MKT501 (50 Solved MCQs )

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Question No: 1

Which of the following is a controllable factor for marketers?Select correct option:

CompetitionTechnologyCorpore culture (correct)

Economy

Reference :(Page # 12)

CONTROLLABLE FACTORSSuch are factors, which are directed by top management and marketers Although, top

management takes all

decisions but five are directly affecting markets.

a) Line of business: This consists of goods and services category, functions geographiccoverage,

type of ownership and specific business of the company.

b) Overall objectives: Numerical goals, etcc) Role of Marketing: Importance and integration of services

d) Corporate culture: the conditions that exist inside the organization

UNCONTROLLABLE FACTORSTheses are pertaining to External conditions. Such as

a) Consumers: their characteristics, incomes, status, race, education etc.

b) Competition: What are they doing and planning, their research, policies and strategies etc.

c) Government: The legislation; laws, rules, controls, policies, framework, international laws

etc.d) Economy: The rate of growth, sectoral factors, the trends and many other things.

e) Technology: The research, methods, machines, equipment etc.f) Media: The independence of media, the public opinion, the information mode etc.

Question No: 2

A firm is developing a new product and has placed the advertisement of the product. The

firm is at which stage of the new product development process?Select correct option:

Commercialization Concept (Correct)development Beta testing

Business Analysis

Reference:

(page # 29)

Commercialization

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o launch the product

o produce and place advertisements and other promotions

o fill the distribution pipeline with product

o critical path analysis is useful at this stage

Question No: 3

Relationship marketing is also known as:

Select correct option:Brand marketing

Value marketing

Loyalty marketing (Correct)

Experiential marketing

Reference:(Page # 5)Relationship Marketing focuses on establish and building long term relationship between the

company and customer. We also call it loyalty marketing.

Question No: 4

The loyalty marketing focuses on establishing long term relationship between:

Select correct option:

Company and retailerRetailer and customer

Retailer and consumerCompany and customer

Reference:

(page # 5)

Relationship Marketing focuses on establish and building long term relationship between thecompany and customer. We also call it loyalty marketing.

Question No: 5

Aggressive pricing is associated with which of the following stage of product life cycle? Introduction

Growth

Maturity (Correct) Decline

Solved By Naila ([email protected])

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according to me answer is maturity...

for reference

def of aggresive pricing:Aggressive pricing intended to drive out competitors from a market. Itis illegal in some places.(wikipedia)

Maturity stage Prices tend to drop due to the proliferation of competing products......or price is

set such tht to drive competitors out of market.

Question No: 6

Which of the following is NOT an objective of discounts?

Reward valuable customers

Reward competitors

Move out-of-date stock

Increase short-term sales

Reference

Page # 44 and lesson # 21The Purpose of Discounts is to

Increase short-term sales,

Move out-of-date stock, Reward valuable customers,

Encourage distribution channel members to perform a function.

Question No: 7

3/10 net 30 is an example of which of the following?

Seasonal discount

Trade discount

Quantity discount

Cash discount (Correct)

Reference

Page # 44 and lesson # 21

Explanation3/10 net 30 - this means the buyer must pay within 30 days, but will receive a 3% discount if

they pay

within 10 days.

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Question No: 8

Market price is also known as:

Effective price (Correct)

List price

Retail price

Wholesaler price

ReferencePage # 44 and lesson # 21

The market price (also called effective price) is the amount actually paid.

Question No: 9

Which of the following best describes 3/10 net 40 ROG?

The buyer must pay within 10 days of receipt of goods but will receive 3% discount if

paid in 10 days

The buyer must pay within 3 days of receipt of goods but will receive 10% discount ifpaid in 40 days

The buyer must pay within 10 days of receipt of goods but will receive 3% discount if

paid in 40 days

The buyer must pay within 40 days of receipt of goods but will receive 3%

discount if paid in 10 days (Correct)

ReferencePage # 45 and lesson # 21

2/15 net 40 ROG - this means the buyer must pay within 40 days of receipt of goods, but willreceive a 2%discount if paid in 15 days.

