FINALTERM EXAMINATION

Fall 2009

MGT301- Principles of Marketing (Session - 4)

(Shared by Usman Tariq)

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Time: 120 min

M - 92

Question No: 1 ( M - 1 ) .

In a Michael Porter Model, which one of the following options is a major tool in the identification of ways to create value in an organization?

Chain model

The BCG model

Five forces model

Value chain model

Question No: 2 ( M - 1 ) .

Relationship marketing is a consistent application of up to date knowledge of individual customers to product and service design. Why it is communicated interactively to customers?

For delivering short term value & satisfaction to customers

For delivering long term value & satisfaction to customers

For delivering short term value to management

For delivering long term value to management

Question No: 3 ( M - 1 ) .

Which one of the following statements by a company chairman BEST reflects the marketing concept?

We have organized our business to satisfy the customer needs

► We believe that marketing department must organize to sell what we produce

► We try to produce only high quality, technically efficient products

► We try to encourage company growth in the market

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Question No: 4 ( M - 1 ) .

Which one of the following phrases reflects the marketing concept?

► The supplier is a king in the market

► Marketing should be viewed as hunting not gardening

This is what I make, won’t you please buy it?

This is what I want, won’t you please make it?

Question No: 5 ( M - 1 ) .

Which one of the following concepts is a useful philosophy in a situation when the product’s cost is too high and marketers look for ways to bring it down?

► Selling concept

► Product concept

Production concept

► Marketing concept

Question No: 6 ( M - 1 ) .

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: 7 ( M - 1 ) .

The strategic marketing process is how an organization allocates its marketing mix resources to reach its:

► Stated business idea

Target market

► Competition

► Area of expertise

Question No: 8 ( M - 1 ) .

Which one of the following is NOT a trend in the natural environment?

► The increased cost of energy

► A shortage of raw material

Government intervention

Changing consumer spending pattern

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Question No: 9 ( M - 1 ) .

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: 10 ( M - 1 ) .

Which of the following is NOT a primary motivation?

► Achievement

► Self-esteem

► Self-expression

Attitude

Question No: 11 ( M - 1 ) .

With concentrated marketing, the marketer goes after a _____ share of _____.

► Small; a small market

► Small; a large market

Large; one or a few niches

► Large; the mass market

Question No: 12 ( M - 1 ) .

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: 13 ( M - 1 ) .

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

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Question No: 14 ( M - 1 ) .

Marketers need to position their brands clearly in target customers’ minds. They can position brands at any of three levels. At the lowest level, they can position the brand on which of the following basis?

► Interactive marketing

► Internal marketing

Product attributes

► Added service

Question No: 15 ( M - 1 ) .

When a company introduces additional items in a given product category under the same brand name, such as new flavors, forms, colors, ingredients, or package sizes refers to which of the following steps?

Line extensions

► Product mix

► Service variability

► Service intangibility

Question No: 16 ( M - 1 ) .

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: 17 ( M - 1 ) .

Price is a key element in the marketing mix because it relates directly to:

► The size of the sales force

► The speed of an exchange

► The control of quality

The generation of total revenue

Question No: 18 ( M - 1 ) .

When there is intense price competition, many companies adopt ______rather than cutting prices to match competitors.

► Pricing power

Value-added strategies

► Fixed costs

► Price elasticity

Question No: 19 ( M - 1 ) .

If Pepsi sets the price of its six packs to match exactly the price of Coca-Cola's, Pepsi is using which of the following pricing method?

► Demand-oriented

► Cost-oriented

► Experience curve

Competition-oriented

Question No: 20 ( M - 1 ) .

ABC Company, the sportswear designer and manufacturer, decided to open its own specialty shops to sell its merchandise, the firm was engaging in which of the following channels?

Vertical channel integration

► A conventional marketing channel

► Horizontal channel integration

► Channel expansion

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Question No: 21 ( M - 1 ) .

What is the goal of integrated supply chain management?

► Minimize distribution cost

► Increase services with minimal cost

► Harmonize all of the company’s logistics decisions

Reduce conflict among channel members

Question No: 22 ( M - 1 ) .

Communication process has different elements that are helpful for communicating message to audience. One of the communication tools is the decoding. Which one of the following statements refers to the “Decoding”?

