1. What does the term ‘brand equity’ refer to in marketing?
A. The cost of producing a brand’s products.
B. The total revenue generated by a brand over its lifetime.
C. The differential effect that brand knowledge has on consumer response to the marketing of that brand.
D. The number of different product lines a brand offers.
2. Which pricing strategy involves setting a high initial price for a new product to ‘skim’ revenue layers from the market?
A. Penetration pricing.
B. Psychological pricing.
C. Skimming pricing.
D. Cost-plus pricing.
3. What is the primary function of a marketing intermediary, such as a wholesaler or retailer?
A. To produce the goods that are sold to consumers.
B. To provide financing for the manufacturer’s operations.
C. To bridge the gap between producers and consumers by facilitating the exchange process.
D. To conduct market research on behalf of the producer.
4. What is the primary objective of a ‘competitive marketing strategy’?
A. To eliminate all competitors from the market immediately.
B. To gain a sustainable competitive advantage by understanding and responding to competitor actions.
C. To focus solely on internal product development without regard for the external environment.
D. To maintain a price that is significantly lower than all competitors, regardless of costs.
5. When a company develops a new brand name for a new product category, it is employing a strategy known as:
A. Line extension.
B. Brand extension.
C. Multi-brands.
D. New brands.
6. The ‘marketing mix’ consists of several controllable elements that a firm uses to pursue its marketing objectives. Which of the following is NOT typically considered one of the ‘4 Ps’ of marketing?
