of anonymous audience members; include national newspapers, magazines, radio and TV
niche media
channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests
viral marketing campaign
aka viral marketing
advertising schedule
the specification of the timing and duration of advertising
continuous advertising
runs steadily throughout the year and is therefore suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive or reminder advertising
flighting advertising
an advertising schedule implemented in spurts, with periods of heavy advertising followed by no advertising
pulsing advertising
combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods
headline
in an advertisement, large type designed to draw attention
body copy
the main text portion of an ad
background
in an ad, the backdrop, which is usually a single color
foreground
in an advertisement, everything that appears on top of the background
branding
in an ad, the portion that identifies the sponsor of the ad
pretesting
assessments performed before an ad campaign, is implemented to ensure that the various elements are working in a integrated fashion and doing what they are intended to do
tracking
includes monitoring key indicators, such as daily or weekly sales volume, while the ad is running to shed light on any problems with the message or the medium
posttesting
the evaluation of an IMC campaign's impact after it has been implemented
lift
additional sales caused by advertising
puffery
the legal exaggeration of praise, stopping just short of deception, lavished on a product
PR
the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media
cause related marketing
commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign
event sponsorship
popular PR tool; occurs when corporations support various activities (financially or otherwise), usually in the cultural or sports and entertainment sectors
sales promotions
special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point of purchase displays
coupon
provides a stated discount to consumers on the final selling price of a specific item; the retailer handles the discount
deal
a type of short term price reduction that can take several forms, such as a "featured price" a price lower than the regular price; "buy one, get one free" offer; or a certain percentage "more free" offer contained in a larger packaging; can involve a special financing arrangement, such as reduced percentage interest rates or extended repayment terms
premium
an item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling or testing
contests
a brand sponsored competition that requires some form of skill or effort
sweepstakes
a form of sales promotion that offers prizes based on chance drawing of entrants' names
sampling
offers potential customers the opportunity to try a product or service before they make a buying decision
loyalty program
specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time
point of purchase (POP) display
a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store
rebate
a consumer discount in which a portion of the purchase prices is returned to the buyer in case; the manufacturer, not the retailer, issues the refund
product placement
inclusion of a product in nontraditional situations, such as in a scene in a movie of TV show
personal selling
the two way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision
relationship selling
a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial
leads
a list of potential customers
qualify
the process of assess the potential of sales leads
trade shows
major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry
cold calls
a method of prospecting in which sales people telephone or go to see potential customers without appointments
telemarketing
a method of prospecting in which sales people telephone potential customers
preapproach
in the personal selling process, occurs prior to meeting the customer for the first time and extended the qualification of leads procedure; in this step, the sales person conducts additional research and develops plans for meeting with the customer
role playing
a good technique for practicing the sales presentation prior to meeting with the customer; the sales person acts out a simulated buying situation while a colleague or manager acts as the buyer
closing the sale
obtaining a commitment from the customer to make a purchase
commission
compensation or financial incentive for sales people based on a fixed percentage of their sales
sales management
involves the planning, direction, and control of personal selling activities, including recruiting, selecting, training, motivating, compensating, and evaluating, as they apply to the sales force
company sales force
comprised of people who are employees of the selling company and are engaged in the selling process
independent agents
sales people who well a manufacturer's product on a extended contract basis but are not employees of the manufacturer; aka manufacturer's representatives ore reps
order getter
a sales person whose primary responsibilities are identifying potential customers and engaging those customers in discussions to attempt to make a sale
order taker
a sales person whose primary responsibility is to process routine orders or reorders or rebuys for products
sales support personnel
employees who enhances and help with a firm's overall selling effort, such as by responding to the customer's technical questions or facilitating repairs
selling teams
combination of sales specialists whose primary duties are order getting, order taking, or sales support, but who work together to service important accounts
salary
compensation in the form of a fixed sum of money paid at regular intervals
bonus
a payment made at management's discretion when the sales person attains certain goals; usually given only periodically, such as at the end of the year
sales contract
a short-term incentive designed to elicit a specific response from the sales force
"judging a book by its cover."
