Transcription

1 MGT301- Principles of Marketing MIDTERM Time: 60 min Marks: 47 Question No: 1 ( Marks: 1 ) - Please choose one If XYZ Insurance Company observes a sudden increase in the number of farmers seeking flood insurance in Pakistan due to major floods in India, Which one of the following is representing flood situation for the company? Marketing opportunity Marketing strategy Marketing concept Marketing threat Question No: 2 ( Marks: 1 ) - Please choose one If a local company wants to adopt the marketing concept. To be consistent with this move, it should adopt which of the following philosophies? Focusing on today is important for us Making money is our business The customer is always right Keeping prices low is our objective Question No: 3 ( Marks: 1 ) - Please choose one The digital age will fundamentally change customers thinking of convenience, speed, price, product information and service. This new consumer thinking will affect which one of the following businesses? A few businesses Every business Established businesses Starting up businesses

2 Question No: 4 ( Marks: 1 ) - Please choose one Which of the following is an intensive growth strategy of increasing sales in current markets with current products? Market development Market penetration Product development Market saturation Question No: 5 ( Marks: 1 ) - Please choose one Beliefs and values that are passed on from parents to children and are reinforced by schools, churches, business and government refer to which of the following beliefs and values? Crucial Core Secondary Primary Question No: 6 ( Marks: 1 ) - Please choose one Which one of the following factor influences the consumer buying decision process? Person-specific Social Demographic Situational Question No: 7 ( Marks: 1 ) - Please choose one The receptionist at a doctor's office throws away certain product circulars mailed by pharmaceutical companies and keeps the ones on products she believes are useful. The receptionist is performing which role in the buying centre? Influencer Buyer Decider Gatekeeper Question No: 8 ( Marks: 1 ) - Please choose one

3 ABC Company divides the pet market according to the owners race, occupation, income and family life cycle. Which of the following types of segmentation is being used by the Company? Occasion Age and life cycle Demographic Psychographic Question No: 9 ( Marks: 1 ) - Please choose one When Burger King targets different groups from children and teens to adults and seniors with different ads and media, it is practicing which one of the following segmentation? Demographic Age and life cycle Psychographic Behavioral Question No: 10 ( Marks: 1 ) - Please choose one A period of rapid market acceptance and increasing profits refers to which of the following stages of the product life cycle? Decline Growth Maturity Introduction Question No: 11 ( Marks: 1 ) - Please choose one Fast-food restaurants offer tasty and convenient food at affordable prices; they contribute to fatness that harms consumer health. Which one of the following concepts is NOT being followed by this company? Product concept Production concept Societal marketing concept Marketing concept Question No: 12 ( Marks: 1 ) - Please choose one

4 Which one of the following is a chief goal of the implementation function in marketing process? Develops marketing plans Turns plans into actions Takes corrective actions Develops strategic plans Question No: 13 ( Marks: 1 ) - Please choose one Which one of the following are the MOST useful source of speedier and more comprehensive information? Suppliers Key customers Company reports Sales force Question No: 14 ( Marks: 1 ) - Please choose one Which one of the following sets represents 4 C s of the marketing mix? Customer solution, cost, convenience, communication Customer, cost, convenience, comfort Convenience, communication, coverage, cost Cost, coverage, communication, consultancy Question No: 15 ( Marks: 1 ) - Please choose one When Nokia introduced its new mobile set in the market in response to consumer demand, it was applying which one of the following concepts? Selling concept Production concept Customer concept Marketing concept Question No: 16 ( Marks: 1 ) - Please choose one ABC Company wants to learn about consumer attitudes toward mail order purchases and conducts a study to acquire this

5 information. Which one of the following data would BEST be classified for this study? Causal Experimental Primary Secondary Question No: 17 ( Marks: 1 ) - Please choose one Demographic forces, Economic forces, Natural forces, Technological forces are included in the company s: Marketing environment Microenvironment Macroenvironment All of the given options Question No: 18 ( Marks: 1 ) - Please choose one Customer relationship management helps to deliver: All of the given options Superior Customer Value Customer Loyalty Customer Satisfaction Question No: 19 ( Marks: 1 ) - Please choose one When competition is intense and there are many manufacturers then the buyer has more options of product switching. This is represented in Porters model as: Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Rivalry among competing firms Question No: 20 ( Marks: 1 ) - Please choose one What are we going to do? And, how are we going to do it? In which of the following categories do these two questions fall? Researching Planning Controlling

