MKT501 Midterm Paper 3 2009

MIDTERM EXAMINATION · Fall 2009 · MKT501- Marketing Management (Paper-3)

Which of the following must be developed at each product level for achieving the goals?

1. Corporate plan
2. Selling plan
3. Marketing plan
4. Business plan

Correct answer: Marketing plan

For Product or Service, a Brand, or a Product line, It can cover ONE YEAR (referred to as an annual marketing plan), or cover up to 5 years. A marketing plan may be part of an overall Business Plan.

Which of the following part of a marketing plan defines the plan’s financial and marketing goals in terms of sales volume, market share and profit?

1. Marketing strategy
2. Action programs
3. Issue analysis
4. Objectives

Correct answer: Marketing strategy

Marketing strategies are those plans designed to reach Marketing goals. A good marketing strategy should integrate an organization’s marketing goals, policies, and action sequences (tactics) into a cohesive whole.

Assumptions, pro-forma income statement, contribution margin analysis, breakeven analysis, ratios analysis must be very formally done in:

1. Executive summary
2. Financial summary
3. Promotional plan
4. Business plan

Correct answer: Financial summary

Page 16 Financial Summary

Assumptions, pro-forma monthly income statement, contribution margin analysis, breakeven analysis. This information must be very formally done at this stage

Which of the following has the largest market share in the relevant product market?

1. Market leader
2. Market challenger
3. Market nicher
4. Market follower

Correct answer: Market leader

The market leader is dominant in its industry. It has substantial market share and often extensive distribution arrangements with retailers.

A market nicher can reduce their operating expense through less spending on:

1. Market segment and advertising
2. R & D and market segment
3. Advertising and promotion
4. R & D and advertising

Correct answer: R & D and advertising

Market nicher tends to keep their operating expenses down by spending less on R&D, advertising, and Personal selling.

A market leader firm can expand the total market through:

1. Decreasing distribution of the product
2. Introducing the new usage of the product
3. Eliminating some features of product
4. Increasing cost

Correct answer: Introducing the new usage of the product

It typically is the industry leader in developing innovative new business models and new products (although not always). It sometimes has some market power in determining either price or output. Of the four dominance strategies, it has the most flexibility in crafting strategy.

A brand name is one of the elements of the:

1. Discounted product
2. Core benefit
3. Augmented product
4. Actual product

Correct answer: Actual product

Tangible Product or Service

O Product attributes and features, Quality, Styling, Packaging protection and label information, Brand name

Which of the following is TRUE about a product?

1. Every tangible thing the customer receives in an exchange
2. The idea that the customer receives in an exchange
3. The service that is rendered to a customer
4. The physical object the customer receives in an exchange

Correct answer: The physical object the customer receives in an exchange

“In marketing, a product is anything that can be offered to a market that might satisfy a want or need. However it is much more than just a physical object. It is the complete bundle of benefits or satisfactions that buyers perceive they will obtain if they purchase the product”.

Identify the stage of product life cycle in which sales are at peak.

1. Introduction
2. Growth
3. Maturity
4. Decline

Correct answer: Maturity

page 25 Mature stage

• Costs are very low as you are well established in market & no need for publicity. • Sales volume peaks

Which of the followings are considered defensive in nature?

1. Maturity and growth stage
2. Maturity and decline stage
3. Introduction and maturity stage
4. Introduction and growth stage

Correct answer: Maturity and decline stage

The second two stages, mature and decline stage are often seen as defensive in nature. Standard Cable cut back advertising expenditures to minimum level and reduced the number of channel members for its industrial cable product. These actions are indicative of a product in which of the following stage of its life cycle?

1. Introduction
2. Growth
3. Maturity
4. Decline

Correct answer: Decline

MGT 301 Page 108 This is the decline stage.