Question 1. The MOST COMMON method of setting the marketing budget is to:

A. determine the cost of the tasks to be accomplished.

B. use PERT approaches.

C. estimate what competitors are spending.

D. use all uncommitted revenue.

E. use some predetermined percentage of past or forecast sales.

Question 2. Regarding adoption curve groups, which of the following is TRUE?

A. By the time the early majority buy a product it is usually in the market maturity stage of the product life cycle.

B. Business firms in the late majority group tend to be conservative, smaller-sized firms with little specialization.

C. The laggard group may be slow to adopt, but it is so large that it is very important to reach them.

D. The early adopters have many contacts outside their own social group, and are important in spreading information to laggards.

Question 3. ______________ advertising tries to develop goodwill for a company or even an industry--instead of a specific product.

A. Primary demand

B. Institutional

C. Persuading

D. Selective demand

E. Pioneering

Question 4. Boomerang, Inc. has created a really new product and the firm's marketing manager is worried that consumers may not buy the product because it is such a different way of satisfying the basic need. The promotion blend for the new product probably should emphasize ____________ advertising during market introduction.

A. Comparative

B. Reminder

C. Pioneering

D. Institutional

E. Competitive

Question 5. Budgeting for marketing expenses by computing a percentage of forecasted sales:

A. is especially suitable for new products.

B. may lead to a drop in marketing expenses at a time when the firm wants to maintain or expand sales.

C. tends to result in large changes in marketing expenses from year to year.

D. always results in increased expenditure levels from year to year.

E. is very complicated--and thus this method is not used very often.

Question 6. Which of the following is NOT an example of sales promotion?

A. a banner ad on AOL's stock page.

B. samples of a new low-fat snack cracker given away at a supermarket.

C. a display of fishing equipment by a sporting goods store in a shopping mall.

D. a bumper sticker that says, "Drink more milk."

E. a small toy in a kid's "happy meal" at McDonald's.