1. What does ‘permission marketing’ involve?
A. Sending unsolicited marketing messages to a large audience
B. Obtaining customers’ consent before sending them marketing messages
C. Using aggressive sales tactics to close deals
D. Ignoring privacy concerns to maximize reach
2. What is ‘guerrilla marketing’ characterized by?
A. Large-scale, expensive advertising campaigns
B. Unconventional and surprising marketing tactics
C. Focusing solely on online marketing channels
D. Using traditional advertising methods in a new way
3. What is the purpose of ‘brand journalism’?
A. To replace traditional journalism with marketing content
B. To create engaging and informative content that tells a brand’s story
C. To promote products directly through news articles
D. To avoid interacting with traditional media outlets
4. What is ‘buzz marketing’ primarily designed to achieve?
A. Directly increasing sales through discounts
B. Generating excitement and word-of-mouth about a product or brand
C. Providing detailed product information to consumers
D. Creating a formal advertising campaign
5. What is the main objective of ‘institutional advertising’?
A. To sell specific products or services
B. To build goodwill and enhance the company’s image
C. To provide detailed product information
D. To generate immediate sales leads
6. A company using a ‘push’ promotional strategy would primarily focus on:
A. Directly advertising to end consumers
B. Offering discounts and incentives to retailers to stock their products
C. Creating viral marketing campaigns on social media
D. Relying solely on word-of-mouth marketing
7. Which of the following is NOT a common objective of marketing communication?
A. Building brand awareness
B. Driving sales
C. Enhancing customer relationships
D. Minimizing product development costs
8. Which of the following is a disadvantage of using social media for marketing communications?
A. High cost of implementation
B. Lack of measurability
C. Difficulty in targeting specific audiences
D. Potential for negative feedback and brand damage
9. What is the primary goal of sales promotion?
A. Building long-term brand loyalty
B. Creating immediate sales and excitement
C. Improving the company’s public image
D. Conducting market research
10. What is the primary difference between advertising and public relations?
A. Advertising is always free, while public relations always costs money.
B. Advertising is paid for, while public relations is earned through media coverage.
C. Advertising is targeted at consumers, while public relations is targeted at businesses.
D. There is no difference; the terms are interchangeable.
11. A company offers a loyalty program to reward repeat customers. This is primarily an example of:
A. Sales promotion
B. Public relations
C. Direct marketing
D. Advertising
12. Which of the following is an example of a ‘pull’ promotional strategy?
A. Offering retailers a discount for stocking a new product
B. Running television commercials to create consumer demand
C. Providing sales training to distributors
D. Giving bonuses to salespeople for exceeding sales targets
13. A company launches a new product and offers a free sample to every customer who visits their store. This is an example of:
