30 Questions
What is the term for a reduction from list price given to intermediaries to get shelf space for a product?
Stocking allowance
What is the term for advertising a low-priced item to attract customers, but then convincing them to buy a more expensive model?
Bait pricing
What is the method of budgeting for promotion expenses that involves defining the tasks to be accomplished and allocating costs accordingly?
Task method
At what point does the firm's total cost equal its total revenue?
At break-even point
When are customers likely to be less price sensitive?
When someone else pays the bill
In the market growth stage of the product life cycle, what becomes important?
Persuading
What marketing mix is likely to be used for a new product?
Selective distribution, skimming pricing, pioneering advertising, and a combination of 'push' and 'pull' policies
What is the purpose of reducing prices on gas grills between November and February?
To offer a seasonal discount
What type of information sources are most effective for reaching innovators?
Impersonal and scientific
How do you calculate 2/10, net 30?
Invoice amount X (100.0 - 0.02)
What is the 'adoption curve'?
A model showing how different groups accept ideas
What pricing objective is evident when a company cuts its prices to protect its market share?
Sales-oriented
What is the formula to calculate a firm's Gross Margin?
Net Sales - Total cost of goods sold
Which federal agency has the power to control deceptive advertising in the United States?
Federal Trade Commission
What is the primary focus of order takers in sales?
Selling to regular customers and maintaining relationships
What type of salesperson provides specialized services and information to support the sales force?
Missionary salespeople/merchandisers/detailers
What is the primary goal of Search Engine Optimization (SEO) strategy?
Improving Google or other search engine rankings for organic search results
What is a small file placed on a customer's computer that helps a website function and track customer behavior?
Cookie
What is the type of pricing objective a producer seeks when trying to obtain a certain percentage return on their investment?
Target Return
What is the correct sequence of market acceptance of a new idea as represented in the adoption curve?
Innovators, Early Adopters, Early Majority, Late Majority, Laggards
What type of media is best suited for achieving the widest reach to a mass audience?
Television
What is a characteristic of owned media?
Typically characterized by high message control
What is the term for when two or more companies conspire to keep prices of a certain product at a certain level?
Price Fixing
What is TRUE about prospecting?
CRM systems help with the process of prospecting
What is the primary focus of prospecting in sales?
Identifying new customers
What is the key difference between advertising and publicity?
The media used to convey the message
What is the pricing objective of a manager who says 'A price of $10.00 will not start a price war with our competitors'?
Status-quo pricing
What is World Imports/Exports, Inc. engaging in by selling a product at a lower price in a foreign market than in its domestic market?
Dumping
What is the term for the coordination of every communication from a firm to a target customer to convey a consistent and complete message?
Integrated marketing communications
What type of customer is characterized as preferring to do things the way they have been done in the past and being very suspicious of new ideas?
Laggards
This quiz covers various marketing and sales strategies, including pricing tactics and promotional techniques used to attract customers.
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