Deck 13: Promotion and Pricing Strategies

Question 1

MATCHING

A(n)_____ strategy sets an intentionally high price relative to the prices of competing products.

Answer 1

h

Question 2

MATCHING

The _____ is the combination of personal and nonpersonal selling to meet the needs of a firm's target customers and communicate its message to them.

Answer 2

b

Question 3

MATCHING

_____ promotes a good or service whose benefits are not readily apparent or whose purchase decision requires a close analysis of alternatives.

Answer 3

f

Question 4

MATCHING

_____ bases pricing decisions on market share,the percentage of the market controlled by a certain product or company.

Question 5

MATCHING

_____ consists of displays or demonstrations that promote products when and where consumers buy them.

Question 6

MATCHING

Pricing method that sets an intentionally high price relative to the prices of competing products.

Question 7

MATCHING

Businesses often conduct a(n)_____ to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Question 8

Describe the differences between personal selling and nonpersonal selling.

Question 9

MATCHING

A(n)_____ relies on personal selling and sales promotion to market an item to wholesalers and retailers in a company's distribution channels.

Question 10

MATCHING

During _____,marketers coordinate all promotional activities to execute a unified,customer-focused promotional strategy.

Question 11

What is sales promotion? Give some examples of common sales promotion techniques.

Question 12

MATCHING

_____ is when a business drops prices for a set period of time.

Question 13

What are the components of the promotional mix? Outline the advantages of the components of the promotional mix.

Question 14

Describe and provide examples of the two basic types of advertising.

Question 15

Explain the relationship between advertising and the product life cycle.

Question 16

Describe the circumstances when a firm is more likely to emphasize personal selling rather than advertising.

Question 17

MATCHING

In _____ the costs of local advertising are shared among channel partners.

Question 18

MATCHING

_____ involves messages that promote concepts,ideas,philosophies,or goodwill for industries,companies,organizations,or government entities.

Question 19

MATCHING

A ___________ pricing strategy sets a low price as a major marketing tactic

Question 20

Discuss how integrated marketing communications relates to a firm's overall promotional strategy.

Question 21

Advertising,sales promotion,direct marketing and public relations are examples of________.

A) order processing
B) personal selling
C) nonpersonal selling
D) creative selling

Question 22

Jiffy Lube puts a sticker on your windshield to remind you when you are due for your next oil change.This is an example of which promotional strategy objective?

A) Accentuate the product's value
B) Provide information
C) Stabilize sales
D) Differentiate the product

Question 23

Differentiate between skimming pricing and penetration pricing.

Question 24

Explain why companies and consumers often prefer sweepstakes to contests or games as a form of promotion.

Question 25

Integrated marketing communications would include all of the following EXCEPT ________.

A) direct mail
B) sales promotions
C) public relations
D) distribution

Question 26

Which of the following manufacturers and products would likely spend more on personal selling than on nonpersonal selling?

A) Johnson & Johnson,Band-Aids
B) General Mills,Cheerios
C) Boeing,737 jetliners
D) Toshiba,DVD players

Question 27

Differentiate between a pushing and a pulling strategy.

Question 28

Assume fixed costs equal $480,000.The price per unit is $10,and the variable cost per unit equals $8.Find the breakeven point in terms of both units sold and sales revenue.

Question 29

When a firm tries to differentiate its products,it often applies a concept known as ________.

A) positioning
B) the marketing mix
C) personal selling
D) product valuation

Question 30

In the movie,The Social Network,the actor portraying Mark Zuckerberg is featured wearing products by Gap and the North Face.This form of promotion is known as _________.

A) trade promotion
B) institutional advertising
C) creative selling
D) product placement

Question 31

Ford is running ads emphasizing that it offers longer warranties than other automobile companies.This is an example of which promotional strategy objective?

A) Differentiate the product
B) Stabilize sales
C) Provide information
D) Accentuate the product's value

Question 32

A major portion of advertising is designed to ________.

A) accentuate product value
B) differentiate the product
C) stimulate demand
D) provide information

Question 33

Describe the follow-up stage of the selling process.Why is this stage important?

Question 34

Explain how marketers breakeven analysis.

Question 35

In an effort to boost the entire pork industry,the National Pork Board sponsors an advertisement stating,"Pork.The Other White Meat." This type of promotion is called ________.

A) name recognition
B) media dominance
C) primary demand
D) media exposure

Question 36

Describe the four basic categories of pricing objectives.

