1. A company discovers that its target market is increasingly concerned about environmental sustainability. How should the company respond?
A. Ignore the trend, as it is a niche market.
B. Launch a public relations campaign to deny any negative environmental impact.
C. Adapt its products, processes, and marketing messages to reflect environmental concerns.
D. Increase advertising spending to promote existing products.
2. What is the primary focus of the marketing concept?
A. Maximizing production efficiency
B. Understanding and satisfying customer needs
C. Aggressive selling techniques
D. Minimizing costs
3. Which of the following is the LEAST sustainable competitive advantage?
A. Having a strong brand reputation
B. Owning a patent for a unique technology
C. Offering the lowest price
D. Having a superior customer service team
4. A company focusing on the triple bottom line considers which three factors?
A. Profit, people, and planet
B. Product, price, and promotion
C. Production, distribution, and sales
D. Planning, organization, and control
5. What is the role of marketing in an organization?
A. To manage the company’s finances
B. To develop new technologies
C. To identify and satisfy customer needs profitably
D. To oversee human resources
6. What is the purpose of market segmentation?
A. To sell products to everyone
B. To divide the market into distinct groups of customers with different needs
C. To lower prices for all customers
D. To increase advertising spending
7. Which of the following is NOT one of the four Ps of the marketing mix?
A. Product
B. Price
C. Place
D. People
8. What is ‘marketing ROI’?
A. The total revenue generated by a company
B. The return on investment from marketing activities
C. The cost of marketing campaigns
D. The number of customers acquired through marketing efforts
9. Which of the following is a key element of customer relationship management (CRM)?
A. Focusing solely on acquiring new customers
B. Building and maintaining profitable customer relationships
C. Ignoring customer feedback
D. Treating all customers the same
10. Which of the following is NOT a core aspect of marketing?
A. Creating value
B. Satisfying customer needs
C. Making a profit
D. Exchanging offerings of value
11. Which of the following is an example of a ‘need’ in marketing terms?
A. A desire for a luxury car
B. A craving for chocolate
C. The requirement for food to survive
D. The wish for the latest smartphone
12. What is ‘marketing myopia’?
A. Focusing too much on the product rather than the customer’s needs
B. Short-sighted marketing strategies
C. Ignoring the competition
D. Overspending on marketing campaigns
13. A car manufacturer partners with a tire company to offer a discount on tires to new car buyers. This is an example of:
A. Horizontal marketing system
B. Vertical marketing system
C. Corporate marketing system
D. Contractual marketing system
14. What is the primary benefit of understanding customer lifetime value (CLV)?
A. It helps companies determine the cost of acquiring new customers.
B. It allows companies to predict the long-term profitability of individual customers.
C. It simplifies the process of market segmentation.
D. It guarantees customer loyalty.
15. Which of the following is an example of ‘creating value’ through product development?
A. Lowering the price of an existing product
B. Developing a product that solves a customer’s problem
C. Increasing advertising spending
D. Expanding distribution channels
16. Which of the following best describes ‘value’ in the context of marketing?
A. The monetary price of a product
B. The ratio of what is given up for what is received
C. The product’s features and benefits
D. The company’s profit margin
17. A local bakery decides to start offering gluten-free options to cater to customers with dietary restrictions. This is an example of:
A. Market penetration
B. Product development
C. Market diversification
D. Market segmentation
18. Which era of marketing focused primarily on efficient production and distribution?
A. The production era
B. The sales era
C. The marketing era
D. The value-based marketing era
19. What does ‘exchange’ refer to in the context of marketing?
A. The process of trading stocks on the stock market
B. The transfer of goods or services from one party to another
C. The act of returning a product for a refund
D. The communication between a company and its customers
20. In the context of marketing, what is ‘supply chain management’?
A. Managing a company’s finances
B. Overseeing the production process
C. Integrating suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless value chain
D. Handling customer complaints
21. Which of the following is an example of ‘customer-driven marketing’?
A. A company develops a product based on internal engineering expertise.
B. A company conducts extensive market research to understand customer needs before developing a product.
C. A company aggressively promotes a product without considering customer feedback.
D. A company copies a competitor’s successful product.
22. A company that donates a portion of its profits to environmental causes is practicing:
A. Greenwashing
B. Cause-related marketing
C. Product placement
D. Guerilla marketing
23. What is the main difference between the ‘selling concept’ and the ‘marketing concept’?
A. The selling concept focuses on production efficiency, while the marketing concept focuses on sales volume.
B. The selling concept focuses on satisfying customer needs, while the marketing concept focuses on aggressive selling.
C. The selling concept focuses on convincing customers to buy what the company produces, while the marketing concept focuses on producing what customers want.
D. There is no difference between the two concepts.
24. A company decides to focus its marketing efforts on a small, well-defined segment of the market. This is known as:
A. Mass marketing
B. Niche marketing
C. Segmented marketing
D. Micromarketing
25. A company sends personalized emails to customers based on their past purchases and browsing history. This is an example of:
A. Mass marketing
B. Segmented marketing
C. Micromarketing
D. Niche marketing
26. What is the main goal of value-based marketing?
A. To offer the lowest prices
B. To provide greater value to customers than competitors
C. To maximize sales volume
D. To minimize marketing expenses
27. How does marketing contribute to societal well-being?
A. By creating jobs and stimulating the economy
B. By encouraging consumerism
C. By focusing solely on profits
D. By ignoring ethical considerations
28. What is the definition of ‘marketing’ according to the American Marketing Association?
A. The process of selling products to consumers
B. The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
C. Advertising and promotion
D. Market research and analysis
29. A company known for its high-quality products launches a lower-priced line to attract price-sensitive customers. What marketing strategy is this?
A. Brand extension
B. Market skimming
C. Market penetration
D. Value pricing
30. What is the purpose of creating a ‘customer profile’?
A. To identify potential employees
B. To understand the characteristics, needs, and behaviors of target customers
C. To track competitor activities
D. To manage inventory
31. Which of the following is an example of ‘customer-managed relationships’?
A. Customers using online reviews and social media to influence other buyers.
B. A company implementing a loyalty program to reward frequent customers.
C. A salesperson making cold calls to potential customers.
D. A company sending out email newsletters to its subscribers.
32. What is the ultimate goal of marketing, according to the marketing concept?
A. Achieving organizational goals through customer satisfaction.
B. Maximizing profits regardless of customer needs.
C. Creating innovative products that customers don’t yet know they need.
D. Becoming the market leader in terms of sales volume.
33. What does ‘customer lifetime value’ (CLV) represent?
A. The value of the entire stream of purchases a customer makes over a lifetime of patronage.
B. The initial cost of acquiring a new customer.
C. The average profit margin on each product sold.
D. The total sales revenue generated in a specific time period.
34. A company is launching a new line of eco-friendly cleaning products. Which of the following value propositions would be MOST appealing to environmentally conscious consumers?
A. “Effective cleaning without harming the planet.”
B. “The cheapest cleaning products on the market.”
C. “Strong cleaning power for the toughest stains.”
D. “The most popular cleaning products among celebrities.”
35. What is the primary goal of ‘partner relationship management’?
A. To work closely with partners in other company departments and outside the company to jointly bring greater value to customers.
B. To reduce costs by outsourcing non-core business functions.
C. To compete with other companies for market share.
D. To manage relationships with investors and shareholders.
36. Which of the following is NOT a potential drawback of focusing solely on customer satisfaction?
A. Increased customer loyalty.
B. High costs associated with exceeding customer expectations.
C. Potential for decreased profitability.
D. Difficulty in differentiating from competitors.
37. A local farm offers a ‘community-supported agriculture’ (CSA) program where customers pay in advance for a share of the farm’s harvest each season. This is an example of which of the following?
A. Customer-managed relationship.
B. Partner relationship management.
C. Mass marketing.
D. Direct marketing.
38. Which marketing orientation holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do?
A. The marketing concept.
B. The production concept.
C. The selling concept.
D. The societal marketing concept.
39. 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 actual cost of a product or service, as determined by the company.
C. The total number of customers a company has.
D. The projected future revenue from a customer’s purchases.
40. A luxury hotel wants to improve its customer lifetime value (CLV). Which of the following strategies would be MOST effective?
A. Providing exceptional service and personalized experiences to encourage repeat bookings.
B. Lowering prices to attract a wider range of customers.
C. Reducing staff training to minimize operating costs.
D. Focusing on short-term promotions rather than long-term relationship building.
41. Which concept calls for sustainable marketing, socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs?
A. The societal marketing concept.
B. The marketing concept.
C. The selling concept.
D. The production concept.
42. What is the ‘butterfly’ customer, according to customer relationship groups?
A. Potentially profitable but not loyal.
B. Highly profitable and loyal.
C. Not profitable and not loyal.
D. Potentially profitable and highly loyal.
43. A non-profit organization is trying to increase donations. They send out a direct mail campaign highlighting the impact of their work on the community and appealing to donors’ sense of social responsibility. Which marketing orientation are they primarily using?
A. Societal marketing concept.
B. Selling concept.
C. Marketing concept.
D. Production concept.
44. Which of the following is the most accurate definition of ‘market’?
A. A physical place where buyers and sellers exchange goods and services.
B. All actual and potential buyers of a product or service.
C. A group of people with similar demographic characteristics.
D. The total revenue generated by a company’s sales.
45. A small bakery decides to focus on selling organic, locally sourced ingredients to health-conscious customers. Which marketing orientation are they most likely following?
A. Societal marketing concept.
B. Production concept.
C. Selling concept.
D. Product concept.
46. What is ‘share of customer’?
A. The portion of the customer’s purchasing that a company gets in its product categories.
B. The company’s percentage of total sales in a given market.
C. The cost of acquiring a new customer.
D. The total number of customers a company has.
47. Which of the following is NOT a core aspect of marketing?
A. Creating value for customers.
B. Managing profitable customer relationships.
C. Understanding the marketplace and customer needs and wants.
D. Maximizing short-term sales regardless of customer satisfaction.
48. A grocery store chain decides to implement a new CRM system that tracks customer purchase history, preferences, and demographics. How can they best use this data to improve customer relationships?
A. Personalize marketing offers and promotions to individual customer needs.
B. Increase prices on popular items to maximize profits.
C. Reduce the variety of products offered to simplify inventory management.
D. Focus on attracting new customers rather than retaining existing ones.
49. In the context of marketing, what is a ‘value proposition’?
A. The set of benefits or values a company promises to deliver to consumers to satisfy their needs.
B. The company’s mission statement and core values.
C. The pricing strategy used to maximize profits.
D. The advertising campaign used to promote a product.
50. A clothing retailer identifies a segment of customers who are highly profitable but not very loyal. According to customer relationship groups, what is the MOST appropriate strategy for managing this segment?
A. Focus on capturing as much of their business as possible in the short term.
B. Invest heavily in loyalty programs to increase their commitment.
C. Ignore them and focus on more loyal customer segments.
D. Offer them discounts and promotions to encourage repeat purchases.
51. An automobile company is facing declining sales. They decide to launch an aggressive advertising campaign emphasizing the car’s stylish design and powerful engine, without addressing concerns about fuel efficiency or safety. Which marketing orientation are they primarily using?
A. Selling concept.
B. Marketing concept.
C. Societal marketing concept.
D. Production concept.
52. How has the rise of digital technology and social media impacted marketing practices?
A. It has led to more personalized, interactive, and engaging marketing approaches.
B. It has made traditional advertising methods more effective.
C. It has reduced the importance of customer relationship management.
D. It has decreased the need for market research.
53. A tech startup develops a revolutionary new smartphone with advanced features. They believe that customers will be attracted to the product’s innovation and quality, regardless of aggressive marketing efforts. Which marketing orientation best describes their approach?
