NEW YORK STATE FBLA MARKETING

2009
PLEASE DO NOT OPEN THIS TEST UNTIL DIRECTED TO DO SO Test Directions 1. Complete the information requested on the answer sheet. PRINT YOUR NAME on the Name line. PRINT the name of the event, MARKETING on the Subject line. PRINT the name of your CHAPTER on the DATE line. 2. All answers will be recorded on the answer sheet. Please do not write on the test booklet. Scrap paper will be provided. 3. Read each question completely before answering. With a NO. 2 pencil, blacken in your choices completely on the answer sheet. Do not make any other marks on the answer sheet, or the scoring machine will reject it. 4. You will be given 60 minutes for the test. You will be given a starting signal and a signal after 50 minutes have elapsed. Tie will be broken using the last 10 questions of the test

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In Economics, the term resources refers to a. raw materials b. the factors of production c. machinery and equipment d. money used to invest in a business Scarcity forces nations to a. produce goods and services that maximize profits b. allow government to make economic decisions c. limit the production of consumer goods and services d. make economic choices In a pure market economy a. there is no government involvement in economic decision making b. individuals and companies own the means of production c. businesses compete for consumers d. all of the above The economic benefits of marketing to consumers includes all of the following except a. increased profit to companies b. new and improved products c. lower prices d. added value and utility The idea that a business should strive to satisfy the needs and wants of customers while generating a profit for the firm is called a. target marketing b. the marketing mix c. the marketing concept d. marketing management The broad term used to identify all of the people who have similar needs and wants and have the ability to purchase products to satisfy them is a a. market b. market share c. target market d. market segment Which of the following is not an element of the marketing mix? a. production b. place c. price d. promotion

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Which of the following activities is not a function of marketing? a. distribution b. manufacturing c. promotion d. pricing Classifying customers in a given market into smaller groups based on common characteristics is called a. mass marketing b. strategic marketing c. market segmentation d. marketing management Information utility adds value to products through a. advertising and promotion b. labeling and packaging c. personal selling d. all of these add value to products Intangible items that have monetary value and satisfy personal needs and wants are known as a. consumer services b. consumer goods c. raw materials d. industrial goods The stages that a product goes through from the time it is first introduced until it is removed from the market is referred to as the a. marketing plan b. product life cycle c. business cycle d. product offering The term that is used to define the number of product lines a business offers for sale is a. product width b. product items c. product depth d. product mix This brand type, owned and initiated by intermediaries, are referred to as a a. national brand b. generic brand c. private brand d. trademark

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Lets assume that your parents buy special snacks and cereals requested especially by you and your siblings. In this case, your parents would be identified as a. customers but not consumers of those products b. consumers but not customers of those products c. consumers and customers of those products d. neither customers nor consumers of those products When a business allows their customers to use Visa or MasterCard to buy a product, they are giving the product a. form utility b. possession utility c. information utility d. promotion utility Adopting a single marketing plan for your entire market is a marketing technique called a. market segmentation b. mass marketing c. market positioning d. target marketing A restaurant chain focuses its promotional efforts on the freshness, quality, and great taste of its menu items. The restaurant is positioning its products by a. looking for an underserved market b. targeting different market segments c. leading with its strengths d. playing to competitor weaknesses Which international trade barrier limits either the quantity or the monetary value of a product that may be imported? a. tariff b. embargo c. subsidy d. quota Which global marketing strategy is being used when a company creates specially designed products or promotions for certain countries or regions? a. globalization b. adaptation c. customization d. consolidation The legal right granted to a person or company to make, use, or sell an invention for a specified period of time is called a a. patent b. copyright c. trademark

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d. monopoly 22. Derived demand is the term used to identify the relationship between the a. industrial market and the international market b. industrial market and the consumer products market c. international market and the consumer products market d. industrial market and the federal government The governmental agency responsible for overseeing the safety of products such as toys, electronics, and household furniture is the a. Food and Drug Administration b. Consumer Product Safety Commission c. Environmental Protection Agency d. Federal Trade Commission Socially responsible companies cooperate with government and consumer groups by a. providing important information to consumers b. employing self-regulation and censorship c. responding to consumer concerns d. all of these are socially responsible actions When a company makes an effort to produce and promote environmentally safe products, they are employing which of the following? a. self-regulation and censorship b. green marketing strategy c. ethical marketing practice d. not-for-profit marketing Which of the following consumer products does not lend itself to telemarketing techniques? a. magazine subscription b. cable television service c. a new automobile d. a service contract for a home appliance Customers purchase leather shoes for their appearance, easy care, comfort, and longevity. These are examples of purchases based on a. personal selling techniques b. product features c. customer benefits d. buying motives When a customer considers quality, durability, monetary savings, and service when buying a product, the buying motives are considered a. rational buying motives b. emotional buying motives c. patronage buying motives d. product feature buying motives