Question No: 10

Which of the following is also known as accumulation discounts?

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Trade discount

Non-cumulative quantity discount

Cumulative quantity discount

Quantity discount (Correct)

Reference

Page # 45 and lesson # 21Quantity discounts - These are price reductions given for large purchases. The rationale

behind them is

to obtain economies of scale and pass some (or all) of these savings on to the customer. Insome industries,

buyer groups and co-ops have formed to take advantage of these discounts. Generally there are

two types:

Cumulative quantity discounts (also called accumulation discounts). These are pricereductions based on

the quantity purchased over a set period of time. The expectation is that they will impose animplied

switching cost and thereby bond the purchaser to the seller.

Question No: 11

A company is providing warehousing facility to its channel members. The company is

using which of the following?

Seasonal discount

Trade discount (Correct)

Quantity discount

Cash discount

Reference


Trade discounts (also called functional discounts) These are payments to distribution channel members for performing some function . Examplesof these

functions are warehousing and shelf stocking.

Question No: 12

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Which of the following firms emphasizes on products benefits to the customers ratherproduct attributes?

Product oriented

Market oriented (Correct)

Sales oriented

Production oriented

Reference & Explanation:

what is Product Attributes?"Attributes" are simply properties of a given product, brand, service, advertisement or any

object of interest. A product can have many attributes including cost, value for money,

prestige, taste, usability, liking ("affect") and a wide range of image or personality attributes.

Product Orientation:

Product orientation is where the main focus is the product and not the market. A product ismade so that it meets its own needs and not that of the markets, the needs of the customers are

secondary to that of the products. A good example could be the buggati veyron, it was only

created to prove it could be done and the market is so small that looking at that is irrelevant.(www.tutor2u.net )

Market Orientation:

Business approach or philosophy that focuses on identifying and meeting the stated or hiddenneeds or wants of the customers, through its own or acquired products.

(www.businessdictionary.com)

Marketing orientation is the most outward oriented out of these three, towards the customers.

Needs, perceptions, values of customer play greater role in decision making for thesecompanies.

(www.marketingprofs.com)

Sales orientation:Sales orientation focuses on their sales force, its ability, capacity to sell, costs of sales

operations rather than customer needs.(www.marketingprofs.com)

Production orientation:

Production orientation pertains to mental model of top executives of any company whichattempts to sell what they can produce. Here the focus is on production and production

capabilities rather than on the customer needs

(www.marketingprofs.com)
http://www.tutor2u.net/http://www.tutor2u.net/http://www.businessdictionary.com/http://www.marketingprofs.com/http://www.marketingprofs.com/http://www.marketingprofs.com/http://www.tutor2u.net/http://www.businessdictionary.com/http://www.marketingprofs.com/http://www.marketingprofs.com/http://www.marketingprofs.com/

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Book Reference:


Conclusion:Its answer should be market oriented.

Product orientation means your main focus is on the qualities of that product. Not onwhat market and people are looking for.

Market orientation is when your main focus is benefits to people or market.

Q

uestion No: 13

Which of the following is NOT a technique of measuring customer satisfaction and

monitoring customers complaint?

Customer complaints database Web and telephone information hotlines

Exit interviews

Business analysis (Correct)

Reference:


Customer satisfaction and complaint monitoring procedures, including; exit interviews,

customercomplaints database, and Web and telephone information hotlines.

Question No: 14

The phenomenon, when a customer dislikes a product and talks against the product, is

termed as:

Propaganda

Unfavorable environment

Bad mouth (Correct)

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Bad impression

Reference:


The customer still may not fully like the product and have what we calls bad-mouth. Badmouth is when a customer talks not in favours of the product. Bad mouth travels fast.

