12 BSt – Marketing Test 2
The number of attempts remaining is 3
This relates to the difficulty of discerning truth among competing messages.
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1. The criticism against advertising that states that so many products make similar claims that the buyer gets confused as to which one should be relied upon is known as:
One criticism against advertisement is that so many products are advertised making similar claims that the buyer gets confused.
In the long run, the firm must cover this cost to survive.
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2. Which factor affecting price determination sets the minimum level or the floor price at which the product may be sold?
Product cost, including the cost of producing, distributing and selling the product, sets the minimum level or the floor price.
Product is a bundle of utilities and includes customer expectations.
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3. In the context of the Marketing Mix, what does the term ‘Product’ include, besides the physical attributes?
The concept of product includes not only the physical product but also the benefits offered by it from customer’s view point, and the extended product (after sales services, handling complaints).
This element focuses on making the product available to target customers.
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4. Decisions regarding the channels of distribution or marketing intermediaries (wholesalers, retailers) fall under which element of the marketing mix?
Place or Physical Distribution includes activities that make the firm’s products available to the target customers, including selection of dealers or intermediaries.
Frequent use can negatively affect customer perception of value.
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5. A limitation of Sales Promotion is that frequent reliance on it may give the impression that the firm is unable to manage its sales or that the buyers may start feeling that the product is not of:
Use of sales promotion tools may affect the image of a product. The buyers may start feeling that the product is not of good quality or is not appropriately priced.
Marketing includes pre-production, production, and post-production activities.
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6. Which function of marketing is performed even before goods are actually produced, such as identification of customer needs and designing the suitable product package?
Marketing is not merely a post-production activity. It includes activities performed even before goods are actually produced, such as identification of customer needs and designing suitable product package.
These activities are used to supplement advertising and personal selling.
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7. Which tool of the promotion mix is restricted to providing short-term incentives, such as cash discounts, free gift offers, or free samples, designed to encourage immediate purchase?
Sales promotion refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase of a product or service.
This objective requires attracting a larger number of purchasers.
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8. If a firm’s pricing objective is to obtain Market Share Leadership, what strategy will it generally adopt?
If a firm’s objective is to obtain a larger share of the market, it will keep the price of its products at lower levels so that greater number of people are attracted to purchase the products.
The manager must aim to reduce demand temporarily.
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9. What is the primary job of a marketer in a situation of ‘overfull demand’ (demand being more than the company can handle)?
If there is a situation of ‘overfull demand’, the job of marketing managers would be to find ways to reduce the demand temporarily, perhaps by reducing the expenditure on promotion or increasing prices.
This contrasts sharply with the inflexibility of advertising.
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10. What major merit of Personal Selling allows the sales presentation to be adjusted to fit the specific needs of individual customers?
Personal selling is highly flexible. The sales presentation can be adjusted to fit the specific needs of the individual customers.
This involves programmes designed to promote or protect a company’s image.
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11. Managing public opinion and a company’s relationship with stakeholders, including customers, suppliers, the government, and activist groups, is the responsibility of:
Public relations involves a variety of programmes designed to promote or protect a company’s image and its individual products in the eyes of the public.
This constitutes the full expense base of the firm.
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12. The total of Fixed Costs, Variable Costs, and Semi-Variable Costs for a specific level of activity (say volume of sales or quantity produced) is known as:
Total Costs are the sum total of the fixed, variable and semi-variable costs for the specific level of activity.
This is a personal form of communication, unlike advertising.
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13. Which element of the promotion mix involves oral presentation of a message in the form of conversation with one or more prospective customers for the purpose of making sales?
Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales.
This relates to the buyer’s perceived gain from the purchase.
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14. What sets the upper limit of the price which a buyer would be prepared to pay for a product?
While product costs set the lower limits, the utility provided by the product and the intensity of demand of the buyer sets the upper limit of price.
Recall the three types of benefits a customer seeks.
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15. What kind of benefit does the purchase of a motorbike provide by satisfying the need for prestige and esteem?
The purchase of a motorcycle provides functional utility of transportation, satisfies the need for prestige and esteem (psychological benefit), and provides social benefit.
These costs do not vary with the level of activity.
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16. Which type of cost remains the same whether 1000 units or 10 units are produced in a week, such as the rent of a building?
Fixed costs are those costs, which do not vary with the level of activity of a firm, such as the rent of a building or salary of a sales manager.