6 Managing Question No: 21 ( Marks: 1 ) - Please choose one Which of the following steps in strategic planning occurs at the business unit level rather than the corporate level? Defining the company mission Planning marketing strategies Setting companies objectives and goals Designing the business portfolio Question No: 22 ( Marks: 1 ) - Please choose one Environmental groups are included in which of the following publics? Citizen-action publics Media publics Government publics Local publics Question No: 23 ( Marks: 1 ) - Please choose one Which one of the following environment depicts consumer purchasing power and spending patterns? Demographic environment Cultural environment Economic environment Consumer environment Question No: 24 ( Marks: 1 ) - Please choose one Mr. X wants to conduct a marketing research. He has limited resources and he needs to collect large amounts of information. Mr. X should adopt which of the following contact method? Mail questionnaire Telephone interviewing Personal interviewing Computer interviewing Question No: 25 ( Marks: 1 ) - Please choose one Each culture contains smaller subcultures, which can be defined as: Personality characteristics of a consumer The motives that people have for their behavior

7 Shared value systems based on common life experiences Geographic regions and income levels Question No: 26 ( Marks: 1 ) - Please choose one Which of the following units would most likely be considered in the study of consumer behavior? Competitors Suppliers Individuals None of the given options Question No: 27 ( Marks: 1 ) - Please choose one The firms that buy goods and services in order to produce products and services to sell to others are called: Business markets Consumer markets International markets None of the given options Question No: 28 ( Marks: 1 ) - Please choose one Business demand is usually. Derived Steady Predictable Unpredictable Question No: 29 ( Marks: 1 ) - Please choose one Identify the other market offerings marketers have broadened the concept of "product" to include. Organizations, persons and places Ideas, services and organization Places, organizations and times None of the given options Question No: 30 ( Marks: 1 ) - Please choose one A good package may: Protect the product Help to sell the product

8 Raise total distribution cost All of the given options Question No: 31 ( Marks: 1 ) - Please choose one The positive differential effect that knowing the brand name has on customer response to the product or service is known as Brand Equity Brand Positioning Brand Loyalty None of the given Question No: 32 ( Marks: 1 ) - Please choose one A luxury car manufacturer was facing a loss as his sales were diminishing due to rising inflation and weak economy. He therefore decided to manufacture fuel efficient and cheaper cars. The manufacturer was stretching his product line: Upwards Downwards Both ways None of the given options Question No: 33 ( Marks: 1 ) - Please choose one Mr. A started his business by manufacturing small cheaper cars. As his business blossomed he decided to manufacture expensive luxury cars to add prestige to his current products. Mr. A was stretching his product line: Upwards Downwards Both ways None of the given options Question No: 34 ( Marks: 1 ) - Please choose one During which of the following stage of product life cycle the company has to face stiff competition from its competitors as there are many competitors in the market? Introduction Growth

9 Maturity Decline Question No: 35 ( Marks: 3 ) A firm is going to launch a new product into the market. They are looking for a brand name that can be associated with the product. What should be the characteristics of a good brand name? Ans: The characteristics of the brand name should include but not limited to the following: 1) Distinct and not matching with any of the existing brand names. 2) Attractive. Should be eye / attention catching. 3) Should give basic information about what the product could be. 4) Should not be offensive to anyone. 5) Easy to remember for future referrals. Question No: 36 ( Marks: 5 ) Briefly discuss the three major steps in target marketing. Ans:- The three steps in target marketing: Market segmentation :- Covers the scope of selection of segment based on the product / service features or the potential area that could be targeted. Segmentation is nothing but division of large groups into small bundles for convenient and effective marketing. Market Targeting:- Based on the services / products offered, one or more segments of the market will be targeted for better results. This is done through detailed research which could include support from MIS system along with marketing managers to be more

10 specific. Ultimately, the desired segments to be target are selected. This process is more or less like a screening process. Market Implementation & Control:- Once the markets / segments are selected for targeting / focusing, the product / service is introduced and monitored. The marketing planning and implementation process come into picture with practical implementation and subsequent control for continuous improvement based on the feedback received from end users. Question No: 37 ( Marks: 5 ) Explain the concept of post purchase behavior; also enlist the stages involved in the buyer s decision process. Ans:- Post Purchase Behavior:- Once the product / service has been acquired, consumers behavior will fall under following categories:- 1) Quality / conformance: Is the product meeting the prerequisite of consumer 2) Satisfaction to Requirements:- Once the product / service is under usage, is this what the consumer really wanted. 3) Price:- Consumer will evaluate whether the product with offered features is worth the amount he has spent on this service. 4) Feedback:- Consumers at time do tend to give a feedback to the product / service providers

11 5) Informal marketing:- If the customer is happy, he may refer / recommend the product to his social / family or professional circle or to the group with whom he interacts. Incase the product did not meet his requirements, the recommendations can go negative way and even destroy potential market for the product in that particular geographical region at least. Buyer s decision process: Buyers decision process usually works through the following characteristics: 1) Psychological effect. 2) Age & Gender influence 3) Recommendation by others. 4) Price / Budget 5) Specifications match with requirements. 6) Marketed well to hold a position in buyer s mind. 7) Packaging 8) Brand 9) Labeling 10) Availability 11) Sizing for adequacy to meet customer s desired requirement 12) Features 13) Quality 14) Previous experience / exposure 15) Social & cultural factors. MIDTERM EXAMINATION Time: 60 min Marks: 47 Question No: 1 ( Marks: 1 ) - Please choose one

12 Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor reflects which one of the following concepts? Sales promotion Direct marketing Advertising Personal selling Question No: 2 ( Marks: 1 ) - Please choose one Which one of the following options refers to The art and science of choosing target markets and building profitable relationships? Customer relationship management Knowledge management Total quality management Marketing management Question No: 3 ( Marks: 1 ) - Please choose one The first step in the marketing control process is BEST described when the marketer performs which of the following activities? Evaluates performance Measures performance Sets specific goals Takes corrective action Question No: 4 ( Marks: 1 ) - Please choose one Which type of management is responsible for setting the company s mission, objectives, broad strategies and policies? Top management Middle level management Low level management Functional management Question No: 5 ( Marks: 1 ) - Please choose one

13 Your marketing department is attempting to improve strategic decision making, assess and track competitors actions and provide early warning of opportunities and threats. For this purpose which of the following will be used by your department? Internal databases External databases Marketing intelligence Company reports only Question No: 6 ( Marks: 1 ) - Please choose one If ABC Ltd knows that its market share in Pakistan has dropped 13 percent in the first quarter of the year but does not know what might have contributed to this decline, it is in which stage of the marketing research process? Hypothesis development Symptom identification Problem identification Data interpretation Question No: 7 ( Marks: 1 ) - Please choose one In the previous three years, four studies have been conducted on the characteristics of ABC Company s clients. As the firm seeks to put together a report showing trends in this area, it has a hard time locating the information contained in these study reports. What does this firm seem to need? A marketing research manager A marketing databank Survey research Primary data Question No: 8 ( Marks: 1 ) - Please choose one Which of the following are a form of product that consists of activities, benefits or satisfactions offered for sale that are

14 essentially intangible and do not result in the ownership of anything? Line extensions Services Brands Supplements Question No: 9 ( Marks: 1 ) - Please choose one Which one of the following concept BEST represents the involvement of management and employees in the continuous improvement of the production of goods and services? Total quality management Marketing management Customer relationship management Knowledge management Question No: 10 ( Marks: 1 ) - Please choose one The publishers of The Economist developed a campaign to market the magazine to university and college students studying business and management courses. The publishers are focusing on which of the following strategies? Product development Horizontal diversification Market development Conglomerate diversification Question No: 11 ( Marks: 1 ) - Please choose one Which one of the following product requires a lot of advertising, personal selling and other marketing efforts because consumer either does not know about it or knows about it but does not normally think about buying? Specialty products Shopping products Industrial products Unsought products

15 Question No: 12 ( Marks: 1 ) - Please choose one According to Peter Drucker goal of all organizations is to gain and retain customers. This is accomplished through: Marketing and Innovation Finance and Marketing Human resource and Marketing Finance and Human Resource Question No: 13 ( Marks: 1 ) - Please choose one Cool industry manufactures air conditioners. ABC company distributes its manufactured products to the markets. ABC is a: Competitor Marketing intermediary Customer Public Question No: 14 ( Marks: 1 ) - Please choose one Companies are refraining to use poisonous gases in the manufacturing of their products to prevent damage to the environment. The companies are trying to follow: Production Concept Product Concept Marketing Concept Societal Marketing Concept Question No: 15 ( Marks: 1 ) - Please choose one The selling concept is typically practiced for goods. Convenience Shopping Specialty Unsought Question No: 16 ( Marks: 1 ) - Please choose one Which one of the following statements is an example of a problem that may arise in the implementation of the marketing concept?

16 is The marketer cannot satisfy all the marketing segments Consumers do not understand what the marketing concept Dealers do not support the marketing concept A product may fit the needs of too many segments Question No: 17 ( Marks: 1 ) - Please choose one What are we going to do? And, how are we going to do it? In which of the following categories do these two questions fall? Researching Planning Controlling Managing Question No: 18 ( Marks: 1 ) - Please choose one Planning which is used to supervise the operations of the organization is called: Strategic Planning Tactical Planning Operational Planning Mission Planning Question No: 19 ( Marks: 1 ) - Please choose one A marketing department organization where a product manager develops a complete strategy for a product or brand is called: Functional Organization Geographic Organization Product Management Organization Customer Management Organization Question No: 20 ( Marks: 1 ) - Please choose one Neighborhood residents and community organizations comprise part of a firm s: Local Publics

17 General Publics Governmental Publics Financial Publics Question No: 21 ( Marks: 1 ) - Please choose one Which of the following statements regarding the natural environment is FALSE? Weather has become less intense in the previous few years Increased pollution is a major concern for marketers today Global warming is a major issue for marketers to deal with today The threat of governmental intervention in natural resource management is a major issue for marketers Question No: 22 ( Marks: 1 ) - Please choose one A(n) is a segment of the population selected to represent the population as a whole. Survey Sample Experiment Market Question No: 23 ( Marks: 1 ) - Please choose one A person on the University Book Shop's survey asks respondents to tell the researcher, in their own words, what they dislike about textbook shopping. What is the nature of this question? An open-ended A dichotomous A multiple choice A scale Question No: 24 ( Marks: 1 ) - Please choose one The consumer buyers characteristics are affected by which of the following factors?

