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marketing > exam 3 > Flashcards

exam 3 Flashcards

1
Q

____ is related directly to total revenue and profit

A

price

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2
Q

____ = total revenue - total costs

A

profit

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3
Q

____ = (price x quantity sold) - total costs

A

profit

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4
Q

price is the only marketing mix variable that can be changed ____

A

rapidly

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5
Q

To compete effectively, firm must be the lowest ____

A

price

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6
Q

Firms that compete on price tend to market ____ products

A

standardized

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7
Q

____ ____ with competitors is a danger

A

price war

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8
Q

another danger of price competition is that the brand can become ____ to price

A

secondary

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9
Q

Stages for Establishing Prices
1. Development of pricing objectives
2. Assessment of target market’s evaluation of price
3. Determination of demand
4. Analysis of demand, cost, and profit relationships
5. Evaluation of competitor’s prices
6. Selection of a basis for pricing
7. Selection of a pricing strategy
8. Determination of a specific price

A
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10
Q

____ ____ are goals that describe what a firm want to achieve through pricing

A

pricing objectives

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11
Q

Some pricing objectives a company might set:
- profit
- return on investment
- increase sales
- market share
- cash flow
- status quo
- reinforce or establish product quality

A
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12
Q

The importance of price varies depending on the type of ____, target market, and ____ situation

A

product, purchase

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13
Q

A ____ ____ is a graph of the quantity of products a firm expects to sell at various prices if other factors remain constant

A

demand curve

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14
Q

demand is ____ related to price for most products

A

inversely

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15
Q

demand depends on ____, ____, and ____ factors in the marketing mix

A

quality, promotion, distribution

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16
Q

Factors that can influence demand:
- changes in buyers’ needs
- variations in the effectiveness of other marketing mix variables
- presence of substitutes (competition)
- dynamic environment

A
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17
Q

Organizations can set prices by anticipating demand ____ (elasticity)

A

fluctuations

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18
Q

The ____ ____ ____ ____ is a measure of the sensitivity of demand to changes in price

A

price elasticity of demand

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19
Q

____ is the percentage change in quantity demanded relative to a given percentage change in price

A

elasticity

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20
Q

____ ____ is when the change in price causes an opposite change in total revenue

A

elastic demand

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21
Q

____ is an example of a product that has inelastic demand

A

gasoline

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22
Q

____ ____ examines what happens to a firm’s costs and revenues when production changes by one unit

A

marginal analysis

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23
Q

types of potential costs are ____ costs and ____ costs

A

fixed, variable

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24
Q

____ ____ do not vary with changes in the number of units produced or sold

A

fixed costs

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25
Q

____ ____ vary directly with changes in the number of units produced or sold

A

variable costs

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26
Q

____ ____ is the point at which costs of production equal revenue from sales

A

breakeven point

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27
Q

We can base our price on things like:
- cost
- demand
- competition

A
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28
Q

____-____ ____ is pricing based on the level of demand for the product

A

demand-based pricing

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29
Q

When demand for a specific flight is higher, the fares are ____, and when demand is lower, the fares will be ____

A

higher, lower

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30
Q

____ ____ is a course of action designed to achieve pricing objectives

A

pricing strategy

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31
Q

Types of pricing strategies
- new-product pricing
- differential pricing
- psychological pricing
- product-line pricing
- promotional pricing

A
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32
Q

____ ____ is charging the highest possible price that buyers who most desire the product will pay

A

price skimming

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33
Q

____ ____ is setting prices below those of competing brands to penetrate a market and gain a significant market share quickly

A

penetration pricing

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34
Q

____ ____ is charging different prices to different buyers for the same quality and quantity of product - usually happens in different outlets

