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MKT501 Midterm 2009 Paper Solved by vuZs solution team (3)

 

MKT501 Midterm 2009 Solved Paper of Marketing Management 

Solved by vuZs solution team

RECECKECKED BY MARINA KHAN & umeed

Fall 2009

http://groups.google.com/group/vuZs

www.vuzs.net


 

Which of the following must be developed at each product level for achieving the goals?

► Corporate plan

► Selling plan

► Marketing plan

► Business plan

ref

Page 15

For Product or Service, a Brand, or a Product line, It can cover ONE YEAR (referred to as an annual marketing plan), or cover up to 5 years. A marketing plan may be part of an overall Business Plan.

 

Which of the following part of a marketing plan defines the plan’s financial and marketing goals in terms of sales volume, market share and profit?

 

Marketing strategy

► Action programs

► Issue analysis

Objectives

(vuzs,us,6-dec-2011)

 

Assumptions, pro-forma income statement, contribution margin analysis, breakeven analysis, ratios analysis must be very formally done in:

► Executive summary

► Financial summary

► Promotional plan

► Business plan


ref

Page 16Financial Summary

Assumptions, pro-forma monthly income statement, contribution margin analysis, breakeven analysis. This information must be very formally done at this stage

 

Which of the following has the largest market share in the relevant product market?

► Market leader

► Market challenger

► Market nicher

► Market follower


ref

Page 19

The market leader is dominant in its industry. It has substantial market share and often extensive distribution arrangements with retailers.

http://groups.google.com/group/vuZs

 

A market nicher can reduce their operating expense through less spending on:

► Market segment and advertising

► R & D and market segment

► Advertising and promotion

► R & D and advertising


ref Page 20

Market nicher tends to keep their operating expenses down by spending less on R&D, advertising, and Personal selling.

 

A market leader firm can expand the total market through:

► Decreasing distribution of the product

► Introducing the new usage of the product

► Eliminating some features of product

► Increasing cost

ref Page 19

It typically is the industry leader in developing innovative new business models and new products (although not always). It sometimes has some market power in determining either price or output. Of the four dominance strategies, it has the most flexibility in crafting strategy.

 

A brand name is one of the elements of the:

► Discounted product

► Core benefit

► Augmented product    www.vuzs.net

► Actual product

ref page 23

Tangible Product or Service

O Product attributes and features, Quality, Styling, Packaging protection and label information, Brand name

 

Which of the following is TRUE about a product?

► Every tangible thing the customer receives in an exchange

► The idea that the customer receives in an exchange

► The service that is rendered to a customer

► The physical object the customer receives in an exchange

(vuzs,us,10-Dec-2011)

 

Identify the stage of product life cycle in which sales are at peak.

► Introduction

► Growth

Maturity

► Decline

ref page 25Mature stage

Costs are very low as you are well established in market & no need for publicity.Sales volume peaks

 

Which of the followings are considered defensive in nature?

► Maturity and growth stage

► Maturity and decline stage

► Introduction and maturity stage

► Introduction and growth stage

ref    Page 26

The second two stages, mature and decline stage are often seen as defensive in nature.

 

Standard Cable cut back advertising expenditures to minimum level and reduced the number of channel members for its industrial cable product. These actions are indicative of a product in which of the following stage of its life cycle?

► Introduction

► Growth

Maturity

Decline

ref page 25Mature stage

 

• Costs are very low as you are well established in market & no need for publicity.

 

(vuzs,us,6-dec-2011)

 

Highest percentage of ideas for new products originates with/from which of the following sources?

► Top management

► Customers

► Competitors

► Employees

 ref

Page 27: Ideas for new products obtained from customers, R&D department, competitors, focus groups, employees, or trade shows

http://groups.google.com/group/vuZs

 

Which of the following are the people who purchase new products almost as soon as the products reach the market?

Innovators

Late majority

Early majority

► Late adopters

ref

Page 33

Early adopters, they are very quick in their response. These people are venture some and willing to try new ideas. In fact they are innovators in life and early adopters.

 

 

 

 

Which of the following is NOT one of the stages that customers go through in the process of adopting a new product?

