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WorksheetsUnit 5 Test Review
Total questions: 55
Worksheet time: 35mins
Name
Class
Date
1.
Radio commercials are a form of advertising that is transmitted through which medium?
a)
Print
b)
Broadcast
c)
Web-based
d)
Out-of-home
2.
Text message advertising is most likely to be successful when the ads go through which action
a)
Sent anonymously
b)
Delivered to the cell phone numbers of people interested in the product
c)
Randomly sent to a mass audience of cell phone subscribers
d)
Made lengthy in nature
3.
What are the primary elements that businesses should include in a comprehensive promotional plan?
a)
Media placement specifications and cost
b)
Sales quotas and advertisement run dates
c)
Product pricing policies and industry analysis
d)
Competitor analysis and international advertising objectives
4.
Businesses often select marketing metrics that will help them compare current market share with which factor?
a)
Market potential
b)
Inventory turnover
c)
Brand recognition
d)
Transaction size
5.
One reason why businesses select marketing metrics is to use them as which function?
a)
Measurement tool
b)
Operating strategy
c)
Promotional activity
d)
Selling procedure
6.
Which is one of the main goals of promotion in marketing?
a)
To select media
b)
To develop a message
c)
To create desire
d)
To monitor feedback
7.
Which are internal factors that affect the way a business uses promotional tools?
a)
Demand and product
b)
Price and competition
c)
Product and price
d)
Place and demand
8.
An ad for Kleenex tissue in Ladies?’ Home Journal is an example of what type of advertising?
a)
Trade
b)
Institutional
c)
Product
d)
Business
9.
By setting marketing objectives, businesses are specifying which information?
a)
What they want to achieve
b)
How they intend to make a profit.
c)
What price they plan to charge.
d)
How they intend to advertise
10.
What is the final cost to the business of a product priced at $40 with a 20% trade discount?
a)
$35
b)
$32
11.
What is the purpose of sales-oriented, pricing objectives
a)
To increase the total amount of sales income
b)
To guarantee the survival of the business
12.
Calculate the break-even point in dollars if a business has total fixed costs of $875,000; the unit selling price is $1,200; and the variable cost per unit is $700.
a)
$1,500,000
b)
$2,100,000
c)
$1,200,000
13.
Clyde rented an ice cream truck in order to earn money for college. His truck rental is $200 per week and has a yearly license fee of $52. It costs him $200 for 500 ice cream bars that he plans to sell for $1.10 each. How many ice cream bars must Clyde sell each week in order to reach the break-even point?
a)
360
b)
252
c)
288
14.
Businesses receive positive feedback about the effectiveness of their promotional messages when consumers perform which action?
a)
Ask specific questions
b)
Visit their competitors
c)
Buy their products
15.
The use of samples or cents-off coupons on grocery items is an example of which type of promotion?
a)
Publicity
b)
Advertising
c)
Sales
16.
An important objective of promotion is to perform which action?
a)
Inform buyers
b)
Delude buyers
c)
Intimidate buyers
17.
When do businesses usually set its marketing budget?
a)
After identifying standards
b)
After determining objectives
c)
Before segmenting customers
d)
Before analyzing markets
18.
The MSV Company developed a sales forecast by considering the opinions of industry experts. This is an example of which sales forecasting method?
a)
Industrial
b)
Qualitative
19.
What does a business need to consider when developing a marketing budget?
a)
Costs of performing marketing activities
b)
Forecasts of future sales figures
c)
Expense associated with offering credit
20.
During which stage of the product life cycle is a business likely to try to stabilize the price of the product?
a)
Introductory
b)
Expansion
c)
Maturity
21.
In which situation should a business lower its sales forecast for the coming year?
a)
Inflation rate is expected to rise 2%.
b)
Major competitor will leave the market
c)
Prices of raw materials will remain steady.
22.
What is the break-even point in units for a business whose total fixed costs are $325,000, selling price per unit is $18, and variable cost per unit is $15.50?
a)
$120,250
b)
$150,500
c)
$130,000
23.
The price function often influences the place function by determining which information?
a)
Where the product is sold.
b)
How the product is advertised.
24.
Public-service promotions often are used to inform consumers about which issues?
a)
Noncontroversial
b)
Controversial
25.
What do businesses often take into consideration when forecasting sales for marketing plans?
a)
Quotas for salespeople
b)
The market share of competitors
c)
The profit goals of a company
26.
Newspapers and magazines are categorized as which medium?
a)
Publications
b)
Direct
27.
Which is the primary reason for establishing a marketing budget that helps a business?
a)
To control spending
b)
To monitor fixed assets
28.
