THEUNIVERSITYOF

NEWSOUTHWALES

AustralianSchoolofBusiness
SchoolofMarketing

MARK1012:MarketingFundamentals
SampleFormat:FinalExaminationSession1,2014

Instructions:(Pleasereadtheseinstructionscarefully)
ThisexaminationpaperconsistsofTWOsections:SectionA(65ConceptMatchingquestions)
andSectionB(40Multiplechoicequestions).IthasFOURTEEN(14)printedpagesexcludingthis
page.
Printingisdoublesided,checkeachpagecarefully.
Youhavetwo[2]hourstocompletethisexaminationplus10minutesreadingtime.
Readallthequestionsinbothsectionscarefully.
AnswerALLquestionsontheGeneralisedAnswerSheetprovidedasinstructed.
Questionsmustbeansweredinink.
PrintyourfullnameandStudentnumber{z}onthefirstpageofeachbookandsign
UseofUNSWapprovedcalculatorsispermitted.Noothermaterialistobetakenintothe
examinationroom.
Thispaperaccountsfor35%ofyourcoursegrade(however,itismarkedoutof120).

YoumayNOTretainthispaper.
Your student ID ______________________________
Your Name __________________________________
Your Signature _______________________________
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SECTION A: CONCEPT MATCHING QUESTIONS (1 mark x 65 = 65 marks)

In Column 2 of each of the SIXTEEN boxes below, you will find 35 definitions/actions/
explanations/examples of some marketing concepts, phenomenon or terms (except for Box
9 where there are only 3). Match each of these with the appropriate marketing concepts or
terms presented in Column 3 (from the 3 5 responses provided). Indicate only one answer
per question (i.e., mark only one oval in a row) on your Generalised Answer Sheet.

For each question, choose one answer from Column 3 and indicate your selection (A, B, C, D
or E) on the Generalised Answer Sheet. For example, for question 1 The only part of the
must be matched to a concept provided in Column 3) and that choice must be recorded
on your Generalised Answer Sheet. If your concept selection is A, then you should mark the
oval as your answer for question 1.

BOX1
O
L
U
M
N

1
[
C

1
]

Q
u
e
s
t
i
o
n

N
o
.

COLUMN 2 [C 2]
Definition (Basic marketing concepts)
COLUMN 3 [C 3]
Concept/Term
1 The only part of the business that generates revenue is
A. set of benefits or
values.
B. Exchange
C. transaction.
D. Marketing
E. Possession utility

2 A trade between two parties involving at least two things of
value, agreedupon conditions, a time of agreement and a
place of agreement is known as
3 The act of obtaining a desired object from someone offering
something in return is known as
4 Through its value proposition a company promises to deliver
this to consumers to satisfy their needs.

BOX 2
C 1 C 2: BCG matrix related Concept/Term C 3: Phenomenon
5 In a BCG Matrix Stars are SBUs with A. lowgrowth, highshare SBUs
6 In a BCG Matrix Dogs refer to B. highgrowth, highshare
7 In a BCG Matrix Cash Cows are the C. lowgrowth, lowshare SBUs
8 In a BCG Matrix Question Marks are the D. lowshare, highgrowth SBUs

BOX 3
C 1 C 2: Concept/Term
( Relates to market expansion grid)
C 3: Marketing Action
9 In the context of a marketing expansion
grid, market penetration means
A. offering modified or new products to
current markets
10 In the context of a marketing expansion
grid, market development means
B. Emphasising both new products and
new markets to achieve growth
11 In the context of a marketing expansion
grid, product development means
C. seeking to increase sales of existing
products to existing markets.
12 In the context of a marketing expansion
grid, diversification refers to
D. identifying and developing new
markets for current products.

