1. What is the main purpose of ‘market research’?
A. To develop new products without customer input.
B. To gather information about customers, markets, and competitors to inform marketing decisions.
C. To set product prices.
D. To design advertising campaigns.
2. The ‘product’ in the marketing mix refers to:
A. Only the tangible good offered to customers.
B. The brand name and packaging only.
C. Anything offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need, including services, experiences, and ideas.
D. The price charged for the item.
3. What is the main difference between the selling concept and the marketing concept?
A. The selling concept focuses on customer needs, while the marketing concept focuses on the product.
B. The selling concept starts with the product and focuses on aggressive selling, while the marketing concept starts with the market and focuses on customer satisfaction.
C. The selling concept aims for long-term customer relationships, while the marketing concept prioritizes short-term sales.
D. The selling concept is customer-centric, while the marketing concept is product-centric.
4. Which type of research involves observing and interacting with consumers in their natural environment?
A. Survey research
B. Experimental research
C. Ethnographic research
D. Focus group research
5. What is the primary goal of customer lifetime value (CLV) analysis?
A. To determine the cost of acquiring a new customer.
B. To forecast the total profit a company can expect from a particular customer over the entire duration of their relationship.
C. To measure customer satisfaction levels.
D. To identify potential market segments.
6. Which of the following is a key component of the societal marketing concept?
A. Maximizing short-term profits.
B. Focusing solely on customer satisfaction.
C. Considering long-run welfare of consumers and society.
D. Increasing production efficiency.
7. Which of the following best illustrates the concept of ‘customer equity’?
A. The total revenue generated from all customers in a given year.
B. The sum of all discounted future customer lifetime values of a firm’s current and potential customers.
C. The market share a company holds.
D. The combined value of a company’s brand equity and physical assets.
8. A company decides to offer a high-quality product with excellent customer service at a premium price. This strategy is most closely related to which marketing orientation?
A. Production orientation
B. Product orientation
C. Selling orientation
D. Marketing orientation
9. A company that practices ‘partner relationship management’ is most likely focused on:
A. Developing stronger relationships with its employees.
B. Improving its internal operational efficiency.
C. Working closely with suppliers, distributors, and other partners in the marketing channel.
D. Increasing its advertising budget.
10. Which of the following is NOT considered one of the traditional ‘4 Ps’ of the marketing mix?
A. Price
B. People
C. Promotion
D. Place
11. When a company analyzes internal company records, such as sales data, customer databases, and website traffic, it is utilizing:
A. Secondary data analysis
B. Primary data collection
C. Internal databases
D. Observational research
12. Which element of the marketing mix is concerned with product availability at convenient locations?
A. Product
B. Price
C. Promotion
D. Place
13. What is the primary purpose of market segmentation?
A. To create a single marketing strategy for all customers.
B. To divide a broad consumer or business market into sub-groups of consumers based on shared characteristics.
C. To eliminate competition.
D. To increase production volume.
14. Which of the following best describes ‘undifferentiated marketing’?
A. Targeting multiple specific market segments with tailored offers.
B. Appealing to the entire market with one offer, focusing on common needs rather than differences.
C. Focusing on a very small, specific segment of the market.
D. Creating distinct marketing mixes for each customer.
15. A company uses a marketing strategy that aims to create a strong brand image and unique value proposition for a specific customer segment. This is an example of:
A. Mass marketing
B. Differentiated marketing
C. Undifferentiated marketing
D. Niche marketing
16. What does ‘positioning’ mean in marketing?
A. The location of a product in a retail store.
B. The act of placing a product on the market.
C. The way a product is defined by consumers on important attributes relative to competing products.
D. The price point of a product.
17. The ‘marketing mix’ refers to:
A. The company’s financial projections.
B. The set of controllable, tactical marketing tools that a firm uses to produce the response it wants in the target market.
C. The analysis of competitor strategies.
D. The company’s overall strategic plan.
18. According to the marketing concept, which of the following is the best description of a company’s objective?
A. To sell more of their existing products.
B. To make a profit by creating and delivering customer value.
C. To achieve the highest possible market share.
D. To produce goods efficiently.
19. Which of the following describes ‘target marketing’?
A. The process of identifying the most profitable customers.
B. The evaluation of each market segment’s attractiveness and selecting one or more segments to enter.
C. The attempt to appeal to the entire market with one offer.
D. The development of product features.
20. Customer relationship management (CRM) is best described as:
A. A strategy for acquiring new customers only.
B. A system for tracking sales leads.
C. The process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
D. A method for reducing production costs.
21. What is the term for a marketing strategy that uses a brand name to launch new or modified products in a new category?
A. Brand extension
B. Line extension
C. Multi-branding
D. New brands
22. Which promotional tool involves personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships?
A. Advertising
B. Sales promotion
C. Public relations
D. Personal selling
23. A company decides to offer a product at a very low price to attract a large number of buyers and win a large market share quickly. This strategy is known as:
A. Value-added pricing
B. Penetration pricing
C. Cost-plus pricing
D. Dynamic pricing
24. Which marketing concept holds that consumers will favor products that are readily available and affordable?
A. Product concept
B. Selling concept
C. Marketing concept
D. Production concept
25. According to the marketing principle of the Product Life Cycle, which stage is characterized by a focus on building brand preference and increasing market share, often with increased promotional spending and competitive pricing?
A. Introduction
B. Growth
C. Maturity
D. Decline
26. Product line extension is a strategy where a company uses a successful brand name to launch new or modified products in a new category. Which of the following is an example of a product line extension?
A. Introducing a new flavor of an existing soft drink.
B. Launching a new brand of yogurt under the same parent company.
C. Using the ‘Dove’ brand name for soap, shampoo, and deodorants.
D. Creating a new camera brand to compete with Sony.
27. Which of the following best defines ‘marketing myopia’?
A. Focusing too much on competitor actions.
B. Defining marketing narrowly based on what a firm makes rather than what customers need.
C. Ignoring the importance of product quality.
D. Over-reliance on price competition.
28. What is the term for a group of firms that market similar products or services, often competing for the same customers?
A. Market segment
B. Industry
C. Market niche
D. Target audience
29. Which of the following is a key characteristic of a ‘convenience product’ in consumer buying behavior?
A. Consumers spend considerable time and effort in gathering information and evaluating alternatives.
B. Consumers buy frequently, immediately, and with minimal comparison and buying effort.
C. Consumers are willing to make a special purchasing effort to get the unique characteristics of a product.
D. Consumers rarely purchase them, and usually only after careful consideration of price and quality.
30. What is the term for a company’s total product offering to a market?
A. Brand portfolio
B. Product line
C. Marketing mix
D. Product mix
31. Which element of the marketing mix refers to all activities a company undertakes to promote and protect its product?
A. Product
B. Price
C. Place
D. Promotion
32. What is the primary goal of direct marketing?
A. To build long-term brand awareness through mass media.
B. To generate an immediate and measurable response from targeted customers.
C. To create a consistent brand image across all touchpoints.
D. To foster customer relationships through personal selling.
33. What is the main advantage of using a multichannel distribution strategy?
A. To simplify inventory management.
B. To reach a wider range of customers by using multiple channels.
C. To reduce the cost of each transaction.
D. To ensure consistent brand messaging across all channels.
34. When a company prices its product based on the costs of producing, distributing, and selling the product plus a fair rate of return for effort and risk, it is using:
A. Value-based pricing
B. Competition-based pricing
C. Cost-based pricing
D. Market-driven pricing
35. When a company uses an exclusive distribution strategy, it means:
A. The product is available in every possible outlet.
B. The product is sold through only one or a few intermediaries in a particular geographic area.
C. The product is sold through a limited number of outlets.
D. The product is sold directly to the consumer without intermediaries.
36. When a manufacturer sells its products through intermediaries like wholesalers and retailers, it is utilizing which type of distribution channel?
A. Direct distribution
B. Indirect distribution
C. Exclusive distribution
D. Intensive distribution
37. What is the primary purpose of market segmentation?
A. To create a single marketing mix that appeals to all consumers.
B. To divide a broad consumer or business market into sub-groups of consumers with common needs.
C. To eliminate competition by targeting niche markets exclusively.
D. To ensure that all products are priced identically.
38. Brand equity is best described as the differential effect that brand knowledge has on consumer response to the marketing of that brand. Which of the following is a component of brand equity?
A. Product packaging
B. Price elasticity
C. Brand loyalty
D. Distribution intensity
39. Which pricing strategy involves setting a low initial price for a new product to attract a large number of buyers and win a large market share quickly?
A. Price skimming
B. Penetration pricing
C. Psychological pricing
D. Bundle pricing
40. When a company introduces a new product at a high initial price to recover research and development costs quickly, what pricing strategy is it employing?
