Masterson 5th Edition Test Bank Docx

Test Bank

This test bank provides 10 multiple choice questions per chapter, and correct answers are indicated by an asterisk. ()

Using this Test Banks:

To be used in conjunction with Masterson, R. and Pickton, D. (2014). Marketing: An Introduction (third edition). London: SAGE.

This Test Bank is designed to assist instructors in their assessment of students, but it may not provide all of the questions necessary to run a full examination. Also, Instructors should take full responsibility for the use of this Test Bank in their course assessment, including the repurposing or reformatting of the questions and answers provided. It is intended to provide an aid to teaching and assessment not a direct replacement for an examination paper.

Chapter 1: Marketing Today

1. Why is marketing important in a demand driven economy?

a. Consumers have lots of choice

b. There is competition for customers

c. Supply often exceeds demand

d. All of these

e. None of these

2. It is often said that marketing is about managing the exchange process. In an exchange one person or organisation gives up something of value (e.g. a product) in return for something else of value (e.g. money). If an exchange is based on good marketing principles, who benefits most and how?

a. The seller manages to overcharge the customer without them realising it

b. The buyer gets away without paying

c. The seller persuades the customer that the product is better than it really is

d. It’s a fair exchange that makes both seller and buyer happy

e. It’s the most profitable exchange for the seller

3. It is generally recognised that one of the best ways to get an advertising message across is through word of mouth, i.e. getting people to pass on the message to friends and family. Why is this such a successful way to get messages heard?

a. It’s free as there is no need to do any advertising

b. The message reaches lots of people fast and is more likely to be believed

c. The message isn’t wasted on people who wouldn’t buy your products anyway

d. The message keeps being passed on forever and so more people hear it

e. The message can be more complicated as you have experts to explain it

4. Many consumers now ask other consumers for advice on products rather than consulting manufacturers or retailers. What makes it easier for them to do this?

a. Modern mobile phones have internet connections and more sophisticated cameras

b. New European regulations mean that manufacturers no longer have exclusive rights to give advice and guidance about their products

c. The Consumers’ Association has run a number of conferences and set up an advice share network

d. Government has encouraged manufacturers to delegate this responsibility to other consumers in order to save costs

e. Social networking sites, blogs and online reviews have made it easier and cheaper for consumers to self-publish and communicate

5. How is a ‘supply led’ market characterised?

a. There is a surplus of goods for sale

b. There is a shortage of goods for sale

c. There is an exact match between goods available for sale and goods wanted for purchase

d. There are no goods available

E. There are too many suppliers

6. What is ‘marketing communications’ an alternative term for?

a. Promotion

b. Email

c. Sales talk

d. Price lists

e. Product literature

7. What is the point where the supply curve and the demand curve cross called?

a. Breakeven point

b. Equilibrium point

c. Point of balance

d. Apex point

e. Maximising point

8. What is the term for a market in which products are sold to organisations who will use them to make other products? For example, flour may be sold to a bakery which uses it to bake cakes.

a. Consumer market

b. Reseller market

c. b2c market

d. Industrial market

e. Supplier market

9. What are brand ambassadors?

a. Salespeople who work on a particular brand, or range of brands

b. Bloggers who advocate the benefits of branding

c. Individuals who feel strongly about a brand and recommend it highly to other people

d. Export agents who make the first approaches to distributors in a foreign market

e. The first people to try a new brand

10. In a competitive market it is important to retain customers, keep them happy and to increase the value of their orders. One of the techniques that has evolved to assist with this is called:

a. cause related marketing

b. transactional marketing

c. buzz marketing

d. customer relationship management

e. consumer data management

Chapter 2: Marketing Environment

1. In a PRESTCOM analysis, under which heading would a change in the provisions of the Sale of Goods Act be placed?

a. Political

b. Regulatory

c. Social

d. Customer

e. Marketing

2. What is the correct term for an economy that is growing, in a country with full employment, and with high business confidence in the future despite rising prices?

