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Week One Quiz Prep

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Submitted By alleyrockshoppe
Words 280
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1
How does the market demand curve change (as a function of marketing expenditure) during recession?

Shifts downward

Shifts upward

Becomes vertical

Remains unaffected
Correct
Market demand is dependent on a number of factors, including the amount of marketing dollars expended as well as marketing demand which is described as both expansible and inexpansible. For both of these terms, think about the concepts of elastic and inelastic demand in economic terms. If the price of clothing is reduced for example, more items will be purchased indicating elastic demand. The same is not true of prescription drugs. If you need the prescription, you will continue paying for it despite the fact that the price goes up. Demand is inelastic in this case. When the economy is in recession, people have less discretionary income so the demand curve for most products shifts downward.

2
A company's sales potential would be equal to market potential when which situations exists?

Industry marketing expenditures approach infinity for a given marketing environment.

The company gets 100 percent share of the market.

The marketing expenditure of the company is reduced to zero.

The market is nonexpandable.
Correct
If a company receives its full potential of 100%, then it would be equal to its market potential of receiving 100% of the market. How would you refer to the most market share a company could achieve? What might you say about sales? How could these two concepts be related?

3
The Soccer World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n)

idea

event

place

service
Correct
Event marketing is big business and involves concerts, sporting events, and so

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