A. Product.
B. Price.
C. Promotion.
D. People.
7. What is the main advantage of ‘direct marketing’ compared to mass advertising?
A. It is less expensive to reach a large number of people.
B. It allows for more personalized communication and direct response measurement.
C. It is generally less intrusive to the consumer.
D. It is more effective for building long-term brand awareness.
8. When a company uses a ‘pull’ strategy in its promotional mix, it aims to:
A. Persuade intermediaries to carry and promote the product.
B. Create demand from end consumers, who then ‘pull’ the product through the distribution channel.
C. Focus heavily on personal selling to key accounts.
D. Use direct mail campaigns to reach a broad customer base.
9. In marketing, ‘differentiation’ refers to the process of:
A. Reducing the price of a product to compete with rivals.
B. Creating perceived differences between a firm’s product and its competitors’ products.
C. Focusing on a single market segment for all marketing efforts.
D. Standardizing products to appeal to the broadest possible market.
10. What is the primary benefit of customer relationship management (CRM) systems for marketers?
A. To automate the entire marketing process without human intervention.
B. To manage and analyze customer interactions and data throughout the customer lifecycle to improve relationships.
C. To solely focus on acquiring new customers at any cost.
D. To reduce the need for product innovation and development.
11. What is the primary purpose of ‘sales promotion’ activities, such as discounts or contests?
A. To build long-term brand loyalty and customer relationships.
B. To encourage immediate purchase or to stimulate demand for a product.
C. To communicate the unique selling proposition of a product.
D. To gather in-depth market research data from consumers.
12. In the context of the marketing mix, ‘Place’ refers to:
A. The product’s physical appearance and packaging.
B. The communication strategies used to promote the product.
C. The pricing strategies and discounts offered to customers.
D. The activities that make the product available to target consumers.
13. What is the main challenge of ‘undifferentiated marketing’ (mass marketing)?
A. It is too expensive to implement effectively.
B. It fails to reach a significant portion of the potential market.
C. It struggles to appeal to the diverse needs and preferences of different customer segments.
D. It requires extensive customization of products for each customer.
14. Consider the product life cycle. During the ‘growth’ stage, a company typically sees:
A. Declining sales and increasing profits.
B. Rapidly rising sales and increasing profits, often with growing competition.
C. Peak sales and declining profits due to heavy marketing costs.
D. Low sales and losses as the product is introduced.
15. Which of the following best describes the concept of ‘marketing myopia’ as introduced by Theodore Levitt?
A. Focusing on the product itself rather than the customer’s needs and benefits.
B. Over-reliance on price competition to gain market share.
C. Neglecting the importance of distribution channels in reaching customers.
D. Prioritizing short-term sales over long-term customer relationships.
16. Which of the following best describes a ‘convenience product’?
A. A product that consumers buy infrequently and with considerable planning.
B. A product that consumers compare carefully on suitability, quality, price, and style.
C. A product that consumers usually purchase with minimum comparison and buying effort.
D. A product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
17. When a company decides to enter new markets with its existing products, this is an example of which growth strategy?
A. Market development.
B. Product development.
C. Diversification.
D. Market penetration.
18. When a company offers a full product line under a single brand name, such as different flavors of the same soda, this is known as:
A. Brand extension.
B. Line extension.
C. Multi-brand strategy.
D. New brands.
19. According to Kotler and Armstrong, a ‘market segment’ is a group of customers who share a similar set of needs and wants. What is the primary goal of market segmentation?
A. To increase the total market demand for a product category.
B. To develop a marketing mix that is tailored to the specific needs of distinct customer groups.
C. To simplify the production process by offering fewer product variations.
D. To reduce the cost of advertising by targeting a broad audience.
20. What is the primary role of ‘market research’ in marketing decision-making?
A. To implement the marketing plan once it is finalized.
B. To set unrealistic sales targets for the marketing team.
C. To provide information and insights that support marketing strategy development and decision-making.
D. To exclusively track competitor activities without analyzing internal data.
21. A company implements a ‘take-back’ program where customers can return old products for recycling. This demonstrates a commitment to:
A. Product differentiation
B. Brand loyalty programs
C. Circular economy principles
D. Aggressive sales tactics
22. Critics of ‘greenwashing’ argue that it is a form of marketing that:
A. Effectively communicates genuine environmental benefits.
B. Misleads consumers into believing a product is more environmentally friendly than it actually is.
C. Focuses on the entire lifecycle of a product.
D. Promotes sustainable business practices transparently.
23. Which of the following is a potential benefit for a company that genuinely embraces sustainable marketing practices?
A. Increased regulatory fines
B. Decreased brand reputation
C. Enhanced brand image and customer loyalty
D. Reduced market share
24. A company launches a product made entirely from recycled ocean plastic, actively promoting this fact in its advertising. This is a strategic use of:
A. Product placement
B. Brand storytelling with an environmental focus
C. Cost leadership
D. Market segmentation
25. When a company focuses on meeting the immediate needs of consumers without compromising the ability of future generations to meet their own needs, it is practicing:
A. Aggressive marketing
B. Deceptive marketing
C. Sustainable marketing
D. Short-term marketing
26. What is the primary goal of a company practicing ‘conspicuous conservation’?
A. To secretly reduce environmental impact.
B. To publicly display and promote their environmental efforts and sustainable products.
C. To minimize costs associated with eco-friendly practices.
D. To comply with minimum environmental regulations.
27. A company decides to donate a portion of its profits to a charity that supports environmental conservation. This is an example of:
A. Affiliate marketing
B. Cause marketing
C. Guerilla marketing
D. Content marketing
28. Which of the following best describes the ‘societal marketing concept’?
A. Maximizing profits by selling as much as possible.
B. Focusing solely on product features and benefits.
C. Delivering value to customers while preserving or enhancing society’s and the environment’s well-being.
D. Using aggressive sales techniques to overcome customer resistance.
29. A company decides to reduce its carbon footprint by using recycled materials and optimizing its supply chain for lower emissions. This initiative aligns with which marketing philosophy?