a. Bomb

b. Bust

c. Upturn

d. Swing

e. Mixed

3. Britain has an ageing population. This trend would be identified as part of which PRESTCOM environment?

a. Political

b. Regulatory

c. Social

d. Environmental

e. Market

4. In a SWOT analysis, which two elements are part of the internal environment?

a. Strengths and threats

b. Opportunities and threats

c. Strengths and opportunities

d. Weaknesses and strengths

e. Weaknesses and threats

5. The first stage of a SWOT analysis is to identify relevant variables and classify them under the SWOT headings. What is the follow on stage?

a. Ranking the variables in order of importance to the organisation

b. Organising the variables alphabetically

c. Prioritising the variables according to their associated costs

d. Classifying the variables according to PRESTCOM

e. Identifying the easiest variables to deal with

6. Imagine you are conducting a SWOT analysis for a British manufacturer who exports to Thailand. If the Thai currency becomes unstable, which category would you place that in for your analysis?

a. Opportunity

b. Weakness

c. Economic

d. Strength

e. Threat

7. Identify a close competitor for Walker’s crisps.

a. Golden Wonder crisps

b. Nobby’s nuts

c. Mashed potato

d. Coca Cola

e. Sunflower oil

8. What do the three Cs of international marketing environmental analysis stand for?

a. Country currency culture

b. Competition costs culture

c. Culture costs climate

d. Country climate competition

e. Currency climate costs

9. What is the general term given to any group or individual who can affect, or is affected by, an organisation’s activities?

a. Shareholders

b. Pressure groups

c. Unions

d. Stakeholders

e. Board members

10. Often, the first significant company to move into a market becomes the market leader. What is the term for this?

a. First come first served

b. First mover advantage

c. Market first

d. Last in first out

e. Organisational first

Chapter 3: Buyer Behaviour

1. James recently purchased a new car, however now he is worried about whether he made the right decision. Consumer behaviourists have a term for this state of mind. What is it?

a. Purchase concern

b. Dithering

c. Post purchase dissonance

d. Product evaluation

e. Consumer re-evaluation

2. 14 year old Beth is a member of the Girls Aloud fan club. She accesses their Facebook page regularly and is strongly influenced by what Girls Aloud say and wear. What kind of reference group is this fan club for Beth?

a. Aspirant group

b. Inclusive group

c. Disassociative group

d. Non-membership group

e. Membership group

3. What kind of buying situation is it when a consumer buys a product regularly and there is very little financial (or any other) risk associated with its purchase? Examples might be: their favourite drink, a bar of chocolate, their daily newspaper.

a. Extended problem solving

b. Complex problem solving

c. Impulse problem solving

d. Limited problem solving

e. Routine problem solving

4. John has always loved Citroen cars and so he is delighted when he hears that a Citroen has won Top Gear’s award for car of the year. It takes his friends a long time to convince him that it was actually just ‘new hatchback of the year’ and the overall winner was a Jaguar. John has unintentionally changed the information he heard to match his own beliefs and attitudes. What is the term for that?

a. Attitude reinforcement

b. Selective distortion

c. Enhanced perception

d. Selective retention

e. Selective hearing

5. What are the three components of an attitude?

a. Behavioural, personality, motivation

b. Learning, belief, lifestyle

c. Family, school, work

d. Cognitive, affective, conative

e. Perception, memory, need

6. What are the internal influences on consumer buying behaviour?

a. Personality, perception, learning, motivation, attitudes and beliefs

b. Budget, brand loyalty, motivation, ethnicity and family

c. Family, friends, personality, lifestyle and beliefs

d. Learning, education, attitudes, values and brand loyalty

e. Lifestyle, beliefs, socio-economic grouping, understanding and family

7. Jo is a well-paid lawyer who loves new technology and always has to be the first to own the latest music player or phone. According to Rodgers’ model, which category of adopter best describes Jo?

