1) Effective and sizable investments in advertising can help to create barriers to entry.a) True b) False
2) You must build the content of an ad by manipulating which of the following variables?a) What to say in the ad (which benefits are selected);b) How much to say in the ad (how many benefits to mention in the ad);c) The priority of the content (what should be given top billing, second, and so forth)d) All of the above
Quarter 4 Decisions
3) Which of the following is considered revenue?a) Money from sales b) Profit from salesc) Rebatesd) None of the above
4) Gross margin refers to which of the following?a) Revenues minus cost of goods sold b) Revenues minus both cost of goods sold and rebatesc) Revenues plus cost of goods soldd) None of the above
5) Which of the following is not considered an operating expense?a) Sales office leasesb) Sales force expensesc) Ad creation/ revision costd) Cost of goods sold
6) Which of the following is not considered part of the gross margin?a) Revenue b) Rebatesc) Cost of good soldd) Sales office leases
7) What is operating profit?a) Profit from financingb) Profit from salesc) Profit from investmentsd) None of the above
8) Which of the following is an engineering cost?a) Design cost for a new brand b) Sales office leasec) Rebatesd) Sales force expense
9) Salary, benefits, and training costs are considered sales force expenses. a) True b) False
10) Which of the following is considered a good price judgment by the end of the exercise?a) 50b) 70 c) 95 d) 85
11) In Quarter 4, what is considered to be a good ad judgment?a) 55b) 50c) 60d) 75
12) Which of the following is considered a good brand judgment in Quarter 4?a) 50b) 70 c) 95 d) 85
13) Your customers will give the highest ratings to ads that mention the most benefits. a) Trueb) False
14) Is it OK to copy another competitor’s ad?a) Yes b) No
15) Of the following, which will have the greatest effect on your demand?a) The number of firms competing in your markets b) The amount of advertising you doc) The economic environment
16) If your competitors’ prices are below your prices, then which of the following is most likely to happen, all other things being equal?a) Your demand increasesb) Your demand decreases c) None of the above
17) When evaluating one of your brands, what should you be sure to do?a) Compare your brand against the highest rated brands in its target segment b) Compare your brand against only those brands that have higher ratings in the target segmentc) Look at all brandsd) Ignore the competition and look only at how well your brand is rated by the target segment.
18) Which of the following variables are important in determining your brand demand?a) Brand designb) Brand pricesc) Advertisingd) All of the above
19) What is the ultimate decision in media planning?a) When to advertiseb) How to advertisec) How much to invest into advertising d) How often to advertise
20) What is new in Quarter 4?a) There is customer feedback on each firm’s brands, prices and advertising b) Five new sales offices can be openc) There are new components available for brand designd) There is a new competitor on the market
21) What is the fundamental goal of your PC Division?a) Earn a profit for corporate headquarters b) Take control of the global marketc) Take control of the software marketd) Earn a profit for the division
22) In brand management, one should consider which of the following as important tasks?a) Find the benefits that end users want fulfilled the mostb) Select features/components to provide benefitsc) Create high-tech computersd) Both a and b
23) What is the most direct application of the competitive benchmark data?a) Monitor what is happening in the marketb) Determine the weaknesses of your main competitorsc) Keep track of your competitors’ strengthsd) Determine how your competitors’ decisions are affecting your demand
24) Of the following, which will have the greatest effect on your demand?a) Sales office locationb) Number of sales peoplec) The price of your competitor’s brandsd) The number of sales offices you have
Quarter 5 Decisions
25) What is new in Quarter 5?a) The firm is free to target a second segment b) Three new sales offices can be openedc) There are new components available for Research and Development d) There a new competitor on the market