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MKT 300 quiz 1

Terms in this set (35)

Some might say that companies such as the Body Shop have outperformed their peers by focusing on the world's social problems. What is this known as?
a) green marketing
b) philanthropy
c) cause marketing
d) creative ethics
a
Donny loves to hunt, write poetry, paint, and practise environmental conservation. Although this seems contradictory, Donny refuses to conform to a single traditional way of life. What kind of lifestyle description does Donny fit into?
a) aggregated lifestyle
b) component lifestyle
c) psychographic lifestyle
d) demographically defined lifestyle
b
The use of ethical decision making is affected by which of the following?
a) the influence of junior managers
b) the presence of cultural pollution
c) depends on the number of departments affected
d) depends on the magnitude of possible consequences
d
Marketers need a thorough understanding of the laws established by the federal government, provincial governments, and regulatory agencies.
True
False
true
What does the median total family income mean?
a) that a quarter of families earn less and the other quarter earn more
b) that a third of families earn less and the other third earn more
c) that half of all Canadian families earn less and the other half earn more
d) that Canadian families have a good income level
c
The dog population in Canada was just over five million in 2010, with 32.3% of Canadian homes owning a dog, down slightly from 35.1% in 2009. Over the next few years, dog food sales are projected to grow in constant value at a CAGR of 3%, to total CAD $1.1 billion in 2015. Furthermore 80% of all pet food sold in Canada is dry the rest is wet or fresh food. 60% of all Wet or Fresh dog food purchased is premium pet food. 40% of all dry dog food sold is premium. There is a premium price charged of 30% more on Premium pet food. Based on this information what is the $ value of the segment for premium dry Dog food in Canada in 2015?

$457.6 Million

$105.6 Million

$52.8 Million

$220 Million

Not enough information is provided or none of these are correct.
$457.6 million

1,100,000,000.8.4*1.3=$457,600,000
A local restaurant sells a price fixed meal for $32.95, with a cost of goods sold of $17.34. What is the restaurant's margin % for each meal sold?


47.4%

90%

52.6%

37.9%

None of these are correct
47.4%

Answer:
First we have to calculate the unit margin:
Unit Margin = Selling Price - Cost of Goods Sold
= $32.95 - $17.34
= $15.61
Now we can calculate the margin:
Margin (%) = Unit Margin / Sales * 100
= $15.61 / $32.95 * 100
= 47.4%
Which of the following supply chains would yield the highest final selling price?


A 25% markup, followed by a 20% margin, followed by a 30% margin


A 25% margin, followed by a 20% markup, followed by a 30% markup


A 25% markup, followed by a 20% markup, followed by a 30% margin


A 25% margin, followed by a 20% margin, followed by a 30% markup


There is not enough information to calculate.
A 25% markup, followed by a 20% margin, followed by a 30% margin

To figure out the answer, students should just assume some initial cost (e.g., $1):
a) Selling Price = Markup (%) * Cos
= 1.25 * 1 = $1.25
Then, given we know the margin (20% or .2), we can solve for the selling price (SP):
Margin % = Unit Margin / SP = (SP - Cost) / SP
.2 = (SP - 1.25) / SP
.2 * SP = (SP - 1.25)
1.25 = SP - .2SP = .8SP
1.25 / .8 = SP = $1.56
Then, solve for the next margin (simplified: always divide cost by 1 minus margin)
$1.56 / 0.7 (30% margin) = $2.23

b) $1 / 0.75 = $1.33
Then, solve for the markup: 1.2 * $1.33 = 1.60
Then solve for the next markup: 1.3 * $1.60 = $2.08

c) $1 * 1.25 = $1.25
Then, solve for the next markup: $1.25 * 1.2 = $1.50
Then, solve for the last margin: $1.50 / 0.7 = $2.14

d) $1 / 0.75 = $1.33
Then, solve for the next margin: $1.33 / 0.8 = $1.66
Then add the markup: $1.66 * 1.3 = $2.16
A bike shop uses a markup rate of 35%. If the retailer pays $125 each for a certain brand of bicycle, how much does it sell for?