Question 37

The buyer-seller communication in _________ occurs during a face-to-face meeting or via telephone,videoconference,or interactive computer link.

A) integrated marketing communications
B) personal selling
C) non-personal selling
D) promotional strategy

Question 38

Nike uses sports stars to increase sales by enhancing the public's ________ demand for their brand.

A) secondary
B) selective
C) primary
D) marketplace

Question 39

A company includes an "instant coupon" as part of a product's package,giving the buyer a reduction off the retail price.What is the company attempting to do?

A) Increase sales
B) Provide information
C) Stabilize sales
D) Differentiate the product

Question 40

Describe the relationship between price and quality.

Question 41

Businesses often spend ________ as much on personal selling as on advertising.

A) almost
B) twice
C) over three times
D) between five and ten times

Question 42

___________ advertising is used promote a specific viewpoint on a public issue.

A) Institutional
B) Cause
C) Persuasive
D) Comparative

Question 43

Trade promotion is ________.

A) used to promote goods or services to marketing intermediaries
B) often used to promote goods or services to ultimate consumers
C) primarily used to build goodwill
D) located at the manufacturers' facilities

Question 44

Dell Computer is offering $100 cash back on the purchase of a computer.This is an example of a(n)_______________.

A) specialty advertising
B) rebate
C) sample
D) premium

Question 45

Elgin Community College purchases golf balls engraved with the words "Elgin Community College," which are distributed at various college fairs in which it participates.These engraved golf balls are considered ________.

A) samples
B) point-of-purchase advertising
C) specialty advertising
D) premiums

Question 46

Mailing out samples is particularly useful in promoting ________.

A) concepts
B) services
C) new products
D) expensive products

Question 47

___________ involves the use of innovative,low-cost marketing efforts to attract customer attention.

A) Trade promotion
B) Institutional advertising
C) Creative selling
D) Guerrilla marketing

Question 48

A paid,non-personal sales communication usually directed at a large number of potential buyers is ________.

A) the media mix
B) sales promotion
C) advertising
D) publicity

Question 49

Informative advertising is most apt to be used in which stage of the product life cycle?

A) Maturity stage
B) Growth stage
C) Decline stage
D) Introductory stage

Question 50

A leading manufacturer of exercise bicycles ran a full-page advertisement in a health magazine comparing the price of its bicycle with that of a leading competitor.The manufacturer is using ________.

A) comparative advertising
B) reminder-oriented advertising
C) a pushing strategy
D) advocacy advertising

Question 51

Credit Union Central of Canada,through its direct-mail promotion,encourages its members to write letters to members of Parliament asking them to pass legislation favourable to credit unions.Such promotion is a form of ________ advertising.

A) advocacy
B) public
C) institutional
D) comparative

Question 52

Companies typically prefer sweepstakes to games or contests or because:

A) sweepstakes require more effort to organize.
B) the company can predict the number of winners in sweepstakes.
C) courts and rulings have limited the use of sweepstakes.
D) sweepstakes require product purchase to enter.

Question 53

Companies that provide ________ for NASCAR teams are eager to spend millions in exchange for a direct association with the biggest spectator sport in the United States.

A) public relations
B) sponsorships
C) specialty advertising
D) product advertising

Question 54

A disadvantage of using ________ as an advertising medium is their short life span.

A) outdoor ads
B) Internet ads
C) magazines
D) newspapers

Question 55

Sales of intangible products or services such as insurance often rely heavily on ________.

A) missionary selling
B) creative selling
C) order processing
D) sales promotion

Question 56

The goal of ________ advertising is to maintain awareness of the usefulness of a product.

A) comparative
B) advocacy
C) reminder-oriented
D) persuasive

Question 57

Sales personnel employed by companies such as IBM and Microsoft who offer technical assistance through consulting are primarily involved in ________.

A) missionary selling
B) creative selling
C) nonpersonal selling
D) order processing

Question 58

Television is an attractive advertising medium because it ________.

A) is relatively inexpensive
B) offers a rapidly growing network audience
C) offers mass coverage and flexibility
D) provides instant feedback that can be used to measure effectiveness

Question 59

__________ involves a one-on-one presentation to a prospective buyer.

A) Personal selling
B) Creative selling
C) Sales promotion
D) Public relations

Question 60

Dunkin' Donuts uses __________ advertising when it tells people that "hard-working" people prefer their coffee over the high-priced Starbucks.