a. Innovator

b. Early adopter

c. Early majority

d. Late majority

e. Laggard

8. Name two types of behavioural learning.

a. Cognitive learning and affective learning

b. Perceptual learning and environmental learning

c. Classical conditioning and operant conditioning

d. Conservative conditioning and radical conditioning

e. Rote learning and reflective conditioning

9. What is a disassociative group?

a. A dysfunctional group of people

b. A failing team

c. A group that has no allegiance to any cause

d. A group that a person does not want to belong to

e. A group that is classed above others

10. The purchasing habits of organisations are rather different to those of individuals. In what ways?

a. They have more people involved in making the decision to buy

b. They buy in larger quantities

c. They negotiate harder on delivery terms

d. They have longer, more complex decision-making processes

e. All of these

Chapter 4: Market Segmentation, Targeting and Positioning

1. Festive Flowers have a number of shops, each of which serves a specific area. What type of market segmentation base are they using?

a. Demographics

b. Mediagraphics

c. Geodemographics

d. Geographic

e. Aerial

2. What is the term for segmentation systems such as ACORN and MOSAIC that have analysed the UK population by postcode?

a. Geographic

b. Mediagraphics

c. Geodemographics

d. Marketing information databases

e. Population census

3. Which of the following is an example of a behavioural segmentation base?

a. Gender

b. User status

c. Income

d. Socio-economic class

e. Personality

4. What does SIC stand for?

a. Socio income class

b. Special individual category

c. Social inequality cause

d. Seller’s insurance class

e. Standard industry classification

5. John and Joan are both 68 and retired. Their children have long since left home and now have families of their own. Which stage of the family life cycle are John and Joan likely to be in?

a. Full nest I

b. Full nest II

c. Full nest III

d. Empty nest I

e. Empty nest II

6. In the STP five-stage process, what follows on from stage two, identify market segments?

a. Profile customers/consumers

b. Identify the total market

c. Select target market

d. Position against competing brands

e. Identify positions of competing brands.

7. What is the marketing term for how a target market perceives a brand in relation to competing brands?

a. Positioning

b. Perceptual mapping

c. Targeting

d. Segmentation

e. Profiling

8. There are five principal characteristics that will make a market segment particularly attractive for targeting. Four of these are: 1) it has sufficient current and potential sales and profits, 2) it has the potential for sufficient future growth, 3) it does not have excessive barriers or costs to entry or exit, and 4) it has some relatively unsatisfied needs that the company can serve particularly well. What is the fifth?

a. It does not comprise of difficult customers

b. It is not overly competitive

c. It is well documented

d. It is well established

e. Other companies are already making good profits there

9. What is a perceptual map used to assess?

a. Audiences’ degrees of selective attention

b. How much customers/consumers remember about an advert

c. Customer/consumer perceptions of competing brands

d. Relative brand equity

e. Differing perceptions of the brand’s packaging

10. What is the marketing term for a relatively small, well defined and very focused target market?

a. A customised market

b. A targeted market

c. A gap in the market

d. A niche market

e. A corner of the market

Chapter 5: Marketing Research

1. Jamie spent the summer at music festivals having a great time and collecting data on how festival goers behaved. Which qualitative research strategy was he using?

a. Biography

b. Phenomenology

c. Grounded theory

d. Ethnography

e. Case study

2. As part of a university project, Kamil stood outside a cinema and counted the people going in. He recorded men, women and children separately and noted how many were in each group. Which research technique was he using?

a. Survey

b. Focus group

c. Observation

d. Case study

e. Experimentation

3. What is a ‘test market’?

a. A smaller version of a whole market

b. A prototype product

c. A new shop

d. A form of sales promotion

e. A type of questionnaire

4. Sue wanted to research parental attitudes to toy advertising so she invited six mothers to get together, watch some carefully selected adverts and then discuss them. She asked them some questions but mainly just encouraged them to talk. Which research technique was she using?

