MarketingManagement MB002 Question

Marketing ManagementPART A (Descriptive Type) = 38

PART B (Case Study) = 5

PART C (Multiple Choice) = 160

Instant Downloadable Solution from AiDLo.com

PART A

Descriptive Type QuestionQuestion 1: Define Marketing, distinguish between Selling and Marketing. What are the four Components of Marketing Mix, briefly explain?Question 2: Define Marketing Management. Discuss the various management philosophies. Explain how the marketing and selling are contrasted and briefly explain the societal marketing concept.Question 3: The length of the product life cycle is governed by the rate of technological change, the rate of market acceptance and the case of competitive entry Discuss.Question 4: How would you price a new product (say a Mix) what options you would employ to generate quick revenue?Question 5: Define Consumer Behavior and describe its relation in purchase decision making?Question 6: Marketing is a process; explain with suitable examples and a flow chart the concept of Marketing process?Question 7: Write Short Notes on a) Marketing Concept Question | b) Consumer Buying Motives Question | c) Marker up priceQuestion 8: It is often said that middlemen are unnecessary, they cause price inflation, do you agree to this statement, explain with suitable examples?Question 9: Define Promotion; explain with suitable examples the 4 types of promotions adopted by consumer product industry?Question 10: The right marketing mix can be adopted only after segmentation. Elucidate with examples the basis of segmentation as applied in Television Marketing?Question 11: What do you understand by Branding? Is quality important than branding?Question 12: How will you go about describing a Marketing Plan for a consumer product, explain with the help of Marketing Plan Process?Question 13: Explain the various factors influencing a company's marketing strategy with the help of suitable examples.Question 14: What is marketing research? Discuss the marketing research process with the help of an example. Briefly explain the different sources of data.

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Question 15: What do you mean by productivity analysis? Differentiate between productivity analysis and profitability analysis. What are the different steps in the direct and indirect approaches to marketing budgeting?Question 16: Write short notes on: a) Relative Market Potential | b) Competitive Parity Analysis| c) Basic Elements of a Marketing StrategyQuestion 17a): What do you mean by media scheduling? Explain the procedure for evaluating advertising programes with the help of suitable examples.Question 17b): Define sales promotion and discuss the different elements of promotion-mix with the help of suitable examples.Question 18: Discuss the marketing plan for a consumer product of your choice and briefly explain the marketing planning process.Question 19: Define sales promotion and discuss the different elements of promotion mix with the help of suitable examples.Question 20: Write short notes on: a) Product Positioning | Question b) Branding| c) CRM Question d) Internet marketingQuestion 21: The marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organisational goals. Comment.Question 22: What are major reasons for market segmentation and what are its advantages?Question 23: Briefly explain the steps involved in new product development.Question 24: Explain any two pricing policies with their relative advantages and disadvantages.Question 25:.As Marketing Director of Kellogg's evolve a market driven distribution system for the market.Question 26: Which type of sales promotion vehicles will you use to promote the sale of a premium brand of toilet soap?Question 27: A Chennai based soft - Drink Company has proposed to launch a new variant of Soft-drink in three flavors lemon, rose, and orange priced at Rs.6 /-, Rs.7/- Rs.8 /-in 300ml bottles. As advertising consultant, develop an advertising campaigning Strategy. What will be your message, who will be your target market and what will be the ideal media mix?Question 28: "Indian consumers are changed both in social values and cultural life." Discuss the change you have observed with the Indian consumers and their impact on the Marketing in the post-liberalization period.Question 29: Write short notes on: 1) Marketing mix with 4 Ps model | 2) Marketing concept | 3) Product concept.Question 30: What is new product? Describe the logical steps to be followed in the new Product development and strategy.Question 31: Define data. What are the sources of data? Explain marketing research designs for data collections?Question 32: Define Company's marketing environment. What are the actors and forces that constitute company's marketing environment? Discuss

Question 33: What is a brand? Discuss the different branding strategies with examples?Question 34: Define channel of distribution. Why do producers use channel of distributions? Question 35: How would you price a new product its (say a Mixi) what options you would employ to generate quick revenue?Question 36: What do you understand by branding? Is quality important than branding?Question 37: Describe on Product Life CycleQuestion 38: Describe on Market Segmentatiton.

PART B

Case Study – 1

GOOD NIGHT

Transelektra Domestic Products PVT. Ltd., the company manufacturing Good Knight

The mosquito mat is a relative newcomer to the business world, albeit a highly

successful one. In 1984, the mosquito repellent market comprised of sprays, creams,

coils and mats. Incidentally Good Knight was not the first mat brand to be introduced.

Other brands already present were Vape, Deemos and Lion. The bulk of the market

comprised of coils and brands like Tortoise and Rooster, with tortoise being the brand

1eader. In creams the most popular was Odomos and in spray's brands such as Finit

and Baygons had a major hold.