When a plumbing contractor drove up to Bill's house in a brand new Mercedes Benz, Bill decided this person would be too high-priced even before the plumbing contractor offered his bid. Bill made the mistake of:
Follow-up
_________________ stage in the personal selling process corresponds to the performance assessment stage in the B2B selling process.
do all the talking.
Often, inexperienced salespeople mistakenly believe that during the sales call, they should:
assurance
Ryan knows the attitudes his customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. Ryan knows he needs to convey _____________, guaranteeing his work in writing.
persuasive
Every year Anheuser-Busch runs television ads at holiday time featuring their Clydesdale horses pulling a stagecoach with an Anheuser-Busch logo. Their message is low-key, wishing everyone well during the holiday season. This is an example of ____________ advertising.
unique selling proposition
The _____________________ communicated by advertising needs to be unique to the brand, meaningful to the customer, sustainable over time, and supportive of repetition.
informative
"Now available. The latest fall fashions," is an example of a(n) _______________ advertising message.
reminder
Let your fingers do the walking in the Yellow Pages" is a(n) __________________ advertising message.
selective demand
As part of determining the ad campaign's objectives, the marketer needs to decide between developing primary demand or ________________.
preapproach
Kathleen has found out everything she can about the new qualified leads. She has practiced making her presentation to the customers and determined what goals she has for the first meeting. Kathleen has finished the ________________ stage of the selling process.
`"judging a book by its cover."
When a plumbing contractor drove up to Bill's house in a brand new Mercedes Benz, Bill decided this person would be too high-priced even before the plumbing contractor offered his bid. Bill made the mistake of:
develops plans for meeting with the customer
During the preapproach stage, a salesperson usually conducts additional research about prospects and:
people who attend are interested in the products and services being offered.
Trade shows are a particularly good source of B2B sales leads because:
the cost of preparing and making a presentation to most business customers.
One of the reasons why B2B salespeople spend considerable time qualifying potential customers is:
a pull strategy to get the product into the distribution channel by having consumers demand it.
Generally, when advertising to consumers, the objective of an advertising campaign is:
inform, persuade, or remind
After identifying the target audience for the university's new advertising campaign, the advertising team needs to decide whether the advertising objective is to ______________________ potential and/or existing students.
push
Florida Heat Pump manufacturing company is offering a free, expense paid trip to Las Vegas for HVAC dealers that sell twenty units this year. Florida Heat Pump is using a ____________________ promotional strategy.
to inform, persuade, or remind customers.
All advertising objectives are designed to achieve certain objectives:
relationship selling
For salespeople who practice ____________________, an unsuccessful close one day may lay the groundwork for a successful close during the next meeting.
the Internet.
Brent is preparing for an initial sales trip to Guatemala. He is hoping to find leads to sell his company's textile manufacturing equipment. Which of the following would likely be the best source of leads for Brent?
ask questions to clarify any reservations.
Often the best way to handle customers' reservations is to relax, listen, and:
ask a series of questions
Like any effective salesperson, Tiffany walks into a customer's office, shakes hands, looks the customer in the eye, and smiles. After exchanging pleasantries, Tiffany will try to create interest her company's product. Tiffany will likely ______________________ to adapt or customize her presentation to match the customer's needs.
is most intense.
Persuasive advertising is often used when competition:
push
If marketers want to have the members of the distribution channel emphasize a product, especially at the retail level, they will use a ____________ promotional strategy.
institutional advertising
The classic "We're GE, we bring good things to life" ad campaign was a(n) ________________ campaign.
create and build brand awareness.
Informative advertising is used to:
solving problems for consumers
When developing an advertising message, the message should focus on:
pull the product into retail stores through consumer demand.
Whenever the major beverage companies develop a new product, they advertise it heavily using television and print media. These efforts are designed to:
he or she will go away empty handed
One advantage of the sales representative on commission is that he or she is in control of his or her own earnings. Being in control, however, means that if he or she does not successfully close the sale, _____________.
Closing the sale
_________________ stage in the personal selling process corresponds to the proposal analysis and supplier selection stage in the B2B selling process.
responsiveness and empathy
Jonathon sells building materials to local contractors. He wants to build long-term relationships with his contractors through effective follow-up. After delivering the materials ordered, Jonathon can demonstrate ________________________ by checking with his contractors right after the delivery and addressing problems promptly.
where the customer is in their buying process.
