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web.groovymark@gmail.com
- November 28, 2024
Question 41
What does “threat of substitute products or services” refer to in Porter’s Five Forces model?
a) The likelihood that a competitor will lower prices
b) The availability of different products or services that fulfill the same need
c) The ease with which new competitors can enter the market
d) The potential for existing competitors to gain market share
Answer: b) The availability of different products or services that fulfill the same need
Explanation: The threat of substitutes refers to the presence of alternative products or services that can replace a company's offering, reducing its market power.
Question 42
In what stage of the product life cycle does competition intensify and profit margins start to decline?
a) Growth
b) Maturity
c) Decline
d) Introduction
Answer: b) Maturity
Explanation: In the maturity stage, sales peak, competition is fierce, and profit margins may begin to shrink due to the saturation of the market.
Question 43
What is the primary focus of a company’s mission statement in the marketing planning process?
a) Defining specific tactics for product promotion
b) Addressing customer needs and how the company plans to fulfill them
c) Outlining the company’s financial goals for the quarter
d) Defining the market share the company aims to capture
Answer: b) Addressing customer needs and how the company plans to fulfill them
Explanation: A mission statement focuses on the company's purpose, including how it intends to meet customer needs and what value it will provide.
Question 44
What is the primary role of Porter’s Five Forces model?
a) To create a marketing plan for a product
b) To analyze the competitive forces shaping a company’s market
c) To determine the customer segments for a marketing strategy
d) To identify strengths and weaknesses of a product
Answer: b) To analyze the competitive forces shaping a company’s market
Explanation: Porter's Five Forces is a tool used to analyze the competitive dynamics within an industry, helping companies understand threats and opportunities.
Question 45
What is one major challenge of customer relationship management (CRM)?
a) It reduces the need for customer interactions
b) It is difficult to integrate CRM into all company departments
c) CRM focuses only on acquiring new customers
d) It eliminates the need for customer retention strategies
Answer: b) It is difficult to integrate CRM into all company departments
Explanation: One major challenge of CRM systems is the complexity of integrating them across different departments, ensuring that all areas of the company can access and use customer data effectively.
Question 46
Which of the following is an advantage of qualitative research?
a) It provides statistically measurable data
b) It explores customer motivations and perceptions in depth
c) It is quicker and less expensive than quantitative research
d) It requires no interaction with participants
Answer: b) It explores customer motivations and perceptions in depth
Explanation: Qualitative research allows marketers to explore deeper insights into customer motivations, perceptions, and behaviors, often through interviews or focus groups.
Question 47
What is one of the primary purposes of a SWOT analysis?
a) To identify customer purchasing behavior
b) To understand the controllable and uncontrollable factors affecting the company
c) To analyze competitor pricing strategies
d) To measure the effectiveness of advertising campaigns
Answer: b) To understand the controllable and uncontrollable factors affecting the company
Explanation: A SWOT analysis helps a company assess internal strengths and weaknesses, as well as external opportunities and threats that may impact its strategies.
Question 48
In the BCG matrix, which quadrant represents products that have low market share and are in low-growth markets?
a) Dog
b) Star
c) Cash cow
d) Question mark
Answer: a) Dog
Explanation: A dog is a product with low market share in a low-growth market, often seen as unprofitable and a candidate for divestment.
Question 49
Which of the following describes a corporate vertical marketing system?
a) All levels of the distribution process are owned by a single company
b) Independent companies collaborate through contracts
c) Distribution is controlled by a dominant company due to its size
d) Goods and services are sold directly to the consumer
Answer: a) All levels of the distribution process are owned by a single company
Explanation: In a corporate vertical marketing system, a single company owns and controls the entire distribution process, from production to the final sale.
Question 50
What type of sales approach involves becoming a trusted advisor to the customer?
a) Solution selling
b) Consultative selling
c) Telemarketing
d) Team selling
Answer: b) Consultative selling
Explanation: Consultative selling involves building a relationship with the customer and becoming a trusted advisor who understands their needs and offers tailored solutions.