A
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BOX 4
C 1 C 2: Explanation (Marketing Environment) C 3: Concept/Term
13 The study of human populations in terms of size, density,
location, age, sex, race, occupation etc. is called A. publics.
B. political
environment.
C. demographics.
D. legal
environment.
E. marketing service
agencies.
14 Laws, government agencies and pressure groups that influence
and limit organisations and individuals in a given society
constitute
15 Groups with interest in, or impact on, a companys ability to
achieve its objectives is known as
16 Marketing research companies, ad agencies, media and other
service providers that help the company target and promote its
products to the right markets are called

BOX 5
C 1 C 2: Definition (Information gathering) C 3: Concept/Term
17 Sam collects and analyses publicly available information about
consumers, competitors and marketing environment. Sam is
involved in
A. Quantitative
research
B. Marketing
research
C. Marketing
information
system
D. Marketing
intelligence
E. Qualitative
research
18 Tower Inc. has systematically designed a study to collect and
analyse data relevant to a specific marketing problem facing
them and prepare a report. They are conducting a
19 The task of assessing information needs, developing the needed
information, and helping decision makers to use the information
to generate and validate actionable customer and market
insights is known as
20 Sun Dial Inc. collects data through focus groups and indepth
onetoone interviews. Sun Dial is involved in

BOX 6
C 1 C 2: Definition (Consumer behaviour) C 3: Concept/Term
21 The generation of children born between 1946 and 1964 A. Generation X
B. Senior citizens
C. the Millennials
D. Baby boomers
E. Generation Y
22 The generation of children born between 1965 and 1976
23 The generation of children born between 1977 and 2000
24 The Generation Y people are also called

BOX 7
C 1 C 2: Explanation (Consumer behaviour) C 3: Concept/Term
25 A need that is sufficiently pressing to direct the person to seek
satisfaction of the need refers to
A. attitude
B. perception
C. Motive or drive
D. Learning
E. belief
26 The process by which people select, organise and interpret
information about something is known as
27 Changes in an individuals behaviour arising from experience is
called
28 descriptive thought or conviction that a person holds
something, and involves holding an opinion is called



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BOX 8
C 1 C 2: Concepts
(Market targeting strategies)
C 3: Explanation
29 In an undifferentiated market coverage
strategy a firm decides to
A. suit the tastes of specific individuals
and local customer segments
B. go after the whole market with one
market offer strategy
C. go after a large share of one or a few
submarkets
D. target several market segments, and
designs separate offers for each.
E. macromarketing
30 In a differentiated market coverage
strategy, a firm would
31 A company with limited resources would
adopt concentrated strategy and
32 In micromarketing a company tailors its
products and marketing efforts to

BOX 9

BOX 10
C 1 C 2: Explanation (New Product Adoption) C 3: Concept
36 The consumer becomes aware of the new product, but lacks
information about it. is called
A. Evaluation
B. Interest
C. Adoption
D. Trial
E. Awareness
37 The consumer seeks information about the new product is
known as
38 The consumer considers whether trying the new product
makes sense refers to
39 The consumer tries the new product on a small scale to
improve their estimate of its value is called
40 The consumer decides to make full and regular use of the new
product refers to

BOX 11
C 1 C 2: Explanation (Product mix) C 3: Terms
41 This refers to number of different product lines
marketed by a single firm.
A. Product line depth
B. Product line width
C. Product line
consistency
D. Product line length.
E. Product assortment
42 This refers to number of items sold by a firm within each
product line.
43 This refers to number of shapes and model designation
of the product.
44 This refers to how closely related the various product
lines are in end use


C 1 C 2: Term C 3: Explanation (Product classification)
33 A product
A. anything that can be offered to a market for use or
consumption to satisfy a want or need
B. purchasing a refrigerator plus delivery, installation,
financing and warranty
C. a form of intangible product that satisfy some need or
want but do not result in the ownership of anything.
34 Services
35
An augmented product
example
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BOX 12
C 1 C 2: Explanation/Definition (Pricing) C 3: Concept
45 By setting low prices to gain dominant market share and
generate profit by selling larger volume Alpha company
pursues this pricing objective.
A. Current Profit
Maximisation
B. Market share
leadership
C. Product quality
leadership
D. Survival objective
46 By emphasising short term results over longrun results Beta
company pursues this pricing objective
47 Pricing objective aimed at avoid going out of business in bad
times in hopes of making profits in the future is called
48 Charging high prices, often in a niche market, to highlight
quality of the offering refers to this pricing objective.

