BUSML 3150 Final

Acquisitions and new product development
What are the two ways a firm can obtain new​ products?

A. New product development and external research and development

B. New product development and existing product modification

C. Acquisitions and external research and development

D. Mergers and acquisitions

E. Acquisitions and new product development

Understand its​ consumers, markets, and​ competitors, and develop products that deliver superior value
To create successful new​ products, a company must​ _______.

A. understand its​ consumers, markets, and​ competitors, and develop products that deliver superior value

B. wait and see what new products its competitors offer

C. spend more on​ R&D than its competitors

D. cut costs to keep the price of new products low

E. avoid innovation and only improve​ existing, successful products

Generating new product ideas
What is the first step in the new product development​ process?

A. Consulting with​ R&D on the feasibility of the new product
B. Screening new product ideas
C. Generating new product ideas
D. Setting the budget
E. Building a prototype

Conducting a business analysis
Once management has decided on its product concept and marketing​ strategy, it can evaluate the business attractiveness of the​ proposal, which involves​ ___________.

A. building and testing a prototype
B. conducting concept testing
C. conducting a business analysis
D. introducing the new product to the market
E. conducting test marketing

Sales are slow and profits nonexistent
During the introductory stage of the product​ lifecycle, ______________.

A. sales rise quickly and profits are high
B. sales fall and profits decline
C. profits rise quickly and there is rapid market acceptance of the product
D. sales rise​ quickly, but profits are nonexistent
E. sales are slow and profits nonexistent

Maturity
Which stage of the product lifecycle normally lasts longer than the previous stages and poses strong challenges to marketing​ management?

A. Decline
B. Introduction
C. Maturity
D. Growth
E. Product development

The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.
Which of the following statements regarding socially responsible product decisions is​ correct?

A. The government may prevent companies from adding products through acquisitions if the effect threatens to lessen competition.

B. When companies drop​ products, they do not have any legal obligations to​ suppliers, dealers, and customers.

C. Consumers who have been injured by a product with a defective design cannot sue manufacturers or dealers.

D. Manufacturers are generally not concerned with product liability.

E. Manufacturers are not required to comply with laws regarding product quality and safety.

Because markets and consumers around the world differ​ widely, companies must usually adapt their product offerings in different world markets.
Which of the following statements regarding the marketing of international products and services is​ correct?

A. Markets and consumers all over the world are​ alike, so a company should always standardize international products.

B. The trend toward growth of global service companies will not continue and will actually decline.

C. Advertising is one service industry that has not needed to globalize its operations.

D. Because markets and consumers around the world differ​ widely, companies must usually adapt their product offerings in different world markets.

E. Markets and consumers around the world are now so similar that international product and services marketers no longer face special challenges when marketing in foreign countries.

Modified and improved products are considered new.
Which of the following statements concerning new products is​ correct?

A. Modified and improved products are considered new.

B. To be considered​ new, the product must be something consumers have not seen before.

C. Most new products succeed within two years of their introduction.

D. A modified product is not considered a new product.

E. Products that are merely improved in some way are not considered new.

sales would be slow and profits​ non-existent
When Dr. Lawncare developed his revolutionary new solar powered​ lawnmower, he knew that during the introductory stage of the product lifecycle​ ___________.

A. profits would rise quickly and there would be rapid market acceptance of his product.

B. sales would be low but profits would be high

C. sales would be slow and profits would level off or decline

D. sales would fall and profits would drop

E. sales would be slow and profits​ non-existent

Standardization decreases product​ design, manufacturing, and marketing costs.
Which of the following statements is true regarding standardizing products for international​ markets?

A. Standardization increases product​ design, manufacturing, and marketing costs.

B. Standardization helps a company develop a different image in different countries.

C. Markets and consumers all over the world are​ alike, so a company should always standardize international products.

D. Standardization decreases product​ design, manufacturing, and marketing costs.

E. Standardization ensures that products will succeed in foreign markets.

Maturity
Most products are at which stage of their product​ lifecycle?

A. Introduction
B. Product development
C. Maturity
D. Decline
E. Growth

Innovation can be very expensive and very risky.
Which of the following statements about new product development strategy is​ correct?

A. A new product will succeed as long as it is priced correctly.

B. Good advertising creates successful new products.

C. New products are usually successful because consumers like new things.

D. Innovation can be very expensive and very risky.

E. New products are not a major source of growth for companies.

Commercialization
Which of the following is NOT a product life cycle​ (PLC) stage?

A. Introduction
B. Growth
C. Decline
D. Commercialization
E. Maturity

Product stewards
To be more socially​ responsible, some companies are appointing​ _____________. Their job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.

A. product managers
B. product stewards
C. brand managers
D. attorneys
E. product champions

Crowdsourcing
Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its website that customers can suggest ideas for its upcoming product model. Contributors of​ short-listed ideas will be adequately rewarded. In this​ case, Goldtone is using​ ________ to generate new product ideas.

A. marketing strategy development
B. crowdsourcing
C. test marketing
D. business analysis
E. concept development

Idea screening
The Learning Institute recently conducted a brainstorming session that generated a large number of ideas for adding new products and services. Learning Institute managers will most likely use​ ________ next to arrive at a realistic number of ideas to adopt.

A. concept development
B. idea screening
C. business analysis
D. concept testing
E. crowdsourcing

Trade magazines
Which of the following is an external source of new product ideas for a​ company?

.
​A. R&D
B. Intrapreneurial programs
C. Innovation
D. Trade magazines
E. Hackathons

Concept development and testing
After ideas are​ screened, the next stage of the new product development process is​ _____.

A. idea generation
B. product development
C. commercialization
D. concept development and testing
E. test marketing

Modify the​ market, product offering and marketing mix.
Which of the following would be an appropriate strategy during the maturity stage of the product​ lifecycle?

A. Modify the​ market, product offering and marketing mix.

B. Produce basic versions of the product and focus on selling to those buyers who are the most ready to buy.

C. Shift some advertising from building product awareness to building product conviction and purchase.

D. Select products to​ maintain, harvest or drop.

E. Use promotional spending to inform consumers and get them to try the product.

Acquisition
Through​ _____ a company can obtain new products by buying a whole​ company, a​ patent, or a license to produce someone​ else’s product.

A. product life cycle strategies
B. new product development
C. acquisition
D. idea generation
E. internal​ R&D

Customer perceptions of the​ product’s value
The price​ ceiling, the maximum price a company can​ charge, is set by​ ________.

A. customer perceptions of the​ product’s value

B. revenue

C. the marketing mix

D. product costs

E. competitors

Customer​ value-based pricing,​ cost-based pricing, and​ competition-based pricing
What are the three major pricing strategies used by​ marketers?

A. Customer​ value-based pricing,​ cost-based pricing, and​ revenue-based pricing

B. Customer​ value-based pricing,​ cost-based pricing, and​ government-based pricing

C. Demand-based pricing,​ cost-based pricing, and​ competition-based pricing

D. Demand-based pricing,​ revenue-based pricing, and​ government-based pricing

E. Customer​ value-based pricing,​ cost-based pricing, and​ competition-based pricing

Pricing can create excitement for a brand
Which of the following statements is true regarding how price might play an important role in helping to accomplish company​ objectives?

A. Pricing can create excitement for a brand.

B. Pricing has no effect on the loyalty and support of resellers.

C. Pricing has no effect on customer loyalty.

D. Pricing one product has no effect on the sales of other products.

E. Pricing is not subject to government intervention.

The​ company’s overall marketing​ strategy, objectives, marketing​ mix, and other organizational considerations
Internal factors that affect pricing include​ ________.

A. the​ company’s overall marketing​ strategy, objectives, and demand

B. the​ company’s overall marketing​ strategy, objectives, and the nature of the market

C. the nature of the​ market, demand, and the economy

D. the​ company’s overall marketing​ strategy, objectives, marketing​ mix, and other organizational considerations.

E. the​ company’s overall marketing​ strategy, the nature of the​ market, and demand

Market-penetration pricing
A company has set a low price on a new product it introduced. It wants to maximize its market share and attract a large number of buyers quickly. Which new product pricing strategy should the company​ use?

A.​Captive-product pricing
B. Market-skimming pricing
C. Product bundle pricing
D. Market-penetration pricing
E. Product line pricing

Market-skimming
When a company sets a high price as the initial price of a new​ product, it is pursuing a​ ________ new product pricing​ strategy.

A. optional-product
B. ​captive-product
C. ​market-skimming
D. by-product
E. ​market-penetration

Product line​ pricing, optional-product​ pricing, captive-product​ pricing, by-product​ pricing, and product bundle pricing
What are the five product mix pricing​ situations?

A. Two-part pricing, fixed fee​ pricing, captive-product​ pricing, by-product​ pricing, and product bundle pricing

B. Product line​ pricing, optional-product​ pricing, captive-product​ pricing, by-product​ pricing, and discount pricing

C. Product line​ pricing, optional-product​ pricing, captive-product​ pricing, everyday low​ pricing, and service pricing

D. Product line​ pricing, optional-product​ pricing, captive-product​ pricing, by-product​ pricing, and product bundle pricing

E. Product line​ pricing, optional-product​ pricing, captive-product​ pricing, by-product​ pricing, and product mix pricing

Captive-product
Printer companies often charge a fairly low price for their ink jet printers​ (relative to​ costs) and a high price for replacement cartridges. These companies are using a strategy of​ ________ pricing.

A. ​captive-product
B. product line
C. ​by-product
D. ​two-part pricing
E. ​product-bundle

Segmented pricing
Many state colleges and universities charge one price for​ in-state students and a higher price for​ out-of-state students. Which price adjustment strategy are these schools​ using?

A. Dynamic pricing
B. Allowance pricing
C. Preferred pricing
D. Promotional pricing
E. Segmented pricing

Online buying
Dynamic pricing is when companies continually adjust prices to meet the characteristics and needs of individual customers and situations. Where is this method especially prevalent​ today?

A. Service industries
B. Online buying
C. Large retailers
D. Grocery stores
E. Franchises

Cutting prices in an industry loaded with excess capacity might lead to price wars
Which of the following statements is true regarding initiating price​ cuts?

A. Firms never cut​ prices; they only raise them.

B. When faced with falling​ demand, firms should not cut prices.

C. Cutting price has no effect on costs.

D. If faced with excess​ capacity, a firm should not cut its price.

E. Cutting prices in an industry loaded with excess capacity might lead to price wars.

Increase both price and quality
Which of the following is a potentially effective action a company could take in response to a​ competitor’s price​ cut?

