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Marketing Management

Subject Code: MB0046


Time (2 hrs)
1Mark * 75 = 50 Marks

1. Which of these is a feature of psychological factors?

(a) Roles and status
(b) Motivation and learning
(c) Social class
(d) Reference group

2. Which of these is a technique used in continuity marketing?

(a) Point-of-purchase display
(b) Loyalty cards
(c) Publicity
(d) Window display
3. _______________ is a company's ability to retain satisfied customers.
(a) Brand perception
(b) Competitive edge
(c) Customer loyalty
(d) Brand building

4. Marketing experts see _____________ market as a market of the new millennium.

(a) Rural
(b) Urban
(c) Kids
(d) Womens
5. According to Advertising Age,________________ is twice as effective as ad banners at
generating higher levels of brand awareness.
(a) Ad button
(b) Sponsorship
(c) Interstitial
(d) E-mail

6. Free gifts provided with a product are a part of which element of marketing mix?
(a) Product
(b) Price
(c) Place
(d) Promotion
7. If a company sells its product only in the Indian sub-continent, it is involved in
___________ marketing.
(a) Domestic
(b) Multinational
(c) Multi-regional
(d) Global
8. In which of the following approaches, does the sales executive identify the need of the
product by the customer and confirm it?
(a) Problem solving selling
(b) Stimulus response selling
(c) Need satisfaction selling
(d) None of the above
9. Which of the following is a customer-oriented approach to pricing?
(a) Mark-up pricing
(b) Break even pricing
(c) Sealed bid pricing
(d) Value-based pricing
10. ____________ retailers dominate one area of merchandise.
(a) Category killers
(b) Department stores
(c) Discount stores
(d) Kirana stores
11. Directing a company's efforts towards serving one or more groups of customers sharing
common needs or characteristics is defined as:"
(a) Market segmentation
(b) Market positioning
(c) Target marketing
(d) Need based marketing

12. Which of the following is the beginning of the market segmentation process?
(a) Evaluating market segments
(b) Forming market segments
(c) Profile segments
(d) Selecting target markets
13. Which of these is a feature of an imperfect market?
(a) Large number of buyers
(b) Identical products
(c) Few sellers
(d) Freedom of entry and exit

14. The main goal of international marketing is to:

a. eliminate competition in international markets.
b. create and retain customers in global markets.
c. gain market share and increase profit.
d. expand business activities abroad
15. _______________ is a felt state of deprivation of some basic satisfaction.
(a) Need
(b) Want
(c) Desire
(d) Demand

16. Which of these is a rational buying motive?

(a) Which arises from the basic needs of the consumers.
(b) Where consumers decision is based on logic and justifications while taking buying
(c) Which is affected by the society.
(d) Which is driven by internal psychological processes.

17. The first stage of the new product development is____________

(a) Product formulation
(b) Idea generation
(c) Commercialisation
(d) Product testing

18. The demands for industrial products are called __________________.

(a) Elastic demand
(b) Derived demand
(c) Elastic supply
(d) Derived supply

19. Establishing channel objectives is the ___________ step of channel design decision.
(a) First
(b) Second
(c) Third
(d) Last
20. __________________identifies weak areas in executing marketing activities and
suggests measures to improve performance in those areas.
(a) Sales analysis
(b) Marketing cost analysis
(c) Marketing audit
(d) Quality Function Deployment
21. On seeing an advertisement, you say that, 'I saw that brand in the shopping center today'.
It is referred to as ____________________.
a. Brand equity
b. Brand awareness
c. Brand loyalty
d. Brand association
22. A __________________ refers to a written document that specifies the required
necessary actions to attain one or more marketing objectives.
(a) Marketing planning
(b) Marketing plan
(c) Marketing strategy
(d) Marketing mix

23. If an advertisement says It is the best product, it is attempting to ______________ the

(a) Inform
(b) Remind
(c) Persuade
(d) Inform and/or persuade
24. The payment cycle system is a kind of _____________system
(a) Internal record
(b) Marketing intelligent
(c) Analytical marketing
(d) Marketing research
25. In rural markets,_____________ advertising is more important than product advertising.
(a) Brand
(b) Institutional
(c) National
(d) Local
26. You buy a brand of shirt because your favourite celebrity endorses it. This is a
a. Rational
b. Emotional
c. Psychological
d. Social
27. Low sales and high promotional costs are associated with which of these PLC stages?
(a) Introduction
(b) Growth
(c) Maturity
(d) Decline
28. Which type of pricing is forbidden by Federal Trade Commission Act?
(a) Odd pricing
(b) Discount pricing
(c) Geographic pricing
(d) Deceptive pricing

29. _________________ influences beliefs, values, and norms of the consumers.

