Some Sample Questions

A ________ involves the use of a successful brand name to launch new or modified products in a new category. A) line extension B) product line C) brand extension D) private brand E) brand symbol
1. . ________ calls for testing new!product concepts with groups of target consumers. A) "oncept development B) Concept testing ") #dea generation D) #dea screening E) $est mar%eting

________ involves charging a constant low price with few or no temporary price discounts. A) 'igh!low pricing B) $arget return pricing ") "ost!plus pricing D) Everyday low pricing (EDLP) E) (enetration pricing
&.

(roducers benefit from using intermediaries because they ________. ) o!!er greater e!!iciency in ma"ing goods available to target mar"ets B) bring a fresh point of view to strategy development ") eliminate ris% D) are generally bac%logged with orders E) refuse to store products for longer than a few days
).

An advantage of a vertical mar%eting system +,-.) over a conventional distribution channel is that it acts as a ________ system. ) uni!ied B) democratic ") socially responsible D) customer!driven E) tas%!driven
*.

0hen a company determines the number of channel members to use at each level1 three strategies are available2 intensive1 exclusive1 and ________ distribution. A) multichannel B) selective ") international D) direct E) extensive
/.

________ buy mostly from producers and sell to retailers and industrial consumers. A) #ndependents B) 4actory outlets C) #$olesalers
3.

D) Discount stores E) -egaretailers 0hich of the following is 67$ a form of direct mar%eting8 A) personal selling B) public relations ") telephone mar%eting D) direct!mail mar%eting E) 6one of the above
5.

$hough the ________ method of setting an advertising budget is simple to use1 it wrongly views sales as the cause of promotion rather than the result. ) percentage%o!%sales B) affordable ") competitive!parity D) ob:ective!and!tas% E) regression
9.

________ means scheduling ads evenly within a given period. ________ means scheduling ads unevenly over a given time period. A) (ulsing< "ontinuity B) "ontinuity< .easonal C) Continuity& Pulsing D) (ulsing< .easonal E) .e=uencing< >outing
1;. 11. ?pward shifts in demand can be caused by2

A) #ncrease in consumers@ income B) Advertising ") (ublic relations efforts D) "elebrity endorsements E) ll o! t$e above

0ith an understanding of price elasticity1 sellers should %now that the less elastic the demand for their product is1 the more advantageous it is for them to ________. A) drop the price B) raise t$e price ") leave the price where it is D) discontinue the item E) bundle the product with another product
1 .

Aohnson Boats wants to introduce a new model of boat into mature mar%ets in highly developed countries with the goal of =uic%ly gaining mass!mar%et share. As a consultant1 you should recommend a ________ pricing strategy. A) mar%et!s%imming B) mar"et%penetration ") Bone D) discount E) captive!product
1&.

A manager of a 'oliday #nn said1 C0e have power and value in the mar%et and people are willing to pay for it.C $his manager is referring to ________. A) social mar%eting B) brand e'uity ") specialty products D) line filling E) product length
1).

"hris .temen1 the owner of an independent gift store1 is developing an advertising budget. "hris has totaled his companyDs revenues and deducted operating expenses and capital outlays. 'e intends to use a percentage of the remaining funds for advertising. 0hich budget setting method is "hris using8 ) available budget met$od B) integrated method ") percentage!of!sales method D) competitive!parity method E) ob:ective!and!tas% method
1*. 1/. 0hen (roctor E Famble developed the -r. "lean -agic Eraser1 the company needed to explain how the product

cleans grime from walls without removing paint. 0hat type of campaign was most li%ely used by (roctor E Famble for the -r. "lean -agic Eraser8 A) informative advertising B) persuasive advertising ") reminder advertising D) developmental advertising E) comparative advertising

True or false questions:

13.

-embers of the early ma:ority are deliberate< although they rarely are leaders1 they adopt new ideas before the average person.
a. (rue b. 4alse

15.

A difference between advertising and direct mar%eting is that whereas advertising re=uires mar%eters to pay for everyone1 direct mar%eting re=uires mar%eters to pay only for targets.
a. (rue b. 4alse

Some Quantitative Questions

1.

$he mar%eting management of a firm has suggested a price decrease of G1.;; on a product currently selling at G19.9*. $he elasticity of demand is estimated to be 1.1*. #f the goal is to increase revenues1 would you recommend the proposed price increase8 +1 point) a. Hes b. 6o c. $here is not enough information

&

Based on the scenario above1 what would be the expected percentage change in =uantity demanded8 ______I +1 point)

Juestions )& to )* are based on the following scenario about a shoe manufacturer2 Fixed costs are $250,000, the variable cost is $12, and the expected unit sales are 90,000 units.
&.

#f the manufacturer@s mar%eting officer wants to earn a ;I mar%up on cost1 what should the unit price be8 G________ ?sing the price information on =uestion / +mar%up on selling price)1 how many units the mar%eter needs to sell to achieve a profit of G1*;1;;;8 K of units2____________

).

Quant nswers) 1. A +yes). . +19.9* L 15.9*)M19.9*N*.;1I decrease in price would lead to a *.;1 O 1.1* N *.3/I change in =uantity demanded. &. G1 P +G1 O . ;) N G1).); ). +G *;;;;PG1*;;;;) M +G1).)!G1 ) N 1;;@;;; units.