The beginning of the sales presentation may be the most important part of the selling process, because this is where the salesperson establishes:
breaking through the clutter of other messages targeted for the same audience.
One of the difficulties associated with using advertising as part of a marketer's IMC efforts is:
target their desired audience narrowly.
One of the benefits of media fragmentation is it has allowed IMC planners to:
business-to-business markets.
Personal selling is an especially important part of IMC in:
Pop-up ads on Web sites
Which of the following is the best example of the increasingly pervasive nature of today's advertising?
a two-way flow of communication between a buyer and a seller.
The difference between advertising and personal selling is personal selling involves:
drive the receiver to action.
Betty is assessing the effectiveness of her firm's marketing communications. She knows the ultimate goal is to:
a flaw in the medium
National manufacturers and retailers pay a service company to monitor television ads around the country to ensure that their ads are seen in their entirety during the time frames that had been purchased. This service company helps avoid the IMC noise problem associated with:
each receiver decodes IMC messages in his or her own way
Marketers often use focus groups to learn how consumers interpret their IMC messages. Experience has taught marketers that:
the one that will connect to the desired recipients.
The right communication channel to use in IMC is:
"think, feel, do."
Another name for the AIDA model is:
broadcast, but not cable, television advertising.
Brenda wants to reduce mass media IMC and increase the use of personalized marketing communication messages. Brenda will likely increase her use of all the following EXCEPT:
build customer loyalty.
Marketers use corporate blogs to create positive word of mouth, gather feedback, respond directly to customers, and:
it allows for personalization of the message
Compared to mass media advertising, a key advantage of direct marketing is:
the media environment has become more complicated.
Marketing communications experts recognize reaching the right audience is becoming more difficult because:
has little control over what meaning any individual receiver will take from the message.
The sender of an integrated marketing communication:
consumers are unlikely to buy products they are not aware of
Especially for marketers with new products or services, IMC is needed because:
Decoding
_______________ refers to the process by which the receiver interprets the sender's message.
Brand awareness
_______________ refers to a potential customer's ability to recall that the brand name is a particular type of retailer, product or service.
stimulate interest, persuading consumers to investigate further
Several years ago, changes in advertising restrictions allowed pharmaceutical companies to begin promoting their products through traditional media. Today, it is hard not to see ads on television ending with "Ask your doctor about [our medicine.]" In addition to creating awareness about their drugs, the companies are hoping to:
advertising
Many marketers are shifting marketing communication resources away from ________________ and toward direct marketing, Web site development, product placement, and Internet advertising.
order products on the site.
Elliott was hired to improve a company's Web site right after graduating from college. Most of the others in the marketing area were significantly older, and no one had spent much time or effort in developing the site. Like most introductory or basic Web sites, the firm simply translated its print materials to the site. Elliott knew a lot more marketing could be done beyond the old-fashioned, selling-related use of the site to:
direct marketing
New technologies like PDAs, podcasts, and cell phones allow greater potential for ___________________ IMC efforts.
supply chain marketing
Integrated marketing communications include all of the following except:
top-of-mind awareness
The highest level of awareness occurs when customers mention a specific brand name when asked about a product or service. Marketers call this __________________.
IMC
As businesses grow, the advertising, promotion and personal selling efforts may not be coordinated or cohesive as the firms respond to targets of opportunity. The sooner the firm uses ___________________, the sooner the firm will have clarity, consistency and the maximum impact for its communications.
aided recall
Cheryl asked Nadia to help her buy some aftershave for her boyfriend. Nadia was going through a list of different brand names, when Cheryl stopped her and said, "I recognize that one." Marketers call this _______________.
go through several steps before deciding whether to stop at South of the Border.
Julia is driving down Interstate 95 on her way from New England to Florida and sees a billboard saying "South of the Border Restaurant and Motel is just 100 miles away."After seeing the sign, Julia will most likely:
feedback
Manufacturers and retailers worry constantly about whether their IMC efforts are paying off. They assess various forms of _________________ to determine what is working and what is not working.
drive the receiver to action
Betty is assessing the effectiveness of her firm's marketing communications. She knows the ultimate goal is to:
gain the attention of the consumer
Even the best marketing communication can be wasted if the sender does not first
communicate the value proposition to the target market.
