MKT 201: Principles of Marketing - Practice Set 2

Marketing

1. A company that sets a low initial price to penetrate the market quickly and attract a large volume of buyers is using: (1 pt)

A) Market-skimming pricing

B) Market-penetration pricing

C) Target-cost pricing

D) Dynamic pricing

2. In the buyer adoption process for a new product, which stage comes immediately after Awareness? (1 pt)

A) Evaluation

B) Trial

C) Interest

D) Adoption

3. Which macroenvironmental force includes population age structure, generational cohorts, geographic population shifts, and household diversity? (1 pt)

A) Demographic environment

B) Economic environment

C) Cultural environment

D) Political environment

4. Which promotion mix tool builds good relations with a company’s publics through favorable publicity and handling rumors? (1 pt)

A) Direct marketing

B) Sales promotion

C) Public relations (PR)

D) Personal selling

5. When a business buyer reorders a product or service with modifications to specifications, prices, or suppliers, the situation is called a: (1 pt)

A) Straight rebuy

B) Modified rebuy

C) New task

D) Systems sale

6. Tailoring products and marketing programs to suit individual customers or localized customer groups is known as: (1 pt)

A) Micromarketing

B) Differentiated marketing

C) Mass marketing

D) Undifferentiated marketing

7. A corporate growth strategy in which a company acquires or starts businesses outside its current products and markets is called: (1 pt)

A) Market penetration

B) Product development

C) Diversification

D) Market development

8. Which component of the service-profit chain directly links internal service quality to employee satisfaction and productivity? (1 pt)

A) External service value

B) Internal service quality

C) Healthy service profits

D) Satisfied and loyal customers

9. In the communication process, what is the receiver’s interpretation of the symbols encoded by the sender called? (1 pt)

A) Encoding

B) Decoding

C) Feedback

D) Noise

10. In international marketing, selling the same product in foreign markets without making changes is called: (1 pt)

A) Straight product extension

B) Product adaptation

C) Product invention

D) Dual adaptation

11. Contrast a Push Strategy with a Pull Strategy in the promotion mix. Explain which strategy a fast-moving consumer goods (FMCG) brand like Coca-Cola primarily relies on. (2 pts)

12. Outline three major structural differences between Business-to-Business (B2B) markets and Business-to-Consumer (B2C) markets. (2 pts)

13. Identify the four stages of the Product Life Cycle (PLC) and state the primary marketing objective associated with each stage. (2 pts)

14. Case context: IslandFresh is a regional beverage company producing 100% natural cold-pressed juices. It created VitalBoost, organic functional wellness shots for health-conscious millennials and busy young professionals seeking low-sugar drinks, including ginger-turmeric shots and prebiotic sparkling botanicals. VitalBoost comes in eco-friendly glass bottles, costs $4.50 per 2 oz bottle, and is sold through high-end gym chains, health food stores, and an online subscription box. IslandFresh uses local fitness influencers on Instagram and TikTok and sampling at regional sports events. Part A: Identify two demographic and two behavioral bases used to segment the market. Part B: Identify the targeting strategy (undifferentiated, differentiated, concentrated/niche, or micromarketing) used for VitalBoost and justify it. (2 pts)

15. Case context: IslandFresh is a regional beverage company producing 100% natural cold-pressed juices. It created VitalBoost, organic functional wellness shots for health-conscious millennials and busy young professionals seeking low-sugar drinks, including ginger-turmeric shots and prebiotic sparkling botanicals. VitalBoost comes in eco-friendly glass bottles, costs $4.50 per 2 oz bottle, and is sold through high-end gym chains, health food stores, and an online subscription box. IslandFresh uses local fitness influencers on Instagram and TikTok and sampling at regional sports events. Part A: Identify the new-product pricing strategy (market-skimming or market-penetration). Part B: Explain two market conditions that make it appropriate. (2 pts)

16. Case context: IslandFresh is a regional beverage company producing 100% natural cold-pressed juices. It created VitalBoost, organic functional wellness shots for health-conscious millennials and busy young professionals seeking low-sugar drinks, including ginger-turmeric shots and prebiotic sparkling botanicals. VitalBoost comes in eco-friendly glass bottles, costs $4.50 per 2 oz bottle, and is sold through high-end gym chains, health food stores, and an online subscription box. IslandFresh uses local fitness influencers on Instagram and TikTok and sampling at regional sports events. Identify the distribution intensity (intensive, selective, or exclusive) chosen for VitalBoost and explain why it aligns with the brand positioning. (2 pts)

17. Case context: IslandFresh is a regional beverage company producing 100% natural cold-pressed juices. It created VitalBoost, organic functional wellness shots for health-conscious millennials and busy young professionals seeking low-sugar drinks, including ginger-turmeric shots and prebiotic sparkling botanicals. VitalBoost comes in eco-friendly glass bottles, costs $4.50 per 2 oz bottle, and is sold through high-end gym chains, health food stores, and an online subscription box. IslandFresh uses local fitness influencers on Instagram and TikTok and sampling at regional sports events. If IslandFresh enters foreign markets, compare Indirect Exporting with Direct Foreign Investment in terms of risk, investment, and market control. (2 pts)