Solved Final Term MGT301- Principles of Marketing 2008

FINALTERM  EXAMINATION

Fall 2008

MGT301- Principles of Marketing (Session - 1)

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Question No: 1    ( Marks: 1 )    - Please choose one

 Which one of the following is termed as embargo?

       ► Budget reforms

       ► Heavy taxes

       ► Strongest form of quota

       ► Heavy trade deficit

   

Question No: 2    ( Marks: 1 )    - Please choose one

 Which one of the following is designated as a runner-up firm that chooses not to rock the boat (usually out of fear that it stands to lose more than it might gain)?

       ► Market leader

       ► Market challenger

       ► Market follower

       ► Market niche

    

Question No: 3    ( Marks: 1 )    - Please choose one

 Review of the sales, costs and profit projections for a new product to find out whether these factors satisfy the company’s objectives comes under which one of the following concepts?

       ► Business Analysis

       ► Product Development

       ► Test Marketing

       ► Commercialization

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Question No: 4    ( Marks: 1 )    - Please choose one

 The concept of market _____________ arranges for a product to occupy a clear, distinctive, and desirable place relative to competition.

       ► Positioning

       ► Place

       ► Price

       ► Product

   

Question No: 5    ( Marks: 1 )    - Please choose one

 Which one of the following authorities might use several tools like news, speeches and special events for the marketing purpose?

       ► Advertising agencies

       ► Advertising specialists

       ► Public relation professionals

       ► Computer programmers

   

Question No: 6    ( Marks: 1 )    - Please choose one

 Lobbying or building and maintaining relations with legislators and government officials to influence legislation and regulation are part of which one of the following options?

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       ► Business ethics

       ► Press relations

       ► Press agencies

       ► Public relations

   

Question No: 7    ( Marks: 1 )    - Please choose one

 The standards set for salespeople, stating the quantity they should sell and how sales should be divided among the company’s products refers to which one of the following options?

       ► Sales goals

       ► Company quotas

       ► Sales quotas

       ► Sales incentives

   

Question No: 8    ( Marks: 1 )    - Please choose one

 A growing trend for many companies is to use a group of people from sales, marketing, engineering, finance, technical support and even upper management to service large, complex accounts. It refers to which one of the following approaches?

       ► Department selling

       ► Multiple selling

       ► Team selling

       ► Simultaneous selling

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Question No: 9    ( Marks: 1 )    - Please choose one

 To reduce time demands on their outside sales forces, many companies have increased the size of their inside sales forces, which include technical support people and sales assistants. Which one of the following can also be another part of the sales force?

       ► Order takers

       ► Order getters

       ► Telemarketers

       ► Secretaries

   

Question No: 10    ( Marks: 1 )    - Please choose one

 When a firm sets out to analyze, plan, implement, and control sales force activities through sales force management. What does it set and design?

       ► Team selling efforts

       ► Promotional objectives

       ► Sales territories

       ► Sales force strategies

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Question No: 11    ( Marks: 1 )    - Please choose one

 The principles of personal selling described as which one of the following orientation?

       ► Service orientation

       ► Customer orientation

       ► Transaction orientation

       ► Relationship orientation

   

Question No: 12    ( Marks: 1 )    - Please choose one

 Which of the following communication and promotion tools involve direct connections with customers aimed toward building customer-unique value and lasting relationships?

       ► Personal selling and direct marketing

       ► Public relation and publicity

       ► E-commerce and e-business

       ► Advertising and sales promotion

   

Question No: 13    ( Marks: 1 )    - Please choose one

 The various stages of the personal selling process are illustrated below, which one of the following is NOT specific roles of the sales representative?

       ► Negotiating and closing the sale

       ► Sales presentation

       ► Prospecting

       ► Devising product strategy

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Question No: 14    ( Marks: 1 )    - Please choose one

 Fraudulent usage, inability to attract potentially brand-loyal customers and use by current customers but not new customers are believed to be disadvantages of which of the following?

       ► Money refunds

       ► Frequent-user incentives

       ► Coupons

       ► Premiums

   

Question No: 15    ( Marks: 1 )    - Please choose one

 Expensive Coca-Cola television ads primarily are a type of which of the following advertising?