The basic goal of integrated marketing communications is to:
each receiver decodes IMC messages in his or her own way.
Marketers often use focus groups to learn how consumers interpret their IMC messages. Experience has taught marketers that:
communication channel
In the IMC communication process, the _____________________ is the medium that carries the message.
Action stage
In the AIDA model, the "do" stage is the:
decoding
If you have ever watched a television commercial and at the end of the message wondered what were they promoting, you may have had trouble _____________ the IMC message.
which, if any, of her firm's IMC efforts are working.
Loretta has a stack of reports and a number of spreadsheets showing and comparing sales data, complaints, compliments and redemptions rate for coupons or rebates. As she begins to sort through the data, she will use them to help determine:
not what is sent rather what is received
Though a picture may be worth a thousand words, the most important facet of encoding is:
it allows for personalization of the message.
Compared to mass media advertising, a key advantage of direct marketing is:
the media environment has become more complicated.
Marketing communications experts recognize reaching the right audience is becoming more difficult because:
Store-front sandwich boards
Which of the following is NOT one of the advances in technology causing changes in marketing communication strategy?
creating awareness and generating interest in a product
Compared to other IMC alternatives, advertising is extremely effective for:
an electronic data interchange
Many small manufacturers use bookkeeping and inventory management software and communicate with customers through e-mail. As business expands, they will often use ________________ to receive sales data, initiate purchase orders, send and receive invoices, and receive returned-merchandise documentation.
tiny computer chips that transmit information about a container's contents.
Radio frequency identification tags are:
having enough inventory to satisfy customer demands versus the cost of having the inventory.
Retailers must balance the inventory management problem of:
having enough books to satisfy customer demands versus the cost of having the inventory.
In the fall of 2006, Vintage Press rushed to publish the Iraq Study Group Report. For bookstores ordering the publication, the inventory control dilemma was:
B2B marketing usually involves more personal selling.
Generally, less money is spent on advertising in B2B markets because:
Cold calling
______________ is a method of prospecting in which salespeople telephone or go to see potential customers without appointments.
whether it is worthwhile to pursue these potential customers.
Brandon is in the process of qualifying leads he received from his home office. Brandon will assess:
overcoming objections.
Handling reservations during the selling process is also known as:
establish goals for meeting with the customer.
Tina has identified an attractive potential customer for her bio-diesel home power system. She knows the customer is very concerned about the environment and has considerable financial resources. The customer is also a respected leader among wealthy environmentalists in the area. Next Tina will:
ability to purchase houses in different price ranges.
When realtors meet with new customers, they frequently offer to estimate how much mortgage lenders will be willing to lend the customer. In the process, realtors assess buyers':
it is expensive
RFID offers the participants in the supply chain a powerful tool for tracking inventories and reducing handling. The main reason why it has NOT been more widely adopted is:
all of the four P's.
If two companies use an electronic data interchange (EDI) to negotiate prices, specify product details, display pictures of new products, and offer sales promotions, the EDI is being used for:
cost changes to the wholesaler
Given the volatility in the price of oil in the last few years, oil refiners probably use their electronic data interchange systems to communicate information about _______________ to gasoline distributors.
JIT
At the BMW plant in Spartanburg, South Carolina, suppliers deliver parts every four hours when the plant is in operation and are responsible for removing any packaging or pallets used to deliver their products. BMW uses a ______________ inventory control system.
an electronic data interchange
Many small manufacturers use bookkeeping and inventory management software and communicate with customers through e-mail. As business expands, they will often use ________________ to receive sales data, initiate purchase orders, send and receive invoices, and receive returned-merchandise documentation.
The customer's credit card company
In a typical supply chain each participant adds value and plays a role in getting the product to the ultimate customer. Which of the following would NOT be a participant?
the supply chain.
Every marketing decision is affected by and has an effect on:
verification of promotional allowances.
Compared to the 1990s, supply chain management streamlines distribution by reducing problems associated with all of the following EXCEPT:
it is expensive.
