1. When choosing a differentiation strategy, a company should consider:
A. Only its internal resources and capabilities.
B. Only the competitors’ strategies.
C. Its resources, the competitors’ strategies, and the needs of the target market.
D. Only the latest technological trends.
2. A car manufacturer offers different models targeting different income levels and lifestyles. This is an example of:
A. Undifferentiated marketing
B. Differentiated marketing
C. Micromarketing
D. Concentrated marketing
3. A company that offers ‘more for more’ is providing:
A. A low-price guarantee.
B. The most upscale product or service and charges a higher price to cover the higher costs.
C. A product that is comparable, but at a lower price.
D. The best value for money.
4. A company promoting its product as the ‘most reliable’ is using which type of differentiation?
A. Services differentiation
B. Channel differentiation
C. Image differentiation
D. Product differentiation
5. Which of the following is an example of psychographic segmentation?
A. Dividing the market based on age and gender.
B. Dividing the market based on income levels.
C. Dividing the market based on lifestyle and values.
D. Dividing the market based on geographic region.
6. Which of the following is NOT a demographic variable used for market segmentation?
A. Age
B. Income
C. Lifestyle
D. Occupation
7. What is the risk associated with a ‘more for the same’ positioning strategy?
A. It might not be sustainable in the long run if competitors can easily match the offering.
B. It always leads to higher profits.
C. It appeals to a very small segment of customers.
D. It is easy to implement and requires minimal investment.
8. Why is it important to regularly review and adjust a company’s positioning strategy?
A. Because customer needs and competitive landscapes change over time.
B. Because it is required by law.
C. Because it reduces marketing expenses.
D. Because it guarantees increased sales.
9. What is the primary goal of differentiation?
A. To offer the lowest price in the market.
B. To create superior customer value and competitive advantage.
C. To target all customers in the market.
D. To minimize production costs.
10. Which of the following is NOT a common differentiation strategy?
A. Product differentiation
B. Services differentiation
C. Channel differentiation
D. Price differentiation (offering the same product at the same price)
11. Which targeting strategy is most suitable for a company with limited resources?
A. Mass marketing
B. Differentiated marketing
C. Concentrated (niche) marketing
D. Micromarketing
12. A software company focuses on providing solutions for small businesses only. This is an example of:
A. Mass marketing
B. Niche marketing
C. Differentiated marketing
D. Micromarketing
13. A company decides to target only affluent customers with its luxury goods. This is an example of:
A. Mass marketing
B. Niche marketing
C. Micromarketing
D. Differentiated marketing
14. A company promising ‘the same for less’ is likely to:
A. Focus on providing superior quality.
B. Compete on price and efficiency.
C. Target a niche market.
D. Offer highly customized products.
15. What is ‘product positioning’ in marketing?
A. The physical location where a product is sold.
B. The way a product is defined by consumers on important attributes.
C. The process of manufacturing a product.
D. The price at which a product is sold.
16. What is the main advantage of differentiated marketing?
A. Lower marketing costs
B. Higher customer loyalty and sales
C. Simpler marketing strategies
D. Reaching a broader audience with a single message
17. Market segmentation primarily involves:
A. Selling a product at different prices to different customers.
B. Dividing a market into distinct groups of buyers with different needs.
C. Aggregating all customers into one large group.
D. Ignoring differences among customers to achieve economies of scale.
18. A restaurant chain offers a senior citizen discount. This is an example of:
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
19. What is the purpose of a positioning statement?
A. To define the company’s financial goals.
B. To summarize the company’s marketing budget.
C. To communicate the unique value proposition of the product to the target market.
D. To describe the company’s organizational structure.
20. A company uses data analytics to identify and target potential customers with personalized ads. This is an example of:
A. Mass marketing
B. Undifferentiated marketing
C. Micromarketing
D. Niche marketing
21. A local bakery decides to offer gluten-free options to cater to customers with dietary restrictions. This is an example of:
A. Mass marketing
B. Product proliferation
C. Benefit segmentation
D. Geographic segmentation
22. Which of the following is a potential pitfall of undifferentiated marketing?
A. High marketing costs
B. Difficulty in meeting the diverse needs of all customers
C. Limited market reach
D. Inability to compete on price
23. A company offers a basic product at a low price, targeting price-sensitive customers. This is an example of:
A. ‘More for more’ value proposition
B. ‘More for the same’ value proposition
C. ‘The same for less’ value proposition
D. ‘Less for much less’ value proposition
24. What is a value proposition?
A. A statement of the company’s mission.
B. The set of benefits or values a company promises to deliver to customers.
C. A detailed description of the product’s features.
D. The company’s financial projections for the next year.
25. Which of the following is NOT a requirement for effective segmentation?
A. Measurable
B. Actionable
C. Homogeneous (all customers within the segment are identical)
D. Substantial
26. A company claims its product offers ‘the best quality at the lowest price’. What potential problem does this positioning face?
A. It is easily believable by customers.
B. It is a very common and effective positioning strategy.
C. It may be difficult to sustain and may not be credible to customers.
D. It always guarantees high profit margins.
27. Which of the following is the best example of micromarketing?
A. Advertising a product on national television.
B. Selling products through a large retail chain.
C. Tailoring products and marketing programs to the needs of specific individuals or local customer segments.
D. Offering a standardized product to all customers.
28. A perceptual map is used to:
A. Track sales data over time.
B. Visually represent consumer perceptions of different brands.
C. Analyze production costs.
D. Determine the optimal price point for a product.
29. Which of the following is an example of behavioral segmentation?
A. Dividing the market based on nationality.
B. Dividing the market based on purchase occasions and usage rates.
C. Dividing the market based on social class.
D. Dividing the market based on climate.
30. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation
B. Differentiation
C. Micromarketing
D. Product proliferation
31. Which of the following scenarios best illustrates a company proactively managing its marketing environment?
A. A company reduces its advertising budget during an economic recession.
B. A company develops a new product in response to a competitor’s launch.
C. A company lobbies for favorable legislation regarding its industry.
D. A company ignores negative customer reviews online.
32. A clothing company is deciding whether to expand into a new international market. Which macroenvironmental factor should they carefully assess to understand potential consumer purchasing power?
A. Technological advancements
B. Political stability
C. Economic conditions
D. Cultural values
33. Which of the following is an example of a ‘political environment’ factor that could affect marketing decisions?
A. Changes in consumer lifestyles.
B. An increase in the unemployment rate.
C. New regulations on advertising to children.
D. The introduction of a new technology.
34. A new law is passed that places strict limits on the advertising of sugary drinks to children. What is the MOST appropriate marketing response for a beverage company?
A. Ignore the law and continue advertising as before.
B. Increase advertising spending to reach a wider audience.
C. Develop healthier alternatives and market them to children.
D. Lobby to have the law overturned.
35. What is the primary focus of Chapter 3 in the context of marketing management?
A. Analyzing the company’s financial statements.
B. Understanding the marketing environment.
C. Developing the product itself.
D. Managing the supply chain logistics.
36. A company that adopts a proactive stance toward the marketing environment is most likely to do which of the following?
A. Accept the marketing environment as uncontrollable.
B. Lobby for legislation to benefit its interests.
C. Passively observe changes in the environment.
D. Avoid investing in market research.
37. Which of the following is NOT a component of a company’s microenvironment?
A. Suppliers
B. Competitors
C. Technological forces
D. Customers
38. A company discovers that its target market is increasingly concerned about environmental sustainability. What is the MOST appropriate marketing response?
A. Maintain current marketing strategies and ignore the trend.
B. Launch a public relations campaign to deny any environmental impact.
C. Adapt products and marketing messages to highlight sustainable practices.
D. Increase advertising spending to distract consumers from the issue.
39. A toy company is planning to launch a new product aimed at children. Which political/legal factor should they be most aware of?
A. Minimum wage laws
B. Regulations on advertising to children
C. Interest rate policies
D. Trade tariffs
40. Which of the following is the BEST example of a company adapting its marketing strategy to a changing demographic trend?
A. A company continues to target the same customer segment despite declining sales.
B. A company launches a new product line specifically designed for senior citizens.
C. A company reduces its marketing budget to cut costs.
D. A company ignores customer feedback and continues with its existing products.
41. Which of the following is considered a demographic trend that marketers should monitor?
A. Changes in interest rates.
B. Shifts in population age and structure.
C. New government regulations.
D. Advancements in manufacturing technology.
42. Which of the following best describes the ‘cultural environment’ in marketing?
A. The technological infrastructure available to a company.
B. The laws and regulations that govern business practices.
C. The institutions and forces that affect a society’s basic values, perceptions, preferences, and behaviors.
D. The economic factors that influence consumer spending.
43. A local bakery is struggling to compete with a large chain bakery that has opened nearby. What microenvironmental factor is MOST directly affecting the local bakery?
A. Changes in government regulations
B. Increased cost of ingredients
C. The emergence of a new competitor
D. Shifting consumer preferences
44. A furniture company is sourcing wood from sustainable forests due to growing consumer concern about deforestation. This is an example of the influence of which macroenvironmental factor?
A. Economic environment
B. Political environment
C. Natural environment
D. Technological environment
45. How might changes in the ‘natural environment’ impact marketing strategies?
A. By affecting the availability of certain resources and increasing environmental awareness among consumers.
B. By influencing government policies related to international trade.
C. By altering the demographic composition of the population.
D. By creating new opportunities for technological innovation.
46. A food manufacturer is facing increasing pressure from environmental groups to reduce its packaging waste. This pressure is an example of which microenvironmental factor?
A. Customers
B. Suppliers
C. Publics
D. Competitors
47. A company is considering expanding into a country with a very different culture from its own. What macroenvironmental factor should it prioritize in its analysis?
A. Economic conditions
B. Technological infrastructure
C. Cultural values
D. Political stability
48. A small business owner notices that a new competitor has opened nearby, offering similar products at lower prices. Which part of the microenvironment does this situation primarily affect?
A. Suppliers
B. Customers
C. Competitors
D. Publics
49. A company’s marketing department is struggling to reach its target audience due to the increasing use of ad-blocking software. This is primarily a challenge related to which macroenvironmental factor?
A. Economic environment
B. Political environment
C. Technological environment
D. Cultural environment
50. A restaurant chain is adapting its menu to include more vegetarian and vegan options due to changing dietary preferences. This is primarily a response to changes in which macroenvironmental factor?
A. Economic environment
B. Cultural environment
C. Political environment
D. Technological environment
51. A software company is struggling to compete with open-source alternatives that are offered for free. This is primarily due to factors in which part of the microenvironment?
A. Suppliers
B. Customers
C. Competitors
D. Publics
52. A company is analyzing its suppliers and distributors to improve efficiency. Which part of the microenvironment is the company focusing on?
A. The company itself
B. Marketing intermediaries
C. Competitors
D. Customers
53. A country experiences a significant increase in disposable income among its population. How would this likely impact marketing strategies for luxury goods?
A. Decrease in demand due to economic uncertainty.
B. Increased focus on value-based pricing.
C. Greater emphasis on exclusive features and premium branding.
D. Shift towards targeting lower-income segments.
54. A major technological breakthrough dramatically reduces the cost of producing solar panels. How might this affect the marketing strategies of energy companies?
A. Reduce investment in renewable energy sources.
B. Increase marketing of traditional fossil fuels.
C. Shift towards promoting solar energy solutions and lower prices.
D. Maintain current strategies without adapting to the change.
55. A non-profit organization relies heavily on donations from the public. Which microenvironmental factor is MOST critical to its success?
A. Suppliers
B. Competitors
C. Publics
D. Marketing intermediaries
56. A tech company is developing a new smartphone. Which macroenvironmental factor should they consider to understand how quickly their product might become obsolete?
A. Demographic trends
B. Economic conditions
C. Political environment
D. Technological environment
57. What is the role of ‘marketing intermediaries’ in the microenvironment?
A. To provide financial support to the company.
B. To help the company promote, sell, and distribute its products to final buyers.
C. To develop new product ideas for the company.
D. To regulate the company’s marketing activities.
58. A car manufacturer introduces a new electric vehicle in response to growing environmental concerns and government incentives. This is an example of adapting to factors in which macroenvironment?
A. Only the economic environment
B. Only the political environment
C. Both the natural and political environments
D. Only the cultural environment
59. What does the term ‘generational marketing’ refer to?
A. Marketing products that last for multiple generations.
B. Creating marketing campaigns that appeal to people of multiple generations simultaneously.
C. Segmenting people by lifestyle or life stage rather than age.
D. Marketing to a specific generation based on their shared experiences and values.
60. What is the significance of understanding the ‘economic environment’ for marketers?
A. It helps in predicting changes in consumer tastes and preferences.
B. It allows them to understand consumer purchasing power and spending patterns.
C. It provides insights into technological advancements.
D. It helps in complying with legal and regulatory requirements.
61. What is a major disadvantage of using telephone interviews for data collection?
A. High degree of interviewer bias
B. Inflexibility in questioning
C. Declining response rates
D. Difficulty in controlling the sample
62. Which of the following is a potential benefit of using social media for marketing research?
A. Access to a representative sample of the population
B. Lower cost compared to traditional research methods
C. Ability to control the research environment
D. Higher response rates than email surveys
63. Which of the following is an example of observational research?
A. Conducting a telephone survey
B. Analyzing sales data from the past year
C. Watching customers interact with a product in a store
D. Organizing a focus group to discuss a new ad campaign
64. A non-profit organization wants to understand the needs of the community it serves. Which research method would be most suitable for gathering in-depth qualitative data?
A. Mail surveys
B. Telephone interviews
C. Focus group interviews
D. Online surveys
65. A marketing manager needs to quickly gather information about competitors’ pricing strategies. Which source of data would be most efficient?
A. Conducting a primary research study
B. Reviewing industry publications and reports
C. Organizing a focus group discussion
D. Performing an experiment
66. What is the key difference between primary and secondary data?
A. Primary data is more expensive than secondary data.
B. Primary data is collected for a specific purpose, while secondary data already exists.
C. Primary data is always more accurate than secondary data.
D. Primary data is easier to access than secondary data.
67. A small business owner wants to understand why sales have declined in the past quarter. Which type of research would be most appropriate?
A. Descriptive research
B. Exploratory research
C. Causal research
D. Experimental research
68. Which of the following is an advantage of using online surveys for data collection?
A. High cost per respondent
B. Slow turnaround time
C. Ability to reach a geographically dispersed sample
D. Limited opportunity for personalization
69. Which of the following sampling methods is a probability sample?
A. Convenience sample
B. Judgment sample
C. Quota sample
D. Simple random sample
70. What is the main purpose of marketing intelligence?
A. To conduct primary research
B. To gather and analyze publicly available information about competitors and the market environment
C. To manage customer relationships
D. To develop new products
71. A company wants to understand how customers perceive its brand compared to competitors. What type of research would be most appropriate?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Experimental research
72. A company is getting ready to launch a new product. To predict first-year sales, they should use:
A. Exploratory research
B. Descriptive research
C. Causal research
D. Forecasting techniques based on historical data and market trends
73. Which of the following best describes a ‘focus group’?
A. A large-scale survey distributed to a wide audience
B. A small group of people brought together to discuss a specific topic
C. An experiment conducted in a laboratory setting
D. A statistical analysis of sales data
74. What type of data consists of information already collected for another purpose?
A. Primary data
B. Secondary data
C. Experimental data
D. Observational data
75. A company is considering launching a new product and wants to determine the best price point. Which research method would be most effective?
A. Observational research
B. Survey research
C. Experimental research
D. Focus group research
76. What is the potential downside of using ‘big data’ for marketing research?
A. It is too expensive for most companies
B. It is difficult to analyze
C. It may contain biases and inaccuracies
D. It is not relevant to marketing decisions
77. What is the first step in the marketing research process?
A. Developing the research plan
B. Implementing the research plan
C. Defining the problem and research objectives
D. Interpreting and reporting the findings
78. A company uses its CRM system to identify a group of customers who have made repeat purchases and are highly profitable. What is this an example of?
A. Market segmentation
B. Data mining
C. Marketing intelligence
D. Customer service
79. A company is experiencing a high churn rate (customers leaving). How can they use marketing research to address this issue?
A. By launching a new advertising campaign
B. By conducting surveys and interviews to understand why customers are leaving
C. By lowering prices on their products
D. By increasing their marketing budget
80. A company wants to measure the effectiveness of its new advertising campaign. What type of research would be most appropriate?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Observational research
81. A grocery store chain wants to determine the optimal layout for its produce section to maximize sales. Which research method would be most suitable?
A. Survey research
B. Focus group research
C. Experimental research
D. Observational research
82. Which of the following is a potential ethical issue in marketing research?
A. Using complex statistical analysis
B. Disseminating research findings widely
C. Intruding on consumer privacy
D. Employing trained interviewers
83. What type of research is used to test hypotheses about cause-and-effect relationships?
A. Descriptive research
B. Causal research
C. Exploratory research
D. Observational research
84. What is the purpose of a ‘double-barreled’ question in survey design?
A. To simplify the question for respondents
B. To gather information on two different topics at once
C. To confuse respondents and get more honest answers
D. There is no purpose; ‘double-barreled’ questions should be avoided
85. Which of the following is NOT a key component of a marketing information system (MIS)?
A. Internal company records
B. Marketing intelligence activities
C. Marketing research
D. Production scheduling
86. A company wants to understand customer satisfaction with its new product line. Which research approach would be most suitable?
A. Observational research
B. Survey research
C. Experimental research
D. Focus group research
87. What is the primary goal of customer relationship management (CRM)?
A. To reduce marketing expenses
B. To maximize short-term sales
C. To manage detailed information about individual customers
D. To standardize product offerings
88. What is the primary advantage of using a ‘random sample’ in marketing research?
A. It is the cheapest sampling method
B. It guarantees that the sample is representative of the population
C. It allows every member of the population to have an equal chance of being selected
D. It is the easiest sampling method to implement
89. Which type of research is best suited for gathering preliminary information that will help define the problem and suggest hypotheses?
A. Descriptive research
B. Causal research
C. Exploratory research
D. Experimental research
90. A marketing manager is reviewing internal databases to identify customer trends. Which component of the MIS is being utilized?
A. Marketing intelligence
B. Marketing research
C. Internal records
D. Marketing analytics
91. A company decides to target teenagers with a new line of clothing. Which type of segmentation is this?
A. Psychographic segmentation
B. Geographic segmentation
C. Demographic segmentation
D. Behavioral segmentation
92. What is the purpose of a perceptual positioning map?
A. To track employee performance
B. To visually represent consumer perceptions of different brands on important buying dimensions
C. To analyze production costs
D. To monitor supply chain efficiency
93. What is the primary benefit of using market segmentation for a business?
A. Reduces overall business costs
B. Allows for more efficient and effective marketing
C. Increases the number of competitors
D. Simplifies product development
94. Which of the following is an example of differentiated marketing?
A. A small bakery selling only one type of bread
B. A large corporation offering various products tailored to different customer segments
C. A local store focusing on customers within a 5-mile radius
D. A startup using social media for all its marketing efforts
95. A company that produces only salt is likely using which targeting strategy?
A. Concentrated marketing
B. Micromarketing
C. Undifferentiated marketing
D. Differentiated marketing
96. Which targeting strategy focuses on serving a small market segment that larger organizations overlook?
A. Mass marketing
B. Differentiated marketing
C. Niche marketing
D. Micromarketing
97. What is ‘behavioral segmentation’ primarily based on?
A. Customer’s geographic location
B. Customer’s personality traits
C. Customer’s knowledge, attitudes, uses, or responses to a product
D. Customer’s age and income
98. Which of the following is a potential drawback of differentiated marketing?
A. Lower customer satisfaction
B. Increased marketing and production costs
C. Reduced market share
D. Difficulty in reaching target customers
99. What is the purpose of ‘benefit segmentation’?
A. To segment the market based on geographic location
B. To segment the market based on the different benefits that customers seek from a product
C. To segment the market based on demographic characteristics
D. To segment the market based on customer loyalty
100. What is the potential downside of using a concentrated marketing strategy?
A. High production costs
B. Increased competition from larger companies
C. Greater risk due to reliance on a single segment
D. Difficulty in reaching the target market
101. A coffee shop decides to offer a discount to students. Which type of segmentation is being used?
A. Geographic
B. Demographic
C. Psychographic
D. Behavioral
102. What is ‘positioning’ in marketing?
A. The process of setting the price of a product
B. Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
C. The location of a product in a retail store
D. The process of distributing products to customers
103. A luxury car company positions its cars as ‘the ultimate driving machine.’ Which type of positioning is this?
A. Price positioning
B. Quality positioning
C. Benefit positioning
D. Competitor positioning
104. Which of the following is NOT a common way to differentiate a product?
A. Product features
B. Service
C. Channel
D. Price dumping
105. Which targeting strategy is most suitable for a company with limited resources?
