Final Exam Review Part 1

Question 1

a coordinated system of distribution channel organization in which the flow of products from producer to end-user is controlled by the power and size of one member of the channel system rather than by common ownership or contractual ties.

Answer 1

Administered Vertical Marketing System

Question 2

a way of dealing with something.

Answer 2

approach

Question 3

(Blank) is the process of sorting and grouping customers based on the behaviors they exhibit. These behaviors include the types of products and content they consume, and the cadence of their interactions with an app, website, or business.

Answer 3

Behavioral segmentation

Question 4

A (blank) is when a company uses one of its established brand names on a new product or new product category. It’s sometimes known as brand stretching. … If successful, it can help a company reach new demographics, expand its customer base, increase sales, and boost overall profit margins.

Answer 4

brand extension

Question 5

(Blank) is the pricing of products that have both a “core product” and a number of “accessory products.” It’s a pricing strategy that takes advantage of a product that will be used primarily to attract a large volume of customers.

Answer 5

Captive product pricing

Question 6

In marketing, (blank) relates to consumers’ expectations, feelings about brands and internal logic when deciding to buy something. Marketers try to be aware of potential conflicts or expectations that might affect buying decisions.

Answer 6

cognitive dissonance

Question 7

competitive-based approach used to determine an advertising budget wherein an advertiser decides advertising dollars to be spent on the basis of competitors’ spending.

Answer 7

competitive parity method

Question 8

refers to the complex design of the sales team.

Answer 8

complex sales force structure

Question 9

a marketing segmentation strategy in which the firm concentrates its entire efforts and resources on serving one segment of the market

Answer 9

concentrated niche marketing

Question 10

an inexpensive product that requires a minimum amount of effort on the part of the consumer in order to select and purchase it. Examples of (blank) are bread, soft drinks, pain reliever, and coffee.

Answer 10

convenience products

Question 11

(Blank) is a pricing method that is based on the cost of production, manufacturing, and distribution of a product. Essentially, the price of a product is determined by adding a percentage of the manufacturing costs to the selling price to make a profit.

Answer 11

Cost-based pricing

Question 12

(blank) comprise of set of values and ideologies of a particular community or group of individuals.

Answer 12

Cultural factors

Question 13

(blank) can be defined at the receiver interpreting the message and coming to an understanding about what the source is communicating. … In promotions, an example of this would be a consumer viewing an advertisement and coming to an understanding about what the product is.

Answer 13

Decoding

Question 14

(blank) refers to the categorization of consumers into segments based on their demographic characteristics. This includes variables such as age, gender, income, education, religion, nationality etc.

Answer 14

Demographic segmentation

Question 15

(blank) is deployed when the company settles on one market segment or a few market segments that provide the best opportunities for them. Each segment is targeted with special offer designed to appeal specifically to the buyers of that market.

Answer 15

differentiation (segmented marketing)

Question 16

(blank) in marketing means creating specialized products that gain competitive advantage with a particular segment of the market. … The former adds specialized aspects with a broad appeal to its products or services, and the latter develops a product that appeals to a niche market.

Answer 16

Differentiation

Question 17

A form of marketing in which sellers offer their products or services to buyers by mail, instead of (or in addition to) through agents or stores.

Answer 17

Direct-mail marketing

Question 18

The term (blank) refers to the process of cutting out the financial intermediary in a transaction. It may allow a consumer to buy directly from a wholesaler rather than through an intermediary such as a retailer, or enable a business to order directly from a manufacturer rather than from a distributor.

Answer 18

disintermediation

Question 19

(blank) is an agreement between a supplier and a retailer granting the retailer exclusive rights within a specific geographical area to carry the supplier’s product. Often the supplier severely limits the number of products it supplies the retailer as well.

Answer 19

Exclusive distribution

Question 20

The definition of a (blank) strategy is a planned series of communications to establish a relationship with a prospect. The reason a business would have this strategy would be to have a system in place for when leads are acquired.

Answer 20

follow-up

Question 21

(blank) marketing refers to activities which encourage repeat purchasing through a formal program enrollment process to develop loyalty and commitment from the customer base. This term is also referred to as loyalty programs.

Answer 21

frequency

Question 22

(blank) is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. It works on the principle that people in that location have similar needs, wants, and cultural considerations.

Answer 22

Geographic segmentation

Question 23

(blank) is a marketing strategy used to target products or services at people who live in, or shop at, a particular location. It works on the principle that people in that location have similar needs, wants, and cultural considerations.

Answer 23

Geographic segmentation

Question 24

(blank) is the first customer value-based pricing strategy. It refers to offering the right combination of quality and good service at a fair price – fair in terms of the relation between price and delivered customer value. … Granted, they offer much less value – but at even lower prices.

Answer 24

Good-value pricing