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THE UNIVERSITY OF

NEW SOUTH WALES

UNSW Business School

School of Marketing
MARK1012: Marketing Fundamentals
Final Examination Session 2, 2014
Instructions: (Please read these instructions carefully)
This examination paper consists of TWO sections: Section A (70 Concept Matching questions)
and Section B (35 Multiple choice questions). It has FOURTEEN (14) printed pages excluding
this page.
Printing is double sided; check each page carefully.
You have two [2] hours to complete this examination plus 10 minutes reading time.
Read all the questions in both sections carefully.
Answer ALL questions on the Generalised Answer Sheet provided as instructed.
Questions must be answered in ink.
Print your full name and Student number {z } on the first page of each book and sign
Use of UNSW approved calculators is permitted. No other material is to be taken into the
examination room.
This paper accounts for 35% of your course grade (however, it is marked out of 140).
You may NOT retain this paper.

SECTION A: CONCEPT MATCHING

(1 mark x 70 = 70 marks)

In Column 2 of each of the SEVENTEEN (17) boxes (in pages 1 5), you will find 3-5
definitions/explanations/examples of marketing concepts, situations and actions. Match
each of these with the appropriate descriptors (marketing concepts or terms) presented in
Column 3 (from the 3- 5 responses provided).
For each question, choose one answer from Column 3 and indicate your selection (A, B, C,
D or E) on the Generalised Answer Sheet. For example, for question 1 The customers
evaluation of the must be matched to a concept provided in Column 3 and that
choice must be recorded on your Generalised Answer Sheet. If your concept selection is A,
then you should mark the oval A as your answer for question 1.

COLUMN 1
[C 1]
Question No.

BOX1

COLUMN 3 [C 3]
Descriptor

COLUMN 2 [C 2]
Definition (Basic marketing concepts)

1.

The old adage, "build a better mousetrap and the world will
beat a path to your door" is illustrative of the ________.

2.

Producers of unsought products like prepaid funerals would

normally employ the ________.

3.

Telemarketers probably most often employ the ________.

4.

Alpha furniture Inc. introduces at least one major product

improvement every year. This company practices _______.

A.
B.
C.
D.

Production concept.
Selling concept.
Marketing concept.
Product concept

Answer Questions 5 8 in BOX 2 based on the information provided in the Table below which
applies to four products comprising XYZ Companys product portfolio.
Table for Growth rate and Market share for 4 products
Product
Alpha
Beta
Gamma
Delta

Annual
growth rate
14%
7%
16%
3%

XYZs
market share
12%
22%
15%
11%

Largest competitors
market share
18%
10%
12%
22%

BOX 2
C1

C 2: Product description (BCG Matrix)

5.

Product Alpha would be labelled a ...

6.

Product Beta would be labelled a ...

7.

Product Gamma would be labelled a ...

8.

Product Delta would be labelled a ...

C 3: Descriptor
A.
B.
C.
D.

Star
Cash cow
Question mark
Dog
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BOX 3
C1
9.

C 2: Marketing Action (Market expansion grid)

________ is the strategy of selling existing product in the existing
market.

10.

________ refers to the strategy of selling new products in new

markets.

11.

__________ is the strategy of selling existing products in new

markets.

12.

_________ is the strategy of selling new products in the existing

market.

C 3: Descriptor
A. Market
development
B. Product
development
C. Market penetration
D. Diversification

BOX 4
C1

C 2: Explanation (Marketing Environment)

13.

The popularity of body piercing and tattooing mania are all facets of
what environmental issue?

14.

A shortage of rubber could be what environmental issue?

15.

A drought affecting supplies of wheat represents what

environmental issue?

16.

The governments announcement of an investigation into petrol

price fixing reflects a change in the oil companys ...

C 3: Descriptors
A.
B.
C.
D.
E.

Macromacro- or microCultural
micropublic

BOX 5
C1

C 2: Definition (Factors affecting consumer behaviour)

17.