Question No: 15

Products that are usually purchased due to adversity and high promotional back up

rather than desire are called:

Sought goods

Unique goods

Unsought goods (Correct) Preferred goods

Reference:


THE SELLING CONCEPT

This concept emphasizes on aggressive selling and high promotional back up. Selling,concept is practical on what we call as unsought goodssuch as insurance, encyclopedia

etc. At most times, the selling concept is practical by managers having uniqueness andovercapacity. Their aim is to sell what they canmake rather that what the market needs. The

customer still may not fully like the product and havewhat we calls bad-mouth. Bad mouth is

when a customer talks not in favours of the product. Bad mouth travels fast.

Question No: 16

A customer requirement about any product in which he/ she needs to avail core featuresin that product, is called:

Real need

Stated need (Correct)

Unstated need Delighted need

Reference:


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CONSUMER NEEDIt is not always simple. It is difficult to correctly ascertain. A customer says. I want an

inexpensive car what is he saying? He wants a car that is not expensive. So he needs a car butnot expensive compared to his income. Needs are

a. Stated need (an inexpensive Car)

b. Real need (wants a car which is lower in maintenance)c. Unstated need (he wants a strong car)d. Delighted need (he wants a road map of his country)

e. Secret need (he wants image in that car)

Question No: 17

W

hich of the following is NOT an aggressiveness strategy?

Harvesting Building

Intensification (Correct) Holding

Reference:


Aggressiveness Strategies - This asks whether a firm should grow or not, and if so, how fast.

One scheme divides strategies into:o building

o holding

o harvesting

Question No: 18

Which of the following is NOT a type of innovation strategy?

Pioneers

Challengers (Correct) Close followers Late followers

Reference:


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Innovation Strategies- This deals with the firm rate of new product development and

business model innovation. It asks whether the company is on the cutting edge of technology

and business innovation. There are three types:o pioneers

o close followers

o late followers

Question No: 19

Customers viewpoint on a firms products and services can be improved through:

Experiential world of customers

Experiential innovation (correct)

Customer interface

Building experiential platform


Experiential world of customers:

Get to know customer needs, wants and lifestyles (page # 5)Experiential innovation:

Anything that can improve customers own viewpoint on your products and

services. (page # 6)

Structure customer interface:

All intangibles such as ordering, delivery, attitude behavior (page # 6)

Building experiential platform:

Connecting strategy and implementation

Connecting customers expectations (page# 6)

Question No: 20

Which of the following is Not a component of a marketing plan?


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Marketing advantages (correct Answer)

Environmental analysis

Executive summary

Marketing implementation


(http://webcache.googleusercontent.com/s ... l=en&gl=p)

Question No: 21

The _____ is the central instrument for directing and coordinating the marketing effort.


Business plan

Production plan

Market plan (correct)

Selling plan

References:

http://www.docstoc.com/docs/16477755/marketing-plan/

http://www.citeman.com/418-the-central- ... -planning/

Question No: 22

Which of the following is NOT an example of variable cost?


Rent of factory (correct)

Raw material

Power

Transport

Reference:

(Page # 48)

Any costs incurred by a firm may be classed into two groups:

Fixed Cost and Variable Cost.
http://webcache.googleusercontent.com/search?q=cache%3Aj-DMx26sE9oJ%3Awww.jpec.org%2Fhandouts%2Fjpec33.pdf+component+of+a+marketing+plan&hl=en&gl=pkhttp://www.docstoc.com/docs/16477755/marketing-plan/http://www.citeman.com/418-the-central-role-of-strategic-planning/http://webcache.googleusercontent.com/search?q=cache%3Aj-DMx26sE9oJ%3Awww.jpec.org%2Fhandouts%2Fjpec33.pdf+component+of+a+marketing+plan&hl=en&gl=pkhttp://www.docstoc.com/docs/16477755/marketing-plan/http://www.citeman.com/418-the-central-role-of-strategic-planning/

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Fixed costs are incurred by the business at any level of output. These may include

Equipment maintenance

Rent Wages

General upkeep

Variable costs change with the level of output, increasing as more product is generated. Materials consumed during production Power

Transport

Question No: 23

Warehousing facility to channel members is an example of:


Seasonal discount

Trade discount (correct)Quantity discountCash discount

Reference:(Page # 45)

Trade discounts (also called functional discounts)

These are payments to distribution channel members for performing some function . Examples

of thesefunctions are warehousing and shelf stocking.