18 Cultural and Social Personal and Political Psychological and Demographical All of the given options Question No: 25 ( Marks: 1 ) - Please choose one The Hispanic, African American, Asian American, and mature consumers in America are all examples of: Culture Sub culture Social class All of the given options Question No: 26 ( Marks: 1 ) - Please choose one Identify the term used when buyers buy without modifications. New task Same order Straight rebuy Reorder Question No: 27 ( Marks: 1 ) - Please choose one Which of the following is NOT a characteristic of business markets? Business buyers are more emotional buyers than are final consumers Business markets are more geographically concentrated Business demand is derived demand Many business markets have inelastic demand Question No: 28 ( Marks: 1 ) - Please choose one When Tetra Pack promotes the idea that milk should be drunk in the morning and the evening, it is using.

19 Behavioral segmentation Benefit segmentation Occasion segmentation Loyalty marketing Question No: 29 ( Marks: 1 ) - Please choose one KPV firm has limited resources. Which marketing strategy would you suggest that KPV should adopt? Concentrated Marketing Differentiated Marketing Undifferentiated Marketing None of the given option Question No: 30 ( Marks: 1 ) - Please choose one ABC Company is the leading manufacturer of steel, cement and other uniform building materials. Which marketing strategy would you suggest that ABC Company should adopt? Concentrated Marketing Differentiated Marketing Undifferentiated Marketing None of the given option Question No: 31 ( Marks: 1 ) - Please choose one Identify the two broad classes that products and services fall into based on the types of consumers that use them. Consumer products and industrial products Core products and augmented products Specialty products and unsought products Convenience products and shopping products Question No: 32 ( Marks: 1 ) - Please choose one With what groups do firms conduct concept testing of new products? Suppliers Employees

20 Target customers Focus groups Question No: 33 ( Marks: 1 ) - Please choose one A luxury car manufacturer was facing a loss as his sales were diminishing due to rising inflation and weak economy. He therefore decided to manufacture fuel efficient and cheaper cars. The manufacturer was stretching his product line: Upwards Downwards Both ways None of the given options Question No: 34 ( Marks: 1 ) - Please choose one Launching a product in a small part of the market is called: Test marketing Product testing Marketing analysis All of the given Question No: 35 ( Marks: 3 ) A firm is going to launch a new product into the market. They are looking for a brand name that can be associated with the product. What should be the characteristics of a good brand name? The brand should possess following characteristics: a. Helps customer identify the products that may help them. b. It gives some insight about the product quality. c. Brand name gives reliability & dependability that everytime this brand is purchased, we will have the same specifications, quality, services without any compromise. d. Becomes the basis of a Marketing Concept

21 e. Brand name also helps in market segmentation which is part of market targeting. Question No: 36 ( Marks: 5 ) Discuss the role of each participant in the business buying process? The single point where the decision of buying a business is to be made is called buying-center and all the participants who constitute or take part in this business buying process can be considered as constituents of this buying center. We may summarize the roles of each participant in the business buying process as follows: 1) User: Potential end user of the product / service that will be provided. At times this participant initiates the requirement and may give the basic idea about the specifications or requirements. 2) Influencers: Helps to define detailed specifications and offer other / alternative sources for evaluation. These usually include technical personnel who have to ensure that requirements are set in the right way and are achievable. 3) Buyers: Responsible for selection of suppliers / vendors. They can influence the requirements / specifications based on their experience or based on the databank of existing suppliers / vendors. However, these people are primarily responsible only for selection of suppliers / vendors. A standard practice employed these days by multinational organizations is to have an Approved Vendors List where they enlist suppliers / vendors who are qualified, might have served them in past with satisfaction and are dependable for future requirements.

22 4) Deciders: A top or leading version of buyer. They will take the final decision on the suppliers and hence can be said to be team leaders for buying team. 5) GateKeepers: Responsible for regulating and maintain the flow of information to others. This is to ensure that the INPUT of their company is distinctive and has a potential edge to survive in market and serve better. Question No: 37 ( Marks: 5 ) A company has to be careful while dividing the market into various segments. Some segments appear to be fruitful in the short run and unprofitable in the long run. Mention various structural factors that affect long-run segment attractiveness. A company many divide into small or large number of groups based on different characteristics such as behaviors, needs etc. This is done as part of market targeting process to meet organizational objectives and satisfy customer needs in better way. However, there are several structural factors that the attractiveness of long run segments which may include the following: a. Influence of buyers on service / product providers. Strong buyers can force service providers to cut down their prices or offer more services at same price by even giving an opportunity to competitors. b. The segment opted by the company may be potentially less attractive market if there are several of substitutes already available in that segment. These substitutes do force the new entrants to be more competitive in terms of prices as well as quality for market penetration. c. The segment may not be attractive if the suppliers have an influence on the pricing and quality as they may practice monopoly. MIDTERM EXAMINATION

