Model Question Paper

Marketing Management (MD0103)

• Answer all 100 questions.
• Each question carries one mark.

1. Cutting timber and milling the trees into standard-size lumber is an example of
(a) Place utility
(b) Form utility
(c) Time utility
(d) Possession utility
(e) People utility.
2. Sonali recently changed employers within the same industry. At her old company, employees routinely
took home company pens, pencils, and note pads, and they frequently made personal long-distance calls on
company phones. Sonali observes that employees do not engage in such practices at her new company.
What Sonali sees could best be described as a difference in
(a) Corporate culture
(b) Profit objectives
(c) Political climate
(d) Legal climate
(e) Corporate goals.
3. If Videocon engineers its washing machines to spin the clothes faster regardless of whether or not
customers want that speed, then Videocon has characteristics associated with the
(a) Production concept
(b) Selling concept
(c) Marketing concept
(d) Product concept
(e) Societal marketing concept.
4. Harry Bennet was a strategic planner at World Products. Harry had a knack for identifying good
opportunities for World Products in Eastern Europe. Accordingly, Harry spent most of his time working
with the new Vice President of Eastern Europe for setting up facilities, equipment, communication
systems, etc., required for the establishment in Eastern Europe. In terms of the generic value chain, Harry
is involved in which type of activity?
(a) Developing infrastructure
(b) Technology development
(c) Service
(d) Marketing and sales
(e) Procurement.
5. Nike nurtures its core competencies in shoe design, marketing and shoe merchandising and has its
manufacturing based in Asian countries. This is an example of
(a) Customization
(b) Outsourcing
(c) Benchmarking
(d) Re-engineering
(e) Partnership marketing.
6. Yahoo enables users to design a My Yahoo section with a choice of topics, arrangements and colors. This
is an example of
(a) Benchmarking
(b) E-commerce
(c) Outsourcing
(d) Decentralization
(e) Customization.
7. Prakash Kumar is a computer wizard. While he could work almost anywhere as a production engineer,
Prakash enjoyed his work at Xenon where he went from department to department helping different
specialists create new software for their particular areas. In terms of the generic value chain, Prakash is
 involved in which of the following activities?
(a) Firm infrastructure
(b) Marketing and sales
(c) Operations
(d) Technology development
(e) Procurement.
8. “Friends don't let friends drive drunk” is an example of
(a) Niche marketing
(b) Social marketing
(c) Selling
(d) Advertising
(e) Sales promotion.
9. Which of the following is a process by which people select, organize and interpret information to form a
meaningful picture of the world?
(a) Perception
(b) Satisfaction
(c) Cognitive dissonance
(d) Beliefs and attitudes
(e) Motivation.
10. Which of the following deals with the number of channel levels from raw material to final product?

(a) Industry scope

(b) Geographical scope
(c) Vertical scope
(d) Competence scope
(e) Strategy scope.
11. Cinema Ltd. defines itself as being a company in the film making business rather than providing
entertainment. This is an example of
(a) Modern marketing
(b) Product positioning
(c) Pure competition
(d) Reactive marketing
(e) Marketing myopia.
12. When Varun attended his first statistics class, he realized he ought to buy a calculator or else he would be
unable to do his assignments. In which stage of the consumer purchase decision process was Varun when
he made this realization?
(a) Information search
(b) Problem recognition
(c) Purchase behavior
(d) Alternative evaluation
(e) Pre-purchase cognition.
13. Which of the following helps organizations assess the customers who are profitable and susbsidized?

(a) Ratio analysis

(b) Full costing
(c) Product costing
(d) Activity based costing
(e) Contribution margin analysis.
14. Sanjana buys L’Oreal products because Diana Hayden endorses the product and she wants to be like her.
In this case, the reference group which is affecting Sanjana’s buying behavior is
(a) Membership reference group
(b) Aspirational reference group
(c) Disclaimant reference group
(d) Avoidance group
(e) Secondary reference group.
15. Insurance products are examples of
(a) Convenience products
(b) Specialty products
(c) Unsought products
(d) Shopping products
(e) Industrial products.
16. When Julie gives her customer her card during a sale telling them to call if they have any questions later,
which of the following levels of relationship marketing Julie is practicing?
(a) The basic level
(b) The reactive level
(c) The accountable level
(d) The proactive level
(e) The partnership level.
17. A glue manufacturer sells a set of interlocked products such as glue applicators and glue dryers along with
glue. This is an example of
(a) System selling
(b) Major account management
(c) Interactive selling
(d) Wheel of retailing
(e) Collective selling.
18. In which of the following buying behaviors, customer involvement is high and there are significant
differences between brands?
(a) Routinized buying behavior
(b) Variety seeking behavior
(c) Extensive problem solving buying behavior
(d) Post purchase dissonance
(e) Post purchase satisfaction.
19. Which of the following statements is/are incorrect when explaining the customer value delivery system
(CVDS)
I. CVDS involves partnering with organizations that may be part of the supply chain.
II. A greater competitive environment ironically leads to greater cooperation between organizations.
III. An effective CVDS maintains quality and efficiency standards.
IV. In a CVDS goods are pushed by supply rather than pulled by demand.
(a) Only (I) above
(b) Only (IV) above
(c) Both (II) and (III) above
(d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
20. Searching beyond the company’s own value chain to identify how suppliers and distributors can help
improve performance is typical of the
(a) Total quality management approach
(b) Marketing intelligence systems
(c) Customer value delivery systems
(d) Profit impact of marketing strategies
(e) Structural ties.
21. Which of the following lists the hierarchy of needs in its correct order beginning with the most basic?
(a) Personal, social, physiological, psychological, and safety
(b) Physiological, safety, social, esteem, and self-actualization
(c) Safety, physiological, safety, and self-actualization, and esteem
(d) Self-actualization, social, esteem, safety, and physiological
(e) Safety, esteem, self-actualization, physiological, and social.
22. Which of the following is least likely to be associated with a firm’s macro-environment?
 (a) A new staff incentive scheme
(b) Analysis of household savings ratios
(c) Study of the changing birth rate
(d) Cultural convergence
(e) Advancement in technology.
23. The portion of the population that researchers need to target and that represents the entire population is
known as the
(a) Target
(b) Sampling unit
(c) Observation
(d) Questionnaires
(e) Respondent.
24. In examining her firm’s recently completed market attractiveness-business position model, Jenna Cook
finds that the firm’s sport sunglasses unit is high on relative market share and relative market growth rate
is high as well. Which one of the following strategies would this placement dictate?
(a) Invest in the unit
(b) Harvest the unit
(c) Divest the unit
(d) Maintain the unit
(e) Keep status quo.
25. Which of the following consists of a set of buyers who share common needs or characteristics that the
company decides to serve?
(a) Mass market
(b) Government market
(c) Target market
(d) Reseller market
(e) Heterogeneous market.
26. An advertisement for Xavier Beach, Goa, invites you to “renew your family’s bond on 24-miles of sugar-
white sand and sparkling green waters.” This advertisement is most directly trying to satisfy
(a) Physiological needs
(b) Safety needs
(c) Social needs
(d) Esteem needs
(e) Self actualization needs.
27. The major disadvantage of a mail survey versus a telephone or personal interview survey is

