Cost of a promotional campaign


Problem 1. As a market researcher for a cable television company seeking to determine the number of multi-dwelling buildings in a selected neighborhood, your best chance of acquiring this information quickly would be

a. census information available on the Internet.
b. the local Better Business Bureau.
c. interviews with neighborhood leaders.
d. the local Chamber of Commerce.
e. an aerial survey of surrounding neighborhoods.

Problem 2. Everyday low pricing is a strategy devoted to continuous low prices as opposed to

a. seasonal changes in prices based on current demand.
b. purely cost-based prices that vary as the manufacturer's costs vary.
c. relying on short-term price-cutting tactics such as cents-off coupons, rebates, and special sales.
d. prices that are set daily, weekly, or monthly in reaction to competitors' actions.
e. prices based on what the firm feels the market will bear.

Problem 3. Customer relationship management (CRM), is

a. the defining concept that identifies communication between the parties to a transaction.
b. a process used to retain customers when purchases are based on low price or convenience.
c. best used when the seller has infrequent customer contact.
d. the combination of strategies and tools that drive relationship programs, reorienting the entire firm to a concentrated focus on satisfying customers.
e. a technique used to create a company focus on individual and immediate sales.

Problem 4. The most obvious distinction between not-for-profit and for-profit -- commercial -- firms is

a. more exact financial and marketing goals on the part of the not-forprofits.
b. the inability of the not-for-profits to sell tangible goods.
c. a different way of looking at the bottom line by the two different organization types.
d. the greater amount of control the customers of the not-for-profits exercise on their activities.
e. the ability of not-for-profits to operate without the assistance of volunteers from the general population.

Problem 5. The problems associated with the decision of whether to lunch at Popeye's, Burger King, Taco Tico, or Little Saigon (a Vietnamese restaurant) illustrate

a. how direct competition affects consumer behavior.
b. how some products and services are competitive substitutes for each other.
c. the strange food tastes of some of us - I mean, Taco Tico?
d. the universal nature of competition.
e. that some people just can't make up their minds.

Problem 6. Today's sales representative's role in the promotion process has changed from that of persuader to that of

a. technician and expert on product repair.
b. process designer.
c. consultant and problem solver.
d. close friend and confidant.
e. joke-telling, backslapping fellow-well-met.

Problem 7. This retailing format, averaging 300,000 square feet in size, seeks to offer a combination of shopping, entertainment, and restaurants in an attractive environment preserving the intimacy of neighborhood retailing.

a. Such a shopping center is known as a power center.
b. A facility of this magnitude is called a national mall.
c. This type of facility is known as a lifestyle center.
d. Most such centers are now known as downtowns.
e. This describes the earliest type of planned shopping center, the linear strip.

Problem 8. When brands are difficult to categorize or evaluate and significant effort is required to analyze purchase alternatives, the type of consumer problemsolving that typically results is

a. research analysis.
b. extensive analysis buying.
c. limited problem solving.
d. extended problem solving.
e. evaluative problem solving.

Problem 9. Which of the following statements is most true about U.S. Internet users?

a. African Americans are three times more likely to be Internet users than Americans of Asian or Pacific Island origin.
b. People in Alaska, New Hampshire, and Colorado are among the least likely to use the Internet.
c. Low income rural dwellers account for less than three percent of Internet users.
d. Caucasian Americans typically use the Internet only at work.
e. The median age of Internet users is expected to decline in the future.

Problem 10. The idea that a large percent of a product's sales revenues come from a relatively small, loyal group of its purchasers is the

a. true blue syndrome.
b. cohort effect.
c. 80/20 principle.
d. purchase aggregation basis.
e. traditional believers effect.

Problem 11. A product which has achieved the status of brand insistence

a. moves from the unknown to the known category, increasing its probability of purchase.
b. has the advantage of being preferred to other products, but only if it is available.
c. must be price competitive if it is to keep its status.
d. must have a distinctive "identity character" like the Pillsbury Doughboy.
e. has achieved a monopoly position with its consumers.