a. Case study

b. Survey

c. In-depth interview

d. Observation

e. Focus group

5. What is it called when research agencies use a single questionnaire to collect primary data on behalf of a number of their business clients at the same time?

a. Postal survey

b. Financial audit

c. Environmental analysis

d. Omnibus survey

e. Market research report

6. What is the list or database that a researcher uses to select people to be surveyed called?

a. Relational database

b. Sampling frame

c. Random sample

d. Hierarchical database

e. Research directory

7. It is difficult and expensive to use a truly random sample and so many students get other students to fill in questionnaires for their university projects. What kind of sample is this?

a. Quota sample

b. Systematic random sample

c. Cluster sample

d. College sample

e. Convenience sample

8. Ben’s research project involved assessing key retail trends. He decided that the best thing would be to interview directors from the country’s top retailers and ignore the small independent stores who would have less knowledge. What kind of sample is this?

a. Purposive sample

b. Expertise sample

c. Quota sample

d. Random sample

e. Strategic sample

9. Which of the following is most likely to be an example of secondary data?

a. Completed questionnaires

b. Customer conversations on a website

c. Interview tapes

d. a Bought in market research report (e.g. Mintel)

e. SPSS output

10. Sound marketing decisions can only be made on the basis of good quality information. The data must be:

a. legal, decent, honest, truthful

b. timely, accurate, reliable, valid

c. specific, measurable, achievable, relevant, timed

d. quantified, accurate, specific

e. political, economic, social, technological

Chapter 6: Product

1. What is a staple product?

a. Office stationery

b. A complementary product

c. Something that is essential for another product to work, e.g. a keyboard for a PC

d. Something people always like to have and so purchase regularly, e.g. soap

e. A basic, unsophisticated product, e.g. paper clips

2. Mary is getting married and she wants everything on the day to be perfect, especially the dress. What kind of product is a wedding dress?

a. Speciality

b. Convenience

c. White goods

d. Accessory

e. Consumer-durable

3. Coca Cola has an easily identified logo (its name written in a flowing script) and is usually packaged in a red can or its famously curvy bottle. What do these elements combine to form?

a. Brand image

b. Brand personality

c. Brand identity

d. Brand values

e. Brand equity

4. A retailer decides to launch its own version of Marmite. What kind of new product is this?

a. Innovative

b. Replacement

c. Variant

d. Me-too

e. Re-launched

5. Teatimes Ltd are famous for their speciality teas. They are about to introduce two new teas based on their best-selling English Breakfast blend: Welsh Afternoon tea and Scottish Nightcap tea. What kind of new products are these?

a. Innovative

b. Replacement

c. Variant

d. Me-too

e. Re-launched

6. What is the final stage of the new product development process?

a. Business analysis

b. Test marketing

c. Idea generation

d. Marketing planning

e. Product launch

7. Visto is a much loved British drink, widely available in the UK but nowhere else. Lately sales have been falling and the big supermarkets have cut back on their orders. Which of the following is most likely to be a successful extension strategy for this well-established drink?

a. Increasing the price

b. Selling it online

c. Exporting it to other countries

d. Offering the supermarkets special deals as incentives to stock it

e. Advertising it on the Internet

8. What are the axes on the Boston Consulting Group (BCG) matrix labelled?

a. Market share and market size

b. Market price and quantity demanded

c. Market attractiveness and market share

d. Historical market growth and current share

e. Relative market share and market growth rate

9. The market for organic fruit is booming as more and more people try to follow a healthier lifestyle. The Green Apple Company is the UK market leader and able to command high prices for its excellent products, especially locally grown strawberries. Where are the strawberries most likely to be placed on the Boston Consulting Group (BCG) matrix?

a. Star

b. Cash cow

c. Problem child

d. Question mark

e. Dog

10. According to the GE McKinsey matrix, the best strategy for a product in a strong competitive position in a highly attractive market would be to do what?