RFID offers the participants in the supply chain a powerful tool for tracking inventories and reducing handling. The main reason why it has NOT been more widely adopted is:
cost changes to the wholesaler
Given the volatility in the price of oil in the last few years, oil refiners probably use their electronic data interchange systems to communicate information about _______________ to gasoline distributors.
retailers, manufacturers, or distribution specialists
A distribution center is typically operated by:
the time between the decision to place an order and the receipt of the merchandise
One of the benefits of EDI is that it can reduce cycle time, which is ___________.
generate a sales forecast and a delivery schedule.
In a CPFR system, information is used to:
JIT
______________ systems are designed to delivery less merchandise on a more frequent basis to retailers.
retailers send sales information to the manufacturer
In CPFR inventory management system, ______________________.
align deliveries more closely with sales.
Especially in the fashion industry where styles and trends change rapidly, a quick response system can:
distribution center
A _______________ is a facility for the receipt, storage, and redistribution of goods to company stores or customers.
15-30 days.
in the 1990s before the widespread use of the Internet, the typical, well-organized order-to-delivery process included order creation using a telephone, fax or mail, order processing, credit authorization and warehousing and deliver often took:
the right SKU that meets their needs.
Customers have little knowledge of or concern for inventory control. Customers want:
the purchase is added to the customer's personal and confidential purchasing habit records.
When a customer purchases a DVD at a Best Buy Electronics store, all of the following information flows are started EXCEPT:
a commitment to partnering with publishers.
Amazon.com was an early leader in online retailing. Part of the firm's success was due to a well designed and efficient EDI system with book publishing companies allowing just-in-time delivery. Even with a well designed EDI system, Amazon.com would not have been successful without:
checking
Ted is glad his company finally converted to a RFID system. Now, he no longer needs to go through all the new goods to make sure what they ordered was what they received. Ted is responsible for ________________ in his company.
price inelastic.
The food and beverage manager at an upscale country club once offered a two-for-one happy hour price for all alcoholic beverages, only to see a very little response to the special. For these consumers, demand for alcoholic beverages is:
price and quantity demanded
A demand curve shows the relationship between ___________________ in a period of time
price inelastic.
If a 1 percent decrease in price results in less than a 1 percent increase in quantity demand, demand is:
marketers themselves
It is the responsibility of ___________________ to determine the ethical approach to setting prices so consumers find value and the firm can make a profit.
reference
Marketers advertising an artificially high "regular price" are unethically attempting to influence consumers' _____________ perceptions.
predatory pricing.
If a telecommunications company drastically cut their price for cellular phone service in order to eliminate local competitors, the company could be charged with:
$550,000.
Raymond estimates the fixed costs associated with opening a new bank branch are $500,000. He estimates the branch will attract 1,000 new customers who will cost $50/year to service each of their accounts. He also expects to generate $100,000 in fees annually from these accounts. For Raymond, the total cost of opening the new branch and remaining open for one year will be:
the demand curve for a product.
A change in advertising expenditures, the economy, the number of customers, or the price of related goods would likely cause a change in:
price inelastic.
When customers are involved in co-creation, when the product is a prestige product, or when "nothing is too good for the person who will receive this gift," demand is likely to be:
consumers make their purchase decisions based on perceived
In general, prices should not be based on costs because:
price inelastic.
Ferrari and Lamborghini are manufacturers of very expensive automobiles. Their limited edition cars often sell for $300,000 or more. Owning one of their cars is considered by most consumers a prestige product, for which demand is likely to be:
Fixed costs
___________________ are costs that remain constant as the volume of production increases or decreases.
she was concerned about the value she saw in the product.
Liz and Sarah watched the prices of all the ingredients in their line of specialty sauces go up and up. Now transportation costs were going through the roof. Liz suggested they could just raise prices to cover these expenses because customers would understand. Sarah wasn't so sure, because thinking about her own consumption patterns:
price and quantity demanded
A demand curve shows the relationship between ___________________ in a period of time.
an increase in the price of natural gas will increase demand for his electrical heating systems
Frank's Heating and Air Conditioning Company specializes in electric heat pumps. Frank keeps track of the price of natural gas, knowing:
his salary
David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following EXCEPT:
income effect
Marketers of brand name orange juice know sales of their product increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. Among industry members it is called the "orange juice indicator." This is an example of how the ____________ affects demand for a product.
income effect
Scooter owns Hallman's auto repair service. He has observed over the years that customers hold on to high-mileage cars longer when the economy is doing poorly, creating demand for his maintenance and repair service. Scooter has observed the ______________ on demand for his service.
increased the cross-price elasticity for substitute products.
