Exam 2 Q&As

Chapter 11: Pricing Products and Services

What’s the term which involves setting a high price so that quality or status conscious
consumers will be attracted to the product and buy it?
Prestige pricing

What’s the term which involves setting a low initial price on a new product to appeal
immediately to the mass market?
Penetration pricing

What’s the marketing of two or more products in a single package price?

Bundle pricing

What type of pricing involves adding a fixed percentage to the cost of all items in a specific
product class?
Standard markup pricing

What type of pricing involves summing the total unit cost of providing a product or service and
adding a specific amount to the cost to arrive at a price?
Cost plus pricing

What type of pricing involves setting the highest initial price that customers who really desire
the product are willing to pay when introducing a new or innovative product?
Skimming pricing

What type of pricing involves deliberately selling a product below its customary price, not to
increase sales, but to attract customer’s attention in hopes that they’ll buy other products with
large markups as well?
Loss leader pricing

What type of pricing consist of (1) Estimating the price that ultimate consumers would be
willing to pay for a product, (2) Working backward thru markups taken by retailers and
wholesalers to determine what price to charge wholesalers, and then (3) Deliberately adjusting
the composition and features of the product to achieve the target price to consumers?
Target pricing

What is perceived benefits divided by price?

Value

What type of pricing involves setting prices a few dollars or cents under an even number?
Odd-even pricing
Chapter 12: Managing Marketing Channels and Supply Chain

What consists of individual and firms involved in the process of making a product or service
available for use or consumption by consumers or industrial?
Marketing channel

What involves an arrangement whereby a firm reaches different buyers by employing two or
more different types of channels for the same basic products?
Dual distribution

What is the level of distribution whereby a firm tries to place its products and services in as
many outlets as possible?
Intensive distribution

What is a level of distribution density whereby only one retailer in a specific geographical area
carries the firm’s products?
Exclusive distribution

What is a level of distribution density whereby a firm selects a few retailers in a specific
geographical area to carry its products?
Selective distribution

What consists of those activities that focus on getting the right amount of the right products to
the right place at the right time at the lowest possible cost?
Logistics

What consists of a sequence of firms that perform activities required to create and deliver a
product or service to ultimate consumers or industrial users?
Supply chain

What are the 3 criteria that determine which marketing channel to choose?
Most profitable, best coverage of target markets, & best satisfy buyers requirements
Chapter 13: Retailing and Wholesaling

What describes how many different types of products a store carries and in what assortment?
Merchandise line

What means that the store carries a large assortment of each product?
Depth of product line

What describes the variety of different product items a store carries?

Breadth of product line

What is the merchandising term used for offering several unrelated product lines in a single
store?
Scrambled merchandising

What are independently opened firms that take title to the merchandise they handle?
Merchant wholesalers

Chapter 14: Interactive and Multichannel Marketing

____ are electronic shopping agents or robots that comb websites to compare prices and
products or service features
bots

____ is the growing practices of not only customizing a product or service but also personalizing
the marketing and overall shopping and buying interaction for each customer
customization

_____ is the practice of changing prices for products and services in real time in response to
supply and demand conditions
dynamic pricing

what demographic describe most customers on the inerter?

Younger, more affluent, more educated
Chapter 15: Integrated Marketing Communication and Direct Marketing

What’s the concept of designing marketing communications programs that coordinate all
promotional activities to provide a consistent message across all audience
Integrated communication marketing

What’s the combination of one or more communication tools used to (1) inform, (2) persuade,
(3) remind them of benefits
Promotional mix

What’s any paid form of nonpersonal communication about an organization, product, service,
or idea by an identifies sponsor?
Advertising

What’s a nonpersonal, indirectly paid presentation of an organization, product, or service?

Publicity

What is shot-term inducement of value offered to arouse interest in buying a product or

service?
Sales promotion

What involves directing the promotional mix to channel members to gain their cooperation in
ordering and stocking the product?
Push strategy

What budget involves allocating funds to promotion whereby the company: (1) determines
promotion objectives, (2) outlines the task to accomplish these objectives, (3) determines the
promotion cost of performing these task
Objectives and task
Chapter 16: Advertising, Sales Promotion, and Public Relations

What’s any paid for of nonpersonal communication about an organization, product, service, or
idea by an identified sponsor?
Advertisement

What are 3 forms of product advertisement?

Pioneering, competitive, reminder

What is the number of different people or household exposed to an advertisement?

Reach

What is the average number of times a person in the target is exposed to a message or
advertisement?
Frequency

What is the reference number used by advertisers that is obtained by multiplying reach by
frequency?
Cost Rating Points

What is the cost of reaching 1000 individuals or household with the advertising message in a
given medium called?
Cost per thousands

What consists of advertising programs by which a manufacturer pays percentage of the

retailers local advertising expense for advertising the manufacturers products?
Cooperative advertising

What is an advertising agency that provides the most complete range of service, including
market research, media selection, copy development, artwork, and production?
Full-service agency

What are advertising agencies that specialize in one aspects of the advertising process, such as
providing creative services to develop the advertising copy, buying previously unpurchased
media space, or providing internet services?
Limited-service agency

What agencies consist of the company’s own advertising staff, who may provide full or limited
range of services?
In-house agencies
Chapter 17: Using Social Media and Mobile Marketing to Connect with Consumers

This is the term used when we are talking about medias acoustic, visuals, and personal contact
Media richness

This is the term used when we are talking about social media when people let other know
about themselves
Self-disclosure

Which form of social media should a brand manager use if he/she wants to explain the benefits
of a complex product?
YouTube

Online Media where users submit news, photos and video which may have a feedback process
is called?
Social media

Social media can be classified based on ___ and ___

Media richness and self-disclosure

Chapter 18: Personal Selling and Sales Management

What consists of specific goals assigned to a salesperson, sales team, branch slaes office, or
sales district for a stated time period/
Sales Quota

What is the practice of building ties to customers based on a salespersons attention and
commitment to customer needs over time?
Relationship Selling

Who processes routine order or reorders for product that were already sold by the company?
Order taker

Who sells in a conventional sense and identifies prospective customers, provides customers
with information, persuades customers to buy, closes sales, and follow up on customer use of a
product or service?
Order getter

Name steps in personal selling process?

Prospecting, preapproach, approach, presentation, close, and follow-up
What is a sales presentation format that emphasizes probing and listening by the salesperson
to identify need and interests of prospective buyers?
Need-satisfaction presentation

What is a need-satisfaction presentation format that focuses on problem identification, where

the salesperson serves as an expert on problem recognition and resolution?
Consultative selling

At the ___ stage in the personal selling process, a salesperson gains a prospects attention,
stimulates interest, and builds the foundation for the sales presentation
Approach

At the ___ stage in the personal selling process, a salesperson begins converting a prospect in a
customer by creating a desire for the products
Presentation

At which stage of the personal selling process would a salesperson obtain a purchase
commitment?
Close

When a salesperson in the Apple store asks, “will that be charge or cash” she has executed
which state of the personal selling process?
Close

The ability to understand ones own emotions and the emotions of people with whom one
interact on a daily basis is referred to as?
Emotional intelligence

What is the term for a salesperson whose earning are directly tied to the sales or profits he
generates?
Straight Commission