A typical electrical mosquito repellent is a set of 2 units. The EMD is also known as

electrical mosquito destroyer and is a one time investment. It also consists of a mal box

consisting of 30 mats which needs to be replaced every month. 1n 1984, the market

was dominated by coils with seventy per cent share. By 1988, this had changed. In

1984, R. Mohan, a qualified electrical engineer and a minor distributor for Vape EMD

felt the urge to branch out on his own and market a competitive brand. A brand which

would ensure consistent high quality and incorporate proven Japanest technology. The

advertising agency, Creative Unit, was invited to associate itself with the launch from

the concept stage and advise the client on advertising and other aspects of marketing.

The brand development exercise began by an analysis of fixed factors, the primary one

being technology. 1t was mage very clear that the product to the introduced would be

an EMD as it was understood in the market. This would consist of an electrical plate and

chemically impregnated paper mat. The technology was to be imported from Sumjtomo

of Japan The manufacturing cost for the EMD would be about Rs. 50 and for the mat

box having 30 mats about Rs. 14. The client gave an open brier regarding other factors

like the brand name, package design, advertising platform, its treatment and

presentation. At this point the agency had very little time to go by way of historical data

or past experience as EMDs were still in the nascent stage. To design and shape of

brand what was required was sound and good quality information. Two focus group

discussions were conducted in Mumbai. One amongst non users and the other among

repellent users. The purpose of this study was to identify the peripheral motives, product

knowledge, satisfaction/dissatisfaction with current brand in use and psychological

triggers relevant to the product category.

Highlights of the findings were:-

1. Primary Motive

Verbalised -To drive away mosquitoes

Latent -To enjoy a peaceful sleep

2. Mosquito repellent usage was compulsive and habitual, especially in households with

children.

3. The groups were equally divided on the efficacy of coils and creams against

mosquitoes.

4. Fears were expressed with regard to side effects of smoke associated with coils and

continuous usage of creams on skin. Mothers were particularly concerned about little

children.

5. Odomos was considered safer than coils for babies.

6. Poor or no knowledge of electrical repellents

MARKET OPPORTUNITY

On the face of it, the focus groups results would seem quite discouraging. Acceptance

of coils and creams were widespread and no major dissatisfaction with their mosquito

repelling power was voiced. The pricing too was very affordable between Rs. 5/- to

Rs.I0/- per pack. Distribution was very good, as was retailed even by the paanwalls.

On the other hand, the few brands of available electrical repellents suffered from polar

brand awareness arising from meager advertising support. There was almost no

product knowledge, inconsistent product quality and above ail disadvantageous pricing.

The key to success would be for advertising to create a high value perception for the

price differential between coils/ creams and the client's EMD brand. The agency and

client took the following decisions.

MARKETING OBJECTIVES

1. Graduate dissatisfied coil / cream users.

2. Make EMD from the premium product segment.

3. Market share of at least 5 percent in the first year.

ADVERTISING OBJECTIVES

1. Encourage trial by highlighting EMDs as the more modem repellent form.

2. Product concept selling a must.

3. Demonstrate ease-or-use.

CREATIVE STRATEGY

Brand name short listed: The agency developed a number of brand names out of which

two were

1. Sukhami

2. Good Knight

Sukhami Was developed as an Indo Japanese hybrid to connote a Japanese

technology promising 'sukh' or a 'happy' and peaceful sleep.

Good Knight literally means the Good Protector But more importantly the brand name

verbalises the consumer benefit in its entirety Between the two, Good Knight offered

better advertising possibilities and also unmistakably positioned the brand as one for the

night. Besides, as a word, it was part of common parlance in most Indian languages and

a very well understood from a salutation. It was, therefore, decided to proceed with this

name.

PRIME TARGET GROUP

Mother and fathers of households with young school going children were the primary

target group. Parents did not want their children to be seen with mosquito bites and they

were also afraid of catching mosquito borne diseases.

MEDIA STRATEGY

The launch was to be limited initially to Mumbai and Kerala only. The choice of these

areas was made because of pre-set channels already familiar to the client. The total

budget earmarked was RS.2 lakh for the first four months, up to March 1985. Further,

allocations and marked spread out would depend on the outcome of this venture.

In the selection of media, the agency decided to restrict only to daily newspapers to help

in 'selling in' to the trade and also simultaneously reach out to the primary target group.

As the budget was limited, an intensive approach was felt more appropriate. The first

launch ad appeared in the Times of India, Bombay edition, on 2 January 1985. Sunday

Mid-Day), Malayalam Manorarna and Mathrubhumi followed thereafter. The result was

electric. By end of February, Rs.12 lakh worth of-EMDs and mats were picked up by the

trade. With money now flowing in, the client felt emboldened to get in for television

advertising over the Mumbai local channel to give an impetus to the retail movement.

The net result was that the client spent Rs.2.50 lakh to get a sale of about Rs. 20 lakh.

Since then, the media mix had heavy leanings towards television. Good Knight has

been one of the few brands which has latched its growth to that growth of television.

Consequently, the sale and availability of the brand closely matches the concentration

of TV sets.

CAMPAIGN EVALUATION

The brand, from the time of launch, has been highly successful in terms of the sail and

market share. A high level of trail had been achieved in a very short period are the

brand had largely been received by the consumers in the way intended. Beside this, it

also had a 75 percent market share of all electrical repellents. A policy creating

consumer pull rather than dealer push has helped in the long run. Advertising has been

simple and concentrated on the single largest consumer benefit.

