MGT301 2010

MIDTERM EXAMINATION

Spring 2010

MGT301- Principles of Marketing

Time: 60 min

Marks: 47

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

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Your firm has just developed its first successful MIS. It interacts with information users to assess information needs, develop needed information, _____ the marketing information and help managers use it in their decision making.

► Distribute

► Collect

► Retrieve

► Store

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

People are expected to perform activities according to the persons around them. These activities reflect which one of the following concept?


► Motive

► Role

► Lifestyle

► Tradition

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

Your browser may not support display of this image. Companies are refraining to use poisonous gases in the manufacturing of their products to prevent damage to the environment. The companies are trying to follow:

► Production Concept

► Product Concept

► Marketing Concept

► Societal Marketing Concept



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

Your browser may not support display of this image. If Proctor and Gamble need to know what percentage of customers examines product labels before making a product selection in the supermarket? By which method this study would be accomplished?

► Focus groups

► Mail surveys

► Personal interviews

► Observations



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

Your browser may not support display of this image. Advertising agencies are an example of which of the following marketing intermediaries?

► Insurance company

► Financial intermediary

► Marketing services agency

► Physical distribution firm



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

Your browser may not support display of this image. Through which process individuals and groups obtain what they need and want by creating and exchanging products and value with others?

► Production process

► Marketing process

► Managerial process

► accounting process





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

Your browser may not support display of this image. Which one of the following scheme is TRUE regarding marketing research in sequence?

► Gathering data, analysis, interpretation

► Analysis, gathering data, interpretation

► Interpretation, gathering data, analysis

► Interpretation, reporting, analysis



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

Your browser may not support display of this image. Which method of research can be used to obtain information if people are unwilling or unable to provide?

► Observations

► Focus groups

► Personal interviews

► Questionnaires



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

Your browser may not support display of this image. When a church targets different demographic groups to increase attendance, it is an example of which of the following options?

► Not-for-profit marketing

► Mindless marketing

► Ethics in marketing

► Societal marketing



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

Your browser may not support display of this image. Sampling requires the answer to three questions. Which of the following is an inappropriate one?

► Who is to be sampled (what sampling unit)?

► How many people should be surveyed (what sample size)?

► Why should they be sampled (justification)?

► How should the people be chosen (what sampling method)?



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

Your browser may not support display of this image. Relationship marketing is a consistent application of up to date knowledge of individual customers to product and service design. Why it is communicated interactively to customers?

► For delivering short term value & satisfaction to customers

► For delivering long term value & satisfaction to customers

► For delivering short term value to management

► For delivering long term value to management



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

Your browser may not support display of this image. Demographic segmentation divides the market into groups based on which of the following variables?

► Size, location, industry, customer

► Size, company, industry, technology

► Location, size, occupation, race

► Customer, technology, company, industry



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

Your browser may not support display of this image. When the size, purchasing power and profiles of business market segments can be determined, they are said to possess the requirement of being what?

► Measurable

► Accessible

► Substantial

► Actionable



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

Your browser may not support display of this image. Which one of the following sets reflects the marketing strategy statement in new product development?

► Idea generation; idea screening; concept development

► Idea generation; concept development; concept testing

► Target market description; planned product positioning; sales goals

► Idea generation; test marketing; commercialization



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

Your browser may not support display of this image. The concepts of exchange and relationships lead to the concept of a market. Which one of the following sets reflects the market?

► Actual buyers & Potential buyers

► Whole sellers & Retailers

► Consumers & Customers

► Agents & Brokers



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

Your browser may not support display of this image. Which one of the following sets represents 4 C’s of the marketing mix?

► Customer solution, cost, convenience, communication

► Customer, cost, convenience, comfort

► Convenience, communication, coverage, cost

► Cost, coverage, communication, consultancy



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

Your browser may not support display of this image. Supply's sales force of ABC Company continues to expand, the firm plans to add a fleet of company cars to its sales compensation package. For ABC Company, this would represent which one of the following purchases?

