Deck 12: Pricing, Distributing, and Promoting Products

Question 1

Market share is rarely a pricing objective for established products.

Answer 1

False

Question 2

Using psychological pricing, a restaurant would price an entrée at $10.00, rather than $9.95.

Answer 2

False

Question 3

The most widely used advertising medium is television.

Answer 3

True

Question 4

Among the advertising media, outdoor advertising typically makes up a large portion of all advertising expenditures.

Question 5

Vending machines are not brick-and-mortar stores; therefore, their sales are not included in the country's total annual retail sales.

Question 6

An advantage of syndicated selling is that consumers may avoid unnecessary Web searches.

Question 7

_____ are the individuals and firms that help to distribute a producer's goods.

A) Retailers
B) Wholesalers
C) Intermediaries
D) All of the above

Question 8

A(n) _____ is an intermediary that usually represents many manufacturers and sells to wholesalers or retailers.

A) producer representative
B) manufacturer's wholesaler
C) sales agent/broker
D) wholesaler's agent

Question 9

A(n) _____ is a Web site that other Web sites commission for referring customers.

A) agent/broker
B) syndicated seller
C) shopping agent
D) e-intermediary

Question 10

Printed advertisements that are sent to consumers' homes or offices are a form of _____.

A) direct distribution
B) direct mail
C) indirect advertising
D) e-tailing

Question 11

A(n) _____ helps Internet customers by gathering and sorting information they need for making purchases but does not take possession of products.

A) broker
B) syndicated seller
C) wholesaler
D) shopping agent

Question 12

A seller's Web site can be considered a(n) _____.

A) electronic storefront
B) syndicated seller
C) reseller
D) contact point

Question 13

Which is the most widely used advertising medium?

A) newspapers
B) television
C) Internet
D) magazines

Question 14

The main advantage of newspaper advertising is _____.

A) flexible, rapid coverage
B) its ability to target audiences
C) lengthy exposure
D) low cost

Question 15

What is the breakeven point if total fixed costs equal $100,000, the selling price is $15.00, and the variable costs are $8.00 per unit?

A) 14,286
B) 6,667
C) 12,500
D) 11,503

Question 16

As part of a promotional strategy of adding value, Burger King cut back on advertising dollars and used those funds for _____.

A) meat purchases in South America
B) adding highly trained managers for their units
C) customer discounts
D) expansion of the chain

Question 17

If a company wanted to be able to change its message quickly and cover a large audience, its best choice would be _____ advertising.

A) newspaper
B) television
C) radio
D) magazine

Question 18

How might intermediaries provide added value for consumers?

Question 19

What is the sales price on product X when a $7 markup yields a markup percentage of 35 percent?

Question 20

Explain the five promotional objectives outlined in the text.

Question 21

Which elements of the promotional mix may be negatively affected due to ambiguous language in communication?

Question 22

Why is it important for a marketer to communicate clearly when relying on shopping agents in particular?

Question 23

How can marketers attempting to sell to a culturally diverse target market benefit from using creative selling? Explain.

Question 24

In selecting an advertising medium, what advantage does a marketer have when communicating with foreign consumers?

Question 25

What are VirTus' three competencies?

Question 26

VirTus is a strategic marketing company. What does this mean?

Question 27

What exactly does VirTus show clients?

Question 28

Assume that VirTus is working with a client that places heavy emphasis on direct-response retailing. How is direct-response retailing carried out?