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
106. What is the ultimate goal of positioning?
A. To lower production costs
B. To create a specific perception in the minds of target customers
C. To increase market share
D. To expand into new markets
107. Which of the following is an example of micromarketing?
A. Designing a national advertising campaign
B. Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments
C. Offering a standard product to all customers
D. Focusing on a small, well-defined segment
108. Which of the following is NOT a requirement for effective segmentation?
A. Measurable
B. Actionable
C. Accessible
D. Homogeneous
109. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation
B. Differentiation
C. Micromarketing
D. Product proliferation
110. Which of the following is an example of geographic segmentation?
A. Targeting customers based on their income level
B. Offering different products in different countries
C. Targeting customers based on their lifestyle
D. Offering personalized products to individual customers
111. When selecting target segments, what does ‘accessibility’ refer to?
A. The size and growth potential of the segment
B. The degree to which the segment’s needs are currently being met
C. The ease with which the segment can be reached and served
D. The degree to which the segment aligns with the company’s objectives
112. What is a key difference between differentiated marketing and concentrated marketing?
A. Differentiated marketing targets multiple segments, while concentrated marketing targets a single segment.
B. Differentiated marketing focuses on cost leadership, while concentrated marketing focuses on differentiation.
C. Differentiated marketing uses mass advertising, while concentrated marketing uses niche advertising.
D. Differentiated marketing is more expensive, while concentrated marketing is less expensive.
113. Which of the following is a potential risk of undifferentiated marketing?
A. High marketing costs
B. Difficulty in satisfying diverse customer needs
C. Increased competition in niche markets
D. Over-segmentation of the market
114. Which of the following is NOT a common base for segmenting consumer markets?
A. Geographic
B. Demographic
C. Technographic
D. Psychographic
115. A company that offers highly customized products to individual customers is likely using which targeting strategy?
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
116. Which positioning strategy focuses on highlighting the unique attributes or features of a product?
A. Price positioning
B. Benefit positioning
C. Attribute positioning
D. Competitor positioning
117. What is the primary goal of market segmentation?
A. To maximize production efficiency
B. To identify and profile distinct groups of buyers who might require separate products or marketing mixes
C. To reduce marketing costs
D. To increase overall market size
118. A company that targets only customers who are heavy users of their product is using what type of segmentation?
A. Geographic segmentation
B. Demographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
119. What does ‘differentiation’ refer to in the context of marketing strategy?
A. Creating a unique and superior customer value
B. Reducing product prices
C. Increasing advertising spending
D. Expanding into new markets
120. A company segments its market based on lifestyle and values. Which type of segmentation is this?
A. Geographic segmentation
B. Demographic segmentation
C. Behavioral segmentation
D. Psychographic segmentation
121. When is a pull strategy most appropriate?
A. When brand loyalty is low and the product is an impulse item.
B. When there is high brand loyalty and consumers actively seek out the product.
C. When the company has a small advertising budget.
D. When the product is complex and requires extensive explanation.
122. The ‘objective-and-task method’ of setting a promotion budget:
A. Sets the budget based on what the company thinks it can afford.
B. Sets the budget based on what competitors are spending.
C. Sets the budget based on the percentage of sales.
D. Develops the promotion budget by defining specific objectives, determining the tasks that must be performed to achieve these objectives, and estimating the costs of performing these tasks.