► New-task

► Modified rebuy

► Straight rebuy

► Repetitive



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

Your browser may not support display of this image. The Cost to attract a new customer is how much more than to keep a current customer satisfied.

► 5 to 10 times

► 6 to 12 times

► 10 to 20 times

► 10 to 15 times



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

Your browser may not support display of this image. XYZ retail store tries to satisfy all its customers and makes every effort in achieving its sales. This is because they believe that losing a customer means not only losing a single sale but the entire stream of purchase that customer will make in his life time of patronage. This phenomenon is known as:

► Customer Lifetime Value

► Customer Equity

► Superior Customer Value

► Customer Satisfaction



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

Your browser may not support display of this image. Which one of the following options refers to “The art and science of choosing target markets and building profitable relationships”?

► Customer relationship management

► Knowledge management

► Total quality management

► Marketing management



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

Your browser may not support display of this image. In Boston Consulting Group approach, which one of the following options provides a measure of market attractiveness?

► Business portfolio

► Market share

► Market growth rate

► Relative market share



Question No: 22 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. The process in which individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires is known as:

► All of the given options

► Consumer behavior

► Supplier behavior

► Organizational behavior



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

Your browser may not support display of this image. Brand created and owned by the producer of a product or service is called:

► National Brand

► Private Brand

► License Brand

► Co-branding



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

Your browser may not support display of this image. Marketing management functions in ascending order are:


► Control – implementation – market planning

► Market planning – control – implementation

► Implementation – control – market planning

► Marketing planning – implementation - control



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

Your browser may not support display of this image. The marketing mix consists of the four Ps: product, price, place, and promotion. In this modern marketing era, these tools might be more appropriately named the four Cs: Customer solution, Customer cost, Communication and ___________.

► Customer control

► Convenience

► Consideration

► Customer relationship



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

Your browser may not support display of this image. Launching a product in a small part of the market is called:

► Test marketing

► Product testing

► Marketing analysis

► All of the given



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

Your browser may not support display of this image. The Planning which is concerned with translating the general goals and plans developed by strategic managers into objectives that are more specific is called:

► Strategic Planning

► Tactical Planning

► Operational Planning

► Mission Planning



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

Your browser may not support display of this image. In a business market the buyer has to make the most amount of decisions while making a:


► Straight rebuy

► New task

► Modified rebuy

► None of the given options



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

Your browser may not support display of this image. Manufacturers of surf excel are successful in making their product occupy a desirable place in the hearts of its customers. Now surf excel is considered as a powerful all purpose family detergent. The marketers have successfully ___________ its product.

► Differentiated

► Targated

► Positioned

► Segmented



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

Your browser may not support display of this image. XYZ companying is designing different products for different age groups. They are keeping in mind the needs, wants and demands of the different age groups so that their product would prove successful and profitable. XYZ is practicing

► Mass marketing

► Segment marketing

► Niche marketing

► All of the given options



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

Your browser may not support display of this image. A good package may:

► Protect the product

► Help to sell the product

► Raise total distribution cost

► All of the given options



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

Your browser may not support display of this image. Which of the following steps in strategic planning occurs at the business unit level rather than the corporate level?

► Defining the company mission

► Planning marketing strategies

► Setting companies objectives and goals

► Designing the business portfolio



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

Your browser may not support display of this image. Which of the following options refers to “New Products”?

► Product modifications

► Product improvements

► New brands that a firm develops

► All of the given options



Question No: 34 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. A political force is one of the actors of marketing macro environment. It is difficult for the marketers to deal with the political environment because:

► It is simple to recognize

► It is beyond their control

► It is easily ignored

► It is easily influenced



Question No: 35 ( Marks: 3 )

Your browser may not support display of this image. Differentiate between performance quality and conformance quality of the product.



Question No: 36 ( Marks: 5 )

Your browser may not support display of this image. List down the factors which plays important role for the development and marketing of individual products and services?