BOX 13
C 1 C 2: Action (Product pricing) C 3:Concept/Term
49 Offering just the right combination of quality and good
service that customers want at a fair price
A. Segmented pricing
B. Costplus pricing
C. Special event pricing
D. Good value pricing
E. Targetreturn pricing
50 Adding a standard markup to the cost of the product
51 Setting the price to make the desired profit
52 Pricing differently in certain seasons to draw more
customers.

BOX 14
C 1 C 2: Actions (Distribution and channels) C 3: Concept/Term
53 A layer of intermediaries who perform some work in
bringing the product and its ownership closer to the final
buyer is referred to as A. Retailing
B. Marketing logistics
network
C. Channel levels
D. Wholesaling
E. Franchising
54 All activities involved in selling goods or services directly to
final consumers for their personal, nonbusiness use is called
55 Selling goods and services to those buying for resale or
business use rather than selling to individual consumers
refers to
56 A system of efficiently and effectively making and getting
products to endusers defines

BOX 15
C 1 C 2: Explanation (Distribution and channels) C 3: Concept/Term
57 Minimizing the total cost of logistics rather than cost of each
activity
A. Contactual efficiency
B. Horizontal conflict
C. Total cost Analysis
D. Matching
E. Vertical conflict
58 Shaping and fitting the offer to the buyers needs by
manufacturing, grading, assembling, and packaging is called
59 Reduction and optimization of number of exchange contacts
needed to complete transactions refers to
60 Conflict between firms at the same level of the channel is
known as
61
Conflicts or problems between firms at different levels in the
channel are referred to as


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BOX 16
C 1 C 2: Explanation (about promotion) C 3: Concept/Term
62 It is often defined as the stepchild of marketing
A. Sales promotion
B. Personal selling
C. Direct marketing
D. Public relations
63 This consists of shortterm incentives to encourage the
purchase or sale of a product or service
64 This is the interpersonal arm of the promotion mix
65 This is an interactive system of marketing which uses
one or more advertising media to effect a measurable
response and/or transaction at any location





SECTIONB:(40Multiplechoicequestions)*(55marks)
(Applicationofmarketingconcepts,skillsandtheorieslearntinthecourse)

Continue to record your answers to the following multiple choice questions from row 66 of
the Generalised Answer Sheet. To indicate your answer, mark only one oval in pencil OR
black ink.

*Each of questions 66, 68, 69, 70, 73, 74, 77, 82, 88, 90, 91, 92, 94, 96, and 101 (15
questions) is worth 2 marks; each of the remaining 25 questions is worth 1 mark. There is
no negative marking.

Some questions have five (5) alternative answers, while a few have four (4). Please supply
the most appropriate answer.


66. A market _________ delivers a _______ when it satisfies a __________.
.
A. segmentation; target; condition
B. offering; benefit, need or want
C. positioning; promise, need or want
D. exchange; service; utility
E. transaction; satisfaction; demand

67. National Heart Foundation of Australia launched a campaign asking for volunteers to
raise funds to help heart patients. Motivated by these ads, School girl Esha signed as a
volunteer and raised $69.00. She felt satisfied that she had performed a good deed. Was
this a marketing exchange?

A. No, because the Heart foundation is a nonprofit organization.
B. No, because the Heart foundation did not pay her any money.
C. Yes, because the $69 raised by Esha was exchanged for a feeling of satisfaction.
D. No, because the Heart foundation is not a commercial organisation.
E. No, because the Red Cross did not provide Esha with a product.

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68. __________ refer(s) to the tangible and __________ benefits a customer receives from buying
a product or service for ___________.


