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Marketing Ch. 9, 10, 11, 12

Terms in this set (56)

Which of the following would be characterized as a discrete transaction?
A restaurant running out of butter one night and sending someone to the local grocery store
Companies can threaten another supply chain member, it is called ___________ power.
coercive
Which of the following is NOT one of the many elements of an industrial supply chain?
Retailers
If a marketer develops a strong brand, it will be easier to use impersonal approaches such as online sales or catalogues.
True
Retailer ______________ is the ability of a retailer to attract consumers in a producer's target market or markets.
reach
Many companies that have been around for a few decades will observe how the way they interact with their own buyers and sellers has changed from adversarial, price focused transactions to a fundamentally different kind of system characterized by more trust, lower costs and more flexibility. This more modern approach is known as
relationship marketing
When producers wish to make their products easily obtainable and increase convenience, they select an ___________strategy.
intensive distribution
The level of availability for the product or service is referred to as
distribution intensity
Megan's firm is launching a new line of hair-care products which are not expensive, but a certainly higher quality than the less-expensive products dominating the market. What kind of distribution intensity should she select for these new products?
selective
A firm is producing luxury desk sets—letter openers, pencil cups, etc. They are beautifully made, and they are made of rare and expensive materials. When the firm is developing its Place strategies in the marketing mix, what kind of distribution intensity would the firm select for these products?
exclusive
While some stores urge you to "eliminate the middleman" in transactions, significant value can be lost when manufacturers move to more direct marketing channels.
true
Liz was observing how her company dealt with specific retailers. With some, she noticed threats were common and issues were often determined by the party with the most resources—one or the other firm was coerced into acting in some way. In others, the nature of the relationships, even in issues of power, were handled, and it rarely came down to force. The kind of power seen in the latter relationships is known as
reward power
Which of the following is NOT one of the potential sources of conflict in supply chains?
Which sales associates will oversee reordering and stocking issues
Which of the following is NOT one of the ways retailers help get products to the customers?
Retailers provide efficiency and effectiveness to keep products at or below the "manufacturer's suggested retail price."
Marketers are concerned with the concept of retail fit, trying to answer the question about which store would be best for customers. Which of the following is NOT one of the dimensions of retail fit?
Retailer sustainability
____________ are very large retail stores that specialize in selling large volumes of merchandise at low prices.
Mass merchandisers
The product life cycle curve can help marketers determine pricing. In general, as a product matures, the price will go down as
costs to make the product go down as it matures.
Positioning influences the way customers see value in a product or service, and while the price is of major concern to the marketer, price has much less influence than effective positioning for the customer.
False
For an exchange to take place, a marketer knows that _______
both the buyer and seller see value being created in the exchange.
How a price is presented can also influence customer price
perceptions
While marketers must pay attention to the prices charged by competitors and the expectations of customers, the effective way to attract customers at fair prices is to emphasis benefits and non-price elements.
true
One of the fundamental "building blocks" of pricing is an estimate or understanding of how many units can be sold in a given period—usually a year. This estimate is known as expected unit sales or
demand forecast
Taking into consideration how the price of one product might influence the perception and price of another product is called price
lining
When pricing existing products, the marketer must make three basic sets of decisions: the basis for setting the price, if the prices will change very much, and
how it relates to other products the company sells.
An approach services use to set prices according to changing market conditions is known as
dynamic pricing
Angie needed a new refrigerator after her old one stopped working and couldn't be repaired. At the appliance store, she ended getting a new refrigerator plus a new stove and dishwasher because the sales associate showed her that by buying all three, should could save money that she could save not buying any of the items separately. The store used what kind of adjustment to the base price?
bundling
Businesses in the U.S. often compete on price, and competition can be very tough beyond pricing. Competing on price is an accepted practice in the marketplace and under the law. What is the name of the practice that goes beyond fair competition to drive another business out of the market by dropping prices to an extremely low level with the intention of destroying another business?
Predatory pricing
Your reference price will become more accurate and reflect real prices when
you have experience related to the product.
Nevin has an electronics store with a focus on high-end audio and visual products. He knows he cannot compete with the "big box" stores to attract everyone, so he has focused on people who demand high quality in their electronics even though some can't easily afford it. He has already used rebates, especially those offered by the manufacturers. He doesn't want to lower his prices as a large part of his customer base can afford his prices. What other discounting option does Nevin have that makes sense for his business and won't undermine the base price?
Financing
Simon is reviewing the marketing department's budget and expenses, and some figures would not fit easily into fixed or variable costs categories. Paul gave him an easy way to distinguish between the two, which was to determine
if the cost can be assigned on a per unit basis, then it is a variable cost.
Which of the following is NOT one of the four primary factors that influence price?
analyst expectations
When a new product is introduced to a market and is priced high with the intention of eventually lowering the price as the market becomes more competitive, marketers are using a pricing strategy known as
skimming
Elastic demand characterizes discretionary items where a small change in the price of the items will have a noticeable effect on the number sold.
true
Auctions are successful because
customers have different perceived value for products.
The first step in setting a base price for a product is
set pricing objectives
If you go to a fancy steak house and see a hamburger on the menu for $1.19 or if you go to a fast food restaurant and see a hamburger on the menu for $24.00, you'd think something was not right. Marketers understand you are comparing those posted menu prices to your own
reference price
Which of the following statements concerning public relations is true?
It can be used as a promotional tool to build positive feelings about a brand.
The most important component of qualifying a potential buyer is
determining whether the prospect has a real need for the product.
A carefully scripted and practiced sales presentation describes which approach?
Canned sales presentation
Contest entries, website hits, and social media likes are examples of ____________
non-sales behavioral objectives.
Which form of promotion involves direct, two-way communication?
personal selling
Sampling is considered a _________
consumer sales promotion.
Why is it often difficult to estimate the financial returns from promotional expenditures?
Promotions often have a cumulative effect that's difficult to measure at a given point in time.
The process of transitioning from customer objections to closing the sale often involves
using trial closes
The most important determinant of a mobile promotion is
relevance
When is mobile direct marketing most effective?
When the marketer ties customer preferences to location and time.
Personal selling is primarily directed at which type of customers?
business
Which of the following statements is true regarding direct marketing response devices?
The response options should maximize customer convenience.
A paid, nonpersonal communication by a sponsor to an audience is
advertising
Why should competitive advertising be used carefully?
It can backfire if potential customers see the comparisons as unnecessary or unfair.
Which execution style category can be inexpensive to produce and has clear brand messaging, although it may struggle to keep audience attention?
straight sell
Which form of advertising is designed to build the general reputation of the organization and create goodwill toward the company and its brands?
institutional advertising
This model postulates that people must pass through cognitive and emotional states before taking an action.
the hierarchy of effects model
Which of the following does NOT explain public relations ?
Offering product differentiation for those who are not target customers
Maximizing exposure of the advertising message to the target audience while minimizing waste coverage is the definition of
media strategy
As frequency increases, ______________ decreases.
reach
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