Deck 13: Promotion and Pricing Strategies

Question 1

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
A _____ pricing strategy sets a low price as a major marketing weapon.

Answer 1

j

Question 2

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
In _____,marketers share the costs of local advertising of their company's product with channel partners.

Answer 2

l

Question 3

Discuss how Camelbak illustrates the concept of promotional mix.

Answer 3

The promotional mix consists of two components-personal and nonpersonal selling-that marketers combine to meet the needs of their company's target customers and effectively and efficiently communicate its message to them.Personal selling is the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer.Nonpersonal selling consists of advertising,sales promotion,direct marketing,and public relations.Advertising is the best-known form of nonpersonal selling.
CamelBak,well known for its hydration paks and water bottles,sponsors Chicago's Lollapalooza music festival and provides free freshly filtered water to all attendees.

Question 4

Discuss how integrated marketing communications relate to a firm's overall promotional strategy.

Question 5

Describe the circumstances in which a company is more likely to emphasize personal selling rather than advertising.

Question 6

Describe advertising specialties.

Question 7

Name the two basic types of advertising and provide examples for both.

Question 8

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
With _____,businesses drop prices for a set period of time to attract more customers during that period of time.

Question 9

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
Businesses often conduct a(n)_____ to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Question 10

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
A(n)_____ strategy sets an intentionally high price relative to the prices of competing products.

Question 11

What is sales promotion? Give some examples of common sales promotion techniques.

Question 12

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
A _____ is a combination of personal selling and nonpersonal selling to meet the needs of a company's target customers and communicate its message to them.

Question 13

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
_____promotes a good or service whose benefits are not readily apparent or whose purchase decision requires a close analysis of alternatives.

Question 14

What are the components of the promotional mix? Outline the advantages of the components of the promotional mix.

Question 15

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
_____ bases pricing decisions on market share,the percentage of the market controlled by a certain product or company.

Question 16

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
Through _____,marketers coordinate all promotional activities to execute a unified,customer-focused promotional strategy.

Question 17

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
Retailers commonly use _____ because they believe consumers favor amounts that sound less than they really are.

Question 18

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
_____ involves messages that promote concepts,ideas,philosophies,or goodwill for industries,companies,organizations,or government entities.

Question 19

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
A(n)_____ relies on personal selling to market an item to wholesalers and retailers in a company's distribution channels.

Question 20

Complete the following using the terms listed.
a.breakeven analysis
b.promotional mix
c.Volume objectives
d.Institutional advertising
e.discount pricing
f.Creative selling
g.Point-of-purchase advertising
h.skimming pricing
i.pushing strategy
j.penetration
k.integrated marketing communications
l.cooperative advertising
m.odd pricing
_____ consists of displays or demonstrations that promote products when and where consumers buy them.

Question 21

Differentiate between pushing strategies and pulling strategies.

Question 22

Advertising,sales promotion,direct marketing,and public relations are examples of _____.

A)order processing
B)personal selling
C)nonpersonal selling
D)creative selling

Question 23

Describe everyday low pricing (EDLP).

Question 24

Classic Sport Inc.signs professional basketball players and footballers to promote its products.Classic Sport is using sports stars to increase sales by enhancing the public's _____demand for its brand.

A)secondary
B)selective
C)primary
D)marketplace

Question 25

Integrated marketing communications would include all of the following EXCEPT _____.

A)direct mail
B)sales promotions
C)public relations
D)distribution

Question 26

Lubex,a car lubricant manufacturer,puts a sticker on your windshield to remind you when you are due for your next oil change.This is an example of which of the following promotional strategy objectives?

A)Accentuating the product's value
B)Providing information
C)Stabilizing sales
D)Differentiating the product

Question 27

In an effort to boost the entire pork industry in the U.S. ,the National Pork Board sponsors an advertisement stating,"Pork: The Other White Meat." This type of promotion is trying to develop _____.

A)primary demand
B)media containment
C)name recognition
D)media dominance

Question 28

A manufacturer that sells _____ is most likely to employ personal selling.

A)scissors with a safety attachment
B)generic tea at a low cost
C)private jets to people
D)packaged chips all over the world

Question 29

In the movie,The Social Network,the actor portraying Mark Zuckerberg was featured wearing products by Gap and the North Face.This form of promotion is known as _____.

A)trade promotion
B)institutional advertising
C)creative selling
D)product placement

Question 30

Assume fixed costs equal $480,000.The selling price per unit is $10,and the variable cost per unit of $8 produces a $2 per unit contribution to fixed costs.Find the breakeven point in terms of both units and in dollars.

Question 31

Describe profitability objectives.How do some companies maintain prices while still increasing profitability?

Question 32

When firms try to differentiate their products,they often apply a concept known as _____.

A)product valuation
B)personal selling
C)the marketing mix
D)positioning

Question 33

Explain why companies and consumers often prefer sweepstakes to contests or games as a form of promotion.