(a) Education
(b) Society
(c) Culture
(d) Economic condition
30. Which of the following refers to the pricing of additional features with the main products?
(a) Two-part pricing
(b) Optional features pricing
(c) By-product pricing
(d) Captive-product pricing

31. Which of the following is the set of brand assets and liabilities linked to a brand?
(a) Brand marks
(b) Brand equity
(c) Brand image
(d) Brand identity
32. Intermediaries play an important role in matching ________.
(a) Information and promotion
(b) Supply and demand
(c) Product to region
(d) Manufacturer to product Employees
33. Which of these is the main element of the marketing mix?
(a) Product
(b) Price
(c) Place
(d) Promotion
34. Which of the following are price reductions to buyers who pay their bills promptly?
(a) Quantity discounts
(b) Seasonal discounts
(c) Promotional allowances
(d) Cash discounts

35. What is a brand?

(a) A name or symbol
(b) A name, term or symbol
(c) A name, term, symbol or design
(d) A name, term, symbol, design or a combination of all of them
36. The most important part of international advertising is ______________ communication.
(a) Product
(b) Cross-cultural
(c) Quality
(d) Benefits
37. _______________ is a company's ability to retain satisfied customers.
(a) Brand perception
(b) Competitive edge
(c) Customer loyalty
(d) Brand building
38. Channel modification is the______________ decision in channel management.
(a) Initial
(b) Last
(c) Primary
(d) Secondary
39. A market leader can charge a price to maintain demand for its products. Such a price is
known as ________________price.
(a) Survival
(b) Current profit maximisation
(c) Market share
(d) Product quality
40. If an advertisement says It is the best product, it is attempting to ______________ the
(a) Inform
(b) Remind
(c) Persuade
(d) Inform and/or persuade

41. __________________are short term incentives to boost sales.

a. Marketing research
b. Advertising
c. Sales promotion
d. Physical distribution
42. Principles regarding which of these are of universal applicability?
a. Attitude of consumers
b. Values
c. Culture
d. Cost of production
43. Which of these companies is most likely to issue a loyalty card?
a. Mobile network provider service company
b. Car manufacturing company
c. Fashion retailer
d. Real estate company
44. In ____________________, one company will custom produce parts or other materials on
behalf of their client.
a. Joint venture
b. Strategic alliance
c. Contract manufacturing
d. Franchise
45. What is an intermercial?
a. A billboard
b. An animated ad
c. An ad banner
d. A classified ad
46. Packaging of rural products should be ___________________.
a. Simple and functional
b. Ornamental
c. Complex
d. Designer

47. Preparation of MIS does not happen in one or two days; it usually takes long. It shows
that MIS is
a ____________process.
a. Management oriented
b. Management directed
c. Strategic
d. Tactical
48. Which of these pricing methods is widely used by service companies?
a. Optional features pricing
b. Captive-product
c. Two-part pricing
d. By-product pricing
49. Which brand has been positioned as, 'More car per car'- stressing fuel economy?
a. Hyundai i10
b. Maruti Suzuki Ritz
c. Tata Nano
d. Tata Indica
50. " You regularly purchase cleaning supplies for your custodial staff. This purchase is a
a. Straight re-buy
b. Modified re-buy
c. New task
d. Modified straight re-buy

2 Mark * 25= 50 Marks

51. In___________markets goods manufactured for households are sold whereas in in

_____________markets goods intended for businesses are sold.
(a) Consumer, industrial
(b) Local, national
(c) National, international
(d) Industrial, consumer

