Exam 13: Pricing, Promoting, and Distributing Products

List three types of bargain retailers.

Which of the following modes of transportation is used primarily to transport heavy, bulky items such as cars, steel, and coal? Air Pipeline Trucks Water Railroads

Mega Computers, a computer manufacturer, has decided to promote its new line of computers by offering its wholesalers and retailers an additional 5 percent off list prices. This strategy is called a ________ strategy. product pull push place position

Which of the following is the oldest form of direct-response retailing? Mail order Telemarketing Electronic retailing Mail marketing Direct selling

West Coast Unlimited is a wholesaler that carries close to 20 000 products. The company has close to 3000 suppliers and sells its products mostly to business and institutional customers. The company markets its products by relying mainly on sales promotion and advertising. Faced with increasing costs, the company is looking at various ways to reduce expenses. West Coast Unlimited's vice president feels that the company should shift one of its major distribution centers to a low-rent, low-tax area. A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price. Which of the following is the best criticism of this argument? It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate. It fails to demonstrate that traditional retailing businesses are also in jeopardy. It fails to recognize the possibility that wholesalers can add value to different partners in the supply chain. It does not specify how wholesalers can reduce costs most effectively. It does not account for the fact that wholesalers need to be large in order to take advantage of economies of scale.

Due to the high cost of personal selling, many companies are turning to radio advertising. telemarketing. coupons. contests. magazine advertising.

The communications vehicle that is flexible, has rapid coverage, but lasts briefly and cannot target audiences very well is direct mail. newspapers. magazines. radio. television.

What is the difference between publicity and public relations?

Audio Corporation is a manufacturer of high-end audio recording devices and car stereo players. Its products are known for excellent craftsmanship and sound quality. The primary target market for the company is executives in the age group of 30 to 40. The company is in the process of reworking its media mix. It had traditionally relied on television to spread its message. However, with the advent of video-on-demand and DVR systems, ad-skipping has become common. Some managers in the decision-making team feel that the bulk of the advertising budget should be allocated to internet advertising. A problem associated with internet advertising is that the audience controls the exposure, so viewers are able to avoid unwanted ads. Which of the following is the best response to this criticism? Internet advertising allows target audiences to learn more about products that interest them. Exposure control is a problem associated with all media types. The ability to avoid unwanted ads is an important aspect of privacy. Audiences can be forced to watch the entire message using technology. Internet advertising is too new to evaluate its effectiveness.

What is the idea behind odd-even pricing?

List three types of intermediaries.

A wholesaler is the combination of distribution channels by which a firm gets its products to end-users. an intermediary who sells products to other businesses for resale to final consumers. an individual or firm that helps to distribute a product. a network of independent companies through which a product passes from producer to end-user. an intermediary who sells products directly to consumers.

What is the advantage of using trucks as a method of transporting goods? Lowest rates Unaffected by weather conditions Fastest delivery times Less packaging of the product is required: therefore, packaging costs are lower Flexibility, dependability, and fast service to most parts of Canada

Television is a popular form of advertising because it is a combination of sight, sound, and motion that appeals to almost all a viewer's senses.

Agent/brokers are employees of the manufacturer.

Of all transportation modes, ________ are the least expensive. trains pipelines water carriers planes trucks

A pull strategy is generally more effective than a push strategy because a pull strategy shows that consumers actually want the product.

Personal Devices Inc. is a manufacturer of premium cell phones. Most of the company's handsets are equipped with high-end features such as large internal memory, sophisticated texting, camera and music functionalities, and data transfer capabilities. The company is planning to enter the Indian market. One of the senior managers argues that a stripped-down, low-priced model without any extras could be the starting point. The company can sell additional features added to the base model at higher price points. Which of the following, if true, would weaken the senior manager's argument? Producing a stripped-down model would alter high-end domestic customers' view of the Personal Devices brand. A premium auto manufacturer who came out with economy cars suffered in the market. India recently blocked low-priced Chinese phones that did not have the International Mobile Equipment Identification number. Research suggests that the premium market segment is saturated. Even high-end customers typically do not use the advanced functionality in Personal Devices cell phones.

Which of the following best represents the formula for the breakeven point? Total variable costs divided by (price minus variable costs) Total variable costs divided by (price minus fixed costs) Total fixed costs divided by (price minus variable costs) Total fixed costs divided by (price minus fixed costs) Total revenue divided by (price minus fixed costs)

Channels of distribution always contain a manufacturer and an end user.