MKT501 SOLVED MCQs FOR EXAM PREPARATION
Question No: 1 (Marks: 1) - Please choose one Critical path analysis is a part of which of the following? ► Implementation stage ► Marketing strategies ► Executive summary ► Financial summary PAGE 16 Implementation Personnel requirements, assigning responsibilities, give incentives, training on selling methods, financial requirements, management information systems requirements, month-by-month agenda, pert or critical path analysis, monitoring results and benchmarks, adjustment mechanism, contingencies (What if's) need to be worked out Question No: 2 (Marks: 1) - Please choose one The strategy which involves creating a product that is perceived as unique and should provide superior value for the customer is called: ► ► ► ►
Market segmentation strategy Market dominance strategy Differentiation strategy Cost leadership strategy
Page 20 DIFFERENTIATION STRATEGY Differentiation involves creating a product that is perceived as unique. The unique features or benefits should provide superior value for the customer if this strategy is to be successful. Question No: 3 ( Marks: 1 ) - Please choose one A brand name is one of the elements of the: ► Discounted product ► Core benefit ► Augmented product ► Actual product Page 23 Tangible Product or Service Product attributes and features, Quality, Styling, Packaging protection and label information, Brand name Question No: 4 ( Marks: 1 ) - Please choose one Luxury products, such as Rolex watches, are also known as: ► Shopping product ► Convenience product ► Emergency product ► Specialty product Rolex and luxury items are not normal things. They are very special in its nature plus their brands are their main identity. Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort. Examples include specific brands and types of cars, high-priced.
Question No: 5 (Marks: 1) - Please choose one Which of the following goods are purchased without any planning or search effort? ► Emergency ► Specialty ► Impulse ► Shopping Page 24 Emergency Goods: goods required immediately Question No: 6 (Marks: 1) - Please choose one Which of the following is frequently used in testing the acceptance of new product design? ► Concept development ► Business analysis ► Concurrent engineering ► Conjoint analysis Conjoint (trade-off) analysis has become one of the most widely-used quantitative methods in Marketing Research. It is used to measure the perceived values of specific product features, to learn how demand for a particular product or service is related to price, and to forecast what the likely acceptance of a product would be if brought to market. Ref: http://www.sawtoothsoftware.com/conjoint-analysis-software Question No: 7 (Marks: 1) - Please choose one Identify the commercialization decision which includes decisions regarding locality, region, nationally or even internationally launching the product. ► Why to launch the product? ► How to launch the product? ► Where to launch the product? ► When to launch the product? Page 30 The decisions required are: • WHEN TO LAUNCH THE PRODUCT?• TO WHOM TO LAUNCH THE PRODUCT? • HOW TO LAUNCH THE PRODUCT? WHERE TO LANCH THE PRODUCT? Is the product to be launched in a locality, region, or several regions or nationally or even internationally. This geographical territory will decide the marketing approach. Advertisement, publicity and promotion. Question No: 8 (Marks: 1) - Please choose one Which product is MOST likely to be purchased through routine decision making? ► Television set ► Soft drink ► Shirt ► Car Question No: 9 (Marks: 1) - Please choose one Which of the following is the leak-proof packaging that provides additional protection for the primary container? ► Primary packaging ► Secondary packaging ► Transport packaging ► Decorative It is also known as distribution packaging or protective packaging; it includes all packaging for the containment and protection of goods during handling, storage and transportation in the physical distribution process. *For example:* boxes of toothpastes are packed in a carton of paperboard.