a. Harvest

b. Divest

c. Invest for growth

d. Re-position

e. Push

Chapter 7: Service Products

1. A concert ticket is primarily an example of which element of the marketing mix?

a. Process

b. Physical evidence

c. Packaging

d. Price

e. Place

2. Some fast food chains have detailed instructions about how staff should prepare the food. There are timers to tell them when the chips are cooked and even painted footprints on the floor to show where they should stand. Which element of the marketing mix are they trying to control?

a. Process

b. Physical evidence

c. Packaging

d. Price

e. Place

3. Why is it more difficult to brand services than to brand goods?

a. The rules are tougher

b. It is harder to make a service consistent

c. There is no way to measure service quality

d. There is no packaging to put a logo on

e. It is impossible to develop a positioning statement for a service

4. Why is it generally harder for service industry managers to cope with peaks and troughs in demand for their products?

a. Services are inconsistent

b. There are no salespeople to help with forecasting

c. Payment is usually made after the service has been provided

d. Most service customers are not brand loyal

e. Service products cannot usually be stored

5. What are people who work with information rather than in manufacturing or in more traditional service industries called?

a. Knowledge workers

b. Technologists

c. Info techs

d. IT users

e. Project managers

6. Outsourcing has advantages and disadvantages, name one advantage of outsourcing.

a. Delegating responsibility for the organisation’s relationship with its clients

b. Being able to draw on specialist expertise that the organisation does not have

c. It enhances the organisation’s staff’s own skill set

d. It builds stronger customer relationships

e. It makes managing budgets easier

7. Two diners complain about a restaurant’s slow service but are delighted to be given a free bottle of wine and canapés to make the wait less tedious. In the end, they thoroughly enjoy their evening. In terms of services marketing, what is this a good example of?

a. Service encounter

b. Service quality

c. Process

d. Service recovery

e. Promotion

8. What is the term given to the total (and frequently complex) environment in which a service is delivered?

a. Multiverse

b. Whole environment

c. Ambience

d. Decor

e. Servicescape

9. A cinema’s automated booking service is primarily part of which of the marketing mix elements?

a. Product

b. Peripheral product

c. Price

d. Process

e. Physical evidence

10. One of the problems that comes from the intangibility of services is that they are perceived as higher risk purchases than goods are. Which of the following is most likely to reassure a customer who has paid in advance for a Centre Court seat at Wimbledon that they will in fact get to see the tennis?

a. The tournament’s reputation

b. The advertising

c. The weather forecast

d. An expensive and official looking ticket

e. The website

Chapter 8: Promotion

1. What is product placement?

a. In store display

b. Paying for your product to be used as a prop in entertainment or cultural media

c. The final pack shot in an advert

d. A sponsor’s message shown at the beginning and end of a TV or radio programme

e. The choice of distribution channel

2. According to the UK advertising code administered by the Advertising Standards Authority (ASA), advertising should be:

a. legal, decent, honest, truthful

b. inoffensive, honest, clear

c. specific, measurable, achievable, relevant, timed

d. attention grabbing, interesting, desirous and actionable

e. legal, relevant, appropriate and not misleading

3. The Quick Heat Company sells all sorts of standalone fires (e.g. paraffin heaters and electric fan heaters). Most of their customers are businesses who have a short term problem such as a heating breakdown. In order to increase sales, they have decided to try and persuade people who live in rented accommodation, and who may want to increase the warmth of their homes without investing in the property, to buy these fires. Who should be the primary target audience for their marketing communications campaign?

a. Landlords of rented property

b. Business owners

c. People who live in rented accommodation

d. Heating engineers

e. Homeowners

4. The Quick Heat Company sells all sorts of standalone fires (e.g. paraffin heaters and electric fan heaters). Most of their customers are businesses who have a short term problem such as a heating breakdown. In order to increase sales, they have decided to try and persuade people who live in rented accommodation, and who may want to increase the warmth of their homes without investing in the property, to buy these fires. Who is the primary target market for this campaign?

