MKTG
3310 Practice Exam (Final Fall 10)
1. The FIRST
decision that must be reached by the company that is introducing a new product
is:
a. where to introduce.
b. the distribution process.
c. the timing of the introduction.
d. the number of outlets to be included in the
rollout.
2. Target
marketing offers several benefits over mass marketing. All of the following
would be among those benefits EXCEPT:
a. the company can market more efficiently and
target its programs toward only those consumers that it can serve best.
b. the company can fine-tune its programs to meet
the needs of carefully defined segments.
c. the company can reduce costs because of the
ability to sell to customers one-on-one.
d. the company may face fewer competitors if fewer
competitors are focusing on the company's chosen market segment.
3. If a
wholesaler pays $50 per unit for an MP3 player from the manufacturer and the
wholesaler's mark up is 50%, what is the price a consumer will have to pay at
the retail store if the retailer has a mark up of 50%?
a. 100
b. 150
c. 200
d. not enough
information to calculate
4. The
promotion tool that may include coupons, contests, premiums, and other means of
attracting consumer attention is best described as being which of the
following?
a. advertising
b. personal selling
c. public relations
d. sales promotion
5. An online
music store, MuSIC.com sells MP3 players.
Their total fixed costs for a month are $5000. The price they charge for an MP3 player is
$200 and their mark up is 50%. How many
would they have to sell to make $10,000 profit in a month?
a. 100
b. 150
c. 250
d. need to know market
share to calculate precisely
6. All of the
following would be ways to segment within the category of behavioral variable
segmentation EXCEPT:
a. occasions.
b. user status.
c. loyalty status.
d. lifestyle.
7. With
respect to market targets, a company should target segments in which:
a. there are the most
customers.
b. there are the most
customers with the most money to spend.
c. the company can
profitably generate the greatest customer value and sustain it over time.
d. there are the fewest
competitors and there are the lowest costs.
8. The first
type of data normally collected and processed in a research effort is called
____________________ data.
a. experimental
b. external
c. primary
d. secondary
9. If an
advertiser were to give consumers useful articles (imprinted with the advertiser's
name) as gifts (such a pen or calendar), which of the following sales
promotional forms would the advertiser be using?
a. samples
b. premiums
c. point-of-purchase
promotions
d. advertising
specialties
10. The owner
of a small men's clothing store has noticed that sales for men's suits are
especially high on Saturdays and at the end of the month. If he chooses to
investigate this phenomenon he would probably choose which of the following
research formats?
a. descriptive research
b. causal research
c. exploratory research
d. investigative
research
11. All of the
following are among the major forces considered to be in a company's macroenvironment EXCEPT:
a. demographic forces.
b. natural forces.
c. technological
forces.
d. competitor forces.
12. If a
company seeks to maximize brand exposure, which of the following distribution
alternatives would be the correct choice?
a. intensive
distribution
b. exclusive
distribution
c. selective
distribution
d. open distribution
13. In the
maturity phase of the PLC, a marketing manager should consider:
a. dropping the product
and moving on to the next product winner.
b. modifying the
market, product, and marketing mix.
c. expanding R & D.
d. pricing to penetrate
the market.
14. All of the
following are characteristics of the convenience product EXCEPT:
a. low price.
b. mass promotion by
the producer.
c. exclusive
distribution.
d. frequent purchase,
little planning, and little comparison.
15. The
measure of the percentage of people in the target market who are exposed to the
ad campaign during a given period of time is called:
a. reach.
b. frequency.
c. impact.
d. performance.
16. You have
10 salespeople working for the company.
