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Test answers for Marketing Management Test 2020

(78, CL) Last updated: January 22
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78 NOT Answered Yet Test Questions:

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1. The quality of some services such as a medical diagnosis is extremely difficult to determine even after the service has been rendered. Such services are _____________.


• high in differentiation qualities

• high in experience qualities

• high in search qualities

• high in credence qualities

2. The 'assortment' decision positions the reseller in the market. Under which assortment strategy would the following be categorized: carrying a product family in depth drawing on many producers' output.


• Exclusive assortment

• Deep assortment

• Broad assortment

• Scrambled assortment

3. Which of the following is NOT an advantage associated with Internet-based advertising?


• High conversion rate among those seeing the ads

• Broad exposure

• Low cost of creating copies

• Ability to use multimedia approaches

4. Which of the following is not a means of 'Direct Marketing'?


• Junk mail

• Coupons in newspapers

• Telemarketing

• Email marketing

5. Which of the following environmental factors or forces affecting the marketing operations of a company is NOT at least partially controllable?


• Suppliers

• Customers

• Social factors

• Political/Legal factors

• Competitors

6. Which of the following statements is/are true?
i)Selling is consumer-oriented.
ii)Producers of a product should not be involved in its marketing.


• Both (i) and (ii) are true.

• Only (i) is true.

• Only (ii) is true.

• Neither is true.

7. Which of the statements is/are true?

i)Seasonal variations should not be used to predict sales volume.
ii)Loyalty cards cannot be used to target products at particular customers.


• Both (i) and (ii) are true

• Only (i) is true

• Only (ii) is true

• Neither is true

8. In marketing management, ______________ is a method used to group customers according to the use of the product whereas ______________ is a method used to group them according to their distinguishing characteristics.


• Market Segmentation, Market Gridding

• Market Gridding, Market Segmentation

• Market Segmentation, Marketing Mix

• Marketing Mix, Market Gridding

9. The suite of processes implemented by a company to handle its contact with its customers is collectively known as:


• customer relationship management

• stakeholder mapping tools

• client management software

• client account monitoring

10. 'Positive elasticity of demand' refers to:


• goods for which sales volume is highly-sensitive to marketing activities.

• goods for which a higher price can increase demand.

• goods which attract a premium due to perceived environmental friendliness.

• goods for which sales are strongly affected by price changes.

11. Having staff in a central office contacting potential customers in the region giving brief details of special offers and answering queries is known as:


• telemarketing

• selling off-page

• selling off-screen

• direct mail

12. Marketing Communications affect 'brand equity'. Which of the following is a means of calculating the worth of a brand?


• Hard level

• Firm level

• Strong level

• Solid level

13. For what purpose does a marketing manager primarily use a SWOT analysis in devising a campaign?


• To compare a company's situation with that of its competitors

• To project the cost of the campaign

• To identify the product's target market

• To decide the best choice of the media in which to promote the product

14. Which of the following statements is/are true?

i)In marketing management, the terms 'exchange' and 'transaction' have different meanings.
ii)'Product life cycle' theory is the best way to predict sales.


• Both (i) and (ii) are true.

• Only (i) is true.

• Only (ii) is true.

• Neither is true.

15. A TV advertisement for a men's razor appears frequently during a sports broadcast on a satellite channel.  This is because:


• it is the cheapest form of advertising.

• it will enable it to reach the widest audience.

• women don't watch sports.

• a relatively high proportion of viewers will be in its target market.

16. In marketing management, which of the following factors creates a requirement for marketing information?


• The rise of global marketing

• Increased competition

• Price competition

• It is always required

17. If a supermarket wanted to promote a new product line, which of the following Marketing Communications would be most appropriate?


• Sales literature

• Point-of-sale

• Vehicle livery

• Local radio

18. Which one among the following is NOT a valid reason for a firm to initiate a price cut?


• Distinct market segments

• Drive to dominate the market through lower costs

• Declining market share

• Excess plant capacity

19. Which of the following statements is/are true of 'break even analysis'?

i)It tells the producer about the probable levels of profits at different levels of production.
ii)It indicates the interrelationship between revenue, cost volume, capital amount and marketing aspects.


• Both (i) and (ii) are true.

• Only (i) is true.

• Only (ii) is true.

• Neither is true.

20. As a marketing manager, which of the following methods would you choose to eradicate assumptions about the relationship among expenses, exposure levels, trial rates and regular usage?


• Objective and task

• Competitive parity

• Percentage of sales

• Market share

21. Which of the following statements is/are true?

i)Developing a rapport is detrimental in negotiations.
ii)Negotiations are invariably a zero-sum game.


• Both (i) and (ii) are true

• Only (i) is true

• Only (ii) is true

• Neither is true

22. As a marketing manager, under which of the following pricing policies would you categorize the setting of higher prices for a product during the initial stages of the product's introduction in the market?


• Price-penetration policy

• Price-skimming policy

• Price-discrimination policy

• Price-fixing policy

23. Which of the following sales administration procedures applies to a customer attempting to buy an expensive item using a credit card?


• Customer accounts

• Order processing

• Security

• Credit clearance

24. Which of the following is NOT a basic reason for resorting to the 'price-skimming policy'?


• Profit maximization in the shortest possible time

• Quick recovery of the investment made by the manufacturer

• Rectifying a possible error committed in setting the price

• Establishing the product's reputation in the market

25. Which of the following factors would NOT affect the effectiveness of a product's packaging:


• clarity of product information

• environmental friendliness

• aesthetic appeal of design

• celebrity endorsement

• All of the above would affect it

26. The 'marginal cost' comprises additional _________________ costs.


• average total

• variable

• social

• fixed

• indirect

27. The 'S' in SWOT analysis refers to:


• satisfaction

• strategies

• strengths

• sales

28. Which of the following are the most useful indices when setting the marketing objectives of a company?

iii)Share price
iv)Market share


• i, ii and iii

• i, ii and iv

• i, iii and iv

• ii, iii and iv

29. _________ is one of the activities (functions) performed in ___________.


• Marketing, selling

• Selling, marketing

• Production, selling

• Selling, production

30. The marketing manager, while deciding the product mix, has to take into account the width, length, depth and consistency of the product. ____________ refers to the total number of items offered. _____________ refers to the number of variants offered by each product line. ____________ refers to the number of the product lines in the product mix. _____________ refers to the Question of the affinity of the products to production, marketing and research.


• The consistency of the product, The width, The length, The depth of the product mix

• The length, The width, The depth of the product mix, The consistency of the product

• The length, The depth, The width of the product mix, The consistency of the product

• The width, The consistency of the product, The depth, The length of the product mix

31. Choose the correct order of the following steps required in the formulation of marketing strategy:

i)Selecting the most profitable marketing mix option
ii)Finding alternative marketing mix options
iii)Determination of marketing objectives
iv)Creating conditions for implementing the chosen marketing mix


• i, ii, iii, iv

• ii, iii, iv, i

• iii, ii, i, iv

• i, iv, ii, iii

32. Which of the following statements is/are true?

i)Marketers do not create demand, they only meet it.
ii)Political lobbying is a type of marketing communication.


• Both (i) and (ii) are true.

• Only (i) is true.

• Only (ii) is true.

• Neither is true.

33. If __________ is higher than __________, customers will be satisfied.


• the expectation, the perceived service

• the quality, the expectation

• the perceived performance, the expectation

• the service delivery, the perceived service

34. Which among the following are not functions performed by the management information system?


• Data Gathering and data processing

• Formulating hypotheses

• Storing and retaining data

• Disseminating information to marketing managers

35. Which of the following is a benefit of non-personal channels of communication?


• They encourage the flow of information from the consumer to the marketer

• They encourage a consumer to proceed through the AIDA model

• They make two-step flow of communication possible

• All of the above

36. Total 'sales variance' is calculated by adding sales ________ variance and sales _________ variance.


• volume and type

• price and volume

• type and price

• factor and type

37. Which of the following is/are not a source/sources of collecting secondary data for marketing research?


• Trade associations and other technical, financial and professional groups

• Internal sources such as reports, records, registers etc

• Census reports

• Personal interviews or field survey

38. Which of the following types of market structure defines 'Oligopoly'?


• Where there are many sellers and many buyers, but each seller's offering is somewhat different from the other's and each tries to differentiate his product from those of his competitors

• Where a few interdependent firms account for the bulk of an industry's sales. Each has a large number of the industry's customers and each tries to anticipate what others will do

• Where a firm has a patent on a process or a product for which there are no substitutes

• Where a large number of firms are competing for a single large buyer

39. Which of the following is not a type of marketing control?


• Profitability control

• Effectiveness control

• Efficiency control

• Annual plan control

• They all are

40. To plan her vacation, Samantha has to decide whether she should take a cruise, rent a beach apartment or go for trekking. As a tour operator, how would you perceive the competition among the three options?


