Marketing 350 test 4

is the specific sales or profit objective a salesperson is expected to achieve.
sales quota
The National Cheese Association’s ad theme “We are making better cheese for you” is an example of:
institutional advertising.
“Copy thrust” refers to:
what is to be communicated by the words and illustrations.
The most popular sales force payment method is:
a combination plan.
Total fixed cost
stays the same even if production stops temporarily.
Comparative advertising”:
should be supported by research evidence.
The basic problem with the average-cost approach is that it
does not consider cost variations at different levels of output.
Which of the following costs do not change with an increase in output?
Total fixed cost
The _____ type of competitive advertising aims for immediate buying action.
direct
With the ___________ method of payment, some salary and some commission are included.
Combination
Some customers encourage the use of ______________ by paying more attention to supposed price discounts than to the actual prices (and values).
phony list prices
Skimming may maximize profits in the market introduction stage for an innovation, especially if
there are few substitutes.
Missionary salespeople
work for producers calling on their intermediaries and their customers.
A “penetration pricing policy”:
may be wise if a firm expects strong competition very soon after its product introduction.
A firm that sets prices such that consumers will save 15% of their fuel costs by buying its products is employing _____.
value in use pricing
A focus on a target return or return on investment are characteristic of _____ pricing objectives.
profit-oriented
In the United States, the _____ has the power to control unfair or deceptive business practices, including deceptive advertising.
FTC
A salesperson who seeks possible buyers with a well-organized sales presentation designed to get new business is:
an order getter.
A firm’s sales training should cover
All of these alternatives are correct.
Some manufacturers give ______________ to retailers to pass on to the retailers’ salesclerks to encourage aggressive selling of specific items or lines.
“push money”
Price discrimination:
may be legal if the firm can prove that different prices were set based on different costs.
Value in use pricing
sets a price that will capture some of what customers will save by substituting the firm’s product for the one currently being used.
The commission method of payment:
offers the most incentive for the salesperson
A salesperson on a(n) ________ earns the same amount regardless of how he or she spends time
straight salary
A straight salary
offers the most security for the salesperson.
Which of the following is a status quo oriented pricing objective?
Nonprice competition
Elise Noble works as a telephone salesperson for the Catalog Division of JC Penney. Her primary job is to call customers with Penney charge accounts to inform them about sale items and ask if they would like to order the sale items. Which of the following kinds of sales presentations would be best for Elise to use?
Prepared sales presentation.
“Push money” is most likely to be offered to:
cosmetics salespeople at a department store.
What does the AIDA concept stand for?
Attention, Interest, Desire, Action
Consider the following demand schedule for a product; As the quantity demanded/sold increases from 3 units to 4 units, what is the marginal revenue?
$150.
A technical specialist:
All of these alternatives are correct.
Customer service reps
work with customers to resolve problems that arise with a purchase, usually after the purchase has been made.
Demand-backward” pricing:
starts with an acceptable final consumer price and works backward to what producers can charge.
A trade discount is also called a _____.
functional discount
“Don’t-rock-the-boat” thinking is most common when
the total market is not growing.
A paving contractor wants to work on road construction contracts administered and paid for by the state government. The contractor submits a sealed proposal to the state department of transportation for each construction job. The proposal contains a description of how the contractor will fulfill the specifications for the job at a specified price. The contractor is engaging in:
Bid pricing.
The stockturn rate is
the number of times the average inventory is sold in a year.
With the ____________ approach, the salesperson uses a memorized presentation that is not adapted to each individual customer.
Prepared sales
Order taking involves:
routinely completing sales made regularly to target customers.
A _____ policy means offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities.
one-price
Which of the following prices is most likely to be seen if a firm is using odd-even pricing?
$99.95
The three basic sales tasks are:
order-taking, supporting, and order-getting.
All of the following publicity tools are examples of one-way communication from a company to consumers or business customers EXCEPT:
MySpace
The ____________ method of payment uses a percentage of dollar sales in calculating compensation.
Commission
_____ are the prices final customers or users are normally asked to pay for products.
Basic list prices
Which of the following is likely to have the lowest total personal selling expenses?
A company with straight commission salespeople and low sales volume
_____ means setting a fair price level for a marketing mix that really gives the target market superior customer value
Value pricing
Which of the following sales approaches is most to be suitable for simple order-taking?
Prepared sales presentation
Pioneering advertising is often needed during the ______________ stage of the product life cycle.
market introduction
The idea that people will pay extra for “quality” and status is the idea behind
prestige pricing.
