Exam 13: Pricing, Promoting, and Distributing Products

Premiums are gifts, such as pens, pencils, calendars, or coffee mugs that are given away in return for buying a specific product.

Describe the advantages of pipelines as a mode of transportation.

One advantage of using magazine advertisements is that magazines represent a market that has already been segmented.

When Burger King tells you about a new restaurant that it is opening near you, it is attempting to fulfill which promotional objective? Remind you about the product Communicate information Positioning products Controlling sales volume Eliminate competition

The promotional tool in which a salesperson communicates one-on-one with potential customers is direct mail. personal selling. television. radio. magazines.

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. Extensive analysis reveals that if Personal Devices offered Indian customers products at multiple price points, the company would initially earn more profits but damage the brand in the long term. Which of the following, if true, would weaken the argument that Personal Devices should offer products at multiple price points? The Indian market is sufficiently large to support offerings at multiple price points. Taiwanese manufacturers have focused on the low to medium end when selling to their domestic markets. Brand image is the sum total of customer perceptions about a company. Research shows that the average domestic consumer tends to associate price with quality. Niche companies that try to be everything to everyone usually lose their edge in their core business.

What is the promotional mix? What are the elements in the promotional mix?

List two strategies for pricing new products.

What explains the expanding use of wholesalers? Delivery time between the producer and the consumer is faster than it used to be. Wholesalers have a bigger distribution network. The cost of retail space has risen, thereby creating pressure to limit storage space in retail outlets. The development of a good truck distribution system and highway system permit quicker delivery of ordered goods. The order-cycle time has declined.

What is "markup"? Markup is the point at which the firm covers the fixed and variable costs. Markup is the amount of money left over after all expenses have been deducted from revenues. Markup is an amount equal to demand divided by product cost. Markup is an amount added to the cost of the item to arrive at the selling price. Markup is the point where demand equals supply.

Identify the two most common pricing objectives. __________ and __________

An intermediary is the combination of distribution channels by which a firm gets its products to end-users. a business that sells products to other businesses for resale to final consumers. a business that sells products directly to 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.

Dove is introducing a new deodorant. In order to entice customers to purchase the deodorant, a free bar of soap is attached to the package. Which type of sales promotion is Dove using? Point of sale display Premium Contest Trade show Coupons

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. Which of the following, if true, would most seriously weaken the argument for using the internet as the medium of advertising? Countries with restrictive regimes are yet to free this medium from controls over political content. Consumers are extremely frustrated with annoying pop-up ads that affect the quality of browsing. Studies show that customers tend not to notice internet ads that are not intrusive in nature. The interactive capabilities of internet ads are rarely being used in a creative manner. People who are online are also known to engage in media multi-tasking.

ABC Company sells product X for $12.00 each. With a fixed cost of $72 000 and a variable cost of $4.50, what is the breakeven point in units?

Sara is selling posters at the sale price of $12.00, and the markup percentage is 35%. What is the dollar amount of the markup? $7.80 $4.20 $7.75 $3.50 None of these

List the advantages of trucks as a mode of transportation.

Which distribution channel is used by companies such as Dell? Producer to retailer to consumer Producer to agent to retailer to consumer Producer to agent to wholesaler to retailer to consumer Producer to wholesaler to retailer to consumer Producer to consumer

What is channel conflict? What are possible outcomes from channel conflict? How do vertical marketing systems help resolve channel conflict?

The formula for determining the break-even point (in units) is total fixed costs divided by price minus variable cost.