MARKETING 450-Many products are repositioned for a new use or benefit


1. Many products are repositioned for a new use or benefit? (Points : 1)



Question 2. 2.Terry, a Marketing Manager for Kaplan Foods is working on a break-even analysis. Which of the following describes the per-unit cost of making the product or delivering the service? (Points: 1)

Development costs

Variable costs

Direct fixed costs

Fixed costs

Question 3. 3.What type of channel function uses sales literature and product brochures distributed through wholesalers and retailers?(Points : 1)


Marketing research

Risk taking


Question 4. 4. Mike, a Marketing Manager for printers is curious how his biggest competitor beats him on price. He purchases his competitor’s product, takes it apart, studies the cost of the components and packaging. What is this process referred to?(Points : 1)


Reverse engineering.


Horizontal integration.

Question 5. 5.You are the marketing manager for Doc’s Cola and are working on a product development strategy. Your approach to new product development consists of constant interaction with multidisciplinary team whose members who work together from the beginning of the project to the product’s introduction. What type of new product development approach is being used in this scenario? (Points: 1)

The classic linear approach

The rugby approach

The cost-differential approach

The target-costing approach

Question 6. 6. Jan is the Marketing Manager of a cosmetics company. She decides to use the rugby process for new product development. In the case of a rugby process, What does the new product development team consist of in the case of a rugby process? (Points : 1)

Members with the same functional specializations.

Members of the same nationality.

Members with different functional specializations and personalities.

Members who belong to different organizations.

Question 7. 7. In which circumstance is sampling most likely used? (Points : 1)

When the maturity stage of the product life cycle

When the decline stage of the product life cycle

When a new product or brand is being introduced

When retailers try to create interest among laggards in the decline stage.

Question 8. 8. KapConsulting is doing some consulting for a small pharmacy in Raritan, NJ called Doc’s Pharmacy. Doc’s is thinking about coming out with their own private label for certain products. Which of the following statements is true regarding a private label brand? (Points: 1)

It is sometimes called as an exclusive brand.

It is usually the low-priced option in the category.

Stores often make lower margins on private-label brands.

Retail stores devote huge marketing funds to support private labels.

Question 9. 9.What is Cost-per-thousand (CPM) a measure of? (Points : 1)

The efficiency of a media type

Profit margin from advertising revenues

Losses from advertising expense

Gains from advertising exposure

Question 10. 10.Tom, the accountant for Doc’s Cola requested information on costs, such as the marketing manager’s salary and product-related advertising and promotion expenses. What types of costs are these an examples of? (Points : 1)

Development costs.

Variable costs.

Direct fixed costs.

Overhead costs.

Question 11. 11. Logistic refers to physical distribution of goods from one location to another. (Points : 1)



Question 12. 12. Jenny, a marketing consultant for KapConsultants just recommended her client Atlantic Cruises use a value pricing strategy. Which of the following statements is true about value pricing? (Points: 1)

It is also known as penetration pricing.

It gives customers more value than they expect for the price paid.

It gives the seller most of the value—cost difference.

It implies low price alone.

Question 13. 13.Which of the following is the advantage of public relations? (Points: 1)

The message originates from an unbiased source

The sponsoring company has full control of the message promoted

The message is almost always positive

The message is very unlikely to damage a company’s reputation

Question 14. 14.Which of the following is a controversial form of sales-based incentive where direct prizes or bonuses are given to the channel’s sales force for meeting or exceeding a quota? (Points : 1)

Place-based incentives

Slotting allowances


Off-invoice allowances

Question 15. 15.A direct channel is one where the product or service remains under the control of the company from production to customer. (Points : 1)



Question 16. 16. KapConsulting is doing some consulting for a small pharmacy in Raritan, NJ called Doc’s Pharmacy. A big retailer just moved into town and they have a pharmacy. Which of the following describes how a local retailer like Doc’s could defend its local market against a global company? (Points: 1)

It should reduce its price and begin competing on price differentiation.

It should emphasize its home country or ethnic origin.

It should increase advertising expenditures and continue with the same message as before.

It should increase its research and development expenditure and enhance its product.

Question 17. 17. As the marketing manager, John is conducting several tests to predict sales and profits from the prospective new product launch and to make certain that marketing, distribution, and production skills are developed before full-scale operations begin. What types of test is John conducting? (Points: 1)

Product use tests

Market tests

Sales forecasts tests

Concept generation tests

Question 18. 18.Which of the following marketing intermediaries is a business that assists in the distribution tasks other than buying, selling, and transferring title?(Points : 1)

Merchant middleman



Facilitating agent

Question 19. 19.Which of the following types of coupons appears on the actual pages of newspapers rather than being inserted as a separate page or section?(Points : 1)

Cross-ruffs coupon

In-ad coupons

Free-standing inserts

On-package coupons

Question 20. 20.Which of the following is an example of sampling?(Points : 1)

Offering a free drug to a physician

Offering a free toy in a Cracker Jack box

Offering redeemable points with each purchase

Offering a bonus pack which provides larger sizes for the same price as a smaller size 22

Question 21. 21.Tony’s pizza is using a popular form of communication for which the sponsoring organization does not pay. What is this form of communication called? (Points : 1)

Trade promotions


Consumer-oriented promotions

Public relations

Question 22. 22. What type of trade promotion is considered the most risky for a company? (Points: 1)

Place-based promotions

Sales-based incentives

Product-based allowances

Price-based promotions

Question 23. 23. Companies that are marketing services must solve the same distribution problems as those that market tangible products. (Points : 1)



Question 24. 24. Recently, the Marketing Manager of KapPlumbing Supplies has set a price that is higher than the target market is willing to pay. The customer looks at this situation as a bad deal and, unless the company has a monopoly or some other kind of market power, does not buy. Which of the following best describes this situation? (Points : 1)

Perceived value > price > cost

Price > cost > perceived value

Price > perceived value > cost

Perceived value > cost > price

Question 25. 25. What constitutes the largest part of a sales organization? (Points : 1)

Field sales representatives

National sales managers

Direct sales managers

Regional sales managers

Question 26. 26.Which of the following statements is true regarding the percentage of sales approach to budgeting? (Points : 1)

It views advertisement as an investment measures its return by calculating percentage increase in sales for a particular period.

It attempts to spend at levels proportional to the competition’s spending.

It is based on the belief that advertising causes sale.

It selects a percentage of sales, either past or expected to devote to advertising.

Question 27. 27. John is a market research consultant for KapConsulting. He has just recommended a strategy to a client where product variants are developed to appeal to different segments of the market or to satisfy customers’ needs for variety. What type of strategy has John recommend to the client? (Points : 1)

Product line strategy

Production line strategy

Customer line strategy

Competitor line strategy

Question 28. 28. Bob, a marketing manager for Doc’s Cola is considering a product brand extension to the Doc’s brand category. Which of the following is one of the main considerations for the fit of an extension to the parent brand category? (Points : 1)

The transferability of the associations

The simplicity of the logo

The extent to which people are aware of the brand

The amount of money invested in brand building

Question 29. 29. What has traditionally been defined as any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor? (Points : 1)

Sales promotion


Personal selling

Public relations

Question 30. 30. John is the marketing manager for KapConsulting. Their biggest client is Doc’s Cola and the main objective is to help the client build the brand. Which of the following is critical to building a strong brand? (Points : 1)

Increase the sales volume of the products falling under the brand.

Reduce the production cost of the products falling under the brand.

Increase the profit margin for the products falling under the brand.

Assign responsibility for brand development activities.

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