A. Product concept.
B. Selling concept.
C. Marketing concept.
D. Production concept.
54. Which of the following is NOT a customer relationship management (CRM) tool?
A. Data warehousing.
B. Data mining.
C. Social media advertising.
D. Employee performance reviews.
55. If a company’s objective is to build ‘customer equity’, what should it focus on?
A. Building long-term customer relationships and maximizing customer lifetime value.
B. Maximizing short-term sales and profits.
C. Reducing marketing expenses to increase profitability.
D. Focusing on acquiring as many new customers as possible.
56. A company that focuses primarily on improving production and distribution efficiency likely follows which marketing orientation?
A. The production concept.
B. The product concept.
C. The selling concept.
D. The marketing concept.
57. What is the potential negative impact of a company solely focusing on short-term sales targets rather than building long-term customer relationships?
A. Reduced customer loyalty and increased customer churn.
B. Increased brand awareness and market share.
C. Higher profit margins on individual sales.
D. Improved employee morale and productivity.
58. Which of the following is the BEST example of ‘marketing myopia’?
A. A railroad company focusing solely on trains, rather than transportation.
B. A technology company investing heavily in research and development.
C. A retail store offering discounts and promotions to attract customers.
D. A restaurant chain expanding its menu to cater to diverse tastes.
59. What is the ‘selling concept’ primarily concerned with?
A. Aggressive promotional efforts and overcoming customer resistance.
B. Understanding customer needs and wants.
C. Developing innovative products that meet customer needs.
D. Building long-term relationships with customers.
60. A company that donates a portion of its profits to environmental causes is practicing which of the following?
A. Societal marketing.
B. Product marketing.
C. Sales marketing.
D. Production marketing.
61. Which marketing orientation holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do?
A. The production concept
B. The selling concept
C. The marketing concept
D. The product concept
62. Which of the following is the most accurate definition of ‘customer lifetime value’?
A. The total revenue a customer brings to the company in a single transaction.
B. The discounted stream of future revenue a customer is expected to generate over their relationship with the company.
C. The amount of money a customer spends in the first year of their relationship with the company.
D. The average revenue generated per customer each month.
63. How does a company build customer loyalty?
A. By consistently exceeding customer expectations.
B. By offering the lowest prices.
C. By limiting customer service interactions.
D. By focusing solely on acquiring new customers.
64. A company that adopts a market-oriented mission statement will define its business in terms of:
A. The products it sells.
B. The technology it uses.
C. The customer needs it satisfies.
D. Its production capacity.
65. What is the BCG matrix used for?
A. To measure customer satisfaction.
B. To analyze a company’s product portfolio.
C. To track marketing campaign performance.
D. To determine employee compensation.
66. Which of the following best describes a ‘differentiation’ strategy?
A. Offering products at the lowest possible price.
B. Focusing on a narrow market segment.
C. Creating superior customer value by offering unique or superior products/services.
D. Selling the same product to everyone.
67. What is the role of marketing intermediaries in a value delivery network?
A. To manufacture products.
B. To promote products directly to consumers.
C. To help the company promote, sell, and distribute its products to final buyers.
D. To provide raw materials.
68. A company deciding to serve a few segments well, rather than going after the whole market, is following a ________ strategy.
A. Mass marketing
B. Niche marketing
C. Micromarketing
D. Differentiated marketing
69. What is the overall purpose of strategic planning?
A. To maximize short-term profits.
B. To guide the company toward profitable growth.
C. To reduce marketing expenses.
D. To standardize operations.
70. Which of the following is an example of a company practicing the ‘production concept’?
A. A company that heavily invests in advertising to persuade customers.
B. A company that focuses on improving production efficiency to lower costs.
C. A company that conducts extensive market research to understand customer needs.
D. A company that offers highly customized products to individual customers.
71. What is ‘share of customer’?
A. The percentage of the company owned by its customers.
B. The portion of the customer’s purchasing that a company gets in its product categories.
C. The percentage of the market controlled by a single company.
D. The number of customers a company has compared to its competitors.
72. What is ‘product development’?
A. Selling existing products to new markets.
B. Developing new products for existing markets.
C. Selling more of the existing product to existing markets.
D. Entering a new market with an existing product.
73. What is ‘market segmentation’?
A. Selling products at different price points.
B. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors.
C. Advertising products in different media channels.
D. Distributing products through different retail outlets.
74. What is the meaning of ‘marketing myopia’?
A. Focusing on short-term gains rather than long-term strategy.
B. Focusing on the product rather than the customer needs.
C. Ignoring the competition.
D. Overspending on marketing campaigns.
75. A company focusing solely on selling what it makes rather than what the customer wants is demonstrating which concept?
A. Marketing concept
B. Selling concept
C. Societal marketing concept
D. Production concept
76. Which of the following is NOT a step in strategic planning?
A. Defining the company mission.
B. Setting company objectives and goals.
C. Designing the business portfolio.
D. Calculating quarterly profits.
77. What is the difference between a ‘star’ and a ‘cash cow’ in the BCG matrix?
A. A star has low market share and low growth rate, while a cash cow has high market share and high growth rate.
B. A star has high market share and high growth rate, while a cash cow has high market share and low growth rate.
C. A star generates a lot of cash, while a cash cow requires a lot of investment.
D. There is no difference; they are the same.
78. A mission statement should NOT be:
A. Market-oriented
B. Defined in terms of satisfying basic customer needs
C. Motivating
D. Product-oriented
79. What is ‘market development’?
A. Increasing sales of existing products to the current market.
B. Selling new products to the current market.
C. Introducing existing products to new markets.
D. Developing new products for new markets.
80. What is ‘customer equity’?
A. The total combined customer lifetime values of all the company’s current and potential customers.
B. The financial value of a company’s brand.
C. The company’s total assets minus its liabilities.
D. The number of customers a company has.
81. What is the purpose of a SWOT analysis?
A. To analyze a company’s financial statements.
B. To evaluate a company’s Strengths, Weaknesses, Opportunities, and Threats.
C. To determine the optimal pricing strategy.
D. To create a marketing budget.
82. What is the focus of the societal marketing concept?
A. Short-term profits
B. Meeting immediate customer needs
C. Balancing company profits, consumer wants, and society’s interests
D. Maximizing production efficiency
83. A business portfolio is a collection of ________ that make up the company.
A. Investment strategies
B. Business units
C. Marketing campaigns
D. Financial assets
84. A company decides to focus on being ‘customer-centered’. What should it do?
A. Focus on mass marketing to reach the largest audience.
B. Develop separate offerings for each market segment.
C. Focus on building customer equity.
D. Ignore competitor actions.
85. Which of the following is NOT a core customer value that marketers focus on?
A. Quality
B. Price
C. Service
D. Innovation
86. Which of the following is an example of market penetration?
A. Developing a new product for a new market.
B. Selling more of the existing product to existing markets.
C. Developing a new product for an existing market.
D. Entering a new market with an existing product.
87. Which of the following is the best example of a ‘dog’ in the BCG matrix?
A. A new product with high growth potential.
B. A product with a dominant market share.
C. A product with low market share in a low-growth market.
D. A product that generates a lot of cash.
88. Which of the following is NOT one of the 4Ps of marketing?
A. Product
B. Price
C. Promotion
D. People
89. What is the primary goal of customer relationship management (CRM)?
A. To maximize short-term sales revenue.
B. To create and maintain profitable customer relationships.
C. To minimize marketing expenses.
D. To standardize product offerings.
90. Which of the following is the most direct result of customer satisfaction?
A. Increased employee morale.
B. Higher customer lifetime value.
C. Lower production costs.
D. Faster inventory turnover.
91. What does ‘customer excellence’ primarily focus on?
A. Achieving the lowest prices in the market
B. Providing outstanding customer service and building strong customer relationships
C. Developing the most innovative products
D. Optimizing supply chain efficiency
92. What is the definition of value in the context of marketing?
A. The monetary price of a product
B. The relationship of benefits to costs, or what the consumer gets for what he or she gives
C. The production cost of a product
D. The brand reputation of a company
93. What is the main focus of ‘product excellence’?
A. Offering the lowest prices
B. Developing products with high perceived value and branding
C. Providing excellent customer service
D. Having the most efficient operations
94. What is positioning?
A. The location of a store
B. The process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products
C. The price of a product relative to its competitors