Question No: 24 (solved by Samina)

Which of the following are the people who purchase new products almost as soon as theproducts reach the market?

Innovators (correct)

Late majority

Early majority

Late adopters


Page no 33 of handouts

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An innovation refers to anything perceived by some one as new. It may have along history of innovating product. But in true sense its an Innovation to theperson, who sees it and it is he who spreads it through a social system.

Question No: 25 (solved By Samina)

Which of the following is NOT one of the stages that customers go through in the processof adopting a new product?

Desire (Correct)

Awareness

Evaluation

Interest

FIVE SUCH STAGES HAVE BEEN OBSERVED

AWARENESS: this stage is when a consumer hears about an innovation, but lacks

information about it

INTEREST: the consumer is stimulated to seek information about the innovation

EVALUATION: this is when the consumer decides whether to use the product or not

TRIAL: the consumer tries the product to estimate the value of innovation

ADOPTION: this is when the consumer adopts to use the product on regular basis and use

the innovation

Question No: 26 (Solved by Samina)

Which product is MOST likely to be purchased through routine decision making?

Television set

Soft drink (Correct)

Shirt

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Car

Question No: 27

Which of the following part of a marketing plan defines the plans financial and

marketing goals in terms of sales volume, market share and profit?

Marketing strategy (Correct)

Action programs

Issue analysis

Objectives

Reference & Explanation:Page # 17

a) Marketing Strategy - Product

Product mix, product strengths and weaknesses, perceptual mapping, product life cyclemanagement and new product development, brand name, brand image, and brand equity, the

augmented product, and product portfolio analysis are now easy to establish

b) Marketing Strategy PricingPricing objectives, pricing method (eg.: cost plus, demand based, or competitor indexing),

pricing strategy (eg.: skimming, or penetration), discounts and allowances, price elasticity and

customer sensitivity, price zoning, break even analysis at various prices

c) Marketing Strategy PromotionPromotional goals, promotional mix, advertising reach, frequency, flights, theme, and media,

sales force requirements, techniques, and management, sales promotion, publicity and public

relations, electronic promotion (eg.: Web, or telephone)d) Marketing Strategy - Distribution

Geographical coverage, distribution channels, physical distribution and logistics, electronic

distribution etc must be earmarked

Question No: 28

Which of the following has a quick response towards a new product?

Opinion leaders

Late majority

Early majority

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Early adopters (Correct)


Page # 34 of hanouts

One who are early adopters. They are very quick in their response. These people are venture

some and

willing to try new ideas. In fact they are innovators in life and early adopters.

Question No: 29 (Solved by Samina)

Which of the following is about managing strategically the customers entire experience

with the product and company?

Customer experience management (Correct)

Customer retention management

Customer life-time value management

Customer relationship management


CUSTOMER EXPERIECENE MANAGEMENT (CEM)

This term is related to managing strategically customers entire experience with the productand company.

Question No: 30

Identify the other name for global market.

Consumer market

Import market

Export market (correct)

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Government market

Question No: 31

A seller wants payment from buyer within 10 days of sales (whereas customer can made

payment within 30 days) and offers 4% discount if payment is made within 10 days.

What type of cash discount will be suitable?

4/10 net 30 (correct)

10/4 net 30

10/30 net 4

4/30 net 10


Page # 44

Cash discounts for prompt payment - These are intended to speed payment and thereby

provide

liquidity to the firm. They are sometimes used as a promotional device.

2/10 net 30 this means the buyer must pay within 30 days, but will receive a 2% discount ifthey pay within 10 days.

Question No: 32

Which of the following price is quoted to a potential buyer, usually in written form?

Wholesale price

Market price

List price (correct)

Retail price


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Page # 44 of handouts

Discounts and allowances are reductions to a basic price.

They could modify either the manufacturer's list price (determined by the manufacturer and

often printed on the package), the retail price (set by the retailer and often attached to theproduct with a sticker), or the list price (which is quoted to a potential buyer, usually in written

form).

