Econ 198 Final Exam Samplex-2 PDF

SUBJECT: Econ 198 FINAL EXAMINATION Name:_________________________________________ Date __________________ Based on consumption and tangibility, what are the three (3) types of product...

SUBJECT: Econ 198 FINAL EXAMINATION Name:_________________________________________ Date __________________ Based on consumption and tangibility, what are the three (3) types of products : CHOICES: 1. D - long intervals between repeat purchases A. Perishables 2. C - stronger repeat purchases B. Services 3. B - are intangible; there is no physical product C. Non-Durables D. Durables Based on effort and risk, what are the four (4) types of products: 1. B - Unique, customized products with their own niches. No substitutes. Highest effort and risk in buying. High product loyalty. CHOICES: 2. A - buyer feel are worth the time & effort to compare with A. Shopping goods other competing products, more expensive, infrequent B. Specialty goods purchase. C. Preference goods 3. C - lesser risks, buyer loyalty (from advertising & branding D. Convenience goods efforts which assure buyer of a good buy); buyers willing to take substitutes during stock-out situations; as goods become more parity in quality, best to move into a “preference” strategy 4. D - little effort, lowest risk, no buyer loyalty, parity priced due to little product differentiation, needs wide distribution What are the three (3) levels of products as it relates to serving the consumer needs: 1. B – physical or tangible product e.g. cookware system 2. A – extras built-in to the formal product e.g. credit, warranty, CHOICES: cooking lessons, home demo service A. Augmented 3. C – generic benefit that each product gives e.g. good cooked B. Formal food C. Core D. Patented What are the three (3) opportunities for products in relation to the market which ensures the long-term growth of a company? 1. B – pertains to a new product in an existing market CHOICES: 2. D – pertains to a product that may/may not need modification A. Product Penetration to enter new market B. Product Development 3. C – pertains to an existing product in an existing market C. Market Penetration D. Market Development It is important to know the Product Life Cycle in a marketing effort so that the company can make appropriate marketing interventions to sustain its business. What are the stages in the Product Life Cycle? CHOICES: 1. D – product sales starts to fall off A. Maturity 2. A – this when the product is already patronized regularly B. Peak 3. C – this is when the product sales starts to pick up C. Growth 4. E – this is when you inform the market about your new D. Decline product E. Introductory Branding as a product strategy is important because of these three (3) reasons: 1. A - Enables brand owner to enjoy the goodwill associated with 3. D - Enables the owner to communicate the benefits of the the same so as not to be taken advantage by others product vs. competition 2. B - Enable consumers to easily distinguish one product from CHOICES: another A. Protection B. Identification  C. Promotion D. Positioning Packaging is said to be the silent salesman in the store. It causes the consumers to buy the product at the point of sale. What are the criteria for choosing packaging materials ? 1. F - Is it easy to carry? CHOICES: 2. B - Will it be cost-efficient? A. Size 3. C - can it give ample safety to the product B. Cost 4. A - What is the industry practice? Weight Limit? Minimum order C. Protection quantity? Average purchase size? D. Display Value 5. D - Can it attract consumers? E. Design F. Convenience Price represents the money one is willing to pay when buying a product. For the seller, he/she must choose the price that can maximize the profit from the product. The following are types of pricing strategy that are used in the market. Name at least five (5) of these: 1. RANDOM DISCOUNTING - Uses “sales” price or special discounts occasionally to attract consumers and maximize profit 2. _____________________________ - ‘off-peak’ pricing, early booking discounts, etc 3. _____________________________ -where prices are high - usually during introduction e.g new albums or films on release ultimately prices will reduce to the ‘parity’ 4. SECONDARY MARKET DISCOUNTING - Only the second market enjoys lower pricing e.g. Unilab sells branded products but also entered generics market to sell cheaper versions. 5. _____________________________ - Uses a high price, but gives a good product/service exchange 6. PENETRATION PRICING - offers low price to gain market share - then increases price 7. _____________________________ - Price is driven down over time as production cost go down 8. GEOGRAPHIC PRICING - different prices for customers in different parts of the world e.g. includes shipping costs, or place on PLC 9. _____________________________ -Set high price to signal high quality for one product, and a lower price for another which is exactly the same. Cross-subsidy occurs. e.g. bottled water variants, clothes variants 10. PRODUCT BUNDLE PRICING - sellers combine several products for a price that is cheaper than when purchased individually 11. PREMIUM PRICING - Set high price by offering unique features e.g. balcony vs. orchestra, regular vs. suite rooms 12. _____________________________ - products that complement others e.g. Gillette razors (low price) and blades (high price); Two-part Pricing – fixed fee plus variable fee e.g. clubs