A. Public relations
B. Personal selling
C. Sales promotion
D. Direct marketing
14. A company uses celebrity endorsements in its advertising campaigns. This is primarily an attempt to:
A. Reduce advertising costs
B. Increase brand awareness and credibility
C. Simplify the advertising message
D. Target a niche market
15. Which promotional tool is most effective for building long-term relationships with customers?
A. Mass advertising campaigns
B. Short-term sales promotions
C. Personal selling and direct marketing
D. Publicity stunts
16. What is ‘viral marketing’ primarily aimed at achieving?
A. Directly increasing sales through discounts
B. Spreading brand awareness through consumer sharing
C. Providing detailed product information to consumers
D. Creating a formal advertising campaign
17. A company sends personalized emails to customers based on their past purchases. This is an example of:
A. Public relations
B. Sales promotion
C. Direct marketing
D. Advertising
18. What is the primary focus of ’cause-related marketing’?
A. Directly selling products to consumers
B. Building brand awareness through celebrity endorsements
C. Supporting a social cause while promoting the brand
D. Reducing marketing expenses by using non-profit channels
19. Which of the following is a key advantage of using online advertising?
A. Limited targeting options
B. High cost compared to traditional advertising
C. Detailed tracking and measurement of results
D. Inability to reach a global audience
20. Which of the following is a key challenge in managing integrated marketing communications (IMC)?
A. Lack of available marketing channels
B. Difficulty in measuring the effectiveness of marketing efforts
C. Ensuring consistent messaging across all channels
D. Limited customer data
21. A company decides to sponsor a local charity event. This is primarily an example of:
A. Direct marketing
B. Sales promotion
C. Public relations
D. Personal selling
22. Which of the following is a primary advantage of using direct marketing?
A. Low cost per contact
B. Ability to personalize messages and target specific customers
C. Wide reach and mass appeal
D. High level of credibility
23. A company creates a series of informative blog posts related to its industry. This is an example of:
A. Advertising
B. Public relations
C. Direct marketing
D. Sales promotion
24. What is the main goal of ‘product placement’?
A. To provide detailed product specifications
B. To create brand awareness through subtle exposure in media
C. To directly sell products to consumers
D. To conduct market research
25. In the context of marketing communications, what does ‘AIDA’ stand for?
A. Awareness, Interest, Desire, Action
B. Attention, Information, Decision, Approval
C. Analysis, Implementation, Development, Assessment
D. Acquisition, Investment, Differentiation, Advantage
26. Which promotional element is most suitable for communicating complex or technical product information?
A. Advertising
B. Sales promotion
C. Personal selling
D. Public relations
27. What is the key benefit of using a multi-channel marketing strategy?
A. Reaching a wider audience through various touchpoints
B. Reducing marketing costs by focusing on one channel
C. Simplifying the marketing message for better clarity
D. Eliminating the need for customer service
28. Which of the following best describes ‘integrated marketing communications’ (IMC)?
A. Using only one marketing channel to reach customers
B. Coordinating all promotional activities to create a unified brand message
C. Focusing solely on digital marketing strategies
D. Ignoring customer feedback to maintain brand consistency
29. Which of the following is NOT a typical form of sales promotion?
A. Coupons
B. Sweepstakes
C. Public service announcements
D. Rebates
30. Which of the following is NOT a primary goal of integrated marketing communications (IMC)?
A. Ensuring consistent messaging across all channels
B. Maximizing the reach of marketing messages
C. Creating a seamless brand experience for customers
D. Minimizing marketing expenses regardless of effectiveness
31. Which of the following is NOT a primary goal of integrated marketing communications (IMC)?
A. Ensuring consistent messaging across all channels.
B. Maximizing reach and frequency of advertising.
C. Creating a seamless brand experience for the customer.
D. Minimizing marketing expenditures regardless of effectiveness.
32. Using the objective-and-task method, a company sets its promotion budget by:
A. Matching the spending of its main competitor.
B. Allocating a percentage of last year’s sales.
C. Determining its promotion objectives and the tasks needed to achieve these objectives.
D. Spending what it can afford after covering other expenses.
33. Which of the following is the BEST example of direct marketing?
A. A television commercial for a new car.
B. A newspaper ad for a local restaurant.
C. An email promoting a limited-time offer to subscribers.
D. A billboard advertising a soft drink.
34. A company decides to use a ‘push’ promotion strategy. Which promotional activity will the company most likely emphasize?
A. Advertising on social media platforms.
B. Offering discounts to retailers to stock the product.
C. Creating viral marketing campaigns.
D. Sending direct mail to consumers.
35. A marketer is deciding whether to use a celebrity endorsement in their advertising campaign. Which factor is MOST important to consider?
