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web.groovymark@gmail.com
- November 28, 2024
Question 21
Which of the following pricing strategies involves setting a lower price to enter a competitive market?
a) Prestige pricing
b) Penetration pricing
c) Price skimming
d) Leader pricing
Answer: b) Penetration pricing
Explanation: Penetration pricing involves setting a low price to gain market share quickly, particularly in competitive markets. The other strategies focus on different pricing tactics, like maximizing profits or attracting customers through perceived value.
Question 22
What is the main purpose of a positioning statement?
a) To outline the budget for marketing activities
b) To define the target market and differentiate the product in the customer’s mind
c) To describe the product features and benefits
d) To determine the best marketing channels
Answer: b) To define the target market and differentiate the product in the customer's mind
Explanation: A positioning statement identifies the target market and the unique value or benefit the product offers to position it clearly in the customer's mind.
Question 23
In Porter’s Five Forces model, what does the “threat of new entrants” refer to?
a) The likelihood that competitors will lower prices
b) The potential for new companies to enter and disrupt the market
c) The availability of alternative products
d) The risk of suppliers demanding higher prices
Answer: b) The potential for new companies to enter and disrupt the market
Explanation: The threat of new entrants considers how easy or difficult it is for new competitors to enter the market, potentially disrupting established companies.
Question 24
What is the key characteristic of guerrilla marketing?
a) Focusing solely on online advertising
b) Using high-budget campaigns to engage customers
c) Utilizing innovative, low-cost, and unconventional promotional tactics
d) Partnering with other businesses to promote products
Answer: c) Utilizing innovative, low-cost, and unconventional promotional tactics
Explanation: Guerrilla marketing focuses on creative, unconventional strategies that are often low-cost, designed to engage customers in memorable ways.
Question 25
Which of the following describes a question mark in the BCG matrix?
a) Low market share in a low-growth market
b) High market share in a high-growth market
c) Low market share in a high-growth market
d) High market share in a low-growth market
Answer: c) Low market share in a high-growth market
Explanation: A question mark represents a product with low market share in a growing market. It requires investment to determine if it can grow into a star or if it should be divested.
Question 26
What is the main goal of the product development strategy in the Strategic Opportunity Matrix?
a) Expanding into new markets with new products
b) Creating new products for existing markets
c) Increasing market share by lowering prices
d) Introducing existing products to new markets
Answer: b) Creating new products for existing markets
Explanation: Product development involves creating new products for markets the company already serves, focusing on innovation and customer needs.
Question 27
What does PEST analysis primarily help marketers identify?
a) Internal company strengths and weaknesses
b) Competitor pricing strategies
c) Uncontrollable external factors that influence the business
d) Customer demographic data
Answer: c) Uncontrollable external factors that influence the business
Explanation: PEST analysis focuses on the political, economic, social, and technological factors that can impact a company, helping marketers understand the broader environment.
Question 28
Which of the following is an advantage of secondary data?
a) It directly addresses specific research questions
b) It is often less expensive and quicker to obtain than primary data
c) It provides more current and up-to-date information than primary data
d) It is tailored specifically to the research problem
Answer: b) It is often less expensive and quicker to obtain than primary data
Explanation: Secondary data is typically more cost-effective and faster to access than primary data, though it may not always be as directly relevant to the specific research problem.
Question 29
What does a cash cow in the BCG matrix represent?
a) A product with low market share in a low-growth industry
b) A product with high market share in a low-growth industry
c) A product with high market share in a high-growth industry
d) A product with low market share in a high-growth industry
Answer: b) A product with high market share in a low-growth industry
Explanation: A cash cow has a large market share in a mature, low-growth industry. These products generate consistent profits and require little additional investment.
Question 30
In adaptive selling, what behavior is typical of an analytical customer?
a) Low assertiveness and high responsiveness
b) High assertiveness and high responsiveness
c) Low assertiveness and low responsiveness
d) High assertiveness and low responsiveness
Answer: c) Low assertiveness and low responsiveness
Explanation: Analytical customers are characterized by their low assertiveness and low responsiveness, focusing on facts and logic rather than emotional or aggressive communication.
Question 31
Which pricing strategy involves grouping related products and selling them as a single package?
a) Leader pricing
b) Competitive pricing
c) Bundling
d) Prestige pricing
Answer: c) Bundling
Explanation: Bundling involves selling related products together as a package, often at a discounted price, to encourage customers to buy more.
Question 32
Which of the following is NOT a phase in the customer decision-making process?
a) Problem and opportunity recognition
b) Evaluation of alternatives
c) Searching for information
d) Advocacy
Answer: d) Advocacy
Explanation: Advocacy is not part of the decision-making process but rather comes after a purchase, when a satisfied customer promotes the brand. The decision-making process includes recognition, search, evaluation, decision, and post-purchase behavior.
Question 33
What type of research involves directly observing customers in their natural environment?
a) Qualitative research
b) Survey research
c) Ethnographic research
d) Experimental research
Answer: c) Ethnographic research
Explanation: Ethnographic research involves studying consumers in their natural environment, providing insights into how they interact with products or services in real-life settings.
Question 34
Which of the following marketing strategies targets specific segments of the market differently based on their needs?
a) Undifferentiated marketing
b) Differentiated marketing
c) Mass marketing
d) Concentrated marketing
Answer: b) Differentiated marketing
Explanation: Differentiated marketing targets specific segments with different products or marketing strategies, aiming to meet the unique needs of each segment.
Question 35
What is the primary goal of guerrilla marketing?
a) To increase the market share of premium products
b) To create a viral effect using unconventional methods
c) To use high-budget campaigns to promote a brand
d) To establish long-term partnerships with other brands
Answer: b) To create a viral effect using unconventional methods
Explanation: Guerrilla marketing focuses on low-cost, unconventional strategies that aim to create a viral effect and engage customers in unexpected ways.
Question 36
Which type of research method involves structured one-on-one conversations to gather in-depth insights?
a) Focus groups
b) In-depth interviews
c) Ethnographic research
d) Behavioral observation
Answer: b) In-depth interviews
Explanation: In-depth interviews involve one-on-one conversations with participants to gather detailed information on a specific topic, allowing researchers to explore ideas more deeply than in group settings.
Question 37
In adaptive selling, which customer type is characterized by high assertiveness and high responsiveness?
a) Amiable
b) Analytical
c) Driver
d) Expressive
Answer: d) Expressive
Explanation: Expressive customers are highly assertive and highly responsive, typically enjoying social interactions and being enthusiastic during the buying process.
Question 38
Which type of marketing strategy uses a single offer and marketing mix for all segments?
a) Differentiated marketing
b) Undifferentiated marketing
c) Niche marketing
d) Micromarketing
Answer: b) Undifferentiated marketing
Explanation: Undifferentiated marketing involves a single offer and marketing strategy aimed at the entire market, without segmentation.
Question 39
What is the main objective of product development in the Strategic Opportunity Matrix?
a) Entering new markets with new products
b) Developing new products for existing markets
c) Expanding market share with existing products
d) Entering existing markets with existing products
Answer: b) Developing new products for existing markets
Explanation: Product development focuses on creating new products for the markets the company already serves, allowing the business to innovate within its current customer base.
Question 40
Which research method is best for gathering data on consumer behavior that can be statistically analyzed?
a) Qualitative research
b) Quantitative research
c) Ethnographic research
d) Focus groups
Answer: b) Quantitative research
Explanation: Quantitative research focuses on gathering numerical data that can be counted, tabulated, and statistically analyzed, providing measurable insights into consumer behavior.