A. Penetration pricing
B. Skimming pricing
C. Psychological pricing
D. Bundle pricing
41. When evaluating market segments, which factor relates to the company’s ability to reach and serve the segment effectively?
A. Measurability
B. Accessibility
C. Substantiality
D. Actionability
42. Which of the following is NOT a common basis for segmenting consumer markets?
A. Geographic location
B. Psychographic characteristics
C. Company’s internal financial performance
D. Behavioral patterns
43. Which type of positioning focuses on the specific benefits a product offers to the customer?
A. Company positioning
B. User positioning
C. Benefit positioning
D. Competitive positioning
44. A company that aims to be the leader in customer service in its industry is using what form of differentiation?
A. Product differentiation
B. Channel differentiation
C. Service differentiation
D. Image differentiation
45. Behavioral segmentation categorizes consumers according to their:
A. Social class and cultural background
B. Product knowledge, attitude, and usage
C. Geographic regions and population density
D. Income level and occupation
46. Which of the following is a common basis for product differentiation?
A. Product price
B. Product design and features
C. Product availability
D. All of the above
47. A company decides to focus all its marketing efforts on a single, well-defined market segment. This approach is known as:
A. Niche marketing
B. Mass marketing
C. Undifferentiated marketing
D. Multisegment marketing
48. Which of the following best describes the concept of ‘market segmentation’ in marketing principles?
A. Dividing a broad consumer market into sub-groups of consumers with common needs and priorities, and then designing and implementing strategies to target them.
B. Creating a unique name and image for a product in the consumers’ mind, mainly through advertising and promotions.
C. The process of establishing the features and benefits of a product or service that differentiate it from competitors.
D. Identifying and analyzing the main competitors in a particular market to understand their strengths and weaknesses.
49. What does it mean for a market segment to be ‘actionable’?
A. The segment’s size and purchasing power can be measured.
B. The segment can be effectively reached and served by the company.
C. The segment is large enough to be profitable.
D. The segment is different from other segments.
50. A ‘positioning statement’ typically includes which of the following elements?
A. Target audience, brand name, point of difference, and reason to believe.
B. Competitor analysis, market share, and pricing strategy.
C. Product features, benefits, and customer demographics.
D. Marketing budget, promotional plan, and sales forecast.
51. Psychographic segmentation groups consumers based on their:
A. Geographical location and climate
B. Purchasing power and economic status
C. Lifestyle, personality traits, and values
D. Product usage, loyalty, and readiness to buy
52. Which positioning strategy focuses on offering customers the lowest prices in the market?
A. Quality positioning
B. Service positioning
C. Price positioning
D. Benefit positioning
53. What is the concept of ‘differentiation’ in marketing?
A. Making a product identical to competitors to reduce costs.
B. Creating a unique value proposition that sets a product apart from competitors.
C. Targeting the largest possible market segment.
D. Reducing the number of product features to simplify production.
54. Demographic segmentation divides the market based on variables such as:
A. Lifestyle, values, and personality
B. Attitudes, opinions, and interests
C. Age, income, gender, and education
D. Usage rate, brand loyalty, and benefits sought
55. When a company creates an image for its product in the minds of target consumers relative to competing products, it is engaging in:
A. Market segmentation
B. Market differentiation
C. Market positioning
D. Market entry
56. What is the primary goal of market segmentation?
A. To offer a single product to all customers.
B. To understand and meet the diverse needs of customers more effectively.
C. To reduce production costs by standardizing products.
D. To increase competition within the market.
57. When a company targets multiple market segments with a distinct marketing mix for each, what is this strategy called?
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
58. For effective market segmentation, a segment must be substantial, meaning it must be:
A. Easily accessible to the company’s marketing efforts.
B. Large enough or profitable enough to be worth serving.
C. Distinct from other market segments.
D. Actionable by the company.
59. A company emphasizes the superior quality and performance of its product over competitors. This is an example of:
A. Convenience positioning
B. Feature positioning
C. Quality positioning
D. Value positioning
60. The process of evaluating the attractiveness of each market segment and selecting one or more segments to enter is called:
A. Market differentiation
B. Market positioning
C. Market targeting
D. Market development
61. A car manufacturer advertises its electric vehicles as being environmentally friendly, technologically advanced, and offering a superior driving experience. This is an example of:
A. Market segmentation
B. Market targeting
C. Market positioning
D. Market penetration
62. A company offers different versions of its product to appeal to distinct customer groups, such as a basic model for budget-conscious buyers and a premium model for luxury seekers. This strategy is known as:
A. Concentrated marketing
B. Undifferentiated marketing
C. Differentiated marketing
D. Mass marketing
63. What is the primary goal of market positioning?
A. To increase market share by offering the lowest prices.
B. To create a distinctive image and identity for a product or brand in the minds of the target audience.
C. To reduce production costs through economies of scale.
D. To gather as much data as possible about consumer preferences.
64. When a company segments its market based on consumers’ attitudes, values, and interests, it is using which type of segmentation?