A. Increase both price and quality

B. Reduce both price and quality

C. Raise price

D. Not assess the impact of the price cut

E. Decrease perceived value

Captive-product
Gillette charges a fairly low price for its razors​ (relative to​ costs) and a high price for razor blades. It is using a strategy of​ ___________ pricing.

A. ​by-product
B. product line
C. ​two-part pricing
D. ​product-bundle
E. captive-product

Wherever​ possible, the company should consider ways to meet higher costs or demand without raising prices
Which of the following statements is true regarding initiating price​ increases?

A. Wherever​ possible, the company should consider ways to meet higher costs or demand without raising prices.

B. Price increases do not impact profits.

C. Companies do not need to communicate reasons for price increases to customers.

D. Prices should be increased when there is a lack of demand.

E. Cost inflation is not a factor in price increases.

Optional-product
A car buyer can choose a base model at one​ price, or one with a premium sound and navigation system at a higher price. This is an example of​ _______ pricing.

A. ​by-product
B. product line
​C. product-bundle
D. ​captive-product
E. ​optional-product

Location-based pricing
Many state colleges and universities charge one price for​ in-state students and a higher price for​ out-of-state students. Which form of segmented pricing are these schools​ using?

A. promotional pricing
B. customer-segment pricing
C. time-based pricing
D. ​location-based pricing
E. product form pricing

Product-bundle
Bath​ & Body Works offers​ “three-fer” deals on its soaps and lotions​ (such as three antibacterial soaps for​ $10). This is an example of​ _______ pricing.

A. ​captive-product
B. ​product-bundle
​C. by-product
D. product line
E. ​two-part pricing

Target costing
​Geared2Beer, a craft beer​ brand, identifies a market segment that is willing to pay premium prices for its craft​ beer, and Geared2Beer managers select an ideal selling price. Managers then determine the costs to create craft beer that meets the ideal selling price. The​ company’s pricing approach is referred to as​ ________.

A. cost-plus pricing
B. target costing
C​. value-added pricing
D. EDLP
E. target return pricing

Market-skimming
When Apple Computer Company introduced its​ iPhone, its priced the new product at​ $599, considerably higher than either their iPod or competing cellular phones. Apple Computer was pursuing a​ ___________________ new product pricing​ strategy.

A. market-penetration
B. ​market-skimming
​C. optional-product
D. captive-product
E. ​by-product

Dynamic pricing
Companies that use​ ________ continually adjust prices to meet the characteristics and needs of individual customers and situations.

A. segmented pricing
B. cash rebates
C. psychological pricing
D. promotional pricing
E. dynamic pricing

Value-added pricing
​New, premium movie theaters offer features such as online reserved​ seating, high-backed leather executive chairs with armrests and​ footrests, the latest in digital​ sound, super-wide​ screens, and other amenities for which they charge a higher price. This is an example of which type of​ pricing?

A. EDLP pricing
B. High-low pricing
C. Value-added pricing
D. Cost-plus pricing
E. Breakeven pricing

Breakeven pricing
Which of the following is a​ cost-oriented pricing​ approach?

A. High-low pricing
B. Competition-based pricing
C. Value added pricing
D. Breakeven pricing
E. EDLP pricing

Win a large market share
One major objective associated with a​ market-penetration pricing strategy is to​ ________.

A. attract buyers willing to pay a higher price
B. avoid everyday low pricing
C. prevent customer dissatisfaction
D. skim off small but profitable market segments
E. win a large market share

Customer​ value-based pricing
​________ refers to setting price based on​ buyers’ perception of value rather than on the​ seller’s cost.

A. Cost-based pricing
B. Value-added pricing
C. Customer​ value-based pricing
D. Cost
E. ​Good-value pricing

Using marketing channel intermediaries means producers give up some control over how and to whom they sell their products
Which of the following statements is true regarding marketing channels and channel​ intermediaries?

A. Very few producers use marketing channel intermediaries.

B. Marketing channel decisions have no effect on other marketing decisions.

C. Distribution systems cannot be used to give a company a competitive advantage.

D. Distribution channel decisions involve only​ short-term commitments to other firms.

E. Using marketing channel intermediaries means producers give up some control over how and to whom they sell their products.

Assign functions to the channel members that can add the most value for the cost
When assigning functions to channel​ members, it is important for producers to​ ________.
A. assign functions to channel members who guarantee to lower the​ producers’ costs

B. assign functions to channel members who do not take risks

C. assign functions to the channel members that can add the most value for the cost

D. assign functions to firms they have worked with in the past

E. assign functions to channel members not used by competitors

Vertical marketing system
A​ ________ consists of​ producers, wholesalers, and retailers acting as a unified system.

A. horizontal marketing system

B. conventional marketing system

C. closed marketing system

D. multichannel marketing system

E. vertical marketing system

Channel members are dependent on each other for the overall success of the channel
Which of the following statements is true regarding channel​ organization?

A. Channel members should act alone in their own​ short-run best interests before considering the interests of other channel members.

B. Once a channel is organized and​ set, it rarely changes.

C. In a​ well-organized channel, conflicts rarely occur.

D. Channel organization is always based on formal interactions guided by strong organizational structures.

E. Channel members are dependent on each other for the overall success of the channel.

Analyzing consumer​ needs, setting channel​ objectives, identifying major channel​ alternatives, and evaluating the alternatives
What are the four steps to designing marketing channels in their correct​ order?

A. Setting channel​ objectives, analyzing consumer​ needs, identifying major channel​ alternatives, and evaluating the alternatives

B. Identifying the design of​ competitors’ channels, analyzing consumer​ needs, setting channel​ objectives, and evaluating channel alternatives

C. Identifying the design of​ competitors’ channels, setting channel​ objectives, analyzing consumer​ needs, and evaluating channel alternatives

D. Analyzing consumer​ needs, setting channel​ objectives, identifying major channel​ alternatives, and evaluating the alternatives.

E. Analyzing consumer​ needs, setting channel​ objectives, identifying the design of​ competitors’ channels, and evaluating the alternatives

1. Analyzing consumer​ needs
2. Setting channel​ objectives
3. Identifying major channel​ alternatives
4. Evaluating the alternatives
Place steps of designing marketing channels in the correct order

A. Identifying major channel​ alternatives
B. Setting channel​ objectives
C. Analyzing consumer​ needs
D. Evaluating the alternatives

Intensive, selective, and exclusive
When designing marketing​ channels, companies must determine the number of channel members to use at each level. The three strategies that are available to do this are​ ________ distribution.

A. intensive, selective, and targeted

B. intensive, selective, and exclusive

C. open, closed, and franchise

D. targeted, segmented, and global

E. ​intensive, exclusive, and global

Producers vary in their ability to attract qualified marketing intermediaries
Which of the following statements is true regarding the selection of qualified channel​ members?

A. To find and select qualified channel​ members, firms simply refer to a national online database.

B. Producers vary in their ability to attract qualified marketing intermediaries.

C. Selecting qualified channel members is largely controlled by government regulation.

D. Established brands have no trouble finding and keeping qualified channel members.

E. Firms select only qualified channel members in their immediate geographical area.

Partner relationship management
Most companies today see their intermediaries as​ first-line customers and focus on​ ________ to forge​ long-term relationships with channel members

A. legal contracts

B. government assistance

C. promotional incentives

D. partner relationship management

E. discounted prices

Warehousing, inventory​ management, transportation, and logistics information management
What are the four major functions of marketing​ logistics?

A. Warehousing, transportation,​ wholesaling, and retailing

B. ​Warehousing, inventory​ management, transportation, and logistics information management

C. Warehousing, inventory​ management, shipping, and receiving

D. Warehousing, inventory​ management, transportation, and retailing

E. ​Forecasting, order​ processing, transportation, and inventory management

Marketing logistics involve inbound​ logistics, outbound​ logistics, and reverse logistics
Which of the following statements regarding marketing logistics is​ true?

A. Marketing logistics have no effect on the environment and a​ firm’s environmental sustainability efforts.

B. Companies today are placing less emphasis on marketing logistics.

C. Marketing logistics are not involved with the physical distribution of goods.

D. Marketing logistics involve inbound​ logistics, outbound​ logistics, and reverse logistics.

E. Marketing logistics involve outbound movement of products.

Conventional distribution channel
​A(n) _____ is made up of one or more independent​ producers, wholesalers,​ retailers, and consumers.

A. corporate vertical marketing system
B. administered vertical marketing system
C. conventional distribution channel
D. channel level
E. franchise

Value delivery network
​A(n) _______ is made up of the​ company, suppliers,​ distributors, and,​ ultimately, customers who​ “partner” with each other to improve the performance of the entire system.

A. marketing channel
B. supply chain
C. contact
D. channel level
E. value delivery network

Channel level
​A(n)_______ is a layer of intermediaries that performs some work in bringing the product and its ownership closer to find the final buyer.

A. marketing channel
B. value delivery network
C. supply chain
D. contact
E. channel level

Partner relationship management
Companies now use​ ________ and supply chain management software to help​ recruit, train,​ organize, manage,​ motivate, and evaluate relationships with channel partners.

A. customer relationship management
B. channel management
C. distribution
D. logistics
E. partner relationship management

Partner relationship management
Companies today see channel members as​ first-line customers and practice strong​ ________.

A. B2B selling
B. partner relationship management
C. trade promotions
D. consumer advertising
E. discount pricing

Reverse logistics
​_______ involves​ reusing, recycling,​ refurbishing, or disposing of​ broken, unwanted, or excess products returned by consumers or resellers.

A. Inventory management
B. Reverse logistics
C. Outbound logistics
D. Warehousing
E. Inbound logistics

Administered VMS
Large retailers like Walmart have enormous channel control due to their size and power. Which type of channel arrangement does this​ represent?

A. Franchise
B. Contractual VMS
C. Corporate VMS
D. Conventional distribution channel
E. Administered VMS

Suppliers
Which channel partners in a​ company’s supply chain are upstream from a manufacturer or​ producer?

A. Business distributors
B. Customers
C. Wholesalers
D. Retailers
E. Suppliers.

Targeted levels of customer service
When setting channel​ objectives, companies should state the objectives in terms of​ ______.

A. ​competitor’s objectives
B. expected profitability
C. the length of the channel
D. targeted levels of customer service
E. exclusive distribution arrangements

It may or may not be legal
Full-line forcing is a practice whereby a producer agrees to sell a brand to a dealer only if the dealer agrees to sell some or all of the rest of its line. Which of the following statements is true regarding​ full-line forcing?

A. It is always illegal.
B. It is only illegal in Europe.
C. It is only legal in New​ York, California and Texas.
D. It is always legal.
E. It may or may not be legal.

