Marketing Final Exam

Front 1

Which of the following focuses on the environment in which the marketing plan is to be implemented.

Back 1

Competitive Analysis

Front 2

Which of the following components of a business plan describes strategies for informing potential customers about the goods and services offered by the firm as well as strategies for developing long-term relationships

Back 2

The marketing plan

Front 3

Why do marketers in most industries have difficulty making estimates and predictions beyond five years?

Back 3

There are many uncertainties in the marketplace

Front 4

A large company sells some of its business units to help cut costs, bolsters its share price and diversify its business interest. This is an example of a firm employing an _____

Back 4

Exit strategy

Front 5

Venus Inc., a software consultancy firm, had made a gross profit of $350 million for the year 2012. For the same year, it had made sales of $890 million. What is the gross profit margin?

Back 5

39.92%

Front 6

Which of the following profitability ratios measures the firm's efficiency in generating sales and profits from the total amount invested in the company?

Back 6

Return on Assets

Front 7

Which of the following is the most effective method to promote product when the customers of a firm are geographically concentrated?

Back 7

Personal selling

Front 8

a customer-focused firm wants its sales representatives to:

Back 8

form long lasting relationships with buys by providing high levels of customers service

Front 9

Bits Inc., a manufacturer of server processors, sends out its trained salespeople to inform prospective and existing customers about its latest range of processors and provide demonstrations. The promotional effort adopted by this company is an example of:

Back 9

Field selling

Front 10

Which of the following types of personal selling relies on lists of family members and friends of the salesperson who organizes a gathering of potential customers for an in-home demonstration of products?

Back 10

Network marketing

Front 11

When personal selling efforts use telephone technology in a sales approach where the sales representative initiates the calls, its is know as _____ telemarketing.

Back 11

outbound

Front 12

The exchange value of a good or service defines its:

Back 12

Price

Front 13

Which of the following can be categorized as a tariff?

Back 13

A tax levied on foreign products to prevent dumping of goods.

Front 14

The Robinson-Patman Act specifically prohibits:

Back 14

Price discrimination in sales to wholesalers, retailers, and other producers.

Front 15

A major assumption of the economic theory is that, firms will focus on:

Back 15

maximizing gains and minimizing losses.

Front 16

Pricing objectives that focus on attaining a target return on investment are examples of _____.

Back 16

Profitability

Front 17

Which of the following is an example of a volume pricing objective.

Back 17

a market-share objective

Front 18

A _____ pricing strategy helps manufacturers to distinguish their high-end products from similar products of their competitors.

Back 18

Skimming

Front 19

When General Motors introduced the Saturn, it priced the SL sports sedan at $2,000 less than the Toyota Corolla DLX and $1,500 less than comparable Nissan and Honda automobiles. This is an example of _____ pricing strategy

Back 19

Penetration

Front 20

_____ pricing is the pricing strategy of continuously offering low prices rather than relying on short-term price-cutting tactics such as cents off coupon, rebates, and special sales.

Back 20

Everyday low

Front 21

The price reduction offered to a customer, business user, or marketing intermediary in return for prompt payment of a bill is called a _____ discount

Back 21

Cash

Front 22

The payment offered to a channel member for performing marketing functions is called a _____.

Back 22

Trade discount

Front 23

ADS stores, a supermarket chain, receives discounts from its suppliers for the bulk purchases of the merchandise at its stores. This is an example of a _____ discount.

Back 23

Quantity

Front 24

A promotional allowance is an incentive offered by manufacturers to retailers to:

Back 24

Return a certain amount spent by the retailers on advertising and providing sales support

Front 25

_____ pricing is a pricing policy in which products are offered to consumers at less than cost to attract them to stores in the hope that they will buy other merchandise at regular prices.

Back 25

Loss leader

Front 26

Personal Selling

Back 26

process of a seller's person to person promotional presentation to a buyer

Front 27

Telemarketing

Back 27

Promotional presentation involving the use of the telephone on an outbound basis by salespeople or on an inbound basis by customer who initiate calls to obtain information and place order

Front 28

Field selling

Back 28

Sales presentations made at prospective customer's locations on a face to face basis

Front 29

Over the counter selling

Back 29

personal selling conducted in retail and some wholesale locations in which customers come to the seller's place of business

Front 30

Missionary selling

Back 30

Indirect selling method in which salespeople promote goodwill for the firm by educating customers and providing technical or operational assistance.