$167.75

$160.00

$192.31

$168.75

None of these are correct
$168.75

The markup is 35% of the $125 cost, so the markup is:
(1.35) * ($125) = $168.75
Then the selling price, being the cost plus markup, is $168.75
P&G sells a new improved laundry detergent. It costs $2.79 to Manufacture. P&G Mark-Ups are 25%. It will then be sold to a wholesaler who earns a 10% Mark-Up and then the retailer who earns a 25% Mark-Up. Calculate the final Retail Price?

$2.79

$3.49

$4.80

$3.84

None of these are correct
$4.80
A Thai Restaurant sells lunch for $15. The food cost used in producing each set lunch is $5. Additional variable costs like packaging are $3 per lunch. What is the total contribution and contribution margin percent? They sell 150 lunches

$1050 and 46.6%

$1050 and 87.5%

$2250 and 46.6%

$1200 and 46.6%
$1050 and 46.6%
You are running a company that produces backpacks. Currently, there are several competitors in the field, but you see an untapped niche for university students who commute one or more hours into school, and need space for their books and laptops, but also a change of clothes. There are approximately 3,568,000 people living in Alberta. Based on your market research, you believe that approximately 0.7% of them fit the above criteria. You estimate that you might be able to initially capture 22% of this market (with 43% buying your competitors' products, and 35% not buying a backpack). Calculate the total size of the market segment who will purchase a backpack, and the size of the segment that you believe you can capture.


16,234 & 5,495

16,234 & 24,976

24,976 & 5,495

24,976 & 16,234

None of these are correct.
24,976 & 5,495

Total potential market: 3,568,000 * 0.07 = 24,976
size of the market segment who will purchase your backpack: 24,976 * 0.22 = 5,495
Calculate the contribution margin in $ and as a % Using the following information: Total Revenue $50,000 Variable costs $40 and $5. Units sold 1,000

$5 and 11.1%

$5 and 10%

$10 and 10%

$5 and 25%

None of these are correct
$5 and 10%
How do personnel in sales-oriented firms differ from personnel in market-oriented firms?
a) Personnel in sales-oriented firms tend to be inward looking.
b) Personnel in sales-oriented firms focus on making what the market wants.
c) Personnel in sales-oriented firms enhance individuals' and society's long-term best interests.
d) Personnel in sales-oriented firms determine the needs of both the final buyer and intermediaries.
a
How would a firm benefit from production orientation?
a)
competition is weak and demand exceeds supply
b)
the market demand falls short of the firm's supply
c)
the product it produces is not something that customers want
d)
it wants to preserve society's long-term best interests
a
What should a retail casket outlet do if it wishes to offer customer value?
a)
use a production orientation
b)
use a sales orientation
c)
offer free services to go along with the casket
d)
provide customers with only a few casket choices
c

Rationale:
A business interested in offering customer value should give customers more than they expect—and most would certainly expect delivery and some kind of credit plan. This business should also give buyers the facts. No business likes competition.
When a company replaces at its own expense any dissatisfied customer's purchases. What type of strategy is the company utilizing?
a)
management empowerment
b)
management-customer synergy
c)
customer satisfaction
d)
transactional marketing
c

Rationale:
When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, customer satisfaction is created.
Which of the following best describes marketing?
a)
It is more of a philosophy rather than an organization function.
b)
It is focused on just selling goods, services, and/or ideas.
c)
It rewards the seller and not the buyer of a transaction.
d)
It focuses on delivering value and benefits to customers.
d
Designer jeans are sold at the retailer for $425.00. The Manufacturer sells them for $97.00 to the importer. It costs the manufacturer $55.00 to produce the jeans. The Importer sells the dress for $199.00 to the Wholesaler who then sells them for $250.00 to the Retailer. Calculate the Margin $ and Margin % for retailer in the distribution channel?