Question No: 33

Which of the following is the first step in writing a marketing plan?

Situation analysis

Opportunity and threat analysis

Executive summary (Correct)

Market analysis


(Page # 16)Executive Summary

The Plan should open with a brief summary of the plans most important Goals and

Recommendations. The summary can be expressed like in a brief statement, increase sales by10% this year or reduce expenses by 5 % or say will enter UK market this year etc.

Question No: 34

Process engineering skills are required for the successful implementation of which of the

following strategy?

Market segmentation strategy

Market dominance strategy Differentiation strategy

Cost leadership strategy (Correct)


Page # 21COST LEADERSHIP STRATEGY

This strategy emphasizes efficiency. By producing high volumes of standardized products, thefirm hopes to take advantage of economies of scale and experience curve effects. The product

is often a basic no-frills product that is produced at a relatively low cost and made available to

a very large customer base. Maintaining this strategy requires a continuous search for costreductions in all aspects of the business. To be successful, this strategy usually requires a

considerable market share advantage or preferential access to raw materials, components,

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labour, or some other important input. Without one or more of these advantages, the strategy

can easily be mimicked by competitors. Successful implementation also benefits from:

process engineering skills products designed for ease of manufacture

sustained access to inexpensive capital

close supervision of labour tight cost control incentives based on quantitative targets

Question No: 35

Any tangible thing that can be offered to a market for attention, acquisition, use, or

consumption that might satisfy a want or need is called: Service

Product (Correct) Demand

Idea

Reverence & Explanation:(Page # 24)

In marketing, a product is anything that can be offered to a market that might satisfy a want orneed. However it is much more than just a physical object. It is the complete bundle of benefits

or satisfactions that buyers perceive they will obtain if they purchase the product.

It is the sum of all physical, psychological, symbolic, and service attributes.

Question No: 36

Luxury products, such as Rolex watches, are also known as:

Shopping product (Correct) Convenience product

Emergency product

Specialty product


Shopping Goods: some comparison with other goods

Convenience Goods: purchased frequently and with minimal effort, often referred to as

FMCG

(Fast Moving Consumer Goods)

Emergency Goods: goods required immediately

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Specialty Goods: extensive comparisons with other goods and a lengthy information search

Question No: 37

Which of the following is NOT a decision required in commercialization?

Why to launch the product? (correct) How to launch the product?

Where to launch the product?

When to launch the product?

Reference & Explanation:(Page # 31)

COMMERCIALIZATION

THIS IS THE MOST CRUCIAL DECISION BY MARKETING MANAGERS It involves cost to the maximum

It is the beginning of a long journey of the product No mistake of even a minor nature is acceptable or admissible.The process of commercialization is defined as a series of steps to be taken by the marketing

management towards bringing this new product to the markets and to the consumers Some of

the major decisions have to be taken and strategies devised to launch and make productsuccessful

at the very outset. The decisions required are:

WHEN TO LAUNCH THE PRODUCT? WHERE TO LANCH THE PRODUCT?

TO WHOM TO LAUNCH THE PRODUCT?

HOW TO LAUNCH THE PRODUCT?

Question No: 38

Which of the following is the spread of idea from the source of invention to the ultimate

user or consumers?

Innovation adoption process

Innovation diffusion process (Correct)

Adoption process New product recognition


Page # 33INNOVATION DIFFUSION PROCESS has been defined as

The spread of idea from the source of invention or creation to the ultimate user or

consumers.

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Question No: 39

Which of the following is essential requirement for medicines and drugs?

Secondary packaging

Primary labeling

Decorative packaging Mandatory labeling (Correct)


MANDATORY LABELINGMandatory labeling is the requirement of consumer products to state their ingredients or

components. Moral purchasing and avoidance of health problems like allergies are two things

which are enabled by labeling. It is mandated in most developed nations, and increasingly in

developing nations, especially for food products.

Question No: 40

Which of the following brands cost more than other products in the category?