a. Landlords of rented property

b. Business owners

c. People who live in rented accommodation

d. Heating engineers

e. Homeowners

5. The Quick Heat Company have a new range of central heating boilers designed for domestic use. They know that most homeowners buy boilers that are recommended by their heating engineer. Who is their target market for boilers?

a. Landlords of rented property

b. Business owners

c. People who live in rented accommodation

d. Heating engineers

e. Homeowners

6. The Quick Heat Company have a new range of central heating boilers designed for domestic use. They know that most homeowners buy boilers that are recommended by their heating engineer. Who should be the primary target audience for their new campaign?

a. Landlords of rented property

b. Business owners

c. People who live in rented accommodation

d. Heating engineers

e. Homeowners

7. Football Mania have booked an expensive ad slot during the FA Cup final. Unfortunately, there are technical problems and the ad is not shown. According to Schramm’s communications model, what is this an example of?

a. Noise

b. Distress

c. Perception

d. Breakdown

e. Coding

8. The Oxo family starred in one of the most famous, and long running, ad campaigns in the UK. It showed the family in typical situations, usually culminating in them sitting down to eat an Oxo inspired meal. What kind of creative execution is this?

a. Animation

b. Demonstration

c. Problem solution

d. Slice of life

e. Celebrity

9. What is the term for using specialist software to analyse large amounts of data (held in a database) to predict trends and likely customer behaviour?

a. Data mining

b. Sales forecasting

c. Environmental scanning

d. Supply and demand analysis

e. Product interrogation

10. ABC company have forecast approximately £10 million sales for the coming year. They have decided to allocate £200,000 (2% of turnover) to marketing. Which budget setting method are they using?

a. Arbitrary method

b. Affordable method

c. Competitive parity method

d. Competitive percentage method

e. Percentage of sales method

Chapter 9: Place

1. What are businesses that represent, and sell goods on behalf of, other businesses in a specified market called?

a. Resellers

b. Traders

c. Agents

d. Stockists

e. Legal representatives

2. What does EPOS stand for?

a. Easy purchasing and ordering system

b. Electronic purchase operating system

c. Estimated product order shipment

d. Exclusive products’ organisational standing

e. Electronic point of sale

3. The International Chamber of Commerce has devised a set of rules for the interpretation of international terms and conditions. These rules set out how activities, costs and risks are to be split between the buyer and seller. What are they called?

a. ts & cs

b. ICC regulations

c. Les regulations internationale

d. Incoterms

e. Coregs

4. How many levels of intermediaries are there in a direct sales channel?

a. 0

b. 1

c. 2

d. 3

e. 4

5. Luxury goods such as high fashion, designer clothing would normally have very few, (possibly only one), distribution outlets. What is the term for this?

a. Exclusive distribution

b. Prestige distribution

c. Selective distribution

d. Unique distribution

e. Targeted distribution

6. Tucker’s foods buy their fruit straight from the farm. They then make it into jam and other products and sell it on to wholesalers who in turn sell to retailers such as Sainsbury’s. How many levels are there in this supply chain?

a. 0

b. 1

c. 2

d. 3

e. 4

7. Dombey and Sons produce a sparkling drink from apples grown on their own farm. They employ a small French firm to sell the drink to wholesalers in France. This French firm is acting as:

a. a franchisee

b. a retailer

c. an agent

d. a warehouse

e. a logistics firm

8. Dizzy Designs make their clothes in the UK and then ship them to their own retail outlets in France, Spain and Germany. What kind of operation is this?

a. Indirect export

b. Direct export

c. Home shipment

d. Overseas manufacture

e. Contract manufacture

9. According to many retailers, what are the three secrets to their business success?

a. Product, price, place

b. Product, product, product

c. Location, location, location

d. Service, smile, sizzle

e. People, process, physical evidence

10. What is the function of transporting and storing physical goods for the various members of the supply chain known as?