$42 and 76.36%

$102 and 105.15%

$175 and 25.63%

$175 and 70%

$175 and 41%
$175 and 41%
The dog population in Canada was just over five million in 2014, with 32.0% of Canadian homes owning a dog, down slightly from 32.3% in 2013. Over the next few years, dog food sales are projected to grow in constant value at a CAGR of 3%, to total CAD $1.1 billion in 2015. Furthermore 80% of all pet food sold in Canada is dry the rest is wet or fresh food. 60% of all wet/fresh dog food purchased is premium pet food and 30% of all dry food purchased is premium. There is a premium price charged of 30% more on Premium pet food. Based on this information estimate how many dogs were fed Premium wet/fresh dog food in Canada in 2014?

600,000 dogs

800,000 dogs

400,000 dogs

1,200,000 dogs

Not enough information is provided or none of these are correct.
600,00 dogs

5,000,000.2.6=600,000
P&G want to sell an new air Freshener. It costs $1.50 to Manufacture. P&G Mark-Ups are 25%. It will then be sold to a wholesaler who earns a 10% Mark-Up and then to the retailer who earns a 25% Mark-Up. Calculate the final Retail Price?

$1.50

$1.88

$2.50

$2.58

None of these are correct
$2.58
Sudz Beer buys the necessary ingredients to brew and bottle one batch of beer for a total of $24,300. Each batch yields 75,960 bottles of beer. The cost per bottle is $0.32. They sell their beer to a distributor with a 35% markup, and then the distributor sells it to the retailer for a 41% markup. Because the retailer has a virtual monopoly on consumer sales, they get away with selling the beer at a 62% margin. What is the retail price of a case (24 bottles) of Sudz Beer?



$28.64

$38.47

$1.61

$31.82

None of these are correct
$38.47

Sudz Beer Per unit sales price = $0.32 * 1.35 = $0.432
Sudz Beer Unit margin = $0.11 ($0.432 - $0.32)
Distributor Per unit selling price = $0.432 * 1.41 = $0.60912
Retailer: Given we know the margin, we can solve for the selling price (SP):
SP=COGS/(1-Margin %)
.60912/.38
=1.6029
A case of beer has 24 bottles, so the case retails for $1.6029 * 24 = $38.47
A pair a designer jeans is sold by the retailer for $225.00. The Manufacturer sells them for $27.00 to the importer. It costs the manufacturer $8.00 to produce the jeans. The Importer sells the jeans for $50.00 to the Wholesaler who then sells them for $100.00 to the Retailer. Calculate the Margin $ and Margin % for the manufacturer in the distribution channel?

$19 and 237.5%

$23 and 85.19%

$50 and 100%

$155 and 155%

$19 and 70.37%
$19 and 70.37%
The dog population in Canada was just over five million in 2014, with 32.0% of Canadian homes owning a dog, down slightly from 32.3% in 2013. Over the next few years, dog food sales are projected to grow in constant value at a CAGR of 3%, to total CAD $1.1 billion in 2015. Furthermore 80% of all pet food sold in Canada is dry the rest is wet or fresh food. 60% of all wet/fresh dog food purchased is premium pet food and 30% of all dry food purchased is premium. There is a premium price charged of 30% more on Premium pet food. Based on this information estimate how many dogs were fed Premium dry dog food in Canada in 2014?

1,200,000 dogs

5,600,000 dogs

400,000 dogs

800,000 dogs

Not enough information is provided or none of these are correct.
1,200,000 dogs

5,000,000.8.3=1,200,000
If you are the final retailer, which of the following supply chains would result in the lowest retail price?


