Marketing Final

As Vice President of Marketing for Holden-Evan, a highly successful consumer products company, you have been asked by your
superiors to price a new product for the company, an electric razor. Your first chore is to determine the basis on which you will
determine price.
Before you have a chance to analyze the situation, an advisor from sales tells you that this razor will never break into a tough market
unless it has an absolute rock-bottom price.
Which of the following identifies the best reason for why you should ignore advice to employ a competitive price approach in which
you undercut all competitors?

You are considering a cost-plus pricing method for the razor. Which of the following identifies the greatest danger in using this pricing method?

Another pricing method you are considering is break-even pricing. With this method, you compute how many units you will need to sell at a given price to break even. Your VP of Finance, who is focused on profits, is against using this method to set the price. Which of the following best explains why the VP of Finance is against break-even pricing?

Using break-even pricing, suppose your revenue estimate falls short of the break-even point. Which of the following modifications will not result in reaching the break-even point?

Rather than break-even pricing, you are considering setting your price using the target profit approach. Which of the following best explains why target profit pricing is an improvement over break-even pricing?

Another option you are considering is a value-based approach using good-value pricing. Which of the following accurately describes a good-value pricing approach?

Another value-based approach is value-added pricing. Which of the following products is using a value-added pricing approach?

Your current estimates for the razor list $555,000 in fixed costs and $29 per unit in variable costs. Previously, expected sales for the unit were 50,000. New data suggests expected sales of 70,000 units. To obtain a 15 percent profit, what price range should you set?

The estimated demand for various prices for the razor are listed below. Your colleague suggests a break-even price of about $30. PRICE EXPECTED DEMAND
$30 135,000
$35 92,500
$40 60,500
$45 50,000
$50 41,500
$55 20,000
Which of the following best explains why a break-even price of $30 is incorrect?

As a Brand Manager for a for Holden-Evan, a global consumer products company it is your task to develop the brand of Bee!, a newly acquired energy drink. You main task is to create an advertising campaign for the product that successfully competes against established major players in the market. A key difference between Bee! and other energy drinks is Bee!’s appeal to women. Which of the following is the most important thing to communicate for your first Bee! ad?

Before being sold to Holden-Evan, Bee! had experienced a great deal of success in Denver and had a large market share in the local market. One of your assistants advises you to re-run the local ads that were being used in Denver just before Bee! was sold to Holden-Evan.Should you take your assistant’s advice and re-run the Denver adds?

You are considering using a persuasive approach in your initial ad campaign for Bee! Which of the following should you try to persuade your customers to do?

A member of your team thinks that you need to focus on getting people to switch to Bee! Which strategy would be most effective in getting people to switch to Bee!?

In determining an advertising budget, someone in the finance department suggests that you use the affordable method of advertising budgeting that is based on the product’s current profits.Should you take this suggestion and use the affordable method of advertising budgeting?

You are considering this message for the product: “Bee! — the woman's healthy choice to renew your energy.” Which of the following most concerns you about adopting this message for the product?

You think the “Slice of Life” approach that features a working mother who struggles to balance work, exercise and children as a good approach for Bee!Which feature do you consider to be the primary strength of this approach?

You are considering running a print add in a magazine called Working Mother that focuses on women balancing work and family priorities. Without explaining himself, your boss emails that he doesn’t think this is a good choice. Which of the following is most likely to identify the cause of your boss’s objection to Working Mother?

You are looking into holding promotional events for Bee! that distribute balloons with the Bee! logo and free samples of the product.Which of the following would be the best choice as a location for a promotional event?

A member of your team wants to run commercials for Bee! during a morning talk show. You are against this idea. You have compiled a list of reasons for not buying commercial time during the talk show.Which of the following does not belong on your list?

Curtis Precision Manufacturing has named you as its new National Sales Manager. Your task is develop special sales teams to sell specialized metal finishing products to highly targeted customers. The first product features anodizing equipment that manufacturers of such things as electronic devices and automotive parts use to coat titanium with a layer of metal oxide. The second product is a line of waxes, sealants, and polishes for protecting metal boat hulls. The third product is a jewelry and silver polishing kit. Which of the three products is likely to require the least amount of training for its team members?

You are considering options for choosing a sales force for the anodizing equipment.Which of the following would best support choosing a product sales force for selling anodizing equipment?

You are lining up individuals for different sales teams. Why does it make sense to have your most personable sales personnel be chosen for a customer sales force structure?

You are thinking of using a territorial sales force for one of your products. Which of the following is the best reason to use a territorial sales force?

