LAURENTIAN UNIVERSITY

FACULTY OF MANAGEMENT

MARKETING MANAGEMENT II [MKTG 2011]

PRACTICE EXAMINATION

Time: 3 Hours

The purpose of the practice examination is to provide an opportunity for review and to provide some indication
of the form, rather than the content, of the course examination. Therefore, the difficulty level, the composition
and the number of questions may differ from the actual final examination. It is recommended that you try to
simulate as closely as possible a real examination environment to fully benefit from the experience.

Part A – Multiple choice

To practice your multiple choice questions, students should complete the Self-Quiz and Study on your
textbook’s CONNECT website for the assigned chapters in this course.

Part B – Short answer

Question 1

The Ritzy Canine Carriage House looks like several other Manhattan boutique hotels. The lobby features a
crystal chandelier, brocade-patterned wallpaper, gold-framed mirrors, and antique chairs. Room service and
salon service are available as well as exercise facilities. There is also a masseuse on staff. Dogs are the only
guests, and it is hoped that they appreciate the video and video player in the $175-a-night Windsor suite.
Without extras, a one-day visit will cost $33 to $38, depending on the size of the dog. The Ritzy Canine is a
high-end doggy care centre. In a world where people work long hours and take longer to settle down, they do
not mind spending money on their dogs.

a. Develop retailing strategy for The Ritzy Canine Carriage House, by selecting a position in the retail
positioning matrix and specifying the details of the retailing mix.

b. How Ritzy Canine can use the strategic growth opportunity matrix? Give at least one example for
each alternative.

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E2037 Practice exam
Question 2

Assume you own a footwear factory in Sudbury. Based on the break-even chart and demand curve below
answer the questions:
a) What is your selling price?
b) What are your Average Total Cost, Total Revenue, and Profit at the current selling price?
b) Is the demand elastic or inelastic for your product? Why?
c) Which of the four price points ($25, $50, $100, or $200) would create the most profit?

Revenue

1,200
Cost

Dollar (in
800
thousands)

400

20 40 60 90
Quantity (in thousands)

$200

Price
$100

$50

$25

10 15 60 140

Quantity (in thousand)

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E2037 Practice exam
Question 3

After years of development and testing, Jabra Corporation unveiled the Jabra 1000 earbud phone. The
entire device fits in your ear. It resembles those tiny in-ear speakers that let you listen to an iPod in
private—except that Jabra’s unit is a transmitter as well. It picks up your voice by amplifying sound
vibrations in your bones. Therefore, there’s no microphone boom to jut out in front of your face. Because
the bone vibrations must be amplified, a special chip in the part of the system that connects to the base of
your phone uses noise-cancellation technology to screen out background sounds. This anti-noise chip
generates a mirror image of outside noises, and the colliding sound waves erase each other. The main
electronics package—about the size of a deck of cards—also monitors the quality of the phone line and
automatically raises the volume of voice transmissions when the connection is weak. This tech-talk isn’t
cheap: the earbud phone lists for $329.

a. Did Jabra choose a penetration or skimming pricing? Do you agree with this strategy? Why?

b. Assume that Jabra has hired you as a promotion manager. How would you use the four main
elements of the promotional mix for Jabra 1000 earbud? Explain each element.

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E2037 Practice exam