Corporate VMS
Sherwin-Williams sells its paint and other branded products exclusively through​ company-owned retail stores.​ Sherwin-Williams has established​ a(n) _________.

A. contractual VMS
B. vertical marketing system
C. corporate VMS
D. conventional distribution channel
E. administered VMS

Analyzing consumer needs
What is the first step in marketing channel​ design?

A. Identifying the types of intermediaries to use.
B. Identifying the number of intermediaries to use.
C. Setting channel objectives.
D. Evaluating major channel alternatives.
E. Analyzing consumer needs

Intensive
Producers of convenience products typically use​ ______ distribution.

A. intensive
B. franchise
C. direct
D. exclusive
E. selective

Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations
Which of the following describes a​ just-in-time logistics​ system?

A. Just-in-time logistic systems eliminate the need for forecasting.

B. Just-in-time logistics systems allow producers and retailers to carry large amounts of inventory.

C. ​Just-in-time logistics systems allow producers and retailers to carry small inventories to last for only a few days of operations.

​D. Just-in-time logistics systems greatly increase​ inventory-carrying and​ inventory-handling costs.

E. Just-in-time logistics systems ensure that new stock arrives at least one week before it is needed.

Warehousing, inventory​ management, transportation, logistics information management
What are the four major functions of​ logistics?

​A. Warehousing, inventory​ management, transportation, logistics information management

​B. Warehousing, inventory​ management, transportation, retailing

C. Retailing, inventory​ management, transportation, and logistics information management

D. Inventory​ management, transportation,​ shipping, warehousing

E. Warehousing, inventory​ management, retailing, logistics information management

The amount of service they​ offer, the breadth and depth of their product​ lines, the relative prices they​ charge, and how they are organized
What are the four characteristics used to classify​ retailers?

A. The amount of service they​ offer, the breadth and depth of their product​ lines, the relative prices they​ charge, and how they are organized

B. The amount of service they​ offer, the relative prices they​ charge, the target​ customers, and the size of the store

C. The breadth and depth of their product​ lines, the relative prices they​ charge, the location of the​ store, and the size of the store

D. The location of the​ store, the relative prices they​ charge, the target​ customers, and the size of the store

E. The amount of service they​ offer, the breadth and depth of their product​ lines, the relative prices they​ charge, and the size of the store

Creating a seamless​ cross-channel buying experience that integrates​ in-store, online, and mobile shopping
What is​ omni-channel retailing?

A. Selling products online

B. Setting up franchises in different locations

C. Allowing one supplier to sell to multiple retailers

D. Creating a seamless​ cross-channel buying experience that integrates​ in-store, online, and mobile shopping

E. Developing close partnerships between wholesalers and retailers

Retailers face three major marketing​ decisions: segmentation and​ targeting, store differentiation and​ positioning, and the retail marketing mix
Which of the following statements about retailer marketing decisions is​ correct?

A. Retailers face three major marketing​ decisions: segmentation and​ targeting, store differentiation and​ positioning, and the retail marketing mix.

B. Store location is not an important retail decision.

C. Retailers do not have to segment and target their markets.

D. Stores do not need to differentiate and position themselves.

E. Retailers cannot differentiate themselves on their service mix.

Product​ assortment, services​ mix, and store atmosphere
Retailers must decide on which three major product​ variables?

A. Product​ assortment, services​ mix, and store atmosphere

B. Product​ assortment, store​ atmosphere, and price

C. Product​ assortment, services​ mix, and price

D. Product​ assortment, price, and location

E. Product​ assortment, services​ mix, and location

Online buying is growing at a much brisker pace than retail buying as a whole
Which of the following statements about major retail trends is​ true?

A. The lifecycle of new retail forms is increasing.

B. Online buying is growing at a much brisker pace than retail buying as a whole

C. The green movement has not yet affected retailing.

D. The global expansion of major retailers into other countries has slowed down.

E. Technology has had little impact on retailing

Merchant​ wholesalers, brokers and​ agents, and​ manufacturers’ and​ retailers’ branches and offices
The three major groups of wholesalers are​ ________.

A. merchant​ wholesalers, full-service​ wholesalers, and limited service wholesalers

B. merchant​ wholesalers, brokers and​ agents, and​ manufacturers’ and​ retailers’ branches and offices

C. merchant​ wholesalers, brokers and​ agents, and​ full-service wholesalers

D. merchant​ wholesalers, wholesale​ clubs, and big box stores

E. merchant​ wholesalers, brokers and​ agents, and wholesale clubs

Wholesalers must make decisions regarding their marketing mix
Which of the following statements about wholesaling is​ true?

A. Wholesalers do not need to segment their markets.
B.Wholesalers do not need to differentiate themselves.
C. Wholesalers do not make positioning decisions.
D. Wholesalers do not need to define a target market.
E. Wholesalers must make decisions regarding their marketing mix.

Merchant wholesalers
​___________ are the largest single group of​ wholesalers, accounting for roughly 50 percent of all wholesaling.

A. Merchant wholesalers
B. Agents
C. ​Manufacturers’ representatives
D. ​Manufacturers’ agents
E. Brokers

Showrooming
The practice of coming into retail stores to check out merchandise and prices but making purchases online using a computer or mobile device is called​ _______.

A. experiential retailing
B. showrooming
C. ​off-price retailing
D. shopper retailing
E. mobile retailing

Differentiate the retailer while matching target​ shoppers’ expectations
What is the overall goal when retailers choose their product​ assortment?

A. Differentiate the retailer while matching target​ shoppers’ expectations
B. Offer as many products as they can fit on the shelves.
C. Offer products that will appeal to as many segments as possible.
D. Only choose products that will maximize profits.
E. Offer the same products as their competitors.

Tighter consumer spending
One retail trend resulting from economic conditions is​ ________.

A. green retailing
B. the rise of megaretailers
C. the growth of social media retailing
D. tighter consumer spending
E. ​pop-up stores

Green
By practicing​ ______ retailing,​ today’s retailers are increasingly adopting environmentally sustainable practices.

A. ​off-price
B. independent​ off-price
C. green
D. experiential
E. service

Retail convergence
Increasingly, different types of retailers now sell the same products at the same prices to the same consumers. This trend is called​ ___________.

A. retail convergence
B. retail blending
C. social media retailing
D. megaretailing
E. green retailing

Specialty stores
Which type of retailer carries a narrow product line with deep assortments within those​ lines, such as apparel stores, sporting goods stores, furniture stores, florists, and bookstores?

A. Superstores
B. Department stores
C. Convenience stores
D. Specialty stores
E. Supermarkets

Decide how they will differentiate and position themselves in the market
After segmenting and defining their target​ markets, what should retailers do​ next?

A. Decide on the product assortment.
B. Decide how they will differentiate and position themselves in the market
C. Decide on the level of service.
D. Decide on the location.
E. Decide on the store atmosphere

Shopper marketing
______ involves focusing the entire marketing process toward turning shoppers into buyers as they approach the point of sale.

A. Retailing
B. Warehousing
C. Shopper marketing
D. Showrooming
E. Internal marketing

Retailing
​________ refers to the activities involved in selling products or services directly to final consumers for their​ personal, nonbusiness use.

A. Shopper marketing
B. Retailing
C. Warehousing
D. Wholesaling
E. Manufacturing

Department store
​Macy’s carries several product lineslong dash—typically ​clothing, home​ furnishings, and household goodslong dash—with each line operating as a separate department managed by specialist buyers or merchandisers.​ Macy’s is best described as​ a(n) ________.

A. superstore
B. discount store
C. ​off-price retailer
D. specialty store
E. department store

Product and service​ assortment, retail​ prices, promotion, and location
The retail marketing mix consists of which of the​ following?

A. Product and service​ assortment, retail​ prices, promotion, and retail segmentation

B. Product and service​ assortment, retail​ prices, promotion and store differentiation.

C. Product and service​ assortment, retail​ prices, promotion, and location

D. Product and service​ assortment, retail​ prices, promotion, and retail targeting

E. Product and service​ assortment, retail​ prices, promotion, and store positioning

Advertising, public​ relations, personal​ selling, sales​ promotion, and direct and digital marketing
What are the five promotion mix tools used by marketers to communicate customer​ value?

A. Advertising, public​ relations, personal​ selling, sales​ promotion, and direct and digital marketing

B. Television​ advertising, radio​ advertising, online​ advertising, social media​ advertising, and outdoor advertising

C. Advertising, business to business​ selling, personal​ selling, sales​ promotion, and direct and digital marketing

D. Advertising, public​ relations, personal​ selling, sales​ promotion, and telemarketing

E. Product, price,​ place, promotion, and advertising

Public relations includes press​ releases, sponsorships,​ events, and Web pages
Which of the following statements is true regarding the promotion​ mix?

A. Public relations includes press​ releases, sponsorships,​ events, and Web pages

B. Direct and digital marketing cannot be used to target individual consumers.

C. Sales promotions are​ long-term incentives to encourage the purchase or sale of a product or service.

D. Personal selling is not used to engage customers.

E. Advertising is a personal form of marketing communication.

Clear, consistent, and compelling
Integrated marketing communications must deliver company and brand messages that are​ ________.

A. ​clear, consistent, and compelling
​B. clear, compelling, and controversial
C. relevant, humorous, and exciting
D. unique, current, and consistent
E. ​informative, persuasive, and distinct

New media formats have allowed marketers to reach smaller communities of consumers in more engaging ways
Which of the following statements is correct regarding marketing communications​ today?

A. New media formats have allowed marketers to reach smaller communities of consumers in more engaging ways

B. Digital technologies have not yet had an impact on marketing communications.
C. Television advertising is growing rapidly.

D. Marketers are shifting toward mass marketing communication strategies.

E. Consumers have changed very little in the past fifty years.

Setting advertising​ objectives, setting the advertising​ budget, developing advertising​ strategy, and evaluating advertising effectiveness
What are the four important decisions made when developing an advertising​ program? List them in order.

A. Setting advertising​ objectives, setting the advertising​ budget, developing advertising​ strategy, and evaluating advertising effectiveness

B. Developing message​ strategy, developing message​ execution, selecting​ media, and determining media timing

C. Setting the advertising​ budget, setting advertising​ objectives, developing advertising​ strategy, and evaluating advertising effectiveness

D. Setting advertising​ objectives, setting the advertising​ budget, developing message​ strategy, and determining media timing

E. Setting advertising​ objectives, setting the advertising​ budget, determining the impact on sales and​ profits, and determining the return on investment

Organizing the advertising​ function; adaptation to international markets
In developing advertising​ strategies, marketers must make decisions regarding​ ___________________.

