Marketing Management

Dr.G.R.Damodaran College of Science(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-

accredited at the 'A' Grade Level by the NAAC and ISO 9001:2008 CertifiedCRISL rated 'A' (TN) for MBA and MIB Programmes

I MBA [2013-2015]Semester II

Core: Marketing Management - 252BMultiple Choice Questions.

1. Marketing utility consists of ________.A. Price.B. Place, price.C. Product, place, price and profit.D. Price, place, promotion and product.

ANSWER: D

2. A place for buying and selling activities is called ________.A. Market.B. Marketing.C. Market research.D. Market information.

ANSWER: A

3. The exchange value of a good service in terms of money is_________.A. Price.B. Product.C. Buying.D. Selling.

ANSWER: A

4. Selling the same product at different prices is known as________.A. Price lining.B. Dual pricing.C. Geographical pricing.D. Monopoly pricing.

ANSWER: B

5. The words used to convey the advertisement idea is ____________.A. Advertisement.B. Advertisement Research.C. Advertisement copy.D. Advertisement budget

ANSWER: C

6. Advertisement promotes_________.A. . Purchases.B. Production.C. Sales.D. Price.

ANSWER: C

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7. Agricultural products are_________.A. Perishable.B. Highly priced.C. Low quality products.D. Heterogeneous goods

ANSWER: D

8. The social aspect of marketing is to ensure_________.A. Price.B. Demand.C. Low price with high quality.D. Service goods.

ANSWER: C

9. The orange juice manufacturers know that orange juice is most often consumed in the mornings.However, they would like to change this and make the drink acceptable during other time periodsduring the day. Which form of segmentation would they need to work with and establish strategyreflective of their desires?

A. Gender segmentation.B. Benefit segmentationC. Occasion segmentation.D. Age and life cycle segmentation

ANSWER: C

10. The typical method of retail operation used by supermarkets and catalog showrooms is called:A. Self service retailing.B. Limited service retailing.C. Full service retailing.D. Service merchandiser.

ANSWER: C

11. . Marketing creates profit by creating _____ to the buyer.A. Value.B. Money.C. Product.D. Price.

ANSWER: A

12. ._____ needs the interest of the buyer.A. Product.B. Sales.C. Production.D. Manufacturing.

ANSWER: A

13. ._____ includes the configuration of benefits, value, cost and satisfactionA. Demand.B. Innovation.C. Creativity.D. Invention.

ANSWER: D

14. All companies strive to build _____ strength.


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A. . Brand.B. Image.C. Customer.D. Employee

ANSWER: A

15. Which one of the following is not one of the P s of marketing?A. Product.B. Price.C. Place.D. Production.

ANSWER: D

16. . Which of the following best identifies how marketing must be understood today?A. Satisfy customer needs.B. Marketing.C. Selling.D. Behaviour.

ANSWER: A

17. A _____ is a trade of vale between two or more parties.A. Transaction.B. Exchange.C. Transfer.D. Prospecting.

ANSWER: A

18. Which concept holds that consumers will not buy enough of organizations product unless it takeslarge scale selling and promotion effort?

A. Marketing.B. Selling.C. Production.D. Product.

ANSWER: B

19. ._____ includes that other company s offering similar products & services to the same customer atsimilar prices.

A. Supply Chain.B. Competition.C. Product.D. Price

ANSWER: B

20. ._____ consists of a group of customers who share a similar set of wantsA. Micro MarketingB. Mass Marketing.C. Market Segment.D. Market targeting.

ANSWER: A

21. The starting point for discussing segmentation is _____.A. Segregation.B. Positioning.C. Both.


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D. NoneANSWER: A

22. Need become _____ when they are directed to specific objects that might satisfy the need.A. WantsB. NeedsC. . Demand.D. Flexibility.

ANSWER: A

23. A marketer is someone seeking a response from another party called _____.A. Marketer.B. Prospect.C. Supplier.D. Distributor.

ANSWER: B

24. ._____ are wants for specific products that are backed up an ability and willingness to buy them.A. Demand.B. Wants.C. Needs.D. Desire.

ANSWER: A

25. Which is intangible among the following?A. Product.B. Services.C. Products & services.D. Sales.

ANSWER: B

26. ._____emerges when people decide to satisfy and want through exchange.A. Marketing.B. Sales.C. Purchase.D. Accounting.

