1. A company develops a new line of energy-efficient appliances. They promote these appliances by highlighting their cost savings and environmental benefits. Which marketing concept are they primarily using?
A. Production concept.
B. Selling concept.
C. Marketing concept.
D. Societal marketing concept.
2. A furniture store offers free interior design consultations to help customers choose the right pieces for their homes. Which element of the marketing mix does this primarily address?
A. Product.
B. Price.
C. Place.
D. Promotion.
3. A company known for its durable, long-lasting products continues to produce them even though cheaper alternatives are available. Which concept is this company demonstrating?
A. Selling concept.
B. Production concept.
C. Product concept.
D. Marketing concept.
4. What is ‘customer satisfaction’?
A. The extent to which a product’s perceived performance matches a buyer’s expectations.
B. The percentage of customers who repurchase a product.
C. The total number of customers a company has.
D. The average price customers pay for a product.
5. Which of the following is NOT one of the core marketing concepts?
A. Needs, wants, and demands.
B. Marketing myopia.
C. Exchange, transactions, and relationships.
D. Production efficiency.
6. Which of the following best describes the modern marketing approach?
A. Focusing solely on increasing sales volume.
B. Building lasting customer relationships based on customer value and satisfaction.
C. Prioritizing short-term profits over customer loyalty.
D. Using aggressive advertising to push products onto consumers.
7. Which of the following is an example of ‘societal marketing concept’ in action?
A. A company donating a portion of its profits to charity.
B. A company developing a product that is both profitable and environmentally friendly.
C. A company sponsoring a local sports team.
D. A company offering discounts to senior citizens.
8. Which of the following is the most accurate definition of ‘customer relationship management’ (CRM)?
A. A system for managing customer complaints.
B. The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
C. A software used to automate sales processes.
D. A department responsible for handling customer inquiries.
9. An established tech company releases a new smartphone with only minor upgrades, relying on heavy advertising to convince customers to upgrade. Which concept is this company primarily using?
A. Marketing concept.
B. Societal marketing concept.
C. Selling concept.
D. Production concept.
10. What is a ‘market segment’?
A. A group of products that are sold together.
B. A group of consumers who respond in a similar way to a given set of marketing efforts.
C. A geographical area where a company sells its products.
D. A group of competitors in the same industry.
11. A company decides to heavily discount its products at the end of the quarter to meet sales targets, even if it means sacrificing profit margins. Which concept are they prioritizing?
A. The societal marketing concept.
B. The production concept.
C. The selling concept.
D. The marketing concept.
12. Which marketing management orientation focuses primarily on achieving high production efficiency and wide distribution?
A. The marketing concept.
B. The selling concept.
C. The production concept.
D. The societal marketing concept.
13. What is ‘customer lifetime value’ (CLV)?
A. The average duration of a customer’s relationship with a company.
B. The total revenue a company generates in a year.
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.
14. A small business owner personally calls each customer after a purchase to ensure they are satisfied. Which marketing concept are they employing?
A. Production concept.
B. Selling concept.
C. Marketing concept.
D. Product concept.
15. If a company focuses solely on making improvements to its existing product line without considering customer feedback or market trends, what are they exhibiting?
A. Marketing orientation.
B. Customer relationship management.
C. Marketing myopia.
D. Sustainable marketing.
16. What is the potential downside of focusing too heavily on ‘customer lifetime value’?
A. Neglecting the importance of acquiring new customers.
B. Overlooking the need for customer satisfaction.
C. Ignoring the importance of short-term profits.
D. Failing to adapt to changing market conditions.
17. What is ‘marketing myopia’?
A. Focusing on fulfilling immediate customer needs rather than anticipating future wants.
B. Focusing on the product rather than the customer’s underlying need.
C. Focusing on short-term sales rather than long-term customer relationships.
D. Focusing on competitor’s actions rather than internal strengths.
18. What is ‘customer-perceived value’?
A. The total revenue a company generates from a customer over their lifetime.
B. The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
C. The cost a company incurs to acquire a new customer.
D. The number of customers a company loses over a period of time.
19. A company that adopts the ‘selling concept’ is most likely to:
A. Focus on creating products that meet customer needs.
B. Focus on aggressive promotional efforts to sell existing products.
C. Focus on building long-term relationships with customers.
D. Focus on social responsibility and ethical marketing practices.
20. What is the ‘marketing concept’?
A. A philosophy that focuses on achieving short-term sales goals.
B. A philosophy that focuses on understanding customer needs and wants and delivering satisfaction better than competitors do.
C. A philosophy that focuses on minimizing production costs.
D. A philosophy that focuses on maximizing advertising reach.
21. A local bakery decides to only offer vegan and gluten-free products due to increasing demand. Which marketing management orientation are they demonstrating?
A. Production concept.
B. Product concept.
C. Marketing concept.
D. Selling concept.
22. What is the primary goal of marketing?
A. To maximize production efficiency.
B. To create value for customers and build strong customer relationships.
C. To minimize costs and maximize profits immediately.
D. To create innovative products regardless of customer needs.
23. What is ‘target marketing’?
A. Promoting a product to as many people as possible.
B. Evaluating each market segment’s attractiveness and selecting one or more segments to enter.
C. Selling products at the lowest possible price.
D. Focusing on a niche market with very specific needs.
24. What is ‘positioning’?
A. The physical location where a product is sold.
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 process of setting the price of a product.
D. The process of distributing a product to retailers.
25. 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-driven marketing strategy.
C. Construct an integrated marketing program that delivers superior value.
D. Minimize production costs to maximize profits.
26. How does ‘customer equity’ differ from ‘customer lifetime value’?
A. ‘Customer equity’ focuses on individual customer profitability, while ‘customer lifetime value’ focuses on the value of the entire customer base.
B. ‘Customer equity’ is the total combined customer lifetime values of all of the company’s customers, while ‘customer lifetime value’ is the value of one customer.
C. ‘Customer equity’ is a short-term metric, while ‘customer lifetime value’ is a long-term metric.
D. There is no difference; they are the same concept.
27. What are the ‘four Ps’ of the marketing mix?
A. Product, Price, Promotion, and Place.
B. Planning, Production, People, and Profit.
C. Passion, Persistence, People, and Product.
D. Process, Product, Price and Placement.
28. A non-profit organization promoting sustainable farming practices is most likely driven by which marketing management orientation?
A. Product concept.
B. Selling concept.
C. Societal marketing concept.
D. Production concept.
29. Which of the ‘four Ps’ relates to activities that communicate the merits of the product and persuade target customers to buy it?
A. Product.
B. Price.
C. Promotion.
D. Place.
30. A car manufacturer emphasizes fuel efficiency and low emissions in its marketing campaigns. This is an example of:
A. Product concept.
B. Selling concept.
C. Societal marketing concept.
D. Production concept.
31. Which of the following is a potential negative consequence of solely focusing on a sales orientation?
A. Increased customer loyalty
B. Damage to brand reputation due to aggressive or unethical sales tactics
C. Improved product innovation
D. Stronger customer relationships
32. A company discovers that its product is perceived as low quality compared to competitors. Which of the following marketing mix elements should they focus on improving FIRST?
A. Promotion (Advertising)
B. Place (Distribution)
C. Price
D. Product
33. Which of the following is NOT a core principle of marketing?
A. Creating value for customers.
B. Focusing on short-term sales gains.
C. Building strong customer relationships.
D. Meeting customer needs and wants.
34. What is the significance of market segmentation in marketing strategy?
A. It allows companies to target all customers with a single marketing message.
B. It enables companies to divide the market into distinct groups with different needs and preferences, allowing for tailored marketing approaches.
C. It reduces the need for product differentiation and innovation.
D. It simplifies marketing planning by ignoring customer diversity.
35. Which of the following is the best example of ‘exchange’ in marketing?
A. A company donating products to a homeless shelter.
B. A customer purchasing a coffee from a café in exchange for money.
C. A government imposing taxes on businesses.
D. A company producing goods for its own employees.
36. A car manufacturer that only focuses on producing affordable cars, ignoring environmental concerns, is NOT fully embracing:
A. Product orientation
B. Marketing concept
C. Sales orientation
D. Production orientation
37. Which of the following is the most accurate definition of marketing?
A. A management philosophy that focuses on maximizing shareholder value.
B. The process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.
C. A sales-oriented approach that emphasizes short-term profits over long-term customer relationships.
D. A set of promotional activities aimed at persuading customers to purchase products.
38. What is the role of marketing research in the marketing process?
A. To solely focus on tracking competitor activities.
B. To provide insights and data to inform marketing decisions and reduce uncertainty.
C. To exclusively measure the effectiveness of advertising campaigns.
D. To replace the need for strategic marketing planning.
39. What is the most likely outcome of a company consistently ignoring customer feedback?
A. Increased brand loyalty.
B. Improved product quality.
C. Decreased customer satisfaction and potential business failure.
D. Enhanced marketing effectiveness.
40. If a company focuses on producing a high volume of goods efficiently, assuming customers will buy them, they are exhibiting a:
A. Marketing orientation
B. Production orientation
C. Sales orientation
D. Customer orientation
41. Which of the following represents a value-driven marketing approach?
A. Offering the lowest possible price, even if it means sacrificing quality.
B. Focusing on creating products with innovative features that customers are willing to pay a premium for.
C. Balancing product benefits with price to meet specific customer needs and preferences.
D. Aggressively promoting products to create demand, regardless of customer needs.
42. A company focusing solely on selling what they produce, rather than identifying and meeting customer needs, is exhibiting which orientation?
A. Marketing Orientation
B. Societal Orientation
C. Sales Orientation
D. Customer Orientation
43. What is the key benefit of building strong customer relationships?
A. Reduced need for product innovation.
B. Increased customer loyalty and lifetime value.
C. Decreased marketing expenses.
D. Simplified market segmentation.
44. A company is analyzing data to understand customer preferences and predict future buying behavior. This is an example of:
A. Product Development
B. Marketing Research
C. Sales Forecasting
D. Customer Service
45. Which of the following is an example of a societal marketing orientation?
A. Producing inexpensive, low-quality goods to maximize profits.
B. Developing environmentally friendly products that appeal to socially conscious consumers.
C. Ignoring the ethical implications of marketing practices.
D. Focusing solely on maximizing sales volume regardless of social impact.
46. Which marketing philosophy emphasizes not only meeting the needs of individual customers but also contributing to the long-term well-being of society?
A. Sales Orientation
B. Product Orientation
C. Marketing Orientation
D. Societal Marketing Orientation
47. How does understanding the competitive landscape benefit a company’s marketing efforts?
A. It allows companies to copy competitor strategies without innovation.
B. It helps companies identify opportunities for differentiation and competitive advantage.
C. It encourages companies to engage in price wars to gain market share.
D. It eliminates the need for market research and customer analysis.
48. How does technology impact modern marketing practices?
A. It reduces the importance of customer feedback and engagement.
B. It enables more personalized and data-driven marketing strategies.
C. It limits the reach and scope of marketing campaigns.
D. It simplifies marketing planning by automating all processes.
49. Which of the following is an example of a company creating ‘customer value’?
A. Lowering prices to be the cheapest on the market, regardless of quality.
B. Offering a high-quality product with excellent service at a fair price.
C. Using deceptive advertising to attract customers.
D. Creating products that quickly become obsolete to encourage repeat purchases.
50. Which of the following best describes ‘marketing myopia’?
A. Focusing on a broad range of customer needs.
B. Defining a business in terms of goods and services rather than in terms of the benefits customers seek.
C. Adapting quickly to changing market conditions.
D. Creating innovative products that disrupt the market.
51. A local bakery decides to donate a portion of their profits to a local charity. This is an example of:
A. Sales orientation
B. Production orientation
C. Societal marketing orientation
D. Product orientation
52. What is the difference between a ‘need’ and a ‘want’ in marketing terms?
A. A ‘need’ is a culturally shaped desire, while a ‘want’ is a basic requirement for survival.
B. A ‘need’ is a basic requirement for survival, while a ‘want’ is a culturally shaped desire.
C. There is no practical difference; the terms are interchangeable.
D. A ‘need’ is a luxury item, while a ‘want’ is a necessity.
53. Which element of the marketing mix involves decisions regarding channels, coverage, assortments, locations, inventory, and transportation?
A. Product
B. Price
C. Promotion
D. Place
54. A company that heavily invests in advertising to convince customers to buy products they don’t necessarily need is likely following a:
A. Customer-centric approach
B. Marketing concept
C. Sales orientation
D. Societal marketing concept
55. What is the primary goal of the marketing concept?
A. To maximize production efficiency.
B. To achieve organizational goals by satisfying customer needs and wants better than competitors.
C. To minimize marketing expenses.
D. To increase sales volume regardless of customer satisfaction.
56. A company is deciding whether to focus on attracting new customers or retaining existing ones. Which of the following is generally TRUE?
A. Attracting new customers is always more cost-effective.
B. Retaining existing customers is typically more cost-effective.
C. Attracting new customers is easier than retaining existing ones.
D. The cost of attracting new customers and retaining existing ones is always the same.
57. How does customer relationship management (CRM) contribute to effective marketing?
A. By standardizing marketing messages for all customers.
B. By focusing on acquiring as many new customers as possible, regardless of cost.
C. By enabling companies to personalize marketing efforts and build long-term relationships with valuable customers.
D. By automating marketing processes to reduce costs and improve efficiency.
58. A company decides to partner with a non-profit organization to promote a social cause. This is an example of:
A. Greenwashing
B. Cause-related marketing
C. Product placement
D. Guerilla marketing
59. Which of the following is the BEST example of a company implementing a customer-centric approach?
A. Developing a new product based solely on internal research and development.
B. Creating a product based on extensive customer feedback and testing.
C. Focusing on mass production to minimize costs.
D. Implementing aggressive sales tactics to increase short-term revenue.
60. Which of the 4Ps of marketing is most closely related to supply chain management?
A. Product
B. Price
C. Promotion
D. Place
61. How does ‘partner relationship management’ contribute to overall marketing success?
A. By focusing solely on managing relationships with customers.
B. By working closely with partners in other company departments and outside the company to jointly bring more value to customers.
C. By minimizing communication with external stakeholders.
D. By focusing solely on managing relationships with suppliers.
62. Which concept suggests that a company should make marketing decisions by considering consumers’ wants, the company’s requirements, and society’s long-run interests?
A. The marketing concept
B. The selling concept
C. The production concept
D. The societal marketing concept
63. What is the purpose of ‘market segmentation’?
A. To create a single product that appeals to all customers.
B. To divide a market into distinct groups of buyers with different needs, characteristics, or behaviors.
C. To lower prices for all products.
D. To increase advertising spending.
64. Which of the following best describes a ‘value proposition’?
A. A statement of the company’s financial goals.
B. The unique set of benefits a company promises to deliver to its customers.
C. A description of the company’s products and services.
D. A comparison of the company’s prices to those of its competitors.
65. What is ‘share of customer’?
A. The company’s percentage of 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 profit margin on each sale.
66. Which of the following is NOT one of the four Ps of the marketing mix?
A. Promotion
B. Price
C. People
D. Place
67. A company that focuses solely on producing and selling what they are good at, rather than considering customer needs, is exhibiting which orientation?
A. Marketing orientation
B. Societal marketing orientation
C. Production orientation
D. Customer orientation
68. How does ‘digital and social media marketing’ differ from traditional marketing?
A. It is more expensive.
B. It allows for more personalized and interactive communication with customers.
C. It reaches a smaller audience.
D. It is less measurable.
69. What is ‘customer lifetime value’ (CLV)?
A. The total number of customers a business has served.
B. The predicted revenue a business will generate in a single year.
C. The value of a customer’s initial purchase.
D. The predicted revenue a business will gain from a customer throughout their relationship.
70. A company that customizes its products and marketing messages to the specific needs of individual customers is practicing:
A. Mass marketing
B. Segment marketing
C. Micromarketing
D. Niche marketing
71. Which of the following is an example of ‘customer-perceived value’?
A. The actual cost of producing a product.
B. The price a company sets for its product.
C. A customer’s assessment of the benefits they receive relative to the costs they pay.
D. The profit margin a company makes on a product.
72. Which of the following describes the ‘production concept’ of marketing?
A. Consumers will favor products that are available and highly affordable.
B. Consumers will favor products that offer the most quality, performance, and innovative features.
C. A company should focus on making what they can produce best.
D. Marketing should consider consumers’ wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.
73. A local bakery decides to donate a portion of its profits to a local charity. This action best exemplifies which marketing orientation?
A. Sales orientation
B. Production orientation
C. Societal marketing orientation
D. Product orientation
74. What is the primary difference between ‘needs’ and ‘wants’ in the context of marketing?
A. Needs are basic requirements, while wants are how people choose to fulfill those needs.
B. Wants are essential for survival, while needs are optional.
C. Needs are determined by marketers, while wants are determined by consumers.
D. There is no real difference between needs and wants.
75. What is the main focus of ‘sustainable marketing’?
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. Reducing marketing expenses.
D. Ignoring environmental concerns.
76. What is ‘customer engagement’?
A. Simply selling products and services to customers.
B. Making the brand a meaningful part of consumers’ conversations and lives.
C. Sending out promotional emails to customers.
D. Providing customer service support.
77. If a business aims to build relationships with customers by consistently exceeding their expectations, which strategy are they employing?
A. Market penetration
B. Customer relationship management (CRM)
C. Product development
D. Diversification
78. Which of the following is the most accurate definition of ‘marketing’?
A. Selling products and services.
B. Advertising and promotion.
C. Managing profitable customer relationships.
D. Creating a need for products.
79. What is the role of marketing research in developing a marketing strategy?
A. To determine the most effective advertising channels.
B. To understand the market, customer needs, and the competitive landscape.
C. To set prices for products and services.
D. To manage the company’s social media presence.
80. What is the purpose of a SWOT analysis in marketing planning?
A. To analyze the company’s financial performance.
B. To evaluate the company’s strengths, weaknesses, opportunities, and threats.
C. To develop a marketing budget.
D. To identify the company’s target market.
81. A company’s mission statement should focus on:
A. Maximizing shareholder value.
B. The company’s short-term financial goals.
C. Meeting the needs of its customers and the value it provides.
D. Beating the competition at all costs.
82. What is ‘marketing myopia’?
A. Focusing on short-term sales rather than long-term customer relationships.
B. Defining a business in terms of products rather than customer needs.
C. Ignoring the competition.
D. Failing to adapt to changing market conditions.
83. A company decides to focus its marketing efforts on a small, well-defined segment of the market. This is an example of:
A. Mass marketing.
B. Niche marketing.
C. Undifferentiated marketing.
D. Micro-marketing.
84. What is the role of ‘marketing intermediaries’?
A. To produce goods and services.
B. To help the company promote, sell, and distribute its products to final buyers.
C. To provide financing for marketing activities.
D. To conduct marketing research.
85. How does the ‘societal marketing concept’ expand upon the ‘marketing concept’?
A. By focusing solely on maximizing profits.
B. By adding a focus on society’s well-being in addition to customer satisfaction and company profit.
C. By ignoring the needs of individual customers.
D. By prioritizing short-term sales over long-term relationships.
86. Which of the following is NOT a core marketing management function?
A. Analysis
B. Planning
C. Implementation
D. Accounting
87. What is the primary goal of marketing, according to the marketing concept?
A. To maximize short-term sales revenue.
B. To achieve organizational goals by satisfying customer needs and wants.
C. To create innovative products and services.
D. To minimize marketing expenses.
88. What is the ‘selling concept’?
A. Focusing on creating products that customers want.
B. Focusing on aggressive sales tactics to persuade customers to buy.
C. Focusing on building long-term customer relationships.
D. Focusing on understanding customer needs and wants.
89. How does ‘customer equity’ differ from ‘customer satisfaction’?
A. Customer equity is a measure of past sales, while customer satisfaction predicts future sales.
B. Customer equity is the total combined customer lifetime values of all the company’s customers, while customer satisfaction is an individual customer’s feeling of pleasure or disappointment.
C. Customer satisfaction is easier to measure than customer equity.
D. Customer equity focuses on short-term profits, while customer satisfaction focuses on long-term relationships.
90. Which of the following is an example of ’cause-related marketing’?
A. Selling products at a discount.
B. Donating a portion of sales to a charitable organization.
C. Using celebrities in advertising.
D. Offering free shipping on online orders.
91. Which marketing management orientation holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?
A. The production concept.
B. The product concept.
C. The selling concept.
D. The marketing concept.
92. How does ‘value proposition’ relate to customer-perceived value?
A. The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs, which influences customer-perceived value.
B. The value proposition is the cost of delivering a product, while customer-perceived value is the revenue generated.
C. They are unrelated concepts.
D. Customer-perceived value determines the value proposition.
93. What is ‘customer lifetime value’?
A. The total sales revenue generated by a customer over their relationship with a company.
B. The value of a customer’s initial purchase.
C. The discounted stream of future revenues expected from the customer’s purchases.
D. The average customer satisfaction score.
94. What is ‘customer-perceived value’?
A. The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.
B. The monetary cost a customer pays for a product.
C. The features of a product that a customer finds most appealing.
D. The number of customers a company has.
95. Which of the following is the most likely result of consistently exceeding customer expectations?
A. Increased customer loyalty.
B. Decreased marketing costs.
C. Lower product quality.
D. Reduced employee satisfaction.
96. What is the ultimate goal of Customer Relationship Management (CRM)?
A. To increase short-term sales.
B. To improve customer satisfaction.
C. To maximize customer lifetime value.
D. To reduce marketing expenses.
97. Which of the following reflects a customer-driven marketing strategy?
A. Developing products based on internal engineering capabilities.
B. Focusing on mass marketing to reach the largest possible audience.
C. Understanding customer needs through research and tailoring products accordingly.
D. Using aggressive sales tactics to persuade customers to buy.
98. A company that focuses solely on improving production and distribution efficiency is most likely following which marketing management orientation?
A. The marketing concept.
B. The societal marketing concept.
C. The production concept.
D. The product concept.
99. What is ‘share of customer’?
A. The percentage of a company’s sales compared to its competitors.
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 amount of money a company spends on advertising.
100. What is the potential downside of focusing too heavily on short-term sales?
A. Decreased customer satisfaction.
B. Damaged long-term customer relationships.
C. Increased brand loyalty.
D. Improved product quality.
101. How does the societal marketing concept extend the marketing concept?
A. By focusing solely on maximizing profits.
B. By considering the long-term welfare of consumers and society.
C. By ignoring ethical considerations.
D. By prioritizing short-term sales gains.
102. A firm embracing the _______ believes that consumers will not buy enough of its products unless the firm undertakes a large-scale selling and promotion effort.
A. marketing concept
B. selling concept
C. product concept
D. production concept
103. Which of the following best describes the ‘societal marketing concept’?
A. A philosophy that stresses that marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and society’s well-being.
B. A focus on short-term profits above all else.
C. A strategy focused solely on meeting customer needs.
D. A marketing approach that ignores ethical considerations.
104. What is the primary focus of the ‘marketing concept’?
A. Producing high volumes of goods at low cost.
B. Understanding and meeting customer needs better than competitors.
C. Aggressively promoting products to consumers.
D. Creating innovative product features.
105. How does ‘partner relationship management’ relate to customer relationship management?
A. It focuses on managing relationships with suppliers, distributors, and other partners to improve customer value.
B. It is a replacement for customer relationship management.
C. It focuses solely on managing relationships with competitors.
D. It is unrelated to customer relationship management.
106. Which of the following is the most direct result of creating customer delight?
A. Increased production costs.
B. Customer advocacy.
C. Reduced employee turnover.
D. Lower prices for consumers.
107. What is the role of ‘exchange’ in marketing?
A. The process of selling products to customers.
B. The act of obtaining a desired object from someone by offering something in return.
C. The measurement of customer satisfaction.
D. The creation of advertising campaigns.
108. Which of the following is an example of a ‘need’ in the context of marketing?
A. A desire for a specific brand of clothing.
B. The requirement for food, clothing, and shelter.
C. A preference for a particular type of entertainment.
D. The demand for the latest technology.
109. What is the potential consequence of a business solely focusing on creating superior products, according to the product concept?
A. Neglecting customer needs and market changes.
B. Failing to innovate.
C. Losing focus on production efficiency.
D. Ignoring the importance of promotion.
110. Which of the following is NOT a potential drawback of the ‘selling concept’?
A. It can lead to high inventory costs.
B. It focuses too much on customer needs.
C. It can damage customer relationships.
D. It assumes customers will repurchase even if unsatisfied.
111. Which of the following is the best example of a ‘want’ in the context of marketing?
A. The need for transportation.
B. The desire for a specific brand of car.
C. The requirement for basic nutrition.
D. The need for adequate housing.
112. How can a company best build a strong customer relationship?
A. By offering the lowest prices.
B. By consistently exceeding customer expectations.
C. By using aggressive advertising tactics.
D. By limiting customer interaction.
113. How does ‘customer equity’ differ from ‘customer satisfaction’?
A. Customer equity is the total combined customer lifetime values of all of the company’s customers, while customer satisfaction is an individual’s feeling of pleasure or disappointment resulting from comparing a product’s perceived performance to expectations.