► Desire

► Awareness

► Evaluation

► Interest


ref

Page 32

The New-product marketers should facilitate consumer movement through these stages

AWARENESS: INTEREST:EVALUATION TRIAL ADOPTION

 

Which product is MOST likely to be purchased through routine decision making?

► Television set

► Soft drink

► Shirt

► Car

  

Which of the following has a quick response towards a new product? vuzs

Opinion leaders

Late majority

Early majority

Early adopters

 ref

Page 33

Early adopters, they are very quick in their response. These people are venture some and willing to try new ideas. In fact they are innovators in life and early adopters.

 

Which of the following brands is created specifically to counter a competitive threat?

Premium brand

Economy brand

Fighting brand

Corporate brand


ref

Page 36

A fighting brand is a brand created specifically to counter a competitive threat.


 

Using one brand name for several related products is known as which of the following?

► Family branding

► Group branding

► Combination branding

► Premium branding


ref Page 36

When one brand name is used for several related products, this is referred to as Family branding.

 


 

 

Packaging used for the ice creams is an example of which of the following?

Decorative packaging

Transport packaging

Secondary packaging

Primary packaging


ref

Primary packagingis the material the first envelops the product and holds it.First-levelproductpackagingsuch as thebottle, can,jar, tube, etc., that contains the itemsold. It is the last packaging thrown by theconsumer.

@ Secondary packaging is outside the primary packaging – perhaps used to group primary packages together. Tertiary packaging is used for bulk shipping.

 

 

 

According to “Research supporting odd pricing theory” which of the following number out of all the numbers between 1 and 100 is thought to have least perceived value as compared to its actual value?

 

90

77

55

25


ref

Page 40

In a study, the perceived value of all the numbers between 1 and 100 were studied, and 77 was shown to have the lowest perceived value relative to its actual value.

 


 

To pay premium price for the product customers require: vuzs

Allowance

Flawless performance

Discounts

High promotion

ref

page 39

Premium Pricing (also called prestige pricing) is the strategy of pricing at, or near, the high end of the possible price range. They require flawless performance in this application - The cost of product malfunction is too highto buy anything but the best - example: heart pacemaker

 


 

Mr. A, marketer of XYZ Co. is selling his ice-cream in the market at Rs.20, 20% more than his competitors’ price. Still his sales are increasing. Now his aim is to maintain same pricing. He enjoys which type of leadership?

Promotion leadership

Price leadership

► Cost leadership

Product leadership


 ref

Price leadership

A situation in which a company sets apricefor a product and this company'smarket shareand/or brand loyalty is so strong that other companies are compelled to match or beat the price. The company that first changes the price is said to show price leadership.

 


 

 

 

Which of the following price is quoted to a potential buyer, usually in written form?

► Wholesale price

► Market price

► List price

► Retail price


ref

The list price (which is quoted to a potential buyer, usually in written form).

Ref: http://en.wikipedia.org/wiki/Discounts_and_allowances

 


 

A seller wants payment from buyer within 10 days of sales (whereas customer can made payment within 30 days) and offers 4% discount if payment is made within 10 days. What type of cash discount will be suitable? www.vuzs.net

► 4/10 net 30

► 10/4 net 30

► 10/30 net 4

► 4/30 net 10

ref

Page 43

•2/10 net 30 - this means the buyer must pay within 30 days, but will receive a 2% discount if they pay within 10 days.

 

Market-penetration pricing will likely to be used most in selling which of the following items?

► Specialty

► Convenience

► Unsought

► Pharmaceuticals

ref

Market-penetration pricing Pricing method of new product introduction to market that consists of pricing low and promoting heavily in order to gain a large market share and associated economies of scale as quickly as possible and before competition builds.

Convenience Goods: purchased frequently and with minimal effort, often referred to as FMCG (Fast Moving Consumer Goods)

 

Many companies try to set a price that will maximize current profit. This strategy assumes that company has knowledge of its: www.vuzs.net

► Cost and production function

Revenue and cost function

► Demand and market function

Demand and cost function

(vuzs,us,6-dec-2011)

 


 

Identify the other name for global market.

► Consumer market

► Import market

► Export market

► Government market          vuzs

 

ref

PAGE 2

GLOBAL MARKETS

This is when we talk beyond frontiers; marketers are faced with tougher decisions for global markets.