Question No: 10 ( Marks: 1 ) - Please choose one Which of the following is less likely to damage reputations of a brand if a new product fails? ► Brand extension branding ► Individual branding ► Overall family branding ► Line family branding Question No: 11 (Marks: 1) - Please choose one Which of the following brands is created specifically to counter a competitive threat? ► Premium brand ► Economy brand ► Fighting brand ► Corporate brand Page 36 A fighting brand is a brand created specifically to counter a competitive threat. Question No: 12 (Marks: 1) - Please choose one Gift baskets are the example of which one of the following types of packaging? ► Decorative ► Secondary ► Shipping ► Primary Decorative packaging it can be like Primary packaging, in this packaging the product can be packed in an attractive style, like we find the beautiful bottles/tins of drinks which we like most and after finishing the product we use that packaging in some other purpose. Question No: 13 (Marks: 1) - Please choose one 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 ► Physical protection ► Theft reducing Page 34 •Agglomeration - Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Alternatively, bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. Question No: 14 (Marks: 1) - Please choose one The label on a pack of frozen peas says, 'packed within an hour of picking'. These words are used: ► To promote the product ► To satisfy legal requirements ► To provide information ► To fulfill ethical requirement
Question No: 15 (Marks: 1) - Please choose one Packaging used for the ice creams is an example of which of the following? ► Decorative packaging ► Transport packaging ► Secondary packaging ► Primary packaging This kind of packaging touches the ice cream. This is the last packaging which is gown through by the consumer. When you open ice cream box after that you start eating ice-cream. Primary packaging is the 1st level packaging; you can say the packaging which actually touches the product. Such as bottle, jar, tube, can etc. this is the last packaging which is gown through by the consumer. *Ref http://www.businessdictionary.com/definition/primary-packaging.html Question No: 16 (Marks: 1) - Please choose one Which of the following is a name, term, sign, symbol, design, or a combination of these, that identifies the product or service? ► Label ► Co-brand ► Brand ► Product Brand Defined According to the American Marketing Association (AMA), brand is a "name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition." Technically speaking, whenever a marketer creates a new name, logo, or symbol for a new product or service, he or she has created a brand. Question No: 17 (Marks: 1) - Please choose one Which of the following is a group of products that are closely related because they function in a similar manner? ► Convenience product ► Private brand ► Line extension ► Product line A product line is "a group of products that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. Ref: http://en.wikipedia.org/wiki/Product_(business) Question No: 18 (Marks: 1) - Please choose one Which of the following is also known as dual branding? ► Private brand ► Multibrand ► Co-brand ► New brand Dual-branding, also known as co-branding happens when a particular incentive links two or more brands (product and/or service) together for a mutually agreeable campaign. Ref: http://www.brandxpress.net/2006/08/co-brandingdual-branding/ Co-branding (also called Dual Branding) has become a rage in the marketing arena, with companies realizing that isolation is not after all the best policy.
Question No: 19 (Marks: 1) - Please choose one The concept of price is central to: ► Administration ► Management ► Macroeconomics ► Microeconomics Page 38 The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory). Question No: 20 (Marks: 1) - Please choose one Which of the following marketing mix element generates revenue? ► Promotion ► Price ► Place ► Product Price. Price is the cost of the product paid by consumers. This is the only element in the marketing mix that generates revenue for firms. In order to generate revenue, managers must consider factors both internal and external to the organization. Internal factors take the form of marketing objectives, the marketing-mix strategy, and production costs. Ref: http://www.answers.com/topic/marketing Question No: 21 (Marks: 1) - Please choose one ABC Company priced the product as of Rs. 19.99 instead of Rs.20. Which of the following pricing techniques is ABC Company using? ► Dodging pricing ► Deceptive pricing ► Premium pricing ► Psychological pricing Page 39 PSYCHOLOGICAL PRICING Retail prices are often expressed as odd prices: a little less than a round number, e.g. $19.99 or £6.95. Psychological pricing is a theory in marketing that these prices have a psychological impact that drives demand greater than would be expected if consumers were perfectly rational. Psychological pricing is one cause of price points. Question No: 22 ( Marks: 1 ) - Please choose one To pay premium price for the product customers require: ► Allowance ► Flawless performance ► Discounts ► High promotionm, Premium pricing (also called prestige pricing) is the strategy of pricing at, or near, the high end of the possible price range. People will buy a premium priced product because they require flawless performance in this application - The cost of product malfunction is too high to buy anything but the best - example: heart pacemaker Question No: 23 (Marks: 1) - Please choose one Which of the following is NOT an objective of discounts? ► Reward valuable customers ► Reward competitors ► Move out-of-date stock ► Increase short-term sales Page 43 objective of discounts • Increase short-term sales, • Move out-of-date stock, • Reward valuable customers, • Encourage distribution channel members to perform a function.
