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Marketing Exam 2

Terms in this set (233)

What are the two functions of a brand?
Identify and differentiate
What are the two parts that make up a brand?
Brand Name and Brand Mark
Seeing a brand can cause consumers to automatically think of the attributes of the firm.
True
A "brand" is confined to the physical name or logo associated with the firm.
False
The primary value of a brand for consumers is the:
reduction of perceived risk
The brand resides in the consumer's:
Memory
What is Spreading Activation?
When nodes are energized and brought into working memory
When does activation occur?
With either external or internal cues
Addi is driving from Stillwater to Dallas, and sees a McDonald's sign with golden arches (but no words). She automatically begins to think of her hunger. What kind of cue activated this thought?
External cue
Brand awareness is associated with the ability of the brand to __________ who is offering a product or service, while brand association is associated with the ability of the brand to ____________ from competitors.
identify; differentiate
Which of these is not a type of brand association?
brand memories
Automaticity in a branding context means:
the evaluation of a brand is brought to either conscious or subconscious thought
A way of visually presenting where your brand is in consumers' minds is called a:
brand map
Brand associations within a brand map can also have _______ attached to them.
mood and emotion
A brand map determines brand associations from the perspective of the:
consumer
When creating a brand map, a word cloud is always more useful than a table.
False
The added value delivered by the brand over the functional benefits or book value is called:
Brand Equity
Book value of assets + Brand equity =
Market value of brand
Brand equity starts as a ________ concept, but ends up having a real ________ effect.
psychological; monetary
The "magic lesson" teaches us how to turn what into dollars?
what consumers know about the brand
Which of these is not a way to turn brand equity into dollar value?
Price Competition
If Oreo cookies come out with a new flavor of s'mores Oreo cookies, what are they using in order to turn brand equity into dollars?
Promotional Advantage
The example of the purchase of the PanAm brand demonstrates how:
Brands can have value beyond the book value of the firm
An agreement whereby a company permits another organization to use its brand on other products for a fee is defined as:
Brand licensing
The brand name must provide _________ meaning for the product.
secondary
Which of these is not a branding strategy?
Franchise Branding
Unilever houses many brands, such as SlimFast nutrition drinks, Dove soap, and Skippy peanut butter, that all sell different products. What branding strategy is used here?
Individual branding
Which of these is not a benefit of individual branding?
strong connections to established brands for new brands to lean on
Which of these is not a benefit of institutional branding?
greater individualized identity for new products
Which of these companies is more likely to use an institutional branding strategy for a new product or service?
Sony
Which of these is not a benefit of sub-branding?
increased market share
What is the main advantage of using a sub-branding strategy?
all of these
Mostly, business is made up of:
smaller, more frequent transactions
Face-to-face communication is necessary for true "frontline" transactions.
False
Technology has had little impact on organizational frontlines in most industries.
False
Rachel goes to Walmart to buy groceries, and checks out with a cashier. When Rachel hands her cash to the Walmart employee, what kind of interaction has taken place?
Traditional Interactions
When Mariah needs money, she goes to an ATM instead of driving to her bank. When Mariah utilizes this ATM that represents her home bank, what kind of interaction has taken place?
Human customer, Machine service provider
Which of these types of interactions is the only one where human interaction is absolutely necessary?
Traditional Interactions
The acronym LAURA helps us to analyze and adjust when:
a product or service has disappointed the consumer
What is the definition of retailing?
Selling goods and services to consumers for their own use
What is the difference between retailing and wholesaling?
retailers sell to individuals for end use; wholesalers sell to companies for resale/company use
What is the difference between merchant and agent wholesalers?
merchants take ownership to a product; agents act as intermediaries
Why do retailers exist?
They add value by adjusting discrepancies between the needs of consumers and sellers
Why is breaking bulk important?
sellers want to produce in bulk, consumers want to buy in small amounts
What is the reason for so many levels existing between the producer and end-user?
each level adds some kind of value to the end user
When it comes to compensation in a channel of distribution, _______ plays the most important role.
power
Brands marketed as more luxury options (such as Lexus) are likely to utilize ______ distribution intensity.
selective
Which of these is not a form of a sharing economy?
P2B
Air BnB uses a model where the business integrates people who own homes into the market where consumers express demand. This is most accurately described as which type of sharing economy?
Business + Person
What has been a problem of implementing Peer to Peer sharing?
finding platforms where it is legal and available
Of the sharing economy models, which is the most similar to traditional business models?
Business to Person
What is the largest inhibitor to the growth of sharing economies?
trust
A platform that receives renting fees receives those fees from the _______ and shares those fees with the _______.
seeker; owner
Which of these is not a party that shares and exchanges value in a sharing economy?
Recommender
Which of these is not a potential benefit of increasing a sharing economy?
realize potential market gains
What jobs are the most likely to be automated?
those with a great deal of routine
The degree to which an individual possesses an enduring belief in the importance of customer satisfaction is defined as:
customer orientation
Some people innately have more of a customer orientation than others.
True
It is often most important for which kind of employee to have a strong customer orientation?
Front line
When a supervisor doesn't emphasize the importance of customer satisfaction, employees with higher customer orientation:
perform fewer customer service behaviors than they might have
When employees with high customer orientation are embedded in an organization that emphasizes (and benefits from) customer satisfaction, profits are likely to:
increase
In most circumstances, higher levels of customer orientation lead to all of the following except:
Job turnover
Employees with high customer orientation will thrive in what kind of job?
High customer interaction
What are inside sales?
a type of sales in which interactions are initiated by the buyer
A type of selling in which the organization is represented by multiple people, which might include a salesperson, a technical support specialist, or others, is defined as:
Team Selling
What is a key account?
a very large customer that provides a significant portion of revenues
A form of personal selling that focuses on making an immediate sale with little or no concern for customer satisfaction or relationship development is defined as:
Transactional selling
Transactional selling focuses on the customer relationship.
False
A form of personal selling that involves securing, developing, and maintaining long-term relationships with profitable customers is defined as:
relationship selling
Which of these is not a step in the personal selling process?
sell
When does initial contact with the potential consumer occur?
approach
What happens in the Presentation stage of the personal selling process?
determine prospect needs and present benefits; handle objections
SPIN selling is about asking questions of potential customers.
True
What is the point of SPIN selling?
position your product or service as the solution to the customer's problems
The most successful salespeople focus on the beginning aspects of the SPIN method (e.g. Situational and Problem questions).
False
What is the definition of Price?
what is exchanged for the product, service, or idea
is not about what we put into our product, it's what our customers get out of it.Price
Value
The "value created" of a product or service is determined from the perspective of the:
customer
Small changes in price do not have a very large impact on bottom line profits.
False
Which of these does not happen in a "smart industry"?
companies fight with price only
What is the first step in strategic pricing?
Knowing how your industry behaves
What is the key difference between cost-based pricing and value-based pricing?
where you start the process
Value-based pricing will always be more profitable than cost-based pricing.
True
What is price skimming?
setting a high price for a new product to skim maximum revenues
What is dynamic pricing?
variable rate for each customer
What is flat-rate pricing?
single rate per time period
Which of the following describes peak load or congestion pricing?
variable rate depending on time of day or week
You do not need to understand margin and markup if you are using value-based pricing.
False
What is the main difference between the equations for margin and mark-up?
Margin is (Price - Cost)/Price and Mark-up is (Price - Cost)/Cost
Mark-up can be greater than 100%
True
A grocer has purchased a truckload of frozen dinners for $3 each. The grocer operates on a margin of 30% for frozen food items. What is the retail price to the consumer?
$4.29
The competitive retail price for a stereo system is $300. Retail stores normally have a margin of 30% for such items. Wholesalers normally have a margin of 20% for such items. The manufacturer's price is unknown. What steps should be taken to determine the manufacturer's highest price?