Question No: 37 ( Marks: 5 )

Your browser may not support display of this image. How many stages are involved in adoption process?

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

Your browser may not support display of this image. Which one of the following statements by a company chairman BEST reflects the marketing concept?

► We have organized our business to satisfy the customer needs

► We believe that marketing department must organize to sell what we produce

► We try to produce only high quality, technically efficient products

► We try to encourage company growth in the market



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

Your browser may not support display of this image. Some banks have increased their market share by offering accounts especially for children in another city. This example illustrates which of the following growth strategies?

► Market penetration

► Market development

► Horizontal diversification

► Conglomerate diversification



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

Your browser may not support display of this image. Person’s pattern of living as expressed in his or her psychographics represents which one of the following concept?

► Personality

► Culture

► Lifestyle

► Motive



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

Your browser may not support display of this image. Inelastic demand in industrial markets refers to which of the following situation?

► Demand for a given product fluctuates very little over time.

► Price increases or decreases will not significantly alter demand for a given product.

► The demand for one product depends heavily on the demand for another product.

► Supply for a given product cannot keep up with the demand for it.



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

Your browser may not support display of this image. Income segmentation is used to target which of the following groups?

► Affluent

► Middle class

► Lower income class

► All of the given options



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

Your browser may not support display of this image. Which of the following are those products purchased for further processing or for use in conducting a business?

► Unsought products

► Specialty products

► Shopping products

► Industrial products



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

Your browser may not support display of this image. Which one of the following factor indicates "the name, term, sign, symbol, design or a combination of these that differentiate the product of one seller or group of sellers from the other sellers"?

► Brand

► Package

► Label

► Style



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

Your browser may not support display of this image. Customer service is another element of product strategy. The first step is to survey customers periodically to assess the value of current services and to obtain ideas for new ones. From this careful monitoring, marketer has learned that buyers are very upset by repairs that are not done correctly the first time. What is the name of these types of services?

► Brand equity services

► Product support services

► Social marketing services

► Unsought product services



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

Your browser may not support display of this image. A review of the sales, costs and profit projections for a new product to find out whether they satisfy the company’s objectives refers to which one of the following concepts?

► Business feasibility

► Feasibility study

► Business analysis

► Product acceptance



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

Your browser may not support display of this image. If the company’s sales are slow down, and profits level off or decline. At which stage the company has reached?

► Introduction

► Decline

► Growth

► Maturity



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

Your browser may not support display of this image. Identify the first step in a strategic planning process.

► Define the company's mission

► Develop the business portfolio

► Plan marketing strategies

► Set objectives and goals



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

Your browser may not support display of this image. Buying goods and services for further processing or for use in the production process refers to which of the following markets?

► Consumer markets

► Government markets

► Business markets

► International markets



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

Your browser may not support display of this image. Which one of the following sets represents 4 C’s of the marketing mix?

► Customer solution, cost, convenience, communication

► Customer, cost, convenience, comfort

► Convenience, communication, coverage, cost

► Cost, coverage, communication, consultancy



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

Your browser may not support display of this image. The managers of a firm are providing all the facilities and assistance that a customer demands. As a result of their efforts the customers are satisfied and the firm is enjoying huge profits. The efforts of the manager are considered as part of:

► Customer Relationship Management

► Total Quality Management

► Supply chain Management

► Customer Acknowledgement



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

Your browser may not support display of this image. MR.Y invested Rs.50000 in a fan manufacturing company. MR Y is a _____________ of the company.

► Stakeholder

► Stockholder

► Customer

► All of the given options



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

Your browser may not support display of this image. Which one of the following option refers to “The art and science of choosing target markets and building profitable relationships?”

► Customer Relationship Management

► Knowledge Management

► Total Quality Management

► Marketing Management



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

Your browser may not support display of this image. The selling concept is typically practiced for ________ goods.

