Final Flashcards by Gregory Maro

________ combines the design and implementation of marketing activities and programs to build, measure, and manage brands to maximize their value.
A) Brand planning
B) Strategic brand management
C) Tactical brand management
D) Brand targeting
E) Brand positioning

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The ________ approach to measuring brand equity examines the investment made in developing the brand, including marketing research, brand design, communication, management, and legal services.
A) market
B) financial
C) cost
D) valuation
E) calculation

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The ________ approach to measuring brand equity measures the difference between the sales revenues from a branded offering against those of an identical unbranded offering, adjusted for the expense of building the brand.
A) market
B) financial
C) cost
D) valuation
E) calculation

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The ________ approach to measuring brand equity evaluates the net present value (NPV) of a brand’s future earnings.
A) market
B) financial
C) cost
D) valuation
E) calculation

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The American Marketing Association defines a ________ as “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”
A) copyright
B) trademark
C) slogan
D) brand
E) logo

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________ is the differential effect that brand knowledge has on consumer response to the marketing of that brand.
A) Mission-driven equity
B) Brand power
C) Product-driven equity
D) Brand equity
E) Function-based equity

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Which of the following is a marketing advantage of strong brands?
A) No vulnerability to marketing crises
B) More elastic consumer response to price increases
C) Guaranteed profits
D) Additional brand extension opportunities
E) More inelastic consumer response to price decreases

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________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making.
A) Internal marketing campaigns
B) Brand portfolio audits
C) Brand value chains
D) Sales cycles
E) Brand-tracking studies

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TF Brand power arises from differences in the consumer responses that a brand evokes.

True

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TF The indirect approach to assessing brand power assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.

False

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TF One of the advantages of having a strong brand is the ability to have a more elastic consumer response to price decreases of the brand.

True

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________ represent a special type of brand symbol—one with human characteristics that both enhance likability and tag the brand as interesting and fun.
A) Brand characters
B) Brand icons
C) Logos
D) Logotypes
E) Brand personalities

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Which of these is NOT a secondary brand association that a company would typically seek to establish for its brands?
A) Source of company funds
B) The company itself
C) Countries or regions
D) Channels of distribution
E) Spokespeople

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A brand ________ is a three- to five-word articulation of the heart and soul of the brand and is closely related to other branding concepts like “brand essence” and “core brand promise.”
A) mantra
B) personality
C) identity
D) position
E) revitalization

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Brand ________ are devices that can be trademarked and serve to identify and differentiate the brand.
A) elements
B) value propositions
C) perceptions
D) images
E) extensions

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Which of the following is a defensive criterion for choosing brand elements?
A) adaptable
B) memorable
C) meaningful
D) likeable
E) significance

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Which of the following statements about brand mantras is true?
A) They guide only major decisions, they have no influence on mundane decisions.
B) Their influence does not extend beyond tactical concerns.
C) They are used by employees only, not external marketing partners.
D) They can provide guidance about what ad campaigns to run and where and how to sell the brand.
E) They average one paragraph in length.

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American Express’s “World-Class Service, Personal Recognition,” Mary Kay’s “Enriching Women’s Lives,” Hallmark’s “Caring Shared,” and Starbucks’ “Rewarding Everyday Moments” are examples of brand ________.
A) mantras
B) parity
C) identity
D) architecture
E) extension

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Nike’s “Just Do It,” BMW’s “The ultimate driving machine,” American Express’ “Don’t leave home without it,” New York Times’ “All the news that’s fit to print,” and AT&T’s “Reach out and touch someone” are all examples of brand ________.
A) slogans
B) personalities
C) missions
D) architectures
E) mantras

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For brands in more stable categories where extensions into more distinct categories are less likely to occur, the brand mantra may focus more exclusively on points of ________.
A) difference
B) presence
C) inflection
D) parity
E) conflict

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TF The more important brand elements are often those that capture intangible characteristics.

True

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TF Brand equity is essentially the same as brand valuation

False

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The ________ reflects the way in which a company’s brands are related to a company’s products and services, as well as to one another.
A) brand family
B) brand ladder
C) brand DNA
D) brand hierarchy
E) brand blueprint

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A ________ involves individual or separate family brand names.
A) house-of-brands
B) branded-house
C) sub-brand strategy
D) brand ladder
E) brand network

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A ________ involves a corporate umbrella or company brand name. A) house-of-brands B) branded-house C) sub-brand strategy D) brand ladder E) brand network

A ________ combines two or more corporate, family, or individual product brand names. A) house-of-brands B) branded-house C) sub-brand strategy D) brand ladder E) brand network

Many companies are introducing ________, which are specific brand lines supplied to specific retailers or distribution channels. A) branded variants B) regional brands C) channel brands D) distribution brands E) retailer brands

________ creates brand equity for materials, components, or parts that are necessarily contained within other branded products. A) A brand alliance B) Ingredient branding C) Internal branding D) Production branding E) Recipe branding

The ________ in the brand value chain determines the extent to which the value created in the minds and hearts of customers affects market performance. A) customer multiplier B) market multiplier C) shareholder value D) program multiplier E) price elasticity

The ________ in the brand value chain determines the extent to which the value shown by the market performance of a brand is manifested in shareholder value. A) customer multiplier B) market multiplier C) shareholder value D) program multiplier E) price elasticity

A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create the financial worth of the brand is called ________. A) the brand value chain B) the brand portfolio C) the brand life cycle D) brand partitioning E) brand positioning

Competitive reactions and channel support are factors that influence the ________ multiplier of the brand value chain. A) program B) customer C) brand D) profit E) market

Distinctiveness, relevance, and value are factors that influence the ________ multiplier of the brand value chain. A) program B) brand C) market D) customer E) profit

A major advantage of a ________ strategy is that the company does not tie its reputation to the product. A) blanket family name B) licensing C) separate family brand name D) category extension E) brand revitalization

The ________ in the brand value chain determines the marketing program's ability to affect the customer mindset and is a function of the quality of the program investment. A) customer multiplier B) market multiplier C) shareholder value D) program multiplier E) price elasticity

TF Westin Hotels' Heavenly Bed initiative that promotes the comfort of its beds is an example of ingredient branding.