A. Geographic segmentation
B. Behavioral segmentation
C. Psychographic segmentation
D. Demographic segmentation
65. Demographic segmentation divides a market based on variables such as age, income, gender, and education. Which of the following is LEAST likely to be considered a demographic variable?
A. Occupation
B. Lifestyle
C. Ethnicity
D. Family size
66. Which of the following criteria is essential for effective market segmentation, ensuring that the segments are large enough to be profitable?
A. Measurability
B. Accessibility
C. Substantiality
D. Actionability
67. A company decides to target its new smartphone to consumers who are tech-savvy, young adults, and reside in urban areas. This strategy is an example of:
A. Market aggregation
B. Market differentiation
C. Market segmentation and targeting
D. Market positioning
68. Which of the following is a common basis for geographic segmentation?
A. Consumer income levels
B. Psychological attributes
C. Climate and population density
D. Product usage rates
69. What does the ‘actionability’ criterion for market segmentation imply?
A. The segment must be large enough to be profitable.
B. The segment must be identifiable and its size measurable.
C. Effective programs can be designed to attract and serve the segment.
D. The segment must be reachable through company activities.
70. When a company segments the market based on ‘occasion,’ it is referring to:
A. The frequency of product purchase.
B. The specific times or events when consumers buy or use a product.
C. The consumer’s emotional state when purchasing.
D. The consumer’s perceived value of the product.
71. A marketer analyzes a market and identifies a group of consumers who consistently purchase organic foods, are health-conscious, and are willing to pay a premium for sustainable products. This group represents a:
A. Market segment
B. Target market
C. Market niche
D. Market positioning
72. A company develops a product that appeals to a very specific and narrowly defined group of customers with unique needs. This approach is known as:
A. Mass marketing
B. Niche marketing
C. Undifferentiated marketing
D. Differentiated marketing
73. The ‘benefits sought’ segmentation approach categorizes consumers based on:
A. Their loyalty to a brand
B. The specific advantages they expect to gain from a product
C. Their purchasing frequency
D. Their geographic location
74. Which of the following best describes the concept of ‘market segmentation’ in marketing principles, as commonly understood in the field?
A. Dividing a broad consumer market into smaller, more defined groups of consumers who share similar characteristics and needs.
B. Creating a unique image for a product in the minds of target consumers relative to competing products.
C. Developing and implementing strategies to influence the public’s perception of an organization.
D. The process of planning, creating, and controlling the flow of goods and services from producer to consumer.
75. A company creates a ‘positioning statement’ to guide its marketing efforts. What is the typical purpose of such a statement?
A. To outline the company’s financial projections for the next fiscal year.
B. To summarize the company’s overall mission and vision.
C. To articulate the specific target market and the unique value proposition of the product or brand.
D. To detail the operational procedures for product development.
76. When a company uses ‘usage rate’ as a basis for segmentation, it is dividing the market according to:
A. The frequency and quantity of product purchase or consumption.
B. The consumer’s brand loyalty.
C. The benefits consumers seek from the product.
D. Consumers’ attitudes towards the product category.
77. A marketing team is evaluating potential market segments. They determine that one segment is easily reachable through existing advertising channels and has accessible distribution networks. This addresses the criterion of:
A. Substantiality
B. Accessibility
C. Actionability
D. Measurability
78. When a company decides to serve all market segments for its product category, it is employing which type of market coverage strategy?
