1. A company decides to focus its marketing efforts on retaining and growing its ‘True Friends’ customer group. Which of the following strategies would be MOST appropriate?
A. Investing in mass advertising to attract new customers
B. Building relationships through personalized communication and rewards programs
C. Focusing on price reductions to increase sales volume
D. Minimizing customer service costs to maximize profitability
2. A clothing company is facing criticism for using sweatshop labor in its supply chain. Which of the following actions would be MOST ethical and responsible for the company to take?
A. Ignoring the criticism and continuing to operate as usual
B. Publicly denying the allegations without investigating them
C. Conducting a thorough investigation of its supply chain, taking steps to ensure fair labor practices, and communicating transparently with stakeholders
D. Moving production to a different country with even lower labor costs
3. What is ‘marketing myopia’?
A. Focusing on the immediate needs of the company rather than the long-term needs of the customer
B. Focusing on the product rather than the customer’s needs
C. Failing to adapt to changing market conditions
D. All of the above
4. Which of the following is a potential consequence of ‘marketing myopia’?
A. Increased customer loyalty
B. Sustainable competitive advantage
C. Failure to anticipate and adapt to changing customer needs
D. Strong brand reputation
5. A technology company is launching a new smartphone with advanced features. Which of the following value propositions would be MOST compelling to potential customers?
A. ‘Our smartphone has the most megapixels.’
B. ‘We offer the lowest price.’
C. ‘Experience seamless connectivity, enhanced productivity, and unparalleled entertainment with our innovative smartphone.’
D. ‘Buy our smartphone today!’
6. What is ‘customer relationship management’ (CRM)?
A. A software used for accounting
B. The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
C. A method for reducing customer service costs
D. A technique for maximizing sales volume
7. A food company is marketing a processed snack food as ‘healthy’ despite it being high in sugar and unhealthy fats. This is an example of:
A. Sustainable marketing
B. Ethical marketing
C. Deceptive marketing
D. Customer-driven marketing
8. What is ‘customer lifetime value’?
A. The total sales revenue generated by a customer
B. The combined discounted future net profits a customer will generate over their relationship with a firm
C. The average length of a customer’s relationship with a company
D. The cost of acquiring a new customer
9. Which of the following is an example of a company leveraging technology to enhance customer relationships?
A. Sending generic email blasts to a large audience
B. Using data analytics to personalize product recommendations on a website
C. Ignoring customer feedback on social media
D. Focusing solely on traditional advertising channels
10. Which of the following is the BEST example of a strong value proposition?
A. ‘Our product is cheaper than the competition.’
B. ‘We offer the highest quality products.’
C. ‘For busy professionals who need to stay connected, our smartphone provides a seamless and intuitive experience with long battery life and reliable service.’
D. ‘Buy our product today!’
11. A company that practices ‘sustainable marketing’ focuses on:
A. Maximizing short-term profits
B. Meeting the needs of current consumers while also preserving the ability of future generations to meet their needs
C. Exploiting natural resources for economic gain
D. Ignoring environmental concerns
12. Which customer relationship group is characterized by high profitability and long-term loyalty?
A. Butterflies
B. True Friends
C. Strangers
D. Barnacles
13. What is the ‘marketing mix’?
A. A collection of marketing research techniques
B. A set of tools—the four Ps: product, price, promotion, and place—that the firm uses to pursue its marketing objectives
C. The budget allocated to marketing activities
D. A measure of marketing effectiveness
14. How does technology impact modern marketing practices?
A. It allows for more personalized and targeted marketing efforts.
B. It enables companies to gather and analyze vast amounts of customer data.
C. It facilitates faster communication and engagement with customers.
D. All of the above
15. Which of the following is the most accurate definition of ‘marketing’?
A. Selling products and services
B. Advertising and promotion
C. The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
D. Managing distribution channels
16. Which marketing philosophy emphasizes the importance of creating products that are not only desirable but also benefit society in the long run?
A. Production concept
B. Selling concept
C. Marketing concept
D. Societal marketing concept
17. A company that engages in ‘greenwashing’ is:
A. Implementing sustainable business practices
B. Honestly communicating its environmental efforts to consumers
C. Making false or exaggerated claims about the environmental benefits of its products or services
D. Investing in renewable energy sources
18. A company that focuses solely on selling what they make, rather than what the customer wants, is said to have a:
A. Marketing orientation
B. Selling orientation
C. Customer orientation
D. Societal marketing orientation
19. Which of the following is an example of ‘partner relationship management’?
A. Managing relationships with suppliers to reduce costs
B. Working closely with retailers to ensure product availability and promotion
C. Building relationships with customers through social media
D. Implementing a CRM system to track customer interactions
20. Which of the following best describes ‘share of customer’?
A. The company’s market share in a specific industry
B. The portion of the customer’s purchasing that a company gets in its product categories
C. The percentage of customers who are satisfied with a company’s products
D. The number of new customers acquired by a company
21. A local bakery is known for its delicious cakes and friendly service. However, they’ve noticed a decline in sales due to increased competition from larger grocery store chains. Which of the following marketing strategies would be MOST effective for the bakery to regain its market share?
A. Lowering prices to match the grocery store chains
B. Focusing on mass advertising to reach a wider audience
C. Highlighting the bakery’s unique qualities, such as fresh ingredients and personalized service, and building stronger relationships with existing customers
D. Reducing the quality of ingredients to lower production costs
22. An online retailer is struggling with high customer acquisition costs. Which of the following strategies would be MOST effective for improving customer lifetime value?
A. Reducing customer service support to lower operating expenses
B. Focusing on attracting new customers through aggressive advertising campaigns
C. Implementing a loyalty program to reward repeat purchases and encourage customer retention
D. Increasing prices to maximize short-term profits
23. A company that uses a ‘value proposition’ is:
A. Promising low prices to attract customers
B. Communicating the unique benefits and value that its products or services offer to customers
C. Focusing solely on product features and technical specifications
D. Ignoring customer needs and preferences
24. A company that defines its mission as ‘making and selling the best widgets’ is likely suffering from:
A. A customer orientation
B. A societal marketing orientation
C. Marketing myopia
D. A production orientation
25. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation
B. Targeting
C. Differentiation
D. Mass production
26. What is the primary goal of marketing?
A. To increase sales revenue
B. To create value for customers and build strong customer relationships
C. To minimize production costs
D. To maximize short-term profits
27. Which of the following is NOT a core aspect of marketing?
A. Creating value
B. Satisfying customer needs
C. Building strong customer relationships
D. Maximizing production efficiency
28. What is ‘customer equity’?
A. The total combined customer lifetime values of all the company’s customers
B. The company’s brand value
C. The number of customers a company has
D. The cost of acquiring all of a company’s customers
29. What is the role of ethics in marketing?
A. To maximize profits regardless of the consequences
B. To ensure that marketing practices are honest, fair, and responsible
C. To manipulate consumers into buying products they don’t need
D. To comply with legal regulations only
30. A ‘stranger’ customer, according to customer relationship groups, is characterized by:
A. High potential profitability and short-term loyalty
B. Low potential profitability and short-term loyalty
C. High potential profitability and long-term loyalty
D. Low potential profitability and long-term loyalty
31. Which of the following is an example of demographic segmentation?
A. Grouping customers based on their lifestyle
B. Grouping customers based on their geographic location
C. Grouping customers based on their age, gender, income, or occupation
D. Grouping customers based on their product usage rate
32. What is the potential risk of using a concentrated marketing strategy?
A. High competition within the chosen segment
B. Large investment required
C. Segment’s needs may change
D. Becoming reliant on a single segment
33. Which of the following is a potential pitfall to avoid when positioning a brand?
A. Underpositioning: failing to position the company at all
B. Overpositioning: positioning the brand too broadly
C. Confused positioning: creating a clear image of the brand
D. Doubtful positioning: making claims that are easily believed
34. What is a value proposition?
A. The full positioning of a brand – the full mix of benefits on which it is positioned
B. The price of a product
C. The cost of manufacturing a product
D. The distribution channels used to sell a product
35. A new coffee shop decides to directly compete with Starbucks by offering similar products at slightly lower prices. What positioning strategy is this coffee shop using?
A. More for more
B. More for the same
C. The same for less
D. Less for much less
36. A company positions its product as being the most environmentally friendly option available. What type of differentiation is this?
A. Service differentiation
B. Channel differentiation
C. People differentiation
D. Image differentiation
37. A budget airline positions itself as offering the lowest fares, even though it means fewer amenities. What value proposition is this?
A. More for more
B. More for the same
C. The same for less
D. Less for much less
38. A company that produces luxury cars targets high-income individuals who value status and prestige. Which segmentation variable is primarily being used?
A. Geographic
B. Demographic
C. Psychographic
D. Behavioral
39. What is a positioning statement?
A. A statement that summarizes company revenue
B. A statement that summarizes company costs
C. A statement that summarizes company profits
D. A statement that summarizes company or brand positioning using this form: To (target segment and need) our (brand) is (concept) that (point of difference)
40. What is psychographic segmentation?
A. Dividing the market based on climate
B. Dividing the market based on social class, lifestyle, or personality characteristics
C. Dividing the market based on income
D. Dividing the market based on nationality
41. A car manufacturer promotes its vehicles as being the safest on the market. What type of differentiation is this?
A. Service differentiation
B. Channel differentiation
C. Image differentiation
D. Product differentiation
42. What is differentiated marketing?
A. Targeting only one segment with a single product
B. Deciding to ignore market segment differences
C. Targeting several market segments and designing separate offers for each
D. Focusing on individual customers
43. Which of the following is the FIRST step in designing a customer-driven marketing strategy?
A. Differentiation
B. Targeting
C. Segmentation
D. Positioning
44. What is ‘competitive advantage’ in the context of positioning?
A. Offering the lowest price
B. Offering the best product quality
C. An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices
D. Having the largest market share
45. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation
B. Targeting
C. Differentiation
D. Mass marketing
46. A local bakery decides to focus its marketing efforts on customers within a 5-mile radius. What type of marketing strategy is this?
A. Mass marketing
B. Differentiated marketing
C. Local marketing
D. Individual marketing
47. A company identifies several potential market segments but decides to focus only on one segment that is the most profitable and aligns with its capabilities. Which targeting strategy is the company using?
A. Undifferentiated marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
48. What is positioning in marketing?
A. Creating 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. Setting a price for a product
D. Distributing a product
49. What is targeting in marketing?
A. Evaluating each market segment’s attractiveness and selecting one or more segments to enter
B. Ignoring market segments and focusing on the entire market
C. Creating a new product
D. Lowering prices to attract more customers
50. Which targeting strategy involves tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments?
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
51. Which of the following is NOT a basis for behavioral segmentation?
A. Occasions
B. Benefits sought
C. User status
D. Age
52. A software company offers different versions of its software to students, professionals, and businesses. What targeting strategy is the company using?
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
53. Which of the following represents a ‘more for more’ value proposition?
A. Providing the same benefits at a lower price
B. Providing more benefits for a higher price
C. Providing fewer benefits for a much lower price
D. Providing the same benefits for the same price
54. Which value proposition involves offering comparable quality at a lower price?
A. More for more
B. More for less
C. The same for less
D. Less for much less
55. Which of the following is a requirement for effective segmentation?
A. The segments must be immeasurable
B. The segments must be accessible
C. The segments must be small and homogeneous
D. The segments must be unstable
56. A retailer offers personalized recommendations and exclusive deals to its loyalty program members. What type of marketing is this?
A. Mass marketing
B. Differentiated marketing
C. Local marketing
D. Individual marketing
57. What is the primary goal of market segmentation?
A. To create a single marketing mix for all customers
B. To identify and profile distinct groups of buyers who might require separate products or marketing mixes
C. To increase the overall marketing budget
D. To ignore differences between customers
58. Which targeting strategy focuses on serving a small market segment well?
A. Mass marketing
B. Differentiated marketing
C. Concentrated marketing
D. Micromarketing
59. Which of the following is a common positioning strategy?
A. Positioning on being the most expensive
B. Positioning on benefits
C. Positioning against all competitors
D. Positioning on being the least innovative
60. What does a ‘more for the same’ value proposition offer?
A. Less for less
B. More for less
C. More for the same
D. The same for less
61. What is ‘customer relationship management’ (CRM)?
A. A system for managing employee salaries and benefits
B. The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction
C. A software used for inventory management
D. A method for tracking competitor pricing
62. Which of the following is an example of ‘social marketing’?
A. Selling products through social media platforms
B. Using marketing techniques to promote socially beneficial behaviors
C. Conducting market research using social media data
D. Creating viral marketing campaigns on social media
63. What is the role of marketing in an organization?
A. To manage the company’s finances
B. To oversee the production process
C. To identify, satisfy, and retain customers
D. To handle legal matters
64. Which of the following is an example of a ‘value proposition’?
A. Our product is the cheapest on the market
B. Our product offers the best quality at a reasonable price
C. Our product is available in many different colors
D. Our product is heavily advertised on television
65. What is ‘market segmentation’?
A. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors
B. Selling products in different geographic locations
C. Conducting market research to understand customer preferences
D. Developing different versions of a product for different customers
66. What is ‘positioning’ in marketing?
A. The physical location of a product in a store
B. Creating a clear, distinctive, and desirable place in the minds of target consumers relative to competing products
C. The price range of a product compared to its competitors
D. The process of negotiating with suppliers to get the best prices
67. Which of the following is an example of a ‘need’ according to marketing principles?
A. A desire for a specific brand of smartphone
B. A requirement for food, water, and shelter
C. A craving for a particular type of dessert
D. A preference for a certain style of clothing
68. Which of the following describes ‘target marketing’?
A. Attempting to appeal to all potential customers
B. Focusing marketing efforts on one or more key customer segments
C. Ignoring customer differences and treating everyone the same
D. Selling products at the lowest possible price
69. A beverage company launches a new sugar-free soda targeting health-conscious consumers. Which marketing strategy is being implemented?
A. Mass marketing
B. Differentiated marketing
C. Concentrated (niche) marketing
D. Micromarketing
70. What is the potential risk of focusing too heavily on short-term sales?
A. It may lead to increased customer loyalty
B. It may damage long-term customer relationships
C. It may result in lower marketing expenses
D. It may improve the company’s brand image
71. Which of the following is a potential drawback of the ‘selling concept’?
A. It may lead to a lack of focus on customer needs
B. It may result in lower production costs
C. It may be ineffective in competitive markets
D. It may cause the company to focus too much on innovation
72. A company that focuses on selling what it makes, rather than making what the market wants, is exhibiting:
A. A societal marketing orientation
B. A selling orientation
C. A customer relationship management (CRM) strategy
D. A product orientation
73. A company uses social media to interact with customers and gather feedback. This is an example of:
A. Mass marketing
B. Direct marketing
C. Customer relationship management
D. Guerilla marketing
74. A luxury brand emphasizes exclusivity and high prices. This is an example of:
A. Value marketing
B. Prestige pricing
C. Market penetration
D. Cost leadership
75. Which of the following is NOT a core aspect of marketing?
A. Creating value
B. Satisfying customer needs and wants
C. Making a profit without focusing on customer satisfaction
D. Exchanging value
76. What is the ultimate goal of marketing?
A. To create innovative products
B. To build and maintain profitable customer relationships
C. To minimize marketing expenses
D. To dominate the market share
77. A company known for its low prices is trying to create an image of higher quality. This is an example of:
A. Product placement
B. Repositioning
C. Market penetration
D. Market skimming
78. A company decides to focus its marketing efforts on environmentally conscious consumers. This is an example of:
A. Mass marketing
B. Niche marketing
C. Product diversification
D. Cost leadership
79. What is the primary focus of the marketing concept?
A. Maximizing short-term profits
B. Achieving organizational goals through customer satisfaction
C. Focusing solely on product development
D. Minimizing marketing expenses
80. Which of the following is the most accurate definition of ‘marketing myopia’?
A. Focusing too much on the company’s current products rather than the underlying customer needs
B. Failing to conduct adequate market research
C. Spending too much money on advertising
D. Ignoring the actions of competitors
81. Which marketing philosophy considers the long-run welfare of consumers and society?
A. The production concept
B. The selling concept
C. The marketing concept
D. The societal marketing concept
82. A car manufacturer promotes its vehicles as being the safest on the market. What type of positioning strategy is being used?
A. Price positioning
B. Quality positioning
C. Benefit positioning
D. Competitor positioning
83. A local bakery decides to offer a discount to students who show their student ID. This is an example of:
A. Mass marketing
B. Segmented marketing
C. Individual marketing
D. Micromarketing (local marketing)
84. Which of the following is NOT one of the 4Ps of the marketing mix?
A. Product
B. Price
C. Promotion
D. People
85. Which of the following is NOT a common way to segment a market?
A. Demographic segmentation
B. Psychographic segmentation
C. Geographic segmentation
D. Product segmentation
86. A company donating a portion of its profits to a charity is an example of:
A. Greenwashing
B. Cause-related marketing
C. Direct marketing
D. Guerilla marketing
87. What does the term ‘marketing mix’ refer to?
A. The combination of different marketing departments within a company
B. The set of controllable, tactical marketing tools that a company uses to produce the response it wants in the target market
C. The various advertising channels a company uses
D. The different types of market research a company conducts
88. What is the main purpose of creating a ‘customer lifetime value’ (CLTV) estimate?
A. To determine the cost of acquiring a new customer
B. To predict the total stream of revenue a customer will generate over their relationship with the company
C. To calculate the profit margin on a specific product
D. To assess the overall brand equity
89. Which of the following best describes ‘value’ in the context of marketing?
A. The monetary price of a product
B. The ratio of benefits to costs
C. The features and attributes of a product
D. The promotional efforts for a product
90. Which of the following is a key element of a customer-driven marketing strategy?
A. Focusing on maximizing production efficiency
B. Understanding customer needs and wants
C. Ignoring competitor actions
D. Selling whatever the company can produce
91. What is the purpose of a ‘research proposal’?
A. To present the findings of a research study
B. To outline the objectives, methods, and budget for a research project
C. To analyze the data collected during a research study
D. To create a marketing plan based on research results
92. What is the primary purpose of exploratory research?
A. To gather preliminary information that will help define the problem and suggest hypotheses
B. To test hypotheses about cause-and-effect relationships
C. To describe things, such as the market potential for a product or the demographics of consumers who buy the product
D. To provide definitive answers to specific marketing questions
93. Which of the following is NOT a type of primary data collection?
A. Surveys
B. Experiments
C. Focus Groups
D. Government Publications
94. What is the main benefit of using marketing intelligence?
A. To gain insights into competitors’ strategies and activities
B. To reduce advertising costs
C. To improve employee morale
D. To automate the sales process
95. What is a major disadvantage of online surveys?
A. High cost per respondent
B. Low response rates and skewed samples
C. Inflexibility in questioning
D. Difficulty in reaching a broad audience
96. Which of the following is a potential source of secondary data?
A. Conducting a survey
B. Holding a focus group
C. Observing customer behavior
D. Industry trade publications
97. Which of the following is the first step in the marketing research process?
A. Develop the research plan
B. Define the problem and research objectives
C. Implement the research plan
D. Interpret and report the findings
98. A company wants to gather in-depth qualitative data about customer experiences with a product. Which research method would be most appropriate?
A. Online surveys
B. In-depth interviews
C. Experimental research
D. Mail questionnaires
99. A company wants to test the impact of a new advertising campaign on sales. Which research method would be most appropriate?
A. Observational research
B. Experimental research
C. Survey research
D. Focus group research
100. A company is considering launching a new product but lacks information about the target market. What type of research should they conduct first?
A. Descriptive research
B. Exploratory research
C. Causal research
D. Experimental research
101. A marketing manager wants to understand the cause-and-effect relationship between advertising spending and sales. Which research method would be most effective?
A. Observational research
B. Experimental research
C. Survey research
D. Focus group research
102. A retailer uses checkout scanners to collect data on customer purchases. What type of data is this?
A. Observational data
B. Experimental data
C. Survey data
D. Focus group data
103. What is the purpose of a ‘marketing dashboard’?
A. To track the weather’s impact on sales
B. To provide real-time views of key marketing performance measures
C. To manage employee schedules in the marketing department
D. To create advertising slogans
104. What is a ‘sample’ in marketing research?
A. A complete list of all customers
B. A segment of the population selected for research
C. A type of statistical analysis
D. A marketing plan outline
105. A global company wants to standardize its marketing research efforts across different countries. What is a key challenge they are likely to face?
A. Lack of access to technology
B. Differences in cultural norms, language, and economic conditions
C. Difficulty in finding qualified researchers
D. High cost of conducting research
106. Which of the following is a disadvantage of using focus groups for marketing research?
A. They are too expensive
B. They lack depth of information
C. They are difficult to conduct
D. Small sample size may make it difficult to generalize findings
107. A researcher wants to observe how consumers behave in a natural setting while shopping for groceries. Which research method is most suitable?
A. Telephone interviews
B. Experimental research
C. Ethnographic research
D. Mail questionnaires
108. Which of the following sampling methods gives each member of the population an equal chance of being selected?
A. Convenience sampling
B. Judgment sampling
C. Simple random sampling
D. Quota sampling
109. A marketing manager needs quick insights into customer satisfaction levels. Which data collection method would be most efficient?