(a) Having to offer incentives

(b) The low response rate
(c) The elimination of interview bias
(d) The lack of open-ended questions
(e) The cost involved.
28. Which one of the following buying situations is most consistent with routine response behavior?

(a) Anil buying his first pair of basketball shoes

(b) Gita buying a new set of tyres for her car
(c) Sunil buying a new fishing rod and reel
(d) Sita buying a 10kg rice bag at Food World
(e) Manoj buying a new software program.
29. Which of the following designs of a research plan helps the management identify the presence of potential
opportunities and threats for the company, that is conducted with minimum expenditure of time and cost
during the initial stages of decision-making process?
(a) Descriptive research
(b) Casual research
(c) Exploratory research
(d) Market research
(e) Consumer research.
30. The consumer can obtain information from a variety of sources. Commercial sources include
(a) Articles in newspapers and journals
(b) Handling, examining, and using the product
(c) Advertising, salespeople, dealers, packaging and displays
(d) Family, friends, neighbors and acquaintances
(e) Consumer-rating organizations.
31. A research manager decides to have his telephone interviewers dial every tenth number in the telephone
directory. This is referred to as
(a) Convenience sample
(b) Probability sample
(c) Judgment sample
(d) Quota sample
(e) Snowball sample.
32. Focus on companies that prefer leasing to buying would be an influence of which factor of organizational
purchasing approaches to segment industrial markets?
(a) Purchasing function organization
(b) Power structure
(c) Nature of existing policies
(d) General purchase policies
(e) Company technology.
33. The Indian School of Business in trying to get more enrolments to their high profile MBA program targets
and markets the program to managers, persons heading big business houses and other accomplished
persons from various walks of life. They are addressing which need in Maslow’s hierarchy?
(a) Esteem
(b) Social
(c) Safety
(d) Self-Actualization
(e) Basic.
34. Customers exhibit various types of buying behavior based on the nature of purchase that is to be made.
Which of the following is/are true regarding variety seeking behavior?
I. Consumers show a great amount of brand differentiation when buying a low involvement product.
II. Consumers are not very brand conscious and often switch brands.
III. Consumers evaluate the product during consumption.
IV. Buyers shape attitudes based on beliefs developed about products.
(a) Only (I) above
(b) Both (I) and (II) above
(c) Both (III) and (IV) above
(d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
35. When the Gap branched out to offer clothing targeted to infants, children, and mothers-to-be, they were
segmenting the market based on
(a) Generation
(b) Gender
(c) Income
(d) Psychographics
(e) Age and life cycle.
36. A business buyer is faced with a purchasing decision in which information requirements, risk and product
cost are all high. Which of the following types of buying situations does the buyer likely to face?
(a) Straight rebuy
(b) Modified rebuy
(c) New task
(d) Uphill task
(e) Downhill task.
37. Wessex Motors needs to assess the company’s image relative to a new competitor. The time schedule is
flexible, the research budget is very limited and a low response rate will not be a major problem. Wessex
Motors will probably use a
(a) Mail Survey
(b) Telephone Survey
(c) Random Survey
(d) Personal interview Survey
(e) Population Survey.
38. Dividing markets by the degree of likelihood of repurchasing a brand would be an example of which type
of behavioral segmentation?
(a) Usage rate
(b) Loyalty status
(c) Benefits sought
(d) User status
(e) Occasion.
39. A practice unique to organizational sales in which two organizations agree to buy from each other is
(a) Just in time method
(b) A straight rebuy
(c) A modified rebuy
(d) A reciprocity arrangement
(e) Multiple sourcing.
40. Which system collects and processes information using computer software programs, advanced statistics
tools and other such techniques to obtain a scientific solution for marketing problems and also store and
retrieve data?
(a) Marketing intelligence system
(b) Marketing decision support system
(c) Managerial decision makers
(d) Ethical marketing research
(e) Marketing information system.
41. In its portfolio of business subsidiaries, Lepakshi’s craft shop has three units that are showing rapid growth
but have a low market share. Apparently, everything about these units demands more and more additional
cash. In the Boston Consulting Group’s portfolio matrix, these units would be classified as
(a) Dog
(b) Cash cows
(c) Question marks
(d) Stars
(e) Cats.
42. Gaining competitive advantage through speedy or careful delivery is an example of which type of
differentiation?
(a) Product
(b) Services
(c) Personnel
(d) Channel
(e) Image.
43. Among the various participants in organizational buying, which of the following are the individuals who
authorize the purchase process before it is actually implemented by the buyers in the organization?
(a) Initiators
(b) Influencers
(c) Approvers
(d) Deciders
(e) Gatekeepers.
44. If Levi Strauss company decides to enter the sportswear market, in which it currently has no presence, it
would be pursuing which growth strategy?
 (a) Market penetration
(b) Market development
(c) Product development
(d) Diversification
(e) Cost leadership.
45. Hero Honda buys tyres from other companies to fit their motorcycles. This is an example of