A. The celebrity’s popularity.
B. The celebrity’s cost.
C. The celebrity’s match with the product and target audience.
D. The celebrity’s availability.
36. Which of the following is an example of comparative advertising?
A. An advertisement that promotes the general benefits of a product category.
B. An advertisement that directly or indirectly compares the brand with one or more other brands.
C. An advertisement that focuses on building brand awareness.
D. An advertisement that reminds consumers about the product.
37. Which of the following is a primary goal of public relations?
A. To directly increase sales.
B. To build good relations with the company’s various publics.
C. To create immediate action from consumers.
D. To control negative publicity.
38. What is a key challenge in managing integrated marketing communications?
A. Ensuring all communication channels are independent.
B. Creating a consistent message across all touchpoints.
C. Avoiding any form of customer feedback.
D. Focusing solely on online advertising.
39. Why is it important to integrate marketing communications?
A. To confuse the customer with multiple messages.
B. To deliver a clear, consistent, and compelling message.
C. To reduce the overall marketing budget.
D. To allow each department to work independently.
40. A company that wants immediate sales increases would MOST likely use which promotional tool?
A. Public relations
B. Advertising
C. Sales promotion
D. Content marketing
41. What is the key objective of persuasive advertising?
A. To build brand awareness.
B. To create brand preference and convince customers to purchase.
C. To provide detailed product information.
D. To remind customers about the product’s availability.
42. What is the term for the process of carefully integrating and coordinating the company’s many communications channels to deliver a clear, consistent, and compelling message about the organization and its brands?
A. Sales promotion
B. Direct marketing
C. Integrated marketing communications (IMC)
D. Public relations
43. What is the primary goal of reminder advertising?
A. To build brand preference.
B. To inform consumers about a new product.
C. To maintain brand awareness.
D. To persuade consumers to switch brands.
44. Which method of setting the promotion budget most logically links promotion goals with budget needs?
A. Affordable method
B. Percentage-of-sales method
C. Competitive-parity method
D. Objective-and-task method
45. What is the primary advantage of using a narrowcasting media strategy?
A. It reaches a broad audience at a low cost.
B. It allows for highly targeted messaging.
C. It guarantees high levels of brand awareness.
D. It is easy to measure the return on investment.
46. Which of the following is an example of a ‘pull’ promotion strategy?
A. Offering incentives to salespeople to increase sales.
B. Providing free samples to retailers.
C. Running advertisements targeted directly to consumers.
D. Giving slotting allowances to distributors.
47. A small business owner is looking for a low-cost way to reach a large audience. Which promotional tool would be MOST suitable?
A. Personal selling
B. Television advertising
C. Social media marketing
D. Direct mail
48. Which of the following is NOT one of the major communication functions?
A. Informing
B. Persuading
C. Reminding
D. Ignoring
49. The ‘percentage-of-sales method’ for setting the promotion budget is based on which assumption?
A. Promotion spending leads to sales.
B. Sales lead to promotion spending.
C. Promotion spending and sales are unrelated.
D. Competitor’s spending determines sales.
50. What is the first step in developing effective marketing communications?
A. Selecting communication channels.
B. Identifying the target audience.
C. Setting the promotion budget.
D. Designing the message.
51. Which characteristic is generally associated with the ‘affordable method’ for setting the promotion budget?
A. Ignores the effects of promotion on sales.
B. Based on a percentage of past sales.
C. Matches the competitor’s spending.
D. Focuses on specific promotion objectives.
52. Which of the following is a disadvantage of using personal selling as a promotional tool?
A. It has low reach.
B. It is inflexible.
C. It is very costly.
D. It provides delayed feedback.
53. A company is launching a new product. Which type of advertising would be MOST effective in the early stages?
A. Reminder advertising
B. Persuasive advertising
C. Informative advertising
D. Comparative advertising
54. Which factor should a company consider when deciding on the promotion mix?
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 headquarters.
55. A company uses advertising, personal selling, sales promotion, public relations, and direct marketing. These are called:
A. The marketing mix
B. The promotion mix
C. The product mix
D. The communication strategy
56. In the communication process, ‘noise’ refers to:
A. The volume of the message.
B. The complexity of the message.
C. Unplanned static or distortion during the communication process.
D. The lack of a clear message.
57. A company holds a press conference to announce a new sustainability initiative. This is an example of:
A. Advertising
B. Sales promotion
C. Public relations
D. Direct marketing
58. Which promotional tool is most credible in the eyes of the public?
A. Advertising
B. Personal selling
C. Public relations
D. Direct marketing
59. What is the key benefit of using social media in a marketing communications strategy?
A. It is easy to control the message.
B. It allows for one-way communication.
C. It enables direct interaction and engagement with customers.
D. It guarantees a high return on investment.
60. What is ‘buzz marketing’ primarily designed to achieve?
A. Directly increasing sales through special offers.
B. Generating excitement and word-of-mouth about a brand.
C. Improving a company’s public image after a crisis.
D. Providing detailed product information to consumers.
61. Which of the following is an example of a corporate VMS?
A. A franchise system like Subway.
B. A large retail chain that owns its own manufacturing facilities.
C. A group of independent retailers forming a buying cooperative.
D. A manufacturer using multiple independent distributors.
62. What is the key advantage of using a selective distribution strategy?
A. Maximum market coverage.
B. High degree of control over resellers and their sales efforts.
C. Lowest possible distribution costs.
D. Reaching the largest possible customer base.
63. What is the ‘bullwhip effect’ in supply chain management?
A. The increase in sales due to a successful marketing campaign.
B. The phenomenon where demand variability increases as you move up the supply chain.
C. The decrease in production costs due to economies of scale.
D. The improvement in customer satisfaction due to faster delivery times.
64. What is disintermediation in the context of marketing channels?
A. Adding more intermediaries to the marketing channel.
B. Removing intermediaries from the marketing channel.
C. Increasing the price of products due to channel costs.
D. Ignoring the needs of intermediaries.
65. A retailer decides to start selling products online, in addition to their brick-and-mortar stores. This is an example of:
A. Disintermediation.
B. Channel conflict.
C. Multichannel marketing.
D. Exclusive distribution.
66. Which of the following is NOT a primary goal of marketing channel management?
A. Minimizing channel conflict.
B. Maximizing customer reach and satisfaction.
C. Increasing production efficiency.
D. Optimizing channel efficiency and effectiveness.
67. How does efficient supply chain management contribute to a company’s competitive advantage?
A. By increasing production costs.
B. By reducing customer service levels.
C. By enabling faster delivery, lower costs, and improved customer satisfaction.
D. By limiting product availability.
68. Which of the following is a potential disadvantage of disintermediation for a manufacturer?
A. Reduced profit margins.
B. Increased reliance on intermediaries.
C. The need to handle distribution and customer service directly.
D. Loss of control over pricing.
69. What is the purpose of a distribution center?
A. To manufacture products.
B. To store products for extended periods of time.
C. To receive, sort, and redistribute goods to various retail locations.
D. To directly sell products to end consumers.
70. What is the difference between a conventional distribution channel and a vertical marketing system?
A. A conventional channel has a coordinated system, while a VMS consists of independent firms.
B. A conventional channel consists of independent firms, while a VMS is a coordinated system.
C. A conventional channel focuses on direct sales, while a VMS uses intermediaries.
D. There is no real difference between the two.
71. What is the primary goal of supply chain management?
A. To maximize production costs.
B. To minimize customer service interactions.
C. To efficiently and effectively integrate suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless value chain.
D. To focus solely on the manufacturing process.
72. What is ‘just-in-time’ (JIT) inventory management?
A. Keeping large amounts of inventory on hand to meet unexpected demand.
B. Receiving inventory only when it is needed for production or sale.
C. Ignoring inventory levels to focus on other aspects of the supply chain.
D. Selling off excess inventory at discounted prices.
73. Which of the following factors would LEAST likely influence the choice of a marketing channel?
A. Product characteristics.
B. Customer buying habits.
C. Competitor’s channel strategies.
D. The CEO’s favorite color.
74. What is the primary difference between intensive and exclusive distribution strategies?
A. Intensive distribution aims for limited market coverage, while exclusive distribution aims for widespread coverage.
B. Intensive distribution seeks to maximize market coverage, while exclusive distribution limits the number of intermediaries.