Some of your sales personnel are versatile and can quickly become comfortable in selling almost any product. Other salespeople like to specialize in a single product or discrete product line. In which kind of sales force(s) should your most versatile salespeople be placed?

It turns out that in some areas of the country, the marinas and boat stores that buy Curtis boat products need an extraordinary amount of expert advice. The products behave differently in different weather conditions and a great deal of knowledge is required to use them correctly. Which sales force structure would you recommend for these areas?

For Curtis anodizing equipment, a single salesperson can typically be expected to book $8 million in annual sales. Due to the recent economic slump, your boss has downgraded expectations from $42 million to $36 million for the entire team. How many salespeople should the team have?

For Curtis anodizing equipment, you would like to assign some of your product sales force to answer telephones and emails regarding the technical use of the product. However, you don’t have enough manpower to keep people in the office for these tasks. Which of the following identifies the best solution to your problem?

You are allocating resources for developing a high quality comprehensive customer website to help clients solve problems and find out more about Curtis products. In which of the following would you allocate the greatest amount of funds and resources?

You have decided to have your entire sales force for anodizing equipment use team selling for all of your customers. You are worried, however, that your salespeople are so competitive that they won’t work well together. Which of the following would best ensure success of a highly competitive sales team?

Anon Corporation is a manufacturer of Widgets. Faced with increasing input material costs, the company is contemplating a price increase in the range of 15-20%. There are significant disagreements among senior personnel in the company about this move.
Which of the following, if true, would strengthen the argument in favor of a price increase?

Which of the following, if true, would weaken the argument for a price increase?

Assuming other factors remain constant, Anon would have the most power to raise prices if Widgets were ________.

Gamma Corporation, a leading manufacturer of flash drives, uses a target return pricing approach. Gamma’s standard cost of producing a flash drive is $16. It adds a straight 25 percent markup, setting the price to retailers at $20. The Vice President of Gamma feels that the company should adopt a competition-based pricing approach.
Which of the following is the strongest criticism of the competition-based approach for Gamma?

In adopting a competition-based pricing approach, all of the following are essential questions EXCEPT:

Anon Corporation is a manufacturer of Widgets. The company management is deciding on the appropriate promotion mix strategy. There are substantial differences of opinion among managers about whether a pull or a push strategy would be appropriate.
Which of the following, if true, would strengthen the argument for adopting a push strategy?

Which of the following, if true, would strengthen the argument for adopting a pull strategy?

Which of the following, if true, would most seriously weaken the argument for adopting a push strategy?

Assume that Anon goes for a pull-based strategy because of the product nature of Widgets. Based on this information, Widgets are MOST likely to be ________.

Which of the following combinations of strategies and rationales is most appropriate for Anon?

John Deeley is a sales representative\e at MBI Tool Corporation, a manufacturer of professional power tools such as band saws, polishers, and lathes. As his job title suggests, John’s job involves seeking out and meeting with potential customers to secure orders from them. John tends to take a transaction-oriented approach to selling, focusing on negotiating the best terms for his company in each order. Unfortunately, John has been unable to obtain any orders in the last month due to his ineffective selling process.
Which of the following, if true, is most likely the reason for John’s failure to make any sales?

Which of the following recommendations should John follow to improve his performance?

When confronted by management with his disappointing sales results, John argues that all of his efforts are hitting dead ends because of the poor economy. Which of the following is the best rebuttal to John’s argument?

Fizz Corporation develops and markets soft drinks and related products in the United States. Its product line consists of three beverage brands: Fizz Soda, a carbonated drink; Health Aqua, an enhanced water beverage; and Mango Fizz, a fruit-based drink. Fizz has been approached by an event management company to sponsor a marathon featuring some of the biggest names in the sport. The proceeds from this event will be used to build a facility for homeless children. If it takes up the offer, Fizz will be featured as the event’s beverage sponsor.

Which of the following, if true, would most strengthen the argument for sponsoring this event?

Which of the following, if true, would most weaken the argument for sponsoring this event?

Riverdale Inc., is a multi-platform retailer based in the United States. It primarily does business through direct-mail marketing. The company sells approximately 400 products including statues, die-cast vehicles, T-shirts, posters and lithographs, plush toys, and household decorative items. Riverdale management is exploring ways of improving its direct marketing mechanism.
Which of the following, if true, would most strengthen the argument for continuing direct-mail marketing?

Which of the following, if true, would most weaken the argument for continuing direct-mail marketing?

Which of the following, if true, would most weaken an argument for using e-mail for direct-mail marketing?