ANSWER: B

27. ._____ concept holds consumers will favour those products that offer the most quality orperformance.

A. . Product.B. Selling.C. Production.D. Sales.

ANSWER: A

28. .______ concept holds that consumers will favour those products that are conveniently available inadequate quantity and affordable.

A. Product.B. Production.C. Selling.D. Buying.

ANSWER: B


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29. ._____ concepts holds that consumers if left alone will ordinarily not buy enough of theOrganization s products.

A. Marketing.B. Product.C. Selling.D. Buying.

ANSWER: A

30. _____ involves managing demand, which in turn involves managing customer relationship.A. Marketing management.B. Direct marketing.C. Production management.D. . Advertising.

ANSWER: A

31. At which stage in the International Trade Cycle does a country usually import foreign goods?A. Introduction stage.B. Growth stage.C. Maturity stage.D. Saturation stage.

ANSWER: B

32. Which stage of the product lifecycle is marked by falling costs and rising revenues?A. Introduction stage.B. Growth stage.C. Maturity stage.D. Saturation stage.

ANSWER: D

33. The usual source for new products is_____.A. Marketing researchB. R&D.C. Accidental discoveries.D. . A variety of sources including customers, competitors, serendipity and formal processes

ANSWER: A

34. The term marketing refers to_____.A. New product concepts and improvements.B. Advertising and promotion activities.C. A philosophy that stresses customer value and satisfaction.D. Planning sales campaigns.

ANSWER: C

35. A brand is a _______.A. Name.B. Term.C. Sign.D. A combination of all of the above.

ANSWER: D

36. A marketing philosophy summarized by the phrase a good product will sell itself is Characteristic ofthe_________ period.

A. Production.B. Sales.


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C. Marketing.D. Relationship.

ANSWER: A

37. An organization with a______ orientation assumes that customers will resist purchasing Productsnot deemed essential. The job of marketers is to overcome this resistance through personal selling andadvertising.

A. Production.B. Marketing.C. Relationship.D. Sales.

ANSWER: B

38. In the relationship marketing firms focus on__________ relationships with__________.A. Short term customers and suppliers.B. Long term customers and suppliers.C. Short term customers.D. Long term customers.

ANSWER: D

39. Which of the following is NOT an element of the marketing mix?A. Distribution.B. Product.C. Target market.D. Pricing.

ANSWER: C

40. The term marketing mix describes _____.A. A composite analysis of all environmental factors inside and outside the firm.B. A series of business decisions that aid in selling a product.C. The relationship between a firm's marketing strengths and its business weaknesses.D. A blending of four strategic elements to satisfy specific target marker.

ANSWER: A

41. Newsletters, catalogues, and invitations to organisation-sponsored events are most closelyassociated with the marketing mix activity of _____.

A. Pricing.B. Distribution.C. Product development.D. Promotion.

ANSWER: D

42. A market with which of the following characteristics would generally be less competitive?A. High barriers to entry.B. Lots of potential substitutes exist.C. Strong bargaining power among buyers.D. Strong bargaining power among suppliers.

ANSWER: C

43. The process of anticipating future events and conditions and determining the best way to achieveorganizational objectives is known as_______.

A. Researching.B. Planning.C. Controlling.


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D. Managing.ANSWER: B

44. Which one of the following best describes the present value of the stream of future profits expectedover the customer s life time purchase?

A. Customers Life time value.B. Suppliers Life time Value.C. Company s life time value.D. Future value.

ANSWER: A

45. Market expansion is usually achieved by_______.A. More effective use of distribution.B. More effective use of advertisingC. By cutting prices.D. . All of the above are suitable tactics.

ANSWER: B

46. . The following are all major stages of a product life cycle except_____.A. Sales decline.B. Market maturity.C. Market Introduction.D. Market Growth.

ANSWER: C

47. Techniques of sales promotions are _____.A. Free samples.B. Free offers.C. Merchandising.D. All the above.

ANSWER: D

48. A _____ is a set of segements sharing some exploitable similarity.A. . Over segment.B. Counter segment.C. Super segment.D. . Selection segment.