C. Intensive distribution involves high levels of customer service, while exclusive distribution does not.
D. Intensive distribution focuses on luxury goods, while exclusive distribution focuses on commodity goods.
75. Which of the following best describes a contractual VMS?
A. Independent firms at different levels of production and distribution integrate under single ownership.
B. Independent firms at different levels of production and distribution join together through contracts.
C. A single firm owns all levels of the production and distribution channel.
D. Firms coordinate their activities informally without any written agreements.
76. How can a company minimize channel conflict between its online and brick-and-mortar stores?
A. By offering different products in each channel.
B. By ignoring customer complaints.
C. By having clear pricing and promotion policies across all channels.
D. By refusing to accept returns from online purchases in physical stores.
77. What is the role of a ‘broker’ in a marketing channel?
A. To take title to goods and resell them to retailers.
B. To own and operate retail stores.
C. To bring buyers and sellers together and assist in negotiation.
D. To transport goods from manufacturers to wholesalers.
78. A company decides to reduce its number of suppliers from 20 to 5 to improve coordination and build stronger relationships. This is an example of:
A. Diversification.
B. Supply chain consolidation.
C. Market penetration.
D. Product development.
79. Which of the following is an example of a vertical marketing system (VMS)?
A. A local farmers market with independent vendors.
B. A franchise operation like McDonald’s.
C. Several independent retailers selling the same brand.
D. A manufacturer selling products to multiple wholesalers.
80. What is the primary goal of integrated logistics management?
A. To minimize transportation costs regardless of other factors.
B. To maximize inventory levels to avoid stockouts.
C. To streamline the entire supply chain process, from raw materials to final delivery.
D. To focus solely on warehouse efficiency.
81. What is the main benefit of using third-party logistics (3PL) providers?
A. Increased control over the entire supply chain.
B. Reduced reliance on technology.
C. Access to specialized logistics expertise and resources.
D. Lower overall product quality.
82. What is the role of a ‘category killer’ in a marketing channel?
A. To offer a limited selection of products at high prices.
B. To dominate a specific product category with a vast selection and competitive prices.
C. To focus on niche markets with specialized products.
D. To provide generic products with minimal customer service.
83. Which of the following is a potential disadvantage of using a longer marketing channel?
A. Reduced overall distribution costs.
B. Greater control over the final selling price.
C. Increased distance between the manufacturer and the end consumer.
D. Faster delivery times to the consumer.
84. Which of the following is an example of a horizontal marketing system?
A. A manufacturer owning its own retail stores.
B. Two or more unrelated companies putting their resources or programs together to exploit an emerging marketing opportunity.
C. A retailer developing its own private label brand.
D. A wholesaler exclusively distributing a manufacturer’s products.
85. Which of the following is NOT a typical function of a retailer?
A. Providing customer service.
B. Manufacturing products.
C. Merchandising products.
D. Offering a variety of products.
86. What is the meaning of ‘reverse logistics’?
A. The process of moving goods from suppliers to manufacturers.
B. The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
C. The process of delivering goods directly to consumers.
D. The process of managing inventory levels in warehouses.
87. A company wants to ensure its luxury products are only sold in high-end boutiques that reflect its brand image. Which distribution strategy is most appropriate?
A. Intensive distribution.
B. Selective distribution.
C. Exclusive distribution.
D. Mass distribution.
88. Which of the following is a potential source of channel conflict?
A. Clear communication between channel members.
B. Shared goals and objectives among channel members.
C. Disagreement over pricing strategies or sales territories.
D. Strong brand loyalty among customers.
89. A company that uses multiple marketing channels to reach its customers is employing which type of distribution strategy?
A. Exclusive distribution.
B. Selective distribution.
C. Intensive distribution.
D. Multichannel distribution.
90. Which of the following is NOT a function of logistics?
A. Warehousing.
B. Inventory management.
C. Market segmentation.
D. Transportation.
91. What is ‘customer equity’?
A. The total sales revenue of a company.
B. The combined customer lifetime values of all of the company’s customers.
C. The price of a company’s stock on the stock market.
D. The value of a company’s brand name.
92. What is ‘customer engagement’?
A. Simply selling products to customers.
B. Making the brand a meaningful part of consumers’ conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community.
C. Ignoring customer feedback.
D. Sending out generic marketing messages.
93. What is the ultimate goal of marketing?
A. To maximize profits in the short term.
B. To create value for customers and build strong customer relationships.
C. To sell as many products as possible.
D. To minimize marketing expenses.
94. Which of the following is NOT a step in the marketing process?
A. Understand the marketplace and customer needs and wants.
B. Design a customer value-driven marketing strategy.
C. Construct an integrated marketing program that delivers superior value.
D. Minimize employee wages to reduce costs.
95. A company focusing on ‘selling what they make’ rather than ‘making what the market wants’ is exhibiting which marketing orientation?