(a) Industrial dealer

(b) Reseller market
(c) Institutional market
(d) Government market
(e) Original equipment manufacturer.
46. Ordinance factory caters to the needs of the Indian defense services. It manufactures different types of
arms and ammunition for them. However, a downturn in the market due to the external market forces may
affect the performance of the company. The Ordinance factory has adopted which type of target market
selection process?
(a) Product specialization
(b) Market specialization
(c) Selective specialization
(d) Full market coverage
(e) Financial specialization.
47. Within the jewelry industry, Tanishq is India’s first premium branded jewelry manufacturer and retailer
and targets an investment-minded and price sensitive customer base. Thereby, Tanishq caters to a/an.
(a) Clustered market
(b) Mass market
(c) Niche market
(d) Demographic market
(e) Individual market.
48. Consult-Me Consultants, Inc., has been involved in several special meetings where issues such as business
mission, situation analysis, market and growth alternatives and implementation approaches have been
discussed. Consult-Me is apparently engaged in
(a) Value chain analysis
(b) Segmenting
(c) Strategic planning
(d) Business analysis
(e) Business process engineering.
49. Until Bill and Hillary saw a feature on local news about baby car seats, they thought all brands were alike.
Having seen the news broadcast, they were better informed to make the baby car seat purchase decision for
their soon-to-be-born son. What source did Bill and Hillary use to collect information for their purchase
decision?
(a) Public
(b) Commercial
(c) Personal
(d) Experiential
(e) Past purchase experience.
50. Focus on engineering-dominated or financially dominated companies in business markets is an influence
of which factor of organizational purchasing approaches to segment industrial markets?
(a) Nature of existing relationships
(b) Purchasing function
(c) General purchasing policies
(d) Power structure
(e) Company size.
51. Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Good bar, Krackel, Hershey’s
Kisses, New Trail, Reese’s Peanut Butter Cups, Rolo, Twizzlers, and Nibs in different assortments. This
example best illustrates Hershey’s product mix
(a) Width
 (b) Depth
(c) Length
(d) Volume
(e) Consistency.
52. The warning label on a pack of Bristol cigarettes is included most directly to

(a) Satisfy legal requirements

(b) Promote the product
(c) Encourage the proper use of the product
(d) Position the product as being socially responsible
(e) To provide information.
53. Data can be collected from two sources – primary and secondary. Mail interviews constitute one of the
methods of primary data collection. Which of the following statements are true regarding mail interviews?
I. Mail interviews involve a relatively low cost.
II. Respondents in a mail interview can remain anonymous.
III. Respondents can respond to the questionnaire at their own convenience.
IV. The response rate is high for mail interviews.
(a) Both (I) and (II) above
(b) Both (II) and (III) above
(c) (I), (II) and (III) above
(d) (II), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
54. Customers who use two or three brands are categorized as

(a) Soft-core loyal

(b) Split loyal
(c) Switchers
(d) Stretchers
(e) Hard-core loyal.
55. The Clorox Company manufactures and markets bleaches, bathroom cleaners, disinfecting wipes and stain
removers under the Clorox brand. This is an example of
(a) Umbrella branding
(b) Co-branding
(c) Family branding
(d) Sub-branding
(e) Branding duality.
56. Which of the following strategy is feasible when the market is aware of the product, the market size is
limited, competition is not intense and the customers are ready to pay a higher price for the product?
(a) Rapid skimming
(b) Rapid penetration
(c) Slow skimming
(d) Slow penetration
(e) Medium penetration.
57. A sales representative from a software company shows an accounting firm that a new software package
can perform bookkeeping tasks that the firm’s present package cannot. The accounting firm is most likely
in which stage of the organizational buying decision process?
(a) Problem recognition
(b) Product specification
(c) Product supplier search
(d) Product selection
(e) Product purchase.
58. In channel problem solving strategies, which of the following is the act of exchanging favors for mutual
gain?
(a) Cooperation
(b) Persuasive mechanism
(c) Negotiation
 (d) Logrolling
(e) Aggressive mechanism.
59. Anita, a buyer for Nestle, buys carpeting for use in an office area. What determines whether this carpeting
is a consumer or an industrial product?
(a) The price of the carpet
(b) The type of selling organization
(c) The terms of the sale
(d) The buyer’s intended use of the product
(e) Whether the carpet is a replacement item.
60. In which of the following product development stages do “Drop-error” and “Go-error” occur?