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A customers decision to buy a particular product or service may be affected by a. previous experience with the product or service b. the importance of the purchase to the customer c. the perceived risks involved in the purchase d. all of these may affect their buying decision Cold canvassing, sometimes called blind prospecting, is the primary technique used in a. telemarketing b. in-store selling c. catalog selling d. on-line selling Arranging displays, replenishing stock, and keeping the selling area neat and clean are all examples of a. customer service activities b. sales supporting activities c. selling activities d. stock keeping activities When businesses try to attract customers by offering high quality products, extra customer services, and convenient locations, they are engaged in a. price competition b. non-price competition c. unfair competition d. unethical competition Stouffer Foods developed its product line of entrees called Lean Cuisine to appeal to consumers who want good-tasting meals with lower calories. This product-mix strategy is an example of a. expansion b. alteration c. positioning d. planning That dress is made from 100% cotton for easy care. is an example of a sales approach technique called a a. merchandise approach b. service approach c. greeting approach d. product approach A potential customer tells a salesperson I want a copier for my home office that is simple to use and reliable. Which of the following responses would be most appropriate for the salesperson to use to assess the customers need? a. Do you currently have a copier at your office? b. This is our top-of-the-line copier with many unique features. c. This copier is the most inexpensive model we have in stock. d. What price range were you looking at?

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The most effective way to present a product to a potential customer is to a. show all of the products features to the customer b. explain in detail the benefits of each feature c. directly involve the customer in the presentation d. ask the customer if the purchase will be cash or credit Concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase are referred to as a. excuses b. sales barriers c. conflicts d. objections The purpose of a product presentation is to a. provide as much information as possible to the customer b. match product features and benefits to customer needs and wants c. to build salesperson confidence d. to show the customer that the salesperson is knowledgeable about the product The invoice for a shipment of goods costing $160 has terms of 4/10, N30. If paid within the discount period, the cost would be reduced to a. $151.20 b. $153.60 c. $155.80 d. $158.40 Browns Shoe Store marked down its winter boots from $125 to $100. What is the percent of markdown? a. 10% b. 15% c. 20% d. 30% A computerized inventory control system is easier to maintain than a manual system because a. vendors are more cooperative b. suppliers do the recordkeeping c. periodic counts of stock are unnecessary d. records are constantly being updated after each sale The promise made in a specific statement concerning the quality of a product is called a(n) a. implied warranty b. express warranty c. full warranty d. limited warranty

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Suggestion selling is important to a business primarily because it a. increases the business profit on each sale b. is good sales training experience for new salespeople c. increases the rate of stock turnover d. give the customer a second choice In order to be effective in selling, salespeople should be aware that customers go through a series of mental stages when making a purchase. The first stage is identified as a. interest b. attention c. desire d. action When you determine that your customer would benefit from a better quality good than requested, you should attempt the selling technique of a. suggestion selling b. bait and switch c. suggesting larger quantities d. trading-up Before a salesperson attempts to close a potential sale, he or she should a. look for buying signals displayed by the customer b. attempt to assist the customer in making a decision c. create a feeling of ownership in the customer d. all of the above We only have a few of these left in stock and will not be getting more in until next season. is an example of a(n) a. assumed close b. direct close c. standing-room-only close d. service close Calling the customer a week or two after a purchase to determine if he or she is happy with the product they bought is referred to as a. sales follow-up b. customer service c. order processing d. order fulfillment The combination of advertising, personal selling, sales promotion, direct marketing, and public relations are the elements of the a. marketing mix b. promotional mix c. product mix d. resource mix