► Intensity of the transmission becomes stronger

Receiver attempts to convert signs into concepts and ideas

► Source attempts to convert signs into concepts and ideas

► Receiver filters noise from the feedback

Question No: 23 ( M - 1 ) .

The process of putting one's thoughts (meaning) into signs (symbols) reflects which one of the following concepts?

► Decoding

► Noise

► Interference

Encoding

Question No: 24 ( M - 1 ) .

Through vehicle the coded message is transmitted from the source to the receiver.Which one of the following vehicle is used for this purpose?

► Decoder

► Encoder

► Relay channel

Media

Question No: 25 ( M - 1 ) .

Which of the following advertising becomes more important to build selective demand as competition increases?

Persuasive advertising

► Informative advertising

► Patronage advertising

► Reminder-oriented advertising

Question No: 26 ( M - 1 ) .

Which of the following communication and promotion tools involve direct connections with customers aimed toward building customer-unique value and lasting relationships?

Personal selling and direct marketing

► Public relation and publicity

► E-commerce and e-business

► Advertising and sales promotion

Question No: 27 ( M - 1 ) .

When a firm sets out to analyze, plan, implement, and control sales force activities through sales force management. What does it set and design?

► Sales territories

Sales force strategies

► Team selling efforts

► Promotional objectives

Question No: 28 ( M - 1 ) .

To reduce time demands on their outside sales forces, many companies have increased the size of their inside sales forces, which include technical support people and sales assistants. Which one of the following can also be another part of the sales force?

► Order takers

► Order getters

Telemarketers

► Secretaries

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Question No: 29 ( M - 1 ) .

Which one of the following is the major benefit of using event sponsorship?

► Provides large amounts of free media coverage

► Enhances personal selling efforts

► Neutralizes the effects of unfavorable public relations

Provides an excellent back-drop for advertisements

Question No: 30 ( M - 1 ) .

Which of the following is NOT a component of an integrated direct marketing campaign?

 

Outbound telemarketing

Corporate hospitality

Face to face sales call

Paid ad with response channel

Question No: 31 ( M - 1 ) .

Lobbying or building and maintaining relations with legislators and government officials to influence legislation and regulation are part of which one of the following options?

► Business ethics

Press relations

Press agencies

Public relations

Question No: 32 ( M - 1 ) .

Which one of the following promotion tools includes press releases and special events?

Sales promotion

Personal selling

Direct marketing

Public relations

Question No: 33 ( M - 1 ) .

The retailer is usually in an excellent position to:

Make the most profits in the channel

Become the channel leader

Gain feedback from consumers

Co-ordinate the production strategy

Question No: 34 ( M - 1 ) .

Which one of the following is designated as a runner-up firm that chooses not to rock the boat (usually out of fear that it stands to lose more than it might gain)?

► Market leader

► Market challenger

Market follower

► Market niche

Question No: 35 ( M - 1 ) .

Which one of the following is NOT a part of competitive analysis?

► Identifying competitors

► Assessing competitors

Selecting competitors to attack and avoid

► Situation analysis

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Question No: 36 ( M - 1 ) .

Which of the following option is NOT related with environmental sustainability strategies?

Pollution prevention

Product stewardship

Production of non environment friendly products

New environmental technologies

Question No: 37 ( M - 1 ) .

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: 38 ( M - 1 ) .

Buying goods and services for further processing or for use in the production process refers to which of the following markets?

Consumer markets

Government markets

Business markets

International markets

Question No: 39 ( M - 1 ) .

To attract customers into stores, ABC Company advertises its milk at less than cost, hoping that customers will purchase other groceries as well. It reflects which one of the following pricing strategy?

Special-event pricing

Experience-curve pricing

Superficial discounting

Price-leader pricing

Question No: 40 ( M - 1 ) .

Business markets can be segmented on the basis of all of the following variables EXCEPT:

Personal characteristics

Operating variables

Selling approaches

Situational factors

Question No: 41 ( M - 1 ) .

Which of the following is NOT an example of persuasive advertising?

Building brand preference

Explaining how the product works

Persuading customers to receive a sales call

Encouraging the customer to purchase now

Question No: 42 ( M - 1 ) .

All of the following are examples of items with elastic demand EXCEPT:

Wheat

Car

Computer

Gold jewelry

Question No: 43 ( M - 1 ) .