(a) Idea Screening

(b) Idea generation
(c) Market testing
(d) Concept testing
(e) Commercialization.
61. Customer service includes several aspects. Dell computers has made placing a requisition so simple that
customers who are not aware of new developments in the field can easily browse through various options
including the latest components to select as per their requirements. Also, the computer system will be
delivered at the place customers want with care. Which of the following is/are the aspect(s) of customer
service has Dell concentrated on?
I. Ordering ease.
II. Delivery.
III. Installation.
IV. Guarantees.
(a) Only (I) above
(b) Both (I) and (II) above
(c) (I), (II) and (III) above
(d) (I), (III) and (IV) above
(e) All (I), (II), (III) and (IV) above.
62. Estimating the costs of selling different volumes through each proposed channel is part of which decision
area used in evaluating the major channel alternatives?
(a) Promotional criteria
(b) Economic criteria
(c) Control criteria
(d) Adaptive criteria
(e) Social criteria.
63. The grains of Royal Brand basmati rice are extraordinarily long and replete with exquisite aroma and
flavor, which evoke the enigma of a taste one identifies with royal cuisine. This represents its brand
(a) Attributes
(b) Benefits
(c) Values
(d) User
(e) Personality.
64. The package design of a bag of flour would most likely be criticized for being
(a) Unsafe to the environment
(b) Unsafe to the user
(c) Deceptive
(d) Functionally deficient
(e) Well suited for multiple-unit packaging.
65. If Amstrad wants to focus its marketing efforts on price competition, the firm’s long-run success will
depend on having
I. Higher prices than its competitor.
II. Lower prices than it have historically charged.
III. Promotional campaign for lower prices.
 IV. A lower cost structure than its competitors.
(a) Only (II) above
(b) Only (IV) above
(c) Both (II) and (III) above
(d) Both (II) and (IV) above
(e) (I), (II) and (III) above.
66. Frito-Lay directs its promotional efforts towards intermediaries by providing huge discounts, recognition
and special rewards for achieving or exceeding targets. Which of the following strategies is Frito-Lay
using?
(a) Push strategy
(b) Direct marketing
(c) Positioning strategy
(d) Pull strategy
(e) Market skimming strategy.
67. Vauxhall Motors is producing a new sophisticated model of a van. Which one of the following would be a
likely variable for segmenting the market for this new model?
(a) Religion
(b) Geographic location
(c) Income
(d) Gender
(e) Values.
68. Noise is an important element of the process of communicating a promotional message. Which of the
following offers the best general definition of noise in this context?
(a) The effects of music drowning out the sales message in a radio advertisement
(b) Excessive graphic display in a press advertisement
(c) Excessive graphic display in a TV advertisement
(d) Interference which occurs between the message source and the receiver
(e) Excessive information provided in a TV advertisement.
69. Advertisers have a wide variety of advertising media to choose from. Which of the following is/are the
aspects to be considered for selecting the appropriate medium to advertise?
I. Identification of the target segment.
II. Targeting places where the potential buyers are located.
III. Timing of the advertising messages.
IV. Effectiveness of the advertisement.
(a) Only (III) above
(b) Both (I) and (II) above
(c) Both (II) and (III) above
(d) (I), (II) and (III) above
(e) All (I), (II), (III) and (IV) above.
70. The college recruiter who visits a high school campus to convince its leading scorer to play basketball for
his university is involved in which type of promotion?
(a) Online marketing
(b) Publicity
(c) Personal selling
(d) Public relations
(e) Sales Promotion.
71. A firm that bases its pricing on how it thinks major players in the market will price their products, rather
than on its own costs or demand for its products, is most likely adopting
(a) Going-rate pricing
(b) Target return pricing
(c) Perceived-value pricing
(d) Sealed-bid pricing
(e) Mark-up pricing.
72. A television advertisement for Miracle-Gro lawn fertilizer indicates that the product is available at Texas
Homecare. This form of sales promotion is called
(a) Cooperative advertising
(b) Dealer listing
(c) Push money
(d) Dealer loader
(e) Advertising allowance.
73. When Bata prices a particular range of shoes at Rs.599 instead of Rs.600, which of the following methods
of pricing does it follow?
(a) Target-return
(b) Perceived Value
(c) Going-rate
(d) Mark-up
(e) Psychological.
74. Reliance charges a fixed price for its mobile phone services that allow the subscriber a certain number of
calls based on the amount he pays. The number of calls he made beyond that limit are charged extra. This
is an example of
(a) Captive product pricing
(b) Two-part pricing
(c) Product bundling pricing
(d) Optional feature pricing
(e) Product line pricing.
75. Which of the following is not the best example of a people-based service?

