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SECTION1:TrueandFalse<TOTAL20marks>
Foreachofthefollowing,placea“T”ifthestatementis“true”,“F”ifthe
statementisfalse.(20marks,2marks/Question)
___T__1.Competitiveadvantageisauniquestrengthrelativetocompetitors,often
basedonquality,time,costor,innovation.
___F__2.Marketsharecanbedefinedinbothcurrencyaswellasinunitssold.
Becausebothratioscalculatemarketshare,marketsharewillbethesameforafirm
regardlesswhichmeasurementisused.
___F_3.A“high-involvementpurchase”usuallyinvolvesaconsiderableamountof
timeresearchingtheproductandtheproductisaroutinepurchase.
___T_4.Acompanyengagedinenvironmentalscanningiscontinuallyacquiring
informationoneventsoccurringoutsidetheorganizationtoidentifyandinterpret
potentialtrends.
__F__5.Attheinformationsearchstageofthepurchasedecisionprocess,a
consumercomparestheproductwithhisorherexpectationsandiseithersatisfied
ordissatisfied.
____F__6.Acohesivemarketingmixconsistsoftheproduct,promotion,price,and
personnel.
____F__7.Publicityisanypaidformofnonpersonalcommunicationaboutan
organization,good,serviceorideabyanidentifiedsponsor.
____T__8.Directmailandcatalogretailingareexamplesofnonstoreretailing.
___F___9.Marketsegmentwouldhaveacollectionofprospectivebuyersthatare
readytobuy。
____F__10.“Marketing”isbestdescribedas“promotion”.1/11
SECTION2:MultipleChoice:ChooseJustOneAnswer(Total40,2Marks/Question)
1.__________arewhatisconsiderednormalandexpectedaboutthewaypeopledo
thingsinaspecificcountry.
A.Morals
B.Ethics
C.Values
D.Customs
Ans:d
2.Questionssuchas:”Whatadsdoyourememberseeingyesterday?”arean
exampleofwhattypeofpost-test?
A.Aidedrecall
B.Unaidedrecall
C.Inquirytest
D.Attitudetest.
Ans:b
3.Thegroupofbrandsaconsumerwouldconsideracceptablefromamongallthe
brandsintheproductclassofwhichheorsheisawareisthe__________.
A.evaluativeset
B.evolvedset
C.considerationset
D.alternativeselectiongroup
E.aspirationgroup
Ans:c
4.Allactivitiesinvolvedinsellingrenting,andprovidinggoodsandservicesto
ultimateconsumersforpersonal,familyorhouseholduseareknownas:
A.Marketing
B.Retailing
C.PersonalSelling
D.Salespromotion
Ans:B
5.Aconsumer's__________referstothepersonal,socialandeconomicsignificance
ofthepurchasetotheconsumer.2/11
A.involvement
B.aspiration
C.acculturativeresponse
D.motivation
E.selectiveperception
Ans:a
6.AtwhatstageofthePLC(ProductLifeCycle)canahigherpriceusuallybe
charged?
A.Introduction
B.Growth
C.Maturity
D.Decline
E.R&DEra
Ans:A.
7.Acompanythatsetsalowinitialpriceonanewproducttoappealimmediatelytothemass
marketisusing__________.
a)skimmingpricing
b)penetrationpricing
c)pricelining
d)odd-evenpricing
e)prestigepricing
Ans:b
8.UsingPriceasameasureofthequalityofaproductandsettingpricehighis:
A.Prestigepricing
B.PricingLining
C.Pricingodd-even
D.Targetpricing
Ans:a
9.Themainreasonsafirmsegmentsitsmarketsare:
A.Torefinesalesforecastsandallowformoreproductdifferentiation.
B.Tocreatemoreword-of-mouthinamarket.
C.Tofocusadvertisingandmonitorsales
D.Torespondtodifferentneedsandwantsinmarketandincreasessalesand
profits
Ans:D3/11
10.A(n)__________intheconsumerpurchasedecisionprocessoccurswhen
consumersscantheirmemoryforpreviousexperienceswithproductsorbrands.