A. Product orientation
B. Societal marketing concept
C. Sustainable marketing
D. Holistic marketing
30. Which of the following is NOT a key principle of sustainable marketing?
A. Environmental stewardship
B. Social equity
C. Economic viability
D. Maximizing short-term profits at any cost
31. In the context of ethical marketing, ‘truthfulness’ in advertising means:
A. Exaggerating product benefits to attract more customers.
B. Making claims that can be substantiated and are not misleading.
C. Focusing only on positive product attributes.
D. Using celebrity endorsements to guarantee product quality.
32. A marketer is developing a campaign that highlights a product’s energy efficiency and use of biodegradable packaging. This is an example of:
A. Cause marketing
B. Green marketing
C. Direct marketing
D. Relationship marketing
33. The concept of ‘marketing myopia,’ as described by Theodore Levitt, suggests that businesses fail when they:
A. Focus too much on customer needs.
B. Define their business too narrowly and fail to see the broader benefits or services customers are truly seeking.
C. Invest too heavily in sustainable practices.
D. Do not engage in aggressive advertising.
34. In marketing, which concept refers to the practice of designing and developing products or services that are not only desirable to consumers but also environmentally and socially responsible throughout their lifecycle?
A. Green marketing
B. Sustainable marketing
C. Ethical marketing
D. Socially responsible marketing
35. A marketer chooses to use recycled paper for all printed marketing materials and reduces the use of single-use plastics in promotional events. These actions are most aligned with:
A. Aggressive advertising
B. Sustainable operational practices
C. Price skimming
D. Market penetration
36. Which marketing approach emphasizes building long-term relationships with customers by providing value and satisfaction, often incorporating ethical and sustainable practices?
A. Transactional marketing
B. Target marketing
C. Relationship marketing
D. Niche marketing
37. A company is criticized for using labor practices that exploit workers in its supply chain. This violates which marketing principle?
A. Product quality
B. Customer service
C. Social responsibility and ethical conduct
D. Competitive pricing
38. Which marketing era is most associated with a focus on consumer needs and wants, coupled with a consideration for societal well-being?
A. The production era
B. The product era
C. The selling era
D. The marketing concept era and beyond (including societal and sustainable marketing)
39. When a marketing message emphasizes the ‘feel-good’ aspect of buying a product that supports a social cause, it is leveraging:
A. Emotional appeals in advertising
B. Rational appeals in advertising
C. Comparative advertising
D. Testimonial advertising
40. When a company ensures that its marketing messages are accurate and do not exploit vulnerable consumer segments, it is adhering to the principle of:
A. Product innovation
B. Ethical marketing and consumer protection
C. Mass marketing
D. Competitive pricing strategies
41. Differentiated marketing involves:
A. Serving only one specific market segment.
B. Developing different marketing mixes for different market segments.
C. Ignoring market segmentation and targeting everyone.
D. Concentrating all marketing efforts on a single product.
42. When a company chooses to target only one specific market segment, this strategy is known as:
A. Undifferentiated marketing.
B. Differentiated marketing.
C. Concentrated marketing.
D. Mass customization.
43. Geographic segmentation divides the market based on which variable?
A. Lifestyle and values.
B. Age and income.
C. Location, such as country, region, or climate.
D. Product usage rate and brand loyalty.
44. When a company identifies segments that are accessible through communication and distribution channels, it is checking for:
A. Measurability.
B. Substantiality.
C. Accessibility.
D. Actionability.
45. Psychographic segmentation focuses on understanding consumers’…
A. Demographic characteristics like age and gender.
B. Purchasing power and economic status.
C. Attitudes, interests, opinions, and lifestyles.
D. Behavioral patterns related to product usage.
46. Concentrated marketing, or niche marketing, is best suited for companies that:
A. Have vast resources and want to serve all market segments.
B. Possess limited resources and want to gain a strong position in a small market segment.
C. Aim to compete directly with mass-market leaders.
D. Prefer to avoid any form of market segmentation.
47. When a brand is positioned based on the specific users who consume it (e.g., ‘designed for athletes’), this is called:
A. Benefit positioning.
B. Attribute positioning.
C. User positioning.
D. Category positioning.
48. Undifferentiated marketing, also known as mass marketing, is characterized by:
A. Targeting multiple niche markets simultaneously.
B. Using a single marketing mix for the entire market.
C. Developing distinct marketing mixes for each segment.
D. Focusing only on product differentiation.
49. A company decides to target young adults aged 18-25 who are interested in sustainable fashion. This is an example of segmentation based on:
A. Geographic segmentation.
B. Demographic and psychographic segmentation.
C. Behavioral segmentation.
D. Benefit segmentation.
50. Which of the following best describes the primary goal of market segmentation?
A. To create a unique product for every individual customer.
B. To divide a broad target market into smaller, more manageable groups with similar needs or characteristics.
C. To eliminate competition by offering the lowest prices.
D. To focus solely on mass marketing to maximize reach.
51. A company that positions its product as ‘the most affordable option’ is using which type of positioning strategy?
A. Benefit positioning.
B. Price positioning.
C. Usage positioning.
D. User positioning.
52. Which of the following is a behavioral segmentation variable?
A. Income level.
B. Occupation.
C. Occasion of purchase.
D. Family size.
53. What is a ‘point of difference’ (POD) in positioning?
A. Features that are common to all brands in the category.
B. Attributes that are unique and superior to competitors.
C. The lowest price offered in the market.
D. The company’s internal mission statement.
54. What is the main advantage of effective segmentation and targeting?
A. Increased production costs.
B. Improved marketing efficiency and effectiveness.
C. Reduced product innovation.
D. Less need for customer feedback.
55. Perceptual mapping is a tool used to:
A. Calculate production costs.
B. Visualize how consumers perceive different brands based on key attributes.
C. Predict future sales figures.
D. Design the physical product packaging.
56. What is the primary purpose of positioning in marketing?
A. To create a product that is superior to all competitors.
B. To establish a clear and distinctive image of a product in the minds of target consumers.
C. To reduce the price of a product to gain market share.
D. To ensure the product is available in all possible distribution channels.
57. A positioning statement typically includes:
A. Only the product’s price.
B. The target market, brand name, product category, and point of difference.
C. A detailed history of the company.
D. A list of all potential competitors.
58. Benefit segmentation groups consumers based on:
A. Their geographical location.
B. The specific benefits they seek from a product.
C. Their social class and status.
D. Their usage rate of a product.
59. A company decides to reposition its brand from a budget option to a premium one. This involves changing:
A. Only its advertising slogan.
B. The core product features and target perception.
C. The company’s legal structure.
D. The manufacturing location.
60. Which of the following is a key criterion for effective market segmentation?
A. Segments must be unpredictable.
B. Segments should be large enough to be profitable to serve.
C. Segments must be identical in all aspects.
D. Segments should be difficult to reach.
61. When a consumer buys a product based on the advice of trusted friends or family, this is an example of influence from which type of reference group?