► Convenience

► Shopping

► Specialty

► Unsought



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

Your browser may not support display of this image. NAFTA is a trade agreement between:


► America, Canada and Mexico

► America, France and Canada

► Germany, Russia and America

► China, Pakistan and India



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

Your browser may not support display of this image. What are the skills that a marketer should possess to successfully achieve the goals of an organization?

► Neither creativity nor critical thinking skills

► Both creativity and critical thinking skills

► Critical thinking skills but not creativity

► Creativity but not critical thinking



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

Your browser may not support display of this image. What does this statement show “Trade of value between two parties”?

► Competition

► Transaction

► Agreement

► Need



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

Your browser may not support display of this image. Marketing management functions in ascending order are:


► Control – implementation – market planning

► Market planning – control – implementation

► Implementation – control – market planning

► Marketing planning – implementation - control



Question No: 22 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. In a marketing plan analyzing and reviewing the product, competition, market and the distribution is included in:

► Threats and opportunity analysis

► Objectives and issues

► Marketing strategy

► Current marketing situation



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

Your browser may not support display of this image. Neighborhood residents and community organizations comprise part of a firm’s:

► Local Publics

► General Publics

► Governmental Publics

► Financial Publics



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

Your browser may not support display of this image. Why is the demographic environment a major interest to marketers?

► Because it involves global financing

► Because it involves people and people make up markets

► Because demographics involve diverse consumer products

► Because demographics focus on local marketing opportunities



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

Your browser may not support display of this image. MIS activities begin and end with which of the following?

► Information Users

► Distributors

► Competitors

► Upper Management



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

Your browser may not support display of this image. ABC Company wants to know why the demand of its product is declining. For this purpose the company should perform :

► Marketing research

► Product development

► Image development

► All of the given options



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

Your browser may not support display of this image. Which of the following is NOT one of the problems typically associated with secondary data?


► It may not exist

► It might not be current

► It might not be impartial

► It is too expensive to obtain



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

Your browser may not support display of this image. Which of the following statements regarding research is TRUE?


► Customers will generally gladly provide information to researchers if it would add value to the products

► Customers will generally give information when they are given compensation for their time

► Customers do not care about the value delivered by their participation in research studies

► All of the given options



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

Your browser may not support display of this image. How is online marketing research conducted?

► By collecting primary data through internet surveys and online focus groups

► By collecting secondary data through the internet

► By collecting primary data through the secondary websites

► None of the given options



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

Your browser may not support display of this image. An American fast food started its business in Pakistan but failed to make a profit. After performing a marketing research the managers found out that there food was not spicy enough. The managers failed to consider which of the following factor?


► Cultural differences

► Lifestyle differences

► Beliefs and attitudes

► Social class



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

Your browser may not support display of this image. A term that describes the tendency of people to interpret information in a way that will support what they already believe is called:



► Selective Attention

► Selective Retention

► Selective Distortion

► None of the given option



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

Your browser may not support display of this image. When a company decides to go after a large share of one or a few smaller segment instead of going after a small share of a large market, the company is practicing:

► Mass marketing

► Segment marketing

► Niche marketing

► All of the given options



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

Your browser may not support display of this image. When Sony TV extended its brand into new product categories including webcams, mobiles, DVD players, printers,etc. Sony was engaged in ________

► Brand Extension

► Line Extensions

► Multi Brands

► New Brands



Question No: 34 ( Marks: 1 ) - Please choose one

Your browser may not support display of this image. At the __________ stage in the product life cycle, educating the market remains a goal, but now the company also needs to meet the competition.

► Growth

► Maturity

► Decline

► All of the given options



Question No: 35 ( Marks: 3 )

Your browser may not support display of this image. Briefly describe difference between labeling and packaging?



Question No: 36 ( Marks: 5 )

Your browser may not support display of this image. Do you think that Marketing Decision Support System helps managers to make better marketing decision? If yes then how?



Question No: 37 ( Marks: 5 )

Your browser may not support display of this image. Briefly explain the market coverage strategies?