Question No: 24 (Marks: 1) - Please choose one 3/10 net 30 is an example of which of the following? ► Seasonal discount ► Trade discount ► Quantity discount ► Cash discount Page 43 1) 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 if they pay within 10 days. Question No: 25 (Marks: 1) - Please choose one Market price is also known as: ► Effective price ► List price ► Retail price ► Wholesaler price Page 43 The market price (also called effective price) is the amount actually paid. Question No: 26 ( Marks: 1 ) - Please choose one 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 if paid 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 Page 43 •2/10 net 30 - this means the buyer must pay within 30 days, but will receive a 2% discount if they pay within 10 days. Question No: 27 (Marks: 1) - Please choose one Which of the following is also known as accumulation discounts? ► Trade discount ► Non-cumulative quantity discount ► Cumulative quantity discount ► Quantity discount Page 44 •Cumulative quantity discounts (also called accumulation discounts). These are price reductions based on the quantity purchased over a set period of time. Question No: 28 (Marks: 1) - Please choose one A company is providing warehousing facility to its channel members. The company is using which of the following? ► Seasonal discount ► Trade discount ► Quantity discount ► Cash discount Seasonal discounts - These are price reductions given when an order is placed in a slack period (Example: purchasing skis in April in the northern hemisphere or in September in the southern hemisphere). On a shorter time scale, a happy hour may fall in this category. Question No: 29 (Marks: 1) - Please choose one To attract customers into stores, the store advertises its milk at a price less than cost, hoping that customers will purchase other groceries as well. Milk is acting as which of the following? ► Premium item ► On- sale item ► Discounted item ► Loss leader
Question No: 30 (Marks: 1) - Please choose one Many companies try to set a price that will maximize current profit. This strategy assumes that company has knowledge of it‟s: ► Cost and production function ► Revenue and cost function ► Demand and market function ► Demand and cost function Ref: www.scribd.com/doc/.../Pricing-Strategy-and-Programs Question No: 31 (Marks: 1) - Please choose one Which one of the following 4Ps of marketing mix involves in decisions regarding list prices, discounts, allowances and payment periods or credit terms? ► Product ► Price ► Place ► Promotion Question No: 32 (Marks: 1) - Please choose one When need is directed towards a specific object it is called: ► Actual need ► Want ► Demand ► Satisfaction Page 4 WANT Need becomes Want, when they are directed towards a specific object. Question No: 33 (Marks: 1) - Please choose one In which one of the following orientations companies often design the products with little or no input from customers? ► ► ► ►
Market-oriented Product-oriented Sales-oriented Production-oriented
Question No: 34 (Marks: 1) - Please choose one A customer requirement about any product in which he/ she needs to avail core features in that product, is called: ► ► ► ►
Real need Stated need Unstated need Delighted need
Question No: 35 (Marks: 1) - Please choose one Factors of broad environment affect: ► Economic environment ► Task environment ► Cultural environment ► Technological environment Question No: 36 (Marks: 1) - Please choose one Marketing starts with which of the following 4Ps? ► ► ► ►
Product Price Place Promotion
Question No: 37 (Marks: 1) - Please choose one A business wants to create the awareness about the features and befits of the product in the market. Which of the following decisions are important to achieve the goal? ► Price decisions ► Place decisions ► Promotion decisions ► Product decisions Promotion Decisions In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Question No: 38 (Marks: 1) - Please choose one If a bakery business bought a wheat farm in order to reduce the risk associated with the dependency on flour. Identify the type of integration. ► Backward vertical integration ► Balanced vertical integration ► Forward horizontal integration ► Forward vertical integration Question No: 39 (Marks: 1) - Please choose one Which of the following products requires mass promotion by a producer? ► Convenience ► Shopping ► Specialty ► Unsought Question No: 40 (Marks: 1) - Please choose one Which of the following is NOT included in the financial summary of a marketing plan? ► Pro-forma income statement ► Month-by-month agenda ► Breakeven analysis ► Assumptions Which of the following must be developed at each product level for achieving the goals? ► Corporate plan ► Selling plan ► Marketing plan ► Business plan Page 15 For Product or Service, a Brand, or a Product line, It can cover ONE YEAR (referred to as an annual marketing plan), or cover up to 5 years. A marketing plan may be part of an overall Business Plan. Which of the following part of a marketing plan defines the plan‟s financial and marketing goals in terms of sales volume, market share and profit? ► Marketing strategy ► Action programs ► Issue analysis ► Objectives Page 17 Marketing strategies are those plans designed to reach Marketing goals. A good marketing strategy should integrate an organization‟s marketing goals, policies, and action sequences (tactics) into a cohesive whole.