23 Time: 60 min Marks: 47 Question No: 1 ( Marks: 1 ) - Please choose one A marketing manager of a large consumer foods company is studying distribution, promotion, and price of the company's product. Marketing manager is studying which one of the following concepts? Marketing plan Marketing strategy Marketing mix Market offering Question No: 2 ( Marks: 1 ) - Please choose one Through which process individuals and groups obtain what they need and want by creating and exchanging products and value with others? Production process Marketing process Managerial process Accounting process Question No: 3 ( Marks: 1 ) - Please choose one If a local company wants to adopt the marketing concept. To be consistent with this move, it should adopt which of the following philosophies? Focusing on today is important for us Making money is our business The customer is always right Keeping prices low is our objective Question No: 4 ( Marks: 1 ) - Please choose one A network of networks that consists of millions of smaller domestic, academic, business, and government networks, which

24 together carry various information and services. Which one of the following networks represents it? LAN Intranet Extranet Internet Question No: 5 ( Marks: 1 ) - Please choose one Which of the following is an intensive growth strategy of increasing sales in current markets with current products? Market development Market penetration Product development Market saturation Question No: 6 ( Marks: 1 ) - Please choose one Harvard University is using the systematic design, collection, analysis, and reporting of data relevant to marketing its programs to minority students. What do we call this? Promotion Self-study Marketing research Cost-benefit analysis Question No: 7 ( Marks: 1 ) - Please choose one Which one of the following stage is NOT a part of buyer s black box? Brand choice Product choice Need recognition Dealer choice Question No: 8 ( Marks: 1 ) - Please choose one After deciding to order replacement parts for ageing machinery, the buyer for a construction company examines catalogues and

25 trade publications. The buyer is probably at which stage of the organizational buying decision process? Problem recognition Product specification Product-supplier search Product evaluation Question No: 9 ( Marks: 1 ) - Please choose one Which one of the following factor indicates "the name, term, sign, symbol, design or a combination of these that differentiate the product of one seller or group of sellers from the other sellers"? Brand Package Label Style Question No: 10 ( Marks: 1 ) - Please choose one After concept testing, a firm would engage in which stage for developing and marketing a new product? Marketing strategy development Business analysis Product development Test marketing Question No: 11 ( Marks: 1 ) - Please choose one Which one of the following sets reflects the marketing strategy statement in new product development? Idea generation; idea screening; concept development Idea generation; concept development; concept testing Target market description; planned product positioning; sales goals Idea generation; test marketing; commercialization Question No: 12 ( Marks: 1 ) - Please choose one

26 Customer relationship management (CRM) focuses on creating two-way exchanges with customers so that firms have an intimate knowledge of their needs, wants and buying patterns. What does CRM deliver to customers for maintaining profitable customer relationships? Superior customer value Less expensive goods Quality products Variety of products Question No: 13 ( Marks: 1 ) - Please choose one Fast-food restaurants offer tasty and convenient food at affordable prices; they contribute to fatness that harms consumer health. Which one of the following concepts is NOT being followed by this company? Product concept Production concept Societal marketing concept Marketing concept Question No: 14 ( Marks: 1 ) - Please choose one Which one of the following steps is NOT a part of marketing process? Analyzing marketing opportunities Selecting target market Designing the business portfolio Develop marketing mix Question No: 15 ( Marks: 1 ) - Please choose one Which one of the following is a chief goal of the implementation function in marketing process? Develops marketing plans Turns plans into actions Takes corrective actions Develops strategic plans

27 Question No: 16 ( Marks: 1 ) - Please choose one Marketing Information System consists of people, equipment, and procedures to gather, sort,, evaluate, and distribute information to marketing decision makers. Analyze Arrange Test Control Question No: 17 ( Marks: 1 ) - Please choose one In recent times there have been huge advancements in information technology. This era is known as: An old economy Transformation A new world The digital age Question No: 18 ( Marks: 1 ) - Please choose one When competition is intense and there are many manufacturers then the buyer has more options of product switching. This is represented in Porters model as: Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Rivalry among competing firms Question No: 19 ( Marks: 1 ) - Please choose one Which of the following is NOT a step in the strategic planning process? Defining the company mission Planning marketing and other functional strategies Setting company objectives and goals Setting pricing policies

