TAMUC MKT521 Final exam

Part 1: Multiple Choice (2 pts. each)

Choose the correct/best answer.

Question 1.1. When Chase Bank mails a 30-day offer for a new pre-approved credit card with a $2,000 limit to a college student, this is an example of ___________.

(Points : 2)

direct-response promotion

integration

publicity

indirect-response promotion

mass selling

Question 2.2.

A flexible-price policy is most likely to be set by a retailer selling ____________.

(Points : 2)

milk

luxury purse like Louis Vuitton

warranty contract

cars

women's shoes

Question 3.3. Which of the following statements might result from a performance analysis? (Points : 2)

Star Dancing's sales are over her quota.

Kim Kard sold more aluminum tubing than steel tubing.

Oscar Award sold less tubing to wholesalers than to manufacturers.

Lucky Charm calls on two of our three biggest customers.

Our top New Jersey sales person sold more aluminum tubing than any of our other sales representatives.

Question 4.4. Most airlines try to get business travelers or the "cream" of a market (i.e., the top of a demand curve) at a high price before aiming at the more price-sensitive customers. This is consistent with a(an) ____________. (Points : 2)

Flexible-price policy

Sales-oriented pricing policy

Skimming pricing policy

Introductory price dealing policy

Penetration pricing policy

Question 5.5. Averages are useful for summarizing data but only analyzing "averages" may be misleading according to __________________. (Points : 2)

the "iceberg principle"

AIDA

"80/20" rule

hypothesis-testing theory

the "50/50" rule

Question 6.6. Channel systems in which the various channel members make little or no effort to cooperate with each other are called ______________ systems.

(Points : 2)

traditional channel

vertically integrated

direct-to-customer channel

franchising

administered channel

Question 7.7. Branding is good for some consumers because it ___________. (Points : 2)

makes shopping easier

provides dependable guides to product quality

helps assure regular satisfaction

connects the product with the benefits the consumer expects

All of these alternatives are correct.

Question 8.8. Josh Adams runs a large cattle farm in Texas. In order to take advantage of higher prices for beef in Europe compared to the United States, he has started selling cattle overseas by using an agent wholesaler who specializes in finding European customers for U. S. firms. He ships the cattle to Europe by water transport. Josh is involved in _________.

(Points : 2)

Exporting

Management contracting

Licensing

Joint venturing

None of the above.

Question 9.9. When developing a good promotion blend, a marketing manager should ____________.

(Points : 2)

be more concerned with persuading the target customers than informing or reminding

determine who the firm is trying to influence

realize that the right blend depends more on what customers expect than on what the firm wants to accomplish

All of the above are true.

None of the above are true.

Question 10.10. For dieters, the highest quality potato chips are probably ______________. (Points : 2)

chips made from all natural ingredients

chips with the best flavor

Gourmet Cape Cod Kettle Chips

chips that are low in fat and calories

any low-cost potato chip brand

Question 11.11.

Which of the following do firms using value pricing tend to avoid?

(Points : 2)

Setting a high price only because consumers already know the brand name.

Building a relationship with a customer which raises their expectations.

Delivering unexpected services which haven't been stated to the customer.

Establishing a price level that gives the target market superior customer value.

Focusing on customer requirements and adopting a relevant marketing mix.

Question 12.12. Godiva, a maker of expensive European chocolates, does not mention price in its magazine advertising. Instead, the ad copy mentions the quality of the ingredients, the fine packaging, and the luxurious boutiques where Godiva chocolates are sold. Godiva seems to be pursuing a pricing objective of ______________. (Points : 2)

meeting competition

nonprice competition

target return

growth in market share

None of the above.

Question 13.13. Dec Ember Co. manufactures and sells tea, coffee, cosmetics, shoes, and sporting goods - all under the Dec Ember brand name. These products are ___________.

(Points : 2)

the firm's product line

generic products

dealer brands

sold with a family brand

specialty products

Question 14.14.

With the "contribution-margin approach" to marketing cost analysis, ___________.

(Points : 2)

all costs are allocated to products, customers or other categories

fixed costs are allocated based on the profit contribution to the firm

variable costs are treated as common costs

common costs which are hard to allocate are ignored

None of the above.

Question 15.15. Which of the following statements illustrates the 80/20 rule? (Points : 2)

"80 percent of our target market doesn't respond to our marketing mix, and we only have a 20 percent market share."

"Of the hundred retailers who carry our products, the top twenty account for nearly 80 percent of our total business."