Problem 12. When marketing partners share the cost of a promotional campaign that meets their mutual needs, the general term for the activity is

a. mutual support.
b. cross promotion.
c. spending push money.
d. trading promotion.
e. partnership advertising.

Problem 13. Television advertising that suggests that consumers take a proactive role in family health care by requesting that their physicians prescribe specific medications they see advertised raises issues of ethics in

a. product strategy.
b. price strategy.
c. packaging strategy.
d. distribution strategy.
e. promotion strategy.

Problem 14. Of the following, which is NOT generally considered to be part of a national infrastructure?

a. the transportation and communication networks
b. a banking industry
c. consumer goods retailing
d. the utilities system
e. public services

Problem 15. A company's buying center encompasses

a. a group of people formally assigned to participate in the buying process.
b. formally designated gatekeepers, deciders, and buyers.
c. everyone who is involved in any aspect of its buying action.
d. a designated buying team that oversees the entire process of procurement.
e. the purchasing task force that professionally buys hard goods and tooling.

Problem 16. Showroom retailers are able to offer low prices as a result of

a. larger physical location.
b. inexpensive warehouse space, reduced shoplifting losses, and long-lived products.
c. high volume of perishable items.
d. quick purchase process because of a large number of service representatives.
e. offering a very small number of high volume items.

Problem 17. An example of a direct-selling strategy in the consumer goods market is

a. the party plan.
b. agents calling on wholesalers.
c. the traditional channel for consumer goods.
d. vending machines.
e. telemarketing by industrial distributors.

Problem 18. The gap between what customers expect and what they receive when dealing with a firm is

a. related to the price they paid for something, not its quality.
b. always positive because the higher of the two values is counted first.
c. impossible to measure because it's subjective, not objective.
d. one measure of their satisfaction with a firm and its products.
e. one of the traditional methods of testing new products.

Problem 19. In SWOT analysis, a "vulnerability" occurs when

a. internal organizational weaknesses prevent taking advantage of an opportunity.
b. environmental threats attack organizational weaknesses.
c. organizational strengths grasp opportunities.
d. environmental threats are posed to organizational strengths.
e. organizational strengths prevent improving environmental weaknesses.

Problem 20. In an integrated marketing communications program, which of the following is NOT one of the ways in which a customer may have contact with the organization?

a. direct mail
b. personal letters from competitors
c. personal selling
d. Internet messages
e. media advertising

Problem 21. Which of the following statements about the international aspects of distribution strategy is true?

a. Transportation systems and warehousing facilities may be unavailable or of poor quality in a given foreign market.
b. Switzerland's train system, the Volksbahn, is of especially poor quality.
c. Because of different cultural approaches to business, international marketers should avoid local distributors.
d. Europeans have never responded to direct-by-television sales efforts.
e. Distribution in a foreign country is best handled by government agencies rather than left to the discretion of an individual firm.

Problem 22. Of the following, which of the following would most likely be the factor having the greatest influence on the decision to buy a homogeneous shopping product?

a. the product's style
b. the store's name and reputation
c. the brand name of the product
d. the price and perceived value of the product
e. uniqueness of the product

Problem 23. Demand is said to be inelastic when

a. the demand curve and the supply curve do not cross.
b. total cost and total revenue are equal at all levels of demand.
c. the calculated elasticity of demand is less than 1.
d. the calculated elasticity of demand is greater than 1.
e. the calculated elasticity of demand is equal to 1.

Problem 24. Profit maximization is

a. a volume pricing objective.
b. not a pricing objective.
c. determined by the point at which the marginal revenue curve intersects the marginal cost curve.
d. achieved by most firms in the marketplace.
e. the addition to total costs balanced by the increase in total quantity sold.

Problem 25. Examples of products having target markets differentiated by age group are

a. headache and cold remedies.
b. nostalgic products and retro toys like Sock Monkey.
c. cookies, candies, and baking goods.
d. automotive motor oil and gasoline.
e. tissue, paper towels, and plastic utensils.

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