FINALTERM  EXAMINATION

Fall 2009

MGT301- Principles of Marketing (Session - 4)

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Time: 120 min

M - 92

Question No: 1    ( M - 1 )    .

Which one of the following option is NOT a benefit for buyer with E-commerce?

► Convenience

Easy and private

Reliability

Greater product access

Question No: 2    ( M - 1 )    .

Which one of the following is NOT a part of Joint Venture?

► Single member private limited company

► Contract manufacturing

► Joint ownership

► Licensing

Question No: 3    ( M - 1 )    .

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: 4    ( 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: 5    ( M - 1 )    .

Making more sales to current customers without changing a firm’s products refers to which of the following strategies?

► Market development

► Market growth

► Market penetration

► Product development

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Question No: 6    ( M - 1 )    .

Marketing information from which of the following databases can be accessed more quickly and cheaply?

External

Internal & External

Internal

Representatives

Question No: 7    ( M - 1 )    .

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: 8    ( M - 1 )    .

A firm has decided to localize its products and services to meet local market demands. Which one of the following approache is a good approach for this segmentation?

► Geographic

► Demographic

► Psychographics

► Behavioral

Question No: 9    ( M - 1 )    .

“A firm decides to target several market segments or niches and designs separate offers for each” Which one of the following strategies BEST describe it?

► Undifferentiated marketing strategy

► Differentiated marketing strategy

► Concentrated marketing strategy

► Custom marketing strategy

Question No: 10    ( 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: 11    ( M - 1 )    .

New product development starts with which one of the following steps of new product development?

► Idea screening

► Idea generation

► Test marketing

► Concept testing

Question No: 12    ( M - 1 )    .

What do we call a detailed version of a new idea stated in meaningful customer terms?

► Product idea

► Product concept

► Product image

► Product proposal

Question No: 13    ( 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: 14    ( M - 1 )    .

Which one of the following pricing objectives is rarely operational because its achievement is difficult to measure?

► Return on investment

► Profit maximization

► Market share

► Survival

Question No: 15    ( M - 1 )    .

The Shirt Company utilizes a push strategy to sell the shirt line. Its basic promotional tool is discount. These discounts offered to middlemen are referred to as which one of the following discounts?

► Trade

► Cumulative

► Noncumulative

► Cash

Question No: 16    ( M - 1 )    .

Companies manage their supply chains through which of the following?

► Skilled operators

► Information

► The internet

► Competitors

Question No: 17    ( M - 1 )    .

Which of the following statements is considered to be a DISADVANTAGE of using industrial distributors?

► Industrial distributors possess considerable technical and market information.

► The traditional marketing exchange relationship is heavily focused.

► They are less likely to handle bulky items or items that are slow sellers.

► Industrial distributors sell specific brands aggressively.

Question No: 18    ( M - 1 )    .

The channel that includes both a manufacturers' agent and an industrial distributor may be appropriate under which of the following circumstances?

► When the firm wants specialized personnel to follow up the work of the sales force

► When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

► When only one or two channels of distribution are available for products

► When the sales force is large and the marketer is thinking of cutting it down

Question No: 19    ( M - 1 )    .

The channel member that markets all of a manufacturer's output, has complete authority over price, promotion, and distribution, but does not take title to the product refers to which one of the following?

► Limited-line wholesaler

► Selling agent

► Commission merchant

► Manufacturers' agent

Question No: 20    ( M - 1 )    .

A manufacturer-owned operation that provides services usually associated with agents, refers to which one of the following?

► Wholesaler

► Sales office

► Sales branch

► Public warehouse

Question No: 21    ( M - 1 )    .

Location is extremely important to a retailer due to which one of the following reasons?

► Suppliers charge more to service stores in certain trading areas.

► A desirable location appeals to consumers' emotions and encourages them to buy.

► Location is the major determinant of store image.

► Location determines the trading area from which the store must draw its customers.

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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 )    .

When the aim of the promotion, while introducing a new consumer product, is to achieve high awareness levels, the firm will most likely make heavy use of which one of the following promotional mix?

► Advertising

► Sales promotion

► Personal selling

► Publicity

Question No: 24    ( M - 1 )    .

