FINALTERM  EXAMINATION
Spring 2010
MGT301- Principles of Marketing (Session - 2)
Shared and solved by NAVEED IQBAL                                                                                                                             Rechecked and referenced By vuZs Team
Time: 90 min
M - 69
    
Question No: 1    ( M - 1 )    .
 Inelastic demand in industrial markets refers to which of the following situation?
       ► Demand for a given product fluctuates very little over time.
       ► Price increases or decreases will not significantly alter demand for a given product.
       ► The demand for one product depends heavily on the demand for another product.
       ► Supply for a given product cannot keep up with the demand for it.

   
Question No: 2    ( M - 1 )    .
 Most organizational purchase decisions are made by which of the following categories?
       ► The sales force
       ► A team of purchasing agents
       ► A firm's buying centre
       ► Inventory control personnel
   
Question No: 3    ( M - 1 )    .
 This type of segmentation centers on the use of the word “when” such as when consumers get the idea to buy, when they actually make their purchase, or when they use the purchased item. What do marketers call this?
       ► Behavioral
       ► Occasion
       ► Impulse
       ► Emergency
   
Question No: 4    ( M - 1 )    .
 If a product has an inelastic demand and the manufacturer raises its price then what will happen?
       ► Total revenue will increase
       ► Quantity demanded will increase
       ► The demand schedule will shift
       ► Total revenue will decrease
   
Question No: 5    ( M - 1 )    .
 Which one of the following is the requirement for setting pricing objectives?
       ► The objectives should be short-term oriented
       ► There should be only one pricing objective
       ► The cost structure should be identified
       ► The objectives should be explicitly stated
Question No: 6    ( M - 1 )    .
 ABC Company uses captive-product pricing for its phone call charges. Because this is a service, the price is broken into a fixed rate plus a _____.
       ► Fixed rate usage
       ► Variable usage rate
       ► Flexible usage rate
       ► Volume usage rate
   
Question No: 7    ( M - 1 )    .
 If producer offered a 25 percent discount to retailers that ordered ski boots in February for delivery in May, the retailer would have the option of taking advantage of which type of discount?
       ► Trade
       ► Cash
       ► Quantity
       ► Seasonal
   
Question No: 8    ( M - 1 )    .
 Quantity discounts are a legal form of price discrimination. A quantity discount is a price reduction to buyers who purchase _____.
       ► Frequently
       ► Inferior merchandise
       ► Superior merchandise
       ► Large volumes
   
Question No: 9    ( M - 1 )    .
 Eliminating a wholesaler from a marketing channel results in which of the following?
       ► Will cut costs and lead to lower prices in the market
       ► May or may not lower prices and will not eliminate the functions performed by the wholesaler
       ► Will eliminate the functions performed by the wholesaler and will lower costs
       ► Will reduce channel conflict among the channel members
   
Question No: 10    ( M - 1 )    .
 When encoding the message, the source should use signs (words and symbols). What must be in these signs?
       ► New and exciting meanings
       ► Different meanings to different people
       ► Meanings understandable by the target market
       ► Broad interpretations of signs
Question No: 11    ( M - 1 )    .
 What does it reflect “The receiver's response to a message”?
       ► Feedback
       ► Media
       ► Noise
       ► Decoding
   
Question No: 12    ( M - 1 )    .
 Short-term incentives to encourage the purchase or sale of a product or service refer to which one of the following promotional tool?
       ► Direct marketing
       ► Sales promotions
       ► Personal selling
       ► Public relations
   
Question No: 13    ( M - 1 )    .
 The principles of personal selling described as which one of the following orientation?
       ► Service orientation
       ► Customer orientation
       ► Transaction orientation
       ► Relationship orientation
  
Question No: 14    ( M - 1 )    .
 Management at Happy Motors must decide what mix of compensation elements to offer their sales force. Which of the following is NOT one of the four basic types of compensation plans?
       ► Straight commission
       ► Straight salary
       ► Salary and commission
       ► Commission and bonuses
Question No: 15    ( M - 1 )    .
 Companies are always looking for ways to increase selling time. All of the following are ways to save time to accomplish this goal EXCEPT:
       ► Reduce the number of customers
       ► Use phones instead of traveling
       ► Simplify record keeping
       ► Find better call and routing plans
Question No: 16    ( M - 1 )    .
 Which one of the following faces three challenges: expanding the total market, protecting market share and expanding market share?
       ► Market leader
       ► Market challenger
       ► Market follower
       ► Market niche
   