28 Question No: 20 ( Marks: 1 ) - Please choose one What is the purpose of strategic planning? Using strengths to achieve goals To develop new products To identify competitors To find methods of counting cash cows Question No: 21 ( Marks: 1 ) - Please choose one Which of the following is NOT a content of the marketing plan? Budget Production Objective Control Question No: 22 ( Marks: 1 ) - Please choose one Which of the following is NOT a part of the marketing control process? Measure performance Evaluating performance Taking corrective actions Setting objective for the business Question No: 23 ( Marks: 1 ) - Please choose one A marketing department organization where sales and marketing people are assigned to specific countries, regions, or districts is called: Functional Organization Geographic Organization Product Management Organization Customer Management Organization Question No: 24 ( Marks: 1 ) - Please choose one The disadvantage of observational research is: Information cannot be gained by observing relevant people Feelings, attitudes and motives cannot be observed

29 It cannot be used to obtain information that people are unwilling or unable to provide All of the given options Question No: 25 ( Marks: 1 ) - Please choose one Which of the following is the disadvantages of survey research? Survey research is not flexible The respondents can give inaccurate answers It is difficult to collecting primary data with survey research All of the given options Question No: 26 ( Marks: 1 ) - Please choose one In a reference group, people who have special skills, knowledge, personality, or other characteristics, and exert influence on others are called: Opinion leaders Habitual buyers Charismatic personalities Wild ducks Question No: 27 ( Marks: 1 ) - Please choose one The consumer buyer decision process begins with: Need recognition Information search Evaluation of alternative Purchase decision Question No: 28 ( Marks: 1 ) - Please choose one Mr. X is interested in buying a carpet. Although the carpet is costly but there is very little perceived difference between the brands. This is an example of: Complex Buying Behavior Variety Seeking Buying Behavior Dissonance Reducing Buying Behavior

30 Habitual Buying Behavior Question No: 29 ( Marks: 1 ) - Please choose one The bases of segmentation for business markets include. Demographic Situational factors Personal characteristics All of the given options Question No: 30 ( Marks: 1 ) - Please choose one What does a company's market position influence? Focus Company s marketing strategy Loyalty None of the given option Question No: 31 ( Marks: 1 ) - Please choose one Ahmed bought a used car from a used car retailer. A used car is an example of: Convenience Products Shopping Products Specialty Products Unsought Products Question No: 32 ( Marks: 1 ) - Please choose one Which of the following options refers to New Products? Product modifications Product improvements New brands that a firm develops All of the given options Question No: 33 ( Marks: 1 ) - Please choose one

31 Toyota is developing an electric car, powered by solar energy. They are currently working on several alternatives of the car and need to find out which version of the car prospective customers find most appealing. This is an example of the stage of the product development process. Idea generation India screening Concept development All of the given options Question No: 34 ( Marks: 1 ) - Please choose one Which of the following is a shortest product life cycle? Fad Fashion Style None of the given options Question No: 35 ( Marks: 3 ) A well known company introduced a new product in the market; unfortunately the product was a complete failure. Highlight the reasons why new product sometimes fails to earn revenue. Reasons of Failure of New Product: There are several reasons of failure of new products in the market. Some of them are listed below: 1- Over Estimated Market Size: The market size may have been overestimated. 2- Actual Product not designed: Perhaps the actual product was not designed as well as it should have been. 3- Incorrectly Positioned:

32 One of the reason for failure could be that maybe it was incorrectly positioned in the market. 4- Highly- Priced: One of the main reason of the failure could be that the product is priced too high. So, that not all the customer can afford the price. 5- Poorly Advertised: No doubt if the product is of really value for money, but because of the reason that poor or no attention was paid to its advertisement, because of this, the product failed in the marketing. 6- Poor Market Research: A high-level executive might push a favorite idea despite poor marketing research findings. 7- High Cost of Product Development: The one of the reason of failure could be Sometimes the costs of product development are higher than expected. 8- Competitors: One of the reason of failure is because of vast and strong market Competition. Sometimes competitors fight back harder than expected. Question No: 36 ( Marks: 5 ) Market research is important for marketers it enables to answer certain question in the mind of a marketer, what type of questions can be answered through market research? ANSWER: The information collected must be accurate, so the design of a questionnaire is of great importance. It should consist of questions

33 that have the same meaning, a single meaning and the intended meaning to everyone. Questions should be numbered and have instructions to the investigator concerning the conduct of the interview in bold face, capital letters and underlined. Answer codes should be as near to the right-hand side as possible, and lines drawn at suitable intervals can bring clarity to the design. The types of questions most commonly used are as follows. 1. Open-ended questions give the informant a hint of what answer might be expected. A question which begins What do you think of...? will bring forth large amounts of data which cannot always be satisfactorily summarised, but this type of question is useful in the pilot stage to show the range of likely answers. 2. Unaided recall questions do not mention the nature of the answer material and avoid asking leading questions; e.g. How did you travel to the station to catch this train? 3. Dichotomous questions offer two choices of answer, usually yes and no. 4. Multiple-choice questions ( cafeteria questions) offer a graduated range of possible answers, listed in order from one extreme to the other.

