Exam 13: Pricing, Promoting, and Distributing Products

What are pricing objectives?

What are the various business objectives that influence pricing decisions?

Markup is usually expressed as a percent of cost.

Goodyear and Levi's have their own retail outlets. This is an example of which distribution channel? Direct distribution Retail distribution Wholesale distribution Distribution by agents Distribution by brokers

What is a direct channel?

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. One manager argues that Riverdale's corporate image will suffer if customers receive too many e-mails about its different services and offerings. Which of the following, if true, is the most effective counterargument? Customers can report the e-mails as spam and ensure that they do not receive these service mails in their inboxes in the future. Research shows that customers who opt to receive marketing e-mails rarely complain, even if they are not happy about them. This is a problem that affects all e-mail marketers, not Riverdale alone. Customers can use a ready menu of e-mail selections to opt in and receive only the marketing product information they are interested in. The cost of e-mail marketing is lower than public service advertising.

The ultimate objective of any promotion is to sell more products.

List three pricing tactics.

The Cream Soap Company has launched a new campaign geared at increasing the sales volume of its new Fresh Smelling line of soap products. The $1.6 million campaign will cover the costs of providing samples of their soap products to be delivered with the Toronto Star newspaper to 500 000 homes in Toronto. This marketing technique is known as personal selling. public relations. advertising. publicity. sales promotion.

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. Frisell's claim assumes which of the following? Most consumers prefer to shop online rather than at a traditional physical store. Identity thieves will continue to be motivated to steal people's identities. Most identity theft occurs because consumers do not take sufficient safety measures. Identity theft mainly occurs as a result of spyware. It takes hundreds of hours for consumers to repair the effects of identity theft.

A push strategy appeals directly to consumers who push their local retailer to carry the product.

Many e-tailers, such as eBay and Priceline, use ________ pricing. penetration skimming dynamic psychological odd-even

West Coast Unlimited is a wholesaler that carries close to 20 000 products. The company has close to 3000 suppliers and sells its products mostly to business and institutional customers. The company markets its products by relying mainly on sales promotion and advertising. Faced with increasing costs, the company is looking at various ways to reduce expenses. West Coast Unlimited's vice president feels that the company should shift one of its major distribution centers to a low-rent, low-tax area. Which of the following, if true, would weaken the vice president's argument? The low-rent, low-tax area is located farther from delivery sites. West Coast Unlimited's competitors often place their distribution centers in relatively expensive locations. Better use of technology could reduce distribution costs more than a relocation could. Final customers are almost always unaware of the location of the wholesaler. Delayed shipments from suppliers are already creating problems for West Coast Unlimited's distribution network.

The two general values to be gained from any promotional activity are communicating information and creating satisfying exchanges.

Sally selected ________ advertising because it is relatively inexpensive, faces little competition for customers' attention, and is subject to high repeat exposure. outdoor magazine television direct mail radio

If total fixed costs are $100 000, the price for which the product sells is $15.00, and variable cost per unit is $8.00, what is the break-even point? 20 275 units 16 274 units 14 286 units 18 283 units 12 356 units

Briefly discuss each of the four channels of distribution.

A corporation which has an objective of achieving a high market share will almost always have a second objective to maximize profits.

Explain the difference between exclusive, selective, and intensive distribution.

In terms of advertising revenues, which medium is the most important? Newspapers Television Radio Internet Magazines