Question 1

The benefits provided by a brand name for a buyer include reduced search time,prestige,and quality assurance.

Accepted Answer

A brand name can offer several benefits to a buyer, including making it easier to find a desired product, signaling prestige or status, and providing assurance of the product's quality.

Question 2

A single product line may contain several competing brands.

Accepted Answer

It is possible for a single product line to include multiple brands that may compete with each other based on factors such as price, quality, and features. For example, a company that produces multiple types of toothpaste under different brand names may be competing with itself within its own product line.

Question 3

A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.

Accepted Answer

A high-low pricing strategy typically involves regularly offering sales or discounts, which can condition consumers to wait for the sale prices rather than paying the regular prices.

Question 4

An important reason for the popularity of direct marketing is that many people enjoy developing a personal relationship with a salesperson who comes directly to their home or place or work.

Accepted Answer

Direct marketing is popular because it allows businesses to target specific audiences, measure results, and reduce costs, not primarily because of personal relationships with salespeople.

Question 5

Creating a blog is a great way to interact with customers.

Accepted Answer

Creating a blog allows businesses to connect with their customers by sharing valuable information and engaging in conversations through comments and social media. It provides a platform for brand storytelling, creating brand loyalty, and improving customer relations.

Question 6

Economists say that intermediaries add value and that value greatly exceeds the cost of a product.

Accepted Answer

Intermediaries add value by facilitating transactions and improving efficiency, but the value they add does not necessarily exceed the cost of the product itself.

Question 7

Cost-based pricing adds a desired profit margin to the cost of producing a product.

Accepted Answer

Cost-based pricing involves adding a desired profit margin to the cost of producing a product.

Question 8

Low prices can help retailers create an attractive total product offer.

Accepted Answer

Low prices can make a retailer's total product offer more attractive to consumers, especially when combined with other factors such as quality, convenience, and customer service. Lower prices can also increase the volume of sales, which can compensate for lower profit margins. However, retailers should be careful not to set prices so low that they damage their brand reputation or can't cover their costs.

Question 9

Combining a firm's promotional tools and resources to create a favourable brand image is the goal of integrated marketing communication.

Accepted Answer

Integrated marketing communication is a strategy that involves combining a company's various promotional tools and resources, such as advertising, public relations, sales promotion, and personal selling, to create a unified and consistent brand image in the minds of consumers. The overall goal is to increase brand awareness, influence consumer behavior, and ultimately drive sales.

Question 10

Mystic Beverages,a producer of soft drinks,wants to differentiate its products from those of other soft drink providers.To implement this strategy successfully will require Mystic to create recognizable differences in the physical product it offers.

Accepted Answer

Differentiation can be achieved through branding, marketing, packaging, or customer service, not just physical product differences.

Question 11

Pattie operates the Zestee Burgers restaurant.The cost of pickles,onions,buns,ketchup,and meat patties would all be considered variable costs for her type of business.

Accepted Answer

Variable costs vary with the level of production or sales, and the cost of pickles, onions, buns, ketchup, and meat patties would all fluctuate based on how many burgers are being made and sold at Pattie's restaurant. Therefore, they are considered variable costs.

Question 12

The key to mobile marketing is to keep the message brief.

Accepted Answer

Mobile devices have limited screen space, so it is important to keep messages concise and to the point to effectively convey the intended information.

Question 13

The trend towards large,self-service retailers has increased the importance of packaging.

Accepted Answer

The statement is true. With the rise of self-service retailers, packaging plays a crucial role in catching the attention of customers and protecting products during transportation and storage.

Question 14

A distribution strategy that puts the product into as many retail outlets as possible is known as an intensive distribution strategy.

Accepted Answer

An intensive distribution strategy aims to make the product available in as many retail outlets as possible, including convenience stores, supermarkets, and online marketplaces, in order to maximize its reach and availability to customers.

Question 15

To be effective and maintain its independence,the public relations department should avoid establishing close relationships with the media,community leaders,and other corporate stakeholders.

Accepted Answer

While it is important for the public relations department to maintain some distance and objectivity in its relationships with the media, community leaders, and other stakeholders, establishing close relationships can also be beneficial in terms of building trust, understanding their perspectives and needs, and effectively communicating the organization's messages. The key is to strike a balance between maintaining independence and building relationships based on mutual respect and integrity.

Question 16

Vending machines are used primarily to sell goods where consumers have little interest in convenience.

Accepted Answer

Vending machines are used primarily to sell goods where consumers value convenience, such as snacks or drinks in public places or offices.

Question 17

One of the benefits of advertising on the Internet is that it provides a way to link firms and customers so that they can learn more about each other.

Accepted Answer

Advertising on the Internet allows firms to provide clickable links to their websites or social media pages, which can provide customers with more information about the company and its products/services. This can facilitate a two-way conversation between the firm and the customer, allowing both to learn more about each other's needs and interests.

Question 18

Miranda is a marketing manager for a large manufacturer.Her boss has asked her to evaluate a new product idea.One of the things Miranda wants to determine is how much of this product her firm would have to sell in order to break even.In order to compute this break-even level of sales,she will need to know the price of the good,the total fixed costs,and the variable cost of producing each unit.

Accepted Answer

To calculate the break-even point, the price of the good, the total fixed costs, and the variable cost of producing each unit are necessary inputs.

Question 19

A firm's promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange.

Accepted Answer

A firm's promotion mix refers to the various promotional tools such as advertising, sales promotion, personal selling, public relations, and direct marketing that are used to communicate and persuade consumers to engage in an exchange.

Question 20

Sometimes a firm will lower prices below their costs in order to build a customer base.

Accepted Answer

This pricing strategy is called penetration pricing, where a firm intentionally sets prices lower than their costs to attract customers and gain market share. The goal is to eventually increase prices once the customer base is established.

Quiz 15: Managing the Marketing Mix: Product, Price, Place, and Promotion