TB 1

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Which of the following statements is incorrect?

A. Advertising is the transmission of paid messages about an organization, brand or product to a
mass audience.
B. Advertising is generally expensive but offers the potential advantage that it is possible to
reach a large number of people at a relatively low cost per person.
C. Choosing appropriate media makes it possible to aim advertising at potential target markets
D. The choice of media in which to advertise can positively or negatively impact a brand's image.
E. Advertising enables personalization of the marketing message.
Which of the following would be classed as a product differentiator?

A. Features.
B. Quality.
C. Design.
D. Brand.
E. All of the options listed.
Coca Cola is available in vending machines, bars and clubs, supermarkets, petrol stations,
corner stores and at sporting events. This approach to market coverage is known as:
A. intensive distribution.
B. direct distribution.
C. indirect distribution
D. exclusive distribution.
E. selective distribution.
'Upsize' deals at fast food restaurants are examples of pricing a product at a moderate level
and then positioning it next to a more expensive model. This is known as:
A. cost-based pricing.
B. price skimming.
C. penetration pricing.
D. reference pricing.
David has decided to buy a new pair of work shoes, so he spends his afternoon shopping for
a new pair. When classifying products, the category of 'shopping products', which includes
shoes, also includes:
A. impulse products.
B. staple products.
C. emergency products.
D. none of the options listed.
If a consumer is prepared to spend time comparing competing offerings before making a

purchase decision, the product is most likely to be a(n):
A. unsought product.
B. specialty product.
C. convenience product.
D. shopping product.
E. core product.
Intermediaries in a distribution channel can include:

A. wholesalers.
B. retailers.
C. industrial buyers.
D. All of the options listed.

A. Public relations campaigns are generally high cost.
B. Public relations activities include communications aimed at creating and maintaining
relationships between an organization and its stakeholders.
C. Public relations activities can be used as a tool to combat negative perceptions or events.
D. An organization submitting a press release to the media is an example of a public
relations activity.
Capilano Honey differentiates its product from competing products using packaging, a
fundamental characteristic. This approach could be best described as differentiating at
which level of the total product concept?
A. Core product.
B. Expected product.
C. Augmented product.
D. Potential product.
E. Actual product.
While on an overseas holiday, John and Elizabeth decide to hire a car. During their travels,
the car breaks down and they decide that they have to take it to a mechanic. There are
several mechanics in the town that they are in. Which of the following forms of physical
evidence could they use to evaluate each of the mechanics before deciding which one to
choose?
A. Staff uniforms.
B. Shop fittings.
C. Delivery vehicles.
D. Brochures.
Macroeconomics is the branch of economics that focuses primarily on:

A. the behavior of the individual units that make up the total economy.
B. the interactions between buyers and sellers in individual markets.
C. the behavior of buyers and sellers in individual markets.
D. how individual firms make their production decisions.
E. aggregated economic activities.
Markets in which firms sell their output are called:

A. capital markets.
B. stock markets.
C. labor markets.
D. farmers' markets.
E. product markets.
An increase in the price of a substitute product will normally cause:

A. a movement along the demand curve such that quantity demanded declines.
B. the demand curve to shift to the right.
C. an individual to decrease consumption of any goods she purchases.
D. the demand curve to shift to the left.
E. a movement along the demand curve such that quantity demanded increases.
The curve that describes the quantities of a product that a firm would like to sell at different
prices is called the:
A. demand curve.
B. supply curve.
C. production possibilities curve.
D. budget constraint.
E. opportunity set.
An increase in the price of coffee is likely to result in:

A. a rightward shift in the demand curve for coffee.
B. an increase in the demand for products that are complements to coffee, such as cream.
C. a decline in the demand for products that are substitutes for coffee, such as tea.
D. an increase in the demand for products that are substitutes for coffee, such as tea.
E. a leftward shift in the demand curve for coffee.
A reduction in the price of an input will normally cause:

A. a movement along the supply curve such that quantity supplied declines.
B. the supply curve to shift to the left.
C. the supply curve to shift to the right.
D. a firm to decrease the amount it offers for sale.
E. a movement along the supply curve such that quantity supplied increases.
Along an individual demand curve, a reduction in quantity demanded occurs when:

A. price has increased
B. price has decreased.
C. the consumer's income has fallen.
D. the consumer's income has increased.
E. a reduction in price induces the individual to increase consumption.
If the price of a product increases, but the quantity demanded does not decline at all, the
demand for this product in this price range:
A. is perfectly price elastic.
B. is price elastic.
C. has a price elasticity of unity.
D. is price inelastic.
E. is perfectly price inelastic.
Total revenue will decline if the price ________ when the demand curve _______.
A. rises; has unit price elasticity.
B. falls; has unit price elasticity.
C. rises; is price elastic.
D. rises; is price inelastic.
E. falls; is price elastic.
The macroeconomic perspective:

A. involves analysis of the behavior of individual units in the economy.
B. studies how consumers and firms make decisions.
C. involves a detailed study of the product, labor, and capital markets.
D. is a top-down view of the economy.
E. is a bottom-up view of the economy.
The market demand curve is:

A. derived by vertically summing the individual demand curves at each quantity.
B. derived by horizontally summing the individual demand curves at each price.
C. derived by vertically summing the individual demand curves at each price.
D. derived by horizontally summing the individual consumer's demand curves at each
quantity.
E. independent of individual demand curves.
Market _________ involves a systematic examination of the range of possible market
segments, their potential ___________ and revenues, and the relative ability of the
organization to satisfy the expectations of members of these market segments.
A. segmentation, profits
B. targeting, sales volume
C. segmentation, sales volume
D. targeting, profits
A credit union that provides a wide range of financial services to members who are employed
in particular industries would be best described as having:
A. a market specialization.
B. a product specialization.
C. a service specialization.
D. a product-market specialization.
E. None of the options listed.
Organizations that pursue a specialization strategy seek to establish a dominant position in

their chosen _________ market.
A. product.
B. consume.
C. producer.
D. niche.
Subaru built its early reputation in Australia by targeting visitors to, and residents of the snow
country. This method of market segmentation could best be described as:
A. geographic.
B. demographic.
C. psychographic.
D. behavioral.
E. geo-psychographic.
Which of the following is not a behavioral segmentation variable?

A. Consumer's benefit expectations of a product.
B. The occasion for which a product may be purchased by a consumer.
C. Heavy, medium or light users of a product.
D. Brand loyal consumers.
E. All of the options listed are behavioral segmentation variables.
The three main stages of the targeting process, in chronological order, are:
A. targeting, positioning, segmentation.
B. segmentation, positioning, targeting.
C. segmentation, targeting, positioning.
D. targeting, segmentation, positioning.
Which of the following best describes the broad concept of a market?

A. A group of customers with heterogeneous needs and wants.
B. A group of customers with homogenous needs and wants.
C. The business-to-consumer market.
D. The business-to- business market.
A target marketing strategy in which all marketing efforts are focused on meeting a wide
range of needs within a particular market segment is called:
A. product specialization.
B. product-market specialization.
C. market specialization.
D. market-product specialization.
There are two steps in the market segmentation phase: ___________ that can be used to
define meaningful market segments; and _____________the market segments so they can be
assessed in the second stage of the target marketing process.
A. market research, surveying
B. market research, profiling
C. identifying variables, profiling
D. identifying variables, surveying
In terms of the total product concept, product differentiation occurs mainly at the
__________level.
A. augmented
B. core
C. expected
D. life cycle
E. growth
Shopping products include:

B. staple products.
D. none of the options listed
Milk could best be described as a product that is ________ distributed.

A. intensively
B. selectively
C. exclusively
D. directly
Boarding your Emirates flight to London, you notice the pilot in his smart uniform and the
flight attendants looked very well dressed. The cabin is quite spacious and there is plenty of
room for your carry-on luggage. From these visual cues you feel reassured and confident that
the flight will be enjoyable. Visual cues are a characteristic of services known as:
A. intangibility.
B. inseparability.
C. heterogeneity.
D. perishability.
E. physical evidence.
Integrated marketing communications (IMC) is the term given to the coordination of

promotional efforts to maximize the communication effect. Its primary goal is:
A. creating and maintaining relationships between the marketing organization and its
stakeholders.
B. to reach a lot of people at a relatively low cost per person.
C. to consistently send the most effective possible message to the target market.
D. offer extra value to resellers, salespeople and consumers in a bid to increase sales.
Apple MacBooks are available from licensed retailers and distributors in Australia. Retailers
are licensed based on reputation and service, adding value to the strong Apple brand. This
approach to market coverage is known as:
C. indirect distribution.
Staple products, impulse products and emergency products are all examples of:
A. Convenience products.
B. specialty products.
C. unsought products.
D. shopping products.
A clothing company manufactures a range of underwear, singlets, socks and t-shirts for both
men and women. This range is known as the company's:
A. product capacity.
B. product item.
C. product line.
D. product mix.
For which of the following segmentation variables is it more likely to be difficult to measure
and obtain accurate data?
A. Demographic variables.
B. Organizational size.
C. Psychographic variables.
D. Geographic variables.
E. All of the options listed are difficult to measure.
When the marketer seeks to ________and ___________those parts of the total market that
it can offer the most_________, the approach is known as the _________ marketing
concept.
A. grow, understand, benefit, total
B. identify, understand, value, target
C. identify, grow, value, total
D. identify, understand, value, total
The broad market segments of 'Baby Boomers', 'Generation X', 'Generation Y' and Generation
Z' have been created primarily based upon:
A. psychographic variables.
B. behavioral variables.
C. demographic variables.
D. geo-demographic variables.
Which of the following statements is false?

A. A product, organization or brand may be able to be repositioned.
B. The positioning of an organization, its product/s and brand/s should be consistently
reinforced.
C. The positioning of an organization, its product/s and brand/s should be changed regularly.
D. Positioning is based on customer perceptions as well as reality.
E. How an organization wishes to position its product offering to a target market should
influence the development of its marketing mix for that target market.
An organization that segments its market by offering rewards based on the amount of points
accumulated on its loyalty card would be best described as utilizing:
A. demographic segmentation.
B. psychographic segmentation.
C. behavioral segmentation.
D. geo-demographic segmentation.
E. none of the options listed.
Which of the following statements is correct?

A. A market segment has distinctive needs, but more than 33.3% of the members of the segment
have similar needs.
B. A market customized target segment has similar needs, but the members of the segment
have distinctive needs.
C. An architect designing a couple's 'dream' home is an example of customized marketing.
D. A customized market segment has between 49% to 66.6% of potential needs
As an importer of surfing accessories, your company focuses its marketing operations in the
warmer coastal regions of Australia. This action is an example of:
A. geographic segmentation.
D. demographic segmentation.
You open a liquor store, selling only boutique wines (produced in smaller quantities and as
such not sold through major retailers) from the Hunter Valley in NSW. Your specialized
approach to the target market is:
B. market specialization.
C. product-market specialization.
D. differentiated target marketing
The demand curve is downward sloping, which means that the quantity demanded for a
good ___ when its price ______.
A. rises; rises
B. falls; falls
C. is unchanged; falls
D. is unchanged; rises
E. falls; rises
Along an individual firm's supply curve, an increase in a quantity supplied occurs when:
A. price has increased.
B. price has declined.
C. the firm's profit has fallen.
D. the wage rate paid to the firm's workers increases.
E. the firm is induced to offer more for sale at a lower price
If the demand for a product is price elastic, total revenue will:

A. be unchanged regardless of the direction of the price change.
B. fall if price is reduced.
C. increase if price is increased.
D. increase if price is reduced.
E. increase regardless of the direction of the price change.
All of the following, except one, will increase the quantity of butter supplied at each price.
Which will not?
A. A climate change that improves cows' milk yield
B. Increased concern about the health risks associated with eating butter
C. A fall in the price of milk
D. A new discovery that makes it cheaper to make butter from milk
E. A reduction in the price of milking machines
If a firm raises the price of its product and finds that total revenue has fallen, this indicates
that:
A. demand for the product is price inelastic.
B. demand for the product has unit price elasticity.
C. the demand curve for the product is downward sloping.
D. the price elasticity is greater than one.
E. demand for the product is price elastic
An increase in the price of butter is likely to result in:

A. a movement along the demand curve for butter such that quantity demanded increases.
B. a rightward shift in the demand curve for margarine.
C. an increase in the quantity of butter demanded.
D. a leftward shift in the demand curve for margarine.
E. a movement along the demand curve for margarine such that quantity demanded
increases.
At the equilibrium price:

A. price will tend to fall.
B. the quantity supplied exceeds the quantity demanded.
C. price will tend to increase.
D. the quantity supplied is less than the quantity demanded.
E. there is no reason for the price to change
An individual is typically willing to purchase more of a good at lower prices, which implies
that the individual demand curve will be:
A. horizontal.
B. vertical.
C. upward sloping.
D. downward sloping.
E. of indeterminate shape.
If a firm lowers the price of its product and finds that total revenue has fallen, this indicates
that:
B. demand for the product is price elastic.
C. demand for the product has unit price elasticity.
D. the demand curve for the product is downward sloping.
E. the price elasticity is greater than 1.
If a firm raises the price of its product and finds that total revenue has increased, this
indicates that:
A. demand for its product is price elastic.
C. demand for the product is price inelastic.
E. the price elasticity is less than 1.
In the labor market, households:

A. lend labor services.
B. sell labor services.
C. buy firms' output.
D. buy and sell labor services.
E. lend money to firms.
Diamonds command a higher price than water because they have a:

A. higher value in use.
B. lower value in exchange.
C. higher marginal value.
D. lower value in use.
E. higher total value.
A technological improvement will normally cause:

A. the supply curve to shift to the right.
B. a movement along the supply curve such that quantity supplied declines.
C. an individual to increase consumption of any goods she purchases.
D. a movement along the supply curve such that quantity supplied increases.
E. the supply curve to shift to the left.
Households are ____ in the product market, ____ in the labor market, and ____ in the
capital market.
A. lenders; consumers; sellers
B. consumers; lenders; sellers
C. consumers; sellers; lenders
D. consumers; sellers; consumers
E. consumers; buyers; borrowers
At any price above the equilibrium price:

A. the sellers can sell all they offer for sale.
B. the quantity supplied is greater than the quantity demanded.
C. the price will rise.
E. consumers cannot buy all that they wish to.
If the market price of a good is such that consumers wish to buy less of the good than firms
are offering for sale, the excess ___ will cause price to ___.
A. demand; fall
B. supply; rise
C. price; fall
D. supply; fall
E. demand; rise
Answer: D
The primary focus of economics is on:

A. government decisions about which wants have to go unsatisfied.
B. implementing a market system.
C. choices that must be made.
D. rising prices.
E. providing consumers with perfect information.
The total product concept broadly describes a product as a bundle of attributes, creating
value for the customer. Specifically, a product can be defined as the core product, expected
product, __________ product and __________ product.
A. associated, final
B. augmented, potential
C. augmented, serviced
D. associated, finished
A target market can best be described as:

A. the total market for a product.
B. a group of customers with different needs and wants.
C. a group of customers with similar needs and wants.
D. customers who currently purchase an organization's products.
E. customers who don't currently purchase an organization's products.
Apple and Virgin are two companies who frequently use public relations campaigns to
generate awareness of and interest in the products and services they offer to the market.
Public relations campaigns such as those run by Apple and Virgin have a number of
characteristics, but these characteristics do not include which of the following statements?
relations activity.
Big Australian retail outlets such as Kmart, Big W and Target stock a wide range of consumer
products. The consumer products stocked by these retailers can be best categorized as:
A. shopping, convenience and specialty products.
B. shopping, convenience and unsought products.
C. shopping, convenience, specialty and unsought products.
D. shopping, convenience, core and augmented products.
E. shopping, convenience, specialty and core products.
Which of the following best describes the concept of product differentiation?

A. How a product evolves as it moves from one phase of the product life cycle to the next.
B. The creation of products and product attributes that distinguish one product from another.
C. The creation of physical goods that are distinguished from competitor's physical goods.
D. The creation of services that are distinguished from competitor's services.
A dairy company manufactures a range of flavored skim milks. This range is known as the
company's:
B. product item.
C. product line.
D. product mix.

A. A service is a product.
B. A physical good is a product.
C. A service usually involves transfer of ownership.
D. A physical good is tangible; a service is intangible.
Which of these is the definition of 'product'?

A. A physical, tangible offering, capable of being delivered to a customer.
B. A good offer to the market for exchange.
C. A good, service or idea offered to the market for exchange.
D. An intangible offering to the market.
As a marketing manager, you undertake research to understand how potential buyers see
your brand. Your research is aiming to identify your brand's:
A. position.
B. value.
C. benefit.
D. potential.
As the marketing manager for Samsung, you realize the need to differentiate your range of
smartphones in the minds of your consumers. All mobile phones these days make phone calls
and connect to the internet; so at which product level are you most likely to be able to
differentiate your phones from your competitors' offerings?
A. Core.
B. Expected.
C. Augmented.
D. None of the options listed.
Evaluating and selecting market segments is part of the ____________ stage of the target
marketing process.
A. segmentation
B. positioning
C. targeting
D. final
E. first

A. Mass marketing is best suited to situations where buyers have common wants, needs and
demands.
B. Target marketing is best suited to situations where subgroups in the market can be
identified that have similar characteristics.
C. One-to-one marketing is best suited to situations where buyers have unique wants, needs
and demands.
Which strategy would most accurately describe the marketing efforts of a major car
manufacturers such as Toyota?
A. Mass marketing.
B. Customized.
C. Differentiated targeting.
D. Production-oriented.
E. Undifferentiated targeting.
The market supply curve is:

A. derived by vertically summing the individual firms' supply curves at each quantity.
B. derived by horizontally summing the individual firms' supply curves at each quantity.
C. derived by vertically summing the individual firms' supply curves at each price.
D. derived by horizontally summing the individual firms supply curves at each price.
E. independent of the individual firms' supply curves.
The plans of buyers and sellers are mutually compatible when:

A. the equilibrium price is established.
B. consumers are able to purchase the quantity of the good that they want to purchase, but
firms cannot sell all they offer for sale.
C. there is excess supply.
D. sellers are able to sell the quantity of the good that they offer for sale, but consumers
cannot purchase all they want to.
E. consumers and sellers agree that the price is fair.
If there is excess supply at the existing price:

A. the quantity supplied rises, but there is no change in the quantity demanded.
B. the price of goods tends to decline.
C. sellers enter the market.
D. the price of goods tends to increase.
E. the quantity demanded rises, but there is no change.
We observe causation, and not just correlation, if:

A. two variables move in the same direction.
B. a change in one variable is responsible for change in some other variable.
C. two variables move in opposite directions.
D. a change in one variable is later followed by a change in some other variable.
E. two variables change at the same time.
The concept of demand refers to the quantity of a good that buyers:

A. would like to buy at a given price.
B. need to maximize satisfaction.
C. are able to purchase in the marketplace.
D. would purchase if they had unlimited income.
E. would be willing to sell at a given price.
Assume that the forces of supply and demand operate freely. All of the following statements,
except one, are true in this situation. Which is not?
A. When the price of a good rises, producers are encouraged to produce more of the good
and consumers are encouraged to purchase less of the goods.
B. Prices measure relative scarcity.
C. Prices provide incentives to use scarce resources efficiently.
D. Prices convey critical economic information.
E. When the price of a good rises, producers are encouraged to produce less of the good and
consumers are encouraged to purchase more of the goods.

A. Psychographic segmentation variables include consumer personality attributes.
B. Psychographic segmentation variables include consumer lifestyles.
C. Psychographic segmentation variables include consumer motives.
Which of the following statements is/are correct?

A. Market potential refers to the minimum possible sales in the total market for a product
category, by all organizations.
B. Market share refers to at least 33.3% of the total segmented market held by an
organization when compared with last year marketing plans.
C. The level of industry marketing activity will generally influence the market potential of a
product category.
A group of customers with heterogeneous needs and wants is known as a:
A. network.
B. consumer market.
C. producer market.
D. market.
An overall market may be able to be broadly broken down into:

A. a micro-environment.
B. consumer and business markets.
C. a marketing mix.
D. a market position.
Woolworths understands that their market is made up of buyers with diverse needs; their
customers have unique wants, needs and demands. The market that Woolworths sells to is
said to be:
A. homogenous.
B. heterogeneous.
C. target markets.
D. mass markets.
E. niche markets.
Which of the following statements provides the best description of the marketing concept of
positioning?
A. The methods followed by an organization when promoting its products in the market.
B. How target markets perceive an organization, its products and brands in relation to
competitors.
C. An organization's market share in relation to competitors.
D. An organization developing an appropriate marketing mix for a target market segment.
E. An organization identifying target markets for its products.

A. An organization can implement sales promotion strategies to offer extra value to
consumers in a bid to increase sales.
B. An organization can implement sales promotion strategies to offer extra value to retailers
and salespeople in a bid to increase sales.
C. An organization can implement sales promotion strategies to smooth demand.
An approach in which a product is promoted to consumers to create demand upward

through the marketing distribution channel is known as a:
A. promotional policy.
B. pull policy.
C. push policy.
D. philanthropic policy.
A product can be:

A. an idea.
B. a good.
C. a service.
D. a person.
E. all of the options listed.
In Australia, Toyota has begun offering fixed price servicing on new cars for the first 3
years. This approach could be best described as differentiating at which level of the total
product concept?
A. Core product.
E. Actual product.
A brand is a collection of ______, such as a name, logo, slogan and design, intended to
create an image in the customer's mind that ________ a product ______ competitors'
products.
A. signs, associates, from
B. symbols, associates, with
C. symbols, differentiates from
D. signs, differentiates, with
The characteristics that formally distinguish services from goods are intangibility,
inseparability, __________ and perishability.
A. benefits
B. heterogeneity
C. homogeneity
D. tangibility
At which product level is a marketer most likely to be able to differentiate a product?

A. Core.
B. Expected.
C. Augmented.
Choose the best answer to complete the following sentence. Product differentiation should:
A. make a product more affordable.
B. make a product more exclusive.
C. aim to create a competitive advantage for the organization.
D. provide ideas for future products.
E. correlate with the organization's promotional campaign.