A. Value; intangible; consumption
B. Exchange; intangible, money
C. Needs; use; consumption
D. Augmentation; intangible, status
E. Utility; monetary; possession

69. A major step in marketing plan is setting objectives or goals. Managers should ensure
that their objectives are SMART that is:

A. Shortterm, Measurable, Actionoriented, Reasonable and Tactical
B. Specific, Modest, Actionoriented, Realistic and Tested
C. Synergistic, Modest, Achievable, Realistic and Timebound
D. Specific, Measurable, Achievable, Reasonable and Timebound
E. Strong, Measurable, Achievable, Resultoriented and Timebound

70. Recent census figures reveal that an increasing number of Australians and New Zealand
people are living alone, the average family size has shrunk, marriage rates have declined
and per capita incomes are increasing. These changes in the __________ within the
__________ environment present the company with a marketplace __________.

A. demographics; economic; opportunity
B. lifestyle; sociolegal; threat
C. demographics; sociocultural; opportunity
D. lifecycle; economic; threat
E. lifestyles; demographic; threat

71. Consider the macroenvironmental trends listed below. Which of these is (are) likely to
pose a threat or present an opportunity for a multinational corporation (MNC) that
manufactures desalination plants?

A. There is continuous escalation of war in many countries causing operational
problems for the MNC
B. A major supplier's work force has gone on strike.
C. Overuse of ground water in many countries has caused a shortage of drinking water
in many countries opening new markets for the company.
D. The MNC adopts hires a young action oriented CEO.
E. A and C above

72. A toy manufacturer plans to conduct an observational research to gather primary data
on their toys. Which of the following should they do?

A. Conduct a simple survey of the children who use their products.
B. Conduct a focus group comprising 10 mothers of the children who use their toys to
find out the desired information.
C. Conduct an experimental research involving the children who use their toys
D. Send a mail survey questionnaire to the childrens parents.
E. Appoint trained researchers to observe the children at play with their toys at
selected child care centres or crches.
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73. In purchasing a birthday gift for her mother Sonia wonders what her mother would like
as a gift. In this case, Sonias mothers role in the buying decision would be as:

A. motivator and influencer.
B. influencer and user.
C. decider and buyer.
D. influencer and decider.
E. initiator and influencer.

74. The first people to adopt a new product are called ___________ whereas the tradition
bound consumers are known as _____________.

A. innovators; laggards
B. innovators; late majority
C. early majority; laggards.
D. early majority; late majority.

75. Which of the following is an example of an organisational influence on a business buyer
for an Australian manufacturer of designer clothes?

A. The French fashion houses have declared olive green and red as the colours for this
season.
B. The company is investigating why a worker lost his leg in an onthejob accident.
C. New technology has devised a lowcost method of dying clothes that reduces their
fading by 30 percent.
D. The company has issued new purchasing policies on the selection of accessories
such as buttons, and belt buckles.
E. More consumers are ignoring the fashion designers and making their own fashion
decisions.

76. Those individuals and organisations that acquire goods for the purpose of selling or
renting them to others at a profit comprise the:

A. consumer market.
B. government market.
C. industrial market.
D. reseller market.
E. institutional market.

77. Western Timber Inc. makes wooden pallets for transporting and storing new appliances
such as stoves, freezers, and refrigerators. Which of the following statements is not true
about business market behaviour?

A. Decision making is undertaken by a buying unit.
B. Buyers are often geographically concentrated.
C. Decisions are always rational and in the best interests of the company.
D. Demand is derived.
E. Decisions can be irrational and affected by interpersonal factors.


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78. An example of a single product with multiple market segments is shown in _________
below.

A. Post and Kellogg's both make bran cereals with raisins.
B. Johnson's Baby Oil is advertised as a skin softener for babies and as a makeup
remover for women.
C. Quaker Oats sells both its hot cereals and cold cereals to people of all ages.
D. Reebok makes tennis shoes, running shoes, walking shoes, and Weeboks.
E. P & G sells its personal grooming products to both men and women.

79. Hallmark card stores sell birthday greeting cards ranging from $0.99 to $9.99. While the
inexpensive ones may not be as flashy as the expensive ones they are just as
sentimental. Hallmark Cards presents a good example of _______________.

A. mass customization.
B. Product assortment.
C. one product and multiple market segments.
D. Production orientation.
E. multiple products in multiple segments.

80. Around the world, for years, Ocean Spray cranberry jelly has been on thousands of
Christmas tables. Ocean Spray is working hard to implement other strategies beyond the
limited ________ segmentation strategy it used in the past.