Question 34

A company includes an instant coupon as part of its product's package that gives buyers a discount on the product's retail price.What is the company attempting to do?

A)Increase sales
B)Provide negative information about its competitors
C)Stabilize sales by employing personal selling
D)Differentiate the product

Question 35

Micord,an automobile manufacturer,is running ads emphasizing that it offers longer warranties than other automobile companies.This is an example of which of the following promotional strategy objectives?

A)Accentuating the product's value
B)Providing information
C)Stabilizing sales
D)Differentiating the product

Question 36

Describe the relationship between price and quality.

Question 37

Explain how marketers conduct breakeven analyses.

Question 38

A major portion of the U.S.advertising is designed to _____.

A)accentuate product cost
B)stimulate pork demand
C)provide information
D)differentiate products

Question 39

_____ involves the use of innovative,low-cost marketing efforts to attract customer attention.

A)Trade promotion
B)Guerrilla marketing
C)Creative selling
D)Institutional marketing

Question 40

Which of the following scenarios illustrates the concept of personal selling?

A)A salesperson talking to a customer about a water purifier
B)A television advertisement about a new automobile
C)A radio announcement about a new restaurant
D)A salesperson handing flyers about a new boutique in a shopping mall

Question 41

Television is an attractive advertising medium because it _____.

A)is relatively inexpensive
B)offers a constantly growing network audience
C)offers mass coverage and flexibility
D)provides instant feedback that can be used to measure effectiveness

Question 42

Drelfin Community College purchases golf balls engraved with the words "Drelfin Community College," which are distributed at various college fairs in which it participates.These engraved golf balls are considered _____.

A)point-of-purchase advertising
B)samples
C)premiums
D)specialty advertising

Question 43

A disadvantage of using _____ as an advertising medium is their short lifespan.

A)magazines
B)newspapers
C)outdoor ads
D)internet ads

Question 44

Businesses often spend _____ as much on personal selling as on advertising.

A)twice
B)almost
C)five to ten times
D)over twenty times

Question 45

Fish Filler,a seafood restaurant,provides free drinks with each meal.Fish filler is using _____ to promote its sales.

A)premiums
B)samples
C)rebates
D)coupons

Question 46

Companies typically prefer sweepstakes to games or contests because:

A)they can predict the number of winners in sweepstakes.
B)organizing sweepstakes require less advertising.
C)sweepstakes require product purchase to enter.
D)courts and rulings have favored the use of sweepstakes.

Question 47

Although a salesperson's work can vary significantly from one company to another,it usually involves a mix of creative selling,missionary selling,and _____.

A)personal selling
B)product samples
C)order processing
D)indirect selling

Question 48

Sales of intangible products or services such as insurance often rely heavily on _____.

A)order processing
B)sales promotion
C)missionary selling
D)creative selling

Question 49

Bell Inc. ,a computer manufacturer,is offering $100 cash back on the purchase of a computer.This is an example of _____.

A)specialty advertising
B)a rebate
C)a sample
D)a premium

Question 50

Informative advertising is most apt to be used in which stage of the product life cycle?

A)The growth stage
B)The maturity stage
C)The introductory stage
D)The decline stage

Question 51

Don-its,a coffee shop,uses _____ advertising when it tells people that "hard-working" people prefer its coffee over the coffee sold by its competitor,Moon-beverage.

A)comparative
B)informative
C)reminder-oriented
D)corporate

Question 52

Craig,a public relations manager of GBS bank,creates an advertisement that explains how GBS bank has positively influenced the economy of his country.Craig has used _____ advertising.

A)institutional
B)cause
C)product
D)corporate

Question 53

A paid,nonpersonal sales communication usually directed at a large number of potential buyers is known as _____.

A)the media mix
B)sales promotion
C)advertising
D)publicity

Question 54

A leading manufacturer of exercise bicycles ran a full-page advertisement in a health magazine differentiating the price of its bicycle with that of a leading competitor.The manufacturer is using _____.

A)comparative advertising
B)reminder-oriented advertising
C)a pushing strategy
D)advocacy advertising

Question 55

_____ advertising is used to promote a specific viewpoint on a public issue as a way to influence public opinion and the legislative process about issues such as literacy,hunger and poverty,and alternative energy sources.

A)Effect
B)Cause
C)Persuasive
D)Comparative

Question 56

Companies that provide _____ for NASCAR teams are eager to spend millions in exchange for a direct association with the biggest spectator sport in the United States.

A)public relations
B)sponsorships
C)specialty advertising
D)product advertising

Question 57

Trade promotion is _____.

A)often used to promote goods or services to ultimate consumers
B)used to promote goods or services to marketing intermediaries
C)used to increase investments at the manufacturers' facilities
D)only used to build goodwill

Question 58

Sales personnel employed by companies,such as IBM and Microsoft,who offer technical assistance through consulting in order to promote goodwill for their employers are primarily involved in _____.