The brand name has effectively)' used to convey the advertising proposition.

Question 1. Critically evaluate the communication strategy of Good Knight with

reference the facts given in the case.

Question 2. At the time of this case preparation, Good Knight was probably the only

production in the EMD with mat category. As new international competitions with known

brand names enter the market, what changes, if any, would you suggest in the

marketing communication strategy of Good Knight?

Case Study – 2

Market Segmentation-Man's Fairness

The male fairness segment industry is pitched at around Rs. 250 crore and the industry

is growing at a scorching 150 percent per year. The industry evidently has woken up to

the fact that the metro-sexual and has a large appetite for beauty (the industry

expression is "male grooming") products, particularly driven by a desire to look as fair

as the fairer SEX. ABC Company recently launched 'GROOM PLUS' the first men's

fairness cream and claims that the market feedback is highly positive and encouraging.

It is now planning an extension of "GROOM PLUS" to products Iike bleaches, shaving

creams, Lotions etc. Hitherto men used fairness cream /bleach that were available in

parlour packs. Subsequent research showed that men prefer bleach of their own with its

own fragrance and specific skin type formulations, especially branded ones.

Question (a) Suggest bases for segmentation of market for Groom Plus products.

Question (b) Discuss the importance of packaging in marketing of the above Product

range.

Question (c) Suggest a suitable Promotion-Mix for creating awareness of the above

range of products.

Case Study – 3

Q1: What should the company do in this situation and why?

Q2: Should the company try scrap industries who are an unlisted supplier and what

precautions should the company take for the future?

Case Study – 4

CONSUMERS CONFOUND MARKETERS

Household spending by all UK households amounted to over £500 billion in 1997, or

63% of gross domestic product. This level of expenditure is very closely related to

conditions in the country's macro-economic environment. For marketers, it is crucial to

be able to read the macro-economic environment and to predict the effects of change in

demand for their goods and services. Identifying turning points in the economic cycle

has become a work of art as well as science, as consumers frequently confound experts

by changing their expenditure levels in a way which could not have been predicted on

the basis of past experience.

During the Autumn of 1998, mortgage rates in the UK were falling; unemployment was

close to its lowest level for two decades; pay rises were keeping ahead of inflation; and

share prices were recovering from their recent falls. Yet expenditure by British

households was falling sharply. For three consecutive months retail sales fell in value,

with retailers such as Marks and Spencers and Storehouse reporting below expected

levels of sales. Retailers have traditionally found excuses to justify poor sales to their

shareholders, including weather which is too cold/too hot. Even the death of Diana

Princess of Wales was widely blamed for keeping people out of the shops.

Throughout 1998, prices of consumer goods had fallen significantly, with consumer

durables down in price by an average of 2% in a year and clothing by 5%. Economic

theory would have suggested that lower prices would have resulted in higher sales,

especially considering the other favourable elements of the macro-environment.

However, this did not appear to be happening.

What else could have been happening in the marketing environment to explain falling

household expenditure? At the time, the media was full of reports of an impending

global economic crisis, triggered by difficulties in the Asian economies. Consumer

confidence is crucial to many high value household purchases such as houses and

cars, with consumers reluctant to commit themselves to regular monthly repayments

when their source of income is insecure. Even this may be only a partial solution, as a

survey of consumer confidence carried out in October 1998 by GFK on behalf of the

European Commission showed that although consumers were pessimistic about the

state of the national economy, they were quite upbeat about their personal financial

situation.

One possibility was that consumers had become cannier. If prices are falling, why not

wait longer until prices have fallen further? Consumers had also witnessed the effects of

previous over-borrowing and had been more cautious during the recent period of

economic growth, resulting in a historically low level of personal sector indebtedness. In

1997, 9% of disposable household income was saved, compared with just 3% at the

height of the economic boom of 1988.

For companies who need to commit resources a long while in advance in order to meet

consumers' needs, an accurate understanding of the market environment is crucial if

stock surpluses and shortages are to be avoided. But this case shows that getting it

right can still be very difficult.

ADDITIONAL CASE STUDY REVIEW QUESTIONS

1. Identify all of the environmental factors that can affect the demand for consumer

durables and assess the magnitude and direction of their impact.

2. In what ways can a manufacturer of consumer durables seek to gain a better

understanding of its marketing environment?

3. How can a manufacturer of consumer durables seek to respond to environmental

change as rapidly as possible?

CASE STUDY- 5

ROSE ICE CREAM COMPANY

Ajay and Vijay were two friends with an interest in fast food business who grouped together to from Rose Ice Cream Company. The two men started out using Ajay’s

car garage at Delhi as their office and rented a small factory at nearby village. Their Ice Creams were aimed at the high quality range and could be generally described as moderately priced.

While both of them managed the marketing and selling operations, Vijay’s also managed the general business functions, budgeting. Purchasing, Production, HR etc.

