Deck 1: Professional Certified Marketer

Question 1

Which of the following is a key similarity between selective distribution and exclusive distribution?

A) Like exclusive distribution, selective distribution involves placing products in as many stores as possible.
B) Like selective distribution, exclusive distribution eliminates the retail mark-up.
C) Like exclusive distribution, selective distribution helps a seller maintain a particular image and control the flow of merchandise into an area.
D) Like selective distribution, exclusive distribution always eliminates agency mark-up.
E) Like exclusive distribution, selective distribution cannot be used for luxury goods.

Answer 1

C

Question 2

Kreme, a biscuit manufacturer, offers retailers a 20% discount on its latest product, Coco-Bite. The discount offer comes with a rider that retailers have to feature the product in their promotional material. Kreme is offering a(n) _____ to its retailers.

A) slotting allowance
B) cash discount
C) seasonal discount
D) advertising allowance
E) cumulative quantity discount

Answer 2

D

Question 3

Pluto, a footwear company, designs and creates sports shoes for children. Since most of Pluto's target market consists of children who are in school, Pluto's retailers agree to sell its shoes for a certain amount below the actual price on the products. The price that Pluto and its retailer agree to sell the sports shoes for is known as _____.

A) the value-based price
B) the loss leader price
C) the everyday low price
D) the manufacturer's suggested retail price
E) the reference price

Answer 3

D

Question 4

LockIt, a manufacturer of electronic safes, accounts for 5% of the safes sold in the U.S. LockIt's current business strategy is aimed at selling better-quality products at higher prices than competitors. The higher prices make LockIt one of the leaders in terms of revenue earned. Having satisfied initial objectives of earning a certain ROI, LockIt sets a target of accounting for 25% of the units sold during the next financial year. To further this goal, LockIt introduces a line of lower-priced safes that are priced below similar competing products. LockIt's new pricing strategy is _____.

A) sales oriented
B) profit oriented
C) customer oriented
D) supplier oriented
E) competitor oriented

Question 5

Which of the following is a typical feature of large and sophisticated channel members?

A) They require several channels below them for distribution.
B) They do not have many supply chain intermediaries.
C) They prefer to delegate channel functions.
D) They do not use independent sales people.
E) They have a lower profit markup than smaller firms.

Question 6

When firms collude to set prices for products, it is referred to as _____.

A) price discrimination
B) price fixing
C) predatory pricing
D) tying arrangements
E) exclusive dealing

Question 7

Port, an OEM of computer hardware, accounts for 6% of the computer hardware sold in the U.S. Retailers uses hardware from OEMs like Port to assemble personal computers. Owing to the competitive nature of the industry, Port's pricing is uniform with offerings from other manufacturers. The rise and fall in pricing is dictated more by the rise and fall in prices of raw material, labor, and utilities across the industry. Port's pricing strategy is focused on _____.

A) competitive parity
B) target profits
C) maximizing profits
D) target returns
E) market shares

Question 8

Carnival Cruise Lines increased the price of its seven-day cruise package by 20 percent recently. If demand for its cruises is negatively elastic, which of the following is the likely outcome of the increase in price?

A) The company will see an increase in customer bookings.
B) The company's profit will decrease though its revenue will increase.
C) The company will see a decrease in total revenue.
D) There will be no change in the number of cruises booked.
E) The company's total revenue will increase.

Question 9

In Travnia, an industrial country, the government controls most of the utilities, including power and water supply. The bottled-water market, however, has four major players: Balk, Pentl, Valr, and Tidum. Each of the companies markets its product using a distinct branding strategy. In an attempt to gain a larger market share, Pentl reduces the price of its products by 10%. It expects to make up for the lost revenue from an increase in sales. Which of the following is true of this scenario?

A) The government's control of most of the utilities including power and water supply represents monopolistic competition.
B) The power supply industry in Travnia is oligopolistic in nature.
C) The competition in the bottled-water industry represents pure competition.
D) Pentl's current pricing strategy can be termed as predatory pricing.
E) A price war would erupt if the other firms reduced prices, too, and forced Pentl to reduce prices further.