D. The distribution channels used to sell a product
95. Which of the 4Ps represents the value the customer perceives they are receiving from the product or service?
A. Product
B. Price
C. Place
D. Promotion
96. Which of the following is NOT a macrostrategy for developing customer value?
A. Customer excellence
B. Operational excellence
C. Product excellence
D. Competitor excellence
97. What is product development?
A. Improving the efficiency of production processes
B. Creating new products or services for existing markets
C. Expanding into new geographic markets
D. Lowering prices to increase sales volume
98. What is market segmentation?
A. A strategy for lowering prices to attract more customers
B. Dividing the market into distinct groups of customers with different needs and characteristics
C. A method for increasing advertising spending
D. A way to streamline production processes
99. A company focusing on the triple bottom line considers which three aspects?
A. Profit, people, planet
B. Product, price, promotion
C. Production, planning, performance
D. Passion, process, partnership
100. Which of the following best describes ‘operational excellence’?
A. Offering a wide variety of products
B. Achieving efficient operations and excellent supply chain management
C. Creating a strong brand image
D. Focusing on personalized customer service
101. What is diversification?
A. Selling the same product to different customer segments
B. Entering new markets with new products
C. Improving existing products
D. Lowering prices to attract more customers
102. Which growth strategy involves selling existing products in existing markets?
A. Market development
B. Product development
C. Market penetration
D. Diversification
103. What does ‘locational excellence’ involve?
A. Having a strong online presence only
B. Having a good physical location and internet presence
C. Focusing only on international markets
D. Ignoring the importance of physical stores
104. What is the marketing mix?
A. A set of decisions about product, price, place, and promotion
B. A strategic plan for entering new markets
C. A method for analyzing customer data
D. A financial statement outlining marketing expenses
105. What is the meaning of ‘sustainable competitive advantage’?
A. An advantage that can be easily copied by competitors
B. An advantage that lasts for a short period of time
C. An advantage that is not easily copied by competitors and can be maintained over a long period of time
D. An advantage based solely on lower prices
106. Which of the following is an example of ‘value co-creation’?
A. A company offering a standardized product to all customers
B. A customer designing their own shoes on a company’s website
C. A company solely focusing on reducing production costs
D. A company dictating product features based on internal research
107. What does market development involve?
A. Creating new products for existing markets
B. Selling existing products in new markets
C. Lowering prices to increase sales
D. Improving customer service
108. What is the role of the ‘promotion’ element in the marketing mix?
A. To determine the cost of producing a product
B. To communicate value to the target market
C. To decide where to sell a product
D. To design the features of a product
109. According to the BCG matrix, what are ‘cash cows’?
A. Products with high market share and high growth rate
B. Products with low market share and low growth rate
C. Products with high market share and low growth rate
D. Products with low market share and high growth rate
110. What does the acronym SWOT stand for in a marketing context?
A. Sales, Wages, Operations, Technology
B. Strengths, Weaknesses, Opportunities, Threats
C. Strategy, Workforce, Objectives, Tactics
D. Service, Warranty, Options, Training
111. A mission statement typically focuses on which of the following?
A. How the company plans to achieve profitability in the next quarter
B. The company’s long-term purpose and values
C. Detailed strategies for each product line
D. Day-to-day operational procedures
112. What is the primary goal of marketing?
A. To maximize short-term sales
B. To build long-term, mutually beneficial relationships with customers
C. To create innovative products
D. To minimize advertising costs
113. What is a target market?
A. The total number of potential customers
B. The segment(s) of the market that a firm directs its marketing efforts toward
C. The geographic location where a company sells its products
D. A group of competitors in the same industry
114. Which of the following is NOT a core aspect of marketing?
A. Creating value
B. Satisfying customer needs and wants
C. Making a profit at any cost
D. Exchanging offerings that have value for customers
115. Which element of the marketing mix involves decisions regarding channels, coverage, assortments, locations, inventory, and transportation?
