kognity business 4.5
A food manufacturer is in the introductory stage of the release of a new brand of tinned tuna. It sets up stands in supermarkets and wholesalers for people to try the new product and offers a special introductory price. This is an example of both
promotion / penetration
The Boston Consulting Group (BCG) Matrix is a product portfolio analysis method that helps companies identify where their different products are, in regards to market share and market growth. Shelly sells designer shoes, and different products in her line are at different places according to the BCG matrix. One brand in particular is placed in the high market share and low market growth quadrant. What would be an appropriate strategy to support this particular product's current position?
Harvesting
A theme park charges different ticket prices based on customers' age group, the day of their visit, and whether they buy individual tickets or group tickets. Which of the following is not an advantage of this pricing strategy?
Increased administrative cost due to different market segments
Peter sells custom-made picture frames. His sales volume has increased, thus increasing revenue. His cash flow is positive and he is now pursuing persuasive advertising. Different distribution locations are being used and now Peter will begin to discuss improving the product and further developing it. Which stage of the product lifecycle is his product in?
Growth
What is the most appropriate method of promotion for a charity looking to raise donations?
depends on charity
Which of the following below-the-line methods of promotion targets customers through the use of newsletters, catalogues, telephone, and email?
direct marketing
A sports-clothing brand produces a TV advert featuring top sportspeople from around the world. It uses the same advert in multiple countries. It does not advertise specific items for sale, but tries to communicate its core values to millions of potential customers globally. From a cost perspective, what is this brand able to benefit from?
Marketing economies of scale
A chocolate manufacturer in the research and development stage of the product life cycle may release a new product in a small geographic area to see how sales perform without the cost of a full launch. What is this a specific example of?
Test marketing
One of the benefits of guerilla marketing is that it is relatively
cheap / target market
A carbonated soft drink originally aimed at people suffering from colds or flu, repositions itself as a sports rehydration drink to
increase / target market
The cost of producing one unit of output is $40. A firm uses a mark-up of 50% on top of the production cost. What will be the selling price of this product?
$60
The process of being able to distinguish one company's product from another company's product is known as
USP
Repeat purchases by the customer and favourable recommendations to others is known as
brand loyalty
At least one major tobacco brand has been accused of targeting children in its promotional strategies historically. This was aimed at generating
brand loyalty / unethical
Many businesses whose portfolios include cash cows and shooting stars will still invest in new products and services. This enables them to maintain a
diversified / risk
Customers may be willing to use an agent to find the appropriate product or service for them, despite the fact that this might be more
expensive / experience
Re-branding can mean that any remaining
stock
A business that sells plant-based alternatives to meat has provided the following sales information: Q1 Q2
12.24 / 15.36
What promotional strategy targets a large audience through the use of large screens and high-end sound systems?
Cinema advertising
When a market becomes saturated and sales begin to drop, a company might consider ______________________________ strategies to stop sales from falling.
Extension
How would 'brand value' be categorised on a balance sheet?
Intangible asset
A farm that produces chicken wins a contract to sell all of its produce to a fast-food chain. What is the most likely pricing strategy of the farm?
The farm will not have its own pricing strategy
Copper Clothing Company is a privately owned clothes manufacturer. It uses penetration pricing for its products. Which of the following is not a reason for setting prices low?
To demonstrate a unique image
A fashion retail chain whose previous season's range is now in
decline / promotion
A large coffee chain sells pre-made sandwiches across many locations. How many intermediaries is it likely to use?
one (producer - retailer - consumer)
One extension strategy is to update the
packaging / market research
The key purpose of packaging is to protect, preserve and
promote / marketers / cost
Penetration pricing might be used for a new chocolate bar, but certainly not a new sofa design. This is because the chocolate bar presents the opportunity for ____ that will not happen with a sofa as it tends to be bought ____
repeat purchases / infrequently
Chain stores, discount stores, supermarkets, and superstores are different types of
retailers
A product might be packed in a box not necessarily because this is more attractive to customers, but because it is easier to
store / supply
Which of these is most likely to impact a company's decision to relocate overseas
trade barriers
Many firms spend a lot of resources on developing the packaging for their products. This is important because packaging offers which of the following?
All of thechoices
A business plans to use cost-plus pricing for its newly launched offering. Which of the following factors will affect the mark up to be charged?
All of these
Coca-Cola, Unilever, Procter & Gamble and Samsung are market leaders. They are the price leaders and their competitors are likely to charge the price set by the market leader. Which of the following statements is true?