Nestle Foods ran an ad promoting its new Nestlé’s fruit juice cocktail 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. In terms of the communication process, the ad itself is:

A channel of communication

A receiver

Feedback

The message

Question No: 44 ( M - 1 ) .

Which method of setting a promotion budget is based on the fallacy that sales cause promotion?

Objective and task budgeting

All-you can-afford budgeting

Competitive parity budgeting

Percentage of sales budgeting

Question No: 45 ( M - 1 ) .

A company lunches a beverage. The objective of the firm is to reach masses of buyers that were geographically dispersed at a low cost per exposure. Which of the following promotion forms is best suitable for the company?

Advertising

Personal selling

Public relations

Sales promotion

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Question No: 46 ( M - 1 ) .

Which of the following option is correct when a manufacturer can not hold on message that he wants to convey to audience?

Personal selling

Sales promotion

Advertising

Publicity

Question No: 47 ( M - 1 ) .

Which of the following is the basic purpose of personal selling?

Indirect written communication between buyers and sellers

It is an inexpensive mode to convey message to buyers

Not usually combined with other aspects of promotion in the total marketing mix

Gets immediate feedback from consumers

Question No: 48 ( M - 1 ) .

The four major promotional tools (advertising, personal selling, sales promotion, and public relations) are known as the:

Communication model

Advertising campaign

Promotional mix

Marketing mix

Question No: 49 ( M - 1 ) .

To increase the market share a company organizes Point of Purchase (POP) Displays. It is an example of:

Trade promotion

Consumer promotion

Sales promotion

Brand promotion

Question No: 50 ( M - 1 ) .

Which one of the following is departs from advertising?

Personal selling

Public relation

Billboards

Transit Advertising

Question No: 51 ( M - 1 ) .

Proctor and Gamble periodically sends out coupons and free samples of products. This illustrates P & G's use of which one of the following elements of the promotion mix?

Advertising

Personal selling

Sales promotion

Publicity

Question No: 52 ( M - 1 ) .

Competitions, free samples and rebates are examples of which of the following?

Advertising

Sales promotion techniques

Publicity

Personal selling techniques

Question No: 53 ( 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: 54 ( M - 1 ) .

Which of the following is NOT one of the functions of wholesalers?

Financing

Production

Risk bearing

Transportation

Question No: 55 ( M - 1 ) .

The challenges faced by market leader include all of the following EXCEPT:

Protecting market share

Indirect attack

Expanding market share

Expanding the total market

Question No: 56 ( M - 1 ) .

Which of the following is one of the challenges faced by market leader?

Indirect attack

Expanding market share

Dividing the total market

Increasing sales force

Question No: 57 ( M - 1 ) .

Which of the following is included in the competitive positions?

Market positional

Market controller

Market challenger

Market observer

Question No: 58 ( M - 1 ) .

Which of the following is not the disadvantage of competitor-centered company?

The company becomes too reactive

A fighter orientation

Strategy is built on what others do

Lessens innovation

Question No: 59 ( M - 1 ) .

Global firms face all of the following problems while entering into the international market EXCEPT:

Variable exchange rates

Stable governments

Protectionist tariffs and trade barriers

Corruption

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Question No: 60 ( M - 1 ) .

With reference to E-Marketing, which one of the following can be used to add customer value?

Technology

Virtual business

Market positioning

Brand awareness

Question No: 61 ( M - 1 ) .

Companies can reduce their need of inventory stocks by using which of the following?

Inventory system

Internet marketing

Virtual business

Logistic system

Question No: 62 ( M - 1 ) .

Which of the following principle of enlightened marketing holds that a company should put most of its resources into value-building marketing investments?

Value marketing

Innovative marketing

Consumer-oriented marketing

Societal marketing

Question No: 63 ( M - 1 ) .

If your competitor has cut the price of its product and it is affecting the sale of your product and profit margin of your company, then you might decide to take some action. Which of the following action will your company take in this situation?

Reduce price

With draw your product

Close your business

Hold the same price

Question No: 64 ( M - 1 ) .

If your competitor has cut the price of its product and it is affecting the sale of your product and profit margin of your company, then you might decide to take some action. Which of the following action will your company take in this situation?

Close your business

Raise perceived quality

With draw your product

Hold the same price

Question No: 65 ( M - 3 )

In case of using a pull strategy, marketing efforts are directed at the ultimate consumer and consumer promotions. Enlist those points in which pull strategy is appropriate?