A.problemrecognition
B.internalsearch
C.externalsearch
D.purchasetask
E.antecedentstate
Ans:b
11.Selectingtargetmarketsmeansusingcriteriasuchascostofreachthesegment
and__:
A.Sizeandexpectedgrowth
B.Marketinginvestment
C.Densityofpopulation
D.Valuesofcustomers.
Ans:a.
12.Using__________,manyretailersdeliberatelysellproductsbelowtheirnormal
prices(andsometimesbelowcost)toattractattentionandinduceadditionalstore
traffic.
A.customarypricing
B.above-marketpricing
C.loss-leaderpricing
D.prestigepricing
E.skimmingpricing
Ans:c
Feedback:Loss-leaderpricingisdeliberatelypricingaproductbelowitscustomary
pricetoattractconsumerattentiontoit.Itishopedthatcustomerswillbuyother,
higher-marginproductswhileinthestore.
13.Melissahasjusttoldhersupervisor,"I'msogladIboughttheMotorolaRAZR2
ratherthanthoseotherphonesIwaslookingat.Icandomyemail,accessmymusic
andevensearchthewebwithit.It'slikehavingamini-computerinmypocket".
Whichstageoftheconsumerpurchasedecisionprocessisdemonstratedby
Melissa'sconversation?
A.Problemrecognition
B.Informationsearch
C.Alternativeevaluation4/11
D.Purchasedecision
E.Post-purchasebehavior
Ans:e
Feedback:Afterbuyingaproductaconsumercomparesitwithhisorher
expectationsandiseithersatisfiedordissatisfied.Theconsumermayattemptto
reducecognitivedissonancebyreinforcingthebeliefthatheorshemadetheright
choice.Thisoccursatthepost-purchasestage.
14.Acountry'seconomicinfrastructureconsistsofallofthefollowingEXCEPT
__________.
A.distributionsystems
B.telephonelines
C.roads
D.banks
E.politicalsystem
Ans:e
Feedback:Communications,transportationsystems,financialservicesaswellas
distributionsystemscontributetoanation'seconomicinfrastructure.Thepolitical
system,whileimportantisnotincludedinthetermeconomicinfrastructure.
15.Customersatisfactionisanimportantfocusformarketersbecause__________.
A.marketingresearchisaninexpensiveprocess
B.thefinancialvalueofaretainedcustomercanbesignificant
C.customervalueisanon-quantifiablestatistic
D.attractingnewcustomersiseasierthankeepingoldones
E.amarketdevelopmentstrategyispreferabletoamarketpenetrationstrategy
Ans:b
Feedback:Researchshowsthata5percentimprovementincustomerretentioncan
increaseacompany'sprofitsby70to80percent.
16.Betweenclasses,manycollegestudentsstopatconvenientlylocatedvending
machinesfortheirfavoritecandybarandsoftdrink.Theirchoicesaregenerally
madequicklyandwithlittleornoefforttoconsideralternativeproductofferings.
Thecollegestudentsdescribedherearemostlikelyinvolvedin__________.
A.limitedproblemsolvingsituations
B.routineproblemsolvingsituations
C.extensiveproblemsolvingsituations
D.intensiveproblemsolvingsituations
E.unlimitedproblemsolvingsituations5/11
Ans:b
Feedback:Routinepurchasedecisionsinvolvelow-priced,frequentlypurchased
products.Consumerstypicallyspendverylittleeffortortimeseekingorevaluating
alternatives.Purchasedecisionsresemblehabitualresponsesandaretypicalof
low-involvementdecisions.
17.Learningreferstobehaviorsthatresultfrom
A.Repetitionofexperience
B.Thinking
C.Observation
D.Repetitionofexperience,thinkingandobservation.
Ans:D.