Internet comparison shopping sites like shopping.com and pricegrabber.com allow consumers to compare prices of substitute products infinitely more easily than just five years ago. These sites have:
Loss leader pricing
____________________ lowers the price below the store's cost.
the reference point has been inflated or is fictitious.
A reference price might be considered deceptive if:
the seller is trying to match a competitor's price.
It is legitimate to charge a different price to a retailer if:
Prescription drugs
For which of the following is demand likely to be least sensitive to price increases?
a demand curve
Customers must see value in a product or service before they are willing to exchange their time or money to obtain it. Not all customers see the same value in a product, though, and to analyze how many units will be sold at any given point where the consumer sees value, marketers draw on ________________.
production volume
Variable costs, primarily labor and materials, are those costs that vary with __________________.
changes in the quantity the product or service being produced.
Variable costs change with:
inelastic
A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) ________________ price elasticity demand.
raising the price makes more people want to own one.
Customers will purchase prestige products or services for the status of owning the products more than just functionality. One would expect that if the company will sell fewer units, they will be sold at higher prices. Raising the price though can result in more sales up to a point if
decrease the demand for their products.
Managers of Wendy's Restaurants keep track of prices at McDonald's, Burger King, and Arby's knowing a decrease in the prices at these other fast food restaurants will:
his salary.
David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following EXCEPT:
price elastic.
Near the end of the summer season, Smitty found he still has a large inventory of bathing suits. He needs to sell them rather than hold them over to the next season when color and styles may have changed. He plans to offer them at 30 percent off the retail price. Smitty hopes that demand for bathing suits at the end of the season is:
the discounts are available to all customers.
B2B quantity discounts are legal if:
bait and switch.
Bill desperately needed tires for his car, and he found an ad with an incredibly low price. When he got there, he found out that those had been sold out, and he was pressured into buying tires that were more expensive than he wanted. Bill found out later that Mark had had the same experience at the store a few weeks earlier. It's quite possible that Bill - and Mark - had become the victim of a deceptive pricing tactic known as:
hours worked by waiters and waitresses.
Danielle manages a McDonald's restaurant. She is considering staying open later in the evening. For Danielle, the fixed costs associated with staying open longer hours will include all of the following EXCEPT
complementary products.
Bill is a yacht broker in the southeastern United States. For years he has had difficulty selling large yachts locally because there were few places to dock these boats. Yachts and spaces to dock them are an example of:
percentage change in quantity demanded of good A divided by percentage change in price of good B.
Cross-price elasticity is:
decrease.
If the price for a product increases, the demand for the complementary product will:
less quantity consumers will buy.
According to demand curves, the higher the price the:
the demand curve for a product.
A change in advertising expenditures, the economy, the number of customers, or the price of related goods would likely cause a change in:
retailers, manufacturers, or distribution specialists.
A distribution center is typically operated by:
The customer's credit card company
In a typical supply chain each participant adds value and plays a role in getting the product to the ultimate customer. Which of the following would NOT be a participant?
operates its own flexible worldwide distribution network.
Zara's success as a clothing retailer derives from its innovations in the retail area and its mastery of supply chain management. Zara:
ticketing and marking.
Getting merchandise floor-ready entails:
JIT system
For a(n) ________________ to be successful, the firm and its vendors need to cooperate, share data, and develop EDI and CPFR systems.
extranet
Timothy is soliciting proposals from vendors to supply parts for his lawnmower manufacturing plant. He will likely use a(n) ____________________ to electronically solicit proposals.
floor-ready
Some retailers require their suppliers to ship merchandise _________________, thus eliminating the time and expense associated with ticketing and marking.
more likely to have what customers want.
With more frequent shipments associated with QR systems, a retailer is: