GMP (Marketing Management)

Quiz

Time: 45 Minutes
Closed Book and Notes

1. Good Marketing is no accident, but a result of careful planning and ____________

a. Execution
b. Selling
c. Strategies
d. Tactics
e. Research
2. Marketing is both an “art” and a “science” –there is constant tension between the
formulated side of marketing and the ____________ side
a. Creative
b. Selling
c. Management
d. Forecasting
e. Behavior
3. The best definition of marketing is
a. Meeting needs profitably
b. Identifying and meeting human and social needs
c. Design the 4 Ps effectively so that the probability of a transaction with
the customer increases
d. Improving the quality of life of customers
4. Companies selling mass consumer goods and services such as soft drinks,
cosmetics, air travel and atheletic shoes and equipment spend a great deal of time
trying to establish a superior brand in markets called
a. Business markets’
b. Global markets
c. Consumer markets
d. Non-profit and governmental markets
e. Service markets

5. ___________ reflects the perceived tangible and intangible benefits and costs to
customers
a. Loyalty
b. Satisfaction
c. Value
d. Expectations
e. Comparison shopping
6. __________ includes all the actual and potential rival offerings and substitutes that
a buyer might consider
a. Competition
b. The product offering
c. A value proposition
d. The supply chain
e. The marketing environment
7. The _________ process consists of analyzing marketing opportunities selecting
target markets; designing marketing strategies; developing marketing programmes;
and managing the marketing effort.
a. Marketing planning
b. Strategic planning
c. Market research
d. Opportunity analysis
e. Share of customer
8. When IKEA noticed that people wanted good furniture as a substantially lower
price and created knockdown furniture, they demonstrated marketing savvy and
turned a private or social need into a(n) _________________
a. Market need
b. Profitable business opportunity
c. Product development
d. Invention
e. Customer want
9. When Bob sells a TV to Roger and receives Rs. 35000 in cash, a(n) ___________
has just occurred.
a. Transfer
b. Contribution
c. Donation
d. Transaction
e. Charitable action
10. If a female consumer hates smoking and is willing to pay an extra tax just to help
eliminate smoking in her city, she is exhibiting ___________ with respect to her
views toward smoking
a. Negative demand
b. Non-existent demand
c. Latent demand
d. Declining demand
e. Unwholesome demand
11. In modern exchange economy, all the following markets are likely to exist except
a. Resource markets
b. Manufacturer markets
c. Government markets
d. Consumer markets
e. Class markets
12. If the Automobile Industry sends advertising communications and personal sales
messages to prospective buyers in a simple marketing system, it expects ______ in
return if the exchange process is really working
a. Goods
b. Services
c. Money
d. Information
e. Image enhancement
13. ____________ is the study of how individuals, groups and organizations select,
buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs
and wants
a. Target Marketing
b. Psychographic Segmentation
c. Psychology
d. Consumer Behavior
e. Product Differentiation

14. Which of the following is not a part of the model of consumer behavior
a. Problem Recognition
b. Search
c. Evaluation
d. Interaction
e. Purchase

15. The buying process starts when the buyer recognizes a _____________.
a. Product
b. An advertisement for the product
c. A sales person from a pervious visit
d. Problem or need
e. An internal cue

16. Even if consumers form brand evaluations, two general factors can intervene
between the purchase intention and the purchase decision. One of these is
unanticipated situational factors. What is the 2nd factor?
a. Amount of Purchasing Power
b. Attitudes of others
c. Short Term Memory capabilities
d. Ability to return merchandise
e. The self-concept

17. The ___________ consists of all the organizations that acquire goods and services
used in the production of other products or services that are sold, rented or
supplied to others.
a. Business Market
b. Consumer market
c. E-commerce market
d. Global market
e. Supplier market

18. The ________ stage of the product is characterized as being one where there is
period of rapid market acceptance and substantial profit improvement.
a. introduction
b. growth
c. maturity
d. saturation
e. decline
19. A distinguishing characteristic of services that makes them unable to be touched or
sensed in the same manner as physical goods is referred to as:
a. Intangibility
b. inseparability
c. heterogeneity
d. perishability

20. Many consumers use price as an indicator of ________. Image pricing is

especially effective with ego-sensitive products such as perfumes and expensive
cars.
a. status
b. quality
c. ability
d. capability
e. size
21. A ________ strategy involves the manufacturer using its sales force and trade
promotion money to induce intermediaries to carry, promote, and sell the product
to end users.
a. push
b. pull
c. promote
d. provide
e. none of the above

22. One traditional depiction of marketing activities is in terms of the marketing mix
or four Ps. The four Ps are characterized as being ________.
a. product, positioning, place, and price
b. product, production, price, and place
c. promotion, place, positioning, and price
d. place, promotion, production, and positioning
e. product, price, promotion, and place
23. The firm should estimate its competitors’ costs and performances as ________
against which to compare its own costs and performance.
a. Competition
b. Standards
c. Challenges
d. Benchmarks
e. moveable standards
24. If you were the marketing manager of an organization that had chosen growth via
current products sold to new markets, your organization would have chosen a
________ strategy.
a. market-penetration
b. market-development
c. product-development
d. Diversification
e. Concentric
25. Which of the following types of marketing research firms would best be described
as being one that gathers consumer and trade information which they sell for a fee
(e.g., Nielsen Media Research)?
a. Custom marketing research firms.
b. Syndicated-service research firms.
c. Specialty-line marketing research firms.
d. General-line marketing research firms.
e. Non-profit marketing research firms

26. Annual-plan control requires making sure that the company is not overspending to
achieve sales goals. The key ratio to watch is the ________.
a. marketing profitability ratio
b. marketing sales ratio
c. share of mind ratio
d. marketing expense-to-sales ratio
e. marketing deliverables ratio
27. ________ consists of measuring and evaluating actual sales in relation to goals.
a. ROI analysis
b. Demand
c. Sales analysis
d. Performance reviews
e. Trend lines
28. If Dell computer was seen as having a 120 percent market share and a close
competitor was seen as having 90 percent market share, the market share analysis
(measurement) would expressed as ________.
a. overall market share
b. served market share
c. relative market share
d. dual market share
e. top dog market share
29. Sally is reviewing how to re-figure a variety of expenses and costs associated with
a recent marketing effort. Her first task is to identify the direct costs associated
with that effort. Which of the following would be the best example of a direct cost
associated with a marketing effort?
a. Rent
b. Public relation’s image
c. Top management salaries
d. Sales commissions
e. Interest on debt
30.Jason is examining a recent breakdown of his company’s West Coast market. The
terms in the report are somewhat confusing since there was no attached vocabulary
key to assist the uninformed reader. Jason is looking for the set of consumers who
are currently buying his company’s products. Which of the following terms will
assist him in finding the right column for his data query?
a. Potential market
b. Bi-lateral market
c. Available market
d. Target market
e. Penetrated market
 31.A high market penetration index suggests that ________.
a. a substantial growth potential exists for all firms in the market
b. there will be increased costs of attracting the few remaining prospects
c. mistakes have been made in selecting the correct promotional alternatives
d. the price of the product or service is too high with respect to competition
e. it would be great time to expand distribution outlets

32.Over a period of a month, in a market of 10,000 households, 500 households

purchased Big Bomb brand of flea foggers. The Brand penetration of Big Bomb is
a. 25%
b. 5%
c. 15%
d. 10%
e. Cannot be calculated

For Questions 33 to 38, please use the following data

A farm equipment company was considering a direct mail campaign to remind customers
to have tractors serviced before spring planting. The campaign is expected to cost $1000
and to increase revenues from $45000 to $50000. Baseline servicing (with no marketing)
were estimated at $25000. The direct mail campaign was in addition to the regular
advertising and other marketing activities costing $6000. The Gross Margin on tractor
servicing revenues (after direct costs) averages 60%.

33.What is the Revenue attributable to Marketing, before the Direct Mail?

a. $40000
b. $1000
c. $25000
d. $20000 ($45000-$25000)
e. Cannot be calculated
34.What is the Return on Marketing Investment (ROMI), before Direct Mail?
a. 100% ((45000-25000)*0.6-6000)/6000
b. 125%
c. 114%
d. 162%
e. 275%
35.What is the ROMI after direct mail?
a. 100%
b. 125%
c. 114% ((50000-25000)*0.6-7000)/7000
d. 162%
e. Cannot be calculated?
36.What is the Return on Incremental Marketing Expense of the Direct Mail?
a. 100%
b. 125%
c. 114%
d. 62%
 e. 200% ((50000-45000)*0.6)-1000)/1000
37.What is the Revenue returns to total Marketing effort?
a. 425%
b. 325%
c. 357% (50000-25000)/7000
d. 344%
e. Cannot be calculated
38.The major problem of using ROMI is
a. Finding the true cost of Marketing Activities
b. Finding the Baseline
c. Maximizing ROMI will lead to lower sales
d. It does not take into account the “Carry over” effects; the effects of
marketing activities in one period to sales in future periods.
e. All the above