Jeremy Wolter Auburn Marketing MKTG 3310 Exam 2 2024 Homework and Participation questions

A 1% change in _________ has the greatest impact on profit.

Price

KFC's "Fresh is Better" advertisement during the Walking Dead ran right after a scene of zombies disemboweling a living person, which changed the interpretation of the intended message. What part of the communication process is this an example of?

Noise

Which of the following is the correct formula for CPM?

(Cost of ad / audience size) X 1,000

What is the relationship between reach and frequency in terms of typical advertising (media) budgets?

More reach means less frequency

What do constant and regular sales promotions do to a brand and how/why?

Answer: Sales promotions decrease the value of a brand. Frequent promotions can train customers to expect discounts, reducing the perceived value of the brand

Which is/are TRUE regarding selective demand?

There is an established demand for a particular brand within a product category

Which is TRUE of co-branding?

It typically works when the connections between both brands are clear, understandable, and believable.

Which of the following scenarios BEST describes the concept of diffusion of innovation?

Which BEST describes a feature of the laggards in the diffusion of innovation?

They tend to take up new technologies as a last resort

Which of the following choices represents the correct sequence for the three basic steps of the new product development process?

1.Decline

2. Development

3. Growth

4. Introduction

5. Maturity

2, 4, 3, 5, 1

Which BEST describes a feature of the early majority group in the diffusion of innovation?

They are typically older and more risk averse

Which of the following terms BEST exemplifies Coca-Cola's decision to conservatively extend their brand name and logo to encapsulate flavors that included "Cherry Vanilla," "Diet," and "Zero"?

Near-category extensions

Robert is in his mid-60s and really enjoys using new technology. He loves the way that new innovations can make his life easier. Robert often spends time researching information about new products, as well as reading consumer reviews, as products are released so that he can learn everything there is to know before he buys the product. To which group does Robert MOST likely belong, in terms of diffusion of innovation?

Early Majority

When Peyton hears anyone talk about the retail chain Target, he immediately thinks of quality goods, low prices, and one-stop shopping. Which concept does this BEST illustrate?

Select answer from the options below

Brand Image

Which of the following are TRUE regarding the diffusion of innovation model?

Innovators are the first group of people to buy a new product.

Innovators are the first group of people to buy a new product.

All research indicates that brand extensions must have some logical connection to the original.

Which part of the diffusion of innovation graph does area "3" indicate?

Early Majority

Which of the following describes the concept of brand marks?

The visual designs of the brand.

Which is/are TRUE regarding primary demand?

There are no product rivals or competition during primary demand.

Connie is looking to purchase a new pair of black leggings. In searching online, she finds a pair from a highly recognizable brand name for $40 and another pair of nearly identical, yet unbranded, leggings for $30. She feels better about buying the $40 leggings. What idea does this BEST represent?

Brand equity

Which is a risky form of branding that extends to products in a completely different category than the original brand?

Out-of-category extensions

______ means that services are consumed as they are produced

Perishability

_____ refers to the fact that the quality of a service can differ widely from consumption to consumption and from provider to provider

Variability

Which adopter category in the diffusion of innovation framework would typically have the largest percentage of people?

Late Majority

Which adopter category in the diffusion of innovation framework would typically have the smallest percentage of people?

Innovators

During the _____ stage of the product life cycle companies concentrate of stimulating selective demand

Growth

During which stage of the product life cycle does revenue typically hit its peak?

Maturity

Brand _______ include the visual designs, logos, and other representations of brands that cannot be spoken

Marks

The financial value of a brand is captured in the brand _____

Equity

Which type of brand extension is considered most risky?

Out-of-category extensions

Which of the following statements about co-branding is not true?

Co-branding happens only with products from a single company

True or False: Co branding is becoming more prominent

True

True or False: co-branding works when the connections between both brands are clear

True

What is TSL?

This Saves Lives - bar brand

3 multiple choice options

The greatest retail challenge for TSL at present is

Getting and holding good shelf space

The greatest channel challenge is

staying focused on channels where competition is less fierce

A business that offers TSL bars in its company cafeteria is

Google

The broad strategy for growth of TSL is

Start as boutique; grow into mass

The ____________ states that people must pass through 2 cognitive and 2 emotional states before taking an action

Promotion mix

3 multiple choice options

The general model of communication includes _____ main elements

8

The _______ suggests that there are two ways to persuade someone, a central or direct route and a peripheral, indirect route

Elaboration likelihood model

Which promotional budget setting method focuses primarily on prior years' data

Percent of sales

Group promotion allows for _______ market coverage and ______ costs

increased, lower

3 multiple choice options

Group promotion has a/an _____ effect

lagged

Group promotion should be used when companies have a _____ amount of customers and the customer base is ________

large, not centrally located

3 multiple choice options

______ is the percentage of a target audience that sees an advertisement at least once during a given period of time

Reach

If the total cost of promotion is $2112 and the expected number of impressions is 24000, cost per thousand is ____?

88

If the total cost of promotion is $2112 and the expected number of impressions is 96000, cost per thousand is ____?

22

3 multiple choice options

If you have 10,000 unique visitors to your webpage and 700 of them provide an email address to sign up for special offers, what is the conversion rate?