with entrance fee and monthly dues; Loss-Leader Pricing – supermarket drop the prices to attract consumers in the hope that the volume will make up for the price loss. A channel of distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title from production to consumption. What are the elements of an effective distribution mix? 1. C – proper types of outlet (for non-retail: type of industry or account; sufficiency of brochures/catalogs) CHOICES: 2. F – product is available in an outlet A. Display 3. B – right inventory in the outlet B. Volume 4. A – right, good space C. Coverage 5. D – right incentive for the dealers D. Pricing 6. E – win-win partnerships E. Goodwill F. Placement Name at least five (5) types of channels of distribution: 1. DISTRIBUTORS - Appointed to perform distribution function for manufacturers; Can be exclusive arrangement or not; may sell to wholesalers or retailers or end-users 2. WHOLESALERS - buys from producers and sell small quantities to retailers 3. _________________ - Mainly used in international markets; does not take title of the goods; Secures orders; earns commission 4. _________________ - carries stocks in van/small truck; saturates given territory by selling on COD; reacges smaller retailers e.g. sari-sari stores 5. RETAILER – sells to final consumer/buyer e.g. supermarket, grocery, sari-sari store 6. FRANCHISING – an accelerated method of expanded distribution; pay a certain fee in exchange for the system of operations and other support systems; pay royalty fees monthly e.g. Mini-Stop, 7-11 7. AGENTS - uses foot soldiers to sell their products via a network marketing system 8. INTERNET - uses e-commerce technology to sell their products 9. HOME DELIVERY - addresses problems of buyers who can’t leave their homes e.g. no maids, traffic, parking problems, etc. Orders are taken by phone and given to the branch nearest the caller to respond. In the marketing mix, what are the four (4) major tools used: 1. B - To inform/persuade target market CHOICES: 2. E - To offer positive image of the brand/ company A. Selling 3. A - To get the customer to buy B. Advertising 4. C - To convince customers to buy immediately C. Promotions D. Publicity E. Public Relations F. Direct Marketing The objectives for a Promotional/Advertising Message are : 1. Grab - ATTENTION 2. Excite - INTEREST 3. Create - DESIRE 4. Prompt - ACTION The types of advertising according to your purpose in the market are: 1. B - To convince audience regarding particular causes CHOICES: 2. C - To stimulate demand for a brand A. Classified Advertising 3. D - To inform prospects about promotional activities B. Advocacy Advertising 4. A - To inform prospects about opportunities (jobs, for sale, etc.) C. Brand Advertising 5. E - To develop goodwill for an organization D. Promotional Advertising E. Institutional Advertising F. Mass Advertising Name the elements of the advertising mix: 1. C - WHAT to say CHOICES: 2. F - HOW to say it A. Media Selection 3. A - WHERE to say it B. Advertising Budget 4. E - WHEN to say it C. Message / Positioning 5. B - HOW MUCH to spend D. Advertising Testing/ Evaluation 6. D - HOW effective is the advertisement E. Media Scheduling F. Copy execution In executing an advertising material, name at least three (3) ways of CREATNG an ad (i.e. creative executional handle or style): 1. SCIENTIFIC EVIDENCE 2. SLICE OF LIFE 3. IMAGE In preparing a MEDIA PLAN, what are three (3) parameters that are currently used by media planners: 1. B – no. of consumers exposed to an ad at least once during CHOICES: the duration of placement A. Frequency 2. A – no. of times consumers are reached (should be a B. Reach number of times before they are influenced to take action) C. Appeal 3. D - qualitative value of the ad – beyond recall does it make D. Impact the consumer interested in the brand. Name at least three (3) types or forms of MEDIA that advertisers can use: 1. TELEVISION 2. PRINT 3. NEW MEDIA Under Promotions, there are two categories: CONSUMER AND TRADE. a. Trade Promotions – there are 11 possible types: Name at least three (3) 1. REBATES AND REWARDS  2. COOPERATIVE ADVERTISING 3. FREE PRODUCTS b. Consumer Promotions – there are 14 possible types: Name at least three (3) 1. WARRANTY 2. BONUS PACKS 3. PATRONAGE REWARDS In Public Relations, to be effective, what are the basic steps in developing a program for PR: 1. RESEARCH – answers the question “What the company’s problem and / or opportunity?” 2. PLANNING – answers the question “Here’s what we can do.” 3. COMMUNICATION – answers the question “Here’s what we will do and why.” 4. EVALUATION – answers the question “How did we do?” Name at least 5 types of Public Relations tools: 1. PRESS / NEWS RELEASE 2. SPECIAL EVENTS 3. SPONSORSHIPS or PARTNERSHIPS 4. POLICY REFORM 5. ADVERTORIALS “If the circus is coming to town and you paint a sign saying “Circus coming to the Fairground Saturday”, that’s advertising. ✔ If you put the sign on the back of an elephant and walk it into town, that’spromotion. If the elephant walks through the mayor’s flower bed, that’spublicity. And if you get the mayor to laugh about it, that’spublic relations. If the town’s citizens go the circus, you show them the many entertainment booths, explain how much fun they’ll have spending money at the booths, answer their questions and ultimately, they spend a lot at the circus, that’s sales. And, if you planned the whole thing, that’sMarketing! “