52. Which of these statements is/are true?

1. Customers will leave an organisations if they are not given due attention
2. Customers can sacrifice speed for quality but not quality for speed
3. Customer service can help retain customers but it can also be a major reason behind
losing customers.
a. Statement 1 is true
b. Statement 1 and 2 are true
c. Statements 1 and 3 are true
d. Statements 2 and 3 are true

53. "The element of the compensation mix for salespeople that refers to commissions or
bonuses is the_____________ and the element of the compensation mix that repays
salespeople for undertaking job-related selling efforts is the_______________.
a. Fixed amount, variable amount
b. Variable amount, expense allowance
c. Expense allowance, fixed amount
d. Expense allowance, variable amount

54. Assertion (A)- Publicity may lead to the creation or reinforcement of a favorable
impression about the company and its products
Reason (R)- Publicity is sometimes planned.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is false
d. A is false, R is false

55. Decision making in organisational contexts is often considered to be more ______ and
______ than in consumer decision making.
a. Rational, structured
b. Irrational, emotional
c. Confused, haphazard
d. Unstructured, emotional

56. Assertion (A)- Package of the product promotes the corporate image.
Reason (R)- Companies use the same package design for different product lines to
maintain consistency.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false

57. Which of these are the key elements of a diffusion process?

1 Degree of innovativeness of the product
2 The channels of communication
3 The social system
4 Time required for innovation.
a. 1 and 2
b. 2 and 3
c. 1, 2 and 3
d. 1, 2, 3 and 4

58. Which of the following employees are likely to have maximum interaction with the
a. Marketing manager and accounts receivable manager of XYZ Manufacturing Company
b. Manager and bellboy of a hotel
c. Bank cashier and accounts manager
d. Back office executive and systems operator of a mobile network company

59. Many producers who use captive-product pricing set the price of the main product
________ and set ________ on the supplies necessary to use the product.
a. high; high mark-ups
b. low; low mark-ups
c. low; high mark-ups
d. high; low mark-ups

60. Assertion (A) - A market consisting of customers with diverse characteristics,

needs, wants and behaviour is segmented.
Reason (R) - A homogeneous market is segmented into heterogeneous groups.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false

61. Assertion (A)- Macro environment is very unpredictable and highly uncertain.
Reason (R)- Variables in the macro environment are static.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false

62. Which of these would be affected by economic environment?

a. Consumer taste and needs
b. Consumer spending and purchasing power
c. Consumer mobility and ability to adopt innovation
d. Consumer awareness of energy conservation

63. Assertion (A)- Marketers should develop a unified set of objectives, programs and
strategies for each separate function of marketing.
Reason (R)- It will be easier to assess for the target purpose and the broad objectives.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false

64. Assertion (A)- Retailing and marketing are quite similar to each other.
Reason (R)- Retailing refers to only those activities, which are related to marketing goods
and/or services to final consumers for personal, family or household use.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false

65. Which of these best describes public relations?

a. Deliberate, Unplanned, Performance, Public interest, Two-way communication,
Employee function
b. Deliberate, Planned, Performance, Public interest, One-way communication,
Management function
c. Deliberate, Planned, Performance, Organization interest, Two-way communication,
Management function
d. Deliberate, Planned, Performance, Public interest, Two-way communication,
Management function

66. Assertion (A)- Of the various means of promotion, advertising is least susceptible to
such sociological differences.
Reason (R)- International promotion will have to take into account the social customs,
attitudes, beliefs and other similar factors.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false

67. Behavioural segmentation can be used to divide a market into groups based upon
consumer knowledge, attitudes about products. Behavioural segmentation can be
further defined by which of the following?"
1 User status
2 Loyalty
3 Usage rate

4 Benefits sought
a. 1, 2 and 3
b. 1, 3 and 4
c. 1, 2 and 4
d. 1, 2, 3 and 4

68. Logistics begins from sources of ________________ and ends at the point of
a. Demand, consumption
b. Supply, consumption
c. Demand, supply
d. Consumption, supply

69. Ravi is a complete extrovert. He likes mixing up with people. He likes to read
newspapers and general knowledge books to keep abreast of the surroundings.
(a) Social needs
(b) Physical and social needs
(c) Social and individual needs
(d) Physical and individual needs