34 5. Thermometer questions ask informants to rate their feelings on a numerical scale, e.g This type of question seeks to minimise the disadvantage of discrete classification in the multi-choice type question. 6. Checklists are a standard way of prompting the memory of a respondent without being biased by the interviewer. However, brand leaders may be selected more frequently because of the weight of advertising. T Y P E S O F Q U E S T I O N S T O B E A S K E D : 1. Use simple words that are familiar to everyone (i.e. shop not outlet, shopkeeper not retailer). 2. Keep questions short. 3. Avoid asking double-barrelled questions (e.g. Have you a radio and/or television set? ). 4. Do not ask leading questions (e.g. Do you buy instant coffee because it is the quickest way to make coffee? ). 5. Do not mention brand names (e.g. Do you consider Sony to be the best audio equipment? ).

35 6. Do not ask questions that may offend (e.g. Do you work or are you a housewife? ). 7. Avoid using catch phrases or colloquialisms. 8. Avoid words that are not precise in their meanings (e.g. Does this product last a reasonable length of time? ). 9. Remember that direct questions will not always elicit the expected response - perhaps not all possible answers have been foreseen (e.g. the question Are you married? does not cover the possibilities of divorce, separation, etc.) 10. Questions concerning prestige goods may not be answered truthfully. Careful rewording can avoid this (e.g. Have you a television capable of receiving teletext transmissions? might be better asked by How many hours per week do you watch television?, followed by: Do you watch teletext transmissions? ). 11. Only questions that the respondent can answer from knowledge or experience should be asked. 12. Questions should not depend on the respondent s memory.

36 13. Questions should only allow one thought to be created in the respondent s mind to avoid confusion and inappropriate answers. This particularly applies to questions beginning with Why...? 14. Avoid questions or words with an emotional bias. The first questions asked should gain the interest of the informant, and should be easy to answer in a factual way. More difficult questions should come later, with those of greatest importance being about a third of the way through. Transition from question to question should be smooth and logical. Details of the respondent, if they are needed (age, address, name, occupation etc.) should appear at the end. The questionnaire must have a title and contain cross-references to others if needed, along with the interviewing district identification, the place and date of the interview and the interviewer s name. Question No: 37 ( Marks: 5 ) Industrial products are those purchased for further processing or for use in conducting a business. These products have been categorized into three groups. What do you know about these groups of industrial products? Answer: Industrial products are those purchased for further processing or for use in conducting a business. Thus, the distinction between a consumer product and an industrial product is based on the purpose for which the product is bought. If a consumer buys a lawn mower for use around home, the lawn mower is a consumer product. If the same consumer buys the same

37 lawn mower for use in a landscaping business, the lawn mower is an industrial product. The (3)three groups of industrial products and services include: 1- materials and parts 2- capital items. 3- supplies and services. Now we will discuss these three in details: 1- Materials and parts: It include raw materials and manufactured materials andparts. Raw materials consist of farm products (wheat, cotton, livestock, fruits, vegetables) and natural products (fish, lumber, crude petroleum, iron ore). Manufactured materials and parts consist of component materials (iron, yarn, cement, wires) and component parts (small motors, tires, castings). Most manufactured materials and parts are sold directly to industrial users. Price and service are the major marketing factors; branding and advertising tend to be less important. The demand for industrial products is derived from the demand for consumer products. This is known as "derived demand." 2- Capital items: These are the are industrial products that aid in the buyer's production or operations, including installations and accessory equipment. Installations consist of major purchases such as buildings (factories, offices) and fixed equipment (generators, drill presses, large computer systems, elevators). Accessory equipment includes portable factory equipment and tools (hand tools, lift trucks) and

38 office equipment (fax machines, desks). They have a shorter life than installations and simply aid in the production process. 3- supplies and services: It s the final group of business products. Supplies include operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms). Supplies are the convenience products of the industrial field because they are usually purchased with a minimum of effort or comparison. Business services include maintenance and repair services (window cleaning, computer repair) and business advisory services (legal, management consulting, advertising). Such services are usually supplied under contract. MIDTERM EXAMINATION Question No: 1 ( Marks: 1 ) - Please choose one If the company s sales are slow down, and profits level off or decline. At which stage the company has reached? Introduction Decline Growth Maturity Question No: 2 ( Marks: 1 ) - Please choose one A period of rapid market acceptance and increasing profits refers to which of the following stages of the product life cycle?

39 Decline Maturity Introduction Growth Question No: 3 ( Marks: 1 ) - Please choose one In which of the following product life cycle stages, sales are zero and the company s investment costs mount? Product development Introduction Growth Maturity Question No: 4 ( Marks: 1 ) - Please choose one Which one of the following groups is skeptical and adopts innovations only after most of the market has accepted the product? Innovators Late majority Early Adopter Early Majority Question No: 5 ( Marks: 1 ) - Please choose one A review of the sales, costs and profit projections for a new product to find out whether they satisfy the company s objectives refers to which one of the following concepts?