A

differential pricing

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35
Q

____ ____ is establishing a final price through bargaining between seller and customer

A

negotiated pricing

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36
Q

____ ____ is a temporary reduction of prices on a patterned or systematic basis

A

periodic discounting

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37
Q

____ ____ ____ is a temporary reduction of prices on an unsystematic basis

A

random discounting pricing

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38
Q

____-____ ____ is setting prices using odd numbers that are slightly below whole-dollar amounts

A

odd-number pricing

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39
Q

____-____ ____ is packaging together two or more units of a product and selling them at a single price

A

multiple-unit pricing

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40
Q

____ ____ is pricing a product at a moderate level and displaying it next to a more expensive model or brand

A

reference pricing

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41
Q

____ ____ is packaging together two or more complementary products and selling them at a single price

A

bundle pricing

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42
Q

____ ____ ____ is pricing products low on a consistent basis

A

everyday low prices

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43
Q

____ ____ is pricing certain goods on the basis of tradition

A

customary pricing

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44
Q

____ ____ is selling the primary product cheaply and pricing refills high

A

captive pricing

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45
Q

____ ____ are products priced below the usual markup, near cost, or below cost

A

price leaders

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46
Q

____-____ ____ is advertised sales or price cutting linked to a holiday, season, or event

A

special-event pricing

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47
Q

____ ____ is setting a price at a specific level and comparing it with a higher price

A

comparison discounting

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48
Q

____ is the decisions and activities involved in making products available to customers when and where they want to purchase them

A

distribution

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49
Q

____ ____ is the activities associated with the flow and transformation of products from raw materials through to the end customer

A

supply chain

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50
Q

____ is the key foundation of the supply chain

A

distribution

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51
Q

____ ____ is the total set of managerial activities used by an organization to transform resource inputs into goods, services, or both

A

operations management

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52
Q

____ ____ is planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption in order to meet customers’ needs and wants

A

logistics management

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53
Q

____ ____ are the processes that enable the progress of value from raw material to final customer and back to redesign and final disposition

A

supply management

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54
Q

____-____ ____ is a set of approaches used to integrate the functions of operations, logistics, supply, and marketing channel management so products are produced and distributed in the right

A

supply-chain management

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55
Q

The ____ ____ is a group of individuals and/or organizations that direct & manage the flow of products from producers to customers within the supply chain

A

marketing channel

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56
Q

The primary role of marketing channels is to make products ____

A

available

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57
Q

Providing ____ ____ should be the driving force behind marketing channel decisions

A

customer satisfaction

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58
Q

____ ____ link producers to other intermediaries or ultimate consumers through contractual arrangements and the purchase and resale of products

A

marketing intermediaries

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59
Q

Channel decisions determine a product’s ____ ____ and ____

A

market presence, accessibility

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60
Q

____ is the state of being useful, profitable, or beneficial

A

utility

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61
Q

____ ____ is making products available when the customer wants them

A

time utility

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62
Q

____ ____ is making products available in locations where customers wish to purchase them

A

place utility

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63
Q

____ ____ is when the customer has access to the product to use or to store for future use

A

possession utility

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64
Q

____ ____ is assembling, preparing, or otherwise refining the product to suit individual customer needs

A

form utility

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65
Q

____ ____ uses all available outlets for distributing a product

A

intensive distribution

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66
Q

Intensive distribution is appropriate for ____ products

A

convenience

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67
Q

____ ____ uses only some available outlets to distribute a product

A

selective distribution

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68
Q

Selective distribution is appropriate for ____ products

A

shopping

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69
Q

____ ____ uses a single outlet in a fairly large geographic area

A

exclusive distribution

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70
Q

Exclusive distribution is used for products purchased ____ at best

A

infrequently

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71
Q

Benefits of an effective supply chain:

  • Can provide a competitive advantage for many marketers
  • Use resources effectively
  • Competitors most likely use the same supply chain
A
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72
Q

To create an effective supply chain:

  • Integrate activities so all functions are coordinated.
  • Focus on competitive priorities of speed, quality, cost, or flexibility.
  • The supply chain is a critical part of the marketing plan
A
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73
Q