Question No: 17    ( M - 1 )    .
 Which one the following option is related with this statement “Innovator in technologies, products and markets with high global share and wide country market coverage”
       ► Global leader strategy
       ► Global challenger strategy
       ► Global follower strategy
       ► Global niche strategy
   
Question No: 18    ( M - 1 )    .
 Which of the following option is NOT related with “Key Principles for Public policy towards Marketing”?
       ► Consumer and producer freedom
       ► Curbing potential harm
       ► Economic recession
       ► Consumer education
   
Question No: 19    ( M - 1 )    .
 When a company cannot supply all its customers’ needs; what would be an effect on price?
       ► Price will increase
       ► Price will remain same
       ► Price will decrease
       ► Price will decrease up to a certain limit
   
Question No: 20    ( M - 1 )    .
 The difference between values that the customer gain from owning and using a product and the costs of obtaining the product refers to which of the following options? 
       ► Customer value
       ► Customer satisfaction
       ► Customer quality
       ► Total quality management
Question No: 21    ( M - 1 )    .
 Which one of the following forces is NOT the part of company’s macro environment?
       ► Demographic
       ► Economic
       ► Political
       ► Public
   
Question No: 22    ( M - 1 )    .
 Nestle Foods, ran an ad promoting its new Nestle fruit juice in Ladies' Home Journal magazine. The ad contained a coupon for $1.00 off the purchase price of two half-gallon containers of the drink. The advertising agency that created the Nestlé’s ad for the magazine:
       ► Was engaged in feedback barrier removal
       ► Was engaged in encoding the ad
       ► Was responsible for decoding the ad
       ► Acted as the communication channel
   
Question No: 23    ( M - 1 )    .
 Which of the following statements about sales promotion is TRUE?
       ► It is the only promotional element that is not regulated by a federal agency
       ► It is more effective than all the elements of marketing mix
       ► Sales promotions are offered to both intermediaries and ultimate consumers
       ► To be most effective, sales promotions should be conducted continuously
   
Question No: 24    ( M - 1 )    .
 A direct payment of cash and goods given to the retailer agreeing to setup the point of sale display is known as:
       ► Event marketing
       ► Trade promotion
       ► Brand reminder
       ► Sponsorships
   
Question No: 25    ( M - 1 )    .
 Communication through a news story regarding an organization and/or its products that is transmitted through a mass medium at no charge is known as:
       ► Advertising
       ► Sales promotion
       ► Personal selling
       ► Publicity
   
Question No: 26    ( M - 1 )    .
 Which promotional strategy is designed to build customer demand based on spending a lot on advertising and consumer promotion?
       ► Production strategy
       ► Pull strategy
       ► Operational strategy
       ► Push strategy
   
Question No: 27    ( M - 1 )    .
 Which of the following is NOTone of the levels of service offered by retailers?
       ► Self-service
       ► Operating service
       ► Full service
       ► Limited service
   
Question No: 28    ( M - 1 )    .
 Which of the following is NOT one of the functions of wholesalers?
       ► Financing
       ► Production
       ► Risk bearing
       ► Transportation
   
Question No: 29    ( M - 1 )    .
 Which of the following is one of the challenges faced by market leader?
       ► Expanding the total market
       ► Indirect attack
       ► Dividing the total market
       ► Increasing sales force
   
Question No: 30    ( M - 1 )    .
 Which of the following is an accord to remove trade barriers among Canada, Mexico, and the United States?
       ► North American Free-Trade Agreement (NAFTA)
       ► General Agreement on Tariffs and Trade (GATT)
       ► Regional Free Trade Zone
       ► World Trade Organization (WTO)
Answer: North American Free-Trade Agreement (NAFTA)
   
Question No: 31    ( M - 1 )    .
 Which of the following is true about North American Free-Trade Agreement (NAFTA)?
       ► An accord to remove trade barriers among Canada, Mexico and the United States
       ► An accord to remove transport barriers among Canada, Mexico and the United States
       ► An accord to remove transport barriers among Canada, Morocco, Chile and the United States
       ► An accord to remove trade barriers among Canada, Mexico, Brazil and the United States
Answer: An accord to remove trade barriers among Canada, Mexico and the United States
   
Question No: 32    ( M - 1 )    .
 Which of the following discounts encourage purchases earlier than demand?
       ► Quantity discount
       ► Cash discount
       ► Seasonal discount
       ► Trade discount
   