Solve for Retail price, then Wholesale price, then Manufacturer price
What is the breakeven point?
where profits just cover costs
Assume that Netflix has introduced a new bundle service for their streaming services. Bundle 1 includes a base price of $9 to cover 25 hours of streaming for the month and variable price of $0.10 for every 30 minutes over that 25 hours. Bundle 2 includes no base price, but a variable price of $0.25 for every 30 minutes of streaming per month. When a consumer attempts to decide which bundle to use, what is he or she determining?
Breakeven Point
What is defined as responsiveness of demand to changes in price?
Price elasticity
A change in price in an elastic market is likely to show _______ change in demand when compared to a similar change in an inelastic market.
Greater
In the Transactional Model of Communication, who fulfills the role of the Sender?
Marketer
The message put in place by the Sender is always identical to the message received by the Receiver.
False
The Communications Triangle encompasses more than just promotional interactions.
True
The "company" in the Communications Triangle represents the:
Formal company management
What is defined as frontline interactions in the Communications Triangle?
Interactive Communication
What is defined as the communications between the company and its customers?
External promotion
What is the definition of Advertising?
A form of external promotion with customers, paid for by the seller
The immediate goal of all advertising is to make exchange happen.
False
The goal of "remind and reinforce" applies to advertisements aimed at:
current customers
Advertising is best thought of as a(n):
Investment
In advertising, a marketing professional should know both her _______ and her _______.
Message; audience
Which of these is not one of the Three C's in communication?
Committed
A company is looking to implement its new advertisement that is targeted specifically towards consumers 65 and older. Which communication channel would most effectively reach the intended audience?
TV commercials
Why is telling stories such an impactful way to advertise?
People are drawn into stories
Which aspect of the SUCCESS model is more common in the United States than in other countries?
Emotion
A nonprofit that provides education for underserved communities is looking to run a new promotion. The company is deciding to either provide several statistics or a single, personal story from a student relying on funds. Out of the following, which part of the SUCCESS model would the personal story best encompass?
Emotion
When the company first started, Southwest's message in advertisements and managerial actions clearly communicated its commitment to low prices. What is this the best example of?
Simplicity
Why is simplicity important for breaking through promotional clutter?
Your message is the clearest when it is simple
What is a sales promotion?
Short term external promotion tactic designed to influence immediate purchase
What is the goal of a sales promotion?
Convincing consumers to "act now"
What is the main difference between advertisements and sales promotions?
Goal: of long-term or immediate payoff
In its simplest form, a Price Promotions is known as a(n):
Sale
Black Friday is best described as an example of:
Price Promotion
What is the best example of a Frequent User Program?
Southwest credit card
It is easier to determine the effectiveness of sales promotions than advertisements.
True
Which of these is not an advantage of sales promotions?
Sales promotions have long-term effects
What is the definition of Public Relations?
Form of external promotion through channels perceived to be noncommercial
What is puffery?
The idea that most ads tell only the best-case scenario
Public Relations are generally believed more so than advertisements.
True
Companies who are recruiting new employees often ask to come to college campuses and speak in classes. What type of public relations tool is this most like?
Speaking engagements
In the Communications Triangle model, which type of interaction is modeled by a double-headed arrow?
Interactive promotion
Who is interacting in Interactive promotions?
Frontline employees and customers
What is personal selling designed to influence?
A purchase decision
Promotion is ultimately about making:
Effective exchanges between the seller and the customer
All promotional tools are equally effective in all promotional situations.
False
Which of these is not a goal of promotion?
Price Cuts
Can the order of the AIDA model be changed? Why or why not?
No, each step must be achieved before moving to the next
Which step of the Process of Consumption best lines up with the Desire aspect of Goals of Promotion?
Evaluation of alternatives
Which of these is not a goal covered by Public Relations Advertising?
