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CODE: BMI3C – 01, 02
MARKETING EXAM REVIEW
Date: June 15 – 9 am
The exam is out of 100 and the first 94 questions are to be answered on one scantron card.
You MUST use a soft leaded pencil – or the card will not scan properly. Mr. Robinson WILL NOT re-mark
the card by hand, so BRING A PENCIL!!! NO PENS ALLOWED.
Part A -- True / False
Many of these questions are directly from the exam – but in many cases they have been rephrased or
turned around (IS changed to NOT). When you do the exam READ the question carefully before
answering.
- People who share similar needs and wants are called a target market.
- A combination of geographic, demographic and psychographic data can be used to create a customer profile.
- Information about the values and attitudes that shape consumers' lifestyles is called demographics.
- Markup is the difference between an item’s retail price and its cost .
- A hair cut, a guitar lesson, and a bag of chip are all products.
- A branded product costs more than an unbranded one because it is advertised more.
- A customer uses the product; a consumer buys the product.
- Rent and tuition are other names for price.
- Google and Facebook are not good at targeting their ads at specific consumer groups.
- Market share is a company’s sales of goods or services as a percentage of the total sales for that market.
- A trend differs from a fad in that a fad has a more lasting effect on the marketplace.
- A products slogan generally identifies a unique selling point.
- A niche market is one in which only one or two businesses compete for consumer dollars in a small market.
- If a consumer can recite a company’s slogan without thinking, the company has achieved top of-the-mind
awareness.
- Marketers normally position a product or service in order to create a positive image in the minds of
consumers.
- A properly positioned product can zero in on the target lifestyle or demographic of a particular group.
- The cost of doing business is not a factor in how a retailer determines a selling price.
- All of the symbolic ways to create a brand, such as trademarks, brand marks, and corporate symbols, are
called its logo.
- When two or more brands combine and cooperate for their mutual benefit is called co-branding.
- One purpose of packaging is to promote the product.
- A key factor for determining price is the profit that a company hopes to make.
- A competitor’s pricing policy can directly impact a company’s prices.
- Fixed costs are independent of sales or other variables.
- The formula for calculating the break-even point can be determined by subtracting fixed costs from the gross
profit.
- One way to increase profits is to reduce the variable costs.
- If a business decreases the selling price in order to promote sales, the potential increase may help it reach the
break-even point more quickly.
- In Canada, price fixing is a legal practice that helps businesses to compete more effectively with one another.
- Double ticketing and bait-and-switch are not deceptive pricing practices.
- Market skimming is a process whereby businesses attempt get consumers to always pay too much.
- A coupon is a document that entitles the bearer to a reduction in the price of a specific product or service.
- Only about 5% of coupons issued actually get redeemed
- Brand Reminder generally occurs when new brands come onto the market, and older, more established
brands need to inform customers that they are still out there.
BMI3C -- Final Exam Review -- Page 1
PART B: Multiple Choice
Note: A numbering error was made on the exam.
Part B is numbered 1 – 44 and is to be done on the BACK of the scantron card, which is numbered 51 – 100.
Hence 1 (of part B) = 51, 2 = 52 …10=60…40 = 90, 44=94). If you do them in order your will have no
problem, if you are concerned about getting confused, just re-number Part B 1 – 44 to 51 – 94 on the actual
exam paper – this should take less than a minute.
In a marketing mix which of the following is not one of the four P’s?
a. product
b. people
c. price
d. promotion
2. Tyrone received a small sample box of Doggy Treats in the mail. What is this an example of?
a. advertising
b. personal selling
c. sales promotion d. publicity
3. Tray’s Hardware store sells an 18 inch box fan for $29.95. The store’s cost for the fan is $16.75. What is
the store’s percentage markup on cost?
a. 44 percent
b. 66 percent
c. 53 percent
d. 79 percent
4. The owner of a hair salon provides her customers with -a. a promotion
b. a good
c. an exchange
d. a service
5. The Way Spicy Sauce Company began marketing a new sauce that includes spices often found in
Caribbean cuisine. How is the company segmenting its market?
a. psychographics
b. product benefits
c. geographics d. demographics
6. The marketing activity that deals with logos, slogans, and trademarks is
a. storage
b. research
c. packaging
d.
