Chapter 20 marketing (f1 acca)

Chapter 20 – Marketing: Test Bank

1 In addition to the 4Ps of the marketing mix that applies to physical products, three others were introduced for the marketing of services Which three of the following are these additional factors?

a Privacy

b Psychology

c People

d Placebo

e Process

f Physical evidence

2 The pricing strategy where a product is launched at a very high price is known

3 The process of investigating a market and dividing it into different parts is

4 Which four of the following comprise the original marketing mix?

a Promotion

b Production

c Performance

d Population

e Profit

f Price

g Place

h Product

5 Which of the following best describes market segmentation?

a Setting a uniform price for all customers

b Dividing a market into distinct groups with similar needs

c Creating a single marketing campaign for all products

d Reducing the number of products offered

6 The marketing strategy that focuses on low prices to attract a large customer base is called:

a Market skimming

b Penetration pricing

c Premium pricing

d Economy pricing

7 What is the primary goal of a marketing mix?

a To minimize production costs

b To create customer value and satisfaction

c To maximize employee engagement

d To reduce market competition

8 Which of the following is a component of the promotional mix?

a Product design

b Advertising

c Pricing strategy

d Distribution channels

9 A target market is:

a The entire market for a product

b A specific group of consumers a business aims to serve

c All competitors in a market

d The government regulating the market

10 The concept of positioning in marketing refers to:

a Physical placement of products in stores

b Creating a unique image and identity for a product in consumers minds

c Setting the highest price possible

d Distributing products globally

11 Which of the following is NOT a characteristic of a service?

a Intangibility

b Inseparability

c Tangibility

d Variability

12 The process of building long-term relationships with customers is known as:

a Customer relationship management

b Market segmentation

c Product differentiation

d Price discrimination

13 Which pricing strategy involves charging different prices to different customers for the same product?

a Penetration pricing

b Price skimming

c Price discrimination

d Economy pricing

14 The term brand equity refers to:

a The cost of developing a brand

b The value added to a product by its brand name

c The number of products sold under a brand

d The legal protection of a brand

15 Which of the following is a direct distribution channel?

a Selling through retailers

b Selling through wholesalers

c Selling directly from producer to consumer

d Selling through intermediaries

16 The marketing concept that prioritizes customer needs over business profits is:

a Production orientation

b Sales orientation

c Marketing orientation

d Product orientation

17 Which of the following is a benefit of effective market segmentation?

a Increased production costs

b More targeted marketing efforts

c Reduced customer satisfaction

d Higher inventory levels

18 The term product life cycle refers to:

a The time taken to produce a product

b The stages a product goes through from introduction to decline

c The duration of a products warranty

d The recycling process of a product

19 Which of the following is an example of a push marketing strategy?

a Television advertisements

b Trade promotions to retailers

c Social media campaigns

d Customer loyalty programs

20 The term value proposition refers to:

a The cost of a product

b The unique benefits a product offers to customers

c The profit margin of a product

d The distribution network for a product

21 Which of the following is a characteristic of B2B marketing?

a Targeting individual consumers

b Larger purchase volumes

c Emotional purchasing decisions

d Smaller customer base

22 The process of differentiating a product to make it stand out from competitors

is called:

a Market segmentation

b Product differentiation

c Price skimming

d Market penetration

23 Which of the following is a pull marketing strategy?

a Offering discounts to retailers

b Direct selling to consumers

c Consumer advertising

d Sales force incentives

24 The term market penetration refers to:

a Entering new markets with new products

b Increasing sales of existing products in existing markets

c Reducing prices to attract new customers

d Expanding distribution channels

25 Which of the following is a key element of a SWOT analysis?

a Price elasticity

b Strengths

c Market share

d Distribution costs

26 The marketing strategy that focuses on a niche market is called:

a Mass marketing

b Differentiated marketing

c Concentrated marketing

d Undifferentiated marketing

27 Which of the following is a component of a marketing plan?

a Production schedule

b Target market analysis

c Employee training program

d Financial statements

28 The term marketing myopia refers to:

a Focusing too narrowly on products rather than customer needs

b Overestimating market size

c Ignoring competitor strategies

d Overusing advertising

29 Which of the following is a benefit of digital marketing?

a Higher production costs

b Wider reach and real-time analytics

c Limited customer interaction

d Increased inventory needs

30 The process of setting prices based on the perceived value to the customer is:

a Cost-based pricing

b Value-based pricing

c Competition-based pricing

d Penetration pricing

1 People, Process, Physical evidence Explanation: The marketing mix for

services extends the 4Ps (Product, Price, Place, Promotion) with People (ser-vice providers), Process (ser(ser-vice delivery methods), and Physical evidence

