Marketing FINAL tophat/slide problems
A vacuum manufacturer has a unit cost of $50 and wished to achieve a margin of 30% based on selling price. If the manufacturer sells directly to retailer who then adds a set margin of 40% based on selling price, determine the retail price charged to the consumer.
$119.05
In the chart below the company was doing $100 million in sales and has the listed price and variable costs. If the company takes a 10% price reduction how much in additional sales will the company need to do in order to achieve the same level of total contribution? Old Sales: $100,000,000 Old Price: $336 Old Unit Variable cost: $265.44 Old Unit Contribution: $70.56 Old Contribution %: 21% Old Contribution $: $21,000,000
$172,131,000
A jeans manufacturer has created a new slim cut jean with a special finish. This finish is more expensive to execute. Currently the manufacturer's jeans cost $22.00 to make. They sell to a design distributor for $45.00 and the distributors sell the jeans to retailers for $100.00. Retailers get 55% MU on the selling price. The special finish will add $3.00 to the cost of jeans. What is the new price to the consumer if distributor and retail markup % remains the same?
$252.49
A consumer purchases a printer from a retailer for $80.00. The retailer's markup is 30%, and the wholesaler's markup is 15% both based on selling price. For what price does the manufacturer sell the product to the wholesaler?
$47.60
A jeans manufacturer has created a new slim cut jean with a special finish. This finish is more expensive to execute. Currently the manufacturer's jeans cost $22.00 to make. They sell to a design distributor for $45.00 and the distributors sell the jeans to retailers for $100.00. The special finish will add $3.00 to the cost of jeans. What is the new price if the manufacturer wants to maintain the markup %?
$51.13
Frequency of advertising is the number of times a person targeted is exposed to an ad. A: True B: False
A
If Starbucks sells the same product with the same promotion to all countries. This is an example of ..... A: Straight extension strategy B: Dual adaption strategy C: Disintermediation D: Exporting
A
In and inelastic market an increase in price will lead to more total revenue A: True B: False
A
Investment in marketing communication can lead to improved profitability in two ways: acquiring customers or improving the business with the ones already acquired. In it's twitter based campaign which goal was Old Spice trying to accomplish? A: Acquiring customers B: Improving business with existing customers.
A
Price sends other signals to consumers. Which item below is positively associated with price A: Quality B: Age C: Radio Waves
A
The VDN network form of traditional wholesaler has been made unnecessary in many industries because retailers have large warehouse facilities. This is an example of A: Disintermediation B: Retail convergence C: Competitive alliance D: Something I need to study in more detail.
A
What is product publicity? A: A form of PR when a firm makes an announcement that positively affects a product. B: An announcement about the firm. C: Celebrity endorsement. D: All of the above.
A
What is the single most important factor a marketer must consider when entering a new country's marketplace A: Culture B: Pricing C: Shipping D: Language
A
Which company gets most of the spending on digital advertising A: Google B: Facebook C: Twitter D: Apple Tunes
A
Which of the following is not presented in the article "How to Stop Customers from Fixating on Price?" A: Firms should not use price structure to call attention to the value of their product. B: Willfully overpricing can create interest. C: Breaking a product into component prices can be effective. D: Equalize prices to allow consumers to focus on features that fit their needs.
A
Which method of international expansion is the least risky from a financial standpoint but also does not allow for much control over marketing effort? A: Export B: Joint venture C: Direct investment D: Contract manufacturing
A -Know methods of international expansion as described by the text -Understand risk factors associated
Which is not a form of promotion? A: Skimming B: Personal selling C: Public relations D: Advertising
A -Skimming is a pricing strategy
What is the big difference between a wholesaler vs. broker/agent?