Their Ice Cream sold well, and they began getting special bulk orders from nearby Hotels and big office from Noida and Delhi region. Now within a year they moved over to Noida Industrial area in search of a bigger workspace to cope with large orders. Because of the pressure of work, different activities had spilled over and they had to employ more people to manage the general business functions. Ajay was worried and disturbed about lack of coordination in the company. Their main problem was managing marketing activities.

In fact, because of growing popularity of Rose Ice Cream, Two more new outlets were been opened by some competing firms with similar names. The customers of Rose Ice Cream did not know how to identify the genuine and fake Ice Creams. Both Ajay and Vijay always seemed to be going from one crisis situation to another. Now, that they were growing, they did not know how to proceed and manage the new orders. Recently some hotel owners complained about delays in getting supplies.

During a recent discussion both of them agreed to re-organize the whole setup by inducting fresh employees in marketing department. You are appointed as the Marketing Manager of the Rose Ice Cream Company.

Ques 1: Explain how would you react in this situation?

Ques 2: What would you organize the whole marketing activities?

Ques 3: Draw an organization chart to explain the re-organization?

PART C

Multiple Choice Question – Set 1

1. Marketing refers to:

(a). Developing a product and making people buy them

(b). Persuading consumers to buy the products

(c). Producing products and displaying them

(d). Understanding the needs of consumers and delivering them

2. A survival pricing objectives aims to:

(a). Covers fixed costs and some variable cost

(b). Selling at break even cost

(c). Obtain minimum profit.

(d). Covers variable costs and some fixed cost.

3. The first stage in product development is:

(a). Business analysis.

(b). Commercialization.

(c). Screening.

(d). Idea generation.

4. Warehousing and physical distribution functions are:

(a). Unrelated activities and separately managed.

(b). Best handled by manufacturers only.

(c). Synergistically related activities which must be closely coordinated.

(d). Relatively unimportant activities in the present day market.

5. Marketing Concept is best illustrated by which of the following marketing system

goals:

(a). Maximizing customer satisfaction

(b). Maximize choice

(c). Maximize consumption

(d). Maximize life quality

6. In Consumer decision making specifier is one who:

(a). Is one who is user of product?

(b). Is one who sells the product?

(c). Is one who has been asked to advice on the product?

(d). Is one who signs the cheque for the purchase of the product?

7. Under globalization of Trade strategies, the marketer will have to adopt:

(a). Product differentiation

(b). Localisation

(c). Standardisation

(d). Reduction of cost

8. Product Life cycle means that:

(a). Products live around the 4 stages of cycle

(b). Product keeps moving from one to next stage in turns

c. Products

9. In DELPHI method of Marketing Research, the opinion of:

(a). The opinion consumers in DELHI are sought

(b). The Opinion of experts is sought

(c). The Opinion of DEALERS is sought

(d). The opinion of Dealers and Employees are sought

10. Premium Pricing refers to:

(a). Setting a price above the cost price

(b). Setting a price above competitive price

(c). Setting a price where only the rich can buy

(d). Setting a range of prices at different markets

Say Yes or No

11. TQM refers to Total Quantity Management.

12. Marketing means pushing the products in the markets.

13. Penetration pricing means selling at high price initially.

14. Wholesalers sell products to all types of consumers.

15. Direct Marketing means selling to ultimate consumer.

16. Objective of Distribution of products is to restrict availability of products.

17. Price is no consideration if the seller delivers high quality products.

18. CRM helps to retain customers.

19. Marketing Mix means People, Policy, Partnership and Politics.

20. Missionary Sales People do not ask for salary.

Write short answers in just five sentences

21. List out 5 stages in consumer decision making process.

22. Write a simple definition for marketing and selling.

23. List out 5 benefits of advertising a product.

24. Give 5 examples (each) of consumer, consumer durables and industrial products.

25. List out 5 functions performed by whole sellers in consumer product industry.

26. List out 5 functions of packaging for cosmetic products.

27. Give 5 examples of Family brands in consumer products.

28. List out the 5 stages in new product development.

29. Give 5 reasons why new products fail.

30. What are the four stages in Product Life cycle?

Differentiate between the following (Just in 5 sentences)

31. Product diversification and Product differentiation.

32. Marketing and Selling.

33. Penetration Price and Skimming Price.

34. Individual Consumer and Industrial Consumer.

35. Vertical Marketing and Horizontal Marketing

36. Packaging and Packing.

37. Individual Brand and Family Brand.

38. Personal Selling and Missionary Selling.

39. Whole seller and Distributor.

40. Full Cost Pricing and Marginal Cost Pricing.


1. The selling concept focuses on -

a) Products

b) Customer needs

c) Markets

d) None of the above

2. Market means -

a) The set of actual and potential sellers of a product

b) The set of actual and potential buyers of a product

c) Both buyers and sellers


3. BCG stands for -

(a) Boston consumer groups

(b) Boston credit groups

(c) Boston consultancy group

(d) Both (a) and (b)

4. Marketing-mix elements are -

(a) Product, Price, Place and customers

(b) Product, Price, Place and Promotion

(c) Product, Price, Place and Physical Distribution

(d) Both (b) and (c)

5. Diversification means -

(a) A strategy for company growth by starting up or acquiring businesses outside the

company's current products and markets.