Answer

· Pull strategy is the promotional strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand; if successful, consumer will ask their retailers for the product, the retailer will ask the wholesalers and wholesalers will ask the producers.

 

· Consumer goods companies usually use pull strategy more, putting more of their funds into advertising, followed by sales promotion, personal selling, and then public relations

 

· Most stores today cluster together to increase their customer pulling power and to give consumers the convenience of one-stop shopping. A shopping center is a group of retail businesses planned, developed, owned, and managed as a unit

Question No: 66 ( M - 5 )

In your opinion, why store atmosphere is important for customer’s convenience?

Answer

· Every store has a physical layout that makes moving around in it either hard or easy.

· Each store has a feel, one store is cluttered, another charming, a third plush, a fourth uncheerful and gloomy.

· The store must have a planned atmosphere that suits the target market and moves customers to buy.

· Atmospheres are designed environments that create or reinforce the customer's leanings toward buying a product.

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Question No: 67 ( M - 10 )

What are the major marketing logistic functions that have a major impact on both customer satisfaction and company cost?

Answer

The Major Marketing logistic functions are:

· Order Processing

 

Orders can be submitted in many ways…by mail or telephone, through salespeople, or via computer and EDI. In some cases, the suppliers might actually generate orders for their customers:

 

Once received, orders must be processed quickly and accurately. Both the company and its customers benefit when order processing is carried out efficiently. Most companies now use computerized order-processing systems that speed up the order–shipping–billing cycle. For example, General Electric operates a computer-based system that, on receipt of a customer's order, checks the customer's credit standing as well as whether and where the items are in stock. The computer then issues an order to ship, bills the customer, updates the inventory records, sends a production order for new stock, and relays the message back to the salesperson that the customer's order is on its way—all in less than 15 seconds.

 

 

· Warehousing

 

Every company must store its goods while they wait to be sold. A company must decide on how many and what types of warehouses it needs and where they will be located. The company might use either storage warehouses or distribution centers. Storage warehouses store goods for moderate to long periods. They are large and highly automated warehouses designed to receive goods from various plants and suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible. Older, multistoried warehouses with outdated materials-handling methods are facing competition from newer, single-storied automated warehouses with advanced materials-handling systems under the control of a central computer. In these warehouses, only a few employees are necessary.

 

These warehouses have reduced worker injuries, labor costs, theft, and breakage and have improved inventory control.

 

 

· Inventory

 

The major problem is to maintain the delicate balance between carrying too much inventory and carrying too little. Carrying too much inventory results in higher than necessary inventory carrying costs. Carrying too little may result in stock outs, costly emergency shipments or production, and customer dissatisfaction. In making inventory decisions, management must balance the costs of carrying larger inventories against resulting sales and profits.

 

 

 

 

· Transportation

 

Marketers need to take an interest in their company's transportation decisions. The choice of transportation carriers affects the pricing of products, delivery performance, and condition of the goods when they arrive—all of which will affect customer satisfaction. In shipping goods to its warehouses, dealers, and customers, the company can choose among five transportation modes: rail, truck, water, pipeline, and air.

Question No: 68 ( M - 10 )

Consumerism is considered to be a very important ethical issue of this century as business firms are target of organized consumer movements. Elaborate the main points included in traditional seller’s rights and traditional buyer’s rights in this aspect.

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Answer

Consumerism is that business firms have been the target of organized consumer movements.

 

Traditional sellers’ rights are:

 

  • Right to introduce any product in any size and style, provided it is not hazardous to personal health or safety; or, if it is, to include proper warnings and controls.
  • Right to charge any price for the product provided no discrimination exists among similar kinds of buyers.
  • Right to spend any amount to promote the product, provided it is not defined as unfair competition.
  • Right to use any product message, provided it is not misleading or dishonest in content or execution.
  • Right to use buying incentive schemes, provided they are not unfair or misleading. http://groups.google.com/group/vuZs

 

 

Traditional buyers’ rights are:

 

  • Right not to buy a product that is offered for sale.
  • Right to expect the product to be safe.
  • Right to expect the product to perform as claimed.
  • Right to be well informed about important aspects of the product.
  • Right to be protected against questionable products and marketing practices.
  • Right to influence products and marketing practices in ways that will improve the “quality of life.”