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THEUNIVERSITYOF
NEWSOUTHWALES
AustralianSchoolofBusiness
SchoolofMarketing
MARK1012: Marketing Fundamentals
Final Examination Session 1, 2012
Instructions:(Pleasereadtheseinstructionscarefully)
ThisexaminationpaperconsistsofTHREEsections:SectionA(10Fillinthegaps:10
marks);SectionB(3Shortessayquestions:20marks)andSectionC(50Multiple
choicequestions:20marks).IthasFIFTEEN(15)printedpagesexcludingthispage.
Printingisdoublesided,socheckeachpagecarefully.
Youhavetwo(2)hourstocompletethisexaminationplus10minsreadingtime.
Readallthequestionscarefullyandanswerallquestionsasinstructed.
Questionsmustbeansweredinink.
WriteallyourMULTIPLECHOICEanswers(SECTIONC)intheGeneralisedAnswer
Sheetprovided.NotethatthereareFIFTY(50)MultipleChoiceQuestions.
PrintyourfullnameandstudentIDnumber{z}onthefirstpageandsign.
UseofUNSWapprovedcalculatorsispermitted.Noothermaterialistobetakeninto
theexaminationroom.
Thispaperaccountsfor40%ofyouroverallcoursegrade(However,itismarkedout
of50).
YoumayNOTretainthispaper.
(10x1 = 10 marks)
1. Marketingreferstotheactivitiesundertakentocreateand_____________productsand
valueswithothers.Amarketingorganisations__________________________________istheset
ofbenefitsorvaluesitpromisestodelivertoconsumerstosatisfytheirneeds
2. _________referstohighgrowth,highshareSBUsorproductswhichgenerallyturninto
__________________whichrefertolowgrowth,highshareSBUsorproducts.
3. ____________arefirmsandindividualswhoprovidetheresourcesneededbythecompany
anditscompetitorstoproducegoodsandservice.____________are.anygroupthathas
anactualorpotentialinterestin,orimpacton,anorganisationsabilitytoachieveits
objectives.
4. __________________istheprocessbywhichpeopleselect,organiseandinterpret
informationtoformameaningfulpictureoftheworld;while_______________describes
changesinanindividualsbehaviourarisingfromanexperience.
5. Thebusinessmarketernormallydealswithfar________________buyersthanthe
consumermarket.Thedemandforbusinessgoodsisultimately______________fromthe
demandforconsumergoods.
6. In___________________marketing,anorganisationdesignsseparateoffersforeachofthe
identifiedtargetmarkets;__________marketingthecompanygoesafteralargeshareof
oneorafewsubmarkets.
7. _______________occurswhenacompanylengthensitslinebeyonditscurrentrange,
downwardsorupwards;_________________istheprocesswherebyaproductlinecanalso
belengthenedbyaddingmoreitemswithinthecurrentrange.
8. Inthecontextofservicemarketing,thefactorof____________________indicatesthat
serviceslackaphysicalelement;whilethefactorof___________________indicatesthat
whenconsideringservices,thereisnostoredinventory.
9. Duetocontinuedtechnologicaldevelopments,productlifecycles(PLCs)aregetting
_________________.Firmsmusthavea"_______________"ofnewproductstoreplaceexisting
productsastheybecomeobsolete.
10. In___________________________,manufacturerspromotetheproducttowholesalers;
wholesalerspromoteittoretailers;andfinallytheretailerspromoteittoconsumers;
___________________________ontheotherhand,callsforspendingalotonadvertisingand
consumerpromotiontobuildupconsumerdemand.
MARK1012FINALEXAMINATION:S12012
Page1
(20 marks)
Whataretheadvantagesofhavingmarketingintermediaries?
b.
Explainhowmarketingchannelsaddvalue.
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MARK1012FINALEXAMINATION:S12012
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QuestionB2:(6marks)
Compareandcontrastmarketskimmingandmarketpenetrationpricing
strategies.Supportyouranswerusingsuitableexamples.
