THREE questions, two hours:

PART I.  Answer one of the following two questions.

1. Many early marketing texts in the U.S. were primarily concerned with the efficient distribution of goods.  There have been many attempts in the last 100 years to decrease reliance on intermediaries; Wal-Mart is perhaps the best attempt to date.

When do intermediaries decrease efficiencies and increase costs of distribution?  When do intermediaries increase efficiencies and decrease costs of distribution?  Relate your answer to undeveloped, developed, and industrial parts of the world.

2. Business Week recently published a special report regarding changes in the Asian economies.  According to this report, "East Asia will surpass Japan in purchasing power within a decade."

Choose and specify any country in the world.  From that country's perspective, what opportunities do the above changes present?  What threats?  What strengths does that country have with respect to the above changes?  What weaknesses?  Be sure that your discussion is from the perspective of a marketer.

PART II.  Answer two questions from the following four.

3. Cite examples of businesses in which the experience curve effect is not applicable.  What difference might this have on price determination?

4. What is price elasticity?  How can marketers use this idea to best advantage?

5. How is the marketing of goods, services, and ideas the same?  How different?

6. Can marketers make people buy things they don't want and don't need?  What is the purpose of promotion?