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.”