One manager argues that Riverdale’s image will suffer if customers receive too many e-mails about its different services and offerings. Which of the following, if true, is the most effective counterargument?

Which of the following is the LEAST intrusive opt-in message for a direct marketing e-mail?

Which promotion tool offers short-term incentives to encourage the purchase or sale of a product or service?

The promotional tool that results in the most credible and believable message is:

A _____ strategy calls for promoting extensively to final consumers. When effective, consumers will ask their retailers for the product, the retailers will then ask the wholesalers for it, who ultimately ask the producers for it.

High-definition DVD players are relatively new products on the market. There are not many competitors and many consumers are not aware of the benefits that come along with the high price tag. Which type of advertising would be appropriate at this stage?

The most logical method of setting a promotion budget is the ______ method, whereby the company sets its budget on what it wants to accomplish with the promotion.

An ad shows how a college student uses her laptop to take notes during class, send email to her grandparents, pay bills online, and research a paper. Which execution style is being used?

The measure of how many times the average person in the target market is exposed to the message is called:

You want an advertising medium that offers high audience selectivity, flexibility, no ad?competition within the same medium, and allows personalization. Which medium would be best?

Public relations departments may perform all of the following functions EXCEPT:

Procter & Gamble encourages customers to discuss its products with each other online through various blogs. Many of the conversations are initiated by P&G, which is an example of which public relations tool?

As a sales representative for your firm, your territory is limited to accounts located within the state in which you currently reside. This type of sales force structure is called:

Your organization has a number of large volume customer accounts that demand exceptional service. The products marketed by your firm are complex. Such a situation calls for a(n):

Pharmaceutical companies employ salespeople who visit doctors to inform them of products. This is an example of which type of sales force?

Sales training programs generally teach sales recruits to do all the following EXCEPT:

Howard must sell five computers systems per month. This is an example of a sales:

______ is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call.

______ consists of short-term incentives to encourage the purchase or sale of a product or service.

McDonald’s Happy Meals include a toy inside. The toy is an example of which type of consumer promotion?

Disney invited children to enter drawings of Mickey Mouse. The grand prize for the best picture was a family vacation to Disney World. This is an example of a:

Melanie is a salesperson at a decorating store and receives $50 from the manufacturer of one brand of carpeting for every customer she influences to buy that brand. What type of promotion is this?

Setting price based on buyers’ perceptions?of value rather than on the seller’s cost is called:

Monthly costs such as rent, interest, and salaries that must be paid regardless of output each month are:

A manufacturer of bicycles has fixed costs of $500,000 and variable costs of $30 per bicycle. If the company sells the bicycle for $80, how many bicycles must be sold to break even?

Initially, you price your new motorcycle at $30,000, but then drop the price to $27,000. Consequently, demand for the new motorcycle jumps by 40%. In this case, demand is:

Market penetration pricing works best when all EXCEPT which the following conditions are met?

Computer printers have become very inexpensive. However, the replacement ink cartridges can cost almost as much as the printer. What product mix pricing strategy is being used?

Discounts offered to channel members for services they provide are called:

Priceway grocery stores frequently advertise some products at very low prices to attract customers to the store in the hope that they will buy other items at normal markups. What price-adjustment strategy is Priceway using?

Charging the same price plus freight to all customers, regardless of their location, is called:

Karen was checking airline prices on the Internet and noticed that prices changed throughout the day and on different days when she checked. This type of pricing routinely practiced by industries such as airlines and hotels is called:

Consumers and business buyers benefit from Internet buying because it is convenient, interactive and immediate, offers a wealth of comparative information and ______

In consumer marketing, a customer database might contain all the following EXCEPT:

Suppose you wanted to sell custom-built cars to consumers using one of the major methods of direct marketing. Which do you think would be the most effective?

CNET.com hosts reviews, how-to advice, online videos, and a vendor listing/price search option for various types of electronic products. Which classification best describes the CNET Web site?

Robert's Clothiers operates a downtown store and an e-tail site on the Web. Robert's is an example of a(n):

Linda is angry at Joe's Pizza for delivering yet another soggy pizza, so she fires off an email to Joe's Pizza criticizing their performance.This is an example of:

Which “C” of effective Web site design refers to the site’s ability to tailor itself to different users or to allow users to personalize the site?

Jason was looking at information on a Web site when an advertisement appeared suddenly in a new window in front of the window he was viewing. This is an example of a(n):

Unsolicited, unwanted commercial email?messages are called:

The most challenging public policy issue currently facing the direct marketing industry is/are: