A company faces fixed costs of $100,000 and variable costs of $8.00/unit. They plan to
directly sell their product to the market for $12.00. How many units must they produce
and sell to break even?
A. 20,000
B. 25,000
C. 40,000
D. 50,000
E. not enough information to calculate
________ refers to how many people were exposed to a brand through a promotional
effort and ________ refers to how many times they were exposed.
A. Reach; exposure
B. Reach; efficiency
C. Reach; frequency
D. Efficiency; frequency
E. Efficiency; synergy
Which of the following are usually referred to as developing countries?
A. subsistence economies and raw materials exporting economies
B. raw materials exporting economies and industrializing economies
C. raw materials exporting economies and industrial economies
D. industrial economies and industrializing economies
E. industrial economies and post-industrial economies
Which of the following is NOT a price adjustment strategy a marketer might use to
lower the actual price paid by customers, while leaving the sticker price intact?
A. cash discount
B. quantity discount
C. trade-in
D. versioning
E. rebate
Harris, the marketing manager at a small sports retail chain, has conducted a marketing
analysis. He has investigated the company’s internal resources and characteristics, as
well as factors and trends in the competitive sports retail chain market. Which of the
following has Harris completed?
A. a SWOT analysis
B. a portfolio analysis
C. a balanced scorecard
D. a marketing plan
E. a marketing mix
The division of buyers into groups based on their current and desired level of
interaction with a particular market category is ________ segmentation.
A. behavioral
B. psychographic
C. values
D. demographic
E. needs
Applying ________, marketers can affect demand for a product by associating it with
strong drives, using motivating cues, and providing positive reinforcement.
A. subliminal perception
B. social classes
C. the learning process
D. problem/opportunity recognition
E. contextual theory
Refer to the scenario below to answer the following questions.
In the 1970s, Shipshewana was only a small town with a hardware store, a grain mill, a
shoe store, a small restaurant, and a grocery store. Over the next two decades, the small
town transformed into an international tourist attraction, attracting thousands of tourists
who are intrigued with the lifestyle of Shipshewana’s largest population the Amish.
Ben and Mary Miller, having grown up within the Amish faith, decided to capitalize on
their town’s popularity and their woodworking skills. Their shop, Indiana Wood, began
with a small display of handmade hickory rocking chairs, Ben Miller’s specialty. But
within a few months, the display at Indiana Wood included picnic tables, flower boxes,
and small handmade novelty items. No other shop offers the same.
Mary Miller decorated the shop’s display room with authentic Amish décor and
eventually hired three Amish friends to sew and embroider napkins and other textiles
per customer request. In addition, two women from the Amish community sought
permission from the Millers to display home-baked pastries and jellies on Tuesdays and
Wednesdays, the town’s busiest tourist days, when Shipshewana attracts swarms of
visitors to its flea market on the south edge of town.
“Shipshewana is full of specialty shops,” Mary Miller stated. “People don’t come here to
buy things made in China or Taiwan. They want real, Amish-made goods.”
Which of the following marketing-mix elements is currently MOST critical to Indiana
Wood’s success?
A. place
B. price
C. channels of distribution
D. branding
E. physical evidence
________ establishes a price based on the cost to manufacture a product or deliver a
service.
A. Value-based pricing
B. Fixed cost pricing
C. Cost-based pricing
D. A skimming price
E. Price bundling
Members of which two of the five core groups in the American market for
environmentally and socially responsible products would be MOST likely to pay a price
premium for products that are certified organic?
A. LOHAS and Conventionals
B. LOHAS and Naturalites
C. Drifters and Conventionals
D. Conventionals and Naturalites
E. Naturalites and Drifters
Ascot Tires has decided to decrease its prices. The company can expect that ________
for their product will increase.
A. cost-plus pricing
B. value-based pricing
C. demand
D. the experience curve
E. competition
Which of the following is a drawback of cost-based pricing?
A. Sellers earn a fair return on their investment.
B. By tying the price to cost, sellers simplify pricing.
C. When all firms in the industry use this pricing method, prices tend to be similar.
D. This method ignores demand.
E. Without a standard markup, consumers don’t know when they are being overcharged.
According to the BCG growth-market matrix, ________ are products or services that
have low market share in a market with high growth.
A. dogs
B. exclamation points
C. targets
D. stars
E. question marks
Syndicated research provides a company with primary data.
Which of the following is the satisfaction received from owning or consuming a
product or service?
A) utility
B) demand
C) valuation
D) want
E) equity
Creating and updating the marketing plan is the responsibility of ________.
A. the portfolio manager
B. top management
C. the marketing department
D. the finance department
E. the public relations agency
Product ________ contributes to a product’s usability as well as to its looks.
A. style
B. design
C. augmentation
D. brand
E. utility
Which of the following is part of a bait-and-switch tactic?
A. A company advertises a product that it does not plan to sell.
B. An advertisement makes claims of product superiority that cannot be easily proven
or disproven.
C. A marketer makes an exaggerated claim about the effectiveness of the company’s
product.
D. An advertisement falsely inflates the retail value of a product.
E. A company creates new ads to correct misinformation previously delivered through
its marketing campaign.
In your text’s sample marketing plan, two of the company goals are “Achieve growth
rate in sales of 12% for the year 2008″ and “Maintain a gross margin of 45% each
month.” As indicated by these two examples, a marketing goal should be ________.
A. measurable
B. general
C. creative
D. company-wide
E. set by management
Branded Coca-Cola cups have been prominently featured on episodes of American Idol.
This is an example of ________.
A. advertising
B. sponsorship
C. viral marketing
D. sales promotion
E. product placement
Which of the following would be listed under a company’s threats in a SWOT analysis?
A. Revenues have declined for three consecutive quarters.
B. A new entry in the market is priced very competitively.
C. Staff reductions have created anxiety about job security among employees.
D. The new management team is still unfamiliar with some aspects of the business.
E. The company’s access to capital to fund growth is uncertain.
Refer to the scenario below to answer the following questions.
Suzanne and Shandra, longtime friends, share a love of animals. For months, they
talked about starting their own pet services business, listing ideas for services they
might provide and how they might market those services. They were most interested in
providing dog and cat grooming and dog walking services.
Suzanne and Shandra looked for information on established pet service businesses in
their suburban area, using information from the local chamber of commerce and online
research. They discovered that none of the local pet services companies provided
on-site pet grooming. Suzanne and Shandra saw this as a great opportunity to
distinguish their business from potential competitors.
The two women wrote a basic business plan and applied for and received a business
loan to start up On-the-Go Groomers. They proposed to purchase an RV motorhome
and outfit it with two comfortable dog and cat grooming stations. On-the-Go Groomers
would come to clients’ homes to provide pet services instead of requiring pet owners to
come to them!
Six months after launching the business, Suzanne and Shandra are pleased with their
success, but both feel that they are not reaching enough potential customers. So far, they
have relied on local newspaper advertisements and positive word-of-mouth to generate
business. Suzanne said, “We have come so far and really have a great little business
going. But I think we could become much bigger with the right plans in place.”
As a part of the company’s marketing plan, Suzanne wrote, “On-the-Go Grooming
provides convenient and excellent pet grooming services to customers with busy lives
who want the best for their pets.” This statement identifies which of the following about
Suzanne and Shandra’s business?
A. positioning
B. marketing situation
C. marketing mix
D. strategic controls
E. operational controls
Which of the following is an advantage of organizing the sales force by geography?
A. cost-efficiency
B. salespeople with in-depth product knowledge
C. salespeople with in-depth industry knowledge
D. stronger relationships with a company’s most important customers
E. multiple salespeople calling on one customer
The marketing team of a company that has acquired a new brand should be most
concerned with which of the following?
A. changing the new brand’s positioning
B. determining whether any brands in the portfolio should be repositioned
C. maintaining the new brand’s current positioning
D. maintaining the positioning of brands in the portfolio
E. ensuring that the new brand’s target market does not overlap with any of the existing
brands’ target markets
Limited-service merchant wholesalers are less likely than full-service merchant
wholesalers to do which of the following?
A. set the prices of the merchandise they sell
B. take title to the merchandise they sell
C. suffer financial losses if the merchandise they sell is damaged or stolen
D. offer marketing assistance or delivery for the products they sell
E. use their own sales force
A selective distribution strategy is most suitable for which consumer product category?
A. convenience products
B. unsought goods
C. shopping products
D. luxury products
E. materials and supplies
The owner of a grocery store wants to have non-food items delivered, priced, displayed
and inventoried by a wholesaler. Which type of wholesaler best fits the owner’s needs?
A. drop shipper
B. cash-and-carry wholesaler
C. truck jobber
D. rack jobber
E. mail-order wholesaler
Information about a customer’s age, income, and family make-up is in the ________
category of a customer database.
A. demographic
B. psychographic
C. geographic
D. behavioral
E. assessment
The Kirkland products sponsored and sold by the retailer Costco are an example of a(n)
________.
A. organizational brand
B. support brand
C. private label brand
D. sponsorship brand
E. manufacturer’s brand
Which of the following types of information would a company be LEAST interested in
collecting using a CRM system?
A. customers’ academic records
B. customers’ ages
C. customers’ jobs
D. customers’ marital status
E. customers’ purchasing patterns
How can marketers measure the performance of members of their marketing channel?
What is the main advantage of using cost-based pricing methods?
What can a company expect to learn by setting up a test market?
Why are marketers exploring more opportunities in emerging markets?
Why might ad expenditures remain high in the growth stage of the PLC?
Briefly explain why marketers find insights more useful than information.
How do advertisements in digital media such as the Internet differ from advertisements
in other types of media?
Explain the purpose of brand tracking and describe the three components that form the
basic architecture of the brand tracking process.
Explain the purpose of a value map, providing details about how the map should be
interpreted.
In a brief essay, explain the major benefits of direct marketing.
Company X carries organizational and office supplies and follows the sales orientation.
Explain how Company X may lose sight of customer relationships.
Explain why mass marketing in the United States was easier in the 1960s than it is
today.
Explain why open-ended questions might be most appropriate for exploratory research.
Explain why exploratory research, descriptive research, or explanatory research would
be the best method for determining whether shoppers in the Midwest are more sensitive
to a price increase for laundry soap than shoppers on the East Coast are.
Into what BCG quadrant does a high share, high growth product or service fall?
How can discount stores sell merchandise at lower prices?
Explain how the process for purchasing and consuming luxury products differs from the
purchase and consumption of other products.
Explain how a pricing strategy may not change the literal sticker price of a product.