A. An exchange of value always involves a monetary transaction.
B. Price is a measure of value for buyers.
C. Price is a measure of value for sellers.
D. Not-for-profit organizations may charge a price for their products.
A brand can be:

A. a collection of symbols intended to create an image in a customer's mind.
B. a name that differentiates a product.
C. the bundle of attributes of a product.
D. anything offered to a market.
In the 7Ps framework, distribution is also known as:

A. people.
B. place.
C. partners.
D. product.
E. process.
As an agent for Massey Ferguson tractors, you are classed as an intermediary. Other
intermediaries in the distribution channel for tractors and farm equipment include:
A. wholesalers.
B. retailers.
D. all of the options listed.
A group of customers with similar needs and wants is known as:

A. a population.
B. people.
C. a demographic.
D. a target market.
The number of possible segments grows by multiples when an additional segmentation

variable is added. For example, adding gender .......... the number of market segments.
A. doubles
B. intensifies
C. expands
D. triples
E. strengthen
Market segmentation variables should always:

A. require a lot of market research to obtain.
B. be linked closely to the purchase of the product in question.
C. segment a market geographically.
D. be based on demographics.
E. include a psychographic component.
Market segmentation based on variables, which are the vital and social characteristics of
populations, such as age, education and income, is known as:
B. geographic segmentation.
C. psychographic segmentation.
D. behavioral segmentation.
Toyota uses a target marketing approach to selling cars. Toyota offers a range of cars to the
market. Considering this, which of the following statements is incorrect?
A. An organization following the target marketing concept should target all market
segments.
B. Different target markets may require a different positioning strategy.
C. Market segments should be selected for targeting after an evaluation process.
D. Markets can be segmented many different ways using different segmentation variables.
E. Different market segments may require different marketing mixes.
A common technique used to determine market positioning is:

A. perceptual mapping.
B. the marketing mix.
C. market targeting.
D. market promotion.
E. environmental analysis.
Microeconomics is that branch of economics that focuses primarily on:
A. market economies.
B. the behavior of individual units.
C. centrally planned economies.
D. economic aggregates such as unemployment and inflation.
E. aggregate economic activity.
All of the following, except one, are sources of a shift in a market demand curve for a good.
Which is not?
A. A change in the price of a substitute for that good
B. A change in the price of that good
C. A change in tastes
D. A change in consumers' incomes
E. A change in the price of a complement for that good
A variable is:
A. something that can be expressed mathematically.
B. something that is correlated with something else.
C. anything that can be measured and that changes.
D. something that is not correlated with something else.
E. anything that cannot be measured.
When a market is in equilibrium:

A. there is always excess demand.
B. there is neither excess supply nor excess demand.
C. there is always excess supply.
D. there is both excess supply and excess demand.
E. there is either excess supply or excess demand, but not both.
The individual consumer's demand curve for a good describes the:

A. quantity of the good demanded by the consumer at each level of the consumer's income.
B. quantity of the good demanded by the consumer at each price.
C. average quantity of the good demanded by all consumers.
D. amount of income needed by the consumer to buy different quantities of the good.
E. quantity of the good demanded by all consumers at each price.

B. A good offered to the market for exchange.
smartphones in the minds of your consumers. All mobile phones these days make phone
calls and connect to the internet; so at which product level are you most likely to be able to
A. Core.
B. Expected.
C. Augmented
If even the smallest increase in the price of a product results in the quantity demand to fall
to zero, the demand for this product:
All of the following, except one, will cause a shift in the demand curve for butter. Which
will not?
A. a change in the price of margarine
B. a change in the price of bread
C. increased concern about the health risks associated with eating butter
D. a change in the price of butter
E. a change in consumers' incomes
An increase in the price of an input will normally cause:

B. the supply curve to shift to the right.
C. a firm to increase the amount it offers for sale.
D. the supply curve to shift to the left.
When referring to the market for capital, which of the following terms is out of place?
A. Supply and demand
B. Banks and insurance companies
C. Money
D. Interest
E. Machines and buildings
A successful advertising program for a product will:

A. shift the demand curve for that product leftward.
B. cause a movement down the demand curve for the product.
C. shift the demand curve for that product rightward.
D. cause a movement up the demand curve for the product.
E. have no effect on demand for the product.
The sensitivity of the quantity demanded of product A to changes in its price is likely to be
_______ than the sensitivity of the quantity demanded of product B to changes in its price
when there are ______ close substitutes for product A than there are for product B.
A. lower; more
B. greater; fewer
C. greater; more
D. greater; far fewer
E. lower; many more
A reduction in the price of a complement will normally cause:

B. the demand curve to shift to the left.
D. the demand curve to shift to the right.
Elders provides a comprehensive range of goods and services to farmers. This specialized
approach to target marketing is an example of:
A. one-to-one marketing.
B. mass marketing.
C. product specialization.
D. market specialization.
As a marketer for a major wine company, you implement a marketing program based on
occasion-based segmentation. You market some products as 'gifts', others as 'celebratory'
and others for 'cellaring'. You action is an example of:
Familiar brands such as Arnott's Biscuits generally occupy clear and strong positions (as
perceived by the market). This leads to:
A. A strength because consumers know the product benefits and features.
B. A weakness because this position is difficult to change short term.
C. A limitation because new brands in the market can establish positions based on new
benefits.
In marketing, 'process' refers to the systems used:

A. to create a product offering.
B. to communicate a product offering.
C. to deliver a product offering.
D. to exchange a product offering.
The path from the ___________ or service provider to the end user is known as the
________ channel or marketing channel.
A. distributor, wholesale
B. distributor, distribution
C. manufacturer, distribution
D. manufacturer, production
Which of the following distribution channels is/are logical?

A. Producer, wholesaler, retailer, consumer.
B. Producer, agent/broker, consumer.
C. Producer, consumer.
The characteristic of services which most fundamentally distinguishes them from goods is
their:
A. Benefits.
B. Heterogeneity.
C. Homogeneity.
D. Intangibility.
Answer: D
Promotion includes:
A. Advertising.
B. Advertising and personal selling.
C. Advertising, personal selling and public relations.
D. Advertising, personal selling, public relations and sales promotion.
When buying your first car, you choose to buy a used Mazda 3 from a dealer rather than a
slightly cheaper Mazda 3 advertised privately. Your mum thinks you made a good choice,
but your dad thinks the privately advertised car would have been a better deal. Why is
there a difference in opinion?
A. Value means different things to different people
B. Value can be based on perception
C. Value can be a comparison of the benefits a customer receives from a product in relation
to its price
D. Value can include product quality and after sales service
E. All of the options listed
Successful businesses in the late 1900's were those that adopted a

A. Pure competition strategy
B. Differentiation strategy
C. Market dominance strategy
D. Market orientation strategy
E. Market penetration strategy
Customers are a part of an organization's _____________environment.

A. Internal
B. Micro
C. Macro
D. Internal and macro
E. Customers are not part of the organization's environment
Cultural factors influencing people's attitudes, beliefs, behaviors, preferences, customs and
lifestyles are known as
A. Political forces
B. Economic forces
C. Sociocultural forces
D. Technological forces
E. Environmental forces
Marketing theories draw on many other disciplines including

A. Management
B. Economics
C. Psychology
D. Sociology
E. All of listed options
The marketing process cycle is

A. expensive to implement
B. an ongoing cycle
C. based on competitors’ activities
D. determined by the SWOT model
E. all of the listed options
As part of your marketing PhD you decide to investigate factors affecting people's
attitudes, beliefs, behaviors, preferences, customs and lifestyles. These macro
environmental forces which you investigate are collectively known as
A. Political forces
B. Economic forces
A devaluation of the Australian dollar makes exports cheaper and imports more expensive.
Within the macro-environment, this is known as a(n)
A. political force
B. economic force
C. sociocultural force
D. technological force
E. counter-trade force
At Coca Cola, the marketing department regularly conducts analysis that involves
breaking the marketing environment down into smaller parts in order to better understand
it. This is an example of
A. The PESTEL framework
B. Environmental analysis
C. Situational analysis
D. Marketing planning
E. Situational planning
Which of the following is not a part of an organization's external environment?

A. Customers
B. Competitors
C. The micro-environment
D. Partners
E. None of the options listed
Marketing metrics are measures that are used to

A. Assess the micro-environment
B. Assess the macro-environment
C. Assess marketing performance
D. Assess marketing planning
E. All of the listed options
Which of the following is part of an organization's marketing environment?

A. The organization's micro-environment
B. The organization's macro-environment
C. Any internal or external force that affects the organization's ability to create,
communicate, deliver and exchange offerings of value
D. The organization's internal environment
Your company has decided to investigate its likelihood of success if it expands its operations
from a national company to a multinational company. The key environmental factors that
your company must consider when analyzing this extended marketing environment include
political, economic, _____________, technological, _____________ and legal forces.
A. sociocultural, environmental
B. cultural, environmental
C. global, sociocultural
D. global, environmental
E. social, cultural
Choose the best answer from the options below to complete the following sentence. An
organization chart can be a useful tool to help analyze an organization's
A. market perception
B. marketing mix
C. external environment
D. internal environment
E. sales force
_______________ is considered as the purpose for innovation, whether expressed in growth,
sustainability, improvement of social welfare or in financial terms.
A. Entrepreneurship
B. Corporate venture
C. Creating value
D. Unexpected occurrences
E. Nanotechnology
Turning niches into mass markets is an example of

A. Strategic selection
B. Dynamic capability
C. Cost innovation
D. Meeting social needs
Which of the following combinations best describes incremental innovation?

A. Based on sustained technologies; needs to be nurtured for long periods; creates new
markets
B. Immediate gains; based on disruptive technologies; develops customer loyalty
C. Steady improvements; based on sustained technologies; needs to be nurtured for long
periods
D. Can be rapidly implemented; based on sustained technologies; immediate gains
E. All the listed options
Creative replication of a concept, an existing service or a product are principles for the
Duplication type of
A. Incremental innovation
B. Cost innovation
C. Strategic advantage
D. Paradigm shift
E. Position dimension
Which of the following is not considered a type of incremental innovation?

A. Extension
B. Duplication
C. Reduction
D. Synthesis
Public health care services, such as hospitals, have experienced major improvements in
efficiencies around key targets such as waiting times is a feature of
A. Screening opportunities
B. Cost innovation
C. Innovation in meeting social needs
D. Forced analogy
E. Radical innovation
Providing customization to value customers together with selling high-end products at

mass-market prices are examples of
A. Customer satisfaction
B. Cost innovation
C. Mass marketing
D. Technical innovation
E. Process needs
Which of the following would not normally be considered a radical innovation?

A. The jet turbine engine
B. Integrated circuits
C. Increased color choice on the Volkswagen 'Beetle' car
D. Antibiotic drugs
E. None of the listed options
Zara's (fashion store) how it has used innovation around design and "fast fashion" to
create new opportunities in a crowded and mature marketplace is an aspect of innovation
known as
A. Improving operation
B. Niche marketing
C. Product differentiation
D. Cost innovation
E. New ways of servicing existing markets
_______________ is about making associations, often exploring round the edges of a

problem
A. Divergent thinking
B. Individual creativity
C. Marketing process
D. The context of success
E. Finding resources
Creativity is about
A. Thinking skills
B. Motivation
C. Communication
D. None of the listed options
When people are intrinsically motivated at their workplace, they work towards achieving:
A. A promotion
B. Personal challenge
C. Higher pay
D. All of the options listed
One of the challenges in creativity is that it sometimes involves

A. Seeing things differently
B. Changing perspectives
C. Breaking the rules
During the innovation stage knowledge is further refined through

A. Mind maps
B. Networking
C. Feasibility test
D. Research testing
E. Social networks
Political behavior and groupthink are social pressures that can

A. Damper an individual's creativity
B. Enhance group creativity
C. Improves innovation output
D. Reduces conflicts
E. Assist with strategic innovation
Our ability to think in metaphors and to visualize is strongly linked to
A. Creative personality
B. Innovative logic
C. Pattern strategy
D. Right side of brain
E. Incremental behavior
Innovation managers and practicing entrepreneurs in large businesses have learned from
the world of experience that successful innovators
A. Build dynamic capability
B. Manage innovation as a process
C. Understand different dimensions of innovation
D. None of the options listed
Examples of changes in mental models are

A. Shifts to low-cost airlines, online insurance.
B. Online insurance, new holiday package
C. New jet ferry, a revised university degree
D. All of the listed options
____________ begins with exploration of innovation space: where could we innovate and
why would it be worth doing so?
A. Sources of innovation
B. Cost innovation
C. Entrepreneurship
D. Strategic analysis
E. New product development
Knowledge-based innovations differ from all other innovations due to

A. The time they take
B. Their casualty rates
C. Their predictability
The multipurpose smartphone is an example for which type of innovation?