• As industry-based

• As form-based

• As brand-based

• As market environment

• As generic

41. Put the following stages of negotiation in chronological order:

i)Closing and commitment
iv)Information exchange


• i, iii, ii, iv

• iii, iv, ii, i

• iv, ii, i, iii

• ii, iv, iii, i

42. In marketing management, ______________ a product refers to carving out a place for that product in the mind of the targeted customers.


• advertising

• planning

• producing

• designing

• positioning

43. Which of the following does not feature in Bruce Henderson's 'BCG Matrix' identifying different phases of a product in terms of growth and market share?


• Question marks

• Cash cows

• Dogs

• Dying swans

• Stars

44. Which of the following is NOT a reason to sell products via wholesalers?


• The manufacturer does not have to store the unsold stock.

• Transport costs for the manufacturer are reduced.

• It is more profitable than selling directly to consumers.

• Wholesalers have greater sales expertise.

45. Which of the following is/are NOT a method/methods of sales forecasting?


• Determination of sales territories

• Statistical methods

• Market survey method

• Sales force composite method

46. Which of the following statements is/are true for volume-based market segmentation?

i)Customers are grouped on the basis of the quantity of purchases made
ii)Customers are grouped on the basis of their number


• Both (i) and (ii) are true

• Only (i) is true

• Only (ii) is true

• Neither is true

47. _____________ do not possess the goods themselves; their main function is to bring the buyer and the seller together.


• Brokers

• Commission agents

• Auctioneers

• Common carriers

• All of the above

48. Which of the following factors is the most important to the marketing head if his product is facing stiff competition from a follower brand?


• Measuring customer satisfaction

• Fulfilling customer's needs

• Retaining customers

• Marketing environment

• Identifying customers' needs

49. Break-even analysis helps a firm determine the level of sales at which the total revenue will equal ____________, given the product's per unit selling price.


• the fixed costs

• the variable costs

• the total costs

• the opportunity costs

50. What is the next step for a marketer after identifying broad marketing objectives and developing promotion objectives?


• Distribution objectives

• Target market

• Sales and profit objectives

• Sales promotion objectives

51. Marketing strategy can be subdivided into __________.


• sales volume and profitability targets

• marketing objectives and marketing mix

• choice of markets and sales revenue

• marketing mix and selling objectives

52. Which of the following statements is/are true?

i)A 'consultative selling' approach is best applied to low-cost high-volume products.
ii)'Consultative selling' focuses on offering tailored solutions.


• Both (i) and (ii) are true

• Only (i) is true

• Only (ii) is true

• Neither is true

53. Which of the following is not included in the major strategic areas of marketing mix?


• Product

• Price

• Performance

• Promotion

• Place

54. Which of the following is not an external environmental factor or force affecting the marketing operations of a company?


• Suppliers

• The marketing department

• Social factors

• Political/Legal factors

55. Which of the following best explains the marketing-management process?


• Planning-Implementing-Controlling

• Planning-Advertising-Promotion-Segmentation

• Advertising-Sales Promotion-Public Relations

• Marketing-Decision Making-Information Gathering-Implementing-Controlling

56. Market positioning is not what a company's marketing team does to a/the ________ but it does to a/the__________.


• product, customer perception

• product distribution, customer perception

• product launching, customer's requirements

• customer, product

• product, advertising

57. The analysis of cost behavior in relation to the changing volume of sales and its impact on profits is known as 'break even' analysis. Output at a level below the break even point will result in__________ to the seller.


• a loss

• a profit

• bankruptcy

• neither a profit nor a loss

58. If a small independent retailer needed to stock small Quantities of a broad range of products, where would he source his stock from?


• A larger retailer

• A wholesaler

• Direct from the factories

• Through catalogues

59. In which of the following areas does Sales Forecasting help the management in making decisions?

i)Scheme of distribution

ii)Determination of sales forecast

iii)Drafting formal reports indicating alternative solutions

iv)Determination of sales compensation plans

v)Selection and training of the staff in the sales forecasting department


• i, ii and iii

• i, ii and iv

• i, ii and v

• ii, iii and iv

• ii, iii and v

• ii, iv and v

• iii, iv and v

60. What is Peter's objective in fixing the highest price on his product and services in the market when he knows that other companies would be launching similar products soon?