(a) Health care

(b) Retail stores
(c) Appliance repair
(d) Vending machines
(e) Restaurants.
76. In marketing a new line of nursery furniture for infants and small children, the Fisher Company will most
likely use which of the following?
(a) Intensive Distribution
(b) Exclusive Distribution
(c) Horizontal Distribution
(d) Priority Distribution
(e) Selective Distribution.
77. A company in its communication message lays emphasis on the quality, performance and value of its
products. What is the communication objective of the company?
(a) Awareness
(b) Knowledge
(c) Liking
(d) Preference
(e) Conviction.
78. Hewlett Packard provides one-year free service from the date of purchase on printers to its customers. This
is an example of
(a) A highly tangible service
(b) A highly intangible service
(c) Service linked to tangible goods
(d) Tangible goods linked to service
(e) A perceived service.
79. Gillette has developed a reliable, intangible sense of product superiority through the punch line “The best a
man can get” by showing images of men at work and play. Which of the following features of brand is
reflected in this example
(a) Positioning
 (b) Associative
(c) Consistency
(d) Personality
(e) Awareness.
80. When a company puts most of its resources into programs that build long-term consumer loyalty by
enhancing the benefits consumers receive for their money, it is practicing
(a) Innovative marketing
(b) Consumer-oriented marketing
(c) Value marketing
(d) Sense-of-mission marketing
(e) Societal marketing.
81. As Kathy works on the prototype of a new action-orientated computer game module, she is engaging in
which phase of the new product development process?
(a) Idea screening
(b) Idea generation
(c) Business analysis
(d) Product development
(e) Commercialization.
82. In testing her firm’s new TV advertisements for Batman action figures, Beth discovers the advertisements
make children think that the action figures can actually fly. Beth now faces an ethical decision regarding
which event of the marketing mix?
(a) Product
(b) Price
(c) Distribution
(d) Promotion
(e) People.
83. Acme Ltd. has agreed to provide financial assistance to a local community festival so long as the company
name is prominently displayed at the event. Acme is engaging in
(a) Publicity
(b) Sponsorship
(c) Public relations
(d) Advertising
(e) Sales promotion.
84. A carton of orange juice has no brand name on the package. It has only the name of the product ‘orange
juice’. This is an example of
(a) A manufacturer’s brand
(b) A cult brand
(c) A national brand
(d) A generic brand
(e) A private brand.
85. When IBM and Apple Computer announced a joint operation to develop a new computer operating system,
it was an example of
(a) Corporate marketing system
(b) Administered marketing system
(c) Conglomerate marketing system
(d) Horizontal marketing system
(e) Contractual vertical marketing system.
86. Which of the following refers to the ease of location or the ease with which customers can acquire the
products?
(a) Lot size convenience
(b) Temporal convenience
(c) Selection convenience
(d) Reseller convenience
(e) Spatial convenience.
87. Bank One Texas Trust, one of the fastest growing trust banks in the US, gives a guarantee that any client
dissatisfied with its service need not pay the fee. The bank offers
(a) Sealed bid pricing
(b) Service guarantee
(c) Price bundling
(d) Differentiated pricing
(e) Value pricing.
88. Banking operations involve active participation of customers. Which category of service classification is
this?
(a) Possession processing
(b) Mental stimulus processing
(c) People processing
(d) Information processing
(e) Professional processing.
89. Neopure Corporation has developed artificial hemoglobin that can be used in place of blood transfusions
and holds the patent on this product. Therefore, Neopure has
(a) Potential external opportunities
(b) Core competencies
(c) Synergistic edge
(d) Market dominance
(e) Competitive advantage.
90. Charities, Art Foundations, Wildlife Funds are service organizations classified on the basis of
(a) Process
(b) Service tangibility
(c) Business orientation
(d) Expertise
(e) End-user.
91. A garment manufacturing company implemented a growth strategy by acquiring a cotton manufacturing
plant. This type of growth strategy is called
(a) Conglomerate diversification
(b) Horizontal integration
(c) Forward integration
(d) Backward integration
(e) Concentric diversification.
92. Which of the following are useful for serving as an early warning about service problems?
(a) Policy manuals
(b) Employee handbooks
(c) Complaint logs
(d) Strategic plans
(e) Operations manuals.
93. Turning marketing strategies into specific day-to-day, month-to-month activities is related to which of the
following?
(a) Marketing analysis
(b) Marketing planning
(c) Marketing implementation
(d) Marketing control
(e) Marketing audit.
94. The scope for differentiating products varies significantly. Even products such as cement, which are
standardized products, can be differentiated. For example Birla Cement differentiates itself by highlighting
the fact that red oxide is mixed in cement to protect iron rods from rusting. Birla cement differentiates
itself on the basis of
(a) Product design
(b) Product features
 (c) Size of package
(d) Product quality
(e) Product durability.
95. Limitation of which of the following is not a source of weakness for a business?

(a) Facilities
(b) Financial resources
(c) Brand image
(d) Marketing skills
(e) Culture.
96. The company that overlooks new and better ways to do things will eventually lose customers to another
company which has found a better way of serving customer needs is a major tenet of
(a) Innovative marketing
(b) Consumer-oriented marketing
(c) Value marketing
(d) Sense-of-mission marketing
(e) Person marketing.
97. Which of the following is/are true regarding product venture teams?

I. A venture team can be defined as a “group brought together from various departments and given the
charge of developing a specific product or business.”
II. They can be instrumental in organizing new-product development.
III. They work towards screening and generating new ideas, working in tandem with the R&D team.
(a) Only (II) above
(b) Only (III) above
(c) Both (I) and (II) above
(d) Both (I) and (III) above
(e) All (I), (II) and (III) above.
98. Inseparability of services necessarily implies

(a) Inability to own the service

(b) Intangibility of the service offering
(c) A high level of tangibility in the service offering
(d) Variable output
(e) A high level of consumer-producer interaction.
99. If the frozen foods division of Unilever purchases food trays and boxes from the organization’s packaging
division, the form of pricing used to charge the frozen foods division is called
(a) Zone pricing
(b) Base-point pricing
(c) Business-unit pricing
(d) Transfer pricing
(e) Price discrimination.
100.Ritz-Carlton hotel chain is famous for the level of high-quality service offered by the staff of the hotel
chain, which sets it apart. It targets the top five percent of corporate and leisure travelers. In terms of
Michael Porter’s generic business strategy, which of the following strategies is/are being used by Ritz-
Carlton?
I. Differentiation.
II. Focus.
III. Cost leadership.
(a) Only (I) above
(b) Only (II) above
(c) Only (III) above
(d) Both (I) and (II) above
(e) All (I), (II) and (III) above.

