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SECTION1: TrueandFalse<TOTAL20marks>.
Foreachofthefollowing,placea“T”ifthestatementis“true”,“F”ifthestatementisfalse.(20marks).
.
___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..
.
.
.
Section2:MultipleChoices(20marks,2foreach).
.
1._____c_____isthetermthatdescribestheactionsapersontakesinpurchasingandusingproductsandservices..
a)
Marketing.
b)
Marketresearch.
c)
Consumerbehavior.
d)
Consumermanagement.
e)
Purchasedevelopment.
.
2.A“quality”messagemaybeusedfortheHUMmerswhilea“connectivity”messagemaybeusedfortheExecutiveWarriors.Thisisanexampleof__________..
a)
positioning.
b)
selectivemarketing.
c)
branding.
d)marketsegmentation.
e)
targeting.
Ans:a.
.
3.Theframeworktorelatethemarketsegmentsofpotentialbuyerstoproductsofferedorpotentialmarketingactionsbythefirmiscalled:d.
Actiongrid.
Relationgrid.
Productgrid.
Procuduct/Marketgrid..
.
4.Tohandleproductsinthedeclinestageoftheproductlifecycle,companiesoftenuseeither__________..
a)
diversificationorharvesting.
b)
diversificationorcontracting.
c)
deletionorharvesting.
d)
deletionordiversification.
e)
buildingorcontracting.
Ans:c.
.
5.Pricingconstraintsare__________..
a)
barriersthatmustbeovercomeinordertosetpricingobjectives.
b)
competitivepricingadvantagesonefirmhasoveranother.
c)
differentpricingstrategiesforeachofthefirm'sproducts.
d)
factorsthatlimittherangeofpricesafirmmayset.
e)
anothernamefordemandcurves.
Ans:d.
.
6.Whenafirmdistributestotwoormoredifferenttypesofchannelsforthesameproduct,thisiscalled:D.
Doublechannelduty.
Dualnetwork.
Splitdistribution.
Dualdistribution.
.
7.__________isthemarketingoftwoormoreproductsforasingle"package"price..
a)
Packagedpricing.
b)
Loss-leaderpricing.
c)
Bundlepricing.
d)
Tie-inpricing.
e)
Multi-productpricing.
Ans:c.
.
8.___________ariseswhenonechannelmemberbelievesanotherchannelmemberisengagedinbehaviorthatpreventsitfromachievingitsgoals..
a)
Channelconflict.
b)
Disintermediation.
c)
Cross-docking.
d)
Partnershipinconsistency.
e)
Relationshipvariance.
Ans:a.
.
9.Whichmethodofclassifyingretailoutletswouldbemostappropriatefordescribingallfranchiseoperations?.
a)
Formofownership.
b)
Levelofservice.
c)
Merchandiseline.
d)
Methodofoperation.
e)
Revenuegenerated.
Ans:a.
.
10.Inwhichformofretailoutletwouldcustomersbeofferedconvenience,qualitypersonalserviceandlifestylecompatibility?.
a)
Corporatechain.
b)
Administeredsystem.
c)
Contractualsystem.
d)
Independentretailer.
Ans:d.
.
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SECTION3:SHORTANSWERS(60marks).
.
1.Distinguishbetweenadirectandanindirectchannel(6marks).Pleasegiveanexampleforeachchannelstructure(4marks).
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Ans:adirectchanneloccurswhenaproducerandultimateconsumersdealdirectlywitheachother.Becausetherearenointermediaries,theproducermustperformallchannelfunctions.Indirectchannelsoccurwhenintermediariesareinsertedbetweentheproducerandconsumersandperformnumerouschannelfunctions..
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2.Describethecharacteristicsofeachstageofproductlifecycle.Anddiscusstheroleofpromotioninthefourstagesoftheproductlifecycle(20marks).
.
Ans:Thefirststageisintroduction.Theprimaryjobforpromotionhereistoinformandincreaseawarenessoftheproductamongconsumers.(5markseachstage).
Thesecondstageisgrowth.Heretheprimarytaskistopersuadetheconsumertobuyyourbrandratherthansubstitutes..
Thethirdstageismaturity.Here,youwanttomaintainexistingbuyersandremindconsumersoftheproduct'sexistence..
Thefourthandfinalstageisdecline.Thisisusuallyaperiodofphase-outfortheproductandlittleeffortormoneyisexpended,especiallyinsalespromotions..
.
3.AssumeyouaremanagerofTheOutbackSteakHouse,afranchisedrestaurantthathasnewlyopenedinShanghai.Describehowyouwouldsegmentthemarketaccordingtosegmentationbases,usingasmanysegmentationvariablesasyoucanandexplainingwhyeachvariableisappropriate.
(20marks).
.
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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