Exam 13: Pricing, Promotion, and Distributing Products

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

Superior Stereo Systems, a cutting-edge manufacturer of stereo speakers, sells the popular Superior V model and recently introduced the Superior VI, a brand-new speaker technology. The company's marketing manager, Deanna Thorpe, is putting together the promotional campaign for Superior. What purposes of promotion should Deanna and her marketing team at Superior keep in mind?

ValueNet Corporation sells electronic learning devices, consumer electronics products, and collectibles directly to consumers using a team of telemarketers. The aggressive cold calling tactics recently boomeranged when the company became the target of irritated consumers and consumer activist groups who flooded ValueNet's phone system with return calls and messages. Management is planning to reduce the reliance on outbound calling and use other approaches like direct-response television (infomercials). Which of the following, if true, would weaken the argument for shifting to direct-response television marketing?

Agent/brokers are employees of the manufacturer.

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

What pricing strategy has generally been used for HDTV?

Psychological pricing assumes that consumers make rational decisions when purchasing products.

A retailer is

How is markup percentage calculated?

Why might a company adopt a pricing objective other than profit maximization?

Which of the following makes it easier for customers to find a product and eliminate competitors' products from consideration?

Piper & Son makes pickled peppers, sold in upscale supermarkets and specialty food stores. The company has profit-maximizing pricing objectives, so managers constantly monitor the prices of key ingredients such as peppers, vinegar, and garlic. How can setting the price for pickled peppers too high yield profits that are lower than the maximum?

Explain the primary difference between a wholesaler and a sales agent.

A ________ entitles the bearer to stated savings off a product's regular price, while a ________ is a free or reduced-price item given to consumers in return for buying a specified product.

Publicity and public relations are important tools in making the buyer aware that the firm's product exists, especially when the buyer is in the information seeking stage of the buying process.

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?

When Burger King tells you about a new restaurant that it is opening near you, it is attempting to fulfill which promotional objective?

The two major aspects of physical distribution are warehousing and transportation.

"Sears Good," "Sears Better," and "Sears Best" are examples of

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