Exam 13: Pricing, Promoting, and Distributing Products

The communications vehicle that is inexpensive, that effectively segments the customers, but is not very long lasting is radio. direct mail. newspaper. television. magazines.

Department stores, supermarkets, and specialty stores are all bargain retailers. catalog showrooms. discount houses. syndicated sellers. product line retailers.

Odd-even pricing involves setting a limited number of prices for certain categories of products. setting an initial high price to cover new product costs and generating a profit. taking advantage of the fact that consumers do not always respond rationally to stated prices. setting prices in uneven dollar amounts. setting an initial low price to establish a new product in the market.

Riverdale Inc. is a multiplatform retailer that does business primarily through direct mail marketing. The company sells approximately 400 products including statues, die-cast vehicles, T-shirts, posters and lithographs, plush toys, and household decorative items. Riverdale management is exploring ways of improving its direct marketing mechanism. Which of the following, if true, would most weaken the argument for continuing direct mail marketing? Riverdale will have to use highly selective mailing lists to ensure that its messages reach the target audience. Some analysts predict a decline in the use of traditional forms of direct mail in coming years. Competitors are using more aggressive and often more intrusive direct marketing techniques. Results of the program will have to be evaluated and monitored continuously in order to reduce costs. Direct mail marketing costs much more per thousand people reached than mass media outlets such as television or magazines.

Which promotional strategy appeals directly to the consumer who demands the product from retailers, who, in turn, demand the product from wholesalers? Product positioning Layered promotion Pull strategy Contests Push strategy

Why would a business firm want to use controlling sales volume as a promotional objective? A company will aggressively push its products through wholesalers and retailers who persuade customers to buy it. The production and distribution systems will run more smoothly when the firm achieves a more stable sales volume during the year. The company is trying to appeal to a specific segment of the market. Consumers are more likely to purchase a product when they have been informed about it. The company wants to be able to communicate information to consumers when it is more economical to do so.

Dynamic pricing is feasible in the electronic marketplace because the flow of information on the internet notifies millions of buyers of instantaneous changes in product availability.

Which of the following is correct with regard to the pricing of new products? There are two basic strategies available: follow-the-leader and price leadership. Price skimming is more effective than penetration pricing. Penetration pricing is generally more effective than price skimming. Price skimming involves trying to sell a new product only to customers with the highest income levels. Penetration pricing is designed to stimulate trial purchase.

By stocking a new, highly visible line of shampoos priced lower than local stores, Jack is trying to increase the quality of hair of the youth in the area. the break-even point. yield management. fixed costs so that the variable costs would decrease. his market share of the hair product market.

Describe the elements of the promotional mix.

Worldwide, online retail sales account for about 25 percent of total retail sales.

List three forms of direct response retailing.

During the ______ phase of the consumer buying process, marketers emphasize ______. buyers evaluate products after purchase; sales promotion buyers seek information; sales promotion consumers recognize the need to make a purchase; personal selling buyers compare competing products; advertising and public relations buyers purchase products; sales promotion

Personal selling provides the link between seller and buyer, which adds to a firm's credibility.

What is the distribution mix?

Riverdale Inc. is a multiplatform retailer that does business primarily through direct mail marketing. The company sells approximately 400 products including statues, die-cast vehicles, T-shirts, posters and lithographs, plush toys, and household decorative items. Riverdale management is exploring ways of improving its direct marketing mechanism. Which of the following, if true, would most strengthen the argument for continuing direct mail marketing? The consumers that direct mail marketing reaches are much better prospects compared to those reached by advertising. Direct mail marketing accounts for 34 percent of all direct marketing spending. Direct mail marketing has proven to be successful for promoting certain product types, such as cosmetics and designer apparel. The growth of direct mail marketing has been explosive, with customers being flooded with such material. Telephone marketing, another form of direct marketing, is becoming easier to use due to auto-dialers.

What is the purpose of point-of-sale displays?

During the ______ phase of the consumer buying process, marketers emphasize ______. buyers evaluate products after purchase; personal selling buyers seek information; sales promotion consumers recognize the need to make a purchase; advertising and publicity buyers compare competing products; advertising and public relations buyers purchase products; advertising

What are the advantages and disadvantages of publicity?

A wholesale grocer purchases groceries by truckload or railroad boxcar load and then fills individual grocery store orders from inventory. What transportation method will typically be used to ship these grocery orders to supermarkets within a 100-mile radius of the warehouse? Air Rail Water Pipeline Truck