Question 10

What do retail outlets hope to achieve from using promotions in conjunction with markdowns?

A) Bulk purchase of products, which reduces brand switching and, in turn, increased consumption
B) Increased loyalty of customers based on discounts tailored to suit individual customers
C) An increase in store traffic that leads to the purchase of non-promotional products at regular prices
D) Increased savings for customers and increased profits, without actually cutting prices
E) Selling off less desirable products by including them in a package with more desirable products

Question 11

Why don't the majority of customers bother to redeem rebates?

A) The discount offered by rebates is not significant enough.
B) The procedure to redeem a rebate is complex as well as lengthy.
C) The price cut is not offered directly to the consumers.
D) The price on the shelf is more than the normal price of the product.
E) The rebates come with riders such as a minimum purchase.

Question 12

The Better Business Bureau suggests that at least _____ of the sales should occur at a price for it to be used as a reference price.

A) 20 percent
B) 30 percent
C) 40 percent
D) 50 percent
E) 60 percent

Question 13

A firm sells 20,000 units of a particular product at a price of $50 per unit. The company spends $30 per unit in raw materials and labor charges. What are company's fixed costs if it made a profit of $100,000?

A) $100,000
B) $200,000
C) $300,000
D) $400,000
E) $500,000

Question 14

Which of the following retailers offers a broad variety of merchandise, limited service, and low prices?

A) Full-line discount stores
B) Specialty stores
C) Extreme value retailers
D) Department stores
E) Convenience stores

Question 15

A seller's costs are usually determined during or after a product is made, with a specified percentage or dollar amount added to the cost to establish a price. In this case, the organization is using _____ pricing.

A) skimming
B) demand-based
C) differential
D) cost-plus
E) expense-based

Question 16

A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?

A) Everyday low prices strategy
B) Odd-even pricing strategy
C) Prestige pricing strategy
D) Special-event pricing strategy
E) Reference pricing strategy

Question 17

In Ravonia, the telecom sector is dominated by four major service providers: Flank, Zelno, Tuhaz, and Klock. The service providers determine call rates and broadband rates using a collective strategy. They maintain uniform pricing and compete mainly on quality and service. Flank, Zelno, Tuhaz, and Klock are using a _____ strategy.

A) deceptive reference pricing
B) bait-and-switch
C) horizontal price fixing
D) manufacturer 's suggested retail pricing
E) price discrimination

Question 18

Why do companies offer seasonal discounts to customers?

A) To get customers to buy higher-margin products that team up nicely with the discounted product
B) To reduce the use of coupons and rebates during of-peak seasons
C) To encourage customers to try out new products that they would otherwise never purchase
D) To increase the sales of a product that was initially overpriced and rejected by customers
E) To increase the demand for a product at a time when consumers are less likely to buy or use the product

Question 19

Which of the following is true of price elasticity?

A) The lower the number of substitute products, the higher the price elasticity of demand for a given product.
B) Rises in income can lead to drops in price elasticity even though product prices are constant.
C) Products for which demand is highly inelastic are susceptible to minor changes in price.
D) Generally, if demand for a product is inelastic, lowering the price will appreciably increase demand.
E) Consumers are generally more sensitive to price decreases than to price increases.

Question 20

Fly, a manufacturer of indoor and outdoor heaters, has production facilities that are not running at their full capacity because of piled up inventory. Fly offers a discount to retailers who purchase heaters while the weather is still warm, because the cold months are still at least three months away. Based on historical sales data, Digimart, a retailer, picks up 200 heaters from Fly at a discount of 30% on the usual price. This scenario is an example of a(n) _____.

A) noncumulative quantity discount
B) quantity discount
C) slotting allowance
D) cash discount
E) seasonal discount

Question 21

Which of the following is a feature of using an Internet marketing channel?

A) It reduces a company's ability to personalize products.
B) It limits a firm's market presence.
C) It removes the need for other channels of distribution.
D) It reduces the need to spend money on marketing.
E) It enables companies to offer individualized offerings.

Question 22

Which of the following enables aligning personal goals along corporate goals?