A. organizing the advertising​ function; adaptation to international markets
B. objectives and media
C. budget and message
D. budget and audience
E. audience and media

Public relations
​________ is used by companies to build good relations with​ consumers, investors, the​ media, and their communities.

A. Advertising
B. Public relations
C. Personal selling
D. Telemarketing
E. Sales promotions

The lines between advertising and public relations are becoming more blurred
Which of the following statements about public relations is​ correct?

A. Public relations is not used to engage consumers.

B. It is difficult to integrate public relations into social media.

C. The lines between advertising and public relations are becoming more blurred.

D. Public relations is used only to promote products.

E. The impact of public relations on public awareness comes at a much higher cost than advertising.

Advertising
In the promotion​ mix, ________ refers to any paid form of nonpersonal presentation and promotion of​ ideas, goods, or services by an identified sponsor.

A. advertising
B. sales promotion
C. personal selling
D. public relations
E. crowdsourcing

Consumers tend to view advertised products as more legitimate
Which of the following statements is correct regarding the use of advertising as a promotional​ tool?

A. Advertising allows marketers to communicate with buyers in a personal way.

B. Advertising can reach masses of people only if they are geographically concentrated.

C. The cost per exposure of advertising is high.

D. Advertising reaches many people slowly.

E. Consumers tend to view advertised products as more legitimate

Sales promotion
​________ is a​ short-term incentive to encourage the purchase or sale of a product or service.

A. Sales promotion
B. Personal selling
C. Public relations
D. Direct and digital marketing
E. Advertising

Public relations
Specific promotional tools used in​ _______ include press​ releases, sponsorships,​ events, and web pages.

A. public relations
B. advertising
C. personal selling
D. direct and digital marketing
E. sales promotion

Reminder
________ advertising is utilized most often by​ mature, well-known brands.

A. Comparative
B. Informative
C. Attack
D. Reminder
E. Persuasive

Informative
Which advertising objective is used heavily when introducing a new product​ category?

A. Persuasive
B. Reminder
C. Informative
D. Attack
E. Comparative

Persuasive
Which advertising objective is best suited to building selective​ demand?

A. Informative
B. Persuasive
C. Attack
D. Reminder
E. Humorous

To deliver​ clear, consistent, and compelling messages about the organization and its brands
What is the goal of integrated marketing​ communications?

A. To lower overall marketing expenditures

B. To integrate communications via online and mobile technologies

C. To maximize return on investment

D. To have different media carry different messages about a brand

E. To deliver​ clear, consistent, and compelling messages about the organization and its brands

Direct marketing
Which promotional tool is best suited to deliver a personalized and immediate message to a specific customer or customer​ community?

A. Public relations
B. Sales promotion
C. Personal selling
D. Advertising
E. Direct marketing

Direct and digital marketing
Which promotional tool engages directly with carefully targeted individual consumers and customer communities to both obtain an immediate response and build lasting customer​ relationships?

A. Sales promotion
B. Personal selling
C. Direct and digital marketing
D. Public relations
E. Advertising

Development
Working with donors or members of nonprofit organizations to gain financial or volunteer support represents which public relations​ function?

A. Investor relations
B. Lobbying
C. Development
D. Press relations
E. Public affairs

The dominance of​ television, magazines, newspapers and other traditional mass media is declining
Which of the following statements regarding the changing communications landscape is​ correct?

A. In terms of​ communication, today’s consumers are less empowered.

B. The digital age has had little impact on marketing communications.

C. The dominance of​ television, magazines, newspapers and other traditional mass media is declining

D. Marketers today are shifting their efforts to mass marketing.

E. More than​ ever, consumers are relying on marketers for information.

Public affairs
The public relations function of​ _______ is used to build and maintain national or local community relationships.

A. lobbying
B. press relations
C. development
D. public affairs
E. investor relations

To be​ meaningful, to be​ believable, and to be distinctive
Advertising appeals should have three characteristics. These characteristics​ are:

A. to be​ meaningful, to be​ believable, and to be distinctive

B. to be​ meaningful, to be​ believable, and to be humorous

C. to be​ meaningful, to be​ distinctive, and to use scientific evidence

D. to be​ believable, to be distinctive and to be consumer generated

E. to be​ meaningful, to be​ believable, and to use scientific evidence

Interpersonal
Personal selling can be very effective in complex selling situations because it involves​ ________ interactions and engagement between salespeople and individual customers.

A. profitable
B. ​non-personal
C. competitive
D. informal
E. interpersonal

Many customers are unable to distinguish the salesperson from the company
Which of the following statements about personal selling is​ correct?

A. Salespeople​ sell; they do not have a role in creating value for the customer.

B. The role of personal selling is very consistent from company to company.

C. Many customers are unable to distinguish the salesperson from the company.

D. Personal selling is a fairly new profession.

E. The sales force should work separately from other marketing functions.

Designing sales force strategy and​ structure, recruiting and selecting​ salespeople, training​ salespeople, compensating​ salespeople, supervising​ salespeople, and evaluating salespeople
Which of the following lists the six major sales force management decision steps in their correct​ order?

A. Designing sales force strategy and​ structure, recruiting and selecting​ salespeople, training​ salespeople, supervising​ salespeople, evaluating​ salespeople, and compensating salespeople

B. Designing sales force strategy and​ structure, recruiting and selecting​ salespeople, training​ salespeople, compensating​ salespeople, supervising​ salespeople, and evaluating salespeople

C. Evaluating​ salespeople, designing sales force strategy and​ structure, recruiting and selecting​ salespeople, training​ salespeople, compensating​ salespeople, and supervising salespeople

D. Designing sales force strategy and​ structure, recruiting and selecting​ salespeople, training​ salespeople, evaluating​ salespeople, compensating​ salespeople, and supervising salespeople

E. Recruiting and selecting​ salespeople, training​ salespeople, designing sales force strategy and​ structure, evaluating​ salespeople, compensating​ salespeople, and supervising salespeople

Territorial, product,​ customer, and complex
What are the four sales force structures a company can​ use?

A. ​Territorial, international,​ product, and service
B. ​Inside, outside,​ individual, and team based
C. ​Geographic, territorial,​ product, and customer
D. ​Simple, complex,​ inside, and outside
E. ​Territorial, product,​ customer, and complex

Prospecting and qualifying
What is the first step in the personal selling​ process?

A. Handling objections
B. Approach
C. Prospecting and qualifying
D. Preapproach
E. Presentation and demonstration

Transactional; relationship
Closing a sale with a particular customer is a​ short-term ________​ orientation, but the selling process must also take a​ ________ orientation and look at the long term.

A. ​relationship; transactional
B. ​profit; relationship
C. ​transactional; profit
D. ​company; relationship
E. ​transactional; relationship

In the current​ economy, consumers have become more deal oriented
Which of the following statements regarding sales promotions is​ correct?

A. Sales promotions are offered only to consumers

B. In the current​ economy, consumers have become more deal oriented

C. The use of sales promotions has declined in recent years

D. Sales promotions offer buyers​ long-term incentives to purchase a good or service

E. Sales promotions are not used by​ not-for-profit organizations

Rebates, coupons, price​ packs, and samples
Promotional tools offered to consumers include​ ________.

A. ​coupons, rebates,​ off-list discounts, and price packs
B. ​coupons, sales​ contests, samples, and price packs
C. ​rebates, coupons,​ samples, and push money
D. trade​ shows, coupons,​ samples, and push money
E. ​rebates, coupons, price​ packs, and samples

Coordinating marketing and sales can be improved by increasing communication between the two groups
Which of the following statements about coordinating marketing and sales is​ correct?

A. Marketing and sales do not require coordination.

B. Coordinating marketing and sales has little effect on customer relations.

C. The sales force only needs to coordinate its efforts with marketing planners.

D. Coordination between marketing and sales is not necessary because companies today see them as the same function.

E. Coordinating marketing and sales can be improved by increasing communication between the two groups.

Handle objections
After the presentation and demonstration step in the sales​ process, a salesperson should next be prepared to​ _______.

A. handle objections
B. immediately close the sale
C. follow up with the customer
D. prospect the customer
E. approach qualified customers

Product
GE Healthcare employs different sales forces for diagnostic​ imaging, life​ sciences, and integrated IT products and services. GE Healthcare has adopted​ a(n) ______ sales force structure.

A. complex
B. customer
C. product
D. territorial
E. market

Designing sales force strategy and structure
What is the first decision made in sales force​ management?

A. Evaluating salespeople.
B. Recruiting and selecting salespeople.
C. Designing sales force strategy and structure.
D. Compensating salespeople.
E. Training salespeople.

1. Designing sales force strategy and structure
2. Recruiting and selecting salespeople
3. Training salespeople
4. Compensating salespeople
5. Supervising salespeople
6. Evaluating salespeople
Place the steps in sales force management in order

A. Compensating salespeople
B. Evaluating salespeople
C. Supervising salespeople
D. Training salespeople
E. Designing sales force strategy and structure
F. Recruiting and selecting salespeople

Territorial
Justin, Inc., a​ U.S.-based watch​ manufacturer, sells its products in​ China, Russia,​ France, and India. To manage​ sales, Justin appoints a number of sales representatives to each location. Justin has adopted a​ ________ sales force structure.

A. product
B. customer
C. complex
D. market
E. territorial

Business
​________ promotions are used to generate business​ leads, stimulate​ purchases, reward​ customers, and motivate salespeople.

A. Sales force
B. Clutter
C. Trade
D. Business
E. Consumer

The best salespeople are the ones who work closely with customers for mutual gain
Which of the following statements is true regarding​ salespeople?

A. Most salespeople lack common sense and social skills.

B. Salespeople must be fast talkers.

C. Salespeople do not play a role in solving customer problems.

D. The best salespeople are the ones who work closely with customers for mutual gain.

E. Salespeople are not well educated.

Approach
At which step in the personal selling process does a salesperson meet the customer for the first​ time?

A. Preapproach
B. Qualifying
C. Prospecting
D. Presentation
E. Approach

A fixed​ amount, a variable​ amount, expenses, and fringe benefits
What are the four elements of a compensation plan for​ salespeople?

A. A fixed​ amount, a variable​ amount, expenses, and commission

B. A fixed​ amount, a variable​ amount, expenses and salary

C. A fixed​ amount, a variable​ amount, salary and commission

D. A fixed​ amount, a variable​ amount, stock​ ownership, and fringe benefits

E. A fixed​ amount, a variable​ amount, expenses, and fringe benefits

Getting retailers to carry new items and more​ inventory, buy​ ahead, or promote the​ company’s products and give them more shelf space
Which of the following are objectives of trade​ promotions?