When marketers combine a new brand with an existing brand, the brand extension can also be called a ________, such as Hershey Kisses candy and Courtyard by Marriott hotels. A) child brand B) spinoff brand C) merged brand D) sub-brand E) hybrid brand

The Dannon yogurt products Fruit on the Bottom, All Natural flavors, Danonino, and Light & Fit are all examples of ________ from the original Dannon brand. A) down-market stretches B) up-market stretches C) line extensions D) brand extensions E) family brands

What percentage of new products in a typical year are brand extensions? A) 4 to 5 percent B) 8 to 10 percent C) 15 to 20 percent D) 50 to 60 percent E) 80 to 90 percent

When Honda applied that brand name to snowblowers, lawnmowers, and other non-automotive products, it was engaging in ________. A) cobranding B) brand architecting C) brand extensions D) line extensions E) laddering

Why was Ralph Lauren able to extend its brand name from fashion to something as far removed as paint? A) The brand was known for its fashionable style, which extended easily to home décor. B) Consumers like to consolidate all style-related purchases, whether fashion or home goods. C) There is little competition in the paint sector. D) The paint sector had become stale, with few innovations in color palettes. E) Color became a strong secondary brand association, so a move into paint was natural.

Brand ________ occurs when consumers no longer associate a brand with a specific or highly similar set of products and start thinking less of the brand. A) erasure B) dilution C) minimization D) consolidation E) negation

BW34Q2

Which of these is NOT one of the four guidelines to help firms manage their brands through a public crisis? A) Empathy: Get even closer to consumers and customers. B) Value: Put forth the most compelling value proposition. C) Strategy: Be authentic and true to the brand promise. D) Vision: Convince investors that the company is staying true to its long-term plans. E) Innovation: View the crisis as an opportunity to improve plans and products.

Nike's shift to use its technical expertise to develop Personal Protective Equipment (PPE) when the Covid-19 crisis hit was an example of which crisis-management guideline? A) Empathy: Get even closer to consumers and customers. B) Value: Put forth the most compelling value proposition. C) Strategy: Be authentic and true to the brand promise. D) Vision: Convince investors that the company is staying true to its long-term plans. E) Promotion: View the crisis as an opportunity to demonstrate expertise.

Which of these is a challenge that Coca-Cola faced when trying to extend its brand into the health and energy drinks category? A) Low consumer trust B) A strong association with carbonated colas C) Counterattacks from PepsiCo D) Consumer boredom with the health and energy drinks category E) Limited distribution opportunities

Which of these would probably be the most difficult brand to execute a brand extension from? A) One with multiple positive associations B) One with multiple positive secondary brand associations C) One seen as prototypical of its product category D) One viewed as particularly edgy or innovative by its fans E) One that faces strong competition in its core category

Starbucks introduced ice creams in the same flavors as the Frappuccinos it sold in its coffee shops. This is an example of ________. A) brand dilution B) co-branding C) brand variants D) brand extension E) brand harmonization

A parent brand that is associated with multiple products through brand extensions is also called a(n) ________. A) category brand B) subbrand C) extension brand D) family brand E) line brand

Two advantages of ________ are that they can facilitate new-product acceptance and help clarify the meaning of the parent brand. A) product licensing B) brand extensions C) brand architecture D) brand audits E) brand dilutions

TF A brand that is seen as prototypical of a product category is easy to extend outside the category.

What element is in the center of the Bull's-Eye Framework for developing brand positioning? A) The brand mantra B) Points of parity C) Points of difference D) Substantiators E) Brand values

If Starbucks wanted its positioning to include the attributes of contemporary, thoughtful, and caring, where would these qualities appear in its Bull's-Eye Framework? A) The brand mantra B) Points of parity C) Points of difference D) Substantiators E) Brand values, personality, character

In addition to helping time-pressed customers research products before coming into retail stores, what is another reason many high-end fashion brands such as Dior, Louis Vuitton, and Fendi have unveiled e-commerce sites? A) To eliminate the costly retail channel B) To be seen as young and hip C) To eliminate the need for retail sales personnel D) To combat fakes sold online E) To meet new government data privacy regulations

TF Price is one of the two elements of the marketing mix that produces revenue.

________—various visual, verbal, and numerical indicators that convey information about price—are an important part of the psychology of pricing. A) Pricing cues B) Price tags C) Bar codes D) QR codes E) Quality labels

________ is especially effective with ego-sensitive products such as perfumes, expensive cars, and designer clothing. A) Exclusive pricing B) Price matching C) Hidden price tagging D) Image pricing E) Value-perception pricing

When consumers examine products, they often compare an observed price to an internal price they remember. This is known as a(n) ________ price. A) markup B) reference C) market-skimming D) accumulated E) target

Pricing cues such as sale signs and prices that end in 9 are more influential when ________. A) customers have substantial knowledge about prices B) customers purchase the particular item regularly C) product quality is standardized D) product designs vary over time E) prices do not vary from time to time

TF Pricing cues such as sale signs and prices that end in 9 are more influential when consumers are experienced in the category.

TF Although consumers may have fairly good knowledge of the range of prices involved, very few can accurately recall specific prices of products.

What is the normal relationship between price and demand in a demand curve? A) The higher the price, the lower the demand B) The lower the price, the higher the demand C) The higher the price, the higher the demand D) The lower the price, the lower the demand E) Price and demand move in the same direction

The zone in which prices can fluctuate with negligible effect on demand is known as the ________. A) negligence band B) price indifference band C) negative elasticity zone D) customer indifference band E) price ignorance band

Which of these is a condition that usually contributes to low price elasticity? A) There are many substitutes for a product. B) Consumers readily notice price increases. C) Part or all of the cost is borne by another party. D) Consumers don't believe price hikes are justified. E) Consumers are quick to change their buying habits.