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MARK1012FINALEXAMINATION:S12012
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QuestionB3:(3x2+2=8marks)
DiamondMachineTechnologymakesatoolforsharpeningthebladesofpruning
sheersandglassclippers.Thecompanyhasinvested$250,000indevelopingthis
sharpener.Thistoolwhichisaboutthesizeofapieceofchewinggum,costs$3to
make.Fixedcostsforthesharpeneris$10,000.Thecompanyexpectstosell
100,000sharpenersthisyear.DiamondMachine'smarkuponsalesis30percent,
anditwantstoearna20percentROI.
a. Forthesharpener,calculate(i)markupprice;(ii)targetreturnpriceaswell
as(iii)breakevenvolumeatbothprices.
b. WhichpriceshouldDiamondManufacturinguse?Why?
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MARK1012FINALEXAMINATION:S12012
Page4
SECTIONC:(50Multiplechoicequestions)(50x0.4=20marks)
AnswerALLquestionsbymarkingtherelevantanswerinpencilontheGeneralised
AnswerSheetsupplied.Thereisnonegativemarking.
Pleasesupplythemostappropriateanswer.
1)Inmanyinstances,marketingmanagerstrytoensurethatthereisasenseof
excitement(orenjoyment)associatedwithamarketofferingandthemarketing
communicationused.Increatingexcitement,marketersmayuse_____________:
A)experientialinvolvement.
B)emotionalinvolvement.
C)interactivity.
D)bothexperientialandemotionalinvolvementandinteractivity.
E)theirintuition.
2)Telemarketersprobablymostoftenemploythe________concept.
A)production
B)selling
C)marketing
D)customer
E)societal
3)Thesetofactualandpotentialbuyersofaproductcomprise______________;thebasic
unitofmeasurementforexchangeis________________.
A)amarket;atransaction
B)atransactiongroup;apayment
C)anexchangegroup;anoffering
D)aproductselectionset;aprice
E)anexchange;atransaction
4)Statement_______belowisnotaconditionforanexchangetotakeplace.
A)twopartieseachpossessingsomethingofvaluetotheother.
B)theabilitytoacceptorrejecttheoffer.
C)theabilitytocommunicateanddeliver.
D)eachpartywantingtodealwiththeother.
E)theexistenceofamonetarysystem
5)Relationshipmarketing___________
A)isnotadvisableforsmallscalemarketers.
B)isametaphorfortheintimacywithwhichsomesalespeoplehandletheir
clients.
C)isaboutdevelopinglongtermprofitabletransactionswithselectclients.
D)shouldnotreallybeencouraged.
E)istooexpensiveforsmallerorganisations.
MARK1012FINALEXAMINATION:S12012
Page5
6)Thecustomersevaluationofthebenefitsandcostsofaproductrelativetoits
competitorsisknownas:
A)amarketoffering.
B)naturaldesire.
C)customerperceivedvalue.
D)relationshipmarketing.
E)customersatisfaction.
7)Ifamajorpartofthemarketdislikestheproductsonofferandmayevenpayaprice
toavoidit,thismarketisinastateof:
A)demarketing.
B)irregulardemand.
C)fulldemand.
D)unwholesomedemand.
E)negativedemand.
8)Settingthegoalsforperformanceintermsofmarketshare,returnoninvestment,
andpretaxprofitsallfallunder_____________sectionofthemarketingplan?
A)Theexecutivesummary
B)Thecurrentmarketingsituation
C)Threatsandopportunities
D)Objectivesandissues
E)Marketingstrategies
9)Thecurrentmarketingsituationconsistsofananalysisofthe:
A)market,competitor,strategic,distribution,andmacroenvironmentsituation.
B)market,competitor,product,distribution,andmacroenvironmentsituation.
C)market,company,strategic,distribution,andmacroenvironmentsituation.
D)market,competitor,product,distribution,andmicroenvironmentsituation.
E)Alloftheabove.
10)TheSWOTanalysisisthetooloftenusedtoconductananalysisofthe
macroenvironment.Whatpart(s)oftheSWOTacronymarerelevanttothe
macroenvironment?
A)SW
B)OT
C)SWOT
D)ST
E)OW
MARK1012FINALEXAMINATION:S12012
Page6
ReadtheMINICASEA(MCA)belowandanswerquestions1114.