A jewelry store advertises a one-carat diamond engagement ring as being discounted 50 percent off the original price of $10,000, for a sale price of $5,000. However, the ring was never put on sale at the original price, and its actual cost to the retailer was only $1,500. This jewelry store could be accused of using:
Phony list prices.
A __________ is a written statement of what a salesperson is expected to do.
Job description
Profit maximization pricing objectives:
seek to get as much profit as possible.
____________ advertising tries to develop primary demand for a product category rather than demand for a specific brand.
Pioneering
Sales-oriented pricing objectives include:
Growth in unit sales, dollar sales, or share of market
Pioneering ads for a product work best in which stage of the adoption process?
Awareness
A salesperson on a(n) ________ earns the same amount regardless of how he or she spends time.
straight salary
Competitive advertising
tries to develop selective demand for a specific brand.
“Unfair trade practice acts”:
protect certain limited-line retailers from “ruinous” price competition.
Gross margin is expressed as
net sales minus cost of goods sold.
Total fixed cost:
is the sum of those costs which do not change in total no matter how much is produced.
Setting prices by adding a “reasonable” markup to a firm’s average cost is called:
average-cost pricing.
At zero output, total variable cost is
zero
With the ___________ approach, the salesperson assumes that a customer faced with a particular stimulus will say yes to his request for an order.
Prepared sales
A salesperson who earns the same gross pay each month is in what type of compensation program?
Straight salary
When a company includes “stories” and/or videos on its website of how it has helped individual customers solve an important problem, this is an example of a:
case study.
_____ means setting a fair price level for a marketing mix that really gives the target market superior customer value.
Value pricing
Leader pricing:
is different from bait pricing in that the marketing manager really expects to sell leader priced items.
Marketing managers should make specific strategy decisions about:
All of these alternatives are correct.
The advertising medium of __________ has a wide reach, is good for getting attention and for demonstrations, but it is expensive, has a lot of clutter, and in many cases has a less selective audience.
Television
The sequence of markups firms use at different levels in a channel is referred to as a
markup chain.
Salespeople are likely to be responsible for:
Any or all of these are correct.
The __________ involves developing a good understanding of the individual customer’s needs before trying to close the sale.
Consultative selling approach
A sales presentation in which the sales rep does most of the talking, using a “canned” presentation to obtain a “yes” answer to a “trial close” is a:
prepared sales presentation.
The two basic decisions to be made in developing a compensation plan are the method of payment and
level of compensation.
Identify a disadvantage of break-even analysis.
It does not consider the effect of price on the quantity that consumers will want.
The text says “markup” means percent of:
selling price—unless otherwise stated.
_____ is what a customer must give up to get the benefits offered by the rest of a firm’s marketing mix.
Price
______________ advertising tries to develop goodwill for a company or even an industry—instead of a specific product.
Institutional
Which of the following costs decrease with increase in output?
Average fixed cost per unit
Which of the following is an example of a variable cost for a producer?
Packaging materials.
When Apple first introduced its iPhone in the U.S. market, it priced it at $600. Several months later, Apple reduced the price to $400. And several months after that, it reduced the price again to $200. What pricing policy was Apple using in its initial price strategy?
Skimming price
A “skimming pricing policy”:
usually involves a slow reduction in price over time.
The price that maximizes profit is the one that results in the greatest difference between
total revenue and total cost.
Quantity discounts are offered by sellers to:
All of these alternatives are correct.
Reminder advertising
tries to keep the product’s name before the public.
Advertising which tries to develop selective demand for a specific brand rather than a product category is called ______________ advertising.
competitive
A “penetration pricing policy”
may be wise if a firm expects strong competition very soon after its product introduction.
A supermarket manager should use ______________ advertising to increase store traffic during the middle of the week.
direct competitive
According to the text, the two basic approaches to price setting are
cost-oriented and demand-oriented price setting.
A prepared sales presentation:
None of these alternatives is correct.
A Wendy’s fast-food restaurant needs ______________ to serve its customers.
order takers
A _____ price policy tries to sell the top of the demand curve at a high price before aiming at more price-sensitive customers.
skimming
The sum of those changing expenses which are closely related to output is called:
total variable cost.
Setting relatively high prices to suggest high-quality or high-status is:
prestige pricing.
___________ is the specific sales or profit objective a salesperson is expected to achieve.
Sales quota
Persuading ads for a product work best in which stage of the adoption process?