Assumptions, pro-forma income statement, contribution margin analysis, breakeven analysis, ratios analysis must be very formally done in: ► Executive summary ► Financial summary ► Promotional plan ► Business plan Page 16 Financial Summary Assumptions, pro-forma monthly income statement, contribution margin analysis, breakeven analysis. This information must be very formally done at this stage Which of the following has the largest market share in the relevant product market? ► Market leader ► Market challenger ► Market nicher ► Market follower Page 19 The market leader is dominant in its industry. It has substantial market share and often extensive distribution arrangements with retailers. A market nicher can reduce their operating expense through less spending on: ► Market segment and advertising ► R & D and market segment ► Advertising and promotion ► R & D and advertising Page 20 Market nicher tends to keep their operating expenses down by spending less on R&D, advertising, and Personal selling. A market leader firm can expand the total market through: ► Decreasing distribution of the product ► Introducing the new usage of the product ► Eliminating some features of product ► Increasing cost Page 19 It typically is the industry leader in developing innovative new business models and new products (although not always). It sometimes has some market power in determining either price or output. Of the four dominance strategies, it has the most flexibility in crafting strategy. A brand name is one of the elements of the: ► Discounted product ► Core benefit ► Augmented product ► Actual product page 23 Tangible Product or Service O Product attributes and features, Quality, Styling, Packaging protection and label information, Brand name Which of the following is TRUE about a product? ► Every tangible thing the customer receives in an exchange ► The idea that the customer receives in an exchange ► The service that is rendered to a customer ► The physical object the customer receives in an exchange Page 23 “In marketing, a product is anything that can be offered to a market that might satisfy a want or need. 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”.
Identify the stage of product life cycle in which sales are at peak. ► Introduction ► Growth ► Maturity ► Decline page 25 Mature stage • Costs are very low as you are well established in market & no need for publicity. • Sales volume peaks Which of the followings are considered defensive in nature? ► Maturity and growth stage ► Maturity and decline stage ► Introduction and maturity stage ► Introduction and growth stage Page 26 The second two stages, mature and decline stage are often seen as defensive in nature. Standard Cable cut back advertising expenditures to minimum level and reduced the number of channel members for its industrial cable product. These actions are indicative of a product in which of the following stage of its life cycle? ► Introduction ► Growth ► Maturity ► Decline MGT 301 Page 108 This is the decline stage. Sales decline for many reasons, including technological advances, shifts in consumer tastes, and increased competition. As sales and profits decline, some firms withdraw from the market. Those remaining may prune their product offerings. They may drop smaller market segments and marginal trade channels, or they may cut the promotion budget and reduce their prices further. Highest percentage of ideas for new products originates with/from which of the following sources? ► Top management ► Customers ► Competitors ► Employees Page 27 : Ideas for new products obtained from customers, R&D department, competitors, focus groups, employees, or trade shows Which of the following are the people who purchase new products almost as soon as the products reach the market? ► Innovators ► Late majority ► Early majority ► Late adopters Page 33 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. Which of the following is NOT one of the stages that customers go through in the process of adopting a new product? ► Desire ► Awareness ► Evaluation ► Interest Page 32 The New-product marketers should facilitate consumer movement through these stages • AWARENESS: • INTEREST: • EVALUATION • TRIAL • ADOPTION
Which product is MOST likely to be purchased through routine decision making? ► Television set ► Soft drink ► Shirt ► Car Which of the following has a quick response towards a new product? ► Opinion leaders ► Late majority ► Early majority ► Early adopters Page 33 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. Which of the following brands is created specifically to counter a competitive threat? ► Premium brand ► Economy brand ► Fighting brand ► Corporate brand Page 36 A fighting brand is a brand created specifically to counter a competitive threat. Using one brand name for several related products is known as which of the following? ► Family branding ► Group branding ► Combination branding ► Premium branding Page 36 When one brand name is used for several related products, this is referred to as Family branding. Packaging used for the ice creams is an example of which of the following? ► Decorative packaging ► Transport packaging ► Secondary packaging ► Primary packaging Primary packaging is the material the first envelops the product and holds it. Firstlevel product packaging such as the bottle, can, jar, tube, etc., that contains the item sold. It is the last packaging thrown by the consumer. @ Secondary packaging is outside the primary packaging – perhaps used to group primary packages together. Tertiary packaging is used for bulk shipping. According to “Research supporting odd pricing theory” which of the following number out of all the numbers between 1 and 100 is thought to have least perceived value as compared to its actual value? ► 90 ► 77 ► 55 ► 25 Page 40 In a study, the perceived value of all the numbers between 1 and 100 were studied, and 77 was shown to have the lowest perceived value relative to its actual value.
