Chapter 13

Question 1

Advertising

Answer 1

paid nonpersonal communication, usually targeted at large numbers of potential buyers.

Question 2

Breakeven Analysis

Answer 2

pricing related technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Question 3

Cause Advertising

Answer 3

form of institutional advertising that promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process.

Question 4

Competitive Pricing

Answer 4

strategy that tries to reduce the emphasis on price competition by matching other companies’ prices and concentrating their own marketing efforts on the product, distribution, and promotional elements of the marketing mix.

Question 5

Cooperative Advertising

Answer 5

allowances provided by marketers in which they share the cost of local advertising of their company’s product or product line with channel partners.

Question 6

Cost-Based Pricing

Answer 6

formulas that calculate total costs per unit and then add markups to cover overhead costs and generate profits.

Question 7

Creative Selling

Answer 7

persuasive type of promotional presentation.

Question 8

Everyday Low Pricing (EDLP)

Answer 8

is a strategy devoted to maintaining continuous low prices rather than relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales.

Question 9

Guerrilla Marketing

Answer 9

innovative, low-cost marketing efforts designed to get consumers’ attention in unusual ways.

Question 10

Infomercials

Answer 10

form of broadcast direct marketing; 30-minute programs that resemble regular TV programs, but are devoted to selling goods or services.

Question 11

Institutional Advertising

Answer 11

involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities.

Question 12

Integrated Marketing Communications (IMC)

Answer 12

coordination of all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a unified, customer-focused message.

Question 13

Missionary Selling

Answer 13

indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to the customer.

Question 14

Nonpersonal Selling

Answer 14

consists of advertising, sales promotion, direct marketing, and public relations.

Question 15

Order Processing

Answer 15

form of selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders.

Question 16

Penetration Pricing

Answer 16

strategy that sets a low price as a major marketing weapon.

Question 17

Personal Selling

Answer 17

the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer.

Question 18

Point-of-Purchase (PO) Advertising

Answer 18

displays or demonstrations that promote products when and where consumers buy them, such as in retail stores.

Question 19

Positioning

Answer 19

form of promotion in which marketers attempt to establish their products in the minds of customers by communicating to buyers meaningful distinctions about the attributes, price, quality, or use of a good or service.

Question 20

Prestige Pricing

Answer 20

strategies that establish relatively high prices to develop and maintain an image of quality and exclusiveness.

Question 21

Price

Answer 21

exchange value of a good or service.

Question 22

Product Advertising

Answer 22

consists of messages designed to sell a particular good or service.

Question 23

Product Placement

Answer 23

form of promotion in which marketers pay placement fees to have their products showcased in various media, ranging from newspapers and magazines to original online television and movies.

Question 24

Profitability Objectives

Answer 24

common objectives included in the strategic plans of most companies.

Question 25

Promotion

Answer 25

function of informing, persuading, and influencing a purchase decision.

Question 26

Promotional Mix

Answer 26

combination of personal and nonpersonal selling components designed to meet the needs of a company’s target customers and effectively and efficiently communicate its message to them.

Question 27

Publicity

Answer 27

nonpersonal stimulation of demand for a good, service, place, idea, event, person, or organization by unpaid placement of information in print or broadcast media.

Question 28

Public Relations

Answer 28

organization’s communications and relationships with its various public audiences.

Question 29

Pulling Strategy

Answer 29

promoting a product by generating consumer demand for it, primarily through advertising and sales promotion appeals.

Question 30

Pushing Strategy

Answer 30

personal selling to market an item to wholesalers and retailers in a company’s distribution channels.

Question 31

Sales Promotion

Answer 31

consists of types of promotion such as coupons, product samples, and rebates that support advertising and personal selling.

Question 32

Skimming Pricing

Answer 32

strategy that sets an intentionally high price relative to the prices of competing products.

Question 33

Specialty Advertising

Answer 33

promotional items that prominently display a company’s name, logo, or business slogan.

Question 34

Sponsorship

Answer 34

involves providing funds for a sporting or cultural event in exchange for a direct association with the event.

Question 35

Telemarketing

Answer 35

personal selling conducted entirely by telephone, which provides a company’s marketers with a high return on their expenditures, an immediate response, and an opportunity for personalized two-way conversation.

Question 36

Trade Promotion

Answer 36

sales promotion geared to marketing intermediaries rather than to final consumers.

Question 37

Volume Objectives

Answer 37

objects based on pricing decisions on market share, the percentage of a market controlled by a certain company or product.