MKT Exam 3 questions

Which supply chain activities refer to the total set of managerial activities used by an organization to transform resource inputs into products, services, or both?
Operations management
What is an example of a downstream firm in an organizations supply chain?
A retail chain that sells the organizations products
What best describes the logistics management function in supply-chain management ?
Moving the product through the marketing channel to end user, including warehousing
A food manufacturing company that manufactures processed foods is trying to increase sales of its products by making them available in all general and convenience stores rather than just in supermarkets and large department stores. What type of utility is the company trying to create in this case?
Place Utility
Possession utility is created when?
Customers have access to products to use or to store for future use
Form utility is created when?
Products are assembled, prepared, or otherwise refined to suit individual customer needs.
The use of industrial distributors as a part of the distribution channel for business products is most effective when?
the product is needed on demand to avoid high losses
What is true of industrial distributors?
Industrial distributors are less likely to handle bulky items, or items that need specialized facilities.
A(n) ________ is an independent businessperson who does not take title to the goods, sells complementary products of several producers in assigned territories and is compensated through commissions.
manufacturers’ agent
What is a disadvantage of using manufacturers’ agents in the distribution of business products?
They are often reluctant to spend time following up sales and to provide market information to sellers.
Dell laptops and desktops are some of the most favored computer products both in and outside the United States. The firm sells to individual buyers directly while offering the option of customizing their computers to suit customer requirements. It also markets its laptop and desktop range through company-owned stores as well as via retail outlets such as Best Buy. This distribution strategy used by Dell through multiple marketing channels is known as:
dual distribution
What characteristics is typical of the consumer market?
Consumers often buy from retailers
What product is most likely to be distributed through shorter marketing channels?
Automobiles
Which product categories is more likely to be marketed through a selective distribution strategy?
Electronic goods
An exclusive distribution strategy is best suited for products that?
are consumed over a long period of time.
Combining two or more stages of the marketing channel under one management is known as ?
vertical integration
Which form of vertical marketing system combines all stages of the marketing channel, from producers to consumers, under a single owner?
Corporate VMS
Which of the following is characteristic of an administered vertical marketing system?
Domination of distribution systems by one of the channel members
Which of the following is an example of a contractual vertical marketing system?
Retail-sponsored cooperatives, which own and operate their own wholesalers.
The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel is known as ________.
outsourcing
Which of the following physical distribution functions involves developing and maintaining an adequate assortment of products to meet customers’ needs?
Inventory management
Check My Work
The inventory level that signals the need to place a new order is known as the ________.
reorder point
Which of the following modes of transportation is the cheapest and best suited for transporting heavy, low-value, non-perishable goods such as coal, ores, chemicals, and heavy equipment?
Waterways
When a manufacturer forbids an intermediary to carry products of competing manufacturers, the arrangement is known as ________
Exclusive dealing
Under which of the following circumstances do courts rule tying agreements as illegal?
When the supplier tries to move weaker products along with more popular items
________ includes all transactions in which the buyer intends to consume the product through personal, family, or household use.
Retailing
________ are large retail organizations characterized by a wide product mix and organized into separate departments to facilitate marketing efforts and internal management.
Department stores
A(n) ________ is a self-service, general-merchandise store offering brand name and private brand products at low prices
Discount store
Supermarkets are:
large self-service stores offering complete line of food products and some nonfood products
Which of the following retail organizations is said to combine the supermarket and discount store shopping in one location?
Hypermarkets
Which of the following is a characteristic associated with warehouse showrooms?
Vertical merchandise displays
Happy Hounds and Horses is a large retailing store that has a huge collection of products for pets that are sold at low prices. This store would be an example of a ________.
category killer
Shopping centers that have several small convenience and specialty stores are known as ________.
neighborhood shopping centers
A ________ is a type of shopping center that is typically open air and features upscale specialty, dining, and entertainment stores.
lifestyle shopping center
A power shopping center is a type of shopping center:
that combines off-price stores with category killers
The physical elements in a store’s design that appeal to consumers’ emotions and encourage buying are collectively known as the store’s ________.
atmospherics
_______ refers to a retail strategy of managing groups of similar, often substitutable products produced by different manufacturers.
Category management
Which of the following illustrates the idea of direct marketing?
buying a pair of shoes off the internet
Which of the following is a disadvantage of catalog marketing?
effectiveness limited to selected set of products
Which of the following represents a serious problem for online shopping?