A. Extension
B. Duplication
C. Synthesis
D. Creative
E. Radical
Innovation can take many forms, all involving a change of some kind. Which of the following is
NOT a form of innovation?
A. Product (or service) innovation - changes in what is offered to the world
B. Price innovation - offering deals, price discounts and price competition
C. Process innovation - changes in the way offerings are created and delivered
D. Position innovation - changes in the context in which innovations are launched
Economists generally share an agreement that ......... accounts for a sizeable proportion of
economic growth.
A. Marketing
B. Scientific research
C. Mining
D. Innovation
E. Entrepreneurship
The action of making an association between two unlike things in order to obtain new
insights is called
A. Forced analogy.
B. Attribute listing.
C. Scenario thinking.
D. Problem reversal.
E. Brainstorming.
The minimum viable product is an approach for

A. Implementing innovation
B. Designing dynamic capabilities
Tidying up an idea and building on their initial insight is known as

A. Problem reversal
B. Mind mapping
C. Validation
D. Positioning
E. Emotional attachment
Turning defeat into victory and figuring out what everybody else is not doing stimulates
our
A. Mind mapping
B. Personality
C. Motivation
D. Creativity
E. Knowledge
Knowledge constitutes the essence of _________ and is intrinsically related to the

creativity-innovation-entrepreneurship process.
A. Abilities
B. Skills
C. Capabilities
Which of the following is not considered a component of creativity?

A. Creative thinking skills
B. Imagination
C. Knowledge
D. Motivation
The right hemisphere of the brain deals with

A. Recognizing
B. Rationality
C. Association
D. Facts
E. Dreams
In a SWOT analysis, an organization's core competencies and competitive advantages
would be classified as
A. Opportunities
B. Strengths
C. Weaknesses
D. Threats
The global financial crisis was an example of what type of macro-environmental force?
A. Political.
B. Sociocultural.
C. Competitive.
D. Economic.
E. Technological
Working for the Aldi supermarket chain, you are very aware of the activities of your
company's competitors - Coles and Woolworths - and find that you frequently make
changes to your business in response to actions they have taken. You also notice that they
react when you make changes to your business offering. This competition is occurring
within the
A. Internal environment
B. Micro-environment
C. The competitive-environment
D. The macro-environment
As the recently appointed marketing manager for a growing fashion brand, you spend your
first few months in the job understanding the business, your competitors businesses and the
marketing environment. The comprehensive understanding you are engaged in is known as
A. Marketing planning
B. Situational analysis
C. The competitive analysis
D. Company analysis
E. Market potential analysis
The marketing department of a large retail company assesses their current situation in
order to clearly state where the company is now. This is an example of the company
A. Conducting a situational analysis
B. Performing marketing planning
C. Deciding organizational objectives
D. Conducting an organizational analysis
E. Assessing past strategies
The rising use of social networking sites could be attributed to

A. Sociocultural forces
B. Competitive forces
C. International forces
D. Legal forces
E. Economic forces
In an attempt to overcome legal regulations, an industry body may attempt to influence which
aspect of its marketing environment?
A. Sociocultural
B. Political
C. Competitive
D. Economic
E. all of the listed option
A degree in Marketing will qualify you for a job in which of the following organizations?
A. Governments
B. Not-for-profit organizations
C. Multinational organizations
D. Large organizations
Customers for not-for-profit organizations or social marketers are known as

A. Consumers
B. Targets
C. Clients
D. Agents
Marketing is considered to be
A. A learning process
B. A science
C. An art
Strengths are the attributes of an organization that

A. are internal factors that are able to be controlled
B. are internal factors that are not able to be controlled
C. are external factors that are able to be controlled
D. are external factors that are not able to be controlled
Cartwrights Law Firm spends time analyzing the political, economic, sociocultural,
technological, environmental and legal factors which are affecting their organization. These
factors form the ___________ environment?
A. Macro
B. Internal
C. Micro
D. Ethical
A market can best be described as

A. A group of customers with similar needs and wants
B. A group of customers with different needs and wants
C. A group of customers living in the same geographic area
D. A group of potential customers within a similar age range
E. A group of potential first-time customers
The issues, problems and difficulties with innovation is

A. Very easy to implement
B. A risky business by its nature
C. There are already many ideas
D. Costs a lot of money
E. Difficult to come up with creativity
Doing what we do better and creating opportunities are considered to be

A. Aspects of innovations
B. Marketing responsibilities
C. Disruptive innovations
D. Incremental creativities
Innovation does not happen in a vacuum, the context of innovation is shaped by

A. A marketing plan
B. Proactive links
C. Influential shareholders
D. The size of the organization
Which of the following would you NOT class as a radical innovation?

A. The fibre tip pen
B. The electric light bulb
C. The laser
D. The photocopier
According to Drucker, which of the following is not considered a source of innovation

within companies or industries?
A. Industry and market changes
B. Process needs
C. Incongruities
D. Perceptual change
E. Unexpected occurrences
Advertising is the transmission of paid messages about an organization, brand or product

to a mass audience.
B. Advertising is generally expensive but offers the potential advantage that it is possible to
reach a large number of people at a relatively low cost per person.
C. Choosing appropriate media makes it possible to aim advertising at potential target
markets
D. The choice of media in which to advertise can positively or negatively impact on a
brand's image.
E. Advertising enables personalization of the marketing message.
Which of the following would be classed as a product differentiator?

A. Features.
B. Quality.
C. Design.
D. Brand.
Coca Cola is available in vending machines, bars and clubs, supermarkets, petrol stations,
corner stores and at sporting events. This approach to market coverage is known as:
C. indirect distribution
'Upsize' deals at fast food restaurants are examples of pricing a product at a moderate level
and then positioning it next to a more expensive model. This is known as:
A. cost-based pricing.
B. price skimming.
C. penetration pricing.
D. reference pricing.
David has decided to buy a new pair of work shoes, so he spends his afternoon shopping for
a new pair. When classifying products, the category of 'shopping products', which includes
shoes, also includes:
B. staple products.
D. none of the options listed.
If a consumer is prepared to spend time comparing competing offerings before making a

purchase decision, the product is most likely to be a(n):
A. unsought product.
B. specialty product.
C. convenience product.
D. shopping product.
E. core product.
Intermediaries in a distribution channel can include:

A. wholesalers.
B. retailers.

relations activity.
Capilano Honey differentiates its product from competing products using packaging, a
fundamental characteristic. This approach could be best described as differentiating at which
level of the total product concept?
A. Core product.
E. Actual product.
While on an overseas holiday, John and Elizabeth decide to hire a car. During their travels,
the car breaks down and they decide that they have to take it to a mechanic. There are
several mechanics in the town that they are in. Which of the following forms of physical
evidence could they use to evaluate each of the mechanics before deciding which one to
choose?
A. Staff uniforms.
B. Shop fittings.
C. Delivery vehicles.
D. Brochures.
Macroeconomics is the branch of economics that focuses primarily on:

A. the behavior of the individual units that make up the total economy.
B. the interactions between buyers and sellers in individual markets.
C. the behavior of buyers and sellers in individual markets.
D. how individual firms make their production decisions.
E. aggregated economic activities.
Markets in which firms sell their output are called:

A. capital markets.
B. stock markets.
C. labor markets.
D. farmers' markets.
E. product markets.
An increase in the price of a substitute product will normally cause:

B. the demand curve to shift to the right.
D. the demand curve to shift to the left.
The curve that describes the quantities of a product that a firm would like to sell at
different prices is called the:
A. demand curve.
B. supply curve.
C. production possibilities curve.
D. budget constraint.
E. opportunity set.
An increase in the price of coffee is likely to result in:

A. a rightward shift in the demand curve for coffee.
B. an increase in the demand for products that are complements to coffee, such as cream.
C. a decline in the demand for products that are substitutes for coffee, such as tea.
D. an increase in the demand for products that are substitutes for coffee, such as tea.
E. a leftward shift in the demand curve for coffee.
A reduction in the price of an input will normally cause:

B. the supply curve to shift to the left.
C. the supply curve to shift to the right.
D. a firm to decrease the amount it offers for sale.
Along an individual demand curve, a reduction in quantity demanded occurs when:

A. price has increased
B. price has decreased.
C. the consumer's income has fallen.
D. the consumer's income has increased.
E. a reduction in price induces the individual to increase consumption.
If the price of a product increases, but the quantity demanded does not decline at all, the
demand for this product in this price range:
Total revenue will decline if the price ________ when the demand curve _______.
A. rises; has unit price elasticity.
B. falls; has unit price elasticity.
C. rises; is price elastic.
D. rises; is price inelastic.
E. falls; is price elastic.
The macroeconomic perspective:

A. involves analysis of the behavior of individual units in the economy.
B. studies how consumers and firms make decisions.
C. involves a detailed study of the product, labor, and capital markets.
D. is a top-down view of the economy.
E. is a bottom-up view of the economy.
The market demand curve is:

A. derived by vertically summing the individual demand curves at each quantity.
B. derived by horizontally summing the individual demand curves at each price.
C. derived by vertically summing the individual demand curves at each price.
D. derived by horizontally summing the individual consumer's demand curves at each
quantity.
E. independent of individual demand curves.
Market _________ involves a systematic examination of the range of possible market

segments, their potential ___________ and revenues, and the relative ability of the
organization to satisfy the expectations of members of these market segments.
A. segmentation, profits
B. targeting, sales volume
C. segmentation, sales volume
D. targeting, profits
A credit union that provides a wide range of financial services to members who are
employed in particular industries would be best described as having:
A. a market specialization.
B. a product specialization.
C. a service specialization.
D. a product-market specialization.
Organizations that pursue a specialization strategy seek to establish a dominant position in

their chosen _________ market.
A. product.
B. consume.
C. producer.
D. niche.
Subaru built its early reputation in Australia by targeting visitors to, and residents of the
snow country. This method of market segmentation could best be described as:
A. geographic.
B. demographic.
C. psychographic.
D. behavioral.
E. geo-psychographic.
Which of the following is not a behavioral segmentation variable?

A. Consumer's benefit expectations of a product.
B. The occasion for which a product may be purchased by a consumer.
C. Heavy, medium or light users of a product.
D. Brand loyal consumers.
E. All of the options listed are behavioral segmentation variables.
Which of the following best describes the broad concept of a market?