18.Arecentinnovationinmarketingchannelswherebyonefirm'smarketingchannelisusedto
sellanotherfirm'sproductsiscalled__________.
a)dualdistribution
b)astrategicchannelalliance
c)cooperativedistribution
d)anintegratedchannelalliance
e)amulti-channelventure
Ans:b
19.Thefourstepsinthesequentialbuildingprocessofbrandequityinclude
__________,establishingabrand'smeaninginthemindsofconsumers,eliciting
theproperconsumerresponsestoabrand'sidentityandmeaningandtocreatea
consumer-brandconnection.
A.positivebrandawareness
B.productslowerinprice
C.easingconsumers'decisionmaking
D.productshigherinvalue
E.neededmarketmodification
Ans:a
Feedback:Thefourstepsinthesequentialbuildingprocessofbrandequityinclude
positivebrandawareness,establishingabrand'smeaninginthemindsofconsumers,
elicitingtheproperconsumerresponsestoabrand'sidentityandmeaningandto
createaconsumer-brandconnection.
20.Whichofthefollowingisacompetition-basedpricingmethod?
A.Customary6/11
B.Prestige
C.Skimming
D.Pricelining
E.Penetrationpricing
Ans:a
Feedback:Customaryisacompetition-orientedapproach.
Section3:EssayQuestion(Total40Marks)
1.(Total10points)Forseveralyears,theFerrarihasbeenknownasthe
manufacturerofexpensive,luxuryautomobiles.Thecompanyplansto
attractthemajorsegmentofthecarbuyingmarketwhopurchasesmedium
pricedautomobiles.AsFerrariconsidersthistradingdownstrategy,what
brandingstrategywouldyourecommend?(5points)Whatarethe
disadvantagesordangerstoconsiderwithyourstrategy?(5points)Answer:TradingdownforFerrariisveryrisky.Thecompanymay
losetheprofitable,uppermarketwhohaspurchasedtheir
expensivecars.Ferrarimightdevelopanewcarandchoose
adifferentItaliansoundingbrandname.Thecompany
mightpromoteit'sheritageas"designedbythemakersof
Ferrari".Thisdifferentnamemightminimizetheaffecton
theirloyalbuyers.Obviously,thisapproachmeansthe
companymustspendmoremoneypromotingthenameof
thisnewcar.
multibrandingstrategy,i.e.differentbrandfordifferentmarketsegment.
Reasons:
1.goingtothelow-endmarket,usingdifferentbrandnamewillnotimpactthe
Ferrari‟sbrandnamenegatively.
Danger:
Cost:becauseithastobuildthebrandnamefromtheverybeginning.
Answers
1.Usecorrectterminology:multibranding,ormultiproductbrandingstrategy.
(2.5)7/11
2.Givereasonsofwhyusemultibrandingormultiproductbranding.(2.5)
3.Dangers:5
2.Total(31points)
BognerInc.,ahighendsportswearcompany,isplanningonintroducinganew
productthiscomingfall:Asolardenimjacket.Thisjacketislinedwithsolar
patchesthathavethecapabilitytokeepyouriPod,cellphone,andlaptopchargedas
youmakeyourwaythroughtheday.Itcomesinavarietyofstylesappealingto
bothgendersandispredominantlygearedtowardsyoungadults(teens,and
individualsintheirearlytomidtwenties).
2a)BognerInc.isintheprocessofdevelopingthemarketingcommunicationsfor
theintroductionofthesolardenimjacket.Themarketingdirectorisinterestedin
designinganIntegratedMarketingCommunication(IMC)program.Explainhow
yourIMCprogramdiffersfromanordinaryadvertising/promotionalcampaign,and
whatbenefititprovidesforthecompany.(5marks)
Answers
AnIMCdiffersfromanordinaryadvertising/promotionalcampaigninthatthemessageis
consistentacrossallmediaandpromotions.Areasarefullyintegrated.Allelementsofthe
marketingcommunicationsprogramworktogethersynergistically.(2.5eachpoint)
2b)WhatthestageofproductlifecycleistheBognersolardenimjacketin?And
whatarethetypicalcharacteristicsof4Psofmarketingduringthatstageforthis
product?(10marks)
Answers
ItisontheIntroductionphase(2mark)
(2each)
Product:Usuallyalimitedproductline.Forthisproductitcomesinavarietyofstylesbutnone
thelesstheproductisessentiallythesame–asolardenimjacket.