A wholesaler owns inventory and a broker/agent does not
A pair of designer jeans at Nordstorm's is priced at $120.00 Nordstrom buys the Jeans from True Religion for $40.00. What is the markup% based on selling price? A: About 120% B: About 67% C: About 300% D: None of the above
B
A small footprint retailer focused on a particular consumer would be called a? A: Convenience Store B: Specialty Store C: Department store D: Hyper market
B
According to the article "How Global Brands Compete," the United States has an above average number of Global Citizens. A: True B: False
B
Advanced Electronics makes DVD's and retailers sell them for $20. Retailers take a 40% margin based on the retail selling price. Advanced's cost information is as follows: -DVD package and disc: $2.50/DVD -Royalties: $2.25/DVD -Advertising and promotion: $500,000 -Overhead: $200,000 What is the breakeven volume in units? A: About 107,465 B: About 99,552 C: About 66,303 D: None of the above
B
All commodity volume is the ratio of? A: Number of stores sold/total number of stores B: $ sales of stores carrying a product/Sales of Total outlets C: R*F = GRP D: None of the above
B
In June fireworks stands are set up a temporary locations all over the United States. These are: A: Specialty stores B: Pop-up shops C: Retail Convergence D: None of the above
B
Research on wine reveals that higher prices are positively associated with perception of better taste by consumers. According to your text this is and example of what type of pricing effect? A: Specialty Pricing B: Psychological Pricing C: Quality associative pricing D: Proximity Pricing
B
Season tickets for a sports event are an example of what type of pricing? A: Captive product B: Price bundling C: Skimming D: Dynamic
B
Starbucks sells the same product with the same promotion in all countries. This is an example of A: Disintermediation B: Straight Extension C: Dual Adaption D: None of the above
B
The goal of pricing is to maximize the individual markup% of each product in a companies assortment. A: True B: False
B
What type of retail form has a narrow product focus on smaller consumer segment A: Convenience B: Specialty C: Big Box D: Department Store
B
When Geico uses a Gecko they are using which strategy outlined by the James Group as an element of an effective communication tactic A: Word Hook B: Character Hook C: Repeatable Theme D: Unique Design
B
When a firm ships directly from its home country to another they are? A: Licensing B: Exporting C: Investing Directly D: Brokering
B
Which brand is the most standardized globally of the choices below A: Coke B: Heineken C: Chili's D: McDonalds
B
Which media listed below is useful for monitoring potential brand issues among consumers? A: Instagram B: Hootesuite or Netvibes C: Website D: Pinterest
B
Youtube is not and effective social media tool for brand equity development A: True B: False
B
If a retailer allows customers to buy from them in stores, online, or via mobile device, they are engaged in A: Dark asset utilization B: Multi-channel distribution C: Pre-tail D: Intensive distribution
B -Allows for more value
Hootsuite is a good tool for monitoring a company's website traffic sources and page views. A: True B: False
B -Know the tools, see when something about brand posted somewhere, good tool for monitoring traffic is google analytics
The article "Advertising's New Medium: Human Experience," advocates that firms should select single sphere that is right for their brand and stick to it. A: True B: False
B -Select the sphere based on the message, understand what the spheres are and how they can be used
When pricing a new product when there are few barriers to competitive entry, which strategy is most appropriate? A: Skimming B: Penetration C: Suggestive D: Everyday low
B -Skimming in inelastic -Penetration in elastic
According to table 8.2 in your text which media form is noted for it's flexibility and timeliness. A: Product Placement B: Television C: Newspaper D: Outdoor
C
Advanced Electronics makes DVD's and retailers sell them for $20. Retailers take a 40% margin based on the retail selling price. Advanced's cost information is as follows: -DVD package and disc: $2.50/DVD -Royalties: $2.25/DVD -Advertising and promotion: $500,000 -Overhead: $200,000 What is the breakeven volume in $? A: $960,840 B: $2,847,146 C: $1,158,620 D: None of the above
C
Advanced Electronics makes DVD's and retailers sell them for $20. Retailers take a 40% margin based on the retail selling price. Advanced's cost information is as follows: -DVD package and disc: $2.50/DVD -Royalties: $2.25/DVD -Advertising and promotion: $500,000 -Overhead: $200,000 What is the contribution margin and percent? A: $15.25 and about 25% B: $4.75 and 33% C: $7.25 and about 60% D: None of the above
C
Fact that Coca-Cola wants "Coke" to be within a few feet of every consumer globally represents which distribution strategy? A: Intensive B: Specialized C: Convenience D: Selected
C
For branding what is the primary use case for Facebook A: Push notifications B: Image building C: Engagement D: Public Relations
C
Kraft Foods produces a flier they mail to consumers in a specific region. It offers price promotions on their products. This is what? A: A pull strategy and professional selling B: A push strategy and product publicity C: A pull strategy with price promotion D: I have no idea and should study more.