Evaluation and trial
An “all the traffic will bear” pricing objective is a ______________ objective.
profit maximization
It is usually the _________ job, perhaps with help from specialists in technology, to decide what types of sales technology tools are needed and how they will be used.
sales manager’s
Order takers are concerned with:
selling to regular customers, completing most sales transactions, and maintaining relationships with their established customers.
Which of the following is a status quo pricing objective?
Meeting competition
When an advertiser pays a fixed amount (e.g. 70 cents) each time a Web surfer clicks on the advertiser’s ad and links to the advertiser’s website, this process is called a(n):
pay-per-click.
Put the steps of the personal selling process in order: Prospect for new customers; Select target customer; Preplan sales call and presentation; Make sales presentation; ______________; and Follow up after the sales call.
Close sale
When a previous visitor to Amazon.com returns to the site, the online retailer will instantly have information about that visitor because of the ___________ it placed on the visitor’s computer during the first visit.
cookie
Which act prohibits price discrimination unless it is based on cost differences or the need to meet competition?
Robinson-Patman Act
Which of the following is a profit-oriented pricing objective?
Target return
With the ___________ approach, the customer and the salesperson work together to satisfy the customer’s needs and solve the problem.
Consultative selling
A telecommunications company offers its salespeople a traditional straight commission compensation plan based on a percentage of dollar sales. The company will incur the highest total personal selling expenses when:
total sales revenue is at its highest.
Which sales presentation would be “best” for convenience (food) store clerks?
Prepared sales presentation
When an online ad is delivered to a person’s computer based on previous websites that person has visited, this is called:
behavioral targeting.
Which of the following is not an example of price?
All
Reminder ads come under which stage of the adoption process in advertising?
Confirmation
Some retailers commonly use prices that end in certain numbers. They seem to assume that their customers see prices with these numbers as substantially lower. This is:
odd-even pricing
The _________ compensation plan increases the amount of sales supervision needed.
Straight salary
Break-even analysis can be useful for:
comparing pricing alternatives.
Which of the following is an example of a cost-oriented price setting approach?
Markup pricing
Customers are likely to be more price sensitive when:
All of these alternatives are correct.
A CVS drugstore that is trying to attract customers by advertising a special bargain price on a popular brand of cold remedy during the cold season is using:
leader pricing
All of the following are payment methods for personal selling except
tax deductions
_____ is setting a few price levels for a product line and then marking all items at these prices.
Price lining
Prices are called “administered” when:
firms set their own prices for some period of time—rather than letting daily market forces determine their prices.
________ ads are small rectangular boxes that usually include text, graphics, and sometimes video to create interest.
Banner
Price reductions given to channel members to encourage them to advertise or otherwise promote a firm’s products locally are:
advertising allowances.
_____ involves setting one price for a set of products.
Product bundle pricing
“Technical specialists”:
help explain technical details as needed.
What is the objective of a target return strategy?
A specific level of profit.
A supermarket manager should use ______________ advertising to increase store traffic during the middle of the week.
direct competitive
Final customers or users are normally asked to pay ______________ prices for products they buy.
basic list
People who help order-oriented salespeople—but don’t try for orders themselves are:
All of these are correct.
Reminder ads for a product work best in which stage of the adoption process?
Confirmation
______________ are reductions from list price that are given by a seller to a buyer who either gives up some marketing function or provides the function himself.
Discounts
“Comparative advertising”:
should be supported by research evidence.
Marginal cost is:
the change in total cost that results from producing one more unit.
Which of the following is an example of a fixed cost?
Depreciation
Which of the following pricing objectives is a producer seeking when the producer tries to obtain some percent return on his investment?
Target return
Total fixed cost
stays the same even if production stops temporarily.
A discount that is offered to encourage buyers to stock earlier than present demand requires is:
a seasonal discount.
The Robinson-Patman Act says that to be legal, price differences must be based on:
a need to meet competition and cost differences
Cooperative advertising is:
a way for a producer to get more promotion for its advertising dollar.
Comparative ads for a product work best in which stage of the adoption process?
Evaluation and trial
For many firms, the largest single operating expense is:
Personal selling.
Marginal analysis:
All
“Cooperative advertising” involves producers:
and intermediaries sharing in the cost of local advertising.
Point-of-purchase ads for a product work best in which stage of the adoption process?
Decision
A penetration pricing policy
tries to sell the whole market at one low price.
A reduction from list price given to intermediaries to get shelf space for a product is a:
stocking allowance.
Antidumping laws:
are used in an effort to control the minimum price of imported products.
Over time, a skimming policy usually involves
price movement down the demand curve.