Slow feedback, high costs and difficulty in measuring effects on sales are disadvantages of which one of the following promotion mix ingredient?

► Public relations

► Sales promotion

► Personal selling

► Advertising

Question No: 25    ( M - 1 )    .

Communication through a news story regarding an organization or its products that is transmitted through a mass medium at no charge, refers to which one of the following promotion mix?

► Advertising

► Sales promotion

► Personal selling

► Public relations

Question No: 26    ( M - 1 )    .

If you are attempting to create primary demand toward your product, you will use which type of the following ads?

► Informative

► Persuasive

► Reminder

► Cooperative

Question No: 27    ( M - 1 )    .

Sales promotion includes a wide assortment of tools. Which one of the following is NOT one of these tools?

► Contests

► Premiums

► Telephone surveys

► Coupons

Question No: 28    ( M - 1 )    .

Mr. Nabeel works for a cosmetics manufacturer and is responsible for ensuring that resellers have adequate quantities of products when and where they need them. Mr. Nabeel is also devoting much of his time towards helping retailers promotes these products. Mr. Nabeel is performing the role of which one of the following salesperson?

► A technical salesperson

► An advisory salesperson

► A promotional salesperson

► A trade salesperson

Question No: 29    ( M - 1 )    .

Personal selling can be defined as which of the following communication?

People communication

Direct communication

Interpersonal communication

Local communication

Question No: 30    ( M - 1 )    .

"Looking for new customers" refers to which one of the following concept?

Soliciting

Presenting

Prospecting

Qualifying

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Question No: 31    ( M - 1 )    .

The various stages of the personal selling process are illustrated below, which one of the following is NOT specific roles of the sales representative?

Negotiating and closing the sale

Sales presentation

Prospecting

Devising product strategy

Question No: 32    ( 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

Question No: 33    ( M - 1 )    .

In which one of the following plans management takes decisions about potential customers, sales activities and future prospects during the next 12 months?

Profit-sharing plan

Trade promotion plan

Annual call plan

Sales quota plan

Question No: 34    ( M - 1 )    .

The standards set for salespeople, stating the quantity they should sell and how sales should be divided among the company’s products refers to which one of the following options?

Sales goals

Company quotas

Sales quotas

Sales incentives

Question No: 35    ( 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: 36    ( M - 1 )    .

“Demand for a product exceeds the supply” reflects which one of the marketing philosophies?

The Product Concept

The Selling Concept

The Production Concept

The Marketing Concept

Question No: 37    ( M - 1 )    .

Lobbying, Investor relations and Development are the major functions of which one of the following?

Sales promotion

Personal selling

Direct marketing

Public relations

Question No: 38    ( M - 1 )    .

E-marketing refers to which one of the following?

Email marketing

Electronic marketing

Electric marketing

Elastic marketing

Question No: 39    ( M - 1 )    .

Which of the following option is NOT related with traditional buyer’s rights?

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 ask money back even not offered by the seller

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Question No: 40    ( M - 1 )    .

McDonald's run advertisement featuring children, senior citizens and minority groups. What does this ad show?

Company is product oriented

Company considers only environmental factors

Company has several target markets

Company is market oriented

Question No: 41    ( M - 1 )    .

First National Bank launches an innovative in-home banking system tied to personal computers. The product is not widely accepted because bank customers don't see the need for such a service. Which one of the following is the best discretion of product failure?

Establishment of a customer information system

Organization structure

Technological advancement

Scanning corporate capabilities

Question No: 42    ( M - 1 )    .

Which one of the following options represents the collection of businesses and products that make up a company?

Strategic business unit

Mission statement

Strategic plan

Business portfolio

Question No: 43    ( M - 1 )    .

One of the contents of formal marketing plan that includes a market description, a product review, a review of competition and a review of distribution is called:

Threats and opportunity analysis

Objectives and issues

Marketing strategy

Current marketing situation

Question No: 44    ( M - 1 )    .

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: 45    ( M - 1 )    .

Which one of the following steps in the marketing research process deals in "defining the problems and research objectives, implementing the research plan, and interpreting and reporting the findings"?