A. Societal marketing concept.
B. Marketing concept.
C. Selling concept.
D. Production concept.
96. A company that adopts a customer-driven marketing strategy will:
A. Focus on mass marketing to reach the largest possible audience.
B. Segment the market, target specific customers, and position their offerings effectively.
C. Ignore competitor actions and focus solely on internal operations.
D. Prioritize short-term sales gains over long-term customer relationships.
97. What is the focus of the ‘marketing concept’?
A. Increasing sales volume through aggressive promotion.
B. Achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.
C. Minimizing production costs to maximize profits.
D. Selling existing products to as many customers as possible.
98. What is ‘customer lifetime value’?
A. The total number of customers a business has.
B. The discount offered to loyal customers.
C. The value of the entire stream of purchases a customer makes over a lifetime of patronage.
D. The cost of acquiring a new customer.
99. Which of the following is an example of customer-perceived value?
A. The cost of producing a product.
B. The customer’s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.
C. The price a company charges for its product.
D. The number of features a product has.
100. Which of the following best describes the ‘customer delight’?
A. Meeting customer expectations.
B. Exceeding customer expectations.
C. Ignoring customer complaints.
D. Providing basic customer service.
101. What is ‘buzz marketing’?
A. Traditional advertising through newspapers and magazines.
B. Cultivating opinion leaders and getting them to spread information about a product or service to others in their communities.
C. Ignoring customer feedback.
D. Sending out generic marketing messages.
102. A company decides to personalize its marketing messages based on individual customer data. This is an example of:
A. Mass marketing.
B. Customer relationship management (CRM).
C. Product-oriented marketing.
D. Selling concept.
103. Which marketing orientation assumes that consumers will not buy enough of the organization’s products unless the organization undertakes a large-scale selling and promotion effort?
A. The marketing concept.
B. The selling concept.
C. The production concept.
D. The societal marketing concept.
104. What is the primary goal of customer relationship management (CRM)?
A. To maximize short-term sales.
B. To build and maintain profitable customer relationships.
C. To minimize marketing expenses.
D. To create a large customer database.
105. What is ‘share of customer’?
A. The company’s percentage of the total market sales.
B. The portion of the customer’s purchasing that a company gets in its product categories.
C. The number of customers a company has.
D. The company’s overall profitability.
106. A pharmaceutical company that focuses solely on developing new drugs without considering patient access or affordability is most likely exhibiting which orientation?
