Sample questions to help you prepare for the final exam Here are some multiple choice questions, which should help you test your marketing abilities. Click on the appropriate letter to see whether you have the correct answers. Explanations of the answers appear as well. Good luck! All efforts have been made to make this page error-free. However, it is possible that some errors are still there. Should you find one or think there is one, please let me know. 1. A channel of distribution
a) is only needed when products must be stored. 2. Choosing an indirect channel probably will be better than a direct channel if a producer wants to:
a) obtain a very aggressive selling effort. 3. Channels of distribution a) usually require longer-term planning
than other marketing mix elements because channel decisions are more difficult to change quickly. 4. When planning channels of distribution, a marketing manager should know that
a) vertically integrated systems are seldom used, because of the difficulty of maintaining control. 5. Which of the following statements about ideal market exposure is true?
a) It is necessary to get almost 100 percent market exposure to justify national promotion. 6. A car company sent three automobile magazines some technical information and explanation about the features of its innovative new model. One of the magazines later printed a story about the car. This is an example of: a) publicity. 7. When a firm uses promotion, its basic objective is to: a) make its demand curve more inelastic. 8. Office Distributing Co. sells frequently purchased office supplies to businesses in a metropolitan area. It is a well established company with a large share of the market. Its promotion should probably focus on
a) informing. 9. Poor communication is likely if: a) the encoder and the decoder are not the
same person. 10. The AIDA model consists of four promotion tasks: a) getting Attention, holding Interest, creating Demand, and obtaining Action. 11. A producer using normal promotion efforts - personal selling, sales promotion, and advertising - to help sell a whole marketing mix to possible channel members, has: a) an intensive distribution
policy. 12. In promotion to business customers, personal selling is often the dominant promotion method, because a) purchases are typically large and thus justify the effort. 13. Regarding product life cycles and promotion: a) persuading becomes important in the market growth stage. 14. Spiro Corp. has found that an effective salesperson should call on each account about six times a year and spend about two hours per sales call. Every salesperson works a 40-hour week and takes off two weeks for vacation each year. A salesperson must spend half of his time on travel and administration. Approximately how many salespeople does Spiro need to service 500 accounts? a) 2 15. Regarding sales force payment methods: a) straight commission offers the most incentive for the salesperson. 16. A lawn care firm selling by phone to people listed in the telephone directory should use which of the following sales presentations. a) prepared sales presentation. 17. Which of the following is the best example of an advertising objective? a) "We want to increase profits, and that will require significantly expanding sales of our product." 18. A producer of country music CDs pays a share of local retailers' costs to get them to promote its new releases. This is an example of: a) co-operative advertising.
19. "Advertising agencies" a) do little more than sell media time or space to advertisers. 20. Regarding pricing objectives, a good marketing manager knows that:
a) target return objectives usually lead to a large profit. 21. Which pricing policy is probably "best" for a profit-oriented, low-cost producer who is introducing a new product in a market with elastic demand and is expecting strong competition very soon after product introduction? a) penetration pricing. 22. When setting a price level policy, a good marketing manager knows that: a) she
can easily raise prices if its initial price is too low. 23. Regarding price-level policies: a) charging a lower price than competitors may not mean that a firm is selling «below the market». 24. A «penetration pricing policy»:
a) involves a series of step-by-step price reductions along an inelastic demand curve. 25. Ideally, the ingredients of a good marketing mix should:
a) be determined by which ingredients cost the least. 26. Toshiba has developed a really new consumer electronics item - a heterogeneous shopping product with unique patented features. It probably should use a marketing mix of: a) selective distribution, skimming pricing, pioneering advertising, and a
«push» policy. 27. Which of the following statements illustrates the 80/20 rule? a) «20 percent of our marketing effort is wasted, but we don't know which
one». 28. When involved in the control process, the marketing manager should view company profit a) as the test of whether or not the marketing mix is successful.
29. General summaries and overall marketing cost data a) should not be too detailed, since detailed analysis requires allocating costs that are actually fixed. 30. Marketing cost analysis shows that one of Buildco. Inc's customers is unprofitable, so Buildco should:
a) drop the customer and shift all fixed costs to the other customers. |