A need that is sufficiently pressing to direct the person to seek

satisfaction of the need is called _________.

18.

It is the process by which people select, organise, and interpret

information to form a meaningful picture of the world.

19.

A descriptive thought that a person holds about something is best

described as a (n) ___________.

20.

It refers to a person's consistently favourable or unfavourable

evaluations, feelings, and tendencies toward an object or idea.

C 3: Descriptors

A.
B.
C.
D.
E.

belief
attitude
perception
motive
drive

BOX 6
C1

C 2: Situation (Buying Decision Making)

21.

______ refers to the amount of time and effort a buyer invests in the
search, evaluation, and decision processes of consumer behaviour.

22.

When a consumer is purchasing an unfamiliar, expensive product or

an infrequently bought item, he/she is likely to use ________.

23.

________ is characterized by low involvement, a short time frame,

an internal-only information search, and low costs.

24.

When a consumer is purchasing an unfamiliar, low to moderate cost

and involvement item, the _________ process is often used.

C 3: Descriptors
A. Routine response
behaviour
B. Involvement level
C. limited decision
Making
D. Extensive decision
making

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BOX 7
C1

C 2: Explanation (B2B Customer Behaviour)

25.

When success of one company in one industry depends on another

company in another industry, we have a case of ___________
demand.

26.

The business customers tend to buy the same quantity even if price
fluctuates because of ______________ demand.

27.

Due to the products life expectancies, organisational products tend to

have ____________ demand.

C 3: Descriptors

A.
B.
C.
D.

inelastic
derived
fluctuating
overfull demand

Read the MINICASE A below and answer the questions 28 32 in Box 8.

MINICASE A: Bruce, personal assistant to Diana, is very upset about not being able to contact
Diana when she is on the road. Diana is required to travel to meetings with clients daily and
spends about 50 percent of her time in the car. Bruce suggested to Diana that she get a cell
phone so that business doesn't come to a halt while she is out of the office. Diana discussed this
option with her boss, Ernie. Ernie agreed that Diana should have a cell phone. He contacted the
company's purchasing agent, Umberto, and authorized the purchase.
BOX 8
C1

C 2: Terms (Consumer Roles and Status)

28.

Bruce, Diana, Ernie, and Umberto were all involved in the decisionmaking process for the cell phone purchase representing a (an) _____.

29.

The role Bruce played in the cell phone purchase was that of a (an)
_______.

30.

Dianas role in the decision-making process for the cell phone was
that of a (n) __________.

31.

Which role is Ernie played playing in the decision-making process?

32.

In the decision making process, Umberto played the role of a (n)

________.

C 3: Descriptors
A.
B.
C.
D.
E.

initiator
decider
purchaser
user
buying centre

BOX 9
C1

C 2: Explanation (Market targeting strategies)

33.

A basic assumption of _________ type of segmentation is that people

who live near one another share similar characteristics.

34.

_________ type of segmentation variables classify consumers on the

basis of how they act toward, feel about, or use a product.

35.

Red Tulip's "After Dinner Mints" advertising campaign is positioned

in terms of __________segmentation base.

36.

The statement Rab likes nothing better than to unwind with his
mates, over a drink, at the football portrays ________ profile of a
customer.

C 3: Descriptors

A.
B.
C.
D.
E.

psychographic
geo-demographics
behavioural
ethnographic
occasion

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BOX 10
C1

C 2: Situation (Market coverage strategies)

37.

Vegemites slogan Puts a rose in every cheek supports

_________ type of market coverage.

38.

Adoption of __________ market coverage approach typically

carries higher than normal risk.

39.

Firms such as DELL (PC) and CRAY (Mainframe) adopt _______

type of market coverage by going for large share of one or few
submarkets rather than for small shares of many markets.

40.