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The type of promotion that is used to create a favorable image of a business, which in turn may help sales efforts is a. institutional promotion b. sales promotion c. product promotion d. special promotion Displays, free samples, premiums, and sponsorships are promotional techniques classified as a. public relations b. advertising c. buying incentives d. sales promotion Which of the following is not considered as a type of trade promotion? a. trade shows and conventions b. discounts given to intermediaries c. manufacturers coupons d. cooperative advertising Point-of-purchase displays are usually placed in high-traffic areas and promote a. expensive goods such as jewelry b. impulse purchases c. the sale of seasonal close-out merchandise d. services provided by the retailer The four elements of visual merchandising include store layout, store interior, storefront, and a. interior displays b. product placement c. promotional tie-ins d. selling space The advertising media which is relatively low in cost and can provide a timely way for companies to reach a desired audience is a. direct mail b. newspaper c. magazine d. billboard Which of the following is a disadvantage of magazines as an advertising media? a. longer life span b. high quality reprographics c. pass-along circulation d. long lead time for advertising placement

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Increased government regulations and restrictions is a major drawback for a. newspaper advertising b. direct-mail advertising c. outdoor advertising d. television advertising A retailer placed an advertisement in a local newspaper at a cost of $600. If the newspapers circulation is 300,000 readers, what is the CPM (cost per thousand) for the advertisement? a. $.002 b. $.60 c. $2.00 d. $600.00 The advertising budget of a local business is 2% of anticipated sales. Last years sales totaled $500,000 and sales are expected to increase by 10% during the coming year. How much should the business budget for advertising next year? a. $5,500 b. $10,000 c. $11,000 d. $50,000 The selling message of a written advertisement is the a. headline b. copy c. illustration d. signature Amazon.com and Overstock.com are currently referred to as a. E-tailers b. online wholesalers c. webmasters d. drop shippers Which of the following intermediaries is found only in a distribution channel for consumer goods? a. sales agent b. broker c. wholesaler d. retailer Online selling, telemarketing, use of catalogs, and production site selling are distribution methods most often associated with a. selling industrial goods b. direct distribution c. indirect distribution d. selling consumer services

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The primary factor for a business to consider when choosing a distribution channel is a. the cost involved in distribution b. the buying habits of the customers c. the nature of the product d. what channels are used by competitors An intensive distribution strategy involves the distribution of a companys products using a. only outlets in a given geographic area b. only licensed or approved dealerships c. only company owned retail operations d. all suitable outlets to sell the products A private carrier a. provides transportation service to any business for a fee b. transports only goods for an individual business c. are free from direct regulation of rates and operating procedures d. provide transport services according to an agreement between the carrier and the shipper The most expensive method used to ship goods is a. railroad transport b. air cargo services c. marine shipping d. pipeline Large retail chains such as WalMart and Target store and distribute their merchandise using a. private warehouses b. public warehouses c. distribution centers d. bonded warehouses When a buyer orders goods and services from the same vendor(s) as in the past, it is referred to as a a. want slip b. new-task purchase c. modified rebuy d. straight rebuy Which of the following would be considered criteria for selecting a supplier? a. special buying arrangements offered by the supplier b. special services offered by the supplier c. past experience with the supplier d. all of the above might be criteria for selecting a supplier When an invoice must be paid and any discounts permitted for paying early are referred to as a. terms of sale b. trade discounts

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c. memorandum buying terms d. consignment buying terms 72. Trade discounts are given by suppliers to a. consumers who purchase large quantities of merchandise for personal use b. manufacturers and intermediaries who resell products or services c. consumers who pay cash at the time of the purchase d. buyers who assume the shipping costs for the merchandise Which of the following functions is not part of stock handling activities? a. ordering merchandise b. receiving and checking merchandise c. transferring merchandise to the sales floor d. marking merchandise for resale The marking method in which the manufacturer or wholesaler price the merchandise before delivering it to the retailer is known as a. transfer marking b. competitive marking c. source marking d. direct marking An invoice from a supplier with terms of 2/10, N30 means a. a 2% cash discount is given within 10 days of invoice with the net amount due in 30 days b. a 10% cash discount is given if paid within two months; no discount for the first 30 days c. the invoice is to be paid by February 10 in order to receive the cash discount d. a 2% or a 10% cash discount is given if the invoice is paid within the first 30 days A retail furniture store purchased ten desks from a supplier for a cost of $4,500 less trade discounts of 5%, 10%, and 20%. What is the net cost of the desks after the trade discounts? a. $1,422 b. $3,078 c. $3,847 d. $4,275 Apex Music Store established the following merchandising plan for the month of April: planned sales, $5,100; EOM stock, $9,850; planned reductions, $475; BOM stock, $7,750. What is the stores open-to-buy for the month of April? a. $7,675 b. $12,025 c. $15,425 d. $23,175 When using a perpetual inventory system, a business a. hires outside inventory control companies to maintain inventory levels b. never controls its entire inventory at one time c. routinely counts items in its inventory to determine daily stock levels d. tracks inventory levels on a constant basis using point-of-sale data