A)missionary selling
B)creative selling
C)nonpersonal selling
D)order processing

Question 59

The goal of_____ advertising is to maintain awareness of the usefulness of a product.

A)advocacy
B)comparative
C)persuasive
D)reminder-oriented

Question 60

The Federated Credit Union,through its direct-mail promotion,encourages its members to write letters to members of Congress asking them to pass legislation favorable to credit unions.Such promotion is a form of _____ advertising.

A)advocacy
B)public
C)institutional
D)comparative

Question 61

Gerard is a sales executive for an office supply start-up,and his job includes giving frequent demonstrations to prospective clients and business professionals.When a prospective client representative finds fault with the company's printer,Gerard should use this situation as a chance to _____.

A)show positive feedback received from other clients for the printer
B)extend the presentation and answer questions
C)determine if the prospect has the ability to pay for the machine
D)propose alternative purchases

Question 62

When one company tries to compete with or match its competitor's rates,it engages in _____.

A)nonpersonal selling
B)personal selling
C)prestige pricing
D)price wars

Question 63

The use of literature and unusual visual aids is part of the _____stage of the sales process.

A)approach
B)demonstration
C)closing
D)qualifying

Question 64

When a pharmaceutical company uses the phrase "ask your doctor" in its ads,the company is using a _____ strategy to appeal directly to the public instead of physicians alone.

A)pulling
B)public relations
C)rebate
D)pushing

Question 65

Greta is a marketing manager of a bank who regularly sends materials to various companies to participate in credit card promotions.Greta is employing a _____ strategy.

A)rebate
B)pulling
C)public relations
D)pushing

Question 66

Arianna runs a furniture store.A couple in her store tells her they're impressed with a particular living room couch.Arianna should _____.

A)show them a more expensive model
B)persuade them to buy furniture for their entire home
C)point out less-than-stellar aspects of the model
D)attempt to close the sale

Question 67

Promotion that is aimed at the ultimate consumer with the goal of generating demand for a good or service is based on a(n)_____.

A)cooperative strategy
B)pulling strategy
C)pushing strategy
D)emphasis on personal selling

Question 68

_____ achieves a nonpersonal stimulation of demand for an organization by unpaid placement of information.

A)Publicity
B)Specialty advertising
C)Point-of-purchase advertising
D)Cause advertising

Question 69

Volume objectives base pricing decisions on _____.

A)image goals and status quo pricing
B)supply and demand
C)market share
D)breakeven analysis

Question 70

Blue Computers Inc. ,a computer manufacturer,provides inner city schools with free computers and wireless Internet access.This is an example of _____.

A)rebates that support advertising
B)public relations
C)personal selling
D)creative selling

Question 71

A pushing promotional strategy is _____.

A)designed to promote one item at a time and place it near the location of an actual purchase decision
B)designed to encourage consumers to ask for a specific product even if a retailer does not carry it
C)primarily used when goods or services are marketed to the ultimate consumer
D)designed to market a product,product line,or service to wholesalers and retailers

Question 72

The salesperson's task of identifying potential customers is known as _____.

A)follow-up
B)approach
C)demonstration
D)prospecting

Question 73

Assume a company wants to increase its profitability.Which of the following would be inconsistent with the company's objective?

A)Operate more efficiently
B)Maintain price while increasing the size or amount of the product
C)Reduce costs while maintaining the quality of the product
D)Raise prices while increasing the quality of the product

Question 74

What should a firm do if it is too difficult or too expensive to have salespeople meet all potential customers in person?

A)Use telemarketing
B)Engage in missionary selling
C)Meet prospects in a central location
D)Set up a focus group

Question 75

Salespeople explain to marketing intermediaries why they should carry particular merchandise,usually supported by _____.

A)corporate financing
B)nonpersonal selling
C)publicity stunts
D)offers of special discounts

Question 76

Which of the following is an example of a virtual approach that companies use to identify and qualify sales prospects?

A)Focus groups
B)Webinars
C)Public service messages
D)Radio announcements

Question 77

The process of finalizing a sale is part of the _____ stage of the sales process.

A)approach
B)presentation
C)closing
D)demonstration

Question 78

A company adds several features to one of its products and reduces the product's price.What is most likely to be the company's objective?

A)To reduce turnover rate
B)To meet competition
C)To increase the prestige of the product
D)To decrease the product's market fluctuation rate

Question 79

Kristen and Jack have had an in-ground swimming pool installed in their back yard.About one week after the installation,the salesperson that facilitated the installation telephoned and asked if everything about the pool met with their expectations.The salesperson is _____.

A)conducting a follow-up
B)trying to get a repeat order
C)prospecting
D)overcoming objections

Question 80

The future attitudes of most prospects are affected by the first impression they form of a salesperson.Therefore,salespeople _____.

A)should carefully prepare their approach to potential customers
B)should use the same sales pitch to all customers
C)must be selective in identifying prospects
D)must be tactful when they respond to objections