You pay each salesperson $30,000 base salary per year and 10% commission
on sales. Each salesperson also gets
$10,000 per year expense budget. If the
product has a selling price of $1000 and production costs of $400 per unit,
what is the minimum number of units a new salesperson would have to sell to
justify hiring him/her if you require each salesperson to generate at least
$20,000 profit for the company?
a. 80 units
b. 120 units
c. 200 units
d. need market share
data to calculate
17. Several
factors have contributed to the rapid growth of sales promotion. All of the
factors listed below have played a part in that growth EXCEPT:
a. greater pressure to
increase sales.
b. more competition and
a decline in differentiation of brands.
c. a relaxing of government
regulations governing sales promotion.
d. advertising
efficiency has declined.
18. Which
orientation is typically practiced when marketing unsought goods?
a. the marketing
orientation
b. the product
orientation
c. the production
orientation
d. the selling
orientation
19. The most widely used method for primary data
collection is called:
a. observational
research.
b. survey research.
c. experimental
research.
d. mechanical research.
20. The stage
of the PLC characterized by overcapacity, greater competition, and the eventual
elimination of weaker competitors is called the:
a. decline stage.
b. introduction stage.
c. growth stage.
d. maturity stage.
21. Your
company sells software that has a selling price of $500 per unit. Fixed production costs are $150,000 per
quarter. Variable unit costs are $250
per unit. If you pay each of your 10
salespeople a quarterly salary of $5000 plus a 10% commission on sales, how
much profit/loss for the quarter would you have if the salesforce
as a whole sold 1100 units?
a. Loss of $20,000
b. Profit of $20,000
c. Profit of $25,000
d. Profit of $100,000
22. With
respect to adopter categories, the _______________ are guided by respect, are
the opinion leaders in their communities, and adopt new ideas early but
carefully.
a. seekers
b. innovators
c. early adopters
d. early majority
23. Market-penetration
pricing refers to the practice of:
a. setting a high
initial price and then penetrating the market with successive prices for each
price sensitive layer.
b. setting a low
initial price to penetrate the market quickly and attract a large number of
buyers to win a large market share.
c. pricing to attract
low volume in many segments so as to gradually penetrate the market as a whole.
d. pricing products
very high to penetrate deeply and quickly into large profits for the company.
24. The type
of retailer that carries a wide variety of product lines, each managed by
specialist buyers or merchandisers, is called a:
a. specialty store.
b. convenience store.
c. shopping goods
store.
d. department store.
25. Which of
the following common survey methods is rated "excellent" for the
control of the sample?
a. mail
b. telephone
c. personal
d. online
26. The
business marketer normally deals with _____________ than the consumer marketer
does.
a. far greater but
smaller buyers
b. far greater and
larger buyers
c. far fewer but far
larger buyers
d. far fewer and smaller
buyers
27. How the
consumer processes information to arrive at brand choices occurs during which
stage of the buyer decision process?
a. need recognition
b. information search
c. evaluation of
alternatives
d. purchase decision
28. The best
illustration of an augmented product category or feature would be the:
a. brand name.
b. packaging.
c. warranty.
d. design.
29. If a
company (in reviewing its product/market expansion grid) decides to pursue new
demographic markets and expand into new geographic markets with existing
products, the company would be following which of the general strategies below?
a. market penetration
b. market development
c. product development
d. diversification
30. If a
company were seeking to design a channel system, the first step would be to:
a. analyze
consumer-service needs.
b. set the channel
objectives and constraints.
c. analyze marketing
intermediaries.
d. factor in (or out)
foreign middlemen alternatives.
31. In
positioning its product, the company first identifies possible:
a. market segments.
b. market targets.
c. competitive
advantages on which to build the position.
d. costs and profit
pitfalls.
32. Kellye is a loyal Sony user. Her television, DVD player,
cassette player, and VCR are all Sony products. When she hears or sees ads for
Sony products, she almost always remembers the good points about the brand. In
addition, when she hears or sees an ad for a competing product that points out
the strengths of its products, she tends to forget these points quickly or does
not process them at all. The process that Kellye has
gone through is best described as being one of:
a. selective retention.
b. selective attention.
c. selective
distortion.
d. stimulus
actualization.