       ► Informative advertising

       ► Comparative advertising

       ► Persuasive advertising

       ► Reminder advertising

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Question No: 16    ( Marks: 1 )    - Please choose one

 In which of the following advertising a company directly or indirectly compares its brand with one or more other brands?

       ► Informative advertising

       ► Institutional advertising

       ► Reminder advertising

       ► Comparative advertising

   

Question No: 17    ( Marks: 1 )    - Please choose one

 Communication through a news story regarding an organization or its products that is transmitted through a mass medium at no charge, refers to which one of the following promotion mix?

       ► Advertising

       ► Sales promotion

       ► Personal selling

       ► Public relations

   

Question No: 18    ( Marks: 1 )    - Please choose one

 Slow feedback, high costs and difficulty in measuring effects on sales are disadvantages of which one of the following promotion mix ingredient?

       ► Public relations

       ► Sales promotion

       ► Personal selling

       ► Advertising

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Question No: 19    ( Marks: 1 )    - Please choose one

 Which one of the following takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold?

       ► Selling agent

       ► Commission broker

       ► Commission merchant

       ► Selling broker

   

Question No: 20    ( Marks: 1 )    - Please choose one

 Which one of the following is the primary purpose of a broker?

       ► Take title to a producer's goods

       ► Sell directly to the final consumer

       ► Sell directly to producers

       ► Bring buyers and sellers together

   

Question No: 21    ( Marks: 1 )    - Please choose one

 If a retailer needed help with store design and training sales personnel, it would most likely use the services of which of the following wholesalers?

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       ► Full-service wholesaler

       ► Full-price wholesaler

       ► Rack jobber

       ► Cash-and-carry wholesaler

   

Question No: 22    ( Marks: 1 )    - Please choose one

 Which one of the following statement refers to manual order processing?

       ► Integrates the order processing and production planning

       ► Is flexible in special situations

       ► Is practical for a large volume of orders

       ► Is the most widely used form of order processing

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Question No: 23    ( Marks: 1 )    - Please choose one

 Which one of the following concept reflects the term “Order processing”?

       ► Is the same as order handling

       ► Is characterized by electronic processing

       ► Is the receipt and transmission of sales order information

       ► Is the second stage in a physical distribution system

   

Question No: 24    ( Marks: 1 )    - Please choose one

 Order processing, inventory management, materials handling, warehousing, and transportation fall under which of the following activities?

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       ► Wholesaling

       ► Retailing

       ► Physical distribution

       ► Channel management

   

Question No: 25    ( Marks: 1 )    - Please choose one

 The success of each channel member depends on the performance of which of the following?

       ► Key channel members

       ► The entire supply chain

       ► The manufacturer

       ► The wholesaler

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Question No: 26    ( Marks: 1 )    - Please choose one

 Nationally distributed consumer convenience products such as cigarettes are MOST likely distributed through which of the following channels?

       ► Producer, agents, wholesalers, retailers, consumers

       ► Producer, wholesalers, consumers

       ► Producer, wholesalers, retailers, consumers

       ► Producer, industrial distributor, wholesalers, retailers, consumers

   

Question No: 27    ( Marks: 1 )    - Please choose one

 ABC Company, the sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in which of the following channels?

       ► Vertical channel integration

       ► A conventional marketing channel

       ► Horizontal channel integration

       ► Channel expansion

   

Question No: 28    ( Marks: 1 )    - Please choose one

 Which one of the following statement about price changes is TRUE?

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       ► Large-market share brands are hurt more by price changes than smaller companies

       ► Temporary retail price reductions substantially decrease store traffic

       ► Brand equity is unaffected by frequent price changes

       ► Price changes for high-quality brands affect private label brands and weaker brands disproportionately

   

Question No: 29    ( Marks: 1 )    - Please choose one

 Which one of the following pricing policy may result in losing money on the product?

       ► Psychological discounting

       ► Penetration pricing

       ► Special-event pricing

       ► Price leader

   

Question No: 30    ( Marks: 1 )    - Please choose one

 Quantity discounts are a legal form of price discrimination. A quantity discount is a price reduction to buyers who purchase _____.

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       ► Large volumes

       ► Inferior merchandise

       ► Superior merchandise

       ► Frequently

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Question No: 31    ( Marks: 1 )    - Please choose one

 Which one of the following pricing method is the simplest pricing method?

       ► Value-based

       ► Fixed cost

       ► Cost-based

       ► Skimming

   

Question No: 32    ( Marks: 1 )    - Please choose one

 When Kodak sets the general price range, low for its cameras and set high for its related film , it is practicing which one of the following pricing?

       ► Market-penetration pricing

       ► Market-skimming pricing

       ► Product line pricing

       ► Captive-product pricing

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Question No: 33    ( Marks: 1 )    - Please choose one

 Which of the following is NOT a major factor for making firms price decisions?

       ► Environmental factors

       ► Marketing objectives

       ► Past sales

       ► Marketing mix strategy

   

Question No: 34    ( Marks: 1 )    - Please choose one

 Which one of the following statement reflects the market share pricing objective?

       ► Is not recommended when sales for the total industry are declining

       ► Is not especially useful when sales for the total industry are increasing

       ► Is not especially useful when sales for the total industry are flat

       ► Can be used effectively whether total industry sales are rising or falling

   

Question No: 35    ( Marks: 1 )    - Please choose one

 The consumer decides to make use of the product on a regular basis. Which one of the following concepts BEST describe it?

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       ► Awareness

       ► Interest

       ► Trial

       ► Adoption

   

Question No: 36    ( Marks: 1 )    - Please choose one

 Which of the following are industrial products that aid in the buyer’s production or operations, including installations and accessory equipment?

       ► Materials

       ► Specialty items

       ► Capital items

       ► Supplies

   

Question No: 37    ( Marks: 1 )    - Please choose one

 What is the stage of the buyer decision process in which the consumer uses information to evaluate brands in the choice set?

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       ► The alternative evaluation stage

       ► The situational stage

       ► The experimental stage

       ► The informative stage

   

Question No: 38    ( Marks: 1 )    - Please choose one

 Which one of the following factor influences the consumer buying decision process?

       ► Person-specific

       ► Social

       ► Demographic

       ► Situational

   

Question No: 39    ( Marks: 1 )    - Please choose one

 Marketing researchers usually draw conclusions about large groups of consumers by studying which of the following small component of the total consumer population?

       ► Group

       ► Sample

       ► Target group

       ► Audience

   

Question No: 40    ( Marks: 1 )    - Please choose one

 "Consumers are spending more on products and services that will improve their lives rather than their image” reflects which aspect of the cultural environment?

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       ► People's view of others

       ► People's view of themselves

       ► People's view of organizations

       ► People's view of nature

   

Question No: 41    ( Marks: 1 )    - Please choose one

 Which one of the following is NOT a part of marketing channel firms (intermediaries)?

       ► Physical distribution firm

       ► Marketing service agency

       ► Financial intermediary

       ► Stock exchange

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Question No: 42    ( Marks: 1 )    - Please choose one

 Which one of the following set represents 4 C’s of the marketing mix?

       ► Customer Solution, Cost, convenience, communication

       ► Customer, cost, convenience, comfort

       ► Convenience, communication, coverage, cost

       ► Cost, coverage, communication, consultancy

   

Question No: 43    ( Marks: 1 )    - Please choose one

 Which of the following is an intensive growth strategy of increasing sales in current markets with current products?

       ► Market development

       ► Market penetration

       ► Product development

       ► Market saturation

   

Question No: 44    ( Marks: 1 )    - Please choose one

 Identify the first step in the strategic marketing planning process?

       ► The writing of the mission statement

       ► The establishment of organizational objectives

       ► The formulation of a marketing plan

       ► Hiring a senior planner

   

Question No: 45    ( Marks: 1 )    - Please choose one

 In the Boston Consulting Group approach, which one of the following measure provides a measure of market attractiveness?

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       ► Business portfolio

       ► BCG matrix

       ► Market growth rate

       ► Relative market share

   

Question No: 46    ( Marks: 1 )    - Please choose one

 Which one of the following statements is an example of a problem that may arise in the implementation of the marketing concept?