Online shopping presents the possibility of identify and credit card theft
_______ is an arrangement in which a supplier grants a dealer the right to sell products in exchange for some type of consideration
Franchising
Which of the following is an advantage of franchise arrangements?
The franchiser gains fast and selective product distribution without incurring the cost of constructing and operating its own outlets.
A(n) ________ is an individual or organization that sells products that are bought for resale, making other products, or general business operations.
wholesaler.
___ are limited service wholesalers that transport products directly to customers for inspection and selection.
Truck wholesalers.
_______ are independently owned businesses that take title to goods, assume risks associated with ownership, and generally buy and resell products to other wholesalers, business customers, or retailers.
Merchant wholesalers.
_____ are full-service, specialty-line wholesalers that own and maintain display racks in stores.
rack jobbers.
the term ‘drop shippers’ refers to:
limited-service wholesalers that take title to goods and negotiate sales but never actually take possession of products.
Which of the following statements is true of services provided by commission merchants and brokers?
They offer the representation of competing product lines.
Manufacturers’ agents are intermediaries who:
represent two or more sellers and usually offer customers complete product lines
Which of the following is true of sales offices?
They bring together buyers and sellers temporarily.
A major goal of integrated marketing communications is to:
send a consistent message to consumers.
Converting meaning into a series of signs or symbols is known as _____
encoding
Anything that reduces a communication’s accuracy and clarity is called ______
noise
Feedback refers to:
a receiver’s response to a decoded message
In the typical communication process, the receiver is the person who:
decodes the message
______ refers to demand for a product category rather than for a specific brand of product.
primary demand
Which of the following methods is used to stimulate primary demand for a product?
Informing potential consumers about the product’s features and uses
Which of the following statements about promotion mix is true?
Advertising is extremely cost-efficient when it reaches a vast number of people at a low cost per person.
Which of the following is an advantage of advertising?
Even though the cost per person reached may be low, high absolute costs can limit, and sometimes preclude, use of advertising in a promotion mix.
communicating through the movement of head, eyes, arms, hands, legs, or torso is known as ____
kinesic communication
Which of the forms of communication occurs when either person varies the physical distance between them?
Proxemic communication
Which of the following is an example of tactile communication?
An executive shakes hands with his counterpart from the client company to seal a deal between the companies
____ is an activity that offers a direct inducement, such as a free sample, a game, or coupons, that offers an added value or incentive for the product to resellers, salespeople, or consumers.
sales promotion
Which of the following elements is usually a major component of a promotion mix for organizations selling to industrial markets?
Personal selling
For which of the following products does the promotion mix concentrate more on advertising than on personal selling?
Computers
Which of the following statements is true of promotion mixes with respect to the product life cycle?
In the growth and maturity stages, consumer services require heavy emphasis on advertising.
Promoting a product only to the next institution down the marketing channel is known as the _____
push policy
Which of the following depicts the flow of communication along the marketing channel with a pull promotional strategy?
producer-consumers
Which of the following statements about word-of-mouth marketing is true?
Word-of-mount marketing is linked to new customer acquisition when there is customer involvement and satisfaction.
Which of the following is a medium for electronic word-of-mouth communication?
Social network
_______ refers to an attempt to incite publicity and public excitement surrounding a product through a creative event.
buzz marketing
Viral marketing refers to:
the strategy of getting consumers to share a marketer’s message in a way that spreads dramatically and quickly
For which of the following product types is word-of-mouth marketing known to be most effective?
Expensive, luxury products
The strategic location of products or product promotions within entertainment media content to reach the product’s target market is known as ________.
product placement
Which of the following arguments is used by those who defend promotion of products such as tobacco and alcohol?
As long as it is legal to sell tobacco and alcohol, promoting that product should be allowed.
______ is paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media.
Advertising
Institutional advertising:
promotes organizational images, ideas, and political issues.
Advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product is known as ___
pioneer advertising
Which of the following is true of pioneer advertising?
It focuses on stimulating demand for a particular brand in a product category.
What is the purpose of reinforcement advertising?
To assure current users that they have made the right brand choice and tell them how to get the most satisfaction from that brand
Which of the following is usually the first step in the process of creation of an advertising campaign?
Identifying and analyzing the target audience
Which of the following is true of the advertising platform?
It consists of the basic selling points that an advertiser wishes to include in a campaign.