40 Business feasibility Feasibility study Business analysis Product acceptance Question No: 6 ( Marks: 1 ) - Please choose one After concept testing, a firm would engage in which stage for developing and marketing a new product? Marketing strategy development Business analysis Product development Test marketing Question No: 7 ( Marks: 1 ) - Please choose one Which one of the following categories refers to a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same type of outlets, or fall within given price ranges? Product line Line extension Private brand Product bandwidth Question No: 8 ( Marks: 1 ) - Please choose one Marketers need to position their brands clearly in target customers minds. The strongest brands go beyond attributes or benefit

41 positioning. On which of the following basis the products are positioned? Desirable benefit Good packaging Strong beliefs and values Customer image Question No: 9 ( Marks: 1 ) - Please choose one Which one of the following attribute may grab attention and produce pleasing aesthetics, but it does not necessarily make the product perform better? Design Style Variable Packaging Question No: 10 ( Marks: 1 ) - Please choose one You have an upset stomach. Your spouse rushes to the corner convenience store for a medicine. This product falls under which of the following categories? Unsought Convenience Shopping Specialty Question No: 11 ( Marks: 1 ) - Please choose one

42 Product planners need to think about products and services on three levels. Each level adds more customer value. Which one of the following is the most basic level that addresses the question, What is the buyer really buying? Actual product Augmented product Core benefit Co-branding Question No: 12 ( Marks: 1 ) - Please choose one Mass marketers, such as Target and Venture Stores, ignore market segment differences and target the whole market with one offer. What is their approach to segmenting? Undifferentiated marketing Differentiated marketing Target marketing Intelligent marketing Question No: 13 ( Marks: 1 ) - Please choose one A marketer has brought same products in the market for all segments without considering the needs and wants of the customers. Which one of the following strategy is being practiced by the marketer? Undifferentiated marketing strategy Differentiated marketing strategy Concentrated marketing strategy Custom marketing strategy

43 Question No: 14 ( Marks: 1 ) - Please choose one Demographic segmentation divides the market into groups based on which of the following variables? Size, location, industry, customer Size, company, industry, technology Location, size, occupation, race Customer, technology, company, industry Question No: 15 ( Marks: 1 ) - Please choose one Income segmentation is used to target which of the following groups? Affluent Middle class Lower income class All of the given options Question No: 16 ( Marks: 1 ) - Please choose one When a company identifies the parts of the market it can serve best and most profitably. Which one of the following factor is in the practice of a company? Concentrated marketing Mass marketing Targeted marketing Market segmentation Question No: 17 ( Marks: 1 ) - Please choose one

44 Which of the following demands that business markets have more? Derived demands Steady demands Fluctuating Competitive Question No: 18 ( Marks: 1 ) - Please choose one The mental act, condition or habit of placing trust or confidence in another shows which of the following options? Motive Belief Behavior Attitude Question No: 19 ( Marks: 1 ) - Please choose one People are expected to perform activities according to the persons around them. These activities reflect which one of the following concept? Motive Role Lifestyle Tradition Question No: 20 ( Marks: 1 ) - Please choose one

45 How do consumers respond to various marketing efforts the company might use? What is a starting point of a buyer s behavior? Belief Subculture Post purchase feeling Stimulus-response Model Question No: 21 ( Marks: 1 ) - Please choose one A person on the University Book Shop's survey asks respondents to tell the shop, in their own words, what they like least about textbook shopping. What is a type of this question? An open-ended A dichotomous A multiple choice A scale Question No: 22 ( Marks: 1 ) - Please choose one General Motors need to assess the company's image relative to a new competitor. The time schedule is flexible, the research budget is very limited and a low response rate will not be a major problem. Which one of the following survey would be used by General Motors? Mail Telephone Personal interview Population

46 Question No: 23 ( Marks: 1 ) - Please choose one If Proctor and Gamble need to know what percentage of customers examines product labels before making a product selection in the supermarket? By which method this study would be accomplished? Focus groups Mail surveys Personal interviews Observations Question No: 24 ( Marks: 1 ) - Please choose one The objective of which of the following research is to gather preliminary information that will help define the problem and suggest hypotheses? Descriptive Exploratory Causal Corrective Question No: 25 ( Marks: 1 ) - Please choose one Harvard University is using the systematic design, collection, analysis, and reporting of data relevant to marketing its programs to minority students. What do we call this? Promotion Self-study Marketing research Cost-benefit analysis

47 Question No: 26 ( Marks: 1 ) - Please choose one Marketing information from which of the following databases can be accessed more quickly and cheaply? External Internal & External Internal Representatives Question No: 27 ( Marks: 1 ) - Please choose one The marketing information system is not limited to use by the company. It may also provide information to which of the following? The government External partners Various publics Competitors Question No: 28 ( Marks: 1 ) - Please choose one Beliefs and values that are passed on from parents to children and are reinforced by schools, churches, business and government refer to which of the following beliefs and values? Crucial Core Secondary Primary