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web.groovymark@gmail.com
- November 28, 2024
Question 01
What is the purpose of a SWOT analysis in marketing?
a) To identify strengths and weaknesses in customer behavior
b) To analyze the internal and external factors affecting a business
c) To develop a marketing budget for a product launch
d) To compare competitors’ market share
Answer: b) To analyze the internal and external factors affecting a business
Explanation:
SWOT analysis helps businesses understand their strengths, weaknesses, opportunities, and threats, providing a framework for making informed strategic decisions.
Question 02
Which element of the marketing mix directly influences revenue generation?
a) Product
b) Price
c) Place
d) Promotion
Answer: b) Price
Explanation:
Price directly impacts a company’s revenue by determining what customers will pay for a product or service, influencing both sales volume and profitability.
Question 03
What does the ‘Dual Concern Model’ in conflict management show?
a) The balance between cooperation and empathy in communication
b) The varying degrees of cooperation and assertiveness in conflict styles
c) The concern for customer feedback and company performance
d) The relationship between employee satisfaction and productivity
Answer: b) The varying degrees of cooperation and assertiveness in conflict styles
Explanation:
The Dual Concern Model illustrates how conflict management styles vary based on a person’s concern for others (cooperation) and for themselves (assertiveness).
Question 04
Which growth strategy involves selling existing products in new markets?
a) Diversification
b) Market development
c) Product development
d) Market penetration
Answer: b) Market development
Explanation:
Market development focuses on introducing existing products into new geographic regions or customer segments to expand a company’s reach.
Question 05
When does closing the sale typically begin in the sales process?
a) When the customer places an order
b) When the seller presents the product to the customer
c) During the first step of the sales process—qualifying
d) After a customer expresses interest in the product
Answer: c) During the first step of the sales process—qualifying
Explanation:
Closing begins with the qualifying step, as building rapport and trust lays the foundation for a successful close later in the sales process.
Question 06
Which research method focuses on gathering data through observation of consumer behavior?
a) Focus groups
b) Behavioral observation
c) In-depth interviews
d) Survey research
Answer: b) Behavioral observation
Explanation:
Behavioral observation allows marketers to gain insights into customer actions and patterns without directly interacting with them, which can reveal unconscious preferences or behaviors.
Question 07
What are the controllable elements in the marketing environment?
a) Product, price, promotion, and place
b) Technology, legal, and economic factors
c) Competition, government, and social trends
d) Political, environmental, and demographic factors
Answer: a) Product, price, promotion, and place
Explanation:
The controllable elements of the marketing mix are product, price, promotion, and place, which are directly influenced by a company’s decisions and strategies.
Question 08
According to the BCG Matrix, what is the best approach for managing a “Cash Cow”?
a) Invest heavily in marketing to increase market share
b) Divest the product to avoid losses
c) Milk the product for cash while minimizing investment
d) Rebrand the product to compete with market leaders
Answer: c) Milk the product for cash while minimizing investment
Explanation:
Cash cows generate consistent revenue with minimal investment, as they have high market share but are in a low-growth industry.
Question 09
Which of the following is an unethical pricing practice?
a) Prestige pricing
b) Bait and switch
c) Competitive pricing
d) Bundling
Answer: b) Bait and switch
Explanation:
Bait and switch is an unethical pricing tactic where a company advertises a low price to lure customers in, only to sell them a more expensive product.
Question 10
Which targeting strategy focuses on a single offer for all market segments?
a) Concentrated marketing
b) Differentiated marketing
c) Undifferentiated marketing
d) Micromarketing
Answer: c) Undifferentiated marketing
Explanation:
Undifferentiated marketing uses one product or offer for the entire market, aiming to appeal to all segments without tailoring the marketing mix.
Question 11
Which component of the marketing mix focuses on the cost of a product?
a) Product
b) Price
c) Promotion
d) Place
Answer: b) Price
Explanation:
Price involves determining the cost of a product to the consumer, which influences both sales and profitability.
Question 12
What is the primary purpose of market segmentation?
a) To determine pricing strategies
b) To analyze competitors’ strengths
c) To group customers with similar needs
d) To increase product lines
Answer: c) To group customers with similar needs
Explanation:
Market segmentation involves dividing a market into distinct groups based on shared characteristics to better tailor marketing efforts to customer needs.
Question 13
In the Boston Consulting Group (BCG) matrix, what is a “Star”?
a) A product with low market share and low growth potential
b) A product with high market share and high growth potential
c) A product with high market share but in a declining market
d) A product that is unprofitable and needs to be discontinued
Answer: b) A product with high market share and high growth potential
Explanation:
A star is a product in a fast-growing market with a high market share, and it has the potential to become a cash cow as the market matures.
Question 14
What is the final step in the consumer decision-making process?
a) Problem recognition
b) Purchase decision
c) Post-purchase behavior
d) Information search
Answer: c) Post-purchase behavior
Explanation:
Post-purchase behavior occurs after the consumer has made a purchase, where they assess their satisfaction and the overall buying experience.
Question 15
Which strategy is used to increase market share by selling more of the same product in existing markets?
a) Market penetration
b) Product development
c) Diversification
d) Market development
Answer: a) Market penetration
Explanation:
Market penetration involves increasing sales of existing products to existing markets, typically through tactics like promotions or price adjustments.
Question 16
What are the primary roles of “Gatekeepers” in the organizational buying process?
a) Suggest purchasing a product or service
b) Control the flow of information in the buying process
c) Make the final purchase decision
d) Use the purchased product or service
Answer: b) Control the flow of information in the buying process
Explanation:
Gatekeepers manage and control the information flow to decision-makers within an organization, influencing what details are considered during the buying process.
Question 17
What does the PEST analysis primarily focus on?
a) Product features and brand positioning
b) Economic, social, and technological changes
c) Internal strengths and weaknesses
d) Competitor analysis and market share
Answer: b) Economic, social, and technological changes
Explanation:
PEST analysis examines the external macro-environmental factors that affect a business, including political, economic, social, and technological trends.
Question 18
Which research approach is best suited for collecting data that can be counted and statistically analyzed?
a) Qualitative research
b) Quantitative research
c) Ethnographic research
d) Focus groups
Answer: b) Quantitative research
Explanation:
Quantitative research gathers numerical data that can be measured and statistically analyzed, making it ideal for testing hypotheses and making data-driven decisions.
Question 19
What type of pricing strategy involves setting a high price for a new product to maximize profitability early on?
a) Penetration pricing
b) Price skimming
c) Bundling
d) Leader pricing
Answer: b) Price skimming
Explanation:
Price skimming is used to set high initial prices for new products to capitalize on early demand and maximize profitability before lowering the price over time.
Question 20
Which of the following is a key factor in determining whether a negotiation style is distributive or integrative?
a) Number of participants involved
b) Relationship between the parties
c) Whether the pie is fixed or expandable
d) The timeline for decision-making
Answer: c) Whether the pie is fixed or expandable
Explanation:
Distributive negotiation assumes a fixed pie that needs to be divided (win-lose), whereas integrative negotiation seeks to expand the pie so that both parties can benefit (win-win).