Which of these is a major risk of experience-curve pricing? A) There is a point beyond which the company can lower its prices no further. B) The more the company produces, the less money it earns. C) The company will reach a point where it can no longer afford to keep building production capacity. D) A competitor may innovate with lower-cost technology, leaving the leader stuck with old technology. E) Aggressive pricing is viewed as socially irresponsible.

After determining its pricing objectives, what is the next logical step a firm should take in setting its pricing policy? A) It should analyze its competitors' costs, prices, and offers. B) It should select its pricing method. C) It should select its final price. D) It should determine the demand for its product. E) It should estimate the cost of its product.

The first step in estimating demand is to ________. A) analyze competitors' cost B) select a pricing method C) understand what affects price sensitivity D) calculate fixed costs E) decipher the experience curve

Consumers are less price sensitive ________. A) to high cost items B) when they frequently change their buying habits C) when there are more substitutes D) when there are more competitors E) when they do not readily notice higher prices

Consumers are less price sensitive when ________. A) price is only a small part of the total cost spent on the product over its lifetime B) they perceive the higher prices to be unjustified C) they change their buying habits regularly D) there are many substitutes and competitors in the market E) they are buying high-cost items

If demand hardly changes with a small change in price, the demand is said to be ________. A) strained B) marginal C) inelastic D) flexible E) unit elastic

Which of the following is true regarding price elasticity? A) The higher the elasticity, the lesser is the volume growth resulting from a 1 percent price reduction. B) Within the price indifference band, price changes have little or no effect on demand. C) If demand is elastic, sellers will consider increasing the price. D) Price elasticity does not depend on magnitude and direction of the contemplated price change. E) When demand is inelastic, sellers should lower prices in order to increase total revenue. Answer: B

________ cost is the cost per unit at that level of production; it equals total costs divided by production volume. A) Target B) Average C) Marginal D) Opportunity E) Fixed

Experience-curve pricing ________. A) assumes competitors are weak followers B) allows products to project a high quality image C) is applicable only to manufacturing costs D) focuses on reducing fixed costs E) is generally risk-free

Which of the following is the most elementary pricing method? A) Value pricing B) Going-rate pricing C) Markup pricing D) Target-return pricing E) Perceived-value pricing

A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company's target-return price for this product. A) $18.10 B) $18.23 C) $20.25 D) $20.70 E) $25.50

An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units does the firm need to sell in order to break even? A) 1,819 B) 5,500 C) 18,000 D) 27,500 E) 55,000

________ pricing takes into account a host of inputs, such as the buyer's image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier's reputation, trustworthiness, and esteem. A) Economic-value-to-customer B) Value C) Going-rate D) Auction-type E) Markup

The key to economic-value-to-customer pricing is to ________. A) reengineer the company's operations B) deliver more unique value than competitors C) adopt subtle marketing tactics compared to competitors D) deliver more value but at a lower cost E) invest heavily in advertising in order to convey superior value

Which of the following auctions is characterized by one seller and many buyers? A) Walrasian auctions B) English auctions (ascending bid) C) Closed auctions D) Sealed-bid auctions E) Reverse auctions

In which of the following auctions does the auctioneer first announce a high price for a product and then slowly decreases the price until a bidder accepts? A) A Dutch auction with one buyer and many sellers B) An English auction with one seller and many buyers C) An ascending bid auction D) A sealed-bid auction E) A Dutch auction with one seller and many buyers

In a(n) ________, the buyer announces something he or she wants to buy, and potential sellers compete to offer the lowest price. A) Dutch auction with one buyer and many sellers B) English auction with one buyer and many sellers C) English auction with one seller and many buyers D) sealed-bid auction E) ascending auction

In ________, the seller charges a separate price to each customer depending on the intensity of his or her demand. A) second-degree price discrimination B) third-degree price discrimination C) psychological discounting D) special-customer pricing E) first-degree price discrimination

In second-degree price discrimination, the seller charges ________. A) less to buyers of larger volumes B) different prices depending on the season, day, or hour C) a separate price to each customer depending on the intensity of his or her demand D) different prices for different versions of the same product E) different prices for the same product depending on the channel through which it is sold

In ________, the seller charges different amounts to different segments of buyers. A) perceived value pricing B) third-degree price discrimination C) first-degree price discrimination D) second-degree price discrimination E) psychological discounting

________ refers to selling below cost with the intention of destroying competition. A) Bid rigging B) Loss-leader pricing C) Predatory pricing D) Price discrimination E) Price penetration

TF In the case of prestige goods, the demand curve sometimes slopes upward.

TF A marketer who has unit costs of $16 and wants to earn a 20 percent markup on sales would charge a markup price of $20.

TF Price elasticity tends to be lower for durable goods than for other goods.

Which of these signals a condition where competitors are most likely to react to a price change? A) When the firm has a weak value proposition B) When the firm enjoys a monopoly C) When there are few competing firms D) When the product is heterogeneous E) When buyers have limited information

Which of these is a consumer franchise building incentive? A) Price-off packs B) Frequency awards C) Contests D) Refund offers E) Sweepstakes

By monitoring the proportion of customers receiving discounts, the average discount, and any tendency for salespeople to rely too heavily on discounting, managers use ________ to arrive at the "real price" of an offering. A) net price analysis B) discount analysis C) price research D) price monitoring E) price trending

A(n) ________ uses the manufacturer's sales force, trade promotion money, or other means to induce intermediaries to carry, promote, and sell the product to end users. A) push strategy B) incentive plan C) promotional plan D) pull strategy E) co-op program

In a(n) ________ the manufacturer uses advertising, promotion, and other forms of communication to persuade consumers to demand the product from intermediaries, thus inducing the intermediaries to order it. A) push strategy B) consumer enticement C) pull strategy D) frequent traveler/shopper program E) end-around tactic

________ aim to increase the attractiveness of an offering for the members of the distribution channel. A) Push programs B) Pull programs C) Trade incentives D) Consumer incentives E) Coupons

