Marketing Final – DG2

_____ is any form of impersonal, sponsor-paid, one-way mass communication.
Advertising
How can advertising affect consumers?
It informs them about products and services and influences their attitudes, beliefs, and ultimately their purchases
Tobacco company Philip Morris runs television ads where they promote quitting smoking and direct viewers to a Web site for support and help. These ads are examples of _____ advertising.
Advocacy
Which form of advertising is designed to influence demand for a specific brand?
Competitive advertising
Before any creative work can begin on an advertising campaign, it is important to:
Determine what goals or objectives the advertising should achieve – advertising objective
A feature of a product is called a(n):
attribute
In advertising, the goal is to sell the _____, not the _____ of a product.
Benefits not the attributes
The _____ is the channel used to convey a message to a target market.
Medium
_____ advertising has the advantages of being both timely and geographically flexible.
Newspaper
_____ is a measure of the number of times an individual is exposed to a brand message. It is used to measure the intensity of a specific medium’s coverage.
Frequency
Tools for the public relations manager include all of the following EXCEPT:
New Product Publicity
Product Placement
Consumer Education
Sponsorship
Company Web sites
Which of the following statements about contests and sweepstakes is true?
Contests are promotions in which participants use some skill or ability to compete for prizes
Sweepstakes depends on chance and participation is free also they draw about ten times more than contests do
While they draw interest and publicity they are not effective tools for generating long term sales to increase sales
managers must make certain the award will appeal to the target market
When compared to other forms of promotion, personal selling:
Personal selling provides a detailed explanation or demonstration of the product
The sales message can be varied according to the motivations and interests of each customer
Personal selling can be directed only to qualified prospects
Personal selling costs can be controlled by adjusting the size of the sales force in one person increments
Personal selling is considerably more effective than other forms of promotion in obtaining a sale and gaining a satisfied
customer
_____ is a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
Relationship/Consultative selling
Relationship selling:
Relationship sales people become consultants, partners, and problem solvers for their customers they strive to build long
term relationships with key accounts by developing trust over time. The results are loyal customers who continue to buy
from the company typically used in selling situations for industrial type goods such as heavy machines or computer
systems, and services, such as airlines and insurance, than for consumer goods. Typically used for industrial type goods than consumer goods
_____ is the ultimate goal of a new trend in marketing that focuses on understanding customers as individuals instead of as part of a group
Customer Relationship management
_____ involves delegating authority to solve customers’ problems.
Empowerment
Which of the following is an example of a channel through which customer data are traditionally gathered?
Store visits, Conversations with salespeople, interactions via the Web, traditional phone conversations, and wireless
Communications. – Online Chat Window,
_____, or prospecting, is the identification of those firms and people most likely to buy the seller’s offerings.
Lead generation
Effective sales management begins with:
Determination of Sales Goals
Because of the influence of social marketing, the interaction between producer and consumer has become LESS focused on:
Less about entertaining and more about listening, influencing, and engaging
One reason why negative customer comments and complaints are important to an organization is that they can:
They can illuminate unknown brand flaws and if negative comments about a brand go unanswered that brand is insincere and consumers will take their business elsewhere. Comments tend to go viral
After establishing a listening platform, an organization should:
Develop a list of objectives for its social media team to accomplish
All of the following are practical ideas that marketing managers should consider when setting social media objectives EXCEPT:
Listen and Learn
Build Relationships and awareness
Promote products and services
Manage your reputation
Improve customer service
Which of the following statements about the use of social media in marketing is TRUE?
Social media have the potential to revolutionize the way organizations communicate with stakeholders.
A company would probably NOT want to use Twitter to:
Twitter is a microblog intended for short messaging
A Web site that allows individuals to connect with friends, peers, and business associates is called a:
Social network sites
Of the following, who is MOST likely to be a LinkedIn user?
Primarily used by professionals who wish to build their personal brands online and businesses that are recruiting
employees and freelancers
Much of the growth in social media sites can be attributed to:
Growth in new platforms such as smartphones and iPad’s
Price is best described as:
That which is given up in exchange to acquire a good or service : Cost of something (consumer POV) Primary source of profits (seller POV)
Which of the following statements is NOT true about price?
The sacrifice effect of price
The information effect of price
Value is based upon perceived satisfaction
As a short-term pricing objective, _____ can be effectively used on a temporary basis to sell off excessive inventory.
Sales maximization
The two types of costs a marketer needs to consider when setting prices are:
The demand for the good or service
The cost to the seller for that good or service
The difference between the retailer’s cost and the selling price is the:
The selling price is full price sold to customers while the retailers cost is the discounted rate at which they received the goods at (Profit?)
_____ determine what sales volume must be reached before the company’s total revenue equals total costs and no profits are earned.
Break even analysis
Which of the following statements describes a limitation associated with break-even analysis?
More important than cost determination is the fact that simple break-even analysis ignores demand.

* It is hard to know whether a cost is fixed or variable
* Ignores demand

As a product enters the growth stage, prices generally begin to stabilize. One reason for this is that:
Competitors have entered the market increasing the available supply
The product has begun to appeal to a broader market
Economies of scale are lowering costs and the savings passed on to consumers in form of lower prices
Many consumers, especially when faced with an uncertain purchase decision, think that a high price:
Equates to high quality
Marketing managers who attempt to raise the quality image of their product by selling it at high prices are following a(n) _____ strategy.
Prestige Pricing Strategy
Which of the following is a pricing policy whereby a firm charges a high introductory price, often coupled with heavy promotion?
Price skimming
When a firm introduces a new product at a relatively low price because it hopes to reach the mass market, it is following a _____ strategy. The low price is designed to capture a large share of a substantial market and produce lower production costs.
Penetration pricing strategy
A firm charging a price identical to or very close to the competition’s price is using a _____ strategy.
Status quo pricing
The practice of charging a very low price for a product with the intent of driving competitors out of business or out of a market is called:
Predatory pricing
All of the following are tactics for fine-tuning the base price EXCEPT
Base point pricing
Single price tactic
Value based pricing
Flexible pricing
Odd even pricing
Leader pricing

•Discounts – quantity discounts, cash discounts, functional discounts, seasonal discounts, promotional
allownances, rebates, zero percent financing
•Geographic pricing – FOB origin pricing, uniform delivered pricing, zone pricing, freight absorption
pricing, basing-point pricing
•Single Price tactic, flexible pricing, trade-ins, professional service pricing, price lining, leader pricing,
bait pricing, odd-even pricing, price bundling, two-part pricing, pay what you want

Quantity discounts are most often used to:
Attract customers who are buying in multiple units or above a specified dollar amount and encourage customer loyalty
A discount off the base price to customers who pay immediately, or within a specified time period, is called a:
Cash discount
_____ are cash refunds given for the purchase of a product during a specific period.
Rebate
Sometimes managers price their products too low, resulting in a loss of company profits. One reason this happens is that:
First managers attempt to buy market share through aggressive pricing which are quickly met by competitors thus market share gained is short lived
Second managers have a natural tendency to want to make decisions that can be justified objectively but lack hard data so managers make decisions based on current costs, projected short term share gains, or current competitor prices rather than long term probability
The term FOB is an acronym for:
Free on board – a price tactic that requires the buyer to absorb the freight costs from the shipping point
_____ tries to get customers into the store with misleading advertising and then uses high-pressure selling to persuade the consumer to buy something else more expensive.
Bait pricing