To pay premium price for the product customers require: ► Allowance ► Flawless performance ► Discounts ► High promotion page 39 Premium Pricing (also called prestige pricing) is the strategy of pricing at, or near, the high end of the possible price range. They require flawless performance in this application - The cost of product malfunction is too high to buy anything but the best - example: heart pacemaker Mr. A, marketer of XYZ Co. is selling his ice-cream in the market at Rs.20, 20% more than his competitors‟ price. Still his sales are increasing. Now his aim is to maintain same pricing. He enjoys which type of leadership? ► Promotion leadership ► Price leadership ► Cost leadership ► Product leadership Price leadership A situation in which a company sets a price for a product and this company's market share and/or brand loyalty is so strong that other companies are compelled to match or beat the price. The company that first changes the price is said to show price leadership. Which of the following price is quoted to a potential buyer, usually in written form? ► Wholesale price ► Market price ► List price ► Retail price The list price (which is quoted to a potential buyer, usually in written form). Ref: http://en.wikipedia.org/wiki/Discounts_and_allowances 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 ► 10/4 net 30 ► 10/30 net 4 ► 4/30 net 10 Page 43 •2/10 net 30 - this means the buyer must pay within 30 days, but will receive a 2% discount if they pay within 10 days. Market-penetration pricing will likely to be used most in selling which of the following items? ► Specialty ► Convenience ► Unsought ► Pharmaceuticals Market-penetration pricing Pricing method of new product introduction to market that consists of pricing low and promoting heavily in order to gain a large market share and associated economies of scale as quickly as possible and before competition builds. Convenience Goods: purchased frequently and with minimal effort, often referred to as FMCG (Fast Moving Consumer Goods) Many companies try to set a price that will maximize current profit. This strategy assumes that company has knowledge of its: ► Cost and production function ► Revenue and cost function ► Demand and market function ► Demand and cost function REF: http://www.netmba.com/marketing/pricing/
Identify the other name for global market. ► Consumer market ► Import market ► Export market ► Government market PAGE 2 GLOBAL MARKETS This 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. Which one of the following 4Ps of marketing mix involves in decisions regarding list prices, discounts, allowances and payment periods or credit terms? ► Product ► Price ► Place ► Promotion PAGE 3 Right Price a. List Price b. Discounts and conditions of discounts c. Allowances d. Payment Period Customer cost will be considered as which of the following Ps of marketing mix? ► Product ► Price ► Place ► Promotion Pricing is basically setting a specific price for a product or service offered. In a simplistic way, Kotler and Armstrong (2004) refer to the concept of price as the amount of money that customers have to pay to obtain the product. Which of the following is about managing strategically the customer‟s entire experience with the product and company? ► Customer experience management ► Customer retention management ► Customer life-time value management ► Customer relationship management Customer experience management is "the process of strategically managing a customer's entire experience with a product or a company". Relationship marketing focuses on establishing and building a long term relationship between a company and a customer. There are several approaches that have been espoused including customer experience management, customer relationship management, loyalty programs, and database marketing. ref : http://www.findwhitepapers.com/knowledge-management/customer-experience-management/ Customer‟s viewpoint on a firm‟s products and services can be improved through: ► Experiential world of customers ► Experiential innovation ► Customer interface ► Building experiential platform Page 5: Continue experiential innovation • Anything that can improve customer‟s own viewpoint on your products and services.
Which of the following firms emphasizes on product‟s benefits to the customers rather product attributes? ► Product oriented ► Market oriented ► Sales oriented ► Production oriented Market Orientation: Business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of the customers, through its own or acquired products. Which of the following is NOT a technique of measuring customer satisfaction and monitoring customer‟s complaint? ► Customer complaints database ► Web and telephone information hotlines ► Exit interviews ► Business analysis Page 27 because Business Analysis involves o estimate likely selling price o estimate sales volume o estimate profitability and breakeven point The phenomenon, when a customer dislikes a product and talks against the product, is termed as: ► Propaganda ► Unfavorable environment ► Bad mouth ► Bad impression Page 8 The customer still may not fully like the product and have what we calls „bad-mouth‟. Bad mouth is when a customer talks not in favors of the product. Bad mouth travels fast. Products that are usually purchased due to adversity and high promotional back up rather than desire are called: ► Sought goods ► Unique goods ► Unsought goods ► Preferred goods Page 8: This concept emphasizes on aggressive selling and high promotional back up. Selling, concept is practical on what we call as „unsought goods‟
A customer requirement about any product in which he/ she needs to avail core features in that product, is called: ► Real need ► Stated need ► Unstated need ► Delighted need Page # 10 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 but not expensive compared to his income. Needs are .Stated need (an inexpensive Car) ,Real need (wants a car which is lower in maintenance), Unstated need (he wants a strong car) Which of the following products requires mass promotion by a producer? ► Convenience ► Shopping ► Specialty ► Unsought Unsought Products – These are products whose purchase is unplanned by the consumer but occur as a result of marketer‟s actions. Such purchase decisions are made when the customer is exposed to promotional activity, such as a salesperson‟s persuasion or purchase incentives like special discounts offered to certain online shoppers.
