MAR 3023 Final Exam | Q & A (Complete Solutions)

MAR 3023 Final Exam | Q & A (Complete Solutions) Historically, the "channel captain" has been the manufacturer. In recent years, the power has been shifting to Retailers Which of the following is TRUE regarding channels of distribution? Transaction efficiency is an advantage gained through the use of intermediaries. When a channel member bypasses another member and sells or buys product directly, this is termed Disintermediation Cross-docking and inventory management are examples of what concept? Logistics Logistics is most closely related to which element of the marketing mix? Place In a logistics setting, replenishment time refers to lead time for an item, which means the lag from ordering an item until it is received and ready for use or sale. Jon Jabber is a full-function merchant wholesaler who sells hula hoops all over the country. Jon purchases the hula hoops from the manufacturer and stores them in his warehouse until he receives an order from a retailer, at which time Jon packs and loads a truck with the product and ships it to its destination. Jon's firm is what type of wholesaler? Distributor In terms of distribution, when marketing channel members are engaged in financing, grading, marketing information and research, they are performing the _____ function. Logistical Larry's parents decide to buy him a car as a graduation present, so Larry places an order through J for a customized Jeep Wrangler. The information that he specifies is transferred electronically to DaimlerChrysler, the manufacturer of Jeeps. The order is then sent electronically from DaimlerChrysler to its suppliers so they can send the necessary parts exactly when needed to assemble Larry's Jeep Wrangler. Larry's Jeep is manufactured and sent to the local dealer for Larry to pick up. The entire process, from order to delivery, took only ten days. This process is an example of _____ made possible by _____. "just-in-time" inventory management; electronic data interchange Customers currently link to Cisco's website to configure, price, and order its networking equipment. Cisco then sends orders back out across the Internet to producers and assemblers including Celestica, Flextronics, Jabil, and Solectron. Products are built and tested to Cisco standards, sometimes with procedures run remotely by Cisco. Most are then drop-shipped to buyers, untouched by human hands on Cisco's payroll. The individuals who monitor these transactions and make sure each is performed in a cost-effective and timely fashion are engaged in supply chain management Eddie Bauer wants to expand its market share, which is currently 30%. Its current "share of voice" is also 30%. If the company wants to have a market share of 40% by the end of the year, what "share of voice" does it need to have during the year? So, 30% plus 15% equal 45% total share of voice needed in order to achieve the objective. Jamie is conducting a S.W.O.T. analysis for Pepsi. She takes a look at the soda market and sees that there is a little company called "Great Taste" that has figured out a way to make a diet soda that tastes normal, has zero calories, and helps you control your appetite. Great Taste is concluding negotiations to sell its secret recipe to Coca-Cola. Jamie considers this a(n) Threat Assume Gator Specialty Products conducted a product portfolio analysis and found that its t-shirt line was a cash cow. Which of the following would be a reasonable strategy for Gator Specialty? Invest profits derived from the t-shirt line into other Gator Specialty lines categorized as question marks. Gators, Inc., a store that specializes in University of Florida merchandise, centered its marketing plan on the objective to increase sales by 50%. This was based on the assumption that the Gators would be playing in the National Championship game. Because of the unexpected firing of Coach Zook and the not-so-hot season, Gators, Inc. set its objective too high. Fortunately, Gators, Inc. included an alternate way to increase sales by 30% into its marketing plan, just in case the football team was not as successful as anticipated. This is an example of contingency plan Why would it be unwise for Target to try to gain more market share by matching Wal-Mart's low prices? This is only an effective strategy if a firm has the lowest cost in the industry, which Wal-Mart has. 1David and Cecilia Stanford, owners of Prairie Herb vinegars, decided to offer the product in 5-ounce and 13-ounce sizes as well as in a 16-ounce European glass bottle. They also decided to price the smaller bottles at $4.45 and the largest bottles at $13.25. They were determining some of Prairie Herb's Tactics _____ describes the totality of features and characteristics of a good or service that bear on its ability to satisfy stated or implied needs. Quality Bud Light is running a TV commercial that says, in part, "All light beers are low in carbs; choose on taste." By attempting to persuade beer drinkers that Bud Light's superior taste is what really matters, Budweiser is using what concept? Point of difference Each business unit has marketing and other