________ are offered by a manufacturer to trade-channel members if they will perform certain functions, such as selling, storing, and recordkeeping. A) Consumer promotions B) Quantity discounts C) Allowances D) Seasonal discounts E) Trade-in allowances

Premiums, as a consumer promotion tool, are defined as ________. A) offers to consumers of savings off the regular price of a product, flagged on the label or package B) certificates entitling the bearer to a stated saving on the purchase of a specific product C) programs providing rewards related to the consumer's frequency and intensity in purchasing the company's products or services D) merchandise offered at a relatively low cost or free as an incentive to purchase a particular product E) values in cash or in other forms that are proportional to patronage of a certain vendor or group of vendors

Which of the following terms describes the practice of retailers purchasing a greater quantity during a sales promotion period than they can immediately sell? A) Diverting B) Panic buying C) Straight rebuy D) Buyout E) Forward buying

Which of the following retailer practices involves buying more units than needed of a product under a sales promotion in a region where the manufacturer offers a promotion deal and shipping the surplus to their stores in non-deal regions? A) Diverting B) Panic buying C) Hoarding D) Stockpiling E) Forward buying

What is the last buyer-response stage that consumers pass through before making the purchase? A) Knowledge B) Conviction C) Preference D) Awareness E) Action

If a consumer flipping through TV channels mishears a commercial, this represents a failure in which element of the macromodel of the communication process? A) Encoding B) Noise C) Decoding D) Messaging E) Media

Which of the following is the correct order of stages that a buyer is assumed to pass through in the classic response hierarchy models? A) Cognitive stage—affective stage—behavioral stage B) Affective stage—cognitive stage—behavioral stage C) Behavioral stage—affective stage—cognitive stage D) Cognitive stage—behavioral stage—affective stage E) Affective stage—behavioral stage—cognitive stage

LCH is a leading electronics company that produces and markets its own brand of desktop and laptop computers for both consumers and businesses. Which of the following sequences of consumer responses is relevant as a marketing communications model for LCH's products? A) Learn-do-feel B) Feel-learn-do C) Do-feel-learn D) Feel-do-learn E) Do-learn-feel

Classic response hierarchy models of the communication process assume the buyer passes through cognitive, affective, and behavioral stages, in that order. Which of the following product categories lends itself most appropriately to such a "learn-feel-do" sequence? A) Clothes B) Dishwashers C) Real estate D) Personal computer E) Air tickets

When planning communications for a detergent brand, which of the following sequences of buyer responses should the marketer base the communications program on? A) Feel-do-learn B) Do-feel-learn C) Feel-learn-do D) Learn-do-feel E) Learn-feel-do

TF The less the sender's field of experience overlaps that of the receiver, the more effective the message is likely to be.

TF Classic response hierarchy models assume that a buyer passes through affective, cognitive, and behavioral stages, in that order.

TF A "do-feel-learn" response sequence is considered appropriate when the audience has high involvement but perceives little or no differentiation within the product category.

Which of these is NOT one of the main factors to consider when setting the marketing communication budget? A) Stage in the product life cycle B) Degree of product differentiation C) Market share D) Product development cost E) Message complexity

If a marketing department sets its budget by establishing goals and identifying the action items needed to achieve those goals, it is using ________ budgeting. A) objective-and-task B) objective-based C) objective-driven D) task-based E) goal-driven

________ involves communicating an offering's ability to meet a currently relevant consumer need. A) Building preferences B) Inciting action C) Counter competitors D) Creating awareness E) Recognition advertising

Which of these statements is true about the nature of brand recognition and brand recall? A) Brand recall is easier to achieve than brand recognition. B) Brand recognition is easy to achieve in consumer markets but much harder in industrial markets. C) Brand recognition is easier to achieve than brand recall. D) Brand recall is much more important than brand recognition. E) Brand recognition is much more important than brand recall.

Creating awareness can involve highlighting awareness of the need (stimulating ________ demand) or awareness of the specific offering (stimulating ________ demand). A) push; pull B) upstream; downstream C) selective; primary D) primary; selective E) channel; end user

Which of these is the overarching principle of allocating the marketing budget to communication programs? A) Spending on communication should reflect roughly 33 percent of the overall marketing budget. B) If it builds long-term brand equity, spending on communication doesn't need to show short-term positive returns. C) The marginal profit from every communication dollar should be greater than or equal to the marginal profit from every dollar spent on other marketing activities. D) Communication should be the first consideration in the marketing budget. E) Communication should be the last consideration in the marketing budget.

Which method for establishing the total marketing communications budget sets communication budgets to achieve the same amount of share-of-voice as competitors? A) Comparative-parity method B) Objective-and-task method C) Affordable method D) Competitive-parity method E) Percentage-of-sales method

One of the possible objectives of marketing communications is helping consumers evaluate a brand's perceived ability to meet a currently relevant need. Which of the following is a positively oriented relevant brand need? A) Problem removal B) Social approval C) Normal depletion D) Problem avoidance E) Incomplete satisfaction

Which of the following is a characteristic of the affordable method of establishing a marketing communications budget? A) Fixed annual budget B) Suitable for long-range planning C) Priority given to role of promotion as an investment D) Calculated to reflect what the company can spare for marketing communications E) Based on the immediate impact of promotion on sales volume

Which of the following is an advantage of using the percentage-of-sales method to determine the marketing communications budget? A) It is practical in terms of implementation. B) The percentage-of-sales method views sales as the determiner of communications rather than as the result. C) The percentage-of-sales method leads to a budget set by market opportunities rather than the availability of funds. D) The percentage-of-sales method encourages experimentation with countercyclical communication or aggressive spending. E) The percentage-of-sales method encourages building the communication budget by determining what each product and territory deserves.

Which of the following is a disadvantage of using a percentage-of-sales method to determine the marketing communications budget? A) It discourages stability when competing firms spend approximately the same percentage of their sales on communications. B) By using a percentage-of-sales method, communication expenditures tend to be extremely high irrespective of what a company can afford. C) It discourages management from thinking of the relationship among communication cost, selling price, and profit per unit. D) It can lead to impractical allocation of a company's resources, ultimately yielding an ineffective communication campaign. E) The percentage-of-sales method views sales as the result in itself rather than the determiner of communications.