A. user occasion
B. lifestyle
C. family life cycle
D. benefit sought
E. usage rate


81. In the beverage market, most private brands practice _______________________ since they
compete in the same target market.

A. Product class based positioning
B. distinction positioning
C. no positioning
D. differentiation positioning
E. headtohead positioning

82. The manufacturer of Mr. Clean believed the addition of Sparkling AppleScented Mr.
Clean to the Mr. Clean product line, would be viewed as _______________.

A. a discontinuous innovation.
B. a new from the company's perspective because it is a product line extension.
C. a highrisk product line addition because it is new to the market.
D. new by the Federal Trade Commission for the usual oneyear period.
E. not seen as a newproduct because it does not represent a different SKU.




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83. Why is successful newproduct introduction becoming increasingly more difficult?

A. Many international companies are not engaging in product innovation.
B. Newproduct development costs are so low that any company with a good idea can
create a new product.
C. Products become outdated at a much faster rate than ever before.
D. Government regulations require all products to wait at least two years before
introduction.
E. all of the above

84. Customers usually know a good deal about __________, are loyal to specific brands, and
spend little, if any, time comparing alternatives.

A. convenience products
B. homogeneous products
C. shopping products
D. specialty products
E. unsought goods

85. Marketers often use teaser advertisements to generate _______, providing just enough
information about a new product to make prospective consumers curious.

A. Awareness
B. interest
C. trial
D. confirmation
E. evaluation

86. Which of the following statements about product attribute is not true?

A. Product quality refers to the ability of a product to perform its functions.
B. Product features refers to technical characteristics of the offering.
C. Product design combines attention to style (appearance) with enhanced
performance.
D. All of the above are true.
E. None of the above statements is true.

87. A diet product with the brand name of QuikLoss is a desirable brand name because it
exhibits which of the following brand name characteristics?

A. The brand name suggests something about the product's benefit.
B. The brand name sounds like a lot of other similar weight loss products.
C. The brand name is static and suggests no action.
D. The brand name promises success.
E. Thebrandnameemphasisestheproduct'sfeatures.

88. Breakeven volume is equal to fixed cost divided by:
A. price + variable cost.
B. price variable cost.
C. price fixed cost.
D. price total cost.
E. price + fixed cost.
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Read the MINICASE in the box below and answer Questions 89, 90 and 91

MINICASE: Master Quilting is a small family owned business in a medium sized town that designs
and distributes quilting kits. The kits are priced at $120 each and there is no quantity discount.
The costs of the materials that go into each kit are $45. It costs $5 in labour to assemble a kit. The
company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity,
$600 for advertising in quilting magazines, and $4,500 for the monthly salary of its owner Cathy.


Space for computation

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Space for computation

89. Master Quiltings fixed cost and variable cost are ___________.
A. $1,800 and $45, respectively
B. $6,300 and $45, respectively
C. $6,300 and $50, respectively
D. $4,500 and $45, respectively
E. $1,800 and $70, respectively

90. Master Quiltings marginal revenue and total revenue for last month (when 150 units
were sold are ____________.
A. $70 and $3,500, respectively
B. $120 and $6,750, respectively
C. $75 and $7,500, respectively
D. $165 and $10,500, respectively
E. $120 and $18,000, respectively

91. How many quilting kits Master Quilting must sell (i) to breakeven and (ii) to make a
profit of $4,900 per month?
A. 60; 130
B. 90; 98
C. 140; 160
D. 90, 160
E. 90; 70

92. Since its inception in 1975, Monno Ceramics sold their products only from a limited
number of selected, authorized retailers. However, since mid 1990s they changed their
distribution strategy and made their products available at several wellknown
department and discount stores, including WalMart and KMart. In other words, Monno
initially employed __________ distribution strategy; later it switched to __________
distribution.

A. intensive; exclusive
B. exclusive; intensive
C. intensive; selective
D. selective; exclusive
E. exclusive; selective
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93. Before consumers see a movie, it is assigned a rating such as G or PG based on its
language and content. This rating system is most closely related to which facilitating
function activity performed by marketing intermediaries?