A. Getting more sales force support for current or new products and getting salespeople to sign up new accounts

B. Generating business​ leads, stimulating​ purchases, rewarding​ customers, and motivating salespeople

C. Urging​ short-term customer buying and gaining customer loyalty

D. Boosting consumer brand involvement and​ short-term buying

E. Getting retailers to carry new items and more​ inventory, buy​ ahead, or promote the​ company’s products and give them more shelf space

Interpersonal
In complex selling​ situations, personal selling can be more effective than advertising because it is​ ______________.

A. less engaging than advertising
B. only used for face to face customer interactions
C. interpersonal
D. designed to reach large groups of consumers
E. nonpersonal

The salesperson tells the buyer a value story
Which of the following occurs during the presentation step in the personal selling​ process?

A. The salesperson tells the buyer a value story.
B. The salesperson meets the buyer for the first time.
C. The salesperson closes the deal.
D. The salesperson attempts to​ “razzle dazzle” the buyer.
E. The salesperson handles objections.

Follow-up
What is the final step in the​ seven-step personal selling​ process?

A. Prospecting
B. Follow-up
C. Qualifying
D. Presentation
E. Closing

Point-of-purchase
It’s time for the Super​ Bowl, and the​ end-of-the-aisle displays at the supermarket feature​ chips, dips, and soft drinks. What type of sales promotion tool is​ this?

A. Sponsorship
B. Premium
C. Sample
D. Point-of-purchase
E. Allowance

The World Trade Organization​ (WTO) helps promote trade between nations
Which of the following statements is true regarding the global marketing environment​ today?

A. The World Trade Organization​ (WTO) helps promote trade between nations.

B. Most nations are very similar in their​ political-legal environments.

C. Monetary regulation is no longer an important consideration in deciding whether to do business in a particular country.

D. A free trade zone is an area where products are traded free.

E. Since the world has become a global​ community, culture has become an unimportant consideration when conducting business in foreign countries.

Industrial structure and income distribution
What are the two economic factors that reflect the​ country’s attractiveness as a​ market?

A. Free trade zones and tariffs
B. Monetary regulations and income distribution
C. Attitudes toward international buying and monetary regulation
D. Industrial structure and political stability
E. Industrial structure and income distribution

Direct investment
Which market entry strategy has the greatest amount of​ commitment, risk,​ control, and profit​ potential?

A. Joint ownership
B. Direct exporting
C. Licensing
D. Direct investment
E. Indirect exporting

Standardized; adaptive
There are two extremes for global marketing strategies. At one extreme is​ ________ global​ marketing, and at the other is​ ________ global marketing.

A. ​cultural; uniform
B. ​direct; indirect
C. ​regional; local
D. standardized; uniform
E. ​standardized; adaptive

Adjust the marketing strategy and mix to each target market
What do marketers need to adjust when using an adaptive global marketing​ strategy?

A. Adjust the​ price, and marketing mix
B. Adjust the​ product, prices, and promotion
C. Adjust the product and price
D. Adjust the price and marketing strategy
E. Adjust the marketing strategy and mix to each target market

Establish an export department
When deciding on a global marketing​ organization, what do most companies do​ first?

A. Set up a joint venture.
B. Create an international division.
C. Hire international marketing consultants.
D. Become a global organization.
E. Establish an export department.

Geographical​ organizations, world product​ groups, or international subsidiaries
Which of the following are the three ways an international​ division’s operating units can be​ organized?

A. Geographical​ organizations, regional​ organizations, or global organizations

B. Local​ offices, foreign​ offices, or global offices

C. Geographical​ organizations, world product​ groups, or international subsidiaries

D. Local product​ groups, regional product​ groups, or world product groups

E. Export​ departments, sales​ departments, or marketing departments

Licensing
MyGym has more than 250 franchisees located in 31 countries. This approach to foreign market entry is best described as​ __________.

A. licensing
B. direct exporting
C. joint ownership
D. direct investment
E. management contracting

Product adaptation
When MyGym first introduced franchises in​ Mexico, the company quickly identified significant language and cultural differences. For​ instance, in the​ U.S., parents planning birthday parties were accustomed to​ two-hour parties. In​ Mexico, however, families were accustomed to​ four-hour parties. So Mexican MyGym franchisees offered four hours parties. What type of product approach did MyGym ultimately take in its Mexican​ market?

A. Product innovation
B. Product invention
C. Straight product extension
D. Standardization
E. Product adaptation

Product invention
MyGym is exploring the idea of offering music programs in adult fitness centers. In the context of international​ marketing, this type of product approach is consistent with the concept of​ __________.

A. product adaptation
B. product modification
C. straight product extension
D. product invention
E. new product development

A geographical organization
When MyGym set up its​ “Master Franchise” in​ Mexico, it staffed the franchise with local Mexican managers and staff who oversaw and coordinated operations in Mexico. What type of global marketing organization did MyGym​ use?

A. An international subsidiary
B. A global organization
C. A geographical organization
D. An export department
E. A world product group

Standardized global marketing
When MyGym management began evaluating overseas market​ expansion, it first looked at countries in which English was fairly common so that the company would not have to greatly modify its marketing programs. The marketing approach the company took in addressing its new global markets is best described as​ __________.

A. International brand extension
B. adapted global marketing
C. indirect exporting
D. standardized global marketing
E. international marketing

Communication adaptation
​________ is a global communication strategy of fully adapting advertising messages to local markets.

A. Product invention
B. Dual adaptation
C. Product adaptation
D. Communication adaptation
E. Straight extension

Geographical organizations
Many companies get involved in several international markets and ventures. They can be​ __________, with country managers who are responsible for​ salespeople, sales​ branches, distributors, and licensees in their respective countries.

A. export departments
B. world product groups
C. international divisions
D. international subsidiaries
E. geographical organizations

Subsistence
In​ a(n) ________​ economy, the vast majority of people engage in simple agriculture.

A. industrializing
B. raw material exporting
C. emerging
D. industrial
E. subsistence

Product adaptation
​________ involves changing the products to meet local​ requirements, conditions, or wants.

A. Communication adaption
B. Promotion
C. Product invention
D. Product adaptation
E. Price

Emerging
In​ a(n) __________economy, fast growth in manufacturing results in rapid overall economic growth.

A. raw materials exporting
B. subsistence
C. income distribution
D. industrial
E. emerging

Licensing
University Boutiques promotes its brand in new international markets by providing rights to local boutiques to use its patented designs and brand name. In this​ case, University​ Boutiques’ market-entering strategy is referred to as​ ________.

A. licensing
B. joint ownership
C. exporting
D. management contracting
E. contract manufacturing

Population size and growth
​_______ is(are) demographic characteristic indicators of market potential.

A. Monetary and trade regulations
B. Government bureaucracy
C. Political stability
D. Population size and growth
E. National priorities

Exporting
The simplest way to enter a foreign market is through​ ________.

A. importing
B. exporting
C. joint venturing
D. direct investment
E. tariffs

Barter
________ involve(s) the direct exchange of goods and services.

A. Emerging economies
B. A raw material exporting economy
C. A subsistence economy
D. Barter
E. Industrial economies

Industrial
_______ economies are major exporters of manufactured​ goods, services, and investment funds.

A. Subsistence
B. Industrial
C. Emerging
D. Income distribution
E. Raw material exporting

A quota
Countries can set​ ________, which is a limit on the amount of foreign imports that they will accept in certain product categories.

A. a tariff
B. a quota
C. duties
D. exchange controls
E. nontariff trade barriers

Barter
Venezuela produces oil in​ surplus, whereas Guyana produces rice in surplus and El Salvador produces coffee in surplus. These nations have little hard currency to pay for purchases from other countries and frequently exchange involves​ a(n) ________.

A. barter
B. fine
C. quota
D. tariff
E. excise

Adapts
​McDonald’s operates the same basic​ fast-food look,​ layout, and operating model in its restaurants around the world but​ ________ its menu and design to local tastes.

A. licenses
B. adapts
C. directs
D. imports
E. exports

Indirect exporting
​Twenty-Four7, a cosmetic firm located in the United​ States, markets its products in Asian and European countries through independent distributors. In this​ case, Twenty-Four7 has entered international markets through​ ________.

A. joint venturing
B. joint ownerships
C. direct investment
D. franchising
E. indirect exporting

Price escalation
________ is when a company adds the cost of​ transportation, tariffs, importer​ margin, wholesaler​ margin, and retailer margin to its factory price.

A. Product invention
B. Price escalation
C. Product adaptation
D. Straight extension
E. Communication adaptation

Customers, competitors, distributors, and suppliers are major sources of new product ideas
Which of the following statements is most likely true about the new product development process?

A. The first step in developing a new product involves determining any budgetary or distribution limitations.

B. Most firms discourage employees from contributing new product ideas because of legal concerns.

C. In most cases, concept testing is followed by concept development.

D. A product concept should be developed for each idea before it goes through idea screening.

E. Customers, competitors, distributors, and suppliers are major sources of new product ideas.

Cost-based
________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company’s effort and risk.

A. Competition-based
B. Value-added
C. Cost-based
D. Good-value
E. Demand-based

Abundon
Kelly Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research. These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain?

A. SoftStar
B. BlueHill
C. the consumer
D. Abundon
E. Kelly Pinker

Full-service retailer
Customers at Carat, a premium jewelry store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewelry are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________.

A. self-service retailer
B. off-price retailer
C. full-service retailer
D. supermarket
E. convenience store

Direct marketing
In a promotion mix, ________ involves personally connecting with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.

A. direct marketing
B. advertising
C. public relations
D. predictive analytical
E. indirect procurement

Presentation and demonstration
Howard Genks works as a sales representative for Med-Tex, a firm that manufactures hospital supplies. Recently, a prospective buyer walked into the Med-Tex store seeking beds for the children’s ward in his private clinic. Howard quickly showed the client the range of beds available that were designed specifically for children. In which of the following steps of the selling process was Howard?

A. prospecting
B. qualifying
C. follow-up
D. handling objections
E. presentation and demonstration

Communication adaptation
When adapting advertising messages, media may also need to be adapted internationally because media availability and regulations vary from country to country. This illustrates ________.