END OF QUESTION PAPER

 Suggested Answers
Marketing Management (MD0103)
Answer Reason
1. B Form utility is created when raw material is converted into a finished product.
2. A Organization or corporate culture refers to the values, norms, artifacts, assumptions,
practices etc. of an organization, its employees and their behavior
3. D The product concept holds that the consumers will favor those products that offer the
most quality, performance or innovative features. The drawback is that there is much
focus on the product design and features than on customer needs.
4. A Support activities assist primary activities by providing infrastructure that allows them
to take place on an ongoing basis. Support activities such as procurement, hiring the
personnel, R&D, infrastructure, accounting, and legal activities, etc., are handled by
various departments. Infrastructure includes general management, planning,
government, hiring the activities and quality management.
5. B Outsourcing offers cost saving, lower expenses and specialization of products and
services and helps the company become more competitive. All other options are
irrelevant.
6. E Customized products are tailor-made products meant to satisfy individual needs. Other
options are irrelevant.
7. D Support activities assist primary activities by providing infrastructure that allows them
to take place on an ongoing basis. Support activities such as procurement, hiring the
personnel, R&D, infrastructure i.e., general management, planning, government, hiring
the activities and quality management, accounting, and legal activities, etc., are
handled by various departments.
8. B Social marketing is where marketers include societal/social interests in their marketing
decisions.
9. A Perception is defined as the process by which people select, organize and interpret
information to form a meaningful picture of the world. Other options are irrelevant.
10. C Vertical scope of the firm deals with the number of channel levels from the raw
material stage to the final product. Industry scope indicates the range of industries that
the firm will operate in. Likewise, the geographical scope deals with the locations in
which the firms operate. Competence scope deals with the firm capability to operate in
an environment or business.
11. E Marketing myopia occurs when a market is excessively preoccupied with product
development, manufacturing or selling and ignores customer needs, wants and interest.
12. B Recognizing the need for a calculator while working on assignments is an example of
the problem recognition stage in the buying process.
13. D Activity based costing helps organization assess which customers are profitable and
which ones are subsidized.
14. C Aspirational group is one to which the individual is not a member but aspires to be in
that group.
15. C Unsought products are those that a customer purchases when faced with a sudden
problem and insurance is an unsought product. (a) Convenience products are those,
which are relatively inexpensive and are bought frequently. (b) Specialty products
are products that have one or more unique characteristic features and are not available
freely. (d) Shopping products are those for which a buyer is willing to spend time and
effort in planning and making purchase decisions. (e) Industrial products are those that
are used to produce other goods.
16. B The reactive level. Relationship marketing is building mutually satisfying long-term
relationships with customers. The aim of customer relationship management is to
produce high customer equity. There are five levels in customer relationship building
17. A A glue manufacturer selling a set of interlocked products such as glue applicators and
glue dryers along with glue is an example of systems selling. System selling is a
marketing tool that can take two different forms. One, a manufacturer may sell a set of
 interlocking products (which is likely to involve participation with original equipment
manufacturer or subcontractors). Two, the seller may sell a system of production,
inventory control, distribution, or other services to satisfy the buyer’s need for a
smooth running operation.
18. C Customers exhibit extensive problem solving buying behavior when they indulge in
buying expensive, infrequently purchased unfamiliar products. They gather a lot of
data on the various brands available.
19. B A firm establishes a partnership with the other members of its delivery network in
order to improve the performance of the value-delivery system and create a
competitive advantage over its rival firm. So, with the help of its value chain and
delivery networks, the firm offers the best possible assemblage of benefits to meet
customer expectations. Therefore in a CDVS goods are not pushed by supply but
pulled by demand.
20. C Customer value delivery system, A firm tries to influence the value chain of its
suppliers, distributors, etc., because if the value chain of suppliers and distributors is
optimized, its own cost structure will also become optimized.
21. B According to Maslow, needs can be classified as physiological needs, security needs,
social needs, esteem needs, and self-actualization needs.
22. A A new staff incentive scheme should be considered as part of the internal environment
and not the macro-environment of a firm. .
23. B The portion of the population that researchers need to target and that represents the
entire population is known as the sampling unit.
24. A The BCG growth-share matrix displays the position of business units comparing their
market growth rate against their market share relative to competitors. It contains four
cells – question marks, stars, cash cows and dogs. Stars are the business units, which
have a large market share in fast growing markets. The sunglasses unit is therefore a
star. As per the BCG matrix, firms need to invest in stars as the industry is still
emerging and market share is also growing.
25. C Target market is a customer base a marketer specifically identifies as his potential
market and has customers with similar needs or characteristics. (a) Mass marketing
involves mass production, mass distribution and mass promotion of products. (b)
Government market refers to the federal, state, local and foreign governments that buy
goods and services. (d) Resellers are marketers who do not purchase products for
converting them into finished products or for personal use, but for selling them to other
customers for a monetary gain. Wholesalers and retailers form a part of the resellers
market. (e) Heterogeneous market is where people or organizations have differing
characteristics.
26. C Social needs are also called belongingness needs or need for love. They involve the
desire to affiliate with and be accepted by others.
27. B One of the biggest problems in mail interviews is the low response rate. It is believed
that only 20 to 40 percent of the respondents reply to mail interviews. The response
rate in telephonic interviews is also low, since on an average only one call per six calls
is picked up. In personal interviews respondents may be reluctant to share the
confidential information, which may be essential for the research process.
28. D Routine behavior includes products purchased frequently and those that are low priced.
There is little or no involvement in the purchase of such products. Purchasing a 10 kg
rice bag best fits this category.
29. C Exploratory research helps the management identify the presence of potential
opportunities and threats for the company that is conducted with minimum expenditure