A. Societal marketing concept.
B. Marketing concept.
C. Selling concept.
D. Product concept.
107. What is ‘partner relationship management’?
A. Managing relationships with customers only.
B. Working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
C. Focusing on internal company communications.
D. Outsourcing all marketing activities.
108. A non-profit organization promoting responsible environmental practices is aligning with which concept?
A. Production concept.
B. Selling concept.
C. Marketing concept.
D. Societal marketing concept.
109. How does the ‘production concept’ approach marketing?
A. By focusing on product innovation and quality.
B. By prioritizing affordability and widespread availability.
C. By tailoring products to individual customer needs.
D. By emphasizing ethical and sustainable practices.
110. Which of the following is NOT a potential outcome of creating customer satisfaction?
A. Increased customer loyalty.
B. Higher customer lifetime value.
C. Negative word-of-mouth.
D. Positive word-of-mouth.
111. Which of the following is a key element of a customer value-driven marketing strategy?
A. Focusing on short-term sales increases.
B. Selecting which customers to serve and how to create value for them.
C. Ignoring competitor actions.
D. Minimizing marketing research to reduce costs.
112. What is the potential downside of focusing solely on customer satisfaction without considering profitability?
A. Increased customer loyalty.
B. Higher customer lifetime value.
C. Decreased company profitability.
D. Positive word-of-mouth.
113. Which of the following is the best example of ‘customer-managed relationships’?
A. A company sends out unsolicited emails to potential customers.
B. A customer proactively uses a company’s online platform to customize a product to their specific needs.
C. A company closely monitors customer social media activity.
D. A company implements a strict return policy to minimize losses.
114. What is a ‘market’ in the context of marketing?
A. A physical location where goods are sold.
B. The set of actual and potential buyers of a product or service.
C. The process of creating, distributing, promoting, and pricing goods and services.
D. The advertising industry.
115. Which of the following best describes the societal marketing concept?
A. Focusing solely on increasing profits.
B. Balancing company profits, consumer wants, and society’s interests.
C. Ignoring the long-term impact of marketing decisions.
D. Prioritizing consumer wants above all else.
116. Which of the following is NOT a core aspect of marketing, according to Chapter 9?
A. Creating value for customers.
B. Managing profitable customer relationships.
C. Understanding the marketplace and customer needs.
D. Minimizing production costs.
117. A company focusing on continuous product improvement and innovation is likely following which concept?
A. Selling concept.
B. Production concept.
C. Product concept.
D. Marketing concept.
118. Which of the following is the most direct result of customer loyalty?
A. Increased advertising costs.
B. Repeat purchases and positive word-of-mouth.
C. Decreased product quality.
D. Lower profit margins.
119. A local bakery decides to donate a portion of its profits to a local charity. This is an example of which concept?
A. Production concept.
B. Selling concept.
C. Marketing concept.
D. Societal marketing concept.
120. A company implements a ‘buy-one-get-one-free’ promotion. This is primarily an example of focusing on:
A. Customer lifetime value.
B. Share of customer.
C. Short-term sales volume.
D. Customer equity.
121. How can companies ensure that their advertising is both ethical and socially responsible?
A. By focusing solely on sales targets.
B. By ignoring consumer feedback.
C. By being transparent and honest in their messaging and avoiding deceptive practices.
D. By targeting vulnerable populations.
122. What is ‘native advertising’?
A. Advertising that is created by consumers.
B. Advertising that blends in with the content around it.
C. Advertising that is exclusively targeted at native populations.
D. Advertising that uses only the local language.
123. What is a key benefit of using digital media for advertising?
A. High cost per exposure.
B. Limited audience reach.
C. Ability to target specific audiences.
D. Low impact.
124. What is the primary advantage of using public relations?
A. High control over the message.
B. Lower cost than advertising.
C. Immediate sales impact.
D. Ability to target specific audiences.
125. What is the primary goal of informative advertising?
A. To build brand preference.
B. To create selective demand.
C. To communicate customer value.
D. To announce new products or features.
126. What is ‘frequency’ in the context of media selection?
A. The qualitative value of message exposure through a given medium.
B. How many times the average person in the target market is exposed to the message.
C. The percentage of people in the target market who are exposed to an ad campaign during a given period.
D. The cost of reaching one person in the target market.
127. What is the function of public relations?
A. To directly persuade customers to buy products.
B. To build good relations with the company’s various publics by obtaining favorable publicity.
C. To manage the company’s advertising campaigns.
D. To set the company’s pricing strategy.
128. Which of the following is a method for measuring the ‘sales effects’ of advertising?
A. Measuring brand recall.
B. Comparing past sales with current advertising expenditures.
C. Conducting consumer surveys.
D. Tracking social media engagement.
129. How can marketers balance the need for effective advertising with ethical considerations?
A. By prioritizing sales above all else.
B. By being transparent, honest, and responsible in their advertising practices.
C. By ignoring consumer feedback.
D. By targeting vulnerable populations.
130. Which of the following is a disadvantage of using television as an advertising medium?
A. High reach.
B. Low cost per exposure.
C. High absolute costs.
D. Ability to target specific audiences.
131. Which of the following is NOT a key area in which marketing managers must make decisions regarding an advertising program?