A) Flexible and subjective guidelines for governing transactions between employees and clients
B) A system for punishing inappropriate behavior
C) Rewarding employees who excel in meeting their KRAs
D) Public recognition for employees who go out of their way to assist clients and bring new business
E) Creating a list of best practices associated with fulfilling one's job role

Question 23

Stitch, a bespoke designer boutique, in Florida, caters to over 150 customers every month. The customers usually choose and purchase fabric at the same store and depend on an in-house tailor's recommendations for purchasing the right amount of fabric. If the employees of Stitch overestimate the amount of fabric required or overcharge customers for fabric, they will be violating the value of _____ in the AMA Statement of Ethics.

A) transparency
B) citizenship
C) fairness
D) respect
E) expediency

Question 24

A customer information storehouse enables

A) retailers to decelerate customer returns.
B) create a consistent brand image.
C) provide a seamless experience for customers.
D) integrate the supply chain.
E) reduce shipping charges and sales tax.

Question 25

A toy manufacturer realizes that its latest product presents a choking hazard due to some of the components used in the toy. This occured despite the prior implementation of safety measures to prevent such an occurrence. The toy manufacturer is faced with a decision to recall over a million products or place a warning label on each product. This type of situation is representative of _____.

A) an ethical dilemma
B) a law and order problem
C) unconscionable conduct
D) pyramid schemes
E) unfair contract terms

Question 26

DRM Bikes received an order for a customized bike. Bret, the employee in charge of ordering parts for the custom bikes, ordered two fewer clamping bolts and realized the mistake only after his co-worker Julio complained of a shortage in clamping bolts. Julio suggested that it was best to inform the customer about the situation and place a new order for a set of bolts. Martino, Bret's co-worker, suggested using an old pair of bolts because the average customer wouldn't recognize the difference. However, Bret knows that the customer is an experienced biker who will notice the difference, and hence suggested that they use the old pair on a bike for a customer who would not. Considering the evidence presented, what is the ethical step for the sales manager to take?

A) Act on Bret's advice.
B) Act on Julio's advice.
C) Act on Martino's advice.
D) Use an old set of bolts now and replace them when the customer comes back for the first bike service.
E) Tell the customer that they faced a mechanical problem and hence delivery would be delayed.

Question 27

Which of the following is true of a conventional marketing channel?

A) It is also known as a vertical marketing system.
B) In this system, each member acts in the best interest of the other members.
C) In this channel, one member has control over the others.
D) In this system, each member strives to satisfy its own objectives.
E) It includes contractual, administered, and corporate marketing systems.

Question 28

QuickFix Inc., a clothing supplier, sends an advanced shipping notice document to Western Stores. Which of the following information is most likely to be conveyed by this document?

A) Details regarding transfer of ownership and so forth
B) Information relating to the previous owners
C) Details related to size and quantity of shipment
D) Details related to price of the shipment
E) Details related to the warehousing of the shipment

Question 29

In a franchise system,:

A) the franchisor operates a retail outlet using a name and format developed and supported by the franchisee.
B) the franchisee pays a lump sum plus a royalty on all sales in return for the right to operate a business in a specific location.
C) the franschisee has complete control over the store design, products or services sold, management training, and advertising.
D) franchisors receive all profits that the franchisees generate, and pay franchisees a fixed sum.
E) franchisees are responsible for advertising, product development, and system development.

Question 30

Serenity Inc. exercises reward power over a channel partner when Serenity:

A) offers ACTFast Transporters a monetary incentive to improve transporation speed.
B) it threatens to penalize a supplier for delayed delivery times.
C) holds a channel partner to a contract that the partner signed.
D) dominates a channel partner because it has specialized industry knowledge that the partner lacks.
E) compels a channel partner to follow its directions because the channel partner values the association with Serenity.

Question 31

Power in a marketing channel exists when:

A) all the firms in the channel have contractual relationships with the others.
B) each channel member is independent; there is no parent company that owns channel members.
C) one firm has the means or ability to dictate the actions of another member at a different level of distribution.
D) all the members of the channel are at the same level of distribution.
E) the channel is a direct channel.

