- June 10, 2020
FINAL EXAM 1
Section I: True or False. Clearly circle or underline your choice. Each item is worth 1point.Q1. Marketing is basically selling and advertising. T or F
Q2. When segmenting markets, one should look at geographic location, demographics of the target(s) behavioral needs and customer’s desire and willingness to compare and shop. T or F
Q3. Branding includes the use of trademarks, images and brand names 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 communications variables that is under the control of a marketer. T or FQ7. The general objective of sales promotion is to encourage delayed (later) customer purchase. T or F
Q8. A skimming price policy usually involves a slow increase of an initial low price. T or F
Q9. When demand changes in relation to a change in price, we describe this as elasticity. T or F
Q10. Services are not products in the marketing sense, because they are not physical goods. T or F
Q11. A status quo pricing policy sets prices independently of the competition. T or F
Q12. New Task/Objective budgeting is the same as zero-based budgeting. T or F
Q13. Public Relations uses social media and traditional media to improve public opinion. T or F
Q14 Fixed costs do not change over the short-term, typically 12 months or less. T or F
Q15. A bid/quote pricing method would never be used by a business or institution. T or F
Q16. Pipeline transportation offers the most reliable service among all transportation modes. T or F
Q17. An organization may use all marketing mix variables to change its positioning. T or F
Q18. It is the receiver’s responsibility to ensure that understanding is reached during communication. T or FQ19. Niche marketing and single-segment targeting describe the same strategy. T or F
Q20. A superior or technologically advanced product lends itself to a Price Skimming strategy. T or FSection II: Multiple Choice. Select the best answer from among the choices offered for each question. Each question is valued at 1 point. Q1. A status quo pricing policy is best described as: Ignores costs and sets prices according to a best guess.Is only sensible when the company is a low cost producer.Starts with an acceptable final consumer price and works backward to what the producer can charge.Setting prices in line with competitors pricing levels.
Q2. Intensive distribution might be best described as: Using only a few retail outlets within a geographic area to sell your product.Using as many retail outlets as is practical and cost-efficient.Using only one retail outlet within a geographic area to sell your product.Q3. Our class discussion defined markups as: A percentage of total variable cost of production.A percentage or amount added to the cost of a good or service product.An arbitrary dollar amount based on delivery costs.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 maturityB. Sales declineC. Market introductionD. Market growth
Q5. Which of the following intermediaries takes title or ownership of the goods?A. Service distributorsB. Merchant wholesalersC. Selling agentsD. Limited-function wholesalersQ6. When a manufacturer (e.g., Thomasville Furniture) chooses to market its products through several retailers within a particular geographic area, this distribution strategy is described as: A. Normal distributionB. Exclusive distributionC. Selective distributionD. Intensive distribution
Q7. A is an analysis tool used to evaluate the attractiveness of a marketing opportunity by examining internal and external organizational factors including competitive threats, marketplace opportunities, firm resources and capabilities, etc.A. Breakeven AnalysisB. Performance AnalysisC.SWOT AnalysisD.ROI AnalysisQ8. When an organization/firm establishes a pricing strategy to aggressively increase sales or market share, we call this pricing approach :A. Profit maximization policyB. Penetration pricing policyC. MarkupD. Status Quo pricing policyQ9. If a marketing manager wanted to ship small quantities (less than 50,000 pounds) of relatively high-value products (i.e. HDTV televisions) over short distances at an economical cost, which of the following modes should be used?A. PipelinesB. RailroadsC. Trucking companiesD. Inland waterwaysQ10. In a traditional channel systems the channel member who exerts control over other members is sometimes referred to as the: A. Channel Captain or LeaderB. Channel member C. Producer or manufacturerD. Intermediary
Q11. This type of marketing communications offers an incentive for customers to buy immediately and increase their purchase quantity: A. Personal SellingB. Public RelationsC. Sales PromotionD. AdvertisingQ12. Our willingness to accept or try a new idea or product is described as: A. ObservabilityB. AdoptionC. DiffusionD. Cognitive DissonanceQ13. Which of the following IS NOT AN EXAMPLE of Survey Market research? A. Telephone Interview B. Mall Intercept C. Internet Questionnaire
D. Focus Group
E. One-way mirror
Q14. Which type of business philosophy is concerned with maximum output at the lowest cost: A. Sales Orientation B. Marketing Concept
C. Social Marketing
D. Production orientationQ15. An individual or organizations willingness to give up something of value for something of equal or greater value is called ?A. Transactional AnalysisB .ExchangeC. MotivationD. ObsolescenceSection III: Please select the best answer to complete each statement. Each item is valued at 1 point. Market developmentCompetitive advantage Market Penetration RetailingIntensive distribution ExchangeFighter or Flanker brandLogistics PositioningAdvertisingExclusive distributionSelective DistributionBrand Diffusion Sales Analysis1. Logistics Positioning involves the transporting, storing and handling of goods to match customers’ needs with a firms marketing mix.
