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)