Question 1

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 _____.

Accepted Answer

Frequency refers to the number of times that the target audience is exposed to the advertisement. Moul's goal of exposing the audience to the ad about ten times is an attempt to increase frequency.

Question 2

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?

Accepted Answer

Dento should inform its consumers of the situation and implement measures to ensure animal-fat-free packaging and products. By being transparent with its customers about the situation and taking steps to rectify it, Dento can regain their trust and demonstrate its commitment to ethical practices. Penalizing the vendor or investing in a hygiene awareness program may not directly address the issue at hand and could potentially damage the company's reputation further. Filing a defamation suit may also backfire, drawing further attention to the issue and potentially causing more harm to the company's image.

Question 3

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

Accepted Answer

Being fair toward customers implies ethical business practices, such as not engaging in price fixing or deceptive tactics like "bait and switch."

Question 4

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?

Accepted Answer

Since Lumos Lighting does not recognize the value of citizenship as an ethical requirement, it is least likely to donate money to a nonprofit involved in developing sustainable living methods, as this action aligns with the concept of corporate citizenship.

Question 5

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

Accepted Answer

Frequency = GRP/Reach
Frequency = 60/6
Frequency = 10

Question 6

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?

Accepted Answer

The answer of Novel Electronics sold 400 Technova smartphones in...

Question 7

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?

Accepted Answer

The break-even point formula is: Fixed Costs / (Selling Price - Variable Cost) = Break-even Quantity. Plugging in the values: $6,000 / ($45 - Variable Cost) = 300. Solving for the variable cost gives $25.

Question 8

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?

Accepted Answer

Saleye failed to have control measures in place to quickly address and respond to adverse effects reported after the drug release, leading to delayed action and financial loss.

Question 9

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.

Accepted Answer

FEL Pharmaceuticals is in the planning stage of the strategic marketing planning process because it is incorporating ethical norms into its mission statement and hiring an industry expert to help them understand these norms. This indicates that they are in the process of creating a strategic plan for their marketing efforts.

Question 10

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?

Accepted Answer

This question directly asks customers which company comes to mind first when they hear the phrase "market analysis," providing insight into the top-of-mind awareness of Horpine Analytics. Option A asks about past usage, Option B asks about general business needs, Option D asks about tool usage, and Option E asks about likelihood of recommendation, but none of these options directly address top-of-mind awareness.

Question 11

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?

Accepted Answer

The conversion rate is the percentage of visitors who participate in the survey. Since only one in four visitors participate, the conversion rate is 25% or 0.25.

Question 12

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?

Accepted Answer

The average frequency of the advertisement can be calculated by dividing the total number of times the advertisement was watched (360,000) by the total number of households that own a TV (20,000):

Average frequency = 360,000/20,000 = 18

This means that, on average, each household watched the advertisement 18 times during the three-day period. However, the question is asking for the frequency for individuals, not households. To calculate the individual frequency, we divide the total number of views (360,000) by the number of people who watched the advertisement at least once (30,000):

Individual frequency = 360,000/30,000 = 12

Therefore, the answer is C) 12.

Question 13

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

Accepted Answer

The answer of ChoStik, a firm that manufactures office stationery,...

Question 14

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.

Accepted Answer

Zeus, Mustard's flagship product, holds a 30% market share in a fast-growth market, indicating that it is highly successful and has potential for further growth. This fits the characteristics of a star in the BCG matrix, which represents products with high market share in a fast-growth market.

Question 15

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?

Accepted Answer

The company's share of customer wallet is calculated by dividing the amount spent on the company's product by the total amount spent in the category. So, $40 / ($40 + $80) = $40 / $120 = 0.3333 or 33.33%.

Question 16

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 _____.

Accepted Answer

Zero Point is a new product for Zippy and has not yet established a significant market share. Therefore, it is a question mark in the BCG matrix, which represents a product with high market growth potential but low market share. Zippy's marketing strategies aimed at increasing the market share signify their efforts to turn Zero Point into a star in the future.

Question 17

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 _____.

Accepted Answer

Quadro is considered a "dog" in the BCG matrix because it has low market share and low growth potential, but it is still used strategically to boost sales of other products.

Question 18

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?

Accepted Answer

To find the market share of Reso, we need to divide its sales by the total number of PMPs sold:

Market share = (Reso's sales / Total PMPs sold) x 100%

Market share = (157,500 / 700,000) x 100%

Market share = 0.225 x 100%

Market share = 22.5%

Therefore, Reso's market share of the PMP market is 22.5%. The correct answer is choice B).

Question 19

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

Accepted Answer

The answer of Calculate the return on marketing investment of...

Question 20

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?

Accepted Answer

15% of 7,000 pageviews on NatuRun, which have the original article from SciFun, resulted in users clicking the link to the original article on SciFun. So, the number of pageviews from NatuRun to SciFun is 0.15 x 7,000 = 1,050. 
The original article on SciFun generates 147,000 hits; therefore, the number of hits generated on the original article due to NatuRun is 1,050 x 20 = 21,000. However, the question asks for the number of hits generated on the original article due to NatuRun, not total hits. So, we subtract the 20 hits to get the final answer, which is 21,000 - 20 = 22,050.

Exam 1: Professional Certified Marketer