(b) A stage for company growth and starting up or acquiring other companies and their

products

(c) A unit which deals in many products and services


6. SBU stands for -

(a) State Bank of Uttaranchal

(b) Strategic Business Unit

(c) Semi Brand Units

(d) None of the above

7. Market segmentation is -

(a) The process of classifying customers' intro groups, each with different needs,

characteristics or behaviors.

(b) The process of classifying the markets into groups, each with same needs and

characteristics

(c) The process of making the dealers and distributors happy about the products


8. Strategic control means -

(a) A critical review of the company's overall production effectiveness

(b) A critical review of the company's overall financial effectiveness

(c) A critical review of the company's overall marketing effectiveness


9. Changes in income is -

(a) An economic environment factor

(b) A political environment factor

(c) A socio-cultural environment factor


10. Status is -

(a) The general life-style given by the society

(b) The general esteem given to a role by society

(c) The symbol in the market


11. The first step in strategic planning is -

(a) Defining the company mission

(b) Designing the marketing programs

(c) Designing the Business Portfolio


12. The 4Cs in the marketing-mix tactical tool kit are -

(a) Customer, cost, convenience and curve

(b) Customer, cost, convenience and coverage

(c) Customer, cost, convenience and communication


13. Promotion-mix elements are -

(a) Price, advertising, publicity and sales promotion

(b) Advertising, personal selling, sales promotion and publicity

(c) Personal selling, strategy, advertising and publicity

(d) Both (a) and (c)

14. Marketing productivity audit includes -

(a) Products, price and distribution analysis

(b) Profitability analysis and cost-effectiveness analysis

(c) Advertising and sales force analysis


15. Demography is -

(a) The study of human population in terms of size, density, location, age, gender, race,

occupation and other statistics

(b) The study of the marketing plans

(c) The study of all the activities in the organization


16. A sample is a -

(a) Segment of the area in the market

(b) Segment of the population selected to represent the population as a whole

(c) Part of the data


17. The two types of sales forecasts are -

(a) Industry and the market sales forecasts

(b) Industry and the price forecasts

(c) Industry and the company sales forecasts


18. PVCM stands for -

(a) Percentage and value cost margin

(b) Percentage-variable contribution margin

(c) Percentage-value cost margin


19. Inventory turnover is -

(a) Gross margin/price

(b) Sales/cost

(c) Sales/average value of inventory

(d) Both (a) and (b)

20. The product is now more widely known and the sales grow rapidly is the stage of-

(a) Introduction stage

(b) Maturity stage

(c) Growth stage

(d) Decline stage

21. The 4 stages in the PLC are -

(a) Growth, introduction, maturity and new

(b) Introduction, growth, maturity and decline

(c) Introduction, decline, new product, growth


22. The new product development process starts with -

(a) Screening

(b) Idea generation

(c) Product development


23. The process of creating and developing product specifications that optimize the

function, value and appearance of a product is -

a) Product design

b) Market design

c) Industrial design


24. Setting a price at or near competitive levels is -

(a) Penetration pricing

(b) Parity pricing

(c) Competition pricing


25. In advertising, GRP stands for -

(a) Grand rating points

(b) Growth rating points

(c) Gross rating points


26. Inventory cost is -

(a) Annual sales/inventory turnover X inventory carrying cost

(b) Total sales/inventory carrying cost

(c) Total cost/annual cost


27. The systematic design, collection, analysis, and reporting of data relevant to a

specific marketing situation facing an organization is -

(a) Market research

(b) Marketing research

(c) Product research


28. In collecting primary data, the two main research instruments are -

(a) Mechanical devices and the telephonic conversation

(b) Questionnaire and the mechanical device

(c) Questionnaire and the telephonic conversation


29. VMS stands for -

(a) Vertical marketing system

(b) Vertical management system

(c) Value marketing system

(d) Vertical measuring system

30. A descriptive thought that a person has about something is called

(a) Idea

(b) Belief

(c) Value

(d) Description

31. The collection of businesses and products that make-up the company is -

(a) Product portfolio

(b) Business portfolio

(c) Market portfolio


32. Two or more outlets that are commonly owned and controlled are -

(a) Business stores

(b) Chain stores

(c) Products


33. The practice of using the established brand names of two different companies on

the same product is -

(a) Branding

(b) Re-branding

(c) Co-branding


34. The set of basic values, perceptions, wants and behaviors learned by a member of

society from family and other important institutions is known as -

(a) Culture

(b) Sub-culture

(c) Attitude


35. The total combines customer lifetime values of all of the company's customers is

called -

(a) Product equity

(b) Customer equity

(c) Market equity


36. CRM stands for -

(a) Cost recovery management

(b) Customer role in management

(c) Customer relationship management


37. Adding a standard markup to the cost of the product is -

(a) Differentiated pricing

(b) Cost-plus pricing

(c) Cost only pricing


38. Human wants that are backed by buying power are called -

(a) Products

(b) Demands

(c) Markets


39. Stocking the product in as many outlets as possible is called -

(a) Extensive distribution

(b) Inclusive distribution

(c) Intensive distribution


40. In marketing, MIS stands for -

(a) Management information system

(b) Marketing information system

(c) Market idea system

(d) Major information system


1. All of the following would be ways to segment within the category of psychographic

segmentation EXCEPT:

a. social class.

b. occupation.

c. lifestyle.

d. personality.

