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 demographiccharacteristics 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 notchange.Q5. A trade allowance is an example of a sales promotion strategy.Q6. The marketing mix consists of product price distribution and communication variablesthat 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 productsQ14. 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 StatesT or FT or FT or FT or FT or FTTTTTTTTTorororororororororFFFFFFFFFT or FSection II: Multiple Choices. Select the best answer from among the choices offered for each question. Each question isvalued 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 maturityB. Sales declineC. Market introductionD. Market growthQ5. Which of the following channel intermediaries takes “title” or ownership of the goods?A. Service wholesalersB. Merchant wholesalersC. Selling agentsD. Limited-function wholesalersQ6. When a manufacturer (e.g. Samsung) chooses to market its products through several retailers within a particulargeographic area this distribution strategy is described as:A. Normal distributionB. Exclusive distribution1 C. Selective distributionD. Intensive distributionE. MinimalizationQ7. A ____________ is a tool used to evaluate the attractiveness of a marketing opportunity by examining internal andexternal organizational factors including threats marketplace opportunities firm resources and capabilities etc.A. Breakeven AnalysisB. Sensitivity AnalysisC. SWOT AnalysisD. ROA AnalysisQ8. When an organization/firm establishes a pricing strategy to aggressively increase sales or market share we call thispricing approach ________________________:A.Profit maximization policyB.Penetration pricing policyC.MarkupD.Status Quo pricing policyQ9. If a marketing manager wanted to ship large quantities (more than 500 000 pounds) of relatively high-valueproducts over long distances at the least expense which of the following modes should be used?A. AirlinesB. RailroadsC. Trucking companiesD. Inland waterwaysQ10. In “traditional channel systems ” the channel member who exerts control over other members is sometimesreferred to as the:A. Channel captainB. Channel memberC. Producer or manufacturerD. IntermediaryQ11. A ____________ is a questionnaire format that uses words to scale a respondent’s answer.A. Value Proposition ScaleB. Likert ScaleC. Semantic Differential ScaleD. Proximity ScaleQ12. Which of the following describes a “risk” to the consumer when purchasing a new product:A. The reputation of the manufacturer or marketerB. The cost of the productC. The style fit or performance of the productD. The opinion about the purchase from family friends and co-workersE. All of the above are risksQ13. Which type of marketing control report only presents information:A. Marketing AuditB. Sales AnalysisC. Cost AnalysisD. Performance ReportQ14. What method is used by governments to tax imports thus protecting domestic industry:A. Voluntary RestraintsB. QuotasC. TariffsD. Trade SanctionsQ15. An organization’s efforts to improve the quality of its processes and products through error reduction might best betermed:A. OptimizationB. Continuous Improvement2 C. BenchmarkingD. MinimizationSection III: Please select the best answer to complete each statement. Each item is valued at 2 points.Market developmentPersonal sellingConvenience productsTrucking companiesSpecialty productsSelective distributionFighter or Flanker brandMarket penetrationRetailingIntensive distributionScrambled merchandisingLogisticsAdvertisingExclusive distributionBrandDiffusionUnsought goodsWholesaling1.___________________ involves the transporting storing and handling of goods to match customers’ needs witha firm’s marketing mix.2.____________________ describes all the activities associated with the sale of products and services to finalconsumers.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 amarket.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 andmemorable from competitive offerings.8.__________________________ is selling a product through all responsible and suitable intermediaries who willstock 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 thatuse_________________________ 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 Breakevenpoint (in units and dollars) for a company wishing to sell an MP3 Player for $55 with average variable costs of $35 perunit and estimated total fixed costs of $180 000?3 Bonus Section V: Identify AND describe three (3) key ideas concepts or strategies that you remember from our classdiscussion and assignments. This section is worth up to three (3) points.4