____ ____ is the ability of one channel member to influence another member’s goal achievement & activities

A

channel power

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74
Q

The ____ ____ is the dominant leader of a marketing channel or a supply chain

A

channel captain

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75
Q

____ ____ is activities used to move products from producers to consumers and other end users

A

physical distribution

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76
Q

____ is the contracting of physical distribution tasks to third parties

A

outsourcing

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77
Q

____ ____ is the time needed to complete a process

A

cycle time

78
Q

____ ____ is developing and maintaining adequate assortments of products to meet customers’ needs

A

inventory management

79
Q

____ are the shortages of products

A

stockouts

80
Q

____ ____ is an inventory level that signals the need to place a new order

A

reorder point

81
Q

(order lead time x usage rate) + safety stock =

A

reorder point

82
Q

____ ____ ____ is the average time lapse between placing the order and receiving it

A

order lead time

83
Q

____ ____ is the rate at which inventory is used/sold

A

usage rate

84
Q

____ ____ is the extra inventory a firm keeps

A

safety stock

85
Q

____-____-____ is when supplies arrive just as they are needed for use in production or for resale

A

just-in-time

86
Q

To promote effectively, marketers need to ____ clearly with consumers, messages must be ____ and received, messages must be ____ and motivational, and messages must be ____

A

communicate, delivered, understandable, integrated

87
Q

____ ____ ____ is coordination between promotion and other marketing efforts in communicating with customers

A

integrated marketing communications

88
Q

The goal of IMC is to send a ____ message to customers

A

consistent

89
Q

IMC allows an organization to ____ and manage its promotional efforts

A

coordinate

90
Q

IMC enables ____ of promotion elements

A

synchronization

91
Q

IMC improves the ____ and ____ of promotion budgets

A

efficiency, effectiveness

92
Q

___ is the right mix of communications vehicles to accomplish your objectives

A

IMC

93
Q

IMC is the ____ of these communications vehicles

A

integration

94
Q

___ is the most cost-effective marketing program to promote the business

A

IMC

95
Q

All messages, themes, graphics, copy, and production values are consistent, coordinated, and synergistic in ___

A

IMC

96
Q

____ is the creation of a whole that is greater than the sum of its parts

A

synergy

97
Q

The next effect is that a marketing campaign is more efficient because it is ____

A

synergistic

98
Q

____ is using words, sounds, symbols, signs, or behaviors to deliver information to someone else

A

communication

99
Q

A ____ is a person, group, or organization with information it tries to share with a receiver or an audience

A

source

100
Q

A ____ is an individual, group, or organization that gets and decodes a coded message

A

receiver

101
Q

The ____ ____ is converting signs or symbols into specific meaning (interpretation, perception is reality)

A

coding process

102
Q

A ____ ____ is the way a coded message from the source is delivered to the receiver

A

communications vehicle

103
Q

The ____ ____ is converting signs or symbols into concepts or ideas

A

decoding process

104
Q

____ is anything that reduces a communication’s clarity and accuracy

A

noise

105
Q

____ is a receiver’s response to a decoded message

A

feedback

106
Q

A ____ ____ is a limit on the volume of information a communications vehicle can handle effectively

A

vehicle capacity

107
Q

Objectives of IMC

  1. create awareness
  2. stimulate demand
  3. encourage product trial
  4. identify prospects
  5. stimulate word of mouth
  6. retain loyal customers and reach new ones
  7. facilitate retail and wholesale support
A
108
Q

For a new product or line extension, build ____ months before it is released

A

awareness

109
Q

____ ____ is demand for a product category rather than a specific brand

A

primary demand

110
Q

____ ____ is demand for a specific brand

A

selective demand

111
Q

Methods of encouraging product trial:
- free samples
- coupons
- test drives
- limited free-use offers
- contests
- games

A
112
Q

Advertisements that request a response help to ____ ____

A

identify prospects

113
Q

Costs of retaining customers are ____ than costs of acquiring new ones

A

lower

114
Q

Producers ____ resellers so resellers will sell their products throughout the supply chain

A

support

115
Q

The ____ ____ is a combination of promotional methods used to promote a specific product

A

promotion mix

116
Q

Four elements of the promotion mix
1. advertising
2. personal selling
3. public relations
4. sales promotion