(tan-gible cues like ambiance) Privacy, Psychology, and Placebo are not part of the 7Ps framework

2 Market skimming Explanation: Market skimming involves launching a

prod-uct at a high price to capture revenue from price-insensitive customers before lowering it, often used for innovative products

3 Market segmentation Explanation: Market segmentation divides a market

into distinct groups based on characteristics like demographics or behavior to tailor marketing strategies effectively

4 Promotion, Price, Place, Product Explanation: The original 4Ps of the

marketing mix are Product (the offering), Price (cost to customer), Place (dis-tribution), and Promotion (communication) The others are unrelated

5 Dividing a market into distinct groups with similar needs Explanation:

Market segmentation targets specific consumer groups to meet their unique needs, improving marketing efficiency

6 Penetration pricing Explanation: Penetration pricing sets low initial prices

to attract a large customer base and gain market share quickly

7 To create customer value and satisfaction Explanation: The marketing

mix aligns product, price, place, and promotion to deliver value and meet customer needs

8 Advertising Explanation: The promotional mix includes advertising, sales

promotion, personal selling, public relations, and direct marketing

9 A specific group of consumers a business aims to serve Explanation:

A target market is a defined group of customers with specific characteristics that a business focuses on

10 Creating a unique image and identity for a product in consumers

minds Explanation: Positioning establishes a products distinct place in the

market, differentiating it from competitors

11 Tangibility Explanation: Services are intangible, inseparable, variable, and

perishable, unlike physical products.

12 Customer relationship management Explanation: CRM focuses on

build-ing long-term relationships to enhance customer loyalty and retention

13 Price discrimination Explanation: Price discrimination charges different

prices to different customers based on willingness to pay

14 The value added to a product by its brand name Explanation: Brand

equity enhances a products perceived value, increasing customer loyalty and premium pricing potential

15 Selling directly from producer to consumer Explanation: Direct channels

bypass intermediaries, unlike retailers or wholesalers

16 Marketing orientation Explanation: Marketing orientation prioritizes

cus-tomer needs to drive business decisions, unlike production or sales orientations

17 More targeted marketing efforts Explanation: Segmentation allows

tai-lored strategies, improving effectiveness and customer satisfaction

18 The stages a product goes through from introduction to decline

Ex-planation: The product life cycle includes introduction, growth, maturity, and

decline phases

19 Trade promotions to retailers Explanation: Push strategies incentivize

intermediaries to promote products, unlike pull strategies targeting consumers

20 The unique benefits a product offers to customers Explanation: A value

proposition communicates why a product meets customer needs better than alternatives

21 Larger purchase volumes Explanation: B2B marketing involves larger

trans-actions and rational purchasing decisions compared to B2C

22 Product differentiation Explanation: Differentiation creates unique product

features to stand out from competitors

23 Consumer advertising Explanation: Pull strategies attract consumers

di-rectly, encouraging demand that pulls products through channels.

24 Increasing sales of existing products in existing markets Explanation:

Market penetration focuses on growing sales without changing products or markets

25 Strengths Explanation: SWOT analysis includes Strengths, Weaknesses,

Op-portunities, and Threats to assess market position

26 Concentrated marketing Explanation: Concentrated marketing targets a

single niche market with tailored strategies

27 Target market analysis Explanation: A marketing plan includes analyzing

target markets to develop effective strategies

28 Focusing too narrowly on products rather than customer needs

Ex-planation: Marketing myopia leads to failure by ignoring broader customer

needs

29 Wider reach and real-time analytics Explanation: Digital marketing offers

global reach and data-driven insights

30 Value-based pricing Explanation: This strategy sets prices based on

customer-perceived value, not just costs