B. Customer equity focuses on short-term gains, while customer satisfaction focuses on long-term relationships.
C. Customer equity measures employee morale, while customer satisfaction measures customer feedback.
D. Customer equity is easier to measure than customer satisfaction.
114. What is a ‘market’ in the context of marketing?
A. A physical location where goods are exchanged.
B. The set of actual and potential buyers of a product or service.
C. The process of designing a product.
D. The advertising budget of a company.
115. What is the primary goal of marketing, according to the definition provided in Chapter 1?
A. To maximize short-term sales revenue.
B. To develop profitable customer relationships.
C. To create innovative product designs.
D. To minimize advertising expenses.
116. Which of the following is NOT one of the core marketing concepts?
A. Needs, wants, and demands.
B. Marketing myopia.
C. Value and satisfaction.
D. Production efficiency.
117. Which of the following is a key trend influencing marketing today?
A. Decreasing use of social media.
B. The growth of not-for-profit marketing.
C. A decline in customer empowerment.
D. Reduced emphasis on ethical considerations.
118. What is ‘marketing myopia’?
A. Focusing on the immediate needs of the company rather than focusing on consumer needs.
B. The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products.
C. The process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.
D. The set of benefits or values a company promises to deliver to consumers to satisfy their needs.
119. A company that defines its mission in narrow product-oriented terms, rather than broad, customer-oriented terms, is likely suffering from:
A. Market segmentation.
B. Marketing myopia.
C. Customer relationship management failure.
D. Production inefficiencies.
120. How has the Internet most significantly impacted marketing practices?
A. It has reduced the importance of traditional advertising.
B. It has enabled greater customer engagement and interaction.
C. It has eliminated the need for market research.
D. It has made products cheaper to manufacture.
121. Which of the following is the best example of ‘market segmentation’?
A. Offering the same product to all customers.
B. Dividing a market into distinct groups of buyers with different needs.
C. Creating a single marketing message for all customers.
D. Focusing on mass production to lower costs.
122. Which of the following is NOT a core marketing management function?
A. Production planning
B. Marketing analysis
C. Marketing planning
D. Marketing implementation
123. What is the first step in the marketing process?
A. Designing a customer-driven marketing strategy.
B. Understanding the marketplace and customer needs and wants.
C. Constructing an integrated marketing program that delivers superior value.
D. Building profitable relationships and creating customer delight.
124. Which of the following is NOT a key element of a customer-driven marketing strategy?
A. Market segmentation.
B. Targeting.
C. Differentiation.
D. Production efficiency.
125. How does ‘positioning’ relate to differentiation in marketing?
A. Positioning defines the target market, while differentiation creates the product.
B. Positioning is the process of creating a unique offering, while differentiation communicates that offering to customers.
C. Differentiation creates a unique offering, while positioning establishes that offering in the minds of target customers.
D. Differentiation focuses on price, while positioning focuses on quality.
126. A non-profit organization promoting environmental conservation through social media campaigns is an example of:
A. Greenwashing.
B. Societal marketing.
C. Cause-related marketing.
D. Guerilla marketing.
127. A coffee shop implements a loyalty program where customers earn points for every purchase, leading to free drinks and discounts. This is an example of:
A. Product differentiation.
B. Customer relationship management.
C. Cost leadership.
D. Market segmentation.
128. Which of the following is the BEST example of ‘customer-perceived value’?
A. The price a company charges for its product.
B. The difference between the benefits a customer receives and the costs they incur.
C. The cost of producing a product.
D. The features and attributes of a product.
129. A company known for its excellent customer service has a strong:
A. Supply chain management.
B. Competitive advantage.
C. Production capacity.
D. Marketing budget.
130. A company that views marketing as ‘telling and selling’ is likely following the:
A. Marketing concept.
B. Selling concept.
C. Production concept.
D. Societal marketing concept.
131. A company that focuses on building and maintaining profitable customer relationships is practicing:
A. Mass marketing.
B. Customer-driven marketing.
C. Product-oriented marketing.
D. Sales-oriented marketing.
132. What is the ultimate goal of creating customer ‘satisfaction’?
A. To minimize customer complaints.
B. To retain customers and increase their lifetime value.
C. To lower marketing expenses.
D. To increase brand awareness.
133. A company using social media to directly engage with customers and address their concerns is practicing:
A. Traditional advertising.
B. Direct marketing.
C. Public relations.
D. Customer relationship management.
134. Which of the following is the most direct result of creating customer ‘delight’?
A. Increased advertising costs.
B. Stronger customer loyalty and advocacy.
C. Lower production costs.
D. Higher employee turnover.
135. Which of the following is NOT typically included in the ‘marketing mix’ (4Ps)?
A. Product
B. Price
C. Place
D. People
136. A new mobile phone is launched with advanced features and a premium price. Which marketing concept is MOST evident in this approach?
A. The production concept.
B. The product concept.
C. The selling concept.
D. The marketing concept.
137. Which of the following is an example of creating ‘customer equity’?
A. Offering low prices to attract new customers.
B. Building a portfolio of loyal customers who will generate future revenue.
C. Focusing on short-term sales gains rather than long-term relationships.
D. Investing heavily in advertising to reach a mass audience.
138. What is the most likely outcome of a company consistently delivering superior customer value?
A. Decreased customer loyalty.
B. Increased market share and profitability.
C. Higher employee turnover.
D. Decreased production efficiency.
139. What is the primary goal of marketing, according to the marketing concept?
A. To achieve the highest possible sales volume, regardless of customer satisfaction.
B. To identify and satisfy customer needs and wants profitably.
C. To minimize production costs and maximize efficiency.
D. To create innovative products and services, regardless of market demand.
140. A company’s ‘mission statement’ should primarily focus on:
A. Describing the company’s products and services.
B. Outlining the company’s financial goals.
C. Defining the company’s purpose and what it wants to accomplish.
D. Specifying the company’s marketing strategies.
141. A company decides to reduce its advertising budget during an economic recession. This decision primarily affects which element of the marketing mix?
A. Product
B. Price
C. Place
D. Promotion
142. A company decides to distribute its products exclusively through high-end retailers. This decision primarily affects which element of the marketing mix?
A. Product
B. Price
C. Place
D. Promotion
143. Which of the following is the most accurate definition of marketing?
A. A management process that aims to maximize short-term profits through aggressive sales tactics.
B. A process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
C. A set of promotional activities designed to persuade customers to purchase products or services.
D. A system for managing a company’s inventory and distribution channels.
144. A company focusing on the ‘selling concept’ is most likely to:
A. Invest heavily in market research to understand customer needs.
B. Prioritize product quality and innovation above all else.
C. Engage in aggressive promotional efforts to persuade customers to buy.
D. Build long-term relationships with customers through personalized service.
145. Which of the following best describes the ‘production concept’ orientation?
A. Focusing on continuous product improvements and innovation.
B. Focusing on aggressive sales tactics to maximize revenue.
C. Focusing on achieving high production efficiency and wide distribution.
D. Focusing on understanding and meeting customer needs better than competitors.
146. Which of the following is the BEST example of ’cause-related marketing’?
A. Selling products at a discounted price.
B. Donating a portion of sales to a charitable organization.
C. Advertising products on social media.
D. Offering excellent customer service.
147. What is ‘customer lifetime value’ (CLV)?
A. The total sales revenue generated by a customer over their entire relationship with a company.
B. The discounted stream of future profits a customer is expected to generate over their lifetime of patronage.
C. The initial cost of acquiring a new customer.
D. The average amount of time a customer remains loyal to a brand.
148. What is ‘partner relationship management’?
A. Managing relationships with individual customers.
B. Managing relationships with suppliers and distributors to improve the overall value delivery network.
C. Managing relationships with competitors to gain a competitive advantage.
D. Managing relationships with government agencies to ensure regulatory compliance.
149. What is the role of ‘marketing research’ in the marketing process?
A. To implement marketing plans.
B. To gather information about the marketplace and customer needs.
C. To promote products and services.
D. To manage customer relationships.
150. What is the ‘societal marketing concept’?
A. A marketing approach that prioritizes short-term profits and shareholder value.
B. A marketing approach that focuses solely on satisfying individual customer needs.
C. A marketing approach that balances company profits, customer wants, and society’s interests.
D. A marketing approach that emphasizes aggressive advertising and promotional campaigns.