A. Setting advertising objectives.
B. Making media decisions.
C. Evaluating advertising campaigns.
D. Determining the company’s stock price.
132. What is the ‘message strategy’ primarily concerned with?
A. Determining the reach and frequency of the advertising campaign.
B. Deciding what general message will be communicated to consumers.
C. Selecting the media channels to be used.
D. Measuring the impact of the advertising campaign on sales.
133. What is a potential ethical concern with native advertising?
A. High cost.
B. Lack of creativity.
C. It may mislead consumers if they do not realize it is advertising.
D. Limited reach.
134. What is the primary goal of advertising in the context of integrated marketing communications?
A. To operate independently from other marketing activities.
B. To deliver a clear, consistent, and compelling message about the organization and its brands.
C. To maximize short-term sales.
D. To minimize advertising costs.
135. What does measuring the ‘communication effects’ of advertising involve?
A. Analyzing sales data.
B. Measuring brand awareness, knowledge, and preference.
C. Calculating return on investment.
D. Tracking website traffic.
136. What is the affordable method of setting an advertising budget?
A. Setting the budget based on what the company thinks it can afford.
B. Setting the budget based on a percentage of sales.
C. Setting the budget to match competitors’ spending.
D. Setting the budget based on specific objectives and tasks.
137. What is the first step when using the objective-and-task method to set an advertising budget?
A. Determine the cost of performing these tasks.
B. Define specific advertising objectives.
C. Evaluate the results.
D. Select the media to be used.
138. What does ‘reach’ measure in media selection?
A. The qualitative value of message exposure through a given medium.
B. How many times the average person in the target market is exposed to the message.
C. The percentage of people in the target market who are exposed to an ad campaign during a given period.
D. The cost of reaching one person in the target market.
139. What is a key consideration when selecting advertising media?
A. Reach, frequency, and impact.
B. The firm’s political affiliations.
C. The competitor’s stock price.
D. The weather forecast.
140. Which advertising objective is most suitable when introducing a mature product into a new market?
A. Reminder advertising.
B. Persuasive advertising.
C. Comparative advertising.
D. Informative advertising.
141. What is the primary focus of reminder advertising?
A. Building primary demand.
B. Maintaining customer relationships.
C. Convincing customers to switch brands.
D. Correcting false impressions.
142. Which execution style is LEAST likely to be used for a high-involvement product?
A. Scientific evidence.
B. Slice of life.
C. Technical expertise.
D. Testimonial evidence.
143. Which method of setting an advertising budget wrongly views sales as the cause of promotion rather than the result?
A. Objective-and-task method.
B. Competitive-parity method.
C. Percentage-of-sales method.
D. Affordable method.
144. What is the role of advertising strategy?
A. To determine the advertising budget.
B. To create advertising messages and select advertising media.
C. To evaluate the effectiveness of advertisements.
D. To set advertising objectives.
145. Which of the following is an example of a public relations tool?
A. Television advertising.
B. Press releases.
C. Sales promotions.
D. Personal selling.
146. Which of the following best describes ‘creative concept’?
A. The budget allocated for advertising.
B. The compelling ‘big idea’ that brings the advertising message strategy to life in a distinctive and memorable way.
C. The media channels used to deliver the advertising message.
D. The evaluation metrics used to measure advertising effectiveness.
147. What is the role of an ‘advertising appeal’?
A. To determine the advertising budget.
B. To describe the approach used to attract the attention of consumers and/or influence their feelings toward the product.
C. To select the media channels to be used.
D. To measure the impact of the advertising campaign on sales.
148. Which factor is LEAST likely to be considered when setting an advertising budget?
A. The product’s stage in the product life cycle.
B. The competitor’s advertising spending.
C. The firm’s political affiliations.
D. The market share goals.
149. Why is it important to evaluate advertising effectiveness?
A. To determine the advertising budget.
B. To measure the communication effects and sales effects of advertising campaigns.
C. To select the advertising media to be used.
D. To create the advertising message.
150. What is a key challenge in using public relations?
A. High cost.
B. Difficulty in measuring its effectiveness.
C. Limited reach.
D. Inability to target specific audiences.