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Net sales for last month was $49,500 and the average inventory was $8,250. What was the inventory turnover for the month? a. 6% b. 6 c. $6.00 d. $8,250 A model stock list is used for which category of merchandise? a. staple items b. best-selling merchandise c. seasonal merchandise d. special-order merchandise Which of the following is a goal of an effective pricing strategy? a. increase in market share b. increase in overall profit c. meeting the competition d. all of the above A penetration pricing strategy is most often used in which stage of the product life cycle? a. introduction b. growth c. maturity d. decline A flexible-price policy would be most appropriate in the selling of a. home appliances b. used automobiles c. standard grocery items d. high-fashion clothing items Maintained markup is the difference between a. the original retail price and the cost of the merchandise b. the original retail price and the final sale price c. the final sale price and the original cost of the merchandise d. none of these describe maintained markup All of the following are sources of secondary data except a. company web pages b. governmental agencies c. business and trade publications d. mall intercept interviews The final step in the marketing research process is a. defining the focus of the research b. collecting relative data

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c. applying the results d. recommending solutions 87. The activity that allows a business to design marketing programs that increase sales by making products that customers want is known as a. market planning b. product planning c. the product mix d. product development Placing new or modified products in a selected geographic area to see whether consumers will accept and buy them is called a. test-marketing b. mass marketing c. selective distribution d. product introduction Obsolescence, lack of profit, or loss of customer appeal would most likely result in a companys decision to a. drop the product or product line b. change the companys current marketing objectives c. introduce competing products or product lines d. re-evaluate customer acceptance Proctor & Gamble, Dell, Disney, Kelloggs, and Yahoo are all examples of a. brand names b. trade names c. brand marks d. trademarks A branding strategy that uses an existing brand name to promote a new or improved product in a companys product line is known as a. co-branding b. brand licensing c. brand extension d. a mixed-brand strategy Effective packaging and labeling is designed to a. create a positive impression of the company b. help to promote and sell the product c. communicate information and benefits to customers d. all of these are functions of packaging and labeling The federal government agency which established the legal standards and certification requirements for organic food labeling is the a. U. S. Department of Agriculture b. Federal Trade Commission c. Food and Drug Administration d. Consumer Product Safety Commission

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The Truth in Lending Act a. gives customers the opportunity to check their credit history b. requires that lenders disclose specific details about credit terms to the customer c. sets guidelines for the review of credit applications d. prevents businesses from harassing or abusing customers to collect debt Entrepreneurship is on the rise. Which recent marketplace trend has fostered this growth? a. the reduced risks of small business failure b. government bail-outs for small businesses c. the availability of large amounts of investment capital and loans d. the rise of the Internet and E-commerce In the corporate world, a foreign corporation is a. one which is owned and operated by foreign investors or entrepreneurs b. a domestic corporation headquartered in a foreign country c. one which is incorporated in a state that differs from the one in which it does business d. a corporation which produces and exports it products When a business purchases insurance to cover the potential loss to property or injury to personnel and customers, it is using which risk management method? a. risk prevention and control b. risk transfer c. risk retention d. risk avoidance The financial document which summarizes income and expenses during a specific period is the a. income statement b. balance sheet c. cash flow statement d. annual report Individuals who have jobs working in hotels and restaurants are employed in which field of marketing? a. Customer service b. Public relations c. Hospitality d. Retail management The last thing you should do to complete a successful job interview is a. tell the interviewer the minimum level of compensation you need b. ask the interviewer for a written job description c. send a personal note to thank the interviewer for the opportunity to interview d. none of the above

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ANSWER KEY
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. B D D A C A A B C D A B A C A B B C D C A B B D B 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. C C A D A B B C A A C D B B C D B A B D D C A B A 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. D C B A B D C C C B A D B C D B B C D D A B A C A 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. B A D B C D A B C D C B A A B C D A B D C B A C C