Export of product is in itself a major undertaking. Which country to enter? How to enter? How to Price? How to communicate? are just a few important and underlying decisions.

 


 

Which one of the following 4Ps of marketing mix involves in decisions regarding list prices, discounts, allowances and payment periods or credit terms?

► Product

► Price

► Place                  www.vuzs.net

► Promotion

ref

PAGE 3 Right Price

a. List Price

b. Discounts and conditions of discounts

c. Allowances

d. Payment Period

 

 


 

Customer cost will be considered as which of the following Ps of marketing mix?

► Product

► Price

► Place

► Promotion

 ref

Pricing is basically setting a specific price for a product or service offered. In a simplistic way, Kotler and Armstrong (2004) refer to the concept of price as the amount of money that customers have to pay to obtain the product.

 


 

Which of the following is about managing strategically the customer’s entire experience with the product and company?

 

► Customer experience management

► Customer retention management

► Customer life-time value management

► Customer relationship management


 ref

Customer experience managementis "the process of strategically managing a customer's entire experience with a product or a company". Relationship marketing focuses on establishing and building a long term relationship between a company and a customer. There are several approaches that have been espoused including customer experience management, customer relationship management, loyalty programs, and database marketing.

ref : http://www.findwhitepapers.com/knowledge-management/customer-experience-management/

 

 


 

 

 

Customer’s viewpoint on a firm’s products and services can be improved through:

► Experiential world of customers

Experiential innovation

► Customer interface

► Building experiential platform

ref

Page 5: Continue experiential innovation

Anything that can improve customer’s own viewpoint on your products and services.


 

Which of the following firms emphasizes on product’s benefits to the customers rather product attributes?

► Product oriented

► Market oriented

► Sales oriented

► Production oriented


 ref

Market Orientation:Business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of the customers, through its own or acquired products.

 


 

Which of the following is NOT a technique of measuring customer satisfaction and monitoring customer’s complaint?

► Customer complaints database

► Web and telephone information hotlines

► Exit interviews

► Business analysis


ref

Page 27 because Business Analysis involves

o estimate likely selling price

o estimate sales volume

o estimate profitability and breakeven point

 


 

The phenomenon, when a customer dislikes a product and talks against the product, is termed as:

► Propaganda

► Unfavorable environment

► Bad mouth

► Bad impression

ref

Page 8

The customer still may not fully like the product and have what we calls ‘bad-mouth’. Bad mouth is when a customer talks not in favors of the product. Bad mouth travels fast.


 

Products that are usually purchased due to adversity and high promotional back up rather than desire are called:

► Sought goods

► Unique goods

► Unsought goods

► Preferred goods

ref

Page 8: This concept emphasizes on aggressive selling and high promotional back up. Selling, concept is practical on what we call as ‘unsought goods’


A customer requirement about any product in which he/ she needs to avail core features in that product, is called:

► Real need

► Stated need

► Unstated need

► Delighted need


 ref

Page # 10 A customer says. ‘I want an inexpensive car’ what is he saying? He wants a car that is not expensive. So he needs a car but not expensive compared to his income. Needs are .Stated need (an inexpensive Car) ,Real need (wants a car which is lower in maintenance), Unstated need (he wants a strong car)


 

Which of the following products requires mass promotion by a producer?

► Convenience

► Shopping

► Specialty

Unsought


(vuzs,us,6-dec-2011)

 


 

Which of the following is NOT an aggressiveness strategy?

► Harvesting

► Building

► Intensification

► Holding


ref

Page # 18

Aggressiveness Strategies - This asks whether a firm should grow or not, and if so, how fast. One scheme divides strategies into:

· Building

· holding

· harvesting

 

Which of the following is NOT a type of innovation strategy?

► Pioneers

► Challengers

► Close followers

► Late followers


ref

Innovation Strategies- This deals with the firm rate of new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:

o pioneers

o close followers

o late followers

 


Suppose Nestle wants to expand its line of food products. The managers conduct surveys from customers to determine which food items would appeal to customers. Nestle is currently in which of the following phase of new product development?  www.vuzs.net 

Idea generation

► Idea screening

Test marketing

► Business analysis

 (vuzs,us,6-dec-2011)

 

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