Firms involved in local or individual marketing tend to follow

__________.

C 3: Descriptors

A.
B.
C.
D.

differentiated
concentrated
undifferentiated
micro-marketing

BOX 11
C1

C 2: Description (Service Characteristics)

C 3: Descriptors

41.

_______ refers to almost pure service, with virtually no physical

element.

A.
B.

42.

_______ characterises a service such as teeth cleaning by dental

surgeons.

43.

________ characterises an almost pure service such as a cruise.

44.

______ is a characteristic of a service such as driving lessons.

45.

_______ characterises services such as a concert.

C.
D.

E.

Variability
High involvement;
personal nature
Perishability
Synchronous
delivery and
consumption
Intangibility

BOX 12
C1

C 2: Description (Pricing Policy)

46.

_________ refers to pricing to cover at least the variable costs.

47.

_________ is a pricing policy that ignores long-run performance.

48.

_________ reflects the belief that the ability to dominate the

market results in lowest costs and highest long-run profit.

49.

_______ is the objective that is most likely to result in high

prices.

C 3: Descriptors
A. Current profit
maximization
B. Product quality
leadership.
C. Survival objective
D. Market share
leadership

BOX 13
C1

C 2: Characteristics (Market types)

50.

The market consists of many buyers and sellers trading in a

uniform commodity under __________.

51.

Refers to markets comprising any buyers and sellers who trade

over a range of prices rather than a single market price.

52.

The development of marketing strategy is least important in the

type of market that has __________.

53.

The marketing strategies of St. George Bank, which has started

competing against the "Big Four." Banks in Australia will be
shaped by the market that is _________.

C 3: Descriptors

A. Oligopolistic
B. Monopolistic
competition
C. Pure competition
D. Pure monopoly

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BOX 14
C1
54.
55.
56.
57.

C 2: Description (Distribution and Channels)

Refers to difference between the amount of product produced and
the amount an end user wants to buy.
To overcome this, marketing channels assemble in one place many
of the products necessary to complete a consumer's needs and
wants.
Refers to the difference between the location of a producer and the
location of widely scattered markets.
This occurs when a product is available but a customer is not ready
to buy it.

C 3: Descriptor
A. Discrepancy of
assortment
B. Temporal
discrepancy
C. Discrepancy of
quantity
D. Spatial discrepancy

BOX 15
C1
58.
59.
60.
61.

C 2: Industry examples (Distribution and channels)

Coles obtains a substantial proportion of goods it sells from
companies it partly or wholly owns.
Lexus licenses independent dealers to sell its cars.
Pillsbury and Kraft foods cooperate to advertise and sell products
to retailers.
Campbell Soups size and power command cooperation from
retailers.

C 3: Descriptors
A. Corporate VMN
B. Contractual VMN
C. Administered
VMN
D. Horizontal
Marketing
Systems (HMS)

BOX 16
C1
62.
63.
64.
65.
66.

C 2: Advantages (Use of media for promotion)

_________ has relatively low clutter and high frequency.
_________ has short ad-placement lead time and high credibility.
_________ is intrusive, attention getting nature as well as high
reach and frequency.
_________ enables use of personalised messages as well as
facilitation of direct selling efforts.
_________ has the ability to undertake very specific targeting as
well as providing detailed information for ads pertaining to new
products/services.

C 3: Descriptors

A.
B.
C.
D.
E.

Television
Magazines
Newspaper
Direct marketing
Billboards

BOX 17
C1
67.

68.

69.

70.

C 2: Actions/situations (Sustainable Marketing)

_________ refers to socially and environmentally responsible
actions to meet both current needs of consumers and businesses as
well as the needs of the future generations.
_________ refers to an organised movement of concerned citizens,
businesses, and government agencies to protect and improve
peoples living environment.
_________ refers to an organised movement of citizens and
government agencies started in the 1960s to improve the rights and
power of buyers in relation to sellers.
_________ can only be fostered by top management commitment
and implemented through continuing education.