_____ refers to the total amount of money a marketer allocates for advertising for a specific time period.
Advertising appropriation
The objective-and-task approach to determine advertising appropriation involves:
determining what the firm wants to achieve with the campaign and then calculating the cost of all the tasks needed to attain these goals
Which of the following approaches to determining the advertising appropriation involves a high-level executive of the firm specifying the advertising budget for the advertising campaign, without taking other factors into consideration?
Arbitrary approach
A company’s ________ specifies the media vehicles to be used and the schedule for running advertisements.
media plan
_____ refers to the percentage of consumers in the target audience actually exposed to a particular advertisement in a stated period.
Reach
Which of the following types of media schedules is characterized by advertisements that run for set periods of time, alternating with periods in which no ads run?
flighting schedule
The storyboard for an advertisement refers to:
a blueprint that combines copy and visual material to show the sequence of major scenes in a commercial.
Why should an advertiser pick a magazine over a newspaper as a medium of advertising?
Magazines allow demographic selectivity for target markets.
Which of the following form(s) a part of the copy of an advertisement?
Color scheme
The physical arrangement of the illustration and copy of a print advertisement is known as the ______
layout
A(n) ________ refers to a posttest in which respondents are asked to identify advertisements they have seen recently but are not given any clues to help them remember.
unaided recall test
The traditional form of compensation for an advertising agency involved:
a commission from the media used for an advertisement campaign.
_____ refers to communication in news story form about the organization, its products, or both, transmitted through a mass medium at no cost.
publicity
a news release is:
a short piece of copy publicizing an event or a product.
A(n) ________ is a manuscript of up to 3,000 words prepared for a specific publication.
feature article
Which of the following research tools for evaluating public relations effectiveness involves content analysis of messages, readership surveys, or readability studies?
communications audit
______ identifies changes in public opinion affecting an organization.
environmental monitoring
Which of the following would an organization undertake as part of a communications analysis?
Conduct a content analysis of the advertising messages it uses
_____ refers to paid personal communication that attempts to inform customers and persuade them to buy products in an exchange situation.
Personal selling
Which of the following statements about personal selling is true?
Personal selling gives marketers the greatest freedom to adjust a message to satisfy customers’ information needs.
Which element of the personal selling process involves developing a database of potential customers?
Prospecting
Which of the following statements about referrals is true?
Referrals do not technically qualify to be classified under prospecting since they do not involve cold calling.
Which of the following tasks is associated with the preapproach element of the personal selling process?
Assessing credit histories and problems of potential customers
What type of approach does a salesperson use when he or she calls on potential customers without prior consent?
Cold canvas approach
Which of the following statements about the personal selling process is true?
Anticipating and countering an objection in a sales presentation is one of the best ways to countering objections, but is also a risky approach
A salesperson who sells to new customers and increases sales to current customers is known as a(n) _____
order getter
____ are support salespeople, usually employed by a manufacturer, who assist the producer’s customers in selling to their own customers.
missionary salespeople
Which of the following is an example of support personnel?
missionary salespeople
Relationship selling differs from traditional selling due to its:
adoption of a long term perspective..
Which of the following types of products is best suited for personal selling through the team selling approach?
Medical equipment
Which of the following suggestions should be followed for attracting and retaining a top sales force?
Sales personnel should be given on-the-job, individual instructions into the sales role
_______ refers to a sales manager’s responsibility that involves developing a list of qualified applicants for sales positions.
recruiting
Which of the following is measure of a firm’s sales goals stated in terms of profit?
return on investment
In which of the following conditions is a straight commission compensation plan for salespeople considered to be particularly useful?
When the company uses contractors and part-timers
Which of the following is a disadvantage of the straight salary compensation plan for salespeople?
Closer supervision of salespeople is required.
Which of the following is considered to be one of the most important factors affecting the routing and scheduling of sales calls?
Geographic shape of the sales territory
A retailer offers buy-one-get-one-free sales on its shoes.This is an example of _____
sales promotion
_______ are written price reductions used to encourage consumers to buy a specific product.
coupons
Cents-off offers, money refunds, and rebates are examples of ___
Sales promotion methods
______ are sales promotion methods in which individuals compete for prizes based primarily on chance.
consumer games
A(n) ________ is a temporary price reduction to resellers for purchasing specified quantities of a product.
buying allowance
A buy-back allowance refers to:
a sum of money given to a reseller for each unit bought after an initial promotion deal is over.
A(n) ________ is a gift to a retailer that purchases a specified quantity of merchandise.
dealer loader