2. The orange juice manufacturers know that orange juice is most often consumed in

the

mornings. However, they would like to change this and make the drink acceptable

during

other time periods during the day. Which form of segmentation would they need to work

with and establish strategy reflective of their desires?

a. gender segmentation

b. benefit segmentation

c. occasion segmentation

d. age and life-cycle segmentation

3. Using a successful brand name to introduce additional items in a given product

category under the same brand name (such as new flavors, forms, colors, added

ingredients, or package sizes) is called a(n):

a. line extension.

b. brand extension.

c. multibranding.

d. new brands.

4. If a company's objective were to reach masses of buyers that were geographically

dispersed at a low cost per exposure, the company would likely choose which of the

following promotion forms?

a. Advertising

b. Personal selling

c. Public relations

d. Sales promotion

5. Successful service companies focus their attention on both their customers and their

employees. They understand, which links service firm profits with employee and

customer satisfaction.

a. internal marketing

b. service-profit chains

c. interactive marketing

d. service differentiation

6. Anything that can be offered to a market for attention, acquisition, use, or

consumption that might satisfy a want or need is called a(n):

a. idea.

b. demand.

c. product.

d. service.

7.______________ is the general term for a buying and selling process that is

supported by electronic means.

a. Internet commerce

b. Web commerce

c. Computer commerce

d. Electronic commerce

8.________________ consists of dividing a market into distinct groups of buyers on the

basis of needs, characteristics, or behaviour who might require separate products or

marketing mixes.

a. Product differentiation

b. Market segmentation

c. Market targeting

d. Market positioning

9.__________________ is the process of evaluating each market segment's

attractiveness and selecting one or more segments to enter.

a. Mass marketing

b. Market segmentation

c. Market targeting

d. Market positioning

10. The fact that services are sold, produced, and consumed at the same time refers to

which of the following service characteristics?

a. Intangibility

b. Inseparability

c. Variability

d. Perishability

11._______________ factors are the most popular bases for segmenting customer

groups.

a. Geographic

b. Demographic

c. Psychographic

d. Behavioral

12. The stage is the product life cycle that focuses on expanding market and creating

product awareness and trial is the:

a. decline stage.

b. introduction stage.

c. growth stage.

d. maturity stage.

13. A set of interdependent organizations involved in the process of making a product or

service available for use or consumption by the consumer or business user is called

a(n):

a. retailer.

b. wholesaler.

c. distribution channel.

d. logistics.

14. In evaluating messages for advertising, telling how the product is better than the

competing brands aims at making the ad:

a. meaningful.

b. distinctive.

c. believable.

d. remembered.

15.___________________ is the practice of adopting policies and developing strategies

that both sustain the environment and produce profits for the company.

a. Environmentalism

b. Environmental sustainability

c. Consumerism

d. Consumer accountability

16. Consumer goods with unique characteristics or brand identification often requiring a

special purchase effort are called:

a. custom products.

b. specialty products.

c. convenience products.

d. shopping products.

17. A price reduction to buyers who buy in large volumes is called a(n):

a. quantity discount.

b. cash discount.

c. seasonal discount.

d. trade discount.

18. R&D and engineering first produce the product concept into a physical product

during which of the following stages of the new product development process?

a. Concept development and testing

b. Marketing strategy

c. Business analysis

d. Product development

19. The primary reason that many companies work to become the "low-cost producers"

in their industry is because:

a. they can generate more advertising.

b. they can please top management.

c. they can gain tax advantages.

d. they can set lower prices that result in greater sales and profits.

20. Conflicts between different levels of the same channel of distribution are referred to

as:

a. horizontal conflicts.

b. vertical conflicts.

c. layer-based conflicts.

d. parallel conflicts.

21.________________ is a philosophy holding that a company's marketing should

support the best long-run performance of the marketing system.

a. Enlightened marketing

b. Myopic marketing

c. Fundamental marketing

d. Conceptual marketing

22. A company is practicing __________________ if it focuses on subsegments with

distinctive traits that may seek a special combination of benefits.

a. micromarketing

b. niche marketing

c. mass marketing

d. segment marketing

23. When a company reviews sales, costs, and profit projections for a new product to

find out whether these factors satisfy the company's objectives, they are in which of the

following new process development stages?

a. Concept development and testing.

b. Commercialization.

c. Business analysis.

d. Marketing strategy development.

24._______________ is a strategy of using a successful brand name to launch a new

or modified product in a new category.

a. Duobranding

b. Line extension

c. Brand extension

d. Multibranding

25. The fact that service cannot be stored for later use or sale is evidence of their:

a. intangibility.

b. inseparability.

c. variability.

d. perishability.