Premium brand (Correct) Economy brand

Fighting brand

Corporate brand


(Page # 37)A Premium Brand typically costs more than other products in the category.

An Economy brand is a brand targeted to a high price elasticity market segment.

A fighting brand is a brand created specifically to counter a competitive threat.When a company's name is used as a product brand name, this is referred to as Corporatebranding

Question No: 41

Which of the following is a brand created and owned by a large retailer of a

product after purchasing in large quantity from manufacturer?

Co-brand

Private brand (Correct) Manufacturer's brand

Licensed brand

Reference &Explanation:

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When large Retailers buy products in bulk from manufacturers and put their own brand name

on them, this is called Private Branding, store brand, or private label.

Question No: 42

Which of the following is the packaging objective, in which small products are grouped

together in one package for the reasons of efficiency? Information transmission

Agglomeration (Correct) Physical protection

Theft reducing


Agglomeration - Small objects are typically grouped together in one package for reasons ofefficiency. For example, a single box of 1000 pencils requires less physical handling than 1000single pencils. Alternatively, bulk commodities (such as salt) can be divided into packages that

are a more suitable size for individual households.

Question No: 43

Which of the following is a pricing technique used by retailers? Costpush pricing

Cost-plus pricing (Correct)

Demand- push pricing

Demand- pull pricingReference & Explanation:

(Page # 42)

The pricing technique used by most retailers is cost-plus pricing.

Question No: 44

A company wants prompt payment from the customers. What type of discount will be

suitable for the company? Seasonal discount

Trade discount Quantity discount

Cash discount (Correct)Reference & Explanation:

(Page # 44)

Cash discounts for prompt payment - These are intended to speed payment and therebyprovide

liquidity to the firm.

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Question No: 45

Which of the following markets involve decisions such as: what country to enter in, how

to enter, how to adopt their product and services and how to price?

Consumer markets Business markets

Global markets (Correct) Non profit markets


(Page # 3)

GLOBAL MARKETSThis is when we talk beyond frontiers; marketers are faced with tougher decisions for global

markets. Export of product is in itself a major undertaking. Which country to enter? How to

enter? How to Price? How to communicate? are just a few important and underlying decisions.Legal system, styles of negotiation; currency situation, political situation etc a few others to be

considered by the marketer.

Question No: 46

The basic human requirement defines which of the following?

Need (Correct)

Demand Want

Satisfaction

Reference & Explanation

(Page # 5)Needs can be described as human requirements.

Question No: 47

Willingness and ability to buy the product leads towards which of the following?

Demand (Correct) Need

Want Market


(Page # 5)Want becomes a demand when backed up by an individuals ability to pay for it.

Question No: 48

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Which of the following is NOT a technique used by marketers to understand thecustomers?

Focus group

Commercialization (Correct)

Web and telephones Surveys


(Page # 7)

Techniques that firms use to understand the customer include: Quantitative marketing research - such as; surveys and questionnaires

Qualitative marketing research - such as; focus groups and advisory panels

Market research and industry research - such as; Porter 5 forces analysis Face-to-face meetings with customers

Face-to-face meetings with frontline staff - sales reps, clerks, and receptionists

Customer complaints department

Customer hotlines - Web and telephone Visits to customers' facilities

Frequent user programs and databases

User groups - Beta testing Conferences

Question No: 49

Which of the following is NOT a distribution decision?

Inventory management

Personal selling Warehousing Distribution centers


(Page # 15)

Distribution (Place) DecisionsDistribution is about getting the products to the customer. Some examples of distribution

decisions include:

Distribution channels Market coverage (inclusive, selective, or exclusive distribution)

Specific channel members

Inventory management Warehousing

Distribution centers

Order processing

Transportation Reverse logistics

Question No: 50

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Order processing decisions are related to which of the following? Product

Price Distribution

Promotion

Reference & Explanation:(Page # 15)Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution

decisions include: Distribution channels

Market coverage (inclusive, selective, or exclusive distribution)

Specific channel members Inventory management

Warehousing

Distribution centers

Order processing Transportation

Reverse logistics

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