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.
Q2. When segmenting markets one should look at geographic location and demographic
characteristics, behavioral needs, customers’ desire and willingness to compare and shop.
Q3. “Branding” includes the use of images, names and slogans to identify a product.
Q4. During the product life cycle (PLC), the attitudes and needs of target customers do not
change.
Q5. A trade allowance is an example of a sales promotion strategy.
Q6. The marketing mix consists of product, price, distribution and communication variables
that are under the control of an organization.
Q7. A general objective of sales promotion is to encourage immediate customer purchase.
Q8. A skimming price policy usually involves an immediate reduction of an initial high price.
Q9. When demand changes in relation to a change in price, we describe this as inelasticity.
Q10. Services are “products,” in the marketing sense, despite not being physical goods.
Q11. In Unitary Elasticity, a revenue neutral outcome happens.
Q12. Marketing occurs even if an exchange isn’t finalized.
Q13. Exclusive distribution is frequently associated with high status or luxury products
Q14. Adoption is how quickly a new product or idea spreads throughout a market.
Q15. Trucking transportation service is the most accessible mode within the United States
T or F
T or F
T or F
T or F
T or F
T
T
T
T
T
T
T
T
T
or
or
or
or
or
or
or
or
or
F
F
F
F
F
F
F
F
F
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
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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
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C. Benchmarking
D. Minimization
Section III: Please select the best answer to complete each statement. Each item is valued at 2 points.
Market development
Personal selling
Convenience products
Trucking companies
Specialty products
Selective distribution
Fighter or Flanker brand
Market penetration
Retailing
Intensive distribution
Scrambled merchandising
Logistics
Advertising
Exclusive distribution
Brand
Diffusion
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?
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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 to three (3) points.
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