26._________________ is the concept under which a company carefully integrates and

coordinates its many communications channels to deliver a clear, consistent, and

compelling message about the organization and its products.

a. The promotion mix

b. Integrated international affairs

c. Integrated marketing communications

d. Integrated demand characteristics

27. The course of a product's sales and profits over its lifetime is called:

a. the sales chart.

b. the dynamic growth curve.

c. the adoption cycle.

d. the product life cycle.

28. The type of trade-promotion discount in which manufacturers agree to reduce the

price to the retailer in exchange for the retailer's agreement to feature the

manufacturer's products in some way is called a(n):

a. discount.

b. allowance.

c. premium.

d. rebate.

29. When producers, wholesalers, and retailers act as a unified system, they comprise

a:

a. conventional marketing system.

b. power-based marketing system.

c. horizontal marketing system.

d. vertical marketing system.

30.______________ is a person's distinguishing psychological characteristics that lead

to relatively consistent and lasting responses to his or her own environment.

a. Psychographics

b. Personality

c. Demographics

d. Lifestyle

31.________________ has the advantage of being high in selectivity; low cost;

immediacy; and interactive capabilities.

a. Direct Mail

b. Outdoor

c. Online

d. Radio

32. If an advertiser wants flexibility, timeliness, good local market coverage, broad

acceptability, and high believability, the advertiser will probably choose which of the

following mass media types?

a. Newspapers

b. Television

c. Direct Mail

d. Radio

33. A(n)_______________ is a name, term, sign, symbol, or design, or a combination of

these that identifies the maker or seller of a product or service.

a. product feature

b. sponsorship

c. brand

d. logo

34. All of the following factors can affect the attractiveness of a market segment

EXCEPT:

a. the presence of many strong and aggressive competitors.

b. the likelihood of government monitoring.

c. actual or potential substitute products.

d. the power of buyers in the segment.

35. A _______________ is any activity or benefit offered for sale that is essentially

intangible and does not result in the ownership of anything.

a. demand

b. basic staple

c. product

d. service

36. The________________ holds that consumers will favor products that are available

and highly affordable (therefore, work on improving production and distribution

efficiency).

a. product concept

b. production concept

c. production cost expansion concept

d. marketing concept

37. A company is in the_______________ stage of the new product development

process when the company develops the product concept into a physical product in

order to assure that the product idea can be turned into a workable product.

a. product development

b. commercialization

c. marketing strategy

d. business analysis

38. The practice of going after a large share of a smaller market or subsets of a few

markets is called:

a. undifferentiated marketing.

b. differentiated marketing.

c. concentrated marketing.

d. turbo marketing.

39.________________ is screening new-product ideas in order to spot good ideas and

drop poor ones as soon as possible.

a. Idea generation

b. Concept development and testing

c. Idea screening

d. Brainstorming

40. Technological advances, shifts in consumer tastes, and increased competition, all of

which reduce demand for a product are typical of which stage in the PLC?

a. decline stage

b. introduction stage

c. growth stage

d. maturity stage


1. Transaction buyers can be generally described as which of the following?

a. only interested in the purchase at hand

b. see the benefit of sharing the business between a number of suppliers

c. seek a long-term relationship with suppliers

d. consist mostly of small companies

2. Which of the following best describes the characteristics of relationship customers?

a. seek a short-term orientation with suppliers

b. sees the benefit of sharing the business among a number of suppliers

c. only interested in the purchase at hand

d. consist mostly of small companies

3. Lifetime customer value is often described as which of the following?

a. the cost of customers switching to another brand

b. the stream of revenue a customer can produce over a lifetime with your product

c. acquisition cost

d. variable cost

4. Retained customers _____ than switchers.

a. are less profitable

b. are more profitable

c. cost more

d. are less loyal

5. The compelling economic reason for increasing the customer retention rate is

described by_____.

a. a small difference in retention rate changes slightly over a long period of time

b. a small difference in retention rate is greatly magnified over a long period of time

c. a small difference in retention rate does not change over any period of time

d. retention rate is not a factor in the lifetime customer value

6. According to the text, loyal customers are more profitable because of all of the

following reasons except:

a. they stimulate revenue growth

b. are less expensive to serve

c. willing to pay a premium price

d. price sensitive

7. Which of the following costs represent an initial cost for any customer?

a. development cost

b. fixed cost

c. variable cost

d. acquisition cost

8. The ________ is simply the profit margin a company earns from an average

customer.

a. supplementary profit

b. base profit

c. complementary profit

d. voluntary profit markup

9. Retained customers have been found to do which of the following?

a. speak negatively about the product

b. increase their purchase quantities over time

c. decrease their purchase quantities over time

d. switch to a competitor within a month

10. It has been found that existing customer's cost _____ to serve compared to new

customers.

a. less

b. more

c. the same

d. is not applicable

11. Which of the following is not considered one of the strategic approaches to the

marketplace as described in the text?