Question 32

CL Corp. buys stationery supplies from Sharpe Inc. on a large scale and sells smaller quantities to several stationery stores around the country. In this scenario, CL Corp. is an example of a _____.

A) manufacturer
B) retailer
C) wholesaler
D) promoter
E) consumer

Question 33

As compared to a value, a norm is:

A) an established standard of conduct maintained by an organization.
B) a commonly-held perception of ethical conduct within a particular society.
C) a subjective standard of behavior that differs from person to person.
D) an inherent character trait that cannot be taught or imposed externally.
E) the collective conception of what a community or culture finds desirable or morally proper.

Question 34

Sunshine Foods Inc., an international fast-food chain, allows JP Inc. to use its logo and operate a retail outlet in the name of Sunshine Foods for a specified fee. Sunshine Foods also provides JP Inc. with assistance in relocating and establishing the outlet. This type of arrangement is known as _____.

A) a joint venture
B) a liability partnership
C) licensing
D) foreign direct investment
E) franchising

Question 35

Which of the following is true of distribution centers?

A) Distribution centers rely on pull, rather than push strategies to determine their inventory levels.
B) Greater backup inventory is needed to prevent stockouts.
C) Space in a distribution center is usually more expensive than space in retail stores.
D) Distribution centers work best when retailers have only a few outlets that are far apart geographically.
E) Distribution centers enable the retailer to carry less merchandise in the individual stores, which results in lower inventory investments systemwide.

Question 36

_____ retailers offer an inconsistent assortment of brand name merchandise at a significant discount from the manufacturer's suggested retail price (MSRP).

A) Limited-line
B) Off-price
C) Hypermarket
D) Convenience
E) Extreme value

Question 37

In a distribution center, getting merchandise floor-ready means _____.

A) packaging merchandise that will be stored in the distribution center.
B) preparing merchandise to be placed on the selling floor.
C) sending merchandise from the unloading dock at which it was received to the loading dock for the truck going to the specific store.
D) going through the goods upon receipt to make sure they arrived undamaged and that the merchandise ordered was the merchandise received.
E) recording the receipt of merchandise as it arrives at a distribution center.

Question 38

In an administered vertical marketing system,:

A) there are contractual relationships between all parties.
B) there is common ownership of goods.
C) one member can directs the actions of another member.
D) there are franchise relationships between channel members.
E) there is no dominant member; all members have equal power.

Question 39

An inventory-management system in which the supplier determines the amount of product a retailer needs and automatically delivers the appropriate items is referred to as _____.

A) retailer-managed inventory
B) supply chain inventory
C) logistics-managed inventory
D) just-in-time inventory management
E) vendor-managed inventory

Question 40

Which of the following is true of an administrative marketing channel?

A) The parent company has complete control over the marketing channel because it owns multiple segments of the channel.
B) The channel is held together by contractual relationships between the members of the channel.
C) There is no common ownership, but the dominant channel member controls or holds the balance of power.
D) Several independent members-a manufacturer, a wholesaler, and a retailer-each attempts to satisfy its own objectives and maximize its profits.
E) None of the participants has any control over the others.

Question 41

Moul, a diaper manufacturer, is developing a media plan that involves trying to expose its target audience to its new advertisement about ten times. Moul is trying to increase its advertisement's _____.

A) reach
B) repetition
C) frequency
D) targeting
E) exposure

Question 42

Dento Inc., a manufacturer of dental care products, faced a social media uproar when rumors spread that it was using ingredients from animal sources to create its products. The labels as such carried no evidence of this and this discovery was brought about by an independent researcher. The company's CEO and senior management did not know about these ingredients. Internal research revealed that containers used to hold Dento's products, produced by a vendor, used products derived from animal fat in the manufacturing process, but the product itself did not contain any fat. What should Dento do to prove that it is ethical?

A) Release a statement to the press explaining that it is not responsible for the manufacturing processes of its suppliers.
B) Refute the independent researcher's claims by filing a defamation suit.
C) Invest in a program that aims to spread dental hygiene awareness.
D) Inform its consumers of the situation and implement measures to ensure animal-fat-free packaging and products.
E) Penalize the vendor by not paying for the next order of packaging materials.

