Exam 13: Pricing, Promoting, and Distributing Products

Costs that change with the quantity of a product that is produced or sold are on-going costs. variable costs. fixed costs. product costs. selling costs.

Price lining is a tactic used for new products and requires that prices be set very high to cover product development and introduction costs.

List five sales promotion tools.

A break-even analysis is used to determine how many units must be sold at a given price before the company begins to make a profit.

Identify and briefly discuss five of the various advertising media.

Caramilk bars are an example of _____________ distribution, whereas Jaguar cars are an example of ______________ distribution. exclusive; selective selective; exclusive intensive; selective selective; selective intensive; exclusive

What is the purpose of using break-even analysis when attempting to set prices? To determine the total costs of the product To show the cost, volume, and profit relationships To compare demand and supply To reflect the markup needed to make a profit To show the costs which must be considered in setting prices

Where must all consumer product distribution channels begin? The industrial user The retailer The government The wholesaler The manufacturer/producer

What do shopping agents do?

Doreen owns a seafood restaurant in Alberta. She would like to have the freshest seafood possible, so her preferred method of delivery would be plane. train. truck. any of these would deliver fresh seafood in an equal amount of time. none of these are good delivery methods for seafood.

How is the markup percentage calculated? Give an example.

An independently owned wholesaler who purchases, stores, and repackages a product before selling the product to his or her customer is known as a(n) agent/broker. contract carrier. sales branch. distributor. merchant wholesaler.

What is a markup?

Which of the following intermediaries represents several producers and is paid a commission based on invoice values? Agent/broker Sales office Sales branch Merchant wholesaler Collective agent distribution

The combination of distribution channels that a firm selects to get a product to its end users is its distribution mix. distribution strategy. distribution network. channel selection. channel intermediaries.

All of the following are weaknesses of internet marketing except profitability. information overload. limited markets. future prospects. consumer concerns about security issues.

What is meant by the term "product placement?" Making sure that products are prominently visible on store shelves Using brand-name products as part of the storyline of TV shows Choosing the channel of distribution with the lowest overall cost Placing free sample of products in consumers' mailboxes so they can actually try the product Providing free product samples to influential consumers

The average cost of an industrial sales call has been estimated at $300 to $500.

Newspapers, as an advertising medium, offer flexible, rapid coverage, but usually do not allow advertisers to target their audience well.

What term identifies a company's policy of offering all items in certain categories (e.g., men's suits) at a limited number of prices? Price skimming Boundary pricing Discounting Penetration pricing Price lining