MINICASEA[MCA]:Themarketingmanagerofanationalbrandofflavouredmilksis
consideringhermicroandmacroenvironmentinordertocompletethesituationanalysis
forthisyearsmarketingplan.Shenotessomekeypoints.Smalltradersarenotconsistently
affordingappropriatefridgespacetoflavouredmilks.Energydrinksarecontinuingtohold
favourintheteenmarket.Youngadultsaged1825aremoreconservativethantheir
slightlyoldercohort2535.UHTorlonglifemilkhasprogressedtothepointwheretaste
testsshowlittlenoticeabledifference.
11)ThefridgespaceproblemreferredtoinMCArepresentsa:
A)microenvironmentthreat.
B)macroenvironmentthreat.
C)microenvironmentweakness.
D)macroenvironmentweakness.
E)AandBabove.
12)Theproductconcerned(inMCA)isconsideredinsomestatesanAustralianicon.
Giventhis,whichofthekeypointslistedhasthecleareststrategicimplications?
A)Smalltradersarenotconsistentlyaffordingappropriatefridgespaceto
flavouredmilks.
B)Energydrinksarecontinuingtoholdfavourintheteenmarket.
C)Youngadultsaged1825aremoreconservativethantheirslightlyolder
cohort2535.
D)UHTorlonglifemilkhasprogressedtothepointwheretastetestsshowlittle
noticeabledifference.
E)NoneofA,B,C,orDabovehasthecleareststrategicimplications
13)Whatwouldbethemostlogicalstrategicimplicationsfortheprominenceofenergy
drinksintheteenmarket?
A)Reducetheresourceallocationaimedatmarketingtowardthisgroup.
B)Promotethebrandasbeinghighinenergy.
C)Identifyopinionleadersamongstthisgroupandprovidethemwithfree
product.
D)Identifyfavouredcelebritiesandhavethemendorsetheproduct.
E)Allarefeasible.
14)Havinglonglifemilkmeanstheproductcanstaylongerinthefridgebeforehaving
tobereplaced.Tothefirm,themainbenefitofthisisreductionofproductionand
distributioncosts.Thisbenefithasbeenderivedthroughchangesinthe___________
A)politicalenvironment.
B)technologicalenvironment.
C)distributionenvironment.
D)physicalenvironment.
E)economicenvironment.
MARK1012FINALEXAMINATION:S12012
Page7
ReadtheMINICASEB(MCB)belowandanswerquestions1519.
MINICASEB[MCB]:AtabusinessparkinthenorthofMelbournethemangerreflectonthe
morningsmeetingwithherleadingorganisations,tryingtounderstandtheirsuccess.She
notesthefollowing.Lennyisconsistentlynotingandlookingforinformationthatmayhelp
hismarketingmanagementdecisions.Mendelisconductingapricingstudyforhisproduct
portfolio.Phillipaissearchingtheinternettotryandsolveamarketingproblemshehas.
Simoneisrunningfocusgroupswithretireestotryandunderstandwhatmotivatestheir
holidaydecisions.Petersayshedoesn'tbotherwithresearchbecausehehasexperienced
staffthathecanalwaysrelyontohelpmakedecisions.
15)Whichoftheseindividualsisclearlyengaginginmarketingintelligence?
A)Lenny
B)Mendel
C)Phillipa
D)Simone
E)Peter
16)LennysresearchreferredtoinMCBaboveislikelytohavebeendrivenbythe:
A)taxationdepartment.
B)accountingdepartment.
C)boardroom.
D)marketingdepartment.
E)productiondepartment.
17)InMCBabove,Phillipaiscollecting:
A)primarydata.
B)secondarydata
C)shorttermdata.
D)electronicdata.
E)focusedgroupdata.
18)Forherresearchactivities(inMCB),Simoneswillneed:
A)eighttotwelvepeopleforthisprimarydatacollectionprocess.
B)eighttotwelveforthissecondarydatacollectionprocess.
C)tentotwentypeopleforthissecondarydatacollectionprocess.