Question 43

If a company claims to be fair toward its customers, it would imply that:

A) the company gives back to the community through volunteerism.
B) the company offers discounts to its regular customers.
C) the company does not engage in price fixing or ""bait and switch"" tactics.
D) the company makes an effort to improve the satisfaction of customers.
E) the company does not accept criticism from its stakeholders other than customers.

Question 44

Lumos Lighting, a company that offers lighting solutions for office spaces, has adopted the AMA Statement of Ethics, although not in its entirety. It does not recognize the value of citizenship as an ethical requirement. Which of the following is Lumos Lighting least likely to do?

A) Apologize to a customer for a faulty product.
B) Invest in a new manufacturing facility to generate more jobs.
C) Institute an employee rewards program.
D) Donate money to a nonprofit involved in developing sustainable living methods.
E) Create a communication channel for customers to lodge complaints.

Question 45

If the GRP of an advertisement is 60 percent and its reach is 6 percent, what is the frequency of the ad?

A) 6
B) 54
C) 66
D) 10
E) 360

Question 46

Novel Electronics sold 400 Technova smartphones in the first week of October 2013 at a price of $250 per unit. The following week, it reduced the price to $230 per unit and it saw sales increase by 20%. What is the price elasticity of demand of Technova smartphones?

A) 0.5
B) 1
C) 1.5
D) 2
E) 2.5

Question 47

What is the variable cost of a product if the fixed costs associated with it total $6,000, the break even point is 300 units, and selling price is $45?

A) $17
B) $25
C) $29
D) $34
E) $41

Question 48

Saleye Pharmaceuticals develops cheaper alternatives to proprietary drugs. Its mission statement states that it wants to create affordable medicine for everyone and create a healthier world. Saleye releases a new and improved version of its pain-relieving drug, Fento. Within a week, Saleye receives many complaints stating that the drug is inducing hallucinations and in some cases triggering certain anxiety disorders. Saleye was caught off-guard as its animal and human trials did not reveal any side effects. Saleye deliberated over the decision to recall the drug for over a week and by the time it eventually did, it had lost millions in stocks. Where did Saleye fail?

A) It did not have an ethical mission statement.
B) It did not have control measures in place.
C) It did not consider the target market before creating its drug.
D) It prioritized profits over effective drugs.
E) It did not conduct large-scale human trials.

Question 49

FEL Pharmaceuticals, a new company, decides to incorporate features of the AMA's statement of ethics into its mission statements. The company hires Bernardo, an industry expert, to help them understand the ethical norms of the industry. FEL Pharmaceuticals is most likely in the _____ stage of the strategic marketing planning process.

A) control
B) integration
C) decline
D) implementation
E) planning

Question 50

Goldwyn, a market researcher at Horpine Analytics, is creating a survey to measure the value of his company's brand as perceived by customers. Which of the following questions will help Goldwyn measure the top-of-mind awareness of Horpine Analytics?

A) Have you used the services of Horpine Analytics?
B) What are companies that you depend on for your business needs?
C) What companies do you think of first when you hear the phrase market analysis?
D) When was the last time you used an analytics tool?
E) What is the likelihood of recommending Horpine Analytics to others?

Question 51

A particular webpage is used to conduct an online survey and only one in four visitors participates in the survey. If the webpage is visited by an average of 30,000 visitors every day, what the average conversion rate of the webpage?

A) 0%
B) 25%
C) 50%
D) 75%
E) 100%

Question 52

Resolve surveys 20,000 households that own a TV. The results of this survey indicate that an advertisement for a retail store was watched 360,000 times during a period of three days. The same advertisement was watched at least once by 30,000 people. What is the average frequency of the advertisement?