A. grading
B. sorting
C. risk taking
D. marketing
E. assorting

94. __________ is for many the most familiar and visible element of the promotion mix. It is
nonpersonal communication from an identified sponsor using mass media. __________ is
the element of the promotion mix that involves direct interaction between a company
representative and a customer.

a. Personal selling; public relations
b. Advertising; personal selling
c. Public relations; sales promotion
d. Sales promotion; personal selling
e. Interactive marketing; advertising

95. Cosmetics that do not need to be touched up during the day but are able to last from
morning until late at night are in the growth stage of the product life cycle. The
promotion mix for such products would __________.

A. include the use of many different types of buying incentives
B. show an increase in the use of sales promotions
C. show an increase in the use of advertising
D. try to create product awareness
E. all of the above

96. Marketer would make use of contests and coupons at the _______ step in the hierarchy of
effects; they will mail to users at the _________ step.

A. Knowledge; purchase
B. awareness; knowledge
C. desire; awareness
D. purchase; loyalty
E. loyalty; desire

97. _____________ is/are parts of effective marketing communications because they make
statements about the nature of the product and the image it intends to convey.

A. The package in which the product comes
B. The price of the product
C. The type of retail outlet where the product is available
D. A and B
E. A, B, and C



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98. Of the following statements about the percentageofsales method of budgeting, only
____________ is true.

A. This method implies that sales are an outcome of production.
B. It is the least used bottomup method for budgeting.
C. This method implies that sales cause promotional outlays.
D. Firms using this method are inclined to spend more on promotion when revenue
decreases.
E. It is the only topdown budgeting method used to determine promotional budgets.

99. When might a sales promotion lead to longterm adoption of a brand?

A. When the promotion is extremely enticing.
B. When the sales promotion is used as an extension of image advertising.
C. When demand is inelastic for the product.
D. When demand is elastic for the product.
E. When the sale promotion is supported by online marketing.

100. An ad in a professional journal targeted at dentists asked them to recommend Colgate
toothpaste to their patients. It offered toothpaste samples that dentists could buy at cost
to give to their patients to encourage patients to take better care of their teeth. The
manufacturer of Colgate toothpaste was using __________.

A. a push strategy
B. viral marketing
C. guerrilla marketing
D. public relations advertising
E. a pull strategy

101. To compare the relative costeffectiveness of different print media, media planners use
__________; however, to compare the relative costeffectiveness of different television
programs, they use ________.

A. average reach: cost per thousand
B. average frequency: cost per medium
C. gross rating points (GRPs):average frequency
D. cost per thousand (CPM): gross rating points
E. cost per medium (CPM): average reach


102. Alpha Dcor uses direct marketing because it __________

A. can help build a brand image for Alpha.
B. is able to create awareness for products.
C. is all about building a dialogue with the consumer.
D. can create positive consumer attitudes for Alpha products.
E. can achieve everything stated in A, B, C and D above.




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103. Databases are used _____________

A. as a tool to cut advertising costs.
B. to facilitate personal selling.
C. as an element of public relations.
D. to calculate the number of potential customers willing to purchase the companys
market offerings.

104. Which of the following statement is (are) true?

A. Sustainable marketing advocates totally abandoning luxury products.
B. Consumerism is a movement of people seeking to improve the rights and powers of
buyers; environmentalism is concerned with protecting and improving peoples
living environment.
C. Environmentalism refers to developing public relations programs for a companys
"green" image.
D. Salutary products have high appeal but may not benefit consumers in the long run;
for instance.
E. Deficient products have immediate appeal but no longrun benefits.

105. Which of the following statements is (are) true about legal compliance?

A. Competition law deals with prohibition of various forms of anticompetitive conduct.
B. Contract and consumer law refers to laws governing the sale of goods and services.
C. Product liability deals with quality control; Sales and after sales finance deals with
financing and negotiating purchases
D. Marketing communication relates to misinterpretation by consumers or customers.
E. All of the above are true.


THE END