Section I: True or
False. Clearly circle or underline your
choice. Each item is worth 2 points.
Q1. Marketing is
basically selling and advertising to certain groups of customers. T or F
Q2. When segmenting
markets one should look at geographic location and demographic
characteristics, behavioral needs, customers’ desire and
willingness to compare and shop. T or F
Q3. “Branding”
includes the use of images, names and slogans to identify a product. T or F
Q4. During the
product life cycle (PLC), the attitudes and needs of target customers do not
change. T or F
Q5. A trade
allowance is an example of a sales promotion strategy. T or F
Q6. The marketing
mix consists of product, price, distribution and communication variables
that are under the control of an organization. T or F
Q7. A general
objective of sales promotion is to encourage immediate customer purchase. T or F
Q8. A skimming price
policy usually involves an immediate reduction of an initial high price. T or F
Q9. When demand
changes in relation to a change in price, we describe this as inelasticity. T or F
Q10. Services are “products,” in the marketing sense,
despite not being physical goods. T or F
Q11. In Unitary Elasticity, a revenue neutral outcome
happens. T or F
Q12. Marketing occurs even if an exchange isn’t finalized. T or F
Q13. Exclusive distribution is frequently associated with
high status or luxury products T or F
Q14. Adoption is how quickly a new product or idea spreads
throughout a market. T or F
Q15. Trucking transportation service is the most accessible
mode within the United States T or F
Section II: Multiple
Choices. Select the best answer from
among the choices offered for each question.
Each question is valued at 2 points.
Q1. A “status quo”
pricing policy is best described as:
A. Ignores
costs and sets prices according to a best guess.
B. Is only
sensible when the company is a low cost producer.
C. Starts
with an acceptable final consumer price and works backward to what the producer
can charge.
D. Is profit
maximizing pricing approach.
E. Setting
prices in accordance with competitors’ pricing levels.
Q2. “Intensive
distribution” might be best described as:
A. Using
only a few retail outlets within a geographic area to sell your product.
B. Using as
many retail outlets as is practical and cost-efficient.
C. Using
only one retail outlet within a geographic area to sell your product.
D. Has no
relationship to the number of intermediaries used in a marketing channel.
Q3. Our class
discussion defined “markups” as:
A. A
percentage of total variable cost of production.
B. A
percentage or dollar amount added to the cost to calculate selling price.
C. An
arbitrary dollar amount based on delivery costs.
D. An amount
based upon “cost of advertising.”
Q4. Total industry
sales typically are highest in which of the following product life cycle
stages?
A. Market maturity
B. Sales
decline
C. Market
introduction
D. Market
growth
Q5. Which of the
following channel intermediaries takes “title” or ownership of the goods?
A. Service
wholesalers
B. Merchant
wholesalers
C. Selling agents
D. Limited-function
wholesalers
Q6. When a
manufacturer (e.g., Samsung) chooses to market its products through several
retailers within a particular geographic area, this distribution strategy is
described as:
A. Normal
distribution
B. Exclusive
distribution
C. Selective
distribution
D. Intensive
distribution
E. Minimalization
Q7. A ____________ is
a tool used to evaluate the attractiveness of a marketing opportunity by
examining internal and external organizational factors including threats,
marketplace opportunities, firm resources and capabilities, etc.
A. Breakeven
Analysis
B. Sensitivity
Analysis
C. SWOT
Analysis
D. ROA
Analysis
Q8. When an
organization/firm establishes a pricing strategy to aggressively increase sales
or market share, we call this pricing approach ________________________:
A. Profit
maximization policy
B. Penetration
pricing policy
C. Markup
D. Status
Quo pricing policy
Q9. If a marketing
manager wanted to ship large quantities (more than 500,000 pounds) of
relatively high-value products over long distances at the least expense, which
of the following modes should be used?
A. Airlines
B. Railroads
C. Trucking companies
D. Inland waterways
Q10. In “traditional
channel systems,” the channel member who exerts control over other members is
sometimes referred to as the:
A. Channel
captain
B. Channel
member
C. Producer
or manufacturer
D. Intermediary
Q11. A ____________
is a questionnaire format that uses words to scale a respondent’s answer.
A. Value
Proposition Scale
B. Likert
Scale
C. Semantic
Differential Scale
D. Proximity
Scale
Q12. Which of the
following describes a “risk” to the consumer when purchasing a new product:
A. The
reputation of the manufacturer or marketer
B. The cost
of the product
C. The
style, fit or performance of the product
D. The
opinion about the purchase from family, friends and co-workers
E. All of
the above are risks
Q13. Which type of
marketing control report only presents information:
A. Marketing
Audit
B. Sales
Analysis
C. Cost
Analysis
D. Performance
Report
Q14. What method is
used by governments to tax imports thus protecting domestic industry:
A. Voluntary
Restraints
B. Quotas
C. Tariffs
D. Trade
Sanctions
Q15. An
organization’s efforts to improve the quality of its processes and products
through error reduction might best be termed:
A. Optimization
B. Continuous
Improvement
C. Benchmarking
D. Minimization
Section III: Please select the best answer to complete each
statement. Each item is valued at 2
points.
Market
development Fighter or
Flanker brand Market
penetration
Personal
selling Retailing Intensive
distribution
Convenience
products Scrambled
merchandising Logistics
Trucking
companies Advertising Exclusive
distribution
Specialty
products Brand Diffusion
Selective
distribution Unsought
goods Wholesaling
1. ___________________
involves the transporting, storing and handling of goods to match customers’
needs with a firm’s marketing mix.
2. ____________________
describes all the activities associated with the sale of products and services
to final consumers.
3. When a
manufacturer sells only through one intermediary in a particular geographic
area, _______________________ is being
used.
4. _______________________
is the process associated with acceptance and use of a new idea or product
within a market.
5. A
marketer has introduced an economy-priced version of a status brand
product. This is referred to as a ____________________________.
6. A
marketing strategy that is focused upon new markets and customers for existing
products is __________________________.
7. _______________________
can be words, symbols, graphics and/or images that make a product distinct and
memorable from competitive offerings.
8. __________________________
is selling a product through all responsible and suitable intermediaries who
will stock and/or sell the product.
9. This type
of paid, marketing communications is frequently referred to as “mass
selling.” It is ______________________________.
10. ___________________________
are products that a consumer would typically not purchase.
11. This is
the most expensive type of marketing communications on a per contact basis
_______________________.
12. As
discussed in class, appliances, furniture, and consumer electronics are product
categories that use_________________________ intensity.
13. A current
trend in retailing is to carry various product categories beyond its core
business. This is called
_____________________________.
14. When a
marketer seeks to increase sales of existing products from current customers,
the ________________________________ strategy is being used.
15. Branded
products that are specifically requested by consumers are called
______________________.
Section IV:Essay/Problem.Answer the following question AND
solve the problem using the information provided. Value 10 points.
Q1. Define the term
“Breakeven Point” and explain its significance for Marketing strategy. Calculate the Breakeven point (in units and
dollars) for a company wishing to sell an MP3 Player for $55 with average
variable costs of $35 per unit and estimated total fixed costs of
$180,000?
Bonus Section V:
Identify AND describe three (3) key ideas, concepts or strategies that
you remember from our class discussion and assignments. This section is worth up tothree (3) points.