A. A group of customers with heterogeneous needs and wants.
B. A group of customers with homogenous needs and wants.
C. The business-to-consumer market.
D. The business-to- business market.
A target marketing strategy in which all marketing efforts are focused on meeting a wide
range of needs within a particular market segment is called:
B. product-market specialization.
C. market specialization.
D. market-product specialization.
There are two steps in the market segmentation phase: ___________ that can be used to
define meaningful market segments; and _____________the market segments so they can
be assessed in the second stage of the target marketing process.
A. market research, surveying
B. market research, profiling
C. identifying variables, profiling
D. identifying variables, surveying
In terms of the total product concept, product differentiation occurs mainly at the
__________level.
A. augmented
B. core
C. expected
D. life cycle
E. growth
Shopping products include:

B. staple products.
D. none of the options listed
Milk could best be described as a product that is ________ distributed.

A. intensively
B. selectively
C. exclusively
D. directly
Boarding your Emirates flight to London, you notice the pilot in his smart uniform and the
flight attendants looking very well dressed. The cabin is quite spacious and there is plenty
of room for your carry-on luggage. From these visual cues you feel reassured and confident
that the flight will be enjoyable. Visual cues are a characteristic of services known as:
A. intangibility.
B. inseparability.
C. heterogeneity.
D. perishability.
E. physical evidence.
Integrated marketing communications (IMC) is the term given to the coordination of

promotional efforts to maximize the communication effect. Its primary goal is:
A. creating and maintaining relationships between the marketing organization and its
stakeholders.
B. to reach a lot of people at a relatively low cost per person.
C. to consistently send the most effective possible message to the target market.
D. offer extra value to resellers, salespeople and consumers in a bid to increase sales.
Apple MacBooks are available from licensed retailers and distributors in Australia.
Retailers are licensed based on reputation and service, adding value to the strong Apple
brand. This approach to market coverage is known as:
C. indirect distribution.
Staple products, impulse products and emergency products are all examples of:
A. convenience products.
B. specialty products.
C. unsought products.
D. shopping products.
A clothing company manufactures a range of underwear, singlets, socks and t-shirts for
both men and women. This range is known as the company's:
B. product item.
C. product line.
D. product mix.
For which of the following segmentation variables is it more likely to be difficult to measure
and obtain accurate data?
A. Demographic variables.
B. Organizational size.
C. Psychographic variables.
D. Geographic variables.
E. All of the options listed are difficult to measure.
When the marketer seeks to ________and ___________those parts of the total market that
it can offer the most_________, the approach is known as the _________ marketing
concept.
A. grow, understand, benefit, total
B. identify, understand, value, target
C. identify, grow, value, total
D. identify, understand, value, total
The broad market segments of 'Baby Boomers', 'Generation X', 'Generation Y' and
Generation Z' have been created primarily based upon:
A. psychographic variables.
B. behavioral variables.
C. demographic variables.
D. geo-demographic variables.
Which of the following statements is false?

A. A product, organization or brand may be able to be repositioned.
B. The positioning of an organization, its product/s and brand/s should be consistently
reinforced.
C. The positioning of an organization, its product/s and brand/s should be changed regularly.
D. Positioning is based on customer perceptions as well as reality.
E. How an organization wishes to position its product offering to a target market should
influence the development of its marketing mix for that target market.
An organization that segments its market by offering rewards based on the amount of
points accumulated on its loyalty card would be best described as utilizing:
D. geo-demographic segmentation.

A. A market segment has distinctive needs, but more than 33.3% of the members of the segment
have similar needs.
B. A market customized target segment has similar needs, but the members of the segment
have distinctive needs.
C. An architect designing a couple's 'dream' home is an example of customized marketing.
D. A customized market segment has between 49% to 66.6% of potential needs
As an importer of surfing accessories, your company focuses its marketing operations in

the warmer coastal regions of Australia. This action is an example of:
You open a liquor store, selling only boutique wines (produced in smaller quantities and as
such not sold through major retailers) from the Hunter Valley in NSW. Your specialized
approach to the target market is:
B. market specialization.
C. product-market specialization.
D. differentiated target marketing
The demand curve is downward sloping, which means that the quantity demanded for a
good ___ when its price ______.
A. rises; rises
B. falls; falls
C. is unchanged; falls
D. is unchanged; rises
E. falls; rises
Along an individual firm's supply curve, an increase in a quantity supplied occurs when:
A. price has increased.
B. price has declined.
C. the firm's profit has fallen.
D. the wage rate paid to the firm's workers increases.
E. the firm is induced to offer more for sale at a lower price
If the demand for a product is price elastic, total revenue will:

A. be unchanged regardless of the direction of the price change.
B. fall if price is reduced.
C. increase if price is increased.
D. increase if price is reduced.
E. increase regardless of the direction of the price change.
All of the following, except one, will increase the quantity of butter supplied at each price.
Which will not?
A. A climate change that improves cows' milk yield
B. Increased concern about the health risks associated with eating butter
C. A fall in the price of milk
D. A new discovery that makes it cheaper to make butter from milk
E. A reduction in the price of milking machines
If a firm raises the price of its product and finds that total revenue has fallen, this indicates
that:
C. the demand curve for the product is downward sloping.
D. the price elasticity is greater than one.
E. demand for the product is price elastic
An increase in the price of butter is likely to result in:

A. a movement along the demand curve for butter such that quantity demanded increases.
B. a rightward shift in the demand curve for margarine.
C. an increase in the quantity of butter demanded.
D. a leftward shift in the demand curve for margarine.
E. a movement along the demand curve for margarine such that quantity demanded
increases.
At the equilibrium price:

A. price will tend to fall.
B. the quantity supplied exceeds the quantity demanded.
C. price will tend to increase.
E. there is no reason for the price to change
An individual is typically willing to purchase more of a good at lower prices, which implies
that the individual demand curve will be:
A. horizontal.
B. vertical.
C. upward sloping.
D. downward sloping.
E. of indeterminate shape.
If a firm lowers the price of its product and finds that total revenue has fallen, this
indicates that:
B. demand for the product is price elastic.
C. demand for the product has unit price elasticity.
E. the price elasticity is greater than 1.
If a firm raises the price of its product and finds that total revenue has increased, this
indicates that:
A. demand for its product is price elastic.
C. demand for the product is price inelastic.
E. the price elasticity is less than 1.
In the labor market, households:

A. lend labor services.
B. sell labor services.
C. buy firms' output.
D. buy and sell labor services.
E. lend money to firms.
Diamonds command a higher price than water because they have a:

A. higher value in use.
B. lower value in exchange.
C. higher marginal value.
D. lower value in use.
E. higher total value.
A technological improvement will normally cause:

A. the supply curve to shift to the right.
B. a movement along the supply curve such that quantity supplied declines.
C. an individual to increase consumption of any goods she purchases.
D. a movement along the supply curve such that quantity supplied increases.
E. the supply curve to shift to the left.
Households are ____ in the product market, ____ in the labor market, and ____ in the
capital market.
A. lenders; consumers; sellers
B. consumers; lenders; sellers
C. consumers; sellers; lenders
D. consumers; sellers; consumers
E. consumers; buyers; borrowers
At any price above the equilibrium price:
A. the sellers can sell all they offer for sale.
B. the quantity supplied is greater than the quantity demanded.
C. the price will rise.
E. consumers cannot buy all that they wish to.
Answer: B
If the market price of a good is such that consumers wish to buy less of the good than firms
are offering for sale, the excess ___ will cause prices to ___.
A. demand; fall
B. supply; rise
C. price; fall
D. supply; fall
E. demand; rise
The primary focus of economics is on:

A. government decisions about which wants have to go unsatisfied.
B. implementing a market system.
C. choices that must be made.
D. rising prices.
E. providing consumers with perfect information.
The total product concept broadly describes a product as a bundle of attributes, creating
value for the customer. Specifically, a product can be defined as the core product, expected
product, __________ product and __________ product.
A. associated, final
B. augmented, potential
C. augmented, serviced
D. associated, finished
A target market can best be described as:

A. the total market for a product.
B. a group of customers with different needs and wants.
C. a group of customers with similar needs and wants.
D. customers who currently purchase an organization's products.
E. customers who don't currently purchase an organization's products.
Apple and Virgin are two companies who frequently use public relations campaigns to
generate awareness of and interest in the products and services they offer to the market.
Public relations campaigns such as those run by Apple and Virgin have a number of
characteristics, but these characteristics do not include which of the following statements?
relations activity.
Big Australian retail outlets such as Kmart, Big W and Target stock a wide range of
consumer products. The consumer products stocked by these retailers can be best
categorized as:
A. shopping, convenience and specialty products.
B. shopping, convenience and unsought products.
C. shopping, convenience, specialty and unsought products.
D. shopping, convenience, core and augmented products.
E. shopping, convenience, specialty and core products.
Which of the following best describes the concept of product differentiation?

A. How a product evolves as it moves from one phase of the product life cycle to the next.
B. The creation of products and product attributes that distinguish one product from another.
C. The creation of physical goods that are distinguished from competitor's physical goods.
D. The creation of services that are distinguished from competitor's services.
A dairy company manufactures a range of flavored skim milks. This range is known as the
company's:
B. product item.
C. product line.
D. product mix.


As a marketing manager, you undertake research to understand how potential buyers see
your brand. Your research is aiming to identify your brand's:
A. position.
B. value.
C. benefit.
D. potential.
A. Core.
B. Expected.
C. Augmented.
Evaluating and selecting market segments is part of the ____________ stage of the target
marketing process.
A. segmentation
B. positioning
C. targeting
D. final
E. first
A. Mass marketing is best suited to situations where buyers have common wants, needs and
demands.
B. Target marketing is best suited to situations where subgroups in the market can be
identified that have similar characteristics.
C. One-to-one marketing is best suited to situations where buyers have unique wants, needs
and demands.
Which strategy would most accurately describe the marketing efforts of a major car
manufacturers such as Toyota?
A. Mass marketing.
B. Customized.
C. Differentiated targeting.
D. Production-oriented.
E. Undifferentiated targeting.
The market supply curve is:

A. derived by vertically summing the individual firms' supply curves at each quantity.
B. derived by horizontally summing the individual firms' supply curves at each quantity.
C. derived by vertically summing the individual firms' supply curves at each price.
D. derived by horizontally summing the individual firms supply curves at each price.
E. independent of the individual firms' supply curves.
The plans of buyers and sellers are mutually compatible when:

A. the equilibrium price is established.
B. consumers are able to purchase the quantity of the good that they want to purchase, but
firms cannot sell all they offer for sale.
C. there is excess supply.
D. sellers are able to sell the quantity of the good that they offer for sale, but consumers
cannot purchase all they want to.
E. consumers and sellers agree that the price is fair.
If there is excess supply at the existing price:

A. the quantity supplied rises, but there is no change in the quantity demanded.
B. the price of the good tends to decline.
C. sellers enter the market.
D. the price of the good tends to increase.
E. the quantity demanded rises, but there is no change.
We observe causation, and not just correlation, if:

A. two variables move in the same direction.
B. a change in one variable is responsible for change in some other variable.
C. two variables move in opposite directions.
D. a change in one variable is later followed by a change in some other variable.
E. two variables change at the same time.
The concept of demand refers to the quantity of a good that buyers:

A. would like to buy at a given price.
B. need to maximize satisfaction.
C. are able to purchase in the marketplace.
D. would purchase if they had unlimited income.
E. would be willing to sell at a given price.
Assume that the forces of supply and demand operate freely. All of the following
statements, except one, are true in this situation. Which is not?
A. When the price of a good rises, producers are encouraged to produce more of the good
and consumers are encouraged to purchase less of the good.
B. Prices measure relative scarcity.
C. Prices provide incentives to use scarce resources efficiently.
D. Prices convey critical economic information.
E. When the price of a good rises, producers are encouraged to produce less of the good and
consumers are encouraged to purchase more of the good.