ANSWER: A

49. The firm must consider whether investing in the segment makes sense givng the firm _____ and____.

A. Knowledge & objective.B. Objective & resource.C. Knowledge & resource.D. None.

ANSWER: A

50. _____ and ____ are the major factors influencing the selection of suppliers.A. Price and QuantityB. . Price and Quality.C. Price and Delivery.D. Quantity and Delivery.

ANSWER: C


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51. An advertisement copy must have________.A. Description.B. Narration.C. Exposition.D. Report

ANSWER: A

52. High sales volume leads to ____.A. High price.B. low price.C. Both.D. .none.

ANSWER: A

53. Product line means________________.A. Set of all products of a company.B. No. Of items.C. A group of related products.D. All of these.

ANSWER: B

54. Implementation planning must cover____.A. Lead time.B. Sell in time.C. Both .D. . None.

ANSWER: A

55. Sales promotion includes a tool for_____.A. Consumer promotion.B. Selective promotion.C. Taste promotion.D. All of the above.

ANSWER: B

56. Sales promotion is the key ingredient in marketing _____.A. Campaign.B. Promotion.C. Program.D. Distribution

ANSWER: A

57. Which of the following cannot be used as a trademark?A. A wordB. A symbol.C. All of them can be used as a trademark .D. Icon.

ANSWER: A

58. This marketing component is most likely to be standardized_____A. Brand .B. . Price.C. Advertising.D. Distribution.


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ANSWER: A

59. This item offers added value _____.A. Commodity.B. Unbranded good.C. Product.D. Price.

ANSWER: C

60. Which of the following is an advantage of a brandless product?A. Product differentiation.B. Quality flexibility.C. Repeat sales.D. Premium pricing.

ANSWER: C

61. Compared to a private brand, a manufacturer s brand has this advantage (from manufacturersperspective)?

A. Brand.B. Promotional expenditure.C. Gaining dealers acceptance.D. Market share

ANSWER: D

62. A private brand makes it possible for a retailer to offer a product at_____.A. Higher price and higher margin.B. Lower price and lower margin.C. Lower price and higher margin .D. Higher price and lower margin.

ANSWER: B

63. This branding strategy assumes that the market is heterogeneous _____.A. No brand.B. Worldwide brand.C. Single brand in single market.D. Local brands.

ANSWER: B

64. Which of the following can be renewed indefinitely?A. Patent.B. Copyright.C. Trademark.D. All of the above.

ANSWER: B

65. The most important packaging criterion is _____.A. Promotional.B. Attractive.C. Functional.D. all the above .

ANSWER: D

66. The relationship between advertising expenditures and a country s economic development is _____.A. Positive.


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B. Neutral.C. NegativeD. Unpredictable.

ANSWER: A

67. Which of the following is an advertising medium?A. Direct marketing.B. Mail order.C. Direct mail.D. Telephone.

ANSWER: B

68. Which is the most expensive strategy?A. Product extension-communications adaptationB. Product adaptation-communications extension.C. Product invention.D. Dual adaptation.

ANSWER: C

69. Standardized advertising should not be used if _____ criterion is not satisfied.A. Identification.B. Response.C. ValueD. All of the above must be satisfied .

ANSWER: D

70. _____component of the marketing mix is least likely to be standardizedA. Branding.B. AdvProducertising.C. Product.D. Price.

ANSWER: C

71. . _____advertising strategy aims to maximize both the efficiency and effectiveness of an advertisingcampaign.

A. Standardization.B. Marketing managementC. Global advertising.D. Local advertising.

ANSWER: C

72. Compared to the other 3 Ps, price is more important than _____.A. Product.B. Promotion.C. Place.D. None of the above

ANSWER: D

73. . _____ element of the marketing mix tends to be most adapted.A. Product.B. Place.C. PriceD. Person.

ANSWER: C


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74. Of the 4 Ps, the one that receives the least attention, domestically and internationally, is _____.A. Product.B. Promotion.C. . Place.D. Price.

ANSWER: D

75. Product line covers _____A. Departmental store.B. One price retailer.C. General retailer.D. Wholesaler.

ANSWER: D

76. The indirect channel has the limitation of _____.A. SimplicityB. Control .C. Cost.D. Responsibility of physical distribution.