A. Aspirational reference group.
B. Dissociative reference group.
C. Membership reference group (or primary/secondary group).
D. Opinion leader.
62. A marketer is trying to influence a consumer’s ‘perceptual filters’. What is the primary goal of this strategy?
A. To ensure consumers remember every marketing message they encounter.
B. To make consumers selectively ignore competitor advertising.
C. To influence which information consumers pay attention to, interpret, and retain.
D. To force consumers to buy products they don’t need.
63. What is the primary implication of the ‘Maslow’s Hierarchy of Needs’ for marketing?
A. All consumers have the same basic needs.
B. Marketers can tailor messages to appeal to different levels of needs, from basic physiological to self-fulfillment.
C. Only the highest level of needs (self-actualization) drives purchasing decisions.
D. Needs are static and do not change over a consumer’s lifetime.
64. A consumer’s positive or negative feeling towards a product, brand, or company is referred to as their:
A. Belief.
B. Perception.
C. Attitude.
D. Motivation.
65. The concept of ‘subculture’ in marketing refers to:
A. The dominant culture of a nation.
B. A group within a larger culture that shares distinct values, beliefs, and behaviors.
C. The economic status of a population segment.
D. The artistic and intellectual trends in society.
66. When analyzing the ‘social class’ of consumers, marketers are most interested in how it influences:
A. Their physical appearance.
B. Their purchasing power and brand preferences.
C. Their ability to read and write.
D. Their preferred modes of transportation.
67. What psychological factor is most directly related to a consumer’s motivation to satisfy a need or desire?
A. Perception.
B. Learning.
C. Motivation.
D. Attitude.
68. Which of the following best describes the concept of ‘post-purchase dissonance’ in consumer behavior?
A. The initial excitement a consumer feels before buying a product.
B. The anxiety or regret a consumer may feel after a purchase, especially if it was an expensive or important decision.
C. The satisfaction a consumer derives from using a product.
D. The process of searching for information about a product before buying.
69. In the context of understanding consumer behavior, what does the term ‘evoked set’ refer to?
A. The total number of brands a consumer is aware of.
B. The subset of brands that a consumer considers for purchase.
C. The brands a consumer dislikes and actively avoids.
D. The brands a consumer is completely unaware of.
70. The ‘family life cycle’ concept suggests that purchasing behavior changes based on:
A. The geographic location of the family.
B. The family’s stage in its life, from single to married with children, to empty nesters.
C. The socioeconomic status of the parents only.
D. The specific brands the family has always preferred.
71. When a consumer uses ‘heuristics’ in their decision-making process, they are typically:
A. Conducting extensive research on all available options.
B. Using mental shortcuts or ‘rules of thumb’ to simplify complex decisions.
C. Seeking advice from friends and family before making any choice.
D. Engaging in a thorough, analytical evaluation of each product attribute.
72. What is the primary purpose of a marketing strategy that targets a consumer’s ‘opinion leaders’?
A. To directly sell products to these influential individuals.
B. To leverage their influence to affect the opinions and behaviors of their followers.
C. To gather feedback on product development.
D. To discourage consumers from following trends.
73. A consumer’s ‘lifestyle’ is best described as:
A. Their income level and job title.
B. Their personality traits and values, expressed through their activities, interests, and opinions (AIO).
C. The products they own and use regularly.
D. Their educational background and upbringing.
74. When a consumer’s actual self-concept differs significantly from their ideal self-concept, this can lead to:
A. Increased brand loyalty.
B. A desire to purchase products that help bridge this gap.
C. Reduced interest in marketing communications.
D. A complete rejection of the product category.
75. What is the primary role of ‘reference groups’ in influencing consumer behavior?
A. To provide direct financial incentives for purchase.
B. To act as a source of social comparison, norms, and attitudes that influence an individual’s behavior.
C. To manufacture and distribute products directly to consumers.
D. To regulate marketing activities within a specific industry.
76. What is the main purpose of understanding a consumer’s ‘learning’ process in marketing?
A. To predict future purchase behavior based on past experiences and information.
B. To prevent consumers from changing their brand preferences.
C. To ensure consumers forget about competitor products.
D. To make marketing messages as complex as possible.
77. Which characteristic of a consumer’s ‘attitude’ refers to how deeply held or resistant to change it is?
A. Intensity.
B. Salience.
C. Centrality.
D. Objectivity.
78. The process by which consumers acquire, process, and retain information is known as:
A. Consumer socialization.
B. Information processing.
C. Brand loyalty.
D. Market segmentation.
79. When a marketer uses ‘subliminal advertising’, they are attempting to:
A. Clearly and overtly promote product benefits.
B. Influence consumer behavior through messages presented below the threshold of conscious awareness.
C. Provide detailed product information to aid decision-making.