A. Niche marketing
B. Undifferentiated marketing
C. Differentiated marketing
D. Mass marketing
79. Which of the following is a key characteristic of a well-defined target market?
A. It is broad enough to include all potential customers.
B. It is a narrowly defined group that the company can effectively reach and satisfy.
C. It is chosen based solely on the lowest price point.
D. It is the largest segment in the market, regardless of profitability.
80. A firm chooses to focus its marketing efforts on a single, well-defined market segment that is often overlooked by larger competitors. This strategy is best described as:
A. Mass marketing
B. Undifferentiated marketing
C. Concentrated marketing
D. Differentiated marketing
81. Which of the following is a potential benefit of using a ‘selective distribution’ strategy?
A. Maximum market coverage
B. Lower distribution costs per unit
C. Stronger relationships with a limited number of intermediaries
D. Reduced need for promotional activities
82. Which of these is a key function of intermediaries in a marketing channel?
A. Product innovation
B. Market segmentation
C. Risk-taking
D. Brand positioning
83. What is the main challenge associated with ‘disintermediation’ in marketing channels?
A. Increased competition from new intermediaries
B. Loss of control over product presentation and customer service
C. Higher costs due to fewer intermediaries
D. Reduced market reach
84. What is the primary role of a wholesaler in a distribution channel?
A. To sell directly to the end consumer
B. To buy goods from producers and sell them to retailers or other intermediaries
C. To manufacture the products
D. To provide after-sales service to consumers
85. Which distribution intensity level aims to place products in as many outlets as possible?
A. Exclusive distribution
B. Selective distribution
C. Intensive distribution
D. Broad distribution
86. What does ‘channel length’ in marketing primarily refer to?
A. The physical distance products travel
B. The number of intermediaries in the distribution path
C. The duration of the sales cycle
D. The complexity of the distribution network
87. A company uses a limited number of intermediaries, but more than exclusive distribution, to sell its products. This approach is called:
A. Direct distribution
B. Intensive distribution
C. Selective distribution
D. Global distribution
88. What is the primary purpose of a ‘distribution strategy’?
A. To determine product features and benefits
B. To set the optimal price for a product
C. To make products accessible and available to target customers
D. To create brand awareness through advertising
89. E-commerce platforms like Amazon and Alibaba primarily facilitate which aspect of distribution?
A. Physical distribution
B. Channel management
C. Sales promotion
D. Customer relationship management
90. Which of the following best describes ‘channel conflict’?
A. When customers prefer buying directly from the manufacturer.
B. When disagreements arise between channel members regarding goals, roles, or rewards.
C. When the product is not available in enough outlets.
D. When competitors offer lower prices.
91. A luxury watch brand chooses to sell its timepieces only in a few high-end jewelry stores in major cities. This distribution strategy is known as:
A. Intensive distribution
B. Exclusive distribution
C. Mass distribution
D. Universal distribution
92. A firm that owns and operates its own distribution centers, transportation fleet, and retail outlets is practicing:
A. Indirect distribution
B. Disintermediation
C. Vertical marketing system (VMS)
D. Horizontal marketing system
93. Which distribution channel is typically the shortest?
A. Manufacturer -> Wholesaler -> Retailer -> Consumer
B. Manufacturer -> Agent -> Wholesaler -> Retailer -> Consumer
C. Manufacturer -> Consumer
D. Manufacturer -> Retailer -> Consumer
94. A manufacturer faces a ‘double marginalization’ problem when:
A. Both the manufacturer and the retailer mark up prices independently, leading to higher final prices.
B. The manufacturer sells directly to consumers and then to retailers.
C. The retailer buys directly from the manufacturer and sells to consumers.
D. Multiple manufacturers compete for the same retailers.
95. A manufacturer decides to sell its products directly to consumers through its own website and physical stores. This is an example of which type of distribution strategy?
A. Indirect distribution
B. Intensive distribution
C. Direct distribution
D. Selective distribution
96. When a company uses an agent or broker in its distribution channel, what is the primary function of the agent?
A. To hold inventory
B. To facilitate the exchange of ownership without taking title to the goods
C. To provide warehousing services
D. To engage in extensive product promotion
97. When a company uses multiple types of intermediaries to distribute its products, such as wholesalers, distributors, and retailers, it is employing a strategy that is best described as:
A. Exclusive distribution
B. Selective distribution
C. Direct selling
D. Multi-channel distribution
98. Which of the following is considered a primary marketing function that helps bridge the gap between producers and consumers?
A. Product development
B. Market research
C. Distribution
D. Pricing
99. When a manufacturer exerts significant control over its distribution channels, including pricing, branding, and customer service, this is often referred to as:
A. Channel conflict
B. Channel integration
C. Channel abandonment
D. Channel diversification
100. Which of the following is a key decision in the ‘Place’ element of the marketing mix?
A. Setting the promotional budget
B. Determining the product’s features and benefits
C. Choosing the distribution channels
D. Establishing the brand’s pricing strategy