A 50% markup, followed by a 10% margin, followed by a 15% markup


A 50% margin, followed by a 30% markup


A 75% markup, followed by a 20% markup


A 25% margin, followed by a 15% margin, followed by a 30% markup


There is not enough information to answer this question
A 50% markup, followed by a 10% margin, followed by a 15% markup

To figure out the answer, students should just assume some initial cost (e.g., $1):
a) $1 * 1.5 = $1.50
Then, solve for the margin: $1.50 / 0.9 = $1.67
Then, solve for the margin: $1.50 / 0.85 = $1.96
b) $1 / 0.5 = $2
Then, solve for the markup: 1.3 * $2 = $2.60
c) $1 * 1.75 = $1.75
Then, solve for the next markup: $1.75 * 1.2 = $2.10
d) $1 / 0.75 = $1.33
Then, solve for the next margin: $1.33 / 0.85 = $1.56
Then, solve for the next markup: $1.56 * 1.3 = $2.03
Dexter an artist, draws caricatures on the waterfront pier. It costs him approximately $5 in materials for each caricature he makes. He sells each caricature for $20. Calculate the contribution margin per unit and contribution margin percent. He Sells 25 drawings.

$375 and 75%

$15 and 75%

$375 and 10%

$375 and 100%

None of these are correct
$15 and 75%
When writing codes of ethics, businesses must ensure their codes deal with every possible situation.
True
False
false

A component lifestyle pieces together products and services that fit a variety of interests and needs, and does not conform to a certain stereotype.
Which of the following is the most accurate description of the external environment?
a)
factors that can be controlled by the business
b)
factors that cannot be influenced by marketing managers
c)
factors that only change very slowly over time
d)
factors that must be continually monitored by marketing managers
d
A furniture retailer that specializes in selling entire rooms of furniture has hired you to identify 25 geographic target markets that can be described as multicultural societies. What types of locations should you offer this firm?
a)
cities that have historically had low immigration rates
b)
geographic regions that are growing with new immigrants
c)
regions that are dominated by one ethnic group and that have multiple smaller ethnic groups
d)
locations in which all major ethnic groups in the area are equally represented
d

Multicultural societies are not defined by geography, history, or products produced, but by the racial and ethnic composition of the population.
Rising incomes don't necessarily mean a higher standard of living. What are increased standards of living are a function of?
a)
depression
b)
recession
c)
inflation
d)
purchasing power
d
Jamie owns a small moving company. She has decided to take a few night school business courses because her company is growing quickly and there are many things she does not understand. Should Jamie enrol in a marketing course?
a)
Yes, because marketing is synonymous with selling, and Jamie will want to learn sales techniques to continue the growth of the company.
b)
Yes, because the concept of marketing will help Jamie to better satisfy her customers.
c)
No, because marketing should be done by experts rather than someone who has taken one course.
d)
Yes, because marketing helps businesses sell products that people wouldn't have thought to buy without being marketed to.
b

The marketing concept stresses the commitment to satisfying customer needs and wants with an entire range of marketing tools, not just selling or advertising.
Company XYZ is building marketing activities to keep a consistent message and look. Which of the following strategies would be used in this situation?
a)
product
b)
price
c)
place
d)
promotion
d
Tata Motors has improved the productivity of its plant. For the new financial year, the company projects a production increase of 30 percent. It has instructed its sales force to aggressively distribute and promote its trucks. The company believes the market will absorb more products if the sales force is aggressive. What sort of orientation does Tata have?
a)
market
b)
production
c)
sales
d)
customer
c

A sales orientation is based on the belief that people will buy more goods and services if aggressive sales techniques are used.
Indonesian logging companies harvest rainforests for wood and assume that a market exists for their products. Which type of orientation does the Indonesian logging company have?
a)
exchange
b)
environmental
c)
production
d)
sales
c

The logging companies do not focus on the needs and desires of the marketplace.
While most marketing organizations rely on promotions to succeed, sales-oriented organizations make the most effective use of their entire marketing mix.
True
False
fasle

Sales-oriented firms usually rely more heavily on sales activities alone than do market-oriented firms.
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