A. communication extension
B. product invention
C. communication adaptation
D. straight product extension
E. product adaptation

New product development
Original products, product improvements, product modifications, and new brands that the firm development through its own research and development (R&D) efforts
Idea generation
The systematic search for new product ideas is what step in the new product development

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization

Crowdsourcing
A company invites broad communities of people – customers, employees, independent scientists and researchers, and even the public at large – into the innovation process
Idea screening
Helps spot good ideas and drop poor ones as soon as possible is what step in the new product development

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization

Concept development and testing
An attractive idea must be developed into a product concept is what step in the new product development

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization

Commercialization
Last step in new product development
Product concept
A detailed version of the idea stated in meaningful consumer terms

A. Product concept
B. Product idea
C. Product image
D. Concept Testing

Product idea
An idea for a possible product that the company can see itself offering to the market

A. Product concept
B. Product idea
C. Product image
D. Concept Testing

Product image
The way consumers perceive an actual or potential product

A. Product concept
B. Product idea
C. Product image
D. Concept Testing

Concept Testing
Calls for testing new product concepts with groups of target consumers; concepts may be presented symbolically or physically

A. Product concept
B. Product idea
C. Product image
D. Concept Testing

Marketing strategy development

(consists of 3 parts: describes the target market, outlines the products’ planned price, describes the planned long-run sales)

Designing an initial marketing strategy for introducing this car to the market is what step in the new product development

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization

Business analysis
Involves a review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company’s objectives is what step in the new product development

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization

Product development
R&D or engineering develops the product concept into a physical product is what step in the new product development

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization

Test marketing
The stage at which the product and its proposed marketing program are introduced into realistic market settings; Gives the marketer experience with marketing a product before going to the great expense of full introduction is what step in the new product development

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization

Controlled test markets
A type of test market where new products and tactics are tested among controlled panels of shoppers and stores
Simulated test markets
A type of test market where new researchers measure consumer responses to new products and marketing tactics in laboratory stores or simulated online shopping environments
Commercialization
Introducing the new product into the market is what step in the new product development

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Test marketing
8. Commercialization

Internal sources (internal social networks and intrapreneurially programs), external sources (customers, competitors, distributors, and suppliers aka crowdsourcing)
Where do new product ideas come from in the idea generation phase of new product development?
True
T or F: In consumer goods, 70 to 90 percent of all new products fail within the first year
Absolute failure
When company cannot recover its costs to produce and market product
Relative failure
Product returns a profit but fails to achieve sales, profit, or market share goals.
1. Company can’t support fast growth
2. Unclear product benefits/positioning product to leverage a fad
3. Poor match between features and customer desires/bad brand extensions
4. The product defines a new category and requires substantial consumer education but doesn’t get it (aka poor promotion)
5. The product is revolutionary, but there’s no market for it/price is too high.
6. Overestimation of market size
7. No discernible benefits
8. Inferior products
Why do new products fail? (8 reasons)
1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline
Place the stages of product life cycle in order

A. Growth
B. Maturity
C. Product development
D. Decline
E. Introduction

Product development
First stage of product life cycle
Decline
Last stage of product life cycle
Product development
Begins when the company finds and develops a new product idea is what stage of the product life cycle
-Sales are zero

1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline

Introduction
A period of slow sales growth as the product is introduced in the market is what stage of the product life cycle
-Profits are nonexistent because of heavy expenses

1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline

Growth
A period of rapid market acceptance and increasing profits is what stage of the product life cycle

1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline

Maturity
A period of slowdown in sales growth because the product has achieved acceptance by most potential buyers is what stage of the product life cycle

1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline

Maturity
Most products spend the longest time in this stage of the product life cycle than in any other phase

1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline

Decline
A period when sales fall and profits drop is what stage of the product life cycle

1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline

Maintain (repositioning or reinvigorating brand), harvest (reducing various costs, hoping that sales hold up), drop (sell the product to another firm or simply liquidate it at salvage value)
Companies must identify products in the decline stage and decide whether to _____, ______, or ____them
False
T or F: All products follow all 5 stages of the product life cycle
Product class
Has the longest life cycles

A. product class
B. product form
C. brand

Product form
Have the standard PLC shape

A. product class
B. product form
C. brand

Brand
Life cycle can change quickly because of changing competitive attacks and responses

A. product class
B. product form
C. brand

Price
The amount of money charged for a product or service
-The sum of all the values that customers give up to gain the benefits of having or using a product or service
Price
Only value in the marketing mix that produces revenue
Value-based pricing
-Uses buyers’ perceptions of value as the key to pricing
-Price is considered along with all other marketing mix variables before the marketing program is set

A. Value-based pricing
B. Cost-based pricing
C. Competition-based pricing
D. Break-even pricing (target return pricing)

Good-value pricing (type of value-based pricing)
-Offering the right combination of quality and good service at a fair price
-Introducing less-expensive versions of established brand name products or new lower-price lines

A. Break-even pricing (target return pricing)
B. Good-value pricing
C. Value-added pricing
D. Competition-based pricing
E. Cost-plus pricing (markup pricing)

Value-added pricing (type of value-based pricing)
-Attach value-added features and services to differentiate their offers and thus support their higher prices
-Adding amenities and charging more rather than cutting services to maintain lower prices

A. Break-even pricing (target return pricing)
B. Good-value pricing
C. Value-added pricing
D. Competition-based pricing
E. Cost-plus pricing (markup pricing)

Cost-plus pricing (markup pricing)
Adding a standard markup to the cost of the product

A. Break-even pricing (target return pricing)
B. Good-value pricing
C. Value-added pricing
D. Competition-based pricing
E. Cost-plus pricing (markup pricing)

Break-even pricing
The firm tries to determine the price at which it will break even or make the target return it is seeking

A. Break-even pricing (target return pricing)
B. Good-value pricing
C. Value-added pricing
D. Competition-based pricing
E. Cost-plus pricing (markup pricing)

Competition-based pricing
-Involves setting prices based on competitors’ strategies, costs, prices, and market offerings
-Consumers base their judgments of a product’s value on the prices that competitors charge for similar products

A. Break-even pricing (target return pricing)
B. Good-value pricing
C. Value-added pricing
D. Competition-based pricing
E. Cost-plus pricing (markup pricing)

Demand curves
-The relationship between the price charged and the resulting demand level
-Shows the number of units the market will buy in a given time period at different prices that might be charged
Price elasticity of demand
How responsive demand will be to a change in price
Inelastic demand
If demand hardly changes with a small change in price
Elastic demand (If demand is elastic sellers will consider lowering their prices to produce more revenue)
If demand changes greatly with a change in price
Lowering
If demand is elastic sellers will consider _____ their prices to produce more revenue
Market-skimming pricing (price skimming)
Many companies that invent new products set high initial prices to skim revenues layer by layer from the market
Product line pricing
Setting prices across an entire product line is which product mix pricing strategy

A. Product line pricing
B. Optional-product pricing
C. Captive-product pricing
D. By-product pricing
E. Product bundle pricing

Optional-product pricing
Pricing optional or accessory products sold with the main product is which product mix pricing strategy

A. Product line pricing
B. Optional-product pricing
C. Captive-product pricing
D. By-product pricing
E. Product bundle pricing

Captive-product pricing
Pricing products that must be used with the main product (i.e., video games and video game consoles) is which product mix pricing strategy

A. Product line pricing
B. Optional-product pricing
C. Captive-product pricing
D. By-product pricing
E. Product bundle pricing

By-product pricing
Pricing low-value products that get rid of or make money on them is which product mix pricing strategy
-Company seeks a market for these products to help offset the costs of disposing of them and help make the price of the main product more competitive

A. Product line pricing
B. Optional-product pricing
C. Captive-product pricing
D. By-product pricing
E. Product bundle pricing

Product bundle pricing
Pricing bundles of products sold together at a reduced price is which product mix pricing strategy

A. Product line pricing
B. Optional-product pricing
C. Captive-product pricing
D. By-product pricing
E. Product bundle pricing

Psychological prices
Adjusting prices for psychological effect; consumers usually perceive higher-priced products as having higher quality
Reference prices
Prices that buyers carry in their minds and refer to when looking at a given product
Odd/even pricing

(odd pricing (19.99) often seen as more of a deal, while even pricing (65.00) is often used to distinguish luxury items)

A psychological pricing tactic in which numeric value is utilized to affect the customer’s perception of product value.
Downsizing (an example of perceived price change vs. actual change – canned tuna: the product looks the same, you pay the same, but the weight of the tuna is reduced by 5.8%)
Reducing the amount of product in a package
EDLP
Saves search costs of finding lowest overall prices
-Prices low all the time, no coupons or sale specials
-Charging constant, everyday low prices with few sales or discounts
Price-quality
The ideas that most inexperienced consumers use price as an indicator of quality and price becomes crucial when consumers have little knowledge about certain products/brands describes the _____ relationship
High/low pricing
Provides the thrill of the chase for the lowest price
-Consumers hunt for the cheapest price
-Charging higher prices on an everyday basis coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices
Predatory pricing (sellers must set prices without talking to competitors otherwise price collusion is suspected)
Selling below cost with the intention of punishing a competitor or gaining higher long-run profits by putting competitors out of business

A. Predatory pricing
B. Retail (or resale) price maintenance
C. Deceptive pricing
D. Scanner fraud

Robinson-Patman Act
Seeks to prevent unfair price discrimination by ensuring that sellers offer the same price terms to customers at a given level of trade
Retail (or resale) price maintenance
-A manufacturer cannot require dealers to charge a specified retail price for its product -They can suggest retail prices, but cannot refuse to sell or punish dealer by shipping late

A. Predatory pricing
B. Retail (or resale) price maintenance
C. Deceptive pricing
D. Scanner fraud

Deceptive pricing
Occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers

A. Predatory pricing
B. Retail (or resale) price maintenance
C. Deceptive pricing
D. Scanner fraud

Marketing channel
A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user
Marketing intermediaries
Transform the assortments of products made by producers into the assortments wanted by consumers
Direct marketing channels
-Marketing channels that have no intermediary levels – the company sells directly to the consumers and they own their own retailer
-Useful because they allow for maximum control over presentation to the end-user and positioning efforts
Indirect marketing channels
-Marketing channels that contain one or more intermediaries
-Can greatly expand the reach to targeted end-users.
-Builds on the distribution expertise of channel partners.
-Relinquishes control of downstream activities.
Retailer
Target, grocery stores, etc. that you go into as the consumer

A. Retailer
B. Wholesaler
C. Agents

Wholesaler
Buys products from producers and then sells to consumers, kind of invisible to customers
-Most of the food industry

A. Retailer
B. Wholesaler
C. Agents

Agents
Help producer sell product to consumers but don’t actually own the product

A. Retailer
B. Wholesaler
C. Agents

Dual distribution
-Involves the use of multiple direct channels, or the use of both direct and indirect channels by sellers
-Often used to reach two or more customer segments, or to sell distinct lines
Disintermediation
Process by which traditional intermediaries are eliminated as companies question the value added by layers in the distribution channel
Intensive distribution
A strategy in which they stock their products in as many outlets as possible so that they can be available where and when consumers want them

