MIDTERM EXAMINATION

Spring 2009
MKT501- Marketing Management (Session - 3)

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Question No: 1 ( Marks: 1 ) - Please choose one

Which of the following is NOT a purpose of a marketing plan?

• It assists in management control

• It assigns responsibilities, tasks and timing

• It co-ordinates marketing and production activities

• It specifies how resources are to be allocated

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Question No: 2 ( Marks: 1 ) - Please choose one

What is the duration of a short-range marketing plan?

• One year or less

• Two years or less

• Three years or less

• Four years or less

Question No: 3 ( Marks: 1 ) - Please choose one

Which of the following is NOT included in the financial summary of a marketing

plan?

• Pro-forma income statement

• Month-by-month agenda page 16

• Breakeven analysis

• Assumptions
7. Financial Summary
Assumptions, pro-forma monthly income statement, contribution margin
analysis, breakeven analysis. This information must be very formally done at
this stage

Question No: 4 ( Marks: 1 ) - Please choose one

Assumptions, pro-forma income statement, contribution margin analysis,

breakeven analysis, ratios analysis must be very formally done in:

• Executive summary

• Financial summary page 16

• Promotional plan

• Business plan

Question No: 5 ( Marks: 1 ) - Please choose one

In which of the stage of product life cycle there are few competitors?

• Introduction

• Growth

• Maturity

• Decline

Question No: 6 ( Marks: 1 ) - Please choose one

Which of the following step involves determining the Compatibility of product

idea with company objectives, needs, and resources on a general level?

• Business analysis

• Idea generation

• Idea screening

• Product development
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Question No: 7 ( Marks: 1 ) - Please choose one

How many stages are there in the new product development process?

• Nine

• Eight

• Six

• Seven page 28

Question No: 8 ( Marks: 1 ) - Please choose one

With what groups do firms conduct concept testing for new products?

• Competitors

• Focus groups

• Target customers

• Employees

REF:

http://www.google.com.pk/#hl=en&biw=800&bih=381&q=With+what+groups+do+firms+conduct+c
oncept+testing+for+new+products%3F+++Competitors+++Focus+groups+++Target+customers++
+Employees+&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=d3930372925886c8

http://mnav.com/contest.htm

Question No: 9 ( Marks: 1 ) - Please choose one

All of the following are the sources of idea for new product development
EXCEPT:

• Government agencies page 28

• Competitors

• Suppliers

• Customers

Question No: 10 ( Marks: 1 ) - Please choose one

Identify the commercialization decision which includes decisions regarding
locality, region, nationally or even internationally launching the product.

• Why to launch the product?

• How to launch the product?

• Where to launch the product? Page 30

• When to launch the product?

Question No: 11 ( Marks: 1 ) - Please choose one

Suppose a company is dealing in seasonal product and is currently engaged in

the new product development after passing through all stages of this process the
company is at commercialization stage. Which of the following
commercialization decision is most critical for the company?

• Why to launch the product?

• How to launch the product?

• Where to launch the product?

• When to launch the product? Page 30

Question No: 12 ( Marks: 1 ) - Please choose one

Which of the following commercialization decision involve decisions regarding

launch of product in single or multiple locality?

• How to launch the product?

• Where to launch the product? Page 30

• When to launch the product?

• Why to launch the product?

Question No: 13 ( Marks: 1 ) - Please choose one

Which of the following is NOT one of the stages that customers go through in the
process of adopting a new product?

• Desire page 32

• Awareness

• Evaluation

• Interest

FIVE SUCH STAGES HAVE BEEN OBSERVED

• AWARENESS: this stage is when a consumer hears about an innovation, but
lacks information
about it
• INTEREST: the consumer is stimulated to seek information about the
innovation
• EVALUATION: this is when the consumer decides whether to use the
product or not
• TRIAL: the consumer tries the product to estimate the value of innovation
• ADOPTION: this is when the consumer adopts to use the product on regular
basis and use
the innovation

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Question No: 14 ( Marks: 1 ) - Please choose one

Especially for which type of products the marketers should view packaging as a
major strategic tool?

• Convenience products

• Consumer shopping products

• Industrial products

• Specialty products

Question No: 15 ( Marks: 1 ) - Please choose one

Which of the following is NOT a function of labeling?

• It contains information

• It shows a word of caution

• It shows the ingredients of product

• It protects the product

Question No: 16 ( Marks: 1 ) - Please choose one

Packaging used for the ice creams is an example of which of the following?

• Decorative packaging

• Transport packaging

• Secondary packaging

• Primary packaging
Question No: 17 ( Marks: 1 ) - Please choose one

A brand targeted to a high price elasticity market segment is called:

• Premium brand

• Economy brand page 36

• Fighting brand

• Costly brand

An Economy brand is a brand targeted to a high price elasticity market

segment.

Question No: 18 ( Marks: 1 ) - Please choose one

Which of the following marketing mix element generates revenue?

• Promotion

• Price

• Place

• Product

Question No: 19 ( Marks: 1 ) - Please choose one

According to "Research supporting odd pricing theory" which of the following

number out of all the numbers between 1 and 100 is thought to have least
perceived value as compared to its actual value?

• 90

• 77 page 40

• 55

• 25

Question No: 20 ( Marks: 1 ) - Please choose one

Which of the following is also called as prestige price?

• Skimming price

• Penetration price
 • Psychological price

• Premium price page 39

Premium Pricing (also called prestige pricing) is the strategy of pricing at, or
near, the high end of the
possible price range.

Question No: 21 ( Marks: 1 ) - Please choose one

Mr. A, marketer of XYZ Co. is selling his ice-cream in the market at Rs.20, 20%
more than his competitors' price. Still his sales are increasing. Now his aim is to
maintain same pricing. He enjoys which type of leadership?

• Promotion leadership

• Price leadership

• Cost leadership

• Product leadership
REF
Situation in which a market leader sets the price of a product or service, and competitors
feel compelled to match that price.
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Question No: 22 ( Marks: 1 ) - Please choose one

Some times companies reduce price for bulk purchases. To which of the
following would this statement hold TRUE?

• Seasonal discounts

• Trade discounts

• Quantity discounts page44

• Cash discounts

Question No: 23 ( Marks: 1 ) - Please choose one

Which of the following is price reduction offered when an order is placed in

Slack/drooping period?
 • Cash discount

• Trade discount

• Quantity discount

• Seasonal discount page 44

Question No: 24 ( Marks: 1 ) - Please choose one

A company wants prompt payment from the customers. What type of discount
will be suitable for the company?

• Seasonal discount

• Trade discount

• Quantity discount

• Cash discount page 43

1) Cash discounts for prompt payment - These are intended to speed

payment and thereby provide
liquidity to the firm. They are sometimes used as a promotional device.

Question No: 25 ( Marks: 1 ) - Please choose one

A seller wants payment from buyer within 10 days of sales (whereas customer
can made payment within 30 days) and offers 4% discount if payment is made
within 10 days. What type of cash discount will be suitable?

• 4/10 net 30 page 43

• 10/4 net 30

• 10/30 net 4

• 4/30 net 10

Question No: 26 ( Marks: 1 ) - Please choose one

Which of the following is the effect of low price?

• Reduction in market share

• Reduction in production

• Increase in profit margin

 • Reduction in profit margin

Question No: 27 ( Marks: 1 ) - Please choose one

A penetration-pricing policy is particularly appropriate when demand is:

• Decreasing

• Highly inelastic

• Highly elastic page 45

• Less elastic

REF

Price Penetration is most appropriate when:

• Product demand is highly price elastic.
• Substantial economies of scale are available.
• The product is suitable for a mass market (sufficient demand).
• The product will face stiff competition soon after introduction

Question No: 28 ( Marks: 1 ) - Please choose one

Which of the following 4Ps of marketing mix involves in decisions regarding

channels coverage, assortments, locations, inventories or transports?

• Product

• Price

• Place page 03

• Promotion

Right Place
a. Channel
b. Coverage / Reach
c. Location
d. Inventory
e. Transport
f. Assortments

Question No: 29 ( Marks: 1 ) - Please choose one

The basic human requirement defines which of the following?

• Need page 04

• Demand
 • Want

• Satisfaction

NEED
Needs can be described as human requirements

Question No: 30 ( Marks: 1 ) - Please choose one

Which of the following firms emphasizes on product's benefits to the customers

rather product attributes?

• Product oriented

• Market oriented

• Sales oriented

• Production oriented
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Question No: 31 ( Marks: 1 ) - Please choose one

Which of the following is NOT a technique used by marketers to understand the

customers?

• Focus group

• Commercialization

• Web and telephones

• Surveys

Question No: 32 ( Marks: 1 ) - Please choose one

Identify which one is an ancillary service.

• Delivery page 06

• Promotion

• Labeling
 • Packaging

The offering of ancillary services like credit availability, delivery, installation,

and warranty
Question No: 33 ( Marks: 1 ) - Please choose one

Which of the following concepts is used when a company wants to expand the
market?

• Production concept

• Product concept page 08

• Selling concept

• Marketing concept

Question No: 35 ( Marks: 1 ) - Please choose one

Retailers are the part of:

• Broad environment

• Weak environment

• Task environment

• Competitive environment
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Question No: 36 ( Marks: 1 ) - Please choose one

Marketing starts with which of the following 4Ps?

Product

Price

Place

Promotion

Question No: 37 ( Marks: 1 ) - Please choose one

Identify the major components of the microenvironment.

Company, suppliers, , customer markets, political forces, competitors and

intermediaries

Company, suppliers, intermediaries,technological forces , competitors and

customer markets

Company, suppliers, intermediaries, customer markets, competitors, and

social forces

Company, suppliers, intermediaries, customer markets, competitors, and

Publics

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Question No: 38 ( Marks: 1 ) - Please choose one

Which of the following is NOT an option available for market leaders?

Reduce the product quality page 19

Improve customer service

Protect the existing market share

Expand the total market

Question No: 39 ( Marks: 1 ) - Please choose one

The companies who adopt focus strategy are called:

Market challenger

Market nicher page 20

Market leader

Market follower

REF:
In this niche strategy the firm concentrates on a select few target markets. It
is also called a focus strategy
Question No: 40 ( Marks: 1 ) - Please choose one

Which one of the following is the strategy that focuses on efficiency?

Target market strategy

Market segmentation strategy

Differentiation strategy

Cost leadership strategy page 20

Question No: 41 ( Marks: 5 )

Define horizontal integration and explain the possible advantages of horizontal integration.

Question No: 42 ( Marks: 5 )

Packaging can increase the sales of product and it can harm the sales. Explain
with examples.