MKT 3020- Final Exam Revision

Based on CountryManager Simulation: 

Sales in Argentina were ARS 715 million, with COGS ARS 320 million, shipping/tariffs ARS 107 million, and promotional allowance ARS 111 million. What is the gross margin on the product?

• 35%

• 55%

• 45%

• 25%

Based on CountryManager Simulation:

Current cost to source from the home plant to Country A is $0.55 per unit, plus $0.02 in shipping (there is no tariff). If product is sourced from Country B, manufacturing cost is expected to be 20% lower; but shipping will increase to $0.06, and there is a tariff of 14% on CIF. What will the savings be on 100 million units if sourcing for Country A switches from the home plant to Country B?

• $ 3 million

• $ 20 million

• $ 7 million

• No saving

Based on CountryManager Simulation:

When entering markets in a region, you should always choose the country with the lowest manufacturing costs for local production.

• True

• False

Based on CountryManager Simulation:

A product with an MSRP of $ 15.00 has a promotion allowance of 15%. How much will the distributor receive in promotion allowance for each unit?

• 2.25

• 5.00

• 3.00

• 1.50

Based on CountryManager Simulation:

Higher price discounts and promotion allowance will help push products through the wholesale channel.

• True

• False

Segmentation in marketing is the process of dividing a large, diverse market into smaller, more homogenous groups.

• True

• False

Based on CountryManager Simulation:

MSRP serves as a reference for consumers and retailers, and the basis price for volume discounts to distributors.

• True

• False

Based on CountryManager Simulation:

What SKUs are NOT available for introducing your brand in the region?

• healthy

• pump

• tube

• economy

Based on CountryManager Simulation:

Since wholesalers have their own sales force, there is no need to allocate sales force to the wholesale channel.

• True

• False

Elastic or Inelastic

• Elastic
• Inelastic