Which ► ► ► ►
of the following is NOT an aggressiveness strategy? Harvesting Building Intensification Holding
Page # 18 Aggressiveness Strategies - This asks whether a firm should grow or not, and if so, how fast. One scheme divides strategies into: · Building · holding · harvesting Which of the following is NOT a type of innovation strategy? ► Pioneers ► Challengers ► Close followers ► Late followers 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 Suppose Nestle wants to expand its line of food products. The managers conduct surveys from customers to determine which food items would appeal to customers. Nestle is currently in which of the following phase of new product development? ► Idea generation ► Idea screening ► Test marketing ► Business analysis Test marketing is a technique used during product development to determine how people respond to a product. It can be used at many different phases of development to see whether or not the public will buy the product, how the product may need to be adjusted to make it appealing to the public, and how members of the public interact with the product. Question No: 1 (Marks: 1) - Please choose one Results from the research that have already been conducted are displayed in which of the following part of marketing plan? ► Marketing strategies ► Executive summary ► Appendix ► Financial summary Pictures and specifications of the new product, results from research already completed. Question No: 2 ( Marks: 1 ) - Please choose one Critical path analysis is a part of which of the following? ► Implementation stage ► Marketing strategies ► Executive summary ► Financial summary Implementation: Personnel requirements, assigning responsibilities, give incentives, training on selling methods, financial Requirements, management information systems requirements, month-by month agenda, pert or critical Path analysis.
Question No: 3 (Marks: 1) - Please choose one A market leader firm can expand the total market through: ► Decreasing distribution of the product ► Introducing the new usage of the product ► Eliminating some features of product ► Increasing cost Market leader is developing innovative new business models and new always).
products (although not
Question No: 4 ( Marks: 1 ) - Please choose one Which of the following stage of product life cycle is most expensive? ► Introduction ► Growth ► Maturity ► Decline Market introduction stage • Cost high • Sales volume low • Losses Question No: 5 ( Marks: 1 ) - Please choose one 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 ► Adoption process ► New product recognition Adoption process: The spread of idea from the source of invention or creation to the ultimate user or consumers. Question No: 6 (Marks: 1) - Please choose one When two or more well known brands are combined in an offer it is called: ► Private brand ► Multibrands ► Co-brand ► New brand When two or more brands work together to market their products, this is referred to as Co-branding Question No: 7 ( Marks: 1 ) - Please choose one All of the following are true about price EXCEPT: ► Price is independent of the other elements of the marketing mix ► Price is the monetary value of a product ► Price is most flexible tool in the marketing mix ► Price is marketing mix element which produces revenue In economics and business, the price is the assigned numerical monetary value of a good, service or asset”. The concept of price is central to microeconomics where it is one of the most important variables in resource allocation theory (also called price theory). Price is also central to marketing where it is one of the four variables in the marketing mix that business people use to develop a marketing plan. Question No: 8 ( Marks: 1 ) - Please choose one ABC Company priced the product as of Rs. 19.99 instead of Rs.20. Which of the following pricing techniques is ABC Company using? ► Dodging pricing ► Deceptive pricing ► Premium pricing ► Psychological pricing Psychological pricing is a theory in marketing that these prices have a psychological impact that drives demand greater than would be expected if consumers were perfectly rational. Psychological pricing is one cause of price points. Retail prices are often expressed as odd prices: a little less than a round number, e.g. $19.99 or £6.95.
Question No: 9 ( Marks: 1 ) - Please choose one Which of the following method is mostly used in the retailing? ► Courier service ► Online shops ► Self-service ► Counter-service The second, and now more widely used method of retail, is self-service. Question No: 10 ( Marks: 1 ) - Please choose one Which of the following is price reduction offered when an order is placed in slack/drooping period? ► Cash discount ► Trade discount ► Quantity discount ► Seasonal discount Quantity discounts - These are price reductions given for large purchases. These are price reductions based on the quantity purchased over a set period of time. The expectation is that they will impose an implied switching cost and thereby bond the purchaser to the seller.