A. Psychographic segmentation variables include consumer personality attributes.
B. Psychographic segmentation variables include consumer lifestyles.
C. Psychographic segmentation variables include consumer motives.
Which of the following statements is/are correct?

A. Market potential refers to the minimum possible sales in the total market for a product
category, by all organizations.
B. Market share refers to at least 33.3% of the total segmented market held by an
organization when compared with last year marketing plans.
C. The level of industry marketing activity will generally influence the market potential of a
product category.
A group of customers with heterogeneous needs and wants is known as a:

A. network.
B. consumer market.
C. producer market.
D. market.
An overall market may be able to be broadly broken down into:

A. a micro-environment.
B. consumer and business markets.
C. a marketing mix.
D. a market position.
Woolworths understands that their market is made up of buyers with diverse needs; their
customers have unique wants, needs and demands. The market that Woolworths sells to is
said to be:
A. homogenous.
B. heterogeneous.
C. target markets.
D. mass markets.
E. niche markets.
Which of the following statements provides the best description of the marketing concept of
positioning?
A. The methods followed by an organization when promoting its products in the market.
B. How target markets perceive an organization, its products and brands in relation to
competitors.
C. An organization's market share in relation to competitors.
D. An organization developing an appropriate marketing mix for a target market segment.
E. An organization identifying target markets for its products.

A. An organization can implement sales promotion strategies to offer extra value to
consumers in a bid to increase sales.
B. An organization can implement sales promotion strategies to offer extra value to retailers
and salespeople in a bid to increase sales.
C. An organization can implement sales promotion strategies to smooth demand.
An approach in which a product is promoted to consumers to create demand upward

through the marketing distribution channel is known as a:
A. promotional policy.
B. pull policy.
C. push policy.
D. philanthropic policy.
A product can be:

A. an idea.
B. a good.
C. a service.
D. a person.
In Australia, Toyota has begun offering fixed price servicing on new cars for the first 3
years. This approach could be best described as differentiating at which level of the total
product concept?
A. Core product.
E. Actual product.
Answer: C
A brand is a collection of ______, such as a name, logo, slogan and design, intended to
create an image in the customer's mind that ________ a product ______ competitors'
products.
A. signs, associates, from
B. symbols, associates, with
C. symbols, differentiates from
D. signs, differentiates, with
The characteristics that formally distinguish services from goods are intangibility,
inseparability, __________ and perishability.
A. benefits
B. heterogeneity
C. homogeneity
D. tangibility
At which product level is a marketer most likely to be able to differentiate a product?

A. Core.
B. Expected.
C. Augmented.
Choose the best answer to complete the following sentence. Product differentiation should:
A. make a product more affordable.
B. make a product more exclusive.
C. aim to create a competitive advantage for the organization.
D. provide ideas for future products.
E. correlates with the organization's promotional campaign.


A. An exchange of value always involves a monetary transaction.
B. Price is a measure of value for buyers.
C. Price is a measure of value for sellers.
D. Not-for-profit organizations may charge a price for their products.
A brand can be:

A. a collection of symbols intended to create an image in a customer's mind.
B. a name that differentiates a product.
C. the bundle of attributes of a product.
D. anything offered to a market.
In the 7Ps framework, distribution is also known as:

A. people.
B. place.
C. partners.
D. product.
E. process.
As an agent for Massey Ferguson tractors, you are classed as an intermediary. Other
intermediaries in the distribution channel for tractors and farm equipment include:
A. wholesalers.
B. retailers.
D. all of the options listed.
A group of customers with similar needs and wants is known as:

A. population.
B. people.
C. a demographic.
D. a target market.
The number of possible segments grows by multiples when an additional segmentation

variable is added. For example, adding gender .......... the number of market segments.
A. doubles
B. intensifies
C. expands
D. triples
E. strengthen
Market segmentation variables should always:

A. requires a lot of market research to obtain.
B. be linked closely to the purchase of the product in question.
C. segment a market geographically.
D. be based on demographics.
E. include a psychographic component.
Market segmentation based on variables, which are the vital and social characteristics of
populations, such as age, education and income, is known as:
B. geographic segmentation.
C. psychographic segmentation.
D. behavioral segmentation.
Toyota uses a target marketing approach to selling cars. Toyota offers a range of cars to the
market. Considering this, which of the following statements is incorrect?
A. An organization following the target marketing concept should target all market
segments.
B. Different target markets may require a different positioning strategy.
C. Market segments should be selected for targeting after an evaluation process.
D. Markets can be segmented many different ways using different segmentation variables.
E. Different market segments may require different marketing mixes.
A common technique used to determine market positioning is:

A. perceptual mapping.
B. the marketing mix.
C. market targeting.
D. market promotion.
E. environmental analysis.
Microeconomics is that branch of economics that focuses primarily on:

A. market economies.
B. the behavior of individual units.
C. centrally planned economies.
D. economic aggregates such as unemployment and inflation.
E. aggregate economic activity.
All of the following, except one, are sources of a shift in a market demand curve for a good.
Which is not?
A. A change in the price of a substitute for that good
B. A change in the price of that good
C. A change in tastes
D. A change in consumers' incomes
E. A change in the price of a complement for that good
A variable is:
A. something that can be expressed mathematically.
B. something that is correlated with something else.
C. anything that can be measured and that changes.
D. something that is not correlated with something else.
E. anything that cannot be measured.
When a market is in equilibrium:
A. there is always excess demand.
B. there is neither excess supply nor excess demand.
C. there is always excess supply.
D. there is both excess supply and excess demand.
E. there is either excess supply or excess demand, but not both.
The individual consumer's demand curve for a good describes the:

A. quantity of the good demanded by the consumer at each level of the consumer's income.
B. quantity of the good demanded by the consumer at each price.
C. average quantity of the goods demanded by all consumers.
D. amount of income needed by the consumer to buy different quantities of the good.
E. quantity of the good demanded by all consumers at each price.

A. Core.
B. Expected.
C. Augmented
If even the smallest increase in the price of a product results in the quantity demand to fall
to zero, the demand for this product:
All of the following, except one, will cause a shift in the demand curve for butter. Which
will not?
A. a change in the price of margarine
B. a change in the price of bread
C. increased concern about the health risks associated with eating butter
D. a change in the price of butter
E. a change in consumers' incomes
An increase in the price of an input will normally cause:

B. the supply curve to shift to the right.
C. a firm to increase the amount it offers for sale.
D. the supply curve to shift to the left.
When referring to the market for capital, which of the following terms is out of place?
A. Supply and demand
B. Banks and insurance companies
C. Money
D. Interest
E. Machines and buildings
A successful advertising program for a product will:

A. shift the demand curve for that product leftward.
B. cause a movement down the demand curve for the product.
C. shift the demand curve for that product rightward.
D. cause a movement up the demand curve for the product.
E. have no effect on demand for the product.
The sensitivity of the quantity demanded of product A to changes in its price is likely to be
_______ than the sensitivity of the quantity demanded of product B to changes in its price
when there are ______ close substitutes for product A than there are for product B.
A. lower; more
B. greater; fewer
C. greater; more
D. greater; far fewer
E. lower; many more
A reduction in the price of a complement will normally cause:

B. the demand curve to shift to the left.
D. the demand curve to shift to the right.
Elders provides a comprehensive range of goods and services to farmers. This specialized
approach to target marketing is an example of:
A. one-to-one marketing.
B. mass marketing.
C. product specialization.
D. market specialization.
As a marketer for a major wine company, you implement a marketing program based on
occasion-based segmentation. You market some products as 'gifts', others as 'celebratory'
and others for 'cellaring'. You action is an example of:
Familiar brands such as Arnott's Biscuits generally occupy clear and strong positions (as
perceived by the market). This leads to:
A. A strength because consumers know the product benefits and features.
B. A weakness because this position is difficult to change short term.
C. A limitation because new brands in the market can establish positions based on new
benefits.
In marketing, 'process' refers to the systems used:

A. to create a product offering.
B. to communicate a product offering.
C. to deliver a product offering.
D. to exchange a product offering.
The path from the ___________ or service provider to the end user is known as the
________ channel or marketing channel.
A. distributor, wholesale
B. distributor, distribution
C. manufacturer, distribution
D. manufacturer, production
Which of the following distribution channels is/are logical?

A. Producer, wholesaler, retailer, consumer.
B. Producer, agent/broker, consumer.
C. Producer, consumer.
The characteristic of services which most fundamentally distinguishes them from goods is
their:
A. Benefits.
B. Heterogeneity.
C. Homogeneity.
D. Intangibility.
Promotion includes:
A. Advertising.
B. Advertising and personal selling.
C. Advertising, personal selling and public relations.
D. Advertising, personal selling, public relations and sales promotion.
When buying your first car, you choose to buy a used Mazda 3 from a dealer rather than a
slightly cheaper Mazda 3 advertised privately. Your mum thinks you made a good choice,
but your dad thinks the privately advertised car would have been a better deal. Why is there a
difference in opinion?
A. Value means different things to different people
B. Value can be based on perception
C. Value can be a comparison of the benefits a customer receives from a product in relation
to its price
D. Value can include product quality and after sales service
Successful businesses in the late 1900's were those that adopted a

A. Pure competition strategy
B. Differentiation strategy
C. Market dominance strategy
D. Market orientation strategy
E. Market penetration strategy
Customers are a part of an organization's _____________environment.

A. Internal
B. Micro
C. Macro
D. Internal and macro
E. Customers are not part of the organization's environment
Cultural factors influencing people's attitudes, beliefs, behaviors, preferences, customs and
lifestyles are known as
A. Political forces
B. Economic forces
Marketing theories draw on many other disciplines including

A. Management
B. Economics
C. Psychology
D. Sociology
E. All of listed options
The marketing process cycle is

A. expensive to implement
B. an ongoing cycle
C. based on competitors’ activities
D. determined by the SWOT model
E. all of the listed options
As part of your marketing PhD you decide to investigate factors affecting people's attitudes,
beliefs, behaviors, preferences, customs and lifestyles. These macro environmental forces
which you investigate are collectively known as
A. Political forces
B. Economic forces
Answer: C
A devaluation of the Australian dollar makes exports cheaper and imports more expensive.
Within the macro-environment, this is known as a(n)
A. political force
B. economic force
C. sociocultural force
D. technological force
E. countertrade force
At Coca Cola, the marketing department regularly conducts analysis that involves
breaking the marketing environment down into smaller parts in order to better understand
it. This is an example of
A. The PESTEL framework
B. Environmental analysis
D. Marketing planning
E. Situational planning
Which of the following is not a part of an organization's external environment?

A. Customers
B. Competitors
C. The micro-environment
D. Partners
Marketing metrics are measures that are used to

A. Assess the micro-environment
B. Assess the macro-environment
C. Assess marketing performance
D. Assess marketing planning
Which of the following is part of an organization's marketing environment?