D. Create a memorable jingle or slogan for brand recall.
80. Consider the stages of the consumer decision-making process. Which stage immediately follows ‘information search’?
A. Purchase decision.
B. Post-purchase evaluation.
C. Evaluation of alternatives.
D. Need recognition.
81. Which of the following is NOT a common type of market segmentation?
A. Demographic segmentation
B. Psychographic segmentation
C. Geographic segmentation
D. Economic segmentation
82. Which of the following best describes the primary purpose of a marketing plan?
A. To outline the company’s financial projections for the next fiscal year.
B. To detail the strategies and tactics a company will use to achieve its marketing objectives.
C. To list all the products and services a company currently offers.
D. To describe the organizational structure of the marketing department.
83. What is the primary function of a distribution channel?
A. To create product awareness among consumers.
B. To manage customer service inquiries.
C. To make products available to customers at the right time and place.
D. To develop new product features and benefits.
84. When a company focuses on a single market segment and develops a highly tailored marketing mix for it, this is known as:
A. Undifferentiated marketing
B. Differentiated marketing
C. Niche marketing
D. Mass marketing
85. Which of the following is an example of a sales promotion tactic?
A. A television commercial
B. A press release announcing a new product.
C. A limited-time discount or coupon offer.
D. A public relations event.
86. A marketing strategy that focuses on building long-term relationships with customers is known as:
A. Transactional marketing
B. Customer relationship management (CRM)
C. Mass marketing
D. Product differentiation
87. Which element of the marketing mix (4 Ps) refers to the communication activities that inform, persuade, and remind target customers about a product?
A. Price
B. Place
C. Product
D. Promotion
88. SWOT analysis is a framework used in marketing to:
A. Evaluate the effectiveness of a recent advertising campaign.
B. Identify internal Strengths and Weaknesses, and external Opportunities and Threats.
C. Determine the optimal pricing strategy for a new product.
D. Forecast sales volume for the upcoming quarter.
89. Which pricing strategy involves setting a high initial price for a new product to ‘skim’ revenue from early adopters?
A. Penetration pricing
B. Skimming pricing
C. Cost-plus pricing
D. Psychological pricing
90. Which of the following is an example of behavioral segmentation?
A. Segmenting customers by their income level.
B. Segmenting customers based on their lifestyle and values.
C. Segmenting customers by their usage rate and loyalty status.
D. Segmenting customers by their age and gender.
91. What is the purpose of a marketing research?
A. To solely focus on advertising effectiveness.
B. To gather and analyze information about customers, markets, and competitors to aid decision-making.
C. To manage the company’s internal communication systems.
D. To track employee performance in the sales department.
92. What does the term ‘marketing channel conflict’ refer to?
A. Disagreements between marketing and sales departments.
B. Disputes or disagreements that arise between different members of the same marketing channel.
C. Conflicts customers have with a product’s features.
D. Competition between different brands in the same market.
93. The ‘Marketing Myopia’ concept, as described by Theodore Levitt, suggests that companies fail when they:
A. Focus too much on competition.
B. Define their business too narrowly, focusing on products rather than customer needs.
C. Invest too little in advertising.
D. Fail to innovate their product lines.
94. Market segmentation is the process of:
A. Developing new products for an existing market.
B. Dividing a broad consumer market into smaller, more homogeneous groups.
C. Setting the price for a product based on competitor pricing.
D. Promoting a product through various advertising channels.
95. Which phase of the product life cycle is characterized by rapid sales growth and increasing profits?
A. Introduction
B. Growth
C. Maturity
D. Decline
96. What is the main advantage of direct marketing?
A. Wider reach than mass advertising.
B. Lower cost per contact compared to traditional advertising.
C. Ability to measure results and target specific customer segments more effectively.
D. Greater brand awareness among the general public.
97. A company decides to sell its products in new geographic markets. This is an example of a:
A. Market penetration strategy
B. Product development strategy
C. Market development strategy
D. Diversification strategy
98. A company’s target market refers to:
A. All potential customers in the world.
B. The specific group of consumers a company aims to reach with its marketing efforts.
C. The most profitable customer segment for any business.
D. The group of customers who are most likely to buy a competitor’s product.
99. What is the primary goal of positioning in marketing?
A. To reduce the cost of production.
B. To create a distinct image and identity for a product or brand in the minds of consumers.
C. To increase the number of distribution channels.
D. To conduct market research on competitor products.
100. Brand equity is best described as:
A. The total revenue generated by a brand.
B. The cost of producing a brand’s products.
C. The added value a brand name gives to a product beyond its functional benefits.
D. The number of advertising campaigns a brand has run.
