1. The function of brands for consumers can include:
A) reducing customer search costs
B) reduce social/psychological risks in purchase
C) provide assurance of quality and consistency
D) a, b, and c are all correct
E) a and b are correct
2. Once the choice of a channel of distribution is made by a manufacturer it:
A) reduces the need for personal selling and advertising expenditures.
B) significantly alters the marketing management responsibilities of the manufacturer.
C) provides certain guidelines concerning decisions for other marketing mix components.
D) reduces the level of attention necessary to manage the channel.
E) All of the above.
3. A manufacturer of chemicals used by industrial firms presently markets its products through chemical distributors. The manufacturer has developed a new swimming pool germicide for use by homeowners with swimming pools. How should the manufacturer select an alternative from possible channels that are available?
A) the one with the most favorable financial returns that imposes no legal problems and provides the best control.
B) Utilize its existing distributors since this would not require establishing relationships with new channel intermediaries.
C) Consider a direct marketing approach such as a catalog mailed directly to homeowners.
D) Base its decision on financial, product, and end user considerations.
E) All of the above should be considered.
4. When establishing a pricing strategy as a part of the marketing mix for the national brand, Bayer Aspirin (versus a privately labeled brand), would include the following consideration(s):
A) A price higher then the competitor prices could serve as an indicator of quality to consumers, consistent with Bayer's advertising messages.
B) The primary marketing appeal of competitor's aspirin is quality, downgrading price as part of the marketing mix.
C) The brand loyalty of many consumers to Bayer Aspirin is a sign of their resistance to high prices.
D) Advertising Bayer Aspirin as high quality contributes to high volume production, lowers unit costs and makes lower prices a consistent marketing mix decision.
E) A price lower than competitors could serve as an indicator of quality, consistent with Bayer's advertising campaign.
5. Chem Labs, Inc. has just developed a superior new drug to treat gastrointestinal disorders (e.g., ulcers). Barriers to market entry (for others) are high and Chem Labs desires a quick return on its investment. Under these circumstances, the most appropriate pricing strategy would be:
A) skimming pricing.
B) penetration pricing.
C) accelerated maturity pricing.
D) time series.
E) new venture pricing.
6. _____ consists of planning, implementing, and controlling an organization's communications to its customers and other target audiences.
A. Promotion strategy
B. Distribution program
C. Benchmarking
D. Planned obsolescence
7. Jams sneaker company enters the market, and upon analysis, determines that they need a 25% share of voice to break through the clutter of existing advertising. If their analysis determines that three other competitors in the market are spending $30 million, $20 million and $40 million dollars, how much must Jams spend?
A. $25 million
B. $30 million
C. $22.5 million
D. $40 million
E. None of the above
8. What is an example of a hidden price increase?
A) Airlines charging for extra luggage
B) Selling extended warranties
C) Reduced net weight of cereal in the same sized package
D) A and C
E) All of the above
9. In order for marketing plans and objectives to be developed and implemented successfully throughout the organization, marketing management should:
A) develop plans independently of other business units.
B) encourage a market orientation throughout all functional areas.
C) maintain a separation between corporate and functional plans.
D) expect all functional areas to concede to marketing plans.
E) None of the above.