C 3: Descriptors

A. Culture of legal
compliance
B. Magazines
C. Consumerism
D. Environmentalism
E. Sustainable
marketing

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SECTION B: (35 Multiple choice questions)*

(2 marks x 35 = 70 marks)
(Application of marketing concepts, skills and theories learnt in the course)
Continue to record your answers to the following multiple choice questions from row 71 to
row 105 of the Generalised Answer Sheet. To indicate your answer, mark only one oval in
black ink.
Each question is worth 2 marks. Please supply the most appropriate answer.
71.

UNSW students Alvin, Bert and Chandler rented an apartment for the first time and needed a
refrigerator or washing machine. As none of them had the money to buy these they leased
them from a company which specialised in renting these products. The company also agreed
to deliver the products to the apartment and pick it up again at the end of the lease. The rental
company created __________ and __________utility for the renters.
A.
B.
C.
D.
E.

72.

_____ links the organization to its individual customers, employees, suppliers and other
partners for their mutual long-term benefit; successful hiring, training and motivating able
employees to serve the customers well is part of ____________.
A.
B.
C.
D.
E.

73.

A marketing chain; value proposition

Responsive marketing; holistic marketing
Internal marketing; relationship marketing
Relationship marketing; internal marketing
Modern marketing; value proposition

Lenny is putting together a plan which covers all of the functions of his business. Boris is
writing his plan specifically to acquire and maintain customers. Lola, the CEO of a large
MNC has just finalised the objectives for her portfolio of businesses. Sonia works for Lola
and has been asked to write a mission statement and set marketing objectives for the team she
manages. Based on the scenario presented above which of the following is NOT correct?
A.
B.
C.
D.
E.

74.

form and place

place and creation
possession and time
time and place
creation and possession

Lenny is working on a functional plan

Sonia is likely to manage a SBU
Boris is currently involved in writing a marketing plan
Lola is developing her corporate strategy
Lenny is working on the business plan.

While demographic trends are highly reliable for the _________ run, growing human
needs/wants are not necessarily translating into growing __________.
A.
B.
C.
D.
E.

short/immediate, demands
short/immediate, markets
short/intermediate, demands
Intermediate/long, opportunities
long; threat

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75.

The Electro Corporation has been experiencing marketing problems with no clear "feel" for
the specific nature of these problems. Maxout Corporation, on the other hand, wants to
undertake a consumer attitude study for its proposed new product. Electro should undertake a
(an) ________ research while Maxout should conduct a (an) _________ research
A.
B.
C.
D.
E.

76.

___________ factors have the broadest and deepest influence on consumer behaviour;
however, the reference group that has most influence on consumers is __________.
A.
B.
C.
D.
E.

77.

D.
E.

To motivate Louis and Evelyn to buy another mattress.

To satisfy legal requirements.
To counter any negative publicity that Louis and Evelyn might someday hear about
the mattress and its manufacturer.
To reduce any post-purchase dissonance.
To make sure it remained in Louis and Evelyns consideration set.

Which of the following is the best example of a modified rebuy situation?

A.
B.
C.
D.
E.

79.

Personal; family.
Cultural; social class.
Psychological; peers.
AIO; church group.
Cultural; household (or family).

About a month ago, Louis and Evelyn purchased a Select Comfort mattress for their bed for
$1500. Last night a customer service representative of the manufacturer of the mattress called
them to thank them for buying the mattress and to ask if they were happy with it. Why would
a manufacturer bother with making such a call?
A.
B.
C.

78.

quantitative; qualitative
primary; secondary
focus group; causal
exploratory, descriptive
descriptive; exploratory

the purchase of a replacement goldfish for a school aquarium

bidding on a new high school multi-purpose gymnasium to replace one built in 1963
the purchase of three large screen monitors to replace smaller screens
the annual purchase of calendar refills for the desks of all company executives
the monthly updating of computer virus protection

Industrial buyers must deal with factors relating to the levels of primary demand, economic
outlook, and cost of money which originate from the _________.
A.
B.
C.
D.
E.

economic environment.
work situation.
marketplace.
competitive structure.
competitive environment.