123. The ‘percentage-of-sales method’ of setting a promotion budget:
A. Sets the budget based on what the company thinks it can afford.
B. Sets the budget based on what competitors are spending.
C. Sets the budget based on a percentage of current or forecasted sales.
D. Sets the budget based on the tasks to be accomplished.
124. Frequency in advertising refers to:
A. The cost of running an advertisement.
B. The number of people exposed to an advertisement.
C. The average number of times a person in the target audience is exposed to the message.
D. The length of an advertisement.
125. Which of the following promotional tools involves direct personal interaction with customers?
A. Advertising
B. Sales promotion
C. Public relations
D. Personal selling
126. Which of the following is NOT a primary goal of marketing communications?
A. To inform customers about the product or service.
B. To persuade customers to purchase the product or service.
C. To remind customers about the product or service.
D. To minimize production costs of the product or service.
127. Integrated marketing communications (IMC) emphasizes:
A. Using only one type of media channel to reach the target audience.
B. Delivering a consistent and unified message across all marketing channels.
C. Allowing each department to create its own marketing message independently.
D. Focusing solely on digital marketing strategies.
128. What is the primary goal of public relations?
A. To generate immediate sales.
B. To build good relations with the company’s various publics.
C. To directly persuade customers to buy a product.
D. To create catchy advertising slogans.
129. The ‘competitive-parity method’ of setting a promotion budget:
A. Sets the budget based on what the company thinks it can afford.
B. Sets the budget to match competitors’ outlays.
C. Sets the budget based on the percentage of sales.
D. Sets the budget based on the tasks to be accomplished.
130. What is the role of a ‘media vehicle’ in advertising?
A. The creative concept behind an advertisement.
B. The specific carrier within a media type, such as a particular magazine or TV show.
C. The overall budget allocated to advertising.
D. The target audience for an advertisement.
131. Reach in advertising refers to:
A. The cost of running an advertisement.
B. The percentage of people in the target market who are exposed to an ad campaign during a given period.
C. The average number of times a person in the target audience is exposed to the message.
D. The length of an advertisement.
132. Which of the following is a key benefit of using social media in marketing communications?
A. It is always cheaper than traditional advertising.
B. It allows for direct interaction and feedback from customers.
C. It guarantees a large reach and high engagement rates.
D. It is easier to control the message than traditional advertising.
133. Which of the following is an advantage of using personal selling as a promotional tool?
A. It reaches a very large audience at a low cost.
B. It allows for immediate feedback and adjustments to the message.
C. It is highly credible and objective.
D. It is easy to control the message.
134. A potential customer reads an advertisement for a new restaurant. In the communication process, this customer is acting as the:
A. Sender
B. Encoder
C. Receiver
D. Message
135. Which element of the communication process involves the transformation of the sender’s ideas into a symbolic form?
A. Encoding
B. Decoding
C. Response
D. Feedback
136. What is ‘native advertising’?
A. Advertising that is created by users rather than the company.
B. Advertising that looks so much like the platform’s other content that it blends in rather than standing out.
C. Advertising that is only displayed in the user’s native language.
D. Advertising that is only displayed on mobile devices.
137. A company uses coupons to encourage customers to try a new product. This is an example of:
A. Advertising
B. Public relations
C. Sales promotion
D. Direct marketing
138. Which of the following is a disadvantage of using advertising as a promotional tool?
A. It is very expensive to reach a large audience.
B. It can be impersonal and lacks direct feedback.
C. It has a very short reach.
D. It is difficult to control the message.
139. A pull strategy involves:
A. Pushing the product through distribution channels to final consumers.
B. Directing marketing activities toward final consumers to induce them to buy the product.
C. Using personal selling to convince channel members to carry the product.
D. Focusing solely on advertising to create brand awareness.
140. The ‘affordable method’ of setting a promotion budget:
A. Sets the budget based on what the company thinks it can afford.
B. Sets the budget based on what competitors are spending.
C. Sets the budget based on the percentage of sales.
D. Sets the budget based on the tasks to be accomplished.
141. Which of the following factors should a company consider when setting its promotion budget?
A. The company’s production capacity.
B. The stage of the product life cycle.
C. The number of employees in the company.
D. The location of the company’s headquarters.
142. Which promotional tool involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events?
A. Advertising
B. Direct marketing
C. Public relations
D. Personal selling
143. What is ‘brand content management’?
A. The process of managing the company’s financial resources.
B. Creating, inspiring, and sharing brand messages and conversations with and among consumers across a fluid mix of paid, owned, earned, and shared channels.
C. The process of managing the company’s supply chain.
D. The process of managing the company’s human resources.
144. What does ‘AIDA’ stand for in the context of marketing communications?
A. Awareness, Interest, Desire, Action
B. Attention, Information, Decision, Acceptance
C. Analysis, Implementation, Development, Assessment
D. Accessibility, Interactivity, Delivery, Advocacy
145. When is a push strategy most appropriate?
A. When there is high brand loyalty and consumers actively seek out the product.
B. When brand loyalty is low and the product is an impulse item.
C. When the company has a large advertising budget.
D. When the company is introducing a completely new product category.
146. Which of the following is NOT a key characteristic of a good marketing communication objective?
A. Measurable
B. Specific
C. Attainable
D. Vague
147. A company sends a catalog directly to potential customers’ homes. This is an example of:
A. Advertising
B. Sales promotion
C. Direct marketing
D. Public relations
148. A push strategy involves:
A. Directing marketing activities toward final consumers to induce them to buy the product.
B. Pushing the product through distribution channels to final consumers.
C. Using advertising to create demand among consumers.
D. Focusing solely on sales promotions to increase sales.
149. What is ‘noise’ in the context of the communication process?
A. The volume of the message being sent.
B. Unplanned static or distortion during the communication process.
C. The complexity of the message’s content.
D. The speed at which the message is delivered.
150. Which of the following is an example of a ‘buzz marketing’ technique?
A. Running a television commercial during prime time.
B. Creating a viral video that people share online.
C. Sending out a mass email to a list of subscribers.
D. Placing an advertisement in a newspaper.