a. The buying centre

b. Merchandising

c. Traffic

d. Inventory

e. Logistics

Chapter 10: Price

1. Ivan runs a bakery. He has lots of bills to pay: electricity, rent for the shop, the staff’s wages, flour for bread, cakes and pastries, spelt for his special spelt loaf etc. His accountant says it is important to classify these costs correctly so that he can set the right prices for his products. How would you classify the cost of the spelt?

a. Fixed and direct

b. Variable and direct

c. Fixed and indirect

d. Variable and indirect

e. Marginal

2. What type of cost is ‘mark-up’ pricing based on?

a. Fixed cost

b. Variable cost

c. Direct cost

d. Indirect cost

e. Marginal cost

3. What is the term for the volume of products sold that, at a given price, will cover the company’s costs?

a. Equilibrium point

b. Target profit

c. Maximum profit

d. Breakeven point

e. Match point

4. Miranda owns a chain of handbag shops across England and Wales. She has spotted a good location to set up a shop in Edinburgh but her handbags aren’t well known in Scotland and there is quite a lot of competition. She thinks it’s worth a try anyway and decides to undercut the competition, at least until she gets known. What pricing strategy is Miranda following?

a. Market skimming

b. Loss leader

c. Market penetration

d. Price discrimination

e. Export pricing

5. Under which conditions would market skimming be likely to be a viable strategy?

a. There is insufficient market capacity and competitors cannot make more of the product

b. There are no competitors

c. The demand for the goods in question is relatively price inelastic

d. All of these

e. None of these

6. Marie is a software developer who works freelance. She wants her customers to really value her work and so she consistently sets her prices higher than the competition. Sometimes she loses work because of this, but often she wins the contract. What kind of pricing is she using?

a. Prestige pricing

b. Pre-emptive pricing

c. Product line pricing

d. Placement pricing

e. Price discrimination

7. Woods and Co is one of the largest office furniture suppliers in the UK. They outsource manufacturing overseas, sell direct and keep their prices low. New firms who don’t have Woods’ economies of scale find it impossible to compete. What kind of pricing are Woods and Co using?

a. Prestige pricing

b. Pre-emptive pricing

c. Product line pricing

d. Placement pricing

e. Price discrimination

8. Matt has some great Christmas gifts for sale but not enough people come into his shop and see them. They tend to shop at bigger retailers instead. He can’t afford media advertising and so he decides to offer Christmas crackers for one penny each (well below what they cost him) to draw customers in. He puts a notice in the window advertising this bargain. What tactic is he using here?

a. Predatory pricing

b. Psychological pricing

c. Retail pricing

d. Discounts

e. A loss leader

9. What is parallel importing?

a. Trade customers buy goods cheaper abroad, import them and undercut the manufacturer

b. A manufacturer piggybacks on another manufacturer’s distribution channel

c. A manufacturer imports and prices two product lines together

d. Distributors put together a large shipment of different goods to cut costs

e. An agreement between two companies to swap shipments of goods without any money changing hands

10. If a product is said to have a price inelastic demand curve, what does this mean?

a. If you put the price up, sales will stay the same

b. If you the price down, sales volume will fall

c. If you change the price, sales volume will change very little

d. To sell more products, you should raise the price

e. To make more sales revenue, you should lower the price

Chapter 11: Building Brands with the Marketing Mix

1. What is a ‘branded house’?

a. A department store

b. A company that sells multiple brands

c. An alternative name for corporate branding

d. A single master brand that spans a set of sub brands

e. A company that owns multiple individual and competing brands

2. Why do many advertisements contain a pack shot?

a. To help customers to recognise the packaging and remember the message of the advert

b. It is a legal requirement

c. It is a requirement of the advertising code of practice

d. It ensures customers will remember the advert and what product it was for

e. Because packaging represents a major investment and should therefore be shown off at every opportunity