7%

Personalized promotions typically cost _____ than/as group promotions

More

2 multiple choice options

Personalized promotion ______ the noise typically seen with group promotions

reduces

3 multiple choice options

In which of the following situations would it make the most sense to use personalized promotions?

A company wants to target a small segment of the customer basis located in the same general vicinity

3 multiple choice options

______ involves sales people identifying and qualifying potential customers

Prospecting

3 multiple choice options

A sales person asking current customers or prospects for the names of other people who may be interested in the products they are selling is engaging in

Snowballing

3 multiple choice options

________ requires salespeople to adjust their sales presentations to meet the needs of the circumstances at that moment

adaptive selling

3 multiple choice options

_______ is a promotion to an individual consumer that includes an offer, information to justify purchase, and a method for customers to respond

direct marketing

3 multiple choice options

The ________ requires companies who send commercial messages to identify themselves, let recipients know the message is commercial in nature, and offer a way for recipients to opt out of future commercial messages

CAN-SPAM legislation

3 multiple choice options

______ are the technologies and platforms that facilitate communication with customers and delivery of benefits to them

Digital media

Brand communities should be controlled by

customers

3 multiple choice options

Which social media platform is most dominant?

facebook

3 multiple choice options

Which of the following statement about marketing through social media is NOT true?

Complex messaging works best

3 multiple choice options

Which resource below is considered the most central tool for digital marketing?

Company websites

3 multiple choice options

_________ are websites that use algorithms and databases of web content to match a user's keywords or search terms with websites that may be relevant to those terms

Search engines

3 multiple choice options

The name or symbol that identifies a specific business's product or service

Brand

The collection of associations, thoughts, and feelings that are evoked when exposed to a brand

Brand image

The extent someone knows or recognizes a brand

Brand awareness

The financial value of a brand

Brand equity

The visual designs, logos, colors, typefaces of brands

Brand

Promotion to an individual consumer that includes an offer, information to justify purchase, and a method for customers to respond.

Direct marketing

Any selling activity that involves direct interaction between buyer and seller.

Personal selling

Any paid, non-personal communication to an audience

Advertising

Short-term incentives designed to persuade customers to make a purchase or speed their decision process.

Sales promotion

The management function which evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action (and communication) to earn public understanding and acceptance.

Public relations

What is marketers' obsession with young consumers?

They think young consumers will be brand loyal for a long time.

3 multiple choice options

Good social media marketing includes...

simplicity to avoid the temptation to drift.

3 multiple choice options

Using the diffusion of innovation adpoter categories and considering that 53% of Alabama citizens fully vaccinated against Covid-19, those who are NOT vaccinated for Covid-19 as compared to those who are vaccinated, they are probably

less educated

3 multiple choice options

Which of the following is true about early adopters

Early adopters sometimes care more about being early than having the product

3 multiple choice options

The marble floors of a bank, meant to convey stability, are an example of marketing for which service characteristic?

Intagibility

The inability to return a haircut is an example of which service characteristic?

perishability

Which has the greater impact on profit?

A 1% increase in price.

3 multiple choice options

Which of the following is TRUE with regard to price?

Price is a reflection of all of the decisions made by the firm.

3 multiple choice options

The reason demand for movie theatre tickets has traditionally been inelastic in regards to changes in price is probably because...

the cost is such a low percentage of movie watchers' disposable income.

3 multiple choice options

If a shop calculates the price elasticity for their main product, and finds the price elasticity coefficient is less than one, that means the shop...

...has flexibility in raising prices.

3 multiple choice options

Focusing on superconsumers enables us to reach people on the left side of the demand curve because superconsumers...

...are price insensitive.

3 multiple choice options

For a company that uses more of commission structure for salespeople than a high base salary, that company is likely to...

...have a weak reputation

How should Subway's sales promotions be designed?

Sales promotions should be infrequent and designed around moments that bring the brand meaning alive.

3 multiple choice options

The sum of all costs required to produce the first unit of a product.

Fixed costs

Costs that vary directly with the production of one additional unit.

Variable costs

The product of expected unit sales and unit price.

Total revenue

Ratio that expresses how much the sale of a unit contributes to fixed costs or profit relative to the variable cost per unit.

Markup

The monetary gain (or loss) resulting from revenues after subtracting all associated costs.

Profit

Recently, Starbucks CEO, Brian Niccol, said he "wants to simplify the company's overly complex menu to make it less overwhelming, make the product more consistent, and reduce waiting times by increasing the efficiency of the crafting process." What service characteristic is Niccols trying to overcome?

Variability

Recently, Starbucks CEO, Brian Niccol, said he "wants to make all customers feel prioritized, and ensure drinks are handed directly to customers for a more personal approach." What service characteristic is does leaving drinks on counters for customers to pick up attempt to overcome?

Inseparability

When is employee's satisfaction most likely to affect customers?

Restaurants

3 multiple choice options

Which is true for customer satisfaction?

Customer satisfaction is highest for manufacturing firms

2 multiple choice options

Prospecting could also be known as:

Do the homework

Preparation could also be known as:

Do the homework

Approach could also be known as:

Make contact

Sales presentation could also be known as:

Make the case

Meeting objections could also be known as:

Make the case