When crafting communications programs, marketers are always seeking the ________ that resonates with consumers rationally and emotionally, distinguishes the brand from competitors, and is broad and flexible enough to translate into different media, markets, and time periods. A) positioning statement B) value proposition C) unique selling point D) big idea E) creative brief

Identifying the target audience and developing the ________ are the two key components that define the strategy of a company's communication campaign. A) unique selling proposition B) value proposition C) communication message D) sales plan E) positioning

How many core selling propositions does a good ad normally focus on? A) Never more than one B) One or two C) Always two D) Three to five E) Five to eight

________ are streams in which consumers, the press, or other outsiders voluntarily communicate something about the brand via word of mouth, buzz, or viral marketing methods. A) Earned media B) Owned media C) Paid media D) Placed media E) Integrated

A company website is an example of ________. A) earned media B) owned media C) paid media D) placed media E) integrated

The ________ identifies the different modes of communication that a company will use to inform the target audience about its offerings. A) marketing mix B) marketing plan C) creative brief D) communication media mix E) strategic plan

Two particular strengths of mobile communication from a marketing point of view are its ________ and ________. A) timeliness; pervasiveness B) timeliness; immediacy C) immediacy; invasiveness D) broad reach; lack of regulatory oversight E) lack of regulatory oversight; pervasiveness

Which of these communication formats can be especially helpful if a company needs to challenge consumers' misconceptions? A) Advertising B) Mobile communication C) Direct marketing D) Publicity and public relations E) Personal selling

The appeal of public relations and publicity is based on its ________. A) high credibility B) simplicity C) immediacy D) lack of interference E) control over the message

________ is the number of different persons or households exposed to a particular media schedule at least once during a specified time period. A) Reach B) Impact C) Viewership D) Frequency E) Timeliness

Which of these is NOT one of the four key strategies for microscheduling advertising? A) Continuity B) Concentration C) Overlap D) Flighting E) Pulsing

As scheduling strategy, alternating periods of communication activity with periods of no communication is known as ________. A) Continuity B) Concentration C) Overlap D) Flighting E) Pulsing

Reach times average frequency times average impact equals ________. A) number of exposures B) impacted exposure C) weighted number of exposures D) total number of exposures E) weighted reach

________ is the most important media scheduling variable when there are strong competitors, a complex story to tell, high consumer resistance, or a frequent purchase cycle. A) Reach B) Impact C) Media quality D) Frequency E) Subscriber turnover

Which of the following is an example of an events and experiences activity? A) Fairs and trade shows B) Continuity programs C) Factory tours D) Sales presentations E) Community relations

Which of the following elements of the marketing communications mix includes a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications? A) Direct marketing B) Public relations and publicity C) Personal selling D) Advertising E) Sales promotion

Which of the following is an example of a public relations and publicity communication activity? A) Lobbying B) Company museums C) Street activities D) Company blogs E) Incentive programs

Informational appeals assume ________ of the communication on the consumer's part. A) hostile skepticism B) strictly emotional processing C) a balance of rational and emotional processing D) strictly rational processing E) logical rejection

An ad that uses the slogan "Live Your Best Life" is using a(n) ________ appeal. A) informational B) aspirational C) transformational D) informal E) motivational

Which of these is a risk of attention-getting tactics such as "borrowed interest" devices? A) Somebody is bound to dislike whatever device is used. B) Attention-getting tactics may detract from comprehension. C) Most national advertisers use the same tactics. D) They invariably raise production costs. E) Media outlets are getting increasingly tough on advertising standards.

A consumer who dislikes a celebrity sees that celebrity endorsing a favorite product and winds up feeling slightly more positive about the celebrity. What effect just took place? A) Congruity B) Distinction C) Positioning D) Attention transfer E) Linkage

In the ADPLAN framework, ________ communicates whether the target audience will remember the creative execution. A) attention B) linkage C) distinction D) amplification E) positioning

In the ADPLAN framework, ________ captures whether individuals' thoughts about an advertisement are positive or negative. A) attention B) linkage C) distinction D) amplification E) positioning

When using negative appeals, messages are most persuasive when they ________. A) moderately disagree with audience beliefs B) state only what the audience already believes C) strongly disagree with what the audience already believes D) gently make fun of the audience for their beliefs E) explain that disagreements are fine

A(n) ________ appeal is a creative strategy that elaborates on product or service attributes or benefits. A) aesthetic B) informational C) bandwagon D) emotional E) transformational

A(n) ________ appeal is a creative strategy that elaborates on a nonproduct-related benefit or image. A) logical B) transformational C) reasonable D) informational E) rational

________ is one of the sources of a spokesperson's credibility that refers to the specialized knowledge that he or she claims to possess. A) Trustworthiness B) Expertise C) Acquaintance D) Likability E) Professionalism

Which of the following marketing communications principles implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience? A) Principle of closure B) Principle of duality C) Principle of delegation D) Principle of congruity E) Principle of neutrality

________ is the proportion of company advertising of that product to all advertising of similar competitive products. A) Share of consumers' minds/hearts B) Share of advertising expenditures C) Share of voice D) Share of market E) Share of investment

Communication effectiveness can be measured from two perspectives: ________ and ________. A) strategy; tactics B) awareness; action C) brand recall; brand recognition D) supply side; demand side E) channel; consumer

Today's holistic marketers view the entire supply chain as a ________. A) profit center B) cost center C) value network D) healthy competitor E) holdover from the pre-internet era

Brokers, manufacturers' representatives, and sales agents search for customers and may negotiate on the producer's behalf but do not take title to the goods. This group of intermediaries are called collectively known as ________. A) wholesalers B) facilitators C) agents D) distributors E) merchants