A. In-depth interviews
B. Focus groups
C. Online surveys
D. Ethnographic research
110. Which of the following best describes ‘marketing intelligence’?
A. Data collected directly from consumers through surveys.
B. Systematic monitoring, collection, and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.
C. Proprietary data that is held confidentially within a company.
D. The use of advanced statistical techniques to analyze marketing data.
111. What is the key advantage of using experimental research?
A. It is less expensive than other research methods
B. It can establish cause-and-effect relationships
C. It provides detailed qualitative insights
D. It is easy to implement on a large scale
112. Which research approach is best suited for gathering descriptive information?
A. Observational research
B. Survey research
C. Experimental research
D. Focus group research
113. A marketing team wants to gauge consumer sentiment towards a new product concept quickly. Which method is most appropriate?
A. Mail questionnaires
B. In-depth personal interviews
C. Online focus group
D. Ethnographic study
114. A company notices a decline in sales for a particular product. They want to identify potential factors contributing to this decline. Which type of research is most suitable?
A. Descriptive research
B. Exploratory research
C. Conclusive research
D. Predictive research
115. What is the potential ethical concern when using ‘neuromarketing’ techniques?
A. The high cost of equipment
B. The potential for invasion of privacy and manipulation of consumers
C. The difficulty in interpreting brainwave data
D. The limited sample sizes in studies
116. Which of the following is a potential source of internal data for a company?
A. Government census data
B. Trade association reports
C. Customer databases
D. Syndicated research services
117. A small business owner wants to understand why customers are leaving their store. Which research method would be the most cost-effective and insightful?
A. Large-scale survey
B. Focus group with former customers
C. Comprehensive data analysis of sales trends over the past 5 years
D. Hiring a marketing consulting firm for a full analysis
118. A company wants to understand consumer perceptions of its brand compared to competitors. Which type of research would be most appropriate?
A. Exploratory research
B. Descriptive research
C. Causal research
D. Observational research
119. What is the main difference between primary and secondary data?
A. Primary data is more expensive than secondary data
B. Primary data is collected for the specific purpose at hand, while secondary data already exists
C. Primary data is always more accurate than secondary data
D. Secondary data is only available online, while primary data is collected offline
120. What is ‘customer relationship management’ (CRM) primarily focused on?
A. Managing the company’s finances
B. Building and maintaining profitable customer relationships
C. Developing new products
D. Analyzing competitor strategies
121. Which of the following is NOT a common basis for segmenting business markets?
A. Demographics (industry, company size).
B. Operating characteristics (technology, user status).
C. Purchasing approaches (purchasing policies, buying criteria).
D. Lifestyle (activities, interests, opinions).
122. What is ‘undifferentiated marketing’?
A. Targeting several market segments and designing separate offers for each.
B. Ignoring market segment differences and targeting the entire market with one offer.
C. Focusing on a small, niche market segment.
D. Tailoring products and marketing programs to the needs of individual customers.
123. A company promoting ‘eco-friendly’ products is using which type of differentiation?
A. Service differentiation.
B. Channel differentiation.
C. Image differentiation.
D. Product differentiation.
124. When evaluating different market segments, a company should consider:
A. Only the size and growth rate of the segment.
B. Only the company’s resources and objectives.
C. The segment’s size and growth rate, the company’s resources, and the overall attractiveness of the segment.
D. Only the competitive intensity within the segment.
125. Which of the following is a demographic segmentation variable?
A. Lifestyle
B. Social Class
C. Age
D. Personality
126. Which of the following is an example of psychographic segmentation?
A. Dividing the market based on country or region.
B. Dividing the market based on age and gender.
C. Dividing the market based on lifestyle, values, or personality.
D. Dividing the market based on product usage rate.
127. What is a ‘value proposition’ in the context of marketing?
A. A statement of how much a product costs.
B. The full positioning of a brand – the full mix of benefits on which it is positioned.
C. A detailed description of the product’s features.
D. A guarantee that the product will perform as advertised.
128. Which type of differentiation involves setting your brand apart based on superior customer service?
A. Product differentiation
B. Services differentiation
C. Channel differentiation
D. Image differentiation
129. A local bakery decides to offer a special discount to senior citizens on Tuesdays. This is an example of:
A. Mass marketing.
B. Differentiated marketing.
C. Concentrated marketing.
D. Micromarketing (local marketing).
130. A company uses data analytics to identify and target individual customers with personalized offers. This is an example of:
A. Mass marketing.
B. Segment marketing.
C. Micromarketing (individual marketing).
D. Differentiated marketing.
131. What is the primary benefit of using a differentiated marketing strategy?
A. It allows a company to focus on a single, specific market segment.
B. It reduces marketing costs by using a standardized approach.
C. It enables a company to capture a larger share of the total market.
D. It simplifies product development and supply chain management.
132. Which of the following is the MOST accurate definition of ‘market segmentation’?
A. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.