Developing the research budget

Choosing the research agency

Choosing the research method

Developing the research plan

Question No: 46    ( M - 1 )    .

What does it show “Increasing demand, as well as changing or even reducing demand”?

► Marketing management

► Marketing myopia

► Demarketing

Relationship management

Question No: 47    ( M - 1 )    .

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: 48    ( M - 1 )    .

Environmental groups are one kind of which of the following publics?

Citizen-action publics

Media publics

Government publics

Local publics

Question No: 49    ( M - 1 )    .

Mr. Ali, a sales person from Philips, develops a list of potential customers and evaluates them on the basis of their ability, willingness, and authority to purchase copy machines. What is the name of this process?

Customer search

Sales preparation

Audience identification

Prospecting

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Question No: 50    ( 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: 51    ( M - 1 )    .

The selection of appropriate media is based upon all of the following factors EXCEPT:

Media habits of target consumers

The type of message

Nature of the product

Demand of the product

Question No: 52    ( M - 1 )    .

Fixed cost is also known as which of the following?

Sunk cost

Variable cost

Overhead cost

Advertising cost

Question No: 53    ( M - 1 )    .

“Outfitters” has been selling quality belts at Rs.400 to Rs.500 which is roughly one tenth of their usual selling price. This is an example of:

Dumping

Loss leader

Demand based pricing

Cost based pricing

Question No: 54    ( M - 1 )    .

Which of the following direct marketing medium leads in terms of expenditures, sales and employment?

Direct mail and catalogs

Telephone

Television

Advertising

Question No: 55    ( M - 1 )    .

Which of the following is the most significant advantage of publicity as a promotional tool?

Publicity reaches a large number of customers

Publicity is free

Publicity generates goodwill

Publicity has strong emotional appeal

Question No: 56    ( M - 1 )    .

Which one of the following represents below the line media?

TV

Radio

Cinema

Direct mail

Question No: 57    ( M - 1 )    .

As a result of which strategy consumer will ask their retailers for the product, the retailer will ask the wholesalers and wholesalers will ask the producers?

Push strategy

Pull strategy

Production strategy

Operational strategy

Question No: 58    ( M - 1 )    .

Which of the following vertical marketing system combines successive stages of production and distribution under single ownership?

Contractual VMS

Corporate VMS

Administered VMS

Franchise organization

Question No: 59    ( M - 1 )    .

Which store sells standard merchandise at lower prices by accepting lower margins and selling higher volume?

Specialty stores

Discount store

Supermarkets

Convenience stores

Question No: 60    ( M - 1 )    .

Which of the basic competitive strategy creates competitive advantage by offering products with unique customer benefits or features not available from competitive offerings?

Cost-leadership

Differentiation

Focus

Product intimacy

Question No: 61    ( M - 1 )    .

Which of the following is an organization with 125-member that succeeds GATT in overseeing trade agreements, mediating disputes, and reducing trade barriers?

World Trade Organization

North American Free-Trade Agreement

Association of Southeast Asian Nations

► Regional Free Trade Zone

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Question No: 62    ( M - 1 )    .

Rs.3.00 is rounded to Rs.3.00 while Rs.2.99 is rounded to Rs.2.00 "plus change” relates to which of the following?

Odd-Even Pricing

Special-Event Pricing

Cash Rebate

Segmented Pricing

Question No: 63    ( M - 1 )    .

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: 64    ( M - 1 )    .

All of the following critics come under the marketing’s impact on society as a whole EXCEPT:

Too much political power

Producing too few social goods

Cultural pollution

Deceptive pricing

Question No: 65    ( M - 3 )

What is meant by kiosk? Briefly discuss its purposes.

Question No: 66    ( M - 5 )

Which type of company may use the territorial sales force structure and product sales force structure?

Question No: 67    ( M - 10 )

While deciding on the advertising budget a marketer should have to consider some specific factors. List down any five factors which affect the budget decisions of marketer.

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Question No: 68    ( M - 10 )

Nestle is holding the market leader position in the food / beverage industry. State one of the competitors of Nestle. What strategies Nestle would be implementing/ using to maintain its top position?