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80.

Magazines targeted to people who compete in triathlons, those who enjoy cooking, and
those who love knitting use __________ segmentation variables; however, marketers who
classify consumers on the basis of how they act toward, feel about, or use a product use
_________ segmentation variable.
A.
B.
C.
D.
E.

81.

A nineteen-year-old first year UNSW student might be a "party animal" living in a dormitory.
Another first year UNSW student of the same age might be a husband with a small child and
a part-time job. If you were in charge of a marketing program aimed at these men, what
segmentation technique would be the best that might help you to distinguish between them?
A.
B.
C.
D.
E.

82.

choosing a segment or segments to focus marketing activities; not always necessary.

choosing a segment or segments to focus marketing activities; always necessary.
proper market positioning; an absolute necessity.
choosing a logo and value proposition; unnecessary for inexpensive products.
developing a specialised marketing objective; a must.

In the sneaker market, Reebok and Nike practice _______________________ positioning

since both manufacturers compete in the same target market. However, when McDonalds
introduced its low-fat McLean Deluxe hamburger it used positioning ________ to avoid
direct competition with Wendys and Burger King.
A.
B.
C.
D.
E.

84.

Age cohort analysis

benefit
psychographics
lifestyle
behaviour

Transition from segmentation to target marketing involves____________________; for

efficient marketing selecting a target market is ______________________________.
A.
B.
C.
D.
E.

83.

lifestyle; usage occasion

psychological; behavioural,
lifestyle; personality
psychographic; behavioural
demographic; usage occasion

head-to-head, away from competitor.

parallel, on benefits offered.
emotional, against a competitor.
away from competitors; on specific product attributes.
head-to-head; away from competitors.

During a recent shopping trip, Pat noticed that the local Target store offered a tremendous
variety of products, including toys, pet foods, clothing for men/ women/ children, health and
beauty aids, small household appliances and more. She further noticed that the store offered
an array of different products within each product group. Each product group at Target is an
example of a ________; all of the product groups together constitute Target's _________.
A.
B.
C.
D.
E.

product tangibility; product unit

product mix; product unit
product line; product mix
product unit; product tangibility
product mix; product line
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In terms of promotion, _____________ stress product differentiation from competitors while

______________ stress status and uniqueness of brand.
A.
B.
C.
D.
E.

86.

Brands with _____________ differentiation are those which generally earn ____________
margins.
A.
B.
C.
D.
E.

87.

shopping goods; specialty goods

convenience goods; unsought goods
specialty goods; unsought goods
unsought goods; specialty goods
services; shopping goods

Fragmented; augmented
Augmented; fragmented
Higher; higher
Higher; lower
Lower; higher

Consider the three diagrams namely, A, B, and C below. They represent _______. ________
and ____________ respectively.

SALES

SALES
TIME

A.
B.
C.
D.
E.
88.

SALES

85.

TIME

TIME

Style; Fashion; Fad

Fashion; Fad; Style
Fad; Style; Fashion
Fad; Fashion; Style
Style; Fad; Fashion

Del Montes Barbecue Ketchup contained finely chopped onions and was aimed at kids -the
heavy ketchup-eating segment. But kids did not seem to care for onions and product failed.
Which of the reasons listed below is most likely to have caused this product failure?
A.
B.
C.
D.
E.

Insignificant point of difference

Incomplete market and product definition
Too little market attractiveness (size and growth of market)
Poor execution of the marketing mix
Poor product quality on critical factors

9|P a g e

89.

Bob was among the very first to purchase a new wireless pocket PC. He is very highly
educated, and makes purchase decisions based on information from Internet newsgroups,
newspapers, and technical journals he subscribes to. Stan made his decision based on
numerous informal social contacts, though he is not a leader in any social setting. He was
among the first 50% of the population to buy the wireless pocket PC. With respect to new
product adoption, Bob could best be described as __________ whereas Stan would best be
described as ___________.
A.
B.
C.
D.
E.