D)tentotwentypeopleforthisprimarydatacollectionprocess.
E)twotothreehighlycommittedindividualswhowillconcentrateontheissue.
19)BasedonMCBabove,Peterisusing:
A) noresearchatalltomakedecisions.
B) externalrecordstomakedecisions.
C)internalrecordstomakedecisions.
D)intuitiontomakedecisions.
E)allofthese.
MARK1012FINALEXAMINATION:S12012
Page8
ReadtheMINICASEC(MCC)belowandanswerquestions2023.
MINICASEC[MCC]:In1991,Emmaneededtomakesomeextracash.Herhusbandwasa
student,andtheyhadtwosmallchildren.ShewasalreadysellingEmma'sCountryKitchen
gourmetcocoamixesatlocalfairsandcraftshowswhenshecameupwiththeideafor
flavouredcreamersforcoffee.Shedevelopedninedifferentflavoursofcreamersincluding
raspberrymochaandcherryvanilla.Responsetothecreamerswassogoodshedecidedto
rentasmallmanufacturingfacility.Hercontinuedsuccessbroughthertotheattentionof
somenationalretailerswhowereinterestedincarryingherproduct.Nationalexposureon
theOptusshoppingchannelgavethebusinessabigboostincustomerawareness.
20)AconsumerwhowasawareofEmma'sCountryKitchenflavouredcreamers,but
whodidnotknowwhereorhowtopurchasetheitem,itscost,oritscontentsand
wasstimulatedtoseekinformationabouttheproduct,wouldbeinthe________stage
ofthenewproductadoptionprocess.
A)interest
B)trial
C)diffusion
D)adoption
E)evaluation
21)AssumethatatthistimemostadoptersofEmma'sCountryKitchenflavoured
creamersfallintothecategoryofearlymajority.Thesewouldbepeoplewho:
A)aretypicallyopinionleaders.
B)aretraditionbound.
C)adoptnewproductsandideasbeforetheaverageperson.
D)adoptnewproductsearlybeforemostpeopleevenknowtheyexist.
E)aresuspiciousofchangebutknowthatitisnecessary.
22)Emmaandherhusbandareconvincedtheircreamershaveatastesuperiortoany
othersimilarproductscurrentlyonthemarket.Theywantconsumerstoseethe
samehighlevelof________thattheysee.
A)compatibility
B)communicability
C)divisibility
D)complexity
E)relativeadvantage
23)Oneoftheimportantfactorsthatwouldinfluenceaconsumer'spurchaseofEmma's
flavouredcreamersistheabilitytosampletheflavoursathome.AsaresultEmma
andherhusbanddevelopedasamplepackwhichcontainedoneounceofeachofthe
creamerflavours.Thisgavethenewproductahighlevelof:
A)relativeadvantage.
B)communicability.
C)complexity.
D)divisibility.
E)compatibility.
MARK1012FINALEXAMINATION:S12012
Page9
ReadtheMINICASED(MCD)belowandanswerquestions2426.
MINICASED[MCD]:Porkisatoughermeatthanmostconsumersrealise.Naturallyitis
muchtougherthananypoultry.Porkproducersareinterestedinproductsthatwill
tenderisepork.Oneoftheproblemsfacedwithquantifyinghowtenderapieceofporkis
definingthewordtender.Electromyographyisoneofthetechniquescurrentlyusedto
objectivelymeasuretenderness.Itinvolvesattachingelectrodestojawmusclesand
measuringonametretheamountofworktheindividualexpendschewing.Onenew
methodcommercialmeatproducersusefortenderisingporkiscalledHydrodyne.Withthis
method,thevacuumpackedmeatisplacedinalargevatofwater.Shockwavescreatedby
adynamiteblastaresentthroughthemeat,whichmakesitmoretender.
24)ThesaleofboththeElectromyographymachineandtheHydrodynesystemdepend
onhowmuchporkconsumerseatthoughthetotaldemandfortheseproductsisnot
affectedbytheirprices.ThismeansthatdemandfortheElectromyographymachine
andtheHydrodynesystemis:
A) derivedandinelastic.
B)reciprocalandelastic.