One reason why the target market of a business affects its pricing is because consumers in each target market usually perform which action?
a)
Judge the value of products differently
b)
Monitor the industry standard
c)
Expect a large product mix
29.
Businesses should set their selling prices at a level that will cause which situation?
a)
Be lower than that of the competitors
b)
Cover expected markdowns and expenses
c)
Be equal to the cost of the goods
30.
When a business allocates a certain amount of money in relation to the amount of goods and services that it sold the previous year, it is setting its marketing budget by which information?
a)
The percentage of sales method
b)
The review of industry standards
c)
The consideration of activities of competitors
31.
The local newspaper ran a story about Amy’s Shoe Store and its donation of 100 pairs of shoes to those in need. This act by the local newspaper is an example of which type of promotion?
a)
Sales promotion
b)
Advertising
c)
Publicity
32.
Which is an appropriate selling price for a product with total costs of $10.00 and a gross margin of $5.00?
a)
$7.50
b)
$15
33.
Which broadcast media is growing at the fastest rate in terms of its use as an advertising medium?
a)
Direct mail
b)
Transit
c)
Television
34.
A company produces an advertisement that informs consumers about its commitment to recycling materials and controlling pollution. This is an example of which type of promotion?
a)
Institutional promotion
b)
Product promotion
c)
Cooperative advertising
35.
Why would a manager of a local business keep track of the prices that similar businesses in the area are charging?
a)
To remain competitive
b)
To offer new services
36.
Which is an example of an effective marketing objective that a business might set?
a)
Increase profit by 6% next year
b)
Hire additional salespeople
c)
Identify new local vendors
37.
What is the selling price from the following information: cost, $8.45; operation expenses, $.50; and profit, $.80?
a)
$9.75
b)
$8.95
38.
When identifying which promotional approaches to use, a business should perform which action?
a)
Try to use every approach possible
b)
Copy what the competition is doing
c)
Choose those that match its image
39.
A business bought 144 items at $6.50 each and 120 items at $3.75 each. With a 10% off-season discount, what is the total cost to the business?
a)
$1,247
b)
$1,119
40.
A business determines the final cost of a product purchased for resale by subtracting allowed discounts and transportation charges from which component?
a)
Net profit
b)
List price
c)
Operation expenses
41.
Why do some new companies set their selling prices as low as they can?
a)
To get market share as fast as possible
b)
To earn a high return on investment
c)
To eliminate all possible competition
42.
Why is it important for businesses to include specific time frames when setting marketing goals and objectives?
a)
Allows the business to identify the market
b)
Keeps the business focused on the goal
43.
When a business places a new product on the market, each element of the promotional mix should be designed to accomplish which action?
a)
Inform consumers about the existence of the product
b)
Remind customers about the benefits of the product
c)
Reinforce the image of the company
44.
The marketing objectives that a business develops for its marketing plan should lead to which situation?
a)
An increase in sales
b)
A decrease in costs
45.
Repeated exposure to the largest, most diverse population of people is a benefit of which advertising?
a)
Newspaper
b)
Out-of-home
c)
Radio
46.
Which is an example of a measurable objective that a business might include in its promotional plan?
a)
Tell people about the business
b)
Design a new flyer
c)
Distribute 500 flyers by March 1
47.
When beginning to develop a promotional plan, it is important for a business to perform which action?
a)
Compile a list of activities
b)
Define its promotional goals
48.
Which individual would a business be most likely ask for a prediction of sales for next year?
a)
Experienced salesperson
b)
Inventory specialist
49.
When the costs of raw materials increase considerably, a business is likely to perform which action?
a)
Increase the selling price of a product
b)
Implement a long-term markup pricing policy
c)
Maintain similar profit margins as its competitors
50.
Which primary factors do business owners consider when determining the ceiling prices of their products?
a)
Service fees and competition
b)
Consumer perceptions and demand
51.
Which is an example of a business using a flexible pricing policy?
a)
Establishing prices that are competitive
b)
Lowering prices during bad economic times
c)
Setting prices as low as possible
52.
Which is a use of product promotion?
a)
Informing consumers about product features
b)
Recruiting new employees
53.
The marketing metrics that businesses select should relate directly to which part of the marketing plan?
a)
Demographics
b)
Organization
c)
Objectives
d)
Environment
54.
Forecasting sales for market plans is important because the forecast is used as which component?
a)
Type of research
b)
Standard of measurement
55.
Which is an example of an external change that could affect sales forecast of a business?
a)
A new sales rep has been hired to develop the territory of the business in Texas.
b)
The population of a town increases when a new hospital opens in the community.
c)
The company plans to modify its approach to mailing catalogs to customers.
d)
A company plans to raise prices on its products.
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