Transportation companies, independent warehouses, banks, and advertising agencies assist in the distribution process but don't take title to goods or negotiate purchases or sales. This group of intermediaries are called collectively known as ________. A) wholesalers B) facilitators C) agents D) distributors E) merchants

What two intermediaries are typically found in a dual-level channel? A) Two retailers B) A wholesaler and a retailer C) A manufacturer and a distributor D) A dealer and a manufacturer E) A dealer and a wholesaler

________ are sets of interdependent organizations participating in the process of making a product or service available for use or consumption. A) Distribution channels B) Interstitials C) Communication channels D) Sales territories E) Marketing terrains

Which of the following channel functions constitute only a backward flow? A) Movement of physical goods B) Placing orders with manufacturers C) Persuasive communication D) Storage of physical goods E) Overseeing actual transfer of ownership

Identify which of these channel functions constitutes both backward and forward flow. A) Financing B) Storage of physical goods C) Persuasive communication D) Movement of physical goods E) Overseeing actual transfer of ownership

Producers often shift some functions to intermediaries. Which of the following is the most significant benefit of doing this? A) It increases customer loyalty. B) It provides the producer with greater control over operations. C) It reduces the amount of direct customer interaction. D) It lowers the producer's costs and prices. E) It ensures greater information security.

Door-to-door sales, home parties, mail order, telemarketing, TV selling, online selling, and manufacturer-owned stores are examples of ________. A) zero-level channels B) jobbers C) wholesalers D) manufacturer's representatives E) consumers

The Hermès brand of luxury fashion is available in approximately 300 company stores worldwide as well as a few carefully chosen high-end retail partners. This is an example of ________ distribution. A) luxury B) selective C) intensive D) exclusive E) trade

Which of these is true about the selective distribution strategy? A) It allows no competition between retailers. B) It counts on all retailers in a market to carry particular products. C) Retailers are assigned non-overlapping market territories. D) It might result in some retailers competing for the same customers. E) It limits distribution to one selected retailer in each market.

Which of the following types of distribution involves severely limiting the number of channel intermediaries? A) Exclusive B) Selective C) Intensive D) Aggressive E) Retail

Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. The company has only nine distributors across the United States. These distributors control a nationwide network of 600 retailers. The company does not sell its products through any other channels. This is an example of ________ distribution. A) selective B) intensive C) exclusive D) internal E) passive

Which of the following products is most likely to be sold using an exclusive distribution strategy? A) Designer luggage B) Soft drinks C) Alcoholic beverages D) Automotive fuel E) Medicine

In an effort to boost sales, Broomer offers its retailers a higher margin for promoting and selling products from the "Inducer" line to customers. This is an example of ________ power. A) coercive B) reward C) passive D) expert E) referent

Because of the acceptance that the other Broomer products have in the market, retailers are willing to stock items from the new "Inducer" line of clothing. This is an example of ________ power. A) referent B) passive C) legitimate D) coercive E) reward

Which of the following types of power is objectively observable? A) Coercive power B) Legitimate power C) Group power D) Expert power E) Referent power

A new firm typically starts as a local operation selling in a fairly circumscribed market by ________. A) finding and developing new intermediaries B) using a few existing intermediaries C) forming partnerships with the market leader D) creating a special channel E) forming partnerships with other firms

A(n) ________ vertical marketing system combines successive stages of production and distribution under single ownership. A) corporate B) administered C) contractual D) regulatory E) controlled

A(n) ________ includes the producer, wholesaler(s), and retailer(s) acting as a unified system. A) parallel distribution channel B) vertical marketing system C) extensive distribution channel D) internal marketing system E) conventional distribution channel

The most advanced supply-distributor arrangements for ________ vertical marketing systems rely on distribution programming. A) corporate B) administered C) contractual D) regulatory E) controlled

An administered vertical marketing system coordinates successive stages of production and distribution through ________. A) an automated central control unit B) single ownership C) the combined efforts of all its members D) the establishment of contractual obligations E) the size and power of one of the members

A franchise organization is an example of a(n) ________ vertical marketing system. A) corporate B) administered C) contractual D) regulatory E) controlled

A group of small grocery shops forms a new business entity to buy products directly from manufacturers. The group buys products in bulk that are then distributed among members. This helps the shops obtain better profit margins. Which of the following types of vertical marketing systems can be observed here? A) Contractual B) Corporate C) Administered D) Controlled E) Regulatory

In a ________ marketing system, two or more unrelated companies put together resources or programs to exploit an emerging marketing opportunity. A) reverse flow B) vertical C) horizontal D) lateral E) forward flow

A wise response to channel conflict is to ________. A) acknowledge that conflict will always exist and try to manage it better B) try to eliminate all forms of conflict C) ignore it as a natural part of doing business D) use conflict to force through change E) simply accept that various members of a channel have different degree of power

If channel members experiencing conflict try to come to agreement on a fundamental goal they are all seeking, they are a pursuing the ________ mechanism for conflict management. A) dual compensation B) superordinate goals C) strategic justification D) joint memberships E) co-optation

Alcart Solutions is a large distributor of Aldor phones in Canada. The company distributes products to various retailers in the New Brunswick province. Recently Aldor received several complaints from retailers that Alcart offers preferential treatment to some of the other retailers in the region. This is an example of ________ conflict. A) multichannel B) horizontal C) vertical D) intermediate E) parallel

Which of these is NOT an inventory carrying cost? A) Storage charges B) Cost of capital C) Depreciation D) Setup costs E) Obsolescence

Co-optation is an effort by one organization to win the support of the leaders of another by ________. A) including them in advisory councils B) engaging in mediation and arbitration C) encouraging joint memberships in trade associations D) encouraging employee exchanges E) offering strategic justifications

Winstar is a large-scale manufacturer with more than a hundred partners across the globe. When making decisions concerning distribution and channel optimization, the company invites members from its channel partners to be part of its advisory committee. This helps the company maintain harmony with its partners. Which of the following conflict resolution techniques is Winstar using? A) Diplomatic counselling B) Mediation C) Arbitration D) Co-optation E) Joint membership

When Estée Lauder set up a website to sell its Clinique and Bobbi Brown brands, Dayton Hudson reduced space for Estée Lauder products in its department stores in response to the ________ conflict. A) horizontal channel B) multichannel C) vertical channel D) grid channel E) end-customer

Order-processing costs for a manufacturer consist of ________ and running costs. A) setup costs B) sales costs C) inventory-carrying costs D) marketing costs E) component costs

Which of these is NOT a step in the order-to-payment cycle? A) Order transmission B) Closing C) Order entry D) Credit check E) Production scheduling

E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing more products only once it is ordered. Which of the following is true for E&OE? A) Inventory costs are lower than order-processing costs. B) Running costs are higher than inventory-carrying costs. C) Setup costs for the products are low. D) Order-processing costs are high. E) Order-processing costs are lower than setup costs.

