Exam 13: Pricing, Promoting, and Distributing Products

What is the difference between coupons and premiums?

What is the ultimate objective of any type of promotion? Image enhancement Creative selling To increase sales To advertise To increase consumer knowledge of the product

Why might a retailer price a television at $299.99 rather than $300.00?

The combination of media that a company chooses to advertise its products is called the promotional mix.

What is personal selling?

A music storeowner would begin to price DVDs by taking into consideration all of the following costs except market share objectives. utilities and insurance. store rent and staff salaries. product displays. cost of buying DVDs from the manufacturer.

List the primary advantage of water carriers as a mode of transportation.

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 strengthen the argument for using television as the medium for the next campaign? A study shows that the bulk of television audiences are teenagers and people over 65. More than 43 percent of advertising dollars are spent on national and local television commercials versus 8 percent on internet advertising. The number of video-on-demand viewers is expected to quadruple during the next five years. Increasingly, consumers are choosing not to watch ads. Effective television ads are still capable of holding the audience's attention.

The communications vehicle that is very selective about its audience, allows a more personalized message, and whose response rate is very predictable is direct mail. television. magazines. radio. newspaper.

A(n) ________ sells products to a(n) ________ who sells them to customers. retailer; wholesaler wholesaler; intermediary intermediary; wholesaler intermediary; retailer wholesaler; retailer

As a start-up company, you need to find ways to reduce costs. Which type of promotion is free? Coupons Gift certificates Free samples Publicity contests

A company like Black & Decker has product lines which do not require intense market exposure to increase sales. Which distribution strategy is it likely to use? Intensive distribution Industrial distribution Discriminatory distribution Exclusive distribution Selective distribution

What is internet marketing? What are some of the advantages and challenges for buyers and sellers of this advertising medium?

Which of the following is correct with regard to the various media? Direct mail advertising has the highest advance costs of any advertising technique. Direct mail advertising has the lowest cost-effectiveness of any advertising technique. Radio advertisements are very expensive. Magazine advertising is not very good at conveying to consumers the value of a product. Outdoor advertising is the most important form of advertising based on spending by companies.

Explain electronic retailing.

Online retail sales in Canada are predicted to be approximately _________ in 2015. $3 billion $10 billion $18 billion $31 billion $50 billion

Algoma Banners set up a booth to display their products and to demonstrate products to customers who have a special interest in their product. Which sales promotion technique were they using? Coupons Premiums Contests Trade shows Point-of-sale displays

Product costs to the consumer decline as more intermediaries are involved in the distribution network.

The two major categories of physical distribution are transportation and materials handling. production and operations. inventory control and quality control. materials handling and inventory control. warehousing and transportation.

What is price lining?