90.

Bayer aspirin is sold in the original strength, in a safety-coated version, in an extra-strength

version, and in a version designed especially for women. The manufacturer of Bayer aspirin
is using _________; Quaker Oats Company seeks to extend existing brand qualities to launch
a new product Quaker Granola Bar using ___________strategy.
A.
B.
C.
D.
E.

91.

early adopter; majority

early innovator; late innovator
innovator; early majority
early majority; early adopter
late majority; laggard

cobranding; mixed branding

brand extension; line extension
line extension, brand extension
multibranding; mixed branding
multibranding; generic branding

Which of the following statements is (are) true about label and packaging in marketing?
A.
B.
C.
D.
E.

A label is an integral part of the package as it conveys important information about

the product.
A label typically identifies the product or brand; packaging can be used to attract
customers to new brands.
They constitute two expensive aspects of the marketing strategy for a product.
While a label typically identifies who made it, where and when it was made; recent
trend is to emphasize the health and safety concerns of packaging.
All of the above are true about product labels and packaging.

Read the MINICASE B in the box below and answer Questions 92 96.
MINICASE B: Prime Shoes & Accessories [PSA] manufacture dress shoes, running shoes and heel
replacement kits for both mens and womens shoes. For its heel replacement kits Unit, PSA has fixed
costs of $6 million and unit variable costs of $5.00 per pair. PSAs desired mark-up on sales for each
set of kit is 25%. A consultant to the company suggested that if PSA invests a sum of $3.90 million
and switch from manual labour to an automated process to upgrade its heel replacement facilities,
variable costs for heel replacement kits would be reduced to $3.00 per unit. The upgrading, which
will take a year to be operational, would definitely be better for PSA.
You may use page 12 for your computation.

10|P a g e

92.

If PSA decides to charge $15 per pair, how many pairs must it sell to break even? How many
pairs must they sell at this price to earn a profit of $2 million?
A.
B.
C.
D.
E.

93.

If PSA expects to sell 600,000 heel replacement kits this year calculate the unit cost of each
kit. If the kits mark-up on sales is 25%, what would be the mark-up price?
A.
B.
C.
D.
E.

94.

169,231 kits
600,667 kits
700,000 kits
800,000 kits
1,000,000 kits

Suppose a consultant tells PSA it can sell 800,000 pairs of shoes, thus earning a profit
exceeding 3 million. What potential error is the consultant making?
A.
B.
C.
D.
E.

96.

$ 5.00; $ 20.00
$ 5.00; $ 18.75
$ 15,00; $ 20.00
$ 15.00; $ 18.75
$ 11.25; $ 15.00

How many kits would PSA have to sell at its marked-up price (calculated in question 93) to
make $2 million in profits in the next year when the upgraded facilities become operational?
A.
B.
C.
D.
E.

95.

200,000 kits; 400,000 kits

400,000 kits; 600,000 kits
600,000 kits; 800,000 kits
800,000 kits; 1, 000, 000 kits
1,000,000 kits; 1,000,000 kits

assuming that fixed costs are independent of price

assuming that units sold is independent of price
assuming that some fixed costs are variable
assuming that some variable costs are fixed
neglecting the elasticity of supply

Different brands of shoes within Prime Shoe Companys running shoe product line have
different profit margins; higher price lines have higher profit margins. For example, PRIME
starter shoes have variable costs of $6 and sell for $24; whereas, PRIME premier shoes have
variable costs of $10 and sell for $48. It must be true that:
A.
B.
C.
D.
E.

demand is unrelated to price.

Prime is using a cost-plus percentage-of-cost pricing strategy.
Prime is using a product-line pricing strategy.
demand is unrelated to product quality.
consumers do not use price as an indication of quality.