One relates to intermediaries, the other to physical movement.
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17. Which two major decision areas fall under the Physical Distribution function?
The two major decision areas under physical distribution are: decision regarding channels of distribution or the marketing intermediaries, and physical movement of the product.
This focuses on logistics and channels.
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18. The goal of ensuring products are available at the right place, at the right time, and in the right quantity is achieved through the management of:
Physical distribution covers all the activities required to physically move goods from manufacturers to the customers and make them available at the right place, time, and quantity.
Recall the four major tools used for communication.
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19. Which two elements of the Marketing Mix are essential parts of the Promotion Mix?
The four major tools of promotion mix are Advertising, Personal Selling, Sales Promotion, and Publicity.
This function requires being proactive in promoting or decoding regulations.
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20. Which specific public relations function involves the organisation dealing with government officials and ministers regarding policies that affect the business?
Lobbying involves the organisation dealing with government officials and ministers with respect to policies relating to business and the economy.
This tool is not controlled by the marketing firm.
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21. Which element of the promotion mix is a non-paid, non-personal form of communication, where the message goes as a news item from an independent source, lending it more credibility?
Publicity is similar to advertising, but it is a non-paid form of communication, and there is no identified sponsor for the communication.
Accuracy and speed in this activity are critical for customer satisfaction.
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22. Which physical distribution component involves the flow of orders moving in reverse direction, from customers to the manufacturers?
Order Processing is the first step in the physical distribution system, where products flow from manufacturers to customers while orders flow in the reverse direction.
This objective focuses on premium positioning and innovation.
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23. Charging higher prices to cover high quality and high cost of research and development (R&D) aligns with which pricing objective?
Attaining Product Quality Leadership is achieved by charging higher prices to cover high quality and high cost of research and Development.
Review the list of considerations for branding success.
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24. Which characteristic is NOT listed as a consideration when choosing a good brand name?
A good brand name should be short, easy to pronounce, suggest benefits, be distinctive, versatile, legally protected, and possess staying power. Aggressiveness is associated with the Selling Concept.
This relates to the standardisation of the message transmitted.
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25. Which feature of advertising implies that the message cannot be adjusted to the needs of individual buyers, creating a monologue rather than a dialogue?
Impersonality means there is no direct face-to-face contact between the prospect and the advertiser. Advertising creates a monologue and not a dialogue.
Marketing is not confined only to business organisations.
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26. When an organisation, like a hospital or a religious organisation, spreads a message or achieves a goal, this demonstrates that marketing activities are equally relevant to:
Marketing activities are equally relevant to non-profit organisations such as hospitals, schools, sports clubs and social and religious organisations.
The efficiency of a firm in serving customers depends on the location of these facilities.
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27. Which physical distribution component involves managing the time gap between the production/procurement of goods and their sale/use, creating time utility?
Warehousing refers to the act of storing and assorting products in order to create time utility in them. It addresses the time gap between production and consumption.
Common modes include newspapers, television, and radio.
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28. Which element of the promotion mix is an impersonal form of communication that is paid for by the marketers (sponsors) to promote some goods or service?
Advertising is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or service.
Focus on the cost consequence of holding large stock.
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29. In the context of Inventory Control, why is maintaining a higher level of inventory discouraged despite providing better customer service?
Higher the level of inventory, higher will be the level of service to customers but the cost of carrying the inventory will also be high because lot of capital would be tied up in the stock.
This is a major advantage of face-to-face interaction.
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30. Which feature of Personal Selling implies that a salesperson can immediately know customer reactions and adapt the presentation accordingly?
Personal selling provides direct and immediate feedback. Sales persons come to know about the customers’ reactions immediately.
This tool liquidates stock quickly.
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31. Offering products at special prices to clear off excess inventory (e.g., a car manufacturer selling a specific brand at a discount for a limited period) is a sales promotion tool known as:
Rebate involves offering products at special prices, to clear off excess inventory.
Customer satisfaction becomes the focal point.
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32. An organisation following the Marketing Concept takes all decisions from the point of view of:
All the decisions in a firm following the Marketing Concept are taken from the point of view of the customers; customer’s satisfaction becomes the focal point.
These are intangible activities or benefits offered for sale.
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33. Services like insurance, health care, and dry cleaning are marketed because they are considered to be:
Services are intangible activities, benefits or satisfactions which are offered for sale.
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