Question 1

The fundamental purpose of promotion is to persuade and influence customers to purchase a product.

Accepted Answer

The primary goal of promotion is indeed to entice consumers to buy a product or service.

Question 2

Marketers rarely try to combine pushing and pulling strategies in the same promotional campaign.

Accepted Answer

Marketers often use a combination of both push and pull strategies in their promotional campaigns to maximize their reach and effectiveness.

Question 3

A pulling strategy relies less on advertising than a pushing strategy does.

Accepted Answer

The answer of A pulling strategy relies less on advertising...

Question 4

T-shirts Unlimited is conducting a breakeven analysis on unbleached cotton tops.Fixed costs are $100,000 and the per-unit contribution to fixed costs is $20.To break even,the company must sell ________ units.
A)20,000
B)5,000
C)500
D)200

Accepted Answer

The formula for breakeven analysis is:

Breakeven Point = Fixed Costs / Per Unit Contribution

Using the information given in the problem:

Breakeven Point = $100,000 / $20 per unit

Breakeven Point = 5,000 units

Therefore, to break even, the company must sell 5,000 units.

Question 5

The Social Club is conducting a breakeven analysis to determine how many tickets it must sell at $20 each to break even on the Holiday Dance.Fixed costs are $4,000,and the variable cost per person is $10.To break even,the Social Club must sell ________ tickets.
A)800
B)500
C)400
D)80

Accepted Answer

The answer of The Social Club is conducting a breakeven...

Question 6

Setting a price relatively high compared to similar goods and then gradually lowering it is a pricing strategy called ________ pricing.
A)penetration
B)skimming
C)cost-based
D)psychological

Accepted Answer

Skimming pricing involves setting a high price initially and lowering it gradually over time. This strategy is often used for new and innovative products to capitalize on early adopters who are willing to pay a premium price. As the market becomes more saturated and competition increases, the price is gradually lowered to attract more price-sensitive consumers.

Question 7

Pure Products is introducing a new paper coffee filter at a dramatically reduced cost in order to obtain a market share.This is an example of:
A)skimming pricing.
B)penetration pricing.
C)psychological pricing.
D)cost-based pricing.

Accepted Answer

This is an example of penetration pricing, where the company sets their prices lower than their competitors to gain a larger market share.

Question 8

The promotional mix consists of two major components: personal selling and non-personal selling.

Accepted Answer

The promotional mix consists of personal selling, advertising, sales promotion, public relations, and direct marketing, which are categorized into two major components: personal selling (which is a form of personal communication) and non-personal selling (which includes all other forms of communication).

Question 9

A pushing strategy is designed to motivate wholesalers and retailers.

Accepted Answer

A pushing strategy involves pushing products through the distribution channel by motivating wholesalers and retailers to promote and sell the products to the end customer. This is done through various tactics such as providing incentives, offering discounts, and providing promotional materials.

Question 10

A television ad promoting new stain-fighting power of a Tide laundry detergent is an example of increasing sales volume.

Accepted Answer

The answer of A television ad promoting new stain-fighting power...

Question 11

A major portion of U.S.advertising is image-oriented.

Accepted Answer

The answer of A major portion of U.S.advertising is image-oriented....

Question 12

A promotional mix often incorporates more personal selling components.

Accepted Answer

The answer of A promotional mix often incorporates more personal...

Question 13

If you did a breakeven analysis for your firm,it would be possible for you to show management the point at which ________.
A)the level of sales that will cover all of the company's costs
B)the firm would not make a profit if it sold additional units
C)profits would be maximized
D)the firm's fixed costs would climb sharply

Accepted Answer

A breakeven analysis shows the level of sales at which the company will cover all of its costs, both fixed and variable. This information is useful in determining the minimum level of sales the firm must reach to avoid incurring losses. It does not provide information on profits or fixed costs.

Question 14

Consumer products generally depend on pushing strategies.

Accepted Answer

The answer of Consumer products generally depend on pushing strategies....

Question 15

Loews utilizes a pricing strategy of maintaining continuous low prices rather than relying on sales.This strategy is an example of ________.
A)skimming pricing
B)psychological pricing
C)everyday low pricing
D)penetration pricing

Accepted Answer

Loews utilizes an everyday low pricing strategy, which means the prices are consistently low and not dependent on sales or promotions. Skimming pricing involves setting high prices initially and then gradually lowering them, while penetration pricing involves setting low prices to gain market share. Psychological pricing uses pricing techniques to influence consumer perception of value.

Question 16

Positioning is an attempt by marketers to establish unique places for their products in the minds of consumers.

Accepted Answer

This statement is true. Positioning is a marketing strategy aimed at creating a specific image and perception in the minds of consumers about a product or service. The goal is to differentiate the product from its competitors and make it stand out in the marketplace.

Question 17

Explaining the hidden benefits of ownership can enhance a product's value.

Accepted Answer

Explaining the hidden benefits of ownership can help customers understand the full value of a product and may motivate them to make a purchase. By highlighting the benefits that may not be immediately obvious, such as long-term cost savings or environmental benefits, customers may be more willing to pay a higher price. Additionally, understanding the full value of a product can lead to increased customer satisfaction and loyalty, as customers feel that they are getting more for their money.

Question 18

To gain a competitive advantage,marketers that utilize integrated marketing communications should narrow their focus on promotional strategies.

Accepted Answer

Marketers who utilize integrated marketing communications should not narrow their focus on promotional strategies alone. Instead, they should focus on integrating all marketing communication tools to create a cohesive and consistent brand message. This includes advertising, personal selling, public relations, direct marketing, and digital marketing, among others. By integrating all these tools, marketers can gain a competitive advantage by creating a strong brand image and delivering a consistent message to potential customers across all channels.

Question 19

Business costs that change with the level of production are called ________ costs.
A)inflexible
B)fixed
C)variable
D)production

Accepted Answer

Variable costs change with the level of production, meaning they increase or decrease as production levels change. These costs are directly related to the quantity of products or services being produced. In contrast, fixed costs remain the same regardless of production levels, while inflexible and production costs are not commonly used terms to describe this type of cost.

Question 20

An integrated marketing communications strategy focuses on customer needs to create unified promotional messages.

Accepted Answer

An integrated marketing communications strategy aims to provide consistent and well-coordinated promotional messages to customers, which is based on their needs and preferences. The ultimate goal is to create a seamless and effective communication with the target audience, using various marketing channels and tactics. Therefore, the statement is true.

Quiz 13: Promotion and Pricing Strategies

The fundamental purpose of promotion is to persuade and influence customers to purchase a product.

Marketers rarely try to combine pushing and pulling strategies in the same promotional campaign.

A pulling strategy relies less on advertising than a pushing strategy does.

T-shirts Unlimited is conducting a breakeven analysis on unbleached cotton tops.Fixed costs are $100,000 and the per-unit contribution to fixed costs is $20.To break even,the company must sell ________ units.

The Social Club is conducting a breakeven analysis to determine how many tickets it must sell at $20 each to break even on the Holiday Dance.Fixed costs are $4,000,and the variable cost per person is $10.To break even,the Social Club must sell ________ tickets.

Setting a price relatively high compared to similar goods and then gradually lowering it is a pricing strategy called ________ pricing.

Pure Products is introducing a new paper coffee filter at a dramatically reduced cost in order to obtain a market share.This is an example of: