1. Two retailers selling the same brand of televisions start a price war. This is an example of:
A. Vertical channel conflict.
B. Horizontal channel conflict.
C. Disintermediation.
D. Intensive distribution.
2. A luxury car manufacturer only allows its products to be sold in a few exclusive dealerships. This is an example of:
A. Intensive distribution.
B. Exclusive distribution.
C. Selective distribution.
D. Disintermediation.
3. A company decides to use fewer intermediaries to distribute its products. This is an example of:
A. Intensive distribution.
B. Exclusive distribution.
C. Selective distribution.
D. Disintermediation.
4. In an ‘Administered VMS,’ what is the source of coordination and power?
A. Formal contracts.
B. Common ownership.
C. Size and power of one of the channel members.
D. Government regulation.
5. What is the goal of ‘marketing logistics’?
A. To maximize sales revenue regardless of cost.
B. To provide a targeted level of customer service at the least cost.
C. To minimize inventory levels at all costs.
D. To use the most expensive and reliable transportation methods.
6. What is the primary function of a ‘wholesaler’ in a marketing channel?
A. Selling products directly to consumers.
B. Manufacturing the products being sold.
C. Buying products from manufacturers and reselling them to retailers.
D. Providing marketing research and consulting services.
7. What is the MAIN advantage of using a multi-channel distribution system?
A. Reduced distribution costs.
B. Increased control over channel members.
C. Reaching a wider customer base and providing more convenient shopping options.
D. Simplified inventory management.
8. What is the FIRST step in marketing channel design?
A. Identifying major channel alternatives.
B. Setting channel objectives.
C. Evaluating the major alternatives.
D. Implementing the chosen channel.
9. What is the PRIMARY goal of supply chain management?
A. To maximize production output.
B. To minimize transportation costs.
C. To create customer value and build competitive advantage.
D. To reduce the number of suppliers.
10. A clothing brand chooses to sell its products through a few selected department stores and its own online store. This is an example of:
A. Intensive distribution.
B. Exclusive distribution.
C. Selective distribution.
D. Disintermediation.
11. Which of the following is the MOST accurate definition of ‘marketing channels’?
A. The specific advertising campaigns used to promote a product.
B. The set of interdependent organizations involved in the process of making a product or service available for use or consumption.
C. The department within a company responsible for marketing activities.
D. The process of creating, distributing, promoting, and pricing goods, services, and ideas.
12. When identifying major channel alternatives, what are the key considerations?
A. Types of intermediaries, number of intermediaries, and responsibilities of each member.
B. Advertising budget, sales force size, and promotional strategies.
C. Product design, pricing strategy, and packaging options.
D. Customer demographics, competitor analysis, and market trends.
13. Which of the following is the MOST LIKELY outcome of effective supply chain management?
A. Increased inventory holding costs.
B. Reduced product availability.
C. Improved customer satisfaction and loyalty.
D. Higher production costs.
14. What is ‘third-party logistics (3PL)’?
A. Outsourcing logistics functions to independent providers.
B. Managing logistics functions internally within the company.
C. Selling products directly to consumers.
D. Using only one mode of transportation.
15. What is the role of a ‘retailer’ in a marketing channel?
A. Manufacturing goods.
B. Providing financial services to consumers.
C. Selling goods or services directly to consumers for personal, non-business use.
D. Transporting goods from manufacturers to wholesalers.
16. Which of the following is NOT a major trend in marketing logistics?
A. Third-party logistics (3PL).
B. Increasing use of technology and automation.
C. Sustainable logistics.
D. Decreasing focus on customer service.
17. Which of the following is an example of a ‘direct marketing channel’?
A. Selling shoes through a department store.
B. Selling insurance through independent agents.
C. Selling handcrafted jewelry through an online store you own and operate.
D. Selling groceries through a supermarket chain.
18. What is the MOST important benefit of using ‘integrated logistics management’?
A. It shifts the focus from individual logistics functions to a company-wide approach.
B. It reduces the need for warehousing and inventory management.
C. It eliminates the need for transportation.
D. It increases the cost of logistics operations.
19. What does ‘VMS’ stand for in the context of marketing channels?
A. Volume Marketing Strategy.
B. Vertical Marketing System.
C. Value Management System.
D. Variable Marketing Solutions.
20. Which of the following BEST describes a ‘horizontal marketing system’?
A. Two or more companies at one level join together to follow a new marketing opportunity.
B. A system where a single company owns and controls all levels of the distribution channel.
C. A system where independent firms at different levels of production and distribution join together through contracts.
D. A distribution channel where there are no intermediaries.
21. Which of the following is NOT a typical function of a distribution center?
A. Receiving goods.
B. Storing goods.
C. Breaking down bulk shipments.
D. Manufacturing goods.
22. What are the main channel management decisions?
A. Selecting, managing, and motivating individual customers.
B. Selecting, managing, and motivating channel members.
C. Selecting, managing, and motivating competitors.
D. Selecting, managing, and motivating suppliers.
23. A company decides to invest heavily in logistics information management systems. What is the MOST likely reason for this?
A. To reduce the need for transportation.
B. To improve coordination and efficiency across the supply chain.
C. To increase the cost of warehousing.
D. To eliminate the need for human involvement in logistics.
24. Which type of VMS involves independent firms at different levels of production and distribution joining through contracts?
A. Corporate VMS.
B. Contractual VMS.
C. Administered VMS.
D. Horizontal VMS.
25. A soft drink company aims to make its products available in as many outlets as possible. This is an example of:
A. Intensive distribution.
B. Exclusive distribution.
C. Selective distribution.
D. Disintermediation.
26. What is ‘disintermediation’ in the context of marketing channels?
A. Adding more intermediaries to a marketing channel.
B. Removing channel intermediaries.
C. Increasing the price of products sold through a channel.
D. Improving communication between channel members.
27. What is the potential downside of using a longer distribution channel (more intermediaries)?
A. Lower overall costs.
B. Greater control over the final price.
C. Less direct contact with the end customer.
D. Faster delivery times.
28. What are the major functions of logistics?
A. Warehousing, inventory management, transportation, and logistics information management.
B. Advertising, sales promotion, public relations, and direct marketing.
C. Product development, pricing strategy, channel design, and customer service.
D. Market research, segmentation, targeting, and positioning.
29. A manufacturer starts selling its products directly to consumers online, competing with its existing retailers. This is an example of:
A. Horizontal channel conflict.
B. Vertical channel conflict.
C. Multi-channel marketing.
D. Integrated marketing communications.
30. What is ‘channel conflict’?
A. A situation where all channel members agree on strategy.
B. Disagreements among marketing channel members on goals, roles, and rewards.
C. A strategy to increase sales through all channels.
D. A method for improving customer service in a channel.
31. Which of the following is NOT a key element of the communication process in integrated marketing communications (IMC)?
A. The source or sender of the message
B. The encoding of the message
C. The channel or medium used to transmit the message
D. The profitability analysis of the campaign
32. Which of the following best describes ‘encoding’ in the context of the communication process?
A. The receiver’s interpretation of the message
B. The process of converting the sender’s ideas into a message
C. The medium through which the message is delivered
D. The feedback provided by the receiver
33. What is the key difference between advertising and public relations?
A. Advertising is always free, while public relations is paid for
B. Advertising is paid for, while public relations seeks to gain unpaid media coverage
C. Advertising is targeted at consumers, while public relations is targeted at businesses
D. Advertising is more credible than public relations
34. Which promotional element is most effective for generating immediate sales?
A. Advertising
B. Public relations
C. Sales promotion
D. Personal selling
35. What is the role of feedback in the communication process?
A. To encode the message
B. To transmit the message
C. To interpret the message
D. To provide a response to the sender
36. A company offers a discount coupon to customers who sign up for their email list. What promotional tool is being used?
A. Advertising
B. Public relations
C. Sales promotion
D. Personal selling
37. Which of the following factors should be considered when determining the promotional mix?
A. The company’s stock price
B. The target audience’s media consumption habits
C. The CEO’s personal preferences
D. The weather forecast
38. Which of the following is a key benefit of integrated marketing communications (IMC)?
A. Increased marketing budget
B. Improved brand consistency and customer experience
C. Reduced focus on target audience
D. Decreased emphasis on measuring results
39. Which promotional element is most suitable for reaching a large audience at a low cost per exposure?
A. Personal selling
B. Public relations
C. Advertising
D. Direct marketing
40. Which of the following is a disadvantage of using advertising as a promotional tool?
A. High reach and frequency
B. Low cost per exposure
C. Difficulty in measuring effectiveness
D. Ability to target specific audiences
41. Which of the following is an example of a ‘pull’ promotional strategy in the pharmaceutical industry?
A. Offering discounts to hospitals for bulk purchases
B. Providing free samples to doctors
C. Advertising prescription drugs directly to consumers
D. Sponsoring medical conferences
42. A company creates a series of blog posts and infographics to educate customers about their products. What type of marketing communication is this?
A. Advertising
B. Public relations
C. Content marketing
D. Direct marketing
43. What is the purpose of measuring the effectiveness of IMC campaigns?
A. To justify the marketing budget to shareholders
B. To determine the return on investment and identify areas for improvement
C. To win marketing awards
D. To monitor competitor activities
44. What does AIDA stand for in the context of marketing communications?
A. Awareness, Interest, Desire, Action
B. Attention, Innovation, Demand, Availability
C. Analysis, Implementation, Development, Assessment
D. Audience, Impact, Differentiation, Advantage
45. A company launches a social media campaign that encourages customers to create and share content featuring their product. What type of promotional strategy is this?
A. Push strategy
B. Pull strategy
C. Trade promotion
D. Personal selling
46. What is the primary goal of integrated marketing communications (IMC)?
A. To maximize the number of advertisements placed across different media
B. To ensure all marketing and promotional activities communicate a consistent message
C. To reduce the overall marketing budget
D. To target as many consumers as possible, regardless of their needs
47. Which promotional tool is most effective for building long-term relationships with customers?
A. Advertising
B. Sales promotion
C. Personal selling
D. Public relations
48. A company sends out a press release announcing a new product launch. Which promotional element is being used?
A. Advertising
B. Public relations
C. Sales promotion
D. Direct marketing
49. Which element of the promotional mix involves direct interaction between a company representative and a customer?
A. Advertising
B. Public Relations
C. Personal Selling
D. Sales Promotion
50. What is ‘integrated’ in Integrated Marketing Communications (IMC)?
A. The combination of different marketing departments within a company
B. The coordination of all promotional activities to deliver a unified message
C. The use of technology in marketing campaigns
D. The inclusion of customer feedback in marketing strategies
51. What is ‘decoding’ in the communication process?
A. The process of converting a message into symbols
B. The interpretation of the message by the receiver
C. The transmission of the message through a channel
D. The feedback provided by the receiver
52. A company uses a celebrity endorsement in its advertising campaign. What aspect of the communication process is this related to?
A. Encoding
B. Decoding
C. Channel
D. Source
53. What is ‘noise’ in the context of the communication process in IMC?
A. The volume level of a radio advertisement
B. Unplanned static or distortion during the communication process
C. The number of advertisements a consumer is exposed to in a day
D. The use of loud colors in a marketing campaign
54. Which of the following is an example of a ‘push’ promotional strategy?
A. A pharmaceutical company advertising directly to consumers
B. A manufacturer offering incentives to retailers to stock and promote their product
C. A brand creating viral content on social media
D. A company sending out email newsletters to subscribers
55. A company decides to sponsor a local charity event to improve its image. Which promotional element is being used?
A. Advertising
B. Sales promotion
C. Public relations
D. Direct marketing
56. Which of the following is an example of direct marketing?
A. A television commercial
B. A billboard advertisement
C. A personalized email campaign
D. A press release
57. A retailer offers a ‘buy-one-get-one-free’ promotion. What type of promotional tool is this?
A. Advertising
B. Public relations
C. Sales promotion
D. Personal selling
58. What is the advantage of using personal selling as a promotional tool?
A. Low cost per contact
B. Ability to reach a large audience quickly
C. High level of message control
D. Ability to customize the message for each customer
59. Which of the following is a disadvantage of sales promotions?
A. Inability to stimulate immediate sales
B. Potential to damage brand image if overused
C. High cost per contact
D. Difficulty in measuring effectiveness
60. Which of the following is a potential ethical issue in marketing communications?
A. Using a celebrity endorsement
B. Targeting vulnerable populations with potentially harmful products
C. Offering discounts to loyal customers
D. Sponsoring a charity event
61. What is ‘marketing logistics’ (or ‘physical distribution’)?
A. Planning, implementing, and controlling the physical flow of materials, final goods, and related information.
B. Managing the company’s advertising and promotional campaigns.
C. Developing new products and services.
D. Conducting market research and analyzing consumer behavior.
62. What is ‘disintermediation’ in the context of marketing channels?
A. Adding more intermediaries to a marketing channel.
B. Removing channel intermediaries.
C. Improving communication between channel members.
D. Increasing the price of a product as it moves through the channel.
63. What economic criteria should a company consider when evaluating channel alternatives?
A. Sales, costs, and profitability.
B. Market share, brand awareness, and customer satisfaction.
C. Environmental impact, social responsibility, and ethical practices.
D. Technological innovation, research and development, and intellectual property.
64. What adaptive criteria should a company consider when evaluating channel alternatives?
A. The channel’s ability to adapt to environmental changes.
B. The channel’s cost-effectiveness.
C. The channel’s level of customer service.
D. The channel’s technological sophistication.
65. What is the purpose of ‘warehousing’ in logistics?
A. To store goods until they are sold.
B. To transport goods from one location to another.
C. To manage the company’s finances.
D. To provide customer service.
66. What are the three strategies for the number of intermediaries?
A. Intensive, selective, and exclusive distribution.
B. Direct, indirect, and multi-channel distribution.
C. Wholesale, retail, and online distribution.
D. Franchise, corporate, and administered distribution.
67. Franchising is an example of which type of vertical marketing system (VMS)?
A. Corporate VMS.
B. Administered VMS.
C. Contractual VMS.
D. Horizontal VMS.
68. What is the primary function of a ‘value delivery network’?
A. To manage a company’s financial resources.
B. To improve a company’s internal communication.
C. To collectively bring value to target consumers.
D. To oversee a company’s human resources department.
69. What is the primary benefit of using an ‘indirect marketing channel’?
A. Greater control over the product’s pricing.
B. Wider market reach and distribution.
C. Higher profit margins for the manufacturer.
D. Faster delivery times to customers.
70. When evaluating channel alternatives, what control issues should a company consider?
A. The amount of influence the company has over channel member activities.
B. The legal regulations governing channel member behavior.
C. The ethical standards of channel members.
D. The technological capabilities of channel members.
71. What is a ‘horizontal marketing system’?
A. Two or more companies at one level join together to follow a new marketing opportunity.
B. A single company sets up two or more marketing channels to reach one or more customer segments.
C. A system where all channel members are owned by the same company.
D. A system where channel members compete against each other.
72. What is ‘intensive distribution’?
A. Stocking the product in as many outlets as possible.
B. Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.
C. Using more than one but fewer than all of the intermediaries who are willing to carry the company’s products.
D. Selling directly to consumers through online channels.
73. What is ‘inventory management’ in logistics?
A. Managing the flow of information between channel members.
B. Managing the amount of raw materials a company needs.
C. Balancing the costs of too much and too little inventory.
D. Managing the company’s brand image.
74. When designing a marketing channel, what is the first step a company should take?
A. Identify major channel alternatives.
B. Evaluate the major channel alternatives.
C. Analyze consumer needs.
D. Select the channel members.
75. What is the role of a ‘channel captain’ (or ‘channel leader’)?
A. To manage the company’s finances.
B. To exert power and coordinate channel members.
C. To handle customer complaints.
D. To oversee the company’s legal affairs.
76. What are the four major functions of logistics?
A. Warehousing, inventory management, transportation, and logistics information management.
B. Advertising, sales promotion, public relations, and personal selling.
C. Product development, pricing, distribution, and promotion.
D. Market research, segmentation, targeting, and positioning.
77. What is a ‘multi-channel distribution system’?
A. A single channel used to reach multiple customer segments.
B. A system where a firm sets up two or more marketing channels to reach one or more customer segments.
C. A system where multiple companies share the same distribution channel.
D. A system that relies solely on online channels.
78. What is a ‘contractual VMS’?
A. A distribution channel where all members are owned by the manufacturer.
B. A distribution channel where members operate completely independently.
C. A distribution channel where independent firms at different levels join together through contracts.
D. A distribution channel that only uses online retailers.
79. Which of the following is NOT a key function typically performed by marketing channel members?
A. Information gathering and distribution.
B. Promotion and persuasion.
C. Product design and development.
D. Matching and shaping offers to buyer’s needs.
80. What is a ‘corporate VMS’?
A. A marketing system where independent firms join together through contracts.
B. A marketing system that has few channel levels.
C. A marketing system that gives the marketing channel leadership to one company.
D. A marketing system that integrates successive stages of production and distribution under single ownership.
81. What is ‘selective distribution’?
A. Stocking the product in as many outlets as possible.
B. Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.
C. Using more than one but fewer than all of the intermediaries who are willing to carry the company’s products.
D. Selling products only to select customer segments.
82. What are the three major types of vertical marketing systems (VMS)?
A. Corporate, contractual, and administered.
B. Direct, indirect, and multi-channel.
C. Intensive, selective, and exclusive.
D. Wholesale, retail, and online.
83. What is ‘channel conflict’ and why does it occur?
A. Disagreements among channel members regarding goals, roles, and rewards.
B. When a company changes its marketing strategy.
C. When a product is not selling well.
D. When a company enters a new market.
84. Which of the following is the MOST accurate definition of ‘marketing channels’?
A. A set of interdependent organizations involved in the process of making a product or service available for use or consumption.
B. The advertising campaigns used to promote a product or service.
C. The company’s sales force and customer service representatives.
D. The target audience for a company’s products or services.
85. What are the four key considerations when identifying major channel alternatives?
A. Types of intermediaries, number of intermediaries, responsibilities of intermediaries, and competitor analysis.
B. Types of intermediaries, number of intermediaries, responsibilities of intermediaries, and channel length.
C. Types of intermediaries, company size, responsibilities of intermediaries, and channel length.
D. Types of intermediaries, number of intermediaries, government regulations, and channel length.
86. Which of the following is an example of a ‘direct marketing channel’?
A. Selling products through a network of wholesalers and retailers.
B. Selling products through a company-owned website.
C. Selling products through independent franchise owners.
D. Selling products through a multi-level marketing organization.
87. What is the goal of marketing logistics?
A. To maximize sales volume.
B. To provide a targeted level of customer service at the least cost.
C. To minimize transportation expenses.
D. To increase brand awareness.
88. What is ‘exclusive distribution’?
A. Stocking the product in as many outlets as possible.
B. Giving a limited number of dealers the exclusive right to distribute the company’s products in their territories.
C. Using more than one but fewer than all of the intermediaries who are willing to carry the company’s products.
D. Selling products only through the company’s own stores.
89. What is an ‘administered VMS’?
A. A VMS where leadership is assumed through size and power of one or a few dominant channel members.
B. A VMS that is controlled by the government.
C. A VMS that uses only online channels.
D. A VMS that focuses on cost reduction.
90. What is the difference between ‘horizontal conflict’ and ‘vertical conflict’ in a marketing channel?
A. Horizontal conflict occurs between different levels of the same channel, while vertical conflict occurs between firms at the same level of the channel.
B. Horizontal conflict occurs between firms at the same level of the channel, while vertical conflict occurs between different levels of the same channel.
C. Horizontal conflict is always beneficial, while vertical conflict is always detrimental.
D. Horizontal conflict is easier to resolve than vertical conflict.
91. Which of the following is an example of ‘guerrilla marketing’?
A. Running a Super Bowl commercial.
B. Placing ads in a major newspaper.
C. Using unconventional and surprising interactions to promote a product or service.
D. Sponsoring a major sporting event.
92. A clothing company partners with an environmental organization to promote sustainable fashion. This is an example of:
A. Product Placement
B. Cause-Related Marketing
C. Direct Marketing
D. Sales Promotion
93. Which of the following is NOT a benefit of integrated marketing communications?
A. Clearer brand messaging.
B. Increased marketing efficiency.
C. Improved customer relationships.
D. Reduced need for market research.
94. What is a ‘push’ promotional strategy?
A. A strategy that focuses on creating demand from consumers.
B. A strategy that focuses on taking products off the market
C. A strategy that focuses on pushing products through distribution channels to retailers.
D. A strategy that eliminates the need for advertising.
95. Which of the following is NOT a common objective of advertising?
A. To inform
B. To persuade
C. To remind
D. To eliminate competition
96. Which of the following is an example of product placement?
A. Running a television commercial during a popular show.
B. Featuring a product prominently in a movie or TV show.
C. Offering a discount on a product for a limited time.
D. Sponsoring a local community event.
97. What is the role of a media planner in an advertising agency?
A. To create the visual elements of an advertisement.
B. To develop the overall marketing strategy for a client.
C. To determine the best channels to reach the target audience.
D. To manage the budget for an advertising campaign.
98. What does ‘CPM’ stand for in advertising?
A. Cost Per Mille (Thousand)
B. Customer Profit Margin
C. Campaign Performance Measurement
D. Creative Production Management
99. Which of the following is an advantage of using social media marketing?
A. High level of control over message content.
B. Ability to target specific demographics.
C. Guaranteed high return on investment.
D. Elimination of negative feedback.
100. What is ‘frequency’ in the context of media planning?
A. The cost of running an advertisement.
B. The number of people who see an advertisement.
C. The average number of times a person in the target audience is exposed to the advertisement.
D. The length of an advertising campaign.
101. What is ‘brand advocacy’?
A. The process of creating a new brand identity.
B. The promotion of a brand by satisfied customers.
C. The legal protection of a brand name and logo.
D. The process of managing a brand’s reputation during a crisis.
102. What is ‘reach’ in the context of advertising?
A. The persuasive power of an advertisement.
B. The number of times an individual is exposed to an advertisement.
C. The percentage of the target market exposed to an advertisement.
D. The cost-effectiveness of an advertising campaign.
103. What is ‘SEO’ in the context of digital marketing?
A. Search Engine Optimization
B. Sales Execution Optimization
C. Social Engagement Outreach
D. Strategic Enterprise Operations
104. Which promotional element is most suitable for immediate feedback from customers?
A. Advertising
B. Public Relations
C. Direct Marketing
D. Personal Selling
105. A company offers a discount to customers who sign up for its email list. This is an example of:
A. Advertising
B. Public Relations
C. Sales Promotion
D. Personal Selling
106. A company sends personalized emails to its customers based on their past purchases. This is an example of:
A. Mass Marketing
B. Direct Marketing
C. Guerilla Marketing
D. Product Placement
107. What is the key difference between advertising and public relations?
A. Advertising is paid for, while public relations is generally earned.
B. Public relations is paid for, while advertising is generally earned.
C. Advertising focuses on long-term brand building, while public relations focuses on short-term sales.
D. There is no difference between advertising and public relations.
108. Which of the following is a benefit of using direct marketing?
A. Low cost per contact.
B. Ability to personalize messages.
C. High level of credibility.
D. Guaranteed positive brand image.
109. Which promotional tool is most effective for building strong relationships with individual customers?
A. Advertising
B. Sales Promotion
C. Personal Selling
D. Public Relations
110. What is the primary goal of integrated marketing communications (IMC)?
A. To maximize the number of marketing channels used.
B. To ensure consistency of messaging across all customer touchpoints.
C. To reduce marketing costs by eliminating redundant activities.
D. To allow each department to independently manage its marketing efforts.
111. Which of the following is a disadvantage of personal selling?
A. Inability to tailor messages to individual customers.
B. High cost per contact.
C. Lack of immediate feedback.
D. Difficulty in building long-term relationships.
112. What is the purpose of public relations?
A. To directly persuade customers to purchase a product.
B. To manage and maintain a positive image of the company.
C. To generate immediate sales through promotional offers.
D. To control the flow of information to competitors.
113. What is a ‘pull’ promotional strategy?
A. A strategy that focuses on pushing products through distribution channels.
B. A strategy that focuses on creating demand from consumers who then ‘pull’ the product through the channel.
C. A strategy that uses aggressive sales tactics to push products onto retailers.
D. A strategy that eliminates the need for promotional activities.
114. Which of the following is a disadvantage of using advertising?
A. Inability to reach a large audience.
B. High cost per exposure.
C. Lack of control over message content.
D. Difficulty in measuring effectiveness.
115. Which of the following is NOT a key element of the promotional mix?
A. Advertising
B. Public Relations
C. Product Design
D. Sales Promotion
116. A company uses a celebrity endorsement in its advertising campaign. This is an example of:
A. Direct Marketing
B. Public Relations
C. Personal Selling
D. Advertising
117. What is the purpose of a press release?
A. To directly sell products to customers.
B. To announce news and information to the media.
C. To manage internal communication within a company.
D. To conduct market research.
118. A company donates a portion of its profits to a charitable cause. This is an example of:
A. Direct Marketing
B. Sales Promotion
C. Public Relations
D. Cause-Related Marketing
119. Which of the following is an example of a sales promotion?
A. A television commercial.
B. A newspaper article about the company.
C. A ‘buy-one-get-one-free’ offer.
D. A company’s annual report.
120. A company creates a series of short, engaging videos for TikTok to promote its brand. This is an example of:
A. Direct Marketing
B. Public Relations
C. Content Marketing
D. Personal Selling
121. What is ‘omni-channel retailing’?
A. Selling products through only one channel.
B. Selling products through a variety of independent retailers.
C. Creating a seamless cross-channel buying experience.
D. Focusing on only online retailing.
122. What is intensive distribution?
A. Distributing a product through only one outlet in each geographic area.
B. Distributing a product through a limited number of outlets in each geographic area.
C. Distributing a product through as many outlets as possible.
D. Distributing a product directly to consumers.
123. Which type of retailer is characterized by very large stores offering a large assortment of routinely purchased food products, nonfood items, and services?
A. Convenience Store.
B. Supermarket.
C. Specialty store.
D. Category Killer.
124. What is the supply chain?
A. A system of independently owned companies that produce products and services.
B. A network for creating and delivering value to customers.
C. A group of companies that share resources to accomplish a task.
D. A system that optimizes product distribution.
125. What is the term for the activities involved in selling products or services directly to final consumers for their personal, nonbusiness use?
A. Wholesaling.
B. Retailing.
C. Distribution.
D. Supply chain management.
126. What is the primary goal of integrated logistics management?
A. To minimize transportation costs.
B. To maximize warehouse space utilization.
C. To streamline the entire supply chain for customer value.
D. To negotiate the lowest prices with suppliers.
127. Which of the following is an example of a contractual vertical marketing system?
A. A corporate-owned chain of retail stores.
B. A franchise organization.
C. A channel dominated by a powerful manufacturer.
D. Independent retailers collaborating on promotions.
128. A company uses both its own sales force and independent distributors to sell its products. This is an example of what type of channel arrangement?
A. Exclusive distribution.
B. Selective distribution.
C. Intensive distribution.
D. Multichannel distribution.
129. What is horizontal marketing system?
A. A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity.
B. A distribution channel in which producers sell directly to consumers.
C. A channel arrangement in which two or more companies at different levels join together to follow a new marketing opportunity.