C
Target and Kroger now both sell food products. This is an example of? A: Disintermediation B: Pop-up shops C: Retail convergence D: Reintermediation
C
What's the difference between a VDN and a Marketing Channel? A: Marketing Channel includes advertising B: A VDN would not include retailers C: A VDN has suppliers D: A VDN costs more
C
Which example below is an example of captive product pricing/ A: Big Mac with Fries B: Charging for airline meals C: Razors and Blades D: Season Tickets
C
Which strategy is appropriate for a product entry into an elastic market A: Skimming B: Adaption C: Penetration D: Fixed price
C
If price is increased by 2% and sales decrease by 4%, then demand is A: Inelastic, e = .5 B: Elastic, e = .5 C: Elastic, e = -2 D: Inelastic, e = 2
C -=(-4/-2) -Inelastic is less than 1 -Percent change in quantity/percent change in price
From the article, "If Brands are Built over Years," we learned? A: Price discounting leads to long term brand equity B: Clorox raised prices and upset their trade partners C: Reduced discounting and additional advertising leads to improved revenue D: It is easy to take a long term approach but companies don't do it.
C -A Erodes long term revenues -Not easy to take long term approach because results on quarterly basis
If Dr. Pepper calculates All Commodity Volume for stores carrying their brand, they will be gaining an understanding of A: How many stores carry Dr. Pepper B: Numeric volume + revenue C: The ratio of sales of stores that carry Dr. Pepper to sales of stores in the market D: None of the above
C -Why would a manger want to look at ACV
Consumers compare private brand prices to national brand prices to judge value. A: The national brand price is a psychological price B: The national brand is everyday low price C: The national brand is a reference price D: The national brand is a dynamic price
C -have a halo effect, important to price correctly
A penetration pricing strategy is when a firm enters a market with an entry price that is accessible to most consumers. When a firm uses this strategy they A: don't have IP to discourage duplication of their strategy. B: expect rapid competitive entry. C: will likely use intensive distribution. D: All of the above
D
If Kilroy's offers discounted beverages next Thursday night to I-Core students who are over 21, and pays certain students to promote the event, then A: they are using price based product promotion and professional selling. B: they going to be very crowded on that night. C: Thursday cannot come soon enough! D: All of the above!
D
If Swiffer Brand pays Kroger to promote their product in the weekly advertisement that Kroger runs, this is what? A: Product publicity B: Disintermediation C: A pull strategy with sales promotion D: A push strategy with advertising
D
In class we discussed the idea that Target and Kroger now have many of the same types of products. This is an example of what? A: Pre-tail B: Target illuminating dark assets C: Corporate alliance D: Retail convergence
D
Tesla Motors announced their plan to acquire a German engineering company. This is an example of A: Product publicity B: Product promotion C: Advertising D: Public relations
D
Which Sphere is the domain of more focused social engagement. A: Public B: Social C: Psychological D: Tribal
D
Which method of market entry carries the least amount of financial risk but also diminishes control of the marketing effort in the country. A: Joint Venture B: Direct Investment C: Strategic Alliance D: Export
D
The Dos Equis "most interesting man in the world" commercials contain what? A: A character hook B: A repeatable theme C: A word hook D: A consistent brand layout E: All of the above
E -Nothing on exam that requires you to know a brand, will describe the brand
What type of store has a limited assortment focused on a narrowly targeted consumer?
Specialty
What do we mean by pre-tail?
researching and comparing alternatives by using: online search, word of mouth, social networks, ads, apps