C)inelasticandfluctuating.
D)inelasticandreciprocal.
E)elasticandderived.
25)BasedonMCDabove,whattypeofbuyingsituationwouldmostlikelyexistfora
porkproducerbuyingdynamiteforitsthreeyearoldHydrodynesystem?
A)Newtask
B)Straightrebuy
C)Reciprocalbuy
D)Functionalrebuy
E)Modifiedbuy
26)AccordingtoMCDabovewhichofthefollowingisanexampleofanorganisational
factorthatcouldaffectthepurchaseofaHydrodynesystem?
A)AgovernmentrulingthattheHydrodyneadverselyaffectstheshelflifeof
pork.
B)Asignificantgrowthinthenumberofpeoplewhoarevegetarians.
C)Alocalordinanceagainsttheexplosionofdynamitewithinthecitylimits.
D)Atriplingofthepriceofdynamite.
E)Amovebyitslargestcustomertocentraliseitspurchasingdecisions.
ReadtheMINICASEE(MCE)belowandanswerquestions2731.
MINICASEE[MCE]:Peterhasjustdecidedonthesegmenttotargetforhiscompaniesnew
offering.Hehasmadeachecklisttohelpfinalisehisdecision:(1)Hehasdeterminedthat
theidealsegmentprofileismeasurablewithinNewZealand;(2)hehasdeterminedwhere
theyliveandshopsaswellaswhatmediatheyareexposedto;(3)heknowsthat,ifthis
marketspotentialisrealised,itwouldmorethantriplehiscurrentsales;and(4)hehasthe
resourcesandconnectionstogettheproducttothismarket.(Questionsareonthenextpage.)
MARK1012FINALEXAMINATION:S12012
Page10
27)InMCEabove,thefirstitemonPeter'schecklistrepresentsthemarketsegmentsis:
A)potential.
B)growth.
C)measurability.
D)identification.
E)alloftheabove.
28)TheseconditemonPeter'schecklistrepresentsthemarketsegments:
A)identification
B)behaviouralintentions
C)lifestyle
D)accessibility
E)obtainability
29)ThethirditemonPeter'schecklistrepresentsthemarketsegments:
A) profitability
B)volume
C)sustainability
D)potential
E)substantiality
30)ThefourthitemonPeter'schecklistrepresentsthemarketsegments
A)accessibility.
B)actionability.
C)approachability.
D)marketingrequirements.
E)alloftheabove.
31)RefertoMCEabove.Peterhasidentifiedanunmetneedinthissegment.Givenhis
evaluationsthusfarheshouldnow_______________.
A) confirmthesegmentandproceedwithsettinghisobjectives.
B) identifythesegment'sprofilewithrelevantcriteria.
C)brandtheproductinameaningfulwayforthesegment.
D)implementhismarketingmix.
E)developaperceptualmap.
ReadtheMINICASEG(MCG)belowandanswerquestions3235.
MINICASEG[MCG]:ArabellaQualityMeats(AQM)isastarintheprocessedmeatindustry.
Withsalesinmorethan140nations,AQMhadalmost$4.6billioninsaleslastyear.Itowns
andoperatesmeatprocessingplantsin40differentnations.AQM'sbusinessstrategy
includesproductinnovation,acquisitionsandmergers,andmarketleadershipinanumber
ofdifferentcategories.Itsgrowthstrategiessupportanannual6percentgrowthinsales.
MARK1012FINALEXAMINATION:S12012
(continuedtonextpage)
Page11
BrandsintheArabellaQualityproductlineareBelle's,EmmasHomeCookin,Sunnydale
Farms,SarahsCookies,Quick&TastyandCordy'sKosherFoods.AnAQMexecutiveclaims
thattheyworkveryhardatArabellaQualityonbrandequity.Wehavetomakesureour
newideasarenotonlyprofitableandachievebigvolumeforour[retail]customers,but
alsothattheyareconsistentwiththequalityofthebrandandthereisagoodfit."