D. A distribution channel in which producers sell through retailers.
130. What is the term for a distribution system that is designed to minimize costs and maximize efficiency?
A. Just-in-time logistics.
B. Reverse logistics.
C. Lean logistics.
D. Agile logistics.
131. What is disintermediation in the context of marketing channels?
A. Adding more intermediaries to the distribution channel.
B. Removing intermediaries from the distribution channel.
C. Creating a new type of intermediary.
D. Ignoring intermediaries altogether.
132. Which of the following is an advantage of using a corporate VMS (Vertical Marketing System)?
A. Greater channel control.
B. Lower capital investment.
C. Increased channel flexibility.
D. Wider market coverage.
133. What is the purpose of reverse logistics?
A. To move products from the manufacturer to the retailer.
B. To manage the flow of returns and recycling.
C. To optimize transportation routes.
D. To reduce warehousing costs.
134. Which of the following best describes ‘vendor-managed inventory’ (VMI)?
A. The vendor controls all of the retailer’s marketing activities.
B. The vendor is responsible for managing the retailer’s inventory levels.
C. The retailer manages the vendor’s inventory levels.
D. The vendor and retailer share inventory management responsibilities equally.
135. A grocery store that offers a relatively limited selection of high-turnover items at discount prices is likely a:
A. Specialty store.
B. Category killer.
C. Warehouse club.
D. Off-price retailer.
136. What is the key difference between a category killer and a specialty store?
A. Category killers offer deeper assortments within a specific category.
B. Specialty stores offer lower prices than category killers.
C. Category killers are typically smaller than specialty stores.
D. Specialty stores focus on a wider range of product categories.
137. What is the main advantage of using selective distribution?
A. Maximum market coverage.
B. Greater control over reseller efforts.
C. Lower distribution costs.
D. Wider product availability.
138. Which of the following is a key advantage of using a direct marketing channel?
A. Wider market coverage.
B. Lower initial investment.
C. Greater control over the brand image.
D. Faster delivery times.
139. Which of the following is an example of a service retailer?
A. Walmart.
B. Target.
C. Best Buy.
D. A hair salon.
140. Which of the following is NOT one of the major logistics functions?
A. Warehousing.
B. Inventory management.
C. Transportation.
D. Advertising.
141. A retailer that offers a wide variety of product lines, each operated as a separate department managed by specialist buyers or merchandisers, is known as a:
A. Specialty store.
B. Convenience store.
C. Department store.
D. Supermarket.
142. What is the primary role of a distribution center?
A. To manufacture products.
B. To store products for long periods of time.
C. To receive, store, and redistribute goods to retailers.
D. To sell products directly to consumers.
143. Which of the following is NOT a typical function of marketing channels?
A. Information gathering and distribution.
B. Promotion development and dissemination.
C. Inventory management and storage.
D. Product design and engineering.
144. Which of the following is NOT a major decision relating to marketing channel design?
A. Determining the number of channel levels.
B. Identifying the major channel alternatives.
C. Evaluating the different channel alternatives.
D. Setting the advertising budget.
145. Which of the following is NOT a type of non-store retailing?
A. Direct selling.
B. Online retailing.
C. Catalog retailing.
D. Department store retailing.
146. If a company wants to achieve intensive distribution, which type of intermediary would be most suitable?
A. Exclusive dealerships.
B. A small number of carefully selected retailers.
C. As many outlets as possible.
D. Direct sales force.
147. Which of the following is NOT a major trend in retailing?
A. The rise of mega-retailers.
B. The growing importance of retail technology.
C. The decline of non-store retailing.
D. The increasing use of omni-channel retailing.
148. What is the term for using point-of-sale transaction data to identify customer purchasing patterns and tailor marketing efforts?
A. Data mining.
B. Supply chain optimization.
C. Inventory management.
D. Logistics planning.
149. What is the term for a retailer that carries a narrow product line with a deep assortment within that line?
A. Convenience store.
B. Specialty store.
C. Supermarket.
D. Department store.
150. Which of the following is a major trend in supply chain management?
A. Decreasing reliance on technology.
B. Increased emphasis on sustainability.
C. Reduced focus on customer service.
D. Decreasing globalization of supply chains.