"20 percent of our marketing effort is wasted, but we don't know which 20 percent."

"We don't know whether our profits are 20 percent higher than we deserve, or only 80 percent of what might be easily obtained."

None of the above.

Question 16.16. Sales of a producer's wax paper food-wrap are declining fast. The advertising manager—looking for a way to attract attention to the brand—suggests changing the package somewhat and promoting it as a "new" product. The Federal Trade Commission ___________________.

(Points : 2)

would allow the company to call the product "new" for only six months

would not approve of this at all

would allow the advertising campaign if it concluded that consumers thought the different package made it new

does not regulate advertising, so it would not pay any attention to this firm

None of these alternatives is correct.

Question 17.17. A computer software company sent three computer magazines some information about the latest release of its popular software program. One of the magazines printed a story about the new version. This is an example of ________. (Points : 2)

personal selling

advertising

publicity

sales promotion

None of these is a good answer.

Question 18.18. The CBS network offers consumers hundreds of hours of television viewing each month, but the typical consumer wants to watch only a few programs. What type of discrepancy does this create? (Points : 2)

Discrepancy of assortment

Discrepancy of quality

Discrepancy of image

Discrepancy of variety

Discrepancy of quantity

Question 19.19. Which of the following does not relate to how control helps marketing managers learn? (Points : 2)

Control helps to plan for the future.

Control helps suggest which positions to eliminate.

Control helps to understand if implementation is working.

Control helps to evaluate if ongoing plans are working.

All of the above applies to the functions of control.

Question 20.20.

Kelly Drake, marketing manager for Find-Ur-Way global positioning systems, is testing the marketing mix for one of her company's new products. The product was introduced in two different markets with different prices and packages. This suggests the new product was in the _________ step of the new-product development process.

(Points : 2)

commercialization

idea generation

development

screening

idea evaluation

Part 2: True/False (2 pts. each)

Answer whether the following statement is true or false.

Question 1.1. How quickly a new product will be accepted by customers and how quickly competitors will follow with their own version of a product are important factors when planning the best strategy for a new product. (Points : 2)

True

False

Question 2.2. Because too much sales data can drown a manager, it's best to start by asking only for breakdowns that involve customer type. (Points : 2)

True

False

Question 3.3. In comparison with other promotion methods, sales promotion can neither be implemented quickly nor get results quickly.

(Points : 2)

True

False

Question 4.4. Marketing audits consider future marketing plans, so they are not concerned with a company's current marketing strategies. (Points : 2)

True

False

Question 5.5. Some firms are forced to use direct distribution when they can't find intermediaries willing to carry innovative, new products. (Points : 2)

True

False

Question 6.6. Direct-response promotion targets groups instead of individuals. (Points : 2)

True

False

Question 7.7. Communication often breaks down because the receiver's decoded message is different than the message the source encoded.

(Points : 2)

True

False

Question 8.8. In the market introduction stage of the product life cycle, if a firm has economies of scale and expects competitors to enter the market soon, it would be wise to adopt a skimming pricing policy. (Points : 2)

True

False

Question 9.9. Because packaged products are regularly seen in retail stores, a good package may give a firm more promotion effect than it could possibly afford with advertising. (Points : 2)

True

False

Question 10.10. Experience shows that it doesn't make sense for marketing managers to allocate costs to specific market segments or products.

(Points : 2)

True

False

Part 3: Essay (10 pts. each)

Discuss the following questions as thoroughly as posssible.

Question 1. 1. Mintu Inc. sells several different types of consumer products and the company attempts to introduce new products periodically. The CEO is a staunch believer of the traditional product life cycle (PLC). However, the current marketing manager believes that while the PLC can be an important tool, this does not mean that all products will follow the traditional PLC. Discuss how the marketing manager can convince the CEO of his/her point of view. (Points : 10)

Question 2. 2. In what ways do the other 3 Ps (of the marketing mix) affect price decisions? Discuss one effect of product, one effect of promotion and one effect of place on price decisions. (Points : 10)

Question 3. 3. The merger of American Airlines and US Airways brings to light legal concerns when horizontal arrangements between firms at the same level are made. Explain the basis for the legal issues. (Points : 10)

Question 4. 4. The "Google" name was initially supposed to be registered as "Googol." However, during the registration process Sean Anderson misspelled the name to "Google." Which name do you prefer - "Google" or "Googol"? Discuss two reasons why your prefered spelling is a good brand/company name. (Points : 10)