Calculate the net marketing contribution variance, if the actual net marketing
contribution and net marketing contribution estimated in the plan are $450,000 and
$900,000, respectively. The actual percentage of market share is 25%.
A) $450,000
B) $11,250
C) -$450,000
D) -$11,250
E) $225,000
Chloe is examining her company’s marketing performance metrics. Which of the
following would be on the list?
A) capacity utilization
B) operating expenses
C) earnings per share
D) customer value
E) return on assets
Owner’s equity is equal to ________.
A) brand assets minus brand liabilities
B) brand assets divided by brand liabilities
C) company assets minus company liabilities
D) company assets divided by company liabilities
E) company liabilities minus brand liabilities
The objective of a ________ communication strategy is to motivate channel
intermediaries to carry a particular product or brand and, in this way, make it more
available to consumers.
A) push
B) pull
C) pulsing
D) lateral
E) heavy-up
Which of the following statements is true about branding?
A) The first step in developing a brand identity is to focus on product features rather
than customer benefits.
B) An internally focused business is best prepared to build a brand identity that would
be meaningful to target customers.
C) A brand name provides customers with a way to quickly comprehend the brand’s
primary benefits.
D) A brand-encoding system refers to the measures taken to protect a brand name.
E) Functional names refer to brand names that are associated with an experience.
The rapid growth of database marketing technologies has lured many businesses down
a side road where technology is seen as the solution instead of a tool for building a
solution. Without a solid commitment to serving individual customer needs, these
businesses can fall into a ________.
A) reverse marketing trap
B) technology trap
C) customization trap
D) downward spiral
E) price trap
Margin per unit equals ________
A) demand x sales
B) total sales contribution – marketing and sales expenses
C) price – fixed unit cost
D) price – variable unit cost
E) price – total unit cost
Ace Motors recently introduced a hybrid automobile named Opus. Since its
introduction, this offering has achieved a 1.2% market share in this market. Ace Motors
has conducted research in an effort to assess its opportunity for market share
development. The table below indicates consumers’ current response at each step along
the share performance path for Ace Motors’ Opus hybrid automobile as well as the
potential performance for each of the share performance metrics:
Mini-Case Question. Calculate the share performance gap between the actual and desired
customer response.
A) -14%
B) -6.2%
C) 6.2%
D) 14%
E) 20.2%
________ is the ratio of the percentage change in volume to the percentage change in
price.
A) Market demand
B) Market share needed
C) Price elasticity
D) Average selling price
E) Volume sold
Which of the following types of marketing intermediaries assumes the selling
responsibility for a business and receives a commission when a sale occurs, as part of a
direct channel system?
A) retailers
B) brokers
C) wholesalers
D) commercial distributors
E) dealers
________ pricing involves raising prices incrementally to the point where the best
combination of volume and margin is achieved during the mature stage of the product
life-cycle.
A) Low-cost-leader
B) Penetration
C) Harvest
D) Reduce-focus
E) Skim
________ is the percentage of target customers who are exposed to the business’s
message through a certain combination of media.
A) Target market reach
B) Target market frequency
C) Target market effectiveness
D) Target market rate
E) Target market pulse
The cost of goods sold and the SGA expenses of an organization are $60 million and
$25 million, respectively. Its other operating expenses amount to $15 million.
Determine the total operating income of the organization if it generates sales revenues
of $150 million.
A) $100 million
B) $90 million
C) $75 million
D) $60 million
E) $50 million
Marketing return on sales equals ________.
A) profits/sales revenues x 100%
B) gross margin/sales revenues x 100%
C) net marketing contribution/sales x 100%
D) net marketing contribution/marketing sales & expenses x 100%
E) sales revenues x % gross margin
AVB Inc. is a business that produces automobile parts. The plan and the actual
performance of the business are shown in the table.
Mini-Case Question. Calculate the net marketing contribution variance of the business.