ANSWER: C

77. The direct channel has the limitation of _____.A. Market exploitation.B. Communication.C. Control.D. Cost .

ANSWER: D

78. A product with a low-price image requires_____ distributionA. Intensive .B. Selective.C. Exclusive.D. None.

ANSWER: A

79. Selling needs the interest of the _____.A. Consumer.B. . Dealer.C. Middlemen.D. All the above.

ANSWER: D

80. Marketing is a task of creating____.A. Customers.B. advertisement.C. Development.D. . Promotion.

ANSWER: C

81. ____ is an offering form a known source.A. Brand.B. Economics.C. Relationship.


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D. Social.ANSWER: A

82. .____ are the basic human requirementsA. Needs.B. Wants.C. Luxuries.D. Offerings.

ANSWER: A

83. ._____ is a consumer commitment for a productA. Purchase.B. Selling.C. Advertising.D. Producing.

ANSWER: A

84. The DMU refers to the human expression of _____.A. Seller.B. Producer.C. Middlemen.D. Consumer.

ANSWER: A

85. ._____ is not a substitute for decision.A. Product research.B. Marketing research.C. Sales research.D. Production research.

ANSWER: A

86. ._____ is a tool for decision making.A. Product research.B. Marketing research.C. Sales research.D. . Production research.

ANSWER: B

87. Geographic segmentation is about_____.A. Dividing consumer groups based on lifestyles.B. Dividing markets based on location.C. Understanding the benefit the product has to offer.D. Dividing consumer groups based on social status.

ANSWER: B

88. Market segmentation is the process of _____.A. Dividing a market into distinct groups of buyers with different needs, characteristics or behaviourB. . Dividing a market into groups of buyers that have different buying power.C. Dividing a market into categories of buyers that buy the company s different products.D. All of the above

ANSWER: B

89. . Market positioning can be defined as _______.A. Arranging for a brand to occupy a clear place relative to competing products in the minds of


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consumersB. Organising markets into different levels of desirability for the company to target.C. . Promoting a brand to appear to be something consumers want.D. Classifying distributors according to the status they give to the products they carry

ANSWER: D

90. The marketing objective for a product in the __________ stage of the product life cycle (PLC) is topromote consumer awareness and gain trial.

A. Introduction.B. Growth.C. Maturity.D. Decline.

ANSWER: D

91. Promotional activities during the maturity stage of the product life cycle are often designedto_____.

A. Create demand for the product class.B. Remind repeat purchasers.C. Create primary demand.D. Gain new distributors.

ANSWER: D

92. When a company identifies the parts of the market it can serve best and most profitably, it ispracticing ________.

A. Segmenting.B. Concentrated marketing.C. Differentiation.D. Mass marketing.

ANSWER: A

93. Through market segmentation, companies divide large, heterogeneous markets into smaller segmentsthat can be reached more ________ with products and services that match their unique needs.

A. Efficiently.B. effectively.C. Intensely.D. Fully.

ANSWER: B

94. The middlemen who do not take any title to goodsA. . Retailer.B. Wholesaler.C. Agent.D. Commission houses.

ANSWER: C

95. ._____ segmentation has long been applied in clothing, hairstyling, cosmetics and magazinesA. Gender.B. Income.C. Generation.D. Social class.

ANSWER: A

96. Market can be segmented into ____ product users.A. Light.


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B. . Medium.C. HeavyD. All of the above.

ANSWER: B

97. Companies should be cautious about ______ their products.A. Segmenting.B. Over segmentingC. Super segmenting.D. Counter segmenting.

ANSWER: A

98. Price means exchange of value of a product or service in terms of ____.A. Money.B. . Value.C. Money and value.D. Only money.

ANSWER: B

99. Relationship marketing focuses more attention on _________ customers because new customers are_________ compared to existing customers.

A. Retaining less expensive.B. Acquiring less expensive.C. Retaining more expensive.D. Acquiring more expensive.

ANSWER: C

100. ._____ is a strategy that entails forging long-term partnerships with customers.A. Commitment selling.B. Relationship marketing.C. Transactional marketing.D. Market engineering

ANSWER: B

101. . _____is a contributor to customer satisfactionA. Core good service.B. Support services.C. Customer service.D. All of the above are contributors.

ANSWER: A

102. The way in which the product is delivered to meet the customers needs refers to_____.A. New product concepts and improvements.B. Selling.C. Advertising and promotion activities.D. Place or distribution activities.

ANSWER: A

103. The key term in the American Marketing Association s definition of marketing is______.A. Process.B. Customers.C. Stakeholders.D. Value.