A) 30,000
B) 360,000
C) 12
D) 10,000
E) 1.5

Question 53

ChoStik, a firm that manufactures office stationery, produces a range of products including sticky notes, note books, pens, pencils, erasers, and adhesives. Some of the raw materials used by ChoStik come from sources contributing to the deforestation of the Tongas National Forest, Alask

A) ChoStik offers discounts on its products when consumers make bulk purchases, but as many customers note, the products are priced significantly higher than competing products to begin with. ChoStik also has a history of introducing exorbitantly priced products only to decrease the prices by a large margin within a week or two, to stimulate artificial demand. ChoStik is can be considered to be _____.
B) unethical and socially responsible
C) unethical and socially irresponsible
D) ethical and socially irresponsible
E) ethical and socially responsible
F) socially responsible

Question 54

Mustard, a manufacturer of audio systems, is the market leader in the audio equipment segment in the U.S., a fast-growth market. Its flagship product, Zeus, a high-end audio entertainment system, holds 30% of the market share in its segment, barely a year after its release. Zeus can be classified as a _____ in the BCG matrix.

A) dog
B) cash cow
C) star
D) question mark
E) loss leader

Question 55

If a customer spends $40 on purchasing a company's product and spends $80 on other companies' products in the same product category, what is the company's share of customer wallet?

A) 11.12%
B) 22.46%
C) 29.77%
D) 33.33%
E) 41.13%

Question 56

Zippy manufacturers pens in the U.S. Zero Point, Zippy's latest ball point pen, is three months old and yet to grab a significant market share. Since the demand for ball point pens is high, Zippy believes that Zero Point will benefit from increased advertisement and promotions. Zippy's marketing strategies are aimed at increasing the market share of Zero Point, significantly, during the current quarter. In this scenario, Zero Point is a _____.

A) dog
B) cash cow
C) star
D) question mark
E) loss leader

Question 57

Spark, a manufacturer of consumer electronics, makes TVs, home theater systems, refrigerators, ACs, and microwave ovens. Spark's surround-sound system, Quadro, was a market leader a few years ago, before the market for large sound systems began to shrink. Despite its dip in market share and minimal profitability, Spark continues to produce Quadro. Spark offers Quadro for a highly discounted price when customers purchase its high-end LCD, LED, plasma, and 3D TV sets. Although the customers would not purchase Quadro as a standalone product at the same price, the combined offer increases the sales of both Quadro, and the other TV sets. In this scenario, Quadro is a _____.

A) dog
B) cash cow
C) star
D) question mark
E) market leader

Question 58

Reso, a manufacturer of mp3 players or portable media players (PMPs), accounts for 157,500 of the 700,000 PMPs sold annually in the United States. What is the Reso's market share of the PMP market?

A) 17.20%
B) 22.50%
C) 26.10%
D) 29.80%
E) 34.40%

Question 59

Calculate the return on marketing investment of a campaign that costs $10,000 and delivers $45,000 in incremental net profit.

A) 1.5
B) 2
C) 2.5
D) 3.5
E) 4

Question 60

SciFun.com and NatuRun.com are two websites that publish articles related to science and technology. The webpages on these sites often link to each other's websites, particularly when an article from one website is reproduced on the other. An original article about black holes, from SciFun, is reproduced as is on NatuRun with the original 20 images. The article receives 7,000 pageviews and generates 147,000 hits. 15% of the pageviews result in users clicking the link to the original article on SciFun. What is the number of hits generated on the original article due to NatuRun?

A) 7,000
B) 1,050
C) 147,000
D) 22,050
E) 20

Question 61

Sophia, a market researcher at Contell Foods, is tasked with assessing the particular food tastes of the Hispanic population in the United States. Previously conducted surveys reveal that the company has failed to tap into the market for processed foods with respect to Hispanic Americans. As a part of Sophia's task, she is required to stay with 50 Hispanic American families and white American families over a period of 6 months and understand the difference in the food tastes, the cooking methods used, and the family culture prevalent in these families. Sophia is conducting _____ research.

A) content analysis
B) focus group
C) quantitative
D) mixed
E) ethnographic

Question 62

In the typical communication process, the message originates from the _____.

A) receiver
B) transmitter
C) sender
D) creator
E) decoder

Question 63

_____ appeals help consumers make purchase decisions by offering factual knowledge that encourage consumers to evaluate the brand favorably on the basis of the key benefits they provide.