specialized activities (e.g., finance, manufacturing, or research and development) at the _____ level, which is where groups of specialists create value for the organization. Functional A company that uses an organizational structure based on _____ uses functional groupings business activities such as marketing, finance, and R&D Ideally, in effective marketing planning, goals should be _____ in terms of what is to be accomplished and when. Quantified and measurable A _____ is a comprehensive, unbiased periodic review of the strategic marketing process of a firm or strategic business unit (SBU). Marketing audit Marketing audit Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list of all department stores and their sales for the previous year. Next, she estimates Bloomingdale's market share within the industry. To find the value of one share point, Caroline must do which of the following? Divide total industry sales by 100. Bill is the owner of M.E. Inc., which produces miniature internal combustion engines that are used to operate hydraulic systems in heavy machinery. Bill wants to expand his market share by three share points. Total industry sales are $120 million; M.E. Inc. sales are $30 million with a gross margin of $1.2 million. The total industry marketing expenditures are $4 million; M.E.'s current marketing budget is $1 million. What is the amount of the gain/loss M.E. Inc. will experience if they make the investment to acquire three additional market share points, and should M.E. Inc. make this investment? $36,000 loss; M.E. Inc. may or may not want to make this investment depending on their strategic goals. Management experts warn against the tendency to excessively analyze a problem instead of taking action. This problem is called paralysis by analysis Jarrod's Drug Store has a narrow competitive scope and low cost as its source of competitive advantage. Jarrod uses which of Porter's Generic Business Strategies? Cost focus Tom is in charge of marketing for KC Toys. Tom hired an outside firm to perform a marketing audit, which reviews the marketing department's efficiency and effectiveness. After receiving the audit Tom realized that KC needed to take corrective action and rethink their marketing plan. This is an example of which aspect of the strategic marketing process? Implementation Share point analysis includes all of the following steps EXCEPT Estimate firm's return on investment In class, Dr. Lutz talked about a former student (Eric) who is a brand manager for Ocean Spray. Eric gave a presentation a few semesters ago about the responsibilities of his job. He emphasized that as he moved up through the organization, he found that more and more of his time was spent on a certain element in the implementation phase of the strategic marketing process. This element is human resource deployment Andrew is part of the launch of a new ride at Disney. Disney likes to know how long each project will take so that it can allocate its resources correctly. Andrew's manager asked him to figure out how long it will take to get the new ride launched, so Andrew produced the PERT chart below. The numbers are in months. Yesterday, Andrew's boss learned that Universal is launching a new ride in 24 months, and he wants to know how Disney can speed up its process to beat Universal to market. Which of the following actions would accomplish that? Shorten the F-G path by 5 months. Publix has established itself as one of the premier supermarket chains in the nation. They have earned this reputation through their superb customer service. The only thing that hurts Publix is that the variety of products they carry is somewhat limited. Fortunately for Publix, there has been a lot of population growth in Florida, which is Publix' primary market area. Which of the following S.W.O.T. analysis components is NOT represented in this example? Threats McDonald's restaurants have noticed that their restaurants are performing below their desired sales goal. Further details have been requested by management. Specifically, they want a breakdown of the sales in different regions of the U.S. in order to isolate where the shortfalls are coming from. Which type of analysis should be used? Sales Component Analysis Show Me The Dough, an American bread-making company, and Le Baguette, a French bakery that also bakes and sells bread, want to combine their resources to introduce a delicious new variety of bread worldwide. The two companies decide to work together to contribute both capital and expertise, ensuring that this endeavor will be a success. This scenario best represents Joint Venture Wolfgang, a local fashion retailer in Gainesville, was analyzing its business. The owner found the store had total sales of $125,000 but also had returns of $35,000. Cost of goods sold was $50,000. The size of the store is 120 square feet. What were the net sales per square foot? $750/sq ft In retailing, a form of ownership that involves multiple outlets under common ownership is referred to as a(n) corporate chain. Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact are referred to as __________. vertical marketing systems Revlon, a major company in the makeup industry, has sales of $14,500,000. The makeup industry as a whole has sales of $50,000,000. Revlon's gross margin is $4,350,000, and the total marketing effort of the makeup industry is $10,000,000. If Revlon wishes to expand its market share by 3 share points, how much more do they need to spend on their marketing effort, and what is their gross margin gain or loss if they capture the additional market share? $450,000; $0 McDonald's has locations in numerous countries worldwide. To ensure the most successful marketing program, McDonald's gathers information on consumers' preferences in various countries. After analyzing this data, McDonald's decides to focus its marketing efforts on promoting the low price of its food in China, while promoting the wide variety of menu items to attract consumers in Germany. This approach is best described as Multinational Marketing Marketers at Volkswagen in Istanbul created a digital flip film out of some 200 photos to tout their new truck, the Amarok, hoping it would be a clever way to get consumers interested in the truck. The film was one element of the overall promotional mix in support of the Amarok. The film is an example of Volkswagen's marketing tactics. When you are "marketing yourself," which of the following would NOT be considered a part of your promotional mix? The courses you took in college Annie just started selling her old clothes on a website called P. She is trying to convince her friend Kaela to buy from the website because there are really good deals. Which of the following is a common reason why Kaela, along with other consumers, could be skeptical about shopping online? Security of Transactions After years of deliberation, Avia decides to open her own froyo restaurant in Gainesville. She calculates that her total fixed costs each month will be $1,000. The unit variable cost will be $3.50 per cup of froyo. Her investment is $20,000, and she has a "target" ROI of 30%. What should Avia charge her consumers per cup if she sells 400 cups each month and wants to achieve her target ROI by the end of her first year in business? $7.25 Jordan usually buys Converse All Star sneakers at his local Nordstroms. Recently, he searched online and found them on the Converse website at a lower price. Now that he knows this, he will continue buying them online directly from Converse as opposed to going to the store. This is an example of Disintermediation Jasper, an employee at Abercrombie & Fitch, has been working part time as a sales associate, selling directly to customers. He recently received a promotion and is now working on a new project developing an Abercrombie & Fitch store credit card. Considering the functions performed by the distribution channel, Jasper has switched from performing a _____ function to performing a _____ function. Transactional; Facilitating Alexia just designed a new tablet computer for her tech company, "Trendy Technology." She is trying to determine how to properly price the new product. The total fixed costs are $200,000, the unit variable cost is $100, and Trendy wants to make a profit of $60,000. They will produce 400 units. What should Trendy charge per tablet? $750.00 Pricing constraints refer to factors that limit the range of prices a firm may set. Manufacturer's agents (also known as manufacturer's representatives) refer to agents who work for several producers and carry noncompetitive, complementary merchandise in an exclusive territory. Talia works for a furniture manufacturer that sells its products to the retailer Anthropologie. She is trying to calculate how much she will charge Anthropologie for a new quilted couch. Talia knows that Anthropologie will use a 40% markup, and her consumer research estimated that consumers would be willing to pay $1,000 for the couch. How much should Talia's firm charge Anthropologie for the couch? $600.00 Retailers that consistently sell brand name merchandise at lower than regular prices are engaging in __________. off-price retailing The primary purpose of a marketing metric is to measure the quantitative value of a marketing activity. After a few years in the athletic shoe market, Barry has decided to create his own brand of running shoes. The shoes will cost him $90 per pair to produce. He has quite a loyal customer base and decides to use a markup of 40%. How much will Barry charge for each pair of shoes? $150 Brett wanted to buy the new iPhone, but he wanted to see it before he purchased it, so he went to an Apple store. While he was at the store, he spoke to a salesperson who was eager to show Brett all the phone's amazing new features. Brett had seen the phone on Amazon for $150 cheaper than Apple was offering it for in the store, so he went home and bought the phone online. Brett's behavior is an example of which retail phenomenon? Showrooming Mindy owns a manufacturing company, Big N' Bulky, that produces overstuffed, giant furniture. Recently, Big N' Bulky decided to stop selling its furniture through existing furniture stores and instead opened its own chain of retail stores called Bulk Club. What does this action by