A
117
Q

____ is a paid, non-personal communication about an organization and its products transmitted to a target audience through mass media

A

advertising

118
Q

Advantages of advertising
- cost-efficient when it reaches a vast number of people at a low cost per person
- lets the source repeat the message several times via a targeted media plan
- adds to a product’s value, enhances image
- can further a brand’s positioning

A
119
Q

Disadvantages of advertising
- high absolute dollar outlay
- rarely provides rapid feedback
- difficult to measure its effects on sales
- less persuasive than personal selling

A
120
Q

____ ____ is communicating directly with integrated target via mail, email, phone, personal contact

A

direct marketing

121
Q

____ is the sponsoring of certain activities, trade shows, etc.

A

sponsorship

122
Q

____ and ____ ____ are becoming its own method of communications

A

internet, social media

123
Q

____ ____ ____ ____ are personal informal exchanges of communication shared by customers about products, brands, and companies

A

word of mouth communications

124
Q

____ ____ strategically locates products or product promotions within entertainment media content to reach the product’s target market

A

product placement

125
Q

____ ____ is a paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation

A

personal selling

126
Q

____ ____ is a broad set of communication efforts to create and maintain favorable relationships between an organization and its stakeholders

A

public relations

127
Q

____ is a component of public relations

A

publicity

128
Q

____ ____ is an activity or material that acts as a direct inducement, offering added value or incentive for the product to resellers, salespeople, or consumers

A

sales promotion

129
Q

With a ____ target market, promotion mix may emphasize personal selling

A

smaller

130
Q

With a ____ target market, promotion mix may be advertising and sales promotion

A

larger

131
Q

Personal selling is used when the customers are concentrated in a ____ area

A

small

132
Q

Regional or national advertising is used when the customers are ____ and dispersed

A

numerous

133
Q

high-priced products use ____ ____

A

personal selling

134
Q

low-priced products use ____

A

advertising

135
Q

____ ____ is promoting a product only to the next institution down the marketing channel (supply chain)

A

push policy

136
Q

____ ____ is promoting a product directly to customers

A

pull policy

137
Q

____ ____ is defined by the use of numerous digital tactics and channels to connect with customers where they spend much of their time: online

A

digital marketing

138
Q

____ ____ is electronic media that function using digital codes; refers to media available via computers, cellular phones, smartphones, and other digital devices that have been released in recent years

A

digital media

139
Q

Digital marketing allows marketers to deliver messages to people in ____ ____

A

real time

140
Q

Digital marketing all starts with a good ____ and proper and adequate ____

A

website, promotion

141
Q

More than ____% of people conduct internet product information searches prior to making a purchase

A

90

142
Q

_____ ____ ____ is optimizing a website to “rank” higher in search engine results pages, thereby increasing the amount of organic (or free) traffic website receives

A

search engine optimization

143
Q

____ ____ ____ focuses on the content “on the page” when someone is viewing the website

A

on page SEO

144
Q

____ ____ ____ is content that exists when a viewer is “off the page”. The number of publishers that link to you, and the relative “authority” of those publishers, affect how highly you rank for the keywords you care about

A

off page SEO

145
Q

____ ____ is the backend of a website and how pages are coded, the goal to increase the website’s loading speed and keyword response

A

technical SEO

146
Q

____ have caused consumer-generated information to gain importance

A

trends

147
Q

____ ____ is content-led ads alongside non-paid content that is not meant to be disruptive to the user

A

native advertising

148
Q

Marketing roles
- branding
- website traffic
- customer engagement
- customer insights & feedback

A
149
Q

branding in social media is meant to create ____ ____

A

customer engagement

150
Q

Marketers must target their messages based on their ____ ____ and the age preferences in the digital world

A

target audiences

151
Q

____ are web-based journal where writers can editorialize and interact with other Internet users

A

blogs

152
Q

____ has the highest conversion rate (generating the most interest and activity) than other content such as ads and page blockers