of time and cost during the initial stages of decision making process. The data is
obtained from books, journals, magazines, reports, case studies etc. It helps in
identifying strengths and weaknesses of a company.
30. C Commercial sources include advertisements-print media, broadcasting media and the
internet and other marketing source like dealer, packaging and display.
31. B A Probability sample is characterized by every element in the population having a
known nonzero probability of being selected.
32. D Opting for leasing or buying relate to general purchasing policies. Purchasing policies
 of organizations differ. Some organizations have a policy of buying systems rather than
individual components. Government organizations usually buy through bidding.
Therefore, suppliers who have a comparative cost advantage may prefer to target such
markets.
33. D A desire for self-fulfillment is self-actualization. Persons who have already seen
success in life aspire for self-actualization. Therefore, the need to study in a business
school considered to be among the best in the world is a need for self-actualization.
34. D Buyers shape attitudes based on beliefs developed about products is a characteristic of
extensive problem solving buying behavior.
35. E Age and life cycle segmentation, apparently, considers tastes and preferences of
particular age groups and their life cycle stage. Targeting infants, children, and
mothers-to-be relate to age and life cycle segmentation.
36. C A new task situation is where a business buyer is faced with a purchasing decision in
which information requirements, risk and product cost are all high due to the first time
purchase..
37. A Mail interviews are widely used for the collection of information, since the cost is
relatively low. In this case since budget is a constraint, mail survey will be used.
38. B Segmentation by loyalty status refers to the repurchase of a kind due to various levels
of allegiance a customer exhibits.
39. D A reciprocity arrangement is an arrangement unique to business-to-business marketing
in which two organizations agree to buy from each other
40. B Managerial decision support system have the flexibility to represent data using
advanced graphic tools and be able to provide possible solutions to different inputs. It
collects and processes information using computer software programs, advanced
statistical tools and other such techniques to obtain a scientific solution for marketing
problems.
41. C Question Marks are high growth, low share businesses. A question mark requires a lot
of cash both to keep up with a rapidly growing market and improve its share position.
Strategy must decide between further investment to move question marks to star status
(differential advantage) or to phase out the product.
42. B Services differentiation lies in adding valued services. (a) Product differentiation
implies differentiating on the basis of product form, features, benefits etc. (c)
Differentiation achieved through having better-trained people is personnel
differentiation. (d) Companies can achieve a distinct differentiation for their products
on the basis of the distribution channel they use. (e) A company may differentiate itself
from its competitors by image; the particular image or "personality" it acquires is
created by its logo and other symbols, its advertising, its atmosphere, its events and
personalities.
43. C Approvers are the individuals who authorize the purchase process before it is actually
implemented by the buyers in the organization.
44. D Diversification is when a company sells new products to new markets or to markets
that it has not served before.
45. E Original equipment manufacturers buy industrial products and incorporate them into
their final products.
46. B Market specialization involves concentrating on the different needs of a customer
group Even if one segment becomes unattractive it can concentrate on other segments
and fulfill its organizational objective of earning profit.
47. C A niche market is a narrow or smaller segment that has similar attributes and has been
neglected by other marketers.
48. C Strategic planning is the process of developing and analyzing the organization's
mission, overall goals, general strategies, and allocating resources. The strategic
planning process is carried out at the corporate level, business level, and product level.
It begins with an analysis of the organization's current strategic posture, but strategic
planning focuses on the future.
49. A Public sources of customer information include articles newspapers, journals, and
consumer rating organizations.
50. D Power structures in different organizations vary widely. Within this approach, suppliers
can segment their customers on the basis of the level of impact of influential units of
organization. Company tackles the power structure through its advanced technical
skills.
51. B The depth of a product mix is the assortment of sizes, colors and variations offered for
each product in the product line.
52. A Labeling is the process of exhibiting important information on the product’s package.
Labeling has become increasingly important and legally essential. Manufacturers have
to display the ingredients of the product on the package, with warnings and safety
precautions along with instructions about best possible utilization of the product.
53. C Mail interviews are widely used for the collection of information, since the cost is
relatively low. Respondents in a mail interview can be anonymous if they wish to. The
advantage of the mail interview is that the respondent can respond to the questionnaire
at his convenience. One of the biggest problems in mail interviews is the low response
rate.
54. B Split loyals are those customers who use more than one brand. Their loyalty is divided
among two or three brands.
55. C The same brand name or part of the brand name used for all products, i.e., a family of
products is called family branding. Clorox company’s bleaches, bathroom cleaners,
disinfecting whips and stain removers are considered as a Family brand.
56. C Slow skimming strategy is feasible when the market is aware of the product, the
market size is limited, competition is not intense and the customers are ready to pay a
higher price for the product.
57. A The purchasing decision process starts with the problem or need recognition. The
problem can be recognized by someone who is internal to the organization or by
someone who is external to the organization.
58. D Logrolling is the act of exchanging favors for mutual gain.
59. D Products can be classified depending on who the final purchaser is and how he uses
them. Based on the usage of the products, they are divided into consumer products and
industrial products.
60. A Drop error and go error occur in idea screening. Drop error is when a company rejects
a good idea. Go error is when a company selects a bad idea.
61. B Ordering ease refers to the ease with which the customer can place the order for the
product. Where as Delivery refers to how well the product has been delivered to the
customer with speed and care. Therefore both care and ordering ease has been provided
by the dell in their customer services.
62. B While evaluating channel alternatives, the first question a firm needs to answer is
which channel member can produce more sales. Although the company’s sales force is
better equipped and trained to sell the products of the company, there is a possibility
that a specialized sales agency might sell more.
63. A Brands usually highlight the product attributes to inform existing customers and also to