A. Product
B. Price
C. Place
D. Promotion
116. What is the purpose of the Boston Consulting Group (BCG) matrix?
A. To analyze a company’s financial performance
B. To evaluate a company’s market share and market growth rate
C. To assess a company’s customer satisfaction levels
D. To measure a company’s brand awareness
117. Which growth strategy is considered the riskiest?
A. Market penetration
B. Market development
C. Product development
D. Diversification
118. In the BCG matrix, what are ‘question marks’?
A. Products with high market share and high growth potential
B. Products with low market share and low growth potential
C. Products with high market share and low growth potential
D. Products with low market share and high growth potential
119. What is a marketing plan?
A. A document outlining a company’s financial projections
B. A written document outlining the analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specified in terms of the four Ps, action programs, and projected or pro forma income (and other financial) statements
C. A summary of the company’s mission statement
D. A document detailing the company’s organizational structure
120. In the BCG matrix, what are ‘stars’?
A. Products with low market share and low growth potential
B. Products with high market share and high growth potential
C. Products with high market share and low growth potential
D. Products with low market share and high growth potential
121. Which of the following is NOT a core aspect of marketing, according to Chapter 3?
A. Creating value for customers.
B. Satisfying customer needs and wants.
C. Managing inventory and logistics.
D. Exchanging value between parties.
122. In the context of marketing, what does ‘customer lifetime value’ (CLV) represent?
A. The total amount of money a customer spends with a company over their lifetime.
B. The value of a customer’s social network to a company.
C. The discounted stream of future profits a customer will generate over their lifetime of patronage.
D. The cost of acquiring a new customer.
123. Which of the following is the most accurate definition of ‘customer-perceived value’?
A. The total cost of a product, including taxes and shipping.
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 price a company sets for its products.
D. The number of customers who purchase a product.
124. A company aims to be the lowest-cost producer in its industry, allowing it to offer lower prices than its competitors. This is an example of:
A. Product differentiation
B. Market segmentation
C. Cost leadership
D. Customer intimacy
125. A luxury hotel chain focuses on providing exceptional service and personalized experiences to its guests, justifying a higher price point. This is an example of:
A. Cost-plus pricing
B. Competitive pricing
C. Value-based pricing
D. Market penetration pricing
126. A car manufacturer focuses on producing cars as efficiently as possible, assuming that customers are primarily interested in low prices and widespread availability. This reflects the:
A. Production concept
B. Selling concept
C. Marketing concept
D. Societal marketing concept
127. What is ‘customer equity’?
A. The combined discounted customer lifetime values of all of the company’s current and potential customers.
B. The total amount of money a company has invested in its customer relationships.
C. The number of customers a company has multiplied by its average profit margin.
D. The perceived value of a company’s brand in the eyes of its customers.
128. A clothing retailer collects data on customer preferences and purchase history to personalize marketing messages and product recommendations. This is an example of:
A. Production concept
B. Mass marketing
C. Customer relationship management (CRM)
D. Supply chain management
129. What is the primary goal of the ‘partner relationship management’ (PRM)?
A. To build relationships with customers.
B. To work closely with partners in other company departments and outside the company to jointly bring more value to customers.
C. To reduce costs associated with marketing campaigns.
D. To increase the company’s share price.
130. A company identifies different groups of customers with distinct needs and preferences and tailors its marketing messages and product offerings to each group. This is an example of:
A. Mass marketing
B. Product differentiation
C. Market segmentation
D. Cost leadership
131. Which customer relationship group is the most profitable and loyal?
A. Strangers
B. Barnacles
C. Butterflies
D. True Friends
132. A company focuses heavily on advertising and personal selling to convince customers to buy its products, even if those products don’t perfectly meet their needs. This is an example of the:
A. Production concept
B. Selling concept
C. Marketing concept
D. Societal marketing concept
133. Which concept calls for meeting the present needs of consumers without compromising the ability of future generations to meet their own needs?
A. Marketing concept
B. Selling concept
C. Production concept
D. Societal marketing concept
134. A new coffee shop opens in a neighborhood and offers very low prices on its coffee to attract customers away from established competitors. This is an example of:
A. Market skimming pricing
B. Market penetration pricing
C. Cost-plus pricing
D. Competitive pricing
135. A company focuses on building strong relationships with individual customers, understanding their specific needs, and providing personalized service. This is an example of:
A. Cost leadership
B. Product differentiation
C. Market segmentation
D. Customer intimacy
136. Which marketing philosophy focuses on achieving organizational goals depending on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do?
A. Production concept
B. Selling concept
C. Marketing concept
D. Societal marketing concept
137. Which of the following is NOT a potential outcome of creating customer delight?
A. Increased customer loyalty.
B. Positive word-of-mouth marketing.
C. Higher profit margins.
D. Decreased customer expectations.
138. A local grocery store offers a loyalty program that rewards customers with discounts and exclusive offers based on their spending habits. This is an example of:
A. Customer acquisition
B. Customer retention
C. Market segmentation
D. Product differentiation
139. Which of the following best describes the modern view of marketing?
A. Telling and selling
B. Making a sale
C. Satisfying customer needs
D. Producing high-quality products
140. What is the primary difference between a ‘need’ and a ‘want’ in marketing terms?
A. A need is a basic requirement, while a want is a culturally shaped desire for a specific product or service that satisfies that need.
B. A want is a basic requirement, while a need is a culturally shaped desire for a specific product or service that satisfies that need.
C. Needs are always expensive, while wants are always affordable.
D. Wants are essential for survival, while needs are not.
141. A company sets its prices based on what its competitors are charging for similar products. This is an example of:
A. Market skimming pricing
B. Market penetration pricing
C. Cost-plus pricing
D. Competitive pricing
142. What is ‘customer relationship management’ (CRM) primarily concerned with?
A. Managing the company’s finances.
B. Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
C. Optimizing the production process.
D. Reducing advertising costs.
143. A local bakery decides to donate a portion of its profits to a local homeless shelter. This is an example of which concept?
A. Production concept
B. Selling concept
C. Marketing concept
D. Societal marketing concept
144. What is ‘customer satisfaction’ best described as?
A. The extent to which a product’s perceived performance matches a buyer’s expectations.
B. The price a customer is willing to pay for a product.
C. The number of units of a product sold in a specific period.
D. The company’s profit margin on a product.
145. A company manufactures a product and adds a standard markup to the cost of production to determine the selling price. This is an example of:
A. Market skimming pricing
B. Market penetration pricing
C. Cost-plus pricing
D. Value-based pricing
146. A tech company releases a new smartphone with innovative features and a high price tag. Initial sales are strong among early adopters, but then slow down significantly. The company then lowers the price to attract a wider customer base. This is an example of:
A. Market skimming pricing
B. Market penetration pricing
C. Cost-plus pricing
D. Competitive pricing
147. What is the ‘share of customer’?
A. The percentage of a company’s stock owned by its customers.
B. The portion of the customer’s purchasing that a company gets in its product categories.
C. The total number of customers a company has.
D. The amount of money a company spends on advertising per customer.
148. A company emphasizes the unique features and benefits of its product to create a distinct image in the minds of customers compared to its competitors. This is an example of:
A. Cost leadership
B. Market segmentation
C. Product differentiation
D. Market penetration
149. Which customer relationship group is potentially profitable but not loyal?
A. Strangers
B. Barnacles
C. Butterflies
D. True Friends
150. A company that emphasizes aggressive promotional efforts and believes that customers will not buy enough of its products unless it undertakes a large-scale selling and promotion effort is practicing the:
A. Marketing concept
B. Production concept
C. Selling concept
D. Societal marketing concept