Big N' Bulky represent? forward vertical integration Customers can build their own bicycle at SevenC by answering a few questions and choosing from a menu of product attributes, prices, and delivery options. The design of a "customized" bicycle is made possible through the use of a __________. Choiceboard Ben & Jerry's is an ice cream producer that markets in the U.S. If Ben & Jerry's were to introduce a line of new "Get the Dough Out of Politics" T-shirts targeted at college students in Asia, it would be using a __________ strategy. Diversification Collaborative filtering refers to a process that automatically groups people with similar buying intentions, preferences, and behaviors and predicts future purchases. Bath & Body Works is considering expanding their company by opening some stores in Europe. In order to expand into the international market, the marketing team is analyzing all the countries in Europe to see which ones offer the best fit for their stores. Which sector is typically the most challenging for marketers as they move into new foreign markets? Social/Cultural A manufacturer using __________ maintains a high price over time so that quality- or status-conscious consumers will be attracted to the product and buy it. prestige pricing Whirlpool recently asked the United States to impose __________ on washing machine imports made by LG Electronics and Samsung Electronics, both South Korean companies, to raise the price of these products. Whirlpool accused these companies of selling below fair market value and receiving anticompetitive export subsidies from their governments, both of which jeopardize American jobs. Tariffs A share point refers to one percent of the sales in a market. Pharmaceutical companies sell some of their products to hospitals and clinics directly. They also market other products to large retail chains like Walgreens that distribute them to their stores across the nation. In addition, they sell products to drug wholesalers that sell to independent drugstores in the U.S. What method of distribution is being used by pharmaceutical companies in this example? dual distribution Inelastic demand exists when a small percentage decrease in price produces a smaller percentage increase in quantity demanded. The practice of exchanging products and services for other products and services rather than for money is referred to as __________. Barter Tesla Motors, Inc., is an American company based in California that designs, manufactures, and sells electric cars. The product has been so popular that the company has decided to enter the European market. However, instead of manufacturing in the U.S. and shipping the cars to Europe, they enter into a contract with a German manufacturer wherein Tesla agrees to allow the German firm to use its technology and brand name in exchange for royalty payments. The German firm will handle all the production, distribution, and marketing of Tesla in Europe. What global marketing strategy is Tesla Motors, Inc. using? Licensing Jim Leland, the guest speaker from Cheerwine, spoke about Cheerwine's marketing strategy. How did he describe Cheerwine's target market? The 18-year-old in all of us The mathematical function that relates the expense of marketing effort to the results obtained is referred to as __________. a sales response function Jarc Macobs is an up-and-coming fashion designer who is just about to enter the market. He wants to make sure that his clothes are marketed as prestigious, expensive, and fashionable. He should choose _____ channel coverage to maximize the prestige of his designs. Exclusive Michael Porter has identified four key elements in a nation's competitive advantage factor conditions; demand conditions; related and supporting industries; and __________. company strategy, structure and rivalry Individuals can choose to purchase Microsoft stand-alone software packages, such as the Microsoft Office 2013 Home and Student versions of Word, Excel, and PowerPoint, for $109.99 each. Or, they may choose to purchase the Microsoft Office 2013 Home and Student suite, which has these three applications plus OneNote in the same package for a price of $140. Microsoft is using a __________ pricing strategy. Bundle S is the number one source for all spearfishing enthusiast needs and wants. The site provides information about what guns and slings are the best as well as information about where to buy spear guns. This website is great for helping a novice pick the perfect first gun and even addresses the needs and questions an expert may have. S is an example of what use of the internet? Facilitating Sales The fundamental, passionate, and enduring principles of an organization that guide its conduct over time are referred to as its __________. core values Briana just bought a new dirt bike that she's been saving up for. Upon purchasing it, the cashier tells her about a website, , that allows bikers to post videos about their bikes and share their experiences. This website is an example of Virtual Community Consider these market shares in the breakfast sausage market. Jimmy Dean 45.2% Johnsonville 34.3% Tennessee Pride 8.2%