attract potential customers.
64. D Packaging can be a major part in formulating marketing strategies, as the most suitable
and convenient packaging may give the product a competitive advantage.
65. B A marketer who resorts to price competition will compete with his competitors on the
price front by offering his product or services at the same price of at a lower price than
that of the competitor. In price competition, marketer who can sell his products at the
lowest cost will usually win a larger part of the market share.
66. A In push strategy, all promotional efforts are directed towards intermediaries or
members of distribution channel.
67. C Income would be a likely variable for segmenting the market for this new model
because the product is highly priced and segmentation is not possible on basis of
religion, geographical location, gender or values.
68. D Noise is a general term, which is used to describe all of the sources of distortion that
can occur between a company sending out a message, and the receiver receiving it.
69. D For selecting the appropriate medium, the firm wanting to advertise has to find answers
 to four important questions such as
(i) Who should be reached? i.e., identification of the target segment,
(ii) Where are they located? i.e., targeting places where the potential buyers are
located,
(iii) Which medium is appropriate? i.e., Type of medium and (iv) When do we run
the advertising campaign? i.e., timing of the advertisement.
70. C Personal selling is the two-way flow of communication between a buyer and seller,
designed to influence a person's or a group's purchase decision.
71. A Firms that base their price on how they think the competitors will price, rather than on
their own costs or demand, are using going-rate pricing
72. B Dealer listing is a technique in which the advertisement of a company identifies and
acknowledges its retailer. Dealer listings help in persuading the retailer to carry the
product and also encourage the customers to buy the product at a particular’s dealer
outlet.
73. E Psychological pricing: Many sellers believe that prices should end in odd numbers.
Bata always uses Rs.599 instead of Rs.600 which seller preserves opportunity.
74. B Two- part pricing is normally followed in services in which a company charges a fixed
price for an initial service and subsequent charges for over and above the minimum
service consumed.
75. C Health care, retail stores, vending machines and restaurants require involvement of
people (customers), while appliance repair does not. Hence option (c) is the correct
answer.
76. E In selective distribution, the manufacturer does not use all the available marketing
channels, he uses more than one distribution channel. Intensive distribution is used for
mass products like toothpastes, soaps, etc. Exclusive distribution is used for premium
brands like automobiles, designer apparels, etc. Since nursery furniture is neither a
mass product nor a premium brand product, selective distribution is appropriate for it.
77. D The customers may like a product but do not prefer to buy it. The marketer’s
communication objective in this case is to develop the preference of potential
customers by focusing on the quality, performance, value etc in its communication
messages.
78. C Some organizations offer some warranty period to customers who purchase products
from them. During this period, they offer free service if customer reports any problem
with the product.
79. B Most of the powerful brands associate themselves with intangible factors apart from
tangible factors one seeks from a brand.
80. C Companies should focus on creating maximum customer value through their product
offerings. The more the value derived by customers through products, the more loyal
they become to the companies. And loyal customers provide long-term profitability to
companies.
81. D In product development stage, detailed technical analysis is conducted to know
whether the product can be produced at costs low enough to make the final price
attractive to the customers.
82. D TV ads are part of advertising and advertising is one of the elements of the promotion
mix.
83. B Sponsorship (a) Publicity is a non-paid form of communicating information about the
company. (c) Public relations are activities to enhance the image of the company. (d)
Advertising is a paid form of non-personal presentation of ideas. (e) Sales promotion
refers to incentives like free samples given by the company.
84. D A generic brand is nonbranded product that is identified only by its product category.
85. D A horizontal system is the process of sharing marketing resources among two or more
unrelated business entities at the same level of operations. (
86. E Spatial convenience refers to the ease of location or the ease with which customers can
acquire the products.
87. B A service guarantee gives customers recourse for a burden that they have endured. (
88. C A people processing service to be implemented requires the involvement of customers.
Therefore, banking is a people processing service.
89. E Competitive advantage is the critical advantage that a firm possesses in the market over
a competitor in the industry. Neopure can differentiate based on the patent it has,
therefore has a competitive advantage.
90. C Classification based on business orientation refers to overall business as being non-
profitable or commercial. Charities, Wild Life Funds and Art Foundations are non-
profit organizations; hence fall under the business orientation classification.
91. D If a company starts producing its own raw materials then, it is adopting backward
integration strategy. In this case garment is manufacturing its own cotton, hence it is
adopting backward integration strategy.
92. C A complaint log is used to record details of customer complaints about service
delivery. It serves as feedback for the firm and in taking corrective actions to improve
service delivery.
93. C To implement a strategy, affirm needs commitment, leadership, and superior
managerial skills. Strategy must be converted into actions to be achieved on a day-to-
day basis.
94. B Product features are the characteristics that allow a product to perform certain
functions. A firm can differentiate its product from that of the competitor by adding or
removing certain features. Therefore, Birla Cement works has added a feature by
adding red oxide that prevents from rusting.
95. E Limitations of facilities, financial resources, management capabilities, marketing skills
and brand image are weakness for a business
96. A A company should innovate new products faster than its competitors, devise new ways
to reach customers, communicate with them and identify how their unfulfilled needs
can be fulfilled.
97. C Statement III is not true because product department work towards the screening and
generating new ideas, working in tandem with the R&D team.
98. E A service is consumed by a person as soon as it is delivered. Production and
consumption occur simultaneously. Hence, inseparability is essentially about the need
for consumer and producer to interact in order for the benefits of a service to be
created.
99. D When one division of an organization transfers or sells goods or services to another
division, the price charged for the goods is called transfer pricing.
100. A The business concentrates on achieving superior performance in an important customer
benefit area valued by a large part of the market. And this also sets it apart thereby and
helps differentiate from its competitors. Hence, alternative (a) is the correct answer.