A. The organization's micro-environment
B. The organization's macro-environment
C. Any internal or external force that affects the organization's ability to create,
communicate, deliver and exchange offerings of value
D. The organization's internal environment
Your company has decided to investigate its likelihood of success if it expands its operations
from a national company to a multinational company. The key environmental factors that
your company must consider when analyzing this extended marketing environment include
political, economic, _____________, technological, _____________ and legal forces.
A. sociocultural, environmental
B. cultural, environmental
C. global, sociocultural
D. global, environmental
E. social, cultural
Choose the best answer from the options below to complete the following sentence. An
organization chart can be a useful tool to help analyze an organization's
A. market perception
B. marketing mix
C. external environment
D. internal environment
E. sales force
_______________ is considered as the purpose for innovation, whether expressed in growth,

sustainability, improvement of social welfare or in financial terms.
A. Entrepreneurship
B. Corporate venture
C. Creating value
D. Unexpected occurrences
E. Nanotechnology
Turning niches into mass markets is an example of

A. Strategic selection
B. Dynamic capability
C. Cost innovation
D. Meeting social needs
Which of the following combinations best describes incremental innovation?

A. Based on sustained technologies; needs to be nurtured for long periods; creates new
markets
periods
Creative replication of a concept, an existing service or a product are principles for the
Duplication type of
A. Incremental innovation
B. Cost innovation
C. Strategic advantage
D. Paradigm shift
E. Position dimension
Which of the following is not considered a type of incremental innovation?

A. Extension
B. Duplication
C. Reduction
D. Synthesis
Public health care services, such as hospitals, have experienced major improvements in
efficiencies around key targets such as waiting times is a feature of
A. Screening opportunities
B. Cost innovation
C. Innovation in meeting social needs
D. Forced analogy
Providing customization to value customers together with selling high-end products at

mass-market prices are examples of
A. Customer satisfaction
B. Cost innovation
C. Mass marketing
D. Technical innovation
E. Process needs
Which of the following would not normally be considered a radical innovation?

A. The jet turbine engine
B. Integrated circuits
C. Increased color choice on the Volkswagen 'Beetle' car
D. Antibiotic drugs
Zara's (fashion store) how it has used innovation around design and "fast fashion" to
create new opportunities in a crowded and mature marketplace is an aspect of innovation
known as
A. Improving operation
B. Niche marketing
C. Product differentiation
D. Cost innovation
E. New ways of servicing existing markets
_______________ is about making associations, often exploring round the edges of a
problem
A. Divergent thinking
B. Individual creativity
C. Marketing process
D. The context of success
E. Finding resources
Creativity is about
A. Thinking skills
B. Motivation
C. Communication
When people are intrinsically motivated at their workplace, they work towards achieving:
A. A promotion
B. Personal challenge
C. Higher pay
One of the challenges in creativity is that it sometimes involves

A. Seeing things differently
B. Changing perspectives
C. Breaking the rules

A. Mind maps
B. Networking
C. Feasibility test
D. Research testing
E. Social networks
Political behavior and groupthink are social pressures that can

A. Damper an individual's creativity
C. Improves innovation output
D. Reduces conflicts
E. Assist with strategic innovation
Our ability to think in metaphors and to visualize is strongly linked to

A. Creative personality
B. Innovative logic
C. Pattern strategy
D. Right side of brain
E. Incremental behavior
Innovation managers and practicing entrepreneurs in large businesses have learned from
the world of experience that successful innovators
A. Build dynamic capability
B. Manage innovation as a process
C. Understand different dimensions of innovation
Examples of changes in mental models are

A. Shifts to low-cost airlines, online insurance.
B. Online insurance, new holiday package
C. New jet ferry, a revised university degree
____________ begins with exploration of innovation space: where could we innovate and
why would it be worth doing so?
A. Sources of innovation
B. Cost innovation
C. Entrepreneurship
D. Strategic analysis
E. New product development
Knowledge-based innovations differ from all other innovations due to

A. The time they take
B. Their casualty rates
C. Their predictability
The multipurpose smartphone is an example for which type of innovation?

A. Extension
B. Duplication
C. Synthesis
D. Creative
E. Radical
Innovation can take many forms, all involving a change of some kind. Which of the following is
NOT a form of innovation?
A. Product (or service) innovation - changes in what is offered to the world
B. Price innovation - offering deals, price discounts and price competition
C. Process innovation - changes in the way offerings are created and delivered
D. Position innovation - changes in the context in which innovations are launched
Economists generally share an agreement that ......... accounts for a sizeable proportion of
economic growth.
A. Marketing
B. Scientific research
C. Mining
D. Innovation
E. Entrepreneurship
The action of making an association between two unlike things in order to obtain new
insights is called
A. Forced analogy.
B. Attribute listing.
C. Scenario thinking.
D. Problem reversal.
E. Brainstorming.
The minimum viable product is an approach for

A. Implementing innovation
B. Designing dynamic capabilities
Tidying up an idea and building on their initial insight is known as

A. Problem reversal
B. Mind mapping
C. Validation
D. Positioning
E. Emotional attachment
Turning defeat into victory and figuring out what everybody else is not doing stimulates
our
A. Mind mapping
B. Personality
C. Motivation
D. Creativity
E. Knowledge
Knowledge constitutes the essence of _________ and is intrinsically related to the

creativity-innovation-entrepreneurship process.
A. Abilities
B. Skills
C. Capabilities
Which of the following is not considered a component of creativity?

A. Creative thinking skills
B. Imagination
C. Knowledge
D. Motivation
The right hemisphere of the brain deals with

A. Recognizing
B. Rationality
C. Association
D. Facts
E. Dreams
In a SWOT analysis, an organization's core competencies and competitive advantages

would be classified as
A. Opportunities
B. Strengths
C. Weaknesses
D. Threats
The global financial crisis was an example of what type of macro-environmental force?
A. Political.
B. Sociocultural.
C. Competitive.
D. Economic.
E. Technological
Working for the Aldi supermarket chain, you are very aware of the activities of your
company's competitors - Coles and Woolworths - and find that you frequently make
changes to your business in response to actions they have taken. You also notice that they
react when you make changes to your business offering. This competition is occurring
within the
A. Internal environment
B. Micro-environment
C. The competitive-environment
D. The macro-environment
As the recently appointed marketing manager for a growing fashion brand, you spend your
first few months in the job understanding the business, your competitors businesses and the
marketing environment. The comprehensive understanding you are engaged in is known as
A. Marketing planning
C. The competitive analysis
D. Company analysis
E. Market potential analysis
The marketing department of a large retail company assesses their current situation in order
to clearly state where the company is now. This is an example of the company
A. Conducting a situational analysis
B. Performing marketing planning
C. Deciding organizational objectives
D. Conducting an organizational analysis
E. Assessing past strategies
The rising use of social networking sites could be attributed to

A. Sociocultural forces
B. Competitive forces
C. International forces
D. Legal forces
E. Economic forces
In an attempt to overcome legal regulations, an industry body may attempt to influence which
aspect of its marketing environment?
A. Sociocultural
B. Political
C. Competitive
D. Economic
E. all of the listed option
A degree in Marketing will qualify you for a job in which of the following organizations?
A. Governments
B. Not-for-profit organizations
C. Multinational organizations
D. Large organizations
Customers for not-for-profit organizations or social marketers are known as

A. Consumers
B. Targets
C. Clients
D. Agents
Marketing is considered to be
A. A learning process
B. A science
C. An art
Strengths are the attributes of an organization that

A. are internal factors that are able to be controlled
B. are internal factors that are not able to be controlled
C. are external factors that are able to be controlled
D. are external factors that are not able to be controlled
Cartwrights Law Firm spends time analyzing the political, economic, sociocultural,
technological, environmental and legal factors which are affecting their organization. These
factors form the ___________ environment?
A. Macro
B. Internal
C. Micro
D. Ethical
A market can best be described as

A. A group of customers with similar needs and wants
B. A group of customers with different needs and wants
C. A group of customers living in the same geographic area
D. A group of potential customers within a similar age range
E. A group of potential first-time customers
The issues, problems and difficulties with innovation is

A. Very easy to implement
B. A risky business by its nature
C. There are already many ideas
D. Costs a lot of money
E. Difficult to come up with creativity
Doing what we do better and creating opportunities are considered to be

A. Aspects of innovations
B. Marketing responsibilities
C. Disruptive innovations
D. Incremental creativities
Innovation does not happen in a vacuum, the context of innovation is shaped by

A. A marketing plan
B. Proactive links
C. Influential shareholders
D. The size of the organization
Which of the following would you NOT class as a radical innovation?

A. The fiber tip pen
B. The electric light bulb
C. The laser
D. The photocopier
According to Drucker, which of the following is not considered a source of innovation

within companies or industries?
A. Industry and market changes
B. Process needs
C. Incongruities
D. Perceptual change
E. Unexpected occurrences
Situational analysis, together with the organization’s objectives form the basis for
developing the marketing plan. Marketing plans are detailed documents; however,
commonly, decision makers only read which section?
A. The introduction
B. The marketing mix strategy
C. The executive summary
D. The conclusion and future recommendations
When using the PESTEL framework, marketers are investigating

A. Internal forces
B. Macro-environmental forces
C. Micro-environmental forces
D. Competitive forces
E. Total market
Marketing metrics' underlying principles are that metrics should be linked to

A. Organizational objectives
C. Strategy
D. Market position
E. Investment analysis
Which of the following would not be a part of an organization's micro-environment?

A. Competitors
B. Suppliers
C. Customers
D. The economy
E. Retailers
An organization recognizing the aging population and offering a seniors' discount for
older customers is most likely to be responding to
A. Technological forces
B. Political forces
D. Legal forces
Each year the Australian department store Myer holds a fashion parade as a public
relations event to launch the next season's fashion. Along with the media, they invite key
stakeholders such as their most valuable customers. These customers can best be described
as people who
A. Purchase products for their own or someone else's use
B. Actually use a purchased good or service
C. Will potentially purchase a Myer’s product
D. Have occasionally entered a Myer’s premises
You purchase a can of drink for a friend. This makes you a

A. Consumer
B. Customer and consume
C. Partner
D. Customer
Which of these is the aim of marketing?

A. To maximize profits for the business owners
B. To develop organizational goals
C. To develop mutually beneficial exchanges
D. To organize the various functions efficiently and effectively
SWOT is short for

A. Situation, weakness, opportunities and threats
B. Strengths, weaknesses, opportunities and threats
C. Situation, weaknesses, opportunities and threats
D. Strengths, weakness, opposition and threats
E. Strengths, weakness, openness and threats
Quantity of ideas is an important rule to follow in

A. New product development
B. Product feasibility
C. Brainstorming
D. Market feasibility
Chinese thinker Lao Tzu philosophy maxims often expressed all behavior consists of
A. Greed
B. Opposites
C. Emotions
D. Rewards
E. Ideas
Which of the following is not considered a factor that influences creativity?

A. Encouragement of creativity
B. Autonomy
C. Resources
D. Pressures
Ensuring all the possible elements of a problem are examined is

A. Validation
B. Cost innovation
C. Strategic implementation
D. Attribute listing
E. Building dynamic capability
Which of the following combinations best describes disruptive innovation?

A. Experimentation; needs to be nurtured for long periods; creates new markets
periods
The 'back-scratcher' approach works best in which of the following circumstances?