       ► Dissatisfaction of one segment affects the satisfaction of other segments

       ► Consumers do not understand what the marketing concept is

       ► Dealers do not support the marketing concept

       ► A product may fit the needs of too many segments

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Question No: 47    ( Marks: 1 )    - Please choose one

 Which one of the following statements by a company chairman BEST reflects the marketing concept?

       ► We have organized our business to satisfy the customer needs

       ► We believe that marketing department must organize to sell what we produce

       ► We try to produce only high quality, technically efficient products

       ► We try to encourage company growth in the market

   

Question No: 48    ( Marks: 1 )    - Please choose one

 What does this statement shows “Trade of value between two parties”?

       ► Competition

       ► Transaction

       ► Exchange

       ► Need

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Question No: 49    ( Marks: 1 )    - Please choose one

 Which one of the followings best represent the involvement of management and employees in the continuous improvement of the production of goods and services?

       ► Marketing management

       ► Customer relationship management

       ► Knowledge management

       ► Total quality management

   

Question No: 50    ( Marks: 1 )    - Please choose one

 Which one the following option is related with this statement “Rapid imitation of leader or challenger with moderate country market coverage and emphasis on price sensitive markets. The result is overall moderate share with high shares in selected country markets.”

       ► Global leader strategy

       ► Global challenger strategy

       ► Global follower strategy

       ► Global niche strategy

   

Question No: 51    ( Marks: 5 )

 E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. What do you know about the benefits of using E-Commerce to buyer and seller?

ANS: Benefits of E-Commerce to Buyer:

·        Easy and private

·        Convenience

·        Greater product access

·        Easy to compare products

·        Interaction is easy and immediate

          Benefits of E-Commerce to Sellers

·        It builds relationship between consumer and seller

·        Increased speed and efficiency

·        Flexibility

·        Access and reach is global

·        Cost is reduced

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Question No: 52    ( Marks: 10 )

 Sales promotion is one of the methods of promoting the product in the market. How would you describe it and how many types of Sales Promotion?

ANS:  SALES PROMOTION: Sales promotion is offering of short-term incentives to the buyers to purchase a product or use a service. It forces the buyer to do the purchase now.

      Types of Sales Promotion:

                                There are a total of nine types of sales promotion offers.

• Samples: Samples are offers of a trial amount of a product .It is a way to introduce a new product.
• Coupons: These are certificates that give buyers a saving when they buy a product.
• Premiums: These are goods offered for a free or at a low cost.
• Patronage rewards: These are cash or other awards offered for a regular use of a product.
• Cash refunds: It is a reduction in price after purchase not at the retail outlet.
• Point-of-purchase promotion: In point of purchase promotion a display and demonstration is taken place at the point of purchase.
• Advertising specialties: These are useful things on which the name of  advertiser is written and given to buyers as a gift.
• Price Packs: They offer a saving off the regular price of product. Reduced price is marked by the producer directly on the label.
• Contests: Contests give consumer the chance to win something.   

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Question No: 53    ( Marks: 10 )

 When choosing a distribution strategy a marketer must determine what value a channel member adds to the firm’s products. So marketer must assess the benefits received from utilizing a channel partner. Discuss the benefits Offered by Channel Members in detail?

ANS: DISTRIBUTION/MARKETING CHANNEL: Marketing channel or distribution channel is a set of independent organizations who are involved in the process of making the product available to the consumers.

                   Each member in the distribution channel adds a value to the supply chain. Therefore they must be managed well to achieve maximum benefit.

Benefits offered by channel members:

                 The channel members offer a number of benefits which are as follows

·        Information

·        Matching

·        Contact

·        Negotiation

·        Promotion

·        Physical distribution

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Question No: 54    ( Marks: 10 )

 What do you understand by direct marketing; discuss the advantages of direct marketing?

ANS: DIRECT MARKETING: Direct marketing is the act of narrowly targeting and one to one marketing. Its main aim is to develop long term customer relationship. The marketers interact with customers on a one to one basis.

There are various forms of direct marketing.

    Advantages of direct marketing:

·        It is a strong way of building long term customer relationship.

·        It is convenient

·        The buying process becomes easy

·        It reduces cost and increase efficiency.

·        It provides an easy way to compare products

·        Greater reach to products

  

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