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SECTION1:TrueandFalse<TOTAL20marks>
Foreachofthefollowing,placea"T"ifthestatementis"true","F"ifthestatementisfalse.<20marks,2marks/Question>
___T__1.Competitiveadvantageisauniquestrengthrelativetocompetitors,oftenbasedonquality,time,costor,innovation.
___F__2.Marketsharecanbedefinedinbothcurrencyaswellasinunitssold.Becausebothratioscalculatemarketshare,marketsharewillbethesameforafirmregardlesswhichmeasurementisused.
___F_3.A"high-involvementpurchase"usuallyinvolvesaconsiderableamountoftimeresearchingtheproductandtheproductisaroutinepurchase.
___T_4.Acompanyengagedinenvironmentalscanningiscontinuallyacquiringinformationoneventsoccurringoutsidetheorganizationtoidentifyandinterpretpotentialtrends.
__F__5.Attheinformationsearchstageofthepurchasedecisionprocess,aconsumercomparestheproductwithhisorherexpectationsandiseithersatisfiedordissatisfied.
____F__6.Acohesivemarketingmixconsistsoftheproduct,promotion,price,andpersonnel.
____F__7.Publicityisanypaidformofnonpersonalcommunicationaboutanorganization,good,serviceorideabyanidentifiedsponsor.
____T__8.Directmailandcatalogretailingareexamplesofnonstoreretailing.___F___9.Marketsegmentwouldhaveacollectionofprospectivebuyersthatarereadytobuy。
____F__10."Marketing"isbestdescribedas"promotion".
SECTION2:MultipleChoice:ChooseJustOneAnswer
<Total40,2Marks/Question>
1.__________arewhatisconsiderednormalandexpectedaboutthewaypeopledothingsinaspecificcountry.
A.MoralsB.Ethics
C.Values
D.Customs
Ans:d
2.Questionssuchas:"Whatadsdoyourememberseeingyesterday?"areanexampleofwhattypeofpost-test?
A.Aidedrecall
B.Unaidedrecall
C.Inquirytest
D.Attitudetest.
Ans:b
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3.Thegroupofbrandsaconsumerwouldconsideracceptablefromamongallthebrandsintheproductclassofwhichheorsheisawareisthe__________.
A.evaluativeset
B.evolvedset
C.considerationset
D.alternativeselectiongroup
E.aspirationgroupAns:c
4.Allactivitiesinvolvedinsellingrenting,andprovidinggoodsandservicestoultimateconsumersforpersonal,familyorhouseholduseareknownas:
A.Marketing
B.Retailing
C.PersonalSelling
D.Salespromotion
Ans:B
5.Aconsumer's__________referstothepersonal,socialandeconomicsignificanceofthepurchasetotheconsumer.
A.involvement
B.aspiration
C.acculturativeresponse
D.motivation
E.selectiveperceptionAns:a
6.AtwhatstageofthePLC<ProductLifeCycle>canahigherpriceusuallybecharged?
A.Introduction
B.Growth
C.Maturity
D.Decline
E.R&DEra
Ans:A.
7.Acompanythatsetsalowinitialpriceonanewproducttoappealimmediatelytothemassmarketisusing__________.
a)skimmingpricing
b)penetrationpricing
c)pricelining
d)odd-evenpricing
e)prestigepricing
Ans:b
8.UsingPriceasameasureofthequalityofaproductandsettingpricehighis:
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A.Prestigepricing
B.PricingLining
C.Pricingodd-even
D.Targetpricing
Ans:a
9.Themainreasonsafirmsegmentsitsmarketsare:
A.Torefinesalesforecastsandallowformoreproductdifferentiation.
B.Tocreatemoreword-of-mouthinamarket.
C.Tofocusadvertisingandmonitorsales
D.Torespondtodifferentneedsandwantsinmarketandincreasessalesandprofits
Ans:D
10.A<n>__________intheconsumerpurchasedecisionprocessoccurswhenconsumersscantheirmemoryforpreviousexperienceswithproductsorbrands.
A.problemrecognition
B.internalsearch
C.externalsearch
D.purchasetask
E.antecedentstate
Ans:b
11.Selectingtargetmarketsmeansusingcriteriasuchascostofreachthesegmentand__:
A.Sizeandexpectedgrowth
B.Marketinginvestment
C.Densityofpopulation
D.Valuesofcustomers.
Ans:a.
12.Using__________,manyretailersdeliberatelysellproductsbelowtheirnormalprices<andsometimesbelowcost>toattractattentionandinduceadditionalstoretraffic.
A.customarypricing
B.above-marketpricing
C.loss-leaderpricing
D.prestigepricing
E.skimmingpricing
Ans:c
Feedback:Loss-leaderpricingisdeliberatelypricingaproductbelowitscustomarypricetoattractconsumerattentiontoit.Itishopedthatcustomerswillbuyother,higher-marginproductswhileinthestore.
13.Melissahasjusttoldhersupervisor,"I'msogladIboughttheMotorolaRAZR2
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ratherthanthoseotherphonesIwaslookingat.Icandomyemail,accessmymusicandevensearchthewebwithit.It'slikehavingamini-computerinmypocket".WhichstageoftheconsumerpurchasedecisionprocessisdemonstratedbyMelissa'sconversation?
A.Problemrecognition
B.Informationsearch
C.Alternativeevaluation
D.Purchasedecision
E.Post-purchasebehavior
Ans:e
Feedback:Afterbuyingaproductaconsumercomparesitwithhisorherexpectationsandiseithersatisfiedordissatisfied.Theconsumermayattempttoreducecognitivedissonancebyreinforcingthebeliefthatheorshemadetherightchoice.Thisoccursatthepost-purchasestage.
14.Acountry'seconomicinfrastructureconsistsofallofthefollowingEXCEPT
__________.
A.distributionsystems
B.telephonelines
C.roads
D.banks
E.politicalsystem
Ans:e
Feedback:Communications,transportationsystems,financialservicesaswellasdistributionsystemscontributetoanation'seconomicinfrastructure.Thepoliticalsystem,whileimportantisnotincludedinthetermeconomicinfrastructure.15.Customersatisfactionisanimportantfocusformarketersbecause__________.
A.marketingresearchisaninexpensiveprocess
B.thefinancialvalueofaretainedcustomercanbesignificant
C.customervalueisanon-quantifiablestatistic
D.attractingnewcustomersiseasierthankeepingoldones
E.amarketdevelopmentstrategyispreferabletoamarketpenetrationstrategy
Ans:b
Feedback:Researchshowsthata5percentimprovementincustomerretentioncanincreaseacompany'sprofitsby70to80percent.
16.Betweenclasses,manycollegestudentsstopatconvenientlylocatedvendingmachinesfortheirfavoritecandybarandsoftdrink.Theirchoicesaregenerallymadequicklyandwithlittleornoefforttoconsideralternativeproductofferings.Thecollegestudentsdescribedherearemostlikelyinvolvedin__________.
A.limitedproblemsolvingsituations
B.routineproblemsolvingsituations
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C.extensiveproblemsolvingsituations
D.intensiveproblemsolvingsituations
E.unlimitedproblemsolvingsituations
Ans:b
Feedback:Routinepurchasedecisionsinvolvelow-priced,frequentlypurchasedproducts.Consumerstypicallyspendverylittleeffortortimeseekingorevaluatingalternatives.Purchasedecisionsresemblehabitualresponsesandaretypicaloflow-involvementdecisions.
17.Learningreferstobehaviorsthatresultfrom
A.Repetitionofexperience
B.Thinking
C.Observation
D.Repetitionofexperience,thinkingandobservation.
Ans:D.
18.Arecentinnovationinmarketingchannelswherebyonefirm'smarketingchannelisusedtosellanotherfirm'sproductsiscalled__________.
a)dualdistribution
b)astrategicchannelalliance
c)cooperativedistribution
d)anintegratedchannelalliance
e)amulti-channelventure
Ans:b
19.Thefourstepsinthesequentialbuildingprocessofbrandequityinclude__________,establishingabrand'smeaninginthemindsofconsumers,elicitingtheproperconsumerresponsestoabrand'sidentityandmeaningandtocreateaconsumer-brandconnection.
A.positivebrandawareness
B.productslowerinprice
C.easingconsumers'decisionmaking
D.productshigherinvalue
E.neededmarketmodification
Ans:a
Feedback:Thefourstepsinthesequentialbuildingprocessofbrandequityincludepositivebrandawareness,establishingabrand'smeaninginthemindsofconsumers,elicitingtheproperconsumerresponsestoabrand'sidentityandmeaningandtocreateaconsumer-brandconnection.
20.Whichofthefollowingisacompetition-basedpricingmethod?
A.Customary
B.Prestige
C.Skimming
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D.Pricelining
E.Penetrationpricing
Ans:a
Feedback:Customaryisacompetition-orientedapproach.
Section3:EssayQuestion<Total40Marks>
1.<Total10points>Forseveralyears,theFerrarihasbeenknownasthemanufacturerofexpensive,luxuryautomobiles.Thecompanyplanstoattractthemajorsegmentofthecarbuyingmarketwhopurchasesmediumpricedautomobiles.AsFerrariconsidersthistradingdownstrategy,whatbrandingstrategywouldyourecommend?<5points>Whatarethedisadvantagesordangerstoconsiderwithyourstrategy?<5points>
Answer:TradingdownforFerrariisveryrisky.Thecompanymaylosetheprofitable,uppermarketwhohaspurchasedtheirexpensivecars.FerrarimightdevelopanewcarandchooseadifferentItaliansoundingbrandname.Thecompanymightpromoteit'sheritageas"designedbythemakersofFerrari".Thisdifferentnamemightminimizetheaffectontheirloyalbuyers.Obviously,thisapproachmeansthecompanymust
spendmoremoneypromotingthenameofthisnewcar.multibrandingstrategy,i.e.differentbrandfordifferentmarketsegment.
Reasons:
1.goingtothelow-endmarket,usingdifferentbrandnamewillnotimpacttheFerrari’sbrandnamenegatively.
Danger:
Cost:becauseithastobuildthebrandnamefromtheverybeginning.
Answers
1.Usecorrectterminology:multibranding,ormultiproductbrandingstrategy.<2.5>
2.Givereasonsofwhyusemultibrandingormultiproductbranding.<2.5>
3.Dangers:5
2.Total<31points>
BognerInc.,ahighendsportswearcompany,isplanningonintroducinganewproductthiscomingfall:Asolardenimjacket.ThisjacketislinedwithsolarpatchesthathavethecapabilitytokeepyouriPod,cellphone,andlaptopchargedasyoumakeyourwaythroughtheday.Itcomesinavarietyofstylesappealingtobothgendersandispredominantlygearedtowardsyoungadults<teens,andindividualsintheirearlytomidtwenties>.
2a>BognerInc.isintheprocessofdevelopingthemarketingcommunicationsfortheintroductionofthesolardenimjacket.ThemarketingdirectorisinterestedindesigninganIntegratedMarketingCommunication<IMC>program.Explainhow
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yourIMCprogramdiffersfromanordinaryadvertising/promotionalcampaign,andwhatbenefititprovidesforthecompany.<5marks>
Answers
AnIMCdiffersfromanordinaryadvertising/promotionalcampaigninthatthemessageisconsistentacrossallmediaandpromotions.Areasarefullyintegrated.Allelementsofthemarketingcommunicationsprogramworktogethersynergistically.<2.5eachpoint>2b>WhatthestageofproductlifecycleistheBognersolardenimjacketin?Andwhatarethetypicalcharacteristicsof4Psofmarketingduringthatstageforthisproduct?<10marks>
Answers
ItisontheIntroductionphase<2mark>
<2each>
Product:Usuallyalimitedproductline.Forthisproductitcomesinavarietyofstylesbutnonethelesstheproductisessentiallythesame–asolardenimjacket.
Price:skimmingorpenetrationpricing.Inthisskimmingb/citisahighendretailer.Distribution:limiteddistribution
Promotion:objectiveduringtheintrostageistogainawareness.Primaryfocusofmarketingcampaignwillbetomakeconsumersawareofproduct;educatethemregardingthefunctionalityoftheproduct.
3c>Astheproductmovesalongthedifferentstagesoftheproductlifecycle,changesintheirstrategyisnecessary.List3differentstrategiesBognerInc.canusetoensuretheirgrowthcontinueslongersotheycanreapmoreprofit.Provideanexampleforeachstrategy.<6marks>
Answers
<2markseach–1markfortheterm,1markexplainingtheterm.>
1>marketpenetration<increaseadvertising,increaseawareness…>
2>productdevelopment<alsocalled‘productmodification/modifytheproduct><e.g.:addnewfeatures>
3>Marketdevelopment<alsocalled"marketmodification’/modifythemarket><e.g.:selltoothersegments>
OR
4>Repositioning<targetanewmarket><2marks>
OR:
-lowerprice<0.5marks>
-newdistributionchannels<0.5marks>
3.SellingtheFloatingBed<Total9points>
Afewmonthsago,anawardwas
givenby"CoolStuff"forthe"coolest
newinvention."Thewinnerwasthe
FloatingBedfromtheFloatingBed
Company.Theproductis-asthe
namesuggests-anovalshaped
"queensized"bedthathangsfromthe
ceiling.Ithasagentleswingforthe
sleeper<s>inthebed.
TheFloatingBedmoveslikeatrueone-pointpendulum.Itswingsgentlyandevenlyinallplanesanddirections.Theoverheadsuspensionandtheinertialforcescreatedbypendulummotionhelpstogentlyholdtheoccupant<s>inplace.Thebodyandbrainsubconsciouslyknowandenjoythemotion,whichfeelssecureandnurturing.Thisresultsinextraordinarilycomfortandrelaxation-thekeybenefitofthisproduct.
TheFloatingBedcansupportupto2000lbsandattachestoalmostanybedroomceilingusingitspatentedsuspensionsystem.
Accordingtothecompany,ifaconsumerdoesnotfindthattheFloatingBedprovidesthebestnightsleep,thebedcanbereturnedwitha30daymoneybackguarantee.
Referringtoinformationprovidedaboveanswerthefollowingquestions.
1.Pleasedescribethepotentialtargetmarketofthisfloatingbed.Pleaseusetheterminologiesyoulearnedinmarketing.<6points>
Answers
Studentsshouldusetheterminologies.Terminology1point,description1point.Demographical
Psychological
Geographical
3c>Whatpricingstrategywouldyourecommend,skimmingpricingorpenetrationpricing?Explainthereasonsofyourchoice.<3points>
Answers
Thereisnorightanswer.Aslongasstudentsindicate3reasons,theygetthepoints.
PenetrationPricing.
a.Settingalowinitialpriceonanewproducttoappealimmediatelytothemassmarketispenetrationpricing,theexactoppositeofskimmingpricing.
b.Theconditionsfavoringpenetrationpricingare:
Manysegmentsofthemarketarepricesensitive.
Alowinitialpricediscouragescompetitorsfromenteringthemarket.
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volumesincrease.
c.Afirmusingpenetrationpricingmay:
Maintaintheinitialpriceforatimetogainprofitlostfromitsl
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