A. When target customers don't need and don't value all the performance that can be packed
into products, and when existing competitors don't focus on low-end customs.
B. When customers are frustrated by their inability to get a job done, and competitors are
either fragmented or have a disability that prevents them from responding.
C. When customers are locked out of a market because they lack skills, access or wealth.
Competitors ignore initial developments because they take place in seemingly unpromising
markets.
D. None of the listed options.
E. All of the listed options.
Entrepreneurship can occur with little, if any,

A. Marketing
B. Innovation
C. Strategy
D. Resources
Creating effective networks, outsourcing and coordination of a virtual organization is an

example of
A. Creating dynamic capability
B. Strategic advantage
C. Meeting social needs
D. Creating social value
E. Perceptual changes
Rethinking of services and meeting social needs are aspects of
A. Positioning
B. Innovation
C. Disruptive creativity
D. Identifying opportunities
E. Incongruities
If innovation is only seen as associated with key individuals, it will

A. Fail to utilize the creativity of the remainder employees
B. Create the "not invented here" effect
C. Produce the products that the market does not want
D. Create unprofitable outcomes for the firm
Which of the following is NOT an example of product innovation?

A. A new toothpaste
B. A new car design
C. A new version of the iPod
D. Computer-control of manufacturing operations
An organization that outsources functions that can be done more efficiently by specialist
external providers is shifting those functions from
A. its microenvironment to its macro environment
B. its internal environment to its microenvironment
C. its internal environment to its macro environment
D. its macro environment to its microenvironment
Factors that are beyond the organization's direct control, though the organization may be
able to have some influence over them, are
A. Threats and weaknesses
B. Weaknesses and opportunities
C. Opportunities and threats
D. Opportunities and strengths
E. Strengths and weaknesses
As the marketing manager of Cadbury Chocolate in Australia, you regularly receive

reports on your products' brand equity, customer satisfaction, and market share data.
These figures are all examples of
A. Marketing metrics
B. A situational analysis
C. Marketing planning
D. An environmental analysis
E. The marketing environment
Internal marketing is practiced through internal

A. Communications
B. Market research
C. Training
D. All the listed options
As part of their regular SWOT analysis, Dell computers reviews their strengths; the attributes
of Dell computers that
A. Are internal factors that are able to be controlled
B. Are internal factors that are not able to be controlled
C. Are external factors that are able to be controlled
D. Are external factors that are not able to be controlled
Marketing is viewed by many organizations largely as

A. An investment rather than as a cost
B. A sales function rather than as an investment
C. A cost center rather than as a sales
D. A cost rather than as an investment
Which phase of the marketing process explains why car marketers, for example, would access
market insight reports from a market research company such as the Nielsen Company?
A. Understand
B. Create
C. Communicate
D. Deliver
E. Exchange
Value refers to
A. Bargain pricing
B. Economic benefit
C. Total offering
E. Competitive advantage
The successive stages of ideas generation, ideas evaluation and ideas implantation
A. Can overlap
B. Can be non-linear
C. Can be rearranged
D. All the listed options
Diversity in network ties is essential for would-be entrepreneurs as it widens the scope of
information about
A. Potential innovation
B. Business locations
C. Assistance schemes
D. Sources of capital
How many opportunities do not pass the product feasibility test because the innovation is
not genuinely novel, it cannot be patented or the entrepreneur does own the technology or
somebody else, somewhere else has already disclosed and/or patented it?
A. Less than 25%
B. About 50%
C. More than 75%
D. 95%
E. 10%
A rule of thumb is that new technology should have at least ________ feature/s that
promise/s to be ten times better than its rivals.
A. Three
B. One
C. Five
D. Two
E. Four
Multiple resources around the problem and volume of ideas can

A. Reduce a group’s innovation
C. Assist in innovation output
D. Reduce conflicts
E. Assist with strategic incubation
Occasional flashes of inspiration and long periods of incremental improvements are

patterns for
A. Building capabilities
B. Strategic analysis
C. New product development
D. Innovation

A. Mind maps
B. Networking
C. Feasibility test
D. Research testing
E. Social networks
The term ________ refers to somewhere between having too few and too many constraints.
A. Mental crisis
B. Critical deviation
C. Creative constraints
D. Sweet spot
E. Mental block
Creativity is the point of origin for innovation and entrepreneurship. It can produce of
new and ________ works
A. Useful
B. Profitable
C. Scalable
D. Original
The creative process of mind map starts with the basic problem as the center and generates
________ in order to arrive at a large number of different approaches.
A. Action plans
B. Strategies
C. Decisions
D. Associations
With the development of infrastructure and technologies such as production lines, businesses
such as the Ford Motor Company focused on manufacturing large quantities of goods, which
they seemed to have no trouble selling. People were happy to buy what was available. Which
era of marketing does this description relate to?
A. Market
B. Production
C. Consumer
D. Sales
E. Socially responsible
Marketing is an approach to business that puts the ____________ at the heart of business
decisions.
A. Product
B. Company
C. Customer, client, partner and society
D. Bottom line
E. Employee
The level of consumer awareness of a company's product would be an example of which

marketing metric?
A. Brand equity
B. Return on investment
C. Customer satisfaction
D. Market share

A. The internal environment includes those factors that are not controllable by the
organization
B. Weaknesses are internal factors that marketers cannot control in the medium term
C. The internal environment includes factors that are controllable by the organization
D. The internal environment is always difficult to understand within large organizations
E. none of the listed options
An organization or individuals involved in activities for creating, communicating and

delivering offerings for exchange are known as
A. Intermediaries
B. Agents
C. Networks
D. Partners
Marketing inherited the concept of exchange from

A. Psychology
B. Trade
C. Science
D. Ancient Greece
E. Economics
Marketers use market research to understand consumer
A. Motivation
B. Abilities
C. Opportunities to act
Enterprises which survive do so because they are capable of

A. Global innovation
B. Cost innovation
C. Strategic evaluation
D. Focused change
E. Perceptual changes
Plenty of evidence suggests that firms can and do learn to manage the process for success,
by building and developing their
A. Innovation capability
B. New product and service strategies
C. Technological innovation
D. Research creativity
The 'bottleneck buster' approach works best in which of the following circumstances?
A. When target customers don't need and don't value all the performance that can be packed
into products, and when existing competitors don't focus on low-end customs.
B. When customers are frustrated by their inability to get a job done, and competitors are
either fragmented or have a disability that prevents them from responding.
C. When customers are locked out of a market because they lack skills, access or wealth.
Competitors ignore initial developments because they take place in seemingly
unpromising markets.
D. All of the listed options.
E. None of the listed options.
Innovation can take many forms. Running a hospital booking system which reduces patient
waiting time is an example of which kind of innovation?
A. Process
B. Product
C. Position
D. Paradigm
Questions such as - what are we going to need? How will we get resources? are dealt with in
A. Strategic implementation
B. Recognizing opportunities
C. Research dynamics
D. Creating ongoing value
E. Social and intellectual occurrences
Which of these would NOT normally be considered an incremental innovation?
A. An electric car
B. A low-fat hamburger
C. Faster train journeys through better signaling
D. Chicken and onion flavored potato snacks
E. A 65-inch plasma television
Internal entrepreneurs are often called
A. Intrapreneurs
B. Intrapreneurs
C. Social leaders
D. Organizational mavericks
E. Risk takers
If innovation is only seen as a strong R&D capability, it will result in

A. Lack the involvement of others
B. Technology which fails to meet user needs and may not be accepted
C. Becoming simply a matter of filling in shopping lists of needs
The action of viewing a problem from an opposite angle is called

A. Forced analogy
B. Attribute listing
C. Scenario thinking
D. Problem reversal
A good idea is ____________ to start-up a business venture.

A. Not enough
B. Sufficient
C. Essential
D. Important
E. Necessary
A business plan involves planning resources and developing a budget which is then
compared with sales projections to ascertain the true
A. Competitive situation in the marketplace
B. Market size that can be captured
C. Level of positioning
D. Number of product attributes
If in doing a SWOT analysis an organization identified that its retail store site was poorly
located, this would be an example of
A. A threat
B. An external factor that cannot be controlled by the organization
C. A strength
D. A weakness
You decide to do a situational analysis, investigating all the internal and external forces that
affect your ability as a marketer to create, communicate, deliver and exchange offerings of
value. Which environment are you analyzing?
A. The marketing environment
B. The macro environment
C. The legal environment
D. The sociocultural environment
Qantas understands that while creating, communicating, delivering and exchanging

offerings of value, as an organization they can only control their
A. External environment
B. Internal environment
C. Political environment
D. Macro environment
Factors that are beyond the organization's direct control, but require an effective response
by an organization are
A. Weaknesses
B. Strengths and weaknesses
C. Strengths
D. Opportunities and strengths
E. Threats
Creating an innovation strategy involves three key steps

A. Process, position and ideas
B. Creativity, innovation and entrepreneurship
C. Analysis, selection and implementation
D. Resources, venture and value
E. Product, process and innovation
Organizational overall objectives together with marketing objectives should be

A. Actionable
B. Reasonable
C. Timetabled
D. Specific

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Which of the following statements is incorrect?

Which of the following would be classed as a product differentiator?

If a consumer is prepared to spend time comparing competing offerings before making a

Intermediaries in a distribution channel can include:

Which of the following statements is incorrect?

Macroeconomics is the branch of economics that focuses primarily on:

Markets in which firms sell their output are called:

An increase in the price of a substitute product will normally cause:

An increase in the price of coffee is likely to result in:

A reduction in the price of an input will normally cause:

Along an individual demand curve, a reduction in quantity demanded occurs when:

The macroeconomic perspective:

The market demand curve is:

Organizations that pursue a specialization strategy seek to establish a dominant position in

Which of the following is not a behavioral segmentation variable?

Which of the following best describes the broad concept of a market?

Shopping products include:

Milk could best be described as a product that is ________ distributed.

Integrated marketing communications (IMC) is the term given to the coordination of

Which of the following statements is false?

Which of the following statements is correct?

If the demand for a product is price elastic, total revenue will:

An increase in the price of butter is likely to result in:

At the equilibrium price:

In the labor market, households:

Diamonds command a higher price than water because they have a:

A technological improvement will normally cause:

At any price above the equilibrium price:

The primary focus of economics is on:

A target market can best be described as:

Which of the following best describes the concept of product differentiation?

Which of the following statements is incorrect?

Which of these is the definition of 'product'?

Which of the following statements is correct?

The market supply curve is:

The plans of buyers and sellers are mutually compatible when:

If there is excess supply at the existing price:

We observe causation, and not just correlation, if:

The concept of demand refers to the quantity of a good that buyers:

Which of the following statements is correct?

Which of the following statements is/are correct?

An overall market may be able to be broadly broken down into:

Which of the following statements is correct?

An approach in which a product is promoted to consumers to create demand upward

A product can be:

At which product level is a marketer most likely to be able to differentiate a product?

Which of the following statements is incorrect?

Which of the following statements is incorrect?

A brand can be:

In the 7Ps framework, distribution is also known as:

A group of customers with similar needs and wants is known as:

The number of possible segments grows by multiples when an additional segmentation

Market segmentation variables should always:

A common technique used to determine market positioning is:

When a market is in equilibrium:

The individual consumer's demand curve for a good describes the:

Which of these is the definition of 'product'?

An increase in the price of an input will normally cause:

A successful advertising program for a product will:

A reduction in the price of a complement will normally cause:

In marketing, 'process' refers to the systems used:

Which of the following distribution channels is/are logical?