33. Which of
the following would be the most appropriate product for using outdoor
advertising (e.g., billboards)
a. clothing
b. computers
c. investment service
d. insurance
34. A
__________________ is a promotion strategy that calls for spending a lot on
advertising and consumer promotion to build up consumer demand. If the strategy
is successful, consumer demand will move the product through the channel.
a. push strategy
b. pull strategy
c. blocking strategy
d. integrated strategy
35. Stephanie
Cross has a small clothing store, and has identified seven separate categories
of clothing buyers that form the general market for clothing stores in her
city. Her problem is that because of a limited advertising budget, she cannot
effectively reach these various segments (especially since several of the
segments are distant from her store). Which of the following requirements of
effective segmentation would probably rule out segmentation based on
Stephanie's current segmentation classification scheme?
a. actionable
b. substantial
c. differentiable
d. measurable
36. __________________
is well suited to highly targeted marketing efforts and to building one-to-one
customer relationships.
a. Advertising
b. Public relations
c. Sales promotion
d. Direct marketing
37. If a
company chooses (considering its options on the product/market expansion grid)
to offer new styles, sizes, or colors to its existing market, the company would
be following which of the general strategies listed below?
a. market penetration
b. market development
c. product development
d. diversification
38. ________________
consists of dividing a market into distinct groups of buyers on the basis of
needs, characteristics, or behavior who might require separate products or
marketing mixes.
a. Product differentiation
b. Market segmentation
c. Market targeting
d. Market positioning
39. A cereal
manufacturer has decided to place a coupon in the cereal to entice consumer
repurchase. Where should the coupon be
located inside the box?
a. at the top
b. half-way down in the
cereal
c. 3/4 of the way toward the bottom of the box
d. at the bottom of the
box
40. The most frequently shopped type of retail store is the:
a. discount store.
b. category killer.
c. convenience store.
d. supermarket.
41. If a
company's objective were to reach masses of buyers that were geographically
dispersed at a low cost per exposure, the company would likely choose which of
the following promotion forms?
a. advertising
b. personal selling
c. public relations
d. sales promotion
42. You have
the following information about your business.
Fixed expenses: $50,000 per month
Unit Costs: $500 per unit
Break Even number of units: 500
What sales price would you need to charge to break
even?
a. $600
b. $1000
c. $2000
d. need more
information to calculate
43. The type of
market in which sellers try to develop differentiated offers for different
customer segments is called:
a. pure competition.
b. monopolistic
competition.
c. oligopolistic
competition.
d. pure monopoly.
44. In the
___________, a firm faces a trade-off between high market share and high
current profit.
a. decline stage
b. introduction stage
c. growth stage
d. maturity stage
45. Which of
the following is NOT one of the five stages of the buyer decision
process?
a. need recognition
b. brand identification
c. information search
d. purchase decision
46. All of the
following would be considered to be in a company's microenvironment EXCEPT:
a. marketing channel
firms.
b. political forces.
c. publics.
d. customer markets.
47. The stage
in the product life cycle where the strategic focus is on market penetration
and building intensive distribution is the:
a. decline stage.
b. introduction stage.
c. growth stage.
d. maturity stage.
48. Which of the
following promotional budget methods wrongly views sales as the cause of
promotion rather than as the result?
a. affordable method
b. percentage-of-sales
method
c. competitive-parity
method
d. objective-and-task
method
Practice Exam Answer Key
1. c
2. c
3. c
4. d
5. b
6. d
7. c
8. d
9. d
10. b
11. d
12. a
13. b
14. c
15. a
16. b
17. c
18. d
19. b
20. d
21. b
22. c
23. b
24. d
25. c
26. c
27. c
28. c
29. b
30. a
31. a
32. a
33. a
34. b
35. a
36. d
37. c
38. b
39. c
40. d
41. a
42. a
43. b
44. c
45. b
46. b
47. c
48. b