E&OE is trying to minimize its inventory costs, which are extremely high. The company has realized that it can achieve this by maintaining a near-zero inventory and producing more products only once it is ordered. Which of the following will be true for E&OE? A) Short production runs will be more expensive than longer ones. B) Setup and order-processing costs will be high. C) The order point will be high. D) Order-processing costs will be lower than the inventory-carrying costs. E) E&OE can reduce the average cost per unit by producing a long run.

A stock order or reorder point of 10 means ordering the product ________. A) every 10 days B) when stock falls to 10 units C) every 10 units D) when stock falls to 9 units E) in batches of 10 items

________ consists of putting goods in boxes or trailers that are easy to transfer between two transportation modes. A) Containerization B) Haulage C) Inventory carrying D) Order processing E) Warehousing

The trucking firm hired by your transportation manager provides a trucking service between the city of Sacramento and the surrounding towns on a regular schedule and at fixed prices. The trucking firm saves transportation costs by transporting the goods using trains as well as trucks, instead of trucks alone. Your transportation manager has hired a(n) ________ carrier. A) airship B) airtruck C) trainship D) fishyback E) piggyback

In addition to struggling in its attempt to enter the U.S. market, what trouble did UK retailer Tesco experience in its domestic market? A) Employee resentment at the new expansion B) Lack of management attention to its stores in the UK C) Confusion among UK consumers about the international expansion D) Confusing messaging in the UK market E) Excess inventory in UK stores

If the shipper owns its own truck or air fleet, it becomes a ________ carrier. A) containerized B) private C) contract D) common E) diversified

Which of these was NOT identified as a problem with Tesco's failed expansion into the U.S. market? A) U.S. consumers weren't interested in fresh and healthy foods. B) Stores weren't properly staffed. C) Fresh food was not properly maintained. D) New private-label products were not introduced. E) U.S. customers were not accustomed to British-style ready meals.

Which of these is a potential benefit of expanding globally? A) Counteracting boredom among domestic staff by adding the excitement of international business B) Getting rid of excess inventory in the domestic supply chain C) Pressuring domestic employees to improve performance D) Pressuring domestic suppliers to improve performance E) Transferring ideas and products from international operations back to the domestic market

Which of these benefits did Cinnabon realize from its marketing efforts in Central and South America? A) Bringing products developed there back to Hispanic consumers in the U.S. B) Employee pride at serving international markets C) Being named a cultural ambassador by the U.S. Trade Commission D) Reducing company workload through economies of scale E) Simplifying recruiting of U.S. employees

Which of the following is NOT a risk that firms must consider prior to expanding into another country? A) Not understanding the nuances of the other country's business culture B) Not understanding the nuances of the other country's business regulations C) Lacking skilled managers with international experience D) Having business disrupted by commercial and political changes E) Choosing countries too similar to their home market

How was Deere & Company able to make its 8R line of tractors successful in 130 countries, in both developing and developed economies? A) By making it highly customizable B) By emphasizing its U.S. origins C) By teaching farmers around the world U.S. farming techniques D) Be centralizing all manufacturing in the U.S. E) By undercutting local prices in nearly every market

Which of these is a key factor about the consumer market in India that food manufacturers need to consider? A) Consumers don't care about brand names. B) A handful of huge retail conglomerates control the final stage of distribution. C) Food is largely purchased from supercenters that exceed the size of typical U.S. supermarkets. D) Food is largely purchased from 12 million small neighborhood stores. E) Consumer shop less frequently than in the U.S. and buy in much larger quantities.

WayToGrow Inc. is one of the most popular brands of toys in its home market. The company decides to expand its business abroad and its board of directors feel that instead of trying to establish its presence all at once in multiple markets, it is better to expand one country at a time. This would limit their risk and allow them to analyze customer response, after which they could expand to other similar countries. WayToGrow is following a ________ approach. A) shotgun B) continuous C) born global D) sprinkler E) waterfall

The main risks in a ________ approach are the substantial resources needed and the difficulty of planning entry strategies for many diverse markets. A) shotgun B) continuous C) born global D) sprinkler E) waterfall

When innovation at Siemens enables the company to offer solutions that can make the generation of hydroelectricity more environment-friendly, the company wants to reap the benefits of being the first to introduce such a product across multiple countries. In this case, which of the following approaches is likely to be the best approach to entering foreign markets? A) The rifle approach B) The continuous approach C) The born-global approach D) The sprinkler approach E) The waterfall approach

A2Z Inc. is a producer of a wide variety of consumer goods in Brazil. It has successfully captured a huge share of the domestic market and has been able to create a very strong brand. It is now considering a foray into foreign markets. Its board of directors decides to first try out some of its products in the neighboring country of Argentina. A2Z plans to eventually expand its presence in other countries, after they analyze the impact of their entry into the Argentine market. A2Z Inc. is following a ________ approach. A) born global B) waterfall C) sprinkler D) franchisee E) shotgun

In a waterfall approach to international expansion, ________. A) firms enter countries gradually in a sequence B) firms enter those countries first where the demand for the product is greatest C) countries are entered based upon the availability of government subsidies D) firms enter those countries first where the supply of raw material is greatest E) countries are entered based upon ease of entry

In a sprinkler approach to international expansion, ________. A) countries are entered when competition is limited B) countries are gradually entered sequentially C) countries in which the supply of raw material is greatest are entered first D) countries in which the demand for the product is greatest are entered first E) many countries are entered simultaneously

When first-mover advantage is crucial and a high degree of competitive intensity prevails, the ________ approach is better. A) waterfall B) born global C) rifle D) sprinkler E) franchisee Answer: D

Which of the following requires different marketing approaches in developed countries versus developing countries? A) The cost of production varies substantially between the developed and the developing world. B) The disparity between the rich and the poor in the developing world is reducing. C) There are substantial economic and cultural differences between the developed and the developing world. D) Marketing in developing countries is far more expensive than in the developed world. E) The developing countries have more trade barriers in place than the developed countries.

If a company that has been licensing its business format to firms in other countries wants to take a more hands-on approach in some countries but doesn't yet have the financial resources for direct investment, which of these options would be best? A) Indirect exporting B) Direct exporting C) Subsidiaries D) Joint ventures E) Sub-licensing

Which of these is NOT an option for direct exporting? A) Domestic-based export department operating as a service function B) Domestic-based export department operating as its own profit center C) Overseas sales branch D) Home-country-based traveling export sales representatives E) Domestic-based export agent

Which state government agencies can help U.S. companies move into exporting? A) Export-promotion offices B) Export merchant offices C) Export agencies D) Public communication offices E) Small Business Administration loan offices

Which of these is the simplest way for a company to get started in international marketing? A) Direct exporting B) Indirect exporting C) Joint ventures D) Licensing E) Direct investment

Domestic-based export merchants ________. A) buy manufacturers' products and then sell them abroad B) manage a company's export activities for a fee C) buy foreign products and sell them in the domestic country D) seek and negotiate foreign purchases E) carry on exporting activities on behalf of several producers

________ agree to manage a company's export activities for a fee. A) Cooperative organizations B) Domestic-based export agents C) Export-management companies D) Domestic-based export merchants E) Contract manufacturing organizations

A well-known producer of breakfast cereals has decided to hire producers in different countries so that the cereals marketed under their brand are locally produced in the respective countries. This would not only appeal more to consumers who prefer domestically produced goods, but would also create jobs in the host-country enhancing the brand's image further. This is an example of ________. A) management contracting B) franchising C) greenfield venturing D) contract manufacturing E) straight extension

Hotel chains such as Hyatt and Marriott sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for a fee. A) greenfield venturing B) management contracts C) strategic alliance D) indirect exporting E) direct exporting

Toshiba, Hitachi, and other Japanese television manufacturers use ________ to service the Eastern European market. A) contract manufacturing B) management contracts C) direct investment D) joint venture production E) greenfield venturing

A company can enter a foreign market through a ________, which is a complete form of licensing in which the company offers a complete brand concept and operating system. A) contract manufacturing agreement B) cooperative agreement C) management contract D) joint venture E) franchising arrangement

Whirlpool took a 53 percent stake in the Dutch electronics group Philips' home appliances business to leapfrog into the European market. This is an example of a ________. A) straight extension B) direct investment C) contract manufacturing agreement D) licensing agreement E) franchising agreement

Which of the following is NOT one of the ways direct exporting happens? A) Overseas sales branch or subsidiary B) Domestic-based export agents C) Domestic-based export division D) Traveling export sales representatives E) Foreign-based distributors or agents

Societies that prefer to maintain time-honored traditions and are skeptical about societal change are said to have a ________. A) collectivist orientation B) high power distance C) normative orientation D) high degree of uncertainty avoidance E) pragmatic orientation

Which is the most effective deterrent against gray market reselling by authorized distribution channels? A) Severe and/or timely penalties B) Closing operations in the country C) Contract renegotiation D) Diplomatic discussions E) Threats

Which of these is a frequent target of gray market activities? A) Breakfast cereals B) Magazines C) Prescription drugs D) Over the counter drugs E) Cosmetics

A country in which people accept a hierarchical social stratification is said to have a ________. A) collectivist orientation B) high power distance C) normative orientation D) high degree of uncertainty avoidance E) pragmatic orientation

If a society tends to maintain rigid codes of belief and behavior and is intolerant of unorthodox behavior and ideas, this reflects a ________. A) collectivist orientation B) high power distance C) normative orientation D) high degree of uncertainty avoidance E) pragmatic orientation

The price a company charges its own subsidiaries in other countries is known as the ________. A) escalator B) transfer price C) subsidiary price D) international price E) internal price

How did Ikea respond to the prevalence of low-cost copies of its products when it expanded into China? A) Drastically slashed prices on its products B) Switched to selling local brands C) Slashed prices on its own products and began selling some local brands D) Changed its name to avoid any association with the knockoff products E) Kept its usual prices and repositioned itself as a luxury brand

What is the estimated global scale of the problem of counterfeit goods? A) Between $100 and $200 million a year B) About $500 million a year C) About $500 billion a year D) More than a trillion dollars a year E) The real cost is unknown

The United States imposed a duty of on wind towers produced in China and Vietnam and imported to the United States after they found evidence both countries were selling them at below fair market value, or ________, the practice of charging less than its costs or less than it charges at home to win a market. A) arm's-length pricing B) gray marketing C) counterfeiting D) transfer pricing E) dumping

A Gucci bag that might sell for $200 in its home country of Italy but $300 in the United States and $400 in China due to the differences in the costs of distributing the product in the two countries. This phenomenon is called a(n) ________ problem. A) opportunity cost B) market pricing C) tactical pricing D) price escalation E) transfer pricing

Dumping occurs when a company ________. A) selling in a foreign market charges either less than its costs or less than it charges at home B) selling in a foreign market charges more than the price in its home market C) selling in a foreign market charges prices that are lower than those charged by its competitors in this market D) sets its price equal to its average cost of production E) exports its products to a foreign country to increase its revenue in spite of excess demand in the home country

Final Flashcards

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