A

video

153
Q

____-____-____ measure how many click on the ad to go to the website or offer

A

click-thru-rates

154
Q

____ ____ is matching ads with content or specific keywords displayed by the user at that moment

A

contextual targeting

155
Q

____ ____ is when advertisers place creative on sites based on what users do and what they search on a particular site

A

behavioral targeting

156
Q

____ are better able to regulate the information that they view

A

consumers

157
Q

____ have limited control over the content to which users are exposed

A

marketers

158
Q

____ allow access to digital networks from a variety of mobile devices

A

apps

159
Q

____ is the biggest issue in the digital world

A

privacy

160
Q

____ is paid, nonpersonal communication about an organization and its products transmitted to a target audience through mass media

A

advertising

161
Q

In ____ ____, companies use “non-paid” forms of communication intended to build image or correct a negative situation

A

public relations

162
Q

____ ____ is advertising that promotes organizational stances and positions on political issues

A

advocacy advertising

163
Q

____ ____ is advertising that tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product

A

pioneer advertising

164
Q

____ ____ is advertising that promotes the uses, features, and benefits of a particular product

A

product advertising

165
Q

____ ____ is advertising that tries to stimulate demand for a specific brand by promoting its features, uses, and advantages relative to competing brands

A

competitive advertising

166
Q

____/____ ____ is advertising used to remind customers about an established brand’s uses, characteristics, and benefits. Reinforces the brand image and a consumer’s decision

A

product/reminder advertising

167
Q

____ ____ is advertising that compares the sponsored brand with one or more identified brands on the basis of one or more product characteristics

A

comparative advertising

168
Q

A(n) ____ ____ is the creation and execution of a series of advertisements to communicate with a particular target audience

A

advertising campaign

169
Q

____ are employed by companies, usually under contract. They are involved in the creation and implementation of campaigns

A

agencies

170
Q

____ ____ ____ attempt to hire based on advertising/social media skills

A

company advertising departments

171
Q

General steps in developing and implementing an advertising campaign
1. identify and analyze target audience
2. define advertising objectives
3. create advertising platform
4. determine advertising appropriation
5. develop media plan
6. create advertising message
7. execute campaign
8. evaluate advertising effectiveness

A
172
Q

The ____ ____ is the group of people at whom advertisements are aimed

A

target audience

173
Q

____ objectives should be stated clearly, precisely, and in measurable terms

A

advertising

174
Q

The ____ ____ consists of the basic issues or selling points that advertiser wishes to include in the advertising campaign

A

advertising platform

175
Q

The advertising platform is based on the product’s ____

A

positioning

176
Q

The ____ is the total amount of money a marketer allocates for advertising for a specific time period

A

budget

177
Q

The ____-____-____ ____ is used to determine the objectives a campaign is to achieve and then calculating the cost to attain them

A

objective-and-task approach

178
Q

The ____-____-____ approach is used to determine budget by multiplying a firm’s past and expected sales by a standard percentage

A

percent-of-sales

179
Q

The ____ ____ is when a high-level executive in the firm states how much to spend on advertising for a certain period

A

arbitrary approach

180
Q

The ____ ____ presents the media vehicles to be used and dates and times the advertisements will appear

A

media plan

181
Q

____ ____ select the media for the campaign and prepare a time schedule for each medium

A

media planners

182
Q

____ ____ deal directly with the representatives of the media vehicles

A

media buyers

183
Q

____ is the total number of different people or households exposed to an advertising message during a given period of time

A

reach

184
Q

____ is the number of times your target audience sees or hears the ad message during the same period

A

frequency

185
Q

The optimal frequency for an ad is ____ to ____ times

A

3, 10

186
Q

Creating the ____ ____ comes from the advertising platform and creative brief

A

advertising message

187
Q

____-____ is where evaluation is performed before the campaign begins

A

pre-test

188
Q

____-____ is the evaluation of advertising effectiveness after the campaign

A

post-test

189
Q

____ ____ is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders

A

public relations

190
Q

____ is communication about the company or usually it’s products in non-paid media form

A

publicity

marketing (2 decks)

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