3. What is pattern advertising?

a. Adverts for designer clothes

b. Adverts that don’t show the product being advertised

c. A sequence of adverts that tell a story

d. Abstract advertising designed to get around the advertising code of practice

e. Adverts that look similar but use different images and slogans for different audiences

4. What type of brand is Tesco Cola?

a. Copycat brand

b. Own label brand

c. Public limited brand

d. Umbrella brand

e. Individual brand

5. Why did the makers of the cleaning product Jif change its name to Cif?

a. As part of an international standardisation strategy

b. They were sued by the makers of Jif lemon juice

c. Because ‘cif’ means ‘clean’ in a number of languages

d. As part of their product portfolio management – they had too many similar products

e. It was a printing error

6. Who tried, unsuccessfully, to re-brand themselves as Consignia?

a. British Telecom

b. Mercury

c. Royal Mail

d. Virgin Media

e. The Home Delivery Network

7. Which of the following is part of a brand’s identity?

a. Name

b. Personality

c. Equity

d. Price

e. Audience perceptions

8. Sony laptops have a sticker on them which says ‘Intel inside’. This is an example of what?

a. Corporate branding

b. Dual branding

c. Piggyback branding

d. Multi-branding

e. Co-branding

9. Little Piggy is a brand of upmarket sausages sold through independent groceries and butchers. The marketing team want to build on the brand’s success by broadening their product portfolio. They plan to start with Little Piggy pies. What kind of branding strategy is this?

a. Line extension

b. Range extension

c. Multi-branding

d. Brand extension

e. Brand stretch

10. Which of the following is a range brand?

a. Gap

b. Cadbury’s

c. McDonald’s

d. CK1

e. Next

Chapter 12: Marketing Planning

1. SWOT is one of the most commonly used analysis tools in business, but what does it analyse?

a. The external marketing environment

b. The internal marketing environment

c. The competitive environment

d. The organisation’s current situation

e. The organisation’s strategy

2. Maria is the Marketing Manager for Wholefoods Ltd. She is working on the firm’s marketing plan. Her forecasts show that, if they carry on as they have been doing, they are likely to miss their sales revenue targets by £500,000. She needs some new ideas. What kind of analysis has Maria undertaken?

a. PRESTCOM analysis

b. SWOT analysis

c. Strategic gap analysis

d. Ansoff’s matrix

e. Ratio analysis

3. Apart from business growth, there are a number of other good reasons for selling products internationally. Which of the following are valid reasons?

a. To spread risk

b. The firm has excess production capacity

c. To extend the product life cycle

d. All of these

e. None of these

4. What is the first stage of the marketing planning process?

a. Research and development

b. Evaluation

c. Objective setting

d. Situation analysis

e. Strategy development

5. What are marketing metrics?

a. Ways to measure marketing effectiveness

b. Marketing tactics

c. The elements of a marketing programme

d. A sales promotion technique

e. The value of the marketing budget

6. Robert has recently been appointed Marketing Manager for a fashion company. He needs to know whether or not the company’s products have a sustainable advantage in the marketplace. What kind of analysis does he need to do?

a. Environmental analysis

b. Gap analysis

c. Competitor analysis

d. Market share/market growth analysis

e. Brand interrogation

7. Porter’s five forces is an industry analysis model. The five forces are: inter rivalry of competitors, bargaining power of customers, bargaining power of suppliers, threat of new entrants and what?

a. Barriers to entry

b. Threat of competitors

c. Brand strength

d. Threat of substitutes

e. Bargaining power of consumers

8. According to Ansoff’s matrix, a company that tries to increase sales by selling its existing products in a new market is following what kind of strategy?

a. Market development

b. Diversification

c. Focus

d. Market penetration

e. Product development

9. Which of the following is a well-used marketing evaluation and control method?

a. PEST

b. Acid test

c. Brand gap analysis

d. All of these

e. None of these