ANSWER: D


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104. . A critical marketing perspective is the process of determining_____.A. The value of a product, person, or idea.B. How places compete with each other.C. The worth and impact of marketing activities.D. Which type of promotional strategy works best.

ANSWER: D

105. When customer expectations regarding product quality, service quality, and value-based price aremet or exceeded, _____ is created.

A. Customer satisfaction.B. Planning excellence.C. A quality rift.D. A value line

ANSWER: A

106. A market orientation recognizes that_____.A. Price is the most important variable for customers.B. What the customer thinks he or she is buying is what is important.C. Selling and marketing are essentially the same thing.D. Sales depend predominantly on an aggressive sales force.

ANSWER: A

107. Markets are created by ________.A. Nature.B. Economic force.C. Business men.D. Product.

ANSWER: B

108. In order for exchange to occur _____.A. A complex societal system must be involved.B. Organized marketing activities must also occurC. A profit oriented organization must be involved.D. Each party must have something of value to the other party.

ANSWER: B

109. _____is not a part of the external marketing environment.A. Political.B. Legal.C. Product.D. Socio cultural.

ANSWER: C

110. A firm has decided to alter its pricing and promotional strategies in response to slower thanexpected job growth and declining personal incomes. The firm is responding to changes in its_____.

A. Environmental managementB. Environmental scanning.C. Marketing management.D. Marketing research.

ANSWER: B

111. The process of collecting information about the external marketing environment is_____.A. Environmental management.


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B. Environmental scanning.C. Marketing management.D. Marketing research.

ANSWER: B

112. The five dimensions usually considered to constitute the environment of marketing include all ofthe following except_____.

A. Political considerations.B. .Global factors.C. Competitive aspects.D. .Economics issues.

ANSWER: B

113. New technology results in new goods and services, and it also can_____.A. Lower the quality of existing products.B. Lower the available level of customer serviceC. Reduce prices through new production and distribution methods.D. Bring back products that were considered obsolete

ANSWER: A

114. _____ is a competitive forces according to Porter five force models.A. High resistanceB. Lots of potential substitutes exist.C. No competition.D. More goods.

ANSWER: B

115. Demographic environment includes _____.A. Age, income, sex, education, occupation.B. Occasions, user status, loyaltyC. Region city, country.D. Attitude, benefits, life style.

ANSWER: A

116. According to Maslow s Hierarchy of Needs theory, the need for fulfilment, for realizing One s ownpotential, and for fully using one s talents and capabilities are examples of __________ needs.

A. Self actualizationB. Physiological.C. . Social.D. Esteem.

ANSWER: A

117. . Which of the following is an assumption in Maslow s hierarchy of needs?A. Needs are dependent on culture and also on social class.B. Lower level needs must be at least partially satisfied before higher needs can affect behaviourC. Needs are not prioritized or arranged in any particular order.D. Satisfied needs are motivators, and new needs emerge when current needs remain unmet.

ANSWER: D

118. The process of anticipating future events and conditions and determining the best way to achieveorganizational objectives is known as_____.

A. Researching.B. Planning.C. Controlling.


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D. Managing.ANSWER: D

119. A market with which of the following characteristics would generally be more competitive?A. High barriers to entry.B. Lots of potential substitutes exist.C. Strong bargaining power among buyers.D. Strong bargaining power among suppliers.

ANSWER: B

120. _____ includes product modification.A. Price changesB. Product quality.C. Customer service.D. All of the above.

ANSWER: A

121. Marketing and selling are _____.A. . Same.B. Different.C. Almost sameD. Fully varies.

ANSWER: B

122. Strategic marketing planning establishes the_____.A. . Resource base provided by the firm s strategy.B. Economic impact of additional sales.C. Tactical plans that must be implemented by the entire organizationD. Basis for any marketing strategy.

ANSWER: B

123. Diversification is best described as _____.A. Existing products in new markets.B. Existing products in existing markets.C. New products for new marketsD. New products for existing markets.

ANSWER: C

124. Marketing research data is gathered by _____.A. Observation.B. In depth interviews.C. Controlled experiment.D. All the above

ANSWER: D

125. Marketing is _____.A. Only a function of management.B. Function of management as well as a business philosophy.C. It is only a business philosophyD. Selling goods and services

ANSWER: A

126. Which of the following are key components of marketing concept ?A. Product concept, Production concept, Selling Concept and Societal Concept.