A) corporate
B) comparative
C) informative
D) reminder-oriented

Question 61

Although a salesperson's work can vary significantly from one company to another,it usually involves a mix of creative selling,missionary selling,and __________.

A) personal selling
B) sales promotion
C) order processing
D) indirect selling

Question 62

Promotion that is aimed at the ultimate consumer with the goal of generating demand for the good or service is based on a(n)________.

A) cooperative strategy
B) pulling strategy
C) pushing strategy
D) emphasis on personal selling

Question 63

Wal-Mart's pricing objective is based primarily on ________ while a jewelry store's pricing objective is based primarily on ________.

A) profitability;prestige
B) profitability;profitability
C) volume;prestige
D) volume;profitability

Question 64

Dell Computer provides inner city schools with free computers and wireless Internet access.This is an example of ________.

A) sales promotion
B) public relations
C) personal selling
D) creative selling

Question 65

Salespeople determine if prospects have the financial ability and authority to buy through ________.

A) approach
B) follow-up
C) handling objections
D) qualifying

Question 66

Elizabeth and Tom have had an in-ground swimming pool installed in their backyard.About one week after installation,the salesperson telephoned and asked if everything about the pool met with their approval.The salesperson is ________.

A) prospecting
B) trying to get a repeat order
C) conducting a follow-up
D) overcoming objections

Question 67

What can a firm do if it is too difficult or too expensive to have salespeople meet all potential customers in person?

A) Set up a focus group
B) Meet prospects in a central location
C) Engage in missionary selling
D) Use telemarketing

Question 68

Volume objectives bases pricing decisions on ________.

A) image goals and status quo pricing
B) supply and demand
C) breakeven analysis
D) market share

Question 69

Melissa is a marketing manager for the Small Business Network at American Express and regularly sends materials to various companies to participate in credit card promotions.Melissa is employing a ________ strategy.

A) sales promotion
B) pulling
C) public relations
D) pushing

Question 70

A pushing promotional strategy is ________.

A) designed to promote one item at a time and place it near the location of the actual purchase decision
B) designed to encourage consumers to ask for the product if the retailer does not carry it
C) primarily used when goods or services are marketed to the ultimate consumer
D) designed to market the product,product line,or service to wholesalers and retailers

Question 71

Marketers using a pushing promotional strategy might offer which of these services to marketing intermediaries?

A) Cash discounts
B) Trade discounts
C) Cooperative advertising allowances
D) Promotional materials

Question 72

Tanya is an account representative for an office supply corporation who frequently provides demonstrations to business professionals.When someone complained about the company's fax machine,Tanya viewed the situation as an opportunity to ________.

A) determine if the prospect has the ability to pay for the machine
B) propose alternative purchases
C) revise her approach to the prospect
D) extend the presentation and answer questions

Question 73

Shannon sells furniture,and a couple in her store tells her they're impressed with a particular living room couch.Shannon should ________.

A) show them a more expensive model
B) persuade them to buy furniture for their entire home
C) point out less-than-stellar aspects of the model
D) attempt to close the sale

Question 74

Assume a company wants to increase its profitability.Which of the following would be inconsistent with the company's objective?

A) Operate more efficiently
B) Maintain price while increasing the size or amount of the product
C) Reduce costs
D) Raise prices

Question 75

When a pharmaceutical company uses the phrase "ask your doctor" in its ads,the company is using a ________ strategy to appeal directly to the public instead of physicians alone.

A) public relations
B) pulling
C) pushing
D) sales promotion

Question 76

__________ involves an unpaid placement of information used to stimulate demand for a product or service.

A) Point-of-purchase advertising
B) Publicity
C) Specialty advertising
D) Cause advertising

Question 77

The salesperson's task of identifying potential customers is known as ________.

A) follow-up
B) approach
C) demonstration
D) prospecting

Question 78

The process of finalizing a sale is the ________.

A) demonstration
B) closing
C) approach
D) presentation

Question 79

The future attitudes of most prospects are affected by the first impression they form of the salesperson.Therefore,salespeople ________.

A) must be selective in identifying prospects
B) must be tactful when they respond to objections
C) should carefully prepare their approach to potential customers
D) should use the same sales pitch to all customers

Question 80

The use of literature and unusual visual aids is part of the ________.

A) approach
B) demonstration
C) closing
D) qualifying stage