SomeofAQM'srecentnewproductsthatseemstohaveagoodfitwiththecompany'sother
productswasQuick&Tasty.Quick&Tastyisdescribedasalunchcombination.Itfeatures
twosmallsandwiches,chips,anddessert.Thelunchcombinationwasdevelopedand
marketedbyEmmasHomeCookin,acompanythatpriortotheintroductionofthis
producthadjustmadecakes.
32)RefertoAQMCaseinMCGabove.GivenwhatyouhavereadaboutAQM,youwould
thinkthatitsexecutiveswantyoutoclassifytheAQMproductsas:
A)homogeneousshoppingproducts.
B)specialtyproducts.
C)convenienceproducts.
D)staples.
E)impulseproducts.
33)RefertoMCGabove.IfyoulookatAQMasstrictlyameatprocessingcompany,
whichofthefollowingstatementswouldbestdescribethecompany?
A)AQMhasanarrow,butdeepproductmix.
B)AQMhasalonganddeepproductmix.
C)AQM'sproductmixlacksconsistency.
D)AQMhasanarrowandshallowproductmix.
E)AQMhasawide,yetshallowproductmix.
34)RefertoMCGabove.OnebasisformaintainingAQM'sbrandequitywouldbeto:
A)offerinnovativenewproductsonacontinualbasis.
B)makecommunityinvolvementanimportantpartofAQM'sstrategicplan.
C)curbtheentrepreneurialspiritsofitsdecentralisedstrategicbusinessunits.
D)makesurecustomershaveastrongperceptionofbrandquality.
E)useselectivedistribution.
35)RefertoMCGabove.WhenSunnydaleFarms,amanufacturerofvariouskindsof
sausages,introducedanewlineofsausagesmadewithturkeymeatunderthe
SunnydaleFarmsbrand,itwasanexampleofa________strategy.
A)cobranding
B)brandlicensing
C)lineextension
D)multibranding
E)brandextension
MARK1012FINALEXAMINATION:S12012
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ReadtheMINICASEH(MCH)belowandanswerquestions3641.
MINICASEH:[MCH]:AtConsolidatedDiversifiedInc.(CDI),fiveproductmanagerswere
reviewingwheretheirproductswereintheproductlifecycle[PLC].Lola'sproducthadseen
afalloffinsalesandadropinprofits.Boris'sproducthadseenaslowdowninsalesgrowth
andalevellingoffofprofits.Louis'sproductwasgainingrapidmarketacceptanceand
increasingprofitsdramatically.John'sproducthadnotshownaprofitandneedsheavy
promotionsupport.Sonia'sproducthadhighcostsbutnosalestodate.
TheadvertisingdepartmentatCDIwassettingtheadvertisingbudgetforanewconsumer
product(packagedgoods).Teamfeelingswerethatthiswouldbeahighbudgetproduct.
Blakeknewthatthisproductwaslikelytobeamarketleaderandarguedthatexpenditures
wouldhavetobehigh.HazelrealisedthatBlake'splanmeantthattheywouldneedmany
repetitionstoputtheproduct'simageacross.Sabrinawasawarethatthecompetition
offeredsimilarproductsandtheadvertisingwouldhavetoworkhardtosettheproduct
apart.Atomknewitwasexpensivetolaunchnewproductstogainconsumertrial.And
Tikkiwassurethattheywouldhavetospendheavilytobeheardabovethenoiseofan
alreadycrowdedmarket.
36)Whichofthefollowingis(are)correctinthecontextofMCH?
A) Sonia'sproductismostlikelyintheproductdevelopmentstage,whileLolas
productisinthedeclinestageofthePLC.
B) John'sproductismostlikelyintheintroductorystageofthePLC.
C) Louis'sproductismostlikelyinthegrowthstageofthePLC.
D) Boris'sproductismostlikelyintheMaturitystageofthePLC.
E) AlloftheabovestatementsA,B,C,andDarecorrect.
37)BasedonMCH,Blakeisfocusingon_____________insettingtheadvertisingbudget.