• To survive

• To maximize profit in the shortest possible time

• To capture maximum market share

• To establish the product's reputation in the market

61. Which of the following are major reasons for companies to sponsor sports events?

i)Free tickets to events
ii)Association of the brand with another desirable brand.
iii)Ensuring the event is able to go ahead.
iv)Exposure of the brand to a large audience.


• i and ii

• i and iii

• i and iv

• ii and iii

• ii and iv

• iii and iv

62. Which of the following is NOT an 'exogenous' factor affecting the effectiveness of a marketing campaign?


• The weather

• Placement

• Interest rate changes

• Government regulation

63. Which of the following refers to a sustained increase in the general level of prices?


• Deflation

• Disflation

• Inflation

• Reflation

64. Which of the following would be the best sales promotion method for a company trying to establish a brand and encourage repeat business?


• Competition

• A one-off special offer

• Free mail-ins

• Loyalty incentives

65. ____________ is concerned with identifying the capacity of the market to absorb a particular product.


• Market research

• Sales strategy

• Product design

• Quantitative analysis

66. 'Return on marketing investment analysis' should be used:


• to predict sales growth.

• to bill the manufacturer by a direct-marketing agency.

• to assess the effectiveness of a marketing campaign.

• to identify gaps in the market for new product lines.

67. The tube lights of Philips and of other companies are available in the market. All of them are of the same voltage and size, but the price of the Philips tube light is higher by $1. Why might certain customers still prefer to purchase the Philips product?


• Due to brand reputation

• Due to better technology (e.g. durability)

• Due to more effective marketing

• Due to wider availability

• All of the above

68. Which of the following is inevitable when the demand for a product is 'price elastic'?


• A price increase causes total revenue to increase

• A price increase causes the number of units sold to increase

• A price cut causes the number of units sold to increase

• A price increase causes total revenue to decrease

• A price cut has no effect on the number of units sold

• A price cut causes total revenue to decrease

69. Which of the following would best define Market Segmentation?


• The process of deciding and preparing the marketing program for the target market.

• The grouping of people on the basis of similar needs.

• The segregation of people by the level of consumption.

• The process of deciding the target market.

70. Marketing bridges the gap between _________ and _________.


• the consumer, the producer

• the management, the producer

• the consumer, the management

• the management, the sales department

• the producer, the sales department

71. What does the term 'Deep Assortment' mean, according to the Assortment Strategies for Wholesalers and Resellers?


• Carrying the line of only one manufacturer

• Carrying many unrelated product lines

• Carrying a product family in depth, drawing on many producers' output

• Carrying several product lines that fall within the resellers' type of business

72. Choose the correct order of the stages in the Product Life Cycle.


• Introduction stage, Market decline stage, Market maturity stage, Market growth stage

• Market growth stage, Market maturity stage, Introduction stage, Market decline stage

• Introduction stage, Market growth stage, Market maturity stage, Market decline stage

• Market decline stage, Introduction stage, Market growth stage, Market maturity stage

73. Marketing techniques that exploit pre-existing social networks to produce increases in brand awareness or achieve other marketing objectives are known as:


• grapevine marketing

• social marketing

• viral marketing

• word-of-mouth marketing

74. Which of the following sales methods would be best suited to customers who are unable to visit shops and want to buy a broad range of different types of products?


• Wholesale

• Catalogue

• Retail

• Door-to-door

75. Changing marketing conditions and environment factors have ________ effect on a company's marketing mix.


• no

• a partial

• a direct

• an indirect

76. As a sales person, Frank has to perform a number of tasks. Which term denotes the task of deciding which customers will get scarce products where demand outstrips supply?


• Targeting

• Delivering

• Allocating

• Distributing

77. What is the correct order of the important steps listed below in the process of market segmentation?

i)Assess the difference between one customer and another in terms of their needs.
ii)Group the customers into certain segments.
iii)Find out which segments would accept the product/service and can be considered natural targets of the company.
iv)Identify factors that influence the process of grouping certain customers into a particular segment.
v)Select those segments which offer higher potential.
vi)Estimate the likely purchases of the products of the company by each segment.


• i, ii, iii, iv, v, vi

• i, iv, ii, iii, vi, v

• i, v, iv, iii, ii, vi

• ii, v, iv, iii, i, vi

78. Which of the following is NOT a reason to use direct-selling methods?


• The high margin added by wholesalers and retailers

• The manufacturer can demonstrate the product

• Wholesalers and retailers are reluctant to stock the product

• Consumers are spread over a large area and difficult to reach