All of these
A supermarket's predatory pricing starts to affect smaller, local stores. Why might these smaller businesses be at risk even if the government investigates this as being potentially illegal?
All of these reasons
Which of the following factors will not impact the choice of distribution channel?
Availability of managers
Which of the following would a major retail chain not consider when choosing a location for a central distribution centre?
Location of customers
Which stage of the product life cycle is characterised by high sales, intense competition, and marketers making an attempt to hold the position of products in the market?
Maturity
Which is the most appropriate distribution channel for a large supermarket chain?
One intermediary
A marketing manager is concerned about the methods used to distribute her company's products to customers. She is exploring options including retailers, wholesalers, distributors, and vending machines to distribute a newly launched cold drink. Which element of the marketing mix is this?
Place
Which promotional technique uses favourable publicity to create a media image and is usually free?
Public Relations
A group of marketers plans to launch an environmentally friendly sports car. Which of the following is not an appropriate method of promotion for this product?
Radio advertising
Alice is introducing her new makeup line to the market for the first time. She is going to use a combination of above-the-line promotion and below-the-line promotion. Which of the following would not be an effective promotional strategy for her product at this stage of its product life cycle?
Reassuring advertising
A bakery shop offers white bread at a very low price compared to other bakeries. The intention is to attract people in the hope that they buy other baked items that are priced competitively. Which of the following is not an advantage of using this pricing method?
Reduced profitability in the long term
A firm launches its hi-tech smartphones at a high price. Which of the following statements is not true?
The firm is targeting mass markets
Place is important to the marketing mix for all of the following reasons EXCEPT:
The location of the customers is insignificant, and the location of the business is not vital to the business.
A lifejacket retailer, located on the shore of a large family beach, decided to engage in guerilla marketing to sell its lifejackets. It placed a large fish tank in front of the store and hired actors to pretend that they were drowning. Walkers think it is real and that the person in the tank is actually drowning. The sketch catches the attention of many people. What might be a negative effect of this type of guerilla marketing?
The negative emotional effect of someone drowning might evoke fear and anger in the potential customer, making them turn away from the product.
All of the following are considered advantages of a two-intermediaries channel of distribution EXCEPT:
The producer has less control over promotional strategies of the product.
A farmer sells his produce directly to consumers. Which of the following is not an advantage of this method of distribution?
The storage costs will have to be paid by the farmer.
What is the premium that the customer pays for a product over and above its value?
added value
A major sports team is preparing for its most important game in years. It puts up the price of tickets for the game by 300% and, although this is considered unethical, the tickets quickly sell out. What do sports teams in particular have that allows them to do this to their customers?
brand loyalty
which would be most important in terms of location decisions, for an online retailer?
cheap land
Anupam Stores prices all its stationery items. The products are priced as $9.99, $10.99 and $11.99. This pricing strategy makes the product look
cheaper / impulse / unethical
Organisations that locate near to other organisations that operate in similar or complementary markets benefit from
clustering
Restaurants have to apply pricing strategies to all products, including daily specials. What pricing strategy do they tend to use?
cost-plus
Distribution through retailers allows producers to focus on production instead of selling their products to consumers. However, retailers incur high
costs / price
A producer of hair styling equipment wishes to promote its products by directly demonstrating to customers how to use them, and answering any queries. What method of BTL promotion should this company use?
exhibitions
Many successful brands have achieved global awareness through rapid expansion, by using the _____ model. However, this does come with the risk of one _____ damaging the reputation of the brand if it operates inconsistently with other franchisees.
franchising / store
The Boston Matrix allows businesses to analyse their product portfolio in terms of market share and
market growth / problem children / cash cow / dog
Which of the following is not a common method of sales promotion in supermarkets?
merchandise
Problem children are most likely to have
negative cash flow / promotion
One of the keys to successful branding is consistency in products, store layouts and service regardless of location. This encourages customers to buy from the business wherever they are geographically. What visual aspect of branding ensures products are recognised wherever they are sold?
packaging
Which type of pricing would be most appropriate for a smartphone company first introducing its product?
price skimming
A manufacturer of a new toy is experiencing huge and unanticipated demand in the growth stage of the product life cycle. What might the manufacturer need to increase to ensure it can meet demand?
supply
Which of the following is a form of marketing that encourages individuals, within their social networks, to communicate a company's message or promotional marketing?
viral marketing