Unit 2: Marketing
Business & Finance · Unit 2 · Paper 1

Marketing unit test

A test on this unit alone, marked as a percentage and a letter grade — for the test your class is actually sitting, rather than for May. Answer everything, then submit once: seeing the answer to question 3 before attempting question 4 makes the final percentage meaningless.

Paper 1Paper 2Paper 3
Each paper is built from this unit’s 30 terms and is the same for everyone, so a teacher can assign “Unit 2, Paper 1” and every student sits the identical test. Multiple choice is marked objectively; the written sections you mark yourself against the model answer and rubric.
Suggested time 34 min 31 points0/17 attempted
1

Loss leader

2

Push vs pull promotion

3

Churn rate

4

Market research: primary vs secondary

5

Customer lifetime value

6

Positioning

7

Disintermediation

8

Target market vs target audience

9

Brand extension and its risk

10

Price elasticity of demand

11

Qualitative vs quantitative research

12

Penetration pricing

Short answer 1. Define or explain: Product life cycle

3 pts

Short answer 2. Define or explain: Cost-plus pricing

3 pts

Short answer 3. Define or explain: Ethics in advertising

3 pts

Short answer 4. Define or explain: Customer acquisition cost

3 pts

Free response

7 pts

A regional chain of six coffee shops has flat sales and is deciding how to spend a $40,000 marketing budget. Current data: average transaction is $7.20, the shops serve about 32,000 transactions per month combined, and a customer survey shows that 61 percent of respondents are aged 18 to 34 while only 9 percent are over 55. A competitor has opened nearby with lower prices.

Identify the four elements of the marketing mix and briefly define each.

Describe the market segment the chain currently serves, using the survey data.

Explain one specific risk of competing with the new competitor on price.

Explain one differentiation strategy the chain could use instead, and how it would be reflected in the marketing mix.

Calculate the increase in monthly revenue that would result from raising the average transaction by $0.60 at the current transaction volume.

Explain one method the chain could use to raise the average transaction, and one risk of that method.

Explain how the chain should measure whether the $40,000 was well spent.