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B. Product, Price, Place and Promotion.C. Customer Orientation, Integrated effort and Goal Achievement.D. Suppliers, Customers, Competitors and Intermediaries

ANSWER: A

127. . Market Targeting is a process of _____.A. Subdividing the customers in the market to groups having simillar needsB. . Placing the product in the collective mind set of the customers.C. Choosing the market segments that the firm hopes to offer its products or services.D. Offering one product to all the markets.

ANSWER: B

128. Which of the following refers to process element of the marketing mix?A. Training and development of the staff.B. Making the sales outlet look attractive.C. Deciding the Capacity of customers that one sales person can handle.D. Giving rewards for good members of the staff.

ANSWER: B

129. Distribution in a service may refer to_____.A. Storage, handling and movement of goods from manufacturer to consumer.B. Point at which the service is delivered.C. Point at which service is promoted and communicated.D. None of the above.

ANSWER: B

130. Marketing comprises of _____.A. Sellers.B. Buyers.C. Consumers.D. People.

ANSWER: A

131. . Preliminary exploration is done through ____.A. Policy planning .B. Formal investigationC. Informal investigation .D. All of these

ANSWER: D

132. Primary group consists of_____.A. Family and friends.B. Religion and profession.C. Individual and group.D. None of these.

ANSWER: C

133. _____ marking decisions in research objectives.A. . Preliminary exploration.B. . Formal investigationC. Project planning.D. Informal investigation.

ANSWER: A


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134. Market is a social process of ______ and _____.A. Buyer and rules.B. Producer and seller.C. Producer and buyer.D. Individual and group.

ANSWER: A

135. Positive marketing creats a _____by pushing businessA. Profit.B. LossC. . Profit and lossD. break even.

ANSWER: D

136. Advertising is not a _____link between the buyer and the seller.A. Communication.B. MarketingC. Public relations.D. Publicity.

ANSWER: A

137. Which of these is a merit of commodity approach ?A. It is a simple method to adopt .B. It is a concrete methodC. It give concrete results.D. All the above

ANSWER: C

138. . Functional approach was designed by ______.A. AH. Shaw.B. . L.d.H .weld.C. Both a and b.D. Kotler.

ANSWER: D

139. Business buyers is one who buys goods and services for _____ purposes.A. For making other goods and services.B. For reselling.C. For use as consumables.D. All of the above.

ANSWER: A

140. Decision making is otherwise known as ______,A. Management approachB. Decision making approach.C. Both a and b.D. None.

ANSWER: C

141. Factors responsible for the adaptation of modern concept.A. Growth of distribution channel.B. Growth of populationC. Growth of disposable income.D. All the above.


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ANSWER: C

142. What is AIDA?A. Attention, interest, desire, action.B. Attention, intention, desire, attitude.C. Advertising, intention, desire, action.D. Attention, intention, desire, action.

ANSWER: A

143. What are the benefits of modern concepts of marketing?A. Understanding of consumer.B. Innovation.C. Prestige and image.D. All the above.

ANSWER: A

144. Market gridding is another ______ technique.A. . Analytical.B. Practical.C. Theoretical.D. None of these.

ANSWER: D

145. Problem of marketing management in India is _____.A. Lack of marketing personnel.B. Marketing costs.C. Lack of marketing research.D. All the above.

ANSWER: A

146. .______ promotes the consumers to buy a particular in a given time frame.A. . Sales promotion.B. Marketing.C. Consumer promotion.D. None of these

ANSWER: B

147. . _____ are the task of marketing management.A. Stimulation marketing.B. Development marketing.C. All the above.D. None.

ANSWER: D

148. Two main components of sales promotion are ______.A. Trade promotion and consumer promotion.B. marketing promotion and sales promotion.C. Consumer promotion and marketing promotion.D. none.

ANSWER: C

149. Which of the following is not a promotion mix?A. Sales promotion.B. Personal selling.


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C. Forecasting.D. Advertising

ANSWER: C

150. MIS stands for______.A. Marketing Information System.B. Management information System.C. Management interface system.D. Market Interface system.

ANSWER: B

Staff NameANISH.K.


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Marketing Management

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