Question No: 33    ( M - 1 )    .
 Which of the following provide connection and interaction between the consumer and company?
       ► Virtual communities
       ► Business to consumer
       ► Business to business
       ► E-Marketing
Answer: Business to business
   
Question No: 34    ( M - 1 )    . vuzs
 All of the following are the primary criticisms leveled at the marketing function by consumers, consumer advocates and government agencies EXCEPT:
       ► Shoddy or unsafe products
       ► Planned obsolescence
       ► Poor service to disadvantaged consumers
       ► False wants and too much materialism
   
Question No: 35    ( M - 1 )    .
 Greedy intermediaries who mark up prices beyond the value of their services, comes under which of the following factors of harming consumers through high prices?
       ► High cost of distribution
       ► High advertising and promotion cost
       ► Excessive markup
       ► High pressure selling
   
Question No: 36    ( M - 1 )    .
 When a company cannot supply all its customers' needs, it can raise its prices; ration products to customers, or both. Here which of the following factors is contributing in price increase?
       ► Cost inflation
       ► Excess demand
       ► Low product quality
       ► None of the given options

   
Question No: 37    ( M - 1 )    .
A bar of chocolate costs Rs.50. If all the other factors are kept constant approximately what is the marking cost that has incurred in marketing this product.
       ► Rs.40
       ► Rs.30
       ► Rs.25
       ► Rs.15
Answer: Rs.30
   
Question No: 38    ( M - 1 )    .
 “Save the world” is an environment group that tries to decrease pollution emitted from factories. “Save the world” is considered as:
       ► Publics
       ► Customers
       ► Competitors
       ► Company
Answer: Publics
   
Question No: 39    ( M - 1 )    .
 Relationship marketing came into existence in which of the following era?
       ► Production Era
       ► Product Era
       ► Selling Era
       ► Marketing Era
Answer: Marketing Era
   
Question No: 40    ( M - 1 )    .
 Planning which is used to supervise the operations of the organization is called:
       ► Strategic Planning
       ► Tactical Planning
       ► Operational Planning
       ► Mission Planning
   
Question No: 41    ( M - 1 )    .
 Which of the following entities of a company has a separate mission and objectives  which can be planned independently from other company businesses.
       ► Business Portfolio
       ► Strategic Business Unit
       ► Product Line
       ► None of the given
   
Question No: 42    ( M - 1 )    .
 A marketing department organization where different marketing activities are headed by a functional specialist (such as a sales manager, advertising manager, etc.) is called:
       ► Functional Organization
       ► Geographic Organization
       ► Product Management Organization
       ► Customer Management Organization
  
Question No: 43    ( M - 1 )    .
 The consumer can obtain information from various different sources. Which is NOT one of these sources?
       ► Personal
       ► Commercial
       ► Attitude
       ► Public
Answer: Personal
   
Question No: 44    ( M - 1 )    .
 Products which require a considerable amount of search behavior are called:
       ► Specialty Products
       ► Shopping Products
       ► Convenience Products
       ► Unsought Products
Answer: Convenience Products
   
Question No: 45    ( M - 1 )    .
 The company develops the physical product in the ________stage.
       ► Idea generation
       ► Product development
       ► Test marketing
       ► Commercialization
Answer: Commercialization
   
Question No: 46    ( M - 1 )    .
 Which of the following is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time?
       ► Reach
       ► Frequency
       ► Impact
       ► Rate
   
Question No: 47    ( M - 1 )    .
 Sales Force Personnel must be ___________.
       ► Calculating
       ► Enthusiastic
       ► Angry Youngman
       ► None of the above
Answer: Enthusiastic
   
Question No: 48    ( M - 1 )    .
 There are _____ types of Sales Force Personnel.
       ► 2
       ► 3
       ► 4
       ► 5
   
Question No: 49    ( M - 3 )
 Identify and briefly explain different ways to enter in the international market?
   
Question No: 50    ( M - 3 )
 It is not an easy task to select any particular media type for the advertisement of any particular product. What factors that one has to consider while selecting any particular media type?
Question No: 51    ( M - 5 )
 Limited Wholesalers is a broader category of wholesalers in itself. Define this term and name the different types of it?
Question No: 52    ( M - 5 )
 What are the types of Sales Force Personnel? Define and differentiate.
Question No: 53    ( M - 5 )
 Global Marketing Environment is broad and complex term in itself. What are the subtypes of it?