70. Which of these are examples of corporate umbrella branding?

a. Mercedes and Jockey
b. Toyota and Pepsi Co
c. Coca Cola and Honda
d. Yamaha and Unilever

71 . Which of these is/are sub-functions of sales promotion?

a. Consumer sales promotion
b. Dealer sales promotion
c. Consumer and dealer sales promotion
d. Stakeholder sales promotion

72. Which of these are characteristics of business markets?

1 Relatively few customers
2 Direct buying
3 Geographically scattered
4 Direct demand
a. 1 and 2
b. 1 and 3
c. 2 and 3
d. 3 and 4

73. Assertion (A)- Commodities cannot be branded.

Reason (R)- Consumers are willing to pay more for a better quality branded commodity.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false

74. ________ are the sum of the ________ and ________ for any given level of production.
a. Total costs; fixed; variable costs
b. Fixed costs; total, variable costs
c. Break even costs; variable; total costs
d. Variable costs; fixed; total costs

75. Assertion (A)- A customer may be satisfied with poor quality.

Reason (R)- Satisfaction is determined by expectations and expectations of different
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false


- Applied Theory Questions

10 Marks x 4 = 40 Marks

Answer the following questions. ((Students need to answer all questions of this section)

1. Describe the components of Macro Environment of marketing.

Refer Unit 3

( 10 marks)

2. Explain the stages in the new product development process.

Refer Unit 8

(10 marks)

Read the following case study thoroughly and answer the following questions:
Discussion Questions:
Refer unit 12
3. Do you think the promotion by Pizza Hut is successful? Give your reasons.
(10 Marks)
4. Suggest one alternative promotion to Pizza Hut. Why do you think this would be
(10 Marks)

Promotions at Pizza Hut

Fig. 12.6: Logo of Pizza Hut

In the summer of 2000 in New Delhi, Pizza Hut launched its innovative Pizza Pooch menu as
well as a Birthday Party package exclusively for kids in the 6 10 years age group. Senior
marketing manager, Tricon Restaurants International said, There is a specific reason to cater
to this segment. Though, at this age children are under their parents guidance, they perceive
themselves to be teenagers and have the ability to choose or demand a particular brand of
their own choice.
The largest number of Pizza Hut outlets is in Paris, followed by Moscow and Hong Kong.
Pizza Hut started operations in India nearly seven years ago with just a single outlet. It has
realised the cultural differences in India and importance of religion in the consumption

pattern of certain sub-cultures. Today it has spread in several cities and it also has a 100 per
cent vegetarian restaurant in Ahmedabad.

Fig. 12.7: Pizza Products

Innovative promotional activities and a popular logo have helped Pizza Hut expanding. The
senior marketing manager said, Our focus is not just on offering a great pizza but also on
providing excitement and good customer service. The manager further emphasised on the
customer focused operations and intensive research done to find customer needs and
satisfaction. Besides, Pizza Hut conducted in-house research on psychographics of Indian
consumer that led to the use of cartoon characters in campaigns. The Indian Market Research
Bureau (IMRB) also carries out regular surprise checks at different outlets to monitor the
quality of service. Moreover, a regular test, CHAMPS (Cleanliness, Hospitality, Accuracy of
order, Maintenance, Product quality and Speed of service) is conducted in-house.
The company says that its Pizza Pooch birthday package is full of fun and excitement. What
is unique in the package is the nominal price of ` 125 per child that offers much more than
only goodies in the main menu. The birthday party includes a well-decorated area within the
Pizza Hut outlet with several gifts for the children. Moreover, the party is conducted by a
trained host with lots of games, prizes and a special gift for the birthday child. Pizza Hut,
better known as a family restaurant, takes the onus of relieving parents of the cumbersome
job of clearing up the mess after the kiddies have enjoyed themselves thoroughly.
The Pizza Pooch menu, on the other hand, includes a wholesome delicious meal and a gift for
the child. The menu has been intricately designed with pictorial games. A free set of crayons
is provided to keep the children occupied while their parents dine. The campaigns created by
HTA are eye-catching with cartoon characters on the mailers, hoardings and print
advertisements where the cartoon characters are aimed at matching varying moods of kids.
The birthday part concept is not entirely original local fast food major Nirulas has been
doing it for years as does KFC.