a. sales driven

b. technology driven

c. competitor driven

d. customer driven

12. In a customer-focused organization, advertising is considered:

a. an investment in the brand name

b. providing value to the customer

c. an expense

d. all of the above

13. The marketing environment where firms compete is not:

a. static

b. dynamic

c. fast changing

d. stable

14. Which of the following is not consistent with the marketing concept?

a. Embraces the notion of being customer focused

b. Is consistent with being competitor focused and making a profit

c. Serves all customer needs at all costs and the customer is always right

d. Turn away customers and customer segments that are unprofitable to serve

15. When Ford or GM sells automobiles to their customers, their customers are actually

buying all of the following except:

a. transportation

b. prestige

c. fun

d. automobiles

16. If you spoke to a marketing manager at P&G regarding the marketing of laundry

detergent, he/she would say that they are selling all of the following except:

a. laundry detergent

b. clean clothes

c. fresh-smelling clothes

d. no color runs

17. Information from marketing research studies should be sent to individuals in all of

the following functional areas except:

a. production personnel

b. application engineers

c. sales personnel

d. marketing personnel

18. From the perspective of a marketing manager, marketing can be viewed as all of the

following except:

a. brand enhancement

b. customer service

c. packaging production

d. raw material cost control

19. The marketing manager's internal interactions include all of the following except:

a. sales

b. finance

c. suppliers

d. public relations

20. The internal interactions of the marketing manager's job can be described as all of

the following except:

a. working with the company's Board

b. dealing with suppliers

c. dealing with members of the media

d. reporting to senior management

21. The elements of a complete marketing strategy include all of the following except:

a. developing a value proposition

b. developing competitive advantage

c. positioning products and services

d. developing price and delivery programs with raw materials vendors

22. Marketing managers are challenged by all of these problems except:

a. developing reasonable sales and market share goals

b. developing a targeted list of customers

c. developing reasonable product costs

d. how to differentiate their product

23. Which of the following best describes a marketing objective?

a. a corporate vision and mission

b. a written definition or general intent or company position

c. the criterion by which the success or failure of the strategy is measured

d. a measurable evaluation of the business

24. "Increased market share" is not a good objective because:

e. it is too challenging

f. it is not measurable

g. it doesn't mention quality

h. it doesn't assign responsibility

25. All of the below are characteristics of good objective statements except:

a. should assign individual responsibility

b. should have a quantified standard of performance

c. should have a clear time frame

d. should be stated in measurable terms

26. For which of the following would marketing managers target a market penetration

strategy?

a. Individuals who have never used the product or service

b. Offshore customers who have a need for the product or service

c. Individuals who are buying your product or service or a direct competitor's

d. Individuals who buy closely-related products or services

27. Which of the following best describes why marketing managers should pursue a

market penetration strategy?

a. There are always a large number of potential customers who have never purchased

your product or service

b. They have purchased your products or services in the past and are familiar with its

benefits

c. There are customers who don't know about your product or service

d. There are customers who have an unmet need for your product or service

28. Which best describes the realities of targeting competitors' customers?

a. It is easier to locate them because they are already buying the product or service

b. It is easier to sell them as they already know the advantages of the product or service

c. There is little loyalty among consumers and getting customers to switch is easy

d. It is riskier and more expensive to "steal" customers away from a competitor

29. In which Product Life Cycle phase is it easier to persuade a customer to switch to

your product or service?

a. introduction phase

b. growth phase

c. mature phase

d. decline phase

30. A marketing manager uses all of these groups to give more focus to market

segmentation decisions except:

a. existing customers

b. competitors' customers

c. non-buying customers in currently targeted segments

d. most profitable customers in the largest segment

31. Which of the following best links the consumer and the marketer through information

that can be used to identify marketing opportunities and problems?

a. strategic marketing

b. consumer behavior

c. marketing research

d. personal selling

32. The mission of the Market Research department is all of the following except:

a. gather information

b. analyze information

c. interpret marketing information

d. evaluate past promotional programs

33. According to the text, all of the following are mentioned as major functions of

marketing research except:

a. scanning for opportunities and threats

b. evaluate past promotional programs

c. risk assessment of future programs

d. monitoring of current programs

34. Specifically, marketing research is most commonly used to:

a. forecast the sales of existing and new products

b. refine new product concepts

c. understand competitors

d. all of the above

35. The first step in the marketing research process is which of the following?

a. defining the problem

b. determine the research objective

c. design a questionnaire

d. collect the data

36. Which of the following information sources already exist and were not developed for

the particular problem at hand?

a. primary

b. secondary

c. quantitative

d. qualitative

37. Information sources that are generated for the particular problem being studied are

best described as:

a. primary

b. secondary

c. quantitative

d. qualitative

38. Marketing managers are well advised to consult _____ sources before embarking

on major data collection process.

a. primary

b. secondary

c. quantitative

d. qualitative

39. Which of the following is an advantage of primary data collection?

a. Data can be collected quickly to meet a manager's needs

b. Data is tailored to the manager's needs

c. Data is perhaps the most inexpensive among data collection methods

d. Data already exists for another study and is more accurate because it has already

been analyzed

40. All of the following are disadvantages of primary data collection except:

a. Data can be collected quickly to meet a manager's needs

b. Data is tailored to the manager's needs

c. Data is perhaps the most inexpensive among data collection methods

d. Data already existed for another study and is more accurate because it has already

been analyzed

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MarketingManagement MB002 Question