Price:skimmingorpenetrationpricing.Inthisskimmingb/citisahighendretailer.
Distribution:limiteddistribution
Promotion:objectiveduringtheintrostageistogainawareness.Primaryfocusofmarketing
campaignwillbetomakeconsumersawareofproduct;educatethemregardingthe8/11
functionalityoftheproduct.
3c)Astheproductmovesalongthedifferentstagesoftheproductlifecycle,
changesintheirstrategyisnecessary.List3differentstrategiesBognerInc.can
usetoensuretheirgrowthcontinueslongersotheycanreapmoreprofit.Providean
exampleforeachstrategy.(6marks)
Answers
(2markseach–1markfortheterm,1markexplainingtheterm.)
1)marketpenetration(increaseadvertising,increaseawareness…)
2)productdevelopment(alsocalled„productmodification/modifytheproduct)(e.g.:addnew
features)
3)Marketdevelopment(alsocalled“marketmodification‟/modifythemarket)(e.g.:sellto
othersegments)
OR
4)Repositioning(targetanewmarket)(2marks)
OR:
-lowerprice(0.5marks)
-newdistributionchannels(0.5marks)
3.SellingtheFloatingBed(Total9points)
Afewmonthsago,anawardwas
givenby“CoolS”forthe
“coolestnewinvention.”Thewinner
wastheFloatingBedfromthe
FloatingBedCompany.Theproduct
is-asthenamesuggests-anoval
shaped“queensized”bedthathangs
fromtheceiling.Ithasagentleswing
forthesleeper(s)inthebed.
TheFloatingBedmoveslikeatrueone-pointpendulum.Itswingsgentlyandevenly9/11
inallplanesanddirections.Theoverheadsuspensionandtheinertialforcescreatedby
pendulummotionhelpstogentlyholdtheoccupant(s)inplace.Thebodyandbrain
subconsciouslyknowandenjoythemotion,whichfeelssecureandnurturing.This
resultsinextraordinarilycomfortandrelaxation-thekeybenefitofthisproduct.
TheFloatingBedcansupportupto2000lbsandattachestoalmostanybedroom
ceilingusingitspatentedsuspensionsystem.
Accordingtothecompany,ifaconsumerdoesnotfindthattheFloatingBedprovides
thebestnightsleep,thebedcanbereturnedwitha30daymoneybackguarantee.
Referringtoinformationprovidedaboveanswerthefollowingquestions.
1.Pleasedescribethepotentialtargetmarketofthisfloatingbed.Pleaseusethe
terminologiesyoulearnedinmarketing.(6points)
Answers
Studentsshouldusetheterminologies.Terminology1point,description1point.
Demographical
Psychological
Geographical
3c)Whatpricingstrategywouldyourecommend,skimmingpricingorpenetration
pricing?Explainthereasonsofyourchoice.(3points)
Answers
Thereisnorightanswer.Aslongasstudentsindicate3reasons,theygetthepoints.
PenetrationPricing.
a.Settingalowinitialpriceonanewproducttoappealimmediatelytothe
massmarketispenetrationpricing,theexactoppositeofskimming
pricing.
b.Theconditionsfavoringpenetrationpricingare:
Manysegmentsofthemarketarepricesensitive.10/11
Alowinitialpricediscouragescompetitorsfromenteringthemarket.
Unitproductionandmarketingcostsfalldramaticallyasproduction
volumesincrease.
c.Afirmusingpenetration
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