2. Retailing 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, exclusive distribution is being used.
4. Brand diffusion is the process associated with the spread and use of a new idea or product.
5. A producer has a marketing mix that is perceived to be better than competitor offerings. This is referred to as competitive advantage.
6. A marketing strategy that is focused upon new markets and customers for existing products is market development.
7. A fighter or flanker brand can be words, symbols, graphics and/or images that make a product distinct and memorable from competitive offerings.
8. Intensive distribution 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 called advertising.
10. Fighter or flanker brand are products offered as a lower priced alternative to a brands high priced items.
Section IV: Short Essay/Problems. Each item is worth 5 points. Please use the reverse side of sheet, if needed. Please answer all four (4) questions completely to receive full credit. Q1. What are the four (4) controllable decisions/variables that an organization uses to develop a marketing strategy. Please identify and describe each decision/factor.
Price: – It refers to the physical goods and services sold/offered by a company.
Promotion: – This is the value or the amount that a product or service costs.
Product: – It is whatever a company is offering for exchange.
Place: – It refers to the availability of a product, when and where the customer requires.
Q2. Define the following terms used to determine marketing finances:
Variable cost is a cost that changes depending on the level of output. An increase or a decrease in production results in the respective change of the variable cost.
Fixed cost is an expense that must be paid by a company in the presence or absence of any business activity. An increase or decrease in the amount of goods or services produced or sold does not change the cost.
Breakeven point is the point where a company’s total costs are equal to a company’s total revenues.
Elasticity of demand is the degree to which demand for a good or service changes depending on price.
Markup is the amount added to the cost price of goods to cover overhead costs and profit.
Q3. Identify and describe the five (5) types (modes or elements) of marketing communications.
Advertising: – it entails non-personal presentation of ideas, goods and services by an identified sponsor.
Sales promotion: – it is the use of various short term incentives to encourage the purchase or the trial of a product or service.
Public relations: – it refers to the use of a variety of programs to protect and enhance the image of a firm or its products.
Personal selling: – it entails face to face interaction with the prospective customer/s.
Direct marketing and e-commerce:-it is characterized by the use of various media to directly communicate and elicit response from customers or prospective customers.
Q4. Calculate the Breakeven point in units and dollars using the following scenario: TFC = $50,000 Selling Price = 12.50/unit and, Average Variable Cost/unit = $4.50.
Break-even point in dollars
BEP=Total cost=total revenue
Break-even point in units
Section V: Bonus Section: There are four (4) methods an organization can use to measure the effectiveness of its marketing effort. Define each of the following:
Sales Analysis is the examination of sales report to view how the goods and services sold, whether the sale are declining or increasing and how effective the sales team are.
Performance Analysis is the use of various metrics to assess the profitability of an entity and how well the entity measures as compared to other companies in the same industry.
Marketing Cost Analysis is a strategy used in marketing where a company analyses costs related to storing, advertising, distribution and selling of a product to determine its profitability.
Marketing Audit is an analysis conducted by a company to review its business strategies. Areas of weakness, opportunities and strengths are identified to improve a firm’s marketing performance