branding
7. In the product life cycle, the stage at which a product is launched is called
a. maturity
b. decision point c. introduction
d. growth
8. The study of consumers’ beliefs, opinions, and interests is
a. psychographics
b. demographics c. geographics
d. nanographics
9. The study of where consumers live is called
a. psychographics
b. demographics c. geographics
d. nanographics
10. The motivational force that expresses love, fear, joy, and comfort is
a. emotional
b. rational
c. social d.
biological
11. Which of the following forms can logos take? Choose one answer.
a. monogrammatic logo b. abstract symbols
c. visual symbols d. all of the above
12. A product that capitalizes on an older brand’s success exemplifies which one of the following?
a. brand license b. brand extension c. brand support
d. co-branding
13. To calculate the break-even point, a business must calculate which of the following? Choose one answer.
a.
variable costs
b. fixed costs c. gross profit
d. all of the above
14. Which one of the following is the best example of a variable cost for a business?
a. rent
b. insurance c. advertising
d. salaries
15. The formula that is used to calculate the break-even point is
a. fixed costs + gross profit
b. fixed costs / gross profit c. fixed costs – gross profit
d. fixed costs x gross profit
16. The strategy of setting a high initial price before competitors enter the market is called
a. penetration pricing
b. market skimming c. premium pricing d. competitive pricing
1
17.
and
are examples of ________________ symbols:
a. monogrammatic
18.
and
b. visual
c. abstract
d. psychographic
are examples of __________________________ symbols
a. monogrammatic
b. visual
c. abstract
d. psychographic
BMI3C -- Final Exam Review -- Page 2
19. Name the product life cycle:
a. niche
b. traditional PLC
c. trend
d. fad
e. seasonal
Exam Topic List:
Unit 1: Marketing Fundamentals
Goods and Services, Industrial vs Consumer Goods
Marketing Activities: Research, Product Development, Packaging, Pricing, Branding, Sales, Distribution, Inventory
Management, Storage, Promotion
4 p's and 2 c's of the Marketing mix: PRODUCT, PRICE, PLACE, PROMOTION and CONSUMER, COMPETITION
Unit 2: The Consumer
Custmer, consumer, gatekeeper, needs vs wants
Product Lice cycles: traditionl, fad, trend, seasonal
Reasons why consumers buy: Snob effect, Bandwagon effect, Economic, Practical, Psychological, Sociological,
Rational, Irrational, Factual
The 5 demographic categories: age, gender, family life cycle, income level, ethnicity, culture
Generations: Baby Boomers, Generation X, Generation Y, Millennium Kids
Consumer Profile, Market segment, cohort
5 "psychographic" variables: values, beliefs, buying patterns, perceptions, and lifestyle choices such as recycling,
fitness, travel, and hobby interests
Geographics: Urban, suburban, rural, etc
Unit 3: Brands, Logos and slogans
corporate dominant or product dominant
Logos 3 basic forms: Monogrammatic Symbols, Visual Symbols, Abstract Symbols
private label brands, extending and refreshing brands, brand licensing, co-branding
Unit 3: Brand Positioning
Positioning Statement, unique selling point, top-of-the-mind awareness, market map
Types of positioning: BENEFIT POSITIONING, TARGET POSITIONING, PRICE POSITIONING, DISTRIBUTION
POSITIONING, SERVICE POSITIONING
Unit 4: Advertising, Media Types & Product Placement
Goals of advertising: Brand Awareness and Positioning, Brand Trial, Brand Preference, Brand Repositioning, brand
reminder
Creating a Message Process: Intent - Message - Media - Reception - Action
Selecting the Media: reach, frequency, slectivity, durability, lead-time, mechanical requirements, clutter
Types of Media: Interenet, radio/tv, out of home, direct, specialty, target campaigns
Unit 5: Price
Price has many names: rent, salary, mortgage, tax, etc
Margin:percentage of the price charged for the item which is not used to pay for the cost of the item
Margin = Markup + Expenses / Selling Price
Markup: percentage of the cost of an item added to cover expenses and make a profit
GROSS PROFIT: Money left over after all “variable costs” have been paid.
gross profit = markup expenses
BEP: Break-Even Point
BEP=Fixed Cost / Gross Profit
Approaches to Reaching the Breakeven Point Faster
BMI3C -- Final Exam Review -- Page 3