Deck 13: Promotion and Pricing Strategies

Question 1

List under what four conditions firms would emphasize personal selling over advertising for sales promotion.

Answer 1

Customers are relatively few in number and are geographically concentrated.?The product is technically complex,involves trade-ins,or requires special handling.?The product carries a relatively high price.?The product moves through direct-distribution channels.

Question 2

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

Answer 2

In practicing integrated marketing communications (IMC),a firm coordinates all promotional activities to execute a unified,customer-focused promotional strategy.IMC identifies consumer needs and then shows how a company's products meet those needs.Marketers select the promotional media that best target and reach customers.Teamwork and careful promotional planning to coordinate IMC strategy components are important elements of these programs.

Question 3

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
_____ bases pricing decisions on attaining market share,the percentage of the market controlled by a certain product or company.

Answer 3

C

Question 4

Describe how the Internet has changed advertising and provide examples.

Question 5

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
The _____ is the combination of personal and non-personal selling to meet the needs of a firm's target customers and communicate its message to them.

Question 6

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
Including both inbound and outbound varieties,_____ is a type of personal selling that is conducted entirely by telephone.

Question 7

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
_____ involves messages that promote concepts,ideas,philosophies,or goodwill for industries,companies,organizations,or government entities.

Question 8

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

Question 9

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
Using _____,marketers coordinate all promotional activities to execute a unified,customer-focused promotional strategy.

Question 10

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

Question 11

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
Rather than relying on short-term price-cutting tactics like special sales or cents-off coupons,_____ is a strategy that is devoted to maintaining continuous low prices.

Question 12

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
_____ consists of displays or demonstrations that promote products when and where consumers buy them.

Question 13

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
_____ attempts to promote a product by generating consumer demand for it.

Question 14

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
_____ sets an intentionally high price relative to the prices of competing products.

Question 15

Differentiate between a pushing and a pulling strategy.

Question 16

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
A(n)_____ relies on personal selling and sales promotion to market an item to wholesalers and retailers in a company's distribution channels.

Question 17

Describe what a salesperson should do in the follow-up step of the sales process,and explain why it is important.

Question 18

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
_____ is a persuasive type of sales presentation that promotes a good or service whose benefits are not readily apparent or whose purchase decision requires a close analysis of alternatives.

Question 19

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
Non-personal stimulation of demand for a good,service,place,idea,event,person,or organization by unpaid placement of information in print or broadcast media is called _____.

Question 20

MATCHING
Complete the following using the terms listed.
A.breakeven analysis
B.promotional mix
C.volume objective
D.institutional advertising
E.EDLP
F.creative selling
G.point-of-purchase advertising
H.skimming pricing
I.pushing strategy
J.pulling strategy
K.integrated marketing communications
L.publicity
M.telemarking
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 21

The following are two elements of the marketing mix: ________ is informing,persuading,and influencing a purchase decision;________ is the exchange value for a good or service.

A)creative selling;order processing
B)personal selling;non-personal selling
C)promotion;price
D)pushing strategy;pulling strategy

Question 22

Explain what point-of-purchase (POP)advertising is and why it is effective.

Question 23

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 24

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 25

Explain the differences between public relations and publicity.

Question 26

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

A)Non-personal selling
B)Promotional strategy
C)Integrated marketing communications
D)Personal selling

Question 27

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

Question 28

Explain how marketers use breakeven analysis.

Question 29

Describe everyday low pricing (EDLP).

Question 30

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 31

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 32

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

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

Question 33

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 34

Ford is running ads emphasizing that it offers longer warranties than other automobile companies.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 35

Describe market based pricing and how it is used by companies.

Question 36

Explain the difference between trade-oriented promotions and consumer-oriented promotions.Provide an example of each.

Question 37

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

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

Question 38

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 39

A major portion of U.S.advertising is designed to ________.

A)accentuate product value
B)increase sales
C)provide information
D)differentiate the product

Question 40

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

Question 41

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 42

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

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

Question 43

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

A)use telemarketing
B)engage in missionary selling
C)meet prospects in a central location
D)set up a focus group

Question 44

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

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

Question 45

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

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

Question 46

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

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

Question 47

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 48

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 49

Tanya is an account representative for an office supply corporation who frequently provides demonstrations to business professionals.When someone complains about the company's fax machine,Tanya views 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 50

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

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

Question 51

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 52

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

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

Question 53

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

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

Question 54

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 55

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

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

Question 56

The process of finalizing a sale is the ________.

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

Question 57

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

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

Question 58

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

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

Question 59

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

A)growth stage
B)maturity stage
C)introductory stage
D)decline stage

Question 60

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 61

Assume a product costs $5 each.The variable cost per unit is currently $4,and fixed costs are $25,000.If the company can alter its production method such that variable costs fall to $3.50 and fixed costs rise to $30,000,what will happen to the breakeven point?

A)It will rise and fall later.
B)It will rise.
C)It will remain the same.
D)It will fall.

Question 62

Businesses often spend ________ promotion dollars on premiums-items given away for free or at a reduced cost.

A)all
B)half
C)six of every ten
D)no

Question 63

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 64

Volume objectives bases pricing decisions on ________.

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

Question 65

The method of determining the minimum sales volume needed at a certain price level to cover all costs is ________.

A)market share analysis
B)equilibrium pricing
C)return on sales
D)breakeven analysis

Question 66

Which of the following pricing objectives has the most influence on Rolex's pricing strategy?

A)profitability
B)prestige
C)meeting the competition
D)volume

Question 67

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)non-personal selling
D)order processing

Question 68

Public relations refers to an organization's communications and relationships with its:

A)customers.
B)employees and stockholders.
C)news media.
D)all of these answers are correct.

Question 69

In breakeven analysis,the costs that change with the level of production are considered ________ costs.

A)variable
B)recoverable
C)labor
D)fixed

Question 70

Elizabeth and Tom have an in-ground swimming pool installed in their back yard.About one week after installation,the salesperson telephones and asks if everything about the pool has met with their approval.The salesperson is ________.

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

Question 71

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

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

Question 72

In breakeven analysis,total cost is composed of ________.

A)total sales minus expenses
B)variable costs minus fixed costs
C)price divided by number of units sold
D)total variable costs and total fixed costs

Question 73

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

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

Question 74

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 75

On the end cap of an aisle at a grocery store,there is a display of breakfast cereals.This is called ________.

A)point of purchase advertising
B)trade show
C)premiums
D)specialty advertising

Question 76

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 77

A gift product distributed by mail,door to door,in a demonstration,or inside packages of another product is called a(n):

A)coupon.
B)premium.
C)sample.
D)expensive product.

Question 78

Trade promotion is ________.

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

Question 79

________ is the strategy in which an organization calculates total costs per unit and then adds markups to cover overhead costs and generate profits.

A)Pulling strategy
B)Skimming pricing
C)Volume objective
D)Cost-based pricing

Question 80

According to economic theory,the market price will be set according to:

A)supply and demand.
B)prestige.
C)EDLP.
D)pushing and pulling.