QUESTION How does the place strategy differ from the promotion strategy? What will be an ideal response? ANSWER Answer: The place strategy asks: “How do we place (distribute) the product in the right locations?” The promotion strategy asks: “How do we communicate the benefits of the product?” Explanation: The place strategy focuses on placing […]
QUESTION Why do you think many companies rely on intermediaries? What will be an ideal response? ANSWER Answer: Intermediaries are important to many companies because they are the people or firms that move products between producer and customer. Without these intermediaries, many companies would be unable to get their products to the end users. […]
QUESTION Give one example of how a wholesaler acts as an intermediary. What will be an ideal response? ANSWER Answer: Makers of breakfast cereal, such as Kellogg’s, sell products to wholesalers, who in turn sell them to grocery stores, such as Whole Foods, who in turn sell them to customers. In this scenario, the […]
QUESTION Which players are involved in a typical three-intermediary distribution channel, and how does the process work? What will be an ideal response? ANSWER Answer: A typical three-intermediary distribution channel consists of a producer that sells to an agent/broker, that in turn sells to a wholesaler, that in turn sells to a retailer, that […]
QUESTION Which advertising method would MOST likely be used to sell customers life insurance? A) informational advertising B) competitive advertising C) direct-action advertising D) fear-appeal advertising E) reminder advertising ANSWER Answer: D Explanation: D) Fear-appeal advertising attempts to stimulate the purchase of a product by motivating consumers through fear of loss or harm. This […]
QUESTION What’s the difference between agents and brokers? What will be an ideal response? ANSWER Answer: Agents tend to maintain long-term relationships with the people they represent. Brokers, on the other hand, are usually hired on a temporary basis. Their relationship with the buyer or the seller ends once the transaction is completed. Explanation: […]
QUESTION If you want to advertise your product by comparing it more favorably to another brand, which of the following types of advertising would you MOST likely use? A) competitive advertising B) direct-action advertising C) informational advertising D) persuasive advertising E) fear-appeal advertising ANSWER Answer: A Explanation: A) Competitive advertising, which is also called […]
QUESTION What is a rack jobber? What will be an ideal response? ANSWER Answer: A rack jobber is a limited-function wholesaler who furnishes products and display racks or shelves in retail stores and shares profits with retailers. Explanation: A rack jobber is a limited-function wholesaler who furnishes products and display racks or shelves in […]
QUESTION What is Chrysler concerned with if it is considering how often its ads should appear? A) reach B) frequency C) continuity D) cost E) persuasion ANSWER Answer: C Explanation: C) Continuity is the timing of the ads, how often they appear, or how heavily they are concentrated within a given time period.
QUESTION Give an example of how an intermediary adds value to a product. What will be an ideal response? ANSWER Answer: Intermediaries sell products where people want them. An example of this is a wholesaler that moves apples from orchards into retail stores, making it easier for consumers to shop for them. Explanation: Intermediaries […]
