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QUESTION NO: 1
X-Pert Bikes sells bikes for people of all ages. The company is creating a new advertising campaign targeted only at existing customers, encouraging them to buy an X-Pert Bike the next time they want a bike. The company also begins an X-Pert Club for existing users of X-Pert Bikes, as research has shown that familiarity with a brand increases the chances of repeat purchases. In this case, X-Pert's campaign is aiming to build ______.
A. brand awareness
B. brand dilution
C. brand parity
D. brand extension
E. brand loyalty
Answer: E
QUESTION NO: 2
Newtown-based athletic shoe manufacturer Alpha Shoes sells different types of shoes for kids, and focuses its marketing activities in the Newtown region. To increase sales of its products, Alpha begins an intensive promotional campaign in Newtown's schools. Which of the following market strategies is the company using?
A. diversification
B. market penetration
C. horizontal integration
D. market development
E. vertical integration
Answer: B
QUESTION NO: 3
Forever Quilting is a company that designs and distributes quilting kits. The kits are priced at
$120 each. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,200 for rent and insurance, $300 for heat and electricity, $600 for advertising in quilting magazines, and $3,500 for the monthly salary of its owner.
What is the break-even point for Forever Quilting?
A. 50
B. 60
C. 70
D. 80
E. 90
Answer: D
QUESTION NO: 4
Which of the following is a disadvantage of outdoor marketing?
A. It cannot be linked to detailed content.
B. It is relatively more flexible than newspaper advertising.
C. It offers reduced chances of repeat exposure.
D. It is highly expensive.
E. It offers very limited exposure time.
Answer: E
QUESTION NO: 5
When conducting a SWOT analysis, opportunities and threats are likely to arise from:
A. assets and financial performance.
B. key personnel.
C. changes in consumer preferences.
D. the company's core competencies.
E. the location of the company.
Answer: C
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Updated: May 27, 2022