A) Informational
B) Push
C) Pull
D) Emotional
E) Mass

Question 64

Hermit, a fashion apparels retailer, recently slashed prices on its premium fashion label, Lau, by 40%. This resulted in a sharp rise in sales of Lau by 30%. This also directly impacted the sales of its lower-priced brand, Infinity, which saw sales reduced by 15%. What is the cross-price elasticity of demand between Lau and Infinity?

A) 0.5
B) 0.37
C) 1.33
D) 2
E) 2.66

Question 65

Calculate the brand development index of a company for a region where it earns 20% of its sales and in which 4% of the country's population resides.

A) 5
B) 20
C) 400
D) 500
E) 1000

Question 66

_____ appeal aims to satisfy consumers' sensitive desires rather than their utilitarian needs.

A) Emotional
B) Ethical
C) Informational
D) Egoistic
E) Logos

Question 67

Pluto Inc. runs a television and radio advertising campaign which involves several celebrities with the aim of creating a emotionally appealing to its customers. In this scenario, Pluto Inc. is using _____ media.

A) niche
B) mass
C) speciality
D) micro
E) push

Question 68

Which of the following is the first step in planning and executing an advertising campaign?

A) Creating advertisement
B) Conveying the message
C) Evaluating and selecting media
D) Determine the budget
E) Identifying the target audience

Question 69

Calculate the Category Development Index of a particular product that sells 5% of its product in a particular market that contains 1% of the country's population.

A) 500
B) 400
C) 300
D) 200
E) 100

Question 70

_____ is a communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase.

A) Product advertising
B) Reminder advertising
C) Personalized advertising
D) Persuasive advertising
E) Informative advertising

Question 71

_____ is a communication used to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle.

A) Reminder advertising
B) Persuasive advertising
C) Informative advertising
D) Product advertising
E) Institutional advertising

Question 72

Which of the following is the function of programs and PSA's in the PR context?

A) They support cause-related marketing efforts.
B) They give the required financial data to investors and other outsiders.
C) They generate news coverage of an organizations activities or products.
D) They inform various constituencies about the activities of an organization.
E) They highlight specific areas of expertise.

Question 73

The second stage of the AIDA model is _____.

A) Intention
B) Interest
C) Introduction
D) IMC
E) Insistence

Question 74

What is the argument for standardizing marketing strategies across cultures?

A) Tastes, preferences, and motivations of people in different cultures are becoming more homogeneous.
B) A common brand name, packaging, and communication strategy cannot be used successfully for multiple products.
C) Communication capabilities and transport systems are standardized across nations.
D) The currencies of the different nations rise and fall together.
E) The effects of globalization are not as widespread as researchers indicate.

Question 75

Which of the following is an example of a contest?

A) Visit our website and win movie tickets
B) Avail our ""featured price"" discounts
C) Buy one, get one free
D) Player of the year sponsored by Mars Inc.
E) Leave your visiting card and win a trip to Bahamas

Question 76

Which of the following is a disadvantage of outdoor marketing?

A) It cannot be linked to detailed content.
B) It is relatively more flexible than newspaper advertising.
C) It offers reduced chances of repeat exposure.
D) It is highly expensive.
E) It offers very limited exposure time.

Question 77

Which of the following is true of the standardized marketing approach?

A) It is losing its relevance in an increasingly globalized marketplace.
B) It is not profitable to maintain a standard product across increasingly diverse cultures.
C) It can work well for some, but not all products.
D) It is very expensive in terms of advertising and other marketing costs.
E) It does not work well for multi-functional products.

Question 78

During a sales interview, Jim says "Harley Davidson" when the interviewer asks him to name a brand of American motorcycles. In this scenario, Jim is exhibiting _____.

A) top-of-mind awareness
B) aided recall
C) lagged effect
D) evaluation
E) persuaded interest

Question 79

_____ is the two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

A) Advertising
B) Direct marketing
C) Public relation
D) Sales promotion
E) Personal selling

Question 80

Calculate the market growth rate of a product in a year if it sold 120,000 units in the first quarter of the year and 200,000 units in the last quarter of the year.

A) 12.14%
B) 66.66%
C) 72.42%
D) 78.33%
E) 89.91%