A. Intensive distribution
B. Exclusive distribution
C. Selective distribution

Horizontal conflict
Chanel conflict that occurs among firms at the same level of the channel
Vertical conflict
Channel conflict that occurs between different levels of the same channel
-More common
Exclusive distribution
Producer gives only a limited number of dealers the exclusive right to distribute its products in their territories
-Luxury brands

A. Intensive distribution
B. Exclusive distribution
C. Selective distribution

Selective distribution
The use of more than one but fewer than all of the intermediaries who are willing to carry a company’s products
-Consumer electronics, furniture, and home appliance brands

A. Intensive distribution
B. Exclusive distribution
C. Selective distribution

Marketing logistics
Involves planning, implementing, and controlling the physical flow of goods, services, and related information from points of origin to points of consumption to meet customer requirements at a profit

A. Customer-centered logistics
B. Outbound logistics
C. Inbound logistics
D. Reverse logistics
E. Supply chain management
F. Marketing logistics

Customer-centered logistics
Starts with the marketplace and works backward to the factory or even to sources of supply

A. Customer-centered logistics
B. Outbound logistics
C. Inbound logistics
D. Reverse logistics
E. Supply chain management
F. Marketing logistics

Outbound logistics
Moving products from the factory to resellers and ultimately to customers

A. Customer-centered logistics
B. Outbound logistics
C. Inbound logistics
D. Reverse logistics
E. Supply chain management
F. Marketing logistics

Inbound logistics
Moving products and materials from suppliers to the factory

A. Customer-centered logistics
B. Outbound logistics
C. Inbound logistics
D. Reverse logistics
E. Supply chain management
F. Marketing logistics

Supply chain management
Managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

A. Customer-centered logistics
B. Outbound logistics
C. Inbound logistics
D. Reverse logistics
E. Supply chain management
F. Marketing logistics

Warehousing
Most companies must store their goods while they wait to be sold

A. Warehousing
B. Inventory management
C. Transportation
D. Just-in-time logistics
E. Integrated logistics management

Inventory management
Managers must maintain the delicate balance between carrying too little inventory and carrying too much

A. Warehousing
B. Inventory management
C. Transportation
D. Just-in-time logistics
E. Integrated logistics management

Integrated logistics management
Providing better customer service and trimming distribution costs requires teamwork, both inside the company and among all the marketing channel organizations

A. Warehousing
B. Inventory management
C. Transportation
D. Just-in-time logistics
E. Integrated logistics management

Retailing
Includes all the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use
Department store
A store that carries several product lines-typically clothing, home furnishings, and household goods-with each line operated as a separate department managed by specialist buyers or merchandisers

A. Specialty store
B. Department store
C. Supermarket
D. Convenience store
E. Discount store
F. Off-price retailer
G. Superstore

Supermarket
A relatively large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer’s total needs for grocery and household products

A. Specialty store
B. Department store
C. Supermarket
D. Convenience store
E. Discount store
F. Off-price retailer
G. Superstore

Supermarket
Most frequently visited type of retail store

A. Specialty store
B. Department store
C. Supermarket
D. Convenience store
E. Discount store
F. Off-price retailer
G. Superstore

Convenience store
A relatively small store located near residential areas, open 24/7, and carrying a limited line of high-turnover convenience products at slightly higher prices

A. Specialty store
B. Department store
C. Supermarket
D. Convenience store
E. Discount store
F. Off-price retailer
G. Superstore

Discount store
A store that carries standard merchandise sold at lower prices with lower margins and higher volumes

A. Specialty store
B. Department store
C. Supermarket
D. Convenience store
E. Discount store
F. Off-price retailer
G. Superstore

Off-price retailer
A store that sells merchandise bought at less-than-regular wholesale prices and sold at less than retail

A. Specialty store
B. Department store
C. Supermarket
D. Convenience store
E. Discount store
F. Off-price retailer
G. Superstore

Off-price retailer
These include factory outlets owned and operated by manufacturers, independent off-price retailers owned and run by entrepreneurs or by divisions of larger retail corporations, and warehouse (or wholesale) clubs selling a limited selection of goods at deep discounts to consumers who pay membership fees

A. Specialty store
B. Department store
C. Supermarket
D. Convenience store
E. Discount store
F. Off-price retailer
G. Superstore

Superstore
A very large store that meets consumers’ total needs for routinely purchased food and nonfood items

A. Specialty store
B. Department store
C. Supermarket
D. Convenience store
E. Discount store
F. Off-price retailer
G. Superstore

Superstore
This includes supercenters, combined supermarket and discount stores, and category killers, which carry a deep assortment in a particular category

A. Specialty store
B. Department store
C. Supermarket
D. Convenience store
E. Discount store
F. Off-price retailer
G. Superstore

Atmospherics
Refers to how managers manipulate the design of the building, interior space, layout of aisles, texture of carpets and walls, scents, colors, shapes, and sounds experienced by customers to achieve a certain effect
Emotional response, behavior
In retail atmospherics, the atmosphere influences _____ which influences ______
Wholesalers
Includes all the activities involved in selling goods and services to those buying them for resale or business use
Merchant wholesalers
Independently owned businesses that take title to all merchandise handled

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Full-service wholesalers
Provide a full set of services: carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistance

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Wholesale merchants
Sell primarily to retailers and provide a full range of services

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Industrial distributors
-Sell to manufacturers rather than to retailers
-Provide several services, such as carrying stock, offering credit, and providing delivery
-May carry a broad range of merchandise, a general line, or a specialty line

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Limited-service wholesalers
Offer fewer services to their supplier and customers

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Cash-and-carry wholesalers
Carry a limited line of fast-moving goods and sell to small retailers for cash

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Truck wholesalers (or truck jobbers)
Perform primarily a selling and delivery function
-Carry a limited line of semiperishable merchandise (such as milk, break, snack foods), which is sold for cash as deliveries are made to supermarkets, small groceries, hospitals, restaurants, factory cafeterias, and hotels

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Drop shippers
Do not carry inventory or handle the product
-On receiving an order, they select a manufacturer, who then ships the merchandise directly to the customer
-Operate in bulk industries, such as coal, lumber, and heavy equipment

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Rack jobbers
Serve groceries and drug retailers, mostly in nonfood items
-Send delivery trucks to stores, where the delivery people set up toys, paperbacks, hardware items, health and beauty aids, or other items
-Price the goods, keep them fresh, set up point-of-purchase displays, and keep inventory records

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Producers’ cooperatives
Farmer-owned members that assemble farm produce for sale in local markets
-Often attempt to improve product quality and promote a co-op brand name, such as Sun-Maid raisins, Sunkist oranges, or Diamond nuts

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors

Mail-order or Web wholesalers
Send catalogs to or maintain Web sites for retail, industrial, and institutional customers featuring jewelry, cosmetics, specialty foods, and other small items
-Its primary customers are businesses in small outlying areas

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors
L. Brokers
M. Agents

Brokers
Bring buyers and sellers together and assist in negotiation
-Paid by the party who hired them and do not carry inventory, get involved in financing, or assume risk

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors
L. Brokers
M. Agents

Agents
Represent either buyers or sellers on a more permanent basis than brokers do

A. Merchant wholesalers
B. Full-service wholesalers
C. Limited-service wholesalers
D. Cash-and-carry wholesalers
E. Truck wholesalers (or truck jobbers)
F. Drop shippers
G. Rack jobbers
H. Producers’ cooperatives
I. Mail-order or Web wholesalers
J. Wholesale merchants
K. Industrial distributors
L. Brokers
M. Agents

Manufacturers’ agents
Represent two or more manufacturers of complementary lines
-Often used in such lines as apparel, furniture, and electrical goods
-Hired by small manufacturers who use agents to open new territories or cover territories that cannot support full-time salespeople

A. Manufacturers’ agents
B. Selling agents
C. Purchasing agents
D. Commission merchants
E. Manufacturers’ and retailers’ branches and offices

Selling agents
Have contractual authority to sell a manufacturer’s entire output
-Serves as a sales department and has significant influence over prices, terms, and conditions of sale
-Found in product areas such as textiles, industrial machinery and equipment, coal and coke, chemicals, and metals

A. Manufacturers’ agents
B. Selling agents
C. Purchasing agents
D. Commission merchants
E. Manufacturers’ and retailers’ branches and offices

Purchasing agents
Generally have a long-term relationship with buyers and make purchases for them, often receiving, inspecting, warehousing, and shipping the merchandise to buyers
-Help clients obtain the best goods and prices available

A. Manufacturers’ agents
B. Selling agents
C. Purchasing agents
D. Commission merchants
E. Manufacturers’ and retailers’ branches and offices

Commission merchants
Take physical possession of products and negotiate sales
-Used most often in agricultural marketing by farmers who do not want to sell their own output
-Take a truckload of commodities to a central market, sell for the best price, deduct a commission and expenses, and remit the balance to the producers

A. Manufacturers’ agents
B. Selling agents
C. Purchasing agents
D. Commission merchants
E. Manufacturers’ and retailers’ branches and offices

Manufacturers’ and retailers’ branches and offices
Wholesaling operations conducted by sellers or buyers themselves rather than operating through independent wholesalers

A. Manufacturers’ agents
B. Selling agents
C. Purchasing agents
D. Commission merchants
E. Manufacturers’ and retailers’ branches and offices

Promotion
Any communication by marketers that informs, persuades, reminds, and builds relationships with potential buyers of a product to influence an opinion or elicit a response
– Informing potential customers of the availability of the product, its price, and its place
Inform (create awareness and generate primary demand for product)
Goal of introduction phase of product life cycle

A. Inform
B. Persuade
C. Remind

Persuade
Goal of growth phase of product life cycle

A. Inform
B. Persuade
C. Remind

Persuade
Goal of maturity phase of product life cycle

A. Inform
B. Persuade
C. Remind

Remind
Goal of decline phase of product life cycle

A. Inform
B. Persuade
C. Remind

Pull strategy
-Producer is reaching out to end consumer, trying to get consumer to want product so consumer demands from retailer and retailer demands from producer
-The company promotes directly to final consumers, creating a demand vacuum that “pulls” the product through the channel
-The producer directs its marketing activities toward final consumers to induce them to buy the product
Push strategy
The company “pushes” the product to resellers, who in turn “push” to consumers
-Involves pushing the product through marketing channels to final customers
-The producer directs its marketing activities toward channel members to introduce them to carry the product and promote it to final consumers
Promotional mix
Consists of the specific blend of advertising, public relations, personal selling, sales promotion, and direct marketing tools that the company uses to engage consumers, persuasively communicate customer value, and build customer relationships
Business to consumer
Is there more advertising in business to consumer or business to business?
Public relations
Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events

