Principles of Marketing Final Exam Study Guide

The Hughes Company will incur fixed costs of $500,000 and unit variable costs of $20 on its new wireless earphones. Hughes plans to price the earphones at $50. To break-even, Hughes must sell _____ units.

16,667

Suppose a media planner had a budget of $5,000,000 and the cost per thousand exposures was $10. The planner wanted a frequency of 20. The planner could attain a reach of:

25,000,000

Point-of-purchase displays in grocery stores, coupons, premiums, and trial-size packages are most useful when the consumer is near the _____ stage of the AIDA model.

Action

Which of the following statements does NOT describe an advantage personal selling has over other forms of promotion?

Personal selling is less expensive on a per contact basis.

Outdoor Experiences, Inc. sells a tent that collapses down into a roll that is as big as a roll of toilet paper. The tent can be easily carried in a backpack. The tent has been in the market for two years, and the company is spending a lot on advertising to stimulate selective demand. The tent is in which stage of the product life cycle?

growth stage

What are the three basic tasks of promotion?

informing, persuading, reminding

Randy left his engineering job at a large company in order to consult to small businesses. Consulting proves to be a much difficult than producing goods because consulting is:

intangible

All the following are noise in the communication process EXCEPT:

two people with a shared frame of reference

A watch manufacturer incurs a variable cost of $10 per watch and fixed costs of $400,000. To earn a 25 percent markup on selling price, the manufacturer would charge _____ for each of the 50,000 watches it expects to sell.

$24.00

SunCrest Gardening Supply Company wants to sell a polystyrene window planter for $30. Its variable costs for each planter are $12. To break-even, SunCrest needs to sell 500 planters. Calculate SunCrest's fixed costs.

$9,000.00

A manufacturer of scrapbook kits has a fixed cost of $30,000. This manufacturer expects to sell 6,000 scrapbooks for $17.50. This price will give the manufacturer a 20 percent markup on price. Calculate the variable costs.

$9.00

Morris Hutch sells high-volume cooking systems to supermarket delis. He is in the process of selling one of his machines as a replacement machine to a deli manager. Hutch has just asked him, "When would you like me to schedule the delivery of your new machine?" In which stage of the selling process would such a question most likely be asked?

Closing the sale

Ultimately, the amount of steel sold to General Motors depends on the consumer's demand for GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent?

Derived demand

Which of the following statements describes ethics?

Ethics are the moral principles or values that generally govern the conduct of an individual, Ethics is the standard of behavior by which conduct is judged, Morals are a foundation for ethical behavior, Ethical values are situation specific and time oriented.

_____ is a key ingredient in the philosophy of marketing; it occurs when people give up something in order to receive something that they would rather have.

Exchange

Salespeople ensure that delivery schedules are met, that the good or service performs as promised, and that buyers are trained in the use of the product. All of these functions are part of _____, the final step in the selling process.

Follow-Up

Procter & Gamble has run ads that promote its Children's Safe Drinking Water program in which it shows its employees teaching people around the world how to purify their water. The program was instituted because 5,000 children die every day from diseases caused by unsafe water. These ads are examples of _____ advertising.

Institutional

According to the product life cycle, during which stage of the cycle a company should expect negative profits?

Introduction

Andi Littleton has inherited a Featherlite brand horse trailer from her recently deceased grandfather. A preliminary investigation has shown many people would be interested in owning a Featherlite brand horse trailer. She is considering placing an advertisement in a newspaper targeted to horse owners in the Cheyenne, Wyoming area. She has been told similar horse trailers are selling for about $14,000. Of the following, what condition is necessary for an exchange to occur between Littleton and a buyer?

Littleton and her buyer must be able to walk away from the deal if desired

CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis?

Strength

Ed has three engineering degrees. He has hired an interior decorator to update his home. He is tremendously frustrated when he asks what he thinks are simple questions about weight-bearing walls and insulation requirements, and the designer is unable to understand. Yet Ed has the same problems when the designer starts talking about mauve, cerise, and magenta. Why is the communication process not working in this instance?

The sender and receiver do not share overlapping frames of reference.

For many years during December, Coca-Cola has run a series of commercials showing the Coke polar bears playing and then in the end relaxing with a bottle of Coke. This promotion is intended to:

act as a reminder advertisement

A group of Cummins Engine engineers come together after visiting multiple customer. They sit down and freely discussed new ideas to list ways the product might be redesigned without criticizing others ideas . This is an example of:

brainstorming

A sorority was purchasing 5 dozens of specially designed t-shirts to sell members through internet. T-shirts were:

business products

Joe jumps out of his truck and runs into a Pilot gas station store to grab a drink. While he was paying for his drink, he notices the candy bars at the counter and grabs one to buy. The candy bar in this case is a(n):

convenience product

________________ is "the customers' perception of what they want to have happen (i.e., the consequences) in a specific-use situation, with the help of a product or service offering in order to accomplish a desired purpose or goal".

customer value

Memories Record Players Company has seen most of its competition slip away, and it now holds 95 percent of the market share for record, casette, DVD player devices. Memories's own sales totals are slowly decaying, and it does little promotion only during Christmas. It's products are in which stage of the product life cycle?

decline stage

If you are attempting to reduce post purchase anxiety for your brand of large home appliances, which of the following methods might you NOT attempt to use?

design a customer service where customer cannot reach a real person

The Oreck company wants to get consumer feedback about the style, features, and operation of its prototype mini-vacuum cleaner, all while giving a demonstration of the product. What form of survey would allow them to do this?

mall intercept

For a product like video cassette recorders (VCRs), which is in the decline stage of its product life cycle:

none of these are true: A. persuasive advertising is commonly used B. heavy public relations is used to maintain brand loyalty C. personal selling should be used to develop distribution channels D. sales promotion is used to build market share

Procter & Gamble uses cents-off campaigns, couponing, and free samples to increase sales of Tide detergent. In other words, it uses a _____ promotional strategy.

pull

Progressive places its messages on local radio stations and in the yellow pages of the phone book. These communications are directed at the _______, the person who will decode the message.

receiver

Leonard has used and liked Colgate toothpaste for years, so when the company introduced Colgate mouthwash, he bought one immediately. This is an example of:

stimulus generalization

Persuasion normally becomes the primary promotion goal when:

the product enters the growth stage of the product life cycle

One of the disadvantages to using focus groups to collect data is:

the sample size is not large enough to be quantitatively measured.

In an attempt to understand its target markets better, Intel Labs Flexible displays group has been studying the product adoption stages and strategies. Intel Labs can expect to find all of the following EXCEPT that:

there are three categories of adopters who will adopt flexible displays