A)stageintheproductlifecycle
B)marketshare
C)competitionandclutter
D)advertisingfrequency
E)productdifferentiation
38)AccordingtoMCH,insettingtheadvertisingbudgetHazel'sconcernsaddress_____
A)stageintheproductlifecycle
B)marketshare
C)competitionandclutter
D)advertisingfrequency
E)productdifferentiation
39)InMCH,Sabrinaisweighing__________________whensettingtheadvertisingbudget.
A)stageintheproductlifecycle
B)marketshare
C)competitionandclutter
D)advertisingfrequency
E)productdifferentiation
MARK1012FINALEXAMINATION:S12012
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40)RefertoMCH.Atomisemphasisingwhichfactortobeconsideredwhensettingthe
advertisingbudget?
A)stageintheproductlifecycle
B)marketshare
C)competitionandclutter
D)advertisingfrequency
E)productdifferentiation
41)RefertoMCHabove.Tikkiisconsideringwhichofthefollowingfactorsusedwhen
settingtheadvertisingbudget?
A)stageintheproductlifecycle
B)marketshare
C)competitionandclutter
D)advertisingfrequency
E)productdifferentiation
42)Whichofthefollowingfunctionsdomembersofthemarketingchanneltypically
performastheymovemerchandisefromoneleveltothenext?
A)Thecreationofformutility.
B)Activitiesbasedcostaccounting.
C)Risktaking.
D)Lengtheningthechannelsoastoprovidemorespecialisedservice.
E)Eliminatingunnecessarychannelfunctions.
43)Azerolevelchannel_____________.
A)mayalsobecalledabackwardchannel.
B)isthesameasadirectmarketingchannel.
C)hasonlyoneintermediarybetweenproducerandconsumer.
D)hasthreemembers.
E)referstointensivedistributionchannelswherethereareanindeterminate
numberofchannelmembers.
44)Thegoalofchannelsintheservicesectoristomaketheservice______________.
A)availableandaccessible.
B)affordable,differentiated,andeasytofind.
C)riskfree,readilyavailable,anddifferentiated.
D)differentiated,targeted,andaffordable.
E)affordableandaccessible.
45)Thethreedegreesofdistributiondensityare_________________.
A)intensive,extensive,andselective.
B)extensive,concentrated,andselective.
C)intensive,exclusive,andselective.
D)extensive,pervasive,andconcentrated.
E)concentrated,exclusive,andintensive.
MARK1012FINALEXAMINATION:S12012
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46)The____________combinessuccessivestagesofproductionanddistributionunder
singleownership.
A)horizontalmarketingsystem
B)conventionalmarketingsystem
C)multichannelmarketingsystem
D)corporateverticalmarketingsystem
E)contractualverticalmarketingsystem
47)Whenaproducerhasaconflictwithitswholesalers,theproducerisexperiencing
________conflict.
A)horizontalchannel
B)multichannel
C)directchannel
D)verticalchannel
E)singlechannel
48)Acomputermanufacturersellsitsmachinesthroughretailoutletsandcatalogues.
Theretailersarenothappyaboutthecataloguesalesbecausetheyclaimthedirect
marketingsalesareadverselyaffectingtheirinstoresales.Thisisanexampleof
______________conflict.
A)horizontalchannel
B)directchannel
C)multichannel
D)verticalchannel
E)singlechannel
49)VirginBlueAirlineshassetitsticketpriceslowerthananyoneelse'sprices.It
operatesinamarketthatishighlypricesensitiveinwhichlowpricesstimulate
marketgrowth.Itscostshavefallenasithasbecomemoreefficientatproviding
airplaneservicetoitscustomers.VirginBlueisusinga________pricingstrategy.
A)marketskimmingpricing
B)productqualityleadership
C)maximumcurrentrevenue
D)marketpenetrationpricing
E)maximumsalesgrowth
50)Demandislikelytobepriceelasticif:
A)therearemanyalternativesanddirectsubstitutesfortheproduct.
B)buyersdonotreadilynoticepricechanges.
C)buyersareslowtochangetheirpurchasinghabits.
D)buyersthinkahigherpriceisjustifiedbyqualitydifferences.
E)thebuyerscanusenormalinflationtoexplainthepriceincrease.
ENDOFEXAM
MARK1012FINALEXAMINATION:S12012
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