A. Advertising
B. Public relations
C. Sales promotion
D. Personal selling
E. Direct and digital marketing

Sales promotion
Coupons and samples are examples of

A. Advertising
B. Public relations
C. Sales promotion
D. Personal selling
E. Direct and digital marketing

Personal selling
Personal customer interactions by the firm’s sales force for the purpose of engaging customers, making sales, and building customer relationships
-An individual is representing a manufacturer and works with an individual customer to sell a product

A. Advertising
B. Public relations
C. Sales promotion
D. Personal selling
E. Direct and digital marketing

Business to business
Is there more personal selling in business to consumer or business to business?
Direct and digital marketing
Engaging directly with carefully targeting individual consumers and customer communities to both obtain an immediate response and build lasting customer relationships

A. Advertising
B. Public relations
C. Sales promotion
D. Personal selling
E. Direct and digital marketing

Advertising
A specific communication task to be accomplished with a specific target audience during a specific period of time is known as the ______ objective
1. Affordable method
2. Percentage-of-sales method
3. Competitive-parity method
4. Objective-and-task method
4 methods for setting advertising budget
Affordable method
Set the promotion budget at the level they think the company can afford

Advertising budget setting method:
A. Affordable method
B. Percentage-of-sales method
C. Competitive-parity method
D. Objective-and-task method

Percentage-of-sales method
Setting their promotion budget at a certain percentage of current or forecasted sales

Advertising budget setting method:
A. Affordable method
B. Percentage-of-sales method
C. Competitive-parity method
D. Objective-and-task method

Competitive-parity method
Setting their promotion budgets to match competitors’ outlays
-They monitor competitors’ advertising or get industry promotion spending estimates from publications or trade associations and then set their budgets based on the industry average

Advertising budget setting method:
A. Affordable method
B. Percentage-of-sales method
C. Competitive-parity method
D. Objective-and-task method

Objective-and-task method
Company sets its promotion budget based on what it wants to accomplish with promotion
-Defining specific promotion objectives
-Determining the tasks needed to achieve these objectives
-Estimating the costs of performing these tasks

Advertising budget setting method:
A. Affordable method
B. Percentage-of-sales method
C. Competitive-parity method
D. Objective-and-task method

Madison & Vine
Represents the merging of advertising and entertainment in an effort to create new avenues for reaching consumers with more engaging messages
Advertainment
Make ads and brand content themselves so entertaining, or so useful, that people want to watch them
Brand integrations
Involve making the brand an inseparable part of some other form of entertainment or content
Creative concept
Bring the message strategy to life in a distinctive and memorable way
Reach, frequency, impact, engagements
Advertising media is all about determining -______, ____, ______, and _____
Reach
A measure of the percentage of people in the target market who are exposed to an ad campaign during a specific time

Advertising media:
A. Reach
B. Frequency
C. Impact
D. Engage

Frequency
A measure of how many times the average person in the target market is exposed to a message

Advertising media:
A. Reach
B. Frequency
C. Impact
D. Engage

Impact
The qualitative value of message exposure through a given medium

Advertising media:
A. Reach
B. Frequency
C. Impact
D. Engage

Engage
Relevance of ad content is much more important than how many people it reaches

Advertising media:
A. Reach
B. Frequency
C. Impact
D. Engage

Sales force management
Analyzing, planning, implementing, and controlling sales force activities
-Includes designing sales force strategy and structure as well as recruiting, selecting, training, compensating, supervising, and evaluating the firm’s salespeople
Territorial sales force structure
Each salesperson is assigned to an exclusive geographic area and sells the company’s full line of products or services to all customers in that territory

-Increases salesperson’s desire to build local customer relationships that in turn improve selling effectiveness
How can sales forces be organized?

A. Territorial sales force structure
B. Product sales force structure
C. Customer sales force structure

Product sales force structure
The salesforce specializes along product lines

How can sales forces be organized?

A. Territorial sales force structure
B. Product sales force structure
C. Customer sales force structure

Customer sales force structure
A company organizes its sales force along customer or industry lines

How can sales forces be organized?

A. Territorial sales force structure
B. Product sales force structure
C. Customer sales force structure

Workload
A type of sales force organization where a company first groups accounts into different classes according to size, account status, or other factors related to the amount of effort required to maintain the account
-It then determines the number of salespeople needed to call on each class of accounts the desired number of times

It is called the _____ approach

Intrinsic motivation, a disciplined work style, the ability to close a sale, the ability to build relationships with customers
When recruiting and selecting salespeople, note that the best salespeople have four key talents:
Sales reports, call reports, expense reports
How do you evaluate salespeople?
Organizational climate
Describes the feeling that salespeople have about their opportunities, value, and rewards for good performance
Positive incentives, sales meetings, sales contests
How do you motivate salespeople?
1. Prospecting and qualifying
2. Preapproach
3. Approach
4. Presentation and demonstration
5. Handling objections
6. Closing
7. Follow-up
Place the personal selling process steps in order

A. Closing
B. Presentation and demonstration
C. Preapproach
D. Prospecting and qualifying
E. Follow-up
F. Handling objections
G. Approach

1. Idea generation
2. Idea screening
3. Concept development and testing
4. Market strategy and development
5. Business analysis
6. Product development
7. Test market
8. Commercialization
Place the new product development steps in order

A. Test market
B. Business analysis
C. Idea screening
D. Market strategy and development
E. Concept development and testing
F. Idea generation
G. Commercialization
H. Product development

Consumer promotions
Include a wide range of tools – from samples, coupons, refunds, premiums, and point-of purchase displays to contests, sweepstakes, and event sponsorships

A. Consumer promotions
B. Trade promotions
C. Business promotions

Trade promotions
Can persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to customers

A. Consumer promotions
B. Trade promotions
C. Business promotions

Business to business
_______ tend to push more, putting more of their funds into personal selling
Business to consumer
____ tend to pull more, putting more of their funds into advertising
Paid, owned, earned
3 types of media in the digital space
Paid
-Anything you as a company are paying for
-Native advertising because it comes up as part of your user experience
-Print
-Television

A. Paid
B. Owned
C. Earned

Owned
Company has control over what content is on this page
-Brochure
-Retail stores
-Company website

A. Paid
B. Owned
C. Earned

Earned
Consumers are creating content
-Word of mouth
-Facebook
-Twitter

What type of media?

Exporting, joint venturing, direct investment
Three primary ways to enter an international market
Exporting
Company may passively export its surpluses from time to time, or it may make an active commitment to expand exports to a particular market

A. Exporting
B. Joint venturing
C. Direct investment

Joint venturing
Joining with foreign companies to produce or market products or services

A. Exporting
B. Joint venturing
C. Direct investment

Licensing
Simple way for a manufacturer to enter international market; the company enters into an agreement with a licensee in the foreign market

-Buys the right to use the company’s manufacturing process, trademark, patent, trade secret, or other item of value

A. Licensing
B. Contract manufacturing
C. Management contracting

Contract manufacturing
Company makes agreements with manufacturers in the foreign market to produce its produc or provide its service

A. Licensing
B. Contract manufacturing
C. Management contracting

Management contracting
The domestic firm provides the management know-how to a foreign company that supplies the capital

A. Licensing
B. Contract manufacturing
C. Management contracting

Joint ownership
Consist of one company joining forces with foreign investors to create a local business in which they share possession and control
Direct investment
The development of foreign-based assembly or manufacturing facilities

A. Exporting
B. Joint venturing
C. Direct investment

Standardization
Same marketing mix worldwide
Standardized
In ______ global markets, companies essentially using the same marketing strategy approaches and marketing mix worldwide
Adaptation
Adjust marketing strategy and mix elements to each target market
Adapted
In ______ global marketing, the producer adjusts the marketing strategy and mix elements to each international target market, resulting in more costs but hopefully producing a larger market share and return
Straight extension
Product decisions:
-Sell the same product in the new market
-Marketing a product in a foreign market without making significant changes to the product

A. Straight extension
B. Product adaptation
C. Product invention
D. Pattern advertising

Product invention
Product decisions:
-Develop a brand new product for that new market
-Creating something new to meet the requirements of a given country

A. Straight extension
B. Product adaptation
C. Product invention
D. Pattern advertising

Pattern advertising
-Plan globally, act locally.
-Broad outlines or basic positioning is given, but details can be adapted.
-Assuming that there are some differences in culture and consumer behavior even if primary function is the same.
-Standardization plus localization!

A. Straight extension
B. Product adaptation
C. Product invention
D. Pattern advertising

Similar (and when target customers are in cosmopolitan urban areas)
Standardized strategies are more likely to work when cultural factors are _____
Conventional distribution channel
Consists of one or more independent producers, wholesalers, and retailers. Each is a separate business seeking to maximize its own profits, perhaps even at the expense of the whole system

A. Conventional distribution channel
B. Vertical marketing system
C. Horizontal marketing system
D. Multichannel distribution systems

Vertical marketing system
Consists of producers, wholesalers, and retailers acting as a unified system. One channel member owns the others and has contracts with them, or wields so much power that they must all cooperate

A. Conventional distribution channel
B. Vertical marketing system
C. Horizontal marketing system
D. Multichannel distribution systems

Corporate vertical marketing system
Integrates successive stages of production and distribution under single ownership

A. Corporate vertical marketing system
B. Contractual vertical marking system
C. Administered vertical marketing system

Contractual vertical marking system
Consists of independent firms at different levels of production and distribution that join together through contracts to obtain more economies or sales impact than each could achieve alone

A. Corporate vertical marketing system
B. Contractual vertical marking system
C. Administered vertical marketing system

Administered vertical marketing system
Leadership is not assumed through common ownership or contractual ties but through the size and power of one or a few dominant channel members. Manufacturers of a top brand can obtain strong trade cooperation and support from resellers

A. Corporate vertical marketing system
B. Contractual vertical marking system
C. Administered vertical marketing system

Horizontal marketing system
Two or more companies at one level join together to follow a new marketing opportunity. They can combine financial, production, or marketing resources to accomplish more than any one company could alone

A. Conventional distribution channel
B. Vertical marketing system
C. Horizontal marketing system
D. Multichannel distribution systems

Multichannel distribution systems
A single firm sets up two or more marketing channels to reach one or more customer segments

A. Conventional distribution channel
B. Vertical marketing system
C. Horizontal marketing system
D. Multichannel distribution systems