Front 31

Consultative selling

Back 31

Meeting customer needs by listening to them, understanding their problems, pay attention to details, and following through after the sale

Front 32

Cross-selling

Back 32

selling multiple, often unrelated, goods and services to the same customer based on knowledge of that customer's needs

Front 33

Team selling

Back 33

selling situation in which several sales associates or other members of the organization are employed to help the lead sales representative reach all those who influence the purchase decision

Front 34

Creative selling

Back 34

personal selling in which sales people use well-planned strategies to seek new customer by proposing innovative solution to customer's needs

Front 35

Price

Back 35

exchange value of a good or service

Front 36

Tariff

Back 36

tax levied against imported goods

Front 37

WHEN DOES PERSONAL SELLING BECOME A PRIMARY COMPONENT?

Back 37

1. Customers are geographically concentrated.
2. Individual order account for large amounts of revenue.
3. The firm markets goods and service that are expensive, technically complex, or require special handling.
4. Trade-ins are involved
5. Products move through short channels
6. The firm markets to relatively few potential customers

Front 38

THREE MAJOR PERSONAL SELLING APPROACHES

Back 38

Relationship selling: building a mutually beneficial partnership with a customer through regular contracts over an extended period.
Consultative Selling: meeting customer needs by listening to them.
Team selling: selling situation in which several sales associated or other members of the organization are employed to help the lead sales representative reach all those who influence the purchase decision

Front 39

THREE BASIC SALES TASKS

Back 39

Order processing: selling
Creative selling: personal selling in which salespeople use well-planned strategies to seek new customers by proposing innovative solutions to customers' needs
Missionary selling: indirect selling method in which salespeople promote goodwill for the firm by educating customers and providing technical or operational assistance

Front 40

STEPS IN THE SALES PROCESS

Back 40

1. Prospecting and Qualifying
2. Approach
3. Presentation
4. Demonstration
5. Handling Objectives
6. Closing
7. Follow Up

Front 41

LEGAL CONSTRAINTS ON PRICING

Back 41

Tariffs, Dumping, Ticket Scalping

Front 42

PRICING OBJECTIVES

Back 42

Profitability objectives, volume objectives, meeting competition objectives, and prestige objectives

Front 43

BENEFITS FROM A SKIMMING PRICING STRATEGY

Back 43

Allows manufacturer to quickly recover its research and development costs.
Permits marketers to control demand in the introductory stages of a product's life cycle and then adjust product capacity to match changing demand.

Front 44

PSYCHOLOGICAL PRICING

Back 44

pricing policy based on the belief that certain prices or price ranges make a good or service more appealing than other to buyers
Examples: prestige pricing (high price), Odd pricing, Unit Pricing

Front 45

BUNDLE PRICING

Back 45

Offering tow or more complementary products and selling them for a single price

Front 46

BREAK EVEN ANALYSIS

Back 46

pricing technique used to determined the number of products that must be sold at a specified price to generate enough revenue to cover total cost.
Breakeven point (units): Total fixed costs/Per-unit contribution to fixed cost.
Breakeven point (dollars): Total fixed cost/1-variable cost per unit price.

Front 47

REASONS FOR DEVELOPING A MARKET PLAN AND THE ELEMENTS

Back 47

developed to help achieve marketing objectives and establishing a plan.
1. Marketing Plan
2. Financing Plan
3. Production Plan
4. Facilities Plan
5. Human Resources Plan

Front 48

DIFFERENT FINANCIAL STATEMENTS and PERFORMANCE RATIOS

Back 48

Income statement
Balance sheet
Gross profit margin: gross profit/sales
Net profit margin: net income/sales
Return on assets
Inventory turnover: sales/average inventory
A/R turnover: A/R/365

Front 49

TYPES OF MARKET STRUCTURE

Back 49

Pure competition: indiana soybean farm
Monopolistic Competition: Best Buy store: control over prices
Oligopoly: Verizon: few sellers compete
Monopoly: Waste Management: single seller dominates trade