A) -$20,000
B) $20,000
C) $140,000
D) -$26,000
E) $26,000
A market definition that is limited to a particular product focus concentrates on
________ needs of customers.
A) unserved
B) future
C) articulated
D) unarticulated
E) hidden
Which of the following is considered a competitive environment factor that influences a
market’s attractiveness?
A) buyer power
B) growth rate
C) price rivalry
D) channel access
E) sales requirements
Which of the following is a defensive strategy that strives to maximize profits and cash
flow as a business slowly exits a product-market?
A) a harvest strategy
B) a vertical integration strategy
C) a horizontal integration strategy
D) a monetize strategy
E) a divest strategy
New customers will be hard to find, once a market reaches ________.
A) the rapid growth stage
B) the early growth stage
C) its lowest market potential
D) its tipping point
E) saturation
Which of the following is true of penetration pricing?
A) Penetration pricing is a variation of a premium pricing strategy.
B) Penetration pricing is a mass-market strategy rather than a niche strategy.
C) Penetration pricing is best used when there are no competitors in the market and
entry is difficult.
D) Penetration pricing is used in a market where product differentiation is high.
E) Penetration pricing is most effective when potential customers are quality-sensitive
rather than price-sensitive.
Variance in volume reflects any difference in actual versus planned market demand plus
any difference in actual versus planned ________.
A) customer satisfaction
B) market share
C) selling price
D) profit margin
E) marketing expense
Within a company’s competitive position, which of the following is a part of the
company’s differentiation advantage?
A) product quality
B) transaction cost
C) market share
D) marketing expenses
E) distribution
Which of the following is the best example of a mixed marketing channel?
A) Wellspring Cosmetics sells its products exclusively through its monthly catalogs,
mailed to a subscriber list.
B) GTB Computers uses its own sales force to initiate sales contacts, but uses external
local dealers to provide products and after-sales services.
C) Radix Inc., a manufacturer of automotive parts, sells its products to a number of
automobile companies.
D) More4Less.com buys products from manufacturers and sells them to consumers
through its Web site.
E) Apparel retailer UrbanScene elected to close all its brick-and-mortar stores and sell
products only through its online storefront.
As a business builds more of the same product, there is a greater opportunity for
________ effects.
A) scope
B) network
C) learning
D) Mohring
E) cluster
Which of the following is true about an optimize position strategy?
A) It is used for maximizing profits and cash flow as a business slowly exits a
product-market.
B) It is usually used by a business when the growth potential is limited and competitive
position is set.
C) It is an offensive strategic market plan that seeks to improve a business’s competitive
position in an attractive segment of the market.
D) It involves making a conscious effort to increase customer base in order to reach a
more profitable level of business.
E) It requires a large investment in marketing resources.
Which of the following is a mode of push marketing communication?
A) sales promotions
B) direct marketing
C) media advertising
D) social media
E) channel marketing
Number of employees, sales volume, number of locations, years in business, and
financial situation are all examples of ________ forces shaping business market needs.
A) demographic
B) firm demographic
C) company culture
D) usage behavior
E) lifestyle
Which of the following core defensive strategies is appropriate when a business is
operating in a very unattractive market and has a very weak competitive advantage?
A) a harvest strategy
B) a monetize strategy
C) an optimize strategy
D) a protect strategy
E) an invest strategy
Star Treadmill, manufactured by KM Group of Manufacturers, costs $700. The product
has relative cost of purchase of 90, and a perceived customer value of 40. What is the
relative performance of Star Treadmill?
A) 130
B) 50
C) 77.7
D) 40
E) 2.25
The marketing and sales budget of Toby Inc. is estimated to be $450 million. It has
retained 800,000 customers and has acquired 350,000 new customers. The marketing
administration cost of the company is $150 million. If the acquisition cost per customer
is $350, calculate the approximate retention cost per customer.
A) $168
B) $222
C) $320
D) $124
E) $85