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SPACE FOR COMPUTATION

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97.

While M&M Chocolates use ______________ density of distribution; the Hallmark Card
Company uses ___________ distribution by limiting the number of outlets through which it
sells as it requires to maintain good dealer relationship. By contrast, Rolls Royce Car uses
___________ distribution density by maintaining just one distributor in a city.
A.
B.
C.
D.
E.

98.

intensive; extensive, selective

exclusive; intensive, selective
intensive; selective, exclusive
selective; exclusive, intensive
selective; selective, extensive

Which of the following is NOT a source of vertical conflict?

A.
B.
C.
D.
E.

when Foot Locker decided to give more shelf space to lower priced shoes
when channel members disagree on how profit margins are distributed among channel
members
when a manufacturer increases its distribution coverage in a geographic area
when a manufacturer believes a wholesaler or retailer is not devoting sufficient
attention to its products
when a channel member bypasses another member and sells or buys a product direct

Read the MINICASE: C in the box below and answer Questions 99 101.
MINICASE C: Greg Martin has developed his own line of children's books. The books are written for
children aged 3-6, and are produced using cotton fibre as pages, rendering them "nearly"
indestructible. This unique feature makes Martin's books superior to the competition. His products
are called RugRatReaders. Martin has decided to promote the books to his target market (women with
children aged 3-6) via radio and Internet and distributing leaflets in supermarkets during school
holidays. He does not have a formal promotional budget, but he is ready to spend whatever money he
has in the bank after producing the books each month. His message will focus on the product and its
unique features. Martin has been having problems getting book stores to stock his new product. It is
Martin's hope that consumers will go to their local book stores and ask for the RugRatReaders.
99.

According to the AIDA model, the first step that Greg Martin must achieve with his target
market is ___________. This has prompted him to use ________ to promote his books.
A.
B.
C.
D.
E.

100.

attention, IMC
interest, advertisement
attraction, public relations
desire, direct marketing
action, IMC

Martin has adopted the ________________ method of budgeting; his use of radio is a
component of ____________ element of the promotion mix.
A.
B.
C.
D.
E.

percentage-of-sales; direct marketing

affordable; advertisement
objective and task; public relation
competitive parity method; push
pragmatic; pull

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101.

The basic promotional task that Martins campaign is designed to accomplish is _________
the customers. In attempting to get consumers to ask the book stores for his books, Martin is
using the _____ promotional strategy.
A.
B.
C.
D.
E.

102.

When might a sales promotion lead to long-term adoption of a brand?

A.
B.
C.
D.
E.

103.

average reach; cost per thousand

cost per medium (CPM); average reach
average frequency; cost per medium
gross rating points (GRPs);average frequency
cost per thousand (CPM); gross rating points

Which of the following statements is (are) true for direct marketing?

A.
B.
C.
D.
E.

105.

When the promotion is extremely enticing.

When the sales promotion is used as an extension of image advertising.
When demand is inelastic for the product.
When demand is elastic for the product.
When the sale promotion is supported by online marketing.

Media planners use __________ to compare the relative cost-effectiveness of different print
media; however, to compare the relative cost-effectiveness of different television programs,
they use ________.
A.
B.
C.
D.
E.

104.

Attracting; push
Influencing; indirect
informing; pull
persuading; direct
reminding, creative

Direct marketing is all about building a dialogue with the consumer.

Direct marketing helps build a brand image via TV advertising.
Direct marketing creates awareness for products.
Direct marketing creates positive consumer attitudes for tired products.
B, C and D above.

A major attraction of database marketing is that it ________.

A.
B.
C.
D.
E.

allows a company to eliminate media advertising altogether.

is possible to calculate in advance what response will be required to achieve
breakeven among other response rates.
is possible to afterwards calculate what response will be required to achieve
breakeven among other response rates.
allows a company to cut down its costs.
makes what has been stated in A, B, C and D above possible.

THE END

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