Action
Which of the following media categories commands the biggest slice of advertising dollars today?
Broadcasting
Which of these is not an example of broadcast advertising?
Billboard advertisement
The advertising examples given in the lecture videos best demonstrate which aspects of the SUCCESs model for cutting through clutter?
Simple and Unexpected
A benefit of TV broadcast advertising is that:
Both visual and audio mediums are available
The Cadbury commercial in the video lecture is an example of how advertisements have the ability to improve a company's reputation.
True
Which of these is not an example of print media advertising?
Radio
Why has readership of most print media declined in recent years?
Many readers obtain information online
Print ads are no longer effective in today's world.
False
Compared to digital or broadcast advertising, print advertisements tend to lack:
Flexibillity
Marketers tend to spend _________ on out-of-home advertisements compared to other methods.
Less
Which of these is not an example of out-of-home advertising?
Online ad Videos
Which of these is not a reason for the increasing popularity of digital marketing?
Difficult to track effectiveness
Which of these is not a key category of digital promotion?
Video
Which of these is the best example of display advertising?
Banner advertisement
What is a main risk of using email promotions?
Consumers ignoring emails
What is the key aspect of the definition of social media?
The ability it gives users to interact with each other
Social media marketing, when compared to normal social media use, uses the platform
Strategically
Only Gen X and millennial demographics are represented on social media.
False
The social media landscape changes __________ and requires ___________ from marketers.
Quickly; flexibility
There is a trend towards ________ elements in social media
Visual
Which social media platform has the widest customer base?
Facebook
Only certain demographics can be reached using Facebook.
false
Which of these situations would Twitter be best for?
Live reporting
Pinterest is the only social media platform that is ________-looking.
Forward
Posts that have a(n) __________ element tend to do well on Instagram
Artistic
Which social medial site is best suited for business to business marketing?
LinkedIn
Which of these is an important characteristic of YouTube?
Video-based search engine
When determining which social media platform to use for marketing, what should marketing professionals consider?
How the platform fits with your product
When determining which social media platform to use for marketing, where should marketing professionals look?
Where the target segment is best represented
Which of these is the best strategy for determining the best social media platform to use for marketing?
Try new platforms and content to see what connects
With social media marketing, who are you representing?
Your brand
Companies on social media should remember to:
Interact with followers
What is Search Engine Optimization (SEO)?
The strategy to try and improve the firm's ranking on Google
Why do firms use SEO?
All companies want to have the #1 ranking on Google
It is common for consumers to go past the first page of their Google search.
False
Repetition of primary keywords is the only requirement for moving a firm up on Google's search engine rankings.
False
What is the point of on-site SEO?
Prove to Google that your content is relevant
What is the best way to have excellent off-site SEO?
Have high quality content
Experts say that off-site is ________ important when compared to on-site SEO.
more
Pay-per-click marketing is also known as:
Search marketing
Which of these is not a part of making a pay-per-click ad?
set the highest bid available
What is determined by the default bid aspect of setting up a pay-per-click ad?
How much the firm pays per click
What is a landing page?
A special page specifically for people who click on your ad
Which of these is not a characteristic of a good landing page?
Full company information
Online display advertising is exactly the same as pay-per-click
False
What is a main difference between online display advertising and pay-per-click?
Online display is visual; Pay-per-click is text
Google's display network is huge, with approximately ___________ monthly impressions (as of fall 2017).
One trillion
What is contextual targeting most similar to?
Keywords
Targeting based on "where people have been" is known as:
Remarketing
When will a firm's ad show up the most often?
The firm creates different ads for different sizes
Which of these is not a listed method of mobile marketing?
Online news articles
Standard webpage views are optimal for mobile access.
False
What is the number one way to market to mobile users?
Optimize webpage views through mobile sites
Which of these marketing methods is the most unique to mobile marketing?
Location-based
The companies who utilize mobile marketing to its fullest potential are using many platforms in addition to mobile.
