Exam 13: Pricing, Promoting, and Distributing Products

Which of the following is correct with regard to the various media? About twice as much is spent on advertising in magazines than is spent on newspapers. Newspapers generally allow advertisers to target their audiences well. Radio stations are generally not highly segmented into listening categories. Billboard messages are relatively expensive. People tend to use radio as "background" while they are doing other things.

Explain the various pricing philosophies and strategies for new and existing products.

________ are able to deliver a steady flow of product, unaffected by the weather. Water carriers Railroads Trucks Planes Pipelines

Coke has discovered that it can charge more for a can of soda in the sportswear aisle of Walmart than in the beverage aisle near competing colas. This is an example of a market share pricing objective.

The most negative aspect of publicity is that it is expensive. it isn't believable to many people. it isn't that important. it is viewed as being biased. it isn't controllable by the company.

Television is a good medium to use if a company wants to educate viewers about complex products.

Define and contrast the difference between pull and push strategies in marketing.

Flexibility, fast service, and dependability are attributes of shipping by truck.

Lawless Container Corp. produces packaging containers and sells them to industrial buyers such as Fisher-Price and Mr. Coffee. Lawless is a channel 1 system. channel 4 system. channel 2 system. channel 3 system. None of these.

Warriners is a family-owned grocery store that sells approximately 12 cases of canned potatoes per year. It orders one case a month from a local wholesaler. This is an example of a channel 4 distribution system. channel 3 distribution system. channel 2 distribution system. channel 5 distribution system. channel 1 distribution system.

In the direct channel of distribution, how many intermediaries are there between the producer and the consumer? 0 1 2 3 4

________ attempts to build goodwill with customers by performing and publicizing a company's public service activities. Personal selling Public relations Advertising Sales promotion Publicity

Which type of retailing activity is most likely to be found in a suburban shopping mall? Convenience stores Specialty stores Video marketing stores Wholesalers Factory outlets

List four types of product line retailers.

Why are the concepts of "fixed costs" and "variable costs" important?

Frisell says: The most important online threat facing us today is identity theft. Consumers have to rely on online shopping today more than ever, and they are exposed to all kinds of dangers by people gaining access to credit cards, bank information, and Social Security numbers. Identity theft is a lucrative "business," and identity thieves will keep finding new ways to rip off consumers as long as online shopping and transactions are widespread. Scofield responds: Consumers have suffered from online theft, but the most far-reaching danger to people today from the internet is viruses and malware. These have the capacity to take down entire networks, affecting both businesses and consumers. It's not clear that anti-virus measures will ever be able to keep up with all of the threats that are out there. Which of the following statements would Frisell most likely agree with? Encryption software is the only way to protect consumers' identities. Viruses do not pose a major problem to online security. People have more choices in online shopping now than they used to. Consumers should regularly check their credit reports and transactions. Identity theft has always been a problem for consumers.

What is an advantage to the firm when using trade shows as a type of sales promotion? They are effective since the buyer comes to the seller. Coupons may be used to encourage customers to try new products. The displays serve to attract customer attention as they walk through a store. Free samples may be used to allow customers to try a product for a few days without any risk. Contests may increase sales by stimulating buyers' interest in a product.

Yellowknife Inc. is a small manufacturing company located in the far north of Canada. What transportation mode are they most likely to use? Trucks Trains Planes Water carriers Pipelines

Which of the following represents a reason for a firm's use of personal selling promotions? It is the only form of selling that works. It provides a personal link between the seller and the buyer. The sales force has the capability of contacting the greatest number of potential customers. Personal selling provides the lowest promotional costs per contact. Sales promotions must be convenient and accessible when the purchase decision is made.

One disadvantage of radio advertisements is that many people use the radio as "background" and pay little attention to advertisements.