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SECTION1: TrueandFalse<TOTAL20marks>.

Foreachofthefollowing,placea“T”ifthestatementis“true”,“F”ifthestatementisfalse.(20marks).

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___F___1.Whenthepricesetterstressesthesupplyorcostsideofthepricingproblem,theyareusingcompetition-orientationpricing..

__F___2.Whenaconsumerlearnsaboutanewproductforthefirsttimeandmakesadecisiontotryit,theconsumerisengagedinthealternativeevaluationprocess..

___T___3.Consumerspositionproductsintheirmindsinordertosimplifythebuyingprocess..

__F____4.Theretailpositionmatrixmakesuseofthesetwodimensions:widthanddepthofproductline..

____T__5.Whenacompanychoosesatargetmarketingstrategy,itschoicesareinfluencedbyfactorsrelatedtocompanyresources,thedegreeofproductvariability,andtheproduct'slife-cyclestage.

__T____6.Thepurchaseofabottleofwaterisalow-involvementpurchase..

__F____7.Intensivedistributionseeksmanyoutletsinamarket,whileselectivedistributionseeksonlyoneoutletinagivenmarketarea..

__T___8.Thefrequentuseofpromotionalpricingcanencouragecustomerstoonlybuywhenabrandisonsale.

_F_____9.Directmarketingrarelyoccursonaone-to-one,interactivebasis..

__F___10.Inintroductionstage,acompanyretainstheproductbutreducesmarketingsupportcosts..

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Section2:MultipleChoices(20marks,2foreach).

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1._____c_____isthetermthatdescribestheactionsapersontakesinpurchasingandusingproductsandservices..

a)

Marketing.

b)

Marketresearch.

c)

Consumerbehavior.

d)

Consumermanagement.

e)

Purchasedevelopment.

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2.A“quality”messagemaybeusedfortheHUMmerswhilea“connectivity”messagemaybeusedfortheExecutiveWarriors.Thisisanexampleof__________..

a)

positioning.

b)

selectivemarketing.

c)

branding.

d)marketsegmentation.

e)

targeting.

Ans:a.

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3.Theframeworktorelatethemarketsegmentsofpotentialbuyerstoproductsofferedorpotentialmarketingactionsbythefirmiscalled:d.

Actiongrid.

Relationgrid.

Productgrid.

Procuduct/Marketgrid..

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4.Tohandleproductsinthedeclinestageoftheproductlifecycle,companiesoftenuseeither__________..

a)

diversificationorharvesting.

b)

diversificationorcontracting.

c)

deletionorharvesting.

d)

deletionordiversification.

e)

buildingorcontracting.

Ans:c.

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5.Pricingconstraintsare__________..

a)

barriersthatmustbeovercomeinordertosetpricingobjectives.

b)

competitivepricingadvantagesonefirmhasoveranother.

c)

differentpricingstrategiesforeachofthefirm'sproducts.

d)

factorsthatlimittherangeofpricesafirmmayset.

e)

anothernamefordemandcurves.

Ans:d.

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6.Whenafirmdistributestotwoormoredifferenttypesofchannelsforthesameproduct,thisiscalled:D.

Doublechannelduty.

Dualnetwork.

Splitdistribution.

Dualdistribution.

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7.__________isthemarketingoftwoormoreproductsforasingle"package"price..

a)

Packagedpricing.

b)

Loss-leaderpricing.

c)

Bundlepricing.

d)

Tie-inpricing.

e)

Multi-productpricing.

Ans:c.

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8.___________ariseswhenonechannelmemberbelievesanotherchannelmemberisengagedinbehaviorthatpreventsitfromachievingitsgoals..

a)

Channelconflict.

b)

Disintermediation.

c)

Cross-docking.

d)

Partnershipinconsistency.

e)

Relationshipvariance.

Ans:a.

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9.Whichmethodofclassifyingretailoutletswouldbemostappropriatefordescribingallfranchiseoperations?.

a)

Formofownership.

b)

Levelofservice.

c)

Merchandiseline.

d)

Methodofoperation.

e)

Revenuegenerated.

Ans:a.

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10.Inwhichformofretailoutletwouldcustomersbeofferedconvenience,qualitypersonalserviceandlifestylecompatibility?.

a)

Corporatechain.

b)

Administeredsystem.

c)

Contractualsystem.

d)

Independentretailer.

Ans:d.

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SECTION3:SHORTANSWERS(60marks).

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1.Distinguishbetweenadirectandanindirectchannel(6marks).Pleasegiveanexampleforeachchannelstructure(4marks).

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Ans:adirectchanneloccurswhenaproducerandultimateconsumersdealdirectlywitheachother.Becausetherearenointermediaries,theproducermustperformallchannelfunctions.Indirectchannelsoccurwhenintermediariesareinsertedbetweentheproducerandconsumersandperformnumerouschannelfunctions..

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2.Describethecharacteristicsofeachstageofproductlifecycle.Anddiscusstheroleofpromotioninthefourstagesoftheproductlifecycle(20marks).

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Ans:Thefirststageisintroduction.Theprimaryjobforpromotionhereistoinformandincreaseawarenessoftheproductamongconsumers.(5markseachstage).

Thesecondstageisgrowth.Heretheprimarytaskistopersuadetheconsumertobuyyourbrandratherthansubstitutes..

Thethirdstageismaturity.Here,youwanttomaintainexistingbuyersandremindconsumersoftheproduct'sexistence..

Thefourthandfinalstageisdecline.Thisisusuallyaperiodofphase-outfortheproductandlittleeffortormoneyisexpended,especiallyinsalespromotions..

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3.AssumeyouaremanagerofTheOutbackSteakHouse,afranchisedrestaurantthathasnewlyopenedinShanghai.Describehowyouwouldsegmentthemarketaccordingtosegmentationbases,usingasmanysegmentationvariablesasyoucanandexplainingwhyeachvariableisappropriate.

(20marks).

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Ans:[Studentsmightselectanysegmentationvariables]However,themostlikelyincludethese:Thefirstdimensionwouldbegeographicwithsegmentationvariablesdesignedtodescribethosepeoplewithinareasonabledrawareaaroundtherestaurant.TheycouldbedefinedbyZIPCode,censustractorsubdivision.Thenextdimensionshouldbedemographics,includinghomeowners,youngadults,married,probablywithchildren.Alsoimportantwouldbehouseholdincome,perhapsrelatedtooccupations.TheOutbackmanagerwouldseekthosepeoplewhohadnotonlytheneed,butalsothemeanstodineattherestaurantanddemographiccorrelationscanberathereasilymadewithregardtothosefactors.Thepsychographicdimensionwouldincludevariablessuchasextroverted,gregariousandthosefondofpleasuressuchaseatingout.Segmentationaccordingtothebenefitsdimensioncouldincludeconvenienceandeconomyrelativetomoreexpensiverestaurants.Asfortheusagedimension,itwouldbewelltoseekmediumandheavyusersincluding,perhaps,thosepeoplewhomightdineatTheOutbackmorethanonceamonth,sincerepeatbusinessisth

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