True
Which is NOT a role of a specific supply chain?
Decrease accuracy
What are the two type of Supply Chains?
Direct and Indirect
What is the supply chain?
Organizations and activities involved with the flow of products from raw materials to the customer
Which is NOT a type of marketing intermediary?
manufacturer
What are the roles of the market intermediaries?
All of the above
Which market intermediary sells products for a commission?
Agents and Brokers
Which market intermediary works directly with the customer?
Retailers
What does the supply chain represent?
The steps it takes to get the product from the original manufacturer to the consumer
Which is not a function that distributors perform?
Creating Products
A grocery store is an example of what type of market intermediary?
Retailers
A real-estate company is an example of what market intermediary?
Agent/Broker
When a producer sells directly to a consumer this is an example of which type of supply chain structure?
Direct
An effective relationship in supply chain can be represented by vertical supply chains.
True
Which of the following is NOT part of a vertical marketing system?
Consumer
Nike is an example of which type of vertical marketing system?
Corporate
Which vertical marketing system is a formal agreement between the levels of distribution or production channel to coordinate the entire process?
Contractual
What is NOT something a company should consider when choosing a vertical marketing system?
Convenience
Pizza Hut is an example of what type of vertical marketing system?
Contractual
Which of these is not a type of vertical marketing system?
Which of these is not a type of vertical marketing system?
Which is NOT an important factor in Amazon's supply chain to have fast delivery?
Cost
What is an advantage to corporate VMS?
Control of all aspects of the system
Who owns the channel in Administered VMS?
No one
Which type of vertical marketing system has one member of the production/distribution chain that is super dominant?
Administered
What is the definition of the Marketing Environment?
The dynamic context within which firms operate
Which of these is the best example of Contractual VMS?
Franchising
What are the two key words in the definition of the Marketing Environment?
Dynamic; context
What is defined as groups and organizations that can exert a direct influence on the firm's ability to accomplish its goals?
Immediate Environment
Which of these is not an example of the Immediate Environment?
Technological Environment
What is defined as powerful societal forces that influence all entities in the immediate environment?
External Environment
The External Environment is a stable playing field for every fiscal year.
False
Exchanges can be made between the firm and both the Immediate and External Environment
False
Customers are always the group that requires the most attention from the firm.
False
Integris Hospital in Oklahoma City has forecasted a growing population in the surrounding area, but is also facing a significant nursing shortage. Which aspect of the Marketing Environment is Integris most likely to be focused on?
Employees
What is generally credited as the reason for Southwest Airlines' success over time?
All of these
Why is it acceptable for firms to focus greater efforts on employees or customers, or even change their focus over time?
Business strategy is about the entire set of exchanges of a firm
A firm should focus on creating a set of __________, ____________ exchanges with the environment
Sustainable; favorable
With which of the following actors in the Immediate Environment are marketers usually most concerned?
Customers
The Environmental Protection Agency was formed in 1970 and began to monitor the environmental impact of United States companies, forcing many to change some of their practices. Which exchange in the Immediate Environment is this an example of
Governmental bodies and the firm
In the 2000s, Microsoft came out with the first portable music player - the Zune. When Apple came out with the iPod, consumers viewed it as an improved product when compared to the Zune. From Microsoft's perspective, which actor in the Immediate Environment was most responsible for the change in their sales?
Competitors
In 2011, Japan was hit with significant natural disasters. Japan is home to many of the companies on which car manufacturers depend for parts. From these manufacturers' perspective, which actor in the Immediate Environment affected them the most?
Suppliers
The exchange between the firm and its employees consists of:
The employees' time and skills; the firm's money
Which of these is not an Intermediary in the Immediate Environment?
All of these are Intermediaries
The old CEO of Uber was fired by the board of directors of his company, and Uber therefore had a significant change in leadership of the firm. Which aspect of the Immediate Environment created this change?
Shareholders
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