B. Aggregating all potential customers into a single group for efficient marketing.
C. Offering the same product to all customers, regardless of their needs.
D. Focusing solely on the demographic characteristics of customers.
133. Which of the following is the first step in the target marketing process?
A. Differentiation
B. Segmentation
C. Positioning
D. Targeting
134. A company that sells winter clothing might use which type of segmentation?
A. Usage Rate
B. Occasions
C. Loyalty Status
D. Readiness Stage
135. A company that produces specialized equipment for mountain climbing would most likely use which targeting strategy?
A. Undifferentiated marketing.
B. Differentiated marketing.
C. Concentrated marketing.
D. Micromarketing.
136. What is ‘micromarketing’?
A. Marketing to a very large and diverse group of customers.
B. Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments.
C. Ignoring individual customer needs and focusing on mass production.
D. Using only online channels for marketing.
137. Which of the following is a potential disadvantage of using a concentrated marketing strategy?
A. High marketing costs due to targeting multiple segments.
B. Increased risk if the chosen segment declines or becomes less attractive.
C. Difficulty in developing specialized products for a specific segment.
D. Lower overall sales volume compared to mass marketing.
138. What is the purpose of a perceptual map?
A. To track the sales performance of a product over time.
B. To visually represent consumer perceptions of different brands on key attributes.
C. To analyze the cost structure of a product.
D. To identify potential new market segments.
139. A luxury car company targets wealthy individuals who value status and prestige. Which positioning strategy is being used?
A. Positioning by price.
B. Positioning by product attributes.
C. Positioning by competitor.
D. Positioning by benefits and values.
140. Which of the following best describes ‘niche marketing’?
A. Appealing to a small segment of the market
B. Appealing to the entire market
C. Creating different products for different segments
D. Creating a unique product for each customer
141. Which of the following is NOT a factor to consider when choosing a differentiation and positioning strategy?
A. The company’s existing brand image.
B. The competitors’ positioning strategies.
C. The needs and wants of the target market.
D. The personal preferences of the CEO.
142. What is the key goal of product positioning?
A. To maximize production efficiency
B. To create a clear and desirable place in the target customer’s mind
C. To minimize marketing expenses
D. To offer the lowest prices in the market
143. Which of the following is a common positioning error?
A. Underpositioning
B. Differentiated positioning
C. Segmented positioning
D. Targeted positioning
144. A company claims its product is ‘the most reliable’ in the market. This is an example of positioning by:
A. Price.
B. Attributes.
C. Competitors.
D. Occasion.
145. What is ‘product positioning’?
A. The exact location of a product in a retail store.
B. The way a product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products.
C. The process of setting the price of a product.
D. The physical characteristics of a product.
146. A marketing team identifies that 20% of their customers generate 80% of their revenue. This is an example of using which segmentation variable?
A. Geographic
B. Demographic
C. Psychographic
D. Behavioral
147. Which of the following is a potential drawback of differentiated marketing?
A. Lower overall sales volume
B. Higher production costs
C. Ignoring market segment differences
D. Focusing on a small niche market
148. A company decides to target young adults with a new line of energy drinks. Which segmentation variable is being used?
A. Psychographic segmentation
B. Geographic segmentation
C. Behavioral segmentation
D. Demographic segmentation
149. A company wants to reposition its product to appeal to a new market segment. What should it do FIRST?
A. Launch a new advertising campaign.
B. Redesign the product packaging.
C. Conduct research to understand the needs and perceptions of the new target segment.
D. Lower the price of the product.
150. What is the potential risk of ‘overpositioning’ a product?
A. Creating a too-narrow view of the company.
B. Failing to communicate the value proposition effectively.
C. Creating a brand image that is too broad and unfocused.
D. Making the product seem too complex for consumers to understand.
